Putin Warns Russia Won’t Stop; Apple & Alphabet in Blockbuster AI Talks

Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan 0:00:12.160 --> 0:00:15.120 Hager and I'm Karen Moscow. Here are the stories we're 0:00:15.160 --> 0:00:15.960 following today. 0:00:16.640 --> 0:00:20.480 We begin with politics around the world. A defiant Vladimir 0:00:20.520 --> 0:00:24.200 Putin says Russia will not be stopped from pursuing its goals. 0:00:24.520 --> 0:00:27.000 That's after Putin swept to a record victory in a 0:00:27.080 --> 0:00:31.240 presidential election whose outcome was predetermined. Putin, who is seventy 0:00:31.280 --> 0:00:34.560 one years old and had no credible opponent, spoke after 0:00:34.640 --> 0:00:37.640 results showed him with more than eighty seven percent support 0:00:37.680 --> 0:00:40.919 from voters, and he now gets another six years as president. 0:00:41.159 --> 0:00:43.559 And we get more from Bloomberg's Rosalind Matheson. 0:00:43.960 --> 0:00:46.760 For him, having those two numbers that he can talk about, 0:00:46.800 --> 0:00:49.760 which is the overall win rate for him, but also 0:00:49.840 --> 0:00:54.680 the turnout across Russia is certainly something that he is touting. 0:00:54.720 --> 0:00:57.840 But his speech itself was quite defined again talking to 0:00:57.880 --> 0:01:00.720 those messages he's been saying for a while to people 0:01:00.760 --> 0:01:04.360 inside Russia, the sense that Russia is under siege from 0:01:04.360 --> 0:01:08.600 the outside, fundamentally under attack from the West, and that 0:01:08.680 --> 0:01:12.319 he's the only person who can help Russia stand proudly 0:01:12.400 --> 0:01:15.480 again those words that he said, people want to suppress us. 0:01:15.800 --> 0:01:18.080 They've not succeeded. They won't succeed now. 0:01:18.240 --> 0:01:21.320 Bloomberg's Ros Mathieson says turnout from three days of voting 0:01:21.400 --> 0:01:24.000 was more than seventy four percent. That's the highest since 0:01:24.080 --> 0:01:27.560 Boris Yeltsen became president in nineteen ninety one after the 0:01:27.600 --> 0:01:29.039 collapse of the Soviet Union. 0:01:29.600 --> 0:01:31.920 Now Nathan the latest on the war in the Middle East. 0:01:32.000 --> 0:01:35.039 Israeli Prime Minister Benjamin Nettan Yeah, who is pushing back 0:01:35.120 --> 0:01:39.040 on Senate Majority Leader Chuck Schumer's call for an Israel election, 0:01:39.160 --> 0:01:41.319 And Bloomberg's Ed Baxter has the story. 0:01:41.760 --> 0:01:44.440 Matt Yahoo first says the aid issue to Gaza is 0:01:44.520 --> 0:01:48.000 complicated because when it does get in, Hamas salutes it 0:01:48.240 --> 0:01:51.240 and uses it for its own gain. And on CNN 0:01:51.320 --> 0:01:54.120 he says majority of Israeli support the government anyway. 0:01:54.440 --> 0:01:58.360 I think what he said is totally inappropriate. It's inappropriate 0:01:59.720 --> 0:02:02.360 to goe to a sister democracy and try to replace 0:02:02.400 --> 0:02:05.800 the elected leadership there. That's something that Israel Israeli public 0:02:05.840 --> 0:02:08.360 does on its own, and we're not a banana republic. 0:02:08.639 --> 0:02:11.760 Ntt Yahu also says its forces are trying to be careful, 0:02:11.840 --> 0:02:15.760 but that the move to remove Hamas will continue Ed 0:02:15.800 --> 0:02:17.320 Baxter Bloomberg Radio. 0:02:17.080 --> 0:02:19.679 All right, Ed, thank you. Sticking with geopolitics, Secretary of 0:02:19.760 --> 0:02:22.720 State Anthony Blincoln is warning the disinformation is threatening this 0:02:22.840 --> 0:02:26.000 year's free and fair elections around the world. 0:02:25.960 --> 0:02:30.200 As authoritarian and repressive regimes deploy technologies to undermine democracy 0:02:30.200 --> 0:02:30.880 and human rights. 0:02:31.200 --> 0:02:31.640 We need to. 0:02:31.680 --> 0:02:36.800 Ensure that technology sustains and supports democratic values and norms. 