Middle East Tensions Escalate; Trump Closing Arguments

Bloomberg Audio Studios, Podcasts, Radio News. 0:00:11.000 --> 0:00:11.559 Good morning. 0:00:11.600 --> 0:00:14.400 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:14.440 --> 0:00:16.280 stories we're following today. 0:00:16.079 --> 0:00:19.200 Here, and we begin with tensions escalating in the Middle East. 0:00:19.239 --> 0:00:21.960 An Egyptian soldier has been killed in a clash with 0:00:22.079 --> 0:00:25.439 Israeli troops at the Rafa border crossing in Gaza. The 0:00:25.480 --> 0:00:29.080 death comes after an Israeli airstrike killed and estimated forty 0:00:29.200 --> 0:00:33.120 five Palestinians at a camp for displaced people in the territory. 0:00:33.360 --> 0:00:36.280 We get more from Bloomberg Middle East anchor Jumana Bersecci. 0:00:36.680 --> 0:00:40.320 But the big question for the international community is whether 0:00:40.440 --> 0:00:43.840 or not what happened over the weekend constitutes a red 0:00:43.920 --> 0:00:46.800 line as far as the US are concerned, and whether 0:00:46.920 --> 0:00:50.240 actually it would lead to any impact on the shipment 0:00:50.320 --> 0:00:53.280 of military equipment or even a pause of the military 0:00:53.320 --> 0:00:56.120 equipment that the US had promised to provide Israel with. 0:00:56.040 --> 0:00:59.880 Bloomberg's Jamani Barsati says Israeli Prime Minister Benjamin Nittanyahu has 0:01:00.040 --> 0:01:03.360 called the airstrike in Rafas Sunday a quote tragic mistake. 0:01:03.880 --> 0:01:07.039 Well, Nathan, Former President Donald Trump is taking a hardline 0:01:07.120 --> 0:01:11.399 stance on pro Palestinian demonstrations on college campuses. According to 0:01:11.440 --> 0:01:14.160 her report in The Washington Post, he told donors at 0:01:14.200 --> 0:01:17.959 a recent event in New York that he deports student protesters, 0:01:18.200 --> 0:01:20.520 and he praised New York City police for clearing the 0:01:20.560 --> 0:01:24.640 demonstration at Columbia University. Trump said he supports Israel's right 0:01:24.680 --> 0:01:27.399 to continue its war on terror, but donors at the 0:01:27.400 --> 0:01:31.240 gathering say he didn't mention Prime Minister net Yahoo that 0:01:31.400 --> 0:01:34.640 you have not spoken in years. Trump has complained about 0:01:34.640 --> 0:01:38.039 net Yaho publicly after he acknowledged President Biden's win in 0:01:38.080 --> 0:01:38.759 twenty twenty. 0:01:38.920 --> 0:01:39.080 Well. 0:01:39.080 --> 0:01:42.560 Meanwhile, Karen closing arguments are expected today in Trump's criminal 0:01:42.600 --> 0:01:45.840 hush money trial in New York. Bloomberg Zamy Morris as 0:01:45.880 --> 0:01:46.400 a preview. 0:01:46.880 --> 0:01:50.240 Prosecutors will present their summations first as they try to 0:01:50.280 --> 0:01:54.160 convince the jury that Donald Trump falsified business records. They 0:01:54.200 --> 0:01:57.280 have to prove beyond a reasonable doubt that Trump intentionally 0:01:57.360 --> 0:02:00.880 made or directed others to make false entries in business records, 0:02:01.200 --> 0:02:04.160 did so with the intent to commit another underlying crime, 0:02:04.520 --> 0:02:07.240 and sought to conceal the commission of that crime. Now, 0:02:07.240 --> 0:02:10.560 the defense only has to sway one juror because the 0:02:10.680 --> 0:02:13.800 verdict has to be unanimous. If the jury deadlocks, the 0:02:13.880 --> 0:02:17.200 judge can declare a mistrial. Judge Wan Mershaun said last 0:02:17.200 --> 0:02:20.079 week he hopes the jury will get the case by tomorrow. 