Investors Await Key Powell Speech; DNC Begins in Chicago

Bloomberg Audio Studios, podcasts, radio News. Good morning, I'm Nathan 0:00:12.119 --> 0:00:15.080 Hager and I'm Karen Moscow. Here are the stories we're 0:00:15.120 --> 0:00:16.400 following today, Karen. 0:00:16.440 --> 0:00:18.599 Stocks are coming off their best week of the year 0:00:18.640 --> 0:00:21.759 ahead of a key speech from FED chair J Powell. 0:00:21.800 --> 0:00:24.040 The S and P five hundred has gained for seven 0:00:24.120 --> 0:00:27.639 straight sessions. A flurry of strong economic data last week 0:00:27.800 --> 0:00:31.040 was cheered on by investors. Nadia Lovell, as senior US 0:00:31.120 --> 0:00:34.520 equity strategist at UBS Global Wealth Management, she is still 0:00:34.520 --> 0:00:35.879 bullish on tech stocks. 0:00:36.400 --> 0:00:38.959 Well, we have been advising clients to do, particularly our 0:00:39.000 --> 0:00:41.760 international clients that tends to have Leod's exposure to attack 0:00:41.920 --> 0:00:44.520 just because of home bias, is to continue to buy 0:00:44.720 --> 0:00:46.440 on the weakness in tech. 0:00:46.560 --> 0:00:49.080 I mean, we heard some positive data points throughout the 0:00:49.080 --> 0:00:52.320 earnesties and particularly around the AI story. I mean we're 0:00:52.320 --> 0:00:55.120 continuing to see those hyper scales, those large hyper scales, 0:00:55.120 --> 0:00:58.720 those cloud service providers increase capax and quite frankly, we 0:00:58.760 --> 0:01:02.320 think that there's upside the APEX estimates into twenty twenty five. 0:01:03.040 --> 0:01:06.160 UBS isnadi a level notes the Nasdaq one hundreds more 0:01:06.200 --> 0:01:08.720 than five percent game last week was a good sign 0:01:08.760 --> 0:01:11.480 for tech stocks going forward, well as for the FED. 0:01:11.600 --> 0:01:15.000 Nathan. The majority of economists and investors expect a twenty 0:01:15.040 --> 0:01:18.600 five basis point rate cut next month, but City US 0:01:18.680 --> 0:01:22.240 economist Veronica Clark is still looking for something bigger. 0:01:21.959 --> 0:01:24.120 Starting with that fifty basis points in September, of the 0:01:24.120 --> 0:01:27.280 bar is relatively low. There is the sense in which 0:01:27.319 --> 0:01:29.800 you know, if they'd had that July employment data just 0:01:29.840 --> 0:01:32.199 a couple of days earlier at that July FOMC meeting, 0:01:32.240 --> 0:01:35.160 they probably would have cut in July. Maybe you're making 0:01:35.240 --> 0:01:37.720 up for lost time a bit. The trend of the 0:01:37.800 --> 0:01:41.240 unemployment rate has just been consistently rising. That we will 0:01:41.280 --> 0:01:44.480 have one more employment report before September, but that's probably 0:01:44.480 --> 0:01:46.600 not enough to convince you that those risks are not 0:01:46.680 --> 0:01:49.600 asymmetric to the upside of the unemployment rate. So I 0:01:49.600 --> 0:01:51.400 think it's easy for them to start with a fifty 0:01:51.440 --> 0:01:52.080 in September. 0:01:52.560 --> 0:01:55.720 And Citi's Veronica Clark pricing in the swaps market implies 0:01:55.760 --> 0:01:58.760 around thirty basis points of easing next month and about 0:01:58.840 --> 0:02:01.240 ninety three by the end of the year. That marks 0:02:01.280 --> 0:02:04.480 a big retreat from earlier this month, when traders indicated 0:02:04.520 --> 0:02:06.960 more than one hundred and fifty bases points of cuts 0:02:06.960 --> 0:02:07.960 for twenty twenty four. 0:02:08.200 --> 0:02:10.200 Then Karen, we could get more clues on rate cuts 0:02:10.240 --> 0:02:12.280 at the end of the week, that is when Federal 0:02:12.320 --> 0:02:16.240 Reserve chair Jay Powell speaks in Wyoming. Bloomberg's Michael McKee 0:02:16.240 --> 0:02:18.639 will be there for the Jackson Hole Symposium and has 0:02:18.720 --> 0:02:19.320 this preview. 