in london back with jonathan ferro. from new york, this is "bloomberg real yield." ♪ ♪ i'm scarlet fu. iq." s bloomberg "etf scarlet: gold bugs rejoice. when investors turn nervous on equities, they tend to rotate the gold. what does this show in this rush into gold etf? yale university sets the standard for endowments with its almost 12% annual return over five years, but according to one analyst, the yell model is not something others can replicate.

in london, back with jonathan ferro. from new york, this is bloomberg real yield. ♪ ♪ scarlet: gold bugs rejoice. when investors turn on equities, and it turned to gold. what does this show in this rush into gold etf? yale university sets the standard with 12% return. but according to one analyst, el model is not something others can replicate.

jonathan: from new york city for our viewers worldwide, i am jonathan ferro, with 30 minutes dedicated to fixed income. this is "bloomberg: real yield." ♪ jonathan: coming up, inflation building. gettingessures finally back to fed targets. and netflix upsizing their bond offerings this week. and a consensus trade in e.m. the big issue of 10 year yield getting back to 3%. enough toeshold is give -- get people's attention, but i don't think it is a bad sign by itself. >> it is more psychological than anything else. >> we think the path is higher, but it will be a slow pace, and could probably get up to that 3.25% level. >> we have been saying we expect a halffore two and percent, but the market is coming to that expectation. buts at a reasonable pace, if the reasoning is because of growth, it doesn't mean a debacle. this could bring forward the eventual recession. that is my main fear about higher rates. if the fed says they are going to raise two more times to treasury would not tell you at 3% they are pricing that in. the short side of the curve is the big story. jonathan: around the

in london, back with jonathan ferro. from new york, this is bloomberg real yield. ♪ scarlet: i am scarlet fu. we have everything on the risks and rewards by traded funds. ♪ scarlet: gold bugs rejoice. when investors turn on equities, and it turned to gold. what does this show in this rush into gold etf? yale university sets the standard with 12% return. but according to one analyst, el model is not something others can replicate. >> one was long on companies run by the founders. but that t

jonathan: from new york city for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg "real yield". ♪ jonathan: coming up, investors . the treasury yield curve is close to adverting. >> rates have gone up somewhat. it is totally normal that the yield curve gets flatter. >> i'm not too worried about the flattening we have seen. it is an amount of it. if it is inverted that is a different story. >> certainly we are worried about the curve flattening. we do not see that in the near term. >> let's not get carried away, it is not unusual to see a flattening. the front end of the curve arises faster than the long end. >> the big message perhaps is stop freaking out. joining me at the table in new york is jack flaherty. plus, coming to us from london is ian steely. in, i want to start with you. when do we start to worry? i think it is an interesting one because what we typically do see as rates move higher is that the yield curve flattens. that is what history tells us. i think what we'll see is a few months where he hanged around is very

jonathan: from new york city for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg "real yield". ♪ jonathan: coming up, inflation building. price pressures finally getting back toward the feds target. upsizing bond offerings this week. a resurgent dollar. tracks appear in em. 10 year yield getting back to 3%. >> i think the 3% threshold is enough to get people's attention. by itself, i don't think it is necessarily a bad sign. >> i think it is more psychological than anything else. >> it is all about case and have. -- about pace and path. we think we can get up to the 3.25% level. it will be hard to break and stay above that this year. >> we have been consistently saying we expect 3.5% before 2.5%. is it is a measured reasonable pace, and if the reasoning is because of growth, it doesn't mean a debacle. >> if the u.s. 10 year yield gets into the high threes, that is when it acts as a drag on the economy and brings it into recession. >> if the fed says they are going to raise at least two or three more times, two 2019, the 10 year

this is "bloomberg real yield." ♪ ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." i want to go to the auction block where $274 billion were auctioned this week alone in treasuries. the highest yield since 2010. over incorporates, the focus on junk bonds. netflix had a high-yield market selling $1.9 billion in its largest ever offering. that was up from $1.5 billion. the real headliner, selling $702 million in bonds in its first ever offering backed by softbank. the yield 7.8%. bonnie, i want to begin with you. is this why the credit agencies struggle so much with this issue? it was rated bb-. they did not know what to do with this. why not? >> it is always difficult when you have issuers were negative cash flow, and have projections for growth and cash flow going forward. and so, in addition to that, we have a disruptive business model that is different from what is traditionally seen in the market. rating agencies had difficulty digging into that. this market like any market, you have to do your homework to understand the credits, a

