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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Good morning.

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Speaker 3: I'm Nathan Hager and I'm John Tucker. Here are these

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Speaker 3: stories we're following today.

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Speaker 4: Man.

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Speaker 5: We'll have more on the markets John in just a minute,

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Speaker 5: but we begin with US China relations. Treasury Secretary Janet

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Speaker 5: Yellen has just wrapped up four days of talks in China.

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Speaker 5: For much of her trip, Yellen's been busy scolding China

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Speaker 5: about what Washington views as excessive investment in manufacturing to

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Speaker 5: make up for a troubled property sector and weak domestic demand.

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Speaker 5: But at a news conference this morning, Yellen said relations

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Speaker 5: between the US and China are improving.

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Speaker 6: It's undeniable that the US China relationship is on a

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Speaker 6: stronger footing today than this time last year.

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Speaker 5: Still, Secretary Yellen warren the US would sanction China's banks

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Speaker 5: and exporters if they help Russia in the war against Ukraine.

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Speaker 6: I reinforced that any banks that facilitate signific and transactions

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Speaker 6: to channel military or dual use goods to Russia's defense

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Speaker 6: industrial base expose themselves to the risk of US sanctions.

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Speaker 5: And Treasury Secretary Janet Yellen announced new talks will get

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Speaker 5: underway next week with a meeting between two US China

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Speaker 5: working groups in Washington.

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Speaker 3: And sticking with geopolitics, Crude oil is declining as we

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Speaker 3: start a new trading week. It's off a five month

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Speaker 3: high after Israel said it would remove some troops from Gaza.

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Speaker 3: Israel did say the forces would recuperate and prepare for

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Speaker 3: future operations, including an offensive. Von Rafa checking oil right now,

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Speaker 3: brand the international benchmark down sixty nine cents of barrel,

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Speaker 3: still above ninety ninety forty eight a barrel.

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Speaker 5: And John is Israel apparently regroups in Gaza. One of

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Speaker 5: President Biden's key allies in the Senate says the US

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Speaker 5: should not let up when it comes to weapons support.

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Speaker 5: Democratic Senator Chris Coons of Delaware made the case to

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Speaker 5: Fox New Sunday host Martha McCallum.

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Speaker 7: It's important that we cantinue to show strong support for

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Speaker 7: the defense of Israel, that we continue to support the

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Speaker 7: Iron Dome and other ballistic missile defenses that we've jointly developed,

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Speaker 7: and that we make it clear we will defend Israel

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Speaker 7: against any Iranian proxy attack or any direct asculiar One.

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Speaker 5: And Delaware Senator Chris coon said he disagrees with House

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Speaker 5: Democrats who have called for withholding weapons transfers until an

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Speaker 5: investigation is complete into the air strike that killed seven

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Speaker 5: World Central Kitchen.

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Speaker 4: Aid workers in Gaza.

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Speaker 3: And back here in the US, the day of the

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Speaker 3: total eclipse of the sun is finally here, and Bloomberg's

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Speaker 3: ad Backster reports it certainly caught the nation's attention.

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Speaker 8: The several minutes of daytime darkness will follow a path

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Speaker 8: up through Mexico, the US and in the Canada, depending

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Speaker 8: on where you are, three to four minutes for some

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Speaker 8: an economic bonanza. One of those places the northeast of

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Speaker 8: the US. New York Governor Kathy Hochel says, along with

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Speaker 8: all the glory, though, we are.

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Speaker 6: Warning everyone the roads can only handle so much and

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Speaker 6: works expecting a high high volume of traffic before and

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Speaker 6: after the event.

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Speaker 8: And of course the perfunctory warning by now don't look

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Speaker 8: at the sun without the correct protection. ED Baxter, Bloomberg Radio.

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Speaker 5: I guess it always bears repeating, Thank you, Ed. Now

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Speaker 5: we turn to the markets and the economy. Investors are

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Speaker 5: preparing for a busy week that includes infleetion data and

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Speaker 5: the start of the first quarter earning season. Last Friday's

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Speaker 5: jobs numbers exceeded expectations for a fifth straight month, reinforcing

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Speaker 5: the Fed's view of being patient about easing interest rates.