0:02:19.639 --> 0:02:22.119 This is the week all Wall Street has been waiting for. 0:02:22.360 --> 0:02:25.880 The Kansas City Fence Annual Jackson Hole Symposium is actually 0:02:25.960 --> 0:02:30.720 an academic conference about economic theory, not current monetary policy. 0:02:31.280 --> 0:02:34.880 Except for the Federal Reserve Chairman's opening remarks on Friday morning, 0:02:35.320 --> 0:02:37.560 Jay Powell isn't expected to give investors a lot of 0:02:37.600 --> 0:02:40.760 detail about the Central banks plans for rate cuts. He 0:02:40.919 --> 0:02:44.239 is expected to say cuts remain on track as inflation 0:02:44.360 --> 0:02:47.560 keeps coming down. The tone he sets, we'll set market 0:02:47.600 --> 0:02:51.080 expectations for the next month until the next policy meeting 0:02:51.120 --> 0:02:54.920 September eighteenth, Wall Street can decide whether the reality of 0:02:55.000 --> 0:02:58.720 Jackson Hole lives up to the hype. Michael McKee, Bloomberg Radio. 0:02:58.840 --> 0:03:00.320 Right and Mike, thanks, So, we do have a deal 0:03:00.400 --> 0:03:03.760 to tell you about this Morning Circle k operator Kushtard 0:03:03.760 --> 0:03:07.120 has made a proposal to take over much larger rival 0:03:07.400 --> 0:03:10.919 seven eleven Owners, seven and I Holdings. A merger would 0:03:10.960 --> 0:03:14.960 create a global network of roughly one hundred thousand convenience stores. 0:03:15.280 --> 0:03:17.840 Now Karen to the latest from the Middle East, Secretary 0:03:17.919 --> 0:03:20.359 of State Anthony Blinkin is set to meet with Israel's 0:03:20.360 --> 0:03:23.480 Prime minister later today, as mediators say they are closing 0:03:23.520 --> 0:03:25.760 in on a deal to halt the war in Gaza 0:03:25.840 --> 0:03:29.240 and free hostages captured by Hamas. Blinken spoke earlier in 0:03:29.280 --> 0:03:29.760 Tel Aviv. 0:03:29.960 --> 0:03:32.320 I'm here as part of an intensive diplomatic effort on 0:03:32.320 --> 0:03:35.520 President Biden's instructions to try to get this agreement to 0:03:35.560 --> 0:03:37.480 the line and ultimately over the line. 0:03:37.840 --> 0:03:39.640 It is time to get done. 0:03:39.960 --> 0:03:42.440 This is Secretary of State Lincoln's ninth trip to the 0:03:42.440 --> 0:03:44.200 Middle East since the conflict began. 0:03:44.640 --> 0:03:47.680 Well back in the US, Nathan Democrats are coming together 0:03:47.760 --> 0:03:51.320 for their convention in Chicago, but infighting over the Israel 0:03:51.360 --> 0:03:55.160 Hamas war threatens to pull them apart. Bloomberg's Amy Morris 0:03:55.200 --> 0:03:55.680 has more. 0:03:55.960 --> 0:03:58.960 The backdrop of the Democratic National Convention this week is 0:03:58.960 --> 0:04:03.320 made up of pro Palaceian protests, incumbents ousted for criticizing Israel, 0:04:03.600 --> 0:04:07.000 and warnings from the left over rising anti Semitism. Now 0:04:07.000 --> 0:04:09.040 as the party tries to pull together in a show 0:04:09.080 --> 0:04:12.960 of unity, Democrats remain split over Israel's war in Gaza. 0:04:13.240 --> 0:04:16.080 Pro Palestinian and pro Israeli groups say