WEBVTT - Middle East Tensions Escalate; Trump Closing Arguments

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Good morning.

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<v Speaker 1>I'm Nathan Hager and I'm Karen Moscow. Here are the

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

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<v Speaker 3>Here, and we begin with tensions escalating in the Middle East.

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<v Speaker 3>An Egyptian soldier has been killed in a clash with

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<v Speaker 3>Israeli troops at the Rafa border crossing in Gaza. The

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<v Speaker 3>death comes after an Israeli airstrike killed and estimated forty

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<v Speaker 3>five Palestinians at a camp for displaced people in the territory.

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<v Speaker 3>We get more from Bloomberg Middle East anchor Jumana Bersecci.

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<v Speaker 4>But the big question for the international community is whether

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<v Speaker 4>or not what happened over the weekend constitutes a red

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<v Speaker 4>line as far as the US are concerned, and whether

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<v Speaker 4>actually it would lead to any impact on the shipment

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<v Speaker 4>of military equipment or even a pause of the military

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<v Speaker 4>equipment that the US had promised to provide Israel with.

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<v Speaker 3>Bloomberg's Jamani Barsati says Israeli Prime Minister Benjamin Nittanyahu has

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<v Speaker 3>called the airstrike in Rafas Sunday a quote tragic mistake.

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<v Speaker 1>Well, Nathan, Former President Donald Trump is taking a hardline

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<v Speaker 1>stance on pro Palestinian demonstrations on college campuses. According to

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<v Speaker 1>her report in The Washington Post, he told donors at

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<v Speaker 1>a recent event in New York that he deports student protesters,

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<v Speaker 1>and he praised New York City police for clearing the

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<v Speaker 1>demonstration at Columbia University. Trump said he supports Israel's right

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<v Speaker 1>to continue its war on terror, but donors at the

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<v Speaker 1>gathering say he didn't mention Prime Minister net Yahoo that

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<v Speaker 1>you have not spoken in years. Trump has complained about

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<v Speaker 1>net Yaho publicly after he acknowledged President Biden's win in

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<v Speaker 1>twenty twenty.

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<v Speaker 4>Well.

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<v Speaker 3>Meanwhile, Karen closing arguments are expected today in Trump's criminal

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<v Speaker 3>hush money trial in New York. Bloomberg Zamy Morris as

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<v Speaker 3>a preview.

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<v Speaker 5>Prosecutors will present their summations first as they try to

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<v Speaker 5>convince the jury that Donald Trump falsified business records. They

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<v Speaker 5>have to prove beyond a reasonable doubt that Trump intentionally

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<v Speaker 5>made or directed others to make false entries in business records,

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<v Speaker 5>did so with the intent to commit another underlying crime,

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<v Speaker 5>and sought to conceal the commission of that crime. Now,

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<v Speaker 5>the defense only has to sway one juror because the

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<v Speaker 5>verdict has to be unanimous. If the jury deadlocks, the

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<v Speaker 5>judge can declare a mistrial. Judge Wan Mershaun said last

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<v Speaker 5>week he hopes the jury will get the case by tomorrow.

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<v Speaker 5>Amy Morris, Bloomberg Radio.

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<v Speaker 1>All right, Amy, thanks. Back at the White House, the

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<v Speaker 1>Biden administration is unveiling a new approach to climate policy.

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<v Speaker 1>Treasury Secretary Janet Yellen and other cabinet officials are recommending

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<v Speaker 1>that companies be allowed to use curbon credits to offset

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<v Speaker 1>some of their so called Scope three emissions, or those

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<v Speaker 1>generated by their suppliers and customers. Carbon offsets have been

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<v Speaker 1>criticized in the past. Some of the methods used to

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<v Speaker 1>calculate carbon dioxide taken out of the atmosphere have not

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<v Speaker 1>fulfilled their claims. Secretary Yellen says voluntary carbon markets can

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<v Speaker 1>help unlock the power of private markets to reduce emissions,

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<v Speaker 1>but only if we address existing challenges well.

