Speaker 1: This is Bloomberg Daybreak Asia for this Monday, February in
Speaker 1: Hong Kong, Wednesday February twelve in New York, and coming
Speaker 1: up today. US consumer prices are projected to pick up
Speaker 1: in January. Sent A majority leader Chuck Schumer says the
Speaker 1: US should look at banning TikTok in the United States.
Speaker 1: Economist Kazo Huaida maybe the next bo j governor, as
Speaker 1: leading candidate Massa Yoshi Amamiya refuses to take the role.
Speaker 1: An unidentified object has reportedly been shot down over Lake Huron,
Speaker 1: China is reportedly getting ready to take down an unidentified
Speaker 1: object flying over Changdao. Turkey broadens its investigation into contractors
Speaker 1: I America HRST wits with Global News. We'll keep you
Speaker 1: up today on Super Bowl fifty seven and the latest
Speaker 1: from the Pitch. I'm Pete Fox. Those stories and more
Speaker 1: coming up in Bloomberg Sports. That's all straight Ahead on
Speaker 1: Bloomberg Daybreak Asia on Bloomberg eleven and three on New York,
Speaker 1: Bloomberg Washington, d See Bloomberg one six one, Boston, Bloomberg
Speaker 1: nine sixties, San Francisco, Syrius x M one nineteen and
Speaker 1: around the World on Bloomberg Radio dot Com and via
Speaker 1: the Bloomberg Business app. Good morning, I'm Dud Prisoner and
Speaker 1: I'm Brian Curtis Hero. The stories were following today, Japanese
Speaker 1: Prime Minister Fumio Kishida seems to have chosen an outsider
Speaker 1: as the next governor at the Bank of Japan. We're
Speaker 1: told economist and former BOJ board member Casual Ueda is
Speaker 1: sent to be nominated tomorrow our time, Earlier than Nick
Speaker 1: had reported that the leading candidate, Deputy Governor Masayoshi Alma Mia,
Speaker 1: had refused to take the post house Bloomberg's Kathleen Hayes
Speaker 1: right now, you kind of have to guess, is he
Speaker 1: going to be more hawkish as that why they he's
Speaker 1: taking over instead of someone else, or is he going
Speaker 1: to be dubbish. When he was approached by reporters just
Speaker 1: in the last couple of days, he said the current
Speaker 1: policy is appropriate, I read it too down on monetary
Speaker 1: easy needs to be can teeded at this point. He
Speaker 1: has also said policy review should be done at some point.
Speaker 1: He also has said recently in an article that the
Speaker 1: d o J is far from achieving two percent inflation
Speaker 1: that sustainable and rate height to avoid a week again
Speaker 1: would just lead the econom deterioration. The end initially rose
Speaker 1: to the strong side of one thirty against the dollar
Speaker 1: on media reports of Uwaita's selection, markets viewed him as
Speaker 1: more hawkish than Almo Mia, but those gains were trimmed
Speaker 1: after Huwaita said that the b o J stimulus should
Speaker 1: stay in place. We've got a lot more for markets
Speaker 1: to digest in the coming week, including the latest readings
Speaker 1: on US inflation. We have more from Bloomberg, sas Anna Palmer.
Speaker 1: The Consumer Prize Index comes out on Tuesday, with economists
Speaker 1: predicting the prices of goods and services likely rose last month,
Speaker 1: a development that would point to Federal Reserve policymakers needing
Speaker 1: to do more to lower inflation. Economists surveyed by Bloomberg
Speaker 1: are forecasting the CPI will have increased by a half
Speaker 1: percent month over month in Jail Nuary, and the core
Speaker 1: CPI excluding food and energy rose four tenths of one percent.
Speaker 1: While the monthly cp I figure likely rose in January,
Speaker 1: the annual headline number is projected to have come down
Speaker 1: to six point two from six and a half percent
Speaker 1: the prior month. Susanna Palmer Bloomberg Daybreak Asia. And beyond
Speaker 1: the inflation data, there'll be an abundance of earnings to
Speaker 1: sift through. We have a preview from Bloomberg's Charlie Pellett.
