Market Selloff Ahead of the Holiday; Jensen Huang's Wealth Climb

Bloomberg Audio Studios, podcasts, radio news. 0:00:08.000 --> 0:00:10.160 Conservative, Dat's going to be on hold for longer, healthcare, 0:00:10.160 --> 0:00:12.399 Good morning on John Tucker Off. Here these stories we're 0:00:12.400 --> 0:00:16.079 following today Makeetcaps took a hit except in video, as 0:00:16.079 --> 0:00:19.120 the S and P five hundred closed below fifty three hundred. 0:00:19.440 --> 0:00:21.600 The down Jones industri laverage lost one and a half 0:00:21.640 --> 0:00:24.720 percent of more than six hundred points in yesterday's trading. 0:00:25.160 --> 0:00:27.760 Swaps are now fully pricing in a full quarter point 0:00:27.840 --> 0:00:31.680 rate cut in December versus November. Despite yesterday's sell off. 0:00:31.800 --> 0:00:36.200 Alicia Levine, head of Investment Strategy and Equity Advisors Solutions 0:00:36.440 --> 0:00:39.879 at B and Y Melon Investment Management, is optimistic on 0:00:39.920 --> 0:00:40.760 the stock market. 0:00:40.920 --> 0:00:43.960 We've been very positive on the market now for about 0:00:44.080 --> 0:00:46.960 i'd say fifteen months because there really is very little 0:00:46.960 --> 0:00:49.760 evidence of a fundamental slowdown in the US. Yes, there 0:00:49.760 --> 0:00:53.800 are pockets of pain, the manufacturing base is on an upswing, 0:00:54.320 --> 0:00:58.680 and we know the awesome amount of tech spending that's 0:00:58.720 --> 0:01:02.120 all revenue into the chips, So you know, the earnings 0:01:02.120 --> 0:01:02.720 are awesome. 0:01:02.960 --> 0:01:05.840 Bon why Melon Zalusia Levine says, the better that expected 0:01:05.880 --> 0:01:09.720 growth and fed dubvishness. Putzer year end s and p 0:01:09.720 --> 0:01:13.480 price target at fifty four hundred. As we mentioned in 0:01:13.560 --> 0:01:16.679 Vidio was immunity yesterday's selloff, it serves more than nine 0:01:16.720 --> 0:01:20.040 percent to an all time high. The wealth of Nvidia 0:01:20.080 --> 0:01:23.800 co founder Jensen Wang now greater than each individual member 0:01:23.840 --> 0:01:27.480 of America's richest family. That story this morning from Bloomberg's 0:01:27.520 --> 0:01:28.120 Doug Prisoner. 0:01:28.280 --> 0:01:31.000 Jensen Wong owns three and a half percent of Nvidia. 0:01:31.160 --> 0:01:33.800 Yesterday the stock closed at a record high at roughly 0:01:33.840 --> 0:01:36.600 one thousand and thirty eight dollars a share. This gives 0:01:36.640 --> 0:01:39.440 Wong a net worth of ninety one point three billion 0:01:39.480 --> 0:01:42.800 dollars and now on the Bloomberg Billionaires Index, he is 0:01:42.840 --> 0:01:46.080 the seventeenth richest person in the world, richer than the 0:01:46.120 --> 0:01:50.520 three wealthiest members of Walmart's founding family, the Waltons. And 0:01:50.600 --> 0:01:53.200 Nvidia has been the primary beneficiary of the boom and 0:01:53.320 --> 0:01:57.760 artificial intelligence with its so called AI accelerator chips. The 0:01:57.800 --> 0:02:00.400 company now is a market value above two to have 0:02:00.640 --> 0:02:03.880 trillion dollars in New York. I'm Doug Prisner, Bloomberg Radio. 0:02:03.920 --> 0:02:06.280 All right, thanks Doug. The list of Wall Street banks 0:02:06.360 --> 0:02:09.440 mandating workers get back to the office is growing. We 0:02:09.600 --> 0:02:11.560 get details from Bloomberg's Jeff Bellinger. 