tv Bloomberg Markets European Close Bloomberg July 7, 2017 11:00am-12:00pm EDT
their meeting. i'm vonnie quinn. mark: i'm mark barton. any secondhe details now from michael mckee at the fed. there, letore we go me remind everyone, this is unusual, a friday. this will give congressmen and women in a couple of extra days to parse. the report is the look at the financial and economic conditions over the past half year, normally released when the humphrey hawkins testimony is put out, largely ignored by the market, media, and members of congress. they decided to put it out early so that more people could read it. gradual growth, gradually tightening labor markets. until recently, gradually increasing inflation. the fed says that will resume. they find equities a bit stretched as investor risk
appetite grows but don't see evidence of increased leverage that would suggest there any bubbles forming, at least dangerously so. more interestingly, detailed topics, low productivity growth, corporate bond market liquidity and monetary policy rules. the fed does not have a good answer for war productivity has been so low which they say suggests the reason we are seem tepid wage gains. it could be a pause or reduced corporate r&d spending during the great recession. the fed does not know if this is a new normal. liquidity,orate bond the fed acknowledges new regulations have caused due to pull back on inventories but they say any liquidity pressures have been minimal and offset by the fact that financial institutions have stronger balance sheets now. finally, the current fed pushes back against the idea of using monetary policy rules. several of the reported trump's nominees to come have expressed
support for using policy rules to make monetary policy. the report asks which rules, noting different rules would prescribe different policies, and that all have problems. if anybody is going to read the report on capitol hill, we will know soon because janet yellen testifies next week wednesday and thursday to congress. vonnie: given we are a decade beyond abnormal conditions for the fate of the u.s. economy in the hands of the fed, still no answers on productivity, nor these other problems that have been making economists scratch their heads, why shouldn't congress go to town on the fed chair next wednesday and thursday? report offers detailed explanations for why the fed sees things the way they are. the hope is members of congress will actually look at this and ask him intelligent questions about why this might be.
for example, in productivity, they noted electricity took decades to be incorporated into the economy, raise living standards. that could be happening now, we may see productivity turnaround it company spend more on r&d. that sort of thing. they don't know at this point because there is not enough evidence and they want congress to understand things like that. vonnie: we can always hope. thank you, michael mckee. let's check on market reaction now to that and also the jobs report. abigail doolittle is here. much of a reaction to that fed report by the gains seem to be driven by the better-than-expected june jobs report, 220,000 jobs added, on appointment fell to 4.3%, nearly the lowest since 2001. where we do have a reaction to that report is in the 10 year yield. ,f we look at the intraday look
we see a spike up after this report. we can look at this at my bloomberg as well. this is an intraday chart of the 10 year yield. lots of messy action today after that jobs report initially dipping down, investors not liking the fact that wage growth was disappointing. right around the time of the report, a spike up on a relative basis, it looks pretty big, but on an absolute basis, not too big. investors think the fed is on track to stay the course of some sort of tightening policy. to seeook at the s&p 500 the lack of reaction. seeing a little bit of a decline but not much to write home about relative to the report on stocks. investors still bullish on that jobs report after yesterdays pullback, especially the gains in contrast. something we've been looking at that's interesting, in blue, we
have a 20-year bond etf. in white we have the s&p 500 etf. we see something interesting that we have not seen since the taper tantrum in 2013. big losses for bonds and stocks at the same time. typically you see stocks rally as bonds selloff, or the inverse. today, stocks are higher as bonds are off a little bit, the 10-year is off little bit, but behind that, tech stocks, faang stocks all nicely higher after the selloff we have been seeing recently. investors are liking the job report, a bullish tone for stocks. vonnie: thank you for all of that. and joining us now to dive into the monetary report as well as the june jobs report, what clues they give us about the federal reserve's next move, omair sharif.
you have not had much time to get through the report, but you more or less know what it says more than likely. what are the points that congressmen and women should be bringing up next week? number of points, productivity, mike talked about that. generally what you find in these testimonies with respect to the q&a, democrats are focused on why the fed should be raising rates when wages are so low or subdued. meanwhile, republicans are likely to talk about rules. i thought it was interesting there was some discussion about monetary policy rules and looked like a preemptive move on the fed's part because they know those questions will be coming on wednesday. to the let's get back jobs report and the fact the on implement rate went up to 4.4%, participation barely picked up. wages very disappointing. does this mean the fed hikes, does something with the balance sheet in september?
