>> welcome to bloomberg markets. hot u.s. inflation tops forecast for third straight month and delays fed rate cuts until later in the year. we are starting with equities. s&p 500 down on the day 1.1%. dow jones industrial average down 1.3%. they are off the session lows, but still taking a dive for the day. the vix is a bit higher, above its average for the full year, but well off its highs. let's take a look at yields.

this is where a lot of the movement is. nearly 4.93 on the two year yield. stunning moves of 18 basis points higher than where we were a day ago. the 10 year yield now back above 4.50. the dollar rising in conjunction. gold taking a bit of a breather, it has risen 13% on the year so far. movers on the equity side, one stop feeling pain from the inflation report is deckers outdoor. it is among the worst performers in the s&p 500 and is affected by downgrade. the stock down more than 7% on the day. delta reported a strong second-quarter outlook. the stock fighting to remain higher amid the selloff.

the ceo says there is no let up in demand going into the summer. delta flat now on the day. boeings supplier taps the new ceo. the new ceo oversaw a number of quality problems and margin issues. david kelly says today's data takes the june rate cut off the table. >> the sound you heard was the door slamming on june rate cut. it's more inflation than the fed wants. they still want to normalize rates over time. i think this means they won't cut rates in june. sonali: let's get straight to the cpi numbers with michael mckee down in washington. mike, i missed you this morning. would have wanted to know your reaction when you saw that hot print. michael: i wanted to know what you did for your birthday yesterday, but in terms of my

reaction, i saw the markets go negative. 0.4% for the headline in the core in a month over month basis. it pushed the core and headline numbers higher. the fed has issues they are going to have to end up dealing with here, one of which is does the fed have control over inflation? the fed stopped raising rates in july of 2023 and ever since then, progress on inflation has essentially stalled out. we haven't seen much move downward since that time. that as you can see -- that has people on wall street concerned that the fed is going to have to stay higher for longer. david kelly mentioned he would be happy to see rates start to go down in june. not going to happen according to

the folks on wall street. june is priced out, july is priced out, and as of this moment, september isn't even priced for a full rate cut. you have to wait until november until you get a rate cut fully priced in. it's going to be another waiting game. the fed meets may 1 and then they meet on june 12. we will get two more inflation reports before they meet. sonali: the fomc minutes just after 2:00 p.m. earlier today, former treasury secretary larry summers reacted to the inflation data and he told david westin that investors should seriously consider that the next fed move is a hike. here's more of what he had to say. >> rate cut in june it seems to me would be a dangerous and egregious error, comparable to the errors the fed was making in the summer of 2021, when it just

didn't get the thread on inflation. sonali: let's now bring in the head of economic research for fixed income and macro at citadel in an exclusive interview. he joins us now. when you look away larry summers had to say, how do you feel about the potential for a rate hike? >> i don't think so. the fed has a strategy of higher for longer. we are in that process. let's remember, they hiked rates last july. soon it's going to be almost a year. they are waiting for the effects of those rate hikes to percolate through inflation. sonali: howdy see the lagged effects playing out? >> it's a sequence. it had an impact on the housing market. it had an impact on durable goods consumption. it hasn't had an impact on

fiscal policy of public investment. we are in a new world. it's a new world where there are a lot of policies happening playing at the same time. sonali: you wrote in a financial times opinion piece on may 2 that there is still a narrow path to a soft economic landing. do you still believe that? angel: that was a most a year ago and yes, i still subscribe to that. we were one of a few places that didn't call for a recession this year because we were seeing a lot of resilience in the u.s. economy. consumers have very sound balance sheets. banks are well-capitalized. a lot of the elements were not there for a recession and i think we are seeing that. sonali: how do you feel about the direction of inflation from

here? do you believe there is a path downward or does it stay higher for longer, maybe higher forever? angel: listen, we had two big shocks in series, one was the reopening that was really abrupt and then we had the commodity spike. that has generated a ripple effect. what we are seeing now is basically still the aftermath of that. goods inflation went up, it has come down. services inflation is next. it is coming down more slowly because services inflation by nature is stickier. then you have wage inflation. rising has not been as strong as some expected, but you have real wages catching up a little bit and that's going to extend a little bit. i think it's happening according to plan. it was never going to be a steady path. we are seeing banks -- -- bumps.

