Silence. Bloomberg will be covering those events through the morning. Alix 18 years. In the markets, you have seen the s p hold steady, but the churn beneath it has been quite staggering. A huge, unbelievable shift, added momentum into value since value weeen into have seen since 2009. Youre seeing some buying in the bond market. Yields down by about two basis points. Over in europe, couldnt decide on a bond bear or bull day. Time now for the global exchange, where we bring you the market moving news from around the world. Joining us are bloombergs enda curran in hong kong, in london, emma chandra, and Michael Mckee joins us in new york. The Hong Kong Exchange made an unprecedented 36. 6 billion offer for the london talk exchange. Bloomberg london Stock Exchange. Bloombergs enda curran has more. Enda obviously this is a very ambitious corporate transaction. , itably more importantly would be a real test of Investor Perception towards hong kong. Remember, this raises all kinds of questi
Right now. Coming up, still sticky inflation has fed official sounding hawkish, feeling a continued crime climb in treasury yields and signs of weakening demand on thursdays 30 year sale. Maybe the feds job is not finished yet. We have a lots of pricing pressure from services. Fear free acceleration. Where is the real acceleration going to come from . It is not exactly what the fed wants. I think they are done on rate hikes. I dont think the fed has done enough. That will bring inflation down to 2 . The doors open for a hike in november. It could be the fed skips the next meeting and then hikes again. We do not see rate cuts in 2024. We have a lot of crosscurrents in the data. The fantasies the fed sees putting inflation down as a marathon not a relay race. Katie joining us. Eric, when you put together everything we learned on the economic front from ppi to cpi in the past 24 hours, what does this mean for the fence after the feds path forward . Eric i think the development was good. C
Coming up, a hawkish fed sends treasury yields surging to cycle highs erasing highgrade bonds 2023 gains in the process as in the u. S. Government hurdles towards a shutdown deadline. A new world. We have seen a precipitous rise in a short time. Rapid moves. Longer yields are likely to move higher. Towards 5 . Bond yields backing up. It is not shocking that 10 year yields are increasing. Ask the dynamics in the bond market are changing. There are supply and an unmanned and demand dynamics with treasuries. At these leveled fixed income tax attractive. The bond market is testing the feds resolve. You could get a situation where the fed lost control of the backend end of the curve. Higher yields and concerns about growth slowdown. Hard to know where to go from here. A new world. Katie joining us now is Matthew Diczok and blake gwinn. Is this a new world . Matthew yes, the fed has a communication platform that is correct. As opposed to what they were telling us the last two years and they
2 . 1. 6. Cpi is 1. 7 or that allows the fed to go slow. Gradually pushing inflation back to normal, we dont see anything that will push inflation to levels where becomes a market issue or forces Central Banks to accelerate rate hike plans. You should probably start to tighten when you see the whites of the oz of inflation the eyes of inflation. This isnt anywhere near the whites of anybodys eyes. We want some duration on portfolio, but too much duration is risk. We dont think this trend is going to be structural. It is transitory in nature. The bond markets continue to be distorted. It is extraordinary to see. We just talked about u. K. Inflation heading out, putting pressure on inflation rates all over the world. On markets are still not responding and appeared very stretched. Jonathan joining me around the table is George Rusnak of wells fargo, kathy jones, fixed income usategist, and coming to from atlanta is matt brill of invesco. You, lets start with inflation for the weekend whi
Core cpi is 1. 7 or 1. 6. It allows the fed to go slow and not disrupt market conditions. Gradual pushup in inflation back to normal, we dont see anything that will push inflation to levels where it becomes a market issue or forces Central Banks to accelerate any rate hike plans they may have. You should probably start to tighten when you see the whites of the eyes of inflation. 1. 4 core pce aint anywhere near the whites of anybodys eyes. The biggest risk is clients getting in and eyeing duration right now. We want some duration on portfolio, but too much duration is risk. We dont think this trend is going to be structural. It is transitory in nature. We think investors should be rewarded for going on the other side of that. The bond markets continue to be distorted. It is extraordinary to see. We just talked about u. K. Inflation heading up, putting pressure on inflation rates all over the world. The bond markets are still not responding, and appear very stretched. Jonathan joining m