WEBVTT - Powell Talks Rates; Turkey's Historic Election

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. Good morning, I'm John

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

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<v Speaker 1>following today, and.

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<v Speaker 2>Karen the ryce and futures. And that record for gold

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<v Speaker 2>comes as we kick off the second quarter. So also

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<v Speaker 2>the first time. Markets are reacting to two important events

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<v Speaker 2>on Friday when they were closed for the Good Friday holiday. First,

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<v Speaker 2>the Fed's preferred gauge of underflying inflation cool last month

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<v Speaker 2>after an even larger increase than previously reported in January.

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<v Speaker 2>And then j Pal spoke during a San Francisco Fed

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<v Speaker 2>Bank event the Fed she are reacting to the PCEE

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<v Speaker 2>deflator report and reiterated his outlook on rate cuts.

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<v Speaker 3>February is lower, but it's not as low as most

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<v Speaker 3>of the good readings we got in the second half

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<v Speaker 3>of last year. But it's definitely more along the lines

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<v Speaker 3>of what we want to see. So what we said

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<v Speaker 3>is that we don't see it as likely to be

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<v Speaker 3>appropriate that we would begin to reduce interest rates until

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<v Speaker 3>the Committee, the Feller Open Market Committee is confident that

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<v Speaker 3>inflation is moving down to two percent on a sustained basis.

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<v Speaker 2>Fed cheer Jay pounces. He also wants to shrink the

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<v Speaker 2>balance sheet more without disruption.

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<v Speaker 1>Well John reactions still pouring into Friday's two major events.

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<v Speaker 1>Sarah House, as senior economist at Wells.

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<v Speaker 4>Fargo, ultimately we heard that right now Chair Pal doesn't

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<v Speaker 4>feel like they need to be in a hurry with

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<v Speaker 4>cutting rates. It is a big decision, as he espoused

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<v Speaker 4>multiple times throughout the conversation. But what we heard time

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<v Speaker 4>and again was that he views the economy as strong

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<v Speaker 4>right now, and particularly the labor market being in a

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<v Speaker 4>good place, which does seem to afford them some time

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<v Speaker 4>to see if inflation can come down a bit further

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<v Speaker 4>in the months ahead.

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<v Speaker 1>Well As Fargo's senior economist Sarah House, does expect rate

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<v Speaker 1>cuts to begin in June.

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<v Speaker 2>The next big economic report for the investors Karen comes

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<v Speaker 2>on Friday. That's with the jobs report for the month

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<v Speaker 2>of March, and according to at Bloomberg survey of economists,

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<v Speaker 2>payrolls are seen increasing by at least two hundred thousand,

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<v Speaker 2>four or fourth straight month. The average hourly earnings are

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<v Speaker 2>projected to climb four point one percent from the same

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<v Speaker 2>month last year, and that's the smallest anel advance since

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<v Speaker 2>mid twenty twenty one oh.

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<v Speaker 1>We want to turn to politics overseas now John. In

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<v Speaker 1>an historic defeat for Turkish President Rejip Tayev Erdowan, Turkey

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<v Speaker 1>state broadcaster TRT is reporting the country's main opposition party

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<v Speaker 1>defeated the Airdiwan's AK party in municipal elections for the

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<v Speaker 1>first time since he took power more than two decades ago.

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<v Speaker 1>Airediwan told supporters his administration will continue addressing Turkey's pressing

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<v Speaker 1>economic issues.

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<v Speaker 5>He has we will focus more on urgent issues of

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<v Speaker 5>our country, especially the revival of the earthquake zone and

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<v Speaker 5>solving our economic problems.

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<v Speaker 1>And Turkish President Erdiwan said in March that this election

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<v Speaker 1>would be his final, after he was elected to a

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<v Speaker 1>third presidential term last year. Airdiwan has also said this

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<v Speaker 1>result won't amper his economic plans. The Turkish president has

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<v Speaker 1>faced backlash from voters as the country experiences rampant inflation

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<v Speaker 1>and the highest borrowing costs since he swept power two

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<v Speaker 1>decades ago. He's allowed Turkey's central Bank to raise the

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<v Speaker 1>key interest rate to fifty percent, but has failed to

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<v Speaker 1>reverse the trajectory of price increases and has lowered consumer sentiment.

