1 00:00:00,720 --> 00:00:04,320 Speaker 1: By from the Bloomberg Interactive Burger Studios. This is Bloomberg 2 00:00:04,360 --> 00:00:08,119 Speaker 1: day Break for Monday May two. Coming up this hour, 3 00:00:08,360 --> 00:00:11,560 Speaker 1: stock futures rise. Following the longest losing streak for the 4 00:00:11,720 --> 00:00:15,120 Speaker 1: SMP five hundred in decades, President Biden said the US 5 00:00:15,200 --> 00:00:19,040 Speaker 1: would intervene to defend Taiwan from China or baby formula 6 00:00:19,200 --> 00:00:22,080 Speaker 1: arrives in the US, and Broadcom isn't talk to buy 7 00:00:22,200 --> 00:00:25,520 Speaker 1: a top cloud computing company. New York City police continued 8 00:00:25,560 --> 00:00:28,240 Speaker 1: to search for the gunman in a deadly random subway shooting. 9 00:00:28,280 --> 00:00:31,080 Speaker 1: Plus Ukraine says up to one hundred of their soldiers 10 00:00:31,120 --> 00:00:35,080 Speaker 1: die every day. I'm Michael Barr. More ahead, I'm Scotts Edinburg, 11 00:00:35,200 --> 00:00:38,320 Speaker 1: Yankey swept in a doubleheader, the Mets pickup wind and 12 00:00:38,400 --> 00:00:41,720 Speaker 1: the Rangers defend the hallmarks of that More coming up 13 00:00:41,760 --> 00:00:47,400 Speaker 1: in sports. That's all Trading ahead on Bloomberg Daybreak on 14 00:00:47,520 --> 00:00:52,000 Speaker 1: Bloomberg eleven three on New York, Bloomberg one, Washington, d C, 15 00:00:52,479 --> 00:00:56,760 Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixty, San Francisco, 16 00:00:57,240 --> 00:01:00,200 Speaker 1: Syrius Exam one nine team and around the world Old 17 00:01:00,240 --> 00:01:03,720 Speaker 1: on Bloomberg Radio dot Com and via the Bloomberg Business app. 18 00:01:07,720 --> 00:01:10,760 Speaker 1: Good morning, I'm John Tucker and I'm Karen Moscow and 19 00:01:10,920 --> 00:01:14,000 Speaker 1: US DOT Index futures are higher this morning, where coming 20 00:01:14,040 --> 00:01:15,520 Speaker 1: up to five out one on Wall Street, and we 21 00:01:15,600 --> 00:01:18,120 Speaker 1: check the markets every fifteen minutes throughout the trading day 22 00:01:18,240 --> 00:01:21,720 Speaker 1: on Bloomberg. Right now, SNP futures are up about nineteen 23 00:01:21,720 --> 00:01:24,640 Speaker 1: points down futures of a hundred thirty NASDAG futures of 24 00:01:24,800 --> 00:01:27,840 Speaker 1: forty eight the decks in Germany's up about six tenths 25 00:01:27,840 --> 00:01:30,760 Speaker 1: of upper cent ten year treasury down eight thirties seconds 26 00:01:30,840 --> 00:01:32,920 Speaker 1: held two point eight one percent. They yield on the 27 00:01:32,959 --> 00:01:35,920 Speaker 1: two year two point six zero percent, and nine X 28 00:01:35,959 --> 00:01:38,479 Speaker 1: screwed oil is up half percent and a hundred ten 29 00:01:38,520 --> 00:01:42,039 Speaker 1: dollars eighty seven cents of barrel. John Currently rise in 30 00:01:42,120 --> 00:01:44,959 Speaker 1: futures comes after the S and P five hundred touched 31 00:01:45,000 --> 00:01:48,280 Speaker 1: bear market territory on Friday and closed lower for a 32 00:01:48,400 --> 00:01:52,120 Speaker 1: seventh straight week. According to Bespoke Investment Group, is just 33 00:01:52,280 --> 00:01:56,320 Speaker 1: the SNPs fourth streak of seven or more weekly losses 34 00:01:56,640 --> 00:02:00,160 Speaker 1: in the post World War two era. Alexafronis on the 35 00:02:00,280 --> 00:02:03,800 Speaker 1: partner and co CEO at i e Q Capital dentament 36 00:02:03,960 --> 00:02:07,360 Speaker 1: is terrible enough so we're we're ready for a bear 37 00:02:07,480 --> 00:02:10,919 Speaker 1: market rally, but it's still probably a bear market rally 38 00:02:11,080 --> 00:02:13,440 Speaker 1: until such time as there's evidence the economy that is 39 00:02:13,560 --> 00:02:16,480 Speaker 1: very close to a bottom. Alexand friend of I e 40 00:02:16,560 --> 00:02:19,880 Speaker 1: Q Capital is not alone in thinking stocks will head lower. 41 00:02:20,120 --> 00:02:24,160 Speaker 1: According to the latest Bloomberg m Live Pulse, pol participants 42 00:02:24,200 --> 00:02:27,880 Speaker 1: see the SMP five hund are falling another ten percent. Well, 43 00:02:27,960 --> 00:02:31,320 Speaker 1: many traders c the U S economy headed for recession. 44 00:02:31,440 --> 00:02:34,320 Speaker 1: John the President of the United States, is not so sure. 45 00:02:34,440 --> 00:02:37,399 Speaker 1: He answered the question at a press conference in Tokyo overnight. 46 00:02:37,680 --> 00:02:42,600 Speaker 1: In your view, is a recession in the United States inevitable? No? 47 00:02:44,240 --> 00:02:46,799 Speaker 1: Why not? Our GDPs are going to grow faster than 48 00:02:46,880 --> 00:02:50,280 Speaker 1: China for the first time in forty years. How does 49 00:02:50,280 --> 00:02:53,160 Speaker 1: that mean we don't have problems? We do. We have 50 00:02:53,240 --> 00:02:55,720 Speaker 1: problems with the rest of the world has, but less 51 00:02:55,720 --> 00:02:57,960 Speaker 1: consequential than the rest of the world has than because 52 00:02:58,000 --> 00:03:01,280 Speaker 1: of our internal growth and trends. At the same press 53 00:03:01,280 --> 00:03:04,200 Speaker 1: briefing in Tokyo, President Biden made headlines so announced that 54 00:03:04,240 --> 00:03:07,440 Speaker 1: the US would defend Taiwan from a China attack. Are 55 00:03:07,480 --> 00:03:10,840 Speaker 1: you willing to get involved militarily to defend Taiwan? If 56 00:03:10,880 --> 00:03:16,560 Speaker 1: it comes to that, you are That's the commitment we made. 57 00:03:16,880 --> 00:03:20,360 Speaker 1: President Biden also announced that a dozen Indo Pacific countries 58 00:03:20,400 --> 00:03:23,520 Speaker 1: will join the US and a sweeping economic initiative designed 59 00:03:23,520 --> 00:03:27,040 Speaker 1: to counter China's influence in the region. And earlier in 60 00:03:27,160 --> 00:03:29,840 Speaker 1: his trip, during a stop in South Korea on Sunday, 61 00:03:29,840 --> 00:03:33,239 Speaker 1: the President also address the growing concern over monkey pox 62 00:03:33,320 --> 00:03:37,160 Speaker 1: cases around the world. Concern in the sense that were 63 00:03:37,240 --> 00:03:41,880 Speaker 1: to spread this consequence, that's all they told. President Budden 64 00:03:41,880 --> 00:03:44,920 Speaker 1: says he's speaking to advisors about monkey pots. The President's 65 00:03:45,000 --> 00:03:48,440 Speaker 1: National Security Advisor, Jake Sullivan, says the U S has 66 00:03:48,560 --> 00:03:51,720 Speaker 1: a relevant vaccine ready to be deployed to treat the 67 00:03:51,800 --> 00:03:54,920 Speaker 1: disease if needed. Well. The U S monitors the monkey 68 00:03:54,920 --> 00:03:58,520 Speaker 1: pods situation. John It is getting some relief this morning 69 00:03:58,560 --> 00:04:01,920 Speaker 1: on the battle against the baby formula shortage, and we 70 00:04:01,960 --> 00:04:05,040 Speaker 1: get the latest live from Bloomberg's Need a Young, Good 71 00:04:05,040 --> 00:04:08,080 Speaker 1: Morning Radio, Good Morning Karen. A plainload of more than 72 00:04:08,200 --> 00:04:11,720 Speaker 1: seventy thousand pounds of baby formula arrived in the US 73 00:04:11,840 --> 00:04:16,760 Speaker 1: on Sunday. It's called Operation Fly Formula, an emergency program 74 00:04:16,800 --> 00:04:20,320 Speaker 1: to alleviate a national shortage that's left some parents scrambling 75 00:04:20,360 --> 00:04:24,480 Speaker 1: to feed their children. President Biden's top economic advisors says 76 00:04:24,720 --> 00:04:27,640 Speaker 1: more formula will start arriving in stores as early as 77 00:04:27,680 --> 00:04:31,560 Speaker 1: this week, and last week the President invoked emergency powers 78 00:04:31,600 --> 00:04:35,719 Speaker 1: under the Defense Protection Act to spur domestic manufacturing of 79 00:04:35,839 --> 00:04:38,839 Speaker 1: baby formula. Live in New York. I'm gonna need a 80 00:04:38,839 --> 00:04:42,400 Speaker 1: young Bloomberg daybreak. Thanks for after a two year hiatus 81 00:04:42,440 --> 00:04:45,200 Speaker 1: because of the pandemic, the annual World Economic form and 82 00:04:45,240 --> 00:04:48,760 Speaker 1: DAMO Switzerland his back, but without the hype of years past, 83 00:04:49,279 --> 00:04:51,800 Speaker 1: and our Tom Keane covering the event from both Bloomberg 84 00:04:51,880 --> 00:04:55,720 Speaker 1: Radio and television. This will be a different Davos, There's 85 00:04:55,760 --> 00:04:58,840 Speaker 1: no question about it. I think the major thing is 86 00:04:58,960 --> 00:05:02,720 Speaker 1: the change of cal under not January but May, and 87 00:05:02,800 --> 00:05:05,360 Speaker 1: much more. It will be compressed pretty much from four 88 00:05:05,440 --> 00:05:08,920 Speaker 1: days down to three days. Travel schedules seem to be 89 00:05:09,160 --> 00:05:12,400 Speaker 1: so tight for so many people attending. The war is 90 00:05:12,640 --> 00:05:16,200 Speaker 1: absolutely front and center. There's no question about that. There 91 00:05:16,200 --> 00:05:19,839 Speaker 1: will be some other themes, some ideas of risks as well, 92 00:05:20,279 --> 00:05:23,479 Speaker 1: but the overarching theme besides the wars my colleague Paul 93 00:05:23,480 --> 00:05:27,160 Speaker 1: Sweeney mentioned is the idea here of what do we 94 00:05:27,200 --> 00:05:31,760 Speaker 1: do about inflation? And that will transcend the dialogue all 95 00:05:31,800 --> 00:05:34,919 Speaker 1: the way, all the way through this uh three days 96 00:05:35,000 --> 00:05:38,320 Speaker 1: in Davos thanks to Bloomberg's time came reporting from Dambo's 97 00:05:38,320 --> 00:05:41,359 Speaker 1: beginning this morning along with Lisa branmo Wits on Bloomberg Savallas. 