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<v Speaker 3>Turning to financial markets, Karen wall Street gets back to

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<v Speaker 3>work following the long holiday week, and perhaps the biggest

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<v Speaker 3>market moving event of the week is going to come

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<v Speaker 3>on Friday. That's when we get the Federal reserves, favorite

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<v Speaker 3>measure of underlying inflation. We get a preview now from

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<v Speaker 3>Bloomberg's Jeff Bellinger.

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<v Speaker 6>The Fed's first line inflation gauge may be about to

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<v Speaker 6>show some modest relief from stubborn price pressures. Economists expect

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<v Speaker 6>the Personal Consumption Expenditures price index minus food and energy

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<v Speaker 6>to rise two tenths of a percent in April. That

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<v Speaker 6>would mark the smallest advance so far this year for

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<v Speaker 6>the measure, which provides a better snapshot of underlying inflation.

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<v Speaker 6>FED Chair Jay Powell and his colleagues have stressed the

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<v Speaker 6>need for more evidence that inflation is on a sustained

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<v Speaker 6>path to their two percent goal before cutting the benchmark

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<v Speaker 6>interest rate. That rate has been at a two decade

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<v Speaker 6>high since July. Jeff Bellinger, Bloomberg Radio, all.

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<v Speaker 1>Right, Jeff, thanks so. We also continue to hear from

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<v Speaker 1>several FED officials this week. This morning in Tokyo, Cleveland,

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<v Speaker 1>FED President Loretta mess said the US Central Bank should

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<v Speaker 1>consider ways to better communicate to the public how economic

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<v Speaker 1>conditions will affect future policy decisions. Mester recommended two key changes,

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<v Speaker 1>adding more words to the Fed's post meeting policy statement

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<v Speaker 1>to describe how officials assess economic developments and potential risk

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<v Speaker 1>to the outlook and more detail to its quarterly summary

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<v Speaker 1>of policy makers Economic Forecasts.

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<v Speaker 3>Well, here's a milestone, Karen. For the first time in

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<v Speaker 3>one hundred years, stock trades on Wall Street will have

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<v Speaker 3>to settle in a single day. Shift to the system

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<v Speaker 3>known as T plus one will cut the time it

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<v Speaker 3>takes to complete every transaction in half. We get more

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<v Speaker 3>from Bloomberg's Crity Gupta.

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<v Speaker 7>This needs to be a T plus five. This needs

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<v Speaker 7>to take five days to settle trades. And the reason

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<v Speaker 7>back then that they had to kind of shrink the

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<v Speaker 7>time was because so many people were getting involved in

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<v Speaker 7>the stock market. It was called the Roaring twenties for

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<v Speaker 7>a reason. Fast forward essentially later, you see the same

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<v Speaker 7>kind of impulse to get involved in the stock market

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<v Speaker 7>in twenty twenty one. And that's where all of this

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<v Speaker 7>comes from. The problem is there are some teething paints

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<v Speaker 7>that come with it, and so when all a lot

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<v Speaker 7>of people are hitting their desks today, they're going to

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<v Speaker 7>be saying, Okay, well, let's all kind of brace for

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<v Speaker 7>impact here, because there are liquidity concerns, there are staffing concerns,

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<v Speaker 7>there are technical glitches that can go wrong as they

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<v Speaker 7>adopt the system, now.

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<v Speaker 3>Boomberg's Critty Gibda says this isn't the first time Wall

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<v Speaker 3>Street's gone through a transition like this, but industry pros

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<v Speaker 3>say it will be the most challenging.

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<v Speaker 1>Well, Nathan, the shine may be back on Apple and China.

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<v Speaker 1>iPhone staged a rebound last month, with shipment's rising fifty

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<v Speaker 1>two percent amid a flurry of discounts from retail partners.

