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Speaker 1: Live from the Bloomberg Interact at Broker's Studios. Is Bloomberg

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Speaker 1: day Break for Monday, February twenty seventh. Coming up today,

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Speaker 1: Wall Street comes off its worst week since December. Fisers

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Speaker 1: are portedly in talk to buy a major biotech company.

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Speaker 1: Goldman Sachs holds a key investor meeting this week, and

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Speaker 1: a new report it says a lab leakin China most

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Speaker 1: likely caused the COVID pandemic. Uber and lift drivers held

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Speaker 1: a twelve hour strike at LaGuardia Airport, plus those who

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Speaker 1: died in the nineteen ninety three World Trade Center attack

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Speaker 1: were remembered. I'm Michael barn More ahead, I'm John Stas

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Speaker 1: Sharon sports so much they did. Win for the Rangers,

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Speaker 1: shut out win for the Islanders. The next loss of

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Speaker 1: the Buzzer, the Nick So's the Celtics tonight. That's all

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Speaker 1: straight ahead on Bloomberg day Break, The business news you

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Speaker 1: need disturb your day, and just one fifteen minute podcast

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Speaker 1: each pointing on Apple, Spotify, The Bloomberg Business Appen everywhere

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Speaker 1: you get your podcasts. Good morning, I'm Nathan Hagar and

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Speaker 1: I'm kieron Moscow. Here are the stories we're following today.

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Speaker 1: Wall Street is coming off its worst week since December.

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Speaker 1: In fact, the SMP five hundred has dropped for three

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Speaker 1: straight weeks. Concerns over sticky US inflation are weighing on

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Speaker 1: sentiment as traders reassess FED policy. We spoke exclusively with

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Speaker 1: International Monetary Fund Managing Director Kristallina Georgieva late yesterday. I

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Speaker 1: want to be clear, we are not yet seeing inflation

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Speaker 1: going down to target fast enough, so central banks need

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Speaker 1: to stay the course until we are comfortable that price

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Speaker 1: stability is returning. I am F Managing Director Krystallina Georgieva

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Speaker 1: made the comments in an interview with Bloomberg at the

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Speaker 1: G twenty Finance Ministers meetings in India. Will turning to

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Speaker 1: corporate news now, Nathan. We may be closing in on

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Speaker 1: a big pharma deal. According to The Wall Street Journal,

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Speaker 1: Fiser as an early stage talks to buy Cjen. The

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Speaker 1: deal order reportedly commanded prem above the company's thirty billion

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Speaker 1: dollar market value. Cgen develops drugs to treat cancer and

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Speaker 1: related diseases. Man Goldman Sachs has poised to make headlines

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Speaker 1: Karen following a forgettable twenty twenty two The bank's leaders

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Speaker 1: are holding their second ever investor Day this week. Let's

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Speaker 1: get the details live with Bloomberg. Dan Schwartzman, Good morning, Dan,

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Speaker 1: A good morning, Nathan and Karen. It is a big

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Speaker 1: week for Goldman Saks, the Wall Street firm presenting its

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Speaker 1: investor Day, with questions surrounding the bank's loss of almost

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Speaker 1: six billion dollars and it's failed for rent and consumer banking.

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Speaker 1: Executives are expected to hype up the bank's asset and

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Speaker 1: wealth management business, known as AWM, with its two and

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Speaker 1: a half trillion dollars in assets. Last year, profits at

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Speaker 1: Goldman fell by half, which led to some questioning the

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Speaker 1: standing of CEO David Solomon within the bank. Live in

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Speaker 1: New York, Dan Schwartzman, Bloomberg Daybreak. All right, Dan, thanks,

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Speaker 1: So we have word of more job cuts at Twitter.

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Speaker 1: Bloomberg News has learned the social media company laid off

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Speaker 1: more workers over the weekend. Sources say the layoffs hit

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Speaker 1: employees on teams across the company, including engineering and product.

