♪ jonathan: i am jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ coming up, amazon joins the -- $1 trillion worth of bonds this year alone. white house volatility, gary cohn could quit. counting down to jackson hole janet yellen and ecb president , mario draghi meet in wyoming. we begin with a big issue, a day of -- and amazon joins in. >> that is the elephant in the room for us, what are they going to be tomorrow? >> it is concerning, but from a credit perspective you have an opaque business model. you don't have a lot of disclosure to the markets and that makes it tough for us. >> this is eyed at amec you see dynamic you see across the market, still after we are well into a fed hiking cycle, the borrowing costs are still near the lowest they have ever been. it remains a good time for corporations to borrow money. >> there is an ongoing demand for yield. you think about it, the fed has gone through a process of slowing downward shoot adjustment. it's happening at a glacial pace. there is an extraordinary demand.

you are watching "bloomberg real yield." ♪ ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." i want to head to the auction block now where there is an appetite for long dated bonds. lastly, at&t. this week. , gm the automakeeek, gm. the automaker sold $3 billion in bonds. united states treasury says it will maintain the issuance of longer-term debt at $62 billion. officials studied the introduction of ultralong bonds and borrowing needs to increase is the fed traces balance sheet. elsewhere, and eye-catching debt sale they got a lot of people talking. i sold $1 billion of bonds due in 2023 have yield of 6.75%. investor demand was massive. market pointing to this iraqi offering as a warning sign of a potential credit bubble, a debt bubble. a bubble is something that former fed chair alan greenspan spoke about this week. he told bloomberg by any measure that real long-term interest rates are much too low, therefore unsustainable. when they move higher, they're likely to move reasonably fast. we are experiencing a bubble, just not in stocks, but b

you're watching bloomberg "real yield." ♪ ♪ jonathan: jonathan ferro from new york. this is bloomberg "real yield." federal reserve chairman janet yellen said any hope of reform is modest and it will make the banking system safer. potentially putting her at odds with the trump administration. herquestion mark hangs over future. martin haggert from black rock and matt thomas from voya and ira jersey. martin, why don't we get a bid and we put the emphasis on the bid after the speech from the treasury market? martin: the bar for yellen's speech was really low and very little expected to come out of it and she definitely did not disappoint. where there was potentially some small hope she may bring in the current level of financial conditions and how that may play into monetary policy, but she barely brushed on the topic and talked predominantly about regulation as you referred to, and we had a couple basis point rally and a couple basis points lower and the dollar is weaker. jonathan: let's talk about the financial condition and the tension between loose retention and el

jonathan: from new york city to our bureaus worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ coming up, amazon shorts the debt issuance spend. almost $3ught trillion worth of bonds alone. could quitary cohn amid reports the next day that steve bannon could be fired. countdown to jackson hole. janet yellen and mario draghi meet in wyoming. we begin with the big issue, europe monster debt issuance and amazon joins in. >> that is really the elephant in the room for us. where are they going to be tomorrow? it's a little bit of a leap of faith here. >> it's a little concerning. from a credit perspective, you have kind of an opaque business model here. you don't have a lot of disclosure to the markets. that make it tough for us. youhis is a dynamic really see across the market. even after we are into the fed hiking cycle, the borrowing cost for the u.s. corporate and european corporate are near the lowest that they have ever been. this remains a very good time from a cost perspective for corporate to borrow money. >> this still is d

jonathan: from new york city i am jonathan ferro. 30 minutes dedicated to real fixed income. this is a bloomberg "real yield ." ♪ coming up, the world's biggest central bankers gather in jackson hole and they hear from mario draghi. janet yellen offers a broad view of the rules and they look at the height of concerns over the u.s. debt ceiling. we begin with a big issue in jackson hole, little about yellen and maybe more about draghi. >> i'll be paying more attention to mario draghi. >> investors should be paying more attention to draghi, not yellen. >> he was walking on eggshells. >> everything, again, is so data dependent. obviously if the euro zone was , to show any signs of rolling over, core inflation drifts back down it may be very difficult , for them to announce anything at all but certainly the market is looking for some clarity. >> the central bankers want to be very gradual, very careful in both signaling and implementing the withdrawal of this extraordinary accommodation they put in place the last few years. >> how do you exit in a careful way where you don't si

