WEBVTT - Bloomberg Daybreak: January 23, 2023

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<v Speaker 1>Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg

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<v Speaker 1>Daybreak from Monday, January. Coming up this hour, Ken Griffin

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<v Speaker 1>Citadel turns out a record profit for clients. Earnings continue

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<v Speaker 1>to roll in this week, with Microsoft, Intel, and Boeing

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<v Speaker 1>heading the list. Another tech company is slashing jobs, and

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<v Speaker 1>the Justice Department finds more classified documents at President Biden's home.

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<v Speaker 1>Authority is a looking for motive and a mass shooting

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<v Speaker 1>that left ten dead outside of Los Angeles. Plus Poland

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<v Speaker 1>will ask Germany for the go ahead to send thanks

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<v Speaker 1>to Ukraine. I'm Michael blog more ahead of John stash

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<v Speaker 1>Our and sports NFL playoff victories for the Bengals and Forts.

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<v Speaker 1>The Knicks lost, the Nets and Devils both won. That's

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<v Speaker 1>All's train ahead on Bloomberg Daybreak on Bloomberg eleven three

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<v Speaker 1>on New York, Bloomberg one, Washington d C, Bloomberg one

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<v Speaker 1>oh six one, Boston, Bloomberg nine sixties and Francisco Sirius

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<v Speaker 1>x M one nine team and around the world on

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<v Speaker 1>Bloomberg Radio dot Com and via The Bloomberg Business. Good Morning,

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<v Speaker 1>I'm Nathan Hagar and I'm Amy Morris. Here are the

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<v Speaker 1>stories we're following today. Let's begin in the hedge fund space.

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<v Speaker 1>We have word of a record profit for a fund manager.

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<v Speaker 1>Let's get the latest live from Bloomberg. Steve Rappaport, Good morning, Steve,

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<v Speaker 1>Good morning, Amy and Nathan. Citadel netted sixteen billion dollars

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<v Speaker 1>for clients last year, far outpacing the rest of the industry.

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<v Speaker 1>According to estimates from l c H Investments, that Hall

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<v Speaker 1>accounts for more than seventy percent of profits generated by

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<v Speaker 1>the top twenty hedge fund firms. While hedge funds overall

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<v Speaker 1>lost two hundred eight billion last year. Citadel's fixed income,

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<v Speaker 1>tactical trading, and equities funds generated returns of more than

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<v Speaker 1>twenty one percent last year. The Wall Street Journal reports

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<v Speaker 1>the Miami based firm returns seven billion in profits to

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<v Speaker 1>investors at the start of twenty three Live in New York.

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<v Speaker 1>I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you.

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<v Speaker 1>No stock Center. This Monday, following the S and P

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<v Speaker 1>five hundreds biggest gain in two weeks, it rose one

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<v Speaker 1>point nine percent. On Friday, the tech heavy NASAC one

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<v Speaker 1>hundred had its best day since November, gaining two point

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<v Speaker 1>seven percent. Miller Taback chief market strategist Matt Mayley says,

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<v Speaker 1>we are entering a critical time for stock markets. We're

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<v Speaker 1>gonna have to see what really happens over the next

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<v Speaker 1>two weeks because that's when we really get into the

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<v Speaker 1>meat of the earning season. And one of the big things,

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<v Speaker 1>of course that everybody's been talking about it, you know,

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<v Speaker 1>our our earnings. A lot of people thinking they're gonna

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<v Speaker 1>come down quite a bit, especially the guidance. And as

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<v Speaker 1>we move into the meat of that earning season, what's

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<v Speaker 1>going to happen, Because you know, the stock market on

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<v Speaker 1>a long term basis, at you know, seventeen and a

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<v Speaker 1>half times earnings and two points three times sales, it's

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<v Speaker 1>still at the high end evaluation levels. And as Millery

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<v Speaker 1>Tabacks met mainly watches earnings, we hear from nearly nine

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<v Speaker 1>d companies in the SNP five hundred this week, including Microsoft, Intel, IBM,

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<v Speaker 1>and Boeing. Meantime, Morgan Stanley is making the bear case

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<v Speaker 1>for stocks. Chief US equity strategist Mike Wilson says earnings

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<v Speaker 1>are a major reason the bear market is not over.

