WEBVTT - Bloomberg Daybreak: April 4, 2022 - Hour 1 (Radio) 0:00:01.960 --> 0:00:05.680 By from the Bloomberg Interacted Berger's Studios. Is Bloomberg Daybreak 0:00:05.720 --> 0:00:09.880 for Monday, April four two. Coming up this hour, Negotiators 0:00:09.880 --> 0:00:12.959 from Russia and Ukraine prepared to resume peace talks. At 0:00:12.960 --> 0:00:16.720 the same time, Kiev accuses Kremlin forces of war atrocities 0:00:16.840 --> 0:00:19.239 on the economic front, and news survey finds the US 0:00:19.360 --> 0:00:22.440 poise for recession next year, and a prominent Wall Street 0:00:22.440 --> 0:00:25.360 strategist says that bear market rally and stocks is over. 0:00:25.520 --> 0:00:28.360 Resident Biden calls for Congress to act on guns after 0:00:28.360 --> 0:00:32.120 the Sacramento shooting. Plus Broadways McBath has been halted after 0:00:32.200 --> 0:00:35.400 Daniel Craig gets COVID, I like labar more ahead, I've 0:00:35.640 --> 0:00:38.320 stashower and sports easy win for the next shootout loss 0:00:38.360 --> 0:00:41.040 for the Rangers. South Carolina won the women's NC double 0:00:41.040 --> 0:00:45.559 a the men late tonight. That's all straight Ahead on 0:00:45.760 --> 0:00:51.520 Bloomberg day Break on Bloomberg ELEMENTARYO, New York, Bloomberg one, Washington, 0:00:51.640 --> 0:00:55.720 d C, Bloomberg one oh six one, Boston, Bloomberg nine Sixties, 0:00:55.760 --> 0:00:59.640 San Francisco, Sirius x M one nine Team, and around 0:00:59.680 --> 0:01:02.440 the World Old on Bloomberg Radio dot Com and via 0:01:02.480 --> 0:01:09.600 the Bloomberg business and good Monday morning. I'm Nathan Hagar 0:01:09.920 --> 0:01:12.600 and I'm Karen Moscow's and p Future are starting the 0:01:12.600 --> 0:01:14.760 week little change. We're coming up to five on one 0:01:14.760 --> 0:01:16.679 on Wall Street, and we check the markets every fifteen 0:01:16.680 --> 0:01:19.880 minutes throughout the trading day. On Bloomberg again, SMP futures 0:01:19.920 --> 0:01:22.559 are a little change this morning. Dal Future is down 0:01:22.600 --> 0:01:26.520 fifty five and NASDAK futures are up fourteen and the 0:01:26.640 --> 0:01:29.479 decks in Germany is down four tenths of upper set. 0:01:30.000 --> 0:01:33.840 The tenure treasury is down one thirty second, the yel 0:01:33.880 --> 0:01:36.000 two point three eight percent. They yield on the two 0:01:36.080 --> 0:01:39.119 year two point four four percent. Nathan, all right, Karen, 0:01:39.160 --> 0:01:40.920 we'll have more on the markets in a minute. First, 0:01:40.959 --> 0:01:44.319 the latest on the war. Negotiators from Russia and Ukraine 0:01:44.319 --> 0:01:47.880 may resume video talks today. Meantime, the US and Ukraine 0:01:47.880 --> 0:01:51.640 are calling on international courts to investigate potential war crimes 0:01:51.640 --> 0:01:55.520 in the cities around Kiev. Bloomberg's Ed Baxter has the details. 0:01:56.040 --> 0:01:58.640 Secretary of State Anthony B. Lincoln says the videos that 0:01:58.800 --> 0:02:01.680 Ukraine released are all arming. We can't become none to this, 0:02:02.360 --> 0:02:05.760 we can't normalize this um. This is the reality of 0:02:05.760 --> 0:02:08.519 what's going on every single day, and through a translator, 0:02:08.560 --> 0:02:11.919 President Vladimir Zelenski says the investigation has to go further 0:02:12.000 --> 0:02:16.880 than ju Vladimir putting all the military commanders, everyone who 0:02:16.919 --> 0:02:22.480 gave instructions and orders should be punished. Zelenski says the 0:02:22.520 --> 0:02:26.320 atrocities go way beyond torture. In San Francisco, I'm at 0:02:26.360 --> 0:02:29.280 Baxter Bloomberg Daybreak, greaight, and thank you at The European 0:02:29.400 --> 0:02:32.000 Union is also speaking out on the war. Some of 0:02:32.080 --> 0:02:35.560 you governments want to impose more sanctions following allegations of 0:02:35.639 --> 0:02:38.600 Russian war crimes. Be go live to London and get 0:02:38.639 --> 0:02:40.840 the latest from Bloomberg's You in pots Good Morning, You 0:02:41.000 --> 0:02:43.920 in Good Morning count and Nathan As Ukraine sites evidence 0:02:43.960 --> 0:02:46.919 of war crimes in the country's north. Bloomberg understands more 0:02:46.960 --> 0:02:50.440 European sanctions are being discussed. The European Commission is focusing 0:02:50.440 --> 0:02:54.600 on closing loopholes and strengthening existing actions such as export 0:02:54.639 --> 0:02:58.600 controls on technology goods. Also on the table sanctioning banks 0:02:58.639 --> 0:03:01.840 already cut off from the with global payment system, and 0:03:02.120 --> 0:03:06.120 expanding the list of individuals facing sanctions. Live in London, 0:03:06.160 --> 0:03:08.720 I'm your Potspo make Daybreak. Okay you and thanks. Let's 0:03:08.720 --> 0:03:10.840 turn from the war now and focus on the economy. 