State of the Union Address and GOP Response; TikTok Divestment Efforts

Bloomberg Audio Studios, podcasts, radio News. 0:00:09.560 --> 0:00:11.120 Good morning, I'm John Tucker. 0:00:10.920 --> 0:00:14.160 And I'm Karen Moscow. Here are the stories we're following today. 0:00:14.440 --> 0:00:17.480 We begin with last night's State of the Union. President 0:00:17.560 --> 0:00:20.840 Biden delivered a spirited in political speech ling out his 0:00:20.960 --> 0:00:24.400 pitch for a second term. With many Americans concerned about 0:00:24.400 --> 0:00:27.520 Biden's fitness, the president's oant to portray his age as 0:00:27.600 --> 0:00:28.280 an asset. 0:00:28.880 --> 0:00:33.440 You can lead America with ancient ideas, only take us back. 0:00:34.080 --> 0:00:37.519 You lead America the land of possibilities. You need a 0:00:37.600 --> 0:00:40.440 vision for the future and what can and should be done. 0:00:40.520 --> 0:00:44.440 President Biden also touting his accomplishments throughout the night, pointing 0:00:44.440 --> 0:00:47.240 to job creation. His bind part is an infrastructure bill 0:00:47.720 --> 0:00:49.960 lowering prescription drug prices. 0:00:50.800 --> 0:00:54.280 Well, John, The President also repeatedly targeted Donald Trump, without 0:00:54.320 --> 0:00:57.680 ever mentioning him by name. He framed their matchup as 0:00:57.720 --> 0:01:01.960 a choice over several galvanizing issues like abortion rights and 0:01:02.040 --> 0:01:06.040 preserving American democracy, which he says are under assault at 0:01:06.040 --> 0:01:06.800 home and abroad. 0:01:07.080 --> 0:01:09.520 My predecessor on some of you here seek to bury 0:01:09.520 --> 0:01:12.880 the truth about January sixth, I will not do that. 0:01:14.040 --> 0:01:16.080 This is a moment to speak the truth and to 0:01:16.120 --> 0:01:20.520 bury the lies. Here's the simple truth. You can't love 0:01:20.560 --> 0:01:22.520 your country only when you win. 0:01:23.240 --> 0:01:25.760 In the more than hour long speech, President Biden also 0:01:25.800 --> 0:01:29.200 addressed issues where he's faced criticism from both parties. He 0:01:29.240 --> 0:01:32.440 looked to reassure Democrats skeptical about the war in Israel, 0:01:32.480 --> 0:01:35.240 announcing that the US is building a temporary peer to 0:01:35.240 --> 0:01:38.440 get aid into Gaza, and he schoolded Republicans for failing 0:01:38.480 --> 0:01:40.640 to take up a recent bipartisan border bill. 0:01:41.240 --> 0:01:43.720 Well munch of the attention was paid to the performance 0:01:43.800 --> 0:01:46.800 at President Biden during his hour plus address. We got 0:01:46.880 --> 0:01:50.240 reaction after the State of Union from Bloomberg political contributors 0:01:50.440 --> 0:01:52.200 Genie Zeno and Rick Davis. 0:01:52.480 --> 0:01:56.160 I think it was raucous. He was interacting with members 0:01:56.200 --> 0:02:00.640 of Congress, and I think performance wise, he may have 0:02:00.760 --> 0:02:03.160 been able to do what he did last year, which 0:02:03.200 --> 0:02:06.800 was quell some of the doubts about his age and 0:02:06.880 --> 0:02:10.760 his ability. So I think from a performance perspective, I'm 0:02:10.800 --> 0:02:13.720 not sure that the White House or the campaign could 0:02:13.720 --> 0:02:16.200 have expected anything more from this president. 0:02:16.480 --> 0:02:20.000 He used this opportunity to contrast over a dozen times 0:02:20.040 --> 0:02:24.960 with his predecessor, the unnamed man in this speech, Donald Trump, 0:02:25.240 --> 0:02:27.880 and I think it was very aggressive in that case, 0:02:27.919 --> 0:02:31.200 So I would say this speech was an offensive speech. 0:02:31.240 --> 0:02:34.400 It was him taking it to Donald Trump, defending the 0:02:34.440 --> 0:02:37.680 turf he's created for himself and his presidency, and talking 0:02:37.680 --> 0:02:41.359 to voters tonight, much more so than Congress, and much 0:02:41.400 --> 0:02:44.639 more so, frankly, than the foreign policy aspects of. 0:02:44.600 --> 0:02:49.280 This Bloomberg political contributors Rick Davis and Genie Zeoso. Biden's 0:02:49.280 --> 0:02:52.200 speech laid out the makings of a re election platform, 0:02:52.480 --> 0:02:56.080 including raising taxes on the wealthy and corporations, push to 0:02:56.160 --> 0:02:58.880 pass a law and acting Roll versus Wade, and expanding 0:02:58.919 --> 0:03:01.000 background checks on gun purchases. 0:03:01.440 --> 0:03:05.120 Well John and the Republican rebuttal Alabama Senator Katie Britt 0:03:05.120 --> 0:03:08.760 called President Biden a dithering and diminished a leader and 0:03:08.800 --> 0:03:12.519 warned of a blank American future under his presidency. Britt 0:03:12.520 --> 0:03:14.560 blasted Biden's work on the border. 