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<v Speaker 1>Apple and its Chinese resellers have been cutting prices since

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<v Speaker 1>it started a year, and those deals are extending into

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<v Speaker 1>this summer sales season. Shares of Apple are at more

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<v Speaker 1>than two percent in early trading.

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<v Speaker 3>Yeah, we got to keep an eye on so called

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<v Speaker 3>meme stocks as well, Karen. They are back on the move.

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<v Speaker 3>Game Stop and AMC Entertainment are two of the most

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<v Speaker 3>actively traded stocks this morning. Shares of game Stop are

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<v Speaker 3>up nineteen and a half percent. The video game retailer

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<v Speaker 3>brought in nearly a billion dollars from a share sale program.

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<v Speaker 3>AMC is up five and a half percent.

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<v Speaker 1>And it's time now for a look at some of

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<v Speaker 1>the other stories making news in New York and around

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<v Speaker 1>the world. And for that were joined by Bloomberg's Michael

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<v Speaker 1>Barr Michael, Good morning.

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<v Speaker 8>Good morning, Karen. A series of powerful storms in the

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<v Speaker 8>central and southern US over the Memorial Day holiday weekend

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<v Speaker 8>has killed at least twenty three people living, homes and

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<v Speaker 8>businesses destroyed, and power outages. In Valley View, Texas. This

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<v Speaker 8>man says he was driving with his wife and took

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<v Speaker 8>shelter at a gas station.

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<v Speaker 3>It got so intense that I could feel every particle

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<v Speaker 3>of dirt, sand, fiberglass, glass hitting my face.

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<v Speaker 8>The destructive storms also caused deaths in Texas, Oklahoma, and Arkansas.

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<v Speaker 8>The big return home day for the holiday weekend was

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<v Speaker 8>not an easy trip for some airline passengers who were

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<v Speaker 8>impacted by bad weather. In the northeast. La Guardia Airport

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<v Speaker 8>and Newark Liberty experienced the worst of canceled and delayed flights.

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<v Speaker 8>The TSA two point nine million people were screened at

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<v Speaker 8>US airports on Friday, a single day record. Passengers on

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<v Speaker 8>board a Spirit Airlines flight who came close to a

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<v Speaker 8>water landing and now sharing their stories the moments before

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<v Speaker 8>their safe return to Montego Bay Terminal in Jamaica, they

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<v Speaker 8>were having a frightening experience. This passenger says of the

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<v Speaker 8>fort Lauderdale, Florida bound flight first announced he would be

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<v Speaker 8>turning the plane back to Jamaica's airport to address a

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<v Speaker 8>maintenance issue, and then she heard the pilot again, and

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<v Speaker 8>when he.

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<v Speaker 5>Said prepare for emergency landing, I took my earbud out

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<v Speaker 5>and I looked at the two people in my raw.

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<v Speaker 8>I said, did he just say water landing?

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<v Speaker 2>And they said yeah.

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<v Speaker 8>Everyone on board was provided with meal vouchers, hotel accommodations,

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<v Speaker 8>and were rebooked. The search for three men who were

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<v Speaker 8>allegedly involved in the death of a soap star continues.

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<v Speaker 8>Los Angeles police say thirty seven year old Johnny wactor

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<v Speaker 8>who played Brando Corbett on ABC's General Hospital, I've interrupted

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<v Speaker 8>a possible car theft right before the gunshots early Saturday morning.

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<v Speaker 8>Fellow actor and friend Colin Flynn.

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<v Speaker 1>Donnie is just an unbelievable friend. He such a humble, loving,

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<v Speaker 1>passionate person.

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<v Speaker 2>He did tons of service to help other people.

