WEBVTT - Bloomberg Daybreak: May 23, 2022 - Hour 1 (Radio) 0:00:00.720 --> 0:00:04.320 By from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:04.360 --> 0:00:08.119 day Break for Monday May two. Coming up this hour, 0:00:08.360 --> 0:00:11.560 stock futures rise. Following the longest losing streak for the 0:00:11.720 --> 0:00:15.120 SMP five hundred in decades, President Biden said the US 0:00:15.200 --> 0:00:19.040 would intervene to defend Taiwan from China or baby formula 0:00:19.200 --> 0:00:22.080 arrives in the US, and Broadcom isn't talk to buy 0:00:22.200 --> 0:00:25.520 a top cloud computing company. New York City police continued 0:00:25.560 --> 0:00:28.240 to search for the gunman in a deadly random subway shooting. 0:00:28.280 --> 0:00:31.080 Plus Ukraine says up to one hundred of their soldiers 0:00:31.120 --> 0:00:35.080 die every day. I'm Michael Barr. More ahead, I'm Scotts Edinburg, 0:00:35.200 --> 0:00:38.320 Yankey swept in a doubleheader, the Mets pickup wind and 0:00:38.400 --> 0:00:41.720 the Rangers defend the hallmarks of that More coming up 0:00:41.760 --> 0:00:47.400 in sports. That's all Trading ahead on Bloomberg Daybreak on 0:00:47.520 --> 0:00:52.000 Bloomberg eleven three on New York, Bloomberg one, Washington, d C, 0:00:52.479 --> 0:00:56.760 Bloomberg one oh six one, Boston, Bloomberg nine sixty, San Francisco, 0:00:57.240 --> 0:01:00.200 Syrius Exam one nine team and around the world Old 0:01:00.240 --> 0:01:03.720 on Bloomberg Radio dot Com and via the Bloomberg Business app. 0:01:07.720 --> 0:01:10.760 Good morning, I'm John Tucker and I'm Karen Moscow and 0:01:10.920 --> 0:01:14.000 US DOT Index futures are higher this morning, where coming 0:01:14.040 --> 0:01:15.520 up to five out one on Wall Street, and we 0:01:15.600 --> 0:01:18.120 check the markets every fifteen minutes throughout the trading day 0:01:18.240 --> 0:01:21.720 on Bloomberg. Right now, SNP futures are up about nineteen 0:01:21.720 --> 0:01:24.640 points down futures of a hundred thirty NASDAG futures of 0:01:24.800 --> 0:01:27.840 forty eight the decks in Germany's up about six tenths 0:01:27.840 --> 0:01:30.760 of upper cent ten year treasury down eight thirties seconds 0:01:30.840 --> 0:01:32.920 held two point eight one percent. They yield on the 0:01:32.959 --> 0:01:35.920 two year two point six zero percent, and nine X 0:01:35.959 --> 0:01:38.479 screwed oil is up half percent and a hundred ten 0:01:38.520 --> 0:01:42.039 dollars eighty seven cents of barrel. John Currently rise in 0:01:42.120 --> 0:01:44.959 futures comes after the S and P five hundred touched 0:01:45.000 --> 0:01:48.280 bear market territory on Friday and closed lower for a 0:01:48.400 --> 0:01:52.120 seventh straight week. According to Bespoke Investment Group, is just 0:01:52.280 --> 0:01:56.320 the SNPs fourth streak of seven or more weekly losses 0:01:56.640 --> 0:02:00.160 in the post World War two era. Alexafronis on the 0:02:00.280 --> 0:02:03.800 partner and co CEO at i e Q Capital dentament 0:02:03.960 --> 0:02:07.360 is terrible enough so we're we're ready for a bear 0:02:07.480 --> 0:02:10.919 market rally, but it's still probably a bear market rally 0:02:11.080 --> 0:02:13.440 until such time as there's evidence the economy that is 0:02:13.560 --> 0:02:16.480 very close to a bottom. Alexand friend of I e 0:02:16.560 --> 0:02:19.880 Q Capital is not alone in thinking stocks will head lower. 0:02:20.120 --> 0:02:24.160 According to the latest Bloomberg m Live Pulse, pol participants 0:02:24.200 --> 0:02:27.880 see the SMP five hund are falling another ten percent. Well, 0:02:27.960 --> 0:02:31.320 many traders c the U S economy headed for recession. 0:02:31.440 --> 0:02:34.320 John the President of the United States, is not so sure. 0:02:34.440 --> 0:02:37.399 He answered the question at a press conference in Tokyo overnight. 