0:02:36.840 --> 0:02:39.760 Speaking in South Korea at the Third Summit for Democracy, 0:02:39.880 --> 0:02:43.520 Secretary Blincoln seid authoritarian governments like China and Russia will 0:02:43.560 --> 0:02:47.120 try to leverage generative AI technologies to meddle in democratic 0:02:47.160 --> 0:02:50.040 elections this year, including in the US and the UK. 0:02:50.800 --> 0:02:54.320 Well another political news Nathan Former President Donald Trump held 0:02:54.360 --> 0:02:57.480 a rally over the weekend in Dayton, Ohio for Republican 0:02:57.600 --> 0:03:01.639 Senate candidate Bernie Moreno. Threatens to impose one hundred percent 0:03:01.720 --> 0:03:04.799 tariffs on Chinese cars made in Mexico if he's elected. 0:03:05.000 --> 0:03:06.800 He went on to see this, now. 0:03:06.720 --> 0:03:08.720 If I don't get elected, it's going to be a 0:03:08.760 --> 0:03:11.480 bloodbath for the whole That's going to be the least 0:03:11.520 --> 0:03:11.760 of it. 0:03:11.760 --> 0:03:13.600 It's going to be a blood bath for the country. 0:03:13.600 --> 0:03:14.640 That'll be the least of it. 0:03:15.000 --> 0:03:17.720 Democrats were quick to s he's on those comments. Former 0:03:17.720 --> 0:03:20.720 House Speaker and Nancy Pelosi reacted on the CNN State 0:03:20.760 --> 0:03:23.160 of the Union, we just have to win this election. 0:03:23.320 --> 0:03:25.720 Because he's even predicting a bloodbath. 0:03:25.840 --> 0:03:28.240 What does that mean He's going to exact a bloodbath. 0:03:28.880 --> 0:03:32.919 There's something wrong here. A Republican Congressman, Mike Turner says 0:03:32.960 --> 0:03:36.400 the former president was not predicting political violence. 0:03:36.720 --> 0:03:40.720 The president's statements concerning bloodbath were about what would happen 0:03:40.720 --> 0:03:44.000 in the auto industry if actually the Chinese manufacturers who 0:03:44.040 --> 0:03:48.040 are coming into Mexicogo were permitted to import into the 0:03:48.160 --> 0:03:48.760 United States. 0:03:49.080 --> 0:03:52.320 Congressman Mike Turner made those comments on EBC's This Week 0:03:52.360 --> 0:03:54.960 Heard Every Sunday on Bloomberg Radio Now. 0:03:54.880 --> 0:03:58.520 Karen Too a Bloomberg News exclusive. Apple is in talks 0:03:58.560 --> 0:04:03.000 to build Google's Gemini artificial intelligence engine into the iPhone. 0:04:03.240 --> 0:04:06.280 Sources say the two companies are in active negotiations to 0:04:06.360 --> 0:04:09.640 let Apple licensed Gemini Google set of generative AI models 0:04:09.800 --> 0:04:12.840 to power some new features coming to iPhone software this year. 0:04:13.120 --> 0:04:16.520 Bloomberg technology reporter Mark German says the deal would shake 0:04:16.640 --> 0:04:18.520 up the artificial intelligence world. 0:04:18.839 --> 0:04:22.640 This would be a blockbuster agreement that has the potential 0:04:22.640 --> 0:04:27.440 to transform this still growing AI industry. Apple has been 0:04:27.480 --> 0:04:31.680 working on several new AI tools and services for iosaighteen 0:04:31.720 --> 0:04:34.320 effects of iPhone software update. Those are going to be 0:04:34.320 --> 0:04:37.279 based on Apple's homegrown AI models that Apple needs a 0:04:37.320 --> 0:04:40.760 partner for generative AI, that is the AI that all 0:04:40.800 --> 0:04:42.320 of us have been talking about for months. 0:04:42.440 --> 0:04:44.880 Bloomberg's Mark German says the deal would expand the two 0:04:44.960 --> 0:04:48.360 company search partnership as well. For years, Google's paid Apple 0:04:48.440 --> 0:04:51.240 billions to make its search engine the default option in 0:04:51.279 --> 0:04:54.640 the Safari web browser on iPhone and other devices. Shares 0:04:54.640 --> 0:04:56.920 of Alphabet are up more than two percent in the 0:04:56.920 --> 0:04:59.440 early trade, while Apple is hired by a half percent. 