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<v Speaker 8>According to police, the suspects who got away with trying

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<v Speaker 8>to steal Wactors catalytic converter on his car. It's primary

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<v Speaker 8>runoff day in Texas. There are seven GOP congressional nominations

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<v Speaker 8>up for grabs. Incumbent Republican Congressman Tony Gonzalez of San

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<v Speaker 8>Antonio is facing a fight for the party nomination against

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<v Speaker 8>Second Amendment activists YouTuber Brandon Herrera, known online as the

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<v Speaker 8>Ak Guy, Global News twenty four hours a day and

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<v Speaker 8>whenever you want it with the Bloomberg News. Now, I'm

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<v Speaker 8>Michael Barr, and this is Bloomberg Karen.

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<v Speaker 1>All right, Michael Barr, thank you time now for the

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<v Speaker 1>Bloomberg Sports Update with John Stashauer. John, good morning, Good.

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<v Speaker 9>Morning, Karen. Celtics. Not only could I really should have

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<v Speaker 9>lost games one and three versus Indiana, the Pacers had

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<v Speaker 9>late leads in both. In Game four, also close was

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<v Speaker 9>tied in the final minute.

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<v Speaker 1>Jayleb stops out of time, troubles to the middle of

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<v Speaker 1>the floor, jump pass.

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<v Speaker 6>Out of the corner Derek White for three.

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<v Speaker 4>Got it.

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<v Speaker 9>Derek White from the right corner.

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<v Speaker 6>As David Boston a one oh five one oh two.

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<v Speaker 9>League on ninety eight five sports iuve in Boston. That

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<v Speaker 9>was the final. Celtics finished the sweep advance to the

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<v Speaker 9>NBA Finals, where the twenty third time looks like they'll

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<v Speaker 9>played Dallas. The Mats are up three zip on Minnesota

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<v Speaker 9>Game four. Tonight, the basketball world remembering Hall of famer

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<v Speaker 9>Bill Walton, passed away from cancer went healthy one of

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<v Speaker 9>the greatest ever nineteen seventy three NCAA Championship game with UCLA,

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<v Speaker 9>he scored forty four points, shot twenty one of twenty two.

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<v Speaker 9>Four years later led Portland to the NBA title and

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<v Speaker 9>that game a long run of foot injuries, but in

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<v Speaker 9>nineteen eighty six he helped the Celtics to the championship,

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<v Speaker 9>and then despite a lifelong stuttering problem, Walton became a

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<v Speaker 9>broadcaster and safe to say, there's never been another one

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<v Speaker 9>like and Bill Walton, who estimated that he had attended

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<v Speaker 9>over eight fifty Grateful Dead concerts, it was seventy one.

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<v Speaker 9>No One at tennis history has dominated a tournament like

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<v Speaker 9>rockfielded out the French Open, but the fourteen time champion,

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<v Speaker 9>now thirty seven, is battled injuries, nearing retirement, and since

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<v Speaker 9>he was unseated, he had to face Sasha asze Verev

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<v Speaker 9>in the opening round of doll lost in straight sets.

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<v Speaker 9>Stanley Cup Playoffs, Dallas came from two goals down to

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<v Speaker 9>win five to three, and Edmonton's Stars lead the series

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<v Speaker 9>two to one Rangers, bringing two to one lead the

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<v Speaker 9>game four tonight at Florida. For the last five Ranger

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<v Speaker 9>winnings are coming overtime. Mets and Dodgers reigned down so

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<v Speaker 9>a straight doubleheader today at City Field, starting the four

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<v Speaker 9>Yankee starter a series at the Angels Orioles fifth straight

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<v Speaker 9>win eleven three over the Red Sox. Nationals beat the

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<v Speaker 9>Braves eight to four. Giants beat the Phillies eight to four.

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<v Speaker 9>Angel Hernandez has ended his umpiring career after thirty three seasons.

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<v Speaker 9>His reputation was that he was baseball's worst umpire. John

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<v Speaker 9>Stashedward Bloomberg Sports Kenny.