0:02:20.240 --> 0:02:22.000 Amy Morris, Bloomberg Radio. 0:02:21.960 --> 0:02:24.160 All right, Amy, thanks. Back at the White House, the 0:02:24.280 --> 0:02:28.040 Biden administration is unveiling a new approach to climate policy. 0:02:28.360 --> 0:02:32.600 Treasury Secretary Janet Yellen and other cabinet officials are recommending 0:02:32.639 --> 0:02:35.600 that companies be allowed to use curbon credits to offset 0:02:35.840 --> 0:02:38.960 some of their so called Scope three emissions, or those 0:02:39.000 --> 0:02:42.800 generated by their suppliers and customers. Carbon offsets have been 0:02:42.840 --> 0:02:45.239 criticized in the past. Some of the methods used to 0:02:45.320 --> 0:02:48.520 calculate carbon dioxide taken out of the atmosphere have not 0:02:48.680 --> 0:02:53.079 fulfilled their claims. Secretary Yellen says voluntary carbon markets can 0:02:53.120 --> 0:02:56.680 help unlock the power of private markets to reduce emissions, 0:02:56.720 --> 0:02:59.399 but only if we address existing challenges well. 0:02:59.440 --> 0:03:02.800 Turning to financial markets, Karen wall Street gets back to 0:03:02.840 --> 0:03:05.639 work following the long holiday week, and perhaps the biggest 0:03:05.680 --> 0:03:07.320 market moving event of the week is going to come 0:03:07.320 --> 0:03:10.320 on Friday. That's when we get the Federal reserves, favorite 0:03:10.360 --> 0:03:13.240 measure of underlying inflation. We get a preview now from 0:03:13.240 --> 0:03:15.200 Bloomberg's Jeff Bellinger. 0:03:15.400 --> 0:03:18.240 The Fed's first line inflation gauge may be about to 0:03:18.280 --> 0:03:22.600 show some modest relief from stubborn price pressures. Economists expect 0:03:22.600 --> 0:03:26.760 the Personal Consumption Expenditures price index minus food and energy 0:03:26.919 --> 0:03:29.760 to rise two tenths of a percent in April. That 0:03:29.800 --> 0:03:32.440 would mark the smallest advance so far this year for 0:03:32.520 --> 0:03:36.200 the measure, which provides a better snapshot of underlying inflation. 0:03:36.680 --> 0:03:39.640 FED Chair Jay Powell and his colleagues have stressed the 0:03:39.680 --> 0:03:42.440 need for more evidence that inflation is on a sustained 0:03:42.480 --> 0:03:45.840 path to their two percent goal before cutting the benchmark 0:03:45.920 --> 0:03:48.920 interest rate. That rate has been at a two decade 0:03:49.000 --> 0:03:52.960 high since July. Jeff Bellinger, Bloomberg Radio, all. 0:03:52.920 --> 0:03:55.320 Right, Jeff, thanks so. We also continue to hear from 0:03:55.360 --> 0:03:58.640 several FED officials this week. This morning in Tokyo, Cleveland, 0:03:58.680 --> 0:04:02.080 FED President Loretta mess said the US Central Bank should 0:04:02.120 --> 0:04:05.240 consider ways to better communicate to the public how economic 0:04:05.280 --> 0:04:10.560 conditions will affect future policy decisions. Mester recommended two key changes, 0:04:10.600 --> 0:04:13.720 adding more words to the Fed's post meeting policy statement 0:04:13.920 --> 0:04:17.520 to describe how officials assess economic developments and potential risk 0:04:17.600 --> 0:04:20.400 to the outlook and more detail to its quarterly summary 0:04:20.400 --> 0:04:22.600 of policy makers Economic Forecasts. 