0:03:14.880 --> 0:03:22.760 President Biden's border policies are a disgrace. This crisis is despicable, 0:03:23.440 --> 0:03:27.239 and the truth is it is almost entirely preventable. 0:03:27.600 --> 0:03:30.639 Katie Bridd, a first term Alabama Republican, is the youngest 0:03:30.680 --> 0:03:33.320 woman in the Senate at age forty two. It's a 0:03:33.360 --> 0:03:35.720 third year in a row that Republicans have picked a 0:03:35.760 --> 0:03:38.280 woman to speak to the nation after Biden's State of 0:03:38.320 --> 0:03:39.040 the Union. 0:03:39.080 --> 0:03:42.120 And Karen Sting and Washington Congress has started the process 0:03:42.320 --> 0:03:46.640 of having Bike Dance divest TikTok, Bloomberg's and Baxter has 0:03:46.680 --> 0:03:47.440 more in the story. 0:03:47.880 --> 0:03:51.480 The House Energy and Commerce Committee has unanimously passed legislation 0:03:51.600 --> 0:03:54.720 to compel the separation or face having a banned on 0:03:54.840 --> 0:03:58.840 app stores or web hosting services. Congressman Mike Gallagher is 0:03:58.880 --> 0:04:02.160 advancing the legislator says, it's not a ban, it is 0:04:02.200 --> 0:04:02.680 a sale. 0:04:02.760 --> 0:04:06.280 That's the lie that they can tell and disrupt activity 0:04:06.280 --> 0:04:07.720 on the Hill. Can imagine what they could do with 0:04:07.720 --> 0:04:10.960 the app in terms of election year misinformation, in terms 0:04:10.960 --> 0:04:14.120 of misinformation about a war. That proves the point that 0:04:14.200 --> 0:04:16.880 we can't put this app in the hands of our 0:04:16.880 --> 0:04:17.719 foremost adversary. 0:04:17.760 --> 0:04:18.960 The Chinese Communist. 0:04:18.600 --> 0:04:20.960 Party China, of course, is not happy. It even pushed 0:04:20.960 --> 0:04:25.120 out notifications urging users to contact members of Congress to protest. 0:04:25.760 --> 0:04:27.360 Ed Baxter Bloomberg. 0:04:26.920 --> 0:04:28.400 Radio right ed, thanks well. 0:04:28.400 --> 0:04:30.960 He turned to the economy now, and attention is focused 0:04:31.000 --> 0:04:33.320 on the jobs report as we close out the week. 0:04:33.440 --> 0:04:36.599 Economists are forecasting a gain of two hundred thousand jobs, 0:04:36.760 --> 0:04:39.200 and we get a preview from Bloomberg's Michael McKee. 0:04:39.320 --> 0:04:42.400 January's jobs report was a surprise to say the least 0:04:42.520 --> 0:04:45.760 three hundred and fifty three thousand jobs created, a multiple 0:04:45.800 --> 0:04:48.880 of prior months, and a reminder the labor market hasn't 0:04:48.920 --> 0:04:52.520 succumbed to higher interest rates yet. This month's consensus forecast 0:04:52.600 --> 0:04:56.400 sees somewhat weaker but still strong job creation For February, 0:04:56.800 --> 0:05:00.840 Unemployment is expected to be unchanged, still below four percent. 0:05:01.279 --> 0:05:02.960 Michael McKee, Blueberg Radio. 0:05:02.760 --> 0:05:05.440 All right, thanks Mike, and more signs that interest rates 0:05:05.520 --> 0:05:09.359 are coming around the world cuts, that is the Senate 0:05:09.400 --> 0:05:12.040 Banking Committee yesterday, the Fed chair Jay Palin said he's 0:05:12.160 --> 0:05:15.320 well aware of the risk of cutting too late. 0:05:15.640 --> 0:05:18.640 If what we expect and what we're seeing is continued 0:05:18.680 --> 0:05:22.120 strong growth, a strong labor market, and continuing progress and 0:05:22.520 --> 0:05:26.240 bringing inflation down. If that happens, if the economy evolves 0:05:26.279 --> 0:05:29.880 over that path, then we do think that the process 0:05:29.920 --> 0:05:34.800 of carefully removing the restrictive stance of policy will canon 0:05:34.839 --> 0:05:37.240 will begin over the course of this year. 0:05:37.600 --> 0:05:42.479 Meanwhile, Powell's European counterpart, Christine Laguard, offered more specific guidance 0:05:42.560 --> 0:05:45.240 indicating the European Central Bank may be in a position 0:05:45.279 --> 0:05:46.680 to lower rates in June. 0:05:47.160 --> 0:05:53.680 We clearly need more evidence, more data, and we know 0:05:53.800 --> 0:05:57.760 that this data will come in the next few months. 