they'll be there, 0:04:16.160 --> 0:04:19.679 which means security is tight. Chicago and the DNC expect 0:04:19.760 --> 0:04:22.680 fifty thousand visitors, twenty thousand members of the press, and 0:04:22.720 --> 0:04:26.320 fifty five hundred delegates and more. President Biden speaks tonight, 0:04:26.440 --> 0:04:30.120 Former President Obama speaks tomorrow night, Former President Bill Clinton 0:04:30.160 --> 0:04:33.160 speaks on Wednesday, and Vice President Harris takes the stage 0:04:33.200 --> 0:04:35.479 on Thursday. Amy Moore as Bloomberg Radio. 0:04:35.640 --> 0:04:37.880 Thanks Amy. Vice President Harris spent the day before the 0:04:37.880 --> 0:04:41.560 convention on a bus tour through the battleground state of Pennsylvania. 0:04:41.720 --> 0:04:44.320 We know our country is going to be as strong 0:04:44.520 --> 0:04:46.280 as our willingness. 0:04:45.760 --> 0:04:48.400 To fight for it and to fight for what. 0:04:48.279 --> 0:04:49.480 We stand for. 0:04:50.120 --> 0:04:51.800 You know, and you know what you stand for. 0:04:51.920 --> 0:04:53.120 You know what to fight for. 0:04:53.320 --> 0:04:56.880 When the vice presidents spoke there to supporters in Beaver County, Pennsylvania. 0:04:56.960 --> 0:04:59.360 Harris heads into the convention with the New Washington Post 0:04:59.440 --> 0:05:01.880 ABC News whose IPSOS poll showing her in the lead 0:05:01.920 --> 0:05:05.520 against former President Trump among registered voters. Forty nine percent 0:05:05.560 --> 0:05:08.160 to forty five percent. The poll's margin of er is 0:05:08.240 --> 0:05:11.000 two percent. The same poll last month showed a dead 0:05:11.040 --> 0:05:13.520 heats between Trump and President Biden. 0:05:13.640 --> 0:05:16.600 And Nathan former President. Trump is planning events in four 0:05:16.760 --> 0:05:19.880 swing states during the four days of the convention, including 0:05:19.920 --> 0:05:22.360 a trip to the border later this week, and Bloomberg's 0:05:22.440 --> 0:05:24.280 Ed Baxter has that story. 0:05:24.200 --> 0:05:26.880 Immigration has been a sweet spot for Republicans in their 0:05:26.880 --> 0:05:30.920 attack against Vice President Kamala Harris. Trump will be in Montezuma, 0:05:31.000 --> 0:05:34.520 Pass Thursday, the same day Harris will accept the nomination. 0:05:35.240 --> 0:05:38.760 Now Democratic Arizona Senator Mark Kelly on CBS has heard 0:05:38.800 --> 0:05:41.839 on Bloomberg says the Republicans just go to the border 0:05:41.880 --> 0:05:45.080 for photo ops, but says the truth is Trump is 0:05:45.120 --> 0:05:48.599 standing in the way. I mean, he specifically told my 0:05:48.720 --> 0:05:53.080 Senate colleagues that they could not support this bill because 0:05:53.160 --> 0:05:55.400 he wanted to have this issue for the election. Trump 0:05:55.480 --> 0:05:57.799 is scheduled to get a briefing as well at the border, 0:05:58.279 --> 0:06:00.480 Ed Baxter, Bloomberg Radio said. 0:06:00.480 --> 0:06:03.520 In Ukraine, President Vladimir Lensky says the name of his 0:06:03.600 --> 0:06:06.960 country's incursion into Russia is to create a buffer zone 0:06:07.000 --> 0:06:09.320 between the two countries. His comments come as key of 0:06:09.360 --> 0:06:13.279 has expanded its operation into the Curs region over the weekend. 0:06:13.640 --> 0:06:16.000 It is nightly addressed to the nations. Zelensky made a 0:06:16.040 --> 0:06:18.719 direct appeal to the US, UK and France. 