0:04:22.760 --> 0:04:24.680 Well, here's a milestone, Karen. For the first time in 0:04:24.760 --> 0:04:27.880 one hundred years, stock trades on Wall Street will have 0:04:27.920 --> 0:04:30.400 to settle in a single day. Shift to the system 0:04:30.440 --> 0:04:33.080 known as T plus one will cut the time it 0:04:33.120 --> 0:04:36.560 takes to complete every transaction in half. We get more 0:04:36.600 --> 0:04:38.240 from Bloomberg's Crity Gupta. 0:04:38.400 --> 0:04:40.080 This needs to be a T plus five. This needs 0:04:40.080 --> 0:04:42.920 to take five days to settle trades. And the reason 0:04:43.000 --> 0:04:45.039 back then that they had to kind of shrink the 0:04:45.080 --> 0:04:47.880 time was because so many people were getting involved in 0:04:47.880 --> 0:04:49.640 the stock market. It was called the Roaring twenties for 0:04:49.680 --> 0:04:52.480 a reason. Fast forward essentially later, you see the same 0:04:52.560 --> 0:04:54.720 kind of impulse to get involved in the stock market 0:04:54.720 --> 0:04:56.159 in twenty twenty one. And that's where all of this 0:04:56.279 --> 0:04:58.919 comes from. The problem is there are some teething paints 0:04:58.920 --> 0:05:00.160 that come with it, and so when all a lot 0:05:00.160 --> 0:05:02.080 of people are hitting their desks today, they're going to 0:05:02.120 --> 0:05:03.719 be saying, Okay, well, let's all kind of brace for 0:05:03.800 --> 0:05:07.320 impact here, because there are liquidity concerns, there are staffing concerns, 0:05:07.320 --> 0:05:09.800 there are technical glitches that can go wrong as they 0:05:09.800 --> 0:05:10.840 adopt the system, now. 0:05:10.880 --> 0:05:13.360 Boomberg's Critty Gibda says this isn't the first time Wall 0:05:13.400 --> 0:05:16.560 Street's gone through a transition like this, but industry pros 0:05:16.600 --> 0:05:18.680 say it will be the most challenging. 0:05:19.160 --> 0:05:22.039 Well, Nathan, the shine may be back on Apple and China. 0:05:22.200 --> 0:05:25.520 iPhone staged a rebound last month, with shipment's rising fifty 0:05:25.600 --> 0:05:29.360 two percent amid a flurry of discounts from retail partners. 0:05:29.720 --> 0:05:32.640 Apple and its Chinese resellers have been cutting prices since 0:05:32.680 --> 0:05:35.360 it started a year, and those deals are extending into 0:05:35.360 --> 0:05:38.000 this summer sales season. Shares of Apple are at more 0:05:38.040 --> 0:05:39.640 than two percent in early trading. 0:05:39.760 --> 0:05:41.200 Yeah, we got to keep an eye on so called 0:05:41.240 --> 0:05:43.960 meme stocks as well, Karen. They are back on the move. 0:05:44.080 --> 0:05:47.520 Game Stop and AMC Entertainment are two of the most 0:05:47.560 --> 0:05:51.039 actively traded stocks this morning. Shares of game Stop are 0:05:51.120 --> 0:05:54.400 up nineteen and a half percent. The video game retailer 0:05:54.400 --> 0:05:57.720 brought in nearly a billion dollars from a share sale program. 0:05:58.040 --> 0:06:00.600 AMC is up five and a half percent. 0:06:04.279 --> 0:06:05.560 And it's time now for a look at some of 0:06:05.600 --> 0:06:07.719 the other stories making news in New York and around 0:06:07.760 --> 0:06:10.040 the world. And for that were joined by Bloomberg's Michael 0:06:10.080 --> 0:06:11.520 Barr Michael, Good morning. 