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Speaker 1: This comes on the heels of Elon Musk cutting more

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Speaker 1: than thirty seven one hundred jobs last year, about half

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Speaker 1: of the company's workforce. On Wall Street this week Karen

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Speaker 1: will have plenty of earnings reports to digest, including a

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Speaker 1: slew of retail results, So we get a preview from

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Speaker 1: Bloomberg's Charlie Pellet. We'll be hearing from Costco, home improvement retailer, Low's,

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Speaker 1: Kroger Ross Stores, and Dollar Tree. The reports come amid

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Speaker 1: accelerating inflation and more pressure on the Federal Reserve to

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Speaker 1: keep rates higher for longer. Kate Moore's head of thematic

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Speaker 1: strategy at black Rock Financial. What I've been really encouraged

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Speaker 1: with is how honest the guidance was during reporting fourth quarter.

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Speaker 1: You didn't get a lot of companies kind of sugarcoating

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Speaker 1: the experience and really speaking to investors in a way

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Speaker 1: that encourage them that they were going to continue to

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Speaker 1: trim costs on the margins. They were going to focus

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Speaker 1: on smart growth, not growth at any cost. Also reporting

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Speaker 1: this week, several tech companies including Agulant, Broncom, Dell, HP,

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Speaker 1: and VMware in New York. Charlie Pellet, Bloomberg Daybreak. All right, Charlie,

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Speaker 1: thank you well. Over the weekend, we got earning from

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Speaker 1: Berkshire Hathaway. We'ren Buffett's Conglomerate reported weaker results and some

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Speaker 1: of its key businesses, underscoring fears the US economy is

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Speaker 1: facing a bumpy road ahead. At the same time, Buffett

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Speaker 1: reminded investors to keep the faith in the US economy.

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Speaker 1: He also tauted Berkshire's record operating earnings of thirty point

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Speaker 1: eight billion dollars for the year. We now turned to

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Speaker 1: a developing story involving the pandemic. An intelligence report by

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Speaker 1: the Energy Department has reportedly identified a Chinese lab leak

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Speaker 1: as the most likely origin of COVID nineteen. According to

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Speaker 1: The Wall Street Journal, the conclusion was reached due to

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Speaker 1: new intelligence, though the judgment was made with quote low confidence.

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Speaker 1: Bloomberg Z Baxter has the details. This is reported to

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Speaker 1: be a classified document at one of several but the

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Speaker 1: report says the Energy Department believes it was due to

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Speaker 1: a mishap at a biological lab. National Security advisor Jake

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Speaker 1: Sullivan on CNN says this is part of an ongoing investigation.

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Speaker 1: The reference to the Department of Energy. President Biden specifically

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Speaker 1: request that the National Labs, which are part of the

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Speaker 1: Department of Energy, be brought into this assessment because he

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Speaker 1: wants to put every tool at use, Sullivan says key

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Speaker 1: members of Congress will be involved in the loop of

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Speaker 1: all investigations. In San Francisco, I'm at Baxter Bloomberg Daybreak,

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Speaker 1: All right and thanks well Over in India today, the

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Speaker 1: world's top finance chiefs failed to agree on a consensus

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Speaker 1: statement at meetings due to an impasse of our language

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Speaker 1: on the war. In Ukraine, India issued a chair's summary

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Speaker 1: as opposed to a traditional Communica, Russia and China disagreed

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Speaker 1: with two paragraphs on the war that had been cleared

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Speaker 1: by all participants back in November. And in Europe today,

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Speaker 1: Karen Brexit is back in focus. The UK and EU

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Speaker 1: are preparing to unveil a post Brexit settlement on Northern Ireland.

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Speaker 1: Let's go to London and get the latest live with

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Speaker 1: Bloomberg's You and Pot's Good Morning, Uin, Good morning, Nathan

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Speaker 1: and Karen. European Commission presidents Ursula Vondeline will be in

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Speaker 1: the UK for an early afternoon meeting later today, surely

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Speaker 1: a sign that an announcement on trade is imminence. The

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Speaker 1: talks with the British Prime Minister will be held in Berkshire,

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Speaker 1: where the King's Windsor Castle is situated. The deal seeks

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Speaker 1: to fix an earlier agreements overtrade in Northern Ireland, seeking

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Speaker 1: to balance the demands of business, the European Union, politicians

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Speaker 1: in norther Ireland and his own lawmakers has been a

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Speaker 1: big headache for the PM in London. I'm you and

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Speaker 1: Pat Spoon back day break. It's thirty five degrees in

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Speaker 1: New York and we have winter storm warnings and effect

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Speaker 1: north and west of the cities. The snow rives in