0:02:37.680 --> 0:02:42.600 In your view, is a recession in the United States inevitable? No? 0:02:44.240 --> 0:02:46.799 Why not? Our GDPs are going to grow faster than 0:02:46.880 --> 0:02:50.280 China for the first time in forty years. How does 0:02:50.280 --> 0:02:53.160 that mean we don't have problems? We do. We have 0:02:53.240 --> 0:02:55.720 problems with the rest of the world has, but less 0:02:55.720 --> 0:02:57.960 consequential than the rest of the world has than because 0:02:58.000 --> 0:03:01.280 of our internal growth and trends. At the same press 0:03:01.280 --> 0:03:04.200 briefing in Tokyo, President Biden made headlines so announced that 0:03:04.240 --> 0:03:07.440 the US would defend Taiwan from a China attack. Are 0:03:07.480 --> 0:03:10.840 you willing to get involved militarily to defend Taiwan? If 0:03:10.880 --> 0:03:16.560 it comes to that, you are That's the commitment we made. 0:03:16.880 --> 0:03:20.360 President Biden also announced that a dozen Indo Pacific countries 0:03:20.400 --> 0:03:23.520 will join the US and a sweeping economic initiative designed 0:03:23.520 --> 0:03:27.040 to counter China's influence in the region. And earlier in 0:03:27.160 --> 0:03:29.840 his trip, during a stop in South Korea on Sunday, 0:03:29.840 --> 0:03:33.239 the President also address the growing concern over monkey pox 0:03:33.320 --> 0:03:37.160 cases around the world. Concern in the sense that were 0:03:37.240 --> 0:03:41.880 to spread this consequence, that's all they told. President Budden 0:03:41.880 --> 0:03:44.920 says he's speaking to advisors about monkey pots. The President's 0:03:45.000 --> 0:03:48.440 National Security Advisor, Jake Sullivan, says the U S has 0:03:48.560 --> 0:03:51.720 a relevant vaccine ready to be deployed to treat the 0:03:51.800 --> 0:03:54.920 disease if needed. Well. The U S monitors the monkey 0:03:54.920 --> 0:03:58.520 pods situation. John It is getting some relief this morning 0:03:58.560 --> 0:04:01.920 on the battle against the baby formula shortage, and we 0:04:01.960 --> 0:04:05.040 get the latest live from Bloomberg's Need a Young, Good 0:04:05.040 --> 0:04:08.080 Morning Radio, Good Morning Karen. A plainload of more than 0:04:08.200 --> 0:04:11.720 seventy thousand pounds of baby formula arrived in the US 0:04:11.840 --> 0:04:16.760 on Sunday. It's called Operation Fly Formula, an emergency program 0:04:16.800 --> 0:04:20.320 to alleviate a national shortage that's left some parents scrambling 0:04:20.360 --> 0:04:24.480 to feed their children. President Biden's top economic advisors says 0:04:24.720 --> 0:04:27.640 more formula will start arriving in stores as early as 0:04:27.680 --> 0:04:31.560 this week, and last week the President invoked emergency powers 0:04:31.600 --> 0:04:35.719 under the Defense Protection Act to spur domestic manufacturing of 0:04:35.839 --> 0:04:38.839 baby formula. Live in New York. I'm gonna need a 0:04:38.839 --> 0:04:42.400 young Bloomberg daybreak. Thanks for after a two year hiatus 0:04:42.440 --> 0:04:45.200 because of the pandemic, the annual World Economic form and 0:04:45.240 --> 0:04:48.760 DAMO Switzerland his back, but without the hype of years past, 0:04:49.279 --> 0:04:51.800 and our Tom Keane covering the event from both Bloomberg 0:04:51.880 --> 0:04:55.720 Radio and television. This will be a different Davos, There's 0:04:55.760 --> 0:04:58.840 no question about it. I think the major thing is 0:04:58.960 --> 0:05:02.720 the change of cal under not January but May, and 0:05:02.800 --> 0:05:05.360 much more. It will be compressed pretty much from four 0:05:05.440 --> 0:05:08.920 days down to three days. Travel schedules seem to be 0:05:09.160 --> 0:05:12.400 so tight for so many people attending. The war is 0:05:12.640 --> 0:05:16.200 absolutely front and center. There's no question about that. There 0:05:16.200 --> 0:05:19.839 will be some other themes, some ideas of risks as well, 0:05:20.279 --> 0:05:23.479 but the overarching theme besides the wars my colleague Paul 0:05:23.480 --> 0:05:27.160 Sweeney mentioned is the idea here of what do we 0:05:27.200 --> 0:05:31.760 do about inflation? And that will transcend the dialogue all 0:05:31.800 --> 0:05:34.919 the way, all the way through this uh three days 0:05:35.000 --> 0:05:38.320 in Davos thanks to Bloomberg's time came reporting from Dambo's 0:05:38.320 --> 0:05:41.359 beginning this morning along with Lisa branmo Wits on Bloomberg Savallas. 