0:06:11.360 --> 0:06:14.240 Good morning, Karen. A series of powerful storms in the 0:06:14.279 --> 0:06:17.760 central and southern US over the Memorial Day holiday weekend 0:06:18.200 --> 0:06:21.040 has killed at least twenty three people living, homes and 0:06:21.200 --> 0:06:25.760 businesses destroyed, and power outages. In Valley View, Texas. This 0:06:25.880 --> 0:06:28.840 man says he was driving with his wife and took 0:06:28.880 --> 0:06:30.080 shelter at a gas station. 0:06:30.600 --> 0:06:33.839 It got so intense that I could feel every particle 0:06:34.000 --> 0:06:37.880 of dirt, sand, fiberglass, glass hitting my face. 0:06:38.600 --> 0:06:43.840 The destructive storms also caused deaths in Texas, Oklahoma, and Arkansas. 0:06:44.279 --> 0:06:47.520 The big return home day for the holiday weekend was 0:06:47.560 --> 0:06:50.240 not an easy trip for some airline passengers who were 0:06:50.279 --> 0:06:53.880 impacted by bad weather. In the northeast. La Guardia Airport 0:06:53.960 --> 0:06:58.440 and Newark Liberty experienced the worst of canceled and delayed flights. 0:06:58.920 --> 0:07:02.560 The TSA two point nine million people were screened at 0:07:02.640 --> 0:07:06.440 US airports on Friday, a single day record. Passengers on 0:07:06.520 --> 0:07:09.200 board a Spirit Airlines flight who came close to a 0:07:09.320 --> 0:07:13.119 water landing and now sharing their stories the moments before 0:07:13.200 --> 0:07:17.080 their safe return to Montego Bay Terminal in Jamaica, they 0:07:17.120 --> 0:07:21.400 were having a frightening experience. This passenger says of the 0:07:21.400 --> 0:07:24.880 fort Lauderdale, Florida bound flight first announced he would be 0:07:25.080 --> 0:07:28.160 turning the plane back to Jamaica's airport to address a 0:07:28.200 --> 0:07:32.080 maintenance issue, and then she heard the pilot again, and 0:07:32.160 --> 0:07:32.480 when he. 0:07:32.480 --> 0:07:35.680 Said prepare for emergency landing, I took my earbud out 0:07:35.720 --> 0:07:38.240 and I looked at the two people in my raw. 0:07:38.240 --> 0:07:40.000 I said, did he just say water landing? 0:07:40.320 --> 0:07:41.320 And they said yeah. 0:07:42.040 --> 0:07:46.119 Everyone on board was provided with meal vouchers, hotel accommodations, 0:07:46.120 --> 0:07:49.200 and were rebooked. The search for three men who were 0:07:49.240 --> 0:07:52.000 allegedly involved in the death of a soap star continues. 0:07:52.280 --> 0:07:55.560 Los Angeles police say thirty seven year old Johnny wactor 0:07:55.920 --> 0:08:00.560 who played Brando Corbett on ABC's General Hospital, I've interrupted 0:08:00.560 --> 0:08:03.960 a possible car theft right before the gunshots early Saturday morning. 0:08:04.360 --> 0:08:06.440 Fellow actor and friend Colin Flynn. 0:08:06.800 --> 0:08:11.080 Donnie is just an unbelievable friend. He such a humble, loving, 0:08:11.280 --> 0:08:12.679 passionate person. 0:08:12.760 --> 0:08:16.080 He did tons of service to help other people. 0:08:16.520 --> 0:08:19.240 According to police, the suspects who got away with trying 0:08:19.240 --> 0:08:23.320 to steal Wactors catalytic converter on his car. It's primary 0:08:23.400 --> 0:08:26.880 runoff day in Texas. There are seven GOP congressional nominations 0:08:26.920 --> 0:08:30.800 up for grabs. Incumbent Republican Congressman Tony Gonzalez of San 0:08:30.800 --> 0:08:35.240 Antonio is facing a fight for the party nomination against 0:08:35.480 --> 0:08:40.440 Second Amendment activists YouTuber Brandon Herrera, known online as the 0:08:40.480 --> 0:08:43.760 Ak Guy, Global News twenty four hours a day and 0:08:43.840 --> 0:08:46.240 whenever you want it with the Bloomberg News. Now, I'm 0:08:46.240 --> 0:08:48.760 Michael Barr, and this is Bloomberg Karen. 