WEBVTT - Bloomberg Daybreak: January 30, 2023

0:00:02.080 --> 0:00:05.199
<v Speaker 1>By from the Bloomberg Interacted Brooker Studios. This is Bloomberg

0:00:05.280 --> 0:00:08.840
<v Speaker 1>day Break for Monday, January. Coming up this hour, US

0:00:08.920 --> 0:00:11.480
<v Speaker 1>futures drop ahead of a big week for earnings and

0:00:11.600 --> 0:00:14.280
<v Speaker 1>interest rate decisions. Amazon and Apple lead more than a

0:00:14.360 --> 0:00:18.560
<v Speaker 1>hundred companies reporting results, The fed, ECB and BOE all

0:00:18.600 --> 0:00:21.720
<v Speaker 1>set to make policy decisions, and President Biden prepares for

0:00:21.800 --> 0:00:25.360
<v Speaker 1>Talkshpit House speaker Kevin McCarthy on the dead ceiling. Protests

0:00:25.360 --> 0:00:27.640
<v Speaker 1>were held in New York City and across the nation

0:00:27.680 --> 0:00:30.560
<v Speaker 1>over the Memphis police beating at Tyree Nichols. Plus how

0:00:30.600 --> 0:00:34.000
<v Speaker 1>young is too young for social media? Michael Bomber More ahead,

0:00:34.040 --> 0:00:36.800
<v Speaker 1>I'm John Stash. In sports, the Eagles blew out the Forts,

0:00:36.880 --> 0:00:40.120
<v Speaker 1>the chief said. The Bangrolls Philadelphia and Kansas City will

0:00:40.159 --> 0:00:43.600
<v Speaker 1>play in Super Bowl fifty seven. That's all straight ahead

0:00:43.720 --> 0:00:47.440
<v Speaker 1>on Bloomberg day Break on Bloomberg eleven, Treo, New York,

0:00:47.600 --> 0:00:52.320
<v Speaker 1>Bloomberg one, Washington, d C, Bloomberg one O six one, Boston,

0:00:52.479 --> 0:00:57.000
<v Speaker 1>Bloomberg nine sixty, San Francisco, Sirius x M one nineteen

0:00:57.360 --> 0:01:00.240
<v Speaker 1>and around the world on Bloomberg Radio, dot com, um

0:01:00.240 --> 0:01:08.639
<v Speaker 1>and via The Bloomberg Business. Good morning, I'm Nathan Hagar

0:01:08.880 --> 0:01:12.120
<v Speaker 1>and I'm kerin Moscow. Here are the stories we're following today.

0:01:12.560 --> 0:01:15.240
<v Speaker 1>All futures are lower this morning. We do enter the

0:01:15.280 --> 0:01:17.960
<v Speaker 1>day in bullish fashion. The S and P five hundred

0:01:18.080 --> 0:01:20.600
<v Speaker 1>is up six percent so far this month, while the

0:01:20.640 --> 0:01:24.320
<v Speaker 1>tech heavy Nasdaq is higher by eleven percent, but one

0:01:24.360 --> 0:01:28.400
<v Speaker 1>noted Wall Street analysts says sell this rally. Let's get

0:01:28.400 --> 0:01:31.240
<v Speaker 1>the latest Live with Bloomberg. Steve Rappaport. Good morning, Steve,

0:01:31.240 --> 0:01:33.880
<v Speaker 1>Good morning, Nathan, and Karen. A team of strategists led

0:01:33.920 --> 0:01:37.720
<v Speaker 1>by Morgan Stanley's Mike Wilson urges investors to cash out now.

0:01:38.040 --> 0:01:41.039
<v Speaker 1>Wilson writing the recent price action is more a reflection

0:01:41.080 --> 0:01:44.440
<v Speaker 1>of the seasonal January effect and shortcovering after a tough

0:01:44.560 --> 0:01:47.240
<v Speaker 1>end to December and a brutal year. Despite signs of

0:01:47.280 --> 0:01:50.360
<v Speaker 1>an economic slowdown, investors are pouring money into companies that

0:01:50.400 --> 0:01:53.880
<v Speaker 1>exceeded expectations. Analysts say that dynamic is likely tied to

0:01:53.960 --> 0:01:57.440
<v Speaker 1>companies restructuring and cost cutting plan efforts. Live in New York.

0:01:57.440 --> 0:02:00.640
<v Speaker 1>I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you well.