i think they will implement a new policy later in the year. in terms of the rate hike, they will push that off until later. they want the balance sheet to be a stand-alone event. they want to get them going without the rate hike on the table. when you got from the june minutes is interesting, there is debate about whether they should be hiking rates right now as they move forward on the balance sheet. that was a surprise, less consensus on the fed than people expected, given the already voted on the plan and are on board with it. on the right height, seemingly more of a debate about what to do. mark: a debate on the part of inflation, the fact that it's moving in the wrong direction. should that, in itself, ensure the fed slows down, stops, pauses? at least one member on the go with mc --fomc wants that.
omair: you have even served some of the more hawkish folks say, if this goes on for a couple of months, i'm a look at my right path and what that implies. was interesting, some members saying they are uncomfortable about next your projections for rate hikes. on inflation, they say they think this is a short-lived phenomenon, yellen testifies on wednesday. friday we get the june cpi report. she did something very subtle in her statement before the press conference which was to take the focus off of the year-over-year rate. she mentioned, as a matter of math, it would remain low given the disappointing prints recently. she will try to shift more to these shorter-term measures like the three-month annualized rate. if you get a core bounds, that will move the number higher, and they will point to that. mark: looking at the monetary
policy report, a section on financial stability, notes valuations in u.s. markets remains " moderate on balance." .t notes that prices have risen three members have recently mentioned that. -- ourncial stability prices out of whack reason enough for the fed to keep on the tightening path? omair: they have expressed concern, a number of officials have raised their concerns. their review of financial stability was although there was increased leverage in the system, they felt the risk to the financial sector was relatively moderate. what's interesting, people are beginning to see the fed may be hiking because of financial stability concerns. i'm not sure that is a message they want to send using rate hikes to counter what they may
see as elevated asset prices. curious as to what the impact on the market would be in the various scenarios. when you hike and do something with the balance sheet, do something more definite about a start date in the same month, separate the two? which do you do first, the rate hike or taper the balance sheet? omair: if i was on the board, i would be arguing to separate the two. doing both at the same time is maybe more progressive -- aggressive than what the fed wants to project right now. most people think the rate hike will likely be pushed off into december. the more interesting thing here, if you project this progressive view in september, doing both at the same time, the market realizes the fed will raise three times next year, and that is not priced and as of now. it could have some broader consequences in terms of the impact on the market if the fed were to do both in september. i would argue to separate the two. vonnie: bill gross this morning
said this was definitely not the beginning of a bond market route. we have heard other people say the opposite. where does the 10-year go from here, are we at the beginning of a bond market route? omair: our strategists are looking for the 10-year to close around 2.70. a lot of it depends on what the market's reaction is to the fence tapering. it is well telegraphed as of now and the fed expects modest, if little reaction from the market. it is not clear how that will go once the tapering process begins. that is really what we had to watch for in september month the fed gets going, how does the bond market react to this out of supply that is coming on the exterior? -- next year? does that drive yields higher to where we are currently? sharif, thank you for joining us in studio. mark: i want to wrap up what's
happening with equities here, 90 minutes away from the end of the friday session. stocks are down for the day, down for the week. all of these currencies are falling against the dollar, sovereign bond yields rising, yields continue to climb. i like this chart, it shows how european stocks have outperformed their u.s. peers by over 500 basis points in dollars , resting a long trend of underperformance. the white line is the s&p 500 relative to the stoxx 600. stronger economic data supported the rotation into the region. in the last month, the s&p 500 has outperformed the stoxx 600 by 70 basis points. rising for amay be reversion in u.s. economic surprise data. atcern over profitability
france's biggest retailer. it said it was stepping up actions to protect themselves. some analysts were concerned the cfo was reluctant on the consensus estimate. a-shares down by 5% today. surging.volumes they had a massive rise upward over 30 minutes. you can see the spike on the bottom half. 10-year yield breaking above 50 basis points, coming after a week french debt auction. expectation going to war the ecb toning down their debt purchases. we are up by a fraction today. last twoyield over the weeks has risen by 20 basis points.