0:05:00.080 --> 0:05:02.360 Well, we turn to the economy now, Nathan the Fed. 0:05:02.400 --> 0:05:05.520 It leads a busy week for global policy decisions, and 0:05:05.520 --> 0:05:07.920 we get a preview from Bloomberg's Michael McKee. 0:05:08.120 --> 0:05:10.400 It's a big week for central bankers and those who 0:05:10.440 --> 0:05:13.400 invest on them. The Bank of Japan is the main event. 0:05:13.640 --> 0:05:16.400 Its governors have been inching ever closer to raising interest 0:05:16.480 --> 0:05:19.000 rates for the first time since two thousand and seven. 0:05:19.360 --> 0:05:21.800 While they may not go that far this week, they 0:05:21.800 --> 0:05:24.839 could end the purchase of stockytfs for their balance sheet 0:05:25.240 --> 0:05:27.880 or suggest the end of yield curve control as a 0:05:27.960 --> 0:05:30.919 rate strategy. Either could have a major impact on the 0:05:31.080 --> 0:05:33.760 en dollar rate. The Fed isn't going to move rates, 0:05:33.800 --> 0:05:36.599 but investors will be watching to see if US Central 0:05:36.640 --> 0:05:41.640 Bank officials increase their inflation forecasts or decrease the number 0:05:41.640 --> 0:05:44.039 of rate cuts they put into their dot plot. The 0:05:44.080 --> 0:05:46.760 Bank of England is also on hold. Growth has picked 0:05:46.839 --> 0:05:50.039 up an inflation come down some, but markets don't see 0:05:50.040 --> 0:05:54.240 an immediate rate cut on the horizon. Michael McKee, Bloomberg Radio. 0:05:54.040 --> 0:05:56.080 All right, Mike, thanks, We got some new economic data 0:05:56.080 --> 0:05:59.560 out of China. Industrial output and investment grew more strongly 0:05:59.600 --> 0:06:02.320 than at the start of the year. Bloomberg Daybreak Asia 0:06:02.320 --> 0:06:04.360 anchor Brian Curtis has more from Hong Kong. 0:06:04.720 --> 0:06:08.200 Factory output rose seven percent in January and February from 0:06:08.240 --> 0:06:10.760 the same period last year, and that was faster than 0:06:10.839 --> 0:06:14.200 an estimate of five point two percent. Fixed asset investment 0:06:14.240 --> 0:06:17.960 grew four point two percent, also better than forecast. Now, 0:06:18.000 --> 0:06:21.760 those numbers suggest the economy is gaining some traction. On 0:06:21.800 --> 0:06:24.839 the other hand, consumer spending is proving somewhat more elusive. 0:06:25.200 --> 0:06:28.839 Retail sales up five and a half percent, roughly in line. 0:06:29.040 --> 0:06:33.080 Consumer confidence is still weighed down by uncertainties over income 0:06:33.440 --> 0:06:35.520 in Hong Kong. Brian Curtis, Bloomberg Radio. 0:06:35.720 --> 0:06:40.880 All right, Brian, thank you, and it's time now for 0:06:40.920 --> 0:06:43.040 a look at some of the other stories making news 0:06:43.080 --> 0:06:45.600 in New York and around the world. For that, we're 0:06:45.640 --> 0:06:49.080 joined by Bloomberg's Michael Barr. Michael, good morning, Good morning Karen. 0:06:49.160 --> 0:06:52.640 Today the Supreme Court, we'll hear arguments in the National 0:06:52.760 --> 0:06:58.600 Rifle Association versus the Vello. The NRA alleges that the 0:06:58.600 --> 0:07:01.880 New York State Department of Finance Services violated the group's 0:07:01.960 --> 0:07:06.040 right to freedom of speech by urging banks and insurance 0:07:06.120 --> 0:07:09.600 companies to cut ties with the group. The question is 0:07:09.640 --> 0:07:12.960 whether a state government regulator can tell state banks and 0:07:13.080 --> 0:07:18.200 insurance companies not to underwrite insurance contracts for members because 0:07:18.240 --> 0:07:22.320 the risks presented by school shootings and the bad pr 0:07:22.480 --> 0:07:25.320 that it brings. One person is dead, two other people 0:07:25.320 --> 0:07:29.720 are in stable condition after shots were fired in Jacksonville Beach, Florida. 