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Speaker 5: Here's Richmond FED President Thomas Barkin.

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Speaker 9: When the economy is as strong as it is, it's

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Speaker 9: hard to feel urgency on taking rates down. Are you

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Speaker 9: going to see a dramatic weakening in the economy as

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Speaker 9: I've suggested the demand pestmits might see, or are you

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Speaker 9: going to see strength three hundred fifty three thousand jobs

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Speaker 9: a month like we apparently saw last month.

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Speaker 5: Richmond FED chief Thomas Barkin's patient stance on rate cuts

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Speaker 5: was echoed by several more FED officials last week.

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Speaker 3: And former Treasury Secretary Lanry Summers says the surgeon March

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Speaker 3: payrolls illustrates that the FED is well. Often it's an

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Speaker 3: estimate of where the neutral interest rate is. He's cautioning

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Speaker 3: against any move to lower rates in June.

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Speaker 10: Saying we don't need to know what the neutral rate

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Speaker 10: is is like saying you should drive your car on

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Speaker 10: feel without looking at the speedometer. It is just a mistake.

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Speaker 10: There's no way to judge what policy is without knowing

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Speaker 10: what would be a neutral policy.

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Speaker 3: Former Transity Secretary Larry Summers, adding that the right thing

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Speaker 3: to do is quote stick where we are for considerably longer.

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Speaker 3: Here his full conversation with David Weston on the Bloomberg

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Speaker 3: Wall Street podcast that's available on Apple, Spotify and anywhere

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Speaker 3: else you get your podcasts.

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Speaker 5: And definitely got to listen to the Wall Street Week podcast.

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Speaker 5: John Turning into company news, earning season kicks off this

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Speaker 5: week with financials, we get a pre you from Bloomberg's Charlie.

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Speaker 2: Pellett Friday, It's JP Morgan, Chase City Group, and Wells Fargo.

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Speaker 2: The reports come as US stocks trade near records Monamaha

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Speaker 2: jan Is, senior investment strategist at Edward Jones.

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Speaker 1: Broadly, our call on market leadership broadening beyond large cap

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Speaker 1: technology here in the US is driven by the fundamentals

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Speaker 1: around earnings growth we think will broaden this year beyond

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Speaker 1: just the large cap technology or growth parts of the market.

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Speaker 2: Also this week, we hear from Delta Airlines, Fast and

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Speaker 2: All and Constellation Brands in New York Charlie Pellett Bloomberg Radio.

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Speaker 3: All right, thanks Charlie, and turning overseas to Asia to

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Speaker 3: our exclusive conversation with HSBC CEO Noel Quinn. Quinn's hosting

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Speaker 3: the bank's three day inaugural Global Investments Summit in Hong Kong.

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Speaker 3: Despite a slowdown and continued economic concern in China, Quinn

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Speaker 3: tells Bloomberg that he sees opportunity in the mainland and

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Speaker 3: the broader region.

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Speaker 11: We've got a really strong wealth management business here in

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Speaker 11: Hong Kong. I want an equally strong wealth management capability

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Speaker 11: in mainland China, in Singapore, for US here and in India.

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Speaker 11: And what I really want is a platform of four

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Speaker 11: strong pillars of wealth management and in wealth management, I

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Speaker 11: include insurance, asset management, private banking, and therefore our acquisitions

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Speaker 11: are being tended to be acquiring products or distribution capability

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Speaker 11: in those markets.

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Speaker 3: HSBC CEO Nol Quinn also tells Bloomberg the bank continues

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Speaker 3: to perform extremely well across several areas as it readies

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Speaker 3: to report first quarter earnings later this month, and that

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Speaker 3: brings us to five oh seven on Wall Street. Time

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Speaker 3: down for a look at some of the other stories

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Speaker 3: making news in New York and around the world. We

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Speaker 3: say good morning to Bloomberg's Michael barn.