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<v Speaker 10>Nava coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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<v Speaker 10>and around the world on Bloomberg dot Com and the

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<v Speaker 10>Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 3>Good morning, I'm Nathan Hager. Weel we are heading into

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<v Speaker 3>a holiday shortened trading week this morning with a lot

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<v Speaker 3>of investor focus on what's coming. At the end of

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<v Speaker 3>this week. The feds preferred reading on inflation could give

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<v Speaker 3>more of a clue on the path for interest rates

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<v Speaker 3>for the next rest of this year. For more, we

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<v Speaker 3>are joined in our Bloomberg Interactive Brokers Studio by Lori Calvacina,

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<v Speaker 3>head of US Equity Strategy at RBC Capital Markets, Lourd,

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<v Speaker 3>good morning. Always great to speak with you. So is

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<v Speaker 3>it all about the PCE at the end of the

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<v Speaker 3>week or is there something else that investors should be

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<v Speaker 3>watching out for this week?

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<v Speaker 11>Well, thanks for having me as always, Nathan. And look,

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<v Speaker 11>you know there it feels like kind of a lightish

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<v Speaker 11>week on the economic date. I think we've got a

0:11:49.120 --> 0:11:51.640
<v Speaker 11>consumer sentiment reading we'll keep an eye on. But I

0:11:51.640 --> 0:11:53.640
<v Speaker 11>do think you're right. I think it's all about inflation,

0:11:54.720 --> 0:11:56.240
<v Speaker 11>you know, in my meetings and I was on the

0:11:56.320 --> 0:11:59.079
<v Speaker 11>road again last week at all you know, centers around

0:11:59.080 --> 0:12:01.080
<v Speaker 11>this debate over when is the Fed going to move?

0:12:02.000 --> 0:12:05.199
<v Speaker 11>When should they move? But really that is the debate

0:12:05.240 --> 0:12:06.960
<v Speaker 11>and at all hinges on the inflation readings.

0:12:07.080 --> 0:12:09.920
<v Speaker 3>Now we got even more clues just this morning on

0:12:09.960 --> 0:12:13.320
<v Speaker 3>a competing network from Minneapolis FED President Neil Keshkari saying

0:12:13.360 --> 0:12:17.440
<v Speaker 3>that he's seeing inflation move sideways and he's still not

0:12:17.520 --> 0:12:20.120
<v Speaker 3>in a hurry to cut interest rates. I mean, is

0:12:20.160 --> 0:12:24.000
<v Speaker 3>that the message that that Fed officials are putting out here?

0:12:24.440 --> 0:12:26.120
<v Speaker 3>Is there sort of consolidation around that.

0:12:26.640 --> 0:12:29.559
<v Speaker 11>So look, I go back to the FED presser a

0:12:29.600 --> 0:12:32.160
<v Speaker 11>couple of weeks ago, and what I heard was the

0:12:32.200 --> 0:12:35.439
<v Speaker 11>case being made for no hikes, not necessarily more cuts,

0:12:35.440 --> 0:12:37.079
<v Speaker 11>And I think there was a little bit of confusion

0:12:37.160 --> 0:12:40.480
<v Speaker 11>initially in the investment community, and I think we're sort of,

0:12:40.559 --> 0:12:42.600
<v Speaker 11>in my mind at least, just sort of circling back

0:12:42.640 --> 0:12:46.360
<v Speaker 11>to that initial message that was put out. I will say, Nathan,

0:12:46.400 --> 0:12:48.360
<v Speaker 11>as I talked to investors last week, and I was

0:12:48.400 --> 0:12:52.120
<v Speaker 11>really mostly talking to long only investors, not hedge funds.

