Speaker 1: By from the Bloomberg Interacted Brooker Studios. This is Bloomberg
Speaker 1: day Break for Monday, January. Coming up this hour, US
Speaker 1: futures drop ahead of a big week for earnings and
Speaker 1: interest rate decisions. Amazon and Apple lead more than a
Speaker 1: hundred companies reporting results, The fed, ECB and BOE all
Speaker 1: set to make policy decisions, and President Biden prepares for
Speaker 1: Talkshpit House speaker Kevin McCarthy on the dead ceiling. Protests
Speaker 1: were held in New York City and across the nation
Speaker 1: over the Memphis police beating at Tyree Nichols. Plus how
Speaker 1: young is too young for social media? Michael Bomber More ahead,
Speaker 1: I'm John Stash. In sports, the Eagles blew out the Forts,
Speaker 1: the chief said. The Bangrolls Philadelphia and Kansas City will
Speaker 1: play in Super Bowl fifty seven. That's all straight ahead
Speaker 1: on Bloomberg day Break on Bloomberg eleven, Treo, New York,
Speaker 1: Bloomberg one, Washington, d C, Bloomberg one O six one, Boston,
Speaker 1: Bloomberg nine sixty, San Francisco, Sirius x M one nineteen
Speaker 1: and around the world on Bloomberg Radio, dot com, um
Speaker 1: and via The Bloomberg Business. Good morning, I'm Nathan Hagar
Speaker 1: and I'm kerin Moscow. Here are the stories we're following today.
Speaker 1: All futures are lower this morning. We do enter the
Speaker 1: day in bullish fashion. The S and P five hundred
Speaker 1: is up six percent so far this month, while the
Speaker 1: tech heavy Nasdaq is higher by eleven percent, but one
Speaker 1: noted Wall Street analysts says sell this rally. Let's get
Speaker 1: the latest Live with Bloomberg. Steve Rappaport. Good morning, Steve,
Speaker 1: Good morning, Nathan, and Karen. A team of strategists led
Speaker 1: by Morgan Stanley's Mike Wilson urges investors to cash out now.
Speaker 1: Wilson writing the recent price action is more a reflection
Speaker 1: of the seasonal January effect and shortcovering after a tough
Speaker 1: end to December and a brutal year. Despite signs of
Speaker 1: an economic slowdown, investors are pouring money into companies that
Speaker 1: exceeded expectations. Analysts say that dynamic is likely tied to
Speaker 1: companies restructuring and cost cutting plan efforts. Live in New York.
Speaker 1: I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you well.
Speaker 1: It's also been a good January for crypto investors. Bitcoin
Speaker 1: has set for its best January since best that monetary
Speaker 1: tightening in the crypto sector crisis are both ebbing. The
Speaker 1: largest token is up over forty percent since the start
Speaker 1: of the year. Smaller coins like Slana have doubled in
Speaker 1: value as part of a two d eighty billion dollar climb,
Speaker 1: and digital assets this month bad figure according to coin
Speaker 1: get Go. Well. This week is another big one for
Speaker 1: earnings Karen. More than a hundred companies in the SNP
Speaker 1: five reporting, and we get a preview from Bloomberg's Charlie Pellett.
Speaker 1: Microsoft and Intel rattled investors last week. Lisa Shalott is
Speaker 1: chief investment Officer for Wealth Management at Morgan Stanley. She
Speaker 1: says it's a bad omen for the US economy. There
Speaker 1: is definitive risk to the earnings profile as both pricing
Speaker 1: power and volumes decline UH coming off what has been
Speaker 1: a historic stimulus over the last two and a half
Speaker 1: years and a pull forward in demand. This week, we
Speaker 1: will here from tech giants including Apple, Alphabet, Metal Platforms,
Speaker 1: qual Calm, and Amazon. Also reporting x on Mobile for GM,
Speaker 1: McDonald's and Starbucks in New York. Charlie Pellett Bloomberg Daybreak, Right, Charlie,
Speaker 1: thank you. Well, it's also a big week for central
Speaker 1: banks and economic data. We get both the FED decision
Speaker 1: and January's jobs report, and here with Moore is Bloomberg
Speaker 1: Economic Score, responded Michael McKee, Wednesday's FED meeting will dominate
Speaker 1: the headlines early that although a quarter percentage point increase
Speaker 1: in the nation's benchmark borrowing rate is pretty much baked in,
Speaker 1: it would take a surprise to really move markets. Friday
Speaker 1: is Job's Day, however, and that data will do a
Speaker 1: lot to inform how investors think about the feds next move.
