Bearish Sentiment Weighs on Stocks; Ukraine Launches Drone Attack on Russia

Bloomberg Audio Studios, Podcasts, Radio News. 0:00:10.240 --> 0:00:13.440 Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 0:00:13.440 --> 0:00:15.160 are the stories we're following today. 0:00:15.360 --> 0:00:18.560 Karen, we are seeing stabilization in the markets this morning, 0:00:18.560 --> 0:00:21.360 but it follows another selloff on Wall Street. 0:00:21.400 --> 0:00:23.320 The numbers are not pretty. 0:00:23.480 --> 0:00:26.960 Tech stocks experienced their biggest one day plunge since twenty 0:00:27.000 --> 0:00:31.320 twenty two, erasing one point one trillion dollars in market value. 0:00:31.480 --> 0:00:34.320 Let's get the very latest with Bloomberg's John Tucker, John 0:00:34.520 --> 0:00:35.000 and Nathan. 0:00:35.040 --> 0:00:38.680 Monday's market plunge came as the Trump administration warrens of 0:00:38.720 --> 0:00:43.120 a period of transition and detox for the economy. Economist 0:00:43.159 --> 0:00:44.560 Denis Gartman sees it this way. 0:00:45.520 --> 0:00:48.360 I think that the economy, no question is going into recession. 0:00:48.440 --> 0:00:51.720 The Nasdaq one hundred index plunge three point eight percent. 0:00:52.159 --> 0:00:54.920 Amy wou Silverman at RBC is waiting for the other 0:00:54.960 --> 0:00:57.400 shoe to drop. Are we going to get to that 0:00:57.640 --> 0:01:00.680 second tier of fear? The Nasdaq one hundred down twelve 0:01:00.720 --> 0:01:04.280 point four percent from its market high. That's a correction. 0:01:04.640 --> 0:01:07.479 The S and P five hundred flirting with correction, down 0:01:07.480 --> 0:01:10.160 to eight point six percent from its record, said only 0:01:10.240 --> 0:01:14.320 last month. Max Wasserman at Mira Mark Capital says investors 0:01:14.319 --> 0:01:16.880 are still trying to gauge the impact of the Trump 0:01:17.000 --> 0:01:17.639 trade war. 0:01:17.840 --> 0:01:19.559 In the meantime an uncertainty. 0:01:19.600 --> 0:01:22.080 Who wants to pay thirty forty times for these tech 0:01:22.120 --> 0:01:22.959 earnings right now? 0:01:23.080 --> 0:01:26.680 The Bloomberg Magnificent seven Index, an equal weighted gauge of 0:01:26.720 --> 0:01:30.280 the biggest US tech stocks, tumbled five point four percent 0:01:30.600 --> 0:01:33.000 to bring its round from a December record to more 0:01:33.040 --> 0:01:38.080 than twenty percent. Tesla alone tumbled fifteen percent, widening its 0:01:38.120 --> 0:01:41.440 lost this year to forty five percent, while Nvidia lost 0:01:41.440 --> 0:01:44.039 five point one percent. That has to raised more than 0:01:44.080 --> 0:01:47.480 one trillion dollars in market value in just two months. 0:01:47.760 --> 0:01:52.880 The unpredictable terror policies also spurring risk aversion Government bonds 0:01:52.920 --> 0:01:57.200 globally their rallying as bents on US exceptionalism start to fade. 0:01:57.360 --> 0:01:59.800 In New York On John Tucker Bloomberg Radio. 