0:12:52.679 --> 0:12:54.280
<v Speaker 11>So maybe there's a little bit of a difference in

0:12:54.360 --> 0:12:57.720
<v Speaker 11>sentiment between those two communities in recent weeks. But for

0:12:57.760 --> 0:12:59.680
<v Speaker 11>the most part, the folks I was talking to last

0:12:59.720 --> 0:13:02.120
<v Speaker 11>week's said, Okay, you know what, if the FED doesn't

0:13:02.160 --> 0:13:05.080
<v Speaker 11>cut and the economy stays strong and we're trying to

0:13:05.160 --> 0:13:08.559
<v Speaker 11>keep the inflation genie in the bottle, that's okay. There

0:13:08.600 --> 0:13:11.040
<v Speaker 11>wasn't really a lot of consternation on the idea that

0:13:11.080 --> 0:13:13.480
<v Speaker 11>we might not get any cuts this year from the

0:13:13.480 --> 0:13:15.679
<v Speaker 11>investors I spoke with last week at least.

0:13:15.840 --> 0:13:19.760
<v Speaker 3>Is that a sentiment that you share that we could

0:13:19.800 --> 0:13:22.160
<v Speaker 3>see more of a rally even if we do remain

0:13:22.200 --> 0:13:24.000
<v Speaker 3>in a higher for longer rate environment.

0:13:24.240 --> 0:13:26.880
<v Speaker 11>So I generally think that the market is fine and

0:13:26.920 --> 0:13:29.680
<v Speaker 11>I think that valuations can stay fine. Where we are.

0:13:29.760 --> 0:13:31.800
<v Speaker 11>You know, we are at my price target of fifty

0:13:31.800 --> 0:13:34.840
<v Speaker 11>three hundred. You know, we haven't done sort of the

0:13:34.840 --> 0:13:37.439
<v Speaker 11>big second half outlook. We haven't done a twenty twenty

0:13:37.480 --> 0:13:39.760
<v Speaker 11>five outlook yet, but we do think based on sort

0:13:39.760 --> 0:13:42.640
<v Speaker 11>of the messaging of where you know, the economy is

0:13:42.840 --> 0:13:44.960
<v Speaker 11>likely to be this year, what the FED is likely

0:13:45.000 --> 0:13:46.640
<v Speaker 11>to do or not do this year, and where inflation

0:13:46.760 --> 0:13:49.480
<v Speaker 11>is likely to end up, we seem fairly valued. And

0:13:49.520 --> 0:13:51.319
<v Speaker 11>I know that's a little bit of a boring message,

0:13:51.320 --> 0:13:53.080
<v Speaker 11>but we do feel a little bit stuck in neutral

0:13:53.120 --> 0:13:55.440
<v Speaker 11>for the moment. I will say I am not in

0:13:55.480 --> 0:13:58.720
<v Speaker 11>the bearish camp. We do have few strategists who are

0:13:58.760 --> 0:14:01.079
<v Speaker 11>still sitting over there, and we do think that we're

0:14:01.120 --> 0:14:04.040
<v Speaker 11>sort of midway through a recovery that begin off recession

0:14:04.200 --> 0:14:07.200
<v Speaker 11>like conditions in twenty twenty two. But sometimes we do

0:14:07.200 --> 0:14:08.720
<v Speaker 11>get a little bit stuck in the market. And that's

0:14:08.720 --> 0:14:09.800
<v Speaker 11>how I'm feeling at the moment.

0:14:10.000 --> 0:14:12.200
<v Speaker 3>Well, it does seem as though the bearish camp is

0:14:12.280 --> 0:14:14.760
<v Speaker 3>getting lighter and lighter by the day, and not a

0:14:14.800 --> 0:14:18.520
<v Speaker 3>whole lot of bears left at least embong prominent voices.

0:14:19.360 --> 0:14:22.440
<v Speaker 3>Could that potentially be a conturing indicator if we have

0:14:22.880 --> 0:14:25.240
<v Speaker 3>potentially too much polishness in the market right now?