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Speaker 1: New York tonight. We'll get up to near forty degrees,

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Speaker 1: could have one to three inches before we get down

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Speaker 1: to the upper thirties. Time now to take a look

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Speaker 1: at some of the other stories making news in the

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Speaker 1: city and around the world with Bloomberg's Michael Bark. Good morning, Michael,

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Speaker 1: Good morning. Nathan Uber and left Driver staged a twelve

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Speaker 1: hours strike at LaGuardia Airport on Sunday as they call

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Speaker 1: for higher pay. Drivers stopped dropping off customers from noon

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Speaker 1: to midnight. Drivers are upset after Uber filed a lawsuit

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Speaker 1: to stop a planned pay raise approved by the New

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Speaker 1: York Taxi and Limousine Commission. Uber defended its decision, saying

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Speaker 1: it has already implemented raises for drivers three times since

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Speaker 1: twenty twenty. Before there was the nine eleven attack on

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Speaker 1: the World Trade Center, there was the nineteen ninety three

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Speaker 1: terrorist attack. Yesterday, the six victims who died in that

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Speaker 1: attack were remembered. On the thirtieth anniversary ceremony was held

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Speaker 1: at the North Pool of the nine eleven Memorial and Museum.

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Speaker 1: More than one thousand people were injured when a van

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Speaker 1: loaded with explosives was detonated below the North Tower. The

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Speaker 1: list of speakers and yesterday's memorial service included New York

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Speaker 1: Mayor Eric Adams. There was only an American dream, and

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Speaker 1: because of that, many peoples had the tendessee to harm us.

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Speaker 1: Because of that dream, we would never allow that dream

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Speaker 1: to fail. Along with many of Adams, other speakers included

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Speaker 1: New York Governor Kathy Hokel. They may have thought they

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Speaker 1: were attacking a building. It seemed like a building was

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Speaker 1: what was the target. But they're also launched attack on

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Speaker 1: our democracy, our institutions, our symbols of success, and ultimately

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Speaker 1: the American people send it. Majority Leader Chuck Schumer was

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Speaker 1: also in attendance. Starting this morning, Full Long Island Railroad

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Speaker 1: service begins a Grand Central Medicine. The change means many

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Speaker 1: commuters in Port Washington will now have to transfer to

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Speaker 1: get to Penn Station. The MTA maintains there will be

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Speaker 1: a forty one percent increase in service. Saudi Arabia signed

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Speaker 1: agreements worth four hundred million dollars with Ukraine. It comes

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Speaker 1: after the Kingdom's foreign minister made a surprise visit to Kiev.

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Speaker 1: SpaceX and NASA scrubbed a rocket launch from the Kennedy

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Speaker 1: Space Center in Florida shortly before left off early this morning.

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Speaker 1: We have a whole tonight due to the tea tab issues,

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Speaker 1: in other words, a ground system issue. It postponed the

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Speaker 1: mission to send US astronauts and a Russian cosmonaut to

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Speaker 1: the International Space Station. Global News twenty four hours a day,

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Speaker 1: powered by more than twenty seven hundred journalists and analysts

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Speaker 1: and over one hundred twenty trees. I'm Michae Labard. This

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Speaker 1: is Bloomberg, Nathan, Thank you, Michael. Time now for our

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Speaker 1: Bloomberg Sports update. Bronti by Trice stayed down. Hey, Good morning,

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Speaker 1: John Stash Morney, Nathan. The knicks are hots of a

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Speaker 1: good time for a good test Celtics cover into the

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Speaker 1: Garden tonight. They have got the NBA's best record forty

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Speaker 1: four and seventeen. They just had a thrilling win at Philadelphia.

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Speaker 1: The Knicks have won their last five. They're unbeaten since

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Speaker 1: that trade to get Josh Hart. The Milwaukee Bucks just

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Speaker 1: thea half game behind Boston. They'd won fourteen in a row,

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Speaker 1: having Lawson's January twenty first, they were without Jana's sons Decompo.