0:02:00.000 --> 0:02:01.880 All right, John, thank you. What we are seeing the 0:02:01.920 --> 0:02:05.160 fallout from the recent US stock selloff. City Group is 0:02:05.200 --> 0:02:09.720 downgrading its view on US equities while upgrading China to overweight, 0:02:09.840 --> 0:02:13.600 citing attractive valuations, government support for the tech sector, and 0:02:13.680 --> 0:02:17.320 a technology breakthrough that divergence in outlook between the US 0:02:17.320 --> 0:02:20.240 and China is growing, with Chinese equities performing well this 0:02:20.400 --> 0:02:23.520 year while US equities have lost four and a half 0:02:23.600 --> 0:02:26.799 percent so far this year. Well, Nathan. When Donald Trump 0:02:26.880 --> 0:02:29.360 took office on January twenty if, he was flanked by 0:02:29.360 --> 0:02:32.720 some of the wealthiest people. Now new figures from Bloomberg's 0:02:32.720 --> 0:02:36.160 Billionaire's Index show five of those billionaires have lost to 0:02:36.200 --> 0:02:39.600 combine two hundred and nine billion dollars in wealth since 0:02:39.639 --> 0:02:43.079 inauguration day. Elon Musk has been hit the hardest, losing 0:02:43.080 --> 0:02:46.280 some one hundred and forty eight billion. Amazon founder Jeff 0:02:46.280 --> 0:02:50.280 Bezos is down twenty nine billion. Google co founder Sergei 0:02:50.400 --> 0:02:53.359 Brinn is worse off by twenty two billion, while Mark 0:02:53.480 --> 0:02:58.280 Zuckerberg and LVMH boss Bernard Arnault are both down five billion. 0:02:57.960 --> 0:03:00.320 Dollars and those losses Kring Coum is is it in. 0:03:00.360 --> 0:03:03.120 Trump gets ready to meet today with the country's top 0:03:03.200 --> 0:03:06.560 business leaders. Mary Nichol is a Bloomberg Markets Live strategist. 0:03:06.800 --> 0:03:10.320 He needs to highlight his pro growth policies heading into 0:03:10.639 --> 0:03:13.800 the Trump administration and after he won. Businesses were actually 0:03:13.840 --> 0:03:18.200 quite optimistic about the future given deregulation and what some 0:03:18.280 --> 0:03:21.520 of his policies would be that would be favorable to businesses. 0:03:21.919 --> 0:03:23.800 But businesses are now worried. 0:03:23.840 --> 0:03:26.359 They're now worried about the outlook of the economy, they're 0:03:26.400 --> 0:03:29.840 worried about tariff. So he'll need to address these recession 0:03:29.919 --> 0:03:33.360 concerns and that his plans will be more limited. And 0:03:33.440 --> 0:03:37.320 it really is a short lived adjustment period, because otherwise 0:03:37.360 --> 0:03:40.360 you could see this spiral into something even bigger and 0:03:40.400 --> 0:03:41.920 deeper losses for the markets. 0:03:41.920 --> 0:03:44.800 Bloomberg's Mary Nichola notes that President Trump will meet today 0:03:44.800 --> 0:03:49.400 with the Washington based Business Roundtable. Cisco CEO Chuck Robbins 0:03:49.480 --> 0:03:53.200 chairs the organization, JP Morgan Chases, Jamie Diamond, and City 0:03:53.240 --> 0:03:55.640 Groups Jane Fraser among the bank leaders on the round 0:03:55.640 --> 0:03:56.800 tables board of directors. 0:03:57.280 --> 0:03:59.080 Nathan, Now, let's get to the latest on the war 0:03:59.120 --> 0:04:01.680 in Ukraine. In Russia says it shot down three hundred 0:04:01.680 --> 0:04:05.240 and thirty seven Ukrainian drones overnight, including seventy four aimed 0:04:05.280 --> 0:04:08.320 at the capital Moscow. It appears to be the largest 0:04:08.360 --> 0:04:11.640 attack on Russian territory in the three year war, and 0:04:11.720 --> 0:04:14.800 it comes as Ukrainian officials meet with the US and 0:04:14.840 --> 0:04:17.880 Saudi Arabia to discuss ways to end the conflict again. 