0:03:10.919 --> 0:03:13.360 Here in the US, a new survey calls for a 0:03:13.440 --> 0:03:16.760 recession as soon as next year. Let's get the latest 0:03:16.840 --> 0:03:19.840 live from Bloomberg's Grenida Young. Good morning, Grinita, Good morning Nathan. 0:03:19.919 --> 0:03:23.480 Close to half of financial professionals and retail investors see 0:03:23.520 --> 0:03:27.000 a US recession next year. That's according to results of 0:03:27.040 --> 0:03:31.040 our Bloomberg Markets Live weekly survey. Only fifteen percent, so 0:03:31.200 --> 0:03:36.960 it could happen this year. Pardon me, uh flag four 0:03:37.000 --> 0:03:41.000 and sixteen percent see a US recession waiting until twenty 0:03:41.040 --> 0:03:43.600 five or later. Just over half of the five twenty 0:03:43.680 --> 0:03:47.040 five respondents believe the inversion between two and ten year 0:03:47.120 --> 0:03:50.800 treasury yields is the most likely warning signal among yield 0:03:50.840 --> 0:03:54.440 curve inversions. Live in New York. I'm Renita Young, Bloomberg 0:03:54.520 --> 0:03:56.680 day Break. A right, Granita, thank you, And how will 0:03:56.720 --> 0:03:59.520 the Fed respond to the current economic climate? We get 0:03:59.560 --> 0:04:02.200 some glue this week with the marks from several officials 0:04:02.200 --> 0:04:05.720 and here with Morris Bloomberg's Charley Pellet. Tomorrow, FED Governor 0:04:05.800 --> 0:04:08.720 Lele Brainerd takes part in a virtual discussion on the 0:04:08.800 --> 0:04:12.480 unequal impacts of inflation. It's hosted by the Minneapolis Fed. 0:04:12.880 --> 0:04:17.719 On Wednesday, Philadelphia FED President Patrick Harker discusses the economic outlook. 0:04:18.000 --> 0:04:21.480 On Thursday, St. Louis FED President Jim Bullard will discuss 0:04:21.480 --> 0:04:26.039 the economy and military policy. Also Thursday, Raphael Bostick of 0:04:26.080 --> 0:04:29.120 the Atlanta Fed and Charlie Evans of the Chicago Fed 0:04:29.360 --> 0:04:32.640 will take part in an event on economic mobility and 0:04:32.760 --> 0:04:38.360 inclusive full employment in New York. Charlie Pellett Bloomberg Daybreak, Alright, Charlie, 0:04:38.360 --> 0:04:40.160 thank you. On Wall Street, it looks like there may 0:04:40.160 --> 0:04:43.200 be more pain ahead for stocks. That's according to one 0:04:43.240 --> 0:04:47.600 prominent strategist. Bloomberg's John Tucker joins us Live with the details, 0:04:47.680 --> 0:04:49.760 John and Nathan. The recent run up of the n 0:04:49.800 --> 0:04:52.200 SMP five hundred was nothing more than a bear market 0:04:52.279 --> 0:04:55.559 rally that has run its course. That's according to Morgan 0:04:55.600 --> 0:04:58.680 Stanley strategist Mike Wilson. He thanks the index as a 0:04:58.760 --> 0:05:01.640 rough mouth ahead as it became more vulnerable to slowing 0:05:01.640 --> 0:05:05.479 economic growth. In a note to clients, Wilson's defensive stocks 0:05:05.480 --> 0:05:08.680 remain the place to be. Morgan Stanley strategists are also 0:05:08.720 --> 0:05:12.080 more constructive on bonds than stocks over the New Yar term. 0:05:12.400 --> 0:05:15.880 They say thirty year treasuries offer an excellent hedge against 0:05:15.880 --> 0:05:19.040 the growth scare they expect from FED tightening. Lie to 0:05:19.120 --> 0:05:21.840 New York on John Tucker Bloomberg Daybreak, All right, John, 0:05:21.880 --> 0:05:24.119 thank you well. In pre market trading this morning, shares 0:05:24.160 --> 0:05:26.760 a TESLA of almost one percent. Over the weekend, The 0:05:26.800 --> 0:05:29.440 company said it delivered more than three hundred ten thousand 0:05:29.440 --> 0:05:32.520 cars worldwide in the first quarter. That's a record and 0:05:32.560 --> 0:05:35.320 came in above analysts estimates. With the same timecar and 0:05:35.360 --> 0:05:38.320 shares of Starbucks are down one percent in early trading. 