98 00:05:41,839 --> 00:05:44,000 Speaker 1: Stay with us for that coming up at seven am 99 00:05:44,040 --> 00:05:47,600 Speaker 1: All Street Time. And Christine Lagarde is one official who 100 00:05:47,640 --> 00:05:50,159 Speaker 1: will be in Davos this week, John, But ahead of 101 00:05:50,160 --> 00:05:53,320 Speaker 1: her appearance, the European Central Bank president is making some 102 00:05:53,400 --> 00:05:56,760 Speaker 1: critical comments about cryptocurrencies that we had more from Bloomberg's 103 00:05:56,760 --> 00:05:59,159 Speaker 1: Mariette today o in Brussels to give an it ToView 104 00:05:59,200 --> 00:06:01,160 Speaker 1: to Dutch tele Vision, and she said that this thing 105 00:06:01,279 --> 00:06:04,479 Speaker 1: is trash, it carries no value, and it's an investment 106 00:06:05,240 --> 00:06:07,640 Speaker 1: vehicle for some to get very rich, but for other 107 00:06:07,800 --> 00:06:11,479 Speaker 1: very naive people to lose potentially a lot of money. 108 00:06:11,480 --> 00:06:13,600 Speaker 1: But of course you know this is a central banker. 109 00:06:13,800 --> 00:06:16,919 Speaker 1: Bitcoin crypto, everything around it we know essentially tries to 110 00:06:17,000 --> 00:06:20,479 Speaker 1: defy central bankers. So of course what the central banker 111 00:06:20,560 --> 00:06:22,240 Speaker 1: was ahead of these to be good to say that 112 00:06:22,279 --> 00:06:24,600 Speaker 1: it's trash and she doesn't believe in it. And Bloomer's 113 00:06:24,600 --> 00:06:28,880 Speaker 1: Maria today, oh so far. Leguard's comments are not impacting cryptocurrencies. 114 00:06:28,960 --> 00:06:31,120 Speaker 1: Checking Bitcoin right now it is up when in a 115 00:06:31,279 --> 00:06:34,200 Speaker 1: third percent at thirty thousand, three hundred dollars, and we're 116 00:06:34,200 --> 00:06:37,720 Speaker 1: seeing shares a vm Ware up up four and early trading. 117 00:06:37,720 --> 00:06:41,440 Speaker 1: The clown Computing company in talks to be bought by Broadcomp. 118 00:06:41,760 --> 00:06:46,000 Speaker 1: Details from Bloomberg's Doug Prisner. Vm Ware, based in Palo Alto, 119 00:06:46,160 --> 00:06:49,760 Speaker 1: makes virtualization software. It allows a small number of servers 120 00:06:49,800 --> 00:06:52,560 Speaker 1: to do more by enabling each to handle more than 121 00:06:52,600 --> 00:06:56,039 Speaker 1: one program. Broadcom is a Singapore based giant in the 122 00:06:56,080 --> 00:07:00,760 Speaker 1: semiconductor industry. A deal would help it diversified beyond Pewter chips. 123 00:07:01,160 --> 00:07:03,760 Speaker 1: Vm Ware has a market cap of around forty billion 124 00:07:03,800 --> 00:07:07,800 Speaker 1: dollars so far this year. It shares her down in 125 00:07:07,839 --> 00:07:10,560 Speaker 1: New York. I'm Dad Chrisner, Bloomberg Daybreak, All right, thanks Doug, 126 00:07:10,800 --> 00:07:15,480 Speaker 1: right now, dall futures up one points, SMP futures of seventeen, 127 00:07:15,520 --> 00:07:23,920 Speaker 1: the nasday futures of seven. This is daybreak. That's five 128 00:07:23,960 --> 00:07:26,240 Speaker 1: o seven on Wall Street. Time to break in Michael 129 00:07:26,320 --> 00:07:29,200 Speaker 1: Barr with Laura. What else is going on in New York, 130 00:07:29,280 --> 00:07:32,160 Speaker 1: end around the world? John, Thank you very much, Sir, 131 00:07:32,280 --> 00:07:35,560 Speaker 1: An unidentified gunman has shot and killed another passenger on 132 00:07:35,600 --> 00:07:39,280 Speaker 1: a moving New York City subway train. Police officials say 133 00:07:39,320 --> 00:07:42,120 Speaker 1: it appears to have been an unprovoked attack and the 134 00:07:42,200 --> 00:07:45,320 Speaker 1: victim for the eight year old man died in the hospital. 135 00:07:45,680 --> 00:07:48,560 Speaker 1: In my p D Chief of Department Kenneth Corey. At 136 00:07:48,560 --> 00:07:52,440 Speaker 1: this time, there are no arrests. The suspect is described 137 00:07:52,480 --> 00:07:55,280 Speaker 1: as a dark skinned male who is heavy set with 138 00:07:55,320 --> 00:07:58,840 Speaker 1: a beard. Police say the shooting took place yesterday on 139 00:07:58,880 --> 00:08:02,520 Speaker 1: a Q train traveling over the Manhattan Bridge at around 140 00:08:02,520 --> 00:08:05,880 Speaker 1: eleven forty a m. That's the time of day when 141 00:08:05,920 --> 00:08:09,560 Speaker 1: subway cars are often filled with families, tourists, and people 142 00:08:09,600 --> 00:08:13,160 Speaker 1: headed a brunch. Recent subway crime has set New Yorkers 143 00:08:13,160 --> 00:08:16,200 Speaker 1: on edge. Last month, a man opened fire inside a 144 00:08:16,240 --> 00:08:20,000 Speaker 1: Brooklyn subway trains, scattering random shots that wounded ten people. 145 00:08:20,600 --> 00:08:24,760 Speaker 1: Japanese Prime Minister Fumio Kashita told President Joe Biden that 146 00:08:24,880 --> 00:08:28,560 Speaker 1: Russia's aggression cannot be tolerated. The two leaders met in 147 00:08:28,600 --> 00:08:32,760 Speaker 1: Tokyo to discuss regional security and economic cooperation. Speaking through 148 00:08:32,760 --> 00:08:49,040 Speaker 1: a translator, Prime Minister Kashita. Prime Minister Kashida's comments come 149 00:08:49,120 --> 00:08:52,160 Speaker 1: as a United Nations agencies said the war in Ukraine 150 00:08:52,440 --> 00:08:55,520 Speaker 1: has displaced more than a hundred million people from their homes. 151 00:08:56,040 --> 00:08:58,840 Speaker 1: Ukraine's president says up to one hundred of its soldiers 152 00:08:58,880 --> 00:09:02,800 Speaker 1: die every day in battle. Republican Congresswoman Liz Cheney of 153 00:09:02,800 --> 00:09:06,079 Speaker 1: Wyoming was one of five individuals last night to receive 154 00:09:06,120 --> 00:09:10,200 Speaker 1: the two John F. Kennedy Profile and Courage Award. In 155 00:09:10,320 --> 00:09:13,800 Speaker 1: her live streamed a substance speech, Cheney, who serves on 156 00:09:13,840 --> 00:09:17,760 Speaker 1: the Special Committee investigating the January six Capital Riots, spoke 157 00:09:17,760 --> 00:09:21,280 Speaker 1: about the continuous threat to democracy. We face a threat 158 00:09:21,360 --> 00:09:25,960 Speaker 1: we have never faced before, a former president attempting to 159 00:09:26,120 --> 00:09:30,560 Speaker 1: unravel our constitutional republic. The award was also handed to 160 00:09:30,679 --> 00:09:35,120 Speaker 1: Ukrainian President Zalinski and three US officials defending the integrity 161 00:09:35,160 --> 00:09:39,480 Speaker 1: of the presidential election. Global News twenty four hours a 162 00:09:39,559 --> 00:09:42,600 Speaker 1: day on air and on Bloomberg Quicktake, powered by more 163 00:09:42,880 --> 00:09:45,760 Speaker 1: than twenty hundred journalists and analyst more than a hundred 164 00:09:45,760 --> 00:09:49,640 Speaker 1: twenty countries. Michael Barron, this is Bloomberg, John Michael, thank you, 165 00:09:53,400 --> 00:09:55,400 Speaker 1: and it's now find Tim. I'm wall Street this time 166 00:09:55,400 --> 00:09:59,440 Speaker 1: for the Bloomberg Sports Update. Here's Scott Sidenberg. Good morning, Johnny. 167 00:09:59,480 --> 00:10:02,160 Speaker 1: Gorcious Jerkin made forty three saves me because even a 168 00:10:02,280 --> 00:10:04,560 Speaker 1: Jet had a goal and an assist as the Rangers 169 00:10:04,559 --> 00:10:07,560 Speaker 1: beat the Hurricanes three one at the Garden yesterday. Chris 170 00:10:07,640 --> 00:10:10,160 Speaker 1: Critter and Tyler Mott also scored as the Blue Shirts 171 00:10:10,200 --> 00:10:13,080 Speaker 1: to fand home ice now trail two games to one. 172 00:10:13,240 --> 00:10:16,720 Speaker 1: Here's head coach Gerard glen Gower play goal. That's how 173 00:10:16,720 --> 00:10:18,319 Speaker 1: you went hockey games in tight games. So it was 174 00:10:18,360 --> 00:10:21,600 Speaker 1: the battle type battle again tonight. They obviously ego ego 175 00:10:21,720 --> 00:10:23,760 Speaker 1: with an outstanding bust and that was the key. It 176 00:10:23,880 --> 00:10:26,160 Speaker 1: was just the second win for the Blue Shirts over 177 00:10:26,240 --> 00:10:29,760 Speaker 1: Carolina in their last ten meetings Game four at the 178 00:10:29,800 --> 00:10:32,920 Speaker 1: Garden Tomorrow night Baseball, the Yankees dropped both games of 179 00:10:32,920 --> 00:10:35,520 Speaker 1: a double header to the White Sox three one innit 180 00:10:35,520 --> 00:10:39,560 Speaker 1: game one and a five nothing shutout lost in Game two. 181 00:10:40,000 --> 00:10:42,640 Speaker 1: The Mets meanwild blank the Rockies to nothings. I want 182 00:10:42,679 --> 00:10:46,600 Speaker 1: Walker through seven scoreless innings. NBA Playoffs, the Warriors taken 183 00:10:46,600 --> 00:10:48,880 Speaker 1: commanding three oh series lead over the Mavericks with a 184 00:10:48,920 --> 00:10:52,640 Speaker 1: one on nine win. Golf was an exciting finish at 185 00:10:52,679 --> 00:10:56,720 Speaker 1: the PGA Championship yesterday, and Justin Thomas is walking around 186 00:10:56,760 --> 00:11:00,600 Speaker 1: for the quick top and he's got it. Two time 187 00:11:00,720 --> 00:11:05,480 Speaker 1: major winner of the PGA Championship, Justice Toddis he's your 188 00:11:05,880 --> 00:11:09,400 Speaker 1: hundred four p g A champion here at Southern Hills 189 00:11:09,400 --> 00:11:13,160 Speaker 1: and puls Oklahoma. The call is heard right here on 190 00:11:13,160 --> 00:11:17,520 Speaker 1: Bloomberg Radio. Justin Thomas winning his second one or Maker 191 00:11:17,559 --> 00:11:22,520 Speaker 1: Trophy outlasting Will's Allatorus in a three whole playoff. I'm 192 00:11:22,559 --> 00:11:27,160 Speaker 1: Scott said, urged with Bloomberg Sports. Nathan all right, thanks Scott, 193 00:11:27,320 --> 00:11:29,720 Speaker 1: and ahead of the cash open on Wall Street, we 194 00:11:29,760 --> 00:11:33,160 Speaker 1: have town futures right now off on twenty seven points, 195 00:11:33,640 --> 00:11:37,280 Speaker 1: SMB futures up twenty points, that's about half percent, and 196 00:11:37,400 --> 00:11:40,400 Speaker 1: the ends A futures right now fifty eight points higher. 