jonathan: from new york city, for bloomberg worldwide, i'm jonathan ferro. with 30 minutes dedicated to fixed income, this is "bloomberg real yield." ♪ jonathan: coming up, inflation building. labor costs accelerating. price pressures finally getting back to the fed's target. junk debt supply still very much in demand. netflix is upsizing their bond offerings. a resurgent dollar, a consensus trade. cracks appear in a.m.. 10-year yields getting back to 3%. >> i think the 3% threshold is enough to get peoples attention. by itself, it is not a bad sign. >> i think it is more psychological than anything else. >> we think the path is higher, but it will be a slow pace, and we can probably get up to the 3.25% level. it is going to be hard to break that stay above that. >> we have been saying we expect 3.5%, and the market is coming to that expectation. if it is a measured reasonable pace, and the reasoning is because of growth, it does not mean a debacle. >> if the u.s. 10-year yield goes into the high threes, it will act as a drag on the economy and bring forwa

new york -- jonathan: from new york city for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg "real yield". ♪ jonathan: coming up, investors exhausted from political narratives, from the trade war fears to geopolitical concerns. one thing washington can guarantee -- more debt, the cbo forecasts $1 trillion deficits are just around the corner. in the u.s. needs foreign investors to step up. but this week's auction suggests they are taking on the sidelines. we begin with a big issue -- geopolitical risk. >> it is a tough question. it is trying to protect unstable politics. >> the middle east has more faultlines than any other geopolitical part of the world you can think of. >> i think at the top of the list is trade and geopolitical. >> rather dazed and confused by the tweet storm, by the geo policy rhetoric. >> the middle east has moved way beyond what we think of it. it is humpty dumpty time. we are not going to bring back the old middle east, the old syria, the old libya, the old yemen. the middle east is seriously broken. not to

jonathan: from new york city, i'm jonathan ferro. this is "bloomberg real yield." coming up, inflation building. labor costs accelerating. price pressures finally getting back to the fed's target. still very much in demand. wework and netflix upsizing their bond offerings. a surge in the dollar, a consensus trade. cracks appear in e.m. we begin with the big issue, 10 year yields getting back to 3%. >> i think the 3% threshold is enough to get people's attention. but by itself, i don't think it's necessarily a bad sign. >> i think it is more psychological than anything else. >> it's all about pace and path. we think the path is higher, but it will be a slow pace, and we can probably get up to the 3.25% level. it will be hard to break that and stay above that. >> we have been saying we expect 3.5%, but the market is coming to that expectation. it is a measured reasonable pace, and the reasoning is because of growth, it does not mean a debacle. >> if the u.s. 10 year yield goes into the high threes, it will act as a drag on the economy and bring forward a recession. >

jonathan: from new york city for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg "real yield". ♪ jonathan: coming up, investors . the treasury yield curve is close to adverting. >> rates have gone up somewhat. it is totally normal that the yield curve gets flatter. >> i'm not too worried about the flattening we have seen. it is an amount of it. if it is inverted that is a different story.

jonathan: from new york city for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg "real yield". jonathan: coming up, payrolls delivering a big miss, but wages coming in line. the fed's slow and steady model. the president fighting back in the battle of the proposals. the administration considering tariffs on another $100 billion of chinese goods. and risk appetite taking a hit. but the pain isolates the stocks. junk credit looks relatively resilient. we begin with the big issue, the drama free payrolls report. >> this is what we should expect going forward. >> this is a weakish type of report. >> the weather was a big influence this month. >> i think there is a game of chicken going on between the fed and the markets. >> i think this makes for a cautious fed, especially in light of the global trade situation. >> the markets will respond to this report because it was such a big miss and suggests we are starting to hit some limits in the labor market and that will be a constraint on growth and push up wages. i think there will be a

in london, back with jonathan ferro. from new york, this is bloomberg real yield. ♪ ♪ yousef: you are watching the "best of daybreak middle east," here are the top stories this week. manus: the pentagon says that bashar al-assad's chemical weapons capabilities have been hampered. yousef: and exclusive look at the oil giant book as a prepares for a deal. manus: room for growth. the ceo of the intercontinental hotels group serves us in on the expansion plans. yousef: the week began with president trump

