GameStop Soars; Nvidia New Chips

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 --> 0:00:16.480 following today, Karen. 0:00:16.520 --> 0:00:18.599 We began the first trading day of the month of 0:00:18.720 --> 0:00:22.560 June with Memestocks on the move. Let's get the latest 0:00:22.600 --> 0:00:24.880 with Bloomberg's John Tucker, John. 0:00:24.640 --> 0:00:28.240 Yeah, Nathan. GameStop shares rocketing higher this morning. This comes 0:00:28.280 --> 0:00:31.120 after the Reddit account that drove the meanstock Manium twenty 0:00:31.160 --> 0:00:34.240 twenty one posted what appeared to be a one hundred 0:00:34.240 --> 0:00:37.600 and sixteen million dollar position in the game retailer. A 0:00:37.720 --> 0:00:41.480 screen shot by Keith Gill shows five million cheers bought 0:00:41.479 --> 0:00:44.840 a twenty one twenty seven per share. The screen shot, 0:00:44.920 --> 0:00:48.920 which also included one hundred twenty thousand call options, couldn't 0:00:48.960 --> 0:00:52.720 be verified on social media, Gil, using his account handle 0:00:52.840 --> 0:00:56.440 Roaring Kitty, also posted an image of an Uno reverse cord, 0:00:56.920 --> 0:00:58.720 the post that attracted more than four and a half 0:00:58.760 --> 0:01:01.720 million views in about five hours. You'll recall that back 0:01:01.760 --> 0:01:04.679 in mid May, Gil returned to x with an image 0:01:04.680 --> 0:01:09.160 of a video game person leaning in, fueling anticipation is 0:01:09.160 --> 0:01:11.920 going to actively return to the market. Well other medium 0:01:11.959 --> 0:01:14.760 stocks they're also getting a boost and shares of Game Stop. 0:01:14.800 --> 0:01:18.800 We'll I'll start there. They are upright now sixty nine percent. 0:01:18.920 --> 0:01:22.800 Shares of AMC Entertainment they're up twenty six percent. I'm 0:01:22.840 --> 0:01:24.480 John Tucker, Bloomberg Radio. 0:01:24.640 --> 0:01:26.959 Right, John, thank you. But we're also seeing in Nvidia 0:01:27.080 --> 0:01:29.959 shares on the move. They're up almost three percent. The 0:01:30.000 --> 0:01:33.240 company has plenty to upgrade its AI accelerator chips every 0:01:33.360 --> 0:01:36.000 year as it seeks to broaden its customer base beyond 0:01:36.000 --> 0:01:39.920 cloud computing giants. CEO Jensen Wong announced a new Blackwell 0:01:40.040 --> 0:01:42.760 Ulter chip for next year and the development of an 0:01:42.760 --> 0:01:47.080 AI platform called Rubin for twenty twenty six for future laptop. 0:01:47.440 --> 0:01:50.960 Your future PC will become an AI. You'll be constantly 0:01:51.040 --> 0:01:52.880 helping you, assisting. 0:01:52.400 --> 0:01:57.560 You in the background. The PC will also run applications 0:01:57.560 --> 0:01:59.040 that are enhanced by an. 0:02:00.840 --> 0:02:02.280 Your PC will. 0:02:02.120 --> 0:02:07.800 Also post applications with digital humans that are as. 0:02:07.960 --> 0:02:10.880 In Vidia CEO Jensen Wong was speaking at the Computex 0:02:11.000 --> 0:02:14.120 conference in Taiwan. He compared the rise of AI to 0:02:14.160 --> 0:02:15.840 the Industrial Revolution. 0:02:15.720 --> 0:02:18.280 And not to be outdone, Karen Advanced micro Devices is 0:02:18.280 --> 0:02:22.600 speeding up introductions of new artificial intelligence processors as it 0:02:22.720 --> 0:02:26.320 seeks to dent in Vidia's domination of that lucrative market. 0:02:26.600 --> 0:02:30.600 AMD's CEO Lisa Sue was also at the Computex conference 0:02:30.639 --> 0:02:33.960 in Taiwan. She says the MII three twenty five X 0:02:34.000 --> 0:02:35.840 will go on sale in the fourth quarter. 