0:04:17.920 --> 0:04:20.680 Those talks are underway right now, but Bloomberg's Greg Sullivan 0:04:20.760 --> 0:04:23.800 reports the US is downplaying anything major coming out of 0:04:23.839 --> 0:04:24.320 this meeting. 0:04:24.640 --> 0:04:27.440 We saw a Secretary of State Marco Rubio come out 0:04:27.480 --> 0:04:29.719 and say, look, look, we're not looking for a major 0:04:29.760 --> 0:04:32.159 breakthrough here. The US is basically in a position where 0:04:32.160 --> 0:04:35.440 it's listening, trying to see what's possible, especially in terms 0:04:35.440 --> 0:04:38.560 of concessions. He did say that he expects concessions from 0:04:38.880 --> 0:04:42.239 both sides, and that could include territorial concessions from Ukraine, 0:04:42.240 --> 0:04:44.320 which will be quite hard for them to swallow. 0:04:44.640 --> 0:04:47.840 And as President Trump pushes for a ceasefire, Bloomberg's Greg 0:04:47.880 --> 0:04:51.240 Sullivan reports he's sending Middle East Envoy Steve Wikoff to 0:04:51.360 --> 0:04:55.560 Moscow this week to meet with Russian President Vladimir Putin Karen. 0:04:55.360 --> 0:04:58.880 Talks between the US and China on trade maybe getting stuck, 0:04:59.080 --> 0:05:02.400 sources tell Bloomberg News discussions are bogged down at lower levels, 0:05:02.440 --> 0:05:05.200 with both sides talking past each other on how to proceed. 0:05:05.640 --> 0:05:08.560 Officials in Beijing say the US has not given detailed 0:05:08.560 --> 0:05:10.719 steps on what it needs to do about fentanyl to 0:05:10.760 --> 0:05:13.960 have tariffs lift it. President Trump's team says it has 0:05:14.080 --> 0:05:16.680 been clear that it wants China to stop sending precursor 0:05:16.760 --> 0:05:20.400 chemicals to Mexico, to give smugglers the death penalty, and 0:05:20.440 --> 0:05:22.640 to run a front page article in the People's Daily 0:05:22.720 --> 0:05:25.479 newspaper condemning the fentanyl trade. 0:05:25.640 --> 0:05:28.480 Well in Washington, Nathan, a stop gap funding bill, or 0:05:28.560 --> 0:05:31.440 clean cr looks likely to pass Congress today and avert 0:05:31.440 --> 0:05:34.040 of government shutdown on Friday. Bloombergs Amy Morris has the 0:05:34.120 --> 0:05:35.240 details from Washington. 0:05:35.640 --> 0:05:39.000 The Republicans spending bill is designed to keep government agencies 0:05:39.040 --> 0:05:43.520 open through September thirtieth. Representative Don Byer, a Democrat from Virginia, 0:05:43.680 --> 0:05:46.480 talked about the options and the worries that the President 0:05:46.520 --> 0:05:51.680 will unilaterally delay or cancel appropriations called impoundment. 0:05:51.279 --> 0:05:55.320 Unless there are meaningful guardrails to keep Trump from impounding it. 0:05:55.560 --> 0:05:58.120 We should vote note in the Democrats in the Senate 0:05:58.160 --> 0:05:59.520 and hope with some Republicans of the center. 0:05:59.640 --> 0:06:03.279 Virginia Democratic Representative Don Byer on Bloomberg's balance of power. 0:06:03.480 --> 0:06:06.040 House Republicans could pass this on their own if they 0:06:06.040 --> 0:06:08.599 get enough votes from their own caucus, but even after 0:06:08.640 --> 0:06:10.560 it passes the House, it still has to get through 0:06:10.560 --> 0:06:13.640 the Senate. In Washington, Amy Moore as Bloomberg Radio. 