WEBVTT - Fed Minutes Released and Yellen Visits China

0:00:02.400 --> 0:00:02.960
<v Speaker 1>Good morning.

0:00:03.080 --> 0:00:05.480
<v Speaker 2>I'm Doug Prisner and I'm Brian Curtis. Here are the

0:00:05.519 --> 0:00:09.440
<v Speaker 2>stories we're following today. Minutes from the fed's June meeting

0:00:09.520 --> 0:00:13.800
<v Speaker 2>revealed that officials were somewhat less united than their unanimous

0:00:13.840 --> 0:00:18.159
<v Speaker 2>decision had suggested. Some participants indicated that they favored a

0:00:18.280 --> 0:00:21.120
<v Speaker 2>quarter point rate increase, but they went along with the

0:00:21.160 --> 0:00:25.079
<v Speaker 2>move to leave policy unchanged. Those favoring high excited, tight

0:00:25.160 --> 0:00:28.360
<v Speaker 2>labor markets, and relatively few signs that inflation was slowing

0:00:28.760 --> 0:00:32.239
<v Speaker 2>slowing towards that goal of two percent. Now, traders are

0:00:32.240 --> 0:00:35.279
<v Speaker 2>betting that the FED will likely hike rates in the

0:00:35.360 --> 0:00:39.440
<v Speaker 2>meeting later this month. Heard from Evercore ISI founder Ed Hyman.

0:00:40.400 --> 0:00:42.880
<v Speaker 3>At this point, the one more is baked in the Kate.

0:00:43.120 --> 0:00:46.159
<v Speaker 3>I think anything from now is a mistake. They're just

0:00:46.240 --> 0:00:50.800
<v Speaker 3>creating a deeper recession or the more likelihood of a recession.

0:00:51.920 --> 0:00:57.639
<v Speaker 3>But at five and a quarter, with the banial at

0:00:58.080 --> 0:01:01.720
<v Speaker 3>three eightyretty much done and inflation slowing.

0:01:02.520 --> 0:01:05.319
<v Speaker 2>FED officials will get to analyze two key US economic

0:01:05.360 --> 0:01:08.560
<v Speaker 2>reports before the next decision. We'll get the June employment

0:01:08.600 --> 0:01:13.000
<v Speaker 2>report on Friday and readings on consumer prices on July twelfth.

0:01:13.360 --> 0:01:17.319
<v Speaker 2>The FED meets next on July twenty fifth and twenty sixth.

0:01:17.000 --> 0:01:20.800
<v Speaker 1>Well, US Treasury Secretary Janet Yellen will be visiting China

0:01:20.840 --> 0:01:24.160
<v Speaker 1>at a time when tensions between Beijing and Washington are

0:01:24.280 --> 0:01:27.000
<v Speaker 1>very high. We have more from Bloomberg's and Kates.

0:01:27.400 --> 0:01:30.240
<v Speaker 4>Yellen's goal is to find common economic ground and open

0:01:30.240 --> 0:01:33.319
<v Speaker 4>communication channels between the US and China, and it's the

0:01:33.360 --> 0:01:35.959
<v Speaker 4>first major test of a policy she outlined in April

0:01:36.040 --> 0:01:38.880
<v Speaker 4>that is geared toward defending US national security without trying

0:01:38.880 --> 0:01:42.080
<v Speaker 4>to hold China back economically. Yellen's trip comes days after

0:01:42.160 --> 0:01:45.200
<v Speaker 4>China imposed restrictions on exporting two medals that are crucial

0:01:45.200 --> 0:01:48.520
<v Speaker 4>to key technology industries, and a mission comes exactly five

0:01:48.600 --> 0:01:51.600
<v Speaker 4>years after the Trump administration imposed tariffs on the first

0:01:51.600 --> 0:01:53.880
<v Speaker 4>wave of more than three hundred billion dollars worth of

0:01:53.880 --> 0:01:57.760
<v Speaker 4>goods from China. In Washington and Kates Bloomberg Day Break Asia.

0:01:58.160 --> 0:02:01.120
<v Speaker 2>The People's Bank of China is mixing its muscles on

0:02:01.200 --> 0:02:04.560
<v Speaker 2>options regarding the slide in the Yuan. Bloomberg z von

0:02:04.680 --> 0:02:06.440
<v Speaker 2>Mann has the story from Hong Kong.

0:02:06.440 --> 0:02:10.160
<v Speaker 5>The commentary in the PBOC backed Financial News says China

0:02:10.200 --> 0:02:14.080
<v Speaker 5>has ample tools even if the Yuen enters a panic slide.

0:02:14.320 --> 0:02:17.639
<v Speaker 5>It's part of a campaign to reassure investors. The tools

0:02:17.680 --> 0:02:21.680
<v Speaker 5>include the Ford Exchange Risk Reserves ratio, banks FX deposit

0:02:21.720 --> 0:02:25.760
<v Speaker 5>reserve ratios, and so called counter cyclical factor that's used

0:02:25.760 --> 0:02:29.560
<v Speaker 5>in determining the pboc's daily reference rate. The Chinese currency

0:02:29.560 --> 0:02:32.320
<v Speaker 5>has recently slid towards as weak as level in fifteen

0:02:32.400 --> 0:02:36.120
<v Speaker 5>years against the dollar. The commentary says China's yen market

0:02:36.160 --> 0:02:40.440
<v Speaker 5>is resilient and that fox levels are stable in Hong Kong.