Speaker 1: So far, the Central Bank has raised rates by four
Speaker 1: and a half percent this year, but unemployment is unchanged,
Speaker 1: does hiring slow and job loss accelerate, and most important
Speaker 1: to average hourly wage gains slow. Those will be key
Speaker 1: data points for Fed officials considering any additional policy change.
Speaker 1: Like on the key Bloomberg Daybreak, make thanks. We also
Speaker 1: get key rate decisions in Europe this week, and for
Speaker 1: the latest down that we go live to London and
Speaker 1: bloombergs you and parts, good morning you and good morning
Speaker 1: Nathan and Karen. The European at Central Bank will be
Speaker 1: in focus this Thursday. Investors. We're watching for the messaging
Speaker 1: as to whether this week is likely fifty basis point
Speaker 1: hike will be followed by another of the same magnitude.
Speaker 1: The UK Center Bank Memhile makes its decision on the
Speaker 1: same day. The Bank of England also expected to raise
Speaker 1: by fifty basis points, bringing rates to four percent. The
Speaker 1: BAWA has little reason to shy away given the economy
Speaker 1: has being more resilient than expected and a tight labor
Speaker 1: market and spiraling waves growth are in focus in London.
Speaker 1: I'm you and part spom boy daybreak, Are you and
Speaker 1: thank you? Are staying in Europe? Thousands of job cuts
Speaker 1: around the way. A Dutch medical equipment maker, Royal Phillips,
Speaker 1: we come up, as CEO Roy Jacobs earlier this morning.
Speaker 1: We have announced indeed that we are going to reduce
Speaker 1: the workforce by not a thick thousand people. That's a sizeable,
Speaker 1: an impactful measure, but we see it necessary to indeed
Speaker 1: address the rising coast across the company end of the world.
Speaker 1: Phillips e EO Roy Jacobs says the cuts are in
Speaker 1: addition to four thousand job cuts announced last year, and
Speaker 1: shares are at more than six percent on the News.
Speaker 1: You know, we're also watching shares of a Donnie Group
Speaker 1: in India this morning. It has been a tumultuous few
Speaker 1: days for the company, owned by billionaire Gatma Donnie. The
Speaker 1: shares fell eighteen percent on Friday after allegations of fraud
Speaker 1: by short seller Hindenburg Research. Donnie has hit back with
Speaker 1: a fourteen page rebuttle of those accusations. That's lifting shares
Speaker 1: a bit this morning. Right now they're up about five.
Speaker 1: We'll back here in the US Nathan Politics and Focus.
Speaker 1: President Biden has agreed to meet with HOW Speaker Kevin
Speaker 1: McCarthy on Wednesday to discuss the dead ceiling and avoiding
Speaker 1: a US default. Bloomberg Jamie Morris has details from our
Speaker 1: newsroom in Washington. The White House says President Biden will
Speaker 1: ask McCarthy if he'll meet what he calls his constitutional
Speaker 1: obligation to prevent a default. McCarthy says he'll press for
Speaker 1: changes in spending. We're not going to default, but let
Speaker 1: me be very honest with you. Right now, we have
Speaker 1: hundreds of billions of dollars. This won't come to fruition
Speaker 1: until some time in June. So the responsible thing to
Speaker 1: do is sit down like two adults and start having
Speaker 1: that discussion. How speaker McCarthy on CBS Face the Nation
Speaker 1: heard Sundays here on Bloomberg Radio. Republicans want to extract
Speaker 1: spending cuts, including Social Security and Medicare benefits, in exchange
Speaker 1: for raising the borrowing cap. Biden has urged McCarthy to
Speaker 1: raise it without conditions. In Washington, I'm Amy Moore's Bloomberg Daybreak.