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<v Speaker 1>Dealira weakening and early trading.

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<v Speaker 2>Well back here in the US, when Congress comes back

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<v Speaker 2>from Easter break, aid for Ukraine is on the top

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<v Speaker 2>of the to do list. Let's get more from Bloomberg's

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<v Speaker 2>Ed Baxter.

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<v Speaker 6>High Speaker Mike Johnson has promised to bring it to

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<v Speaker 6>the floor and Congress from Mike Turner on CBS has

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<v Speaker 6>heard on Bloomberg says he expects it to move quickly.

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<v Speaker 7>The Speaker has made very clear statements that when we

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<v Speaker 7>get back, it's the next top agenda after having just

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<v Speaker 7>passed all the bills that fund the federal government. I

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<v Speaker 7>believe this is going to have overwhelming support in Congress,

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<v Speaker 7>and we'll put a bill on the President's desk.

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<v Speaker 6>Johnson could very well face an oust move, as it

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<v Speaker 6>has already been introduced by congress Wan Marjorie Taylor. Green

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<v Speaker 6>Democrats have said they would likely save Johnson if Ukraine

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<v Speaker 6>aid passes at Baxter Bloomberg.

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<v Speaker 1>Radio Right, and thanks now to the latest on the

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<v Speaker 1>bridge collapse in Baltimore. Ports along the East Coast are

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<v Speaker 1>modifying their operations to take in more cargo. Economists say

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<v Speaker 1>they broadly expect the fallout from the disaster to be

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<v Speaker 1>contained as other ports work longer hours to take up

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<v Speaker 1>the slack. Despite that, Transportation Secretary Peat Buddha Judge says

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<v Speaker 1>there's no timeline yet for reopening the Baltimore Channel.

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<v Speaker 8>It's not just that you have to remove the wreckage,

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<v Speaker 8>it's that you have to do it in a way

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<v Speaker 8>that doesn't cause portions of the bridge that are there

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<v Speaker 8>across the water to shift. They've been under a lot

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<v Speaker 8>of compression and tension. They could behave almost like a

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<v Speaker 8>spring if they are not expertly managed.

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<v Speaker 1>Transportation Secretary peat Buddha Judge says the reopening the reopening

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<v Speaker 1>of the ports safely is a major priority. He made

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<v Speaker 1>the comments on CBS's Face the Nation. You can catch

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<v Speaker 1>the program's Sunday afternoons right here on Bloomberg Radio.

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<v Speaker 2>All right, thanks Karen. A big data breach has been

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<v Speaker 2>discovered at one of the country's largest telephone operators. We

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<v Speaker 2>get details in this report from Bloomberg's Jeff Bellinger.

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<v Speaker 5>At and T says personal data from about seventy three

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<v Speaker 5>million current and past account holders was leaked onto the darkweb.

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<v Speaker 5>The company says the data, leaked about two weeks ago,

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<v Speaker 5>includes personal information such as social security numbers and appears

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<v Speaker 5>to be from twenty nineteen or earlier. The source of

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<v Speaker 5>the data is still being investigated, and it is not

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<v Speaker 5>known whether it came from the company or a vendor.

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<v Speaker 5>AT and T says it has reset the pass codes

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<v Speaker 5>of about seven point six million account holders. AT and

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<v Speaker 5>T is the nation's third largest retail wireless carrier, behind

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<v Speaker 5>Verizon and T Mobile. In February, the company experienced a

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<v Speaker 5>widespread outage that took hours to resolve, prompting an investigation

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<v Speaker 5>by the federal government. Jeff Bellinger Bloomberg Radio.

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<v Speaker 2>Thanks Jeff as sure as of AT and T down

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<v Speaker 2>almost two percent in early training.

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<v Speaker 1>On Asia, John A private measure of China's manufacturing expanded

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<v Speaker 1>in March, and Bloomberg's Brian Curtis has more from Hong Kong.

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<v Speaker 9>The Taishien Manufacturing PMI rose to fifty one point one,

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<v Speaker 9>the highest in more than a year. That was up

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<v Speaker 9>from fifty point nine in February, and it adds to

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<v Speaker 9>signals that the industrial side of the economy is stabilizing.

