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00:00This is the countdown to the close Romaine Bostick. Live from the Milken Institute Global Conference in Beverly Hills California. We are counting down to the close out here. You guys back in New York holding down the fort. Yeah. Taylor Riggs here. And I'm Katie Greifeld. Caroline Hyde is off today and remain a stunning rally underway in S & P 500 having its best day since May of 2020. Technology only have this best day since March of 2022 but it is relief that it is 50 basis points instead of seventy five. For the next few meetings. There is a clear takeaway and you see that in the bond market as well. A two year yield falling 15 basis points on the day back down to a two sixty four right on. Those comments remain about what is the key neutral rate. And again maybe 50 instead of seventy five as we think about going forward and a little bit of dollar weakness on the back of those comments from Jay Powell. Yeah I'm not sure we actually figured out exactly what that neutral rate is but obviously the market reaction seems to be centered around that right now. Let's get some insights from Jason Brady. Joining us right now on stage at the Milken conference is the president and CEO of Thornburg Investment Management which has about 44 billion dollars in assets under management. Jason great to see you here. Yes it's great to be here. You're having a good time so far. I mean it's it's interesting. Yeah interesting conference for sure. Interesting conference. And you're here of course on a day where we got the big bad decision. I know you were paying attention to it. You got the 50 basis points that everyone seemed to think that we would get as far as a potential 75 basis point hike going forward. Jihye Lee seemed to throw cold water on that. And whatever this neutral rate is that we're aiming for it appears we're still a long way off from that. It's a magical race sits in the enchanted forest as a neutral rate. But yeah I actually expected 75 to be on the table. He took it off the table. I think the markets were pricing in a very hawkish. And you could now hawk the market. So obviously the reaction market has been that this is a little bit more dovish when you look at the market reaction like this. And obviously it's just one day really just one or two hours here. But when you see a 3 percent move on S & P 500 on the back of this year does that seem like a sentiment that would be sustainable given what we know about economic conditions. I don't think so. So you can go back to the last few Fed meetings and a number of them were considered to be others. As this has been. And then the market reconsidered what the Fed's path might have to be. And ultimately that kind of disappeared and we sort of returned to a hawkish rhetoric. So I think this is maybe just a bounce from what is sort of a buy the rumor sell the fact kind of idea. It was interesting. Some of the commentary out of Paul during the press conference seems to suggest that there were some economic cracks. He's obviously been relatively upbeat as you would expect the Fed chair to be. But he did seem to make it clear that there were some things that they were concerned about things that might not necessarily be in their purview to solve these rates alone. That's right. The Fed is talking about being almost being overwhelmed by a vaccine. All these things are happening to us and it's not our fault. But the reality is he was very clear that inflation is the mandate and price stability is a precondition for employment. So that to me continues to be pretty hawkish. I think what they're looking at is some slowdown. I assume services and manufacturing. But what they're really relying on is labor strength. That is the key for them. And that's the thing actually that they view as now a big contributor to inflation as a big contributor to inflation. When you look a little bit further down the road here the potential for an economic recession if not recession maybe some sort of prolong doldrums if you will is that in the cards based on what you're looking at. I think it's it's my base case expectation the Fed for possession. Right. Recession and innocently enough for it for this group here. I was surprised to sort of you know straw polling probably about three quarters. The attendees here expect a recession now. They don't expect it to hurt them but they expect a recession. I was amused to hear Jay Powell talk about going for a soft ish landing not such a soft issue. I'm about to fly back to Santa Fe and I also hope for a soft tissue later. But I think it might be a little bit. Well you talk to your pilot right. Get on it and see what he or she has to say. But in all seriousness with regard to the idea of sort of making this soft landing the softest landing gear even though he basically admits that Fed policies in the tool box may not necessarily be sufficient to address some of these things. Is there something else that could help. Is there fiscal policy. Is there something else within the government realm that could sort of maybe blunt the impact a little bit there. There are many things that could help. The