Speaker 1: Thank you, Amy, s and p futures right now are
Speaker 1: down thirty five points and straight ahead we have your
Speaker 1: latest local headlines in the check of sports. This is Bloomberg.
Speaker 1: It's forty three degrees in Central Park. Gonna be partly
Speaker 1: sunny and fairly mild today, getting up to near fifty.
Speaker 1: Some showers possible this evening. Otherwise mostly cloudy, will get
Speaker 1: back down to the low thirties. Time to take a
Speaker 1: look at some of the other stories making news in
Speaker 1: New York and around the world with Bloomberg's Michael Good Morning, Michael,
Speaker 1: Good Morning. Nathan. Demonstrations were held across the nation after
Speaker 1: video showed the deadly beating of Tyree Nichols by Memphis
Speaker 1: police officers. The Memphis officers were fired and faced murder charges,
Speaker 1: and their so called Scorpion Union has been disbanded by
Speaker 1: the police chief. In New York City, a protest was
Speaker 1: held in Washington Square over the weekend. Event organizer Timothy
Speaker 1: Hunter says many in the community feel a responsibility to
Speaker 1: protect others from suffering a similar fate. Justice isn't the
Speaker 1: reaction after it happens. Justice is stopping it from ever
Speaker 1: happening again. Pressure continues on Capitol Hill lawmakers to act
Speaker 1: on longstalled federal police reform legislation. In the wake of
Speaker 1: Tyree Nichols. Former Governor Chris Christie of New Jersey talked
Speaker 1: about the overhaul of a police department in his state. Camden,
Speaker 1: New Jersey, was the most dangerous city in America for
Speaker 1: about a decade, and we disbanded the entire police force
Speaker 1: and brought in a new one. We taught police officers
Speaker 1: and that's these skills for violence the escalation. Former New
Speaker 1: Jersey Governor Christie spoke to ABC. Protests took place on
Speaker 1: New York City's Upper West Side last night after learning
Speaker 1: migrants bust from southern border states will be bust once
Speaker 1: again to Brooklyn. They are currently being housed at the
Speaker 1: Watson hotel in Manhattan. This person is a volunteer. It's
Speaker 1: not humane. This is not the way you treat human beings.
Speaker 1: New York City officials say after receiving tens of thousands
Speaker 1: of migrants relocated from states like Texas, they have to
Speaker 1: look at other places to accommodate people. Israel carried out
Speaker 1: a drone strike targeting a defense compound in Iran, according
Speaker 1: to The Wall Street Journal. People familiar with the operations
Speaker 1: say the US and Israel are looking for new ways
Speaker 1: to contain Tehran's nuclear and military ambitions. How young is
Speaker 1: too young for social media? Surgeon General Vivic Murphy says
Speaker 1: he thinks thirteen is too young for children to be
Speaker 1: on social media. He says kids are still developing their
Speaker 1: identity at that age. Dr Alach Patel, pediatrician with Stanford
Speaker 1: Children's Health, agree, the Surgeon General is absolutely correct in
Speaker 1: my professional opinion that children aged thirteen are simply too
Speaker 1: young to be on social media, scrolling those platforms and
Speaker 1: frankly getting addicted. Dr Prtell spoke to ABC Global News
Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven hundred journalist and analyst
Speaker 1: and more than one d twenty countries. How Michael Bard,
Speaker 1: this is Bloomberg, Nathan. Thanks Michael. Time now for the
Speaker 1: Bloomberg Sports Update, brought to you by try stayed OUTI.
Speaker 1: Good morning, John Stanshower, Good morning, Nathan, and will be
Speaker 1: the Eagles in chiefs in Phoenix. Two teams have combined
Speaker 1: to win only three of the fifty six Super Bowls.
Speaker 1: Andy Reid will go against the team he coached for
Speaker 1: thirteen years. Travis Kelsey would play against his brother Jason.
Speaker 1: Vegas had the game as a pick on. Philadelphia is
Speaker 1: now a slight two point favor They improved a sixteen
Speaker 1: and one with Jalen Ards at quarterback. He led them
Speaker 1: to a route of the forty Niners thirty one to seven.