jonathan: from new york city i'm jonathan ferro, and this is bloomberg "real yield". ♪ jonathan: coming up, payrolls delivering a big miss but wages are in line. the president fighting back, and the administration considering tariffs on another $100 billion of chinese goods. credit looks fairly resilient. we begin with the big issue, the payrolls report. >> this is what we should expect going forward. >> this is a weak type of report. >> the weather was a big influence. >> i think there is a game of chicken going on with the fed and markets. >> this makes for a cautious fed. especially in light of the global trade situation. >> the markets will respond to this report because it is a big miss and suggests we are starting to hit some limits in the labor market and that will constrain growth and push up wages. i think there will be a reaction to this report. but it is the kind of report we should look at going forward. >> i think it leaves the fed in the same place. they will keep moving but they are not in any race and it will not rush it. >> nothing has changed there, what has changed is

jonathan: from new york city , to our viewers worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg "real yield." ♪ jonathan: coming up, investors exhausted from political narratives, from the trade war fears to geopolitical concerns. one thing washington can guarantee -- more debt. the cbo forecasts $1 trillion deficits are around the corner. the u.s. needs foreign investors to step up. this week's auction suggests they are taking on the -- sitting on the sidelines. we begin with a big issue, geopolitical risk. the market is concerned. >> it is a tough question. it is trying to protect unstable politics. >> the middle east has more faultlines than any other geopolitical part of the world you can think of. >> top of the list is trade and geopolitical. >> we are dazed and confused by the tweet storm, by the geo policy rhetoric. >> the middle east has moved way beyond what we think of it. it is humpty dumpty time. we are not going to bring back the old middle east, the old syria, the old libya, the old yemen. the middle east is seriously broken. >>

jonathan: from new york city and our viewers worldwide, i'm jonathan ferro, and this is bloomberg "real yield". ♪ jonathan: coming up, payrolls delivering a big miss but wages come in and line. the president fighting back, and the administration considering tariffs on another $100 billion of chinese goods. risk appetite taking a hit. junk credit looks fairly -- relatively resilient. we begin with the big issue, the payrolls report. >> this is what we should expect going forward. >> this is a weak type of report. >> the weather was a big influence this month. >> i think there is a game of fedken it on between the and the markets. >> this makes for a cautious fed. especially in light of the global trade situation. >> the markets will respond to this report because it is a big miss and suggests we are starting to hit some limits in the labor market and that will be a constraint on growth and push-up wages. i think there will be a reaction to this report. but it is the kind of report we should look at going forward. >> i think it leaves the fed in the same place. they will keep moving but

. ♪ ♪ for: am lisa abramowicz and jonathan ferro and is boomer "real yield". we head to the auction block as return --es its the government on wednesday told all 10 billion rubles of notes offered and received bits three times that amount and placed $2.2 billion of ruble for think debt. and in the middle east, qatar and saudi arabia raised $23 billion the sales have helped rich on sales climbed to $46 billion this year, the most since 2007. and incorporates, it's was company had a six part, $4.5 billion deal to refinance its $40 billion takeover. order books were more than four times covered. still with me is jack flaherty, subadra rajappa, and iain stealey. andnt to start with russia talk about when bond investors are going to get confident to go back to that nations that given the conflict with the u.s. and sanctions. declinee you using this in the press of russian bonds and yields as a buying opportunity? very i think it is difficult to do that at the moment because there's so much uncertainty. russia was a failure trade for people are numerous reasons. yie

jonathan: i am jonathan ferro and this is "real yield." we head to the auction block and start in europe with volkswagen, the financial services unit posted the week's biggest bond offering in europe. here in the united states, salesforce made its first trip in the bond market in five years as it issued debt to finance and acquisition. a tenure security yielding 87.5 basis points more than treasuries. and elsewhere, mcdermott international offering of $3.56 billion in the leverage of high-yield bonds. the company is using the funds to back its takeover of chicago bridge and iron. with me around the table is bob miller, george resnick, and anupam damani. george, we started to see this, just on the margin in credit, where things used to have the initial talk and then tighten to execution go to the market and rally above heart. we are not seeing that play out so much when these new issues come to market. why? george: the market is becoming more saturated with what is going on. you are seeing late cycle behavior, especially in credit, where yo