0:02:36.480 --> 0:02:36.600 Well. 0:02:36.720 --> 0:02:39.520 Nathan Stocks in India search to our record after exit 0:02:39.560 --> 0:02:43.080 polls signaled an emphatic victory for Prime Minister Narendra Modi's 0:02:43.120 --> 0:02:46.720 ruling party. Winning by a landslide would enable Modi's party 0:02:46.760 --> 0:02:49.639 to push through policies that are seen as crucial by 0:02:49.680 --> 0:02:54.120 some investors for boosting India's economic growth, already among the 0:02:54.120 --> 0:02:55.000 world's fastest. 0:02:55.120 --> 0:02:57.520 And another important election we're looking at this morning. Karen 0:02:57.680 --> 0:03:01.280 is in South Africa. The ruling African National Congress has 0:03:01.400 --> 0:03:04.280 now begun talks with its rivals to form a government. 0:03:04.680 --> 0:03:08.000 The move comes after the party lost its parliamentary majority 0:03:08.040 --> 0:03:10.880 for the first time since Nelson Mandela led it to 0:03:10.919 --> 0:03:14.200 power at the end of apartheid in nineteen ninety four. 0:03:14.639 --> 0:03:17.960 And See leader Serril Ramaposa says the result is assigned. 0:03:18.040 --> 0:03:21.520 The South African people wanted more cooperation among major parties. 0:03:21.919 --> 0:03:25.280 What this election has made plain is that the people 0:03:25.360 --> 0:03:29.560 of South Africa expect their leaders to work together to 0:03:29.720 --> 0:03:33.280 meet their needs. They expect the parties for which they 0:03:33.320 --> 0:03:37.120 have voted to act and work together for the good 0:03:37.400 --> 0:03:38.200 of everyone. 0:03:38.520 --> 0:03:42.160 Ramaposa's ANC got a vote share of just over forty percent. 0:03:42.240 --> 0:03:45.280 That's down from more than fifty seven percent five years ago. 0:03:45.800 --> 0:03:48.000 Well, Nathan to the latest from the Middle East. Now, 0:03:48.040 --> 0:03:50.440 the White House is continuing to push what it says 0:03:50.560 --> 0:03:53.360 is an Israeli proposal to end the war with Hamas. 0:03:53.800 --> 0:03:58.040 National Security spokesman John Kirby discussed it on ABC's This Week. 0:03:58.120 --> 0:04:00.960 Where we are right now? Is that propose? An Israeli 0:04:01.000 --> 0:04:03.800 proposal has been given to Hamas. It was done on 0:04:03.880 --> 0:04:07.320 Thursday night our time. We're waiting for an official response 0:04:07.360 --> 0:04:10.600 from Hamas. We would note that publicly Hamas officials came 0:04:10.640 --> 0:04:14.120 out and welcomed this proposal. So what would we hope 0:04:14.240 --> 0:04:17.360 happen is they would agree to start Phase one as 0:04:17.360 --> 0:04:18.200 soon as possible. 0:04:18.600 --> 0:04:21.560 Why how Spokesman John Kirby says that Phase one would 0:04:21.600 --> 0:04:24.400 be a six week truce where hostages and prisoners would 0:04:24.400 --> 0:04:27.479 be exchanged, followed by a second phase focused on a 0:04:27.520 --> 0:04:31.480 permanent ceasefire, then major reconstruction in Gaza. But is really 0:04:31.520 --> 0:04:34.640 prime Minister Benjamin et Yaho says the plan he's agreed 0:04:34.640 --> 0:04:37.960 to does not include a permanent ceasefire. In a statement, 0:04:38.000 --> 0:04:41.480 he says that would be a non starters. Samasa's capabilities 0:04:41.520 --> 0:04:44.120 are destroyed in all hostages are freed first. 0:04:44.400 --> 0:04:47.680 In other political news, Karen Donald Trump's legal team is 0:04:47.720 --> 0:04:51.280 now confirming it is readying an appeal to his recent 0:04:51.360 --> 0:04:53.960 convictions in the hush money trial. We get that story 0:04:53.960 --> 0:04:55.240 from Bloomberg's Ed Baxter. 0:04:55.560 --> 0:04:58.960 Trump attorney Will Sharp says it deals with judicial fairness. 0:04:59.040 --> 0:05:01.760 We're going to speedily appeal this unjust verdict. I think 0:05:01.800 --> 0:05:04.800 this case is replete with reversible error. We plan to 0:05:04.880 --> 0:05:07.960 vigorously defend President Trump's rights in the appellate courts all 0:05:07.960 --> 0:05:10.039 the way up to the US Supreme Court if necessary. 