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Speaker 12: Good morning, John A. Scare a board at Southwest Airlines

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Speaker 12: jet taking off from Denver. Part of the engine cover

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Speaker 12: ripped off. Southwest flight thirty six ninety five. Euston bound

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Speaker 12: flight with one hundred and forty three people on board,

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Speaker 12: was forced to make an emergency landing yesterday. It was

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Speaker 12: diverted back to Denver International Airport just after takeoff. Pilot

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Speaker 12: Steve Ganyard spoke to ABC.

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Speaker 13: These lightweight aluminum coverings that you see are essentially like

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Speaker 13: the hood of your car. They allow mechanics to open

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Speaker 13: up the area around the engine itself for it, to

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Speaker 13: inspect it and to do maintenance on it.

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Speaker 12: The FAA is investigating the incident. President Joe Biden's alternative

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Speaker 12: student debt relief plan could forgive loans for as many

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Speaker 12: as twenty six million Americans. The far reaching initiative will

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Speaker 12: likely be tested by the same challenges in his original

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Speaker 12: program struck down by the Supreme Court. The measures would

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Speaker 12: apply to borrowers who meet certain criteria, including people whose

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Speaker 12: debt exceeds their original principal amount and those who qualify

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Speaker 12: for federal programs but have not been enrolled. Former President

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Speaker 12: Donald Trump says he will finally announce today when he

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Speaker 12: will announce on abortions and win they should be banned.

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Speaker 12: The announcement comes as Republican led states have ushered in

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Speaker 12: a wave of new restrictions following the Supreme Court's decision

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Speaker 12: to overturn Roe v. Wade in twenty twenty two. Meanwhile,

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Speaker 12: campaign filings indicate former President Trump is still far behind

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Speaker 12: President Biden in overall fundraising, but Trump got a big

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Speaker 12: boost over the weekend at a Palm Beach fundraiser. A

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Speaker 12: campaign official says a group of ultra wealthy donors helped

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Speaker 12: Trump rake in a whopping fifty million dollars from this event.

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Speaker 12: New York Democratic Senator Chuck Schumer says he has sent

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Speaker 12: a letter to the heads of Capitol I and Discover

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Speaker 12: with questions about a proposed merger that would create the

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Speaker 12: country's largest credit card company. Senator Schumer Warren the merger

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Speaker 12: could reduce competition and mean higher interest rates and bigger

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Speaker 12: fees for tens of millions of credit card customers.

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Speaker 14: This would be the largest credit card merger on record,

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Speaker 14: and usually when there's consolidation, the consumer pays the price.

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Speaker 12: Senator Schumer says lawmakers want to know about the potential

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Speaker 12: increase in fees and what it means for the marketplace.

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Speaker 12: Global news twenty four hours a day and whenever you

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Speaker 12: want it with the Bloomberg News. Now, I'm Michael Barr,

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Speaker 12: and this is Bloomberg. John.

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Speaker 3: All right, Michael, thank you, and time down for the

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Speaker 3: Bloomberg Sports Update. Damn for that. Good morning, John Steshower.

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Speaker 15: Good morning, Johnson. Stunning news from college basketball. Just as

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Speaker 15: Yukon and Purdue gets set to play for the national

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Speaker 15: championship tonight in Phoenix, John Calipari is said to be

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Speaker 15: finalizing a deal to leave his job as the coach

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Speaker 15: at Kentucky to take over at Arkansas. Calipari is sixty five.

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Speaker 15: He's in the Hall of Fame. He's been at Kentucky

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Speaker 15: since two thousand and nine, built up powerhouse there, although

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Speaker 15: they haven't had nearly that much success in recent years.

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Speaker 15: His team just lost in the NCAA's first round at

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Speaker 15: Arkansas Hill replays Eric Musselman, who just left to take

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Speaker 15: over at usc Calipari has said to be close with John.