. ♪ ♪ jonathan: i am jonathan ferro. this is "bloomberg real yield." i want to head to the auction block now where the united states treasury auctions almost $300 billion of debt notes and bill through the week. it is the largest supply ever. the $30 billion 2-year note sale was one of the biggest. since 2014, with a five-year and evan your offerings each matching their largest sales in looking closer at the 2014. two-year option, that sale had a yield of 2.13 percent, the highest since august 2008. over in europe, high-grade corporate cells fell about 30% -- corporate sales fell about 30% compared to a year ago. they were weighed down by a plunge in february issuance. elsewhere, we get to a flashing warning sign from tesla. back in august, investors lined up for a chance to finance the company's ambitious rollout of its model three sedan. but now after a spate of setbacks, including a credit rating downgrade, tesla's notes have plunged. still with me, greg peters, jim keenan, and kathleen gaffney. jim keenan, in august of last year, for this maturity,

. ♪ ♪ jonathan: i am jonathan ferro. this is "bloomberg real yield." i want to head to the auction block now where the united states treasury auctions almost $300 billion of debt notes and bill through the week. it is the largest supply ever. the $30 billion 2-year note sale was one of the biggest. it is the largest sale since january 2014 with a five-year offering. looking closer at the two-year option, that sale had a yield of 2.13 percent, the highest since august 2008. over in europe, high-grade corporate cells fell about 30% compared to a year ago. way down by a plunge in february issuance. elsewhere, we get to a flashing warning sign from tesla. back in august, investors lined up for a chance to finance the company's ambitious rollout of the model three sedan. but now after a spate of fresh setbacks in the past week including a credit rating , downgrade, tesla's notes have plunged. still with me, greg peters, jim keenan, and kathleen gaffney. jim keenan, in august of last year, for this maturity, for this credit rating, that tesla issue was a rec

. ♪ ♪ jonathan: i am jonathan ferro. this is "bloomberg real yield." i want to head to the auction block now where the united states, the treasury auctioned almost $300 billion of debt notes and bills through the week. it is the largest supply ever. the $30 billion 2-year note sale is the largest sale since january 2014 with a five-year offering. each matching the largest sale since january looking closer at 2016. the two-year option, that sale had a yield of 2.13%. the highest since august 2008. over in europe, high-grade corporate sales fell about 30% compared to a year ago. sales way down by a plunge in february issuance. -- wade down by a plunge in february issuance. elsewhere, we get to a flashing warning sign from tesla. back in august, investors lined up for a chance to finance the company's ambitious rollout of its model three sedan. after a bunch of setbacks, including a credit rating downgrade, tesla's notes have plunged. still with me, greg peters, jim keenan, and kathleen gaffney. jim keenan, in august of last year, for this maturity, for t

. ♪ jonathan: from new york city i'm jonathan ferro, and this is bloomberg "real yield". ♪ jonathan: coming up, payrolls the very a big mess, the job report. , andresident fighting back the administration considering tariffs on another 100 million dollars of chinese goods. and stock credit looks fairly resilient. we begin with the big issue, the payrolls report. >>

jonathan: from new york city for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg "real yield". ♪ jonathan: coming up, investors exhausted from political narratives, from the trade war fears to geopolitical concerns. one thing washington can guarantee -- more debt, the cbo forecasts $1 trillion deficits are around the corner. the u.s. needs foreign investors to step up. this week's auction suggests they are taking on the sidelines. geopolitical concern. >> it is a tough question. it is trying to protect unstable politics. >> the middle east has more faultlines than any other geopolitical part of the world you can think of. >> top of the list is trade and geopolitical. >> we are dazed and confused by the tweet storm, by the geo policy rhetoric. >> the middle east has moved way beyond what we think of it. it is humpty dumpty time. we are not going to bring back the old middle east, the old syria, the old libya, the old yemen. the middle east is seriously broken. not too far away from a tipping point. think about where positioning

