WEBVTT - McCarthy Says House Will Pass Debt-Limit Bill; Bed Bath & Beyond Bankruptcy

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<v Speaker 1>From the Bloomberg Interactive Burgers Studios. This is Bloomberg day

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<v Speaker 1>Break for Monday, April twenty fourth.

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<v Speaker 2>Coming up today, Kevin McCarthy says the House will pass

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<v Speaker 2>is one and a half trillion dollar debt ceiling increase.

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<v Speaker 1>This week, Credit Sweet sees massive outflows during a frantic

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<v Speaker 1>first quarter.

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<v Speaker 2>Microsoft, Amazon, and Meta lead a busy week for tech earnings, and.

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<v Speaker 1>Bed Beth and Beyond is the latest retailer to file

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<v Speaker 1>for bankruptcy.

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<v Speaker 3>The US evacuates American diplomats and family from the deadly

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<v Speaker 3>fighting in Sudan. Plus a call de mandate safety standards

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<v Speaker 3>for lithium ion batteries. I'm Michael barr more ahead, I'm.

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<v Speaker 4>John Stash, Aaron Sports. Then nixt One lead their series

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<v Speaker 4>three to one, a loss for the Islanders, who trailed

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<v Speaker 4>three to one losses for the Mets and yank.

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<v Speaker 5>That's all straight ahead on Bloomberg day Break, the business

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<v Speaker 5>news you need to sturn your day in just one

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<v Speaker 5>fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

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<v Speaker 5>Business app, and everywhere you get your podcasts.

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<v Speaker 2>Good morning, I'm Nathan.

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<v Speaker 1>Hager and I'm Karen Moscow. Here are the stories. We're

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<v Speaker 1>following today.

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<v Speaker 2>We begin with a debate that could come to a

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<v Speaker 2>head for markets in the coming weeks. The risk of

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<v Speaker 2>US default on its debt is front end center. House

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<v Speaker 2>Speaker Kevin McCarthy says his plan to raise the debt

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<v Speaker 2>ceiling by one and a half trillion dollars will pass

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<v Speaker 2>this week. We're the only ones in Washington that are

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<v Speaker 2>actually putting a responsible plan out that will raise the

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<v Speaker 2>debt limit. Think about for more than eighty days. It's

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<v Speaker 2>been since I sat.

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<v Speaker 5>Down with the President on February first to negotiate to

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<v Speaker 5>work through this, and he's ignored it.

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<v Speaker 2>Speaker McCarthy discussed his plan in an interview with Fox News.

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<v Speaker 2>He still may need to convince members of his own party,

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<v Speaker 2>a person familiar with the county tells Bloomberg McCarthy still

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<v Speaker 2>has not lined up enough votes to pass his bill.

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<v Speaker 1>Well, sticking with Paula takes Nathan. It looks like the

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<v Speaker 1>latest presidential polling shows both parties suffering from candidate fatigue,

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<v Speaker 1>and Bloomberg's Ed Baxter has that story.

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<v Speaker 6>This is a new NBC News poll that shows Americans

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<v Speaker 6>souring on a Biden Trump rematch, and of course, at

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<v Speaker 6>this point the most likely scenario. It is. At this stage,

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<v Speaker 6>Trump has emerged as a strong front runner on the

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<v Speaker 6>GOP side. Biden is looking to formally announce as early

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<v Speaker 6>as this week, but the polling shows most of those surveys,

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<v Speaker 6>seventy percent said Biden should not seek reelection this while

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<v Speaker 6>sixty percent said Trump should bow out. Biden's age was

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<v Speaker 6>a top issue, while Trump's indictment didn't seem to mean much.

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<v Speaker 6>In San Francisco, I'm at Baxter Bloomberg Daybreak, Thank you, Ed.

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<v Speaker 2>Let's turn to markets now, where it's a busy week

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<v Speaker 2>for corporate earnings. More than a third of the companies

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<v Speaker 2>in the S and P five hundred report results, and

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<v Speaker 2>we get a preview from Bloomberg's Charlie Pellace.