0:02:11.600 --> 0:02:15.720 In New York, Citygroup, HSBC and Barclays are ordering more 0:02:15.760 --> 0:02:18.800 staffers to report to company offices five days a week. 0:02:19.080 --> 0:02:23.919 Citygroup is requiring about six hundred US employees previously eligible 0:02:23.960 --> 0:02:27.320 to work remotely to commute to company offices full time, 0:02:27.720 --> 0:02:31.720 and HSBC shifting regulations effect about five hundred and thirty 0:02:31.760 --> 0:02:34.639 staff in New York, roughly half of its workforce in 0:02:34.720 --> 0:02:38.680 the city, and Barclays will require thousands of investment banking 0:02:38.720 --> 0:02:41.320 staff globally to spend five days a week in the 0:02:41.320 --> 0:02:44.720 office or traveling to see clients. The banks were among 0:02:44.800 --> 0:02:48.600 wall streets more flexible in allowing employees to continue working 0:02:48.639 --> 0:02:52.360 remotely after the pandemic. The changes come as the Financial 0:02:52.440 --> 0:02:57.400 Industry Regulatory Authority, the US brokerage industry's main watchdog, is 0:02:57.440 --> 0:03:01.880 set to reinstate pre pandemic rule for monitoring workplaces in 0:03:01.919 --> 0:03:05.800 the coming weeks. In New York. Jeff Bellinger, Bloomberg Radio 0:03:05.960 --> 0:03:06.720 and Thanks Jeff. 0:03:06.880 --> 0:03:09.800 Another banking note this morning, Namura Holdings has more than 0:03:09.840 --> 0:03:13.440 double pay for its top managers as earnings at Japan's 0:03:13.520 --> 0:03:18.360 largest brokerage rebounded on booming domestic markets. The total compensation 0:03:18.440 --> 0:03:21.760 paid to the firm's eight executive officers rose one hundred 0:03:21.760 --> 0:03:25.040 and fifty percent of more than twenty eight million dollars. 0:03:25.680 --> 0:03:28.240 Finance ministers and central bank governors from the Group of 0:03:28.280 --> 0:03:31.680 Seven Nations gathering in Italy. This comes before the leader's 0:03:31.680 --> 0:03:35.440 summit in June, which Ukraine President Vladimir Zelenski is extended 0:03:35.480 --> 0:03:38.800 to attend. Now Bloomberg's Oliver Crook is covering the meeting 0:03:38.840 --> 0:03:39.400 in Italy. 0:03:39.960 --> 0:03:42.760 The G seven really needs to show unity, particularly on 0:03:42.800 --> 0:03:44.760 the question of Ukraine. I mean, Jenney Yellen was saying 0:03:44.800 --> 0:03:47.400 this yesterday that Putin is waging a war of attrition, 0:03:47.680 --> 0:03:49.560 and they really need to show that they're in here 0:03:49.600 --> 0:03:52.360 for the long haul, and they can reassure Ukraine that 0:03:52.400 --> 0:03:55.800 its war funding is on sound foot is on sound 0:03:55.840 --> 0:03:58.000 footing for really not just this year, but also the 0:03:58.080 --> 0:03:58.640 years to come. 0:03:59.000 --> 0:04:03.000 Bloomberg's Oliver Cruk also says China's trade practices will also 0:04:03.160 --> 0:04:06.200 be on the agenda. The White House has responded to 0:04:06.280 --> 0:04:11.360 Senate Republicans who blocked a bipartisan border security bill. Bloomberg's 0:04:11.400 --> 0:04:13.320 Amy Morris reports from Washington. 0:04:13.640 --> 0:04:16.640 In a written statement, President Biden said if Republicans cared 0:04:16.640 --> 0:04:18.880 about securing the border. They would have voted for the bill. 0:04:19.120 --> 0:04:21.880 Senate Majority Leader Chuck Schumer after the vote. 0:04:21.680 --> 0:04:23.839 I understand that bill was not going to win every 0:04:23.880 --> 0:04:26.800 Democratic vote or every single Republican vote. 0:04:26.839 --> 0:04:29.320 That's what bipartisanship is. It's a compromise. 0:04:29.440 --> 0:04:33.560 Six Democrats joined Republicans in blocking the measure, including California 0:04:33.560 --> 0:04:34.719 Senator Alex Padia. 0:04:34.880 --> 0:04:39.479 It includes arbitrary board enclosures and to practically eliminate the 0:04:39.560 --> 0:04:43.039 right to seek asylum for people fleeing for their safety. 