. ♪ jonathan: from new york city i'm , jonathan ferro. 30 minutes until the start of trading. this is the countdown to "the open." ♪ jonathan: coming up, big week ahead. federal reserve interest rate decision and of april payrolls report. before an american delegation goes to beijing, wrestling with tariffs. and finally an agreement for t-mobile to purchase sprint, taking on at&t, verizon and the regulators. flat trading week last week, we are positive this monday morning and up 6 on the s&p. fx market, the end of the last week, we have a stronger dollar story. 1.21.ollar, yields down a little bit lower. down a basis points. --week of adamant not a data

coming up, join jonathan ferro on the open. he will be joined by market shale -- michael shaoul and isaac boltansky. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. jonathan: from new york city, i am jonathan ferro. 30 minutes until the start of trading. this is the countdown to the open. ♪ coming up, another leadership c

jonathan: from new york city for our viewers worldwide, i am jonathan ferro. yield.""bloomberg real ♪ up, trade warng fares to geopolitical concerns. one thing washington can guarantee is more debt. the u.s. needs a foreign investors to step up. we begin with a big issue. geopolitical risk, the new market concern. >> it is a tough question, trying to predict unstable politics. >> the middle east. >> at the top of the list is trade and geopolitical. dazed and confused by the trade, policy rhetoric, by geopolitics. has moved wayeast beyond what we think. we will not bring back the old middle east, the old syria, libya. the middle east is broken. away from a too far point where the escalation of tensions between countries can become significant. is a massive short in the 10-year space. catalyst can really set it off. jonathan: joining me now is craig bishop. made it in.r has matt from illinois is freund. great to have you. this quickk about switch from one narrative to another. why are we doing this? rachel: we entered the last couple of years with a very positive backd

jonathan: from new york city for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg "real yield". ♪ jonathan: coming up, investors exhausted from political narratives, from the trade war fears to geopolitical concerns. one thing washington can guarantee -- more debt, the cbo forecasts $1 trillion deficits are around the corner. the u.s. needs foreign investors to step up. n suggestss auctio they are taking on the sidelines. geopolitical concern. >> it is a tough question. it is trying to protect unstable politics. >> the middle east has more faultlines than any other geopolitical part of the world you can think of. >> top of the list is trade and geopolitical. confused byzed and the tweet storm, by the geo policy rhetoric. >> the middle east has moved way beyond what we think of it. it is humpty dumpty time. we are not going to bring back the old middle east, the old syria, the old libya, the old yemen. >> the middle east is seriously broken. not too far away from a tipping point. >> thing about where positioning is right now. the

jonathan: from new york city for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg "real yield". ♪ jonathan: coming up, investors exhausted from political narratives, from the trade war fears to geopolitical concerns. one thing washington can guarantee, more debt, the cbo forecasts $1 trillion deficits are around the corner. the u.s. needs foreign investors to step up. this week's auction suggests they are taking on the sidelines. we begin with a big issue, geopolitical concern. >> it is a tough question. it is trying to protect unstable protective very unstable politics. >> the middle east has more faultlines than any other geopolitical part of the world you can think of. >> top of the list is trade and geopolitical. >> we are dazed and confused by the tweet storm, by the geo policy rhetoric. >> the middle east has moved way beyond what we think of it. it is humpty dumpty time. we are not going to bring back the old middle east, the old syria, the old libya, the old yemen. >> the middle east is seriously broken. not too far away

you can listen to tom keene and jonathan ferro. bloomberg surveillance can be heard in new york, boston, the bay area, washington, d.c. and all across the united states of america on sirius xm satellite radio. ♪ kailey: this is bloomberg daybreak. coming up in the next hour, mike holland, holland and company founder and chairman. and now to your bloomberg business flash. apple is considering a move that could be a big load to the world's largest maker of computer chips. apple plans to use its own chips in mac computers as early as 2020. apple accounts for about 5% of intel's revenue. a rareone has provided glimpse into the gender pay gap in the financial business. women earn an average of 30% less than male colleagues in the u.k. general motors says that when it comes to sales figures, less frequent information is more. gm will stop reporting monthly vehicle sales information. instead, the company will report every quarter. gm says 30 days is not enough time. that is your bloomberg business flash. david: we turn now to wall stree