0:05:58.200 --> 0:06:01.359 We will know a little more in April, but we 0:06:01.440 --> 0:06:03.480 will know a lot more in June. 0:06:03.680 --> 0:06:06.920 ECB President Christine Lagard and her fellow policymakers left a 0:06:06.960 --> 0:06:11.040 deposit rate unchanged at four percent for a fourth straight meeting, and. 0:06:11.040 --> 0:06:13.599 Turning to the markets ahead of the jobs report this morning, 0:06:13.680 --> 0:06:17.760 futures are mixed after another record clothes on Wall Street 0:06:18.000 --> 0:06:21.359 and tender year treasury yields are at a one month low. 0:06:21.520 --> 0:06:24.680 Gold is up for an eighth straight day. We SMB 0:06:24.800 --> 0:06:26.960 five hundred is on pace for gains of the past 0:06:27.000 --> 0:06:30.799 seventeen out of nineteen weeks. That's a winning streak last 0:06:30.800 --> 0:06:34.640 scene in the nineteen sixties at Tracy mcmillion, head of 0:06:34.680 --> 0:06:39.159 Global Asset Allocation at Wells Fargo Investment Institute, is cautious 0:06:39.279 --> 0:06:40.000 on the markets. 0:06:40.279 --> 0:06:43.360 At ten percent pullback is not at all uncommon. 0:06:43.440 --> 0:06:47.240 We typically do see about ten percent pullback every year. 0:06:47.640 --> 0:06:50.839 Well Tracy mcmillion, head of Global Aset Allocation at Wells 0:06:50.839 --> 0:06:54.760 Fargo Investment Institute, is looking to move money into small 0:06:54.839 --> 0:06:57.680 cap stocks and emerging markets during any pullback. 0:06:58.520 --> 0:07:01.400 Well stocks sit at a record john it appears investors 0:07:01.440 --> 0:07:03.640 are beginning to pull money out of big tech. Bank 0:07:03.680 --> 0:07:06.440 of America says about four point four billion dollars was 0:07:06.480 --> 0:07:09.400 pulled from tank funds this week. That's the largest weekly 0:07:09.440 --> 0:07:13.400 outflow on record, and strategist Michael Hartnetz says equity markets 0:07:13.400 --> 0:07:16.280 are showing abnormal gains in abnormal times. 0:07:16.880 --> 0:07:19.800 Our shares of General Electric Karen trading at their highest 0:07:19.880 --> 0:07:22.920 levels in more than six years. The stock gain more 0:07:22.960 --> 0:07:26.000 than four percent yesterday after the company's aerospace division set 0:07:26.000 --> 0:07:29.200 plans to return more of its profit to shareholders, and 0:07:29.280 --> 0:07:33.440 that includes restoration of a significant dividend. We spoke yesterday 0:07:33.480 --> 0:07:35.800 with CEO Larry Kulp. 0:07:36.120 --> 0:07:39.240 Both here in the US and around the world. Our 0:07:39.320 --> 0:07:44.520 business supports the warfighter, both in both configurations, and we 0:07:44.640 --> 0:07:48.160 know that there are advanced technologies that governments want to 0:07:48.200 --> 0:07:51.160 deploy or be ready to deploy over time, and that's 0:07:51.160 --> 0:07:54.280 where we're investing from an R and D perspective. 0:07:54.880 --> 0:07:58.480 That's GE CEO Larry Culp. He says operating earnings a 0:07:58.560 --> 0:08:02.720 GE Aerospace at forecast reached ten billion dollars by twenty 0:08:02.880 --> 0:08:07.720 twenty eight, and. 0:08:07.680 --> 0:08:09.080 It's time now for a look at some of the 0:08:09.080 --> 0:08:12.040 other stories making news in New York and around the world, 0:08:12.120 --> 0:08:15.680 and for that were joined by Bloomberg's Michael bar Good Morning, Michael. 0:08:15.520 --> 0:08:19.280 Good Morning, Karen. New York Republican George Santos announced last 0:08:19.360 --> 0:08:22.520 night that he would make another run for a New 0:08:22.640 --> 0:08:26.200 York House seat after being expelled by his colleagues in December. 0:08:26.840 --> 0:08:30.640 The indicted former congressman, who attended Thursday State of the 0:08:30.720 --> 0:08:34.560 Union address, plans to run against Nick Lolota for New 0:08:34.679 --> 0:08:38.520 York's first district. He had previously represented the third district. 0:08:38.760 --> 0:08:42.719 Santos posted the news during President Joe Biden's address. For 0:08:42.800 --> 0:08:45.400 the second day, about seven hundred and fifty members of 0:08:45.440 --> 0:08:48.960 the National Guard were dispersed into several of New York 0:08:49.000 --> 0:08:53.719 City's busy subway stations. Some of the stations include Manhattan's 0:08:53.760 --> 0:08:56.360 Grand Central, that have been plagued by reports of gun 0:08:56.440 --> 0:09:00.679 violence and other crimes. MTA had General Lee insist the 0:09:00.720 --> 0:09:05.600 Guard will not replace the presidents of uniformed NYPD officers 0:09:05.600 --> 0:09:06.480 inside the subway. 0:09:06.840 --> 0:09:10.920 I love uniformed officers of all kinds in my stations. 0:09:11.200 --> 0:09:15.480 Why because fifth when surveyed, fifty five percent of MTA 0:09:15.559 --> 0:09:18.200 customers say the one thing that they want that makes 0:09:18.240 --> 0:09:21.560 them feel safer in the subway is to see a 0:09:21.640 --> 0:09:23.080 uniformed officer. 