0:02:00.640 --> 0:02:04.120
<v Speaker 1>It's also been a good January for crypto investors. Bitcoin

0:02:04.240 --> 0:02:07.840
<v Speaker 1>has set for its best January since best that monetary

0:02:07.920 --> 0:02:11.080
<v Speaker 1>tightening in the crypto sector crisis are both ebbing. The

0:02:11.160 --> 0:02:13.760
<v Speaker 1>largest token is up over forty percent since the start

0:02:13.760 --> 0:02:16.800
<v Speaker 1>of the year. Smaller coins like Slana have doubled in

0:02:16.880 --> 0:02:19.680
<v Speaker 1>value as part of a two d eighty billion dollar climb,

0:02:19.720 --> 0:02:23.240
<v Speaker 1>and digital assets this month bad figure according to coin

0:02:23.320 --> 0:02:25.280
<v Speaker 1>get Go. Well. This week is another big one for

0:02:25.360 --> 0:02:28.280
<v Speaker 1>earnings Karen. More than a hundred companies in the SNP

0:02:28.400 --> 0:02:31.880
<v Speaker 1>five reporting, and we get a preview from Bloomberg's Charlie Pellett.

0:02:32.520 --> 0:02:36.959
<v Speaker 1>Microsoft and Intel rattled investors last week. Lisa Shalott is

0:02:37.040 --> 0:02:40.720
<v Speaker 1>chief investment Officer for Wealth Management at Morgan Stanley. She

0:02:40.880 --> 0:02:43.720
<v Speaker 1>says it's a bad omen for the US economy. There

0:02:43.800 --> 0:02:48.560
<v Speaker 1>is definitive risk to the earnings profile as both pricing

0:02:48.600 --> 0:02:53.200
<v Speaker 1>power and volumes decline UH coming off what has been

0:02:53.240 --> 0:02:56.360
<v Speaker 1>a historic stimulus over the last two and a half

0:02:56.480 --> 0:02:59.760
<v Speaker 1>years and a pull forward in demand. This week, we

0:02:59.800 --> 0:03:03.799
<v Speaker 1>will here from tech giants including Apple, Alphabet, Metal Platforms,

0:03:03.880 --> 0:03:08.560
<v Speaker 1>qual Calm, and Amazon. Also reporting x on Mobile for GM,

0:03:08.760 --> 0:03:14.519
<v Speaker 1>McDonald's and Starbucks in New York. Charlie Pellett Bloomberg Daybreak, Right, Charlie,

0:03:14.520 --> 0:03:16.480
<v Speaker 1>thank you. Well, it's also a big week for central

0:03:16.480 --> 0:03:19.360
<v Speaker 1>banks and economic data. We get both the FED decision

0:03:19.400 --> 0:03:22.320
<v Speaker 1>and January's jobs report, and here with Moore is Bloomberg

0:03:22.320 --> 0:03:26.320
<v Speaker 1>Economic Score, responded Michael McKee, Wednesday's FED meeting will dominate

0:03:26.320 --> 0:03:29.880
<v Speaker 1>the headlines early that although a quarter percentage point increase

0:03:29.919 --> 0:03:33.000
<v Speaker 1>in the nation's benchmark borrowing rate is pretty much baked in,

0:03:33.440 --> 0:03:36.800
<v Speaker 1>it would take a surprise to really move markets. Friday

0:03:36.960 --> 0:03:39.440
<v Speaker 1>is Job's Day, however, and that data will do a

0:03:39.520 --> 0:03:42.880
<v Speaker 1>lot to inform how investors think about the feds next move.

0:03:43.640 --> 0:03:45.840
<v Speaker 1>So far, the Central Bank has raised rates by four

0:03:45.880 --> 0:03:49.360
<v Speaker 1>and a half percent this year, but unemployment is unchanged,

0:03:49.760 --> 0:03:53.360
<v Speaker 1>does hiring slow and job loss accelerate, and most important

0:03:53.400 --> 0:03:56.960
<v Speaker 1>to average hourly wage gains slow. Those will be key

0:03:57.040 --> 0:04:00.960
<v Speaker 1>data points for Fed officials considering any additional policy change.

0:04:01.160 --> 0:04:03.880
<v Speaker 1>Like on the key Bloomberg Daybreak, make thanks. We also

0:04:03.920 --> 0:04:06.360
<v Speaker 1>get key rate decisions in Europe this week, and for

0:04:06.400 --> 0:04:08.280
<v Speaker 1>the latest down that we go live to London and

0:04:08.320 --> 0:04:11.040
<v Speaker 1>bloombergs you and parts, good morning you and good morning

0:04:11.080 --> 0:04:13.200
<v Speaker 1>Nathan and Karen. The European at Central Bank will be

0:04:13.240 --> 0:04:16.520
<v Speaker 1>in focus this Thursday. Investors. We're watching for the messaging

0:04:16.800 --> 0:04:19.640
<v Speaker 1>as to whether this week is likely fifty basis point

0:04:19.720 --> 0:04:22.840
<v Speaker 1>hike will be followed by another of the same magnitude.

