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

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Speaker 2: Conservative, Dat's going to be on hold for longer, healthcare,

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Speaker 2: Good morning on John Tucker Off. Here these stories we're

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Speaker 2: following today Makeetcaps took a hit except in video, as

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Speaker 2: the S and P five hundred closed below fifty three hundred.

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Speaker 2: The down Jones industri laverage lost one and a half

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Speaker 2: percent of more than six hundred points in yesterday's trading.

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Speaker 2: Swaps are now fully pricing in a full quarter point

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Speaker 2: rate cut in December versus November. Despite yesterday's sell off.

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Speaker 2: Alicia Levine, head of Investment Strategy and Equity Advisors Solutions

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Speaker 2: at B and Y Melon Investment Management, is optimistic on

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Speaker 2: the stock market.

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Speaker 3: We've been very positive on the market now for about

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Speaker 3: i'd say fifteen months because there really is very little

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Speaker 3: evidence of a fundamental slowdown in the US. Yes, there

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Speaker 3: are pockets of pain, the manufacturing base is on an upswing,

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Speaker 3: and we know the awesome amount of tech spending that's

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Speaker 3: all revenue into the chips, So you know, the earnings

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Speaker 3: are awesome.

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Speaker 2: Bon why Melon Zalusia Levine says, the better that expected

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Speaker 2: growth and fed dubvishness. Putzer year end s and p

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Speaker 2: price target at fifty four hundred. As we mentioned in

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Speaker 2: Vidio was immunity yesterday's selloff, it serves more than nine

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Speaker 2: percent to an all time high. The wealth of Nvidia

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Speaker 2: co founder Jensen Wang now greater than each individual member

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Speaker 2: of America's richest family. That story this morning from Bloomberg's

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Speaker 2: Doug Prisoner.

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Speaker 4: Jensen Wong owns three and a half percent of Nvidia.

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Speaker 4: Yesterday the stock closed at a record high at roughly

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Speaker 4: one thousand and thirty eight dollars a share. This gives

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Speaker 4: Wong a net worth of ninety one point three billion

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Speaker 4: dollars and now on the Bloomberg Billionaires Index, he is

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Speaker 4: the seventeenth richest person in the world, richer than the

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Speaker 4: three wealthiest members of Walmart's founding family, the Waltons. And

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Speaker 4: Nvidia has been the primary beneficiary of the boom and

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Speaker 4: artificial intelligence with its so called AI accelerator chips. The

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Speaker 4: company now is a market value above two to have

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Speaker 4: trillion dollars in New York. I'm Doug Prisner, Bloomberg Radio.

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Speaker 2: All right, thanks Doug. The list of Wall Street banks

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Speaker 2: mandating workers get back to the office is growing. We

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Speaker 2: get details from Bloomberg's Jeff Bellinger.

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Speaker 5: In New York, Citygroup, HSBC and Barclays are ordering more

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Speaker 5: staffers to report to company offices five days a week.

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Speaker 5: Citygroup is requiring about six hundred US employees previously eligible

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Speaker 5: to work remotely to commute to company offices full time,

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Speaker 5: and HSBC shifting regulations effect about five hundred and thirty

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Speaker 5: staff in New York, roughly half of its workforce in

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Speaker 5: the city, and Barclays will require thousands of investment banking

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Speaker 5: staff globally to spend five days a week in the

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Speaker 5: office or traveling to see clients. The banks were among

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Speaker 5: wall streets more flexible in allowing employees to continue working

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Speaker 5: remotely after the pandemic. The changes come as the Financial

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Speaker 5: Industry Regulatory Authority, the US brokerage industry's main watchdog, is

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Speaker 5: set to reinstate pre pandemic rule for monitoring workplaces in

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Speaker 5: the coming weeks. In New York. Jeff Bellinger, Bloomberg Radio

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Speaker 5: and Thanks Jeff.