0:02:40.480 --> 0:02:42.480
<v Speaker 5>I'm von Mann Bloomberg Day Breakasia.

0:02:42.720 --> 0:02:45.280
<v Speaker 1>We go to Ali Baba next. The company is looking

0:02:45.320 --> 0:02:48.480
<v Speaker 1>to work with its home province of Jijeong to develop

0:02:48.560 --> 0:02:53.200
<v Speaker 1>artificial intelligence and the digital economy. Ali Baba's CEO Daniel Joan,

0:02:53.720 --> 0:02:56.480
<v Speaker 1>saying that digital economy has entered a new age with

0:02:56.639 --> 0:03:00.520
<v Speaker 1>artificial intelligence sweeping the world this year, and that Ali

0:03:00.520 --> 0:03:04.000
<v Speaker 1>Baba wants to help build Chijiong into a world class

0:03:04.160 --> 0:03:07.760
<v Speaker 1>digital economy cluster. There are not many details here on

0:03:07.800 --> 0:03:10.160
<v Speaker 1>what the plan would be other than to create a

0:03:10.200 --> 0:03:14.120
<v Speaker 1>better business environment. However, the agreement does show a degree

0:03:14.200 --> 0:03:17.880
<v Speaker 1>of official backing for Ali Baba's efforts, and that may

0:03:18.040 --> 0:03:20.880
<v Speaker 1>provide a little bit of a boost to investors. Sentiment.

0:03:20.919 --> 0:03:24.040
<v Speaker 1>On that front, the company is pushing back against the

0:03:24.080 --> 0:03:28.160
<v Speaker 1>perception that regulators were out to restrict Ali Baba's growth.

0:03:28.200 --> 0:03:31.960
<v Speaker 2>Brian Well Back in the United States, there are signs

0:03:31.960 --> 0:03:34.680
<v Speaker 2>of a big comeback in auto sales after the just

0:03:34.760 --> 0:03:38.320
<v Speaker 2>completed second quarter. That story from Bloomberg's Tom Busby.

0:03:38.960 --> 0:03:42.160
<v Speaker 6>After a few rough years, the auto industry is now back.

0:03:42.200 --> 0:03:44.960
<v Speaker 6>All the major automakers posting their June and second quarter

0:03:45.040 --> 0:03:47.800
<v Speaker 6>sales data this week, and so far, despite inflation and

0:03:47.880 --> 0:03:51.480
<v Speaker 6>higher sticker prices, blowout sales thanks to pent up demand

0:03:51.560 --> 0:03:54.440
<v Speaker 6>and dealership lots that are full again. Sales to General

0:03:54.440 --> 0:03:57.440
<v Speaker 6>Motors up nearly nineteen percent from a year ago, on

0:03:57.560 --> 0:03:59.960
<v Speaker 6>big sales of the Chevy Suburban and the trail blo

0:04:00.560 --> 0:04:02.840
<v Speaker 6>At Toyota they were up seven percent on demand for

0:04:02.880 --> 0:04:05.760
<v Speaker 6>cameras and rap fours, and at Stilantis up six percent

0:04:06.160 --> 0:04:09.680
<v Speaker 6>thanks to Ram pickups and Jeep Grand Cherokees. FOD is

0:04:09.680 --> 0:04:12.440
<v Speaker 6>that with its second quarter figures on Thursday, I'm Tom

0:04:12.480 --> 0:04:14.200
<v Speaker 6>Buzby Bloomberg Daybreak Asia.

0:04:14.760 --> 0:04:16.760
<v Speaker 2>Doug. I don't know if the auto market can serve

0:04:16.800 --> 0:04:19.320
<v Speaker 2>as a microcosm for what's happening with the consumer, but

0:04:19.400 --> 0:04:22.360
<v Speaker 2>you look at at loan rates, there be like six

0:04:22.440 --> 0:04:24.359
<v Speaker 2>to ten percent to buy a car, and it is

0:04:24.480 --> 0:04:27.680
<v Speaker 2>not stunting the demand. Look at these sales that we've

0:04:27.720 --> 0:04:29.600
<v Speaker 2>seen and if you look at the stock of you know,

0:04:29.680 --> 0:04:33.000
<v Speaker 2>everybody crows about what Tesla has done, but even General

0:04:33.000 --> 0:04:35.760
<v Speaker 2>Motors has gone from thirty two to thirty nine just

0:04:35.839 --> 0:04:38.240
<v Speaker 2>here in about the last month or so. So you're

0:04:38.279 --> 0:04:40.400
<v Speaker 2>talking more than a twenty percent gain. Let me just

0:04:40.440 --> 0:04:42.480
<v Speaker 2>get the exact gain for the last month. It is

0:04:43.440 --> 0:04:47.440
<v Speaker 2>over the last month up sixteen percent in the market.

0:04:47.560 --> 0:04:50.760
<v Speaker 2>So it shows you that there are parts of the economy,

0:04:51.360 --> 0:04:53.719
<v Speaker 2>maybe not manufacturing, but parts of the economy that are

0:04:53.760 --> 0:04:54.960
<v Speaker 2>working pretty well well.