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<v Speaker 7>Technology will be in focus when we hear from Microsoft,

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<v Speaker 7>Meta platforms and alphabet. Lisa Shallett is chief investment Officer

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<v Speaker 7>for wealth Management at Morgan Stanley.

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<v Speaker 8>So far, earnings have been mixed at best. You know,

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<v Speaker 8>certainly we've had a sector mix issue here that you know,

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<v Speaker 8>has prevented a material meltdown, but we've had some big

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<v Speaker 8>names missing and missing on fundamental things like demand, like pricing,

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<v Speaker 8>like margins.

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<v Speaker 7>This week, we hear from a wide range of companies

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<v Speaker 7>including General Motors, Caterpillar, x On Mobile, ge, MasterCard, Visa, PepsiCo,

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<v Speaker 7>Ubs and Ups in New York. Charlie Pellett, Bloomberg Daybreak.

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<v Speaker 1>All right, Charlie, thanks. We We also get earnings from

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<v Speaker 1>a closely watched regional bank today, First Republic reports after

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<v Speaker 1>the close of US trading. Herman Schen is senior US

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<v Speaker 1>regional bank analyst for Bloomberg Intelligence.

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<v Speaker 9>First Republic is important because they are sort of viewed

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<v Speaker 9>as the ones in the crosshairs the most. If that

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<v Speaker 9>one does face an issue from the FDIC coming in,

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<v Speaker 9>the domino effect could happen again and the spotlight could

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<v Speaker 9>shift to other banks that maybe are performing a bit

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<v Speaker 9>weaker versus the other. So it's incumbent for First Republic

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<v Speaker 9>to really stabilize themselves for the industry's stake. And we'd

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<v Speaker 9>expect to see some commentary on some stabilization in their

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<v Speaker 9>deposit outflows later in the quarter, which should be.

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<v Speaker 1>And Bloomberg Intelligence analyst Hermann Chan anticipates more than eighty

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<v Speaker 1>billion dollars in deposit attrition at First Republic. That's before

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<v Speaker 1>larger banks swooped in to backstop the lender with thirty

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<v Speaker 1>billion dollars, and.

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<v Speaker 2>As we await those earnings, Karen one Big Bank CEO,

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<v Speaker 2>says the world is not facing a banking crisis. Morgan

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<v Speaker 2>Stanley's James Gorman tells Nike the banking system will remain

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<v Speaker 2>stable and healthy. Gorman says some individual firms mismanaged their

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<v Speaker 2>duration and interest rate risk, but most banks have not.

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<v Speaker 1>Well in Europe, Nathan, We're also watching banks this morning.

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<v Speaker 1>Earnings around from Credit Suite, showing a frantic first quarter

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<v Speaker 1>marked by heavy outflows, and we get the latest live

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<v Speaker 1>with Bloomberg's You and Pots in London. You and good morning,

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<v Speaker 1>Good morning.

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<v Speaker 10>Charon Nathan. As if UBS needed a reminder of the

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<v Speaker 10>challenge on its hands after the emergency takeover of rival

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<v Speaker 10>Credit Sweee, the failed lender saw sixty nine billion dollars

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<v Speaker 10>of outflows in the first quarter and its final earning support.

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<v Speaker 10>We also found out that key units at Credit Suite

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<v Speaker 10>continue to lose money and shed clients, and it barred

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<v Speaker 10>far more from a central bank liquidity backstop than previously known.

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<v Speaker 10>Plenty more to deal with for new owner UBS in London.

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<v Speaker 10>Immune Pot's new midday break.

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<v Speaker 2>All right you and thank you well. Back here in

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<v Speaker 2>the US, one of America's most well known retailers has

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<v Speaker 2>filed for bankruptcy. Now, let's get the details live with

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<v Speaker 2>Bloomberg's John Tucker John.

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<v Speaker 11>Nathan bed Bath and Beyond shutting down. Act fast. If

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<v Speaker 11>you want some towels or bedsheets. They're going to be

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<v Speaker 11>liquidating three hundred and sixty bed Bath and Beyond stores

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<v Speaker 11>at one hundred and twenty by by Baby shops immediately.

