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tv   Bloomberg Markets European Close  Bloomberg  May 31, 2022 11:00am-12:00pm EDT

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guy: tuesday the 31st of may, energy is down, stocks are up, -- stocks are down, energy is up , the countdown to the close starts right now. >> the countdown is on in europe . this is "the european close," with guy johnson and alix steel.
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guy: 30 minutes to the close, 30 minutes to the end of the month. let's take a look at the price action. london is higher because energy is doing fairly well with brent crude up and the inflation data out of europe this morning continues to be shocking and surprise on the upside with economists struggling to keep up in terms of their expectations and as a result of this, there's a selloff in the bond market. look at where we are, up by 12 to 13 basis points today with two years on the move, the curve steepening a little bit today. but not by much. the inflation story is front and center on both sides of the atlantic. alix: but here in the u.s. it looks like you could leak out flat for again for the month with 1.1%, well off the lows of the session, marathon oil the
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best performing stock within that and a selloff in the bond market here, 12 points higher on the 10 year, just like you pointed out in italy. tech is also off the low. it feels like we might be looking at a flat level for the tumultuous month of may but the commodities sector is what's still doing well here. guy: and we knew it was coming. high inflation, it's going to be a big problem for the ecb. let's talk about the day we had yesterday, spain, 8.5 percent, germany, 8.7%. france today, 5.8, a big nuclear power fleet getting away on the energy side little bit. italy, seven .3. taking the eurozone number, alix, remember, we have a
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negative deposit rate with negative 50 basis points in europe and that is a massive problem for the ecb. talking about the fed to be in behind the curve? the ecb might be even further behind. that inflation number is a big, big problem. alix: and a partial ban on russian oil won't help either. the governing council member says that central banks must proceed in an orderly way to avoid threatening the integrity of the eurozone. >> attention will have to be paid to ensuring that the monetary process takes place in an orderly manner and preventing the emergence of unjustified market fragmentation. alix: joining us now, patrick armstrong. can the ecb be orderly when inflation is at 8%?
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patrick: i don't think they do much to markets if they bring it up to zero. it's still an incredibly low interest rate by any historical standard compared to those previous years where we had negative rates. i don't even know if it helps the economy, it is punitive towards banks and i don't think it changes investment decisions. in times of panic it maybe shows that the central bank is there but having a prolonged negative interest rate i don't think it is even fulfilling its purpose anymore. guy: with the market extrapolate? with the ecb they think that everyone is going to extrapolate and think like the red. 50, 50, 50, priced in. patrick: that would be the risk and they could manage that, it's not like they do things quietly. they say this is the plan, we get to zero and see how the economy reacts, how moving away from russian oil impacts the economy, all of those kinds of
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things. you can set the tone without setting a precedent that this is a wave of hikes to follow. guy: what would happen -- alix: what would happen after 50, for example? there was that note that banks are not passing on the higher deposit rates. you do 50 and then what happens? patrick: it just gets rid of the perversity. i don't know if zero is right, but we will see what happens and then they will make a new plan accordingly. zero is still punitive for the banks. banks would ideally like to have a steep yield curve and ideally a rate not at zero, but it gets rid of the punitive measure that basically nobody wants. banks have been able to pass it to some customers but not all of them. guy: is there stagflation in europe and if so what does that say about european assets?
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patrick: to me the definition is slowing growth and high prices and i think yeah, the whole world is in stagflation. definitely slowing growth with higher prices. it's a toxic environment for equities and bonds. that is why we have equities and bonds down double digits. the stag is hurting the earnings component and inflation is hurting bonds. that is the backdrop to position for because i don't see that changing anytime soon. i think that inflation will start to plateau and come down but it will stay so far above central-bank targets. alix: what's the positioning? how do you get defensive with that? patrick: you don't want cash either, the market punishes business models that may generate earnings 10 years from now. the dream stocks with no path to profitability in 2019 that said we may never make a profit, and
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the stock market said your company is worth aliens, when there is an opportunity costs interest rates are not euro. the stock market has to punish those kinds of business models. they will be attracted to companies that create margin squeeze elsewhere. you want to own materials, semi conductors have this for years to come where companies by not only what they need but they hoard chips. try to own companies that create a margin squeeze elsewhere. guy: there are only two sectors, three if you push it, energy and basic resources are up-to-date in terms of sector stories. telecom is also out -- up. every other single sector is a negative territory. inking about cash, the only way you made money this year is the stock market and from the sector point of view that's long commodities. is that something that you think can carry on providing investors with a solution to this problem?