Fed is clearly saying that's really not our job. Right. And so OK is Congress doing what they should do. But we're we're in a moment. We're removing liquidity. Right. And we we as a market are realizing you know it was it was Barzani all along. We're realizing that that liquidity is coming out of the system. Right. And in fact that's also happening fiscally. You know that's that's a good thing. We have outsized inflation. We're trying to get that down. So for sure there's lots of dynamics. And arguably the Fed ends fiscal were too much or for too long. Right. Coming up the pandemic. So yeah there's a lot of interaction. But you're talking about normalization normalization of policy. But it would also mean normalization for investors and investors who have basically been operating off of the playbook for the last I don't know decade or so now where you had ultra accommodative fed. Have you made adjustments to your strategy in anticipation of this. Yes I think this that liquidity removal necessitates change in the thought process. Let me just give you a very simple example. We've been in a world where short term cash pay zero for a really long time. Now I mean short term cash went up today by 50 basis points but not too much longer than that. You're talking about 2 and 3 percent now. I get that inflation is in the 80s. But that is a whole lot better than it's been. So the cost of holding cash and liquidity is is going down. Right. Therefore people should and can hold more of it with less of that cost. That brings speculation out. That's all the point of raising rates. What do you think about holding bonds in this environment. I think bonds now suddenly and I mean suddenly really the last couple of months went from being sucky to being less sucky. So what does that mean. It means that they have some income not as good as inflation but actually it can start to provide some ballast high quality fixing who can provide some balance to portfolio when including when it was below 1 percent. So now if you get a recession you're going to see bonds rise in price. Two or three months ago you really couldn't make that call. And I think that's very valuable for investors. All right Jason we're gonna have to leave it there. Always great to catch up with you now in person here at the Milken conference. And hopefully we'll see you soon. In the flesh. Jason Brady there guys president and CEO of Thornburg Investment Management. Taylor we're counting down to the close. Here was just a couple of minutes left. Indeed we are. And you're having some really good longterm conversations that remain. You'd be remiss if we didn't talk about the short term implications of these markets right here right now. Still in S & P 500 having its biggest one day gain since May of twenty 20. Technology just soaring here remain when you think about some of these key long duration assets. And Kenny I'll bring you in here sort of a relief rally but really shows how bearish or perhaps simply the market really was pricing a lot of these rate hikes in. Exactly. There was so much priced in for this Fed really hang on. Paul's every word. And once he really took for that 75 basis point move off the table like you said relief rally really across asset classes are really stunning. But the question though is how long does this persist though. Remember we had a rally coming out of that last Fed meeting where a lot of people thought the Fed which all was dovish and of course that faded pretty quickly has a lot of people then notice it. Well the economic conditions that everyone was fretting about well those still exists. Well a lot of the concerns about China he's mentioning Ukraine. So you have supply chains again sort of these supply chain shocks that monetary policy QE can't necessarily fix. I mean that of course could be the key question going forward. We are counting you down to the closing Bell's full market coverage right here on Bloomberg. We're taking you to the bell and beyond Beyond the Bell Bloomberg's comprehensive cross platform coverage of the U.S. market close starts right now. And right now we are two minutes away from the end of the trading day. Romaine Bostick Taylor Riggs and Katie Greifeld counting down to the closing bell here on this Wednesday afternoon. Here to help take us Beyond the Bell it's our global simulcast. We're joined right now by Tim Steinbach and Mike Regan. We welcome our audiences across Bloomberg Television Radio and of course on YouTube. And Tim looking at this rally that we have in our hand 3 percent move on the S & P and the Nasdaq after we got a 50 basis point hike by the Fed. Yeah. Less about the 50 basis point hike and much more I think about taking that 75 basis point hike off the table. S & P 500 best day in just about two years Mike. Yet some. I just want to take a quick look at currencies because wow did they really move after that Fed press conference looking at the Australian dollar. Up two point two percent. That on a closing basis is the biggest move for the Aussie dollar in more than a decade but really gains against the dollar against all the major currencies New Zealand dollars up to one point seven