i'm jonathan ferro. we are 20 minutes away from the cache a couple of weeks of losses on the s&p 500. futures are a little bit softer now. some broad based weakness. 24 of 30 dow stocks down on the month led by disney. the dow average indicating a third session lower. down by .1% on the s&p 500. other asset classes. the bond market through last week. yields by a basis point. in the fx market euro starting to push higher. central bankers are gathering in jackson hole later this week. as janet yellen speaks there is growing speculation of how long she will be the fed chair with her term of this coming february. only 17% thought she would still be chair come march. half thought she would be succeeded by gary cohn. mike mckee joins us with more. still with us is chris harvey of wells fargo. you're on your way out. how much is the janet yellen possible lame-duck chairmanship going to affect that meeting? not at all. we don't know whether she will be replaced. we knew going into the 2010 meeting that ben berna

"real deal" with jonathan ferro is next. ♪ we check our phones 85 times a day. so it only made sense to create a network that keeps up. introducing xfinity mobile. it combines america's largest, most reliable 4g lte with the most wifi hotspots nationwide. saving you money wherever you check your phone. yeah, even there. see how much you can save when you choose by the gig or unlimited. call, or go to xfinitymobile.com. xfinity mobile. it's a new kind of network designed to save you money. city to: from new york our viewers worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ jonathan: coming up, the u.s. payrolls report delivers. jobs increase more than expected and unemployment drops to a 16 year low. former fed chair alan greenspan says there's a bubble, but not in equities. it's in bonds. hertz leaves investors flying. the auto company gives bond traders the silent treatment. we begin with a big issue. a solid job report the united

. ♪ ♪ 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, the u.s. payrolls report delivers. jobs increase more than expected and unemployment drops to a 16 year low. former fed chair alan greenspan says there's a bubble, but not in equities. it's in bonds. hertz leaves investors flying blind. the auto company gives bond traders the silent treatment. we begin with a big issue. a solid jobs report in the united states. >> this is a very fine report.

i am jonathan ferro. alongside alix steel. futures are solid. up a 10th of a percent after erasing losses yesterday after the session on tuesday. and f market, who wants to be aggressivelyx long on the euro? the confidence numbers are outstanding. economic sentiment at a decade high end a week away from the ecb meeting. treasury yields unchanged on the session, but near the lower end of the range. alix: taking a look at the impact of hurricane harvey on the markets. take a look at gasoline, another two-year high at 5% and the spread getting wider. wti versus brent off by six dollars, really speaking to the overproduction and oversupply of oil in the u.s. as the impact of hurricane harvey is truly felt. 2/10 of a -- up by percent. steady for now. and the commodity we are really watching, copper. seven -- $7ch million a ton? and emma chandra has first word news. emma: hurricane harvey hitting louisiana, making its second landfall today coming ashore in the western part of the state after dropping 50 inches of rain on southeast texas. it is blamed

i am jonathan ferro alongside alex still. the market something like this, risk off, yields plunging lower by five basis points. we were so 210 earlier in the session. in the equity markets, futures negative about 0.6% on the s&p 500. in the equities market, weaker dollar story against everything in the g10. that is your cross asset risk off picture. here is alix steel. alix: retailers, this is a have and have not situation. finish line makes activewear, total down 50%. their second order earnings below consensus. they expect sales to be well below consensus. they even have the poison pill deal for any potential takeover, bad news. right side, initially best side. they were up 6% premarket, now down 4%. you have second quarter con cells up 5%. you have the company saying this es arengle-digit con sal not the new normal. that is what brought the stock lower 4%. 0.5%.on moving you want to take a look at the fed stocks after what happened over the evening with that missile over japan. raytheon is up 25% this year so far. jonathan