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patrick: i think it has got to be a big part of every portfolio because the stocks are incredibly cheap. oil and gas stocks are not pricing in. if it does anything close to staying close to $100 a barrel, these companies are cheap and they give you a hedge against potential economic disaster from the purchasing power of consumers. basically discretionary spending could be decimated in europe if we see natural gas prices higher. not only does it provide a massive cash flow but there is a hedge against the other kinds of equities you might the investing in. alix: linking it together, preventing margin squeeze elsewhere, i wonder how long that playbook works. what is the tipping point where valuation gets so cheap you want to be buying your favorites? patrick: some companies do not
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fit into a stagflation backdrop. some will be hurt by cyclical headwinds, trade tariffs, sanctions and things like that but when you trade it three times earnings and create a margin squeeze elsewhere because there are many more goods that need to be shipped then there is shipping capacity, a lot of that valuation is just so compelling. it's the tightest dividend by 20%. those are the companies that produce cash flow today and come with a cyclical risk, but the valuations are so compelling i'm happy to own those kinds of companies. guy: it'll be interesting to see the role they play in consolidation. which bottoms first? >> that comes down to the question of a recession. the one thing you can count on
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is that the u.s. consumer spends when they are fully employed, they are going to spend. i think that the fed will blink and not create a recession in the united states. i'm happy to only equities that i own right now and i think there will be a lot of moving parts where the indices don't move much higher but the kinds of companies i'm buying today have significant upside and those with the no earnings technology companies that are priced for massive liquidity, that is not the environment we are in anymore. alix: what do you do with tech? where does that fit in? patrick: i love semi conductor stocks, they generate cash flow with pricing power for years to come. i want to own asml, tokyo, the kinds of companies that make the machines and the chips for other companies. they talk about manufacturer's checks to get the machines out as quickly as possible,
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indicating a strong demand with strong pricing power to me. guy: lithographers he, what an easy word to say. alix: what a show off. [laughter] guy: patrick, thank you. next we speak to the global head of commodities research at citigroup. this is bloomberg. ♪
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>> yesterday in the middle of the night we decided to have a ban on defective 90% of russian oil imports to the european union by the end of the year. alix: that was ursula von der leyen and speaking at the end of a news conference of two days in brussels after eu leaders decided to pursue a partial ban on imports of russian oil. let's get the details here from ed morse, great to see you. ed: likewise. alix: basic numbers, how much
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oil production or exports could be at risk from this partial ban? >> 2.5 million barrels per day. some of it has been at risk for a while, however. a lot of the run-up in prices we have already seen has been a result of european countries moving away from russian oil, building up the price of other oil, particularly brent elated. the world has been in a two tiered system with russian oil at 30% of what atlantic basin crude is like. as this works out we see the increase in the bidding up of rent related crude, but i think it will smooth out over the summer time. oil is fungible. the 2.5 million barrels per day that could be at risk is going to go to some other market. india for example is already increasing imports from russia by one million barrels per day. china is increasing imports from
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russia in the last few weeks and there is more to come with talks of using russian oil for the strategic's. including the things you have been discussing over the last few minutes, the recession. oil demand is definitively on its way down. guy: ok, i want to talk about that but i want to talk about diesel as well. let's talk about the diesel issue and then the overall long-term trajectory. nobody puts a barrel of oil in their car. they do put diesel in their truck. russia produces a lot of it. that ship board traffic is going to be banned under these rules. what impact is that going to have on the diesel market? ed: how much will it have above and beyond what's already happened? the cutoff is already in place. the refinery reduction has meant a big cut of diesel, cut in part
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because a lot of what has been produced cannot find a home. the high software fuel oil cannot find a home and they have had to cut back, which has cut back on diesel flow. meanwhile, we get extra diesel demand in the winter because of heating requirements. we saw perhaps as much as one million barrels per day in demand switching from natural gas to diesel and we are now seeing in those places with that kind of switching natural gas prices coming down to below diesel. the switching will be back and in china we think it's a good 300,000 to 400,000 barrels per day. we are going to see that going back to gas and away from diesel. guy: diesel is less transportable around the world.