0:04:23.120 --> 0:04:25.960
<v Speaker 1>The UK Center Bank Memhile makes its decision on the

0:04:26.040 --> 0:04:28.920
<v Speaker 1>same day. The Bank of England also expected to raise

0:04:28.960 --> 0:04:32.479
<v Speaker 1>by fifty basis points, bringing rates to four percent. The

0:04:32.560 --> 0:04:35.039
<v Speaker 1>BAWA has little reason to shy away given the economy

0:04:35.080 --> 0:04:37.839
<v Speaker 1>has being more resilient than expected and a tight labor

0:04:37.880 --> 0:04:41.000
<v Speaker 1>market and spiraling waves growth are in focus in London.

0:04:41.000 --> 0:04:43.200
<v Speaker 1>I'm you and part spom boy daybreak, Are you and

0:04:43.279 --> 0:04:46.040
<v Speaker 1>thank you? Are staying in Europe? Thousands of job cuts

0:04:46.040 --> 0:04:49.040
<v Speaker 1>around the way. A Dutch medical equipment maker, Royal Phillips,

0:04:49.040 --> 0:04:51.960
<v Speaker 1>we come up, as CEO Roy Jacobs earlier this morning.

0:04:52.520 --> 0:04:55.440
<v Speaker 1>We have announced indeed that we are going to reduce

0:04:55.480 --> 0:04:59.880
<v Speaker 1>the workforce by not a thick thousand people. That's a sizeable,

0:05:00.120 --> 0:05:03.840
<v Speaker 1>an impactful measure, but we see it necessary to indeed

0:05:03.839 --> 0:05:08.159
<v Speaker 1>address the rising coast across the company end of the world.

0:05:08.560 --> 0:05:10.960
<v Speaker 1>Phillips e EO Roy Jacobs says the cuts are in

0:05:10.960 --> 0:05:13.919
<v Speaker 1>addition to four thousand job cuts announced last year, and

0:05:13.960 --> 0:05:16.080
<v Speaker 1>shares are at more than six percent on the News.

0:05:16.160 --> 0:05:18.160
<v Speaker 1>You know, we're also watching shares of a Donnie Group

0:05:18.200 --> 0:05:20.840
<v Speaker 1>in India this morning. It has been a tumultuous few

0:05:20.920 --> 0:05:23.880
<v Speaker 1>days for the company, owned by billionaire Gatma Donnie. The

0:05:23.920 --> 0:05:27.720
<v Speaker 1>shares fell eighteen percent on Friday after allegations of fraud

0:05:27.720 --> 0:05:31.039
<v Speaker 1>by short seller Hindenburg Research. Donnie has hit back with

0:05:31.080 --> 0:05:35.200
<v Speaker 1>a fourteen page rebuttle of those accusations. That's lifting shares

0:05:35.240 --> 0:05:37.320
<v Speaker 1>a bit this morning. Right now they're up about five.

0:05:38.160 --> 0:05:41.120
<v Speaker 1>We'll back here in the US Nathan Politics and Focus.

0:05:41.279 --> 0:05:44.000
<v Speaker 1>President Biden has agreed to meet with HOW Speaker Kevin

0:05:44.080 --> 0:05:47.400
<v Speaker 1>McCarthy on Wednesday to discuss the dead ceiling and avoiding

0:05:47.440 --> 0:05:50.560
<v Speaker 1>a US default. Bloomberg Jamie Morris has details from our

0:05:51.240 --> 0:05:54.640
<v Speaker 1>newsroom in Washington. The White House says President Biden will

0:05:54.640 --> 0:05:57.880
<v Speaker 1>ask McCarthy if he'll meet what he calls his constitutional

0:05:57.960 --> 0:06:01.680
<v Speaker 1>obligation to prevent a default. McCarthy says he'll press for

0:06:01.880 --> 0:06:04.280
<v Speaker 1>changes in spending. We're not going to default, but let

0:06:04.279 --> 0:06:05.960
<v Speaker 1>me be very honest with you. Right now, we have

0:06:06.040 --> 0:06:08.760
<v Speaker 1>hundreds of billions of dollars. This won't come to fruition

0:06:08.839 --> 0:06:11.640
<v Speaker 1>until some time in June. So the responsible thing to

0:06:11.680 --> 0:06:14.040
<v Speaker 1>do is sit down like two adults and start having

0:06:14.040 --> 0:06:17.320
<v Speaker 1>that discussion. How speaker McCarthy on CBS Face the Nation

0:06:17.360 --> 0:06:21.240
<v Speaker 1>heard Sundays here on Bloomberg Radio. Republicans want to extract

0:06:21.279 --> 0:06:25.560
<v Speaker 1>spending cuts, including Social Security and Medicare benefits, in exchange

0:06:25.600 --> 0:06:28.960
<v Speaker 1>for raising the borrowing cap. Biden has urged McCarthy to

0:06:29.040 --> 0:06:33.200
<v Speaker 1>raise it without conditions. In Washington, I'm Amy Moore's Bloomberg Daybreak.