0:05:10.120 --> 0:05:12.719 On ABC has heard on Bloomberg saying problems with jury 0:05:12.760 --> 0:05:16.440 instruction and denial of change of venue. Congressman Adam Schiff, 0:05:16.520 --> 0:05:19.239 co chair of the January sixth Committee, says the reaction 0:05:19.360 --> 0:05:20.520 to venue is simple. 0:05:20.720 --> 0:05:23.120 If you don't want to be tried in front of 0:05:23.120 --> 0:05:25.039 a New York jera, then maybe don't commit so many 0:05:25.040 --> 0:05:26.159 crimes in New York City. 0:05:26.440 --> 0:05:29.039 Shiff says he sees no grounds for appeal, does say 0:05:29.040 --> 0:05:32.719 the whole process will definitely take beyond election day. Head 0:05:32.760 --> 0:05:34.560 Baxter Bloomberg Radio, All. 0:05:34.480 --> 0:05:35.280 Right, ed, thank you well. 0:05:35.320 --> 0:05:38.520 As survey by Bloomberg shows that investors are worried about 0:05:38.560 --> 0:05:41.719 the Federal reserves independence if Donald Trump is re elected 0:05:41.720 --> 0:05:45.159 as president in November. Forty four percent of those responding 0:05:45.200 --> 0:05:48.440 to Our Market's Live Paul survey said they expect the 0:05:48.480 --> 0:05:51.640 former president to politicize the Central Bank or limit its 0:05:51.720 --> 0:05:54.200 power if he returns to the White House. They also 0:05:54.240 --> 0:05:56.680 expect volatility in the bond market in the event of 0:05:56.680 --> 0:05:59.400 a Trump victory, with around a quarter seeing the ten 0:05:59.480 --> 0:06:02.920 year treasure Yell jumping by more than twenty five basis points. 0:06:03.080 --> 0:06:05.320 And speaking of the Fed, Karen, we're getting more signals 0:06:05.320 --> 0:06:07.360 that the Central Bank is going to stand pat for 0:06:07.440 --> 0:06:10.920 a while. Minneapolis Fed President Neil Cashcari tells The Financial 0:06:10.920 --> 0:06:13.479 Times the Fed will likely keep interest rates on hold 0:06:13.520 --> 0:06:16.840 for an extended period of time. He says new economic 0:06:16.920 --> 0:06:19.960 data will need to convince policymakers that inflation is on 0:06:20.080 --> 0:06:20.720 the way down. 0:06:21.320 --> 0:06:23.120 Well, Nathan, we have some deal news to get you 0:06:23.160 --> 0:06:25.919 caught up on this morning. Bloomberg News has learned film 0:06:25.920 --> 0:06:29.760 producer David Ellison's latest offer for Paramount Global includes an 0:06:29.760 --> 0:06:33.320 option for non voting shareholders to cash out a portion 0:06:33.400 --> 0:06:36.640 of their stock for about fifteen dollars a share. The offer, 0:06:36.880 --> 0:06:40.359 roughly twenty six percent premium to Friday's closing price, is 0:06:40.400 --> 0:06:42.800 for only some of the shares. The cash payout is 0:06:42.839 --> 0:06:45.200 the latest attempt by Ellison to sweeten the terms of 0:06:45.240 --> 0:06:48.440 a deal that has faced opposition from some investors. Shares 0:06:48.440 --> 0:06:50.440 a Paramount up around four percent. 0:06:50.160 --> 0:06:52.479 This morning, and another stock on the move this morning 0:06:52.600 --> 0:06:55.480 is Stereocycle Karen. Those shares are up about four and 0:06:55.520 --> 0:06:58.560 a half percent. The Wall Street journals reporting the Waste 0:06:58.560 --> 0:07:01.680 Management is close to a deal to buy that medical 0:07:01.720 --> 0:07:02.960 waste disposal company. 0:07:06.440 --> 0:07:07.720 And it's time now for a look at some of 0:07:07.760 --> 0:07:09.800 the other stories making news in New York and around 0:07:09.840 --> 0:07:10.280 the world. 0:07:10.320 --> 0:07:12.800 And for that we're joined by Bloomberg's Michael Barr. Michael, 0:07:12.800 --> 0:07:14.160 Good Morning, Good morning, Karen. 