Global business news twenty four hours a day at Bloomberg dot com, the Radio plus Mobile Act and on your radio. This is a Bloomberg Business Flash from Bloomberg World Handquarters. I'm Charlie Pellot. Stocks are trading lower and this update is brought to you by b n y Melon introducing Assets Strategy View, helping fund managers gain insight into where asset owners are investing and how their strategies are changing. Visit b n y melon dot com to learn about
Asset Strategy Review. Now let's head over the first Word Breaking news desk for today's afternoon call. Here he is Bill Maloney. Good afternoon, Charlie. Manu. Savages are down but have paired their losses. DALL is currently lower by twenty two points as to be dropped four and a ZAC declines fifteen. At one point, the DALLA was lower by eight nine. The small cap six d clins three points in the US ten yield at one point six eight per cent. Seven out of tennis B sectors remained lower,
led by losses and financials, materials and energy. Gains for utilities, telecom and consumer staples. DO transports declined twelve and as a biotechs fall forty three and the vix is higher by two point eight percent. Dolla leaders said the downside included Catpillar, American Express, and Goldman Sachs, Nike, J and J and Verizon. Led to the upside, jam Smucker jumped eight percent to an all time high after earnings, while
Restoration Hardware plunged after its results. H and up Block reports after the bell Live on the First Breaking News desk on Bill Maloney. Charlie Hall, all right, thank you very much, Bill, and to hear live breaking news over your Bloomberg type squawk squ a w k on your terminal. I'm Charlie Peloton. Dat's Bloomberg Business Flash. You're listening to Taking Stock with Kathleen Hay and Pim Box on Bloomberg Radio. Gold investors piling into gold. It's up more than twenty
this year. Mining stocks have gained even more. Let's find out more from Jim Rickarts. He is the editor of Strategic Intelligence Newsletter, and he is also the author of the New Case for Gold. Jim Rickarts, thank you very much for being with Usim tell us about George Soros, the billionaire investor, because in May he disclosed a nineteen million share steak in the world's largest gold producer, that's Barrack Gold. And also, just to compound it, double lined capitals.
You know Jeffrey Gondlack, he has called for gold to reach fourteen hundred dollars an ounce that currently trades on the Comax at undred and seventy. Well, that's right the way I think about him. People always talk about the dollar price of gold. I actually, you know, when I invest in gold, I think of it by way. So there's so many else, there's so many kilos. If you're Kyle Best or Texas, Uh, you know, a pension fine you can buy a few times if you like, for
a couple hundred million dollars. But a lot of people to even in dollars. They quoted in dollars. But so in that sense, the dollar price to goal is just the inverse of the dollars. So when you have a stronger dollar, you would expect a lower dollar price for goal. A weaker dollar means a higher dollar price for gold. So owning goal right here is basically a bet against the dollars, saying the dollar is going to get weaker, which it is if it has been tightening for three years. Um,
they're going into an easy case. The dollar is going to weaken against the year in the end, and that means a higher price for goal. And I think Sorice is onto that. And you know San drooncon Miller and and other Hedghow managers are very very successful long turn shop records are making the same trade. Well. Of course, the tightening has been pretty slight from the FED gym, as you well know. And the question is now how much of at all they're going to raise rates anymore
this year? But I want you to weigh in on Bill Gross's tweet today about negative interest rates. He says global yields lowest and five years have recorded history ten trillion dollars of negative rate bonds. This is a super nove of the explode one day. And it's interesting because I've been see to people lately. Are we all watching more and more yields go negative around the world and not realizing this is a signal of something bad brewing? Yah? I think actually all the rates in the world are
going to zero or negative. I could see the tenure note going down to fifty basis points or seventy basis points. You know, a couple of years ago, the Japanese tenure j GUB was at seventy basis points, and people said, look how low that is. And of course now it's negative yield to maturity. So I see treasuries heading the same way. By the way, Cathn, I disagree about the
said tightening. They've been tightening for three years since May two thousand thirteen, starting with the taper talk that Brnocchi gave that month. Then they actually started the taper in December two thousand thirteen. They then remove forward guidance in March two thousand and fifteen, spent all two thousands fifteen threatening to rays rate. It's finally got around to it. Well,
they've tightened so much. How come yields are so low in the United States, Well, because this is a deflationary Basically, they shouldn't be tightening. They should be easy, and they have. The economy is probably heading into recession. You don't tighten and we us and you should ease in a recession. The time to tighten, By the way, it's two thousand and ten. They blew that. Now they're making two wrongs.
Don't make it right, but they're they're I mean they're talking about tightening, but they basically because they've been tightening for three years, mostly with jaw bonning and playing with expectations, they've created a dollar shortage around the world and so it is deflationary. That's why yields are going down um and now. So the question is how do you get out of it that? Where do we go from here? What the way you get out of it is with a weaker dollar? This is just currency wars ONNEO one.
So all the other channels are broken. There's there's no physical stimulus because there's no political consensus. They can't make structural reforms for the same reason. Monetary policy is pretty much out of gas, and so the currency wars are basically the only way to create similar because it doesn't do anything for the world. It can help a particular economy or country briefly until it flips the other way.
It's not doing anything for world growth. But right now US and China are trying to get a little lift with a weaker currency, and that means a stronger dollar, stronger hero, and stronger goal. I'm pretty stronger, yeah, I bespoke a stronger ye and stronger euro and stronger vot Jim. If people follow this strategy, what are the tactics? Tell us should you invest in Newmont Mining, Freeport mcmaran, the Spider Gold Trust, the Direction Daily Gold Miners Index, bull shares?
What what should you invest in? My preference is physical goal, but I don't like so called paper goal, whether it's comics, futures et s or London Bullion Market Association on account allocated forwards because when the price of gold super spikes, when it really goes up, when you really want your goal, all those contracts are going to be terminated. They we'll give you a check for your profits as a closed
business yesterday, but you won't participate in the rally going forward. However, if you do want mining shares, they recommend some of the smaller miners because their takeover candidates a company like Barrack. With the price of goal going up, it's easier for them to buy a junior miner than it is to go out and do a development study and explore completely new fields. I mean they'll do both, but a lot of these um UH six cecil the junior miners are
very good takeover candidates right now. So you're getting a pop on gold and you're getting another pop on the takeover premium. Alright, Jim McCords, thank you so very much for joining us to talk about how gold is a winner in a world where bonds are rallying more and more, yields are turning negative and as he says, the ft has been tightening in many ways, says as could it a dollar shortage, that too is good for gold. We thank you Records, editor of Strategic Intelligence Newsletter, author of
the New Case for Gold. I'm Kathleen Hayes along with Pim Fox, and this is taking Stock on Bloomberg Radio Bloomberg. Taking Stock has brought you by Bentley University. What you're developing apps at Facebook and analyzing data at Biogen, having Common and NBA from Bentley University, where you will explore innovation and leadership because businesses everywhere prepare here.