0:05:38.360 --> 0:05:41.120 Founder Howard Schultz is making moves as he returns to 0:05:41.160 --> 0:05:44.600 the CEO post, suspending a share buyback plan, saying the 0:05:44.600 --> 0:05:47.240 cash could be better spent on stores and staff. Shelt 0:05:47.480 --> 0:05:50.200 sixty eight years old. He's taking over from Kevin Johnson 0:05:50.279 --> 0:05:53.560 on an interim basis while Starbucks searches for a permanent CEO. 0:05:54.000 --> 0:05:56.719 Stocks in Asia performed well over nine Nathan. That's after 0:05:56.800 --> 0:06:00.280 China made a conciliatory move that could remove a key hurdle, 0:06:00.320 --> 0:06:03.360 and it's fined with the US over auditing Chinese firms 0:06:03.440 --> 0:06:05.680 listed in New York. Let's you have the recap from 0:06:05.680 --> 0:06:09.640 Bloomberg's Juliette Sally and Singapore Good Morning, Juliette, Good Morning, Karen. 0:06:09.680 --> 0:06:12.520 The ms CI Asia Pacific Index gained after two sessions 0:06:12.520 --> 0:06:15.680 of losses, boosted by internet giants ten Cent and Ali Baba. 0:06:16.040 --> 0:06:18.400 The Hang Sang Take Index gained more than four percent 0:06:18.520 --> 0:06:21.400 intra day after China modified a decade long rule that 0:06:21.480 --> 0:06:25.719 restricted financial data sharing by offshore listed firms. Japanese shares 0:06:25.800 --> 0:06:28.400 were fairly unchanged, while stocks jumped in India on a 0:06:28.400 --> 0:06:31.800 financial sector merger, and markets in mainland China and Taiwan 0:06:31.880 --> 0:06:35.960 were closed for holidays. In Singapore, Juliette Sally, Bloomberg Daybreak, Okay, 0:06:36.040 --> 0:06:38.360 juliet Thanks. Let's turning to politics in the region now 0:06:38.360 --> 0:06:40.479 with a change on the way. In Hong Kong, chief 0:06:40.480 --> 0:06:43.120 executive Carrie Lamb says she will not run for a 0:06:43.200 --> 0:06:47.000 second term. Bloomberg Daybreak Asia anchor Brian Curtis has more. 0:06:47.560 --> 0:06:50.840 Lamb's announcement ends a tumultuous five years that saw Hong 0:06:50.920 --> 0:06:54.080 Kong become more isolated globally. I was due to a 0:06:54.120 --> 0:06:58.640 crackdown on pro democracy protests and rigid COVID nineteen restrictions. 0:06:59.080 --> 0:07:01.560 Lamb said she and four in Beijing last year that 0:07:01.680 --> 0:07:03.920 she would not run for a second five year term. 0:07:04.000 --> 0:07:07.480 On May eight, Brian Curtis Bloomberg Day Break. Okay, Brian, 0:07:07.520 --> 0:07:10.360 thanks SMP futures right now up two point staff futures 0:07:10.400 --> 0:07:13.560 down twenty NASTAC futures up thirty four. The tenure Treasury 0:07:13.640 --> 0:07:16.840 yield two point three nine. Straight ahead, your latest local 0:07:16.880 --> 0:07:23.640 headlines and the check of sports. This is Bloomberg. That's 0:07:23.680 --> 0:07:25.800 five oh seven on Wall Street. Were forty degrees in 0:07:25.840 --> 0:07:28.440 Central Park already seeing an accident on the southbound Van 0:07:28.520 --> 0:07:31.880 Wick by the Nassau Expressway. Details coming up in traffic. 0:07:31.960 --> 0:07:34.080 First Michael Barr with more on what's going on in 0:07:34.080 --> 0:07:37.360 New York and around the world. Good morning, Michael, Good morning, Nathan. 0:07:37.400 --> 0:07:40.480 President Biden says Congress must act on guns after the 0:07:40.520 --> 0:07:44.560 Sacramento shooting. Biden is calling for banning ghost guns, limiting 0:07:44.600 --> 0:07:49.640 gun manufacturer liability, immunity, and requiring background checks for all 0:07:49.680 --> 0:07:53.400 gun sales. Sacramento police say at least two shooters are 0:07:53.480 --> 0:07:56.760 at large after killing six people and wounding twelve others. 0:07:56.760 --> 0:08:00.560 Early Sunday, Mayor Darryl Steinberg says it's past time to 0:08:00.640 --> 0:08:03.360 deal with gun violence. It is beyond time to have 0:08:03.360 --> 0:08:07.400 the same conversation about guns in America. We have a sickness. 