Markets in Record Territory After CPI; Putin-Xi Signal Stronger Ties

Bloomberg Audio Studios, podcasts, radio news. Good morning, I'm Nathan 0:00:12.119 --> 0:00:15.080 Hager and I'm Karen Moscow. Here are the stories we're 0:00:15.120 --> 0:00:15.920 following today. 0:00:16.079 --> 0:00:19.360 Karen, the markets begin this Thursday. In record territory. The 0:00:19.400 --> 0:00:22.680 S and P five hundred closed above fifty three hundred 0:00:22.720 --> 0:00:24.759 for the first time, and the Dow is less than 0:00:24.840 --> 0:00:28.960 one hundred points from the forty thousand plateau. The Catalyst 0:00:29.240 --> 0:00:33.640 a report showing inflation slowed that reinforced bets. The Federal 0:00:33.680 --> 0:00:36.960 Reserve will cut rates as early as September. Luka Paulini, 0:00:37.040 --> 0:00:41.040 chief strategistic Pictet Asset Management, says stocks may be overvalued. 0:00:41.560 --> 0:00:44.440 We see value now, for example, in bones because you 0:00:44.560 --> 0:00:48.440 have a peak in US growth inflation. Yeah, stick keep 0:00:48.440 --> 0:00:51.040 a probably trending down. The Fed is cut in rates, 0:00:51.320 --> 0:00:53.960 so we see value bones, and if you look at equities, 0:00:54.200 --> 0:00:56.840 to be honest, the value is more in Europe and Japan. 0:00:57.360 --> 0:01:00.800 Pigtet Asset Management's Luca Paulini notes the SMP five hundreds 0:01:00.800 --> 0:01:03.080 at its twenty third record of the year. 0:01:03.880 --> 0:01:07.440 Now more on that market moving CPI report. Nathan A 0:01:07.440 --> 0:01:10.240 measure of underlying inflation cooled in April for the first 0:01:10.240 --> 0:01:12.640 time in six months will the figures may offer the 0:01:12.680 --> 0:01:15.880 Fed some hope that inflation is resuming its downward trend. 0:01:16.319 --> 0:01:19.440 Officials like Minneapolis Fed President Neil cash Curry want to 0:01:19.480 --> 0:01:22.520 see additional readings to start cutting interest rates. 0:01:22.760 --> 0:01:27.200 How much downward pressure is monetary policy putting on the economy, 0:01:27.319 --> 0:01:30.119 that's an unknown. We don't know for sure, and that 0:01:30.160 --> 0:01:32.240 tells me we probably need to sit here for a 0:01:32.280 --> 0:01:36.080 while longer until we figure out where underlying inflation is 0:01:36.080 --> 0:01:38.560 headed before we jump to any conclusions. 0:01:38.720 --> 0:01:41.640 Minneapolis Fed President Neil cash Curry, who does not vote 0:01:41.640 --> 0:01:44.199 on policy this year, says he's keeping a close eye 0:01:44.240 --> 0:01:46.399 on the housing market and its role in inflation. 0:01:46.840 --> 0:01:49.040 Now, one other note about that CPI report care the 0:01:49.120 --> 0:01:53.640 Labor Department inadvertently published critical data thirty minutes early. While 0:01:53.640 --> 0:01:56.680 there were no obvious signs the early publication moved markets, 0:01:56.720 --> 0:01:59.360 the episode is likely to prompt a close look at 0:01:59.400 --> 0:02:02.720 the dissemine of data that has implications for global asset 0:02:02.800 --> 0:02:04.400 prices and Fed policy. 