. ♪ >> from new york city and to our viewers worldwide, i'm jonathan ferro. 30 minutes dedicated to real fixed income. this is bloomberg "real yield." ♪ jonathan: the world's biggest central bankers gather in jackson hole and they hear from mario draghi. janet yellen offers a broad view of the rules and they look at the height of concerns over the u.s. debt ceiling. we begin with a big issue in jackson hole, less about yellen and maybe more about draghi. >> i'll be paying more attention to miora

jonathan: i am jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ coming up, amazon joins the -- $1 trillion worth of bonds this year alone. white house volatility, gary cohn could quit. counting down to jackson hole, janet yellen and ecb president mario draghi meet in wyoming. we begin with a big issue, a day of -- and amazon joins in. >> that is the elephan

jonathan ferro is off today. let: for 30 minutes dedicated to fixed income, this is "bloomberg real yield." ♪ gundlach saying the time to reduce risk is now. and he u.s. inflation numbers for fed chair janet yellen to chew on. where does that leave the central bank now? we start with a big issue. nerves gripping the market. >> the reach for yield is apparent in every asset class. >> we know the insatiable chase for yield continues. >> we should be watching for excesses or buoyancy to get to a tipping point. >> it should not surprise that this thirst for yield has gotten into the high-yield market stree. am i being compensated for the risk i'm taking on? >> you have to be buying credit somewhere whether it's high-yield or high-quality corporate in an effort to get some spread over that which they can earn in treasuries. as a consequence, you have a sort of natural buyer for it even if they have to hold their nose for it while they're doing it. >> there comes a point in most investment cycles where you have to st

i'm jonathan ferro alongside david westin and alix steel. futures are firmer. sentiment good in the united states and europe. we are up by two tents of 1% on the s&p 500. at 1.1lar is stronger 814. treasuries pretty stable and we have been range bound. there's not much of a range to say. that is where we stay. alix: we have good reads on the economic data. at 8:30 a.m., personal income and spending. at 10:00, you get the iso manufacturing data for july. offer throughout the morning, we would get u.s. automakers reporting july light vehicle sales. onid: now to get an update what making headlines outside the business world, we have emma chandra with first word news. emma: u.s. has taken an unusual move against the head of state. they sanction the venezuelan president, accusing him and his government of undermining democracy. that came after a vote that was a step toward rewriting the country's constitution. meanwhile, the wife of the venezuelan opposition leader says he has been taken from his home by authorities, so has the mayor of caracas. the white house is l

jonathan: i'm jonathan ferro and this is bloomberg "real yield." time for the final spread. over the next week we'll get another round of brexit and nafta talks. teresa may will visit japan and we'll get a series of u.s. economic reports that will include inflation, autos, and its payroll friday already, believe it or not. the president of the united states will also be making a public push for overhauling taxes. still with us is martin hegarty from black rock and matt toms and ira jersey. what we have to talk about is what is happening in d.c. matt toms, we have a debate over the debt ceiling and this debate over the deficit and what's going to happen with the budget going forward and tax reform etc., a government shutdown. the only tension we've seen so far is in the treasury build curve and wonder if it can bleed out from there and go else where. what are your thoughts. matt: we don't think it will bleed out and we think a shutdown would be political suicide and if it were to happen would be extremely short lived and don't think anybody gains from that. and ultimately thi

i am jonathan ferro alongside david westin. alix steel is away today. 30 minutes away from the opening bell. big losses yesterday. the biggest one-day move in the s&p 500 since may. the dow, the nasdaq deep into negative territory. today, stability. s&p 500 futures dead flat. no stability for the dollar weakness. 49 is how the single currency trades. the treasury market does show up a bit of a stable reaction. across nasdaq.ry let's get you up this bead on the movers. here is abigail doolittle. abigail: happy friday. lots of premarket movers. tradingshares of deere down after they missed estimates. they also provided a sales forecast and eps view that some are saying is unrealistic, since the company is saying its north american agriculture business is likely to decline. this stock up about 20% year to date. quarter. was not a wow also the indian-based i.t. services company. the ceo has resigned. this is not an entire surprise, because it has been a spat between the company and the board. analysterg intelligence saying what cou