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<v Speaker 9>The official PMI released on Sunday also showed activity expanding

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<v Speaker 9>last month. That was for the first time since September,

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<v Speaker 9>but home sales dragged the value of sales dropping forty

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<v Speaker 9>six percent from a year earlier, and that's keeping consumers

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<v Speaker 9>at bay in Hong Kong. Brian Curtis, Bloomberg Radio.

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<v Speaker 1>All right, Brian, thank you. It it's time now for

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<v Speaker 1>a look at some of the other stories making news

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<v Speaker 1>in New York and around the world, and for that

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<v Speaker 1>were joined by Bloomberg's Michael Barr. Michael, good morning, Good.

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<v Speaker 10>Morning, Karen. Israeli Prime Minister Benjamin det Yahoo is undergoing

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<v Speaker 10>surgery for hernia as anger mounts against his failure to

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<v Speaker 10>bring home the hostage is still held by Hamas families

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<v Speaker 10>of the hostages joined thousands who demonstrated in Jerusalem demanding

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<v Speaker 10>a deal to return them home. Horns blared in the

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<v Speaker 10>largest demonstration seen so far held in Jerusalem since the

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<v Speaker 10>war began. About one hundred thousand people were in the streets,

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<v Speaker 10>with anti government protesters and many families of the hostages

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<v Speaker 10>now joining forces. Here in the US, the unfolding human

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<v Speaker 10>catastrophe in Gaza is dividing the Democratic Party. The Biden

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<v Speaker 10>administration has moved in recent weeks to fulfill agreements to

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<v Speaker 10>ship more fighter jets and two thousand pound bombs to

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<v Speaker 10>Israel while still waiting for assurances from NET and Yahoo

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<v Speaker 10>not to invade Rafa inside Gaza and to increase aid shipments. However,

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<v Speaker 10>Maryland Democratic Senator Chris van Holland criticizes the way the

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<v Speaker 10>Biden administration is handling Israel's war in Gaza.

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<v Speaker 8>Net Yahoo continues to essentially give the finger to the

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<v Speaker 8>President the United States, and we're sending more bombs.

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<v Speaker 1>That doesn't make sense.

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<v Speaker 10>Senator Van Holland spoke on ABC's This Week Heard Sundays

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<v Speaker 10>on Bloomberg. Pope Francis, recovering from respiratory problems, led about

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<v Speaker 10>sixty thousand people in Easter celebrations to make a strong

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<v Speaker 10>appeal for a ceasefire in Gaza and a prisoner swap

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<v Speaker 10>between Russia and Ukraine. Francis presided over Easter Sunday Mass

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<v Speaker 10>in Saint Peter's Square Church. Services and masses were held

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<v Speaker 10>across Baltimore on Easter Sunday to remember those who died

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<v Speaker 10>in the collapse of the Francis Scott Key Bridge. Reverend

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<v Speaker 10>Akoe Walker at Sacred Heart of Jesus Church remember the

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<v Speaker 10>six construction crew workers who were on the bridge and

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<v Speaker 10>presumed dead.

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<v Speaker 8>Yes, we can rebuild a bridge, but we also have

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<v Speaker 8>to look at the way in which migrant workers are.

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<v Speaker 9>Treated on how best we can improve their situation.

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<v Speaker 11>As they come to the United States of America to

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<v Speaker 11>make the United States of America better.

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<v Speaker 5>Please.

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<v Speaker 10>Two other workers survived New York. A fire in a

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<v Speaker 10>Brooklyn church during Easter Sunday services prompted dozens of worshippers

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<v Speaker 10>to flee the burning building. About one hundred and fifty

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<v Speaker 10>people were worshiping in Our Lady of the Rosary of

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<v Speaker 10>Pompeii when smoke billowed in from a fire in the

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<v Speaker 10>rectory attached to the rear of the church. This man

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<v Speaker 10>was one of the worshippers.

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<v Speaker 9>Everything to go black, so everybody get up, get get up,

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<v Speaker 9>so everybody get all fed, running and everybody.