sonali: when you about the bumps, where are we to years from now? angel: there is that gravitational pull of inflation expectations. unless there is a policy mistake and i'm not saying there will be, we should have inflation converging gradually toward 2%, which is what markets are pricing and the fed is expecting. sonali: it begs the question how quickly interest rates come down? how long do we stay higher for when it comes to rates? angel: as the fed is saying, they need greater confidence. what is that mean? it's greater confidence in the forecast. right now, they're not completely convinced that it's true. once they become more convinced, they can start doing what they say, dialing back restraint. you can cut rates even while inflation is still a little high.

it's now probably a little bit below 3%. it can be a little bit softer today. sonali: how much of a risk is there for moving to a soft landing to something harder? where do fragility in the economy? angel: i think the fragility is in the level market. we are getting strong nonfarm payrolls growth coming from foreign workers, from immigration. when you look at the details, the hiring rate has come down, the firing rate has come down. it's a bit like the labor market is on pause. why is that? companies a couple years ago were scared they were not going to find workers so they hired any worker they could find. now they fear that if they fire the workers, they might not be able to hire them back. we are in this state of labor holding. how long does this go for as long as the outlook is bright?

if policies to type for too long, we run the risk that the labor market cracks. sonali: how much of a risk is there that that rate does stay high for too long? angel: there are two ways of rates staying high for too long. the good one is the neutral rate is just higher and we have higher rates for the right reason. the other one is the policy mistake. they stay high for the wrong reason because the fed is too focused on inflation or misdiagnoses the outlook. sonali: both scenarios suggest higher rates than the market is suspect -- expecting. angel: probably over a medium term, yes. we are living in a world -- the where like to think about it, we have sort of concluded that the deflationary period is over. is there anything wrong to going back to where we were in 2005 or 2006?

i don't think so. sonali: it's a great place to leave it for just a minute. angel is going to stick with us. we are going to concern -- talk about the fiscal concerns. stick with us. this is bloomberg. ♪ [city noise]

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sonali: this is bloomberg markets. we're back now with the head of economic research for fixed income and macro at citadel and we are going to talk about the u.s. fiscal situation. in a recent article for the financial times, you wrote about fiscal responsibility and you wrote about when faced with a plethora of policies, that

framework is now under pressure and it is on a collision course with the forces of rising nationalism and regionalized interests. how does fiscal complicate monetary? angel: when you about the contributions of fiscal policy, it has been way higher than what you would have expected with rates going up so fast. fiscal policy has become essentially unrelated to the state of the business side. this is related to these and -- this new economic policy where we have all these instruments trying to address objectives that are not necessarily related to the economic outlook. national security, energy independence, all those things. q sonali: anything about the fiscal intervention, you mentioned this thought-provoking idea that the neutral rate could be closer to 4%. much as the fiscal situation exacerbating inflation? angel: i don't know if it's

exacerbating inflation, but it's providing more support for economic activity. it may lead to more gradual than -- and slower inflation. we can argue whether this is good or bad. it is contributing to the boost in productivity because there has been a lot of investment in technology happening the last couple years in the united states and around the world. we need to balance that. sonali: how do you think about that investment with the need for financing for the united states? citadel's own founder ken griffin has been very vocal about the u.s. fiscal debt situation. he has called that irresponsible. how do you think about it? angel: i think the story is very simple. you take the latest cbo forecast and it is projecting receipts about 5% for as long as the eye can see. i guess there is a question that

is what do you want to do about it? are you willing to stay in that situation and run the risk that an accident happens? because obviously the higher the debt, the higher the deficit, the less room for mistakes there is. or do you want to find a better way? sonali: you have already roadmap what investors can expect in this era of more fiscal involvement. you said there will be prolonged macroeconomic and financial volatility. for who? angel: for everybody. we are rewriting the rules of the game as we go along. we used to live in a world where you had globalization and the wto rules. now we are changing that. we are changing the way countries relate to each other. we are changing the way investors relate to each other. we have started sanctions, subsidies, export restrictions. it's a new world. for investors, it's a question of understanding how do i put all these things together in the blender?