0:09:23.360 --> 0:09:26.439 MTA Chief General Leber says that the guard will likely 0:09:26.559 --> 0:09:29.360 move day to day to different stations as they're needed. 0:09:29.880 --> 0:09:33.079 An Army soldier at Fort Campbell, Kentucky, has been charged 0:09:33.120 --> 0:09:37.040 with selling military secrets to China. The Justice Department says 0:09:37.080 --> 0:09:41.280 Sergeant Corbin Schultz, who worked as an intelligence analyst, sold 0:09:41.280 --> 0:09:45.160 the information for a total of forty two thousand dollars. 0:09:45.600 --> 0:09:49.480 US attorney Henry Lavendez and Nashville says Schultz was indicted 0:09:49.520 --> 0:09:50.400 on six counts. 0:09:50.520 --> 0:09:54.479 This included documents and information related to advanced fighter aircraft, 0:09:55.040 --> 0:10:01.320 advanced military helicopters, intercontinental ballistic missiles, high mobility artillery rocket systems, 0:10:01.840 --> 0:10:05.520 defensive missile systems in Chinese military tactics. 0:10:06.160 --> 0:10:09.720 Schulz is accused of selling information about the high Mars 0:10:09.880 --> 0:10:13.480 long range rocket system, which the US has given Ukraine 0:10:13.520 --> 0:10:16.800 to fight off the Russian invasion. After applying to join 0:10:16.960 --> 0:10:20.199 nearly two years ago, Sweden officially became the thirty second 0:10:20.200 --> 0:10:24.040 member of the NATO Military Alliance yesterday. It marks an 0:10:24.120 --> 0:10:27.960 end to the country's decades of post World War II neutrality. 0:10:28.480 --> 0:10:31.440 Attorney General Merrick Garland addressed the growing threat of anti 0:10:31.480 --> 0:10:34.440 Semitism in the US and brought in a speech to 0:10:34.520 --> 0:10:38.240 the Anti Defamation League. Garland grew up facing the anti 0:10:38.240 --> 0:10:42.520 semitism other American Jewish families faced. He says his Justice 0:10:42.559 --> 0:10:45.880 Department has seen those threats triple in just the last year. 0:10:46.240 --> 0:10:49.000 They do not capture the fear of Jewish Americans that 0:10:49.160 --> 0:10:52.559 any sign of our identity could make us the target 0:10:52.760 --> 0:10:53.360 of an attack. 0:10:53.559 --> 0:10:56.200 Global news twenty four hours a day and whenever you 0:10:56.240 --> 0:10:58.800 want it with Bloomberg News Now. Michael Barr, this is 0:10:58.800 --> 0:10:59.600 Bloomberg Karent. 0:11:00.000 --> 0:11:02.040 Sorry, Michael, thank you. What we do bring you news 0:11:02.080 --> 0:11:04.679 throughout the day right here on Bloomberg Radio. But now, 0:11:04.720 --> 0:11:07.319 as Michael said, you can get the latest news on demand, 0:11:07.679 --> 0:11:10.520 and that means whenever you want it. Just subscribe to 0:11:10.600 --> 0:11:13.160 Bloomberg News Now and you can get the latest headlines 0:11:13.240 --> 0:11:15.559 right at the click of a button. Get informed on 0:11:15.679 --> 0:11:18.920 your schedule. You can listen and subscribe to Bloomberg News 0:11:18.960 --> 0:11:23.479 Now on the Bloomberg Business app, Bloomberg dot Com plus apples, Spotify, 0:11:23.600 --> 0:11:30.960 and anywhere else you get your podcasts. It is time 0:11:31.000 --> 0:11:33.960 now for the Bloomberg Sports Update. And here's John stash Houer. 0:11:34.080 --> 0:11:36.440 John carrying a big injury in the NBA, where the 0:11:36.440 --> 0:11:39.760 Minnesota Timberwolves have been a big surprise leading the Western Conference, 0:11:39.800 --> 0:11:42.520 but now they're all star Karl Anthony Towns has a 0:11:42.640 --> 0:11:45.280 torn meniscus headed for surgery. We'll certainly miss the rest 0:11:45.280 --> 0:11:47.760 of the regular season. Could be back in the late 0:11:47.800 --> 0:11:50.800 playoff rounds without them. T Wolves went to Indiana. Their 0:11:50.880 --> 0:11:53.839 other all star, Anthony Edwards, poured in forty four points 0:11:53.880 --> 0:11:55.839 and he saved the game at the end. 0:11:56.240 --> 0:11:57.439 So reap out of the Pacers. 0:11:57.480 --> 0:11:58.520 They don't call the time out. 0:11:58.559 --> 0:12:01.520 Haliburton the head of head Smith with it triples. 0:12:01.120 --> 0:12:04.160 If chick watch, Oh my goodness, what a rejection from 0:12:04.160 --> 0:12:06.520 by Anthony Edwards to save the game. 0:12:07.000 --> 0:12:07.800 What thirteen? 