0:06:21.360 --> 0:06:24.560 In every direction, our troops are doing an outstanding job. However, 0:06:24.600 --> 0:06:27.240 when it comes to supplies from our partners, we need 0:06:27.279 --> 0:06:29.719 things to speed up. There are no holidays in war. 0:06:30.000 --> 0:06:32.880 We need decisions, We need timely logistics with the promised 0:06:32.920 --> 0:06:33.680 aid packages. 0:06:34.080 --> 0:06:37.320 Speaking through an interpreter, Ukrainian President Vladimir Lensky said his 0:06:37.400 --> 0:06:40.119 forces have struck two key bridges in the Curs region 0:06:40.160 --> 0:06:42.679 and disrupted some of Moscow's main supply roots. 0:06:46.320 --> 0:06:47.719 And it's time now if for a look at some 0:06:47.760 --> 0:06:50.000 of the other stories making news in New York and 0:06:50.040 --> 0:06:52.360 around the world. And for that we're joined by Bloomberg's 0:06:52.400 --> 0:06:54.200 Michael Barr Michael, good morning. 0:06:54.000 --> 0:06:57.560 Good morning, Karen. Flooding hit the Northeast after heavy rains 0:06:57.600 --> 0:07:00.880 swamped the area. Vehicles were still in the high water, 0:07:01.000 --> 0:07:03.840 especially in New Jersey, and people had to be rescued. 0:07:04.120 --> 0:07:06.680 This stranded driver told ABC seven he was on a 0:07:06.760 --> 0:07:10.240 date in Woodland Park when water enveloped the parking lot 0:07:10.280 --> 0:07:12.120 and his vehicle wound up disabled. 0:07:12.520 --> 0:07:14.320 Point and laugh. You know, it's like, oh that pour 0:07:14.400 --> 0:07:16.280 succer No, we're the sucker. 0:07:16.040 --> 0:07:16.760 To make for shirt. 0:07:17.000 --> 0:07:19.400 Meanwhile, in western Connecticut. 0:07:18.960 --> 0:07:22.320 This water is at least four to five feet high, 0:07:22.640 --> 0:07:23.240 nearly a. 0:07:23.160 --> 0:07:27.240 Foot of rain falling in just hours. Streets and sidewalks 0:07:27.280 --> 0:07:30.680 were suddenly overwhelmed by water moving fast enough to carry 0:07:30.720 --> 0:07:34.800 away cars. Storms sweeping through New York City disrupted flights 0:07:35.000 --> 0:07:38.640 and train service. Tropical storm in Esto became a hurricane 0:07:38.640 --> 0:07:42.360 again as it turned away from Bermuda and headed further 0:07:42.440 --> 0:07:47.400 out in the northeastern Atlantic. Ernesto is sending powerful swells 0:07:47.440 --> 0:07:51.640 toward the US East Coast, generating dangerous rip currents associated 0:07:51.640 --> 0:07:55.040 with at least one depth and prompting many rescues. Many 0:07:55.160 --> 0:07:58.920 East Coast beaches are closed, including in New York. The 0:07:59.000 --> 0:08:03.080 National Hurricane Said in Miami said Ernesto's maximum sustained wins 0:08:03.360 --> 0:08:06.800 we're seventy five miles per hour. That's barely Category one strength. 0:08:07.160 --> 0:08:10.960 The storm is expected to pass near southeastern Newfoundland late 0:08:11.000 --> 0:08:16.120 today and early tomorrow. Alsted Representative George Santos is expected 0:08:16.120 --> 0:08:19.360 to plead guilty today to multiple felony accounts. The New 0:08:19.400 --> 0:08:22.679 York Republican is charged with nearly two dozen counts, including 0:08:22.680 --> 0:08:27.120 wire fraud, money laundering, and theft of public funds. Santo's 0:08:27.240 --> 0:08:29.880 faced twenty years in prison for the twenty three federal 0:08:29.960 --> 0:08:33.880 charges of fraud that the US Attorney's Office has brought 0:08:33.920 --> 0:08:36.480 against him. With the plea deal, no word on whether 0:08:36.520 --> 0:08:39.560 the plea deal will help them avoid jail time. Finally, 0:08:39.600 --> 0:08:41.560 it's that time of the year when parents and kids 0:08:41.600 --> 0:08:44.640 head to stores from back to school shopping. A Bank 0:08:44.640 --> 0:08:48.400 Great survey finds inflation is impacting buying habits, but not 0:08:48.520 --> 0:08:51.040 as much as it was a couple of years ago. 0:08:51.200 --> 0:08:53.440 Bank Great senior analyst Ted Russman. 