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<v Speaker 11>This longtime customer expressed what many are feeling, sick debt scrulously,

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<v Speaker 11>they stop accepting coupons and membership discounts. Wednesday, sales at

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<v Speaker 11>any remaining brick and mortar stores will be completed. The

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<v Speaker 11>locations will be empty by June thirtieth. Analysts say port

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<v Speaker 11>management and a high debtloads suffocated the company founded in

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<v Speaker 11>nineteen seventy one. The New Jersey based company currently employs

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<v Speaker 11>about fourteen thousand people. There is a tiny sliver of

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<v Speaker 11>Holt bed Bath and Beyond. It may pivot away from

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<v Speaker 11>store closings in the unlikely event it finds some last

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<v Speaker 11>minute suitor. Live in New York. I'm John Tucker, Bloomberg

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<v Speaker 11>day break.

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<v Speaker 1>All right, John, Thanks, and confusion surrounding Twitter is deepening.

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<v Speaker 1>This morning, a number of high profile accounts saw their

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<v Speaker 1>prized blue check marks reinstated, even though some of their

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<v Speaker 1>owners have been dead for years. Celebrities and public figures

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<v Speaker 1>took to the platform to deny having paid the eight

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<v Speaker 1>dollars a month.

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<v Speaker 2>It's forty five degrees in New York, will have a

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<v Speaker 2>mix of sun and clouds today and ahem, year sixty

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<v Speaker 2>mostly cloudy tonight, getting back down to around forty five. Now,

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<v Speaker 2>let's look at some of the other stories making news

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<v Speaker 2>in New York and around the world. For that, we're

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<v Speaker 2>joined by Bloomberg's Michael Barr.

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<v Speaker 3>Good morning, Michael, Good morning, Nathan. President Biden personally ordered

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<v Speaker 3>the evacuation of the US embassy in Sudan's capital, Kartomb

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<v Speaker 3>as fighting continues between two rival military groups. The US

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<v Speaker 3>government made the decision that it was no longer safe

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<v Speaker 3>to have the embassy personnel there anymore. Senate Intelligence Committee

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<v Speaker 3>Chair Mark Warner says the US is working on rescuing

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<v Speaker 3>the many AID workers still in Sudan sheltering in place.

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<v Speaker 2>We are working with.

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<v Speaker 11>A lot of international partners in this case.

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<v Speaker 9>Partners from them at least even believe working with China

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<v Speaker 9>and Europeans to say those aid workers, we need.

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<v Speaker 12>To find a safe way to get them out.

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<v Speaker 3>Senator Warner spoke on ABC's This Week, which can be

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<v Speaker 3>heard Sundays on Bloomberg. Jerry's selection is set to begin today.

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<v Speaker 3>In the federal death penalty trial of a truck driver

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<v Speaker 3>accused of shooting to death eleven Jewish worshipers out of

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<v Speaker 3>Pittsburgh synagogue, Robert Bauers faces sixty three accounts in the

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<v Speaker 3>twenty eighteen attack at the Tree of Life Synagogue. There

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<v Speaker 3>is a new push to crack down on poorly made

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<v Speaker 3>lithium ion batteries after a splank in fires, some of

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<v Speaker 3>them were deadly, including an eight year old girl who

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<v Speaker 3>died after a fire in their New York home. New

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<v Speaker 3>York senators are now pushing for federal safety guidelines. Senator

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<v Speaker 3>Chuck Schumer in New York City announced a new bill

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<v Speaker 3>to safety standards for lithium ion batteries.

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<v Speaker 12>When you hear from the fire commissioner that our firefighters

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<v Speaker 12>are having to learn in real time about these dangers

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<v Speaker 12>because they can explode and combust, particularly in fires, you

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<v Speaker 12>know that we need to act quickly.

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<v Speaker 3>The Senate Majority leader was joined by a fellow Senator,

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<v Speaker 3>Kirsten Gillibrand, saying many of the batteries are produced in

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<v Speaker 3>China and are unsafe. A South New Jersey Little League

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<v Speaker 3>is taking aim at spectators who fight with volunteer umpires

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<v Speaker 3>over calls they don't like.

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<v Speaker 6>Now.