how much of the surprise and inflation this morning are due to the economy at the same time? sonali: how do you begin to answer those questions? angel: with a lot of work and effort. sonali: you also alluded to just now the changing rules of trade, owing to deglobalization. there have been a lot of worries about the type of inflationary effects. angel: some of them are addressing conflicting objectives. we are trying to address climate change. it's very important for climate change that the price of carbon is high, but also the price of clean energy is cheap. then you have china that has become the leader in electric vehicles. they are cheaper than other places and they are exporting them. there's a trade-off. do you want to have a cheaper transition or do you want to have it manufacture domestic jobs? that's an example of how these

different objectives can conflict. sonali: we will be looking for the imf spring meetings. how do you look at the confluence of issues heading into it? angel: with the firm needs to address is these two factors. how do we live in a world with high debt to gdp ratios? president macron said he's not planning to reduce below 5% this year. or the case in germany where you have this conflict between a strict debt break rule that is limiting the action the german government can take on climate change and defense. how should fiscal policy be managed in the new world? what is the macro effect of all these micro actions governments are taking? sonali: breathe quickly -- for the u.s., those who believe that the debt ratio is rising, many others say it is not rising that much relative to many other parts of the world -- what do you say?

angel: i tell you one thing. i don't know what the imf is going to publish next week, but if you take with a published last october that has predictions for the debt to gdp ratio, by 2028, yes, there is a scenario in which the u.s. has a debt to gdp ratio that is not different from italy at the end of the decade. sonali: something to chew on. we thank you. this is the perfect time to remind you about the bloomberg invest conference in june in new york. the qr code on the screen will get you to where you have to go. ahead, we will talk about volatility and market moves. we are hitting session lows nearly on the s&p 500. stick with us. this is bloomberg. ♪

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sonali: this is bloomberg markets. we are going to take a quick look at the market. we are looking at a market that is responding for that hotter than expected cpi print just this morning. yields are certainly on the rise. the s&p 500 in 1.2% on the day. we are going to bring in carly garner and abigail doolittle to talk about what is being seen on the market here. what is striking you? >> the interesting thing to me is last thursday, the s&p broke

a line and it has persisted all year. investors or traders were stepping in on dips and we had higher highs and lower lows, but as of thursday, that has shifted and we are seeing lower lows and higher highs. i think due to all the complacency that is built into pricing and the disregard to risk, i think we have a pretty good correction ahead of us in stocks and that will probably stabilize treasuries. >> i love the fact that you were talking about that broken uptrend because it has been broken longer for the nasdaq 100. that stock heavy index back down on its 50 day moving average. you made the contrarian call that we could see some pain for stocks. when you say correction, do you mean down 10% or even more? do you think we could see something bearish if you are saying bonds are going to go

higher in the possibility of a fed not cutting that much? that would point to risk off. carley: i see some really odd things in the markets. i have been pointing out on social media that there is a high correlation between cocoa prices and the stock market. there is no explanation for this other than speculators are euphoric. people have gotten into the habit of buying momentum again without regarding risk. there is no care in the world up there. that's a red flag for me. i think 10% correction would be minimum. i think we could get quite a bit more. i'm not a doom and gloomer, but i think we are unhealthy. we are trading outside of the comfort zone to the upside and we are due for nice repricing, in my opinion. the market has overdone fundamentals and we have to get back into line with fundamentals. abigail: the nasdaq 100 chart you could make the case it could go down to 15,000 pretty quickly. are you seeing any other signs in the world of options that act

as red flags that would confirm this idea that this broken uptrend and the s&p 500 and nasdaq 100 could meet real pain ahead? carley: we have seen a lot of premiums in the call options. it's interesting because when i started in this business, it was almost impossible to buy call options and make money because options are always priced to lose, but it was hard to get to timing on a really big enough with enough momentum to increase value. in the last handful of years, it's been the exact opposite. the market has shifted and call options get quite a bit of juice built into them from time to time. it's been a lot easier to be a call option buyer than seller in the last four years, but that's not the usual scenario. i think we're going back to something a little bit more normal work call options have a tendency to lose value. sonali: how do you feel about more signals in the commodities market as well? carley: obviously, upward

pressure -- specifically oil is causing a little bit of an uptick in inflation. i think this is temporary. i'm not bearish oil. i think it sees $100 a barrel. if you look at other commodities at the opposite end of the spectrum, the grains are cheap, the meat prices are trickling lower. we might see higher energies, but i think the commodities make up for it and inflation calms down. sonali: carley garner and abigail doolittle, we thank you for keeping an eye here. we are awaiting a press conference with president joe biden and the prime minister of japan. stick with us. this is bloomberg. ♪