0:04:55.000 --> 0:04:58.360
<v Speaker 1>And you didn't even mention the story on byd in China, right,

0:04:58.440 --> 0:05:01.640
<v Speaker 1>the incredible sales growth that company is seeing on the mainland,

0:05:01.720 --> 0:05:03.680
<v Speaker 1>which then kind of takes us to the visit of

0:05:03.760 --> 0:05:07.400
<v Speaker 1>Janet Yellen to Beijing. It's going to start a Thursday,

0:05:07.920 --> 0:05:09.880
<v Speaker 1>we know. I think we can agree, Brian that the

0:05:09.960 --> 0:05:13.320
<v Speaker 1>relations are frayed. I think the US and Europe as

0:05:13.320 --> 0:05:17.320
<v Speaker 1>well have both realized the vulnerabilities of the dependency that

0:05:17.360 --> 0:05:20.080
<v Speaker 1>the West is created in dealing with China. The question

0:05:20.160 --> 0:05:22.799
<v Speaker 1>now is how much decoupling is really possible.

0:05:23.800 --> 0:05:26.320
<v Speaker 2>Yeah, I mean, I think finding common ground is easy

0:05:26.400 --> 0:05:30.159
<v Speaker 2>because the relationship has so many layers to it. But

0:05:30.640 --> 0:05:34.000
<v Speaker 2>how do you turn the aircraft carrier around? That is

0:05:34.080 --> 0:05:37.280
<v Speaker 2>going to be I would say nearly impossible. But you

0:05:37.920 --> 0:05:41.479
<v Speaker 2>get a sense that investors will appreciate the effort. It

0:05:41.480 --> 0:05:44.520
<v Speaker 2>won't be easy. But Yellen is pretty you know, she's

0:05:44.560 --> 0:05:47.480
<v Speaker 2>pretty good on this type of level. She's a pretty

0:05:47.480 --> 0:05:50.839
<v Speaker 2>good communicator. She's a bit like Leoha on the Chinese side,

0:05:51.279 --> 0:05:53.080
<v Speaker 2>you know, not exactly sharp elbow.

0:05:53.960 --> 0:05:57.960
<v Speaker 1>Interesting comment from David Loveinger today over TCW. He was saying,

0:05:58.000 --> 0:06:00.919
<v Speaker 1>it's to him at any rate, talking how little the

0:06:01.000 --> 0:06:03.560
<v Speaker 1>US and Chinese governments have been speaking at all levels,

0:06:03.960 --> 0:06:06.120
<v Speaker 1>and he kind of pointed to the fact that key

0:06:06.200 --> 0:06:09.240
<v Speaker 1>economic officials in both countries really don't know one another

0:06:09.279 --> 0:06:09.560
<v Speaker 1>all that.

0:06:09.600 --> 0:06:15.080
<v Speaker 2>Well. Yeah, absolutely, it ebbs and flows. It feels like

0:06:15.120 --> 0:06:17.360
<v Speaker 2>it needs to go into a period where it flows

0:06:17.400 --> 0:06:20.599
<v Speaker 2>a little bit. But anyway, very nice segue from the

0:06:20.640 --> 0:06:23.400
<v Speaker 2>car talk to the China talking. I'll have to be

0:06:23.440 --> 0:06:26.200
<v Speaker 2>on my toes to keep up with you today. All right,

0:06:26.240 --> 0:06:30.040
<v Speaker 2>now it's time for global news. US President Joe Biden,

0:06:30.120 --> 0:06:34.440
<v Speaker 2>expressing his full support of Sweden for NATO admission at

0:06:34.480 --> 0:06:36.400
<v Speaker 2>backs to with Global News in the nine to sixty

0:06:36.440 --> 0:06:38.480
<v Speaker 2>newsroom in San Francisco.

0:06:38.720 --> 0:06:42.000
<v Speaker 7>Ed'll right, Brian Wright at their bilateral meeting today at

0:06:42.040 --> 0:06:45.159
<v Speaker 7>the White House, Biden expressing that support you mentioned, and

0:06:45.600 --> 0:06:49.839
<v Speaker 7>Prime Minister Christensen saying that his full desire is to

0:06:49.880 --> 0:06:52.520
<v Speaker 7>be a full contributing member Sweden that.

0:06:52.560 --> 0:06:55.760
<v Speaker 8>Is going to make our alliance stronger and as the

0:06:55.760 --> 0:06:59.600
<v Speaker 8>same value set that we have in NATO and really

0:06:59.640 --> 0:07:02.720
<v Speaker 8>looking axiously looking forward for your membership.

0:07:03.279 --> 0:07:06.560
<v Speaker 4>We do seek common protection, but we also do think

0:07:06.600 --> 0:07:09.840
<v Speaker 4>that we have things to contribute with to be a

0:07:09.880 --> 0:07:11.840
<v Speaker 4>security provider for the whole on.

0:07:12.040 --> 0:07:15.120
<v Speaker 7>NATAS Now that next NATO summit is next week in

0:07:15.160 --> 0:07:19.440
<v Speaker 7>Lithuania and Turkey's rebuffed US attempts to link a request

0:07:19.480 --> 0:07:23.240
<v Speaker 7>to buy F sixteen warplanes to Sweden membership. The deadlock

0:07:23.320 --> 0:07:25.480
<v Speaker 7>has continued for more than a year, and Turkey has

0:07:25.520 --> 0:07:30.120
<v Speaker 7>downplayed Sweden acceptance as a possibility next week. It's being

0:07:30.160 --> 0:07:33.840
<v Speaker 7>reported today that China's President Jihiping personally warned Russian President

0:07:33.840 --> 0:07:37.880
<v Speaker 7>of Vladimir Putin against using nuclear weapons in Ukraine. Telegraph

0:07:37.960 --> 0:07:40.880
<v Speaker 7>reporting it happened in their face to face meeting in March.