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i appreciate what you are seeing -- saying about refineries but it's going out on the afro max and there are not that many of those ships out there. so, what is being produced, where does it go? ed: it goes to places and smuggled into europe, or the bays of south africa. i think the big issue on diesel has been the drop in russian diesel exports accompanied by a radical increase in u.s. diesel exports. the things that we look at every week, every wednesday, when we get the data coming out, it has been astonishing in terms of how the u.s. has been filling in supply of crude and product that russia has not been able to export. the u.s. in the last week exports were 10.6 million barrels per day gross. that's a radical increase from
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the well below nine million barrels per day before the crisis and we have seen it coming up in the diesel pool, the gasoline pool, and crude oil as well. we are seeing some of that comeback in and we have to remember that because of where natural gas prices were as opposed to where they are and where they are going, we had a steady in of diesel in europe because european refineries had to upgrade to hydrogen that came out of natural gas and the natural gas was too expensive so the upgrading units were down to create a demand in europe for diesel, pulling it from other places, including the u.s.. we think that there will be an increase in europe providing throughput over the summer because of the drop in natural gas prices relative to oil prices and we think that there are going to be new exports from the middle east as well.
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alix: you mentioned a demand profile and you guys have been the most pessimistic if i might say in terms of where we are headed in part because of the demand picture. can you help me to understand the removal of the russian oil, the continued product manned and your overall demand thesis? ed: product demand is where the thesis comes in. at the beginning of the year we expected 3.6 million barrels per day of demand increase year on year and we are now down to 2.2 million barrels per day of demand increase and that makes a big difference if you are pulling on a system that is under duress. the other big difference has to do with, you know, where refinery capacity is likely to be. i would say that we are not the lowest but also not the highest on demand. every week you look at everybody , you know, looking against each other and bringing down their expectations of demand growth.
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you look at demand where people thought it was going to be relatively high, the petrochemical industry, associated with industrial demand globally. and it's way off. the discount on propane is a sign that petrochemical demand is really low. that was one of the hopes of oil demand growth, people focusing on jet fuel in particular along with the pete slack that isn't there. so, we think we are staring at per session and that's not a world of robust demand growth. alix: i know that the differentials will be out of whack in part because of the partial oil band and the rejiggering of trade flows, but where is the fair value of oil? you are right, everyone talks about stagflation and possible inflation. so where is the fair value?
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ed: it's hard to say, but it's exaggerated if you look at the curve. the problem is up to 120 and it's a high price for the end of this year and next year and i don't think that is fair market value. you have to look at the costs structure of the industry and where new production is coming and where it would be coming even if we didn't have $123 brent and it's more in the $70 range than the 100 and $20 range. guy: ed, thank you. ed morse, head of city group global commodities research. this is bloomberg. ♪
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alix: it's time for the
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bloomberg business -- ritika: it's time for the bloomberg business flash, i'm ritika gupta . a british pharmaceutical company purchasing up next generation vaccines while they prepared to split with their consumer health unit and last month they announced a takeover of sierra oncology. shares of unilever jumping today as activist investors have been appointed as investors and of the triumph is a stake in the company. the appointment comes after a difficult time for them where the ceo hopes to take over the consumer division and has had to grapple with steep inflation. the growth of home prices in 20 large u.s. cities ticked up for the fourth month in a row according to the case-shiller index, climbing 21.2% in the year ending in march.
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capital was the biggest gain or. that is your latest business flash, guy. guy: ritika, think you very much indeed. it's the end of may, european equity markets are about to shut up shop. we have a better trading volume story from u.s. banks and a picture in front of us where we are dealing with a bond market under pressure and inflation that is superhigh. energy, commodities, that story is front and center and that's why you're getting this big difference on the screen here, flatlining on the day, positive despite the selloff in the guild market and the reason for that is commodities continue to trade very strongly. this month, this year we have seen commodities as the only real outperformer in the telecom sector but this is different, look at what's happening with the dax, down by one point 3%. over in paris it's down by 1.4%. how hard is the ecb going to
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have to hit the break? it's the big question everyone is asking themselves. kind of 50-50, though we could get 25 or 50 from the ecb in july. the markets are "think about that as a narrative. we are nearly done with the month of may and the close is coming up very shortly. ♪ ross yo financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect.
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guy: here we are, nearly done with the month of may. throughout the day most of the confidential markets are down, 1.5%, that's the kind of number we are looking at. the dax, down by 1.3. the italian market under pressure, the ftse not. markets outperforming a little bit today.