0:07:14.280 --> 0:07:19.000 Mexico's projected election winner, Claudia Shanebaum, will become the first 0:07:19.040 --> 0:07:26.800 woman president in the country's two hundred year history, making 0:07:27.280 --> 0:07:30.600 The climate scientist and former Mexico City mayor said last 0:07:30.680 --> 0:07:34.040 night that her two competitors had called her and conceded 0:07:34.040 --> 0:07:37.920 her victory. Shane Baum had between fifty eight and almost 0:07:37.960 --> 0:07:40.640 sixty one percent of the vote. For the first time ever, 0:07:40.920 --> 0:07:44.720 Mexican nationals living in the Chicago area were allowed to 0:07:44.720 --> 0:07:47.400 cast their vote at the Consulate General in the city. 0:07:47.760 --> 0:07:50.360 Hundreds lined up all day waiting for hours to cast 0:07:50.360 --> 0:07:51.760 their ballot, including this woman. 0:07:51.960 --> 0:07:56.960 For me, It's the most important election of my lifetime. 0:07:57.320 --> 0:07:59.880 Shane Baum said that the voting had been peaceful, but 0:08:00.560 --> 0:08:03.960 Mexico's largest ever elections were also the deadliest in its 0:08:04.040 --> 0:08:07.120 modern history for the tax carried out against candidates and 0:08:07.200 --> 0:08:10.600 people close to them. Jerry's election is set to begin today, 0:08:10.640 --> 0:08:13.760 and the federal gun case against President Joe Biden's son, 0:08:14.240 --> 0:08:17.360 after a deal with prosecutors fell apart. They would have 0:08:17.360 --> 0:08:19.960 avoided the spectacle of a trial so close to the 0:08:19.960 --> 0:08:23.520 twenty twenty four election. Hunter Biden has been charged with 0:08:23.680 --> 0:08:27.160 lying on federal gun purchase forms when he said he 0:08:27.240 --> 0:08:30.600 wasn't a drug addict. He has pleaded not guilty. Hunter 0:08:30.640 --> 0:08:33.720 Biden is also facing a separate trial in California in 0:08:33.760 --> 0:08:36.720 September on charges of failing to pay one point four 0:08:36.760 --> 0:08:40.439 million dollars in taxes more than sixty US World War 0:08:40.480 --> 0:08:43.920 II veterans arrived in Paris over the weekend to participate 0:08:44.040 --> 0:08:47.720 in ceremonies marking the eightieth anniversary of D Day. The 0:08:47.760 --> 0:08:51.120 youngest World War Two veteran on the American Airlines flight 0:08:51.160 --> 0:08:54.000 from Dallas to Paris was ninety six, the oldest one 0:08:54.080 --> 0:08:57.200 hundred and seven. The group was welcomed by Philippe and Tienne, 0:08:57.280 --> 0:09:01.400 president of Mission Liberation, a former French ambassador to the US. 0:09:01.720 --> 0:09:07.120 Your presence here in France symbolizes not only the spirit 0:09:07.200 --> 0:09:12.280 of fraternity and solidarity that prevailed during those dark years, 0:09:12.559 --> 0:09:18.000 but also the unbreakable alliance between our two nations. 0:09:18.320 --> 0:09:21.360 The former French ambassador also says there were also two 0:09:21.440 --> 0:09:25.240 Rosy the Riveters among the veterans, representing women who worked 0:09:25.280 --> 0:09:28.439 in factories and shipyards during the war. Global News twenty 0:09:28.440 --> 0:09:30.360 four hours a day and whenever you want it with 0:09:30.440 --> 0:09:33.880 Bloomberg News Now. I'm Michael Barr. This is Bloomberg hererott. 0:09:33.640 --> 0:09:34.400 Ory, Michael Barr. 0:09:34.440 --> 0:09:34.800 Thank you. 0:09:39.600 --> 0:09:42.520 Time now for the Bloomberg Sports Update with John Stanshauer 0:09:42.640 --> 0:09:43.240 Junk of Morning. 0:09:43.320 --> 0:09:46.520 Good Morning Karen. The Yankees just spent ten days in California. 0:09:46.559 --> 0:09:48.559 They won two of three in San Diego. Took two 0:09:48.559 --> 0:09:50.719 of three at Anaheim, and it looked like that was 0:09:50.760 --> 0:09:53.120 how the series was going to go. In San Francisco, 0:09:53.200 --> 0:09:56.440 the Yanks trailed in the nineteen eight Here what oh. 0:09:56.679 --> 0:10:00.439 Swinging a fly ball deep white field Stretchky. 