U. S. Are still high yield. T is keeping the long end i think the flat thing has more room to run. It is the lack of faith we have been seeing for the last seven years. It is a lack of faith in the administration, the lack of faith in the qe in other parts of the world that are keeping bond yield suppressed. The expectation that nothing is going to change and it is the business as usual, i think that is an incorrect interpretation. I think we will see curves steepening again as the right policy mixf the begins to unfold. If you look at most people in the fed, they have been around the block. They have seen inflation pick up when no one expected it to, and they are responding in a way that their Life Experience dictates. The one sign that is waved in front of the market everyday is oil prices. They have been heading in one direction for a while now, and that is having a big impact, at least on the bond market. Jonathan lets bring in our roundtable in new york greg , davis, global head o
The Interest Rates in the u. S. Are still high yield. That is keeping the long end i think the flat thing has more room to run. It is the lack of faith we have been seeing for the last seven years. It is a lack of faith in the administration, the lack of faith in the qe in other parts of the world that are keeping bond yield suppressed. The expectation that nothing is going to change and it is the business as usual, i think that is an incorrect interpretation. I think we will see curves steepening again as the right hand tale of the policy mix begins to unfold. If you look at most people in the fed, they have been around the block. They have seen inflation pick up when no one expected it to, and they are responding in a way that their Life Experience dictates. The one sign that is waved in front of the market everyday is oil prices. They have been heading in one direction for a while now, and that is having a big impact, at least on the bond market. Jonathan lets bring in our roundtabl
We are seeing how this all fits into the focus with theresa may and whether she can work with the labour party in particular. We will be looking to talk about that with our brexit team here at bloomberg. We also have great guests coming up. David thank you very much. Lets get caught up on the markets. Alix here is where we stacked up. Equities have gone nowhere. Volume in europe is pitiful at the moment. I am looking at cable, not necessarily on theresa mays speech, but the chief economist at the boe will talk about where he comes down on the hawks vers us doves side. Selling on the margin coming down on the board. Crude goes down, 0. 8 . There is a risk of oil below 40 if opec does not shock and on the markets. David it is time now for your morning brief. We will get u. S. Job opening numbers and turnover for the month of may. And we will get the keynote address on normalizing the Central Banks Balance Sheet in new york city. Sell 123ury will billion in u. S. 10 year notes. That is al
What should you do with your portfolio . Well tell you. But first, we start with trump tweeting and the market listening. After calling out boeing last week, trump took on lockheed marin this morning, saying the costs are out of control. Billions of dollars can and will be saved on military and other purchases after january 20th. The stocks paid attention. Lockheed pulling nearly 3 . Northrop grummond, General Dynamics. Who could trumps next target be . First of all, on defense. Guy, investable or not . Yeah, i think its ininvestable. When he went after carrier, obviously the united technologies, one of the things we said was, they were in the crosshairs now, hell move on to the next target. United technologies, by the way, made a 52week high and closing on levels we slaft saw a yearandahalf, two years ago. Following in the after market, what is an alltime high. And i think the same thing is going to happen with lockheed martin. In the case of lockheed, it might take longer. This is a
People to look at the market, maybe for the first time in quite some time. So if nothing else, it gets peoples eyeballs on the market. To answer your question, i still think there are sectors. And health care has been underloved for a number of Different Reasons, all of which make sense. But also on valuation, a lot of big cap phrma makes sense here. And i believe the technology which is under some pressure over the last couple weeks is now coming back with a vengeance and i do think there is some opportunities there, as well. Dan, where do you fall on this . Large cap phrma is probably a good spot. They got an initial pop right after the election and gave a lot back there. If youre looking for the yield, looking for a bit of defensiveness. There is a lot of political stuff wrapped in there, but also decent valuation. That suppospace looks interesti me. Im scared of health care, pete. Tell me why i shouldnt be scared of heart attack. The political winds are against it. Its been cheap f