0:08:07.400 --> 0:08:09.680 It's a sickness in our country, It's a sickness in 0:08:09.720 --> 0:08:12.400 our culture. Meyer Steinberg says, so far, there is no 0:08:12.520 --> 0:08:15.680 motive for the shooting. New York Mayor Eric Adams talked 0:08:15.720 --> 0:08:18.120 about the gun violence. Adam says he talked to the 0:08:18.160 --> 0:08:21.120 President about the issue over the weekend. We really have 0:08:21.400 --> 0:08:23.840 to have a combination. We have to stop the flow 0:08:23.880 --> 0:08:26.080 of guns, but we must also do the job of 0:08:26.160 --> 0:08:28.120 getting it goes off the streets. That's only there now, 0:08:28.400 --> 0:08:31.960 and my anti gun unit they're doing that. Just a 0:08:32.000 --> 0:08:36.480 few weeks out, they removed over twenty something guns off 0:08:36.520 --> 0:08:40.160 the street. Adam spoke on CBS his Face the Nation, 0:08:40.280 --> 0:08:43.520 which can be heard Sundays on Bloomberg. Jerry's selection is 0:08:43.559 --> 0:08:46.840 to begin today, and the sentencing trial of Parkland, Florida, 0:08:47.000 --> 0:08:51.160 school shooter Nicholas Cruz, jurors will decide whether they're sentencing 0:08:51.240 --> 0:08:55.040 him to death for murdering seventeen people in the eighteen 0:08:55.080 --> 0:08:58.280 massacre can take place. He confess to opening fire at 0:08:58.320 --> 0:09:02.640 Marjorie's Stoneman Douglas high school and already pleaded guilty. US 0:09:02.720 --> 0:09:05.960 airlines are restoring service after bad weather and staffing issues 0:09:06.000 --> 0:09:09.800 contributed to more than thirty five hundred weekend flight cancelations. 0:09:09.840 --> 0:09:12.480 So far today, according to flight Aware, only about a 0:09:12.559 --> 0:09:16.160 hundred sixty two flights have been canceled. Daniel Craig's returned 0:09:16.160 --> 0:09:18.959 to Broadway in a new version of Macbeth has been 0:09:19.000 --> 0:09:23.600 temporarily halted after the actor contracted COVID. Nineteen performances are 0:09:23.679 --> 0:09:27.199 canceled through Thursday. John Batiste took home Album of the 0:09:27.280 --> 0:09:30.840 Year on airs at last night's Grammys. Ukrainian President Voladimir 0:09:30.880 --> 0:09:33.280 z Lensky appeared in a video message during the show 0:09:33.600 --> 0:09:36.440 asking for support for the war in this country. Tell 0:09:36.520 --> 0:09:39.720 the truth about the war on your social matters on TV. 0:09:39.840 --> 0:09:43.480 Support us in any way. You can't anybody not silence 0:09:43.960 --> 0:09:46.840 and then peaceful gone. Zelenski made his plead during the 0:09:46.840 --> 0:09:49.880 Grammys that were held in Las Vegas. Global News twenty 0:09:49.880 --> 0:09:52.640 four hours a day on air and on Bloomberg quick Take, 0:09:52.720 --> 0:09:56.040 powered by more than twenty seven under journalist and analysts 0:09:56.040 --> 0:09:59.319 more than a hundred twenty countries. Michael Barron, this is Bloomberg. 0:09:59.400 --> 0:10:06.080 Nathan I'm Michael. Thanks come up to five ten on 0:10:06.120 --> 0:10:08.160 Wall Street time for the Bloomberg Sports Update. Good going 0:10:08.200 --> 0:10:12.240 to John Stay Nathan Perennial College basketball Powers meet to 0:10:12.320 --> 0:10:14.240 night in New Orleans and the n C Double A Championship. 0:10:14.280 --> 0:10:17.480 North Carolinas won the title six times Kansas three. That 0:10:17.600 --> 0:10:20.800 two teams met in the nineteen fifty seven final, Gatar 0:10:20.880 --> 0:10:24.640 Heels won fifty four to fifty three and tripled over time. 0:10:24.760 --> 0:10:28.080 South Carolina won the women's title in Minneapolis to forty 0:10:28.120 --> 0:10:31.240 nine over Yukon Gino Orima had been eleven and oh 0:10:31.240 --> 0:10:33.360 in championship games, I've been in the other locker room 0:10:33.400 --> 0:10:35.080 a lot of times, and so I know what that 0:10:35.120 --> 0:10:37.599 feels like. I can have been in this locker room, 0:10:37.600 --> 0:10:39.840 and I know what that feels like. In one team 0:10:39.920 --> 0:10:43.480 is going to be National's champion in Yuro teams nine 0:10:44.080 --> 0:10:47.360 and I think they deserved. They were the best team 0:10:47.400 --> 0:10:50.040 all year. Second championship for the game Cops Rangers at 0:10:50.040 --> 0:10:52.560 the Guard against the Flyers, a team the Rangers should beat. 0:10:52.600 --> 0:10:54.880 They did not tell behind three, nothing tied the game 0:10:54.960 --> 0:10:57.400 of three and the third including goals twelve seconds apart. 