0:08:48.960 --> 0:08:55.559 All right, Michael Barr, thank you time now for the 0:08:55.600 --> 0:08:59.400 Bloomberg Sports Update with John Stashauer. John, good morning, Good. 0:08:59.200 --> 0:09:02.080 Morning, Karen. Celtics. Not only could I really should have 0:09:02.240 --> 0:09:05.840 lost games one and three versus Indiana, the Pacers had 0:09:05.920 --> 0:09:08.680 late leads in both. In Game four, also close was 0:09:08.720 --> 0:09:10.280 tied in the final minute. 0:09:10.480 --> 0:09:12.520 Jayleb stops out of time, troubles to the middle of 0:09:12.559 --> 0:09:13.600 the floor, jump pass. 0:09:13.440 --> 0:09:15.520 Out of the corner Derek White for three. 0:09:15.400 --> 0:09:15.760 Got it. 0:09:17.360 --> 0:09:19.640 Derek White from the right corner. 0:09:19.280 --> 0:09:21.880 As David Boston a one oh five one oh two. 0:09:21.760 --> 0:09:24.760 League on ninety eight five sports iuve in Boston. That 0:09:24.880 --> 0:09:27.079 was the final. Celtics finished the sweep advance to the 0:09:27.160 --> 0:09:30.000 NBA Finals, where the twenty third time looks like they'll 0:09:30.000 --> 0:09:32.760 played Dallas. The Mats are up three zip on Minnesota 0:09:32.920 --> 0:09:35.839 Game four. Tonight, the basketball world remembering Hall of famer 0:09:35.880 --> 0:09:39.240 Bill Walton, passed away from cancer went healthy one of 0:09:39.280 --> 0:09:43.360 the greatest ever nineteen seventy three NCAA Championship game with UCLA, 0:09:43.400 --> 0:09:47.240 he scored forty four points, shot twenty one of twenty two. 0:09:47.440 --> 0:09:49.480 Four years later led Portland to the NBA title and 0:09:49.480 --> 0:09:51.520 that game a long run of foot injuries, but in 0:09:51.600 --> 0:09:54.040 nineteen eighty six he helped the Celtics to the championship, 0:09:54.080 --> 0:09:57.560 and then despite a lifelong stuttering problem, Walton became a 0:09:57.559 --> 0:10:00.000 broadcaster and safe to say, there's never been another one 0:10:00.160 --> 0:10:03.040 like and Bill Walton, who estimated that he had attended 0:10:03.160 --> 0:10:07.240 over eight fifty Grateful Dead concerts, it was seventy one. 0:10:07.320 --> 0:10:09.440 No One at tennis history has dominated a tournament like 0:10:09.520 --> 0:10:12.920 rockfielded out the French Open, but the fourteen time champion, 0:10:12.920 --> 0:10:16.280 now thirty seven, is battled injuries, nearing retirement, and since 0:10:16.320 --> 0:10:19.000 he was unseated, he had to face Sasha asze Verev 0:10:19.040 --> 0:10:21.680 in the opening round of doll lost in straight sets. 0:10:21.720 --> 0:10:24.040 Stanley Cup Playoffs, Dallas came from two goals down to 0:10:24.120 --> 0:10:26.840 win five to three, and Edmonton's Stars lead the series 0:10:26.880 --> 0:10:28.920 two to one Rangers, bringing two to one lead the 0:10:28.960 --> 0:10:32.080 game four tonight at Florida. For the last five Ranger 0:10:32.200 --> 0:10:35.000 winnings are coming overtime. Mets and Dodgers reigned down so 0:10:35.040 --> 0:10:37.160 a straight doubleheader today at City Field, starting the four 0:10:37.240 --> 0:10:40.120 Yankee starter a series at the Angels Orioles fifth straight 0:10:40.160 --> 0:10:42.920 win eleven three over the Red Sox. Nationals beat the 0:10:42.960 --> 0:10:45.160 Braves eight to four. Giants beat the Phillies eight to four. 0:10:45.600 --> 0:10:49.880 Angel Hernandez has ended his umpiring career after thirty three seasons. 