0:02:04.760 --> 0:02:07.000 Well, Nathan, we now turned to politics and a crucial 0:02:07.040 --> 0:02:10.320 meeting between two world leaders Chinese President she and Vladimir 0:02:10.360 --> 0:02:12.880 Putin meeting earlier in Beijing, and as the war with 0:02:13.000 --> 0:02:16.480 Ukraine enters its third year. Xi Jinping signals to putin 0:02:16.560 --> 0:02:19.160 ties between the two nations remained strong. We get more 0:02:19.240 --> 0:02:22.000 from a bloombergs er Bekachun Wilkins in Hong Kong. 0:02:22.280 --> 0:02:25.520 Well, there's certainly one another's most important allies when it 0:02:25.600 --> 0:02:29.080 comes to this bigger geopolitical agenda of building the so 0:02:29.280 --> 0:02:33.040 called multipolar world, pushing back on what they say as 0:02:33.040 --> 0:02:37.000 sort of the US hegemony. But of course since Ladimir 0:02:37.040 --> 0:02:41.560 Putin's invasion of Ukraine, there has been a deeper, much 0:02:41.639 --> 0:02:46.760 deeper imbalance in that relationship. Russia has needed China economically 0:02:46.840 --> 0:02:49.920 far more than it has ever done in the past. 0:02:50.320 --> 0:02:54.959 And Bloomberger Bekachun Wilkins, reporting from Hong Kong, China Central Television, 0:02:55.000 --> 0:02:57.839 says she said his nation was quote ready to work 0:02:57.840 --> 0:03:00.520 with Russia as a good neighbor, friend and partner with 0:03:00.639 --> 0:03:01.440 mutual trust. 0:03:01.639 --> 0:03:04.400 Well as for domestic politics, Karen, the debates are set 0:03:04.520 --> 0:03:08.360 between President Biden and former President Donald Trump, even before 0:03:08.440 --> 0:03:11.120 they are officially their party's nominees. The two front runners 0:03:11.160 --> 0:03:14.640 have agreed to face off twice, first on CNN June 0:03:14.720 --> 0:03:19.639 twenty seventh, then on ABC September tenth. Bloomberg Politics contributor 0:03:19.720 --> 0:03:22.480 Rick Davis says President Biden will need to come prepared. 0:03:22.760 --> 0:03:25.360 Donald Trump is a disruptive guy. He knows how to 0:03:25.400 --> 0:03:29.040 take control of these situations. He's got enough capacity to 0:03:29.160 --> 0:03:33.280 really be a disruptive force and something like a debate 0:03:33.960 --> 0:03:36.800 and General Joe Biden, I mean, come on, I mean, 0:03:38.240 --> 0:03:41.120 he's a dignified guy who tries to play by the rules, 0:03:41.480 --> 0:03:44.040 even if there are no rules to be played by. 0:03:44.080 --> 0:03:46.600 The Republican strategist Rick Davis says the president will have 0:03:46.640 --> 0:03:49.640 to throw out the traditional rule book. Both campaigns rejected 0:03:49.640 --> 0:03:52.440 the rules and schedule of the non partisan Commission on 0:03:52.520 --> 0:03:56.320 Presidential Debates, which has handled these events since nineteen eighty eight. 0:03:56.800 --> 0:03:59.240 In the meantime, Nathan Trump will be in a courtroom 0:03:59.280 --> 0:04:02.120 as his hush money trial continues in New York. The 0:04:02.200 --> 0:04:05.000 prosecution's star and witness will once again be grilled by 0:04:05.040 --> 0:04:07.960 Trump's defense team, and we get the latest from Bloomberg 0:04:08.040 --> 0:04:10.000 Law host Jun Grosso In New York. 0:04:10.600 --> 0:04:13.040 Michael Cohen will be back on the witness stand today 0:04:13.080 --> 0:04:17.160 for more cross examination by Trump's attorney, who will continue 0:04:17.200 --> 0:04:21.400 to attack his credibility. Cohen is the prosecution's final witness. 0:04:21.800 --> 0:04:24.920 Trial is not in session tomorrow because Trump is attending 0:04:24.920 --> 0:04:28.240 his son's high school graduation. The defense has not yet 0:04:28.320 --> 0:04:31.360 said whether they'll put on a case or whether Trump 0:04:31.360 --> 0:04:34.320 will take the witness stand in his own defense. In 0:04:34.400 --> 0:04:36.800 New York, June Grosso Bloomberg Radio. 0:04:36.800 --> 0:04:39.400 Okay, June, thank you. Back to markets now. We're watching 0:04:39.600 --> 0:04:42.080 shares of Chubb. They're up nine and a half percent 0:04:42.120 --> 0:04:45.640 in early trading thanks to an investment by Warren Buffett 0:04:45.800 --> 0:04:46.680 Moore from Bloomberg. 