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the energy component has done well this montinuo do well with oil prices moving ever upwards. that is what it looks like today. let's talk about the picture over the last month. or to be precise the last 22 days. let's get the actual number from zach curtis here to make sure it happens properly. this is the picture, as you can see. lowe's hitting early on, kind of ninth, 10th, 11th in the month. a climbed bank since then with a slight rollover, that's how the month of may has developed. you've got to be stec -- sector specific and we are down by 1.66% on the month. think about the turbulence we have seen and the gyrations we have seen, war in europe with inflation numbers climbing, some would argue that that is quite a decent performance relative to what we have seen in the
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background but where we go from here remains to be seen. the sector background, this is the day i'm hoping actually the producer might be able to change that little bit as well, we will get them to do that in a second as we watch this. technology is down, retailers down, financial services are down. you are about to see some changes, as if by magic. it's a defensive tilt to the market. come on, you can do it. changing as we see things developing. nope, not going to happen. expectations too high. [laughter] alix: no magic. guy: here we go come here go come here ago. brilliant. energy is up by 8.84% on the month. banks have risen, which is interesting. expectation might be positive territory in terms of the retail rates with telecoms continuing to outperform. media and real estate are down quite hard. think about the kind of story we are talking about here.
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unsurprising given what we got from the facebook results with media going down as hard as we are. snap, remember snap? feels like a lifetime ago but that has had a big impact on the advertising space. that was the month and the day. unilever is up, we heard concern earlier on over the positions on the board with a company they're really struggling at the moment with an inflation narrative around where we go from here, how do they change the portfolio? big questions. credit suisse earlier on had the big report that it is an institution looking to potentially raise money and shore up its balance sheet with longer-term problems on a more solid foundation, dropping on the back of that credit suisse has details to follow. staying with the banking theme, deutsche bank. yes, another raid, alex. -- alix, police cars outside of deutsche bank and uws.
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just today. -- ubs. just today. alix: why the raid, why the allegations? >> it's about greenwashing as a set. the allegations of fraud up last year by a whistleblower who said that gws has been overstating their cap capabilities and have been campaigning on sustainability in their fund but the reality is that the business is different and fund managers don't actually use it and apparently prosecutors in frankfurt now believe they have enough evidence to, to do a raid. they got a search warrant and they did it. guy: i'm going to use an alex word. esg is still a relatively squishy concept. how are they going to prove this? >> you are right, it is going to
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be tricky and many think it's going to add badly for them for exactly the reason you just said. but this was about fraud in a way, misleading investors. if they can lineup the public statements and the annual report sales documents and so on and say that this is what you promised investors and then demonstrate that this didn't actually take lace, they may have a case. alix: it's just so hard to measure esg, two. so hard. thank you for using squishy, by the way. what does this mean for them? >> it certainly a big new cloud over ews and by extension deutsche bank. the performance matters a lot. he has publicly backed that ceo repeatedly, but a raid is a raid and in the end it doesn't look good, fair prices down, investors asking questions.
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if they start pulling out of these funds for example because they don't believe it anymore, that for example could be a severe ramification and deutsche bank has other legal problems they are facing, so it really is something we don't need at this point. guy: do we know how high accusations go? do we know which management we are talking about here? >> we don't. statement from prosecutors confirmed scoop and said it was about yes, unknown employees and managers. it is about dws, not deutsche bank. but we don't know who, they said it is yet unknown. guy: great story steve joins us there from frankfurt. let's take the final numbers there in europe in terms of what's happening, just pull up
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the markets to get an idea on whether or not we have seen action during the auction get maybe just a tick lower. the ftse 100 finishing the day negative and the dax is down in paris by 4/10 of 1%. certainly a selloff into the close, into the end of the month in europe. plenty more coverage on what's happening here with that inflation data out of europe. alix and myself will be going over to bloomberg radio shortly. digital radio is where you will find us. and if you cannot get us there, podcasts are available, spotify and itunes a little bit later. alix?