0:10:49.920 --> 0:10:53.800 His reputation was that he was baseball's worst umpire. John 0:10:53.840 --> 0:10:55.760 Stashedward Bloomberg Sports Kenny. 0:10:55.600 --> 0:11:02.480 Nava coast to coast on Bloomberg Radio, nationwide on Sirius XM, 0:11:02.559 --> 0:11:05.480 and around the world on Bloomberg dot Com and the 0:11:05.520 --> 0:11:08.959 Bloomberg Business app. This is Bloomberg Daybreak. 0:11:09.360 --> 0:11:12.120 Good morning, I'm Nathan Hager. Weel we are heading into 0:11:12.240 --> 0:11:15.120 a holiday shortened trading week this morning with a lot 0:11:15.120 --> 0:11:17.640 of investor focus on what's coming. At the end of 0:11:17.679 --> 0:11:21.600 this week. The feds preferred reading on inflation could give 0:11:21.679 --> 0:11:24.000 more of a clue on the path for interest rates 0:11:24.040 --> 0:11:26.440 for the next rest of this year. For more, we 0:11:26.480 --> 0:11:30.840 are joined in our Bloomberg Interactive Brokers Studio by Lori Calvacina, 0:11:31.280 --> 0:11:34.640 head of US Equity Strategy at RBC Capital Markets, Lourd, 0:11:34.640 --> 0:11:37.000 good morning. Always great to speak with you. So is 0:11:37.040 --> 0:11:39.160 it all about the PCE at the end of the 0:11:39.200 --> 0:11:41.599 week or is there something else that investors should be 0:11:41.640 --> 0:11:42.880 watching out for this week? 0:11:43.160 --> 0:11:45.240 Well, thanks for having me as always, Nathan. And look, 0:11:45.280 --> 0:11:47.240 you know there it feels like kind of a lightish 0:11:47.240 --> 0:11:49.120 week on the economic date. I think we've got a 0:11:49.120 --> 0:11:51.640 consumer sentiment reading we'll keep an eye on. But I 0:11:51.640 --> 0:11:53.640 do think you're right. I think it's all about inflation, 0:11:54.720 --> 0:11:56.240 you know, in my meetings and I was on the 0:11:56.320 --> 0:11:59.079 road again last week at all you know, centers around 0:11:59.080 --> 0:12:01.080 this debate over when is the Fed going to move? 0:12:02.000 --> 0:12:05.199 When should they move? But really that is the debate 0:12:05.240 --> 0:12:06.960 and at all hinges on the inflation readings. 0:12:07.080 --> 0:12:09.920 Now we got even more clues just this morning on 0:12:09.960 --> 0:12:13.320 a competing network from Minneapolis FED President Neil Keshkari saying 0:12:13.360 --> 0:12:17.440 that he's seeing inflation move sideways and he's still not 0:12:17.520 --> 0:12:20.120 in a hurry to cut interest rates. I mean, is 0:12:20.160 --> 0:12:24.000 that the message that that Fed officials are putting out here? 0:12:24.440 --> 0:12:26.120 Is there sort of consolidation around that. 0:12:26.640 --> 0:12:29.559 So look, I go back to the FED presser a 0:12:29.600 --> 0:12:32.160 couple of weeks ago, and what I heard was the 0:12:32.200 --> 0:12:35.439 case being made for no hikes, not necessarily more cuts, 0:12:35.440 --> 0:12:37.079 And I think there was a little bit of confusion 0:12:37.160 --> 0:12:40.480 initially in the investment community, and I think we're sort of, 0:12:40.559 --> 0:12:42.600 in my mind at least, just sort of circling back 0:12:42.640 --> 0:12:46.360 to that initial message that was put out. I will say, Nathan, 0:12:46.400 --> 0:12:48.360 as I talked to investors last week, and I was 0:12:48.400 --> 0:12:52.120 really mostly talking to long only investors, not hedge funds. 