0:04:46.720 --> 0:04:50.640 Stug Krisner Berkshire unveiled a stake in insurer Chubb. It's 0:04:50.720 --> 0:04:53.680 valued at six point seven billion dollars. Berkshire made the 0:04:53.720 --> 0:04:57.040 disclosure in the filing on Wednesday. Now, the conglomerate has 0:04:57.040 --> 0:05:00.320 been building this stake in Chubb since twenty twenty three, 0:05:00.480 --> 0:05:03.880 but it hadn't been previously reported since the SEC allowed 0:05:03.880 --> 0:05:07.880 Berkshire to keep it confidential. Even so, separate quarterly filing 0:05:07.960 --> 0:05:12.320 showed Berkshire's equity stakes in banks, insurance, and finance companies 0:05:12.360 --> 0:05:15.760 were growing while the firm was pulling back in other industries, 0:05:15.760 --> 0:05:19.640 including consumer products. Chubb is one of the largest property 0:05:19.680 --> 0:05:23.600 casualty insurers in the US, operating in fifty four countries. 0:05:23.600 --> 0:05:26.360 Globally in New York, iimem Doug Prisoner Bloomberg Radio. 0:05:26.560 --> 0:05:29.240 All right, Doug, thank you. Chares A Cisco also on 0:05:29.279 --> 0:05:32.120 the rise. They're of four and a half percent. The 0:05:32.120 --> 0:05:34.640 company gave a solid sales and profit forecast for the 0:05:34.640 --> 0:05:38.040 current quarter. And let's say that indicates customers are beginning 0:05:38.040 --> 0:05:40.000 to invest in their computer networks again. 0:05:40.200 --> 0:05:42.680 Well us for the meme stocks that have been rallying 0:05:42.760 --> 0:05:45.920 this week, Karen, that looks like it could be fizzling. 0:05:46.040 --> 0:05:48.159 Let's get an update now from Bloomberg's John Tucker. 0:05:48.240 --> 0:05:51.760 John, and if in gamestaff felt nineteen percent yesterday, AMC 0:05:52.040 --> 0:05:55.600 sent twenty percent after that movie theater chain took advantage 0:05:55.640 --> 0:05:58.480 of the stock rally to reduce its dat a slide, 0:05:58.520 --> 0:06:01.320 erasing roughly three billion dollar dollars in market value. Between 0:06:01.360 --> 0:06:03.599 the two. The stocks at more than doubled over the 0:06:03.600 --> 0:06:06.159 first two days of the week. AMC and game Stop 0:06:06.240 --> 0:06:09.400 are among the top ten securities bought by retail investors 0:06:09.400 --> 0:06:12.920 earlier this week, with fifty one million and sixteen million 0:06:12.960 --> 0:06:16.720 dollar daily inflows. But Ben Ladler, Global Market Strategists at 0:06:16.720 --> 0:06:19.080 E Toro says the conditions that drove the surge and 0:06:19.120 --> 0:06:21.640 the meme stocks back in two thousand and one are 0:06:21.680 --> 0:06:24.760 no longer present this time around. For instance, the number 0:06:24.760 --> 0:06:27.520 of call options outstanding in game Stop, that's just a 0:06:27.520 --> 0:06:30.599 fraction of its peak three years ago. And in the 0:06:30.600 --> 0:06:34.200 pre market AMC down twelve percent. Game Stop is down 0:06:34.400 --> 0:06:37.360 sixteen percent. John Tuncker, Bloomberg Radio. 0:06:37.400 --> 0:06:42.160 All right, John, thanks, and it's time now for a 0:06:42.160 --> 0:06:43.840 look at some of the other stories making news in 0:06:43.880 --> 0:06:45.440 New York and around the world. And for that we're 0:06:45.520 --> 0:06:48.560 joined by Bloomberg's Michael Barr. Michael, good Morning, Good morning. 