ain't jonathan ferro -- i am jonathan ferro. futures are positive. 100 points on the dow. biggest weekly lawsuits march of this year came through last week. the story in europe decent as well. the dax up by one percentage point. stronger dollar retracing the move last week. pointsmuch every day the you need come out of the u.k. this week. retail sales, a lot we will see over the next couple of days. about 12 basis points off the in for 2017 we hit engine -- june. let's get some headlines outside the business world. general that's top south korea. the chairman of the joint chiefs easingf reassured moon diplomatic tensions with north korea is the priority. president trump is being criticized for failing to denounce white nationalists after the deadly rally in virginia. that led the white house to release a statement saying the president condemns all forms of violence, hatred, and that includes white supremacists and neo-nazis. one person died at the rally when a car ran into a crowd of counter protesters. the trump administration will go ahead with plans to invest in china i

. ♪ >> from new york city and to our viewers worldwide, i'm jonathan ferro. 30 minutes dedicated to real fixed income. this is bloomberg "real yield." ♪ jonathan: the world biggest central bankers gather in jackson hole and they hear from mario draghi. janet yellen offers a broad view of the rules and they look at the height of concerns over the u.s. debt ceiling. we begin with a big issue in jackson hole, little about yellen and maybe more about draghi. >> i'll be paying more attention to mario draghi.

i am jonathan ferro with david westin. alex real has taken the day off -- alix steel has taken the day off 30 euros goes nowhere at $1 .1871. but the dollar index is heading drop. emir basis point out of the -- a mere basis point. david: coming up on a program, we will have mohamed el-erian. plus, fresh reaction from the white house with gary cohn. in the meantime, we want to go thatshington for the news broke yesterday. we learned independent counsel robert mueller convened a grand with partial connections between the trump campaign manager the russian government. has worked on the whitewater investigation as well as being an assistant attorney in new york. she is now a law professor. she joins us live television. we also have bloomberg's white house correspondent toluse olorunippa. toluse: we now know the special counsel bob mueller has been investigating the matter come a ties between the russian government and the trump campaign has been panel, is playing, expanding, looking at trump's businesses, looking at his son-in

jonathan ferro asked the imf deputy director about the nation's daunting debt load. ♪ >> what is your advice to china at the moment? what do they need to get done by 2022 to ensure the number is not going to be a huge problem for the stability of their economy? >> yeah, we have seen the senior leadership in china come together already and decide and define financial stability and the building risks in the financial sector as a matter of concern of national importance. i think that is the first thing. they have also taken the first steps in reining in credit growth, we have seen a major tightening of financial supervision. the economy is quite strong right now and i think we need to see two things. when is, we need tightening of financial conditions, supervision to be sustained, not just for a few months but for a few years. in the face of a slowdown of course as a result, in the face of some credit event, as a result of the tightening, to keep going despite it becoming more and more difficult is one thing, but the second and more important thing is that china has to find new sources o

. ♪ >> from new york city, i'm jonathan ferro, this is bloomberg real yield. leverage has been building up over the last year or so. >> we are seeing a bond bubble because it yields are at multi-year loads. >> even as the fed describes it they are behind the curve. >> the cyclical trend is getting longer in the tooth. oliver: welcome back to bloomberg businessweek. i'm oliver renick, you can catch us on the radio, sirius xm and on the stations around the world. in the business section, why european soccer clubs see american audiences as a way to reach a billion dollars in revenue. >> the european clubs, the famous ones, manchester united, barcelona, all these clubs are coming into the u.s. they see it as a principal growth market. we have a vibrant sports market here but for soccer it has not built up in the way it has for football or basketball. oliver: soccer is a huge sport around the world. there is no sport that is as ubiquitous. here, americans, we are about our own. it seems there is a growing support for soccer. maybe it is tied to globalization. there

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, the u.s. payrolls report delivers. jobs increase more than expected and unemployment drops to a 16 year low. former fed chair alan greenspan says there's a bubble, but not in equities. it's in bonds. hertz leaves investors flying. -- flying blind. the auto company gives bond traders the silent treatment. we begin with a big issue. a solid jobs report the united -- in the united

. ♪ ♪ jonathan: i am jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ coming up, amazon joins the -- $1 trillion worth of bonds this year alone. white house volatility, gary cohn could quit. counting down to jackson hole, janet yellen and ecb president mario draghi meet in wyoming. we begin with a big issue, a day of -- and amazon joins in.