0:05:41.839 --> 0:05:44.000 Stay with us for that coming up at seven am 0:05:44.040 --> 0:05:47.600 All Street Time. And Christine Lagarde is one official who 0:05:47.640 --> 0:05:50.159 will be in Davos this week, John, But ahead of 0:05:50.160 --> 0:05:53.320 her appearance, the European Central Bank president is making some 0:05:53.400 --> 0:05:56.760 critical comments about cryptocurrencies that we had more from Bloomberg's 0:05:56.760 --> 0:05:59.159 Mariette today o in Brussels to give an it ToView 0:05:59.200 --> 0:06:01.160 to Dutch tele Vision, and she said that this thing 0:06:01.279 --> 0:06:04.479 is trash, it carries no value, and it's an investment 0:06:05.240 --> 0:06:07.640 vehicle for some to get very rich, but for other 0:06:07.800 --> 0:06:11.479 very naive people to lose potentially a lot of money. 0:06:11.480 --> 0:06:13.600 But of course you know this is a central banker. 0:06:13.800 --> 0:06:16.919 Bitcoin crypto, everything around it we know essentially tries to 0:06:17.000 --> 0:06:20.479 defy central bankers. So of course what the central banker 0:06:20.560 --> 0:06:22.240 was ahead of these to be good to say that 0:06:22.279 --> 0:06:24.600 it's trash and she doesn't believe in it. And Bloomer's 0:06:24.600 --> 0:06:28.880 Maria today, oh so far. Leguard's comments are not impacting cryptocurrencies. 0:06:28.960 --> 0:06:31.120 Checking Bitcoin right now it is up when in a 0:06:31.279 --> 0:06:34.200 third percent at thirty thousand, three hundred dollars, and we're 0:06:34.200 --> 0:06:37.720 seeing shares a vm Ware up up four and early trading. 0:06:37.720 --> 0:06:41.440 The clown Computing company in talks to be bought by Broadcomp. 0:06:41.760 --> 0:06:46.000 Details from Bloomberg's Doug Prisner. Vm Ware, based in Palo Alto, 0:06:46.160 --> 0:06:49.760 makes virtualization software. It allows a small number of servers 0:06:49.800 --> 0:06:52.560 to do more by enabling each to handle more than 0:06:52.600 --> 0:06:56.039 one program. Broadcom is a Singapore based giant in the 0:06:56.080 --> 0:07:00.760 semiconductor industry. A deal would help it diversified beyond Pewter chips. 0:07:01.160 --> 0:07:03.760 Vm Ware has a market cap of around forty billion 0:07:03.800 --> 0:07:07.800 dollars so far this year. It shares her down in 0:07:07.839 --> 0:07:10.560 New York. I'm Dad Chrisner, Bloomberg Daybreak, All right, thanks Doug, 0:07:10.800 --> 0:07:15.480 right now, dall futures up one points, SMP futures of seventeen, 0:07:15.520 --> 0:07:23.920 the nasday futures of seven. This is daybreak. That's five 0:07:23.960 --> 0:07:26.240 o seven on Wall Street. Time to break in Michael 0:07:26.320 --> 0:07:29.200 Barr with Laura. What else is going on in New York, 0:07:29.280 --> 0:07:32.160 end around the world? John, Thank you very much, Sir, 0:07:32.280 --> 0:07:35.560 An unidentified gunman has shot and killed another passenger on 0:07:35.600 --> 0:07:39.280 a moving New York City subway train. Police officials say 0:07:39.320 --> 0:07:42.120 it appears to have been an unprovoked attack and the 0:07:42.200 --> 0:07:45.320 victim for the eight year old man died in the hospital. 0:07:45.680 --> 0:07:48.560 In my p D Chief of Department Kenneth Corey. At 0:07:48.560 --> 0:07:52.440 this time, there are no arrests. The suspect is described 0:07:52.480 --> 0:07:55.280 as a dark skinned male who is heavy set with 0:07:55.320 --> 0:07:58.840 a beard. Police say the shooting took place yesterday on 0:07:58.880 --> 0:08:02.520 a Q train traveling over the Manhattan Bridge at around 0:08:02.520 --> 0:08:05.880 eleven forty a m. That's the time of day when 0:08:05.920 --> 0:08:09.560 subway cars are often filled with families, tourists, and people 0:08:09.600 --> 0:08:13.160 headed a brunch. Recent subway crime has set New Yorkers 0:08:13.160 --> 0:08:16.200 on edge. Last month, a man opened fire inside a 0:08:16.240 --> 0:08:20.000 Brooklyn subway trains, scattering random shots that wounded ten people. 0:08:20.600 --> 0:08:24.760 Japanese Prime Minister Fumio Kashita told President Joe Biden that 0:08:24.880 --> 0:08:28.560 Russia's aggression cannot be tolerated. The two leaders met in 0:08:28.600 --> 0:08:32.760 Tokyo to discuss regional security and economic cooperation. Speaking through 0:08:32.760 --> 0:08:49.040 a translator, Prime Minister Kashita. Prime Minister Kashida's comments come 0:08:49.120 --> 0:08:52.160 as a United Nations agencies said the war in Ukraine 0:08:52.440 --> 0:08:55.520 has displaced more than a hundred million people from their homes. 