0:07:41.240 --> 0:07:44.480
<v Speaker 7>A report says it indicates underlying Chinese misgivings about the

0:07:44.520 --> 0:07:48.920
<v Speaker 7>Russian invasion. Despite public tacit approval for two days in

0:07:48.920 --> 0:07:52.400
<v Speaker 7>a row now, measures used by climatologists say the record

0:07:52.440 --> 0:07:56.239
<v Speaker 7>for hottest day ever recorded on Earth has been broken

0:07:56.280 --> 0:07:59.960
<v Speaker 7>two days in a row, Monday first, then Yesterday even warmer,

0:08:00.080 --> 0:08:02.600
<v Speaker 7>and they say today worldwide could even be warmer still

0:08:03.160 --> 0:08:07.000
<v Speaker 7>Now Noah has not seemed deemed it official as of yet,

0:08:07.040 --> 0:08:09.960
<v Speaker 7>but says likely the hottest in several hundred years and

0:08:10.040 --> 0:08:13.600
<v Speaker 7>probably more and maybe ever. Experts on global warmings say

0:08:13.600 --> 0:08:16.440
<v Speaker 7>they are alarmed but not surprised, and the warmer weather

0:08:16.520 --> 0:08:19.640
<v Speaker 7>could be contributing to five shark attacks in New York

0:08:19.680 --> 0:08:22.760
<v Speaker 7>over the holiday weekend. This more than half the number

0:08:22.760 --> 0:08:25.679
<v Speaker 7>of total attacks in all of last year. George Gorman,

0:08:25.760 --> 0:08:28.440
<v Speaker 7>the Long Island Regional Parks Director, says the coast has

0:08:28.480 --> 0:08:30.560
<v Speaker 7>become a new feeding ground.

0:08:30.640 --> 0:08:33.439
<v Speaker 9>We've seen bait and bunker fish, which are the feet

0:08:33.440 --> 0:08:36.479
<v Speaker 9>of fish for the larger fish, all along the.

0:08:36.240 --> 0:08:39.360
<v Speaker 7>Shoreline, and he says they have to boost oversight.

0:08:39.480 --> 0:08:41.520
<v Speaker 9>You've increased the amount of drones we have on the

0:08:41.559 --> 0:08:44.679
<v Speaker 9>beaches at Long Island State Park, beaches as well as

0:08:44.880 --> 0:08:47.400
<v Speaker 9>wave runners or jet skis, so that we have lifeguards

0:08:47.440 --> 0:08:48.920
<v Speaker 9>in front of the water is patrolling.

0:08:49.040 --> 0:08:52.840
<v Speaker 7>He says, it appears to be the new normal. Hong

0:08:52.960 --> 0:08:56.320
<v Speaker 7>Kong's National Security Police arresting four men who'd been members

0:08:56.360 --> 0:09:02.520
<v Speaker 7>of the now disbanded political group Demostosis CMP, reporting concerted

0:09:02.679 --> 0:09:05.800
<v Speaker 7>effort to keep pressure up on the now defunct protest movement.

0:09:06.240 --> 0:09:09.040
<v Speaker 7>New Jersey Governor Phil Murphy is touting his fifty four

0:09:09.080 --> 0:09:12.520
<v Speaker 7>point three billion dollar budget is having the largest safety

0:09:12.559 --> 0:09:15.720
<v Speaker 7>net on the state's history. In an exclusive Bloomberg Radio

0:09:15.760 --> 0:09:19.800
<v Speaker 7>and television interview today, he says it prepares for the future.

0:09:20.160 --> 0:09:22.080
<v Speaker 10>The fact of the matter is, I do expect that

0:09:22.120 --> 0:09:24.719
<v Speaker 10>the economy will soften, and when you look at our

0:09:24.760 --> 0:09:28.640
<v Speaker 10>big drivers of revenue corporate business tax, personal income tax,

0:09:29.080 --> 0:09:32.960
<v Speaker 10>sales tax, we monitor those literally on a daily basis,

0:09:33.240 --> 0:09:36.120
<v Speaker 10>and we think we've got a big enough surplus and

0:09:36.240 --> 0:09:38.840
<v Speaker 10>enough latitude of this budget that we'll be able to

0:09:38.880 --> 0:09:42.440
<v Speaker 10>withstand a softness and frankly come out the other side

0:09:42.440 --> 0:09:44.640
<v Speaker 10>of that stronger than ever before.

0:09:44.720 --> 0:09:47.400
<v Speaker 7>Murphy also said he'll continue to participate in the fight

0:09:47.440 --> 0:09:50.679
<v Speaker 7>to get Washington, DC to do something about the salt

0:09:50.720 --> 0:09:53.840
<v Speaker 7>tax battle, saying it punishes New Jersey, New York and

0:09:54.000 --> 0:09:58.440
<v Speaker 7>California disappropriately. Global News powered by more than twenty seven

0:09:58.559 --> 0:10:01.480
<v Speaker 7>hundred journalist and analysts over one hundred and twenty countries.

0:10:01.760 --> 0:10:05.880
<v Speaker 7>In San Francisco, I'm Ed Baxter, and this is Bloomberg.

0:10:06.000 --> 0:10:09.200
<v Speaker 2>Hi, Brian Curtis in Hong Kong, alongside Rashad silamat. Our

0:10:09.240 --> 0:10:13.199
<v Speaker 2>guest is Chuck Camello, President and CEO at Essex Financial Services.