0:08:53.400 --> 0:08:56.160 About a third of back to school shoppers thirty two 0:08:56.200 --> 0:08:58.760 percent say that inflation is changing. 0:08:58.480 --> 0:08:59.200 The way they buy. 0:08:59.360 --> 0:09:01.480 A couple of years ago that was forty one percent. 0:09:02.160 --> 0:09:05.200 Analyst Ted Rossman says another area as inflation is having 0:09:05.200 --> 0:09:08.240 a greater impact, but back to school's shopping is one 0:09:08.280 --> 0:09:10.520 area where people seem to be feeling a lot better. 0:09:11.040 --> 0:09:13.520 Global News twenty four hours a day and whenever you 0:09:13.559 --> 0:09:16.199 want it with Bloomberg News Now. I'm Michael Barrn. This 0:09:16.440 --> 0:09:17.559 is Bloomberg Karen. 0:09:17.760 --> 0:09:24.360 All right, Michael barr thank you time now for the 0:09:24.400 --> 0:09:26.760 Bloomberg Sports Update with John stash Hour. 0:09:26.840 --> 0:09:29.520 John, Good morning, Good morning, Karen. The little leaguers who 0:09:29.559 --> 0:09:32.559 got to watch the Yankees and Tigers up close in Wayiamsport, 0:09:32.559 --> 0:09:35.280 Pennsylvania saw bizarre game bottom the night day and the 0:09:35.320 --> 0:09:37.319 Yanks led one did nothing. They had scored a run 0:09:37.360 --> 0:09:39.280 without a hit. To that point. There had only been 0:09:39.360 --> 0:09:42.439 nine hits in the game, all singles. But Detroit tied 0:09:42.480 --> 0:09:45.080 the game with two outs of the night off Clay Holmes, 0:09:45.200 --> 0:09:47.760 who blew a safe for a major league leading tenth time. 0:09:47.800 --> 0:09:50.280 After the Yanks reclaimed the lad top of the tenth, 0:09:50.360 --> 0:09:52.600 the Tigers tied it again in the bottom and were 0:09:52.640 --> 0:09:55.480 not done there. We had a one to two pitch 0:09:55.480 --> 0:09:57.839 scrow bowl side that's through for a base hit and 0:09:57.920 --> 0:10:00.599 could well win it the Kid's tree around third to 0:10:00.760 --> 0:10:02.560 Vegas with a throw of the play in the head 0:10:02.600 --> 0:10:06.240 first slide is in time and the Tigers win in 0:10:06.320 --> 0:10:07.800 walk up fashion. 0:10:07.920 --> 0:10:09.800 Three to two over the Yankees. 0:10:09.840 --> 0:10:13.400 Here in Williamsport, ESPN the call of the Parker Meadows 0:10:13.480 --> 0:10:16.720 walk off of Mark Later it was Jason Dominguez making 0:10:16.760 --> 0:10:18.720 that throw from left field. Teams were allowed to add 0:10:18.760 --> 0:10:21.640 a player and the Yanks brought Domingas up from Scranton. 0:10:21.720 --> 0:10:24.120 He had hit four home runs in eight games to 0:10:24.200 --> 0:10:26.240 the Yanks last season before he got hurt. Last night, 0:10:26.520 --> 0:10:28.959 he went zero for four, struck out three times at Cityfield, 0:10:29.000 --> 0:10:30.839 Marlins beat the Mets three to two. The Mets got 0:10:30.840 --> 0:10:33.439 Sterling mart Day back after missing two months with a 0:10:33.520 --> 0:10:36.280 knee injury, but Brandon Nimmo, who homered and the loss, 0:10:36.320 --> 0:10:39.079 then left the game with an achy