WEBVTT - Debt Talks to Resume; Turkey Poised for Runoff Vote

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<v Speaker 1>From the Bloomberg Interactive Burgers Studios. This is Bloomberg day

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<v Speaker 1>Break for Monday May fifteenth.

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<v Speaker 2>Coming up today, Debt ceiling talks prepared to resume tomorrow,

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<v Speaker 2>Border crossings drop, bucking expectations of a surge, Turkeys poised

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<v Speaker 2>for a runoff, PHOTUS President Erdawan tries to stay in power.

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<v Speaker 1>And Newmont Mining makes a nineteen billion dollar acquisition.

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<v Speaker 3>New York area hotels will be used to house asylum

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<v Speaker 3>seekers plus victims. On the anniversary of the Dudley Buffalo

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<v Speaker 3>supermarket shooting, where we remembered, I'm Michael Barr.

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<v Speaker 4>More ahead, I'm Tom stan Sharan's fourth.

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<v Speaker 5>The Yankees lost eighty seven of the Rays the Mets

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<v Speaker 5>with two in Washington. The Celtics won Game seven from

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<v Speaker 5>the sixers.

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<v Speaker 6>That's all straight ahead on Bloomberg day Break, the business

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<v Speaker 6>news you need to start your day in just one

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<v Speaker 6>fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

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<v Speaker 6>Business app, and everywhere you get your podcasts.

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<v Speaker 1>Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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<v Speaker 1>are the stories we're following today.

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<v Speaker 3>Karon.

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<v Speaker 2>We start this week with possible signs of progress on

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<v Speaker 2>the debt ceiling. It appears that talks between President Biden

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<v Speaker 2>and congressional leaders will resume tomorrow.

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<v Speaker 7>Bloomberg's Ed Baxter has the story.

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<v Speaker 8>The buzz over the weekend from all sides is that

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<v Speaker 8>progress is being made, and during a reporter spray, President

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<v Speaker 8>Joe Biden was asked, will it.

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<v Speaker 1>Be on Tuesday?

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<v Speaker 9>It's been reported it'll be tuesday.

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<v Speaker 8>Thinks so, and he says he feels good about it.

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<v Speaker 10>I remy not be mistake because I'm a conngeneral optimist,

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<v Speaker 10>but I really think there's a desire on their part

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<v Speaker 10>as well as ours to basagreement.

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<v Speaker 3>I think we'll be able to.

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<v Speaker 8>Do Meanwhile, Congress from Michael McCall, caution's adversaries are watching.

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<v Speaker 9>Particularly China, to see us default.

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<v Speaker 1>You know, our full faith and credit.

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<v Speaker 8>All of course subject to change. In San Francisco, I'm

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<v Speaker 8>at Baxter Bloomberg Daybreak.

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<v Speaker 1>All right, Ed, thanks Willas talks appear to resume, the

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<v Speaker 1>White House is repeating calls for Congress to lift the

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<v Speaker 1>dead limit. The latest such comments come from National Economic

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<v Speaker 1>Council Director Lyle Brainerd.

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<v Speaker 11>The staff is very engaged. I would characterize the engagement

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<v Speaker 11>as serious as constructive. When I talk to CEOs to

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<v Speaker 11>business leaders around the country, they tell me things are

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<v Speaker 11>actually going very well, but their biggest concern is that

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<v Speaker 11>Congress might fail to prevent default and that that would

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<v Speaker 11>be catastrophic.

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<v Speaker 1>Hile Brainerd made the comments on Face the Nation from

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<v Speaker 1>CBA schedule the program every Sunday on Bloomberg Radio Care

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<v Speaker 1>and the.

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<v Speaker 2>Risk of default appears greater than it's ever been and

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<v Speaker 2>that has Wall Street looking for the best place to

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<v Speaker 2>put money to hedge that risk. We have a new

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<v Speaker 2>survey out and Bloomberg's John Tucker joins us with the details.