197 00:11:40,920 --> 00:11:44,240 Speaker 1: As far as treasuries, the benchmark ten year yields to 198 00:11:44,679 --> 00:11:48,959 Speaker 1: eighty one right now, and the vis Wall Streets fear gage, 199 00:11:49,000 --> 00:11:53,120 Speaker 1: the volatility index slightly elevated this morning, right now at 200 00:11:53,200 --> 00:11:56,880 Speaker 1: twenty sixty. As looking at the euro one O six 201 00:11:57,000 --> 00:12:01,000 Speaker 1: fifty eight, that is up slightly against the dollar. You're 202 00:12:01,040 --> 00:12:09,400 Speaker 1: listening the Bloomberg tay break and just ahead, have stocks 203 00:12:09,600 --> 00:12:11,880 Speaker 1: hit the bottom? Where do we go from here? We'll 204 00:12:11,880 --> 00:12:16,079 Speaker 1: put those questions to economist Dennis Gartman. That's straight ahead 205 00:12:16,120 --> 00:12:24,760 Speaker 1: on Bloomberg Tay break markets, headlines and breaking news twenty 206 00:12:24,760 --> 00:12:27,600 Speaker 1: four hours a day at Bloomberg dot com. The Bloomberg 207 00:12:27,640 --> 00:12:31,679 Speaker 1: Business Outland at Bloomberg Quick Tape is a Bloomberg Business 208 00:12:31,720 --> 00:12:40,160 Speaker 1: Flash and I'm Karen Moscow. Songs in the You Wanna 209 00:12:40,160 --> 00:12:43,840 Speaker 1: are advancing after President Joe Biden said Shina tariffs imposed 210 00:12:43,840 --> 00:12:46,960 Speaker 1: by the Trump administration were under consideration. The dollar and 211 00:12:47,040 --> 00:12:50,200 Speaker 1: treasuries are retreating. We checked the markets every fifteen minutes 212 00:12:50,240 --> 00:12:53,000 Speaker 1: throughout the trading day on Bloomberg S and P futures 213 00:12:53,040 --> 00:12:56,160 Speaker 1: up eighteen points down, futures up a hundred fourteen NASDAG 214 00:12:56,200 --> 00:12:59,000 Speaker 1: futures up fifty two The decks in Germany's up four 215 00:12:59,040 --> 00:13:02,160 Speaker 1: tenths of upper ten year treasury down nine thirty seconds, 216 00:13:02,200 --> 00:13:04,719 Speaker 1: yield two point eight one percent, yield on the two 217 00:13:04,800 --> 00:13:07,880 Speaker 1: year two point six zero percent. Nimex Screwede oil is 218 00:13:07,960 --> 00:13:09,840 Speaker 1: up nine ten percent or a dollar one at a 219 00:13:09,880 --> 00:13:13,040 Speaker 1: hundred eleven dollars thirty two cents of arrol Comics gold 220 00:13:13,160 --> 00:13:15,640 Speaker 1: is up more than one percent, or nineteen dollar sixty 221 00:13:15,640 --> 00:13:18,680 Speaker 1: cents at eighteen sixty eight announced. The euro one point 222 00:13:18,679 --> 00:13:21,120 Speaker 1: oh six seven seven against the dollar. British pound one 223 00:13:21,160 --> 00:13:24,520 Speaker 1: point eight seven and the units at one seven point 224 00:13:24,559 --> 00:13:27,720 Speaker 1: four six Bitcoin is higher, up one point three percent 225 00:13:27,760 --> 00:13:31,400 Speaker 1: at thirty thousand, three hundred dollars. That's a Bloomberg business flash. 226 00:13:31,400 --> 00:13:33,520 Speaker 1: Now here's Michael Barr with more on what's going on 227 00:13:33,559 --> 00:13:36,680 Speaker 1: around the world. Michael, good morning, Good morning Karen. President 228 00:13:36,760 --> 00:13:39,520 Speaker 1: Joe Biden sent the U. S Military would intervene to 229 00:13:39,600 --> 00:13:43,600 Speaker 1: defend Taiwan in any attack from China in Tokyo. Biden 230 00:13:43,679 --> 00:13:47,480 Speaker 1: says such a move would dislocate the entire region, be 231 00:13:47,760 --> 00:13:50,600 Speaker 1: an action similar to what Russia has done in Ukraine. 232 00:13:50,960 --> 00:13:55,360 Speaker 1: A military plane carrying enough specialty infant formula for more 233 00:13:55,559 --> 00:13:59,880 Speaker 1: than a half a million baby bottles arrived yesterday in Indianapolis. 234 00:14:00,160 --> 00:14:02,920 Speaker 1: It is the first of several flights expected from Europe, 235 00:14:02,920 --> 00:14:06,720 Speaker 1: aim that we're leaving a formulas shortage. In the NHL playoffs, 236 00:14:06,720 --> 00:14:09,679 Speaker 1: the Rangers beat the Hurricanes three one. Carolina still leads 237 00:14:09,720 --> 00:14:13,000 Speaker 1: that series two games to one. In the NBA playoffs, 238 00:14:13,000 --> 00:14:15,280 Speaker 1: the Warriors beat the Mavericks one on nine one hundred 239 00:14:15,440 --> 00:14:19,040 Speaker 1: to leave the Western Conference Finals three games to zip. Baseball, 240 00:14:19,160 --> 00:14:21,560 Speaker 1: the Yankees lost a double header to the White Sox. 241 00:14:21,760 --> 00:14:24,600 Speaker 1: The MAT's Red Sox Orioles and Nationals won the Giants 242 00:14:24,600 --> 00:14:27,640 Speaker 1: and A's lost. Global News twenty four hours a day 243 00:14:27,720 --> 00:14:30,760 Speaker 1: on air and on Bloomberg Quick Tank, powered by more 244 00:14:30,840 --> 00:14:34,440 Speaker 1: than twenty seven hundred journalists and analysts more than twenty countries. 245 00:14:34,800 --> 00:14:37,480 Speaker 1: Michael Barr, this is Bloomberg, John, Michael, thank you five 246 00:14:37,600 --> 00:14:40,000 Speaker 1: twenty on Wall Street. We are lying for the Bloomberg 247 00:14:40,040 --> 00:14:44,200 Speaker 1: in Tryant Broker Studios. This is Bloomberg Daybreak. Stocks on 248 00:14:44,360 --> 00:14:47,520 Speaker 1: Friday avoided the official bear market label at least the 249 00:14:47,600 --> 00:14:50,640 Speaker 1: SMP five hundred. But what is next. Let's get you 250 00:14:50,720 --> 00:14:53,360 Speaker 1: set up for the trading day ahead with economist Dennis 251 00:14:53,400 --> 00:14:56,880 Speaker 1: Garp and chair of the University of Akron's in Dama. 252 00:14:57,520 --> 00:15:01,240 Speaker 1: Dennis always a pleasure happy Monday. Are we you rebalancing 253 00:15:01,520 --> 00:15:06,280 Speaker 1: back to pre pandemic levels or is something else going on? John? 254 00:15:06,320 --> 00:15:08,440 Speaker 1: I think actually been a bear market for quite some 255 00:15:08,520 --> 00:15:11,440 Speaker 1: period of time. I find it amusing that everybody wants 256 00:15:11,440 --> 00:15:12,960 Speaker 1: to think that you don't owner a bear market U 257 00:15:12,960 --> 00:15:16,000 Speaker 1: till you're down. I have always gone on the end 258 00:15:16,120 --> 00:15:18,240 Speaker 1: of the auspice of the or the notion that anything 259 00:15:18,320 --> 00:15:22,000 Speaker 1: under seven percent is a bear market territory. Uh and 260 00:15:22,240 --> 00:15:24,200 Speaker 1: and you have to be more defensive once we once 261 00:15:24,240 --> 00:15:27,800 Speaker 1: we take things down, seven is pretty far down before 262 00:15:27,840 --> 00:15:30,840 Speaker 1: you start to become bearish. I think the bear market 263 00:15:30,880 --> 00:15:34,480 Speaker 1: started December, actually January, and as the chairman of the 264 00:15:34,520 --> 00:15:37,720 Speaker 1: University of Ackrons in Downland, I I pushed us hard 265 00:15:38,240 --> 00:15:40,400 Speaker 1: and actually got us to move a twelve percent of 266 00:15:40,400 --> 00:15:45,200 Speaker 1: our portfolio out on December thirty one last year, going 267 00:15:45,240 --> 00:15:47,440 Speaker 1: to the sidelines and owning two year and four year 268 00:15:47,480 --> 00:15:50,480 Speaker 1: and five year treasury securities instead. And as I like 269 00:15:50,560 --> 00:15:52,480 Speaker 1: to say, in a bear market, he or she who 270 00:15:52,480 --> 00:15:56,160 Speaker 1: loses the least is the winner. And we saved though 271 00:15:56,480 --> 00:15:59,560 Speaker 1: call it what what are we down? That almost in 272 00:15:59,560 --> 00:16:04,200 Speaker 1: the essence he almost in the nastac one, So we 273 00:16:04,320 --> 00:16:09,480 Speaker 1: saved call it sevent one of the portfolio. We're doing 274 00:16:09,480 --> 00:16:11,840 Speaker 1: a lot better than other people are. So I think 275 00:16:11,880 --> 00:16:13,760 Speaker 1: you have to understand that this is a bear market. 276 00:16:13,760 --> 00:16:16,840 Speaker 1: The FETE is taking away the fuel that had sponsored 277 00:16:16,840 --> 00:16:18,800 Speaker 1: the bull market for such a long period of time. 278 00:16:19,640 --> 00:16:21,520 Speaker 1: As the FETE added to its balance sheet, is the 279 00:16:21,520 --> 00:16:23,880 Speaker 1: FET is now beginning to subtract from its balance sheet. 