percent. Norwegian crone up more than 1 percent. So to me it sort of begs the question that if power was trying to sort of tighten financial conditions a weaker dollar is kind of counterintuitive to that goal. So tell her I wonder if this was a little bit of against what he was hoping to accomplish. Well some similar statements Katie. Of course if you think about the real yield which I know that we had seen a huge jump about a negative territory up to 15 basis points a 10 year real yield sort of declines back to about 4 basis points to a gnat case perhaps more of that easing that Mike was just talking about of some of those financial conditions. Absolutely. Think about what the power the Fed is thinking right now. Probably not thrilled to see financial conditions actually ease a bit here. VIX to down back to twenty. And this is a huge rally underway. I know it is only one day and sort of digesting further comments that we'll bring you the one day moves. As we've been mentioning you've been S & P 500. That is close enough on the dot. One hundred and twenty five points. Three percent. The biggest one day rally that we've seen since about May of 2020. Technology is also a big al. You're up three point two percent. The Nasdaq 100 is up three point four percent. But that rally is only the biggest. It's going back in about a week. The last time it was up about three and a half percent was just over a week ago. So really interesting volatility that we have underway. The Dow remain. We will quote this because it is almost four digits. Nine hundred and thirty point increase here on the Dow up about 2.8 percent. Let's zoom out as well and talk about the Russell. It's actually the marginal underperformer on the day despite the focus on the reflation inflationary domestic focused cap stocks. Typically you would see a sort of a breakout performer. But on a day Katie or Tim here when yields are falling that actually makes sense a little bit but huge sort of relief rally when it comes to some of these long duration. Yeah that relief rally really broad base to Taylor 30 some 30 stocks in the Dow Jones Industrial Average higher today in the S & P 500. Only 25 stocks lower 479 Katie higher on the day. Yeah Tim. And really breath is remarkable here. Take a look at the sector level. I have a lot of green bars to show you right up at the top. You have autos. A lot of that is Tesla. Also Energy Sammy's tech all together rallying pushing this market higher. Sort of an odd pairing on the sector level especially when you consider yields down today but quite a lift for the cycle cyclicals. And of course worst performing is a relative term here. But you do have real estate down at the bottom but still up over 1 percent. Taylor. Let's talk about that yield space. It is unbelievable when you think about a two year yield on a day when Jay Powell said perhaps maybe be 75 basis points is off the table going forward maybe not in active discussions but certainly talking about 50 basis points or so in the next couple of meetings a two year yield that declines 15 basis points to a two sixty three a five year down 12 basis points to a two ninety a 10 year added to 91. A 30 year though still at a 3 percent is certainly a risk steepening. Tim here are sort of these at 2s tends to thirties yields curve that is under way. Well let's go back to that moment during the press conference that really moved the bond market and the equity market. When Fed Chair Powell said that 75 basis points was pretty much off the table. Check it out. 75 basis point increase is not something the committee is actively considering assuming that economic and financial conditions evolve in in ways that are consistent with our expectations. There's a broad sense on the committee that additional 50 basis increases should be on 50 basis points or should be on the table for the next couple of meetings. Chairman of the Federal Reserve Jerome Powell. Just now I will note that he did continue to say we're going to make those decisions at the meeting Romain of course and we'll be paying close attention to the incoming data and the evolving outlook as well as the financial condition. So some caveats OK. I mean I mean can we get something straight. Is he driving the ship here. Because remember we only had a 25 basis point hike at the last meeting and he basically told us everything was fine. Then I said look I understand the communication. I understand why you would talk down a 75 basis points being on the table here. But the end of the day the Fed isn't driving the ship right now. Inflation is driving this ship. And if inflation is still out of control by the time you get to that June meeting then to that July meeting I guarantee you 75 basis points will be back on the table yet remain. Well I just want to point out what sort of surprise this was today. If you look at the VIX down more than four index points. That's actually the biggest drop for the VIX this year. The next biggest one we saw was in December 7th of twenty twenty one VIX back to about 25. So Katie really a lot of that is a negative rerating over Mike. Is that the big rerating lower that we had where everyone said