a big shift in expectations for interest rates next year. investors are now pricing in one hike of 10 basis points in december next year. one in december next year. vonnie: it has been one of the most highly anticipated meetings of the year, u.s. president donald trump and russian president vladimir putin's one-on-one at the g 20. this is bloomberg. ♪
were talking about free trade. was saying the united states, there was kind of dissonance between the united states and other countries. matt: president putin has said in the past sanctions are a form of protectionism. have you gotten anywhere as far as reducing those sanctions? story,tions is not our it is the story of those countries which implemented sanctions against russia. there any succession, president their tradeated between countries when some of the countries implement restrictions. do you expect president putin to discuss that with president trump this afternoon? >> you should ask them when they
get out of the meeting. matt: how are the sanctions affecting the russian economy, how much when they affected if they were lifted? >> in the current environment, what we see in the economy out of recession, already four quarters of subsequent growth. gdp of 3.1. inflation at the central bank target of 4%. everything runs smoothly. we expect this trend to continue. oil: if the price of recovers, are you working to help the price of oil come back? >> what we have implemented this year is a special mechanism to a large extent deals with oil prices. this week in parliament there was a law approved which sets a , inrule, at the same time the same way, like the peace accord created by countries like norway, which helps to isolate
the russian domestic economy. it means that in an environment pricesis, of course oil will be impacting the russian economy but it doesn't matter much. mark: that was the russian foreign economic minister. ne are hearing they trump-puti meeting is ongoing. what is the reading of that moment or two when both ofsidents sat there in front the press, spoke a few words ahead of the meeting? definitely seemed like mutual admiration society with both president trump and president putin saying they expected a positive outcome from the meeting. president trump telling president putin it was a great honor to speak with him. president putin addressing president trump as your
excellency. words ofresting admiration from both of them, for each other. i want to point out, german chancellor angela merkel is giving a speech right now, you can probably see her on the video screen all around the conference center now. making a lot of statements about the world economy and have it has improved but they still need reforms and they cannot sleep through these moments. vonnie: a couple of headlines crossing from that speech. the world needs free but fair trade, also telling people that the g-20 agree to deal with sources of radicalization. the mission statement purposes of the g-20 this year. great interview with the russian economy minister. he seemed to have no real agenda except for trade. did not need to be worried about sanctions with regard to the
economy, said that was a u.s. issue. is this posturing? matt: certainly, president putin has said he thinks the sanctions are another form of protectionism. president putin has spoken out against them. what i have noticed here, yesterday i spoke with a russian representative. anyone working with president putin tries as hard as possible to steer clear of any political statements at all. they are here to work on purely policy. they are working hard on it. twoerday, she had been in days of 24 hour straight meetings with at least six , andtance working with her so do all of the others. hundreds of people in the room just banging out policy, really trying to work on the global economy. i'm sure that is the same for the russian economy minister. president putin says he wants to
reduce those sanctions, and surely that is part of the agenda he is discussing with donald trump right now. mark: angela merkel says she cannot deny finding g-20 trader language is difficult. she also says most of the g-20 agrees to back the paris climate accord. clearly on those two issues, the u.s. stands apart. what does that mean for the ultimate communique, what are we going to get this time? matt: we have had this problem at the g7 level as well and chancellor merkel echoing those comments we got from the italian prime minister as well, saying the overwhelming majority of the g-20 still backs the paris climate accord and which is true, since 19 of the other to the accord. the overwhelming majority of the g-20 also backs the statement on free trade, against
protectionism. these are the two areas where they have had to fudge the communique in the g7. we will see if they can get it through in the g-20 but it is terribly unlikely. we have also heard that angela merkel is steering to keep the term climate change out of this communique, talking instead about things having to do with the environment as code for climate change. with the u.s. out of the paris climate accord and still looking -- donald trump still looking to please his base with talks of protectionism -- those will be big sticking point. mark: thank you. merkel saying the u.s. decision to leave the paris climate accord is regrettable. she also said she welcomed the meeting taking place between putin and trump. matt miller, thank you. continue to watch bloomberg and angela merkel. full speech on the bloomberg tv . this is bloomberg. ♪
speakingela merkel is in hamburg at the g-20, addressing reporters. she is tiptoeing around those contentious issues of free trade and climate. saysays most of the g-20 the world needs free but fair trade and she also says most of the g-20 agree to back the paris climate accord. she says g-20 language is difficult, the diplomats are finding it hard to get that language. this is bloomberg. ♪
register a fifth weekly decline. it is down by roughly 1/5 of 1%. if it falls for five weeks, something that hasn't been done since june 2013, but it looks like it will perform a little better than a decline of .28 percent. investors watching the fact that bond yields are heading higher. alking to richard jones in second. data out of the u.k. u.k. factories and construction firms unexpectedly cutting output, casting doubt on the performance of the economy in the second quarter, manufacturing falling .2% in april, vehicle production falling the most in the year. total industrial production falling 1%. disappointing news on trade as well. that chart shows you part of the story. this is the weekly move in euro-pound.