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ritika: i'm ritika gupta and you are looking at a wide shot of the control room. coming up, the importance of equality and diversity in the economy. this is bloomberg. ♪ keeping you up to date with news from around the world, here's the first word. i'm ritika gupta. in brussels, emmanuel macron asked what was the point of the because they vladimir putin. >> we have to keep them guessing , where russia and ukraine stands in order to prepare. this is the day they resumed their positions. it's important and it is our duty as europeans. we will have to negotiate with ukrainians and russians, they will subside on the day of a real cease fire and i do endorse
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this with vladimir putin on a regular basis. it's a very demanding approach. guy: -- ritika: he says an agreement will cut and imports by 92% and inflation in the euro zone of tolerating to an all-time high this month with consumer prices rising from over a year ago. food and energy with the big reasons. data intensified the debate about how fast to raise interest rates. in the u.k. business confidence rose for the first time in three months in may as they set barometer included 5% where 37% of those polled planned to raise prices again. global news 24 hours per day on air and on bloomberg quicktake, global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. guy: thank you very much and ritika.
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president biden meets with jay powell and janet yellen just after 1:00 eastern. the white house national economic director spoke earlier with bloomberg, head of that meeting, which is going to focus, you guessed it, on inflation. >> we have unique economic strengths right now that position us well to focus on this challenge, bringing prices down. obviously the federal reserve plays a primary role that fiscal policy and the economic choices we make with congress play an important role as well. guy: joining us now, former fed governor randy croson are, in our professor at the blue school of business. is this a significant meeting, randy? is it anything more than a photo op? >> it's primarily a photo op. it shows the importance of the inflation issue but i don't
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think there is going to be any pressure put the president on jay powell. they know the fed has got to move, the fed is moving, i don't think they will try to stop that. alix: could the pressure come the other way question mark jay powell saying look, i can do all of this but i can't help gasoline prices, that's something you need to do. could the pressure come that way? >> for sure i would assume that the president and the administration know that things like drilling, the fed can't drill, the fed can't produce computer chips. they can do a lot related to interest rates and credit creation, but they can't do anything on the real side, that has got to come from fiscal policy or regulatory policy. guy: just out of interest i would like to get your take on this, why is the president
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meeting with jay powell, who probably isn't that recognizable to the average american? they are worried about gas prices and groceries. how does this meeting kind of jive with the average american in terms of what's happening, what's actually happening in their own lives? >> i think it is a part of the president trying to show that he is aware that average americans are facing challenges and that one of the things that he can do is try to make sure that the federal reserve is aware of that and that he has shown that the federal reserve is aware of that and is trying to take steps to make sure that the administration is sensitive to and trying to move on when it comes to taking down this cost-of-living crisis. alix: taking a look at the y now, i understand the white house wanting to pivot to the economy in june, but in terms of say the fall in the stock market or the tumultuous volatility of the last four weeks, the rise in
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bond yields we had seen earlier, the tightening of financial conditions, if there isn't a fed put right now, do we feel that there is a biden put somewhere? >> very interesting question. that really comes on the fiscal side or the regulatory side. i think there are certain things the administration could be doing to try to relax those supply constraints. i don't think it involves more spending but maybe this is the foundation for them to make some announcements down the line. guy: in terms of whether or not this is a volker moment, do you think we are getting to that point soon? if the fed doesn't deliver now, do we have bigger problems down the road? is that the message the president will be delivering today? get on with this, you see what's happening around you. don't make it a volker moment? >> i completely agree.
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i think that if the fed waits, the danger is that conflation expectations can get out of control. so far, they haven't, those expectations have certainly moved up a lot in the short run but in the intermediate to longer run they are around the levels they have been for the last decade, towards the upper end but not far from it. the fed has the opportunity now. if they move quickly and boldly and try to maintain credibility, people will say ok, these people are serious and maybe i don't have to continue to ask for 5%, 6%, 7% wage increases. if they aren't serious down the line the fed has to raise rates a lot and the economy tanks. alix: it does seem like let's do a lot of 50 right now and then pause in september and then wait and see and i'm wondering how you would model foot a soft landing looks like. 50 point basis increases,
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there's a pause. what does it look like? what does a soft landing look like? >> and jay powell introduce the term of soft, and softish, a new term out there. the fed is getting some pretty tough punches from the war, from sanctions. i mean, we just saw the agreement for the european union banning russian oil driving energy prices up. this is all really tough for the economy. the economy will be slowing completely independently of the tightening of monetary policy but now there is this one to punch and hopefully they will raise rates quickly enough, they don't have to raise them to high , that investment can continue, but i think you have got a lot of the other shocks coming that will undoubtedly lead to an increase in the unemployment
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rate and slowing of economic growth. guy: we saw consumer confidence coming out a couple of hours ago looking elevated. plenty of people are saying that we hear it from the banks time and time again, the consumer has plenty of money in their pocket. is the consumer slowing down and if they are not at this point significantly, does that mean the fed needs to go even harder? >> the consumer is coming down a little bit. they are spending a lot related to current income but as you referred to, bank accounts seem to be fairly robust for a lot of people, which is good that they have that ability to spend and i think that people will continue to spend but i think they will be more cautious going forward and some of the impact of sending out those checks these last few years has been quite long-lived but will be fading. there will be challenges for the consumer if the rates start to
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move up as i think it might. alix: we got the last jobs number on friday, we are clearly spending down the savings. jobs on friday, what are the key things you are looking for? when you say the unemployment rate goes up and that is a part of what we want, right? how high, what does that look like? >> hopefully not too high but we are under 4%. that is in the range of sort of the lowest levels of the last 50 years. we had that just before the pandemic and we didn't have high inflation. there's no necessary connection. but given that it has gone up so much, it will be difficult to bring demand and inflation down without it going up. hopefully it doesn't have to go down that much so a landing like that will put us in the fours and fives, but that is not devastating to the labor market as in the recessions we have had in the past.