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<v Speaker 10>A closed door had kept the fire from spreading from

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<v Speaker 10>the rectory into the church itself. Fortunately there were no

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<v Speaker 10>serious injuries. Global News twenty four hours a day and

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<v Speaker 10>whenever you want it with the Bloomberg News Now Michael

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<v Speaker 10>Barr and this is Bloomberg Karen.

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<v Speaker 1>Sorry, Michael Barr, thank you time now for the Bloomberg

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<v Speaker 1>Sports Update, brought to you by Tri State Audi. Here's

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<v Speaker 1>John stash hour, John.

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<v Speaker 11>Thanks Karon and CAA tournament. Four teams left headed next

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<v Speaker 11>week into Phoenix Peril one seeds, You Come and Produe

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<v Speaker 11>a four seed in Alabama and Cinderella and S an

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<v Speaker 11>eleven seed, a team that finished in tenth place in

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<v Speaker 11>the ACC surprisingly won the tournament. That's how they got

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<v Speaker 11>an NCAA invite, and they wins have continued. The wolf

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<v Speaker 11>Pack upset Duke, just as they did at the ACC

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<v Speaker 11>tourny seventy six sixty four, DJ burns twenty nine points.

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<v Speaker 11>Per Due got forty from its big man Zachi Eed.

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<v Speaker 11>He got by Tennessee seventy two to sixty six. The

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<v Speaker 11>Bals got thirty seven in defeat. From there, All American

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<v Speaker 11>Dalton connect NC State women also going to the final

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<v Speaker 11>four and upset of their own, beating top seed in Texas,

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<v Speaker 11>South Carolina for the second UNI row will bring a

0:10:32.640 --> 0:10:35.079
<v Speaker 11>thirty six to ohero record to the Final four. At

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<v Speaker 11>the Guard nixt to a ten point lead to the

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<v Speaker 11>fourth quarter, lost by one to Oklahoma City, won thirteen

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<v Speaker 11>one to twelve. Shay gilgis Alexander who won it for

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<v Speaker 11>the thunder, scoring with under two seconds left at Barkley's

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<v Speaker 11>forty points for thirty nine year old Lebron James. Lakers

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<v Speaker 11>beat the Nets one sixteen, one oh four. The Yankees

0:10:51.240 --> 0:10:53.120
<v Speaker 11>are four to oh. It's only the fourth time in

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<v Speaker 11>seventy four years they have started a season like that.

0:10:56.040 --> 0:10:59.000
<v Speaker 11>Juan Soto big part in all four wins in Houston.

0:10:59.040 --> 0:11:00.480
<v Speaker 11>He was at the plate with two outs of the

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<v Speaker 11>ninth to eight of a tie game.

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<v Speaker 12>There goes tours?

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<v Speaker 5>The third fish line pasent whatlve field? How do I

0:11:06.760 --> 0:11:10.199
<v Speaker 5>like that? Taurus scores? The Yankees take a four to

0:11:10.280 --> 0:11:12.439
<v Speaker 5>three lead. Oh is he good?

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<v Speaker 1>Ho? No?

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<v Speaker 5>We love Sodo.

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<v Speaker 11>Wf an what's not to love? Soto hitting five twenty nine.

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<v Speaker 11>The Mets first zero and three start in a decade

0:11:20.880 --> 0:11:23.600
<v Speaker 11>in Milwaukee. One again at City Field, four to one,

0:11:23.679 --> 0:11:26.079
<v Speaker 11>red Sox one in Seattle, Nationals gave up three in

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<v Speaker 11>the ninth, lost in Cincinnati. Yonick Center won the tennis

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<v Speaker 11>in Miami. John stash Thatward Bloomberg Sports Karen.

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<v Speaker 1>John, all right, John, thank you, And futures are at

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<v Speaker 1>rising this morning, S and P. Futures up a third

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<v Speaker 1>of up percent or twenty points down. Futures up three

0:11:39.360 --> 0:11:41.959
<v Speaker 1>tenths of up percent or one hundred eleven points, Nasdaq

0:11:42.040 --> 0:11:44.960
<v Speaker 1>futures up half percent or one hundred points, and the

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<v Speaker 1>ten year Treasury up three thirty seconds. They yelled four

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<v Speaker 1>point one eight percent.