280 00:16:24,320 --> 00:16:26,840 Speaker 1: It's going to take years before it gets the balance 281 00:16:26,840 --> 00:16:30,120 Speaker 1: sheet back to something more amenable. We've we've taken the 282 00:16:30,120 --> 00:16:32,680 Speaker 1: balance sheet from what nine billion to nine trillion in 283 00:16:32,720 --> 00:16:36,920 Speaker 1: the course of a decade. Taking taking away dollars a 284 00:16:36,920 --> 00:16:40,040 Speaker 1: month for the next several years is going to is 285 00:16:40,360 --> 00:16:43,880 Speaker 1: going to weaken the stock market for a protracted period 286 00:16:43,920 --> 00:16:45,400 Speaker 1: of time. So I think it's a bear market, and 287 00:16:45,400 --> 00:16:47,480 Speaker 1: I think people have to understand that fact, and I 288 00:16:47,560 --> 00:16:50,640 Speaker 1: think people need to adjust their trading perspectives and adjust 289 00:16:50,680 --> 00:16:54,800 Speaker 1: their investment perspectives accordingly. Well, when does dip by become 290 00:16:54,840 --> 00:16:58,080 Speaker 1: a viable strategy? Not for a long period of time 291 00:16:58,080 --> 00:17:01,880 Speaker 1: into the future. I think alley selling is the viable strategy. 292 00:17:01,880 --> 00:17:04,680 Speaker 1: Buying the dip was a nice strategy for almost a decade, 293 00:17:05,000 --> 00:17:06,960 Speaker 1: but I think that that's behind us now. I think 294 00:17:07,000 --> 00:17:09,040 Speaker 1: buying the dip is an ill advised decision. I think 295 00:17:09,040 --> 00:17:12,439 Speaker 1: selling rallies is the advised decision, and I think that 296 00:17:12,440 --> 00:17:14,359 Speaker 1: that's going to maintain for a long period of time. 297 00:17:15,000 --> 00:17:17,720 Speaker 1: We We've had a good solid bounce from Friday's low 298 00:17:18,600 --> 00:17:21,800 Speaker 1: until in the futures market, until the highs made last night. 299 00:17:21,840 --> 00:17:24,600 Speaker 1: I think that those highs made last night maybe taken 300 00:17:24,600 --> 00:17:28,479 Speaker 1: out when we opened for trading in reality at at 301 00:17:28,560 --> 00:17:30,840 Speaker 1: nine dirty this morning. But I think that what we 302 00:17:30,880 --> 00:17:32,760 Speaker 1: what we need to understand is the rallies have been 303 00:17:32,800 --> 00:17:37,640 Speaker 1: on very unlimited volume, that been on aggressive volume, and 304 00:17:38,000 --> 00:17:40,080 Speaker 1: that's I think that's the hallmark of a bear market. 305 00:17:40,160 --> 00:17:43,080 Speaker 1: So I think selling rallies the is the proper course 306 00:17:43,119 --> 00:17:46,160 Speaker 1: of action. Buying dips was the proper course of action, 307 00:17:46,320 --> 00:17:48,399 Speaker 1: it is no longer the proper course of action. You 308 00:17:48,520 --> 00:17:52,359 Speaker 1: mentioned treasuries. Is cash a better alternative at this point 309 00:17:53,440 --> 00:17:56,160 Speaker 1: when stocks are down? Cash is not a bad place 310 00:17:56,200 --> 00:17:58,480 Speaker 1: to be. Uh And and as I said that the 311 00:17:58,520 --> 00:18:00,840 Speaker 1: University of Acron we've gone to two year, three year, 312 00:18:00,880 --> 00:18:03,600 Speaker 1: four year, five year treasury notes, which I consider to 313 00:18:03,600 --> 00:18:07,760 Speaker 1: be essentially cash. Cash holding cash is a is a 314 00:18:07,840 --> 00:18:10,000 Speaker 1: great place to be. In my own portfolio, I've got 315 00:18:10,040 --> 00:18:13,439 Speaker 1: about twenty cash and the only major positions I have 316 00:18:13,520 --> 00:18:17,400 Speaker 1: are in gold and coude oil and commodities. It's been 317 00:18:17,600 --> 00:18:19,919 Speaker 1: I've had a nice period of time here for myself 318 00:18:19,920 --> 00:18:22,360 Speaker 1: for the last several weeks, and I'm going to continue. 319 00:18:22,440 --> 00:18:24,760 Speaker 1: So cash is I think the upper course of action, 320 00:18:25,240 --> 00:18:27,919 Speaker 1: or at least a good course of action, where for 321 00:18:27,920 --> 00:18:31,080 Speaker 1: the past decade it hasn't been. Now it is. I 322 00:18:31,080 --> 00:18:34,639 Speaker 1: would imagine growth is really really off the table for 323 00:18:34,720 --> 00:18:38,400 Speaker 1: you at this point. Growth has been off the table. 324 00:18:38,480 --> 00:18:41,000 Speaker 1: Growth will remain off the table, and the growth it 325 00:18:41,040 --> 00:18:42,480 Speaker 1: is probably not going to be on the table for 326 00:18:42,520 --> 00:18:45,520 Speaker 1: at least another six months, maybe a year more. Uh. 327 00:18:45,720 --> 00:18:48,280 Speaker 1: The damage that has been wrought in the growth of 328 00:18:48,600 --> 00:18:51,960 Speaker 1: portfolios of the of the country by in in in 329 00:18:51,960 --> 00:18:54,840 Speaker 1: in individual accounts has been extraordinary, and I think that 330 00:18:54,960 --> 00:18:57,840 Speaker 1: damage is going to get warm, not better. So again, 331 00:18:58,040 --> 00:19:00,680 Speaker 1: I think buying the dip is not the course of action. 332 00:19:00,760 --> 00:19:02,960 Speaker 1: Selling the rally is the proper course of action. Getting 333 00:19:03,040 --> 00:19:05,560 Speaker 1: less long is the proper way to be. I hate 334 00:19:05,560 --> 00:19:08,800 Speaker 1: to say that much more fun having bull markets. The 335 00:19:08,840 --> 00:19:11,119 Speaker 1: women are prettier, the clothing is nicer, to the music 336 00:19:11,240 --> 00:19:14,359 Speaker 1: is is pleasant to dance is lovely. And in the 337 00:19:14,359 --> 00:19:18,080 Speaker 1: bear markets music becomes a tonal and people become ugly 338 00:19:18,080 --> 00:19:20,479 Speaker 1: and nasty. And I'd much prefer a bowl market. But 339 00:19:20,640 --> 00:19:22,400 Speaker 1: and I hate to be bearish, but I think that's 340 00:19:22,440 --> 00:19:26,800 Speaker 1: the proper course, never nasty or ugly. Dennis Garman, Dennis, 341 00:19:26,840 --> 00:19:29,439 Speaker 1: you're actually gonna come back if he would, uh in 342 00:19:29,520 --> 00:19:32,360 Speaker 1: the next half hour to continue our conversation. Maybe we'll 343 00:19:32,400 --> 00:19:35,240 Speaker 1: pick up the commodities at that point. Account of as 344 00:19:35,320 --> 00:19:38,399 Speaker 1: Dennis Gartment appreciate that and ahead of the cash of 345 00:19:38,480 --> 00:19:41,399 Speaker 1: them on Wall Street right now futures in the green, 346 00:19:41,480 --> 00:19:44,680 Speaker 1: the down futures of one and thirty seven points, that's 347 00:19:44,720 --> 00:19:47,480 Speaker 1: a rise of four tenths of a percent, the SMP 348 00:19:47,600 --> 00:19:50,960 Speaker 1: five futures of twenty one points a rise of half 349 00:19:50,960 --> 00:19:54,720 Speaker 1: a percent, and the futures right now fifty nine points higher. 350 00:19:54,760 --> 00:19:58,800 Speaker 1: That's up half a percent. Dennis mentioned treasuries the benchmark 351 00:19:58,920 --> 00:20:02,000 Speaker 1: ten year yield two eighty one of three basis points. 352 00:20:02,440 --> 00:20:07,840 Speaker 1: You're listening to Bloomberg day Break out of Bloomberg Weather 353 00:20:07,880 --> 00:20:11,680 Speaker 1: for Rob Carolin. Partly sunny, cooler today and a lot 354 00:20:11,760 --> 00:20:14,320 Speaker 1: less hum of the heights amperture topic out at about 355 00:20:14,400 --> 00:20:18,520 Speaker 1: seventy five cloudy tonight blows fifty five to sixty degrees. 356 00:20:21,960 --> 00:20:26,480 Speaker 1: Broadcasting wide from the Bloomberg Interactive Broker Studio in New York, 357 00:20:26,600 --> 00:20:31,280 Speaker 1: Bloomberg E Living Free to Washington, d C, Bloomberg to Boston, 358 00:20:31,359 --> 00:20:34,800 Speaker 1: Bloomberg one O six one, to San Francisco, Bloomberg nine 359 00:20:34,840 --> 00:20:37,920 Speaker 1: sixteen to the country Sirius XM D A one nineteen 360 00:20:38,040 --> 00:20:41,200 Speaker 1: and around the globe the Bloomberg Business app and Bloomberg 361 00:20:41,280 --> 00:20:50,640 Speaker 1: Radio dot Com. This is Bloomberg day Break. It's five 362 00:20:50,720 --> 00:20:53,240 Speaker 1: thirty on Wall Street. Good morning, I'm John Tucker and 363 00:20:53,280 --> 00:20:56,360 Speaker 1: I'm Karen Moscow. We're just about four hours away from 364 00:20:56,400 --> 00:20:58,200 Speaker 1: the open of US trading. Let's get you have to 365 00:20:58,240 --> 00:20:59,639 Speaker 1: date on the news. You need to know what this 366 00:20:59,680 --> 00:21:03,120 Speaker 1: show were with futures higher amid expectations traders will help 367 00:21:03,160 --> 00:21:06,080 Speaker 1: lift the S and P five after a touch bearer 368 00:21:06,119 --> 00:21:09,840 Speaker 1: market Territory Friday. Despite talks of a US recession, Credit 369 00:21:09,880 --> 00:21:13,560 Speaker 1: Sweet CEO Thomas scotch Stein said he doesn't see what happening. 370 00:21:13,920 --> 00:21:18,560 Speaker 1: People are someone insecured in risk off mode. But our house, 371 00:21:18,600 --> 00:21:20,800 Speaker 1: he was still, is that there won't be a recession 372 00:21:21,040 --> 00:21:23,000 Speaker 1: neither this year the next year. There won't be slowed 373 00:21:23,040 --> 00:21:26,480 Speaker 1: down Credit See CEO Thomas Gonstein was speaking in Davos 374 00:21:26,520 --> 00:21:30,200 Speaker 1: with Bloomberg's Francie Lagua. Behind Weldavos World Economic Forum is 375 00:21:30,280 --> 00:21:33,439 Speaker 1: bank this year tuned into Bloomberg Television and Radio for 376 00:21:33,480 --> 00:21:36,720 Speaker 1: full coverage this week. Karen Stocks also jumped this morning 377 00:21:36,720 --> 00:21:39,840 Speaker 1: after President but they indicated China tariffs imposed by the 378 00:21:39,880 --> 00:21:44,480 Speaker 1: Trump administration or under consideration. Speaking in Tokyo, the presidents 379 00:21:44,480 --> 00:21:47,119 Speaker 1: that he believes the US will avoid a recession. He 380 00:21:47,200 --> 00:21:51,320 Speaker 1: also declared the U S would defend Taiwan. Should China attack. 