0:04:43.200 --> 0:04:45.760 And even if it had passed the Senate, Republican leaders 0:04:45.760 --> 0:04:47.560 have made it clear the bill would have been dead 0:04:47.560 --> 0:04:51.320 on arrival in the House. In Washington, Amy Morris, Bloomberg Radio, and. 0:04:51.360 --> 0:04:54.520 A growing number of Americans maybe thinking that college is 0:04:54.560 --> 0:04:56.960 not worth it. Let's get more In this report from 0:04:56.960 --> 0:04:58.400 Bloomberg's and Baxter. 0:04:58.600 --> 0:05:01.799 Close to thirty percent a college degree is not worth 0:05:01.800 --> 0:05:05.880 the expense. The new peupole also says almost half of 0:05:05.920 --> 0:05:09.839 those surveyed think it is helpful, but only as long 0:05:10.120 --> 0:05:12.800 as they don't need to take out a loan. But 0:05:12.960 --> 0:05:15.960 only twenty two percent say a college degree is worth 0:05:15.960 --> 0:05:19.839 it even with a student debt. Four and ten say 0:05:19.880 --> 0:05:22.360 it is not at all important and getting a good 0:05:22.440 --> 0:05:25.599 job now. A recent report from the FED showed most 0:05:25.640 --> 0:05:29.560 sea education as a path to greater financial well being 0:05:30.120 --> 0:05:30.760 at Baxter. 0:05:30.800 --> 0:05:33.520 Bloomberg Radio, All right, thanks Sandy, and sources are telling 0:05:33.560 --> 0:05:39.080 Bloomberg Elon Musk's SpaceX as initiated discussions about selling existing 0:05:39.240 --> 0:05:41.800 shares at a price that could value the closely held 0:05:41.839 --> 0:05:45.360 company at roughly two hundred billion dollars. Let's get more 0:05:45.360 --> 0:05:47.600 in this report from Bloomberg's Charlie Pellett. 0:05:47.760 --> 0:05:51.200 Sources tell Bloomberg SpaceX is discussing a tender offer that 0:05:51.279 --> 0:05:54.279 may kick off in June. The price for the offer 0:05:54.320 --> 0:05:57.520 has not been decided, but sources say SpaceX is weighing 0:05:57.600 --> 0:06:00.679 offering shares at one hundred and eight a one hundred 0:06:00.760 --> 0:06:04.800 ten dollars apiece. A two hundred billion dollar valuation would 0:06:04.839 --> 0:06:07.920 be a premium to the one hundred eighty billion valuation 0:06:08.080 --> 0:06:11.159 the company obtained through its most recent tender offer in 0:06:11.279 --> 0:06:13.720 New York. Charlie Pellet, Bloomberg Radio. 0:06:13.839 --> 0:06:19.480 Thanks Charlie, and that brings us to five zero seven 0:06:19.560 --> 0:06:21.160 on Wall Street. Time down for a look at some 0:06:21.200 --> 0:06:23.279 of the other stories making news in New York and 0:06:23.720 --> 0:06:27.799 around the world over that. We're joined by Bloomberg's Michael Barr. Michael, 0:06:27.800 --> 0:06:31.080 good morning, Good morning John. It is the unofficial start 0:06:31.120 --> 0:06:34.680 this summer. Both the roads and airport runways are getting 0:06:34.720 --> 0:06:38.960 busy ahead of the long Memorial Day weekend. At Philadelphia 0:06:39.000 --> 0:06:43.800 International Airport, public affairs manager Heather Redfern says they anticipate 0:06:43.800 --> 0:06:47.120 a high number of travelers passing through. Redfern says they 0:06:47.160 --> 0:06:51.040 had the TSA in lines ready with many Transportation Security 0:06:51.080 --> 0:06:53.440 agents to speed up the screening process. 0:06:53.600 --> 0:06:57.120 Security lines have been busy all day long, but they're moving. 0:06:57.160 --> 0:06:59.599 The TSA is getting people through. 0:06:59.760 --> 0:07:04.240 Ahl Airport officials are predicting nearly thirty percent more air 0:07:04.320 --> 0:07:06.880 travelers will take off this long holiday. 