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sonali: this is "bloomberg markets." sitting around lower could s&p 500 down about 1.2%. the nasdaq 100 also down more than one point 1%. the dow jones industrial average also taking a hit of 1.3% nearly on the day. vic's on the rise is when you're average. the yields are where the story is. stunning. it is now at 494 on the day, but the highest levels we have seen intraday. and a 20 basis point move. the 10 year yield at 451 on the day come about 15 basis points higher. both are standing around eyes of the day. the u.s. dollar rising in

conjunction in gold. movers on the equity side. watching chips stocks which reported better than expected sales growth for the first quarter. nvidia shares rising despite most of the tech sector dragging after the cpi. picking up nvidia, the u.s. and japan have enlisted nvidia and amazon to fund a joint artificial intelligence research program. we will discuss that more with josh. explain the significance of what is going on here. >> this is in the context of the prime minister's visit in washington with a lot of pomp and circumstance and rolling out some of these announcements right now sort of trumpet cooperation between the u.s. and japan. japan is a key ally in this economic grace, how the biden administration views this one. you see these announcements.

we are not seeing any talk of the elephant in the room, purchase of u.s. steel. that has cast a cloud and is hanging in the air as to whether biden or can kill this thing. what will they talk about? will the prime minister raise it with him? we will be watching closely including the press conference to see whatever signs we can get. they're focusing on these announcements on the cooperation side. sonali: hang onto that thought when it comes to the big steel deal. president biden has responded to the hot cpi report this morning and said "prices are still too high for housing and groceries even as prices for key household items like milk and eggs are lower than a year ago." obviously, the feeling of inflation for many inflations is a big problem -- for many americans is a big problem going into the election. >> biden's chief of staff essay

we need to focus more on this, the democrats do and claim biden is talking too much time talking about bridges and not enough talking about food. you see them cherry picking certain product categories like groceries. groceries do matter a lot to the voters but they are a lot higher than they were much of years ago. whether he's going to get a bump from that, i doubt it. this is bad news for biden. not only has he been on the stump talking about inflation leveling up or even coming down on things like eggs, but also talking about the fed may be cutting rates at some point. throwing the question come how much were if the fed will cut rates this year. sonali: a very busy day in do you see what else are you watching in regard to the prime ministers visit? >> we don't expect him to raise this deal but we will watch closely whether president biden

addresses it. a key question is, it is undergoing review. this is that for national security panel normally for things like china, not usually aimed at japan. some of our forces have been saying it is not really clear biden can kill this thing if he wants to. he has not said specifically he wants to kill it, only that he once u.s. steel and american own. we will be watching it closely. biden is not commented publicly other that is one written statement on this sale. crucial swing state, crucial senate race. it would be the first time on camera joe biden would talk at length about this and people will be parsing every thing he says. sonali: can't wait to get the read out later on from you. sticking with u.s. and japan, the $14 billion takeover of u.s. steel by japanese buyer was never going to be easy but no one expected the drama that has

unraveled. the big steel union in the u.s. is trying to block the deal and the labor group has won the backing of the president who sees the rust belt worker is a key voting bloc in the upcoming election. for more, we have a guest was been all over this deal and the biden administration. josh set us up a little bit walked through the complications. >> it is an election year and you have a foreign company wanting to buy one of the most iconic manufacturing names in american history. and one that was not the expected buyer. the union had also given its backing to cleveland clips, another american steelmaking company. i think they were taken off guard in december when it was announced japan -- excuse me,nippon would be the buyer. that set the stage for what has become a bit of a saga commit back and forth with what would normally be a slamdunk deal has been anything but. sonali: howdy think about the

path forward for the deal alone? is this something that has a reasonable chance of making it through given all the pushback? >> i think josh and i have done quite a bit of earning for this story that show there is a path. that is key because i month ago when president made his statement, most investors i was talking to said this thing looks dead. in the course of our reporting talking to various people on the inside, it is not dead. there still a long path and to get there seems quite difficult -- i was talking to dave mccall yesterday on the phone and he is the still workers president and he said there is no path to this deal. we are not going to let this happen. at the same time i said, you're still workers and retirees said they preferred to mystically owned but they what jobs and the mills to stay open. i said to them, that means you want the jobs and mills to stay open regardless of who the buyer ends up being.