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<v Speaker 12>Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

0:11:55.920 --> 0:11:58.800
<v Speaker 12>and around the world on Bloomberg dot Com and the

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<v Speaker 12>Bloomberg Business app. This is Bloomberg Daybreak.

0:12:02.760 --> 0:12:05.640
<v Speaker 2>And it's fine fourteen Wall Street. This morning marks the

0:12:05.679 --> 0:12:09.160
<v Speaker 2>first day of trading since we received the fans preferred

0:12:09.240 --> 0:12:13.960
<v Speaker 2>gauge of underlying inflation, that's the Core Personal Consumption Expenditures Index.

0:12:14.320 --> 0:12:17.200
<v Speaker 2>We also got comments from Jay Powell on Friday. Right now,

0:12:17.280 --> 0:12:19.400
<v Speaker 2>let's get you set up for the trading day, and

0:12:19.440 --> 0:12:22.959
<v Speaker 2>I'm happy to say we're joined in studio by Lori Calvacina,

0:12:22.960 --> 0:12:26.400
<v Speaker 2>ahead of US Equity Strategy at RBC Capital Market. It's

0:12:26.480 --> 0:12:28.360
<v Speaker 2>pleasure to see you. Thanks for being with us, Thanks

0:12:28.360 --> 0:12:32.560
<v Speaker 2>for having me Core PCE cooled. I guess that's the takeaway.

0:12:33.360 --> 0:12:34.960
<v Speaker 2>Is this what traders have been waiting for?

0:12:35.360 --> 0:12:37.400
<v Speaker 13>So Look, I don't think there are any major surprises

0:12:37.400 --> 0:12:39.840
<v Speaker 13>here from my end. I mean, we've generally been looking

0:12:39.840 --> 0:12:43.760
<v Speaker 13>for a moderation and inflation At RBC, our guys cautioned

0:12:43.800 --> 0:12:46.200
<v Speaker 13>me very early, you know, in the year, late last year,

0:12:46.200 --> 0:12:47.800
<v Speaker 13>that there are going to be some bumps in the road.

0:12:47.880 --> 0:12:50.000
<v Speaker 13>And for now the thesis still seems to be intact,

0:12:50.000 --> 0:12:51.760
<v Speaker 13>and our guys still think we're headed for June.

0:12:51.640 --> 0:12:55.200
<v Speaker 2>Cuts, June cuts and what after that? How many cuts

0:12:55.280 --> 0:12:55.600
<v Speaker 2>this year?

0:12:55.679 --> 0:12:58.240
<v Speaker 13>So we originally had been looking for five as a house.

0:12:58.559 --> 0:13:01.800
<v Speaker 13>They've dialed it down now to three. I will say,

0:13:01.880 --> 0:13:03.880
<v Speaker 13>our guys were never in the March camp, so I

0:13:03.880 --> 0:13:06.120
<v Speaker 13>think we've had less distance to travel to get to

0:13:06.120 --> 0:13:08.800
<v Speaker 13>where our current assumptions are. So we haven't really been

0:13:09.160 --> 0:13:11.520
<v Speaker 13>you know, overly, you know, kind of negative reacting to

0:13:11.559 --> 0:13:13.760
<v Speaker 13>some of the negative adjustments that have happened, kind of

0:13:13.760 --> 0:13:16.560
<v Speaker 13>the dialing down of expectations. But they think the FED

0:13:16.600 --> 0:13:18.240
<v Speaker 13>wants to get started and then we'll go slow.

0:13:18.720 --> 0:13:21.600
<v Speaker 2>The FED has a gigantic balance sheet. They're starting to

0:13:21.640 --> 0:13:24.560
<v Speaker 2>trim it. Should we we be worried about that? Will

0:13:24.559 --> 0:13:26.920
<v Speaker 2>that have much of an impact in markets? Or can

0:13:26.960 --> 0:13:28.880
<v Speaker 2>they handle that in such a way that it's going

0:13:28.960 --> 0:13:30.359
<v Speaker 2>to have a minimal impact?