0:12:07.840 --> 0:12:10.400 What eleven Wolves? When Walls win? 0:12:10.760 --> 0:12:12.800 He fan with the call. Bad loss for the Nets 0:12:12.840 --> 0:12:15.760 one eighteen one twelve in Detroit, where the Pistons had 0:12:15.800 --> 0:12:18.559 one since January. Pistons had two players, Jordan Ivy and 0:12:18.640 --> 0:12:21.959 Kate Cunningham combined for sixty six points and Denver and 0:12:22.000 --> 0:12:24.840 Nikolioakis triple doubly scored thirty two. The Nuggets beat the 0:12:24.880 --> 0:12:27.760 Celtics won fifteen one o nine. So that's two losses 0:12:27.760 --> 0:12:29.640 for Boston since an eleven game win streak. 0:12:29.679 --> 0:12:30.440 First two game. 0:12:30.360 --> 0:12:33.480 Losing street for the Celtics since November. Warriors lost at 0:12:33.480 --> 0:12:35.680 home to Chicago, won twenty five, won twenty two to 0:12:35.679 --> 0:12:39.640 two Bowls. DeMar DeRozan and Nicolo Vutevich both scored thirty three. 0:12:39.679 --> 0:12:41.920 Steph Curry shod only five of eighteen and late in 0:12:41.960 --> 0:12:44.640 the game Curry limped off with an injured ankle. At 0:12:44.679 --> 0:12:46.760 the Garden tonight, Nickson the Magic at the season ending. 0:12:46.840 --> 0:12:49.199 Now those two would meet in the first round of 0:12:49.200 --> 0:12:51.800 the playoffs. Orlando has beaten the Knicks in each of 0:12:51.840 --> 0:12:54.720 the first three meetings. On the ice in Newark, Devil's 0:12:54.720 --> 0:12:56.800 got a hat trick from Timo Meyer beat Saint Louis 0:12:56.800 --> 0:12:59.319 four to one. The Islanders, with seven different goal scorers, 0:12:59.320 --> 0:13:01.360 won seven to two at San Jose. The Bruins by 0:13:01.400 --> 0:13:04.960 Toronto four to one. College Jibs Rutgers lost at Wisconsin. 0:13:05.040 --> 0:13:07.520 Shane Lowry leads the Palmer Golf at Bay Hill by 0:13:07.520 --> 0:13:08.560 a shot after an opening. 0:13:08.320 --> 0:13:09.200 Around sixty six. 0:13:09.679 --> 0:13:12.720 Russell Wilson, now a free agent, quarterback expected to meet 0:13:12.960 --> 0:13:14.920 with the Pittsburgh's dealer johns. 0:13:14.960 --> 0:13:15.280 Dash I. 0:13:15.320 --> 0:13:16.240 We're Bloomberg Sports. 0:13:16.280 --> 0:13:16.480 John. 0:13:16.520 --> 0:13:19.280 All right, John, thanks very much. President Biden sought to 0:13:19.280 --> 0:13:23.120 breathe new life in his re election rematch against Donald Trump, 0:13:23.559 --> 0:13:27.520 delivering a spirited and sharply political State of the Union 0:13:27.600 --> 0:13:30.880 speech last night. Let's bring in our first guest to discuss. 0:13:31.000 --> 0:13:34.840 Laura Davison is Bloomberg News Politics reporter. Laura. Thanks for 0:13:34.880 --> 0:13:37.600 being with us this morning, appreciate it. How is the 0:13:37.679 --> 0:13:39.680 speech being received this morning? 0:13:40.640 --> 0:13:42.880 So first, really, Biden did the first role of the 0:13:42.880 --> 0:13:45.319 State Union, which is do no harm, do not make 0:13:45.360 --> 0:13:49.160 a major verbal gaff, do not know show signs of 0:13:49.200 --> 0:13:51.720 his age. That was something that has been you know, 0:13:51.800 --> 0:13:54.040 much talked about in this and something that voters are 0:13:54.120 --> 0:13:57.000 very worried about. And who was able to clear that hurdle. 0:13:58.000 --> 0:14:00.560 What Biden did here was really sort of kick off 0:14:00.559 --> 0:14:03.800 his twenty twenty four campaign. Earlier in the week, Trump 0:14:03.880 --> 0:14:06.480 had the spotlight, you know, after Nikki Hayley dropped out, 0:14:06.480 --> 0:14:09.000 after he did very well on Super Tuesday, and this 0:14:09.120 --> 0:14:11.880 was Biden's turn to make his case on the the 0:14:12.040 --> 0:14:14.360 types of policies he would pursue. If he were president, 0:14:14.760 --> 0:14:17.920 you know, things like higher taxes, things like pursuing more 0:14:17.960 --> 0:14:20.760 ways to cut cost for you know, middle class Americans. 0:14:21.760 --> 0:14:25.440 And this was clearly aimed not at the Congress, but 0:14:25.640 --> 0:14:27.160 more at the voting public. 0:14:27.280 --> 0:14:27.560 Was it not? 0:14:28.800 --> 0:14:29.640 Yes, this really? 0:14:29.720 --> 0:14:29.920 You know? 0:14:30.320 --> 0:14:33.560 You know, at times you saw Biden speak directly to 0:14:34.080 --> 0:14:37.360 you know, the the lawmakers in the room with specific points. 0:14:37.360 --> 0:14:41.640 He called on Republicans to get together with Democrats and 0:14:41.640 --> 0:14:44.840 pass this emigration deal that had in stalled in the 0:14:44.920 --> 0:14:49.480 chamber earlier this year. However, you know, really the message 0:14:49.480 --> 0:14:52.640 here was to to you know, to voters, to say, look, 0:14:52.800 --> 0:14:55.320 here's the contrast that I will have with my opponent. 