0:06:13.520 --> 0:06:14.240 Amy thank you. 0:06:14.279 --> 0:06:18.000 A federal judges rule elon Musk's Government Efficiency Project must 0:06:18.040 --> 0:06:21.279 comply with records demands from a public interest group. The 0:06:21.360 --> 0:06:25.240 ruling rejects the Trump administration's position that the office created 0:06:25.279 --> 0:06:28.440 by the president is exempt from US transparency law. The 0:06:28.520 --> 0:06:31.560 decision would mean the Department of Government Efficiency is required 0:06:31.600 --> 0:06:35.200 to disclose emails, memos, notes, and other internal records about 0:06:35.200 --> 0:06:37.320 its operations, staff, and structure. 0:06:37.839 --> 0:06:38.000 Well. 0:06:38.040 --> 0:06:41.760 Speaking of Musk, as mentioned earlier Nathan, his personal wealth 0:06:41.839 --> 0:06:44.799 has taken a big hit recently. In fact, with yesterday's 0:06:44.839 --> 0:06:48.279 fifteen percent decline, Tesla's shares have lost more than half 0:06:48.360 --> 0:06:51.400 of their value since mid December. This morning, Musk is 0:06:51.440 --> 0:06:54.800 getting some support from Donald Trump. The President says that 0:06:54.880 --> 0:06:56.920 he will buy a new Tesla as a show of 0:06:56.960 --> 0:07:00.440 confidence and support for the CEO. Musk, who is now 0:07:00.440 --> 0:07:02.640 the face of the president's efforts to cut the size 0:07:02.640 --> 0:07:05.360 of the US government, responded with a simple thank you 0:07:05.520 --> 0:07:08.400 on x and shares a Tesla there hire this morning 0:07:08.440 --> 0:07:09.960 at more than four and a half percent. 0:07:10.320 --> 0:07:12.160 As for some other stocks on the move this morning, 0:07:12.200 --> 0:07:14.040 Karen worsh watching shares of Oracle. 0:07:14.120 --> 0:07:16.160 They are down almost two percent. 0:07:16.240 --> 0:07:19.880 The company reported disappointing quarterly results and gave a sales 0:07:19.920 --> 0:07:22.200 and profit forecast for the current quarter that fell short 0:07:22.200 --> 0:07:23.200 of analyst estimates. 0:07:23.680 --> 0:07:26.240 Shares A Delta are down almost ten percent. The airline 0:07:26.280 --> 0:07:29.120 cut its profit expectations for the first quarter roughly by 0:07:29.240 --> 0:07:32.840 half on weakening travel demand. The carrier also said economic 0:07:32.920 --> 0:07:35.960 volatility and concerns of our flight safety have weighed on 0:07:36.000 --> 0:07:41.920 the US industry in recent weeks. But it's time now 0:07:41.960 --> 0:07:43.720 for a look at some of the other stories making 0:07:43.760 --> 0:07:45.760 news in New York and around the world. And for 0:07:45.800 --> 0:07:48.960 that we're joined by Bloomberg's Michael Barr Michael, good Morning. 0:07:48.760 --> 0:07:51.720 Good Morning caaren. A federal judge has temporarily blocked the 0:07:51.760 --> 0:07:56.560 deportation of Mackmood Khalil, the pro Palestinian activists and Columbia 0:07:56.640 --> 0:08:00.440 University graduate, was arrested by ICE agents over the weekend. 