0:10:00.120 --> 0:10:01.679 Turns and what is it? 0:10:01.559 --> 0:10:02.000 It is? 0:10:02.160 --> 0:10:03.600 God? 0:10:03.640 --> 0:10:04.200 Go ahead? 0:10:04.280 --> 0:10:07.320 Two roun bless by one Sodo. 0:10:10.240 --> 0:10:12.560 He gives the Yankees the lead in the top of 0:10:12.640 --> 0:10:15.480 the nine, going over the twenty four foot high wall 0:10:15.559 --> 0:10:16.160 and right. 0:10:16.200 --> 0:10:18.160 On Wfan So it was the last part of a 0:10:18.240 --> 0:10:21.160 four run rally. Yanks beat the Giants seven to five 0:10:21.240 --> 0:10:23.600 for a series sweep and a seven and two road trip. 0:10:23.679 --> 0:10:26.120 Soto had earlier homeward in the first inning a city field. 0:10:26.520 --> 0:10:30.000 Arizona's Kettle Marte also homeward in the first and the ninth, 0:10:30.040 --> 0:10:32.720 two runs shown off Jake Diekman a rally. The Diamondbacks 0:10:32.760 --> 0:10:35.080 passed the Mets five to four. To the Mets when 0:10:35.240 --> 0:10:37.760 nine and nineteen in May, they're zero and two. In June, 0:10:37.840 --> 0:10:39.920 Red Sox blew with three nothing. Lee lost in Detroit 0:10:39.960 --> 0:10:43.240 eight to four ten innings. Nationals won five two in Cleveland. 0:10:43.240 --> 0:10:45.199 The Ools is just their second loss in the last ten. 0:10:45.280 --> 0:10:47.720 Beaten by Tampa Bay four to three. It'll be the 0:10:47.720 --> 0:10:50.679 Panthers and Oilers playing for the Stanley Cup. It'll be 0:10:50.720 --> 0:10:53.960 the longest distance between the two cities in Cup final 0:10:54.080 --> 0:10:57.520 history and Edmonton Oilers scored twice in the first period 0:10:57.559 --> 0:10:59.640 that was enough to finish off Dallas two to one, 0:10:59.679 --> 0:11:02.040 taking in the West Final four games to two. At 0:11:02.080 --> 0:11:04.480 the front j Open fourth round wins breonnic Cinner and 0:11:04.559 --> 0:11:08.920 Carlos alcaaz Novak. Djokovic placed today, back from his third 0:11:09.000 --> 0:11:10.680 round win that took four and a half hours and 0:11:10.840 --> 0:11:14.199 ended at three am Paris time. The lefty from Scotland, 0:11:14.280 --> 0:11:18.120 Robert McIntyre's first PGA win in Canada. He won with 0:11:18.160 --> 0:11:21.600 his father as his caddie. Yukusasso won the US Women's 0:11:21.640 --> 0:11:24.640 Open for the second time. She's only twenty two. Some 0:11:24.800 --> 0:11:27.720 own biles now twenty seven. She won the US Gymnastics 0:11:27.760 --> 0:11:30.560 title for the ninth time. Next up the Olympic Trials 0:11:30.600 --> 0:11:34.040 next month. John Stasheward Bloomberg Sports Cannon Nathan. 0:11:35.960 --> 0:11:40.120 Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, 0:11:40.200 --> 0:11:43.080 and around the world on Bloomberg dot Com and the 0:11:43.120 --> 0:11:44.400 Bloomberg Business app. 0:11:44.559 --> 0:11:48.400 This is Bloomberg Daybreak. Good morning on Nathan Hager. As 0:11:48.440 --> 0:11:50.480 we head into a new trading month, the market is 0:11:50.520 --> 0:11:53.920 feeling a bit like twenty twenty one. This morning, meme 0:11:54.120 --> 0:11:57.720 names are seeing the biggest moves after the investing influencer 0:11:57.840 --> 0:12:00.800 known as Roaring Kitty posted but it looks like a 0:12:00.840 --> 0:12:04.600 big position in game Stop and other stocks that retail 0:12:04.600 --> 0:12:08.600 investors piled into three years ago are soaring off the 0:12:08.640 --> 0:12:10.760 back of it. For more on this, what else do 0:12:10.760 --> 0:12:13.520 you watch for? As we kick off the month of June, 0:12:13.559 --> 0:12:15.599 we were pleased to be joined by Dennis Gartman, the 0:12:15.679 --> 0:12:19.320 chairman of the University of Akron Endowment Investment Committee and 0:12:19.400 --> 0:12:22.400 the former publisher of the Gartman Letter. Dennis, Good morning. 