0:08:56.040 --> 0:08:58.840 Ukraine's president says up to one hundred of its soldiers 0:08:58.880 --> 0:09:02.800 die every day in battle. Republican Congresswoman Liz Cheney of 0:09:02.800 --> 0:09:06.079 Wyoming was one of five individuals last night to receive 0:09:06.120 --> 0:09:10.200 the two John F. Kennedy Profile and Courage Award. In 0:09:10.320 --> 0:09:13.800 her live streamed a substance speech, Cheney, who serves on 0:09:13.840 --> 0:09:17.760 the Special Committee investigating the January six Capital Riots, spoke 0:09:17.760 --> 0:09:21.280 about the continuous threat to democracy. We face a threat 0:09:21.360 --> 0:09:25.960 we have never faced before, a former president attempting to 0:09:26.120 --> 0:09:30.560 unravel our constitutional republic. The award was also handed to 0:09:30.679 --> 0:09:35.120 Ukrainian President Zalinski and three US officials defending the integrity 0:09:35.160 --> 0:09:39.480 of the presidential election. Global News twenty four hours a 0:09:39.559 --> 0:09:42.600 day on air and on Bloomberg Quicktake, powered by more 0:09:42.880 --> 0:09:45.760 than twenty hundred journalists and analyst more than a hundred 0:09:45.760 --> 0:09:49.640 twenty countries. Michael Barron, this is Bloomberg, John Michael, thank you, 0:09:53.400 --> 0:09:55.400 and it's now find Tim. I'm wall Street this time 0:09:55.400 --> 0:09:59.440 for the Bloomberg Sports Update. Here's Scott Sidenberg. Good morning, Johnny. 0:09:59.480 --> 0:10:02.160 Gorcious Jerkin made forty three saves me because even a 0:10:02.280 --> 0:10:04.560 Jet had a goal and an assist as the Rangers 0:10:04.559 --> 0:10:07.560 beat the Hurricanes three one at the Garden yesterday. Chris 0:10:07.640 --> 0:10:10.160 Critter and Tyler Mott also scored as the Blue Shirts 0:10:10.200 --> 0:10:13.080 to fand home ice now trail two games to one. 0:10:13.240 --> 0:10:16.720 Here's head coach Gerard glen Gower play goal. That's how 0:10:16.720 --> 0:10:18.319 you went hockey games in tight games. So it was 0:10:18.360 --> 0:10:21.600 the battle type battle again tonight. They obviously ego ego 0:10:21.720 --> 0:10:23.760 with an outstanding bust and that was the key. It 0:10:23.880 --> 0:10:26.160 was just the second win for the Blue Shirts over 0:10:26.240 --> 0:10:29.760 Carolina in their last ten meetings Game four at the 0:10:29.800 --> 0:10:32.920 Garden Tomorrow night Baseball, the Yankees dropped both games of 0:10:32.920 --> 0:10:35.520 a double header to the White Sox three one innit 0:10:35.520 --> 0:10:39.560 game one and a five nothing shutout lost in Game two. 0:10:40.000 --> 0:10:42.640 The Mets meanwild blank the Rockies to nothings. I want 0:10:42.679 --> 0:10:46.600 Walker through seven scoreless innings. NBA Playoffs, the Warriors taken 0:10:46.600 --> 0:10:48.880 commanding three oh series lead over the Mavericks with a 0:10:48.920 --> 0:10:52.640 one on nine win. Golf was an exciting finish at 0:10:52.679 --> 0:10:56.720 the PGA Championship yesterday, and Justin Thomas is walking around 0:10:56.760 --> 0:11:00.600 for the quick top and he's got it. Two time 0:11:00.720 --> 0:11:05.480 major winner of the PGA Championship, Justice Toddis he's your 0:11:05.880 --> 0:11:09.400 hundred four p g A champion here at Southern Hills 0:11:09.400 --> 0:11:13.160 and puls Oklahoma. The call is heard right here on 0:11:13.160 --> 0:11:17.520 Bloomberg Radio. Justin Thomas winning his second one or Maker 0:11:17.559 --> 0:11:22.520 Trophy outlasting Will's Allatorus in a three whole playoff. I'm 0:11:22.559 --> 0:11:27.160 Scott said, urged with Bloomberg Sports. Nathan all right, thanks Scott, 0:11:27.320 --> 0:11:29.720 and ahead of the cash open on Wall Street, we 0:11:29.760 --> 0:11:33.160 have town futures right now off on twenty seven points, 0:11:33.640 --> 0:11:37.280 SMB futures up twenty points, that's about half percent, and 0:11:37.400 --> 0:11:40.400 the ends A futures right now fifty eight points higher. 