shoulder. I'll have 0:10:39.160 --> 0:10:42.480 an MRI today. The Mets tonight host Baltimore. The Orioles, 0:10:42.480 --> 0:10:45.079 despite being out hit eleven to three, beat the Red 0:10:45.120 --> 0:10:47.640 Sox four to two in Baltimore, back in the first 0:10:47.640 --> 0:10:50.000 place time with the Yankees. Then Nationals won six to 0:10:50.000 --> 0:10:52.280 four at Philadelphia, and the Giants won four to two 0:10:52.280 --> 0:10:56.079 in Oakland. Last game ever between two Bay Area teams 0:10:56.120 --> 0:10:58.880 as the Aser move into Las Vegas by way of Sacramento. 0:10:58.920 --> 0:11:01.480 In Memphis Reki Matsuyama, but the other day with a 0:11:01.480 --> 0:11:03.840 five shot lead, he won the Saint Jude Golf by two. 0:11:04.240 --> 0:11:07.160 John Stashawer Bloomberg Sports Karen Nathan. 0:11:09.320 --> 0:11:13.440 Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, 0:11:13.520 --> 0:11:16.440 and around the world on Bloomberg dot Com and the 0:11:16.480 --> 0:11:19.840 Bloomberg Business app. This is Bloomberg Daybreak. 0:11:20.040 --> 0:11:23.040 Good morning, I'm Nathan Hager. Investors are heading into this 0:11:23.080 --> 0:11:26.000 new week with expectations riding high that the Federal Reserve 0:11:26.120 --> 0:11:29.120 is on track to start cutting interest rates next month, 0:11:29.120 --> 0:11:31.360 that all eyes will be on Chairman Powell and his 0:11:31.400 --> 0:11:33.400 speech at Jackson Hole at the end of the week 0:11:33.800 --> 0:11:36.640 to see if he seals in those bets. Joining us 0:11:36.679 --> 0:11:39.000 now to get us ready for what's ahead live in 0:11:39.040 --> 0:11:42.120 our interactive Brookers Studios this morning. Lori Calvacina, head of 0:11:42.200 --> 0:11:45.679 US Equity strategy at RBC Capital Market, It's great to 0:11:45.679 --> 0:11:48.840 have you with us in person this morning, Laurie. As 0:11:48.880 --> 0:11:51.720 we watch S and P on a seven day winning 0:11:51.760 --> 0:11:54.880 streak heading into this week. How much does this rally 0:11:55.240 --> 0:11:58.240 hinge on what Chairman Powell has to say on Friday. 0:11:58.760 --> 0:12:00.840 Well, thanks for having me as all, Nathan, And look, 0:12:00.840 --> 0:12:03.319 I think it's probably his to not mess up at 0:12:03.320 --> 0:12:05.400 this point, not that that's going to be his end goal, 0:12:06.120 --> 0:12:08.800 but I do think that we've settled into the equity 0:12:08.880 --> 0:12:11.320 part of the market, at least just the idea that 0:12:11.320 --> 0:12:14.440 these rate cuts are coming in September. I do feel like, 0:12:14.480 --> 0:12:17.880 at least in my conversations, questions about fifty have been 0:12:17.920 --> 0:12:21.280 dialed down. It does seem like we've sort of I 0:12:21.280 --> 0:12:23.480 wouldn't say we're completely out of the soft patch on 0:12:23.520 --> 0:12:25.959 the economy or the concerns about labor and the consumer, 0:12:26.000 --> 0:12:28.080 but it does seem like we're in a better place 0:12:28.120 --> 0:12:30.440 on that. So, you know, I think at this point 0:12:30.480 --> 0:12:32.440 we need to hear more of the same. You know, 0:12:32.480 --> 0:12:35.280 I would assume that the commentary is going to be 0:12:35.320 --> 0:12:39.320 carefully tailored to match what's been said previously, but as always, 0:12:39.320 --> 0:12:40.480 we're going to have to tune in and. 0:12:40.440 --> 0:12:44.320 See to that point about potentially not being out of 0:12:44.400 --> 0:12:47.000 the