The previous three sessions. Nymex crude, another reason that we could see stocks rally into the close. We are watching the Energy Markets very closely. We have had a monster of a deal today. It agreed to by pioneer for nearly 60 billion. It will make exxon by far the biggest player in the permian basin. Heres what the ceos of both companies told us starting with the pioneer ceo. Guest you have to become a diversified company. The question is do we do it ourselves or become part of a company like exxon mobil . I think exxon has the best stock of any of the diversified companies, the best Growth Opportunities and for this transaction, shall companies cannot survive on their own long term. They will have to merge up and become part of diversified companies is my general opinion and this should happen over the next five years. Will it be like private guys getting together or what you did reaching for exxon that has a huge reach all across the globe . Guest as you know, there are only two parts to diversify in the majors. Conocophillips versa fight and ox eat diversified. Shell companies were have to do it on their own or merge into one of the diversified companies. Thats my general opinion. Does this merge or change any Investment Decisions that you will make for stuff out of shale like in guiana, mozambique . Will you look for acquisitions outside of the u. S. . What were doing is very aligned with our strategy. We are looking for competitively advantaged investments. We have an unconventional business. We have had the same focus on productivity and Resource Recovery and capital and cost efficiency. Theres a natural synch. Our businesses are of comparable size so its a merger of equals. Scotts business is funding itself and generating additional casca cash, it wont need additional help. Matt that was part of alix steels interview with both ceos. Its a big deal. Can we expect to see more of this m a . Alix absolutely. You have to. If you are a midtier player, you cannot compete with this enormous company. Also a ton of private smaller momandpops that have been responsible for so much growth in the permian recently. Theyre trying to slim down, to be more fiscally responsible and when that happens it usually means you are trying to dress yourself up to sell yourself. Matt we talked earlier that they will now have exxon and pioneer together, a 10 share in the permian basin. 15 . Shell isnt there anymore and bp , i imagine theres lots of opportunity for purchases. Alix we dont know what bp strategy will be until they get a permanent ceo. Occidental is still evolving. Im talking more like devons of the world. Eog. They are good. Devon has a lot of acreage. Also the smaller private equity once. Matt Steve Scalise wins the gop nomination for house speaker. This is a very big deal. We are seeing these headlines. There were times when we thought we wouldnt get a speaker for a while. Now it seems like the first day of voting, we are getting one from the republicans in the house. Hang on one second. I want to go down to washington, d. C. Kaylee, you heard applause now we have it confirmed that Steve Scalise will win the nomination for gop house speaker. He was cleared to do this, we dont of the breakdown of the vote but after a proposal to change the conference rules today it would have required that anyone to get the speakers nomination secure 200 17 votes from the republican conference. That did not pass so the threshold was much lower. 113 individuals voted for Steve Scalise. 99 for jim jordan. While he has gotten the nomination, it could still be very difficult for him to get the gavel if not enough republicans ultimately support him. Willie see this go to the floor and we dont have news on when the floor vote might happen, it is not clear how money rounds it will take for Steve Scalise to become feature speaker. In january, it took team rounds for Kevin Mccarthy to get it. We could be looking at another protracted battle because it does not look like at this time Steve Scalise has the report support of enough republicans to secure the gavel. Matt how will this look when it comes to the whole house . In Kevin Mccarthys boat when he was ousted, all of the democrats voted against him. I imagine that no democrats will vote for Steve Scalise either. It is likely they wont. They are likely to vote for Hakeem Jeffries that will make this a republican issue. The need to get 217 votes. That leaves room for four republicans not devote. That means Steve Scalise we have to do a lot more to get the gavel. This could come down to what jim jordan has to say and what the rest of the leadership ticket could look like. Steve scalise has been the majority leader and now it will be a question of who fills that seat. There are questions of what this could look like and the contours could define how many republicans will get on board to support Steve Scalise. Matt im not sure if you said, but when is the next step . When will we know when the next vote is . Im looking for updates. We dont know yet at this time when the floor vote happen. There are number of republicans who say they will still vote for jim jordan on the floor who are speaking to bloomberg and other reporters right now. We will bring you the news of when the floor vote is scheduled when we get it. Matt thank you. Covering the news on the hunt for speaker. The gop have chosen their man now. The question is, will enough of them vote for him to override the democrats who dont . U. S. Producer prices rose by more than forecast in september jumping. 