0:14:55.880 --> 0:14:58.320 You know, one of the things that that the Democrats 0:14:58.320 --> 0:15:00.800 and the Biden campaign have been very concerned about is 0:15:00.880 --> 0:15:03.320 just how strongly Trump is performing in the polls and 0:15:03.360 --> 0:15:06.520 swing states. So they're trying to craft this message to say, hey, 0:15:06.600 --> 0:15:09.520 remember you know what you know, Trump's reign was like, 0:15:09.520 --> 0:15:11.520 we want to you know, paint a different picture of 0:15:11.560 --> 0:15:14.000 what the next four years under Biden could look like. 0:15:14.280 --> 0:15:16.600 Did he appear resilient? I mean, of course, there are 0:15:16.680 --> 0:15:19.440 questions about the eighty one year old president's age and 0:15:19.480 --> 0:15:22.440 concerns about that. Did he seemed to allay any of 0:15:22.520 --> 0:15:25.520 those concerns with the performance last night? It was what 0:15:25.680 --> 0:15:28.640 over an hour speech, over an hour. 0:15:28.560 --> 0:15:31.520 Speech, and he also, you know, at several times opted 0:15:31.560 --> 0:15:34.560 to go off script. You know, at one point, you know, 0:15:34.600 --> 0:15:38.080 he was being heckled by Marjorie Taylor Green and he 0:15:38.120 --> 0:15:41.320 actually you know, addressed her directly addressed the issue she 0:15:41.360 --> 0:15:43.080 wanted it, and really was able to sort of prove 0:15:43.160 --> 0:15:46.880 that that vibrancy this is, you know, been an issue 0:15:47.120 --> 0:15:50.000 that that that Biden has been you know, trying to 0:15:50.080 --> 0:15:52.240 figure out how to you know, sort of tackle the 0:15:52.280 --> 0:15:55.000 age issue head on, make jokes about it or you know, 0:15:55.280 --> 0:15:58.880 in the case, which he did very effectively last year, 0:15:58.960 --> 0:16:00.920 is sort of you know, getting to these back and 0:16:00.920 --> 0:16:03.840 forth you know, shouting matches at points with Republicans, and 0:16:04.280 --> 0:16:06.240 you know, he's really able to command that stage and 0:16:06.240 --> 0:16:07.800 and and sort of get the last word. 0:16:08.560 --> 0:16:11.120 Go into a little more detail about the issues that 0:16:11.160 --> 0:16:14.040 were brought up and the issues that are likely to 0:16:14.040 --> 0:16:17.440 be first and foremost among voters as we approach the 0:16:17.480 --> 0:16:19.960 November elanctionin how did he address those issues? 0:16:21.040 --> 0:16:24.720 So he really opened up his remarks talking specifically about 0:16:25.320 --> 0:16:28.800 some of the threats to democracy that that Trump posed 0:16:28.800 --> 0:16:30.680 in his words. You know, so things like you know, 0:16:31.560 --> 0:16:35.000 standing with NATO allies, you know specifically, you know, looking 0:16:35.120 --> 0:16:38.560 making sure that Ukraine has continued support so that Putin 0:16:38.640 --> 0:16:41.800 is not able to sort of advance and take more 0:16:42.120 --> 0:16:46.960 control over Ukraine. He also this was really a domestic 0:16:47.080 --> 0:16:51.200 policy speech at its core, so he ticked through his accomplishments, 0:16:51.200 --> 0:16:56.240 you know, citing things like more money for chips, infrastructure, 0:16:56.920 --> 0:16:59.600 the Inflation Reduction Act would had a lot of investments 0:16:59.600 --> 0:17:03.720 and renewed technology, and then kind of made this pivot to, 0:17:03.880 --> 0:17:05.960 you know, here are the things that we do next, 0:17:06.320 --> 0:17:10.119 you know, paid for by higher taxes on corporations and 0:17:10.119 --> 0:17:12.480 the wealthy. He you know, really renewed his commitment to 0:17:12.560 --> 0:17:15.520 things like tax breaks for middle classes, you know, so uh, 0:17:15.680 --> 0:17:18.000 you know, the child tax credit. He talked about a 0:17:18.040 --> 0:17:21.879 new tax credit for first time home buyers. You know, 0:17:22.000 --> 0:17:25.520 also looking at other ways to reduce things like drug prices, 0:17:25.800 --> 0:17:30.680 grocery prices, and you know, go after corporate inflation in 0:17:31.000 --> 0:17:31.719 various ways. 0:17:32.119 --> 0:17:35.840 Laura always a pleasure appreciated. Lori Davidson, Bloomberg News Politics 0:17:35.880 --> 0:17:40.080 reporter recapping last night the State of the Union, addressed 0:17:40.119 --> 0:17:43.560 by President Biden, and our other top story this morning 0:17:43.960 --> 0:17:46.240 was stocks they hit an old time high the run 0:17:46.320 --> 0:17:48.919 up to the jobs report out this morning, and for 0:17:49.000 --> 0:17:51.879 more than that. We are now joined by Lori Calvacina, 0:17:52.240 --> 0:17:56.240 head of US Anquity Strategy at RBC Capital Markets. Ri 0:17:56.440 --> 0:17:59.119 Or it's always a pleasure talking to you, another record, 0:17:59.240 --> 0:18:01.560 So what next for stocks? 