BlackRock's Rieder Talks Jobs Report, AI and Markets
Speakers
Rick Rieder
— CIO of Global Fixed Income at BlackRock
Summary
Rick Rieder discusses the May jobs report, AI's outsized role in the economy, and his portfolio positioning. He likes Japanese equities and European fixed income while reducing US rate exposure. He views private credit redemptions as idiosyncratic and expects the Fed to remain patient.
- May payrolls were solid with strength in construction and healthcare, but softness in real estate and insurance.
- AI accounts for roughly 28% of US economic growth and 70% of S&P returns.
- Rieder favors Japanese equities as a beneficiary of Bank of Japan policy.
- European fixed income is preferred because it has already discounted rate hikes.
- He has reduced US interest rate exposure due to supply and a strong economy.
- He uses equity volatility to hedge downside tail risk.
- Private credit redemptions are seen as idiosyncratic, not systemic.
- The Fed should be patient on rate cuts as inflation is sticky in rate-insensitive sectors.
Trade Ideas
Japanese equities are attractive.
Japanese equities are attractive because Japan's central bank is raising rates deliberately, which supports the currency and equity price action, and there are beneficiaries from the policy shift. The derivative impact on the currency is being watched, but the equity side offers a clearer opportunity.
European fixed income offers attractive carry.
European fixed income is interesting because it has already priced in rate hikes, unlike the US, so the carry and balance fit well in a portfolio. The ECB is likely to hike further, but the market has already discounted that, making European bonds more compelling on a relative basis.
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This Bloomberg Markets video, published June 05, 2026, features Rick Rieder discussing EWJ, BNDX. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Rick Rieder · Tickers: EWJ, BNDX