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<v Speaker 1>Wilson says leading economic and earnings indicators are quota overwhelmingly

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<v Speaker 1>week and that's a dynamic equity markets are not priced for.

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<v Speaker 1>At the same time, Amy Morgan Stanley economists are sticking

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<v Speaker 1>by their call for a softish landing in the US.

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<v Speaker 1>They say even if there is a recession, it will

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<v Speaker 1>be milder than most. In a report to clients, Morgan's

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<v Speaker 1>economists say it is far too soon to declare victory

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<v Speaker 1>since higher interest rates take time to bite, but the

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<v Speaker 1>US labor markets proved stronger than anticipated and quote inflation

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<v Speaker 1>has turned down decisively, and corporate news we're getting word.

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<v Speaker 1>Activist Elliott Management has taken a multibillion dollar steak in Saleforce,

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<v Speaker 1>As Bloomberg's Dennis Pellegrini reports, the hedge fund is taking

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<v Speaker 1>advantage of recent vulnerabilities at the San Francisco company. Elliott

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<v Speaker 1>Management's move into Salesforce comes after an announcement of massive

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<v Speaker 1>layoffs and the stock plunge at the enterprise software company,

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<v Speaker 1>and Salesforce market cap is now just about a hundred

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<v Speaker 1>and fifty billion dollars. That's only about half of what

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<v Speaker 1>it was at peak. Bloomberg Intelligence says this all means

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<v Speaker 1>watch for Elliott Management to push for possibly more shared

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<v Speaker 1>by backs and more cuts in sales and mark getting costs.

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<v Speaker 1>Also could see some top level leadership changes. Jesse Cohne,

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<v Speaker 1>managing partner at Elliott, saying Elliott has a deep respect

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<v Speaker 1>for Salesforce chairman, co CEO and co founder Mark Bennioff

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<v Speaker 1>and what Bennioff has built. Denise Pellegrini Bloomberg Day Break.

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<v Speaker 1>Then these thanks and Salesforce shares are of three point

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<v Speaker 1>six percent in early trading. Another note in the tech sector,

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<v Speaker 1>Spotify is slated to be the next firm to announce layoffs.

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<v Speaker 1>Bloomberg News has learned the music streaming giants planning layoffs

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<v Speaker 1>as soon as this week. Amazon, Meta, Microsoft, and Alphabet

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<v Speaker 1>are among the biggest companies to announce staff reductions in

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<v Speaker 1>recent weeks. Elon Musk is back today for more testimony

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<v Speaker 1>and that test La securities fraud trial. Under questioning from

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<v Speaker 1>a lawyer for shareholders, Musk denied that his tweets affect

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<v Speaker 1>Tesla's stock price. The trial centers on his twenty eighteen

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<v Speaker 1>tweet about taking the electric car company private, which never materialized,

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<v Speaker 1>and one of Musk's other companies is also in the spotlight.

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<v Speaker 1>The Twitter CEO says he will revamp the size and

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<v Speaker 1>frequency of advertisements that appear on the social media platform.

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<v Speaker 1>Musk says he also plans to roll out a higher

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<v Speaker 1>priced subscription model that allows for zero ads on Twitter feeds.

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<v Speaker 1>Turning to politics, now, the controversy over classified documents back

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<v Speaker 1>in the spotlight. The Justice Department found another six items

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<v Speaker 1>containing classified information during a search of President Biden's home

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<v Speaker 1>in Wilmington, Delaware. Biden Ally, Senator Chris Coons of Delaware says,

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<v Speaker 1>the President has been cooperative from the beginning and has

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<v Speaker 1>nothing to hide. What's going to matter going forward is

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<v Speaker 1>how this is handled, and President Biden has fully and

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<v Speaker 1>promptly cooperated. Of the reason there was a search of

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<v Speaker 1>his house here in Delaware was he invited them in.