0:07:30.200 --> 0:07:32.960 Jacksonville Beach Mayor Christine Hoffman, this. 0:07:32.840 --> 0:07:35.560 Is player's weekend at Saint Patrick's Day. It's spring break. 0:07:35.560 --> 0:07:37.440 We have a lot going on out here, so the 0:07:37.480 --> 0:07:39.600 fact that we had a couple of bad actors out 0:07:39.600 --> 0:07:44.160 here that really made a dangerous situation for everyone is 0:07:44.360 --> 0:07:45.680 extremely tragic. 0:07:45.960 --> 0:07:48.920 Police say they are looking for multiple suspects after one 0:07:49.440 --> 0:07:52.520 or more of the shooters opened fire in a crowded 0:07:52.560 --> 0:07:55.600 outdoor area. The White House is urging the Senate to 0:07:55.640 --> 0:07:58.120 pass a bill that would force the sale of TikTok. 0:07:58.560 --> 0:08:02.080 The measure passed in the House with support from lawmakers 0:08:02.160 --> 0:08:05.520 and both parties. TikTok is owned by Chinese parent company 0:08:05.600 --> 0:08:08.680 bike Dance. Supporters of the bill say it would protect 0:08:08.760 --> 0:08:11.640 the data of TikTok's more than one hundred and fifty 0:08:11.720 --> 0:08:15.720 million users in the US from Chinese Community Party influence. 0:08:15.800 --> 0:08:20.560 But Democratic Congressman Rocana, who represents Silicon Valley and voted 0:08:20.600 --> 0:08:25.120 against TikTok bill, said concerns about CCP influence are misguided. 0:08:25.480 --> 0:08:28.480 Bike Dance is a Chinese company. It has sixty percent 0:08:28.880 --> 0:08:33.680 international investors, including KKR and General Atlantic. Three of the 0:08:33.880 --> 0:08:38.000 five board members are Americans. They have data that currently 0:08:38.080 --> 0:08:40.240 Oracle is managing in Texas. 0:08:40.840 --> 0:08:44.719 Congressman ConA spoke on ABC's This Week Heard Sundays on Bloomberg. 0:08:45.080 --> 0:08:48.080 The Biden administration is rolling out an executive order to 0:08:48.360 --> 0:08:53.240 strengthen women's health research standards across federal agencies. The National 0:08:53.280 --> 0:08:56.600 Science Foundation and Department of Health and Human Services are 0:08:56.640 --> 0:09:01.280 instructed to research ways to use artificial intelligence toward advancing 0:09:01.320 --> 0:09:05.360 women's health research. It also directs the HHS to expand 0:09:05.440 --> 0:09:09.760 data collection on women's midlife health and mental clause related research. 0:09:10.200 --> 0:09:13.240 Australians will soon be able to enjoy twenty six weeks 0:09:13.440 --> 0:09:17.240 of paid parental leave. Trade Union's president Michelle O'Neil SAIDs 0:09:17.240 --> 0:09:18.480 it's a win win situation. 0:09:18.880 --> 0:09:22.319 If you're able to stop work and receive pay, you're 0:09:22.360 --> 0:09:25.319 more likely to stay connected to your workplace. 0:09:25.960 --> 0:09:28.640 The new deal will be gradually introduced over the next 0:09:28.679 --> 0:09:31.280 three years. Global News twenty four hours a day, whenever 0:09:31.320 --> 0:09:33.360 you want it with Bloomberg News Now. I'm Michael Barr. 0:09:33.480 --> 0:09:34.480 This is Bloomberg. 0:09:34.520 --> 0:09:41.520 Karen, Sorry, Michael, thank you. It's time now for the 0:09:41.559 --> 0:09:45.079 Bloomberg Sports Update, brought to you by Tri State Audi, 0:09:45.160 --> 0:09:47.280 and for that we bring in John stash Hour. John, 0:09:47.320 --> 0:09:48.560 good morning, Good morning. Karen. 0:09:48.600 --> 0:09:51.640 Thrilling finished to the players Championship if any champs. Scottie 0:09:51.640 --> 0:09:54.880 Scheffler went out early, caught fire shot sixty four, got 0:09:54.920 --> 0:09:57.000 to twenty under part to take the leader, then waited 0:09:57.000 --> 0:09:59.760 to see if anyone could catch them. Three golfers went 0:09:59.840 --> 0:10:02.079 to a seventy second hole, one shot behind it in 0:10:02.240 --> 0:10:05.559 a birdie. All three settled for parts, including Wyndham Clark, 0:10:05.559 --> 0:10:08.319 who's pot was seemingly in the hole, and then it 0:10:08.440 --> 0:10:10.520 was in Scheffler, the first ever repeat winner. 