0:11:40.920 --> 0:11:44.240 As far as treasuries, the benchmark ten year yields to 0:11:44.679 --> 0:11:48.959 eighty one right now, and the vis Wall Streets fear gage, 0:11:49.000 --> 0:11:53.120 the volatility index slightly elevated this morning, right now at 0:11:53.200 --> 0:11:56.880 twenty sixty. As looking at the euro one O six 0:11:57.000 --> 0:12:01.000 fifty eight, that is up slightly against the dollar. You're 0:12:01.040 --> 0:12:09.400 listening the Bloomberg tay break and just ahead, have stocks 0:12:09.600 --> 0:12:11.880 hit the bottom? Where do we go from here? We'll 0:12:11.880 --> 0:12:16.079 put those questions to economist Dennis Gartman. That's straight ahead 0:12:16.120 --> 0:12:24.760 on Bloomberg Tay break markets, headlines and breaking news twenty 0:12:24.760 --> 0:12:27.600 four hours a day at Bloomberg dot com. The Bloomberg 0:12:27.640 --> 0:12:31.679 Business Outland at Bloomberg Quick Tape is a Bloomberg Business 0:12:31.720 --> 0:12:40.160 Flash and I'm Karen Moscow. Songs in the You Wanna 0:12:40.160 --> 0:12:43.840 are advancing after President Joe Biden said Shina tariffs imposed 0:12:43.840 --> 0:12:46.960 by the Trump administration were under consideration. The dollar and 0:12:47.040 --> 0:12:50.200 treasuries are retreating. We checked the markets every fifteen minutes 0:12:50.240 --> 0:12:53.000 throughout the trading day on Bloomberg S and P futures 0:12:53.040 --> 0:12:56.160 up eighteen points down, futures up a hundred fourteen NASDAG 0:12:56.200 --> 0:12:59.000 futures up fifty two The decks in Germany's up four 0:12:59.040 --> 0:13:02.160 tenths of upper ten year treasury down nine thirty seconds, 0:13:02.200 --> 0:13:04.719 yield two point eight one percent, yield on the two 0:13:04.800 --> 0:13:07.880 year two point six zero percent. Nimex Screwede oil is 0:13:07.960 --> 0:13:09.840 up nine ten percent or a dollar one at a 0:13:09.880 --> 0:13:13.040 hundred eleven dollars thirty two cents of arrol Comics gold 0:13:13.160 --> 0:13:15.640 is up more than one percent, or nineteen dollar sixty 0:13:15.640 --> 0:13:18.680 cents at eighteen sixty eight announced. The euro one point 0:13:18.679 --> 0:13:21.120 oh six seven seven against the dollar. British pound one 0:13:21.160 --> 0:13:24.520 point eight seven and the units at one seven point 0:13:24.559 --> 0:13:27.720 four six Bitcoin is higher, up one point three percent 0:13:27.760 --> 0:13:31.400 at thirty thousand, three hundred dollars. That's a Bloomberg business flash. 0:13:31.400 --> 0:13:33.520 Now here's Michael Barr with more on what's going on 0:13:33.559 --> 0:13:36.680 around the world. Michael, good morning, Good morning Karen. President 0:13:36.760 --> 0:13:39.520 Joe Biden sent the U. S Military would intervene to 0:13:39.600 --> 0:13:43.600 defend Taiwan in any attack from China in Tokyo. Biden 0:13:43.679 --> 0:13:47.480 says such a move would dislocate the entire region, be 0:13:47.760 --> 0:13:50.600 an action similar to what Russia has done in Ukraine. 0:13:50.960 --> 0:13:55.360 A military plane carrying enough specialty infant formula for more 0:13:55.559 --> 0:13:59.880 than a half a million baby bottles arrived yesterday in Indianapolis. 0:14:00.160 --> 0:14:02.920 It is the first of several flights expected from Europe, 0:14:02.920 --> 0:14:06.720 aim that we're leaving a formulas shortage. In the NHL playoffs, 0:14:06.720 --> 0:14:09.679 the Rangers beat the Hurricanes three one. Carolina still leads 0:14:09.720 --> 0:14:13.000 that series two games to one. In the NBA playoffs, 0:14:13.000 --> 0:14:15.280 the Warriors beat the Mavericks one on nine one hundred 0:14:15.440 --> 0:14:19.040 to leave the Western Conference Finals three games to zip. Baseball, 0:14:19.160 --> 0:14:21.560 the Yankees lost a double header to the White Sox. 0:14:21.760 --> 0:14:24.600 The MAT's Red Sox Orioles and Nationals won the Giants 0:14:24.600 --> 0:14:27.640 and A's lost. Global News twenty four hours a day 0:14:27.720 --> 0:14:30.760 on air and on Bloomberg Quick Tank, powered by more 0:14:30.840 --> 0:14:34.440 than twenty seven hundred journalists and analysts more than twenty countries. 