. ♪ ♪ jonathan: i am jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ coming up, amazon joins the -- $1 trillion worth of bonds this year alone. white house volatility, gary cohn could quit. counting down to jackson hole janet yellen and ecb president , mario draghi meet in wyoming. we begin with a big issue, a day

ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ jonathan: coming up, the u.s. payrolls report delivers. jobs increase more than expected and unemployment drops to a 16 year low. former fed chair alan greenspan says there's a bubble, but not in equities. it's in bonds. hertz leaves investors flying blind. the auto company gives bond traders the silent treatment. we begin with a big issue. a solid jobs report in the united states. >> this is a very fine report.

jonathan ferro is off today. let: for 30 minutes dedicated to fixed income, this is "bloomberg real yield." ♪ gundlach saying the time to reduce risk is now. and he u.s. inflation numbers for fed chair janet yellen to chew on. where does that leave the central bank now? we start with a big issue.

. ♪ 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." >> coming up, saying the time to reduce risk is now. plus, $1.5 billion. inflation numbers for fed chair janet yellen to chew on. where a central banks are now. gripping the market. 's every asset classes. watchful.ld be this does not surprise me has reached into the high-yield market. you have got to step back and sam i think fully compensated for the risk? get some spread, you have a natural buyer for it even if they have hold her nose while doing it. >> i am nervous about almost every. on capital, is a lot less from -- more important than the return of capital. >> a lot of the people who got it right at the beginning of the rally are saying, this cannot go on forever. scarlet: one of those big names was just good luck -- jeff goodlach. this is not the time where you say i can buy anything and not worry about the risk of it, the time to do that was 18 months ago. joining us now is cohead of global high-yield and greg bishop, at rbc we

jonathan: from new york city to our bureaus worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ coming up, amazon shorts the debt issuance spend. almost $3ught trillion worth of bonds alone. could quitary cohn amid reports the next day that steve bannon could be fired. countdown to jackson hole. janet yellen and mario draghi meet in wyoming. we

a warm welcome to bloomberg daybreak, i am jonathan ferro alongside david westin. alix steel is onside -- on assignment. futures are treading water on the s&p 500, decent gains elsewhere with tech stocks getting a boost off the apple earnings. in the fx market, a stronger euro story, 1.1835. yields are higher by two basis points, 2.27 is your yield on a 10 year. 8:15, weming up at

. ♪ 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, the u.s. payrolls report delivers. jobs increase more than expected and unemployment drops to a 16 year low. former fed chair alan greenspan says there's a bubble, but not in equities. it's in bonds. hertz leaves investors flying blind. the auto company gives bond traders the silent treatment. we begin with a big issue. a solid jobs report in the united states.

i'm jonathan ferro alongside david westin and alix steel. futures are softer after yesterday's solid gains. down 4/10 of 1% on the s&p 500. the euro and the yen stronger. briefly, up one third on that trade right there. yields are down by three basis points. 2.19 on the u.s. 10 year. let's get to some movers with alix steel. alix: want to update you on breaking news and hour ago. this is fiat chrysler's adr up 4% in the premarket. it is considering a plan to spin off maserati and alfa romeo brands parts unit. with focus on jeep and fiat chrysler brands. that is above its october 2015 spin off price. how much would this be worth to fiat? they could be worth over a billion dollars with all those luxury brands. we can blame what is happening over with the slide, but let's take a look at lows come off 5% in premarket, looking at the worst day since 2012. be, butre sales did they really trailed home depot. quarterfifth straight that lowe's has trailed home depot in terms of sales growth. i've been hearing that story for at least 10 years with the