Bloomberg Talks
00:10:53 · David Ingles, Emmanuel Roman, Yvonne Man
[00:10:53] S2: I'm sure you've been waiting for this moment for some time, Manny, the value to come back into bond markets here. [00:10:58] S0: You know, the macro and the economy gives you what you can do. You don't control the world and sometimes it's great and sometimes it's harder. [00:11:08] S2: Where do you see the most value right now when it comes to solving curves and the like? [00:11:17] S0: The U.S. looks very attractive. Mortgages looks very attractive. EM, there's a lot to do in EM. We have a very big and successful EM business. Global bonds look attractive. Asset-backed and structure finance on the private side is very attractive. You can generate 12% to 15%. We're building data center in Europe. I mean, there's a lot of things which are attractive. You know, there's... It's feast and famine. Sometimes there's not much to do, and sometimes there's a lot, and now we are in an environment where there's a lot to do. [00:11:49] S1: What do you think next year looks like? Because we've seen a backing up in yields going into the end of this year. If the Fed, in fact, just has one more in its tank, does next year look to be the year of the bond market?
00:11:49 · Yvonne Man, Emmanuel Roman, David Ingles
[00:11:49] S1: What do you think next year looks like? Because we've seen a backing up in yields going into the end of this year. If the Fed, in fact, just has one more in its tank, does next year look to be the year of the bond market? [00:12:00] S0: Well, I will. I think we'll know at the end of next year, but... That's not helpful, though. No, no, no, no. Look, I think it's looking reasonably good. Okay. You know, there's so many uncertainty. I mean, I think if I had come here a year ago, I would not have predicted that there would be a war in Iran. And so I think, once again, I think one has to be careful about making too many prognoses because there's things which are so much out of our control that... They're hard to call. Vice versa, if tomorrow morning we announce a full and substantive peace treaty with Iran where there's free circulation of gas after three months, oil will be 40% lower. And then all of a sudden, bonds look incredibly attractive. [00:12:53] S2: How, then, should we look at inflation for next year? I mean, depending on the oil price, I mean, how.
00:12:53 · David Ingles, Emmanuel Roman, Yvonne Man
[00:12:53] S2: How, then, should we look at inflation for next year? I mean, depending on the oil price, I mean, how. [00:12:59] S0: Does AI drive inflation as well? Probably lower. Okay. The beauty of AI is it is capex-intensive from very strong hands, but long-term deflationary. And deflationary, we were talking before we came on air, what it does to the labor market... We had last night an incredibly exciting presentation on robotics in China. There are a lot of changes with a wide range of outcome that I think will change the labor market over the years to come. And it's very hard to predict what will happen. The rise of the robots. The rise of the robots. But I learned one thing last night is that it takes an enormous amount of time. to train the robot. So the robot is good at doing one thing and doing it very, very well. But you want the robot to interact with the human being and that seems to be more complicated. Okay. Our jobs are intact. We're safe. We're safe here. According to Manny, yeah. [00:14:04] S1: Manny, thank you so much. [00:14:04] S0: Manny Roman. Thank you very much for having me. CEO of PIMCO.