0:07:06.480 --> 0:07:08.040 Weekend compared to last year. 0:07:08.600 --> 0:07:11.480 Former President Trump held a campaign rally in New York 0:07:11.520 --> 0:07:15.240 City yesterday. Trump spoke in the South Bronx, one of 0:07:15.240 --> 0:07:18.040 the bluest areas of the country. He's trying to woo 0:07:18.120 --> 0:07:19.679 black and Hispanic voters. 0:07:20.000 --> 0:07:24.520 Our black population and our Hispanic population who are losing 0:07:24.560 --> 0:07:29.080 their jobs, losing their housing, losing everything they can lose. 0:07:29.240 --> 0:07:32.680 Audio courtesy of ABC seven. The district is more than 0:07:32.760 --> 0:07:36.640 fifty percent Hispanic and thirty percent Black. Several people in 0:07:36.680 --> 0:07:38.880 the crowd weren't impressed by Trump's visit. 0:07:39.200 --> 0:07:42.640 Look what he did in the White House, all the 0:07:42.640 --> 0:07:44.280 stuff he did in the White House, and all the 0:07:44.320 --> 0:07:46.920 women he arrests bad men. 0:07:47.680 --> 0:07:51.320 Trump is vowing to be better than President Biden on 0:07:51.400 --> 0:07:55.880 key issues, including immigration and the economy. President Biden and 0:07:56.040 --> 0:07:59.240 the first Lady doctor Jill Biden, hosted a state dinner 0:07:59.440 --> 0:08:02.840 for Kenyon President William Ruto and his wife Rachel Rudeo. 0:08:03.320 --> 0:08:06.600 During a Teust President Biden said that he was honored 0:08:06.600 --> 0:08:11.040 to host the world leader, touting their shared beliefs in freedom, democracy, 0:08:11.120 --> 0:08:11.840 and equality. 0:08:12.400 --> 0:08:16.680 We share a strong respect for the history of that 0:08:16.840 --> 0:08:17.880 connects us together. 0:08:18.680 --> 0:08:23.960 So far, there's no Democratic presidential candidate on Ohio's November ballot. However, 0:08:24.000 --> 0:08:26.680 the governor is looking to change that to ensure President 0:08:26.720 --> 0:08:30.640 Biden is on it. Ohio's Republican Governor, Mike de Wine, 0:08:30.760 --> 0:08:34.240 is calling a rare special session of the GOP majority 0:08:34.320 --> 0:08:38.240 General Assembly Tuesday to put a Democratic presidential candidate on 0:08:38.320 --> 0:08:41.000 the fall ballot. The Wine says failing to do so 0:08:41.200 --> 0:08:46.000 is simply not acceptable, calling it a ridiculous and absurd situation. 0:08:46.520 --> 0:08:49.240 Global News twenty four hours a day and whenever you 0:08:49.280 --> 0:08:51.559 want it with the Bloomberg News. Now, I'm Michael Barr, 0:08:51.559 --> 0:08:53.200 and this is Bloomberg John. 0:08:53.160 --> 0:08:53.880 Michael, thank you. 0:08:57.880 --> 0:08:58.080 Yeah. 0:08:58.120 --> 0:09:00.240 That brings us to five to ten of Wall Street time. 0:09:00.280 --> 0:09:03.640 Down for the Bloomberg Sports Update. Add for that. Good morning, John, 0:09:03.679 --> 0:09:04.280 stan Shower. 0:09:04.320 --> 0:09:05.080 Good morning John. 0:09:05.120 --> 0:09:07.280 The Celtics are ten and two of the NBA Playoffs. 0:09:07.280 --> 0:09:10.160 The two losses were Game two's at home versus Miami 0:09:10.200 --> 0:09:12.360 in the first round in Cleveland. The second Celtics able 0:09:12.360 --> 0:09:15.319 to win Game two with Indiana in the East Finals, 0:09:15.360 --> 0:09:17.840 easier victory than the series opener if you needed overtime. 0:09:17.880 --> 0:09:20.600 Boston had a twenty to nothing run in the first 0:09:20.640 --> 0:09:22.440 half went on to win one twenty six to one, 0:09:22.520 --> 0:09:25.640 ten for Jalen Brown forty points to match his career 0:09:25.640 --> 0:09:28.480 playoff high. Double overtime on the ice Edmonton Starr e 0:09:28.480 --> 0:09:31.640 Conor McDavid with a tip in thirty two seconds into 0:09:31.679 --> 0:09:34.840 the second ot. The Oilers won three to two in Dallas. 