and mccall said he agreed. this is where people are trying to figure out what is at stake here. sonali: another big question, doesn't need to be this particular deal? what is interesting about this deal, whether it is a democratic or republican administration, the steelworkers -- the idea of domestic ownership, is there a domestic white knight for the administration? >> there is not an obvious one. cleveland cliffs is the one everyone cap throwing up because they were the most vocal about wanting to buy the company. it is been very clear there are massive antitrust issues. cleveland cliffs said only about 2 billion does wear them to vested shares they would have to make for this deal to go through. the lawyers from u.s. steel after talking and doing their due diligence with cleveland cliffs determined it was about $7 million. even if the current deal falls through, it is not obvious cleveland cliffs can come in and

sweep and pick it up. which is one of the things josh and i wrote in our story but also may be another decision is something on the line where there is a split. you split up the assets between various companies. it is not clear how that split would work. sonali: very complicated. don't forget to read the days big take on the bloomberg terminal and bloomberg.com. we're going to talk about new jersey transit riders can expect higher prices. increase a 15%, 3% each year after two and account for inflation. k talk more about the impact this will have on transit riders? >> this is a big change, to riders. going have to start paying higher fares. they rely on transit to get them

to where they need to go so starting july 1 when they start hitting the trains and buses, they will have to pay the higher fares. there were a lot of advocates at the meeting against it like we have seen across the country, agencies are still trying to bring the ridership back up. transit had to fair increase of they can help keep service running and to avoid in-service cuts and layoffs. sonali: wouldn't this just make people ride less? >> it is a tricky situation because, i was the come higher fares is not going to make you want to take the train or bus but it is still one of the most efficient ways to get in and out of new york city. especially with tolls getting higher. i think riders will still ride the trains, it will just be everyone is dishing out a few

extra dollars. sonali: we thank you so much for being all over this story. if you are commuting in the new york-new jersey area, things are getting a little more costlier this year. coming up, delta shares continue to rise after the ceo says there is no slowdown in demand heading into the summer. stick with us. this is "bloomberg." ♪ hey you, with the small business... ...whoa... you've got all kinds of bright ideas, that your customers need to know about. constant contact makes it easy. with everything from managing your social posts, and events, to email and sms marketing. constant contact delivers all the tools you need

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sonali: this is "bloomberg markets." it is time for the stock of the hour. shares of delta airlines are climbing and now a little slower after climbing earlier in the day.

investors initially reacting positively with the ceo saying there is no let up in demand going into the summer. delta reported better than expected first quarter results. we will discuss this with brooke sutherland in boston. you look at the initial market reaction, the whole market is lower on the day. how can delta shake off any fears here of what is going on in the macro? there's no clue about the direction of the economy necessarily moving forward. how positive is their outlook and how fragile can it be? >> it is a tale of two cities for airlines right now. you have the carriers like delta that are more multifaceted that catered to those international travelers focused on corporate travel, which is showing signs of recovery getting back closer to the pre-pandemic levels. then you have the domestic focus carriers for companies like spirit and jetblue that are struggling with higher costs and needing to cut back on their

plane orders and capacity in order to right size with that domain picture looks like in u.s. markets. when a company like delta is better equipped to weather the storm, but i think there is a question of did airlines perhaps over expand in pursuit of this demand rebound coming out of the pandemic? delta is not a need to that on the labor front. they have also talked about maintenance costs being higher, which is an industrywide problem. sonali: how do you think about the fine line you're talking about that need to investing in the pressure on the bottom line while they try to maintain this outlook? >> you want to invest in planes. new planes. i think that is a good business proposition because the new planes are much more fuel-efficient and fuel is one of the biggest expenses for airlines. they want the planes for those carriers that can afford them,

obviously, something that would prefer to have. the problem is yet bottlenecks in the supply chain in terms of getting those planes to the carriers. it is a bit different for companies like jetblue and spirit that are looking at too much capacity in the domestic market relative to where the demand is. they want the planes long-term but not right now, especially with those expenditures being what they are. sonali: heading into earnings season, what are you looking at in terms of potential surprises? >> i think if you take a step back from airlines i look at the broader industrial sector, you might start to see green shoots. we have been in a bit of a downturn. you have the ism crossing back into the expansion territory after 16 months of contraction. that matters. it has been a bit of overhang for industrial manufacturers as they deal with customers that overbought, had too much of maggiore coming out of the pandemic. we have seen a lot of that cycle through and you might see a little for got now.