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<v Speaker 4>John and Nathan the game of Chicken over the debt ceiling,

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<v Speaker 4>putting the glitter on gold. More than half of finance

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<v Speaker 4>professionals say the precious metal is what they would buy

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<v Speaker 4>if the US government fails to honor its obligations, and

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<v Speaker 4>that doesn't seem to be much of an alternative. In

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<v Speaker 4>a distant second to gold US treasuries. That's the pick

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<v Speaker 4>for about fourteen percent of investment for fas Now that's

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<v Speaker 4>a bit ironic since that represents the debt on which

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<v Speaker 4>the country would be defaulting. Bitcoin came in third, even

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<v Speaker 4>ahead of the US dollar the Japanese Yen and the

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<v Speaker 4>Swiss franc in New York on John Tucker Bloomberg Daybreak.

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<v Speaker 1>All right, John, thanks, Now, let's turn to the situation

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<v Speaker 1>at the southern border. The surgeon migrants that had been

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<v Speaker 1>expected after the end of pandemic era restrictions has apparently

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<v Speaker 1>failed to materialize. Homeland Security Secretary Alejandra Mayorcis says there's

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<v Speaker 1>been a fifty percent drop in border encounter since Title

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<v Speaker 1>forty two has lifted last week.

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<v Speaker 12>We have seen I think approximately sixty three hundred on

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<v Speaker 12>Friday and about forty two hundred yesterday by the United

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<v Speaker 12>States Border Patrol, and we saw over ten thousand before

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<v Speaker 12>the end of Title forty two earlier last week.

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<v Speaker 1>Homeland Security Secretary Alejandra Mayorkis spoke to CNN yesterday. He

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<v Speaker 1>says it's still too soon to know if the surgeon

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<v Speaker 1>crossings has peaked.

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<v Speaker 2>Another major political story this morning, Karen brings us to

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<v Speaker 2>the elections in Turkey. Preliminary results show President Retchip type

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<v Speaker 2>Ernawan with a lead of more than two million votes,

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<v Speaker 2>but that may not be enough to avoid a second

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<v Speaker 2>round of voting. We get more from Bloomberg's use of

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<v Speaker 2>Kamali al Dean in his standball.

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<v Speaker 9>Ninety nine percent of the vote down and President ch

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<v Speaker 9>of pipe Erhon maintains that there's still a chance that

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<v Speaker 9>he could win it in round one. In Canaklitch the

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<v Speaker 9>rolo about to sort of forty five percent in round one,

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<v Speaker 9>says he could win round two as it comes to it.

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<v Speaker 9>But reality is also coming together in terms of the

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<v Speaker 9>stronger position that the incumb but president finds himself in

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<v Speaker 9>in round two with the parliamentary numbers speaking in his

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<v Speaker 9>favor and the third contender for the vote in round

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<v Speaker 9>one and Olgan that's about too manion votes and the

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<v Speaker 9>people have spoken to suggest that a good number of

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<v Speaker 9>those people are more likely to vote for President Richard

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<v Speaker 9>pypeer On when it comes down to it.

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<v Speaker 2>Bloomberg's use of Kamali al Dean says risk assets in

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<v Speaker 2>Turkey fell on the results Turkish stock slump sick zero

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<v Speaker 2>point four percent before triggering halt and trading.

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<v Speaker 1>Well in London today, Nathan, UK Prime Minister Rishi Suna

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<v Speaker 1>Guess meeting with Ukraine President Vladimir Zelenski, and we get

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<v Speaker 1>more from Bloomberg. So you and pots in London, you

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<v Speaker 1>and good morning.

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<v Speaker 13>Good morning counter Nathan, Paris, Rome, Berlin and now London.

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<v Speaker 13>Vladimir Zlenski's tour of Europe continues today with a surprise

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<v Speaker 13>visit to the UK by Minisousisinak is set to promise

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<v Speaker 13>more weapons for Kiev, including hundreds of attack drones and

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<v Speaker 13>air defense missiles. Zelenski's whistletop mission comes as Ukrainian forces

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<v Speaker 13>prepare for a counter offenses to take back territory occupied

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<v Speaker 13>by Russia. In London, I'm you and pot'spin Bog daybreak,

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<v Speaker 13>new and thanks.

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<v Speaker 7>Got a couple of deals to begin the week.

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<v Speaker 2>First, Australia's New Crest Mining has agreed to a takeover

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<v Speaker 2>deal with Neumont. Bloomberg's Doug Krisner has the story.