0:06:33.240 --> 0:06:35.320
<v Speaker 1>Thank you, Amy, s and p futures right now are

0:06:35.400 --> 0:06:38.320
<v Speaker 1>down thirty five points and straight ahead we have your

0:06:38.360 --> 0:06:42.440
<v Speaker 1>latest local headlines in the check of sports. This is Bloomberg.

0:06:45.880 --> 0:06:48.359
<v Speaker 1>It's forty three degrees in Central Park. Gonna be partly

0:06:48.400 --> 0:06:50.719
<v Speaker 1>sunny and fairly mild today, getting up to near fifty.

0:06:50.960 --> 0:06:53.920
<v Speaker 1>Some showers possible this evening. Otherwise mostly cloudy, will get

0:06:53.960 --> 0:06:56.000
<v Speaker 1>back down to the low thirties. Time to take a

0:06:56.000 --> 0:06:57.640
<v Speaker 1>look at some of the other stories making news in

0:06:57.680 --> 0:07:00.760
<v Speaker 1>New York and around the world with Bloomberg's Michael Good Morning, Michael,

0:07:00.839 --> 0:07:04.479
<v Speaker 1>Good Morning. Nathan. Demonstrations were held across the nation after

0:07:04.640 --> 0:07:07.920
<v Speaker 1>video showed the deadly beating of Tyree Nichols by Memphis

0:07:07.960 --> 0:07:12.160
<v Speaker 1>police officers. The Memphis officers were fired and faced murder charges,

0:07:12.440 --> 0:07:15.520
<v Speaker 1>and their so called Scorpion Union has been disbanded by

0:07:15.560 --> 0:07:18.200
<v Speaker 1>the police chief. In New York City, a protest was

0:07:18.240 --> 0:07:22.280
<v Speaker 1>held in Washington Square over the weekend. Event organizer Timothy

0:07:22.320 --> 0:07:25.640
<v Speaker 1>Hunter says many in the community feel a responsibility to

0:07:25.680 --> 0:07:29.200
<v Speaker 1>protect others from suffering a similar fate. Justice isn't the

0:07:29.320 --> 0:07:32.320
<v Speaker 1>reaction after it happens. Justice is stopping it from ever

0:07:32.320 --> 0:07:36.200
<v Speaker 1>happening again. Pressure continues on Capitol Hill lawmakers to act

0:07:36.680 --> 0:07:40.480
<v Speaker 1>on longstalled federal police reform legislation. In the wake of

0:07:40.520 --> 0:07:44.080
<v Speaker 1>Tyree Nichols. Former Governor Chris Christie of New Jersey talked

0:07:44.120 --> 0:07:47.600
<v Speaker 1>about the overhaul of a police department in his state. Camden,

0:07:48.000 --> 0:07:50.480
<v Speaker 1>New Jersey, was the most dangerous city in America for

0:07:50.480 --> 0:07:53.680
<v Speaker 1>about a decade, and we disbanded the entire police force

0:07:53.920 --> 0:07:56.520
<v Speaker 1>and brought in a new one. We taught police officers

0:07:56.520 --> 0:07:59.720
<v Speaker 1>and that's these skills for violence the escalation. Former New

0:07:59.760 --> 0:08:03.720
<v Speaker 1>Jersey Governor Christie spoke to ABC. Protests took place on

0:08:03.880 --> 0:08:07.440
<v Speaker 1>New York City's Upper West Side last night after learning

0:08:07.480 --> 0:08:11.120
<v Speaker 1>migrants bust from southern border states will be bust once

0:08:11.160 --> 0:08:14.240
<v Speaker 1>again to Brooklyn. They are currently being housed at the

0:08:14.240 --> 0:08:17.680
<v Speaker 1>Watson hotel in Manhattan. This person is a volunteer. It's

0:08:17.680 --> 0:08:20.600
<v Speaker 1>not humane. This is not the way you treat human beings.

0:08:20.720 --> 0:08:23.680
<v Speaker 1>New York City officials say after receiving tens of thousands

0:08:23.680 --> 0:08:26.960
<v Speaker 1>of migrants relocated from states like Texas, they have to

0:08:27.040 --> 0:08:30.680
<v Speaker 1>look at other places to accommodate people. Israel carried out

0:08:30.680 --> 0:08:34.280
<v Speaker 1>a drone strike targeting a defense compound in Iran, according

0:08:34.280 --> 0:08:37.160
<v Speaker 1>to The Wall Street Journal. People familiar with the operations

0:08:37.160 --> 0:08:39.880
<v Speaker 1>say the US and Israel are looking for new ways