rough patch in the economy. We did get some 0:12:47.120 --> 0:12:49.320 pretty positive economic data at the end of the week, 0:12:49.320 --> 0:12:53.480 particularly on retail sales and the dial down of weekly 0:12:53.600 --> 0:12:57.200 jobless claims as well. Do you still have concerns about 0:12:57.200 --> 0:12:59.760 the consumer after what we've heard at the at the 0:12:59.840 --> 0:13:00.720 end of last week. 0:13:00.840 --> 0:13:03.280 So, you know, we've never been in the recession camp. 0:13:03.320 --> 0:13:05.560 We've thought that there was, you know, a moment that 0:13:05.600 --> 0:13:09.320 we've been experiencing right now where consumers are reacting pretty 0:13:09.360 --> 0:13:13.920 profoundly right to the higher interest rate environment. The cumulative 0:13:13.920 --> 0:13:17.040 impact of inflation. As I looked at the retail sales data, 0:13:17.080 --> 0:13:19.760 one thing that struck me was just how how kind 0:13:19.760 --> 0:13:23.120 of back and forth it's been in recent months, you know, 0:13:23.200 --> 0:13:25.240 sort of the idea, at least in my mind, that 0:13:25.280 --> 0:13:27.600 maybe consumers are reacting and then have to go out 0:13:27.640 --> 0:13:29.120 and buy the you know, buy the things and do 0:13:29.200 --> 0:13:30.920 the things they need to do that life goes on. 0:13:31.360 --> 0:13:34.040 They were talking in an earlier segment about back to school, right. 0:13:34.080 --> 0:13:37.280 I mean, it is a great reminder that as long 0:13:37.360 --> 0:13:39.840 as we do have jobs, and that's what we're really 0:13:39.880 --> 0:13:42.280 seeing in that claims data. That's given people so much 0:13:42.360 --> 0:13:44.880 comfort that consumers will go out and do the things 0:13:44.960 --> 0:13:47.280 they need to do, even if they are reacting in 0:13:47.320 --> 0:13:49.559 real time to some of these pressures. And I think 0:13:49.559 --> 0:13:52.199 it's just a very very you know, sort of interesting 0:13:52.280 --> 0:13:55.000 moment that we're in right now. One of the companies 0:13:55.040 --> 0:13:58.120 that reported last week, they had a comment about the 0:13:58.240 --> 0:14:01.160 sort of deferral mindset, and you know, I sort of 0:14:01.160 --> 0:14:04.520 flashed back to kind of the mediate period after COVID. 0:14:04.600 --> 0:14:06.400 I don't know if we you know, exactly where we 0:14:06.480 --> 0:14:10.319 define that, but the idea of demand that was delayed, 0:14:10.400 --> 0:14:12.520 not destroyed, was sort of a phrase. They kind of 0:14:12.559 --> 0:14:14.440 bopped back into my mind, and I think we're going 0:14:14.480 --> 0:14:16.040 to have some puts and takes. I think the data 0:14:16.080 --> 0:14:18.360 is going to be important to watch. In my mind, 0:14:18.400 --> 0:14:20.080 we are going to come out to a better place. 0:14:20.280 --> 0:14:23.400 Yeah, that was some interesting commentary from Home Depot last 0:14:23.400 --> 0:14:27.440 week about this deferral mindset. When we have this idea 0:14:27.520 --> 0:14:30.720 that consumers might be getting a little choosier now in 0:14:30.760 --> 0:14:35.360 this high inflation, high interest rate environment. What sectors do 0:14:35.520 --> 0:14:37.280 well in an environment like this? 0:14:37.880 --> 0:14:40.560 You know, I'm not sure if there's any one particular 0:14:40.640 --> 0:14:42.680 set of sectors or you know, or industries. I do 0:14:42.680 --> 0:14:45.000 think you have to take it company by company. I 0:14:45.040 --> 0:14:48.080 