5 making it the Third Straight month of increases for ppi. Mike mckee is at the Federal Reserve ahead of the september minutes release at the top of our. In terms of inflation, it looks like its not as bad as it looks. Goods prices rose by. 9 much more than services and of that, two thirds was energy. 5. 5 rise in gasoline prices. We didnt see the same thing on a retail level this past month. It looks like cpi may not follow that but the fed will be interested in other areas of the inflation picture particularly for cpi tomorrow to see if Service Industries are still raising prices and to see if Goods Industries are raising prices on a retail level we are seeing on a wholesale level. Cpi yearoveryear we are looking for that tomorrow morning at 8 30. How does it look if you average out the past three months . Are we still headed in the right direction and do you expect another increase from the fed . If you average out and annualize, we are getting inflation into the 2 range and thats people will thats what people want to see. If we dont get a surprise tomorrow, im not sure there will be anything in the minutes that will change peoples minds. The markets will price for no move on november 1. Matt we did not have the hamas israel situation when these notes were prepared. There hasnt been a huge impact in the energy market. If this conflict were to spread and that were to happen, the fed would have to think about what it will do depending on what Commodity Prices do. At the moment, it is not likely to have an impact. Matt up next, birkenstock goes public today in the fourth big ipo in a month. We will discuss with our guest. This is bloomberg. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Matt this is bloomberg markets. Today is the fourth big test of the ipo market in a month with the debut of birkenstock. Lets bring in brianne lynch. You have a unique position. What do you think about the ipo market in general . Before or can stock and we are waiting for the shares to trade. What does the market for ipos look like . Guest thank you for having me. Its still a quiet market for ipos although we saw activity previously, most of those are trading flat if not down. If thats the indicator for more companies to enter the market, it wasnt. We are still waiting and i think the poor Market Performance we saw in september, the increased geo local risks we have will lead more companies sitting on the sidelines probably waiting until 2024. Matt does it matter in the case of birkenstock that this is a really old Economy Company . The others are dealing with hightech chip design or new gig economy ideas . Does it matter that birkenstock makes shoes and sells them . Guest it does. This is a totally different business. This is a 250yearold company that was family for six generations. It was just bought two years ago at 4. 3 billion valuation. And at the valuations they are talking about when this launches, you are looking at over double in two years. The companys growth has proven that. It has been a brightpoint in a market where a lot of companies are struggling. I think the growth they have seen in revenue and operating margins is helpful. They are a cornerstone brand when it comes to the Global Retail market. Consumers from gen z to boomers all of birkenstock so this makes them a different story. Im curious to see how investors end up receiving this stock when it does hit the market. Matt it is hot right now, very much on trend. I got my first pair of birkenstocks this year. Is that a help or hindrance . I remember how popular heelys or crocs were when they came out. Guest thats one of the key questions, where this ipo is pricing has birkenstock trading at 18 to 20 times multiple. That puts it in the league with lululemon and nike. If you look at crocs or dock martin, they are trading at smaller multiples. Investors really believe that this is a brand that will transcend the trend and remain relevant for a long time. It has proven that over the past few decades. It hasnt just been the barbie moment that has made this brand loved by so many consumers. If they can maintain over the long run in a market where Consumer Sentiment is mixed, that will really be the telltale. Matt the heelys chart looks terrible and is done trading. Crocs looks good. I hear they are making cowboy boots now which i struggle to wrap my head around. I think it is paid off well for investors. What are the most important aspects that investors look at when sizing up whether or not to get into it ipo . Guest there are a few table stakes that every ipo needs to show. One is significant growth. Companies growing at 30 plus percent. Can stock checks this box. Birkenstock has shown that their gross operating margins have been proved to 60 . They are one of the most Profitable Companies out of the cohort we have seen most recently that should be attractive to investors. The third thing is a brand and business that investors can understand and bonus points if its a brand they use and love. Birkenstock has those things going for them and any company considering an ipo at the check those boxes as well. Matt can you look at some of the issues that you traded equities in and say this is a company ipo . Can you tell looking at the charts . Guest we can see from our platform the industries that are most interesting to our investors. Ai and Machine Learning not surprisingly very popular. Fintech and depress software as well. Flavio didnt get as much buzz versus other ipos but that softwareasaservice and enterprise tech market is pristine and has the ability to drive good operating margins as well. Thats a scenario where i think theres a lot of investor interest. Matt how difficult is it as we said this is the fourth test in the month of the ipo market. At the same