0:08:39.920 --> 0:08:44.200
<v Speaker 1>to contain Tehran's nuclear and military ambitions. How young is

0:08:44.280 --> 0:08:48.400
<v Speaker 1>too young for social media? Surgeon General Vivic Murphy says

0:08:48.440 --> 0:08:51.360
<v Speaker 1>he thinks thirteen is too young for children to be

0:08:51.440 --> 0:08:54.400
<v Speaker 1>on social media. He says kids are still developing their

0:08:54.480 --> 0:08:58.760
<v Speaker 1>identity at that age. Dr Alach Patel, pediatrician with Stanford

0:08:58.840 --> 0:09:03.040
<v Speaker 1>Children's Health, agree, the Surgeon General is absolutely correct in

0:09:03.120 --> 0:09:06.480
<v Speaker 1>my professional opinion that children aged thirteen are simply too

0:09:06.559 --> 0:09:09.640
<v Speaker 1>young to be on social media, scrolling those platforms and

0:09:09.720 --> 0:09:14.319
<v Speaker 1>frankly getting addicted. Dr Prtell spoke to ABC Global News

0:09:14.320 --> 0:09:17.640
<v Speaker 1>twenty four hours a day on air and on Bloomberg Quicktake,

0:09:17.679 --> 0:09:20.480
<v Speaker 1>powered by more than twenty seven hundred journalist and analyst

0:09:20.720 --> 0:09:23.320
<v Speaker 1>and more than one d twenty countries. How Michael Bard,

0:09:23.400 --> 0:09:30.720
<v Speaker 1>this is Bloomberg, Nathan. Thanks Michael. Time now for the

0:09:30.800 --> 0:09:33.040
<v Speaker 1>Bloomberg Sports Update, brought to you by try stayed OUTI.

0:09:33.160 --> 0:09:35.280
<v Speaker 1>Good morning, John Stanshower, Good morning, Nathan, and will be

0:09:35.360 --> 0:09:38.280
<v Speaker 1>the Eagles in chiefs in Phoenix. Two teams have combined

0:09:38.280 --> 0:09:41.160
<v Speaker 1>to win only three of the fifty six Super Bowls.

0:09:41.160 --> 0:09:43.720
<v Speaker 1>Andy Reid will go against the team he coached for

0:09:43.800 --> 0:09:47.400
<v Speaker 1>thirteen years. Travis Kelsey would play against his brother Jason.

0:09:47.480 --> 0:09:50.160
<v Speaker 1>Vegas had the game as a pick on. Philadelphia is

0:09:50.200 --> 0:09:52.800
<v Speaker 1>now a slight two point favor They improved a sixteen

0:09:52.800 --> 0:09:55.439
<v Speaker 1>and one with Jalen Ards at quarterback. He led them

0:09:55.440 --> 0:09:57.800
<v Speaker 1>to a route of the forty Niners thirty one to seven.

0:09:57.800 --> 0:10:00.720
<v Speaker 1>The Niners had no chance when they're QB Rock Purdy

0:10:00.760 --> 0:10:03.200
<v Speaker 1>heart his elbow and then his backup Josh Johnson went

0:10:03.240 --> 0:10:05.640
<v Speaker 1>into concussion protocols, so they had to bring Purdy back,

0:10:05.640 --> 0:10:07.600
<v Speaker 1>but he couldn't throw a pass and they go down

0:10:07.640 --> 0:10:09.559
<v Speaker 1>in the NFC Championship Game for the second year in

0:10:09.600 --> 0:10:11.640
<v Speaker 1>a row. After their twelve game winning streak came to

0:10:11.679 --> 0:10:14.840
<v Speaker 1>an end. The Bengals ten games streak end in Chiefs

0:10:14.840 --> 0:10:18.400
<v Speaker 1>Avenge three straight losses to Cincinnati, included one in overtime

0:10:18.400 --> 0:10:21.319
<v Speaker 1>in last year's NFC title game. This one looked to

0:10:21.360 --> 0:10:24.080
<v Speaker 1>be headed ot but Case in the final minute had

0:10:24.080 --> 0:10:26.920
<v Speaker 1>a long punt returned. The Bengals committed a costly penalty

0:10:27.360 --> 0:10:30.040
<v Speaker 1>and tied at twenty. It was time for a championship

0:10:30.040 --> 0:10:33.040
<v Speaker 1>winning field goal Prrison Butker. The biggest kick of his

0:10:33.120 --> 0:10:37.120
<v Speaker 1>Chiefs life. Placement is down. Butcker's kick us out. The

0:10:37.160 --> 0:10:42.480
<v Speaker 1>spinning kick high, funny in the air as God, God, God,

0:10:42.559 --> 0:10:46.679
<v Speaker 1>it's Cincinnati called time out. They did not, They did not,

0:10:47.080 --> 0:10:49.960
<v Speaker 1>They did not. It's a field goal for forty five

0:10:50.040 --> 0:10:54.240
<v Speaker 1>yards by Harrison Butker. He traded call Patrick Mahomes bothered

0:10:54.240 --> 0:10:55.720
<v Speaker 1>by an ankle in dream, but he's still through for

0:10:55.760 --> 0:10:58.280
<v Speaker 1>three hundred and twenty six yards. That's Garden st Johnson

0:10:58.320 --> 0:11:01.600
<v Speaker 1>nearly lost to Lowly Georgetown pulled out a seventy seventy

0:11:01.600 --> 0:11:03.920
<v Speaker 1>three win. Hoyas have lost thirty of their last thirty one.