0:10:57.720 --> 0:11:00.600 Philadelphia won four three on a shootout goal by ex 0:11:00.760 --> 0:11:03.760 ranger Kevin Hayes. Islanders got a hat check from J. G. Pago. 0:11:03.880 --> 0:11:05.720 He had three goals early in the second period in 0:11:05.720 --> 0:11:08.079 the Aisles through the Devil's four to three easy win 0:11:08.200 --> 0:11:10.880 for the next one eighteen to eighty eight in Orlando, 0:11:11.000 --> 0:11:13.720 just the eighteenth ever trade between the Mets and Yankees, 0:11:13.760 --> 0:11:16.559 they swapped relievers met Gating, a lefty with the departure 0:11:16.559 --> 0:11:19.080 of Aaron Loup. They sent Miguel Castro to the Yanks 0:11:19.120 --> 0:11:21.920 for Joe Ellie Rodriguez. Yankees also sent reliever for Albert 0:11:21.920 --> 0:11:25.600 Abreo to Texas for catcher Close Trevino Tiger, What's calls 0:11:25.679 --> 0:11:29.440 himself a game time decision, unsure whether he'll play the Masters, 0:11:29.480 --> 0:11:32.480 suffered serious injuries fourteen months ago in that car accident. 0:11:32.559 --> 0:11:34.760 Had said recently he was just happy to have his 0:11:34.880 --> 0:11:37.720 limbs intact. The Tiger recently played at eighteen whole practice 0:11:37.760 --> 0:11:42.320 round to AUGUSTA Masters begainst Thursday. Hourly reports throughout on Bloomberg, Ridwan, 0:11:42.640 --> 0:11:45.880 John stash Allard Bloomberg Sports. Yes, indeed all right, John, 0:11:45.920 --> 0:11:48.920 thanks SMP futures right now at five point staff futures 0:11:48.920 --> 0:11:51.920 little change. Nanastack features up forty seven. The actions in 0:11:52.000 --> 0:11:54.199 the bond market once again this morning, with the ten 0:11:54.280 --> 0:11:57.720 year down three thirty seconds, the yield two point, yield 0:11:57.720 --> 0:11:59.800 on the two year two point four four and in 0:12:00.080 --> 0:12:02.920 Urgin of five and a half paces points. This is 0:12:02.960 --> 0:12:09.719 Bloomberg Bloomberg eleven three oh Weather mostly sunny today, mid 0:12:09.760 --> 0:12:11.800 fifties for highs will be in the upper fifties, with 0:12:11.920 --> 0:12:14.760 some late day rain possible Tomorrow rain a nd by 0:12:14.800 --> 0:12:18.280 Wednesday afternoon with hies pack near fifty five currently forty 0:12:18.400 --> 0:12:25.719 in Central Park markets. Headlines and breaking news twenty four 0:12:25.760 --> 0:12:28.800 hours a day at Bloomberg dot Com, the Bloomberg Business 0:12:28.800 --> 0:12:32.480 at and at Bloomberg Quick Tape He's a Bloomberg business 0:12:32.559 --> 0:12:41.439 lash and I'm Karen Moscow songs in Europe and US 0:12:41.520 --> 0:12:44.480 dot Indis. Futures are higher as traders away the latest 0:12:44.520 --> 0:12:46.719 developments in the Ukraine War, with a new push for 0:12:46.880 --> 0:12:50.720 Stiffer's sanctions on Russia overshadowing the planned resumption of peace talks. 0:12:51.040 --> 0:12:53.480 Check the markets every fifteen minutes throughout the trading day 0:12:53.520 --> 0:12:56.360 on Bloomberg Guess and P Futures are up six points 0:12:56.679 --> 0:12:59.920 down futures up seven. They're little changed and nownsday futures 0:13:00.440 --> 0:13:02.920 up fifty the decks in Germany as it will changed 0:13:02.960 --> 0:13:05.520 as well. Ten, your treasury down four thirty seconds. You 0:13:05.559 --> 0:13:07.880 have two point three nine per set yield on the 0:13:07.960 --> 0:13:11.480 two year two point four four percent NIMEX freude oil 0:13:11.640 --> 0:13:14.000 is it will change at n twenty six cents of 0:13:14.080 --> 0:13:16.679 barrel comes schoold is up four tens per cent or 0:13:16.679 --> 0:13:19.480 eight dollars forty cents. In nineteen thirty two, ten announced 0:13:19.840 --> 0:13:22.440 the euro on point one zero two six against the dollar. 0:13:22.520 --> 0:13:24.800 British found one point three one two zero the ends 0:13:24.840 --> 0:13:28.000 at one twenty two point six two and Bitcoin this 0:13:28.080 --> 0:13:30.720 morning lower down nine tens of upper cent and forty 0:13:30.720 --> 0:13:33.680 five thousand, nine hundred sixty dollars. And we are looking 0:13:33.720 --> 0:13:36.400 for reports on factory orders and durable goods orders at 0:13:36.400 --> 0:13:39.680 at ten o'clock Wall Street time. That's a Bloomberg business flash. 