0:18:02.640 --> 0:18:03.440 Well, thanks for. 0:18:03.359 --> 0:18:05.720 Having me as always, and look, I think the stock 0:18:05.760 --> 0:18:08.119 market has been very interesting over the last couple of 0:18:08.160 --> 0:18:10.240 weeks because as I've been out on the road talking 0:18:10.240 --> 0:18:13.159 to investors, I've heard a lot of worrying and a 0:18:13.200 --> 0:18:16.040 lot of angst that the US economy is so hot 0:18:16.080 --> 0:18:20.000 the FED can't possibly cut rates. I think Chairman Towel 0:18:20.040 --> 0:18:22.200 through a bit of cold water on that earlier this week. 0:18:22.240 --> 0:18:24.560 But I do think even before that, the market was 0:18:24.640 --> 0:18:28.199 really queuing and climbing off of this idea that the 0:18:28.240 --> 0:18:32.119 economy is much much hotter than people anticipated. And so 0:18:32.160 --> 0:18:34.160 it seems like good news is good news for now. 0:18:34.560 --> 0:18:37.800 Well, Pal said, the FED is what were his words, 0:18:37.840 --> 0:18:42.840 not far from the level of confidence needed to ease policy. 0:18:43.320 --> 0:18:45.920 I also have to wonder, Lorie, the extent to which 0:18:46.240 --> 0:18:50.159 FED policy is even in the driver's seat for equities. 0:18:50.240 --> 0:18:55.040 Maybe it's just something like momentum or earnings. 0:18:55.400 --> 0:18:57.600 I think that's fair, you know. I think as we 0:18:57.640 --> 0:19:00.679 went through this last reporting season, it felt to me 0:19:00.720 --> 0:19:02.840 to the audits like companies we're trying to talk down 0:19:02.920 --> 0:19:06.440 expectations a little bit. There were no absolutely, in my mind, 0:19:06.480 --> 0:19:09.480 no eminent signs of any kind of cracks in the economy. 0:19:09.720 --> 0:19:12.199 Obviously some companies are having issues here and there, but 0:19:12.359 --> 0:19:15.879 generally looks like a pretty solid economy underneath the surface. 0:19:15.960 --> 0:19:18.199 Lots and lots of complaints about costs, which if may 0:19:18.280 --> 0:19:20.040 have been driving some of the you know, I wouldn't 0:19:20.040 --> 0:19:22.240 even call it cautious commentary. It just it felt like 0:19:22.280 --> 0:19:26.000 people were trying to keep expectations in check. But I 0:19:26.040 --> 0:19:29.160 do think that we're editing, you know, kind of. 0:19:29.119 --> 0:19:31.920 This period in twenty two twenty three that was similar 0:19:32.000 --> 0:19:35.080 to twenty ten, twenty eleven, or two oh three, kind 0:19:35.080 --> 0:19:38.159 of these periods of messy post crisis normalization that we 0:19:38.240 --> 0:19:41.640 tend to experience after major shocks to the world order, 0:19:41.720 --> 0:19:43.879 to the global economy, you know, things like the tech bubble, 0:19:43.880 --> 0:19:47.080 the GFC, COVID, these are all major major mile markers 0:19:47.600 --> 0:19:49.159 for the economy and the stock market, and. 0:19:49.160 --> 0:19:52.160 It takes time for the investment community to get back 0:19:52.200 --> 0:19:54.359 on its feet after that happens. It takes time for 0:19:54.400 --> 0:19:57.159 the economy as well. And I think we're sort of 0:19:57.240 --> 0:20:00.560 coming out of you know, kind of the fog speak 0:20:00.800 --> 0:20:03.359 and investors are really able to recognize the underlying strength. 0:20:03.400 --> 0:20:04.800 And I think there's still you know, just a lot 0:20:04.840 --> 0:20:08.200 of healing that's going on psychologically that's powering this economy. 0:20:08.520 --> 0:20:10.679 We have the equal weight version of the S and 0:20:10.680 --> 0:20:13.800 P five hundred that set record for the first time 0:20:13.840 --> 0:20:16.800 in a couple of years. Does that put to bed 0:20:16.880 --> 0:20:19.320 concerns about a market bredth? 0:20:20.760 --> 0:20:23.920 I think I wouldn't say entirely. You know, it's funny 0:20:23.920 --> 0:20:26.760 in the market breadth conversation, it was the Mag seven, 0:20:26.960 --> 0:20:28.880 you know, we joke it down to the terrific three. 0:20:29.000 --> 0:20:31.360 Some people have started play was only one stock now, 0:20:31.760 --> 0:20:35.080 But there's been this Darwinistic attack on that Mag seven bucket. 0:20:35.119 --> 0:20:37.280 And if your earnings growth isn't holding up, they kick 0:20:37.280 --> 0:20:37.679 you out. 0:20:37.520 --> 0:20:38.040 Of the bucket. 