0:12:52.679 --> 0:12:54.280 So maybe there's a little bit of a difference in 0:12:54.360 --> 0:12:57.720 sentiment between those two communities in recent weeks. But for 0:12:57.760 --> 0:12:59.680 the most part, the folks I was talking to last 0:12:59.720 --> 0:13:02.120 week's said, Okay, you know what, if the FED doesn't 0:13:02.160 --> 0:13:05.080 cut and the economy stays strong and we're trying to 0:13:05.160 --> 0:13:08.559 keep the inflation genie in the bottle, that's okay. There 0:13:08.600 --> 0:13:11.040 wasn't really a lot of consternation on the idea that 0:13:11.080 --> 0:13:13.480 we might not get any cuts this year from the 0:13:13.480 --> 0:13:15.679 investors I spoke with last week at least. 0:13:15.840 --> 0:13:19.760 Is that a sentiment that you share that we could 0:13:19.800 --> 0:13:22.160 see more of a rally even if we do remain 0:13:22.200 --> 0:13:24.000 in a higher for longer rate environment. 0:13:24.240 --> 0:13:26.880 So I generally think that the market is fine and 0:13:26.920 --> 0:13:29.680 I think that valuations can stay fine. Where we are. 0:13:29.760 --> 0:13:31.800 You know, we are at my price target of fifty 0:13:31.800 --> 0:13:34.840 three hundred. You know, we haven't done sort of the 0:13:34.840 --> 0:13:37.439 big second half outlook. We haven't done a twenty twenty 0:13:37.480 --> 0:13:39.760 five outlook yet, but we do think based on sort 0:13:39.760 --> 0:13:42.640 of the messaging of where you know, the economy is 0:13:42.840 --> 0:13:44.960 likely to be this year, what the FED is likely 0:13:45.000 --> 0:13:46.640 to do or not do this year, and where inflation 0:13:46.760 --> 0:13:49.480 is likely to end up, we seem fairly valued. And 0:13:49.520 --> 0:13:51.319 I know that's a little bit of a boring message, 0:13:51.320 --> 0:13:53.080 but we do feel a little bit stuck in neutral 0:13:53.120 --> 0:13:55.440 for the moment. I will say I am not in 0:13:55.480 --> 0:13:58.720 the bearish camp. We do have few strategists who are 0:13:58.760 --> 0:14:01.079 still sitting over there, and we do think that we're 0:14:01.120 --> 0:14:04.040 sort of midway through a recovery that begin off recession 0:14:04.200 --> 0:14:07.200 like conditions in twenty twenty two. But sometimes we do 0:14:07.200 --> 0:14:08.720 get a little bit stuck in the market. And that's 0:14:08.720 --> 0:14:09.800 how I'm feeling at the moment. 0:14:10.000 --> 0:14:12.200 Well, it does seem as though the bearish camp is 0:14:12.280 --> 0:14:14.760 getting lighter and lighter by the day, and not a 0:14:14.800 --> 0:14:18.520 whole lot of bears left at least embong prominent voices. 0:14:19.360 --> 0:14:22.440 Could that potentially be a conturing indicator if we have 0:14:22.880 --> 0:14:25.240 potentially too much polishness in the market right now? 0:14:25.280 --> 0:14:27.320 You know, it's a great point, Nathan. And as someone 0:14:27.360 --> 0:14:30.200 who's been knocking around the equity strategy world for you know, 0:14:30.200 --> 0:14:32.240 I think it's been like twenty three twenty four years 0:14:32.520 --> 0:14:35.240 since I made my way into the first strategy job 0:14:35.600 --> 0:14:38.960 as a peon, mind you, but the reality is that 0:14:39.080 --> 0:14:40.960 is something we do tend to learn. When you tend 0:14:41.000 --> 0:14:43.240 to see strategists, you know, sort of rush to you know, 0:14:43.320 --> 0:14:46.080 kind of all raise their targets in a market that's 0:14:46.120 --> 0:14:49.160 been rallying and surprising expectations, it makes you want to 0:14:49.200 --> 0:14:51.720 stop and pause and reflect and be very very careful. 