my narrative is somewhat ruined because earlier sterling was set or its smallest weekly range against the euro in more than three years. investors waiting for more certainty on the bank of england's next policy move, seeing how brexit negotiations proceed. sterling earlier confined to a range of half a pence against the euro, the smallest since april 2014. it is touch and go whether it will finish up the week like that, but a wonderful chart showing the weekly moves in euro pound. there are so many influences given what is said by the ecb, bank of england on rhetoric, underlying economic data, and on brexit as well. the boj asserting control over the nation's bond yields, sending borrowing costs lower with its first fixed rate purchase operation since february after the global
selloff, bonds pushing yields higher this week. no bids after the central bank offered to buy 10 year notes of .1%, the boj after think after bund yields rose across the globe, threatening that yield curve control strategy it implemented to keep the 10 year yield around 0%. this is the third time the boj conducted this fixed rate operation since introducing that yield curve operation in september. it is not all about the fed, the boe, and ecb. vonnie: that is where i pick it up because my next guest may have some problems. yen, ande, a weaker not only that, a free-trade deal struck with europe, and the word is theresa may will want to have a chat with him tomorrow. he is a happy camper. yields in the u.s., that big rise continuing.
the 30 year at 2.94. approaching two basis points for the first time since i don't know when. a couple of other currencies, the ruble trading above 60. weaker by .6% today. the turkish lira at 3.63. let's get a deeper look at commodities. >> it is all oil and commodities. starting with a two-day look at oil. we have had a lot of swings. wednesday was our first down day in nine. today, again taking a little bit of a leg lower. right after 10:00 this morning, you had a report opec was considering placing a limit on production in libya and nigeria. that would be supportive of prices but the market is brushing that off, not believing that news yet. take a look inside the terminal.
let's look at where oil inventories stand. inventories yesterday a report out that they fell more than expected, 6.3 million barrels. the biggest decline in five weeks. that should be supportive of prices. rings like markets igno that news. oil, with a better than expected and rising yields, you are seeing gold fall a little bit. you are extending declines from yesterday. now at the lowest price here since march. you are set for a fifth straight degree loss in gold. that is also putting some pressure on the miners. if you look at the one month view of some of these mining companies, they are getting pretty beat up because of the drop in commodities. we mentioned gold prices were falling.
low,r also at a 15-month hurting some of these gold-mining companies. reiterate want to what is going on in hamburg, angela merkel addressing reporters at the g-20 summit. she says finding a g-20 agreement on trade is proving difficult. she says all g-20 members voiced concern about north korea. it was discussed. steel is playing a central role in the 20 eighth talks. she reiterates still uncertain on what they will say on trade standpointsparate of the u.s., which has a more standpoint, and the more globalization stance of the rest of the g 20. that meeting between the president of the u.s. and the russian president still ongoing. we did have the two meet the press ahead of the meeting. 10 past 3:00t
london time, so about one hour 20 minutes ago. some suggesting the meeting would only last 30 minutes, but it has tipped over the hour. we will keep an eye on the length of that meeting and will let you know as soon as it is finished. jobs out in the u.s. treasuries maintaining declines. a strong jobs report boosting confidence in the economy. how does this impact the fed's next move? richard jones is here. dial at all,e the given the job support? >> i don't think so. in terms of the jobs narrative, that is something we are accustomed to. that side of the ledger is fine. on the inflation side, we will have to see some new data. if anything from today's report, the wage data was weaker than expected. that is the conundrum that the fed and other central bankers have been wrestling with.