will tell you that we've been neutral the consumer discretionary sector, 0:14:48.080 --> 0:14:51.040 but we've been underweight consumer staples. And if you look 0:14:51.080 --> 0:14:54.720 at consumer staples, it is a quite cheap sector. It's, 0:14:54.840 --> 0:14:56.840 you know, in theory, if you're kind of going into 0:14:56.880 --> 0:14:59.200 an economic soft patch, right, it's one that you might 0:14:59.240 --> 0:15:01.680 think that you want to go into. But I think 0:15:01.720 --> 0:15:03.640 at this point in time, you know, as I read 0:15:03.760 --> 0:15:07.240 through just a very broad array of transcripts from those companies, 0:15:07.280 --> 0:15:09.480 and I'm thinking back, you know, not just this reporting season, 0:15:09.480 --> 0:15:12.280 but going back the last reporting season or two. It 0:15:12.320 --> 0:15:14.440 really seems to me that that's a sector that's been 0:15:14.560 --> 0:15:19.080 very slow to understand the sort of reaction that consumers 0:15:19.120 --> 0:15:21.480 are having. And I do think that they're sort of 0:15:21.520 --> 0:15:23.640 on the front lines of that war, so to speak, 0:15:23.720 --> 0:15:25.960 right now. And that's enough to sort of keep me 0:15:26.000 --> 0:15:29.080 on the sidelines for that sector with an underweight despite 0:15:29.200 --> 0:15:31.720 you know, some attractive valuations on my quant work. 0:15:32.040 --> 0:15:34.960 Just about thirty seconds left, Lourie, But after Chairman Palace 0:15:34.960 --> 0:15:38.000 speech on Friday, we get Nvidia earnings a week from Wednesday. 0:15:38.000 --> 0:15:39.560 I mean, how big a deal is that going to 0:15:39.560 --> 0:15:40.280 be for the rally? 0:15:40.480 --> 0:15:43.000 So I think the AI theme generally, you know, it's 0:15:43.000 --> 0:15:45.520 been a fascinating one to track. I mean, we had 0:15:45.520 --> 0:15:48.840 some you know, disappointments relative to high expectations early on. 0:15:49.440 --> 0:15:52.160 Overlooked parts of this last reporting season. I think we've 0:15:52.160 --> 0:15:54.400 had is that companies are starting to come out and 0:15:54.440 --> 0:15:56.640 talk about how they're trying to use that technology and 0:15:56.680 --> 0:15:58.960 how it's making an impact on the day to day. Now, 0:15:59.000 --> 0:16:01.320 maybe that in and of its office two small potatoes 0:16:01.360 --> 0:16:04.800 for investors and underwhelming, but I do think we've entered 0:16:04.800 --> 0:16:06.680 into a place where you're starting to see some of 0:16:06.680 --> 0:16:07.800 the results manifest. 0:16:08.680 --> 0:16:11.600 This is Bloomberg day Break Today, your morning brief on 0:16:11.680 --> 0:16:15.240 the stories making news from Wall Street to Washington and beyond. 0:16:15.480 --> 0:16:18.280 Look for us on your podcast feed at six am 0:16:18.320 --> 0:16:22.000 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:22.040 --> 0:16:23.240 get your podcasts. 0:16:23.360 --> 0:16:26.040 You can also listen live each morning starting at five 0:16:26.080 --> 0:16:28.680 am Wall Street time, on Bloomberg eleven three to zero 0:16:28.760 --> 0:16:32.160 in New York, Bloomberg ninety nine one in Washington, Bloomberg 0:16:32.240 --> 0:16:35.280 one oh six' one in Boston, and Bloomberg nine sixty 0:16:35.360 --> 0:16:36.320 in San Francisco. 0:16:36.720 --> 0:16:39.840 Our flagship New York station is also available on your 0:16:39.920 --> 0:16:45.360 Amazon Alexa devices. 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