381 00:21:52,240 --> 00:21:55,199 Speaker 1: My expectation is it will not happen, it will not 382 00:21:55,240 --> 00:21:58,640 Speaker 1: be attempted. My expectation is a lot of it depends 383 00:21:58,720 --> 00:22:03,600 Speaker 1: upon just how strong in the world makes clear that 384 00:22:03,720 --> 00:22:06,760 Speaker 1: that kind of action is going to result in long 385 00:22:06,880 --> 00:22:11,080 Speaker 1: term disapprobation by the rest of the community. President Biden 386 00:22:11,080 --> 00:22:14,119 Speaker 1: also announced that a dozen Into Pacific countries will join 387 00:22:14,200 --> 00:22:17,640 Speaker 1: the US and an economic initiative designed to counter China's 388 00:22:17,720 --> 00:22:20,680 Speaker 1: influence in the region. Well before boarding Air Force One 389 00:22:20,720 --> 00:22:23,639 Speaker 1: in South Korea yesterday, John the President addressed the growing 390 00:22:23,680 --> 00:22:28,080 Speaker 1: monkey pox outbreak. Well, heaven't told me the level of 391 00:22:28,119 --> 00:22:31,000 Speaker 1: exposure yet, but it is something that everybody should be 392 00:22:31,000 --> 00:22:34,199 Speaker 1: concerned about. We're working out of art figure out what 393 00:22:34,240 --> 00:22:37,400 Speaker 1: we do. President Biden said he spoke to advisors about 394 00:22:37,400 --> 00:22:41,320 Speaker 1: the monkeypox virus and while the US monitors monkey pox 395 00:22:41,480 --> 00:22:44,320 Speaker 1: is getting relief on the battle against the baby formula 396 00:22:44,400 --> 00:22:47,040 Speaker 1: shortage and Bloomberg's we need a young joins this life 397 00:22:47,040 --> 00:22:49,240 Speaker 1: with more. We need a good morning, Good morning John. 398 00:22:49,280 --> 00:22:52,359 Speaker 1: A plainload of more than seventy thousand pounds of baby 399 00:22:52,359 --> 00:22:55,960 Speaker 1: formula arrived in the U S Sunday. It's called Operation 400 00:22:56,080 --> 00:23:00,000 Speaker 1: Fly formula, an emergency program to alleviate a national shortage 401 00:23:00,119 --> 00:23:03,800 Speaker 1: that's left some parents grambling to feed their children. President 402 00:23:03,840 --> 00:23:07,159 Speaker 1: Biden's top economic advisor says more formula will arrive in 403 00:23:07,240 --> 00:23:10,320 Speaker 1: stores as early as this week. Last week, the President 404 00:23:10,359 --> 00:23:15,120 Speaker 1: invoked emergency powers to spur domestic manufacturing of baby formula. 405 00:23:15,560 --> 00:23:18,400 Speaker 1: Live in New York. I'm re need a young Bloomberg daybreak, 406 00:23:18,440 --> 00:23:19,960 Speaker 1: A right re need to thank you. Turning back to 407 00:23:20,000 --> 00:23:23,720 Speaker 1: equity shares, a vm Ware up in early trading. The 408 00:23:23,760 --> 00:23:27,600 Speaker 1: cloud computing company isn't asked to be bought by Broncom again. 409 00:23:27,720 --> 00:23:31,119 Speaker 1: Futures are moving higher and straight ahead your latest local 410 00:23:31,160 --> 00:23:38,760 Speaker 1: headlines plus the check of sports. This is Bloomberg. Thanks 411 00:23:40,119 --> 00:23:42,360 Speaker 1: Wall Street. Hand signed to bring in Michael Barr with 412 00:23:42,480 --> 00:23:44,480 Speaker 1: more on what else is going on to New York 413 00:23:44,600 --> 00:23:47,480 Speaker 1: end around the world, John, Thank you, sir. The search 414 00:23:47,600 --> 00:23:49,679 Speaker 1: is on for a gunman who shot a man on 415 00:23:49,760 --> 00:23:53,879 Speaker 1: the subway train in Manhattan Sunday morning. The suspect flat 416 00:23:54,040 --> 00:23:57,080 Speaker 1: The forty eight year old victim died later at a hospital. 417 00:23:57,440 --> 00:24:00,240 Speaker 1: In my p D. Chief of Department Kenneth Corey's says 418 00:24:00,280 --> 00:24:04,000 Speaker 1: the victim was shot in the chest. According to witnesses 419 00:24:04,440 --> 00:24:07,200 Speaker 1: the suspect was walking back and forth in the same 420 00:24:07,240 --> 00:24:11,320 Speaker 1: train car and without provocation, pulled out a gun and 421 00:24:11,359 --> 00:24:14,119 Speaker 1: fired it at the victim at close range. In my 422 00:24:14,280 --> 00:24:17,080 Speaker 1: p D Chief of Department Kenneth Corey says there was 423 00:24:17,160 --> 00:24:21,160 Speaker 1: apparently no prior contact between the victim and the suspect. Meanwhile, 424 00:24:21,200 --> 00:24:23,919 Speaker 1: the chief executive of Goldman Sachs says the forty eight 425 00:24:24,000 --> 00:24:26,919 Speaker 1: year old man shot and killed was an employee of 426 00:24:26,920 --> 00:24:30,960 Speaker 1: the firm. David Soloman says Daniel Enriquez was a beloved 427 00:24:30,960 --> 00:24:33,800 Speaker 1: member of the company for nine years. Solomon says the 428 00:24:33,800 --> 00:24:37,919 Speaker 1: firm was devastated by this senseless tragedy and our deepest 429 00:24:37,960 --> 00:24:41,800 Speaker 1: sympathies there with Dan's family. At this difficult time, Russia 430 00:24:41,960 --> 00:24:45,640 Speaker 1: is intensifying its attacks in eastern Ukraine as President Volodimir 431 00:24:45,680 --> 00:24:48,960 Speaker 1: z Lensky calls for even more powerful weapons to come 432 00:24:49,040 --> 00:24:53,040 Speaker 1: to the Russian invasion. Zelenski says between fifty two hundred 433 00:24:53,119 --> 00:24:57,720 Speaker 1: Ukrainian soldiers die every day on the battlefield. Meanwhile, the 434 00:24:57,800 --> 00:25:01,479 Speaker 1: threat of possible nuclear attacks can nues from President Putin. 435 00:25:02,000 --> 00:25:04,920 Speaker 1: Former Chairman of the Joint Chiefs Admiral Mike Mullin says 436 00:25:04,920 --> 00:25:08,200 Speaker 1: while he doesn't believe Putin will actually use nuclear weapons. 437 00:25:08,680 --> 00:25:11,320 Speaker 1: It's a possible action they have to consider. It's very 438 00:25:11,320 --> 00:25:14,480 Speaker 1: difficult to know what Footing is thinking on any particular time. 439 00:25:14,520 --> 00:25:17,480 Speaker 1: He's obviously spoken to this. I think we need to 440 00:25:17,520 --> 00:25:20,639 Speaker 1: make sure that we consider it. Former Chairman of the 441 00:25:20,720 --> 00:25:23,640 Speaker 1: Joint Chiefs Mullen spoke on a d c S this week, 442 00:25:23,720 --> 00:25:27,480 Speaker 1: which can be heard Sundays on Bloomberg. Mask requirements and 443 00:25:27,520 --> 00:25:31,400 Speaker 1: advisories are back in cities with rise in COVID nineteen cases. 444 00:25:31,480 --> 00:25:35,520 Speaker 1: Philadelphia is one of them. Starting today, face coverings. There 445 00:25:35,520 --> 00:25:39,760 Speaker 1: will be mandatory indoors and on school buses. Global News 446 00:25:39,800 --> 00:25:42,639 Speaker 1: twenty four hours a day on air and on Bloomberg 447 00:25:42,720 --> 00:25:45,920 Speaker 1: Quick Take, powered by more than twenty seven hundred journalists 448 00:25:45,960 --> 00:25:48,200 Speaker 1: and analysts in more than a hundred twenty countries. And 449 00:25:48,320 --> 00:25:51,280 Speaker 1: Michael Barr and this is Bloomberg, John, Michael, thank you. 450 00:25:55,440 --> 00:25:57,280 Speaker 1: Find thirty six on the wall. Stree toned down for 451 00:25:57,320 --> 00:26:01,560 Speaker 1: the Bloomberg Sports up Day and here Scots, I thanks John. 452 00:26:01,560 --> 00:26:04,720 Speaker 1: The Rangers desperately needed a win yesterday to avoid falling 453 00:26:04,760 --> 00:26:07,800 Speaker 1: down three games to none against the Hurricanes. The Goorcius 454 00:26:07,840 --> 00:26:10,680 Speaker 1: Turkey was up for the task. Stopping forty three shots 455 00:26:11,000 --> 00:26:13,840 Speaker 1: as the Blue Shirts defeated the King's three to one 456 00:26:14,160 --> 00:26:17,119 Speaker 1: Game four at the Garden. Tomorrow night else Where, the 457 00:26:17,160 --> 00:26:18,960 Speaker 1: Lightning take a three games to then lead over the 458 00:26:18,960 --> 00:26:21,680 Speaker 1: Panthers with a five one win. Edmonton goes up two 459 00:26:21,680 --> 00:26:24,920 Speaker 1: games to one over the Flames with a four one victory. 460 00:26:25,119 --> 00:26:28,320 Speaker 1: Baseball Rolta Shapman surrendered a tie breaking home run to 461 00:26:28,359 --> 00:26:30,320 Speaker 1: aj Pollock in the top of the ninth inning as 462 00:26:30,359 --> 00:26:32,600 Speaker 1: the Yankees dropped Game one of a double header to 463 00:26:32,640 --> 00:26:35,399 Speaker 1: the White Sox three to one. They would also lose 464 00:26:35,440 --> 00:26:38,960 Speaker 1: Game two, being shut out five nothing despite Luis Severino 465 00:26:39,119 --> 00:26:43,040 Speaker 1: going seven scoreless innings, the Yankees losing two straight, but 466 00:26:43,160 --> 00:26:45,560 Speaker 1: just the second time this sees it, it mets me. 467 00:26:45,640 --> 00:26:49,359 Speaker 1: While blank the Rockies to nothing, Taiwan Walker throwing seven 468 00:26:49,520 --> 00:26:53,120 Speaker 1: scoreless innings NBA Playoffs, the Warriors take a three oh 469 00:26:53,119 --> 00:26:55,160 Speaker 1: series lead over the Mavericks with a one on nine 470 00:26:56,080 --> 00:26:59,240 Speaker 1: in at Dallas, Game four of the Eastern Conference Finals 471 00:26:59,240 --> 00:27:02,120 Speaker 1: tonight in ball in Miami, Leeds two games to one. 472 00:27:02,320 --> 00:27:06,520 Speaker 1: Golf was an exciting finish at the PGA Championship yesterday, 473 00:27:06,680 --> 00:27:09,439 Speaker 1: and Justin Thomas is walking around for the quick tap 474 00:27:09,800 --> 00:27:13,440 Speaker 1: and he's got it. A two time major winner of 475 00:27:13,600 --> 00:27:19,119 Speaker 1: the PGA Championship. Justin Thomas, He's your hundred fort PGA 476 00:27:19,280 --> 