0:10:10.840 --> 0:10:12.719 I needed some help obviously going in today if I 0:10:12.760 --> 0:10:14.720 wanted to win the tournament, and I felt like if 0:10:14.720 --> 0:10:16.280 I could go out and shoot a good, good round 0:10:16.280 --> 0:10:17.720 on the front nine, I could put myself in it 0:10:17.720 --> 0:10:19.120 as long as you know, one of them didn't shoot 0:10:19.120 --> 0:10:20.600 you know, four or five hundred on the front as well. 0:10:20.960 --> 0:10:23.559 And so the birdie on nine was huge, and you know, 0:10:23.600 --> 0:10:25.600 I was right right in the tournament the whole back nine. 0:10:25.679 --> 0:10:28.080 Meanwhile, a meeting planned for today is sit down between 0:10:28.080 --> 0:10:30.960 the PGA Tour players board that includes Tiger Woods and 0:10:31.000 --> 0:10:33.640 the Saudi Yassir Al Ramayan, who heads the fund that 0:10:33.720 --> 0:10:36.720 becks the Live Tour. That deal struck several months ago 0:10:36.760 --> 0:10:40.040 between the two tours not yet official. Tennis Carlos alcaraz 0:10:40.080 --> 0:10:42.400 Strait set in Dadil Medvedev won at Indian Wells for 0:10:42.440 --> 0:10:45.599 the second straight year. Igishyontec took the women's finally, and 0:10:45.679 --> 0:10:49.360 CAA tournament field is set defending champion yukon the top 0:10:49.400 --> 0:10:52.360 overall seat. Saint John's didn't make it. The Bubbles shrunk 0:10:52.800 --> 0:10:56.640 as four conference tournaments were won by teams unexpectedly that 0:10:56.720 --> 0:10:59.160 hurt the Red Storm, who then chose not to play 0:10:59.200 --> 0:11:02.120 the consolation in it at the Garden Rangers with the 0:11:02.160 --> 0:11:04.640 Islanders five to two with five different goal scorers. The 0:11:04.679 --> 0:11:07.320 Devil's lost three one at Vegas, Nets lost in overtime 0:11:07.360 --> 0:11:11.040 at San Antonio. The rookie Victor Weimbinyana scored thirty three 0:11:11.040 --> 0:11:14.679 at fifteen rebounds. The Celtics crushed the Wizards. Nick's played 0:11:14.679 --> 0:11:16.760 tonight at Golden State Nicks for two and zero. On 0:11:16.800 --> 0:11:19.400 this road trip, Jalen Brunson has scored forty five and 0:11:19.520 --> 0:11:23.160 forty two points. Yankees lost the Red Sox twelve to six. 0:11:23.240 --> 0:11:26.000 The Sock scored nine runs in the first inning. John 0:11:26.040 --> 0:11:27.559 Stash Edward Bloomberg Sports. 0:11:27.640 --> 0:11:29.280 I want to get you set for a trading week 0:11:29.280 --> 0:11:33.080 that'll be dominated by central bank policy decisions around the world, 0:11:33.120 --> 0:11:35.320 not the least of which coming from the Federal Reserve. 0:11:35.720 --> 0:11:38.360 We're joined now by Lori Calvacina, ahead of US Equity 0:11:38.400 --> 0:11:41.800 Strategy at RBC Capital Markets. Great to speak with you 0:11:41.880 --> 0:11:44.360 as always, Lourie. It's going to be a very busy week, 0:11:44.400 --> 0:11:46.840 but I want to get right first to your latest 0:11:46.840 --> 0:11:52.400 note looking at energy stocks as potential outperformers in this rally. 0:11:52.440 --> 0:11:54.400 Can you get into that a little bit for us? 0:11:54.880 --> 0:11:57.160 Sure, So thanks for having me as always, And look, 0:11:57.200 --> 0:11:58.800 I think there's just a lot going on in the 0:11:58.880 --> 0:12:01.800 energy space right now. Is obviously got some heightened geopolitical 0:12:01.840 --> 0:12:04.240 tensions and the backdrop the ail trices on the move. 0:12:04.520 --> 0:12:06.320 But when I put that aside and just look at 0:12:06.320 --> 0:12:08.480 our work, you know, the thing that's been coming up 0:12:08.520 --> 0:12:10.520 in my meetings there the past week is just there's 0:12:10.559 --> 0:12:13.760 all this worry about the said and inflation being sticky 0:12:13.800 --> 0:12:16.040 out there again, big topic of conversation. 