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<v Speaker 3>Deptford Township Little League officials say, if you fight with

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<v Speaker 3>the umps, you can find yourself calling three games before

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<v Speaker 3>you are allowed back in the bleachers. Township Little League

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<v Speaker 3>president Don Buzzufi.

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<v Speaker 4>They're not baseball players, they're children, so always keep that

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<v Speaker 4>in the back of your mind and let them play.

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<v Speaker 3>League President Buzzefi says it's gotten so bad two volunteer

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<v Speaker 3>umpires have quit in the past week. Global News twenty

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<v Speaker 3>four hours a day, powered by more than twenty seven

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<v Speaker 3>hundred journalists and analysts and over a hundred twenty countries.

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<v Speaker 3>And Michael Bard, this is Bloomberg.

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<v Speaker 7>Nathan, Thank you, Michael.

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<v Speaker 2>Time now for our Bloomberg Sports Update. Good morning, John Stanshaller.

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<v Speaker 4>Good morning, Nathan Knicks. Fans haven't had enjoyed a weekend

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<v Speaker 4>like this past one and a long time wins at

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<v Speaker 4>the Garden Friday night, then again yesterday afternoon, a little

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<v Speaker 4>closer than Game three was Nick blew up fifteen point leading,

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<v Speaker 4>fell behind, but they beat Cleveland one o two to

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<v Speaker 4>ninety three and half for the first time in a decade.

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<v Speaker 4>They are just one win from advancing to the second

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<v Speaker 4>round of the playoffs. Jalen Bruns and twenty nine points,

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<v Speaker 4>r J Barrett with twenty six the Nicks one without

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<v Speaker 4>much from Julius Random only seven points, two rebounds, and

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<v Speaker 4>he didn't play at all in the fourth quarter. Coach

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<v Speaker 4>Tom Thimbodeau Saint Randall is still suffering from the late

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<v Speaker 4>season ankle injury. The Cavs star Donovan Mitchell had only

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<v Speaker 4>eleven points, shot five of eighteen, had six turnovers. Game

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<v Speaker 4>five is Wednesday in Cleveland. Boston won in Atlanta to

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<v Speaker 4>go up three to one. Minnesota be Denver still trails

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<v Speaker 4>three to one, and a one point win for Golden

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<v Speaker 4>State over Sacramento. That series is tied to two. The

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<v Speaker 4>Warriors continuing what happened all season with them great at

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<v Speaker 4>home but struggles on the road at the Ubs Arena.

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<v Speaker 4>Carolina up beat the Islanders five to two and the

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<v Speaker 4>Hurricanes go up three games to one, all four road

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<v Speaker 4>teams one in the NHL, Boston at Florida for a

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<v Speaker 4>three to one league, Dallas at Minnesota, Edmondson LA. Both

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<v Speaker 4>those series in the Western now tied to two. That

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<v Speaker 4>Oilers Kings series has had three games go to overtime.

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<v Speaker 4>The Devils, off the ot win in Game three, will

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<v Speaker 4>now look to tie up the series with the Rangers. Tonight,

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<v Speaker 4>It's Game four at the Garden. No wins yet by

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<v Speaker 4>the home team. Mets at a lead on the Giants,

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<v Speaker 4>who then rallied scored eight ton One five to four.

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<v Speaker 4>Mets now come home Toronto beat the Yankees five to one.

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<v Speaker 4>They won the series, outscoring the Yanks thirteen to five.

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<v Speaker 4>It's the first series the Yanks have lost this season.

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<v Speaker 4>John Stashedward Bloomberg.

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<v Speaker 5>Sports Live from coast to coast, from New York to

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<v Speaker 5>San Francisco, Boston to Washington, d C. Nationwide on Sirius XM,

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<v Speaker 5>The Bloomberg Business Appen Bloomberg dot Com. This is Bloomberg Daybreak.

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<v Speaker 6>Good morning, I'm Nathan Hager.