jonathan: from new york city i'm jonathan ferro, and this is bloomberg "real yield". ♪ jonathan: coming up, payrolls the very a big mess, the job report. , andresident fighting back the administration considering tariffs on another 100 million dollars of chinese goods. and stock credit looks fairly resilient. we begin with the big issue, the payrolls report. >> this is what we should expect going forward. >> the weather was a big influence. >> i think there is a game of chicken going on with the fed and markets. >> this makes for a cautious fed. respond toet will this report because it is a big mess and suggests we are starting to hit some limits in the labor market, and dolby a constraint on growth and push-up wages. i think there will be a reaction to this report. is the kind of report we should look at going forward. >> the fed will keep moving but they are not in any race and it will not rush it. >> nothing has changed there, what has changed is the trade protectionism threats coming out of the white house. jonathan: joining me is bob miller, the portfolio manager, and manager of em

." ♪ ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." i want to go to the auction block where $274 billion were auctioned this week alone in treasuries. the highest yield since 2010. over incorporates, the focus on junk bonds. netflix had a high-yield market selling $1.9 billion in its offering.er that was up from $1.5 billion. $702eal headliner, selling million in bonds in its first ever offering backed by softbank. the yield 7.8%. bonnie, i want to begin with you. is this why the credit agencies struggle so much with this issue? bb-.s rated they did not know what to do with this. why not? >> it is always difficult when you have issuers were negative cash flow, and have projections for growth and cash flow going forward. and so, in addition to that, we have a disruptive business model that is different from what is traditionally seen in the market. rating agencies had difficulty digging into that. this market like any market, you have to do your homework to understand the credits, and who you work with, no exception. jonathan: the secon

: from new york city i'm , jonathan ferro. this is the countdown to "the open." ♪ jonathan: coming up, gdp is better than expected, pushing inflation toward the fed's goal. kim jong-un crossing the border to declare an area of these with the south. and proven them on, amazon and microsoft and intel, all reporting solid results this morning. in the market, the story as follows, 30 minutes away from the opening bell, futures doing nothing. fx market, with a stronger dollar story and a lot more against the pound. treasuries moving by a single basis point at 297 on the u.s. 10 year. topping estimates, but calling off from the previous quarter. the report with the latest, though recent trend from around the world. and this economic global growth narrative is still intact. >>

. ♪ -- worldwide, i met jonathan ferro. i am a the countdown -- jonathan ferro. this is the countdown to the opening. quarterlychina steady expansion marking a tug-of-war between the old economy in the new one. big day on wall street, not enough to impress investors. awayarket is 30 minutes from the opening. futures a firmer up by 16 points from the s&p and positive by six tens of 1%. 0.6euro is weaker -- percent. the euro weaker, down a quarter percent. off this week with the world economy weaker post 2020. a little more on that story later. as far as goldman

." ♪ ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." i want to go to the auction block where $274 billion were auctioned this week alone in treasuries. the highest yield since 2010. over incorporates, the focus on junk bonds. netflix had a high-yield market selling $1.9 billion in its largest ever offering. that was up from $1.5 billion. the real headliner, selling $702 million in bonds in its first ever offering backed by softbank. the yield 7.8%. bonnie, i want to begin with you. is this why the credit agencies struggle so much with this issue? it was rated bb-. b-. moody.c by they did not know what to do with this. why not? >> it is always difficult when you have issuers were negative cash flow, and have projections for growth and cash flow going forward. and so, in addition to that, we have a disruptive business model that is different from what is traditionally seen in the market. rating agencies had difficulty digging into that. this market like any market, you have to do your homework to understand the credits, and who you work w

this is the countdown to the -- me jonathan. -- i'm jonathan ferro. become a down to -- this is the countdown to the open. ♪ jonathan: coming up president macron arriving in washington hoping to keep the united states in the iran nuclear deal. treasury offering 32 billion into your notes. data.economic german business confidence extending. 30 minutes away from the opening . futures look like this. up a half of 1%. markets with strength over the previous five days. euro-dollar going nowhere. treasury on a hunt for 3%. 2.99 is where we trade right now, up by a single basis point. that is the story in the bond market. 10-year treasury holding investors, keeping a close eye and preparing for higher rates. >>

