You're listening to Taking Stock with Pim Fox and Kathleen Hayes on Bloomberg Radio. Mondaliz no longer pursuing a combination with her. She what a day for breaking news we have had today from Apple and Caesar's Entertainment to now Mondaliz can she joins us Bloomberg News Bloomberg Intelligence to tell us we don't know too much yet. Can we know that it was down at least ten percent? As soon as that news came out postmarket, uh, mondely saying
it's discipplined with the outcome. What's going to happen in this case? Yeah, Hi, Kathleen, Um, Yeah, today's news certainly was a disappointment, certainly for investors who thought that combination of her, she and Mondalez as powerful brands, would um, you know, be a strong investment um. And they may have had a good case there. I mean, they would have a leading US share and a very attractive high
margin grocery category. Um. Without getting into the gory details, I mean, we know that her, she is closely controlled by the board and they were cool to the to the bid her. She's got a strange uh characteristic about it. Also in that a deal has to be approved by the Attorney General of Pennsylvania. So there's really it's really a tough company to acquire, and Mondale's I guess felt that,
you know, it had enough ways to to get around it. Um. But investors, we're thinking that the deal was going to get done based on how hers She was trading. So yeah, it certainly could be a disappointment to hold as a Hershey, yeah, what happens? I mean, but can anybody step in on either side? Right? I mean, I know there's a lot of technical, technical and difficult things with hershe Will anybody else step up? Now? You know that's such a million
out of question with her She. I think they you know that they think they've probably scared some people off in terms of you know, trying to acquire it um with Mondale. You know, I think it underscores its need to pursue acquisitions to row. You know, it's it's it's an emerging markets like China and some attractive markets, but they're slowing down, and so it feels that it needs
to diversify better. UM. And it's signaled that by by looking at a company with who's essentially US based company like hershey, but for her, she it's hard to say if anyone's going to take a run out of here. Well, I'm sure if anybody does, you'll be the first to let us know. Ken sh Senior Allies or Food and Beverage at Bloomberg Intelligence. Let's get right to Ward McCarthy, chief financial economist at Jeffreys a ball market rally today, Ward,
we had consumers spending looking reasonably healthy. Inflation, you're over here still lagging the Fed's target by a long shot. What's going on? Well, I think what we saw today was a couple of things. First of all, UH, the three hours fell off that we saw on Friday afternoon, UH created some yield levels that looked to be a little bit attractive. And keep in mind we're right on the threshold of the end of the month as well, so UH, there was some institutional investors that were involved
with extension trades. So I think that's really primarily what we're looking at. But when you take a bigger step back and you look at last week's big development, which of course was Jackson Home, it was really kind of a friendly message from the Fed, even though they were telling us that they expect to raise short term rates UM in the not too distant future. Uh. They also said we're not going to raise them a lot, and we're going to leave the balance sheet enormous for a
long time to come. So I think these were probably um some company messages as well. So what do you take away from Jackson Hole ward? Uh? I think I guess you just summed up what you you take away, Uh do the bone recompenning attention to governor crota boj Governor reiterating and maybe even saying more firmly he's ready to do whatever it takes to uh, you know, we
can the end boost inflation, etcetera. Because it seems like get one other big benchro bank, central banks sanking, we're gonna have lots of lots of liquidity coming out there, lots of stimulus. Well, you know, there were a lot of messages coming from Jackson Hall, and in fact there was so many that it's you know, makes it difficult
to um, you know, get a very clear picture. But it's one thing is quite clear that uh central banks still want to provide uh stimulus to the economies to do what they can, although a lot of them seem to think that they may be near the end of their rope. There's only so much central banks can do. And one of the important themes out of the Jackson Hall Symposium as well is that it's time for the politicians to start carrying some of the load UM and
with some physical policy changes that will promote growth. Okay, word, So I guess the question is, then, what does this mean for the bond market. We've got okay, got a kind of a bounce back rally, some nice looking yield levels, But if it FEDS near the end of its rope, of it's not going to raise my that would seem to be bullish. On the other hand, to the physical side were to step up, what does that mean? Well, I'm not going to hold my breath waiting for the
physical side to UH to step up. And first of all, we have to get through what I think is UM an election that very few people expected. When you look at the UH, the two parties both seem like they want to spend more money, especially on infrastructure, so that would fit all the type of actions that central banks would like. But on the other hand, the two parties
go in opposite directions on tax policy. The Republicans wanting to cut taxes, and uh, the Democrats are going in the other direction, especially on corporate tax I think, which is um, you know, a really significant issue for this country. Um, because of the inversion issue. UM. And that's really just a function of the fact that the lad of time we changed tactics is thirty years ago and we're high now. Oh boy, all right, where McCarthy summing up so much?
What lies ahead from Jackson Hall as we head toward that September twenty one Federal Reserve meeting and in September twenty one Bank of Japan meeting. And I want to thank John Lauder, our technical director today of course, our producer Sam Linga. I'm Kathleen Hayes, and this is Bloomberg