00:27:23,800 Speaker 1: champion here at Southern Hills and Pulsa, Oklahoma. The call 477 00:27:23,960 --> 00:27:27,320 Speaker 1: is heard right here on Bloomberg Radio. Justin Thomas winning 478 00:27:27,400 --> 00:27:32,000 Speaker 1: his second one or Maker Trophy, outlasting Will's Salatorus in 479 00:27:32,040 --> 00:27:36,879 Speaker 1: a three whole playoff, Tom Scott said, Bloomberg Sports All 480 00:27:37,040 --> 00:27:40,119 Speaker 1: Thanks Scott, five thirty seven on Wall Street time out 481 00:27:40,160 --> 00:27:43,080 Speaker 1: for the Tri State Business Report. For that, we're joined 482 00:27:43,080 --> 00:27:47,600 Speaker 1: by Bloomberg's and Query. Supply chain snarls and labor shortages 483 00:27:47,920 --> 00:27:52,120 Speaker 1: threatened to impede the rebounded Manhattan's retail market. Some tenants 484 00:27:52,119 --> 00:27:56,000 Speaker 1: have delayed opening spaces because of challenges and obtaining equipment 485 00:27:56,080 --> 00:27:59,280 Speaker 1: and staff. Others had to wait for inspections and permits 486 00:28:00,080 --> 00:28:02,280 Speaker 1: into the real estate part of New York. You know, 487 00:28:02,359 --> 00:28:04,919 Speaker 1: New Jersey could be the cheapest state in the country 488 00:28:04,960 --> 00:28:06,960 Speaker 1: to own a n e V. The head of a 489 00:28:07,040 --> 00:28:11,240 Speaker 1: report from Energy Innovation, Policy and Technology says the state 490 00:28:11,280 --> 00:28:14,000 Speaker 1: offers a five thousand dollar rebate when you buy or 491 00:28:14,119 --> 00:28:17,639 Speaker 1: lease in e V. There's no purchase tax on those vehicles, 492 00:28:17,640 --> 00:28:21,000 Speaker 1: and there are other offers that make owning electric vehicles 493 00:28:21,040 --> 00:28:25,199 Speaker 1: more affordable. A two month initiative to promote cultural programs 494 00:28:25,200 --> 00:28:29,280 Speaker 1: in Ridgefield, Westport and Wilton, Connecticut, attracted more than one 495 00:28:29,400 --> 00:28:33,199 Speaker 1: hundred people of theaters, restaurants and businesses in the three towns. 496 00:28:33,600 --> 00:28:36,520 Speaker 1: This is according to a new survey following the inaugural 497 00:28:36,600 --> 00:28:41,080 Speaker 1: Culture Crawl. That's your Bloomberg Trying State Business Report. IMD 498 00:28:41,160 --> 00:28:43,880 Speaker 1: Corey Dank said it is five thirty eight on the 499 00:28:43,920 --> 00:28:46,520 Speaker 1: Wall Street. Bloomberg Radio is on the air from San 500 00:28:46,560 --> 00:28:49,960 Speaker 1: Francisco to New York, London to Hong Kong. And let's 501 00:28:49,960 --> 00:28:51,960 Speaker 1: sent in now with our global news team for some 502 00:28:52,000 --> 00:28:54,400 Speaker 1: of the top stories heard on our three hundred affiliate 503 00:28:54,520 --> 00:29:00,800 Speaker 1: radio stations around the world. I Ve Potas go on 504 00:29:00,960 --> 00:29:03,480 Speaker 1: Ted Ted Winds in New York. We're talking about how 505 00:29:03,520 --> 00:29:07,320 Speaker 1: a lot of stock market participants expect still more pay 506 00:29:07,480 --> 00:29:10,360 Speaker 1: get to come this year. Um Corney Donahoe on w 507 00:29:10,640 --> 00:29:13,520 Speaker 1: h A s and Louisville. American car shoppers are least 508 00:29:13,600 --> 00:29:17,000 Speaker 1: likely to buy an electric vehicle compared to overseas. I'm 509 00:29:17,080 --> 00:29:20,520 Speaker 1: Gina Servetti in for w c CEO in Minneapolis. I'm 510 00:29:20,520 --> 00:29:24,440 Speaker 1: reporting that many states, including Minnesota, have unemployment rates well 511 00:29:24,480 --> 00:29:28,360 Speaker 1: below three point six percent the national average. I'm Stephen 512 00:29:28,400 --> 00:29:31,160 Speaker 1: Caroll and Bloomberg DAB Digital Radio and London. We've been 513 00:29:31,200 --> 00:29:33,760 Speaker 1: reporting on the new Economic Park for the Asia Pacific, 514 00:29:33,920 --> 00:29:37,400 Speaker 1: danced by Pastor Joe Biden visiting Japan. I'm Ed Cory 515 00:29:37,520 --> 00:29:40,400 Speaker 1: on w p A M in Cleveland. I'm reporting Peter 516 00:29:40,560 --> 00:29:44,840 Speaker 1: point his unveiled new hotel property and new dining option. 517 00:29:47,080 --> 00:29:49,000 Speaker 1: And those are some of the stories. There are twenty 518 00:29:49,040 --> 00:29:51,680 Speaker 1: seven hundred Bloomberg journalists and analysts are working on this 519 00:29:51,840 --> 00:29:55,240 Speaker 1: morning around the world. It is fine thirty nine on 520 00:29:55,400 --> 00:29:59,480 Speaker 1: Wall Street. The following is an editorial from Bloomberg Opinion. 521 00:29:59,720 --> 00:30:02,680 Speaker 1: By threatened into block the enlargement of NATO to include 522 00:30:02,720 --> 00:30:06,400 Speaker 1: Finland and Sweden, Turkish President retch up type Urdawan has 523 00:30:06,440 --> 00:30:10,200 Speaker 1: revived doubts about Turkey's reliability as a member of the Alliance. 524 00:30:10,600 --> 00:30:13,000 Speaker 1: US and European leaders should make clear that air to 525 00:30:13,040 --> 00:30:16,920 Speaker 1: Wan's behavior undermines NATO's collective security and should be willing 526 00:30:16,960 --> 00:30:20,800 Speaker 1: to impose consequences if it continues. After all, this isn't 527 00:30:20,840 --> 00:30:23,520 Speaker 1: the first time aer Towan has threatened to disrupt NATO's 528 00:30:23,560 --> 00:30:28,040 Speaker 1: broad plans unless Turkey's narrow interests are served, NATO can 529 00:30:28,120 --> 00:30:32,160 Speaker 1: afford to subject itself to repeated brinksmanship until Aardwan changes 530 00:30:32,240 --> 00:30:36,920 Speaker 1: his behavior. Turkish participation in NATO planning and exercises should 531 00:30:36,960 --> 00:30:40,720 Speaker 1: be reduced to the bare minimum, and if mild rebukes fail, 532 00:30:41,080 --> 00:30:45,520 Speaker 1: harsher punishments should be considered. NATO's message should be simple. 533 00:30:45,960 --> 00:30:48,760 Speaker 1: The security of the group must not be held hostage 534 00:30:49,000 --> 00:30:52,000 Speaker 1: by one repeat offender. This editor was written by the 535 00:30:52,000 --> 00:30:56,280 Speaker 1: Bloomberg Opinion Editorial Board. I'm David Shipley. For more Bloomberg opinion, 536 00:30:56,320 --> 00:30:59,720 Speaker 1: please go to Bloomberg dot com, slash opinion or opiango 537 00:31:00,080 --> 00:31:06,600 Speaker 1: on the Bloomberg terminal base has been Bloomberg Opinion. Bloomberg 538 00:31:06,640 --> 00:31:09,400 Speaker 1: Opinion editorials can be heard every weekday. At this time, 539 00:31:09,520 --> 00:31:13,120 Speaker 1: terminal customers can read more at O P I N 540 00:31:13,280 --> 00:31:17,040 Speaker 1: go Right now down theaters up two D five points, 541 00:31:17,360 --> 00:31:22,800 Speaker 1: SMP theaters up thirty at the Bloomberg weather forts today 542 00:31:22,840 --> 00:31:26,040 Speaker 1: becoming partly sunny, cooler less you than the high temperature 543 00:31:26,080 --> 00:31:29,400 Speaker 1: than its seventies to like mostly cloudy, low tempo of 544 00:31:29,520 --> 00:31:39,080 Speaker 1: years fifty five to sixty degrees. Markets, headlines and breaking 545 00:31:39,160 --> 00:31:42,000 Speaker 1: news twenty four hours a day at Bloomberg dot Com, 546 00:31:42,120 --> 00:31:45,240 Speaker 1: the Bloomberg Business at and at Bloomberg Quick tape. This 547 00:31:45,640 --> 00:31:54,880 Speaker 1: is a Bloomberg business flash and I'm kmeron Moscal stocks 548 00:31:54,920 --> 00:31:57,760 Speaker 1: and that you want advancing. After President Joe Biden said 549 00:31:57,840 --> 00:32:01,720 Speaker 1: China tariffs imposed by the Trump adminish station. We're under consideration. 550 00:32:02,160 --> 00:32:05,600 Speaker 1: The dollar and treasuries are retreating. US dock index futures 551 00:32:05,640 --> 00:32:08,520 Speaker 1: are rising him at expectations market hunters will help full 552 00:32:08,560 --> 00:32:11,600 Speaker 1: the S and P five hundred back from bear market levels. 553 00:32:11,720 --> 00:32:14,000 Speaker 1: We check the markets every fifteen minutes throughout the trading 554 00:32:14,080 --> 00:32:17,240 Speaker 1: day on Bloomberg S and P futures up about twenty 555 00:32:17,320 --> 00:32:20,320 Speaker 1: seven points down, futures of A hundred eighty four NAS 556 00:32:20,400 --> 00:32:23,440 Speaker 1: day futures up seventy two. The decks in Germany is 557 00:32:23,560 --> 00:32:26,320 Speaker 1: up half percent. Foot See one hundred up nine ten 558 00:32:26,480 --> 00:32:28,960 Speaker 1: percent in the CAC in Paris little change. The nat 559 00:32:29,000 --> 00:32:31,960 Speaker 1: K to twenty five in Japan gained one percent well. 560 00:32:31,960 --> 00:32:34,080 Speaker 1: The Hang Sing in Hong Kong was down one point 561 00:32:34,120 --> 00:32:37,240 Speaker 1: two percent ten. Your treasury down eleven thirty seconds yield 562 00:32:37,240 --> 00:32:39,680 Speaker 1: two point two percent. They yield on the two year 563 00:32:39,800 --> 00:32:42,920 Speaker 1: two point six zero percent. Nine max screwed oil of 564 00:32:43,080 --> 00:32:45,680 Speaker 1: one percent up a dollar thirteen and a hundred eleven 565 00:32:45,720 --> 00:32:48,640 Speaker 1: dollars forty one cents of barrel comes. Gold is up 566 00:32:48,680 --> 00:32:51,040 Speaker 1: one point one percent, or twenty dollars nineties cents and 567 00:32:51,120 --> 00:32:53,960 Speaker 1: one thousand, eight hundred sixty nine dollars thirty cents and ounce. 