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<v Speaker 1>Senator Chris Coon's made those comments on ABC's This Week

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<v Speaker 1>Herd every Sunday on Bloomberg Radio. Still, this latest discovery

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<v Speaker 1>exacerbates an embarrassing political misstep for Biden ahead of an

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<v Speaker 1>expected re election campaign, and it dampens momentum from a

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<v Speaker 1>series of legislative victories and a better than expected Democratic

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<v Speaker 1>midterm performance. We've got one other note out of the

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<v Speaker 1>White House this morning, Amy Bloomberg News has learned Joe

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<v Speaker 1>Biden will name Jeff Z Science as his next chief

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<v Speaker 1>of staff today. Science as a former business executive who

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<v Speaker 1>was a chief architect of the president's initial COVID team.

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<v Speaker 1>He will replace Ron Klain, who will leave in the

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<v Speaker 1>coming weeks. The White House chief of staff is among

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<v Speaker 1>the most powerful figures in Washington, making Nathan thirty nine

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<v Speaker 1>degrees now in New York, rain could mix with snow,

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<v Speaker 1>but that will come later today. For now, breezy conditions,

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<v Speaker 1>we're gonna go up to forty five degrees. Time Now

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

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<v Speaker 1>news in New York and around the world. For that,

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<v Speaker 1>we're joined by Bloomberg's Michael Barr. Good morning, Michael, Good morning. Amy.

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<v Speaker 1>Police in California say the man who killed ten people

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<v Speaker 1>and wounded several others at a dance hall in Monterey

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<v Speaker 1>Park was a seventy two year old Asian man name

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<v Speaker 1>who can Tron. Officers say they found Tron dead from

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<v Speaker 1>a self inflicted gunshot wound in his van shortly after

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<v Speaker 1>having stopped the vehicle. Los Angeles Sheriff Robert Luna says

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<v Speaker 1>investigators are looking for a motive in the killing. Sheriff's

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<v Speaker 1>homicide detectives are working around the clock gathering additional information

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<v Speaker 1>and working on determining the motive behind this extremely tragic event.

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<v Speaker 1>Sheriff Luna says most of the victims were over the

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<v Speaker 1>age of fifty. Meanwhile, in New York, there was increased

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<v Speaker 1>police presence at lunar New Year events out find the

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<v Speaker 1>deadly mass shooting in Los Angeles. According to the NYPD,

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<v Speaker 1>the city had not received any credible threats and are

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<v Speaker 1>doing it out of an abundance of caution. Mayor Eric

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<v Speaker 1>Adams is again calling on the federal government to help

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<v Speaker 1>with resources in the rise of asylum seekers in New

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<v Speaker 1>York City. At a rally outside City Hall yesterday, Adams

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<v Speaker 1>called on Congress, AMTHEMA to do their part in dealing

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<v Speaker 1>with crisis at the southern border, because if you look

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<v Speaker 1>under the fingernail of every immigrant community in this country,

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<v Speaker 1>you see the dirt and grime of climbing up the mountain,

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<v Speaker 1>one hand at a time. To participate in the American Jury.

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<v Speaker 1>Mayor Adams says the city needs a lot more resources.

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<v Speaker 1>President Joe Biden is issuing a memorandum aimed at protecting

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<v Speaker 1>access to Miffa pristoon, a drug used in medication abortion.

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<v Speaker 1>Vice President Kamala Harris made the announcement in Florida, where

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<v Speaker 1>Republican Governor Ran des Santis signed into law a measure

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<v Speaker 1>banning abortion after fifteen weeks. The right of every woman

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<v Speaker 1>in every state in this country to make decisions about

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<v Speaker 1>her own body is on the line. Vice President Harris

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<v Speaker 1>on Sunday said, on what would have been the fiftieth anniversary,

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<v Speaker 1>we speak of the Roe v. Waight decision in the

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<v Speaker 1>past tense. Poland's Prime minister says the government will ask

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<v Speaker 1>Germany for permission to send the leopard tanks to Ukraine.

