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Single best idea on an odd Monday. There's no other way to put it. Odd for the newsflow, odd, for the immediacy of the newsflow, which is through the weekend news and then overnight Tokyo opening, the Asian markets news, Taiwan dollar explodes in strength and beyond much more than that, just other news. So it's such a clumsy, clumsy Monday.
We demanded clarity. Thank you, Dana Telsey. Really appreciate her coming in in the state of retail in America, very very informative and fluid and uncertain is the future for retail America. Ian Lingoln was in with our question our Global Wall Street Interview of the Day. Ian lingn here on the bar market, he looks for the ten year yield out there to move from the four point three zero level down to three point six percent. Let's listen.
I do think tariffs complicate the calculus for lower rates, but I do think that the Fed is ultimately going to start the process of normalization again, but not until we've got greater clarity on what the trade war really means. And I do think tenure yields in this year at three sixty five. Implicitly, because the President keeps changing the rules or changing the trade dynamics, it's very difficult to estimate what this all means for core PCE and therefore
the FED and the trajectory of the economy. I think the one clear takeaway is that there has been a concern raised about the dollars status as a reserve currency and whether treasuries are still flight to quality assets, and the recent price action suggests that those two still hold for the time being. But that's going to be the major question for the next several months.
Ian Lincoln with us there from BMO Capital Market. Sometimes news comes out you expect it, you've been waiting for it. That's the case with an Apple debt offering. I've been waiting for it about nine months, two years since they did their last offering. It's a triage of four if this taping, unknown what those levels will be, and I'm sure it'll be price up, yield lower, and very near
a treasury yield. We are so advantaged at Bloomberg Intelligence to have Robert Shiftman with us and his team looking at corporate at paper he published immediately on the known and the unknown of the Apple transaction here, Robert Shiftman of Bloomberg Intelligence.
It sort of goes back to my early days at math Camp. Their weighted average cost of capital is dominated by their cost of equity, which is about nine and a quarter percent, and their weighted average cost of debt is effectively zero. When you have a three trillion dollar equity market cap, that the cost of debt is nothing, and that's why they keep one hundred billion dollars of debt on the book. So it makes math sense to borrow money and buy back more shares or give it
away and dividends, and that's what they do. The real issue with Apple is they have a problem, and their problem is they make too much money. They have one hundred billion dollars of annual free cash flow, so it keeps flowing in. So what do they eventually do with it? Well, they give it away, But you know, you borrow a little bit at a time, and for Apple, that's five or ten billion dollar chunks.
Robert Schiffman on short notice there and the Apple transaction. Look to our Bloomberg Intelligence team and also to Bloomberg News for the publication of that transaction, always anticipated on Wall Street. Thank you for your listening on commute. Particular thank you to those in serious XEM Channel one twenty one greatly appreciate that. On YouTube, building every day subscribe to Bloomberg Podcasts. Just can't say enough about that. And on YouTube podcasts, this is single best idea.