0:12:16.200 --> 0:12:17.560 How do you play that well? 0:12:17.679 --> 0:12:20.480 Energy is one of the sectors that tends to actually 0:12:20.480 --> 0:12:23.800 outperform when ten year yields are rising. So we left 0:12:23.800 --> 0:12:26.080 our overweight on this year. It was somewhat of a 0:12:26.160 --> 0:12:29.120 controversial decision, but we said at the time that we 0:12:29.160 --> 0:12:31.560 really viewed it as an inflation hedge in our portfolio. 0:12:31.679 --> 0:12:34.560 We like the enthusiasm, our analysts, we like the evaluations, 0:12:34.800 --> 0:12:37.160 and so it's interesting to see you're really starting to 0:12:37.200 --> 0:12:39.480 see this sector move all of a sudden, and it's 0:12:39.520 --> 0:12:41.640 really kind of functioning in our portfolio, is the way 0:12:41.720 --> 0:12:43.760 we intend it to the start the year in case 0:12:43.800 --> 0:12:45.240 this inflation risk came back. 0:12:45.760 --> 0:12:47.920 Do you think then that energy could be a leader 0:12:48.000 --> 0:12:50.520 for the rally, that we could see a shift away 0:12:50.920 --> 0:12:54.280 from the megacap tech names that have dominated for the 0:12:54.360 --> 0:12:55.160 last several months. 0:12:55.960 --> 0:12:57.640 So I think you have to look at both sides 0:12:57.640 --> 0:13:00.120 of that trade, and I do think that energy as 0:13:00.160 --> 0:13:03.719 a natural beneficiary if that rotation trade, you know, does 0:13:03.760 --> 0:13:05.880 sort of resume in a sustainable way. And there are 0:13:06.000 --> 0:13:08.920 signs in the data that that rotation trade is really 0:13:08.920 --> 0:13:11.680 trying to get started again, not quite with the same 0:13:11.760 --> 0:13:14.080 kind of power that it had back in November and December, 0:13:14.080 --> 0:13:15.719 but we are seeing, you know, in a lot of 0:13:15.760 --> 0:13:19.000 different quant metrics that we look at, that you're starting 0:13:19.040 --> 0:13:21.320 to see some shift away. And I think energy is 0:13:21.360 --> 0:13:24.800 not really enough on its own to sort of absorb 0:13:24.840 --> 0:13:26.640 all that market cap. So I think there are things 0:13:26.720 --> 0:13:29.480 like small caps, you know, industrials has also been doing 0:13:29.480 --> 0:13:31.760 well of late. Financials is another one to keep an 0:13:31.760 --> 0:13:34.160 eye on. There's a lot of market cap there. But generally, 0:13:34.520 --> 0:13:36.520 I think the market is starting to respond to the 0:13:36.559 --> 0:13:40.040 idea that economic expectations are coming in better than expected 0:13:40.280 --> 0:13:43.040 GDP forecasts up to two point one percent for this year, 0:13:43.360 --> 0:13:45.760 and that really should pull people out of you know, 0:13:45.840 --> 0:13:48.120 kind of more of the defensive secular growth names to 0:13:48.160 --> 0:13:50.520 some extent, and into more cyclical areas of the market. 0:13:50.679 --> 0:13:52.560 Energy would be in that bucket, yeah. 0:13:52.440 --> 0:13:55.680 And that takes us to the policy decision and the 0:13:55.720 --> 0:13:59.480 look ahead to further Federal Reserve policy making for the 0:13:59.480 --> 0:14:01.800 rest of this year. Are you thinking that the Fed 0:14:01.880 --> 0:14:04.640 is going to push back even further on expectations that 0:14:04.960 --> 0:14:07.400 the first rate cut could come even later in the summer. 