568 00:32:54,400 --> 00:32:56,840 Speaker 1: The euro one point oh six eight two against the 569 00:32:56,920 --> 00:33:00,040 Speaker 1: dollar British found one point to five seven seven, and 570 00:33:00,120 --> 00:33:03,160 Speaker 1: the yen at one seven point five five. Bitcoin is 571 00:33:03,200 --> 00:33:06,080 Speaker 1: moving higher, up one and a half percent at thirty 572 00:33:06,160 --> 00:33:09,720 Speaker 1: thousand and three hundred fifty dollars. That's a Bloomberg business flash. 573 00:33:09,800 --> 00:33:12,040 Speaker 1: Now here's Michael bar with more on what's going on 574 00:33:12,200 --> 00:33:15,719 Speaker 1: around the world. Michael Karen, thank you very much. President 575 00:33:15,800 --> 00:33:18,920 Speaker 1: Joe Biden says the US would intervene militarily of China 576 00:33:18,960 --> 00:33:23,040 Speaker 1: where to invade Taiwan. Speaking in Tokyo, President Biden's as 577 00:33:23,120 --> 00:33:27,280 Speaker 1: such a move would dislocate the entire region. China has 578 00:33:27,360 --> 00:33:32,440 Speaker 1: reacted to the comments angering Beijing. Chinese Foreign Ministry spokesperson said, 579 00:33:32,560 --> 00:33:36,760 Speaker 1: don't underestimate the resolve for China to protect its territorial integrity. 580 00:33:37,080 --> 00:33:41,080 Speaker 1: It considers Taiwan to break away province C seventeen military 581 00:33:41,160 --> 00:33:44,800 Speaker 1: cargo plane carrying about seventy eight thousand pounds of specialized 582 00:33:44,800 --> 00:33:49,000 Speaker 1: baby formula from overseas landed in Indiana yesterday to help 583 00:33:49,160 --> 00:33:52,760 Speaker 1: ease the shortage. Government officials say this shipment has enough 584 00:33:52,800 --> 00:33:56,120 Speaker 1: product to make five hundred thousand, eight ounce bottles of formula. 585 00:33:56,480 --> 00:33:59,320 Speaker 1: In the NHL Playoffs, the Rangers beat the Hurricanes three one. 586 00:33:59,400 --> 00:34:02,360 Speaker 1: Carolina's still leads the series three games to two games 587 00:34:02,400 --> 00:34:05,160 Speaker 1: to one. In the NBA Playoffs, the Warriors beat the 588 00:34:05,200 --> 00:34:07,600 Speaker 1: Mavericks one O nine one hundred to lead the Western 589 00:34:07,680 --> 00:34:11,000 Speaker 1: Conference Finals three games to zip. Baseball, the Yankees lost 590 00:34:11,040 --> 00:34:13,839 Speaker 1: a doubleheader. The Matt's Red Sox Orioles and Nationals won 591 00:34:14,200 --> 00:34:17,000 Speaker 1: the Giants and A's lost. Global news twenty four hours 592 00:34:17,080 --> 00:34:20,200 Speaker 1: a day on air and on Bloomberg Quick Take, powered 593 00:34:20,239 --> 00:34:23,279 Speaker 1: by more than twenty hundred journalist and analysts more than 594 00:34:23,320 --> 00:34:26,600 Speaker 1: a hundred twenty countries and Michael barn This is Bloomberg, John, Michael, 595 00:34:26,640 --> 00:34:29,080 Speaker 1: thank you. It is five forty nine on Wall Street. 596 00:34:29,120 --> 00:34:33,440 Speaker 1: We are live for the Bloomberg Interhantbroker Studios. Let's continue 597 00:34:33,480 --> 00:34:36,880 Speaker 1: our markets coverage this morning. Bring back our guest economists. 598 00:34:36,880 --> 00:34:39,400 Speaker 1: Dennis Gartman, share of the University of ancoradi down the 599 00:34:39,600 --> 00:34:43,120 Speaker 1: former publisher of The Garment Letter Dennis. For those that 600 00:34:43,239 --> 00:34:45,680 Speaker 1: didn't catch the first part of our conversation, can you 601 00:34:45,800 --> 00:34:49,080 Speaker 1: just reiterate your stance that we are firmly in the 602 00:34:49,160 --> 00:34:53,120 Speaker 1: grip of a bear market. There's no question in my 603 00:34:53,239 --> 00:34:54,800 Speaker 1: mind that where it's firmly in the grip of a 604 00:34:54,840 --> 00:34:57,600 Speaker 1: bear market. I find it amusing John that people want 605 00:34:57,640 --> 00:34:59,359 Speaker 1: to think that we don't enter a bear market tour 606 00:34:59,440 --> 00:35:02,359 Speaker 1: down twenty percent. To my mind, anytime we're down more 607 00:35:02,400 --> 00:35:06,880 Speaker 1: than seven, you should at least be respectful. And I 608 00:35:06,960 --> 00:35:10,080 Speaker 1: think anything under ten more than ten is a bear market, 609 00:35:10,880 --> 00:35:15,560 Speaker 1: is a I think a comical UH threshold number two 610 00:35:15,680 --> 00:35:17,759 Speaker 1: to be concerned about. I think we're in a bear market. 611 00:35:17,800 --> 00:35:20,120 Speaker 1: I think we began the bear market January fifth of 612 00:35:20,160 --> 00:35:22,239 Speaker 1: this year. Bear markets begin at the peak of of 613 00:35:22,840 --> 00:35:26,960 Speaker 1: of stock market. In January fifth was the peak. I 614 00:35:27,040 --> 00:35:28,640 Speaker 1: think we're in a bear market that may last for 615 00:35:28,760 --> 00:35:30,719 Speaker 1: quite some period of time as the FED takes away 616 00:35:30,800 --> 00:35:33,680 Speaker 1: the fuel that has sponsored the bull market for the 617 00:35:33,719 --> 00:35:37,040 Speaker 1: past several years. The fact that the Fed is has 618 00:35:37,120 --> 00:35:39,840 Speaker 1: taken its balance sheet from nine billion dollars I'm almost 619 00:35:39,880 --> 00:35:42,800 Speaker 1: a decade ago to nine trillion dollars as of a 620 00:35:42,840 --> 00:35:45,480 Speaker 1: couple of weeks ago that has been the fuel that 621 00:35:45,560 --> 00:35:48,160 Speaker 1: sponsored the bull market. The ft is to take away 622 00:35:49,239 --> 00:35:52,200 Speaker 1: billion dollars a month, actually beginning in two months. That 623 00:35:52,239 --> 00:35:54,040 Speaker 1: they're going to take sixty five billion for the next 624 00:35:54,080 --> 00:35:56,360 Speaker 1: two months, and then after that billion dollars out of 625 00:35:56,400 --> 00:35:58,879 Speaker 1: the balance sheet to the course of the next several years. 626 00:35:59,320 --> 00:36:01,359 Speaker 1: The fuel that had sponsor the bull market is being 627 00:36:01,400 --> 00:36:03,200 Speaker 1: taken away, and you have to be careful. So as 628 00:36:03,239 --> 00:36:06,000 Speaker 1: I like to say, in a bear market, one who 629 00:36:06,080 --> 00:36:09,520 Speaker 1: loses is the winner. As the chairman of the University 630 00:36:09,520 --> 00:36:11,719 Speaker 1: of Akrons Endowment, I got us to move almost twelve 631 00:36:12,040 --> 00:36:15,120 Speaker 1: of our portfolio out December thirty one of last year. 632 00:36:15,600 --> 00:36:17,400 Speaker 1: We're still going to be down for the year thus far, 633 00:36:17,480 --> 00:36:19,280 Speaker 1: but we're gonna be down a lot less than everybody 634 00:36:19,320 --> 00:36:22,000 Speaker 1: else is, simply because we're losing less. We we moved 635 00:36:22,040 --> 00:36:24,920 Speaker 1: to the sidelines about two year, three year, four year, 636 00:36:25,000 --> 00:36:29,120 Speaker 1: five year treasury security instead, and we I think we've 637 00:36:29,120 --> 00:36:31,680 Speaker 1: done a good job of of mitigating the losses that 638 00:36:31,760 --> 00:36:34,200 Speaker 1: other people are having to experience. So I think the 639 00:36:34,239 --> 00:36:36,600 Speaker 1: spare market lasts for a period of time, probably at 640 00:36:36,680 --> 00:36:38,680 Speaker 1: least several more months, maybe even a year or more. 641 00:36:39,120 --> 00:36:40,920 Speaker 1: And you have to be careful. So I say that 642 00:36:41,120 --> 00:36:43,200 Speaker 1: this is not the time to buy a weakness, This 643 00:36:43,360 --> 00:36:45,839 Speaker 1: is the time to sell into rallies. There was hope 644 00:36:45,880 --> 00:36:48,800 Speaker 1: that the bargain hunters will step in at least for 645 00:36:48,840 --> 00:36:52,360 Speaker 1: the S and P five where the PE overall is 646 00:36:52,560 --> 00:36:57,200 Speaker 1: somewhere around nineteen. Is that a bargain now, yeah, PE 647 00:36:57,400 --> 00:36:59,160 Speaker 1: is when they get to fourteen or fifteen, may well 648 00:36:59,200 --> 00:37:02,160 Speaker 1: be a bargain. P's and nineteen or I think normal, 649 00:37:02,640 --> 00:37:07,680 Speaker 1: uh not not terribly cheap by any history tendency. The 650 00:37:07,719 --> 00:37:10,480 Speaker 1: fact that we got over what price learning is multiple 651 00:37:10,880 --> 00:37:14,480 Speaker 1: six months ago, to me that was extremely high. So again, 652 00:37:15,040 --> 00:37:17,439 Speaker 1: selling to strength is the proper course of action. Buying 653 00:37:17,480 --> 00:37:19,560 Speaker 1: weaknesses not the proper course of action. And I hope 654 00:37:19,600 --> 00:37:24,040 Speaker 1: that I'm clear. We contracted the last quarter. What does 655 00:37:24,120 --> 00:37:28,080 Speaker 1: your betting in terms of recession at this point? I 656 00:37:28,160 --> 00:37:30,680 Speaker 1: think that we're gonna have as as we know, the 657 00:37:30,680 --> 00:37:32,600 Speaker 1: first quarter was down to at one point four percent 658 00:37:32,719 --> 00:37:35,320 Speaker 1: g d P. We're probably gonna have a slight positive 659 00:37:35,360 --> 00:37:38,040 Speaker 1: second quarter GDP, but I think by the third quarter 660 00:37:38,080 --> 00:37:40,640 Speaker 1: will have negative GDP. Again, it won't be the material 661 00:37:41,200 --> 00:37:44,239 Speaker 1: maybe reflective of what happened in the first quarter. The 662 00:37:45,000 --> 00:37:48,160 Speaker 1: definition of a recession is two consecutive quarters of GDP growth. 