." ♪ ♪ ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." i want to go to the auction block where $274 billion were auctioned this week alone in treasuries. the highest yield since 2010. over incorporates, the focus on junk bonds. netflix had a high-yield market selling $1.9 billion in its largest ever offering. that was up from $1.5 billion. the real headliner, selling $702 million in bonds in its first ever offering backed by softbank. the yield 7.8%. bonnie, i want to begin with you. is this why the credit agencies struggle so much with this issue? it was rated bb-. they did not know what to do with this. why not? >> it is always difficult when you have issuers were negative cash flow, and have projections for growth and cash flow going forward. and so, in addition to that, we have a disruptive business model that is different from what is traditionally seen in the market. rating agencies had difficulty digging into that. this market like any market, you have to do your homework to understand the credits, and who you work with, no excepti

jonathan: from new york city , to our viewers worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg "real yield." ♪ jonathan: coming up, investors exhausted from political narratives, from the trade war fears to geopolitical concerns. one thing washington can guarantee -- more debt. the cbo forecasts $1 trillion deficits are around the corner. the u.s. needs foreign investors to step up. this week's auction suggests they are taking on the -- sitting on the sidelines. we begin with a big issue, geopolitical risk. th

jonathan: from new york city, i am jonathan ferro. this is the countdown to the open, 30 minutes to the start of trading. coming up, global equity markets rallying. the u.s. signaling it is looking to come to the negotiating table with china. jpmorgan and tend building the amazon of global finance. jamie dimon seeing growth opportunities in make everything, everywhere. facebook has good news from investors, the data crisis is not hurting the business. we had a ridiculous session yesterday and make equities. up 14 points in the s&p 500. the dollar a little stronger against the euro. treasury yields at 2.81%, up a basis point. world's two biggest economies showing willingness to come to the negotiating table. >> i think we are locked in a good traditional game of chicken. >> there is no trade war here. there is no trade

jonathan: from new york city for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg "real yield". jonathan: coming up, payrolls delivering a big miss, but wages coming in line. the fed's slow and steady model. the president fighting back in the battle of the proposals. the administration considering tariffs on another $100 billion of chinese goods. and risk appetite taking a hit. but the pain isolates the stocks. junk credit looks relatively resilient. we begin with the big issue, the drama free payrolls report. >> this is what we should expect going forward.

i'm jonathan ferro. this is the countdown to "the open." ♪ coming up, the u.s. proposing new tariffs for china, beijing wasted little time to reveal their own proposals. trade tensions and hitting risk assets, risk off again and the rally is kinder. digesting the difference between rhetoric and real policy, investors grapple with what actually matters. 30 minutes away from the opening bell, the vicious risk off warning, in equities it could be. futures off by 1.3%. elsewhere, this is hardly a gym addict in the treasury market, down two basis points. and in the fx market, a little bit of yen strength with emphasis on a little and the dollar pushing out one .2298 -- at 1.2298.

this is bloomberg. ♪ jonathan: from new york city for our viewers worldwide. i am jonathan ferro. start ofs until the trading. this is the countdown to the open. ♪ jonathan: coming up, the bond market selloff continuing. ae benchmark 10-year yield whisker away from the present. the white house cautiously optimistic about relations with beijing. steve mnuchin considering going to china. 30 minutes away from the opening bell in new york city. 500,7 points on the s&p and in the fx market, the dollar strength throughout the space, throughout the sessions of our, euro-dollar at 1.2339. to 3%.year so close the 3% yield in focus. the trade is filled with weak economic data. >>

this is bloomberg. ♪ ♪ jonathan: from new york city, i'm jonathan ferro. this is the countdown to the open. ♪ jonathan: coming up, wages come in under the line fitting the fed's slow and steady model. the trump administration considering tariffs on another $100 billion of goods. stock markets snapping back following a three-day winning streak. 30 minutes away from the cash open. the story looks like this, futures still soft but way off the overnight session lows. 6/10 of 1%. 1/10dollar up by not even of 1%. yields down three basis points on the u.s. 10 year. that is where we begin with the payroll report, the economy missing economists' estimates.