0:14:34.800 --> 0:14:37.480 Michael Barr, this is Bloomberg, John, Michael, thank you five 0:14:37.600 --> 0:14:40.000 twenty on Wall Street. We are lying for the Bloomberg 0:14:40.040 --> 0:14:44.200 in Tryant Broker Studios. This is Bloomberg Daybreak. Stocks on 0:14:44.360 --> 0:14:47.520 Friday avoided the official bear market label at least the 0:14:47.600 --> 0:14:50.640 SMP five hundred. But what is next. Let's get you 0:14:50.720 --> 0:14:53.360 set up for the trading day ahead with economist Dennis 0:14:53.400 --> 0:14:56.880 Garp and chair of the University of Akron's in Dama. 0:14:57.520 --> 0:15:01.240 Dennis always a pleasure happy Monday. Are we you rebalancing 0:15:01.520 --> 0:15:06.280 back to pre pandemic levels or is something else going on? John? 0:15:06.320 --> 0:15:08.440 I think actually been a bear market for quite some 0:15:08.520 --> 0:15:11.440 period of time. I find it amusing that everybody wants 0:15:11.440 --> 0:15:12.960 to think that you don't owner a bear market U 0:15:12.960 --> 0:15:16.000 till you're down. I have always gone on the end 0:15:16.120 --> 0:15:18.240 of the auspice of the or the notion that anything 0:15:18.320 --> 0:15:22.000 under seven percent is a bear market territory. Uh and 0:15:22.240 --> 0:15:24.200 and you have to be more defensive once we once 0:15:24.240 --> 0:15:27.800 we take things down, seven is pretty far down before 0:15:27.840 --> 0:15:30.840 you start to become bearish. I think the bear market 0:15:30.880 --> 0:15:34.480 started December, actually January, and as the chairman of the 0:15:34.520 --> 0:15:37.720 University of Ackrons in Downland, I I pushed us hard 0:15:38.240 --> 0:15:40.400 and actually got us to move a twelve percent of 0:15:40.400 --> 0:15:45.200 our portfolio out on December thirty one last year, going 0:15:45.240 --> 0:15:47.440 to the sidelines and owning two year and four year 0:15:47.480 --> 0:15:50.480 and five year treasury securities instead. And as I like 0:15:50.560 --> 0:15:52.480 to say, in a bear market, he or she who 0:15:52.480 --> 0:15:56.160 loses the least is the winner. And we saved though 0:15:56.480 --> 0:15:59.560 call it what what are we down? That almost in 0:15:59.560 --> 0:16:04.200 the essence he almost in the nastac one, So we 0:16:04.320 --> 0:16:09.480 saved call it sevent one of the portfolio. We're doing 0:16:09.480 --> 0:16:11.840 a lot better than other people are. So I think 0:16:11.880 --> 0:16:13.760 you have to understand that this is a bear market. 0:16:13.760 --> 0:16:16.840 The FETE is taking away the fuel that had sponsored 0:16:16.840 --> 0:16:18.800 the bull market for such a long period of time. 0:16:19.640 --> 0:16:21.520 As the FETE added to its balance sheet, is the 0:16:21.520 --> 0:16:23.880 FET is now beginning to subtract from its balance sheet. 0:16:24.320 --> 0:16:26.840 It's going to take years before it gets the balance 0:16:26.840 --> 0:16:30.120 sheet back to something more amenable. We've we've taken the 0:16:30.120 --> 0:16:32.680 balance sheet from what nine billion to nine trillion in 0:16:32.720 --> 0:16:36.920 the course of a decade. Taking taking away dollars a 0:16:36.920 --> 0:16:40.040 month for the next several years is going to is 0:16:40.360 --> 0:16:43.880 going to weaken the stock market for a protracted period 0:16:43.920 --> 0:16:45.400 of time. So I think it's a bear market, and 0:16:45.400 --> 0:16:47.480 I think people have to understand that fact, and I 0:16:47.560 --> 0:16:50.640 think people need to adjust their trading perspectives and adjust 0:16:50.680 --> 0:16:54.800 their investment perspectives accordingly. Well, when does dip by become 0:16:54.840 --> 0:16:58.080 a viable strategy? Not for a long period of time 0:16:58.080 --> 0:17:01.880 into the future. I think alley selling is the viable strategy. 0:17:01.880 --> 0:17:04.680 Buying the dip was a nice strategy for almost a decade, 0:17:05.000 --> 0:17:06.960 but I think that that's behind us now. I think 0:17:07.000 --> 0:17:09.040 buying the dip is an ill advised decision. I think 0:17:09.040 --> 0:17:12.439 selling rallies is the advised decision, and I think that 0:17:12.440 --> 0:17:14.359 that's going to maintain for a long period of time. 0:17:15.000 --> 0:17:17.720 We We've had a good solid bounce from Friday's low 0:17:18.600 --> 0:17:21.800 until in the futures market, until the highs made last night. 