time, we are nearing the end of hiking cycle. Is it good because we are near the andor is it bad because we are still where we could get another hike . Guest its good that there is an and insight and we see where this is going. The broader macro uncertainty that has grown since september when this first cohort of ipos and to the market, its not Encouraging Companies to jump in right now. This is a time when a lot of companies are using to get their ducks in a row so that when they decide the market is right come up they are ready to pounce. I think for a lot of companies that will be a 2024 move. Matt rate to get your insight. Still waiting for the trade. Also waiting for a vote on the house speaker. We have gotten the republicans vote and they have chosen Steve Scalise. Now we are hearing from tom emmert that the speaker vote could be as early as 3 00 p. M. Today. Something to watch as well as the fed Meeting Minutes at the top of our. Netflix debuts a new Television Show tonight with an interesting twist. We will talk to the host of this latenight talkshow. This is bloomberg. Thanks to avalara, we can calculate sales tax automatically. Avalarahhhhhh what if tax rates change . Ahhhhhh filing sales tax returns . Ahhhhhh business license guidance . Ahhhhhh crossborder sales . Ahhhhhh item classification . Ahhhhhh does it connect with acc. . Ahhhhhh ahhhhhh ahhhhhh matt a new latenight talkshow about money, culture, and business premieres this week on Bloomberg Television and streaming on bloomberg originals. The businessweek shout is hosted by max abelson. He will have conversations with interesting people. He dives into what it means to be a genius where he speaks to a few different guests including the u. S. Economist. Guest i put genius because im not sure there are geniuses in the market. You can make a lot of money. You can also be miserable making a lot of money. To me, the real genius is recognizing where you bring in smart people from other fields that complement your own to solve wicked problems. Matt joining us now is the star himself. This is so awesome for me because ive been a huge fan of your writing for neuron a decade now. Youve met my mother. Im really happy for patty that you are doing this as well, your mom. Tell us about the set up. Guest first of all, i am honored that you would say that. I take pride in my body of work as a writer. Being on tv is a very different thing. I feel like i have put a lot into a good reporter and figuring out how to interview people, getting them to say interesting things which is easier said than done. It has been honestly one of the pleasures of my life building this latenight talkshow with really deep colleagues. We met, we came up with the idea with joel weber, kristin powers, the idea of taking themes that would beat subterranean and making them the themes of the episodes. Means we get to sit down with really interesting people and talking to them about things like ambitions, risks, failures. Talked about things that were scary, fun, and moving. Matt it airs tomorrow night, but we can stream it as well. Tell us the highlight for you. Guest in the clip you just watched a 91yearold and a 17yearold and a guy in between who is so cosmic that he has no age. Being able to speak to people who are from all sorts of walks of life. Its hard for me to pick one person because im a wall street reporter so i am dazzled by people who have money and power and interested in them and the impact it has on them. We have people like that. But personally, i also love writers and artists. We have serious artists on the show. We have prizewinners. Its not like everyone has to be extraordinary, we also have people who have lived life normally. Matt we will tune in for sure. This is bloomberg. J. P. Morgan Wealth Management knows its easy to get lost in investment research. Get help with j. P morgan personal advisors. Hey, david ready to get started . Work with advisors who create a plan with you, and help you find the right investments. So great getting to know you, lets take a look at your new investment plan. Ok, great this should have you moving in the right direction. Thanks jen. Get ongoing advice; and manage your investments in the chase mobile app. Nice footwork. And manage your investments man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Youre probably not easily persuaded to switch mobile providers for your business. But what if we told you its possible that comcast business mobile can save you up to 75 a year on your wireless bill versus the big three carriers . Have we piqued your interest . You can get two unlimited lines for just 30 each a month. There are no Term Contracts or line activation fees. And you can bring your own device. Oh, and all on the most reliable 5g mobile network nationwide. Wireless that works for you. Its not just possible. Jon im jon erlichman. Welcome to bloomberg markets. Matt and im matt miller. Lets get a check on where the markets stand. After three days of gains the s p 500 down today. Off 0. 2 at 4350, even though treasuries and oil are moving the right direction. Yields coming back down. They were lower at 4508. Nymex crude last week traded for 95. Now down another 1. 67. Even after the jump we saw postisraeli invasion, or the invasion from hamas, oil is still relatively low compared to last week. Jon very volatile, to say the least. Staying with the Energy Sector we have to come back to the deal of the day. We had the reports so perhaps no surprise to some. Exxons purchase of pioneer. Shares had been moving higher on those reports but it is up on the day about 0. 