0:06:48.640 --> 0:06:52.559 Karen Slovaki Is populist Prime Minister Robert Fico was shot 0:06:52.720 --> 0:06:56.200 multiple times and severely wounded after a political event and 0:06:56.400 --> 0:07:00.360 hand LoVa. After the attempted assassination, doctors fought for his 0:07:00.480 --> 0:07:03.080 life for several hours on the fifty nine year old 0:07:03.120 --> 0:07:07.680 pro Russian Slovaki Is Defense Minister Robert Kellanak says that 0:07:07.760 --> 0:07:11.360 there's no doubt that this was a politically politically motivated 0:07:11.800 --> 0:07:13.520 situation behind the shooting. 0:07:14.040 --> 0:07:17.880 We're just talking about the level of them, Chrissy, both 0:07:18.600 --> 0:07:22.520 capability to understand each other, to accept the other opinion, 0:07:22.840 --> 0:07:25.720 and not only one is that good one. 0:07:26.320 --> 0:07:29.840 The deputy Prime Minister said he believes Fico will survive. 0:07:30.360 --> 0:07:33.440 The Supreme Court has ordered Louisiana to hold this year's 0:07:33.480 --> 0:07:37.360 election using a House map that includes a second, mostly 0:07:37.440 --> 0:07:40.960 black district. The ruling puts on hold a lower courts 0:07:41.040 --> 0:07:44.760 ruling that found the map to be illegal gerrymandering. Loyola 0:07:44.840 --> 0:07:49.320 Law professor and former federal prosecutor Lorie Levinson, this. 0:07:49.200 --> 0:07:53.320 Is a much disputed ruling because, in fact down below 0:07:53.480 --> 0:07:56.080 there are questions about whether race should be used in 0:07:56.160 --> 0:08:00.000 redistricting and whether in the long run, this might protect 0:08:00.280 --> 0:08:04.680 some Republican districts. As it is set forth now, many 0:08:04.720 --> 0:08:08.560 people see this as a victory for Democrats, who will 0:08:08.600 --> 0:08:11.680 be able to likely pick up another seat in Louisiana. 0:08:12.480 --> 0:08:16.440 Former federal prosecutor Lorie Levinson says the justices were acting 0:08:16.760 --> 0:08:21.560 on emergency appeals by state Republican officials and black voters. 0:08:22.120 --> 0:08:25.680 Texas officials say a barge hit a bridge in Galveston, Texas, 0:08:26.040 --> 0:08:30.040 spilling fuel oil into the water and shutting down the 0:08:30.080 --> 0:08:34.880 only road connecting Galveston and Pelican Island. Galveston County Judge 0:08:34.920 --> 0:08:35.840 Mark Henry. 0:08:35.720 --> 0:08:38.680 The fuel oil seeping into the Inner Coastal Waterway calls 0:08:38.760 --> 0:08:40.800 him to shut down the Inner Coastal Waterway, so we 0:08:40.840 --> 0:08:42.880 want to get that cleaned up and get that navigable 0:08:42.880 --> 0:08:44.240 watering back open as quick as can. 0:08:44.920 --> 0:08:48.920 Last year, the Federal Highway Administration's National Bridge Inventory rated 0:08:48.960 --> 0:08:53.480 the Pelican Island Causeway Bridge poor. The Biden Administration is 0:08:53.520 --> 0:08:57.320 initiating policies that it says will help foster a deeper 0:08:57.360 --> 0:09:01.080 domestic supply chain for a solar panel. It comes after 0:09:01.160 --> 0:09:04.720 please from the US manufacturers confronting a surge of terror 0:09:04.880 --> 0:09:09.760 free imports. The measures announced early today include expanding tariffs, 0:09:10.160 --> 0:09:14.680 tax policy guidance, and promises of heightened vigilance for signs 0:09:14.679 --> 0:09:17.360 of unfair trade. Global News twenty four hours a day 0:09:17.400 --> 0:09:20.040 and whenever you want it with Bloomberg News Now. I'm 0:09:20.040 --> 0:09:22.400 Michael Barr, and this is Bloomberg Karen. 0:09:22.600 --> 0:09:29.360 All right, Michael Barr, thank you time now for the 0:09:29.360 --> 0:09:33.040 Bloomberg Scores update with John Stashauer and John Good morning. 