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<v Speaker 14>Newmont first approached its Australian rival back in February with

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<v Speaker 14>a non binding bid worth seventeen billion dollars, but it

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<v Speaker 14>was rejected by the board at Newcrest. Then in April,

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<v Speaker 14>Newmont sweetened the offer by more more than two billion

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<v Speaker 14>dollars and described it as the best and final offer. Well,

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<v Speaker 14>now Newcrest has accepted terms worth roughly nineteen point two

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<v Speaker 14>billion dollars. This deal would create the world's largest gold producer,

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<v Speaker 14>with assets in North and South America, Africa, Australia, and

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<v Speaker 14>Papua New Guinea. Newmont will also expand its exposure to copper,

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<v Speaker 14>a key metal in the clean energy transition in New York.

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<v Speaker 14>I'm Doug Christner, Bloomberg Daybreak.

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<v Speaker 7>All right, Dyke, thanks.

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<v Speaker 1>If we have a nearly nineteen billion dollar oil pipeline deal.

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<v Speaker 1>One Oak has agreed to buy Magellan Midstream Partners. A

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<v Speaker 1>deal would create one of the largest oil and natural

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<v Speaker 1>gas pipeline operators in the US.

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<v Speaker 2>Time now to take a look at some of the

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<v Speaker 2>other stories making news in New York and around the

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<v Speaker 2>world with Bloomberg's Michael bar Good morning, Michael.

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<v Speaker 3>Good morning, Nathan. New York City has accepted tens of

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<v Speaker 3>thousands of migrants, even though officials say the system is strussed.

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<v Speaker 3>Mayor Eric Adams is now converting the Roosevelt Hotel into

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<v Speaker 3>an emergency migrants shelter. The historic hotel close during the

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<v Speaker 3>pandemic and will reopen and transform into an arrival center

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<v Speaker 3>this week, opening nearly one thousand rooms for asylum seekers.

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<v Speaker 3>They will have access to social and medical services. Sunday

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<v Speaker 3>marked one year since the deadly shooting and the supermarket

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<v Speaker 3>in Buffalo, New York, people paused to remember the racially

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<v Speaker 3>motivated massacre at tops supermarket. Church bells chimed across the

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<v Speaker 3>city to honor the ten people killed and three others wounded.

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<v Speaker 3>New York Governor Kathy hokel racism.

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<v Speaker 15>Did not win on to day that the people of

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<v Speaker 15>Buffalo said that love will come out and be the

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<v Speaker 15>winner on this day. I am proud of you, my

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<v Speaker 15>fellow Buffalo, as I'm so proud.

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<v Speaker 3>Senate Majority Leader Chuck Schumer also spoke at the memorial,

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<v Speaker 3>saying families of the victims helped in funding for mental

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<v Speaker 3>health care.

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<v Speaker 12>We put money into mental health services which were so needed,

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<v Speaker 12>all because of the work the families did.

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<v Speaker 7>Now we have a lot more to do.

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<v Speaker 3>This fight isn't over. The eighteen year old gunman was

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<v Speaker 3>sentenced to life in prison without parole. Florida Governor Round

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<v Speaker 3>Descantis appears closer to announcing his run for the White House,

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<v Speaker 3>stumping in Iowa over the weekend. The most recent ABC

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<v Speaker 3>News Washington Post poll of Republicans and GOP leaning independence

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<v Speaker 3>showed a fifty one percent people of preferring Trump to

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<v Speaker 3>be the Republican nominee. That's more than double the lead

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<v Speaker 3>over DeSantis, his nearest opponent. Over the weekend, more than

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<v Speaker 3>fifty twisters tour across the Midwest, from Texas to Nebraska

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<v Speaker 3>to Illinois, one of them deadly striking a town in

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<v Speaker 3>South Texas, killing one man and injuring about a dozen others.

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<v Speaker 3>This man was able to survive the storm.

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<v Speaker 12>Oh Wendell came in and it picked me up up

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<v Speaker 12>ben and threw me into the walls.