today, listene in jonathan ferro and tom keene. bloomberg radio can be heard all across the u.s. on sirius xm radio. live from new york, this is this is bloomberg. ♪ up in the next hour, julie menu will, ctig chief equity and derivative strategist. david: general electric is holding its annual shareholder meeting today. it has come under pressure to fire its auditor at kpmg after over a century. brooks sutherland joins us now from the shareholder meeting in pennsylvania. we talk about ge a lot, has not been very good news. are they expecting some good news today? if we will get a lot of news but we will get a chance to see how shareholders feel. the big thing to watch is what will happen with the auditor kpmg. it was recommended that ge fire kpmg and get a different auditor. it will be interesting to see how shall her north vote on that. the other big proposal is whether ge should consider having an independent chairman. right now john flannery is also chairman of the board. some think it may not hurt to have a fresh set of eyes in their especially with the problems we have see

our viewers worldwide, i am jonathan ferro, with 30 minutes dedicated to fixed income. this is "bloomberg: real yield." ♪ jonathan: coming up, inflation building. gettingessures finally back to fed targets. and netflix upsizing their bond offerings this week. and a consensus trade in e.m. the big issue of 10 year yield getting back to 3%. >>

i will be subbing in for jonathan ferro who is on a beach in columbia. what to make of the world bank warnings about global growth and potential debt issues. plus, those ranging that raging commodities. this is bloomberg. ♪ this is bloomberg. ♪ ♪ alix: from new york city, i'm alix steel. "theis the countdown to "the open." ♪ alix: coming up, the imf upgrading its global growth forecast, but warns inflation and trade could disrupt the current economic environment. trouble with the curve, threatened to not only flatten, but inferred. could a growth slowdown be on the horizon? and cold cash and hot commodities. nickel and aluminum outshine precious metals. is a sell thet bonds kind of story. a really mushy market overall. a mixed dollar all morning long. selloff in the bond market in europe. two. 90 is how we appear include continuing its rally up 1%. what it means for inflation and the equity markets? imf meetings in washington warning the

is worldwide, i'm jonathan ferro. this is the countdown to the open. ♪ jonathan: coming up, morgan stanley wrapping up earnings season on wall street. the total ram geopolitics softening. mike pompeo visiting kim. u.k. inflation misses estimates. cpi revised lower. 30 minutes away from the opening bell come the story looks a little something like this with futures firmer throughout the morning. 31% on the s&p and the euro-dollar driving toward 124 at 12391. year and i can tell you the 2-year note in the last 24 hours as well. the bank earnings om

he defended plans for the ipo in an exclusive interview with jonathan ferro. >> -- a lot of the questions in the -- and the media coverage and what you see is about the ipo and when it will happen. there is a lot of demand for the lifting -- the listing, and the detail we show. how are performance and -- we are the highest producer, the most efficient and reliable. this is a great company that, hopefully, will show its performance. >> when i speak to people, they are not talking about when this will happen or if, that perhaps the whole ipo goes into a deep freeze and does not happen at all. >> there is a lot of work still ongoing. the company, the government did all of the work to make it a -- company. an indication that the ipo is ongoing. the preparation has never stopped. we should be, as we always said, as a company, for listing in the second half of 2018. we are doing a lot of work. committees from the government that overlook what we are doing, and -- to make sure -- >> you have a set of accounts for u.k. and u.s. standards already? for the core company itself? >> the requirement fo

he defended plans for the ipo in exclusive interview with jonathan ferro. >> -- a lot of the questions in the -- and the media coverage and what you see is about the ipo and when it will happen. demand for theof , and the- the listing detail we show. how are performance and -- we are the highest producer, the most efficient and reliable. this is a great company that, hopefully, will show its performance. >> when i speak to people, they are not talking about when this will happen or if, that perhaps the whole ipo goes into a deep freeze and does not happen at all. >> there is a lot of work still ongoing. the company, the government did all of the work to make it a -- company. ipo iscation that the ongoing. the preparation has never stopped. we should be, as we always said, as a company, for listing in the second half of 2018. we are doing a lot of work. committees from the government that overlook what we are doing, and -- to make sure -- >> you have a set of accounts for u.k. and u.s. standards already? for the core company itself? >> the requirement for listing by the listing venues,

. ♪ jonathan: from new york city for our viewers worldwide, i am jonathan ferro. yield.""bloomberg real ♪ up, trade warng fares to geopolitical concerns. one thing washington can guarantee is more debt. the u.s. needs a foreign investors to step up. we begin with a big issue. geopolitical risk, the new market concern.