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<v Speaker 1>The Ukrainian government says tanks and especially the German made leopards,

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<v Speaker 1>are vital if it is to prevail over the Kremlin's

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<v Speaker 1>invading forces. Global News twenty four hours a day on

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<v Speaker 1>air and on Bloomberg Quicktake, powered by more than the

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<v Speaker 1>seven hundred journalists and analysts more than a hundred twenty countries.

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<v Speaker 1>I'm Michael barn This is Bloomberg Gaming. All right, thank you, Michael.

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<v Speaker 1>Time now for the sports report, brought to you by

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<v Speaker 1>Try State AUTI. Here's John Stash our thanks Amy. Cincinnati

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<v Speaker 1>Bengals only team of the Divisional playoffs to win on

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<v Speaker 1>the road. It was fairly easy in the snow and Buffalo.

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<v Speaker 1>The Bengals jumped in front early on dropped by Parrow.

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<v Speaker 1>The pressure comes from the left. He caught at the chase,

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<v Speaker 1>straight ahead into the end zone, touchdown on the opening

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<v Speaker 1>drive for Cincinnati Bengals radio the call. Cincinnati wonn to

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<v Speaker 1>ten and now five and oh and an f C

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<v Speaker 1>playoff games over the last two years. They'll play the

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<v Speaker 1>championship game this Sunday in Kansas City, as they did

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<v Speaker 1>a year ago when the Bengals rallied in one and overtime.

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<v Speaker 1>Big question of this game will be the status of

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<v Speaker 1>Patrick mahomes is high ankle spring suffering. Saturday, the NFC

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<v Speaker 1>title game will be San Francisco at Philadelphia battle the

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<v Speaker 1>top two seeds. The Niners defense again on display in

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<v Speaker 1>a nineteen to twelve win over Dalla. They intercepted Dak

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<v Speaker 1>Prescott twice. The Niners rookie quarterback Rock Purty remains undefeated.

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<v Speaker 1>The losing teams yesterday, Buffalo and Dallas both continued playoff disappointments.

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<v Speaker 1>Neither have been to the super Bowl since the first

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<v Speaker 1>half of the nineteen nineties. Nicks in Toronto, third meeting

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<v Speaker 1>in the last sixteen days and the Raptors pulled away

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<v Speaker 1>and one one sixteen. R J. Barrett leather Knicks with

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<v Speaker 1>thirty points. The Nets one at Golden State one one

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<v Speaker 1>sixteen without Kevin or Aunt, Kyrie Irving stepping up thirty

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<v Speaker 1>eight points he had forty eight and the win. On Friday,

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<v Speaker 1>Devil's on a Douwee Hamilton gold be Pittsburgh two one

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<v Speaker 1>in overtime Australian Open fourth round battle of young Americans

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<v Speaker 1>and twenty year old Bench Shelton outlasted J. J. Wolfe

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<v Speaker 1>in five sets. No Vak Djokovic Plane now he's won

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<v Speaker 1>the first two sets. John Stash Award at Bloomberg Sports

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<v Speaker 1>Live from coast to coast, from New York to San Francisco,

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<v Speaker 1>Boston to Washington, d C. Nationwide on Sirius x M,

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<v Speaker 1>the Bloomberg Business app and Bloomberg dot Com. This is

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<v Speaker 1>Bloomberg Daybreak. Good morning, I maybe more, I just want

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<v Speaker 1>to take a look at what's ahead for markets with

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<v Speaker 1>Lori Calvacina had a US equity strategy at RBC Capital

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<v Speaker 1>Markets LORI, Good morning to you, Thanks so much for

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<v Speaker 1>taking the time, Thanks for having me is always Happy Monday.