0:17:21.840 --> 0:17:24.600 I think that those highs made last night maybe taken 0:17:24.600 --> 0:17:28.479 out when we opened for trading in reality at at 0:17:28.560 --> 0:17:30.840 nine dirty this morning. But I think that what we 0:17:30.880 --> 0:17:32.760 what we need to understand is the rallies have been 0:17:32.800 --> 0:17:37.640 on very unlimited volume, that been on aggressive volume, and 0:17:38.000 --> 0:17:40.080 that's I think that's the hallmark of a bear market. 0:17:40.160 --> 0:17:43.080 So I think selling rallies the is the proper course 0:17:43.119 --> 0:17:46.160 of action. Buying dips was the proper course of action, 0:17:46.320 --> 0:17:48.399 it is no longer the proper course of action. You 0:17:48.520 --> 0:17:52.359 mentioned treasuries. Is cash a better alternative at this point 0:17:53.440 --> 0:17:56.160 when stocks are down? Cash is not a bad place 0:17:56.200 --> 0:17:58.480 to be. Uh And and as I said that the 0:17:58.520 --> 0:18:00.840 University of Acron we've gone to two year, three year, 0:18:00.880 --> 0:18:03.600 four year, five year treasury notes, which I consider to 0:18:03.600 --> 0:18:07.760 be essentially cash. Cash holding cash is a is a 0:18:07.840 --> 0:18:10.000 great place to be. In my own portfolio, I've got 0:18:10.040 --> 0:18:13.439 about twenty cash and the only major positions I have 0:18:13.520 --> 0:18:17.400 are in gold and coude oil and commodities. It's been 0:18:17.600 --> 0:18:19.919 I've had a nice period of time here for myself 0:18:19.920 --> 0:18:22.360 for the last several weeks, and I'm going to continue. 0:18:22.440 --> 0:18:24.760 So cash is I think the upper course of action, 0:18:25.240 --> 0:18:27.919 or at least a good course of action, where for 0:18:27.920 --> 0:18:31.080 the past decade it hasn't been. Now it is. I 0:18:31.080 --> 0:18:34.639 would imagine growth is really really off the table for 0:18:34.720 --> 0:18:38.400 you at this point. Growth has been off the table. 0:18:38.480 --> 0:18:41.000 Growth will remain off the table, and the growth it 0:18:41.040 --> 0:18:42.480 is probably not going to be on the table for 0:18:42.520 --> 0:18:45.520 at least another six months, maybe a year more. Uh. 0:18:45.720 --> 0:18:48.280 The damage that has been wrought in the growth of 0:18:48.600 --> 0:18:51.960 portfolios of the of the country by in in in 0:18:51.960 --> 0:18:54.840 in individual accounts has been extraordinary, and I think that 0:18:54.960 --> 0:18:57.840 damage is going to get warm, not better. So again, 0:18:58.040 --> 0:19:00.680 I think buying the dip is not the course of action. 0:19:00.760 --> 0:19:02.960 Selling the rally is the proper course of action. Getting 0:19:03.040 --> 0:19:05.560 less long is the proper way to be. I hate 0:19:05.560 --> 0:19:08.800 to say that much more fun having bull markets. The 0:19:08.840 --> 0:19:11.119 women are prettier, the clothing is nicer, to the music 0:19:11.240 --> 0:19:14.359 is is pleasant to dance is lovely. And in the 0:19:14.359 --> 0:19:18.080 bear markets music becomes a tonal and people become ugly 0:19:18.080 --> 0:19:20.479 and nasty. And I'd much prefer a bowl market. But 0:19:20.640 --> 0:19:22.400 and I hate to be bearish, but I think that's 0:19:22.440 --> 0:19:26.800 the proper course, never nasty or ugly. Dennis Garman, Dennis, 0:19:26.840 --> 0:19:29.439 you're actually gonna come back if he would, uh in 0:19:29.520 --> 0:19:32.360 the next half hour to continue our conversation. Maybe we'll 0:19:32.400 --> 0:19:35.240 pick up the commodities at that point. Account of as 0:19:35.320 --> 0:19:38.399 Dennis Gartment appreciate that and ahead of the cash of 0:19:38.480 --> 0:19:41.399 them on Wall Street right now futures in the green, 0:19:41.480 --> 0:19:44.680 the down futures of one and thirty seven points, that's 0:19:44.720 --> 0:19:47.480 a rise of four tenths of a percent, the SMP 0:19:47.600 --> 0:19:50.960 five futures of twenty one points a rise of half 0:19:50.960 --> 0:19:54.720 a percent, and the futures right now fifty nine points higher. 0:19:54.760 --> 0:19:58.800 That's up half a percent. Dennis mentioned treasuries the benchmark 0:19:58.920 --> 0:20:02.000 ten year yield two eighty one of three basis points. 