Speaker 1: We'll be hearing from companies over a wide range of
Speaker 1: industries amid anxiety over rising interest rates and inflation. Emily
Speaker 1: Rowland is co chief investment strategist at JGE Investments. We
Speaker 1: think this is going to be a top environment for
Speaker 1: companies going forward. Costs or elevated, especially the cost of
Speaker 1: capital having risen, a lot that is yet to be absorbed,
Speaker 1: and top line growth slowing meaningfully. Is consumers start to
Speaker 1: retrench companies have too much stuff. We think there's going
Speaker 1: to be a major war on margins. Among the company's
Speaker 1: reporting this week Airbnb, Analog Devices, a i G, Applied Material,
Speaker 1: Cisco Systems, Coca Cola, and Zillo in New York, Charlie Pellett,
Speaker 1: Bloomberg Daybreak Asia. Senate lawmakers have revived legislation to band
Speaker 1: TikTok in the US. The concern is over data collected
Speaker 1: by this app ending up in the hands of the
Speaker 1: Chinese Communist Party. Now a similar measure failed in the
Speaker 1: last Congress. This latest move is likely to prompt opposition
Speaker 1: not only from the tech lobby, but millions of mostly
Speaker 1: young users on this platform. Here is Senate Majority Leader
Speaker 1: Chuck Schumer. It's something that should be looked at. We
Speaker 1: do know there's Chinese ownership of the company that owns TikTok,
Speaker 1: and so there are some people in the Commerce Committee
Speaker 1: that are looking into that right now. We'll see, We'll
Speaker 1: see where they come out. Senate Majority Leader Chuck Schumer
Speaker 1: on ABC's This Week. Heard earlier here on Bloomberg Radio.
Speaker 1: By the way, the CEO of TikTok, Shall Ze Chew,
Speaker 1: is especially or he is due to appear, I should say,
Speaker 1: before the House Energy and Commerce Committee on March. Bill
Speaker 1: Ackman's Pershing Square Holdings is said to be considering a
Speaker 1: possible listing in New York. Currently, the company trades in
Speaker 1: London and Amsterdam. By listening in the United States, it
Speaker 1: would allow Pershing to market shares directly to American investors.
Speaker 1: The Sunday Times reports the move could help Pershing close
Speaker 1: the discount at which it shares trade compared to its
Speaker 1: net assets. Ackman had also floated this idea last summer
Speaker 1: of Pershing listening. In the United States, we have Walter
Speaker 1: Todd coming up in a few moments, president and chief
Speaker 1: investment officer and managing director at Greenwood Capital, and among
Speaker 1: the things we might be talking about, Doug is interesting
Speaker 1: here to see UH an outsider possibly taking the helm
Speaker 1: at the Bank of Japan, and if not really hawkish,
Speaker 1: maybe a hawkish tilt is still in the guards. Clearly
Speaker 1: an academic, former Treasury Secretary Larry Summers was telling our
Speaker 1: David Western on a Bloomberg Wall Street week that he
Speaker 1: is very much Japan's ben Burnanke. So as the b
Speaker 1: o J looks for a way to unwind this ultra
Speaker 1: easy monetary policy that it has had now for decades,
Speaker 1: maybe he's the guy to do it. Yeah, And looking
Speaker 1: at inflation in the United States, because everybody in the
Speaker 1: world over is really thinking about inflation these days, even
Speaker 1: there in in Tokyo. But I was amazed to see
Speaker 1: that black Rock sees the pace of inflation hovering around
Speaker 1: three and a half percent for the next five years.
Speaker 1: And you remember how I responded or reacted to John
Speaker 1: Williams comment last week that that the Fed needed to
Speaker 1: get about five percent and keep it up there for
Speaker 1: years maybe he said a few years I thought he
Speaker 1: would be scolded by the Chair of the Fed, and
Speaker 1: he may well have, but we don't know. Well. Pat
Speaker 1: Harker was saying on Friday that the key rate, the
Speaker 1: Fed funds rate, needs to get above five percent and
Speaker 1: stay there, stay there. So I think they realize that
Speaker 1: it's going to take a lot to get price pressures
Speaker 1: under control. And to this point, Alliance Burnt Bernstein makes
Speaker 1: this point that although inflation is moderating, that investors shouldn't
Speaker 1: be betting on that. They are underestimating the structural changes
Speaker 1: that we have seen to higher levels inflation that are
Speaker 1: sticky changes brought by deglobalization and labor shortages. And black
Speaker 1: Rock and Pimco also say it's no time to ditch
Speaker 1: inflation linked debt, particularly in the services sector of the economy.
Speaker 1: And look, I'm before I let you go. H New
Speaker 1: Zealand's permanent UH Services Index, I'm sorry, that's performance Services
Speaker 1: Index was up in the month of January to a
Speaker 1: reading of fifty four five, much hotter than forecast. So
Speaker 1: it just underscores the strength of the services economy. Alright,
Speaker 1: it's nine minute minutes past the hour. It's time for
Speaker 1: Global news. Another unidentified object shot down today, we get
Speaker 1: to the Bloomberg New News room in Erica. Perskuitz, Erica, Brian.
Speaker 1: It was shot down under over Lake Huron, I should
Speaker 1: say in Michigan. This time. The Pentagon used an F
Speaker 1: sixteen Fighter but took down the object with a sidewinder
Speaker 1: air to air missile, the same missile used on the
Speaker 1: other three objects that were also shot down this month.