0:13:39.679 --> 0:13:41.880 Now here's Michael Barr with more on what's going on 0:13:41.920 --> 0:13:44.920 around the world. Michael, thank you very much. Karen. Both 0:13:44.960 --> 0:13:47.800 the US and Ukraine are calling on international courts to 0:13:47.880 --> 0:13:52.360 investigate potential war crimes in the city surrounding Key. President 0:13:52.400 --> 0:13:54.960 Biden is calling on Congress to act on guns after 0:13:55.000 --> 0:13:58.280 a mass shooting in Sacramento left six dead and twelve 0:13:58.320 --> 0:14:02.199 woom get South Carolina is captured did second national championship 0:14:02.400 --> 0:14:05.240 In the women's NZ Double A basketball tournament. The game 0:14:05.280 --> 0:14:08.760 Cocks shut down yukon STY nine. The men's n C 0:14:08.840 --> 0:14:12.479 Double A tournament final is tonight between Kansas and North Carolina. 0:14:12.800 --> 0:14:15.640 In the NBA, the nixt one Celtics beat the Wizards 0:14:15.640 --> 0:14:20.040 on one oh two. The Warriors were also winners. In 0:14:20.080 --> 0:14:22.680 the NHL, the Islanders beat the Devil's for three. The 0:14:22.760 --> 0:14:25.160 Rangers lost in the shoot out to the Flyers for three. 0:14:25.480 --> 0:14:27.800 Global News twenty four hours a day on air and 0:14:27.960 --> 0:14:31.200 on Bloomberg Quittank, powered by more than twenty seven hundred 0:14:31.240 --> 0:14:34.080 journalists and antalists more than a hundred twenty countries. Michael 0:14:34.120 --> 0:14:37.280 barn this is Bloomberg. Nathan Okay, Michael. Thanks, It's five 0:14:37.400 --> 0:14:41.080 nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. 0:14:41.120 --> 0:14:43.640 This is Bloomberg Daybreak, and as we get ready to 0:14:43.720 --> 0:14:46.760 kick off the first full trading week of the second quarter, 0:14:47.120 --> 0:14:50.040 We're joined now by Lori Calvacina, head of US Equity 0:14:50.120 --> 0:14:53.800 Strategy at RBC Capital Markets. Lorie great as always to 0:14:53.880 --> 0:14:56.800 speak with you. Obviously a lot of focus for investors 0:14:56.800 --> 0:15:00.400 on the war developments and the growth pros bects for 0:15:00.440 --> 0:15:03.440 this economy. We have the two tang yield curve in 0:15:03.520 --> 0:15:09.400 a pretty strong inversion here. How much stock do your analysts, 0:15:09.440 --> 0:15:12.760 at least on the equity side put on the inversion 0:15:12.840 --> 0:15:16.880 of the yield curve? Well, thanks for having me, as always, Look, 0:15:16.920 --> 0:15:18.960 it's a great question. I actually asked my banks to 0:15:19.160 --> 0:15:22.600 this recently, and they're more focused on ten threes um 0:15:22.720 --> 0:15:26.360 and also frankly, you know, sort of looking across different 0:15:26.400 --> 0:15:29.440 sectors in different industries. I think our analysts tend to 0:15:29.440 --> 0:15:31.840 look at the preponderance of the evidence as opposed to 0:15:31.840 --> 0:15:34.880 any one particular indicator. And as we've got you know, 0:15:34.960 --> 0:15:37.480 kind of gotten ready for this upcoming recording season, I 0:15:37.480 --> 0:15:39.160 think one of the things that's really on a lot 0:15:39.160 --> 0:15:42.840 of our analysts mind is just how strong the characterizations 0:15:42.880 --> 0:15:45.640 of demand has been. And so far there aren't really 0:15:45.640 --> 0:15:48.720 any of the occasions that that characteriation of characterization of 0:15:48.760 --> 0:15:51.240 demands his weekend. And it's very hard, you know, to 0:15:51.320 --> 0:15:54.280 sort of anticipate heading into a recession when the descriptions 0:15:54.320 --> 0:15:57.240 of demand are so robust. So I think you know, 0:15:57.280 --> 0:15:59.800 our analysts are vigilant as m I um, but I 0:15:59.800 --> 0:16:02.600 think for now, the stock market has voted and the markets, 0:16:02.680 --> 0:16:04.600 you know, it's sort of acting like we are heading 0:16:04.640 --> 0:16:07.680 into a growth slow down as opposed to a recession. Well, 0:16:07.680 --> 0:16:11.000 we heard from Mike Wilson over Morgan Stanley saying that 0:16:11.040 --> 0:16:14.320 the bear market rally is he terms it is over, 0:16:14.400 --> 0:16:18.120 He's doubling down on a defensive bias. Is he calling 0:16:18.240 --> 0:16:22.160 this wrong? Look? I think it is very hard to 0:16:22.240 --> 0:16:25.200 get excited