Speaker 1: The Niners had no chance when they're QB Rock Purdy
Speaker 1: heart his elbow and then his backup Josh Johnson went
Speaker 1: into concussion protocols, so they had to bring Purdy back,
Speaker 1: but he couldn't throw a pass and they go down
Speaker 1: in the NFC Championship Game for the second year in
Speaker 1: a row. After their twelve game winning streak came to
Speaker 1: an end. The Bengals ten games streak end in Chiefs
Speaker 1: Avenge three straight losses to Cincinnati, included one in overtime
Speaker 1: in last year's NFC title game. This one looked to
Speaker 1: be headed ot but Case in the final minute had
Speaker 1: a long punt returned. The Bengals committed a costly penalty
Speaker 1: and tied at twenty. It was time for a championship
Speaker 1: winning field goal Prrison Butker. The biggest kick of his
Speaker 1: Chiefs life. Placement is down. Butcker's kick us out. The
Speaker 1: spinning kick high, funny in the air as God, God, God,
Speaker 1: it's Cincinnati called time out. They did not, They did not,
Speaker 1: They did not. It's a field goal for forty five
Speaker 1: yards by Harrison Butker. He traded call Patrick Mahomes bothered
Speaker 1: by an ankle in dream, but he's still through for
Speaker 1: three hundred and twenty six yards. That's Garden st Johnson
Speaker 1: nearly lost to Lowly Georgetown pulled out a seventy seventy
Speaker 1: three win. Hoyas have lost thirty of their last thirty one.
Speaker 1: In the Big East. Novak Djokovic is tan Tha. Australian
Speaker 1: Open title gives him twenty two Grand slams now tied
Speaker 1: the Raphael the daw john Sta actually were Bloomberg Sports
Speaker 1: live from coast to coast, from New York to San Francisco,
Speaker 1: Boston to Washington, d C. Nationwide on Sirius xamp, the
Speaker 1: Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 1: Good morning, I'm Nathan Hagar, as we get ready to
Speaker 1: kick off a very busy week for central bank decisions
Speaker 1: in the US and around the world, as well as earnings,
Speaker 1: with more than a hundred companies in the SP five
Speaker 1: hundred reporting this week. It's gonna look at this market now.
Speaker 1: We're joined by Dennis Gartman, the chairman of the University
Speaker 1: of Akron Endowment Investment Committee and the former publisher of
Speaker 1: the Gartman Letter. Dennis, Good morning. We are seeing futures
Speaker 1: af firmly in the red this morning. Is this the
Speaker 1: peak of the January rally? It may well be time,
Speaker 1: shall tell I had been various of style basically since
Speaker 1: January of last year, and about four weeks ago I
Speaker 1: started to turn quietly, marginally, modestly slightly bullish of of equities.
Speaker 1: But I have to admit that today's action looks really
Speaker 1: quite horrific to be to be blunt, and we may
Speaker 1: well have seen the to the peak. Everybody's looking forward
Speaker 1: to I shouldn't stay forward. Everybody's looking to the FEDS
Speaker 1: decision this week. Right now. That consensus is the FED
Speaker 1: is going to raise the overnight FED funds raised by
Speaker 1: twenty five basis points. I have a sneaky suspicion they'll
Speaker 1: probably go by fifty. But time shall tell. But we
Speaker 1: have a you had a strong rally since October last year.
Speaker 1: We found some support for the S and P, we
Speaker 1: found some support for the NASDAC, but the rally had
Speaker 1: has probably exhausted itself. So in my own account, I'm
Speaker 1: I'm marginally long, about ten net long, and I'm probably
Speaker 1: gonna start taking some some safety against that this morning.
Speaker 1: And and and put in some derivatives to hedge my position.
Speaker 1: You said there's a pond stability that the FED could
Speaker 1: go fifty basis points. What makes you think that? The
Speaker 1: language coming from Mr Powell, he's been very consistent. We'll see.
Speaker 1: I was one of the first people to say that
Speaker 1: the FED was going to take greats towards five percent.