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Speaker 2: Another banking note this morning, Namura Holdings has more than

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Speaker 2: double pay for its top managers as earnings at Japan's

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Speaker 2: largest brokerage rebounded on booming domestic markets. The total compensation

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Speaker 2: paid to the firm's eight executive officers rose one hundred

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Speaker 2: and fifty percent of more than twenty eight million dollars.

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Speaker 2: Finance ministers and central bank governors from the Group of

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Speaker 2: Seven Nations gathering in Italy. This comes before the leader's

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Speaker 2: summit in June, which Ukraine President Vladimir Zelenski is extended

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Speaker 2: to attend. Now Bloomberg's Oliver Crook is covering the meeting

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Speaker 2: in Italy.

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Speaker 6: The G seven really needs to show unity, particularly on

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Speaker 6: the question of Ukraine. I mean, Jenney Yellen was saying

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Speaker 6: this yesterday that Putin is waging a war of attrition,

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Speaker 6: and they really need to show that they're in here

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Speaker 6: for the long haul, and they can reassure Ukraine that

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Speaker 6: its war funding is on sound foot is on sound

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Speaker 6: footing for really not just this year, but also the

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Speaker 6: years to come.

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Speaker 2: Bloomberg's Oliver Cruk also says China's trade practices will also

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Speaker 2: be on the agenda. The White House has responded to

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Speaker 2: Senate Republicans who blocked a bipartisan border security bill. Bloomberg's

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Speaker 2: Amy Morris reports from Washington.

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Speaker 1: In a written statement, President Biden said if Republicans cared

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Speaker 1: about securing the border. They would have voted for the bill.

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Speaker 1: Senate Majority Leader Chuck Schumer after the vote.

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Speaker 7: I understand that bill was not going to win every

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Speaker 7: Democratic vote or every single Republican vote.

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Speaker 2: That's what bipartisanship is. It's a compromise.

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Speaker 1: Six Democrats joined Republicans in blocking the measure, including California

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Speaker 1: Senator Alex Padia.

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Speaker 2: It includes arbitrary board enclosures and to practically eliminate the

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Speaker 2: right to seek asylum for people fleeing for their safety.

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Speaker 1: And even if it had passed the Senate, Republican leaders

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Speaker 1: have made it clear the bill would have been dead

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Speaker 1: on arrival in the House. In Washington, Amy Morris, Bloomberg Radio, and.

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Speaker 2: A growing number of Americans maybe thinking that college is

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Speaker 2: not worth it. Let's get more In this report from

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Speaker 2: Bloomberg's and Baxter.

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Speaker 8: Close to thirty percent a college degree is not worth

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Speaker 8: the expense. The new peupole also says almost half of

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Speaker 8: those surveyed think it is helpful, but only as long

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Speaker 8: as they don't need to take out a loan. But

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Speaker 8: only twenty two percent say a college degree is worth

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Speaker 8: it even with a student debt. Four and ten say

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Speaker 8: it is not at all important and getting a good

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Speaker 8: job now. A recent report from the FED showed most

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Speaker 8: sea education as a path to greater financial well being

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Speaker 8: at Baxter.

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Speaker 2: Bloomberg Radio, All right, thanks Sandy, and sources are telling

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Speaker 2: Bloomberg Elon Musk's SpaceX as initiated discussions about selling existing

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Speaker 2: shares at a price that could value the closely held

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Speaker 2: company at roughly two hundred billion dollars. Let's get more

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Speaker 2: in this report from Bloomberg's Charlie Pellett.

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Speaker 9: Sources tell Bloomberg SpaceX is discussing a tender offer that

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Speaker 9: may kick off in June. The price for the offer

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Speaker 9: has not been decided, but sources say SpaceX is weighing

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Speaker 9: offering shares at one hundred and eight a one hundred

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Speaker 9: ten dollars apiece. A two hundred billion dollar valuation would

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Speaker 9: be a premium to the one hundred eighty billion valuation

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Speaker 9: the company obtained through its most recent tender offer in

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Speaker 9: New York. Charlie Pellet, Bloomberg Radio.