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<v Speaker 2>We're watching futures slip this morning with traders getting ready

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<v Speaker 2>for a flood of corporate earnings this week and some

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<v Speaker 2>key economic data at the end of the week that

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<v Speaker 2>could put the Fed's policy path into focus. Let's get

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<v Speaker 2>you set for the trading week ahead. We're joined by

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<v Speaker 2>Dennis Gartman, the chairman of the University of Akron and

0:11:22.440 --> 0:11:26.560
<v Speaker 2>Dowment Investment Committee and the former publisher of the Gartman Letter. Dennis,

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<v Speaker 2>a lot for investors to focus on this week, even

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<v Speaker 2>with the FED in its blackout period now, But I'm

0:11:32.280 --> 0:11:35.200
<v Speaker 2>curious to get your thoughts on where things stand when

0:11:35.280 --> 0:11:37.560
<v Speaker 2>it comes to the debt ceiling debate, because we did

0:11:37.800 --> 0:11:41.120
<v Speaker 2>just hear from House Speaker McCarthy yesterday on one of

0:11:41.120 --> 0:11:44.000
<v Speaker 2>the Sunday shows saying that he does think his bill

0:11:44.040 --> 0:11:46.800
<v Speaker 2>will pass. Some of the reporting we're hearing, though, is

0:11:46.840 --> 0:11:48.920
<v Speaker 2>that he might not have the votes from his own

0:11:49.080 --> 0:11:52.520
<v Speaker 2>party lined up. How big a risk would you say

0:11:53.200 --> 0:11:55.679
<v Speaker 2>the threat of default should be for investors?

0:11:56.600 --> 0:11:58.920
<v Speaker 13>The risk of default should be relatively minimal. To be

0:11:59.000 --> 0:12:02.320
<v Speaker 13>quite honest, I've been in this business for almost fifty years.

0:12:02.800 --> 0:12:06.760
<v Speaker 13>I've seen this process when its way to finalization. I

0:12:06.800 --> 0:12:08.719
<v Speaker 13>don't know, five, six, seven times in the course of

0:12:08.720 --> 0:12:11.520
<v Speaker 13>the past fifty years, we'll get to eleven fifty nine,

0:12:11.600 --> 0:12:13.840
<v Speaker 13>fifty nine on the clock and they'll come up with

0:12:13.880 --> 0:12:18.000
<v Speaker 13>an agreement of some sort. Yes it's difficult, Yes it's disconcerting.

0:12:18.080 --> 0:12:21.120
<v Speaker 13>Yes it's dismaying. Yes we look like a third world nation.

0:12:21.200 --> 0:12:24.559
<v Speaker 13>But when push comes to final show they'll reach some

0:12:24.600 --> 0:12:27.080
<v Speaker 13>sort of an agreement. It's a little discouraging to find

0:12:27.080 --> 0:12:29.480
<v Speaker 13>out that even the Republicans are unable to pass piece

0:12:29.520 --> 0:12:32.160
<v Speaker 13>of legislation to get it through the House. Whatever they

0:12:32.160 --> 0:12:34.559
<v Speaker 13>come up with to begin with will be denied by

0:12:34.559 --> 0:12:37.640
<v Speaker 13>the Senate, but eventually there will be a resolution. It's

0:12:37.679 --> 0:12:40.880
<v Speaker 13>always come that way. Let us hope that I'm not

0:12:41.000 --> 0:12:43.400
<v Speaker 13>overly optimistic. Let us hope that I'm absolutely right, and

0:12:43.440 --> 0:12:45.480
<v Speaker 13>I think that I shall be. This is, as I said,

0:12:45.520 --> 0:12:47.440
<v Speaker 13>I've lived through this too many times in the past

0:12:47.800 --> 0:12:50.480
<v Speaker 13>to think that we are stupid beyond belief to allow

0:12:50.480 --> 0:12:53.480
<v Speaker 13>a default of the United States government obligations that just

0:12:53.520 --> 0:12:56.160
<v Speaker 13>won't happen, or let's put it this way, that just

0:12:56.280 --> 0:13:00.079
<v Speaker 13>cannot happen. If it were to happen, it would be

0:13:00.679 --> 0:13:03.640
<v Speaker 13>a war effort of consequence. And let us hope that

0:13:03.679 --> 0:13:04.959
<v Speaker 13>I'm optimistic and correct.