8 . The maker of ozempic with an update on the possibility of helping stop kidney failure and this has been such a story that it is taking a bite out of the kidney dialysis companies. We will track those names. There is uncertainty in the air but the ai boom is real. Adobe took its message to the Analyst Community this week. We have seen shares moving higher on some of that excitement. They are up about 3 . On a day when you have birkenstock going public it is interesting that lvmh had a softer sales picture. That stock off 3 . Matt we continue to wait for birkenstock to trade. 46 yesterday but i saw it indicated around 40, but it has not started trading. Lets turn our attention to the middle east as the attack in israel was unfolding. A letter signed by student groups at harvard spurred backlash after it laid so response on israel. It ignited controversy that has drawn the likes of bill ackman and University President larry summers, who posted on social media he is second by the universitys silence in response to the war. On one of his posts on x, he wrote, in nearly 50 years of harvard affiliation, i have never been as disillusioned and alienated as i am today. Joining us is david westin with former treasury secretary larry summers. David thank you for being here. You did take issue on x. Found what you tell us what you found objectionable in harvards initial reaction. Larry the statement by 30 student groups blaming all violence on israel was a moral absurdity that appeared to reflect the views at harvard. I thought it was very important that the harvard administration, the harvard leadership, made clear that those students were not speaking for the harvard community. At the same time, in the same way that previous leaders flew the ukrainian flag over harvard yard after putins invasion, in the same way that harvard stood with america after 9 11, i thought it was appropriate for there to be a strong harvard statement condemning in the strongest, possible terms, Harvard Hamas terrorism. After a couple of days without such a statement i expressed my view publicly, having expressed it privately before. There was an initial statement that, frankly, i was not very strong and did not distance harvard from the student group. Now i am glad to report that president gay has condemned terrorism in strong terms and has distanced harvard from the 30 student groups. The kind of leadership response that i was looking for has now happened. There is still a lot of uncertainty and confusion. These are not going to be easy days to navigate and there are agonizingly difficult questions around the response. On the one hand there is a right of selfdefense and a right of response. On the other hand, when hamas is using human shields, using hostages as human shields, there are incredibly difficult questions about the appropriate and prudent and morally right response. But it seems to me that if University Communities want to make their contribution to that debate, the necessary precondition is that there be absolute clarity of the kind President Biden provided yesterday in the condemnation of terror. That is why i have been so disappointed, i have to say, in the collective response of americas Academic Leadership to what has happened. If universities wanted to take the position that they did not respond to the issues of the day, that they focused on scholarship, i could relate to that position. I think there are arguments for that position. But given the number of issues on which leadership at harvard and other universities have spoken out, to fail to speak out with equal vigor when it is terror toward israel was, i thought, a real moral failing. I am glad to see that harvard has adjusted its position and glad to see that, to varying extents, other universities are responding. David you are not alone in taking issue. Your fellow harvard economist jason furman has also spoken up. Bill ackman says it is not enough to speak out. We should know the names of the students who participated because future employers should take that into account. Do you think it should go that far . Larry i think bill is getting carried away. Look, david, this letter was issued six hours after the attacks. Many in the groups had no idea there was going to be a letter. Some who probably signed their groups on did not fully know what they were signing. Some, i am sure, were naive and stupid. I do not think this is a time for individual vilification. It is not a time for demonizing israel and not a time for demonizing students who were not careful or who were silly in what they did. That is very important to maintaining a community. Bills entirely right. I would do the same thing as he does in wanting to make sure that the people i hired were not people who stood with hate. But asking for lists of names . That is the stuff of joe mccarthy, not what i think strong business organizations or universities like harvard should be doing. I think we have got to keep a sense of proportion. We have got to keep the temperature down. There are incredibly hard questions ahead of us around the response and they are not going to be good answers. But we may find less tragically the answers if we can recognize the clear moral lines, and beyond that, support open debate. David you are the former president of harvard and now macro economist. It is early going but as a macro economist looking at this right now, do you have any anticipation of what this war may mean for the Global Economy . Larry if it does not spread, i dont think the global Macro Economic consequences will be large. There may be some positive impact on the price of oil. There may be some tendency to move to safe havens like u. S. Bonds. But i think