0:14:51.720 --> 0:14:53.320 And I'm not saying that they're all wrong. We do 0:14:53.360 --> 0:14:56.360 talk about our valuation work as more of a compass, 0:14:56.440 --> 0:14:58.840 not a GPS I. You know, we do generally side, 0:14:58.840 --> 0:15:01.080 you know, with the bulls over the b and these scenarios. 0:15:01.600 --> 0:15:03.320 But I do think when we just look at data, 0:15:03.400 --> 0:15:06.360 we look at AAII, we look at CFTC, you know, 0:15:06.400 --> 0:15:09.040 sort of hard weekly data points that we continue to get, 0:15:09.480 --> 0:15:11.760 they're still showing us sort of either at froth on 0:15:11.800 --> 0:15:14.640 the CFTC data or on the cusp of being frothy 0:15:14.680 --> 0:15:16.880 again on the AAII data. So I do think this 0:15:16.960 --> 0:15:18.560 is a good time to maybe just sit and think 0:15:18.600 --> 0:15:19.239 a little. 0:15:19.400 --> 0:15:21.800 Got about a minute left. If we're sitting and thinking 0:15:21.960 --> 0:15:24.480 on the S and P five hundred level, does that 0:15:24.560 --> 0:15:28.720 carry through into broader indexes like the Russell two thousand. 0:15:29.200 --> 0:15:32.480 So the Russell two thousand is weakening again and we're 0:15:32.520 --> 0:15:34.960 retesting those lows that we've made a couple times over 0:15:35.000 --> 0:15:37.080 the past years relative to the S and P. And 0:15:37.120 --> 0:15:40.240 I think that's really because small caps are caught up 0:15:40.280 --> 0:15:42.720 in FED cut optimism and it's been kind of sucked 0:15:42.720 --> 0:15:44.720 out of the market again. That's pressured that part of 0:15:44.720 --> 0:15:46.880 the market. There's a lot of interesting stuff in terms 0:15:46.920 --> 0:15:49.840 of relative valuation positioning looks interesting, but at the end 0:15:49.880 --> 0:15:51.600 of the day, we need the confidence that the fed 0:15:51.640 --> 0:15:53.400 cuts are coming to get that part of the market 0:15:53.400 --> 0:15:54.000 working again. 0:15:54.440 --> 0:15:57.320 This is Bloomberg day Break Today, your morning brief on 0:15:57.400 --> 0:16:00.120 the stories making news from Wall Street to washing to 0:16:00.240 --> 0:16:01.000 nan beyond. 0:16:01.200 --> 0:16:04.000 Look for us on your podcast feed at six am 0:16:04.040 --> 0:16:07.720 Eastern each morning, on Apple, Spotify and anywhere else you 0:16:07.800 --> 0:16:08.960 get your podcasts. 0:16:09.080 --> 0:16:11.760 You can also listen live each morning starting at five 0:16:11.840 --> 0:16:14.400 am Wall Street Time, on Bloomberg eleven three to zero 0:16:14.480 --> 0:16:17.920 in New York, Bloomberg ninety nine one in Washington, Bloomberg 0:16:17.960 --> 0:16:20.960 one oh sixty one in Boston, and Bloomberg nine sixty 0:16:21.080 --> 0:16:22.040 in San Francisco. 0:16:22.440 --> 0:16:25.600 Our flagship New York station is also available on your 0:16:25.640 --> 0:16:30.400 Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty 0:16:30.760 --> 0:16:34.560 plus listen coast to coast on the Bloomberg Business app, SERIUSXM, 0:16:34.640 --> 0:16:37.720 the iHeartRadio app, and on Bloomberg dot Com. 0:16:37.760 --> 0:16:39.840 I'm Nathan Hager and I'm Karen Moscow. 0:16:40.040 --> 0:16:42.800 Join us again tomorrow morning for all the news you 0:16:42.920 --> 0:17:03.280 need to start your day right here on Bloomberg Daybreak