0:10:13.640 --> 0:10:16.240
<v Speaker 2>Chuck in looking at the US economy, We've seen a

0:10:16.240 --> 0:10:18.439
<v Speaker 2>little bit of a change in the last month, particularly

0:10:18.440 --> 0:10:21.280
<v Speaker 2>as relates to the market. I just mentioned you probably

0:10:21.320 --> 0:10:23.600
<v Speaker 2>heard us chatting there, Doug and I about the auto

0:10:23.679 --> 0:10:27.160
<v Speaker 2>market GM up sixteen percent over the past month, the

0:10:27.280 --> 0:10:30.640
<v Speaker 2>queues only up four percent. Yet everybody all they're talking

0:10:30.640 --> 0:10:32.760
<v Speaker 2>about what a great first half it was, and there's

0:10:32.800 --> 0:10:35.040
<v Speaker 2>no doubt about that. The NASDAK and the Nasdaq one

0:10:35.160 --> 0:10:37.520
<v Speaker 2>hundred have soared over the first half of the year.

0:10:37.559 --> 0:10:40.480
<v Speaker 2>But in the last month things have changed. Does that continue?

0:10:42.320 --> 0:10:43.760
<v Speaker 11>Yeah, well, thank you so much for having me, and

0:10:44.000 --> 0:10:46.440
<v Speaker 11>I think that what you just described is what we've

0:10:46.480 --> 0:10:49.480
<v Speaker 11>been hearing and sort of seeing about this broadening of

0:10:49.520 --> 0:10:52.320
<v Speaker 11>the market where you know, obviously with NASDAK finishing the

0:10:52.320 --> 0:10:55.120
<v Speaker 11>first half up over thirty two percent, and the S

0:10:55.160 --> 0:10:57.760
<v Speaker 11>and P five hundred up you know, close to seventeen.

0:10:57.840 --> 0:11:00.880
<v Speaker 11>But you know, the equally way did S and P

0:11:01.000 --> 0:11:03.199
<v Speaker 11>five hundred was just up about a little over seven.

0:11:03.440 --> 0:11:05.640
<v Speaker 11>So I think what you're seeing over the past month,

0:11:05.920 --> 0:11:08.520
<v Speaker 11>especially also even in small caps, is starting to see

0:11:08.520 --> 0:11:11.559
<v Speaker 11>a more broadening of the market, which generally should be

0:11:11.600 --> 0:11:14.040
<v Speaker 11>a healthier thing looking into hopefully a good second half

0:11:14.040 --> 0:11:15.720
<v Speaker 11>of twenty twenty three. But there certainly are a lot

0:11:15.760 --> 0:11:18.839
<v Speaker 11>of headwinds and a lot of obstacles in the way, Chuck, I.

0:11:18.800 --> 0:11:21.240
<v Speaker 12>Mean, there was very little breadth in the markets. I

0:11:21.240 --> 0:11:23.120
<v Speaker 12>mean there's only five stocks which drove in there as

0:11:23.160 --> 0:11:24.959
<v Speaker 12>like one hundred to where it's got to this year,

0:11:25.000 --> 0:11:28.120
<v Speaker 12>So I mean, there's no point chasing this surely. Unlet's

0:11:28.160 --> 0:11:29.600
<v Speaker 12>I suppose you ignore those five.

0:11:32.520 --> 0:11:34.920
<v Speaker 11>I think you probably ignore those five at your own peril,

0:11:35.000 --> 0:11:37.760
<v Speaker 11>given you know their historical performances, and obviously they had

0:11:37.800 --> 0:11:40.280
<v Speaker 11>a really, really tough last year in twenty twenty two

0:11:40.360 --> 0:11:43.600
<v Speaker 11>and twenty twenty three, with you know, AI and everything

0:11:43.600 --> 0:11:47.040
<v Speaker 11>else you know, technology wise behind them. But true, I

0:11:47.080 --> 0:11:49.840
<v Speaker 11>think there's a lot of other areas you can allocate

0:11:49.920 --> 0:11:54.760
<v Speaker 11>assets to, especially in given the very vast difference in

0:11:54.840 --> 0:11:59.040
<v Speaker 11>valuation of small cap versus large cap value versus growth. Listen,

0:11:59.120 --> 0:12:02.200
<v Speaker 11>those the the tech stocks, whether it's five, seven or nine,

0:12:02.240 --> 0:12:05.320
<v Speaker 11>you know that we all know the names of you

0:12:05.360 --> 0:12:07.600
<v Speaker 11>know there they can they're great companies to look at

0:12:07.640 --> 0:12:10.000
<v Speaker 11>Meta today, you know up again I think three percent

0:12:10.679 --> 0:12:13.080
<v Speaker 11>with their with their you know they're planning on rolling

0:12:13.080 --> 0:12:15.280
<v Speaker 11>out of competitor to Twitter. But I mean it's it's

0:12:15.320 --> 0:12:18.040
<v Speaker 11>really just, you know, a pretty wild time to be

0:12:18.080 --> 0:12:20.640
<v Speaker 11>in technology. But again, I think the market also gives

0:12:20.640 --> 0:12:24.480
<v Speaker 11>you other really interesting areas to invest in that haven't

0:12:24.520 --> 0:12:26.240
<v Speaker 11>had this kind of run that you've seen.

0:12:26.520 --> 0:12:29.760
<v Speaker 2>Away from the market as a reflection of the economy,

0:12:29.880 --> 0:12:32.880
<v Speaker 2>what what tells the more apt story what's happening in

0:12:32.920 --> 0:12:35.760
<v Speaker 2>the auto market, as we mentioned a few moments ago,

0:12:36.240 --> 0:12:38.120
<v Speaker 2>versus manufacturing.