the effects will not be large as long as this conflict stays contained. But we do not really know fully about the iran nexus with respect to this conflict. We do not know about the possibility of spread involving hezbollah. I do not think we can be confident as yet that the conflict will remain contained, much as we might hope. David there can be no excuse for the things we have seen reported out of gaza. At the same time, there are underlying issues on the west bank and gaza. Do you see any room for hope that ultimately, there could be progress in the area . Larry look, you never know, david. It is often darkest before the dawn. I am no expert on the politics of that region. It seems to me terribly important to distinguish hamas, which is a creature of terror committed to the destruction of the state of israel, from many palestinians who have legitimate claims about the lives they have been forced to lead. I hope that a prudent israel will give no quarter to hamas terror. But will, at the same time, recognize there are many palestinians who do not stand with hamas terror, and that ultimate peace depends upon arrangements that reflect their need to live lives with opportunity and security. That is what we all have to hope for. It was out of the terrible young kapoor war that came the camp david agreement. Perhaps it will prove to have been darkest that is what we need to hope will turn out to be the case. But right now, we have had unconscionable terrorism and it would be a real mistake to suggest symmetry at a moment of this kind. David thank you so very much. Larry summers, special contributor from wall street week. Matt thank you, david, and our thanks to the former secretary as well. Jon erlichman back with me on bloomberg markets. While david and larry were speaking we saw the start of trading for birkenstock. What we know . Jon this is our stock of the hour, literally. Birkenstock has begun trading. What is going to be notable, as everybody was waiting for the open, is the first trade was at 41. This got priced at 46. Youre talking an 11 decline. The Bloomberg Team was quickly looking at the data. Ultimately, if you are looking at the data that bloomberg compiles, this technically is the worst opening for a listing of a billiondollar deal or more in new york over the last couple of years. Adding to that, out of more than 300 u. S. Ipos the last century, only nine have fared worse. We have the rest of the trading day but we want to get instant reaction as well. Jessica ramirez has been tracking this and is kind enough to join us. Senior analyst at Jane Hali Associates. Jessica, lets start with this negative reaction to a very high profile deal. Jessica thank you for having me. I am not surprised. It is quite a volatile macroeconomic environment. If you look at the Consumer Discretionary category, we have seen decline with the consumer being very cautious. I am not surprised at that reaction. However, we still see that birkenstock is a very good story. We are happy with the way it sits in the category of comfort, which the consumer has continued to spend on and has evolved. The story of birkenstock we quite like. We are not surprised with that open. Matt is it concerning to buy a stock like this when it is at the peak of its fad . Everybody and his brother loves birkenstock but there are time when these jesus sandals are not as popular. You can see with other stocks like crocs, which is doing fairly well, or heelies, which is no longer trading, where it has been a mistake to buy at the top of the hype. Jessica i think birkenstock is a good story and the reason we like it, i do not see it to be a fad. It has been a trend that has been growing prepandemic which many people say the pandemic was top comfort. But we saw comfort ahead of the pandemic and it only strengthened during the pandemic. A story like crocs and birkenstock, i refer to them as the ugly footwear that became fashionable. They have had collaborations with dior. The list is very strong. When you do that as a brand is you create a halo effect. The brand who is key in doing this and taking that retail playbook was levis and then crocs and now birkenstock. The positive part about birkenstock as a company is it is a heritage company. Usually at a time when the consumer is watching what they are spending their going to go to a brand they trust. Birkenstock is bringing that to light. It is a company with a lot of history, a lot of comfort where you can say this will last me for some time, so the customer will spend. The difference between the crocs and birkenstock story is the priceline. Crocs is much cheaper and birkenstock is a higher price by quite a bit. But overall, i think it is not a trend. There is a lot of strong fundamentals in the way they are handling their story as a retailer. Jon maybe if we ask the question a different way. Beyond comparing it to other footwear makers, we mentioned earlier that the sales picture at lvmh is the name in luxury and did not satisfy wall street today. There is an lvmh connection to this deal. What is this reaction saying about the appetite for Luxury Brands if, broadly speaking, they are relatively well positioned . But if people are jittery about consumer demand right now. Jessica lvmh has been very strong in the reporting in recent earnings the past few years. They are also up against a tough figure. I think that has to be taken into consideration. In the u. S. , we have seen it to be difficult. Europe is starting to slow down and i think it has been questionable to see how china will play out in the luxury sector and consumer overall. There are questions of how does the Consumer Spend