663 00:37:48,600 --> 00:37:50,279 Speaker 1: That's not going to happen for quite some period of 664 00:37:50,320 --> 00:37:52,600 Speaker 1: time yet, simply because the second quarter numbers will be 665 00:37:52,880 --> 00:37:56,319 Speaker 1: slightly positive, but I think will be in a reasonably 666 00:37:56,560 --> 00:37:59,840 Speaker 1: evident recession by the third quarter of this year, lasting 667 00:38:00,040 --> 00:38:02,040 Speaker 1: until the early part of next year. It will not 668 00:38:02,160 --> 00:38:05,080 Speaker 1: be as ugly as we went through. It will not 669 00:38:05,160 --> 00:38:06,880 Speaker 1: be as ugly as we went through in nineteen seventy 670 00:38:06,920 --> 00:38:09,160 Speaker 1: two to seventy four. It will not be as ugly 671 00:38:09,200 --> 00:38:11,760 Speaker 1: as we went through in the nineteen eighties. But nonetheless 672 00:38:11,760 --> 00:38:14,520 Speaker 1: it's going to be negative GDP growth, and the unemployment 673 00:38:14,600 --> 00:38:17,719 Speaker 1: rate will probably start ticking back up above four maybe 674 00:38:17,760 --> 00:38:20,000 Speaker 1: get back to a more manageable five percent by the 675 00:38:20,040 --> 00:38:22,000 Speaker 1: course of the mid year next year. You brought up 676 00:38:22,040 --> 00:38:25,560 Speaker 1: the seventies. Um, I'm looking at the personal consumption expended, 677 00:38:25,640 --> 00:38:30,920 Speaker 1: your core price index at this point nowhere near replicating 678 00:38:31,040 --> 00:38:37,239 Speaker 1: the nineteen seventies. Does that offer salace? That there is 679 00:38:37,320 --> 00:38:40,080 Speaker 1: marginal solace to be to be gained by that, U 680 00:38:40,360 --> 00:38:42,040 Speaker 1: you and I have We've been around for a long 681 00:38:42,080 --> 00:38:47,080 Speaker 1: period of time. I can remember when I remember when 682 00:38:47,120 --> 00:38:49,000 Speaker 1: the thirty year bond had had a fourteen and a 683 00:38:49,080 --> 00:38:51,840 Speaker 1: quarter percent coupon and you couldn't give it away in 684 00:38:51,880 --> 00:38:54,680 Speaker 1: the early nineteen eighties. That was that was what the 685 00:38:55,200 --> 00:38:57,719 Speaker 1: result of the inflation of the nineteen seventies still being 686 00:38:57,840 --> 00:39:00,760 Speaker 1: linked about are we going to have inflation of about 687 00:39:00,840 --> 00:39:03,759 Speaker 1: five and six percent for protected period of time? Yes? 688 00:39:03,800 --> 00:39:06,280 Speaker 1: Are we going to have inflation numbers that were evident 689 00:39:06,320 --> 00:39:08,160 Speaker 1: back in the nineteen seventies and early eighties, And no, 690 00:39:08,239 --> 00:39:10,000 Speaker 1: we're not going to go back there again. All right, 691 00:39:10,080 --> 00:39:12,799 Speaker 1: broad commodities, they've been in a rally. Is that going 692 00:39:12,880 --> 00:39:16,880 Speaker 1: to persist probably for some period of time. The grain markets, 693 00:39:16,920 --> 00:39:20,520 Speaker 1: I think are still extremely strong. Corn looks like go 694 00:39:20,600 --> 00:39:22,759 Speaker 1: a lot higher. Weed looks like it wants to go 695 00:39:22,840 --> 00:39:25,279 Speaker 1: a lot higher. The only commodity that I'm really not 696 00:39:25,440 --> 00:39:28,000 Speaker 1: terribly bullish of is the bean a soybeans, simply because 697 00:39:28,400 --> 00:39:31,080 Speaker 1: we've delayed the planning of the corn market rather dramatically 698 00:39:31,120 --> 00:39:34,000 Speaker 1: because of the old weather that has persists across the Midwest, 699 00:39:34,520 --> 00:39:37,400 Speaker 1: and at the margin, the last percent of acreage that 700 00:39:37,440 --> 00:39:40,080 Speaker 1: didn't get into corn may go into beans. So the 701 00:39:40,160 --> 00:39:42,239 Speaker 1: only commodity that I'm really not terribly bullish of is 702 00:39:42,520 --> 00:39:45,120 Speaker 1: is soybeans. I'm still bullish of the grain of the 703 00:39:45,600 --> 00:39:49,160 Speaker 1: crude oil. Always remember that markets predated where the front 704 00:39:49,200 --> 00:39:51,120 Speaker 1: months are gaining upon the back months on up on 705 00:39:51,280 --> 00:39:54,080 Speaker 1: updates and down days is a bowl market, and the 706 00:39:54,160 --> 00:39:56,280 Speaker 1: front month is now trading over two dollars and fifty 707 00:39:56,320 --> 00:39:59,680 Speaker 1: cents premium of the second future back that the market 708 00:39:59,760 --> 00:40:02,680 Speaker 1: and crude oil continues to be backquidated and baquidated, markets 709 00:40:02,760 --> 00:40:05,719 Speaker 1: go higher, not lower. Yeah, You've always told us to 710 00:40:06,440 --> 00:40:11,320 Speaker 1: look for the term structure and the indications that that offers. 711 00:40:11,440 --> 00:40:15,440 Speaker 1: Right now, Yes, it needs to be quite bullish that 712 00:40:15,560 --> 00:40:18,520 Speaker 1: the term structure continues to be inverted in crude oil. 713 00:40:18,960 --> 00:40:21,440 Speaker 1: As long as the term structure remains inverted, you cannot 714 00:40:21,480 --> 00:40:23,520 Speaker 1: be short. You have to be long if you're going 715 00:40:23,560 --> 00:40:25,520 Speaker 1: to trade crude oil at all. So they it wants 716 00:40:25,520 --> 00:40:30,000 Speaker 1: to go higher, and I'm I'm still the only positions 717 00:40:30,000 --> 00:40:32,160 Speaker 1: that I have in my own retirement account. I'm long 718 00:40:32,239 --> 00:40:35,640 Speaker 1: of gold, and I'm long of crude oil purveyors stocks 719 00:40:36,000 --> 00:40:39,160 Speaker 1: and that that pay large dividends xx on that sort 720 00:40:39,200 --> 00:40:42,440 Speaker 1: of thing. It's been I've been very fortunate the markets 721 00:40:42,480 --> 00:40:44,080 Speaker 1: moving from the lower left to the upper right in 722 00:40:44,120 --> 00:40:46,359 Speaker 1: that instance, and I'm going to continue to hold them. 723 00:40:46,800 --> 00:40:50,400 Speaker 1: Commodities are settled in dollars, So what's the dynamic is 724 00:40:50,440 --> 00:40:55,560 Speaker 1: the dollar strengthens crude, it makes commodity prices for foreign 725 00:40:55,600 --> 00:40:57,600 Speaker 1: countries a lot more expensive, and it's going to make 726 00:40:57,680 --> 00:41:01,560 Speaker 1: that it's I think supportive of crude of commodity prices generally, 727 00:41:01,680 --> 00:41:04,279 Speaker 1: So be careful if you're a third world country, if 728 00:41:04,320 --> 00:41:07,200 Speaker 1: you're a developing nation, you've got a real problem because 729 00:41:07,200 --> 00:41:10,040 Speaker 1: you've got rising commodity prices and a rising dollar. You're 730 00:41:10,080 --> 00:41:12,640 Speaker 1: getting hurt and both direct and gold. I know you're 731 00:41:12,680 --> 00:41:15,359 Speaker 1: not a gold bud, but how is gold acting as 732 00:41:15,400 --> 00:41:18,960 Speaker 1: a hedge right now or beyond. It's acting quite well, 733 00:41:19,120 --> 00:41:20,600 Speaker 1: to be quite honest, I think the fact that we're 734 00:41:20,640 --> 00:41:23,400 Speaker 1: training above eighteen fifty is very impressive. The fact that 735 00:41:23,480 --> 00:41:25,400 Speaker 1: it's doing so even as the bond market wants to 736 00:41:25,480 --> 00:41:28,080 Speaker 1: try to make some loads. Of the bond market wants 737 00:41:28,120 --> 00:41:29,960 Speaker 1: to try to to go a little bit higher. Rates 738 00:41:29,960 --> 00:41:32,680 Speaker 1: want to come down just a tad, and it's impressive 739 00:41:32,760 --> 00:41:35,000 Speaker 1: that the gold market is holding its rally and doing 740 00:41:35,160 --> 00:41:38,480 Speaker 1: reasonably well. So again, at the University of Akron, I 741 00:41:38,560 --> 00:41:41,759 Speaker 1: moved this out of a year ago almost February last Well, 742 00:41:42,040 --> 00:41:45,080 Speaker 1: actually it's over a year, fourteen months ago. I moved 743 00:41:45,160 --> 00:41:47,560 Speaker 1: three percent of the portfolio out of out of stocks 744 00:41:47,600 --> 00:41:50,400 Speaker 1: into three percent into gold. And I'm trying to convince 745 00:41:50,520 --> 00:41:53,279 Speaker 1: my compatriots on the on the to buy a little 746 00:41:53,320 --> 00:41:55,400 Speaker 1: bit more gold because it's been it's been working. So 747 00:41:55,960 --> 00:41:58,080 Speaker 1: I think of all the of all the hedges that 748 00:41:58,160 --> 00:42:01,480 Speaker 1: you want to have on in place of the inflationary 749 00:42:01,560 --> 00:42:04,480 Speaker 1: circumstances to prevail. You want to own the gold market. 750 00:42:04,520 --> 00:42:08,759 Speaker 1: You want to avoid, if at all possible, cryptocurrencies. Okay, well, 751 00:42:08,800 --> 00:42:13,640 Speaker 1: we heard from Christine Leguards saying and as it's this garbage, 752 00:42:13,800 --> 00:42:17,760 Speaker 1: So you're you're in good company on that front. Economist, dentist, 753 00:42:17,800 --> 00:42:21,640 Speaker 1: government share of the University of acron endowmod and former 754 00:42:21,680 --> 00:42:24,760 Speaker 1: publisher of the Garment Letter as always a pleasure of dentist, 755 00:42:24,800 --> 00:42:27,759 Speaker 1: appreciated head of the cash open on Wall Street in 756 00:42:27,880 --> 00:42:32,240 Speaker 1: the green the down futures right now forty six points. 757 00:42:32,320 --> 00:42:35,239 Speaker 1: That's a rise of half a percent, smp E many 758 00:42:35,320 --> 00:42:37,800 Speaker 1: futures they're up twenty they're up half a percent. And 759 00:42:37,880 --> 00:42:40,840 Speaker 1: then as their futures right now up forty five points 760 00:42:41,239 --> 00:42:45,160 Speaker 1: of four ten percent ten year yield at eighty two. 761 00:42:45,280 --> 00:42:48,800 Speaker 1: That's of four basis points you're listening to Bloomberg Daybreak