0:20:38.880 --> 0:20:41.600 And so what we've seen is that investors are sniffing 0:20:41.640 --> 0:20:45.200 out the idea that the earnings growth advantage of these 0:20:45.240 --> 0:20:48.160 major stocks that have dominated the market is shrinking relative 0:20:48.160 --> 0:20:49.479 to the rest of the market, and I think that 0:20:49.520 --> 0:20:52.960 gap is going to continue to strength shrink as economic 0:20:53.040 --> 0:20:57.240 expectations improve. Generally, I think that should boose cyclical companies, 0:20:57.359 --> 0:21:00.960 value companies, small cap companies, and their earnings prosite, which 0:21:00.960 --> 0:21:03.680 will encourage investors to rotate into other things. And I've 0:21:03.680 --> 0:21:05.760 been telling you know, I have someone I speak with 0:21:05.840 --> 0:21:08.440 it's just convinced that the market has to go down 0:21:08.680 --> 0:21:11.080 if we see a rotation out of these biggest names. 0:21:11.080 --> 0:21:12.840 And I say, just remember, if you take a little 0:21:12.840 --> 0:21:15.119 bit of market cap out of those biggest names and 0:21:15.200 --> 0:21:17.640 put them into the rest of the market, just proportionally, 0:21:18.359 --> 0:21:20.560 it's very, very different. What's a drop in the bucket, 0:21:20.560 --> 0:21:22.159 for one, is a bit of a flood in the 0:21:22.200 --> 0:21:24.200 rest of the market, especially if you look at things 0:21:24.240 --> 0:21:27.119 like small caps, and so I do think the market 0:21:27.160 --> 0:21:29.959 has the ability to weather that rotation and you know, 0:21:30.119 --> 0:21:33.320 and not really suffer any extreme damage because of it. 0:21:33.600 --> 0:21:37.400 Hey, what's the house view this morning? The consensus as 0:21:37.400 --> 0:21:40.240 far as Bloomberg, the economists surveyed by Bloomberg is a 0:21:40.240 --> 0:21:42.960 two hundred thousand on the Payrolls report. What are you 0:21:42.960 --> 0:21:43.640 guys looking for? 0:21:44.600 --> 0:21:47.320 So our economists are looking for something a bit higher 0:21:47.320 --> 0:21:50.680 than that, and they are also paying attention to the 0:21:50.760 --> 0:21:54.359 unemployment rate, and so I think, you know, they're not 0:21:54.520 --> 0:21:56.920 overly worried about this in terms of our FED call 0:21:57.040 --> 0:21:59.440 and our specific number, and we're looking for two sixty. 0:22:00.160 --> 0:22:03.320 And you know, I think that our team has been very, 0:22:03.400 --> 0:22:05.440 very fortunate to work with them for the past year 0:22:05.480 --> 0:22:08.360 because they've been telling me to look for June cuts. 0:22:08.640 --> 0:22:10.880 We were never in the March camp, and we've also 0:22:11.000 --> 0:22:13.400 never really been in, you know, sort of this camp 0:22:13.440 --> 0:22:15.800 that was looking for any kind of nasty downturn early 0:22:15.840 --> 0:22:18.679 this year. We've generally been into soft landing camp for 0:22:18.800 --> 0:22:20.840 quite some time. Even though our team worked, everyone else 0:22:20.880 --> 0:22:22.680 has had to adjust their numbers up a little bit. 0:22:23.359 --> 0:22:25.000 So we never thought we were going to see this 0:22:25.080 --> 0:22:26.920 massive damage to the labor market that was going to 0:22:26.960 --> 0:22:30.880 cause the panic the FED to induce these panic cuts. 0:22:31.480 --> 0:22:33.080 So you know, we're looking for good news to be 0:22:33.080 --> 0:22:33.640 good news again. 0:22:33.680 --> 0:22:38.040 Today, you're listening to Bloomberg Daybreak Today, your morning brief 0:22:38.119 --> 0:22:41.000 on the stories making news from Wall Street to Washington 0:22:41.119 --> 0:22:41.760 and beyond. 0:22:41.960 --> 0:22:44.760 Look for us on your podcast beat at six am 0:22:44.800 --> 0:22:48.480 Eastern each morning on Apple, Spotify and anywhere else you 0:22:48.520 --> 0:22:49.640 get your podcasts. 0:22:50.080 --> 0:22:52.480 You can also listen live each morning starting at five 0:22:52.480 --> 0:22:54.959 am Wall Street Time, on Bloomberg eleven three to zero 0:22:55.000 --> 0:22:57.760 in New York, Bloomberg ninety nine to one in Washington, 0:22:58.119 --> 0:23:01.000 Bloomberg one O six one in Boston, and Bloomberg nine 0:23:01.160 --> 0:23:02.480 sixty in San Francisco. 0:23:02.840 --> 0:23:06.000 Our flagship New York station is also available on your 0:23:06.040 --> 0:23:11.160 Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty. 0:23:11.280 --> 0:23:14.280 Plus listen coast to coast on the Bloomberg Business app, 0:23:14.359 --> 0:23:19.120 serious Xmbeiheartradio app, and on Bloomberg dot com. I'm John 0:23:19.160 --> 0:23:21.280 Tucker and I'm Karen Moscow. 0:23:21.480 --> 0:23:24.240 Join us again tomorrow morning for all the news you 0:23:24.359 --> 0:23:27.600 need to start your day right here on Bloomberg Daybreak