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Speaker 15: I'm Tyson, a billionaire Arkansas booster and women's basketball Caitlyn

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Speaker 15: Clark was the season's top player, but South Carolina was

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Speaker 15: always the best team. In the game, Cocks capped a

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Speaker 15: thirty eight no season beating. Clark and I won the

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Speaker 15: championship game in Cleveland, eighty seven to seventy five. In

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Speaker 15: the final game of Clark's brilliant career. She scored thirty points.

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Speaker 16: Yeah, I'm sad we lost this game, but I'm also

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Speaker 16: so proud of myself. I'm so proud of my teammates.

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Speaker 16: I'm so proud of this program. There's a lot to

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Speaker 16: be proud of. But you know, there's gonna be tears.

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Speaker 16: It is sad that this is all over and this

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Speaker 16: is the last time I'm gonna put on an Iowa Jerseys.

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Speaker 15: Next stap the WNBA for her. Sunday wins for the

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Speaker 15: Mets Yankees, Nickson rangers the Mets three one at Cincinnati.

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Speaker 15: Sham and I and four relievers team on a three hitter.

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Speaker 15: The Yankees wrote at John Carlos Stanton thirty eight Grand

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Speaker 15: Slam to an eight three win at the Stadium over Toronto.

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Speaker 15: Yanks are now eight and two. Nixon Milwaukee trailed by

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Speaker 15: eleven and a half time, came back beat the Bucks one

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Speaker 15: twenty two to one. On nine Jalen Brunson scored forty

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Speaker 15: three Rangers at the Garden a four goal third period

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Speaker 15: of five to two win over Montreal. With four games

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Speaker 15: to go, Rangers have a three point leaders to try

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Speaker 15: to finish with the NHL's best regular season record. Devil's

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Speaker 15: lost in Nashville three too. The Nets lost at home

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Speaker 15: to Sacramento by thirty cel Thiks meat Portland. The Warriors

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Speaker 15: beat the Jazz, The Wizards lost. The Capital's lost in

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Speaker 15: overtime to Ottawa. Nationals and Giants both won. The Red

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Speaker 15: Sox beat the Angels twelve to two. They went seven

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Speaker 15: to three on their season opening road trip. John stasheh

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Speaker 15: Wear Bloomberg Sports, Johnny.

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Speaker 3: All right, thanks a lot, John, And futures indicate a

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Speaker 3: higher lower open on Wall Street down Futures down twenty six,

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Speaker 3: SMP Mini futures six points lower, the nansdeck futures down fourteen.

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Speaker 4: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 4: and around the world on Bloomberg dot Com and the

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Speaker 4: Bloomberg Business app. This is Bloomberg Daybreak. Good morning up,

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Speaker 4: Nathan Hager.

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Speaker 5: We are seeing some modest losses in equity futures this

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Speaker 5: morning at the start of a very busy week, including

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Speaker 5: more inflation data, the start of first quarter earning season,

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Speaker 5: and a rate decision from the European Central Bank this week.

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Speaker 5: Let's get you set for the trading week ahead. We

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Speaker 5: are joined by Dennis Gartman, the chairman of the University

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Speaker 5: of Akron Indowment Investment Committee and the former publisher of

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Speaker 5: the Gartman Letter. Dennis, it seems like we just keep

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Speaker 5: pushing back bets on what the Fed is going to

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Speaker 5: do with interest rates this year, particularly after last Fridays

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Speaker 5: once again hot jobs report. Where do you see this

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Speaker 5: market going?

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Speaker 17: I have been modestly bearished, let's call it neutral to

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Speaker 17: slightly bearish of stocks for quite some period of time,

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Speaker 17: being surprised by the strength that we've seen in the

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Speaker 17: equities market. For a while, I thought it was almost

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Speaker 17: comically laughable that it was a month ago that the

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Speaker 17: consensus was we'd have four to five cuts in the

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Speaker 17: overnight SAD funds rate. Now we're down to one or

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Speaker 17: two cuts in the overnight said funds rate. I think

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Speaker 17: soon we'll be down to zero to one cut in

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Speaker 17: the overnight said funds rate by the end of the year.