0:09:34.840 --> 0:09:36.959 The Stars are now zero to three in game ones, 0:09:37.000 --> 0:09:40.000 all at home. The Rangers just lost their first Game 0:09:40.040 --> 0:09:42.600 one at home, shut out by Florida, and Rangers coach 0:09:42.640 --> 0:09:45.400 Peter Lovelette had a chance to look at the Tea. 0:09:45.679 --> 0:09:47.439 Goo back and look at the chances. It's kind of 0:09:47.480 --> 0:09:49.480 an even game, Like the whole thing's kind of even. 0:09:49.520 --> 0:09:52.120 It sits around the fifty percent mark. But I just 0:09:52.160 --> 0:09:55.000 look at some of the Christmas and the execution and 0:09:55.040 --> 0:09:58.760 the skating and the movements and the coverage. Not a lot, 0:09:58.800 --> 0:10:00.520 but there's just things that I felt like we could 0:10:00.520 --> 0:10:02.360 have done better than maybe could have pushed it in 0:10:02.360 --> 0:10:02.959 our direction. 0:10:03.640 --> 0:10:06.080 Game too tonight at the Garden. The Rangers, now lost 0:10:06.120 --> 0:10:08.600 their last two, have scored only one goal at Stadium. 0:10:08.679 --> 0:10:11.000 Yankees got all runs of Johnny Carlos stand and Aaron 0:10:11.040 --> 0:10:13.400 Judge fortieth time they've homeed the same game in the 0:10:13.440 --> 0:10:16.440 Yankster thirty six and four. In those games, they shut 0:10:16.440 --> 0:10:19.680 out Seattle five to nothing. Luis Heel continues to be 0:10:19.720 --> 0:10:22.440 a revelation, only in the rotation due to the Garrett 0:10:22.480 --> 0:10:25.400 Cole injury. He's had six straight starts where he hasn't 0:10:25.440 --> 0:10:27.679 allowed more than one run. Phillies won again. They've won 0:10:27.760 --> 0:10:30.600 twenty two in the last twenty six. Historic news from 0:10:30.640 --> 0:10:33.120 college sports the NCAA, for the first time, we'll begin 0:10:33.160 --> 0:10:36.959 to outright pay its athletes. A deal struck to settle 0:10:37.320 --> 0:10:40.760 pending lawsuits and prevent future ones. The NCAA will pay 0:10:40.960 --> 0:10:44.400 two point seven billion dollars in damages to current and 0:10:44.400 --> 0:10:47.240 former athletes only from schools in Power five conferences and 0:10:47.280 --> 0:10:50.000 only from the past decade. It will also begin starting 0:10:50.040 --> 0:10:53.440 next year to pay athletes out of a revenue sharing plan. 0:10:53.800 --> 0:10:56.120 John Stashie that we're Bloomberg Sports John and Nathan. 0:10:56.320 --> 0:10:58.319 All Right, John, thanks a lot, appreciate it. 0:11:00.840 --> 0:11:04.880 Coast to coast on Bloomberg Radio, nationwide on Sirius XM, 0:11:05.080 --> 0:11:07.960 and around the world on Bloomberg dot com and the 0:11:08.000 --> 0:11:11.439 Bloomberg Business app. This is Bloomberg Daybreak. 0:11:12.120 --> 0:11:14.480 They were coming up on five thirteen of Wall Street. 0:11:14.520 --> 0:11:17.400 Has it just said the major stock averages? They indicate 0:11:17.440 --> 0:11:19.840 maybe a higher open cashow But on Wall Street this 0:11:19.880 --> 0:11:23.320 morning because we head into the long holiday weekend in 0:11:23.400 --> 0:11:26.240 the US also the UK, let's get you set up 0:11:26.240 --> 0:11:29.000 for the trading day ahead. We're joined by our first guest, 0:11:29.360 --> 0:11:33.640 Patrick Armstrong, the chief investment officer at PLERIMI. Well Patrick, 0:11:33.640 --> 0:11:35.079 good morning to you, Thanks for being with us. A 0:11:35.840 --> 0:11:39.480 major averages didn't get the pop yesterday that someone expected 0:11:39.480 --> 0:11:43.079 from invidious results. Does it look like the data or 0:11:43.120 --> 0:11:44.880 back of the driver's seat for investors. 