0:12:22.559 --> 0:12:24.160 Is it twenty twenty one all over again? 0:12:25.840 --> 0:12:28.280 Good morning Nathan, And yes, it seems it's twenty twenty 0:12:28.320 --> 0:12:30.840 one all over again with the Roaring Kitty back on 0:12:30.880 --> 0:12:35.040 the front pages. I find it a little disconcerting to 0:12:35.080 --> 0:12:40.000 think that once again he's back. Once again. The means 0:12:40.440 --> 0:12:43.520 trading is back to the forefront. That's always to me 0:12:43.559 --> 0:12:45.800 indicative of a market that's making a top, not the 0:12:45.800 --> 0:12:48.520 market that's making a bottom. The fact that when the 0:12:48.520 --> 0:12:53.160 public comes in aggressively, and trades means stocks trades, spacks, trades, 0:12:53.840 --> 0:12:58.000 single day options, trades, over the counterstocks trades less than 0:12:58.040 --> 0:13:01.840 dollar stocks at the high rate. That's always disconcerting to me, 0:13:02.040 --> 0:13:04.160 and I think it should be disconcerting to everybody else. 0:13:04.200 --> 0:13:07.480 But this is twenty twenty one again, and here we 0:13:07.520 --> 0:13:08.480 are one more time. 0:13:08.920 --> 0:13:11.439 Is that the biggest indicator for you that we could 0:13:11.480 --> 0:13:13.400 be seeing a top to this market? Or are there 0:13:13.440 --> 0:13:15.800 other things that you're looking at that signal that for you? 0:13:16.679 --> 0:13:20.319 Fundamentals dictate where the market goes over broad terms, Technicals 0:13:20.360 --> 0:13:23.480 dictate where the market goes over short term terms. And 0:13:23.559 --> 0:13:25.760 to me, one of the most important circumstances that we 0:13:25.800 --> 0:13:29.120 saw technically was two weeks ago we had an outside 0:13:29.160 --> 0:13:31.480 reversal day in the S and P and the NASDAC. 0:13:31.960 --> 0:13:33.440 That's when you go to a new of all time 0:13:33.520 --> 0:13:36.520 high trade lower on the day trade below the previous 0:13:36.600 --> 0:13:38.520 day is low, and do it on large volume. We 0:13:38.559 --> 0:13:42.200 had outside reversal days, and those are usually not always, 0:13:42.240 --> 0:13:46.760 but usually indicative of market tops. To me, that was important. 0:13:46.960 --> 0:13:50.360 That was an important circumstance to pay attention to. So 0:13:50.800 --> 0:13:53.440 I think that's still driving things. What bothers me about 0:13:53.480 --> 0:13:57.360 the stock market is that on rallies, volume is declining. 0:13:57.400 --> 0:14:01.280 On declines, volume is advancing, and that too is very so. 0:14:01.720 --> 0:14:05.120 The technical seem to be getting sloppy at best at 0:14:05.120 --> 0:14:08.760 this point, and I think being I'm actually on the 0:14:09.040 --> 0:14:10.680 lines for the first time in a long period of 0:14:10.679 --> 0:14:14.400 time and comfortable being there. I'm on the sidelines in gold, 0:14:14.400 --> 0:14:16.760 I'm on the sidelines and bonds. I'm on the sidelines 0:14:17.040 --> 0:14:21.400 in stocks because I find things very disconcerting, very confusing, 0:14:21.880 --> 0:14:23.920 and the sideline seems to me to be the safest 0:14:23.960 --> 0:14:27.520 harbor at this point. Sidelines being cash and less than 0:14:27.560 --> 0:14:28.280 two year notes. 0:14:28.600 --> 0:14:30.200 How long do you think you're going to stay on 0:14:30.240 --> 0:14:31.360 the sidelines tennis? 0:14:32.920 --> 0:14:35.560 Until I come off the sidelines. That's the best answer 0:14:35.640 --> 0:14:37.800 I can That's the best answer I can give you 0:14:38.120 --> 0:14:42.640 at this point. I probably I tried being modestly, very 0:14:42.680 --> 0:14:46.480 marginally short beginning two weeks ago and got stopped out 0:14:46.520 --> 0:14:49.360 on Friday, which and I took a very small profit. 