0:08:00.840 --> 0:08:04.760 He helped organize last year's pro Palestinian protests on the 0:08:04.800 --> 0:08:09.480 Columbia campus. Meanwhile, hundreds demonstrated in Lower Manhattan Monday to 0:08:09.480 --> 0:08:13.679 protest Khalil's arrest. Demonstrators say the arrest violates free speech 0:08:13.760 --> 0:08:18.040 rights and is unconstitutional. At a press conference, Professor Unan 0:08:18.120 --> 0:08:23.840 Cohen of Columbia Center's Jewish and Israel Studies compared Khalil's 0:08:23.880 --> 0:08:27.680 arrest to tactics used to detain Palestinians in Gaza. As 0:08:27.720 --> 0:08:32.400 an Israeli American, I'm extremely troubled that such practices have 0:08:32.520 --> 0:08:36.679 been important to the United States and manifests themselves on 0:08:36.720 --> 0:08:40.520 our campus. Meanwhile, President Trump said the arrest was in 0:08:40.640 --> 0:08:45.679 furtherance of his policies against anti Semitism. Israeli negotiators are 0:08:45.760 --> 0:08:49.080 in Cutter and restarting talks with Moss on what phase 0:08:49.120 --> 0:08:53.280 two of the ceasefire agreement will look like. Eighty Alexander 0:08:53.360 --> 0:08:57.079 says his son Eden is still being held in Gaza 0:08:57.200 --> 0:08:59.920 and hopes the negotiators will come to a consensus. 0:09:00.440 --> 0:09:03.640 We have to be back into the Surboggan and table 0:09:04.080 --> 0:09:08.240 and keep talking and get everybody out as soon as possible. 0:09:08.440 --> 0:09:11.160 It comes as Israel has cut off electricity to Gaza. 0:09:11.559 --> 0:09:14.600 Police in Montvale, New Jersey, are investigating a bus crash 0:09:14.640 --> 0:09:18.000 on the Garden State Parkway that left several children injured, 0:09:18.000 --> 0:09:21.320 including one in critical condition. Official say thirty one people 0:09:21.320 --> 0:09:23.640 were on board. The bus was heading to New York 0:09:23.640 --> 0:09:27.000 State when it flipped last evening global news twenty four 0:09:27.000 --> 0:09:28.959 hours a day and whenever you want it with the 0:09:28.960 --> 0:09:29.680 Bloomberg News. 0:09:29.679 --> 0:09:32.559 Now, I'm Michael Barr, and this is Bloomberg Karen. 0:09:32.679 --> 0:09:39.360 All right, Michael Barr, thank you. It's time now for 0:09:39.400 --> 0:09:42.000 the Bloomberg Sports out Date, brought to you by Tri 0:09:42.160 --> 0:09:42.760 State Houdie. 0:09:42.760 --> 0:09:43.920 Here's John Stanshawer. 0:09:43.960 --> 0:09:45.080 John, good morning, Good morning. 0:09:45.160 --> 0:09:47.720 Care of the Yankees hopes for a second straight American 0:09:47.800 --> 0:09:51.040 League Pettant Delta severe blow. Garrett Cole will spend today 0:09:51.440 --> 0:09:54.040 having season ending Tommy John elbow surgery. He was on 0:09:54.120 --> 0:09:56.240 the vand last week in Tampa didn't go well, gave 0:09:56.320 --> 0:09:58.440 up two home runs. He had an MRI, then got 0:09:58.440 --> 0:10:01.360 a second opinion. Now wi see Cole in a Yankee 0:10:01.400 --> 0:10:04.920 uniform until sometime in the summer of twenty twenty six. 0:10:05.040 --> 0:10:07.640 The Jets having new quarterback. It's twenty six year old 0:10:07.760 --> 0:10:10.640 Justin Field. Spent three years in Chicago. This past season 0:10:10.679 --> 0:10:13.720 with Pittsburgh Steelers wanted him back. He chose instead to 0:10:13.800 --> 0:10:16.680 throw passes to his former Ohio State teammate, Garrett Wilson. 0:10:16.720 --> 0:10:19.760 It may end up being a swap of quarterbacks with 0:10:19.840 --> 0:10:23.200 the Jets. Fields is replacing Aaron Rodgers word as Rogers 0:10:23.320 --> 0:10:26.360 could be closestunting with the Steelers. Sam Darnold cashed in 0:10:26.480 --> 0:10:29.480 on his breakout season in Minnesota, three year, one hundred 0:10:29.520 --> 0:10:31.400 million dollars deal to play QB in Seattle. 