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<v Speaker 1>Happy Monday to you. What are you going to be

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<v Speaker 1>seeing in the next uh in the next few weeks

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<v Speaker 1>based on what you've seen so far in the past

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<v Speaker 1>few weeks, connect those dots for us? Sure, well, you know,

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<v Speaker 1>I'm looking from my perspective, I think that our earnings

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<v Speaker 1>reports that we're going to get over the next few

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<v Speaker 1>weeks are probably the most important thing. We've seen about

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<v Speaker 1>ten of SMP results come in so far. A lot

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<v Speaker 1>of those have been in financials and sort of you know,

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<v Speaker 1>kind of random industrials for lack of a better word. Um,

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<v Speaker 1>but I think that you know, it hasn't been a

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<v Speaker 1>fantastic start to reporting season. We've only had about sixty

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<v Speaker 1>of companies beating. The companies that beating haven't been necessarily

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<v Speaker 1>doing all that well on a relative basis, and the

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<v Speaker 1>companies that have been missing have been performing pretty poorly.

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<v Speaker 1>So we think it's going to be a rocky reporting season.

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<v Speaker 1>Um but I do think we're going to get a

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<v Speaker 1>lot of useful information in the next few weeks, so

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<v Speaker 1>we've really got to focus on those tea leaves. When

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<v Speaker 1>you're talking about the next few weeks and the useful

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<v Speaker 1>information that you are looking for, can you sort of

0:12:10.679 --> 0:12:12.480
<v Speaker 1>highlight some of those things for us? What are some

0:12:12.480 --> 0:12:15.319
<v Speaker 1>of the flags that are going to be popping up? Sure,

0:12:15.400 --> 0:12:17.080
<v Speaker 1>so you know, we really care a little bit more

0:12:17.080 --> 0:12:20.000
<v Speaker 1>about the commentary necessarily, you know kind of what the

0:12:20.000 --> 0:12:22.880
<v Speaker 1>actual you know, kind of dollar values and percentages are

0:12:22.920 --> 0:12:25.800
<v Speaker 1>that are discussed. Um. I've been looking through a lot

0:12:25.840 --> 0:12:27.720
<v Speaker 1>of the companies that reported last week. To be honest,

0:12:27.760 --> 0:12:30.680
<v Speaker 1>I've been focusing less on the financials. Everybody's focusing on those.

0:12:30.679 --> 0:12:32.520
<v Speaker 1>I've been looking a little bit more at the non

0:12:32.559 --> 0:12:35.720
<v Speaker 1>financial companies. One of the things that I've noticed is

0:12:35.760 --> 0:12:39.360
<v Speaker 1>that companies have been acknowledging the macro uncertainty, and when

0:12:39.360 --> 0:12:42.240
<v Speaker 1>they're talking about the outlook that they're they're putting out there,

0:12:42.520 --> 0:12:45.400
<v Speaker 1>they're acknowledging that writing uncertainty. So there does seem to

0:12:45.480 --> 0:12:47.720
<v Speaker 1>be even when the guidance is being put out, UM,

0:12:47.760 --> 0:12:50.040
<v Speaker 1>you know, just a high degree of variability in terms

0:12:50.040 --> 0:12:51.520
<v Speaker 1>of the number of selling forward and I think that's

0:12:51.559 --> 0:12:54.839
<v Speaker 1>having an impact on market psychology. UM. We've also been

0:12:54.880 --> 0:12:57.280
<v Speaker 1>noticing that a lot of these companies outside of financials

0:12:57.280 --> 0:12:59.760
<v Speaker 1>have been sort of highlighting recent signs of flowing or

0:13:00.040 --> 0:13:02.280
<v Speaker 1>cups in terms of demand, and most of them have

0:13:02.320 --> 0:13:05.720
<v Speaker 1>in saying, well, it's explainable, it's only temporary. We're expect

0:13:05.720 --> 0:13:07.920
<v Speaker 1>things to get better in February marches. Things are already