0:14:50.320 --> 0:14:52.440 I may be on the sidelines for a protracted period 0:14:52.480 --> 0:14:57.000 of time, certainly through the summer and through the period 0:14:57.040 --> 0:14:59.200 of time before the Fed begins the process of easing 0:14:59.240 --> 0:15:02.120 monetary policy and taking the overnight FED funds rate lower. 0:15:02.560 --> 0:15:04.920 That's going to be until after the election this year, 0:15:04.920 --> 0:15:08.640 so I may be on the sidelines in prohibitive terms 0:15:08.680 --> 0:15:10.640 for a protracted period of time. 0:15:11.200 --> 0:15:14.320 After the election. That still leaves the possibility that the 0:15:14.360 --> 0:15:17.120 Fed could make a move lower before the year is out. 0:15:17.160 --> 0:15:19.960 Are you still keeping a December rate move on the table? 0:15:20.960 --> 0:15:23.880 I think it's if we have one, it'll be the 0:15:24.080 --> 0:15:28.640 the FMC meeting one day after the the the elections 0:15:28.680 --> 0:15:33.200 in early November. I think that's the possibility. Would would 0:15:33.240 --> 0:15:34.920 be that that would be the best time for them 0:15:34.960 --> 0:15:38.080 to make a move. But you have to remember a 0:15:38.160 --> 0:15:40.920 year ago, the consensus was that there'd be five to six, 0:15:41.000 --> 0:15:43.400 maybe even seven cuts in the overnight head funds rate, 0:15:43.960 --> 0:15:46.360 And in the to the bi weekly that I send 0:15:46.360 --> 0:15:50.840 to friends and former clients of newsletter, I maintained at 0:15:50.840 --> 0:15:53.520 that time that we have at most one, maybe two 0:15:53.560 --> 0:15:55.560 cuts in the overnight FED funds rate, which seemed to 0:15:55.560 --> 0:15:59.120 be almost laughable. And it's in its differentiation from the 0:15:59.160 --> 0:16:01.920 from the broadcast census. And I still think that we 0:16:01.960 --> 0:16:04.240 we at mostly will get one cut in the overnight 0:16:04.240 --> 0:16:06.600 SAD funds right, and I think that comes into November meeting, 0:16:07.120 --> 0:16:11.080 maybe maybe two but I have my doubts substantively. I 0:16:11.120 --> 0:16:13.440 think it'll be a protective period of time before the 0:16:13.480 --> 0:16:16.440 seed begins the process of taking the SAD funds right 0:16:16.560 --> 0:16:20.000 back towards three percent over the course the next several years. 0:16:20.320 --> 0:16:23.240 This is Bloomberg day Break Today, your morning brief on 0:16:23.320 --> 0:16:26.880 the stories making news from Wall Street to Washington and beyond. 0:16:27.120 --> 0:16:29.920 Look for us on your podcast feed at six am 0:16:29.960 --> 0:16:33.640 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:33.720 --> 0:16:34.920 get your podcasts. 0:16:35.000 --> 0:16:37.680 You can also listen live each morning starting at five 0:16:37.760 --> 0:16:40.320 am Wall Street time on Bloomberg eleven three to zero 0:16:40.400 --> 0:16:43.200 in New York, Bloomberg ninety nine to one in Washington, 0:16:43.320 --> 0:16:46.200 Bloomberg one oh six to one in Boston, and Bloomberg 0:16:46.280 --> 0:16:47.960 ninety sixty in San Francisco. 0:16:48.360 --> 0:16:51.520 Our flagship New York station is also available on your 0:16:51.560 --> 0:16:56.920 Amazon alection devices. Just say Alexa play Bloomberg eleven thirty plus. 0:16:57.040 --> 0:17:00.480 Listen coast to coast on the Bloomberg Business app, Serious XM, 0:17:00.560 --> 0:17:04.160 the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan 0:17:04.160 --> 0:17:05.760 Hager and I'm Karen Moscow. 0:17:05.960 --> 0:17:08.720 Join us again tomorrow morning for all the news you 0:17:08.840 --> 0:17:12.040 need to start your day right here on Bloomberg Daybreak