0:11:04.000 --> 0:11:06.880
<v Speaker 1>In the Big East. Novak Djokovic is tan Tha. Australian

0:11:06.920 --> 0:11:09.960
<v Speaker 1>Open title gives him twenty two Grand slams now tied

0:11:10.000 --> 0:11:12.960
<v Speaker 1>the Raphael the daw john Sta actually were Bloomberg Sports

0:11:16.200 --> 0:11:19.600
<v Speaker 1>live from coast to coast, from New York to San Francisco,

0:11:19.800 --> 0:11:23.640
<v Speaker 1>Boston to Washington, d C. Nationwide on Sirius xamp, the

0:11:23.720 --> 0:11:28.360
<v Speaker 1>Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

0:11:29.520 --> 0:11:31.640
<v Speaker 1>Good morning, I'm Nathan Hagar, as we get ready to

0:11:31.720 --> 0:11:34.720
<v Speaker 1>kick off a very busy week for central bank decisions

0:11:34.720 --> 0:11:36.960
<v Speaker 1>in the US and around the world, as well as earnings,

0:11:36.960 --> 0:11:39.000
<v Speaker 1>with more than a hundred companies in the SP five

0:11:39.080 --> 0:11:41.800
<v Speaker 1>hundred reporting this week. It's gonna look at this market now.

0:11:41.800 --> 0:11:44.400
<v Speaker 1>We're joined by Dennis Gartman, the chairman of the University

0:11:44.440 --> 0:11:47.199
<v Speaker 1>of Akron Endowment Investment Committee and the former publisher of

0:11:47.240 --> 0:11:50.199
<v Speaker 1>the Gartman Letter. Dennis, Good morning. We are seeing futures

0:11:50.240 --> 0:11:52.920
<v Speaker 1>af firmly in the red this morning. Is this the

0:11:52.960 --> 0:11:57.320
<v Speaker 1>peak of the January rally? It may well be time,

0:11:57.360 --> 0:12:00.800
<v Speaker 1>shall tell I had been various of style basically since

0:12:00.880 --> 0:12:03.840
<v Speaker 1>January of last year, and about four weeks ago I

0:12:03.840 --> 0:12:09.920
<v Speaker 1>started to turn quietly, marginally, modestly slightly bullish of of equities.

0:12:09.960 --> 0:12:12.840
<v Speaker 1>But I have to admit that today's action looks really

0:12:12.880 --> 0:12:16.120
<v Speaker 1>quite horrific to be to be blunt, and we may

0:12:16.160 --> 0:12:18.439
<v Speaker 1>well have seen the to the peak. Everybody's looking forward

0:12:18.480 --> 0:12:22.280
<v Speaker 1>to I shouldn't stay forward. Everybody's looking to the FEDS

0:12:22.320 --> 0:12:24.760
<v Speaker 1>decision this week. Right now. That consensus is the FED

0:12:24.840 --> 0:12:26.480
<v Speaker 1>is going to raise the overnight FED funds raised by

0:12:26.480 --> 0:12:29.640
<v Speaker 1>twenty five basis points. I have a sneaky suspicion they'll

0:12:29.640 --> 0:12:32.320
<v Speaker 1>probably go by fifty. But time shall tell. But we

0:12:32.440 --> 0:12:36.960
<v Speaker 1>have a you had a strong rally since October last year.

0:12:37.840 --> 0:12:39.640
<v Speaker 1>We found some support for the S and P, we

0:12:39.720 --> 0:12:42.840
<v Speaker 1>found some support for the NASDAC, but the rally had

0:12:43.520 --> 0:12:47.280
<v Speaker 1>has probably exhausted itself. So in my own account, I'm

0:12:47.360 --> 0:12:50.760
<v Speaker 1>I'm marginally long, about ten net long, and I'm probably

0:12:50.760 --> 0:12:54.720
<v Speaker 1>gonna start taking some some safety against that this morning.

0:12:54.760 --> 0:12:58.240
<v Speaker 1>And and and put in some derivatives to hedge my position.