valuations were too high in the face of rising rates. What's changed right now. Did the neutral rate change. Did the target for the neutral rate change either based on what the Fed is saying or what the market is pricing in whether you get there and 75 basis point increments 50 basis point increments or a 25 basis point increments. It seems like we're still headed towards the same place that we were a couple of days ago. I think that's true. I mean I think the relief today is just that they're not going to try to get there quicker. And you know it is really hasty pace the way that some people were sort of worried about what that 75 basis point increase. Katie. Well if I could jump in here we actually have a lot of news to get to because earnings season is still rolling on. We do have reports out from booking holdings. One quarter first quarter revenue was two point seven billion. The expectation had been for 2.5 billion dollars. So a beat. There you also had the CEO say that rather the the the bookings on booking were quite large. If you look at shares after hours they're up seven point two percent. So quite a beat. Their first quarter roommates sold one what. One hundred and ninety eight million stumbling over words here. That is above the estimates as well. If you look at again all of these different inputs it looks like it was a beat across the board so far. And the booking of course saying that first quarter a record for the company's history. They're really preparing for a strong travel season as of course on this Fed day will really take a look at the consumer of the health. And yes even with inflation people are still traveling. You get a similar sentiment with TripAdvisor seeing that first quarter revenue also come in well above expectations to 60 to 10 versus estimates of 250. And also naming a new CEO replacing sort of the co-founder originally. Matthew Goldberg of course set to succeed here starting in July. So you're seeing sort of a renewed passing on the baton if you will. Okay. I'm watching shares at eBay because the company just reporting results. It's a miss when it comes to guidance for continuing operations. Eighty seven cents to ninety one sense estimates were for a dollar. And two the company sees net revenue in the second quarter from two point thirty five billion to two point four billion. So a miss on the top line to estimates for 4 2.5 3 billion. The company is maintaining its quarterly dividend and dividend at 22 cents a share. Shares right now in the after hours are down Taylor about six point six percent. And you know we'll just say so wrapping up these comments here. When you think about CEOs they've been maybe a little bit cautious in some of this forward guidance but really highlighting the health of the consumer. And that's echoing comments from Jay Powell. It's a tight labor market. Consumers have seen wage gains. Yes of course some of this has been eroded by inflation. But it doesn't show any signs here Katie that there is a massive sort of drop off in the consumer. And you would argue that some of these big reopening trades are indeed reflecting that. Absolutely. Need to think of the earnings that we've done this week from those travel stocks. I mean we had Air B and B Expedia and now booking. They all point to this same picture which is that pent up demand for travel for these experiences. So again that just wraps into a concern of the consumer that has been really really resilient so far. Yeah and obviously this is gonna be the real key going forward as we keep an eye on those inflation numbers it really is about consumer spending. I'm not sure what's going on with eBay. I feel it. Feel like that's sort of an outlier there. But when you look at some of the other e-commerce stocks even though they got beaten up I know after the Amazon earnings you sort of wonder how what place that consumer spending is in right now. TAYLOR Well you could have perhaps maybe see some downside to that remain. I know that you love and you're a big user of see and unfortunately seen a huge mess when it's love. It comes to gross merchandise sales. You're getting a big. Elon Musk not the buy second quarter. Goodbye Bailey. How about that. And reunited with PayPal and all from everything old is new again. Hours of programming I just gave you right. Yeah. Let's see. Second quarter revenue doesn't look good. They're looking at five forty to five ninety million estimates where for about six thirty. Adjusted EBITDA margins way down to twenty five or assessments of twenty six and a half percent. So Tim this is of course on the side where you could actually wonder about perhaps maybe some of the execution here. Yeah that's a really good point. I want to end on what I thought was a pretty sobering moment from the Fed Chair's press conference speech started by speaking directly to the American people and talking about the pain of inflation. You know this is not something that's something that affects the American people obviously. But when it comes to what the Fed says the average American is not necessarily paying attention. And he clearly wants to get that message out. We are out of time guys. Romano