0:20:02.440 --> 0:20:07.840 You're listening to Bloomberg day Break out of Bloomberg Weather 0:20:07.880 --> 0:20:11.680 for Rob Carolin. Partly sunny, cooler today and a lot 0:20:11.760 --> 0:20:14.320 less hum of the heights amperture topic out at about 0:20:14.400 --> 0:20:18.520 seventy five cloudy tonight blows fifty five to sixty degrees. 0:20:21.960 --> 0:20:26.480 Broadcasting wide from the Bloomberg Interactive Broker Studio in New York, 0:20:26.600 --> 0:20:31.280 Bloomberg E Living Free to Washington, d C, Bloomberg to Boston, 0:20:31.359 --> 0:20:34.800 Bloomberg one O six one, to San Francisco, Bloomberg nine 0:20:34.840 --> 0:20:37.920 sixteen to the country Sirius XM D A one nineteen 0:20:38.040 --> 0:20:41.200 and around the globe the Bloomberg Business app and Bloomberg 0:20:41.280 --> 0:20:50.640 Radio dot Com. This is Bloomberg day Break. It's five 0:20:50.720 --> 0:20:53.240 thirty on Wall Street. Good morning, I'm John Tucker and 0:20:53.280 --> 0:20:56.360 I'm Karen Moscow. We're just about four hours away from 0:20:56.400 --> 0:20:58.200 the open of US trading. Let's get you have to 0:20:58.240 --> 0:20:59.639 date on the news. You need to know what this 0:20:59.680 --> 0:21:03.120 show were with futures higher amid expectations traders will help 0:21:03.160 --> 0:21:06.080 lift the S and P five after a touch bearer 0:21:06.119 --> 0:21:09.840 market Territory Friday. Despite talks of a US recession, Credit 0:21:09.880 --> 0:21:13.560 Sweet CEO Thomas scotch Stein said he doesn't see what happening. 0:21:13.920 --> 0:21:18.560 People are someone insecured in risk off mode. But our house, 0:21:18.600 --> 0:21:20.800 he was still, is that there won't be a recession 0:21:21.040 --> 0:21:23.000 neither this year the next year. There won't be slowed 0:21:23.040 --> 0:21:26.480 down Credit See CEO Thomas Gonstein was speaking in Davos 0:21:26.520 --> 0:21:30.200 with Bloomberg's Francie Lagua. Behind Weldavos World Economic Forum is 0:21:30.280 --> 0:21:33.439 bank this year tuned into Bloomberg Television and Radio for 0:21:33.480 --> 0:21:36.720 full coverage this week. Karen Stocks also jumped this morning 0:21:36.720 --> 0:21:39.840 after President but they indicated China tariffs imposed by the 0:21:39.880 --> 0:21:44.480 Trump administration or under consideration. Speaking in Tokyo, the presidents 0:21:44.480 --> 0:21:47.119 that he believes the US will avoid a recession. He 0:21:47.200 --> 0:21:51.320 also declared the U S would defend Taiwan. Should China attack. 0:21:52.240 --> 0:21:55.199 My expectation is it will not happen, it will not 0:21:55.240 --> 0:21:58.640 be attempted. My expectation is a lot of it depends 0:21:58.720 --> 0:22:03.600 upon just how strong in the world makes clear that 0:22:03.720 --> 0:22:06.760 that kind of action is going to result in long 0:22:06.880 --> 0:22:11.080 term disapprobation by the rest of the community. President Biden 0:22:11.080 --> 0:22:14.119 also announced that a dozen Into Pacific countries will join 0:22:14.200 --> 0:22:17.640 the US and an economic initiative designed to counter China's 0:22:17.720 --> 0:22:20.680 influence in the region. Well before boarding Air Force One 0:22:20.720 --> 0:22:23.639 in South Korea yesterday, John the President addressed the growing 0:22:23.680 --> 0:22:28.080 monkey pox outbreak. Well, heaven't told me the level of 0:22:28.119 --> 0:22:31.000 exposure yet, but it is something that everybody should be 0:22:31.000 --> 0:22:34.199 concerned about. We're working out of art figure out what 0:22:34.240 --> 0:22:37.400 we do. President Biden said he spoke to advisors about 0:22:37.400 --> 0:22:41.320 the monkeypox virus and while the US monitors monkey pox 0:22:41.480 --> 0:22:44.320 is getting relief on the battle against the baby formula 0:22:44.400 --> 0:22:47.040 shortage and Bloomberg's we need a young joins this life 0:22:47.040 --> 0:22:49.240 with more. We need a good morning, Good morning John. 0:22:49.280 --> 0:22:52.359 A plainload of more than seventy thousand pounds of baby 0:22:52.359 --> 0:22:55.960 formula arrived in the U S Sunday. It's called Operation 0:22:56.080 --> 0:23:00.000 Fly formula, an emergency program to alleviate a national shortage 0:23:00.119 --> 0:23:03.800