0:12:59.000 --> 0:13:01.200
<v Speaker 1>You said there's a pond stability that the FED could

0:13:01.240 --> 0:13:04.640
<v Speaker 1>go fifty basis points. What makes you think that? The

0:13:04.760 --> 0:13:08.800
<v Speaker 1>language coming from Mr Powell, he's been very consistent. We'll see.

0:13:08.880 --> 0:13:10.319
<v Speaker 1>I was one of the first people to say that

0:13:10.400 --> 0:13:13.079
<v Speaker 1>the FED was going to take greats towards five percent.

0:13:13.600 --> 0:13:17.199
<v Speaker 1>I said that almost fourteen months ago. And the fact

0:13:17.200 --> 0:13:19.839
<v Speaker 1>that that we raised seventy five basis points for the

0:13:19.880 --> 0:13:23.320
<v Speaker 1>last three or four meetings. Uh, the odds of them

0:13:23.360 --> 0:13:25.840
<v Speaker 1>going only twenty five, I think are relatively slim. Time

0:13:25.880 --> 0:13:29.360
<v Speaker 1>shall tell, we'll see. The set is nowhere near dune

0:13:29.400 --> 0:13:31.960
<v Speaker 1>tightening monetary policy at this point, and we need to

0:13:31.960 --> 0:13:33.800
<v Speaker 1>pay more attention to what they're doing to their balance

0:13:33.840 --> 0:13:36.959
<v Speaker 1>sheet is still above eight trillion dollars. It needs to

0:13:36.960 --> 0:13:39.319
<v Speaker 1>get down to four or four point to four to

0:13:39.480 --> 0:13:41.360
<v Speaker 1>five trillion over the course of the the next year or two.

0:13:41.800 --> 0:13:43.840
<v Speaker 1>And that's to me even more important than what they

0:13:43.840 --> 0:13:45.839
<v Speaker 1>do with the overnight said funds rate. Is it more

0:13:45.880 --> 0:13:50.320
<v Speaker 1>important for equity valuations? What makes them more important the

0:13:50.360 --> 0:13:52.600
<v Speaker 1>fact that the Fed will be, has been, and shall

0:13:52.640 --> 0:13:54.679
<v Speaker 1>continue to be taking liquidity out of the market for

0:13:54.720 --> 0:13:57.640
<v Speaker 1>a protracted period of time. They raised the over their

0:13:57.679 --> 0:14:00.880
<v Speaker 1>their balance sheet from what nine million dollars to nine

0:14:00.960 --> 0:14:04.560
<v Speaker 1>trillion dollars. That took almost a decade to accomplish that task.

0:14:04.880 --> 0:14:06.439
<v Speaker 1>It's going to take them a long period of time

0:14:06.480 --> 0:14:09.040
<v Speaker 1>to resolve that to get that balance sheet back to

0:14:09.080 --> 0:14:11.960
<v Speaker 1>four to five trillion dollars instead, which would still be

0:14:12.080 --> 0:14:14.840
<v Speaker 1>a top heavy balance sheet. But the fact that they're

0:14:14.840 --> 0:14:17.480
<v Speaker 1>taking the liquidity that had sponsored the great bull market

0:14:17.520 --> 0:14:20.440
<v Speaker 1>that we had two years ago. Uh that that liquidity

0:14:20.480 --> 0:14:22.560
<v Speaker 1>is being taken away. That's the one caveat that you

0:14:22.560 --> 0:14:24.440
<v Speaker 1>have to be concerned about if you're an overt bowl,

0:14:24.880 --> 0:14:27.280
<v Speaker 1>as I said. As I said, I'm marginally bullish, have

0:14:27.360 --> 0:14:30.400
<v Speaker 1>been for the past three or four weeks, but today's

0:14:30.400 --> 0:14:35.560
<v Speaker 1>action does look deleterious, looks detrimental, looks a little suspicious,

0:14:35.560 --> 0:14:37.480
<v Speaker 1>and I'm going to be taking some protection this morning.

0:14:38.040 --> 0:14:41.440
<v Speaker 1>Is the policy moves that the FED is making now?

0:14:41.680 --> 0:14:45.880
<v Speaker 1>Is that the right prescription for the inflation that we've

0:14:45.920 --> 0:14:50.400
<v Speaker 1>seen so far is the Fed possibly hiking into a recession.

0:14:51.120 --> 0:14:53.440
<v Speaker 1>The Fed is almost certainly hiking into a recession. And

0:14:53.480 --> 0:14:55.200
<v Speaker 1>I think that's actually the right thing to that. I

0:14:55.200 --> 0:14:57.320
<v Speaker 1>think they're taking the right the right course of action.