I mean I have one question for you. Are you ever going to come back from sunny California or are we going to see you this week. No I. You were just out here. How did you get home so fast. And where is Caroline Hyde. Took the day off. Yeah she took the Dow. OK I might show up tomorrow in Japan. All right. Did you say. Well safe travels. Enjoy the rest of your time out there. That is gonna do it for our cross platform coverage of Beyond the Bell. We will see you tomorrow. Same time same place on Bloomberg TV. Bloomberg Radio and YouTube. Coming up big conversation still ahead. Ken Chenault that portfolio manager over at Dublin Capital and Matthew co-founder of TKD Capital really big for the reaction here to these markets and a big Fed decision. This is Bloomberg. You are coming off of an S & P 500 that had its best day since May of 2020. All really in reaction to this Fed statement. Let's do more on the Fed statement and bring in Ken Chenault portfolio manager over at Dublin Capital. Ken of course will focus on these equity markets but I am also curious about what you're thinking about a two year yield that declines 17 basis points on the day in the real big sort of repricing that we experienced in the last two hours. Well I think the repricing began at the beginning of the year. We've seen a big move across the yield curve. The two year notes almost 180 basis points. The 10 year notes are about 150 basis points from the start of the year. So I think that the market had pretty much fully priced in today's actions in stock. I think today's actions were a little bit less hawkish than maybe some expected. And that's why you're seeing a little bit of a rally today across Kirk. I'm curious Ken when we talk about sort of the long term path for the Fed here getting to whatever that neutral rate ends up being here. Do you think that we're going to continue to see these hikes in succession or that maybe the Fed will have to pause at some point and I guess I'll wait for things to sort itself out. I think they're they're set on doing another to 50 basis point rate cut rate hikes. The market's pricing in another eight hikes and then there's a couple of month break which gives them different from the time to wait and get some more data. So I think 250 is kind of in the bag right now and then it's wait and see mode gives them some optionality. And can we heard Powell multiple times point to the strength of the economy in particular point to the strength of the labor market that seems to be really the shining star in his eyes. Still I mean if we think about the past few weeks we've heard so many high profile recession warnings. When you look out to 2020 to 2020 for where do you fall on that debate. And I'd rather I meant 2023. It's been a long day. Sure. No problem. You know last time I was with you guys in October at the ports we talked about inflation. We were talking about the goods inflation back then. And my view was that we were going to see a second wave coming. Part of it coming through in services. And that was going to be driven by wages. And what was going to be driving that increase in wages was the supply demand imbalance in the workforce. And that's what Jerome Powell spoke a lot about today was the fact that we have about eleven and a half million job openings and only about 6 million people looking for jobs. And that's going to keep pressure on wages. But it does put the consumer in a good spot. So the consumer I would say is the bright spot in the economy. They have elevated savings rate. We see that they even in the negative GDP print that we saw in the first quarter that the consumers seem to be one of the bright spots there. So the key to the continuation of the economy's growth is can that can consumers continue to spend on a discretionary basis in the face of higher energy costs higher food costs and higher shelter costs. So I think that's key. That's going to be the driver of whether we're going to enter into a recession or not. So if inflation stays elevated the recessionary risks are higher. If inflation comes down I think that there's a recession and restaurant a little bit lower because that backs the Fed off their financial tightening mode. Did you hear anything new today when it comes to the balance sheet reduction that would change the way you're thinking about treasuries. Then of course M.B.A. you know the Treasury part of the balance sheet unwind was pretty down the middle of the fairway there. They have more than enough t bills to cover any shortfall relative to their cap targets that they have on the NBA side. Once they get to that 95 billion dollar cap that implies about 35 billion of embryos a month at the current turnover rate meaning at the speed that people probably pay their mortgages and pay down principal. There's definitely a deficit of about 15 billion of MVS but they did they didn't mentioned that at all. So what I was looking out for from the NBA side was if there was any mention of the need to sell NBA US sooner but I think they're taking this slow path that as far as the balance sheets are concerned they came out they said they would start unwinding it and then they'll