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<v Speaker 3>The EF one tornado had wins of up to one

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<v Speaker 3>hundred five miles an hour. China has sentenced a seventy

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<v Speaker 3>eight year old United States citizen to life in prison

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<v Speaker 3>on spying charges. John Hin Wang Lung, who holds permanent

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<v Speaker 3>residency in Hong Kong, had been detained on April fifteenth,

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<v Speaker 3>twenty twenty one, by the counterintelligence Agency. Global News twenty

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<v Speaker 3>four hours a day, powered by more than twenty seven

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<v Speaker 3>hundred journalists and analysts in over one hundred and twenty countries.

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<v Speaker 3>I'm Michael Barr, and this is Bloomberg Nathor.

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<v Speaker 7>Thank you, Michael.

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<v Speaker 2>Time now for our Bloomberg Sports Update, brought to you

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<v Speaker 2>by Tri State AUTI.

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<v Speaker 7>For that we bring in John Stanshallen all.

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<v Speaker 3>Right, Nathan.

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<v Speaker 5>The Yankees and the Rais just comfitted seven games in

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<v Speaker 5>ten days. Six of the seven were decided by one run.

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<v Speaker 5>Both teams had comebacks from six to nothing deficits. The

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<v Speaker 5>Yanks did that on Saturday Yesterday, they trailed three to nothing,

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<v Speaker 5>then led four to three four four fifth inning bases

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<v Speaker 5>loaded too at the first battle that Albert of.

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<v Speaker 7>Ray who fazed was the Raise Taylor Wall.

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<v Speaker 15>One two pitch, swinging a high drive towards right center, heading.

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<v Speaker 3>Back judge to the wall.

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<v Speaker 15>Grand slam. For the second consecutive day, the Rays have

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<v Speaker 15>hit a grand slam, and they've got an eight four

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<v Speaker 15>lead in the Bronx EAE.

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<v Speaker 5>The call Yanks closed that gap, but a week after

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<v Speaker 5>they trying to win the series, but lost eight to seven.

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<v Speaker 5>Another Sunday, going for a series win, another eight to

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<v Speaker 5>seven defeed, Mets had lost five straight series. They won't

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<v Speaker 5>lose the one in Washington that ends tonight. After losing

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<v Speaker 5>to the Nats three to two in the completion of

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<v Speaker 5>the suspended game, they won eight to two, scoring all

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<v Speaker 5>eight in the fifty. Max Sures would beat his old team,

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<v Speaker 5>got his first winning over a month, Celtics improved to

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<v Speaker 5>twenty seven and nine in their history. In Game seven,

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<v Speaker 5>blew out Philadelphia one twelve to eighty eight. Jason Tate

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<v Speaker 5>imported in fifty one points, most ever in a Game seven,

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<v Speaker 5>and so the East Finals Celtics and the Miami Heat.

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<v Speaker 5>For the second straight year, the third time in the

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<v Speaker 5>last four years, the Vegas Golden Knights are into the

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<v Speaker 5>Stanley Cup West Final of five to two Game six

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<v Speaker 5>win at Edmonton, Jonathan Marcisso had a natural hat trick

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<v Speaker 5>three goals, all in the second period. The Aussee Jason

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<v Speaker 5>Day shot sixty two on the Byron Nelson Golf in Dallas'

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<v Speaker 5>first PGA wins in twenty eighteen. And now it's onto

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<v Speaker 5>the PGA Championship. That tee's off Thursday in Rochester. John

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<v Speaker 5>Stashaweer Bloomberg Sports.

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<v Speaker 10>Live from coast to coast, from New York to San Francisco,

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<v Speaker 10>Boston to Washington, DC, nationwide on SIRIUSXAM, the Bloomberg Business app,

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<v Speaker 10>and Bloomberg dot Com.

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<v Speaker 7>This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.

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<v Speaker 2>We are seeing a bit of optimism at the start

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<v Speaker 2>of this new training week with debt talks continuing in

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<v Speaker 2>Washington and about of M and A news. Let's bring

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<v Speaker 2>in Lauri Calvacina for an outlook on the new week,

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<v Speaker 2>head of US equity strategy at RBC Capital Markets.

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<v Speaker 7>Laurie, it's great to speak with you.