0:11:46.400 --> 0:11:50.840 Macroeconomic data has been very supportive. Company specific data is 0:11:50.880 --> 0:11:53.439 being very supportive. We were now past the earnings window 0:11:53.480 --> 0:11:56.120 for almost all the companies now, so I probably will 0:11:56.160 --> 0:11:59.000 be macro, the FED and what's happening there driving markets 0:11:59.040 --> 0:12:03.400 in the early weeks, and overwhelmingly that's been supportive. The 0:12:03.440 --> 0:12:06.040 market did take a bit of a breather yesterday based 0:12:06.080 --> 0:12:09.920 on a FED that's showing they're not ready to cut, 0:12:10.080 --> 0:12:12.760 and I'm not surprised by that though, because the employment 0:12:12.800 --> 0:12:16.400 backdrop is still pretty robust, inflation sticky. It would be 0:12:16.440 --> 0:12:18.280 negligent for the FED to be cutting in this kind 0:12:18.320 --> 0:12:18.920 of environment. 0:12:18.920 --> 0:12:22.040 In my opinion, what do investors latch onto next? 0:12:23.320 --> 0:12:26.160 You lack john to a broadening of growth that You've 0:12:26.200 --> 0:12:29.000 had very strong US growth through the first half of 0:12:29.040 --> 0:12:31.600 this year. You're starting to see Europe participate in that 0:12:31.679 --> 0:12:34.400 growth as well. Not to the same trajectory as the US, 0:12:34.440 --> 0:12:38.040 but it is a global recovery now where the world 0:12:38.120 --> 0:12:42.120 growth is expanding. Pmis in Europe's are above fifty again. 0:12:42.520 --> 0:12:45.640 Services across the world's very strong, and that's translating into 0:12:45.640 --> 0:12:48.000 earnings growth. So at the start of the year, people 0:12:48.000 --> 0:12:49.920 were latching on to a FED that was going to 0:12:49.960 --> 0:12:53.600 be cutting aggressively, and the markets don't need that. I 0:12:53.600 --> 0:12:56.840 don't think it's earnings that really drive markets over the 0:12:56.880 --> 0:12:58.760 long term, and I think that's where the strength of 0:12:58.760 --> 0:13:00.160 the market's going to come from. 0:13:00.280 --> 0:13:03.120 Yeah, we just about wrapped up. Actually a few more 0:13:03.120 --> 0:13:06.840 companies left in this quarter. What are the major takeaways 0:13:06.920 --> 0:13:08.319 from earning seasons so far? 0:13:09.840 --> 0:13:13.280 It's a healthy market because companies that beat and guided 0:13:13.360 --> 0:13:17.200 higher the market really rewarded. You saw that with Nvidia yesterday. 0:13:17.240 --> 0:13:20.640 But companies that beat and gave weak guidance, the markets punished. 0:13:20.640 --> 0:13:23.000 So it's a great environment to be a stock picker. 0:13:23.840 --> 0:13:27.840 Overwhelmingly though companies did beat analysts. We're expecting two percent 0:13:27.880 --> 0:13:30.240 earnings growth in Q one coming into the quarter, and 0:13:30.280 --> 0:13:33.240 we're coming out of it with almost six percent earnings growth. 0:13:33.280 --> 0:13:36.800 So it's been a positive tailwind for markets and a 0:13:36.840 --> 0:13:39.000 healthy market where winners are being rewarded. 