0:14:08.520 --> 0:14:10.920 So our team is still in the June camp, and 0:14:11.120 --> 0:14:12.679 you know, that has been in line with a lot 0:14:12.679 --> 0:14:14.680 of the messaging that we've seen from the FED with 0:14:14.840 --> 0:14:17.280 for quite some time. So we'll see, of course what 0:14:17.320 --> 0:14:21.160 the commentary shows. You know, I think that the idea 0:14:21.320 --> 0:14:23.280 of kind of March cut, you know that was so 0:14:23.400 --> 0:14:25.800 popular to come into the really sort of mystified me 0:14:25.800 --> 0:14:28.640 where that was coming from but that's obviously kind of undoing. 0:14:28.680 --> 0:14:31.880 That view has been a big focal point for investors 0:14:31.880 --> 0:14:33.720 this year, so our team still thinks they're going to 0:14:33.760 --> 0:14:35.840 move in June. I think, you know, the commentary is 0:14:35.880 --> 0:14:37.960 always of interest to me in terms of just the 0:14:38.040 --> 0:14:41.400 characterization of inflation and the economy. But we'll, you know, 0:14:41.440 --> 0:14:43.240 we'll see how the market reacts. I think there's so 0:14:43.360 --> 0:14:44.920 much anngst that's already been baked in. 0:14:45.680 --> 0:14:47.800 Just to talk a little bit more about that potential 0:14:47.840 --> 0:14:51.960 market reaction, what could the messaging from the FED do 0:14:52.120 --> 0:14:55.240 when it comes to your thinking about large cap versus 0:14:55.240 --> 0:14:58.320 small cap stocks, which, of course small cap is so 0:14:58.440 --> 0:15:02.880 sensitive to what happened in the economic. 0:15:02.400 --> 0:15:05.080 Data now, I think that's important. There are a few 0:15:05.080 --> 0:15:07.560 cross currents for small caps going on now right because 0:15:07.560 --> 0:15:10.400 the hot economy tends to benefit small caps. They do 0:15:10.480 --> 0:15:13.760 tend to be more cyclical and just sort of more 0:15:13.840 --> 0:15:16.200 exposed to those hopes and fears around where the domestic 0:15:16.240 --> 0:15:18.640 economy is headed. But at the same time, small caps 0:15:18.680 --> 0:15:21.200 have really needed rate cuts to kind of get their 0:15:21.200 --> 0:15:25.320 stabilization in versus large cap Historically, we two tend to 0:15:25.360 --> 0:15:27.720 see small caps out perform when the first cuts come 0:15:27.800 --> 0:15:29.760 in and they've pre traded a lot of that back 0:15:29.760 --> 0:15:32.320 in November and December. So I think the cuts are 0:15:32.360 --> 0:15:34.160 the kind of first issue, but I do think the 0:15:34.920 --> 0:15:38.400 economic descriptions matter as well, and so for small caps 0:15:38.400 --> 0:15:40.120 to work, we've really got to see the needle threaded 0:15:40.120 --> 0:15:43.040 where you get the cuts and the economic expectations continue 0:15:43.080 --> 0:15:43.560 to improve. 0:15:46.680 --> 0:15:49.600 This is Bloomberg day Break Today, your morning brief on 0:15:49.640 --> 0:15:53.280 the stories making news from Wall Street to Washington and beyond. 0:15:53.480 --> 0:15:56.240 Look for us on your podcast feed at six am 0:15:56.320 --> 0:15:59.880 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:00.080 --> 0:16:01.120 get your podcasts. 0:16:01.320 --> 0:16:04.040 You can also listen live each morning starting at five 0:16:04.080 --> 0:16:06.720 am Wall Street time on Bloomberg eleven three to zero 0:16:06.720 --> 0:16:09.600 in New York, Bloomberg ninety nine to one in Washington, 0:16:09.680 --> 0:16:12.880 Bloomberg one oh sixty one in Boston, and Bloomberg ninety 0:16:12.920 --> 0:16:14.320 sixty in San Francisco. 0:16:14.680 --> 0:16:17.840 Our flagship New York station is also available on your 0:16:17.880 --> 0:16:23.320 Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus. 0:16:23.360 --> 0:16:26.800 Listen coast to coast on the Bloomberg Business app, SERIUSXM, 0:16:26.880 --> 0:16:30.840 the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager. 0:16:30.920 --> 0:16:34.040 And I'm Karen Moscow. Join us again tomorrow morning for 0:16:34.200 --> 0:16:36.680 all the news you need to start your day right 0:16:36.720 --> 0:16:38.400 here on Bloomberg Daybreak