0:13:07.960 --> 0:13:10.040
<v Speaker 1>starting to look better in February Marching. And I'm not

0:13:10.080 --> 0:13:12.600
<v Speaker 1>trying to dismiss those comments, but it is a little

0:13:12.600 --> 0:13:14.760
<v Speaker 1>bit interesting to me that, you know, we're sort of

0:13:14.760 --> 0:13:17.400
<v Speaker 1>seeing everything so easily explained away, and I'm not sure

0:13:17.400 --> 0:13:19.760
<v Speaker 1>if it's going to ultimately be that easily explained away

0:13:19.760 --> 0:13:21.800
<v Speaker 1>in the end. So then what does that tell you

0:13:21.840 --> 0:13:24.000
<v Speaker 1>that may be coming if it's a little less psychology

0:13:24.040 --> 0:13:27.520
<v Speaker 1>and a little more data. In fact, well, look, I

0:13:27.559 --> 0:13:30.480
<v Speaker 1>think that we're you know, we're expecting the US to

0:13:30.520 --> 0:13:32.840
<v Speaker 1>sort of enter this short shall over session. We think

0:13:32.880 --> 0:13:35.440
<v Speaker 1>we're probably already you know, in the early days of that.

0:13:36.200 --> 0:13:37.960
<v Speaker 1>On the one hand, yeah, I think it's gonna be

0:13:37.960 --> 0:13:40.800
<v Speaker 1>difficult from markets to that. Yet nobody likes the onset

0:13:40.800 --> 0:13:43.040
<v Speaker 1>of a challenging economy. We are starting to see the

0:13:43.040 --> 0:13:47.360
<v Speaker 1>City US Economic Surprise Indicator vire into negative territory. Now,

0:13:47.400 --> 0:13:49.360
<v Speaker 1>I think that there is a certain amount of relief

0:13:49.400 --> 0:13:51.760
<v Speaker 1>though with equity people that we can we can take

0:13:51.840 --> 0:13:54.240
<v Speaker 1>from that. UM One, I do think it's that's the

0:13:54.320 --> 0:13:57.200
<v Speaker 1>path the fad rather on a left aggressives path, and

0:13:57.240 --> 0:13:59.400
<v Speaker 1>I think that's something equity markets need to see. So

0:13:59.480 --> 0:14:01.800
<v Speaker 1>ultimately I think this will be a good thing UM.

0:14:01.880 --> 0:14:04.800
<v Speaker 1>And also I do think that we've spent so long

0:14:04.960 --> 0:14:07.120
<v Speaker 1>talking about whether or not we're going to have a recession,

0:14:07.160 --> 0:14:09.520
<v Speaker 1>whether or not we're going to have economic challenges. Let's

0:14:09.559 --> 0:14:12.120
<v Speaker 1>just get on with it. Let markets digested um and

0:14:12.160 --> 0:14:14.240
<v Speaker 1>move to the recovery phase. So I think overall this

0:14:14.320 --> 0:14:16.400
<v Speaker 1>is a mixed bag. Ultimately a positive thing, but not

0:14:16.480 --> 0:14:19.080
<v Speaker 1>too much fun in the here and now. How much

0:14:19.080 --> 0:14:24.760
<v Speaker 1>of that optimism, Lorie can actually have an impact. Well,

0:14:24.760 --> 0:14:27.280
<v Speaker 1>So it's it's interesting, yes, that Amy, because when we

0:14:27.320 --> 0:14:30.480
<v Speaker 1>look at the CFTC data, UM. One of the things

0:14:30.560 --> 0:14:32.920
<v Speaker 1>that's a little bit interesting is that you already saw

0:14:33.040 --> 0:14:36.600
<v Speaker 1>equity investor sentiment if you look at futures contract positioning

0:14:37.200 --> 0:14:41.600
<v Speaker 1>among gast managers already sort of hit sixteen lows last year,

0:14:41.640 --> 0:14:44.000
<v Speaker 1>and we're really in the early stages of a rebap.