i don't think that showing a groundswell in demand for the industrial sector given how long this downturn was. but you can start to see things turn around a little on the manufacturing side. sonali: brooke sutherland, thank you. coming up, how former morgan stanley joining the firm he leaked information to despite an sec band. still awaiting a press conference with president biden and the prime minister of japan. this is "bloomberg." ♪

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sonali: this is "bloomberg markets." time for the wall street beat. former morgan stanley banker who was punished in the block trading plural has -- pro has not joined one of the firms that was recipient of the confidential information he leaked. we have seen this story play out from the beginning when he was really put on dismissal from morgan stanley earlier in the probe. how did he end up at a firm that was a recipient of this information? >> perhaps some friendships are stronger than the sec. it is a bit of surprise in january finally resolve this year's long probe which rattled

industry. everyone on wall street was closely monitoring this probe because this is not something people thought cross the line. it was a bit of a gray area. clearly the doj and sec did not agree. morgan stanley paid a fine. but when he was banned from the industry for one year by the sec and yet here we are three months later where he has joined the firm because of its changed status, changed to a family office, and that allowed for pawan passi to join the firm. that is one court most of the other is this -- that is one quirk the other is, recipient of the trading links. none of the participants have been accused of any wrongdoing with the doj and sec. anyone is talking about this move clearly has some eyebrows going up today. sonali: let's talk more about do

we know why they made this move into a family office in order to hire pawan passi or for another reason? >> it would be hard to speculate. we don't think it was necessarily just to pave the way for pawan passi. there has been some scrutiny for the past couple of years. the probe has been out there for more than three years. the name has been thrown out someone entangled with the probe for a while. that could have affected the kind of clients they were dealing with and perhaps being the family office was a better option. it certainly allowed for pawan passi to join them. sonali:'s were talking about what happened with passi and what did not. he injured the deferred prosecution, pled not guilty to securities fraud to resolve the probe. there was no monetary penalty. what do we know about what the doj knows about him and the executive? >> we have to be clear is what comes to the cass side.

the prosecutors and investigators just focused all their attention on the south side specifically morgan stanley , specifically to employees at morgan stanley. with respect to pawan passi, the doj did not charge a monetary fine but the sec did. he had to forfeit about $7.4 million in compensation. he does have a six month window where he is hoping to go in front of court and say he has been on good behavior so they can toss these charges against him and that is why it is the deferred prosecution agreement. sonali: the story is quite striking. but beyond that, perhaps tell us what it means and perhaps of the aftermath of this probe in and of itself and the bloc trading business, the relationships between the banks on the buy side? >> the vocus may have been on morgan stanley but pretty much every equity syndicate banker

across the street has been re-examining their behavior, has been wondering what is right and what is not. is it truly the gray area? are there defined lines within they need to operate? and that in some ways has affected how people go about their business. memories can be short and three years later things might behave like nothing changed. but for now there is a lot of care and caution. in the gyration of the markets means if you go with the flow over the past couple of years for a period, there was not a lot of trades happening so it wasn't really easy to make a direct line connection between the probe and market activity. as market picks up, it will be interesting to see how it shapes up and exactly what people are talking about when it comes to banker behavior on these deals. sonali: this story certain one of the most read on the bloomberg terminal. how do people respond to the reporting and how has the company responded? >> the company is not responded.

we reached pawan passi and he did not comment. as for the street, there is a lot of shock. even people that been closely following this probe and its outcome, they have been surprised by this move. the fact cass has been publicly id by one of the firms that received the leaks and to see the figure that was central to this probe, three month after the resolution of this probe come is certainly not something people were expecting. it is not everyday business. sonali: thank you ford your time -- thank you for your time. before we let you go, one quick piece on wall street. kkr, laying out a plan to scale its core businesses as it aims to reach at least $1 trillion of assets under management in five years. that is a mark rivals recently have met including blackstone. the firm intends to build on

strategic holdings units to reach that milestone. it currently has more than 550 billion dollars in assets under management. now let's get you check on the markets. we are down on the day after the hot cpi report. s&p 500 still down more than 1%. mastec just under 1%. -- nasdaq just under 1%. 10 year yield, 495. 21 basis move higher. that does it for "bloomberg markets." busy week ahead. stick with us. this is "bloomberg." ♪

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>> from the world of politics to the world of business, this is "balance of power." live from washingt