0:12:40.000 --> 0:12:43.000
<v Speaker 11>Well, I think they're intertwined, to be honest, and I think,

0:12:43.080 --> 0:12:45.760
<v Speaker 11>you know, you still have a very strong US consumer

0:12:45.920 --> 0:12:48.360
<v Speaker 11>that's able to you know, to look with, especially whether

0:12:48.360 --> 0:12:51.640
<v Speaker 11>you're looking at new autos, used autos obviously talking about new,

0:12:51.640 --> 0:12:53.240
<v Speaker 11>but you know the other thing that's out there is

0:12:53.280 --> 0:12:56.440
<v Speaker 11>there are some really attractive financing rates. I mean, yes,

0:12:56.480 --> 0:12:58.800
<v Speaker 11>depending upon your credit and depending on what you're buying.

0:12:59.200 --> 0:13:01.679
<v Speaker 11>But you know, I've seen rates for financing as low

0:13:01.679 --> 0:13:04.240
<v Speaker 11>as point nine percent for three years and one point

0:13:04.320 --> 0:13:07.840
<v Speaker 11>seven or one point nine percent on new GM trucks.

0:13:07.920 --> 0:13:10.560
<v Speaker 11>So I mean there is a market out there, and

0:13:10.640 --> 0:13:13.760
<v Speaker 11>the US consumer continues to be extremely resilient. And I

0:13:13.760 --> 0:13:16.240
<v Speaker 11>think what you just mentioned about autos is another great

0:13:16.280 --> 0:13:19.840
<v Speaker 11>example of the resiliency of the US economy because even

0:13:19.880 --> 0:13:23.400
<v Speaker 11>in the face of higher rates, autos, anything that's financed

0:13:23.559 --> 0:13:25.280
<v Speaker 11>is generally the first thing that's going to bear the

0:13:25.280 --> 0:13:26.640
<v Speaker 11>brunt of the SPED increases.

0:13:27.040 --> 0:13:29.319
<v Speaker 2>That's my point is you'd think that autos would be

0:13:29.360 --> 0:13:33.120
<v Speaker 2>suffering with these high interest rates, and if you look

0:13:33.160 --> 0:13:36.040
<v Speaker 2>at manufacturing, it really is suffering. I mean, the pmis

0:13:36.080 --> 0:13:38.600
<v Speaker 2>have been in the mid to low forties. If you

0:13:38.600 --> 0:13:41.160
<v Speaker 2>look at Chicago, if you look at the broader ism

0:13:41.480 --> 0:13:44.000
<v Speaker 2>that was just out a few days ago, it seems

0:13:44.040 --> 0:13:46.800
<v Speaker 2>to be a completely different story than what you see

0:13:47.080 --> 0:13:48.720
<v Speaker 2>in some consumer.

0:13:48.200 --> 0:13:52.560
<v Speaker 11>Activity one hundred percent. And that's the biggest conundrum, right

0:13:52.559 --> 0:13:55.560
<v Speaker 11>it's this economy has been so resilient, but it's if

0:13:55.600 --> 0:13:57.160
<v Speaker 11>you look at different parts of it, it tells a

0:13:57.200 --> 0:14:00.360
<v Speaker 11>different story, which again I think is what's complicating FED

0:14:00.679 --> 0:14:03.320
<v Speaker 11>and their decision. And again I think with this decision

0:14:03.480 --> 0:14:05.760
<v Speaker 11>in June to pause to sort of see what the

0:14:05.800 --> 0:14:10.520
<v Speaker 11>impacts are. But you know, every week with a different numbers,

0:14:10.640 --> 0:14:13.200
<v Speaker 11>a lot of them are telling two different stories, you know.

0:14:13.240 --> 0:14:16.280
<v Speaker 11>So you've got some good news on inflation with this

0:14:16.520 --> 0:14:20.720
<v Speaker 11>expectation as consumers look forward. The most recent report that

0:14:20.800 --> 0:14:23.080
<v Speaker 11>just came out said people expect inflation to be backed

0:14:23.080 --> 0:14:25.440
<v Speaker 11>down around twenty nineteen levels, which with the FED is

0:14:25.480 --> 0:14:28.120
<v Speaker 11>a great thing, but the numbers don't bear that out.

0:14:28.160 --> 0:14:32.120
<v Speaker 11>So it's really a fascinating period of time that we're in,

0:14:32.160 --> 0:14:34.200
<v Speaker 11>but one that makes it very difficult for the FED,

0:14:34.400 --> 0:14:36.600
<v Speaker 11>which in turn makes it very difficult for the markets.

0:14:37.160 --> 0:14:38.960
<v Speaker 12>Well, Chuck, I mean, you know, this is the conundrum

0:14:39.000 --> 0:14:42.600
<v Speaker 12>which is facing all these Western economies, essentially for central banks.

0:14:42.600 --> 0:14:44.840
<v Speaker 12>And what it is is that, you know, you've got

0:14:44.880 --> 0:14:47.960
<v Speaker 12>this economic resilience in the face of the cost of

0:14:48.000 --> 0:14:51.000
<v Speaker 12>borrowing continually rising, which means that they're going to have

0:14:51.000 --> 0:14:53.760
<v Speaker 12>to go even higher, which is not exactly a helpful

0:14:53.760 --> 0:14:54.600
<v Speaker 12>backdrop for equity.