0:13:39.400 --> 0:13:41.160 How about you, guys positioning right now? 0:13:42.120 --> 0:13:45.880 So we're overweight equities, not massively. We're short duration because 0:13:45.920 --> 0:13:50.000 we do think inflation sticks around and the FED cuts 0:13:50.000 --> 0:13:52.800 that everyone's anxious for waiting for, I'm not sure they 0:13:52.800 --> 0:13:55.800 are going to materialize, So you want to own equities 0:13:55.800 --> 0:13:58.880 that are participating in economic growth. You don't want equities 0:13:58.920 --> 0:14:02.880 that are reliant on on stimulus and a cutting fed though, 0:14:02.960 --> 0:14:05.960 So I don't mind having secretcality if you can combine 0:14:05.960 --> 0:14:10.079 sacrecality with economic with a real structural growth like Nvidia, 0:14:10.200 --> 0:14:12.520 those kind of stocks still make sense to me despite 0:14:12.880 --> 0:14:13.720 the run they've had. 0:14:13.920 --> 0:14:17.880 So what from your view, what's overpriced? What's under price 0:14:18.000 --> 0:14:19.360 right now? And how do you play that? 0:14:20.840 --> 0:14:23.920 So the things people think about being overpriced are the 0:14:23.960 --> 0:14:27.680 best performers. I still love six of the Magnificent Seven. 0:14:27.760 --> 0:14:30.080 I own only four of them, but all of those 0:14:30.200 --> 0:14:33.080 have basically monopolistic properties that are going to give them 0:14:33.120 --> 0:14:37.080 pricing power and earnings growth. I also like the defense sector, 0:14:37.120 --> 0:14:41.120 and energy is a hedge on geopolitical risks, Property companies, 0:14:42.120 --> 0:14:45.400 a lot of the utilities that aren't actually energy generators 0:14:45.440 --> 0:14:48.160 because they are interest rate sensitivity in those two sectors. 0:14:48.280 --> 0:14:50.520 I think those sectors are still at risk of further 0:14:50.640 --> 0:14:51.600 downside this year. 0:14:52.040 --> 0:14:55.400 Okay, I can get close to five percent two year yield? 0:14:55.480 --> 0:14:58.680 Is that a place to part some money? Reasonable? 0:14:58.920 --> 0:15:00.440 Or you just go up a little little bit on 0:15:00.440 --> 0:15:02.160 the risk spectrum and you get five and a half 0:15:02.200 --> 0:15:05.080 five point seven percent in double A rated bonds from 0:15:05.720 --> 0:15:09.160 senior bank or senior bonds from banks. So there's nothing 0:15:09.200 --> 0:15:11.760 wrong with that. You're going to beat inflation with that. 0:15:12.640 --> 0:15:15.360 I think you can do better, But I do prefer 0:15:15.720 --> 0:15:17.000 the front end of the curve. 0:15:16.800 --> 0:15:17.800 To the long end of the curve. 0:15:17.800 --> 0:15:19.480 I think we're going to end this year where you've 0:15:19.520 --> 0:15:21.840 got five percent FED funds R eight, five percent two 0:15:21.920 --> 0:15:24.600 year and probably a five percent Treasury ten year yield 0:15:24.640 --> 0:15:25.040 as well. 0:15:25.720 --> 0:15:28.200 Where's the next Fed cut? The obligatory question at the 0:15:28.280 --> 0:15:30.200 end about ten seconds. 0:15:30.400 --> 0:15:32.680 Fifty to fifty. If it happens this year, it won't 0:15:32.720 --> 0:15:34.560 happen until September. If it does happen. 0:15:34.760 --> 0:15:37.680 You're listening to Bloomberg Daybreak Today, your morning brief on 0:15:37.760 --> 0:15:41.240 the story's making news from Wall Street to Washington and beyond. 0:15:41.440 --> 0:15:43.760 Look for us on your podcast feed by six am 0:15:43.880 --> 0:15:47.560 Eastern each morning, on Apple's Spotify and anywhere else you 0:15:47.640 --> 0:15:50.720 get your podcasts. You can also listen live each morning 0:15:50.760 --> 0:15:53.440 starting at five am Wall Street time on Bloomberg eleven 0:15:53.560 --> 0:15:55.800 three to zero in New York, Bloomberg ninety nine one 0:15:56.000 --> 0:15:59.160 in Washington, Bloomberg one o six one in Boston, and 0:15:59.200 --> 0:16:02.880 Bloomberg nine sixty in San Francisco. Our flagship New York station, 0:16:03.000 --> 0:16:05.960 is also available on your Amazon Alexa devices. Just say 0:16:06.000 --> 0:16:10.200 Alexa Play Bloomberg eleven thirty plus. 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