a mixed report today. wages were a bit of a damper but realistically, i don't think this changes much at all in the fed until we get some new signals on inflation side. bond market, i will not use the word around, because you will tell me off. movement up in yields, referring to the german 10-year. in the last couple of weeks, we are up by 20 basis points. what are you calling it, and why? richard: what's interesting, if we look at the post u.s. election price action across the major bond markets -- and that's a good place to start -- because there was a global reflation theme developing. bunds are the only ones that have made new highs in that time. you look at the french yield, the 10-year, spain, italy, the u.s., u.k., yields are higher but we have not made new highs
this week as we have in germany. i think there is something idiosyncratic going on there. earlier you had a chart that showed the yield -- the volume spike that we saw when we went through 50 basis points. it strikes me that that was a bit of a position clear out. now with cleaner positioning, we may see some moderation, normalize in terms of bund yield. haveese other markets, we not had had the same size and scope as the german bunds. i am not calling it a route because it is not broad-based, and despite the move being pronounced, it is not something we have seen even in the taper tantrum, where the moves were broader and much steeper. vonnie: bill gross not calling it a route either, richard. ray dalio, you went through his latest note, and he is not pronouncing it a route by any means either. he does talk about the impact on equities. maybe not impact, but the idea,
while the bond market is not being routed, equity investors need to be extra careful. richard: that's an interesting point to make. pointk what ray dalio's is, the error of super accommodative monetary policy is maybe coming to an end. your initial thought is bond yields will go higher, and that's true. but the point he is making, this could have a bigger impact on equity markets. investors have to be careful about the year of easy money ending, and that, as a driver for equity performance, is coming to an end. if that happens, you may see a switching into bonds. if those yields inch higher, that will become even more attractive. the bond market may not be as responsive to the end of the easy money era as equities are. that is something to watch on across as a basis. vonnie: when that mean then that we would get back to the old, traditional correlation where if
equities go up, bonds tend to go down? richard: i think that's the case. the timing of this is very hard to pick. , but not going to be easy i think those old correlations may come back to what we have grown unaccustomed to in the global financial crisis era, and the aftermath. mark: a great bloomberg article today, the hawks circling over the bank of england may have gotten their wings clipped. it's a wonderful piece in the wake of today's data point. factories, builders cutting output, you have the trade deficit widening. you have been consistent in your worsening, data is and that probably does not warrant the need for a rate hike now. does the consistency of the poor data push back against some of the more hawkish messages
hawks are the hawks. we have two of them now on the mpc and i'm not sure they're both will shift. the swing voters will look at this data and it will give them pause. their view, that rates may have to rise in the near future, is conditional on the data improving, and the brexit negotiations going quite smoothly. on both of those fronts, it's too early to say, things are panning out the way the bank of england hopes they will. i think the data today is probably something that will keep the swing voters in the leading rates unchanged can't, but i'm not sure it will shift the hawks. for: richard jones bloomberg markets. by the way, richard is in a fightersand, a foo tribute dan called the foo fathers. they played for two hours last night, and you almost mirror the glassed mary set. richard: a lot of similarities.
mark: tell them why you did the mirror it. richard: the set at glastonbury really ruined his voice, so our singer decided to shifted up a bit and buildup. vonnie: we have a rockstar onset. you are telling me you are not the dave grohl of the band? richard: i am the drummer, unfortunately. mark: should we test vonnie's knowledge? mark: nate? richard: that is the bass player. taylor hawkins. itnie: if richard -- mark: richard did not know that, the tribute band would have no credibility. see you next week. vonnie: richard jones, thank you. time to check in with courtney donohoe. >> president trump met with
for thet vladimir putin first time. the economy minister says putin confronted mr. trump about the use of economic sanctions. he also said president trump's position on trade dramatically different from that of other countries. earlier, mr. trump he looks forward to a lot of positive things happening. the u.s. added more jobs than expected last month, payrolls rose 222,000, revision to april and may reports adding 47,000 jobs. unemployment rose to 4.4%. forecast. wages below the u.k., prime minister theresa may rejected please from her minister to guarantee the rights of citizens living in britain. the brexit minister warned her about her hard-line approach to the split. he says uncertain fate of eu nationals in the u.k. was making his negotiations with other eu governments that much harder.
a rescue fund has appointed $9.7 billion in financial aid to greece. this will allow them to meet payments this month. ministers agreed in june that the country had undertaken enough economic reforms to get that additional aid. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i'm courtney donohoe. this is bloomberg. mark: coming up, peter parker is back. is this the megahit that tony needs to get back on top? we will examine the money behind "spiderman: homecoming." this is bloomberg. ♪
will he savek but sony from its slump? film hitsh superhero the theaters this weekend. the studio desperately needs a hit. so far this year it's in seventh place at the box office, its lowest spot since 2000. let's bring in the movie expert paul sweeney. sony is in a different place than it was in the year 2000. it would not expect to be number one or number two necessarily. >> the studio was fifth last year, where they have stuck around, somewhere in the lower end of the pack. this year has been a difficult year for sony studios. they are number seven out of the seven big studios we track. only about $200 million in domestic box office. they need a big film here. the good news is i think the spiderman film will deliver once again. expectations are for a very strong opening domestically this weekend.