0:14:54.720 --> 0:14:59.600
<v Speaker 11>Surely, No, that's one hundred percent correct. That is the

0:14:59.640 --> 0:15:02.240
<v Speaker 11>biggest challenge, right, So I think without a doubt personally,

0:15:02.240 --> 0:15:04.240
<v Speaker 11>I think the Fed's going to you know, they're going

0:15:04.280 --> 0:15:06.240
<v Speaker 11>to increase rates in July. We got that coming up.

0:15:06.440 --> 0:15:09.040
<v Speaker 11>I think, you know, twenty fifth, twenty sixth, I think

0:15:09.080 --> 0:15:11.520
<v Speaker 11>in July is the next FED meeting. And listen, that

0:15:11.600 --> 0:15:14.240
<v Speaker 11>is the big conundrum in that they have one tool

0:15:14.360 --> 0:15:17.760
<v Speaker 11>to apply, and that is to crush demand. And you know,

0:15:17.840 --> 0:15:19.880
<v Speaker 11>really the other thing that's making their life very very

0:15:19.920 --> 0:15:22.440
<v Speaker 11>difficult is the labor market. You know, employment and the

0:15:22.520 --> 0:15:25.840
<v Speaker 11>job's picture is extremely strong and given the importance obviously

0:15:25.920 --> 0:15:30.440
<v Speaker 11>to each individual consumer's pocketbook in terms of their job,

0:15:31.040 --> 0:15:34.400
<v Speaker 11>that picture is extremely strong. So yes, the market, though,

0:15:34.440 --> 0:15:38.440
<v Speaker 11>I think, realizes what the future may look like. They've

0:15:38.440 --> 0:15:42.760
<v Speaker 11>baked some of these FED increases in even these the

0:15:42.920 --> 0:15:45.560
<v Speaker 11>meeting minutes that just came out really weren't a huge

0:15:45.560 --> 0:15:49.120
<v Speaker 11>surprise to I think people that were paying attention, you know,

0:15:49.240 --> 0:15:50.960
<v Speaker 11>in terms of what that last meeting was like and

0:15:51.000 --> 0:15:53.400
<v Speaker 11>where they wound up in more importantly, how they got there, right.

0:15:53.440 --> 0:15:55.720
<v Speaker 11>I mean, it was unanimous decision at the end, but

0:15:55.760 --> 0:15:57.560
<v Speaker 11>there were obviously some people there would have been very

0:15:57.600 --> 0:16:00.000
<v Speaker 11>comfortable raising rates a quarter of a point and quite candidly,

0:16:00.120 --> 0:16:01.480
<v Speaker 11>probably had good reason too.

0:16:02.640 --> 0:16:06.720
<v Speaker 2>Let's switch to another discussion US China. There's a lot

0:16:06.720 --> 0:16:09.480
<v Speaker 2>of I think there's a huge gap between de risking

0:16:09.520 --> 0:16:12.640
<v Speaker 2>and decoupling. But every time the US says d risk,

0:16:13.000 --> 0:16:15.360
<v Speaker 2>China says, you mean de couple.

0:16:16.000 --> 0:16:16.160
<v Speaker 9>Uh.

0:16:16.240 --> 0:16:18.720
<v Speaker 2>Do you expect much out of the Yellen meetings this week?

0:16:20.680 --> 0:16:22.920
<v Speaker 11>Yeah, That's that's one of the biggest wildcards I think

0:16:22.960 --> 0:16:25.320
<v Speaker 11>going forward when you look at geopolitical risks. I mean,

0:16:25.400 --> 0:16:28.000
<v Speaker 11>you know, our you know, our relationship with China is

0:16:28.000 --> 0:16:29.960
<v Speaker 11>so important on a lot of different levels, but so

0:16:30.400 --> 0:16:33.880
<v Speaker 11>fraught with problems on every other level. I personally don't

0:16:33.920 --> 0:16:36.920
<v Speaker 11>expect an awful lot, you know, from the Yellen visit.

0:16:37.760 --> 0:16:41.360
<v Speaker 11>I think it's good that it's happening, but these issues

0:16:41.400 --> 0:16:46.800
<v Speaker 11>with you know, the US obviously restricting supply of chips,

0:16:46.840 --> 0:16:50.040
<v Speaker 11>and you know, with ASML, now with the Dutch, you know,

0:16:50.200 --> 0:16:54.480
<v Speaker 11>and China's reaction in terms of limiting materials and minerals

0:16:54.480 --> 0:16:57.200
<v Speaker 11>coming out of China that support you know, obviously chips,

0:16:57.200 --> 0:16:59.680
<v Speaker 11>and national events and things of that nature. That is

0:16:59.720 --> 0:17:02.760
<v Speaker 11>a very very difficult not to try to untie. And

0:17:03.360 --> 0:17:05.760
<v Speaker 11>you know, it's it has a lot of ramifications I

0:17:06.400 --> 0:17:08.520
<v Speaker 11>smarter people than me hopefully can figure it out, but

0:17:08.920 --> 0:17:11.360
<v Speaker 11>it seems like a very very intractable problem right now.

0:17:11.359 --> 0:17:13.560
<v Speaker 11>Which is is I think one of the biggest headwinds

0:17:13.600 --> 0:17:14.760
<v Speaker 11>going into the rest of this year.

0:17:15.720 --> 0:17:15.920
<v Speaker 3>Jack.

