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Single best idea After an exhausting week, I can honestly say, for the first time I walked in the office today somewhat awake. It has been an exhausting two weeks, an exhausting period here of tariff and its effect on the markets and all. Today we head in a set of political guests. Thank you for the fierce comments on the political guests those four and again, so it's always good
to see that. And of course we looked at economics, finance, investment, but the heart of this, the deepest market is the bond market. Amand Alignum is expert on this at Blackrock. She can look out to ten years, the belly of the curve, five to seven years. Here amand Alignum of Blackrock in on the trust market.
The rep the short term funding repo markets are definitely important in times like this. We're staying in very first contact. They are there. I would say liquidity is a bit challenged, but they're for sure open and functioning for corporate credit investors. Actually, the new issue debt capital markets has been a really important barometer of confidence during late twenty eighteen, during the
pandemic even during periods of the commodity disruption. The freezing of those capital markets during those periods of time did catch the FEDS attention. We know that right now they're open and functioning, just at a higher cost. We're watching that very closely. The other thing, at a more macro level, is this feedback loop, this really important feedback loop. We would argue between corporate margins, the layoff rate, which is
still low, consumer spending and overall economic activity. If pressures on margins are enough for corporates to flex that layoff tool more aggressively, we think that could really cause some concern in the broader economic backdrop.
The man aligne of Blackrock. Just to pro tip here in other crises, we've always had libor ois, the comparison of the benchmark three month liboard to theis indicator, and that is sort of thing that's gone aside, if you will. And in the short term market, what I look at in the Bloomberg is the SO for ten year. Damien Sassauer, who's better than me, looks at SO for two years SOFR, and then ten year SOFR and then two year, and those thermometers as a mandoliin set have calmed down in
the last number of days. Anastasia Ameroso is with IKEAP. She's mixed on the market. Boy was she a successful bull here for years. A very tentative view on the market here Anastasia Amroso on the MAG seven.
The first place I would step into would not be the MAG seven. Stocks and semiconductors, for example, will likely be challenged if you have this cyclical slowdown in the global economy. They just get caught up in export controls and the overall slowdown. So I don't necessarily think that that part of it right now is the first place
to be. They're not immune from US economic slowdown either, but I do think that, as I mentioned before, you want to align yourself with the direction of policy right now, and the direction of policy is focus on domestic companies who are sourcing their cost of goods sold here in the United States, and they're mostly selling to the US consumers. So that's why sector like utilities and real estate and consumer staples for example have outperformed. And by the way,
also financials are held up as well. So that's why I would focus there right now. But I will say Tom that you know, if this administration succeeds longer term. And if this results in deals that brings production to the United States, if this results in a new world order we're actually griffs and non tariff barriers do drop, then maybe we do have this on shoring investment boom. And so you have to allow for the possibility, especially give and the tax pass in the US website so favorable.
In the Stajamoroso with Ikap, Thank you so much for being with us today. On your commute across the nation, particularly on Android Auto, Apple CarPlay, those are booming new digital platforms for us. Goodbarding ninety nine to one FM in Washington, ninety two nine FM in Boston. Of course, our flagship Bloomberg eleven three to zero out on our podcasts. Go to YouTube, subscribe to Bloomberg podcast. It's the best way to get all of our material and on YouTube podcasts. This is a single best idea.