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<v Speaker 2>I know you've been talking for really months now about

0:11:29.400 --> 0:11:33.439
<v Speaker 2>the risks to markets from a prolonged debt ceiling standoff.

0:11:33.520 --> 0:11:35.960
<v Speaker 2>It seems like that's where we are right now. So

0:11:36.080 --> 0:11:39.560
<v Speaker 2>do you share this market optimism that we are sort

0:11:39.600 --> 0:11:40.400
<v Speaker 2>of seeing this morning?

0:11:42.160 --> 0:11:44.640
<v Speaker 16>So thanks for having me as always, And look, I

0:11:44.640 --> 0:11:46.959
<v Speaker 16>think the debt ceiling is one of these issues that

0:11:47.440 --> 0:11:50.240
<v Speaker 16>you know, I would say long only investors I talked

0:11:50.240 --> 0:11:52.640
<v Speaker 16>to that hasn't been the top thing they ask about

0:11:52.760 --> 0:11:54.520
<v Speaker 16>over the last few months, but it's been one of

0:11:54.600 --> 0:11:55.960
<v Speaker 16>the things they won't let me get out of a

0:11:55.960 --> 0:11:58.240
<v Speaker 16>meeting before we talk about. So I just think that

0:11:58.360 --> 0:12:00.960
<v Speaker 16>they're you know, I do think it's on people's minds

0:12:00.960 --> 0:12:03.720
<v Speaker 16>for quite some time. I think we have only though recently,

0:12:03.800 --> 0:12:06.400
<v Speaker 16>really started to see the hedge fund community start to

0:12:06.400 --> 0:12:07.040
<v Speaker 16>pay attention.

0:12:08.840 --> 0:12:10.560
<v Speaker 2>And what, as I tell you, when we have the

0:12:10.640 --> 0:12:14.120
<v Speaker 2>hedge funds starting to pay attention to this, what could

0:12:14.120 --> 0:12:17.640
<v Speaker 2>that mean? For the broader market as we get closer

0:12:17.679 --> 0:12:19.000
<v Speaker 2>to that so called X state.

0:12:20.120 --> 0:12:22.520
<v Speaker 16>So look, I think that the issue that I noticed

0:12:22.559 --> 0:12:24.360
<v Speaker 16>I was in London a few weeks ago and we

0:12:24.360 --> 0:12:26.439
<v Speaker 16>were talking to a lot of sort of global macro

0:12:26.520 --> 0:12:28.600
<v Speaker 16>type hedge funds, and they were quite negative on the

0:12:28.679 --> 0:12:31.360
<v Speaker 16>US already because they think the US is expensive, they

0:12:31.360 --> 0:12:33.520
<v Speaker 16>don't believe in the tech trade that was underway at

0:12:33.520 --> 0:12:37.240
<v Speaker 16>the time and it's still underway today. And they also

0:12:37.400 --> 0:12:40.520
<v Speaker 16>just think that the US is economically disadvantaged relative to

0:12:40.520 --> 0:12:42.199
<v Speaker 16>Europe at this point in time. And so that's where

0:12:42.240 --> 0:12:44.440
<v Speaker 16>the debt ceiling comes in as sort of a potential

0:12:44.480 --> 0:12:47.280
<v Speaker 16>negative catalyst to push a market they don't already like

0:12:47.400 --> 0:12:50.960
<v Speaker 16>down and also to throw some extra burden on the

0:12:51.040 --> 0:12:55.000
<v Speaker 16>US economy. You know, my point is, I do think

0:12:55.040 --> 0:12:57.319
<v Speaker 16>that the debt ceiling is a risk for markets. I'm

0:12:57.320 --> 0:12:59.640
<v Speaker 16>not quite as vverish a lot of those London investors

0:12:59.679 --> 0:13:02.200
<v Speaker 16>I spill with, but I do think it does have

0:13:02.240 --> 0:13:04.640
<v Speaker 16>the potential to add to some volatility in the market

0:13:04.679 --> 0:13:07.280
<v Speaker 16>this summer. The thing we've been talking about since February

0:13:07.360 --> 0:13:09.520
<v Speaker 16>is there are kind of two kind of dramas you

0:13:09.559 --> 0:13:12.160
<v Speaker 16>can get associated with in the debt ceiling, A total