0:17:16.040 --> 0:17:19.280
<v Speaker 12>I know we say this every few days before that,

0:17:19.600 --> 0:17:22.080
<v Speaker 12>the first Friday of every month, and I'm talking about

0:17:22.080 --> 0:17:24.480
<v Speaker 12>the jobs report. How important will this one be?

0:17:26.680 --> 0:17:29.040
<v Speaker 11>I think it's I think it's incredibly important, and to

0:17:29.080 --> 0:17:33.040
<v Speaker 11>your point, it's always important. You know, the last job's

0:17:33.080 --> 0:17:34.840
<v Speaker 11>number was what I think it was, three hundred and

0:17:34.880 --> 0:17:37.760
<v Speaker 11>thirty three hundred and thirty nine thousand new jobs past

0:17:37.920 --> 0:17:41.800
<v Speaker 11>prior months were raised upwards of one hundred thousand jobs.

0:17:42.880 --> 0:17:45.639
<v Speaker 11>It's I think it's the biggest It's absolutely the biggest

0:17:45.640 --> 0:17:47.879
<v Speaker 11>thing that's going to be happening. And honestly, when you

0:17:47.880 --> 0:17:51.159
<v Speaker 11>look at all the talk about recession, the one missing

0:17:51.240 --> 0:17:54.159
<v Speaker 11>piece of that is labor and is employment, and that

0:17:54.240 --> 0:17:57.000
<v Speaker 11>just hasn't happened. So I don't know. I think it's

0:17:57.000 --> 0:17:59.560
<v Speaker 11>going to be another strong number. Personally, we'll see what

0:17:59.640 --> 0:18:03.440
<v Speaker 11>Friday brings us, but it's going to be a huge

0:18:03.440 --> 0:18:05.600
<v Speaker 11>bell weather for to make the Fed's job a lot

0:18:05.640 --> 0:18:07.600
<v Speaker 11>harder or a lot easier and I think it's probably

0:18:07.600 --> 0:18:08.320
<v Speaker 11>going to make it harder.

0:18:08.680 --> 0:18:12.040
<v Speaker 2>Okay, thirty second elevator pitch, give me your number one

0:18:12.040 --> 0:18:13.119
<v Speaker 2>call at the moment.

0:18:15.400 --> 0:18:17.680
<v Speaker 11>Boy, So I would say. I would say the number

0:18:17.720 --> 0:18:19.840
<v Speaker 11>one call at the moment is to take advantage of

0:18:19.960 --> 0:18:22.720
<v Speaker 11>areas of the market that haven't performed well, the vast

0:18:22.720 --> 0:18:26.600
<v Speaker 11>disparity and valuations between small caps and large caps value

0:18:26.680 --> 0:18:29.680
<v Speaker 11>versus growth. And again, be choosy when we're talking about value,

0:18:29.760 --> 0:18:32.120
<v Speaker 11>not regional banks and things that might still have some problems.

0:18:32.520 --> 0:18:35.600
<v Speaker 11>But I certainly think looking at small caps value and

0:18:35.640 --> 0:18:40.040
<v Speaker 11>some international exposure, given how far the markets run, would

0:18:40.080 --> 0:18:42.400
<v Speaker 11>be a very nice addition to someone's portfolio. And again,

0:18:42.400 --> 0:18:44.600
<v Speaker 11>if your technology stocks have run, there's nothing wrong with

0:18:44.640 --> 0:18:46.960
<v Speaker 11>trimming some winners. It seems to be something we forget

0:18:47.000 --> 0:18:49.000
<v Speaker 11>to do. I would take a little bit of money

0:18:49.040 --> 0:18:49.800
<v Speaker 11>off the table attack.

0:18:50.840 --> 0:18:53.680
<v Speaker 2>This is Bloomberg Daybreak Asia, your morning brief on the

0:18:53.760 --> 0:18:57.399
<v Speaker 2>story's making news from Hong Kong to Singapore and Wall Street.

0:18:57.520 --> 0:19:01.560
<v Speaker 1>Look for us on your podcast feed every day on Apple, Spotify,

0:19:01.800 --> 0:19:03.800
<v Speaker 1>and anywhere else you get your podcasts.

0:19:03.880 --> 0:19:06.520
<v Speaker 2>You can also listen live each day on Bloomberg eleven

0:19:06.560 --> 0:19:08.920
<v Speaker 2>three to zero in New York Bloomberg ninety nine to

0:19:08.960 --> 0:19:12.160
<v Speaker 2>one in Washington, Bloomberg one oh sixty one in Boston,

0:19:12.480 --> 0:19:15.000
<v Speaker 2>and Bloomberg nine sixty in San Francisco.

0:19:15.119 --> 0:19:18.040
<v Speaker 1>Our flagship New York station is also available on your

0:19:18.080 --> 0:19:23.320
<v Speaker 1>Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.

0:19:23.480 --> 0:19:26.840
<v Speaker 2>Listen coast to coast on the Bloomberg Business app, Sirius

0:19:27.000 --> 0:19:31.200
<v Speaker 2>XM Channel one nineteen, the iHeartRadio app, and on Bloomberg

0:19:31.320 --> 0:19:33.760
<v Speaker 2>dot Com. I'm Brian Curtis.

0:19:33.440 --> 0:19:35.879
<v Speaker 1>And I'm Doug Chrisner. Join us again tomorrow for all

0:19:35.920 --> 0:19:38.400
<v Speaker 1>the news you need to start your day right here

0:19:38.480 --> 0:19:42.399
<v Speaker 1>on Bloomberg day Break Asia