0:13:05.240 --> 0:13:07.920
<v Speaker 2>Could we see volatility for investments on the way to

0:13:07.960 --> 0:13:08.640
<v Speaker 2>that outcome?

0:13:09.080 --> 0:13:11.559
<v Speaker 13>Not a question. We'll see great volatility, and I think

0:13:11.559 --> 0:13:14.599
<v Speaker 13>that the big risk is to the downside in the

0:13:14.600 --> 0:13:16.880
<v Speaker 13>stock market at this point. I think that's where the

0:13:16.920 --> 0:13:20.559
<v Speaker 13>risks lie, not so much in the government securities themselves,

0:13:20.840 --> 0:13:23.840
<v Speaker 13>but in the fact that the public has been involved,

0:13:23.880 --> 0:13:26.920
<v Speaker 13>the fact that we've had a huge rally in stocks

0:13:27.040 --> 0:13:30.440
<v Speaker 13>since the start of the year predicated basically upon five

0:13:30.480 --> 0:13:36.160
<v Speaker 13>share five companies Meta, Microsoft, Alphabet, Amazon, and Navidia. I

0:13:36.160 --> 0:13:38.959
<v Speaker 13>think between between the five of them, that's been almost

0:13:38.960 --> 0:13:40.360
<v Speaker 13>two thirds of the gain of the S and P

0:13:40.480 --> 0:13:43.760
<v Speaker 13>five hundred has been predicated upon the advantage of those stocks.

0:13:44.040 --> 0:13:45.200
<v Speaker 13>That's where the risks lie.

0:13:45.480 --> 0:13:48.120
<v Speaker 2>And we are going to hear from those companies reporting

0:13:48.160 --> 0:13:51.559
<v Speaker 2>earnings many of those companies this week. In fact, what's

0:13:51.600 --> 0:13:53.840
<v Speaker 2>your expectation what we're going to see from the earnings

0:13:53.840 --> 0:13:57.360
<v Speaker 2>from those mega megacap tech companies. Can they continue to

0:13:57.400 --> 0:13:59.240
<v Speaker 2>keep the kind of momentum that they've shown in the

0:13:59.720 --> 0:14:00.560
<v Speaker 2>start of this year.

0:14:00.960 --> 0:14:03.079
<v Speaker 13>Investors better hope that they can continue to keep that

0:14:03.880 --> 0:14:06.280
<v Speaker 13>type of momentum. They've laid off a lot of people,

0:14:06.360 --> 0:14:08.440
<v Speaker 13>or said that they shall be laying off a number

0:14:08.440 --> 0:14:12.800
<v Speaker 13>of people. The earnings and estimates are beyond my can

0:14:12.880 --> 0:14:15.280
<v Speaker 13>to be quite honest, I'm more fascile with the what's

0:14:15.320 --> 0:14:17.600
<v Speaker 13>going on with government security, is more facile with what's

0:14:17.600 --> 0:14:20.240
<v Speaker 13>going on in for in exchange, more fascile with what's

0:14:20.240 --> 0:14:24.560
<v Speaker 13>going on in commodities. I leave the estimates of earnings

0:14:24.560 --> 0:14:27.680
<v Speaker 13>of corporations to other people wiser than I hate to

0:14:27.680 --> 0:14:30.120
<v Speaker 13>say that, but it's just the I've learned after the

0:14:30.160 --> 0:14:32.800
<v Speaker 13>course of five decades of this business, Trying to make

0:14:33.320 --> 0:14:35.880
<v Speaker 13>an estimate of corporate earnings is beyond my can.

0:14:36.200 --> 0:14:38.200
<v Speaker 2>Well, you can make an estimate as far as what

0:14:38.240 --> 0:14:42.640
<v Speaker 2>we're expecting from this Federal Reserve and the possibility of

0:14:42.720 --> 0:14:45.520
<v Speaker 2>more rate hikes to come, and the potential that that

0:14:45.600 --> 0:14:49.640
<v Speaker 2>could have an impact on credit conditions going forward. What

0:14:49.680 --> 0:14:52.200
<v Speaker 2>are you seeing when it comes to the risk of

0:14:52.520 --> 0:14:54.880
<v Speaker 2>further credit tightening after what we saw in the regional

0:14:54.880 --> 0:14:56.160
<v Speaker 2>banks in the last couple of months.