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Speaker 17: Time shall tell, But stocks have I think acted a

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Speaker 17: bit heavy in the course of the past three or

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Speaker 17: four or five days. The decline that we saw on

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Speaker 17: Thursday was I think rather deleterious to the technical reformations

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Speaker 17: on the charts. So I have been call it quietly

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Speaker 17: bearish of stocks for a while. I've been overtly and

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Speaker 17: manifestly bullets of the gold market, which has made the

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Speaker 17: new highs and has acted demonstrably stronger. So I've been

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Speaker 17: buried of stocks and bullish of gold. And for the

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Speaker 17: past several weeks that's actually been a winning for operation No.

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Speaker 5: God to say being bullish on gold certainly has been

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Speaker 5: a winning bet for the last couple of weeks. Here

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Speaker 5: may how do you explain this run that we've seen

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Speaker 5: in gold. I mean, it's been trading in record territory.

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Speaker 17: It is in the record territories. It's made new new

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Speaker 17: highs this morning. And I blame, for lack of a

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Speaker 17: better term, I blame the strength upon on golden to

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Speaker 17: a central bank buying. We've seen a lot of central

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Speaker 17: bank buying, especially by the Chinese, excuse me, over the

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Speaker 17: course of the past several months, and that's begun to

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Speaker 17: take its toll. The public is now becoming a little

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Speaker 17: bit involved in the market, not dramatically, so it was

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Speaker 17: a little disconcerting to me to see the public of

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Speaker 17: buying a gold at costco, in buying bars at costco.

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Speaker 17: That's usually a sign when the public's in that we've

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Speaker 17: run as far as we're going to take any market,

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Speaker 17: But I think we've still got a little ways to go.

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Speaker 17: It's been central bank buying thus far, and expectations that

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Speaker 17: inflation has not been beaten back, that inflationary pressures are

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Speaker 17: still extant, and we saw that with the jobs report

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Speaker 17: on Friday and the increase in non farm payrolls and

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Speaker 17: the rather substance of strength in the earnings. So it's

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Speaker 17: been the central bank buying, and I think it has

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Speaker 17: far more to go.

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Speaker 5: Dennis, We've also been seeing a pretty strong run in

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Speaker 5: the oil market as well. How much does geopolitics play

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Speaker 5: into the market outlook?

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Speaker 2: And we got about a minute left.

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Speaker 17: First of all, I've been very bullish of gold or

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Speaker 17: of crude oil until about it three or four days ago,

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Speaker 17: when the term structure began to change. Normally, in a

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Speaker 17: bull market in crude oil on up days and down days,

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Speaker 17: the front month gains upon the second third, fourth, and

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Speaker 17: fifth contracts. Going back, the vaquidation widens, and what we've

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Speaker 17: seen is the market has gone higher, the vaquidation has

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Speaker 17: begun to narrow, which I think is disconcerting. So I

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Speaker 17: was quite bullish of crude oil and now I'm neutral

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Speaker 17: to slightly barish of crude oil. We'll see how the

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Speaker 17: term structure functions. But it's been a geopolitical circumstance that

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Speaker 17: has driven crude oil prices up, and I think a

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Speaker 17: lessening of problems in the Middle East will put crude

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Speaker 17: oil prices back down. So I have been bullish on crude.

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Speaker 17: Now I'm bearished modestly, so not dramatically so because of

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Speaker 17: the change in the term structure, which has always been

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Speaker 17: a leading indicator in the crude oil market.

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Speaker 5: All right, well, we'll see where commodities and risk assets

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Speaker 5: go as we make our way through this week. Thank

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Speaker 5: you Dennis, as always a Dennis Gartman there with us

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Speaker 5: this morning, the chairman of the University of Akron and

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Speaker 5: down An Investment Committee and the former publisher of the

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