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Speaker 2: Thanks Charlie, and that brings us to five zero seven

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Speaker 2: on Wall Street. Time down for a look at some

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Speaker 2: of the other stories making news in New York and

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Speaker 2: around the world over that. We're joined by Bloomberg's Michael Barr. Michael,

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Speaker 2: good morning, Good morning John. It is the unofficial start

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Speaker 2: this summer. Both the roads and airport runways are getting

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Speaker 2: busy ahead of the long Memorial Day weekend. At Philadelphia

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Speaker 2: International Airport, public affairs manager Heather Redfern says they anticipate

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Speaker 2: a high number of travelers passing through. Redfern says they

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Speaker 2: had the TSA in lines ready with many Transportation Security

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Speaker 2: agents to speed up the screening process.

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Speaker 4: Security lines have been busy all day long, but they're moving.

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Speaker 1: The TSA is getting people through.

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Speaker 10: Ahl Airport officials are predicting nearly thirty percent more air

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Speaker 10: travelers will take off this long holiday.

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Speaker 2: Weekend compared to last year.

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Speaker 10: Former President Trump held a campaign rally in New York

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Speaker 10: City yesterday. Trump spoke in the South Bronx, one of

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Speaker 10: the bluest areas of the country. He's trying to woo

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Speaker 10: black and Hispanic voters.

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Speaker 11: Our black population and our Hispanic population who are losing

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Speaker 11: their jobs, losing their housing, losing everything they can lose.

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Speaker 10: Audio courtesy of ABC seven. The district is more than

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Speaker 10: fifty percent Hispanic and thirty percent Black. Several people in

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Speaker 10: the crowd weren't impressed by Trump's visit.

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Speaker 4: Look what he did in the White House, all the

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Speaker 4: stuff he did in the White House, and all the

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Speaker 4: women he arrests bad men.

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Speaker 10: Trump is vowing to be better than President Biden on

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Speaker 10: key issues, including immigration and the economy. President Biden and

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Speaker 10: the first Lady doctor Jill Biden, hosted a state dinner

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Speaker 10: for Kenyon President William Ruto and his wife Rachel Rudeo.

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Speaker 10: During a Teust President Biden said that he was honored

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Speaker 10: to host the world leader, touting their shared beliefs in freedom, democracy,

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Speaker 10: and equality.

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Speaker 9: We share a strong respect for the history of that

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Speaker 9: connects us together.

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Speaker 10: So far, there's no Democratic presidential candidate on Ohio's November ballot. However,

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Speaker 10: the governor is looking to change that to ensure President

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Speaker 10: Biden is on it. Ohio's Republican Governor, Mike de Wine,

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Speaker 10: is calling a rare special session of the GOP majority

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Speaker 10: General Assembly Tuesday to put a Democratic presidential candidate on

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Speaker 10: the fall ballot. The Wine says failing to do so

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Speaker 10: is simply not acceptable, calling it a ridiculous and absurd situation.

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Speaker 10: Global News twenty four hours a day and whenever you

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Speaker 10: want it with the Bloomberg News. Now, I'm Michael Barr,

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Speaker 10: and this is Bloomberg John.

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Speaker 2: Michael, thank you.

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Speaker 7: Yeah.

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Speaker 2: That brings us to five to ten of Wall Street time.

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Speaker 2: Down for the Bloomberg Sports Update. Add for that. Good morning, John,

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Speaker 2: stan Shower.

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Speaker 10: Good morning John.

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Speaker 11: The Celtics are ten and two of the NBA Playoffs.

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Speaker 11: The two losses were Game two's at home versus Miami

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Speaker 11: in the first round in Cleveland. The second Celtics able

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Speaker 11: to win Game two with Indiana in the East Finals,

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Speaker 11: easier victory than the series opener if you needed overtime.

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Speaker 11: Boston had a twenty to nothing run in the first

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Speaker 11: half went on to win one twenty six to one,

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Speaker 11: ten for Jalen Brown forty points to match his career

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Speaker 11: playoff high. Double overtime on the ice Edmonton Starr e

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Speaker 11: Conor McDavid with a tip in thirty two seconds into

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Speaker 11: the second ot. The Oilers won three to two in Dallas.