0:13:30.480 --> 0:13:32.559
<v Speaker 13>You know, It's funny. I'm a little bit of a

0:13:32.640 --> 0:13:35.040
<v Speaker 13>data nerd, and we had done some analysis trying like

0:13:35.120 --> 0:13:37.600
<v Speaker 13>that lot. I know, I know, it's kind of my thing,

0:13:37.679 --> 0:13:39.720
<v Speaker 13>but you know, there had been a period of time

0:13:39.800 --> 0:13:42.160
<v Speaker 13>post GFC where the FED balance sheet really seemed to

0:13:42.160 --> 0:13:44.000
<v Speaker 13>be driving the pe multiple in the S and P

0:13:44.120 --> 0:13:46.880
<v Speaker 13>five hundred that really broke down last year. I think

0:13:46.920 --> 0:13:49.040
<v Speaker 13>the FED has done a good job of sort of pushing,

0:13:49.160 --> 0:13:50.880
<v Speaker 13>you know, the balance sheet to sort of a side.

0:13:50.920 --> 0:13:53.160
<v Speaker 13>From an equity market perspective, it's just not as in

0:13:53.200 --> 0:13:54.680
<v Speaker 13>focus and as much of a driver as.

0:13:54.600 --> 0:13:57.080
<v Speaker 2>It used to be and to the quarter much in

0:13:57.160 --> 0:14:00.280
<v Speaker 2>terms of rebalancing and portfolios and how how is that

0:14:00.360 --> 0:14:01.160
<v Speaker 2>impacting things?

0:14:01.520 --> 0:14:02.120
<v Speaker 12>So look, I.

0:14:02.080 --> 0:14:03.760
<v Speaker 13>Think at the end of the quarter, you know, we

0:14:03.800 --> 0:14:04.920
<v Speaker 13>saw some funny moves.

0:14:05.440 --> 0:14:05.640
<v Speaker 1>You know.

0:14:05.720 --> 0:14:07.880
<v Speaker 13>From my perspective, what I thought was interesting was that

0:14:07.920 --> 0:14:10.560
<v Speaker 13>the Rustle two thousand had a strong finish, and so

0:14:10.720 --> 0:14:13.720
<v Speaker 13>the idea that we've really been looking for signs that

0:14:13.800 --> 0:14:16.440
<v Speaker 13>the leadership rotation in the market is going to get underway.

0:14:16.440 --> 0:14:18.400
<v Speaker 13>To me, that was the most sort of interesting kind

0:14:18.440 --> 0:14:20.080
<v Speaker 13>of short term stuff we saw at the end of

0:14:20.120 --> 0:14:23.200
<v Speaker 13>the quarter. And I think this market is itching to rotate.

0:14:23.320 --> 0:14:25.880
<v Speaker 13>Anything I put out on the mag seven, I feel

0:14:25.880 --> 0:14:29.280
<v Speaker 13>like that's the chart everybody looks for. I think there's

0:14:29.520 --> 0:14:31.360
<v Speaker 13>a lot of you know, sort of concern that we've

0:14:31.360 --> 0:14:33.840
<v Speaker 13>had some false starts on that leadership rotation, But I

0:14:33.840 --> 0:14:36.080
<v Speaker 13>think investors are ready to do something different. So that's

0:14:36.080 --> 0:14:38.160
<v Speaker 13>what I'd be looking for going leadership rotation.

0:14:38.280 --> 0:14:39.320
<v Speaker 2>That's a healthy sign for.

0:14:39.320 --> 0:14:41.480
<v Speaker 13>Marcus, I think it is. I think we're due for

0:14:41.560 --> 0:14:43.720
<v Speaker 13>one big catch up trade in the market from you know,

0:14:43.840 --> 0:14:46.320
<v Speaker 13>kind of everything outside of the MAG seven, whether it's

0:14:46.360 --> 0:14:48.520
<v Speaker 13>small cap, whether it's you know, kind of the non

0:14:48.600 --> 0:14:51.200
<v Speaker 13>tech sectors. If you look at the PE and the

0:14:51.200 --> 0:14:54.240
<v Speaker 13>market X the MAG seven, it's trading around sixteen times.