0:10:31.640 --> 0:10:33.959 The Giants still the end of quarterback. They did add. 0:10:33.760 --> 0:10:36.840 Three free agents and they re signed white out Darius Slayton. 0:10:36.880 --> 0:10:39.760 The next with a quick start in Sacramento, Big. 0:10:39.679 --> 0:10:44.679 Bride on heaters, somebody pull out the fire extinguisher. Douce 0:10:44.800 --> 0:10:48.600 now with fifteen that it comes to smak Prime still 0:10:48.640 --> 0:10:53.120 has not missed the shotout here tonight lot givin go 0:10:53.400 --> 0:10:56.480 when the Kings have given up thirty seven year in 0:10:56.559 --> 0:10:57.640 the first quarter. 0:10:57.520 --> 0:10:59.760 On NBA TV. The next coast at all night, they've 0:10:59.800 --> 0:11:02.120 beat z acra Mana one thirty three to one oh 0:11:02.160 --> 0:11:04.520 four to three. Nick scored more than twenty McBride Carling 0:11:04.520 --> 0:11:07.240 Anthony Towns and og Anenobian Brooklyn and next end of 0:11:07.240 --> 0:11:09.280 a seven game losing, the Street beat the Lakers one eleven, 0:11:09.320 --> 0:11:11.199 one oh eight. The Celtics beat the Jazz one four. 0:11:12.160 --> 0:11:14.840 John Stashley that we're Bloomberg Sports. Karen Lincoln. 0:11:16.760 --> 0:11:20.920 Coast to coast on Bloomberg Radio nationwide on Sirius XAM 0:11:21.040 --> 0:11:23.880 and around the world on Bloomberg dot com and the 0:11:23.920 --> 0:11:27.000 Bloomberg Business app. This is Bloomberg Daybreak. 0:11:27.160 --> 0:11:27.600 Good morning. 0:11:27.640 --> 0:11:30.280 I'm Nathan Hager, and we are seeing futures bounce back 0:11:30.360 --> 0:11:32.719 this morning from one of the biggest multi day selloffs 0:11:32.760 --> 0:11:35.400 on Wall Street in years. The SMP five hundred just 0:11:35.520 --> 0:11:38.800 yesterday fell two point seven percent, nearing a correction. The 0:11:38.840 --> 0:11:42.000 tech heavy Nasdaq is already there, and many analysts are 0:11:42.000 --> 0:11:45.840 readjusting their bullish views, with tariffs and government spending cuts 0:11:45.840 --> 0:11:48.199 adding to fears that the US could be headed for 0:11:48.240 --> 0:11:51.400 an economic slowdown. Joining us this morning is Baired investment 0:11:51.520 --> 0:11:53.360 strategist Ross Mayfield. 0:11:53.520 --> 0:11:56.600 Ross, Good morning. Are you changing your view on this economy? 0:11:57.320 --> 0:11:58.960 Yeah, I think you have to a little bit. Right. 0:11:59.240 --> 0:12:01.199 You come in with and then you take a look 0:12:01.200 --> 0:12:04.439 at what's actually occurring, and you have to readjust the bit. 0:12:04.600 --> 0:12:07.040 I wouldn't say that we're in the recession camp yet, 0:12:07.080 --> 0:12:11.280 but I think an economic slowdown is likely, if only 0:12:11.320 --> 0:12:13.040 because you know, we're at the middle of the late 0:12:13.080 --> 0:12:15.920 point of the cycle and the Trump administration is clearly 0:12:17.360 --> 0:12:19.280 more bite than bark when it comes to the tariffs. 