about defensive sectors at this point in time, 0:16:25.320 --> 0:16:27.920 despite all the worries that we have, you know, sort 0:16:27.960 --> 0:16:30.480 of highly noness e equity investors. And one of the 0:16:30.520 --> 0:16:33.160 reasons is that when we look at our models, defensive 0:16:33.200 --> 0:16:37.440 sectors like healthcare, consumer staples, utilities are already quite over 0:16:37.520 --> 0:16:39.960 valued relative to the broader market. If you look at 0:16:39.960 --> 0:16:43.520 where valuation opportunity is emerging, it's more on the growth 0:16:43.520 --> 0:16:47.640 side of the equation. So areas like consumer discretionary communication services, 0:16:47.760 --> 0:16:51.520 classic technology has seen valuation multiples really come in and 0:16:51.520 --> 0:16:54.880 picklical still look pretty cheap. So I understand, you know, 0:16:54.920 --> 0:16:57.160 sort of the impulse to kind of you know, kind 0:16:57.160 --> 0:16:59.880 of way into defensives here just given all the concern 0:17:00.080 --> 0:17:02.600 that are weighing on the market. From bottom US perspective, 0:17:02.600 --> 0:17:04.679 it's very difficult. And I will also tell you you know, 0:17:04.680 --> 0:17:06.720 and I know I've talked about it on this program before, 0:17:07.320 --> 0:17:09.680 but if you look at the sentiment ages and particularly 0:17:09.680 --> 0:17:13.520 a AII met bull bears um, they have recently been 0:17:13.640 --> 0:17:16.920 the low levels um that were the pandemic loads. I mean, 0:17:17.000 --> 0:17:19.639 just think about that for a moment um. The sentiment 0:17:19.720 --> 0:17:22.560 has been so bad um that it was worse than 0:17:22.600 --> 0:17:24.679 some of the days of the pandemic. And you know, 0:17:24.680 --> 0:17:27.480 I'm very mindful of that as we navigate this environment 0:17:27.520 --> 0:17:29.359 that a lot of the pressures in the market have 0:17:29.480 --> 0:17:31.159 already been baked in, and we don't really want to 0:17:31.160 --> 0:17:33.960 fall into that vicious for text of negativity on our side. 0:17:34.200 --> 0:17:36.280 They made some news late last week with your call 0:17:36.400 --> 0:17:41.960 Elver at RBC two downgrade energy stocks. What was behind that, so, 0:17:42.119 --> 0:17:43.800 you know, thank thanks for Austin is it was a 0:17:43.960 --> 0:17:46.640 very very tough call on our parent and but we 0:17:46.640 --> 0:17:49.439 we do have this sense that market leadership is shifting 0:17:49.440 --> 0:17:51.639 away from value and back to growth, and we've been 0:17:51.680 --> 0:17:54.320 thinking about this for quite some time. Last August we 0:17:54.400 --> 0:17:56.879 actually said we expected value to see a big surge 0:17:56.880 --> 0:17:59.000 and relative performance to start the year, but that by 0:17:59.040 --> 0:18:00.440 the time we got to make you we see the 0:18:00.480 --> 0:18:03.160 market leadership transition back to growth, and we've actually signaled 0:18:03.200 --> 0:18:06.240 recently we thought that transition was happening sooner. Um. You know, 0:18:06.280 --> 0:18:09.600 we've been overweight energy since January, and to be honest, 0:18:09.640 --> 0:18:12.080 it still looks good on our valuation models. Our inservisions 0:18:12.080 --> 0:18:14.920 are very strong, but we know that value really only 0:18:14.960 --> 0:18:18.000 works when the economy is hot, running above average. Growth 0:18:18.080 --> 0:18:20.879 tends to outperform when the economy is running cool and 0:18:20.920 --> 0:18:23.240 my economists recently cut his forecast to two and a 0:18:23.280 --> 0:18:26.280 half percent for this year. Consensus is also looking for 0:18:26.800 --> 0:18:29.080 less than less than trend for next year, a ground 0:18:29.080 --> 0:18:31.080 two point three percent, So we know the economy is 0:18:31.080 --> 0:18:34.600 cooling off. That naturally pushes leadership back towards growth. We 0:18:34.680 --> 0:18:37.000 also passed an important mile marker in the form of 0:18:37.280 --> 0:18:40.679 first said rate hype. Typically, growth leadership resumed after that. 0:18:40.840 --> 0:18:43.920 Value really worked ahead of the first hype. We had 0:18:43.960 --> 0:18:45.960 a decision to make what how we were going to 0:18:46.080 --> 0:18:48.960 take value exposure down. We surveyed our analysts and found 0:18:48.960 --> 0:18:51.280 that their conviction level on energy had simply come down 0:18:51.280 --> 0:18:53.720 relative to where it had been. They're still constructive, but 0:18:53.840 --> 0:18:56.359 not nearly as constructive as they as they have been 0:18:56.400 --> 0:18:58.240 based on the quarterly survey that we do with them 0:18:58.240 --> 0:19:01.560 that we just completed last week. About thirty seconds left here, Laurie, 0:19:01.600 --> 0:19:04.240 But do you expect that rotation from value into growth 0:19:04.280 --> 0:19:07.560 to continue if the FED is more aggressive with rate hikes. 