Tom Keane, TOM, John discussed on Bloomberg Surveillance


In the February and John tons of economic data We're going to reframe 8 35 Friday morning Look how below on payrolls the range is still wide It always is at the moment two 50 Positive all the way down to 400 K negative What it changed the conversation around the fed Given this is an induced slowdown And on the juice slow down Tom Keane you said the asterisks next to that number will be shining bright this Friday It's going to be fascinating to see Well this horn be coming up here in a moment John what I think is so important is the backdrop of this and I'll lead with ferocious with a 1.5% GDP in this present quarter We're doing this within slowing economic growth That changes the dial I'll lead with banks of America Tom They're looking for a hike at every meeting this year 7 hikes three to year end a peak in the fed funds rate two 75 to 3% That's the outlier call at the moment Tom The direction of travel though said been moving in that direction The center of gravity 5 hikes right now Tom for 2022 That's the call on Wall Street Lisa what's so important here then is the mix here around the pandemic we see cases rolling over hospitalization rolling over maybe deaths to I'm getting some constructive tone And from strategist it's a fairly constructive tone within a lot of different angst It's fairly constructive but on the edges there is this growth concern that we've been talking about for a couple of weeks now And I keep going back to the yield curve Is this an instructive tool of something like the U.S. economy can't really withstand much higher rates the longer term 'cause that seems to be this suggestion Is this still a telling tool or has it been corrupted by some of the fed policy And frankly the international policy at least as a pure read on what's going on Tom John what's going on in the spirit We're going to interrupt the program right now This is so important And it's about the cloud and how Apple adapts to it Thursday We've got Amazon in the cloud Microsoft was stellar earnings X number of days ago And here's Eliot stepping in at this moment as suggested over the weekend and they take out Citrix which we use at Bloomberg as part of our cloud technology People are still deploying cash ton even with the threat of higher interest rates They're getting to work and maybe in some cases that's why they're getting to work because some of these valuations have come down so much We talked about the Microsoft deal They're basically paying for that acquisition what the company was worth Tom 12 months ago Correction It's life goes on and you see that within the date of this morning the vix from 32 John down to a 28.87 more constructive in the last two days I keep smiling because you let that comment from Lisa slide She used that word corrupt They've corrupted the yield curve Lisa thought I did not miss that I know that was so impressive That's corrupted the yield curve Wow wow wow You turn it for framed it I'm saying has been corrupted by policies Maybe it's basically let's be clear It's a very strong word The idea here is have we distorted some of the traditional signals Yeah And if we have then what does that mean in terms of this guessing game that we've been talking about all morning I've been struggling the word choice that's so erupted in It's Monday The ten year right now one 79 63 Equities come in On the S&P down four tenths of X.

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