wait and see what happens with the inflation data. Yeah Benjamin to see what happens with kind of the reverberations from that into the housing market. Ken I am curious here about bonds just basically on a nominal basis here whether the yield environment right now has made them more attractive. They're absolutely way more attractive than they were three months ago six months ago nine months ago. I mean rates have made a huge move. We're seeing nominal yields across the risk free curve of the Treasury curve at the highest since 2018. Hiking cycle 10 year treasuries got to about 325. The or got to 3 percent. I mean we're almost there like 25 basis points away. And spreads have also widened a little bit with this volatility. So you're seeing all in nominal yields that we haven't seen in quite some time. Just investment grade corporate bonds as an example a yield around 4 or 25 today probably outside of a couple weeks in March of 20 20 when you have the big sell off in risk assets. You have to go back to 2018. And they were probably only north of 4 for a couple months at that point in time. And since then we haven't seen yields as high on a nominal basis since 2011. If you can believe it. And so the yields definitely look way more attractive for investors. The problem is that headline CPI is so high that relative to headline CPI you're still talking about real negative yield. So I think that's kept some of the investors out of the market for now. They're waiting for headline inflation to come down. But I think institutional investors I think are going to start stepping in at some these levels we're seeing here. Really appreciate your perspective. Of course wide ranging analysis here. Ken Snowden double line portfolio manager. Romain taking a look at I know sort of some other big conversations you have. You're still lucky you're still out there Milken. Yeah. Still out here on stage at the Beverly Hilton. Got a lot more reaction to the Fed rate hike and I guess the general outlook for global credit markets and private markets as well not just Gebran co-founder of NIKKEI Capital is going to be joining us in just a minute. Don't go anywhere. This is Bloomberg. All right. And we're back here at the Beverly Hilton in Los Angeles California. At the Milken Institute Global Conference Romaine Bostick here on stage alongside Macho Sharon over at NIKKEI Capital is the co-founder there where he focuses on private equity credit and real estate. Pleased to have you here. Thanks for having us. I want to get first of all get your reaction here to the big news of the day which is the Fed hike which largely was priced in but more importantly a Fed telegraphing that maybe it's not going to be as aggressive as some people thought. Yeah well I think it's you know it's that's why the markets is reacting. But I still believe that it's maybe long overdue. And I think we should be catching up on that and know that we're coming out of this 10 years. A very accommodating monetary policy. Yes. Creating a lot of spillover. So it was about time you know that we get there. I mean personally as an investor I actually welcome that. So that now we can approach the market you know with some more rational assumptions rational assumptions. But let's start off basically with cost basis. Are the cost of capital here as an alternative investment manager. How much does the Fed hiking this rate cycle in totality if at all affect your cost of capital. At this stage it doesn't get worse for us. He was really priced in on the private market. You know we've always got through the illiquidity premium when not based on interest rates. We tend to do exclusively floating rates instruments on the on the private credit side. Right. All four of our business. So I wouldn't say that is a no news but you know it's just part of what we have to manage is not about macro. It's about micro. It's about you know working on companies. The one with the potential both on credit and equities. So it's business as usual. It is micro. I mean you're basically a bottom up investor. You obviously have to pay attention to your broader economic conditions. When you look at the economic conditions not just here in the U.S. but globally worldwide here. Are you anticipating that we could be in for a significant slowdown in growth if not a recession. It's it's very likely. I mean we had a little bit of a perfect storm coming out of what I would call you know the mother of all happy hours. Right. You couldn't be you know more accommodating across all fronts. Investors lost maybe some basics. You know when it comes to that on the other hand consumer was incentivized to spend more buying situation. And as both slowdown and then you had the macro geopolitical issue the supply chain you know the energy inevitably you know it creates this this tension. But we're coming at the end of a cycle that was in its sales maybe a little bit too much of a play. You were heavily invested across Europe as the cycle over there. Different from what we're seeing here in the U.S.. Yes. Well you know Europe is a it's a it's it's in many different countries. What we're seeing right now is that most of