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guy: in an ideal world, where were the fed funds rate the right now? [laughter] >> in an ideal world the inflation rate wouldn't be nearly what it is now. the fed and other central banks would have been able to start earlier. guy: but given where inflation is, where do you think rates should be right now? >> they have got to move them at least into the 2.3% range so that markets and individuals see that they are serious about trying to slow inflation. then we will see the other shocks that are coming and if inflation is starting to come down or not. i'm old enough to remember voelker and i'm old enough to remember interest rates in double-digit levels. many people can't believe that can happen. it can. i don't think it will and i don't think it has to, but that's the key reason the fed has to move quickly. alix: yeah i remember my parents mortgage rate at 15% for 30
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years. >> and that was a good rate. [laughter] alix: right, it was a good rate. quantitative easing starting, which is different, then buying bonds, for example, what is the effect going to be? what are you looking at? >> the fed is going to do this in a gentle way. they will say that as these treasuries and mortgage-backed securities mature, they will just not continue to buy more new ones to keep up the, keep up the balance sheet where it was, letting it slowly run off. i think the markets are pretty well prepared for it, i think it will be a gentle beginning. at some point they may decide to move more quickly but at some point they will be fairly gentle and i don't think it is going to have any direct impact. to some extent, markets already anticipated that volatility but i don't think that the actual beginning of runoff is going to
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cause the volatility by itself. guy: randy, -- alix: randy, we really appreciate you catching up with us. this is bloomberg. ♪
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alix: well, u.s. stocks are off the lows of the session, the nasdaq 100 headed into the last day of the month in here with the latest is abigail doolittle. abigail: you can see it in this chart, volatility was up all month and then down, down, down, a continuation of the downtrend this morning and now we are looking at a small gain for the month of may, meaning that the april monthly decline being the worst since 2020, march, could be down to the wire on this. relative to one concern that has had markets on the day rising,
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oil, a look here at the brent crude chart. pretty interesting, we could be looking at a breakout. there is this range since the great psych up and then down and it is impressive to see wti and brent holding into the range that is capped and there is a suggestion that it could go higher and of course the eu is on track to stop all russian oil and, excuse me, the pipeline is still slowing to some degree. one third of the pipeline delivery allowed and perhaps by the end of the year 90% of russian oil will not be going to the eu and the energy sector is on fire. rounding out inflation we can see the dollar index is simply going higher with a 10 year yield right now up 11 points with inflation not a concern, but today it is. guy: great stuff, abigail. that wraps up the markets. let's talk about what we will be
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seeing over the next 24 hours with president biden meeting with powell and yellen. alix: big events tomorrow, fed balance sheet rolloff beginning with manufacturing data. stay with us for all of that. that is it for us on television. coming up, david westin and "balance of power." guy and i are headed to radio. ♪ this is bloomberg. ♪ -- this is bloomberg. ♪
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>> from the world of politics -- >> if things with covid continue to improve and we can put the covid era behind us, i think the chance of soft landing is maybe a little higher -- >> to the world of business -- >> when you think about all of the construction going on, that is just fueling our economy and our economic engines roaring louder than one of the indy 500 morning cars. >>


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