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Speaker 11: The Stars are now zero to three in game ones,

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Speaker 11: all at home. The Rangers just lost their first Game

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Speaker 11: one at home, shut out by Florida, and Rangers coach

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Speaker 11: Peter Lovelette had a chance to look at the Tea.

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Speaker 12: Goo back and look at the chances. It's kind of

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Speaker 12: an even game, Like the whole thing's kind of even.

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Speaker 12: It sits around the fifty percent mark. But I just

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Speaker 12: look at some of the Christmas and the execution and

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Speaker 12: the skating and the movements and the coverage. Not a lot,

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Speaker 12: but there's just things that I felt like we could

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Speaker 12: have done better than maybe could have pushed it in

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Speaker 12: our direction.

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Speaker 11: Game too tonight at the Garden. The Rangers, now lost

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Speaker 11: their last two, have scored only one goal at Stadium.

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Speaker 11: Yankees got all runs of Johnny Carlos stand and Aaron

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Speaker 11: Judge fortieth time they've homeed the same game in the

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Speaker 11: Yankster thirty six and four. In those games, they shut

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Speaker 11: out Seattle five to nothing. Luis Heel continues to be

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Speaker 11: a revelation, only in the rotation due to the Garrett

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Speaker 11: Cole injury. He's had six straight starts where he hasn't

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Speaker 11: allowed more than one run. Phillies won again. They've won

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Speaker 11: twenty two in the last twenty six. Historic news from

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Speaker 11: college sports the NCAA, for the first time, we'll begin

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Speaker 11: to outright pay its athletes. A deal struck to settle

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Speaker 11: pending lawsuits and prevent future ones. The NCAA will pay

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Speaker 11: two point seven billion dollars in damages to current and

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Speaker 11: former athletes only from schools in Power five conferences and

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Speaker 11: only from the past decade. It will also begin starting

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Speaker 11: next year to pay athletes out of a revenue sharing plan.

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Speaker 11: John Stashie that we're Bloomberg Sports John and Nathan.

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Speaker 2: All Right, John, thanks a lot, appreciate it.

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Speaker 7: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 7: and around the world on Bloomberg dot com and the

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Speaker 7: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 2: They were coming up on five thirteen of Wall Street.

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Speaker 2: Has it just said the major stock averages? They indicate

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Speaker 2: maybe a higher open cashow But on Wall Street this

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Speaker 2: morning because we head into the long holiday weekend in

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Speaker 2: the US also the UK, let's get you set up

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Speaker 2: for the trading day ahead. We're joined by our first guest,

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Speaker 2: Patrick Armstrong, the chief investment officer at PLERIMI. Well Patrick,

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Speaker 2: good morning to you, Thanks for being with us. A

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Speaker 2: major averages didn't get the pop yesterday that someone expected

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Speaker 2: from invidious results. Does it look like the data or

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Speaker 2: back of the driver's seat for investors.

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Speaker 13: Macroeconomic data has been very supportive. Company specific data is

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Speaker 13: being very supportive. We were now past the earnings window

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Speaker 13: for almost all the companies now, so I probably will

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Speaker 13: be macro, the FED and what's happening there driving markets

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Speaker 13: in the early weeks, and overwhelmingly that's been supportive. The

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Speaker 13: market did take a bit of a breather yesterday based

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Speaker 13: on a FED that's showing they're not ready to cut,

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Speaker 13: and I'm not surprised by that though, because the employment

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Speaker 13: backdrop is still pretty robust, inflation sticky. It would be

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Speaker 13: negligent for the FED to be cutting in this kind

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Speaker 13: of environment.

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Speaker 2: In my opinion, what do investors latch onto next?