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Speaker 1: He had a wrist injury. Now it's his knee, and

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Speaker 1: the Buffs still beat Phoenix. The Nets lost in Atlanta

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Speaker 1: one twenty nine, one twenty seven, a Trey Young game

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Speaker 1: winning shot at the Buzzer. It came just after the

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Speaker 1: Hawks hired a new coach, Quinn Snyder spent many years

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Speaker 1: with Utah. The Hawks had recently fired Nate McMillan. The

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Speaker 1: Nets nine and fourteen, since they had that twelve game

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Speaker 1: winning streak when they still had Kevin Durant and Kybrie

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Speaker 1: irving Kybrie now in Dallas, the MAVs blew a twenty

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Speaker 1: seven point lead. They lost the Lakers in Portland seventy

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Speaker 1: one points for Damian Lillard and the Blazers went over

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Speaker 1: Euston Lillard made thirteen three pointers, one shy of the

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Speaker 1: NBA record at the Garden. Rangers ended that four game

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Speaker 1: losing Street five two over Los Angeleos. There was a

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Speaker 1: spitting incident. DeAndre Miller got a match penalty. Drew Downy

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Speaker 1: was the recipient. Rangers coaches Gerard Blonde. I didn't see nothing, honestly.

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Speaker 1: I mean, obviously it happened to lost, and the kids

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Speaker 1: feel bad about it, and he said it was an accident,

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Speaker 1: so that's all. But I didn't see that. I couldn't

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Speaker 1: see nothing, know Net Dowdy after the game, Islanders of

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Speaker 1: four nothing to win at Winnipeg. Rutgers with a win

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Speaker 1: at Penn State and Tampa first and in Grand Slam

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Speaker 1: for Jose Trevino Yankee seven nothing over Atlanta. Braves had

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Speaker 1: only one hit. Max Scherzer pitched in Port Saint Lucian

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Speaker 1: the Mets the NEETs. John Stashward Bloomberg Sports Live from

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Speaker 1: coast to coast, from New York to San Francisco, Boston

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Speaker 1: to Washington, d C. Nationwide on Sirius x AM. The

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Speaker 1: Bloomberg Business Happened. Bloomberg dot Com. This is Bloomberg daybreak.

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Speaker 1: Good morning, I'm Nathan Hagar. We are seeing stocks get

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Speaker 1: a lift to start the week, particularly in Europe and

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Speaker 1: in the futures contracts, after one of the worst weeks

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Speaker 1: for US equities since December. So let's get you set

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Speaker 1: for the trading week ahead. For that, we're joined by

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Speaker 1: Dennis Gartman, the chairman of the University of Akron Endowment

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Speaker 1: Investment Committee and the former publisher of the Gartment Letter.

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Speaker 1: Great as always to speak with you. Dennis. What's the

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Speaker 1: trajectory you see for investments as we head into the

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Speaker 1: final month of the first quarter. Well, Nathan, good to

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Speaker 1: hear from you this morning, and I have been barished

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Speaker 1: now for the past three or four weeks. I think

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Speaker 1: that it's important to note that the SMP has fallen

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Speaker 1: below forties and four thousand. I think that's an important

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Speaker 1: technical and psychological circumstance area to be concerned about. I

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Speaker 1: think that Friday's inflation number is indicative of the fact

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Speaker 1: that the Fed has no choice but to continue to

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Speaker 1: be as aggressively tightening monetary policy as they have been

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Speaker 1: for the past months. They're probably going to take the

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Speaker 1: overnight FED funds rate to at least five and a

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Speaker 1: half percent. There's been some talk that they may go higher.

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Speaker 1: I have my doubts as to whether that is true

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Speaker 1: or not. But once they get to five to five

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Speaker 1: and a half percent, they'll keep the overnight Fed funds

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Speaker 1: rate at that level for a very long period of time.

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Speaker 1: It's going to be at least into twenty twenty four,

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Speaker 1: maybe far into twenty twenty four before they actually begin

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Speaker 1: to let rates move lower. I think that the Yiel

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Speaker 1: curve continues to steepen. We've got the twos tends eighty

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Speaker 1: five basis points now. It's been moving rather dramatically over

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Speaker 1: the course of the past several months. And I in

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Speaker 1: my comments to the University of Akrons Endowments six months ago,

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Speaker 1: I said that the overnight Fed funds or that the

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Speaker 1: twos to tens inverted Yiel curve would go to sixty

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Speaker 1: or seventy basis points from the then current thirty five.

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Speaker 1: I was wrong. Here we are now into the mid eighties.