Speaker 1: I said that almost fourteen months ago. And the fact
Speaker 1: that that we raised seventy five basis points for the
Speaker 1: last three or four meetings. Uh, the odds of them
Speaker 1: going only twenty five, I think are relatively slim. Time
Speaker 1: shall tell, we'll see. The set is nowhere near dune
Speaker 1: tightening monetary policy at this point, and we need to
Speaker 1: pay more attention to what they're doing to their balance
Speaker 1: sheet is still above eight trillion dollars. It needs to
Speaker 1: get down to four or four point to four to
Speaker 1: five trillion over the course of the the next year or two.
Speaker 1: And that's to me even more important than what they
Speaker 1: do with the overnight said funds rate. Is it more
Speaker 1: important for equity valuations? What makes them more important the
Speaker 1: fact that the Fed will be, has been, and shall
Speaker 1: continue to be taking liquidity out of the market for
Speaker 1: a protracted period of time. They raised the over their
Speaker 1: their balance sheet from what nine million dollars to nine
Speaker 1: trillion dollars. That took almost a decade to accomplish that task.
Speaker 1: It's going to take them a long period of time
Speaker 1: to resolve that to get that balance sheet back to
Speaker 1: four to five trillion dollars instead, which would still be
Speaker 1: a top heavy balance sheet. But the fact that they're
Speaker 1: taking the liquidity that had sponsored the great bull market
Speaker 1: that we had two years ago. Uh that that liquidity
Speaker 1: is being taken away. That's the one caveat that you
Speaker 1: have to be concerned about if you're an overt bowl,
Speaker 1: as I said. As I said, I'm marginally bullish, have
Speaker 1: been for the past three or four weeks, but today's
Speaker 1: action does look deleterious, looks detrimental, looks a little suspicious,
Speaker 1: and I'm going to be taking some protection this morning.
Speaker 1: Is the policy moves that the FED is making now?
Speaker 1: Is that the right prescription for the inflation that we've
Speaker 1: seen so far is the Fed possibly hiking into a recession.
Speaker 1: The Fed is almost certainly hiking into a recession. And
Speaker 1: I think that's actually the right thing to that. I
Speaker 1: think they're taking the right the right course of action.
Speaker 1: The question shall be where how far will they take
Speaker 1: the overnight said funds right to reach the terminal rate
Speaker 1: as we now call it. I think they want to
Speaker 1: get it to five and a quarter percent, and then
Speaker 1: even even once they get there, they won't be cutting rates.
Speaker 1: They won't be easy monetary policy. They won't be making
Speaker 1: these long forecasting pivot for a long period of time,
Speaker 1: probably not into before they actually begin to move right
Speaker 1: slower again. So I think they're doing the right thing. Well,
Speaker 1: what's that going to mean for equity valuations if we
Speaker 1: do see that kind of tightening go forward, all things
Speaker 1: being otherwise equal, Once you get a bounce, which maybe
Speaker 1: that's what we've seen since from from the lows in
Speaker 1: October to the highs of last week. Maybe that's the
Speaker 1: fact that we we had a nice technical bounce and
Speaker 1: and the fact that they're going to be taking liquidity
Speaker 1: away from the market should be deltarious to share prices.
Speaker 1: So I'm I'm on the edge right now. As I said,
Speaker 1: I was marginally bullish, and the operative ward here is
Speaker 1: marginally Uh. Time shall tell. But I'm not at all
Speaker 1: happy with what I'm seeing this morning, And as I said,
Speaker 1: I'm gonna be taking some some derivative positions to hedge
Speaker 1: my position and get back to neutral. I'm not overly bullish,
Speaker 1: I'm marginally so and I and I feel a little
Speaker 1: discomfort this morning watching this, watching red across the board,
Speaker 1: in bonds, in stocks, in the dollar, uh, in gold.
Speaker 1: So we may have seen a little change here. This
Speaker 1: is Bloomberg Daybreak today, your morning brief on the stories
Speaker 1: making news from Wall Street to Washington and beyond. Look
Speaker 1: for us on your podcast feed at six am Eastern
Speaker 1: each morning, on Apple, Spotify, and anywhere else you get
Speaker 1: your podcasts. You can also listen live each morning starting
Speaker 1: at five am Wall Street Time on Bloomberg eleven three
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Speaker 1: Our flagship New York station is also available on your
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Speaker 1: news you need to start your day right here on
Speaker 1: Bloomberg Daybreak