0:14:44.560 --> 0:14:46.840
<v Speaker 1>So I think, you know, just kind of this idea

0:14:47.080 --> 0:14:49.560
<v Speaker 1>of the onset of this challenging backdrop. I do think

0:14:49.560 --> 0:14:52.680
<v Speaker 1>it keeps that sentiment and positioning depressed. But at the

0:14:52.720 --> 0:14:55.160
<v Speaker 1>same time, the fact that we're finally, finally kind of

0:14:55.200 --> 0:14:58.360
<v Speaker 1>getting on with it does allow some some camps to

0:14:58.400 --> 0:15:01.040
<v Speaker 1>start kind of looking at recovery, look a better days ahead,

0:15:01.280 --> 0:15:03.480
<v Speaker 1>and can give us some stability in those metrics. So

0:15:03.520 --> 0:15:05.760
<v Speaker 1>I do think it's it's a challenging backdrop. It's a

0:15:05.800 --> 0:15:09.360
<v Speaker 1>complex backdrop, but I do think it has impacts on

0:15:09.360 --> 0:15:11.400
<v Speaker 1>on on those who are negative, but also on those

0:15:11.400 --> 0:15:13.680
<v Speaker 1>who are looking for better days ahead. So better to

0:15:13.720 --> 0:15:15.400
<v Speaker 1>go ahead and just get on with it. If we're

0:15:15.400 --> 0:15:17.400
<v Speaker 1>going to have a recession, even a shallow one, let's

0:15:17.400 --> 0:15:18.880
<v Speaker 1>go ahead and do it so we can bake it

0:15:18.920 --> 0:15:22.160
<v Speaker 1>all in and then the dread of a recession won't

0:15:22.160 --> 0:15:24.840
<v Speaker 1>be as much of a factor exactly. You know, one

0:15:24.840 --> 0:15:27.440
<v Speaker 1>of my my interesting sort of cocktail party staff about

0:15:27.480 --> 0:15:29.640
<v Speaker 1>US equity markets and the economy is that if you

0:15:29.680 --> 0:15:33.160
<v Speaker 1>look at negative real GDP years, stocks usually trade off

0:15:33.200 --> 0:15:36.000
<v Speaker 1>pretty sharply in the years prior to when that happens,

0:15:36.040 --> 0:15:38.760
<v Speaker 1>but the year of you actually have pretty decent games

0:15:38.760 --> 0:15:41.200
<v Speaker 1>in US equity markets because markets get the pain out

0:15:41.240 --> 0:15:42.880
<v Speaker 1>of the way at ahead of time. But one of

0:15:42.880 --> 0:15:45.200
<v Speaker 1>the worst backdrops you can be in for US equities

0:15:45.200 --> 0:15:47.880
<v Speaker 1>in terms of stock price performance perspective is zero to

0:15:47.920 --> 0:15:50.120
<v Speaker 1>two percent g d P. On the plus side, that's

0:15:50.120 --> 0:15:53.080
<v Speaker 1>below trend positive. But what I've learned over my career

0:15:53.080 --> 0:15:55.480
<v Speaker 1>on those environments, people are constantly worried about whether you're

0:15:55.480 --> 0:15:58.120
<v Speaker 1>gonna fall over the edge of economic am this and

0:15:58.240 --> 0:16:01.680
<v Speaker 1>markets really don't price that dress very well but can handle,

0:16:01.800 --> 0:16:03.400
<v Speaker 1>you know, just sort of a cycle where we sit

0:16:03.400 --> 0:16:05.120
<v Speaker 1>where we kind of moved down on the economy and

0:16:05.120 --> 0:16:09.600
<v Speaker 1>then moved up up. This is Bloomberg Daybreak Today, your

0:16:09.640 --> 0:16:12.520
<v Speaker 1>morning brief on the stories making news from Wall Street

0:16:12.520 --> 0:16:15.960
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