0:13:12.240 --> 0:13:14.360
<v Speaker 16>drama year where there's a lot of other stuff going on,

0:13:14.480 --> 0:13:18.480
<v Speaker 16>my twenty eleven, twenty eighteen, twenty fifteen, twenty sixteen, those

0:13:18.520 --> 0:13:21.040
<v Speaker 16>will get you about a ten to nineteen percent draw

0:13:21.080 --> 0:13:23.880
<v Speaker 16>down in the equity market. A non drama filled year

0:13:23.880 --> 0:13:26.160
<v Speaker 16>where this is kind of the only scandal going on,

0:13:27.120 --> 0:13:28.960
<v Speaker 16>that will get you about a five to six percent

0:13:29.040 --> 0:13:31.200
<v Speaker 16>hit to markets. And so our assumption has been we'd

0:13:31.200 --> 0:13:33.079
<v Speaker 16>at least see a five to six percent out of

0:13:33.120 --> 0:13:35.760
<v Speaker 16>volatility from this. But we do think the fact that

0:13:35.800 --> 0:13:39.800
<v Speaker 16>we have this banking crisis, keeping confidence fragile, in recession

0:13:39.800 --> 0:13:42.480
<v Speaker 16>fears really mounting, similar to twenty fifteen twenty sixteen, that

0:13:42.520 --> 0:13:44.680
<v Speaker 16>could put something a little bit more nefarious like a

0:13:44.720 --> 0:13:47.920
<v Speaker 16>ten percent draw down on the table. As always though, Nathan,

0:13:48.000 --> 0:13:49.720
<v Speaker 16>there are a lot of layers of this. This is

0:13:49.760 --> 0:13:52.839
<v Speaker 16>an onion. The more we peel it, the more complicated

0:13:52.880 --> 0:13:55.880
<v Speaker 16>things get. So you know, I do think that from

0:13:55.920 --> 0:13:58.480
<v Speaker 16>a sector perspective, we put out a piece this morning

0:13:58.480 --> 0:13:59.960
<v Speaker 16>that so things might be a little bit more complic

0:14:00.280 --> 0:14:01.719
<v Speaker 16>and we initially assumed.

0:14:01.640 --> 0:14:03.840
<v Speaker 2>Yeah, I want to pick up on your point about

0:14:05.040 --> 0:14:09.160
<v Speaker 2>the uncertainty that from the hedge funds, you're hearing from

0:14:09.520 --> 0:14:12.920
<v Speaker 2>about the growth trade. That has been something that's really

0:14:12.960 --> 0:14:16.240
<v Speaker 2>paid off in recent weeks as we get through this

0:14:16.960 --> 0:14:21.200
<v Speaker 2>debt ceiling standoff. What's your view on whether the growth

0:14:21.240 --> 0:14:23.000
<v Speaker 2>trade is still something worth looking at.

0:14:24.000 --> 0:14:26.080
<v Speaker 16>Well, you know, we had been thinking a few weeks

0:14:26.080 --> 0:14:28.160
<v Speaker 16>ago that the growth trade was due for a breather

0:14:28.320 --> 0:14:30.000
<v Speaker 16>and that the market was due for a breather, and

0:14:30.200 --> 0:14:32.320
<v Speaker 16>this was just really you know, based on the idea

0:14:32.360 --> 0:14:35.080
<v Speaker 16>that kind of this broader text cimt trade is a

0:14:35.160 --> 0:14:38.120
<v Speaker 16>huge component of the broader market from a marketcap perspective.

0:14:38.520 --> 0:14:40.200
<v Speaker 16>And then if you look at the tech trade and stuff,

0:14:40.240 --> 0:14:42.600
<v Speaker 16>we've had a whole bunch of catalysts. So first off,

0:14:42.600 --> 0:14:45.200
<v Speaker 16>we pre traded the set pause and interest rates coming down.