0:19:07.600 --> 0:19:11.000 If we see like fifty basis point increases at multiple meetings, 0:19:11.760 --> 0:19:13.600 you know, we think the FED is already priced in 0:19:13.720 --> 0:19:17.040 from evaluation perspective. The economic damage that may happen from 0:19:17.040 --> 0:19:19.479 those types is not. So that's that's another question. It's 0:19:19.520 --> 0:19:21.920 something else we have to monitor. But we do think 0:19:22.000 --> 0:19:24.480 that the punchline from those hypes and that aggressive FED 0:19:24.600 --> 0:19:28.040 stance is cooling off economic growth, not necessarily tilting us 0:19:28.040 --> 0:19:30.640 into a recession, but the cool down on that economic 0:19:30.680 --> 0:19:33.080 growth is the fundamental catalyst that pushes the market back 0:19:33.119 --> 0:19:35.760 to growth. Thanks for this as always, Lorie, great having 0:19:35.760 --> 0:19:39.160 you with us. Lori Calvacina, head of US Equity Strategy 0:19:39.200 --> 0:19:43.280 at RBC Capital Markets. Right now, SMP futures are up, 0:19:43.840 --> 0:19:46.240 but just by six points. Now Future is up five 0:19:46.720 --> 0:19:49.240 NASTAC futures are higher by forty eight points. That's the 0:19:49.280 --> 0:19:50.880 gain of a third or one percent. To tend your 0:19:50.880 --> 0:19:53.680 treasury is down three thirty seconds. The yield two point 0:19:53.720 --> 0:19:56.879 three nine yield on the two year is higher by 0:19:56.880 --> 0:19:59.600 almost six basis points at two point four or four 0:19:59.640 --> 0:20:03.520 percent on a two year Treasury note. This is Bloomberg 0:20:07.440 --> 0:20:10.520 Bloomberg eleven three oh weathers mostly sunny today. Has your 0:20:10.560 --> 0:20:13.520 fifty five degrees late day rain possible tomorrow with a 0:20:13.600 --> 0:20:16.520 high near sixty. The rain will end by Wednesday afternoon 0:20:16.520 --> 0:20:18.760 with highs back in the mid fifties, currently forty in 0:20:18.840 --> 0:20:26.680 Central Park. Broadcasting live from the Bloomberg Interacted Broker Studio 0:20:26.800 --> 0:20:29.720 in New York. Bloomberg E Living free on to Washington, 0:20:29.800 --> 0:20:33.880 d C. Bloomberg to Boston Bloomberg one O six one 0:20:33.960 --> 0:20:36.920 to San Francisco Bloomberg and M sixty to the country 0:20:37.000 --> 0:20:40.199 sirius XM chto one nine and around the globe the 0:20:40.200 --> 0:20:44.119 Bloomberg Business APT and Bloomberg Radio dot Com. This is 0:20:44.119 --> 0:20:53.040 Bloomberg Daybreak. It's five thirty on Wall Street. Good morning, 0:20:53.080 --> 0:20:56.159 I'm Nathan Hager and I'm Karen Moscow or just about 0:20:56.200 --> 0:20:58.800 four hours away from the open of US trading. Let's 0:20:58.840 --> 0:21:00.199 get you up to date in the news you need 0:21:00.240 --> 0:21:02.960 to know at this hour. Russia and Ukraine may resume 0:21:03.080 --> 0:21:07.160 video talks later today. Even as Kiev accuses Kremlin forces 0:21:07.160 --> 0:21:12.080 of carrying out atrocities, Russia is dismissing images of executed 0:21:12.160 --> 0:21:16.280 unarmed civilians is fake. Ukrainian President Vladimir Zolenski says the 0:21:16.320 --> 0:21:21.040 war is destroying his country. We couldn't have imagined anything 0:21:21.119 --> 0:21:25.520 like this, because this is a maniac type of decision 0:21:25.760 --> 0:21:30.200 to destroy the whole nation. Zelenski spoke through an interpreter 0:21:30.240 --> 0:21:32.600 to face the Nation on CBS. You can catch the 0:21:32.600 --> 0:21:36.200 show every Sunday here on Bloomberg Radio. President Zelensky also 0:21:36.200 --> 0:21:38.760 made an appearance at the Grammys with a video message 0:21:38.800 --> 0:21:43.520