0:12:19.320 --> 0:12:21.079 So far, so you kind of have to readjust your 0:12:21.080 --> 0:12:22.640 priors for what growth could be. 0:12:22.880 --> 0:12:24.680 Now, what do you make of the selloff that we've 0:12:24.679 --> 0:12:27.480 seen over the last few days, this eight point six 0:12:27.559 --> 0:12:29.800 percent plunge in the S and P five hundred in 0:12:29.880 --> 0:12:31.119 just the last few days. 0:12:31.760 --> 0:12:33.880 Yeah, I mean, I think the first obvious thing is 0:12:33.920 --> 0:12:37.120 to look at the economic growth scare, the potential for 0:12:37.600 --> 0:12:41.440 tariffs and broader and wider tariffs and previously we're expected, 0:12:41.960 --> 0:12:43.840 and then also look at well, you know, the set 0:12:43.880 --> 0:12:45.640 has the dry powder to come to the rescue, but 0:12:45.679 --> 0:12:47.320 are they going to be willing to if they think 0:12:47.320 --> 0:12:50.439 tariffs are inflationary? So all that makes sense, but then 0:12:50.440 --> 0:12:52.319 you have to look at the driver of the selloff 0:12:52.400 --> 0:12:54.600 and look to the mag seven and kind of wonder 0:12:54.640 --> 0:12:57.040 how big Tech is caught up in any of that. 0:12:57.120 --> 0:13:01.559 I mean, they're largely economic growth agnostic, they're not particularly 0:13:01.640 --> 0:13:04.800 tariff sensitive, So what's driving that? I mean, you could 0:13:04.840 --> 0:13:07.520 say valuation, You could take a look at the Japanese 0:13:07.600 --> 0:13:09.679 yen and see the rise there, and look at the 0:13:10.120 --> 0:13:12.800 carry trades all off we saw last August, But the 0:13:12.840 --> 0:13:15.320 reality is it's probably just a combination of all the above. 0:13:15.760 --> 0:13:18.199 A bad moment for markets. But a healthy correction that's 0:13:18.200 --> 0:13:19.800 going to reset sentiment a bit as well. 0:13:19.960 --> 0:13:22.360 Does that point to a buying opportunity for the tech 0:13:22.400 --> 0:13:25.120 stocks that had been fueling the rally for so long? 0:13:25.480 --> 0:13:27.559 I think it totally depends on time frame. I mean, 0:13:27.600 --> 0:13:30.360 technically they look pretty broken, or at least most of 0:13:30.360 --> 0:13:34.160 them do. But over a one plus year time horising, yeah, 0:13:34.240 --> 0:13:36.640 would I would still be adding to secular growth themes 0:13:36.679 --> 0:13:39.680 like AI. I think if we're hitting a period where 0:13:39.840 --> 0:13:42.439 US economic growth is coming back to trend and we're 0:13:42.480 --> 0:13:45.400 still in this higher for longer rate environment, I want 0:13:45.440 --> 0:13:48.120 to be buying the high quality companies that are still 0:13:48.120 --> 0:13:50.880 bringing their own kind of growth themes to the table. 0:13:51.320 --> 0:13:54.000 I still very much think AI is one of those. 0:13:54.160 --> 0:13:57.640 Over the next half decade decade plus, you just have 0:13:57.720 --> 0:13:59.520 to have the time horising to ride out what could 0:13:59.520 --> 0:14:01.280 be more weakness in the near term. 0:14:01.280 --> 0:14:04.320 Talking about timing, we heard from Kevin Hassett over at 0:14:04.360 --> 0:14:07.320 the White House saying that he expected a negative first 0:14:07.400 --> 0:14:10.760 quarter with tariffs and President Biden's policies, but he says 0:14:10.800 --> 0:14:13.720 the second quarter is going to take off with tax cuts. 0:14:13.720 --> 0:14:15.440 Should investors be pricing that in? 0:14:16.840 --> 0:14:20.360 You know, I do think that the potential for tax 0:14:20.440 --> 0:14:22.520 cuts has been pushed to the back burner. You know, 0:14:22.560 --> 0:14:26.160 the first Trump administration, this this calculus was reversed. We 0:14:26.200 --> 0:14:28.720 got the tax cuts. In twenty seventeen, markets had one 0:14:28.720 --> 0:14:30.400 of the best and kind of calm mist years in 