Speaker 1: The f A a closed airspace over parts of Lake
Speaker 1: Michigan Sunday, sighting National Defense. It's the third object to
Speaker 1: be shot down over North America this weekend. The first
Speaker 1: was down over Alaska Friday, the second taken down over
Speaker 1: Canada Sunday, and the White House says it is too
Speaker 1: early to say what the latest objects shot down were. However,
Speaker 1: Senate Majority Leader Chuck Schumer says they are believed to
Speaker 1: have also been high altitude balloons appearing on CBS's face
Speaker 1: the Nation. Montana's Senator John Tester says there's even a
Speaker 1: possibility of another object flying over Montana's airspace. There was
Speaker 1: an anomaly and they've investigated. I think it got dark
Speaker 1: so they couldn't fully check it out. Tester said, it
Speaker 1: could be a false alarm. Airspace over the central part
Speaker 1: of the state was temporarily Saturday, while Norad sent military
Speaker 1: aircraft to investigate. However, they were unable to find anything. Meanwhile,
Speaker 1: according to reports, China is getting ready to take down
Speaker 1: an unidentified object flying over waters near the port city
Speaker 1: of ching Dao, which is home to a major naval
Speaker 1: base for the People's Liberation Army. This according to Chinese
Speaker 1: news outlet. The paper no word on what the object is.
Speaker 1: The naval base hosts both ballistic and nuclear attack submarines
Speaker 1: and is the command headquarter of the country's North Sea Fleet.
Speaker 1: Turkey is widening its investigation into contractors as the earthquake
Speaker 1: death toll rises. So far, more than thirty three thousand
Speaker 1: people have died in Turkey and Syria as a result
Speaker 1: of last week's devastating quake. At Turkish President Air Duan
Speaker 1: is being accused of pushing through allowing property owners to
Speaker 1: have construction violations forgiven without bringing their buildings up to code,
Speaker 1: a move that seemed to have appealed to voters on
Speaker 1: his two thousand nineteen campaign trail. The Turkish government has
Speaker 1: has responded by arresting building contractors and others with ties
Speaker 1: to collapse buildings, and the Justice Ministry has set up
Speaker 1: investigation bureaus for earthquake crimes across the affected area. G
Speaker 1: seven foreign ministers are preparing to meet in Munich as
Speaker 1: Russia's military actions against eastern Ukraine appeared to be intensifying.
Speaker 1: Top Us and Ukrainian military leaders spoke ahead of Tuesday's
Speaker 1: meeting of the Allied Nations in Brussels, where foreign ministers
Speaker 1: from the Group of Seven will reportedly also meet during
Speaker 1: the Munich event. Russia on Friday launched its biggest barrage
Speaker 1: of missile attacks so far this year, as President Zelinsky
Speaker 1: seeks more weapons to fend off Putin's invasion. Global News
Speaker 1: powered by more than journalists and analysts and more than
Speaker 1: a hundred twenty countries. I America Hrstwaitz, this is Bloomberg,
Speaker 1: and this is Bloomberg. Gaybreak Gasia in Hong Kong. I'm
Speaker 1: Brian Curtis, along with Rashad Slam and our guest is
Speaker 1: Walter Todd, President, Chief Investment Officer, Managing director at Greenwood Capital.
Speaker 1: Walter a tough week last week, tough week for for
Speaker 1: the stock market and the and the bond market. Is
Speaker 1: the worst week for the bond market since back in September.
Speaker 1: Is fair to say that all of a sudden, now
Speaker 1: the inflation hawks have the upper hand, are they right? Yeah, well,
Speaker 1: we'll see right on Tuesday. Um. Certainly the revisions that
Speaker 1: came out that didn't get a lot of coverage, honestly,
Speaker 1: But yeah, I think you did see some market reaction,
Speaker 1: as you alluded to with with bonds move higher, and
Speaker 1: of course we've seen commodities move up here recently, which
Speaker 1: is probably putting some additional upward pressure on yields as well.
