Bloomberg Audio Studios, podcasts, radio news single best idea out on Apple podcasts, and trust me, not six minutes, not five minutes. This could be a thirty minute single best idea. I'm not going to flick that on you in August, but a set of incredible conversations today. Front center was our conversation on this merger of Kellogg's snack food division into the private company Mars. They make Mars bars and Snickers,
I guess, and things like that. But we covered that very carefully and I think maybe that's a precursor of things to come. I'm really fascinated by to the end of the year what we see in terms of m and A really at all capitalization levels. First, on inflation, interesting report double earl it PPI before CPI. Thank you to Bob Sinchump in Connecticut for the observation that what was key here is PPI was out front of CPI. So maybe we didn't get the glory today, we got
it yesterday. But there's a tinge of disinflation certainly within those two reports. Retail sales tomorrow on CPI want to watch some very interesting observations out on lagging shelter inflation. Neil Dotta of Renmac on the mortgage rate.
Well, I mean, I certainly think that mortgage rates need to follow a lot more from here in order to juice the housing market, which means that the Fed has a little bit of work to do. You know, it's interesting, you're if you look at mortgage rates, I mean, they're basically running at the lowest level since I think last spring. But you haven't really seen home sales or purchased demand run at the best level since last spring. So why would that be? And that's because I think inflation has
slowed more rapidly. So six and a half percent on to your fixed looks a lot better when inflation's four and a half percent then when it's two and so just a reminder that real rights are still quite elevated.
Neil Dunna of Renmac there on inflation and again retail sales tomorrow. Retail sales is quoted before you take out inflation. What's called nominally and is Mike McKee does he take it out and adjust for inflation. He's sort of kind of like, but retail sales will be important tomorrow as we slide into an August. We can on the e CEO GO terminal screen. There are twenty lines of economic data tomorrow that gives you an idea of the import
of it. I could do a one hour discussion, a monologue and bore you all to death over our conversation today with Stephen Rashudo of Miszuo Stevershudo is one of the most Prussian people in the game. He was absolutely spellbinding on the death of the study of knesy and economics,
the Hicksian John Hicks ISLM model. Not going to go into the details on it, but basically, the LM curve of the X is the financial markets, and the IS curve of the X is the real economy markets, and we spend a lot of time talking about the real economy. The summation of it is, he looks for an imputed larger inflation in America. Is the IS curve shift to the right. Don't keep score at home on us, don't draw any maps in your car. But the answer is he looks for a nudge to a more persistent inflation
in America. Pushing against that is a global disinflation. Where does it meet. It meets in the currency market. Stephen Rashudo of miszuo. The importance of the dollar.
Watch the currency. The currency is critical here because it's a debate. It's a battle in the US be between domestic cyclical forces and global deflationary forces. And those global deflationary forces are real, they're palpable. I understand them. You don't have to go much beyond the just looking at the latest numbers news coming out of out of China and have to look at what's happening in terms of
Europe and other parts around the world. Global deflation is real, but so is domestic cyclical inflation, and the currency has been the factor. D x Y, your Bloomberg measure on the currency, went from parody one hundred to one sixteen. We're now coming back. We're at one o two. I don't know what it is right now, but we broke through the one oh three level. We're heading towards one
o two. Early day you get back to parody, and guess what the dollars no longer allowing global disinflation to be imported into the US economy.
Steven Rashudo of MISSOUI there are d x Y quoted it one oh two. Issu ishu means, you know, take the decimal points into account and it has come down from one O four one o three, one oh two. The Bloomberg Dollar Index, which I call bb d x y Bloomberg get it. Bb DXY is twelve forty something and that's actually mathematically a much more interesting index. It it takes into account em and China and the rest. Were DXY is only the major traditional European trading partners
with Japanese yen. As well as that that was too much for an August you know, that was just way too much. We need to exit. Let's exit with this android auto Apple car play. Thank you for the note out on Apple car Play today. I didn't know that when our guests come up, they come up on Apple CarPlay, which is very cool on YouTube. Thank you so much. Subscribe to Bloomberg Podcasts. I can't say enough about the
growth of that, particularly internationally and on Apple podcasts. This is single best idea.