luxury for the second half of the year going into holiday . What does that look like for 2024 . Just a lot of volatility in general and uncertainty, which makes sense. Matt great to have your perspective. Thank you for joining us. Jessica ramirez, Senior Analyst at Jane Hali Associates talking about birkenstock. Shares sold for 46 apiece yesterday and started trading moments ago at 41. We will be watching this trade closely. Outside of those shoes we heard moments ago from Steve Scalise, who is also wearing shoes, that republicans have voted behind closed doors to nominate him to be speaker. He has spoken to reporters just now and said congress has a lot of work to do in order to have a floor vote. We are not there yet to vote on speaker of the house, but he said he will be calling President Biden to discuss what is going on, on the border. We will cover all of that and more. This is bloomberg. Explore endless design possibilities. Find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh that first time you take a step back and see everything youve accomplished. I made that. With your very own online store. I sold that. And you can manage it all in one place. I built this. And it was easy with godaddy. I am doing this. With a partner that puts you first. Start for free at godaddy. Com sell matt lets discuss the markets and the minutes with huw roberts, head of analytics at quant insights. When we saw the dot plot, 12 out of 19 voting members said they expect one more hike by the end of the year. But the market seems to be looking through that to the end of the cycle. Does that make sense to you . Huw to be fair, the market took them seriously when the meeting broke weeks ago. They are going to feel stale unless we get something radical. It feels like the market is hoping there is a new narrative in town. We have got a fed pivot and they are focused on financial conditions. I am not sure we are going to have a huge reaction to the minutes unless we get something special. Jon with some of those fed officials you referenced highlighting what has been happening with treasury yields and the possible work that is doing in the feds favor, what is your interpretation . Is the bond Market Action actually having that affect that fed policy might have . Huw yes, and i think it is having that effect. We have got our own measure similar to bloomberg or the investment banks. Financial conditions have tightened materially. But i would be slightly skeptical at the first part of that question in terms of the fed reaction function. I fear we are going back to a movie script we have seen before in recent years where we are in a paradoxical situation. If we believe the fed mantra that lower bond yields are going to start easing conditions and higher bond yields will tighten conditions, then they are at the mercy of the market in terms of policy settings. It does not mean they do not need to hike now because of the price action the last few weeks. But what happens if this squeeze continues and we see yield the lower . I do not believe that is a sustainable longterm situation. I do not think it is consistent with being data dependent. I think it undermines Forward Guidance a little bit. I would be slightly skeptical myself. Matt we have heard that transmission mechanism was slightly muted by the fact nobody has arm floating rate mortgages anymore. Everybody has a 30year and companies had already refinanced before this increase. Not everybody, sab for example, but what is your take on the economy Going Forward . When does a credit crunch start to hit . Huw absolutely. That is the billion dollar question. We would be in the camp that the normal cycle and the rules around the Business Cycle have not broken. We had an extraordinary cycle already between covid lockdown, inflation, bull whip effect of inventory cycles. I think it is more difficult to gauge. I think the fact that all the recession ideas have thrown in hard landing will probably mean we are closer to that hard landing than we have been for some time. There are increasing straws in the wind. You get pepsi saying everything is fine but the former ceo of walmart says consumers are starting to squeeze. I think the anecdotal answer would be that the lags are still there and are slightly longer. We are probably looking at recession at some point. The broader point we would make as a quant shop that focuses on macros there are times when regime shifts. All of the people who are long bonds are predicating that on recession calls. Matt unfortunately, that is all we have time for. We hope to have you back soon. Huw roberts, head of analytics at quant insights. For jon erlichman, i matt miller. This is bloomberg. Encore energy, americas Clean Energy Company poised for production in south texas, energizing america with reliable and Affordable Nuclear Energy fuel with an environmentally friendly extraction process. Encore energy. The power goes out and we still have wifi to do our homework. And thats a good thing . Great in my book who are you . No power . No problem. Introducing stormready wifi. Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Home of the xfinity 10g network. Romaine live from studio 2 at bluebird headquarters in new york, this is the countdown to the close. Im Romaine Bostick alongside katie greifeld. Three weeks removed from the last fed meeting where jay powell made it clear what he wanted. The readout from those meetings drops now. Mike mckee is standing by. Mike at the time of their meeting the minutes show fed officials felt that Interest Rates were now restrictive and broadly restraining the economy is intended. Caution would be warranted i