0:14:58.480 --> 0:15:01.200
<v Speaker 1>The question shall be where how far will they take

0:15:01.200 --> 0:15:03.400
<v Speaker 1>the overnight said funds right to reach the terminal rate

0:15:03.400 --> 0:15:05.320
<v Speaker 1>as we now call it. I think they want to

0:15:05.320 --> 0:15:06.960
<v Speaker 1>get it to five and a quarter percent, and then

0:15:07.000 --> 0:15:10.480
<v Speaker 1>even even once they get there, they won't be cutting rates.

0:15:10.520 --> 0:15:13.640
<v Speaker 1>They won't be easy monetary policy. They won't be making

0:15:13.720 --> 0:15:17.960
<v Speaker 1>these long forecasting pivot for a long period of time,

0:15:18.000 --> 0:15:21.000
<v Speaker 1>probably not into before they actually begin to move right

0:15:21.040 --> 0:15:24.200
<v Speaker 1>slower again. So I think they're doing the right thing. Well,

0:15:24.200 --> 0:15:27.280
<v Speaker 1>what's that going to mean for equity valuations if we

0:15:27.360 --> 0:15:30.240
<v Speaker 1>do see that kind of tightening go forward, all things

0:15:30.280 --> 0:15:33.040
<v Speaker 1>being otherwise equal, Once you get a bounce, which maybe

0:15:33.040 --> 0:15:35.120
<v Speaker 1>that's what we've seen since from from the lows in

0:15:35.120 --> 0:15:39.320
<v Speaker 1>October to the highs of last week. Maybe that's the

0:15:39.360 --> 0:15:43.200
<v Speaker 1>fact that we we had a nice technical bounce and

0:15:43.200 --> 0:15:44.880
<v Speaker 1>and the fact that they're going to be taking liquidity

0:15:44.880 --> 0:15:47.880
<v Speaker 1>away from the market should be deltarious to share prices.

0:15:47.880 --> 0:15:50.800
<v Speaker 1>So I'm I'm on the edge right now. As I said,

0:15:50.800 --> 0:15:53.040
<v Speaker 1>I was marginally bullish, and the operative ward here is

0:15:53.080 --> 0:15:58.400
<v Speaker 1>marginally Uh. Time shall tell. But I'm not at all

0:15:58.440 --> 0:16:00.640
<v Speaker 1>happy with what I'm seeing this morning, And as I said,

0:16:00.880 --> 0:16:04.440
<v Speaker 1>I'm gonna be taking some some derivative positions to hedge

0:16:04.480 --> 0:16:08.480
<v Speaker 1>my position and get back to neutral. I'm not overly bullish,

0:16:08.520 --> 0:16:11.040
<v Speaker 1>I'm marginally so and I and I feel a little

0:16:11.160 --> 0:16:14.320
<v Speaker 1>discomfort this morning watching this, watching red across the board,

0:16:14.760 --> 0:16:17.880
<v Speaker 1>in bonds, in stocks, in the dollar, uh, in gold.

0:16:18.320 --> 0:16:22.720
<v Speaker 1>So we may have seen a little change here. This

0:16:22.920 --> 0:16:26.160
<v Speaker 1>is Bloomberg Daybreak today, your morning brief on the stories

0:16:26.200 --> 0:16:29.640
<v Speaker 1>making news from Wall Street to Washington and beyond. Look

0:16:29.680 --> 0:16:32.720
<v Speaker 1>for us on your podcast feed at six am Eastern

0:16:32.840 --> 0:16:36.200
<v Speaker 1>each morning, on Apple, Spotify, and anywhere else you get

0:16:36.240 --> 0:16:39.640
<v Speaker 1>your podcasts. You can also listen live each morning starting

0:16:39.640 --> 0:16:42.480
<v Speaker 1>at five am Wall Street Time on Bloomberg eleven three

0:16:42.480 --> 0:16:46.520
<v Speaker 1>oh in New York, Bloomberg in Washington, Bloomberg one oh

0:16:46.560 --> 0:16:50.280
<v Speaker 1>six one in Boston, and Bloomberg nine six in San Francisco.

0:16:50.640 --> 0:16:53.800
<v Speaker 1>Our flagship New York station is also available on your

0:16:53.840 --> 0:16:58.600
<v Speaker 1>Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty

0:16:58.960 --> 0:17:01.840
<v Speaker 1>plus listen coast to coast on the Bloomberg Business app,

0:17:01.920 --> 0:17:05.400
<v Speaker 1>Sirius XM Channel one nineteen, the I Heart Radio app,

0:17:05.480 --> 0:17:08.480
<v Speaker 1>and on Bloomberg dot com. I'm Nathan Hager and I'm

0:17:08.520 --> 0:17:11.800
<v Speaker 1>Karen Moscow. Join us again tomorrow morning for all the

0:17:11.800 --> 0:17:14.439
<v Speaker 1>news you need to start your day right here on

0:17:14.520 --> 0:17:15.680
<v Speaker 1>Bloomberg Daybreak