0:14:30.480 --> 0:14:33.200 recent memory, and then twenty eighteen was very valid on 0:14:33.200 --> 0:14:35.760 the back of the trade war. I mean, look, if 0:14:35.760 --> 0:14:37.720 we got to the second quarter and a lot of 0:14:37.760 --> 0:14:41.880 the trade and tariff policy was at very least settled, right, 0:14:42.120 --> 0:14:44.880 I do even think that most companies would be fine 0:14:44.960 --> 0:14:49.240 with tariffs or you know, some level of import duty 0:14:49.560 --> 0:14:51.360 if they just knew the rules of the game and 0:14:51.400 --> 0:14:53.320 then could move on to focus on the things about 0:14:53.320 --> 0:14:56.120 the Trump administration that they liked so so much in 0:14:56.200 --> 0:14:59.920 the you know, immediate post election euphoria, which was deregular, 0:15:00.680 --> 0:15:04.400 the potential for tax cuts, lower energy prices. So if 0:15:04.440 --> 0:15:06.160 we could just get some tear of certainty and move 0:15:06.200 --> 0:15:08.040 on to the second quarter, I think the market would 0:15:08.040 --> 0:15:08.960 welcome that for sure. 0:15:09.560 --> 0:15:12.280 In our last thirty seconds, really interesting call from City 0:15:12.320 --> 0:15:16.080 Group downgrading US stocks raising China to overweight. 0:15:16.320 --> 0:15:17.440 Is that the right call? 0:15:18.280 --> 0:15:20.800 I mean, that's certainly the momentum trade right now, You've 0:15:20.800 --> 0:15:23.480 got a lot of momentum behind Europe and China, and 0:15:23.520 --> 0:15:26.200 you're losing momentum in the US. But I still think 0:15:26.240 --> 0:15:29.400 over a one plus your time horison. If you're thinking strategically, 0:15:29.960 --> 0:15:32.320 US is where the economic growth is and so far 0:15:32.440 --> 0:15:35.440 most of them move up across the seas and at home. 0:15:35.760 --> 0:15:38.800 Down is about valuation and not relative earnings growth, So 0:15:38.840 --> 0:15:39.760 I with them. 0:15:39.840 --> 0:15:42.720 This is Bloomberg day Break, your morning podcast on the 0:15:42.800 --> 0:15:46.320 stories making news from Wall Street to Washington and beyond. 0:15:46.560 --> 0:15:48.960 Look for us on your podcast feed by six am 0:15:49.000 --> 0:15:52.400 Eastern each morning, on Apple, Spotify, or manywhere else you listen. 0:15:52.640 --> 0:15:55.480 You can also listen live each morning starting at five 0:15:55.520 --> 0:15:58.120 am Wall Street time on Bloomberg eleven three to zero 0:15:58.240 --> 0:16:02.160 in New York, Bloomberg one in Washington, Bloomberg ninety two 0:16:02.200 --> 0:16:06.040 to nine in Boston, and nationwide on serious XM Channel 0:16:06.120 --> 0:16:06.880 one twenty one. 0:16:07.280 --> 0:16:10.040 Plus listen coast to coast on the Bloomberg Business app 0:16:10.080 --> 0:16:12.840 now with Apple CarPlay and Android Atto interfaces. 0:16:13.080 --> 0:16:16.120 And don't forget to subscribe to Bloomberg News Now. It's 0:16:16.120 --> 0:16:18.880 the latest news whenever you want it in five minutes 0:16:18.960 --> 0:16:22.080 or less. Search Bloomberg News Now on your favorite podcast 0:16:22.120 --> 0:16:26.280 platform to stay informed all day long. I'm Karen Moscow. 0:16:26.080 --> 0:16:27.040 And I'm Nathan Hager. 0:16:27.200 --> 0:16:29.280 Join us again tomorrow morning for all the news you 0:16:29.320 --> 0:16:32.080 need to start your day right here on Bloomberg Daybreak