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Speaker 1: So the Yiel curve continues to steepen, the continues to invert.

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Speaker 1: The Fed is concerned about inflation. The numbers on Friday

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Speaker 1: were very deletarious to share prices, and I'm really quite parish,

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Speaker 1: have been for the past several weeks, and have been

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Speaker 1: actually on balance since January fifth of last year, so

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Speaker 1: very rather consistent on my part. As you mentioned, the

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Speaker 1: S ANDP did break below four thousand at the end

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Speaker 1: of the week, now at thirty nine seventy the level.

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Speaker 1: Are you looking for a further resistance or a further

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Speaker 1: support level for this market or could the markets get

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Speaker 1: a bounce off the four thousand psychological level? Well, I

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Speaker 1: think we're getting a bounced this morning. We're actually up

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Speaker 1: about what eighteen or nineteen or twenty points from the

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Speaker 1: low from Friday's close, and actually about thirty five points

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Speaker 1: from Friday's lows. So I think we're getting a bounced

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Speaker 1: as we speak. I don't think this a bounce is

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Speaker 1: going to last very long. The volume that we've seen

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Speaker 1: overnight in the futures have been very very limited, and

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Speaker 1: when markets rally on lesser volume, they that probably means

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Speaker 1: they're going to go lower over the course of the

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Speaker 1: near future. So do I think the S ANDP goes

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Speaker 1: to I had a good discussion over the weekend with

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Speaker 1: a friend of mine, Larry Lindsay, for dinner. I said

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Speaker 1: thirty six hundred, he says three thousand. I think thirty

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Speaker 1: six hundred is a reasonable target at this point for

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Speaker 1: the next several months. And what's the potential for the

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Speaker 1: FED to continue tightening? You mentioned the possibility of a

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Speaker 1: five and a half percent terminal rate. How long are

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Speaker 1: you looking for the FED to keep rates higher for longer,

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Speaker 1: for a very long period of time. If I've learned

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Speaker 1: anything in the forty five or fifty years that I've

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Speaker 1: been in the business, it's when the FED begins to

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Speaker 1: change monetary policy from tightening to easing, or from easing

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Speaker 1: to tightening, it takes rates far farther and for a

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Speaker 1: much longer period of time than even the most aggressive

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Speaker 1: of us at the beginning to believe. So I think

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Speaker 1: that the FED takes the overnight FED funds rate to

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Speaker 1: five to five and a half, probably five and a half,

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Speaker 1: I think it will be the terminal rate, and I

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Speaker 1: think it'll stay there for a very long period of time.

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Speaker 1: As I said earlier, at least into twenty twenty four,

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Speaker 1: early into twenty twenty four, and maybe even late into

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Speaker 1: twenty twenty four, before they begin to before they begin

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Speaker 1: to ease monetary policy, before they allow the overnight FED

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Speaker 1: funds rate to decline. So it's a long period of

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Speaker 1: time that we have to face higher rates. And I

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Speaker 1: don't think anybody's really I shouldn't say anybody. I don't

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Speaker 1: think the majority of people are prepared for that. And

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Speaker 1: you mentioned the inversion between the twos and tens going

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Speaker 1: deeper than even you had expected. Is that the main

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Speaker 1: metric that you're looking at to forecast whether the FED

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Speaker 1: is going to bring this economy into a hard landing. Yes,

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Speaker 1: I think watching the two to tens ratio is probably

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Speaker 1: the easiest and best and most public number that you're

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Speaker 1: gonna watch. So watch the inversion and versions are very important,

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Speaker 1: and versions always when the eel curve inverts. When it

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Speaker 1: does almost characteristically, we go into recession sometime after that

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Speaker 1: six months, one year, eighteen months thereafter. We're moving into

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Speaker 1: recession right now, So keep an eye on the twos tens.

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Speaker 1: I hope, I hope that it doesn't get to one

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Speaker 1: hundred basis points, But at this point I have my

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Speaker 1: doubts as or whether I can be correct in that instance.

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Speaker 1: Like I said, I thought it was going to go

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Speaker 1: from forty to sixty five or seventy it's made it

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Speaker 1: all the way to eighty five. Let us hope it

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Speaker 1: doesn't get to one hundred. That I think would be disastrous.

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