them don't have the same dependency to the Russian energy which is one of the main one of the main issues. The ECB has been maybe more accommodating lately. And the message we're getting is that obviously that we have to raise because inflation you know is very very strong as well. Right. But maybe you've got a little bit of room to help this recovery plan. We saw very strong leadership from European governments. I mean this whole idea of equal rights situation French election you know or are over now we can get more visibility. Right. So it's really about being on the wrong. I mean the origination you know with the right people to deal with the companies you're invested in though is there direct or indirect exposure to some of the energy shock that we're seen as a result of the war. And you so obviously we have. But we think you have identified this megatrend of the energy transition that we've been working on for for a few years already. You know we studied with the Paris agreement and the target the objective we had set and we've been developing DAX on private equity since that energy transition still intact. Oh yes. It's accelerating. You know that's the silver lining of the overall situation actually. You know people realize that the dependency and countries are very different. You know Germany Italy 40 percent dependency to Russian gas. In France we've got the nuclear deal that has protected us you know the beach you know for electricity and all those. But it's it's accelerating the suspect here. It's accelerating. What areas of that energy transition do you find most attractive. It's about taking you know companies. We're working on decarbonising the economy of some solution and to massive fire. You know they have to step up to level up. You know there are access to markets. So it's about injecting capital helping them with equity and debt. It's not about buying this company. It's about fueling the transition fueling the transition. This is still though a global environment that is challenging a lot the globalization that we knew prior to the pandemic prior to the trade for. That's changed a lot here. Do you still make a bet on I guess a synchronization in our global economy. Yes he does as a matter of fact. We're exporting this strategy to the U.S.. We're replicating we're doing the sister a sister fund. You know if I may say here because even if you have in the U.S. been much less affected you know by the energy situation. We as a whole. Coming back beyond the geopolitical environment. We know that if we want to hit the objective of the Paris agreement we have to stop investing now and asset managers have this responsibility to transfer the savings. All right. I do want to circle back to the rate picture once again and ask you about some of the differentials that we're seeing in monetary policy between the U.S. and the ECB. And of course what we see maybe in Asia whether it's the Bank of Japan or China here. Does it worry you that not all of the central banks are moving in sync in the way that maybe we saw during past cycles. Yeah. I mean the bust cycle was about you was in a crisis moment you know when they were reducing interest rates are really key here. It's about you know increasing and fighting the inflation which in itself is a primary mandate of the central banks RTS. You know that's what they are they are doing. So here you've got you know one currency one bank and one country. You know over there we've got the multiple of countries in different fiscal policy. The ECB is here to help to sustain this this recovery. I don't think that India way up on the interest rate that can be called you need because these two specifics and countries are too impacted differently you know by what's happening right now. All right. Great to catch up with. You gonna have to leave it there. You having a good time in Milken. It's great and it's great to be back back in school soon. And you feel good you know. All right guys. Macho Sharon there. He the co-founder of Words Over at RTX Capital. A great discussion here. We've had a lot of big discussions here. We're going to wrap up our coverage here of Bloomberg Markets Close. But would you have triple take. Coming up next course we are going to focus pretty heavily on the Fed. This is the Post Fed that special the real special here live from the Milken Institute Global Conference as you shore CIO of public investing for Goldman Sachs Asset Management. Going to be on stage with me in just a second. And a car Sean. No relation chief growth officer for the NY Mellon gonna be here as well from Beverly Hills to New York to our audiences worldwide. This is Bloomberg.

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Bloomberg Markets: The Close (05/04/2022)

Romaine Bostick, Taylor Riggs & Katie Greifeld bring you the latest news and analysis leading up to the final minutes and seconds before the closing bell on Wall Street and tackles the Fed's rate decision Guest Today: Jason Brady of Thornburg Investment Management, Ken Shinoda of Doubleline Capital, Mathieu Chabran of Tikehau Capital. (Source: Bloomberg)

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