should have a good run in the u.s. then of course, like most of these big movies, they have to play well overseas. expectations are that spiderman will do that as well. is a reboot, it retread, sequel, whatever you call it, this summer has been a bit hit and miss. you have transformers, pirates of the caribbean. that puts a lot of pressure on sony and this spiderman reboot. this is the sixth spiderman film? >> if you are sony, the problem, unlike the disney studios, they don't have a big stable of franchises they can go back to every couple of years. spiderman is certainly one of these, so it tends to be a hit and miss story for the sony studios, unlike disney, which have invested so much in the pixar properties, marvel, lucasfilms. fiveems disney has four or ranch as is every year.
it's a challenge for everyone else. spiderman himself, they are not going with tobey maguire or the and requires of the world -- is this about giving cost down or putting a fresh face in their? >> it is about putting a fresh face on the story or the character. it is more about the character. i think they are trying to take an irreverent look on the spiderman story this year. it is a new phase, they are hoping that this new actor really takes over as a force with the character, that they can build the franchise with this actor for another couple of series, like they did with tobey maguire. a lot that sony is banking on with the spiderman franchise. outside theg superhero slate, what else does sony got? ji filmthe original jumanki
and flat liners. i cannot believe they are bringing back the originals. kiefer sutherland, what a great film. sony, you are looking for a franchise here. successful 20 years ago and they are bringing him back with dwayne johnson and some other big stars. that is expected to be a big movie, maybe 200 million in domestic box office is. spidermaning out with may have a stronger second half of the year than the first half. ,f you are the sony corporation the film and entertainment business is not a big profit driver for you, but clearly, it is a big business in hollywood and everyone is looking to see how the big studios do. sony has been lagging, so they need a big second half of the year. be watching.ll maybe we will do our part at the box office. paul sweeney, thank you. coming up, we are talking
vonnie: who needs the weekend box office when we have our global battle of the charts toward early on friday? we are looking at some of the most telling charts of the day here and you can always access these charts on the bloomberg. it is back to transact letting battles. dani burger is kicking things off in the u.s. >> certainly leaving the realm of spiderman a writ i'm looking at some interesting market action we have had over the past week. uw etf's, oneg at tracks the s&p 500, the other one tracks 20-year treasuries. usually they move not so much alike, but look at what happened here. 27, mario draghi
gave his more hawkish comments. that set off stocks and bonds selling off both together. that happened three times. since the 27th, they have sold off 1.7%. this rarely happens. it is so rare the last time this happened, the taper tantrum of 2013. that was part by the fed tightening. fed,right here is not the it is asia, europe, and of course, the fed as well and you time, caroline hyde is here. >> in the house. and what a joy. i have my tech geek hat on. i am going to be showing you what tesla has been up to. yes, they just scored the bid to provide the biggest battery storage in the world, going to australia, but it has that helped to power those shares above the 50-day moving average. check this chart out.
soaretesla shares have d. that they have fallen this week. $12 billion of their previous record in terms of market capitalization. we are talking $8 billion eroded from them in the past week alone. concerns about competition. volvo talking about electric cars. volkswagen saying we can take on tesla. you also have concerns about the plateauing of the model x, model f. the more margin rich cars that are currently in the remit of tesla. everything is moving ahead of the model three, the more affordable car, said to be rolling off the line july 28. dani's chart so
much, i showed it in this morning on surveillance. but you know the tradition. it has to be caroline today. dani.: sorry, i think she knows well. she may have been the beneficiary of that at one point. caroline, beautifully done. up next, real yield. about lots more. mark: the meeting between president putin and president trump is still ongoing. as soon as that ends, we will bring you details. this is bloomberg. ♪
♪ from new york city. i am jonathan ferro. 30 minutes dedicated to fixed income. from new york, this is "bloomberg real yield." jonathan: coming up, payroll top estimates, wage growth disappoints. policy nervousness continues to grow when the bond yields climb. and protectionism dominating the g-20, and emerging-market resilience with a big your about performance. we start with the big issue. looking at payrolls, wage growth disappointing. >>