0:14:45.560 --> 0:14:47.920
<v Speaker 16>Then we had the banking crisis that push people out

0:14:47.920 --> 0:14:50.600
<v Speaker 16>of value and into growth again. People have been talking

0:14:50.640 --> 0:14:53.200
<v Speaker 16>about a sluggish economic recovery down the road that's good

0:14:53.200 --> 0:14:55.480
<v Speaker 16>for growth stocks. And then we have this monster earning

0:14:55.520 --> 0:14:58.280
<v Speaker 16>season for tech companies which really gave us some positive catalysts.

0:14:58.280 --> 0:14:59.800
<v Speaker 16>So we've said, look, we've had a lot of positive

0:14:59.840 --> 0:15:02.600
<v Speaker 16>cat for this trade. Maybe you know, it's time for

0:15:02.640 --> 0:15:05.080
<v Speaker 16>the market to take a breather on these debt ceiling fears,

0:15:05.160 --> 0:15:07.960
<v Speaker 16>and you know, what are the other catalysts for tech coming?

0:15:08.520 --> 0:15:10.840
<v Speaker 16>You know what is interesting is I did do an

0:15:10.880 --> 0:15:14.000
<v Speaker 16>analysis last week looking at sector performance and past debt

0:15:14.000 --> 0:15:16.800
<v Speaker 16>ceiling drawshounds, And the funny thing was, Nathan, it's the

0:15:16.880 --> 0:15:19.440
<v Speaker 16>value sectors in the market that tend to get hit hardest.

0:15:19.520 --> 0:15:21.760
<v Speaker 16>And so some of the more recent weakness we've seen

0:15:22.240 --> 0:15:24.600
<v Speaker 16>on financials, even when we had thought some of the

0:15:24.600 --> 0:15:27.840
<v Speaker 16>regional banking fears had died down. You know, we just

0:15:27.880 --> 0:15:29.840
<v Speaker 16>sort of laughed when we saw this because the debt

0:15:29.840 --> 0:15:32.360
<v Speaker 16>ceiling turns out it's just another thing that's much worse

0:15:32.400 --> 0:15:35.160
<v Speaker 16>for values than growth. So maybe we've picked up on

0:15:35.240 --> 0:15:37.640
<v Speaker 16>something else that could buy the growth and tech trades

0:15:37.680 --> 0:15:38.720
<v Speaker 16>for just a little bit longer.

0:15:38.880 --> 0:15:41.600
<v Speaker 2>Only about thirty seconds left here, Laurie. But another potential

0:15:41.640 --> 0:15:44.800
<v Speaker 2>catalyst is coming up tomorrow in the retail sales figures.

0:15:44.840 --> 0:15:47.440
<v Speaker 2>What's your expectation of whether that could add further to

0:15:47.480 --> 0:15:48.240
<v Speaker 2>the volatility.

0:15:49.480 --> 0:15:51.080
<v Speaker 16>So I think, you know, we're kind of living day

0:15:51.120 --> 0:15:53.800
<v Speaker 16>to day on these economic data planes. I think what

0:15:53.880 --> 0:15:56.720
<v Speaker 16>was interesting in this last reporting season was that we

0:15:56.720 --> 0:15:59.480
<v Speaker 16>were seeing evidence of both consumer resiliency. If you looked

0:15:59.480 --> 0:16:02.120
<v Speaker 16>at the more services driven companies and the more good

0:16:02.240 --> 0:16:05.720
<v Speaker 16>driven companies are continuing to talk about channel shifting and

0:16:05.760 --> 0:16:08.480
<v Speaker 16>more negative impacts that they're seeing. So that's the general

0:16:08.520 --> 0:16:11.080
<v Speaker 16>thing that we think we've been continuing to see in consumer.

0:16:11.800 --> 0:16:11.920
<v Speaker 1>You know.

0:16:12.000 --> 0:16:14.280
<v Speaker 16>I do think investors, on the one hand, they're ready

0:16:14.320 --> 0:16:16.120
<v Speaker 16>to get a recession over if we're going to have it.

0:16:16.480 --> 0:16:19.120
<v Speaker 16>On the other hand, they do also want to see

0:16:19.120 --> 0:16:22.280
<v Speaker 16>some evidence that that consumer resiliency still exists. So I

0:16:22.280 --> 0:16:25.440
<v Speaker 16>think we'll look for those kinds of details tomorrow.

0:16:26.160 --> 0:16:29.080
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