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Speaker 13: You lack john to a broadening of growth that You've

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Speaker 13: had very strong US growth through the first half of

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Speaker 13: this year. You're starting to see Europe participate in that

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Speaker 13: growth as well. Not to the same trajectory as the US,

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Speaker 13: but it is a global recovery now where the world

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Speaker 13: growth is expanding. Pmis in Europe's are above fifty again.

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Speaker 13: Services across the world's very strong, and that's translating into

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Speaker 13: earnings growth. So at the start of the year, people

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Speaker 13: were latching on to a FED that was going to

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Speaker 13: be cutting aggressively, and the markets don't need that. I

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Speaker 13: don't think it's earnings that really drive markets over the

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Speaker 13: long term, and I think that's where the strength of

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Speaker 13: the market's going to come from.

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Speaker 2: Yeah, we just about wrapped up. Actually a few more

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Speaker 2: companies left in this quarter. What are the major takeaways

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Speaker 2: from earning seasons so far?

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Speaker 13: It's a healthy market because companies that beat and guided

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Speaker 13: higher the market really rewarded. You saw that with Nvidia yesterday.

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Speaker 13: But companies that beat and gave weak guidance, the markets punished.

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Speaker 13: So it's a great environment to be a stock picker.

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Speaker 13: Overwhelmingly though companies did beat analysts. We're expecting two percent

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Speaker 13: earnings growth in Q one coming into the quarter, and

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Speaker 13: we're coming out of it with almost six percent earnings growth.

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Speaker 13: So it's been a positive tailwind for markets and a

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Speaker 13: healthy market where winners are being rewarded.

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Speaker 2: How about you, guys positioning right now?

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Speaker 13: So we're overweight equities, not massively. We're short duration because

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Speaker 13: we do think inflation sticks around and the FED cuts

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Speaker 13: that everyone's anxious for waiting for, I'm not sure they

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Speaker 13: are going to materialize, So you want to own equities

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Speaker 13: that are participating in economic growth. You don't want equities

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Speaker 13: that are reliant on on stimulus and a cutting fed though,

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Speaker 13: So I don't mind having secretcality if you can combine

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Speaker 13: sacrecality with economic with a real structural growth like Nvidia,

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Speaker 13: those kind of stocks still make sense to me despite

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Speaker 13: the run they've had.

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Speaker 2: So what from your view, what's overpriced? What's under price

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Speaker 2: right now? And how do you play that?

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Speaker 13: So the things people think about being overpriced are the

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Speaker 13: best performers. I still love six of the Magnificent Seven.

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Speaker 13: I own only four of them, but all of those

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Speaker 13: have basically monopolistic properties that are going to give them

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Speaker 13: pricing power and earnings growth. I also like the defense sector,

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Speaker 13: and energy is a hedge on geopolitical risks, Property companies,

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Speaker 13: a lot of the utilities that aren't actually energy generators

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Speaker 13: because they are interest rate sensitivity in those two sectors.

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Speaker 13: I think those sectors are still at risk of further

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Speaker 13: downside this year.

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Speaker 2: Okay, I can get close to five percent two year yield?

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Speaker 2: Is that a place to part some money? Reasonable?

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Speaker 13: Or you just go up a little little bit on

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Speaker 13: the risk spectrum and you get five and a half

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Speaker 13: five point seven percent in double A rated bonds from

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Speaker 13: senior bank or senior bonds from banks. So there's nothing

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Speaker 13: wrong with that. You're going to beat inflation with that.

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Speaker 13: I think you can do better, But I do prefer

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Speaker 13: the front end of the curve.

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Speaker 2: To the long end of the curve.

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Speaker 13: I think we're going to end this year where you've

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Speaker 13: got five percent FED funds R eight, five percent two

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Speaker 13: year and probably a five percent Treasury ten year yield

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Speaker 13: as well.

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Speaker 2: Where's the next Fed cut? The obligatory question at the

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Speaker 2: end about ten seconds.

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Speaker 13: Fifty to fifty. If it happens this year, it won't

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Speaker 13: happen until September. If it does happen.

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Speaker 2: You're listening to Bloomberg Daybreak Today, your morning brief on

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