0:14:54.280 --> 0:14:56.760
<v Speaker 13>The MAG seven's been trading between twenty seven and twenty

0:14:56.760 --> 0:14:59.520
<v Speaker 13>eight times on a forward PE and kind of a

0:14:59.560 --> 0:15:02.400
<v Speaker 13>round pas peak. So I think there's room for the

0:15:02.400 --> 0:15:04.280
<v Speaker 13>rest of the market to kind of catch up. I'm

0:15:04.280 --> 0:15:06.240
<v Speaker 13>not saying we have to get quite that over valued,

0:15:06.280 --> 0:15:07.920
<v Speaker 13>but there's room for the rest of the market to

0:15:07.920 --> 0:15:08.400
<v Speaker 13>make a move.

0:15:08.600 --> 0:15:12.160
<v Speaker 2>Do you see conflicting cross currency in markets? What are they?

0:15:12.200 --> 0:15:14.400
<v Speaker 13>If you do so, I would say on the positive side,

0:15:14.440 --> 0:15:17.720
<v Speaker 13>GDP forecasts have moved up tremendously since the start of

0:15:17.760 --> 0:15:19.720
<v Speaker 13>the year, kind of moved us back into a range

0:15:19.720 --> 0:15:22.880
<v Speaker 13>that's typically favorable for stocks. From one you know, kind

0:15:22.920 --> 0:15:25.120
<v Speaker 13>of a sluggish range that was anticipated to start the

0:15:25.200 --> 0:15:27.280
<v Speaker 13>year as lousy for stocks. We've moved out of that.

0:15:27.640 --> 0:15:31.040
<v Speaker 13>But sentiment is pretty enthusiastic right now, whether you're looking

0:15:31.080 --> 0:15:35.000
<v Speaker 13>at AAII survey or the weekly CFTC data. So I

0:15:35.000 --> 0:15:37.040
<v Speaker 13>do expect to get a pullback at some point in time,

0:15:37.080 --> 0:15:38.440
<v Speaker 13>but you know, I've been looking for one for a

0:15:38.440 --> 0:15:39.800
<v Speaker 13>while and we haven't gotten it yet.

0:15:40.000 --> 0:15:43.040
<v Speaker 2>You're a little more neutral on risk. Does that indicate

0:15:43.080 --> 0:15:45.800
<v Speaker 2>some degree of bearishness on your part? That's thirty seconds.

0:15:45.880 --> 0:15:48.240
<v Speaker 13>Yeah, I would say, Look, we're not in the bear camp.

0:15:48.280 --> 0:15:50.280
<v Speaker 13>We do feel like the market is fairly priced at

0:15:50.280 --> 0:15:52.280
<v Speaker 13>this particular moment, though, all right, just give.

0:15:52.160 --> 0:15:54.960
<v Speaker 2>Me a preview of earnings. Ten seconds.

0:15:55.440 --> 0:15:57.400
<v Speaker 13>So, look, it's going to be all about margins and

0:15:57.440 --> 0:16:01.120
<v Speaker 13>how good companies are at expanding them. We're modeling flat,

0:16:01.120 --> 0:16:02.359
<v Speaker 13>but there's room for upside.

0:16:02.560 --> 0:16:05.600
<v Speaker 2>Okay, And your year end price target for the S

0:16:05.680 --> 0:16:07.960
<v Speaker 2>and P five and I'll throw one more in for you, lord.

0:16:07.760 --> 0:16:09.600
<v Speaker 5>Okay, what is it.

0:16:09.680 --> 0:16:12.240
<v Speaker 13>We're at fifty three hundred and we just nudged that up.

0:16:12.320 --> 0:16:14.360
<v Speaker 13>Some of our models can get us to around fifty

0:16:14.400 --> 0:16:15.920
<v Speaker 13>four hundred or a little bit higher.

0:16:16.320 --> 0:16:20.080
<v Speaker 2>Glory Calvesina ahead of US Equity Strategy at RBC Capital

0:16:20.120 --> 0:16:23.400
<v Speaker 2>Markets in studio with us. This morning, you're listening to

0:16:23.400 --> 0:16:26.800
<v Speaker 2>Bloomberg Daybreak Today, your morning brief on the story's making

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