0:14:56.480 --> 0:15:01.160
<v Speaker 13>I think that's a very fair and estimation that shall happen.

0:15:01.440 --> 0:15:04.240
<v Speaker 13>I don't think there's any question but that regional banks

0:15:04.240 --> 0:15:07.080
<v Speaker 13>and smaller banks are tightening up their loan applications, their

0:15:07.120 --> 0:15:10.400
<v Speaker 13>loan requirements. There's no questions that that's happening. I think,

0:15:10.440 --> 0:15:12.840
<v Speaker 13>as far as the FED is concerned, another twenty five

0:15:12.880 --> 0:15:16.240
<v Speaker 13>basis points is typed into the market, no question. The

0:15:16.320 --> 0:15:19.320
<v Speaker 13>question shall be what happens after the May meeting, where

0:15:19.360 --> 0:15:21.680
<v Speaker 13>we'll get twenty five basis points that may be actually

0:15:21.760 --> 0:15:25.560
<v Speaker 13>will may be the terminal rate. But when will the

0:15:25.560 --> 0:15:28.520
<v Speaker 13>Fed begin to ease monetary policy? When shall they begin

0:15:28.600 --> 0:15:31.200
<v Speaker 13>to allow the overnight FED funds right to decline. That's

0:15:31.200 --> 0:15:33.480
<v Speaker 13>not going to happen until twenty twenty four at the earliest.

0:15:33.760 --> 0:15:35.800
<v Speaker 13>It'll be quite some period of time. The Fed shall

0:15:35.800 --> 0:15:38.920
<v Speaker 13>sit tight do nothing after raising twenty five more basis

0:15:38.920 --> 0:15:39.920
<v Speaker 13>points at the main meeting.

0:15:40.520 --> 0:15:42.560
<v Speaker 2>In our last thirty seconds here, Dennis, do you think

0:15:42.640 --> 0:15:45.160
<v Speaker 2>that holds up? That thesis holds up. If we do

0:15:45.280 --> 0:15:48.120
<v Speaker 2>see a further credit tightening, that could have an impact

0:15:48.560 --> 0:15:51.720
<v Speaker 2>on what the Fed could do later on this year

0:15:51.720 --> 0:15:52.120
<v Speaker 2>into NAC.

0:15:52.960 --> 0:15:55.840
<v Speaker 13>I think the actual facts of credit tightening by the

0:15:55.920 --> 0:15:58.440
<v Speaker 13>regional and smaller banks is not going to become public

0:15:58.560 --> 0:16:01.880
<v Speaker 13>knowledge until five a month to six weeks out. So

0:16:01.920 --> 0:16:03.640
<v Speaker 13>the SAED has to deal with what they have on

0:16:03.760 --> 0:16:06.280
<v Speaker 13>hand at this point, and that's the inflation still is

0:16:06.320 --> 0:16:11.000
<v Speaker 13>a problematic circumstance. It'll be there will be a reason

0:16:11.040 --> 0:16:14.480
<v Speaker 13>for the Fed too to hold right steady through the summer,

0:16:14.480 --> 0:16:17.240
<v Speaker 13>into the autumn and into the winter, predicated upon a

0:16:17.320 --> 0:16:20.320
<v Speaker 13>slowing of credit availability. But that's going to be down

0:16:20.360 --> 0:16:22.440
<v Speaker 13>the road someplace. We don't have to worry about that

0:16:22.560 --> 0:16:24.720
<v Speaker 13>right now. That FED does not have that, we'll not

0:16:24.800 --> 0:16:28.080
<v Speaker 13>have the facts of that circumstance for a question rate

0:16:28.120 --> 0:16:29.120
<v Speaker 13>in time, in into the future.

0:16:30.480 --> 0:16:33.560
<v Speaker 2>This is Bloomberg Daybreak Today, your morning brief on the

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