Speaker 1: So I mean, it's it means it's safe to say
Speaker 1: three is Um. It feels a bit like an episode
Speaker 1: of the Twilight Zone. I don't know who had UFOs
Speaker 1: on the bingo card, but I certainly did not. But anyway,
Speaker 1: we'll see on Tuesday with the CPR report. Markets. Do
Speaker 1: you think that risk has gone too far in some
Speaker 1: senses and what we may well be witnessing is a
Speaker 1: bit of a pullback taking place? Now? Yeah, absolutely agree
Speaker 1: with that. I mean that what we saw that, I mean,
Speaker 1: it's not unusual to see kind of the losers become
Speaker 1: the winners in the first month of the year, but
Speaker 1: the extreme to which we saw this UH in the
Speaker 1: in January was really the most extreme that we've seen
Speaker 1: since I think of the early nineties UH in terms
Speaker 1: of this reversion trade. So I do think there's some
Speaker 1: some money to come out of that and and have
Speaker 1: that settle back out a little bit as we moved
Speaker 1: through the rest of this month and get through earning season,
Speaker 1: which has also been a little bit unusual given some
Speaker 1: of the stock reactions both up and down UH and
Speaker 1: the extent to which those have happened. UM, I think,
Speaker 1: you know, we'll continue to see some We haven't seen
Speaker 1: a huge uptick in inflation. We've just seen you know,
Speaker 1: the jobs were strong, and then the Fed policymakers have
Speaker 1: been out there just hammering the point. Let me have
Speaker 1: some fun with you, Walter, and you can kind of
Speaker 1: you can put me down a little bit. The Fed
Speaker 1: doesn't want you to buy bonds because well, that would
Speaker 1: bring yields down and that makes their job harder. They
Speaker 1: don't want you to buy stocks because you know, companies
Speaker 1: might buy equipment and hire people, and you know that
Speaker 1: would make the Feds tom harder. You could put your money,
Speaker 1: I guess in the bank, but then the bank might
Speaker 1: just lend it out, So that's no good. Um, where
Speaker 1: where does the Fed want you to put your money? Hello, Mattress? Yeah,
Speaker 1: I was gonna say, dig a hole in the backyard,
Speaker 1: I guess, or yes, stick it under the bath? What
Speaker 1: sense does that make? Who's gonna do that? Now? It's listen,
Speaker 1: it's it's a tough it's a tough job that they
Speaker 1: have right here. They're they're trying to kind of talk
Speaker 1: out of both sides of their mouth, you know, get
Speaker 1: growth down, obviously, get inflation under control. But we've what
Speaker 1: we've seen really since that hot CPI reading going back
Speaker 1: in October, if you remember, we've seen financial Condiesian conditions
Speaker 1: ease quite a bit. And honestly, I mean Powell's commentary
Speaker 1: coming out of the last meeting and when he spoke
Speaker 1: last week at that Economic Club, he hasn't really pushed
Speaker 1: back too much. He keeps talking about disinflation has started.
Speaker 1: So I'm not sure what he wants us to do
Speaker 1: at this point. Good point, Well, that's just it, isn't it. Okay,
Speaker 1: So it's real conundrum out there. Uh and so what
Speaker 1: actually do you do then? Todd? Yeah, So what you know,
Speaker 1: what we've been doing this year so far is just
Speaker 1: trying to be very disciplined with you know, kind of
Speaker 1: our our model weights and positions. So you know, we've
Speaker 1: we've taken advantage of some of these moves and and
Speaker 1: trim positions back, move some of that into cash, move
Speaker 1: some of it into some positions that are you know,
Speaker 1: underperformed so far this year. We sold out of position
Speaker 1: like Meta that jump on the earnings beat. We just
Speaker 1: thought that was too extreme. Um, So we've just try
Speaker 1: to be a little bit more nimble, a little bit
Speaker 1: more active, and take advantage of some of this early
Speaker 1: strength in the year. I said I would I was,
Speaker 1: I was thinking about, you know, running a diet tribal
Speaker 1: on that, and I said I would do it with
Speaker 1: the sort of stentorian tones of of Doug Chrisner. But
Speaker 1: instead I put my edge on it. So I have
Speaker 1: to apologize for that. But it's nice to see you
Speaker 1: partially agree. Let's wish to China. So we had new
Speaker 1: China loans in January, setting a record almost have trillion.
Speaker 1: You on you like China at this juncture, Well, I
Speaker 1: think you know it's China had It's kind of like
Speaker 1: these other kind of mean versions that we've seen coming
Speaker 1: into the new year, huge run off of the lows
Speaker 1: in the fall um so I think there's you know,
Speaker 1: some room for giveback. I think international in general, with
Speaker 1: the fall in the dollar, it looks more attractive. But
Speaker 1: we've again we've kind of seen a little bit of
Speaker 1: uptick in the dollar, a little bit of downtick and
Speaker 1: international markets. So I think it's definitely makes sense to
Speaker 1: have exposure to international markets, including emerging markets like China,
Speaker 1: but I think, you know, they probably need to cool
Speaker 1: off a little bit before they may be re accelerated
Speaker 1: and the dollar kind of rolls over. This is Bloomberg
Speaker 1: Daybreak Asia, your morning brief on the story is making
Speaker 1: news from Hong Kong to Singapore and Wall Street. Look
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Speaker 1: Asia