0:14:25.280 --> 0:14:27.320
<v Speaker 11>You know, it's a great point, Nathan. And as someone

0:14:27.360 --> 0:14:30.200
<v Speaker 11>who's been knocking around the equity strategy world for you know,

0:14:30.200 --> 0:14:32.240
<v Speaker 11>I think it's been like twenty three twenty four years

0:14:32.520 --> 0:14:35.240
<v Speaker 11>since I made my way into the first strategy job

0:14:35.600 --> 0:14:38.960
<v Speaker 11>as a peon, mind you, but the reality is that

0:14:39.080 --> 0:14:40.960
<v Speaker 11>is something we do tend to learn. When you tend

0:14:41.000 --> 0:14:43.240
<v Speaker 11>to see strategists, you know, sort of rush to you know,

0:14:43.320 --> 0:14:46.080
<v Speaker 11>kind of all raise their targets in a market that's

0:14:46.120 --> 0:14:49.160
<v Speaker 11>been rallying and surprising expectations, it makes you want to

0:14:49.200 --> 0:14:51.720
<v Speaker 11>stop and pause and reflect and be very very careful.

0:14:51.720 --> 0:14:53.320
<v Speaker 11>And I'm not saying that they're all wrong. We do

0:14:53.360 --> 0:14:56.360
<v Speaker 11>talk about our valuation work as more of a compass,

0:14:56.440 --> 0:14:58.840
<v Speaker 11>not a GPS I. You know, we do generally side,

0:14:58.840 --> 0:15:01.080
<v Speaker 11>you know, with the bulls over the b and these scenarios.

0:15:01.600 --> 0:15:03.320
<v Speaker 11>But I do think when we just look at data,

0:15:03.400 --> 0:15:06.360
<v Speaker 11>we look at AAII, we look at CFTC, you know,

0:15:06.400 --> 0:15:09.040
<v Speaker 11>sort of hard weekly data points that we continue to get,

0:15:09.480 --> 0:15:11.760
<v Speaker 11>they're still showing us sort of either at froth on

0:15:11.800 --> 0:15:14.640
<v Speaker 11>the CFTC data or on the cusp of being frothy

0:15:14.680 --> 0:15:16.880
<v Speaker 11>again on the AAII data. So I do think this

0:15:16.960 --> 0:15:18.560
<v Speaker 11>is a good time to maybe just sit and think

0:15:18.600 --> 0:15:19.239
<v Speaker 11>a little.

0:15:19.400 --> 0:15:21.800
<v Speaker 3>Got about a minute left. If we're sitting and thinking

0:15:21.960 --> 0:15:24.480
<v Speaker 3>on the S and P five hundred level, does that

0:15:24.560 --> 0:15:28.720
<v Speaker 3>carry through into broader indexes like the Russell two thousand.

0:15:29.200 --> 0:15:32.480
<v Speaker 11>So the Russell two thousand is weakening again and we're

0:15:32.520 --> 0:15:34.960
<v Speaker 11>retesting those lows that we've made a couple times over

0:15:35.000 --> 0:15:37.080
<v Speaker 11>the past years relative to the S and P. And

0:15:37.120 --> 0:15:40.240
<v Speaker 11>I think that's really because small caps are caught up

0:15:40.280 --> 0:15:42.720
<v Speaker 11>in FED cut optimism and it's been kind of sucked

0:15:42.720 --> 0:15:44.720
<v Speaker 11>out of the market again. That's pressured that part of

0:15:44.720 --> 0:15:46.880
<v Speaker 11>the market. There's a lot of interesting stuff in terms

0:15:46.920 --> 0:15:49.840
<v Speaker 11>of relative valuation positioning looks interesting, but at the end

0:15:49.880 --> 0:15:51.600
<v Speaker 11>of the day, we need the confidence that the fed

0:15:51.640 --> 0:15:53.400
<v Speaker 11>cuts are coming to get that part of the market

0:15:53.400 --> 0:15:54.000
<v Speaker 11>working again.

0:15:54.440 --> 0:15:57.320
<v Speaker 2>This is Bloomberg day Break Today, your morning brief on

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<v Speaker 2>I'm Nathan Hager and I'm Karen Moscow.

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