0:09:32.840 --> 0:09:35.520 Good morning, Karen. Safe to say the slow start to 0:09:35.559 --> 0:09:39.040 Aaron Judges season is over. Last two weeks, He's raised 0:09:39.040 --> 0:09:42.040 his average seventy seven points. In Minnesota. Judge had three 0:09:42.120 --> 0:09:45.839 doubles after a first inning homer that traveled four hundred 0:09:45.840 --> 0:09:48.480 and sixty seven feet. Yankees bind Marcus Stroman made a 0:09:48.520 --> 0:09:50.240 ten of the last thirteen that shut out the Twins 0:09:50.280 --> 0:09:52.080 four to nothing. The Mets have lost five and six, 0:09:52.480 --> 0:09:54.760 all three so far this week with the Phillies, who 0:09:54.760 --> 0:09:57.360 are in MLB Best thirty one and thirteen. The Phils 0:09:57.400 --> 0:10:00.120 one ten to five. Rangers Suarez is now eight to zero. 0:10:00.400 --> 0:10:03.440 Red Sox and Nationals lost. Giants beat the Dodgers Orioles 0:10:03.440 --> 0:10:06.080 one on an Natlie Rutchman walk off homer. Celtics are 0:10:06.080 --> 0:10:08.120 in the NBA's East Finals for the third straight year. 0:10:08.160 --> 0:10:11.040 The under man Cleveland cas again without three top players, 0:10:11.040 --> 0:10:14.960 including Donovan Mitchell, gave Boston trouble before falling one thirteen 0:10:15.040 --> 0:10:16.880 ninety eight, and the Celts win the series four to one. 0:10:16.960 --> 0:10:19.200 Dallas goes up three to two with a one oh 0:10:19.280 --> 0:10:22.400 four ninety two win at Oklahoma City. Dallas Stars lost 0:10:22.400 --> 0:10:24.480 at home to Colorado five to three. Stars still lead 0:10:24.520 --> 0:10:26.319 three to two and the Rangers still lead three to two, 0:10:26.400 --> 0:10:29.440 but a loss tonight at Carolina means the series they 0:10:29.480 --> 0:10:31.480 once led three to nothing, It's going back to the 0:10:31.480 --> 0:10:34.240 Garden for a game seven. NFL schedule is out. Giants 0:10:34.240 --> 0:10:36.360 will open up with a home game against Minnesota. They're 0:10:36.400 --> 0:10:39.280 going to Munich November tenth to play Carolina, and the 0:10:39.360 --> 0:10:42.720 Jets are going to London October sixth to face Jacksonville. 0:10:42.840 --> 0:10:45.840 Three favorites for the PGA Championship that begins today in Louisville, 0:10:45.880 --> 0:10:48.920 world number one Scotti Scheffler, who's red hot, Brooks Koepka, 0:10:48.960 --> 0:10:51.240 who last year won the PGA for the third time, 0:10:51.280 --> 0:10:55.439 and Rory McElroy, his last major championship was at Valhalla 0:10:55.520 --> 0:10:56.360 a decade ago. 0:10:56.679 --> 0:10:58.360 I think this is a golf course that allows you 0:10:58.440 --> 0:11:02.720 to play with freedom. It's a big golf course. The 0:11:02.760 --> 0:11:05.680 carridors are wide, not too dissimilar to last week at 0:11:05.720 --> 0:11:08.679 quil Hollow, so you can open your shoulders up a 0:11:08.720 --> 0:11:11.160 little bit off the tee and then you know, try 0:11:11.200 --> 0:11:12.280 to take your chances from there. 0:11:12.440 --> 0:11:15.120 Rory won that tournament last Sunday, and Charlotte also won 0:11:15.160 --> 0:11:17.840 the team event the week before. Bloomberg Radio live PGA 0:11:17.920 --> 0:11:20.840 coverage today starting at four John Stash. They were Bloomberg 0:11:20.840 --> 0:11:22.040 Sports can here get Nathan. 0:11:24.200 --> 0:11:28.240 Coast to coast on Bloomberg Radio nationwide on Sirius XM 0:11:28.440 --> 0:11:31.320 and around the world on Bloomberg dot Com and the 0:11:31.360 --> 0:11:34.800 Bloomberg Business app. This is Bloomberg Daybreak. 0:11:35.000 --> 0:11:37.640 Good morning, I'm Nathan Hager. Wall Street heads into this 0:11:37.840 --> 0:11:40.680 Thursday with stocks in record territory once again, with the 0:11:40.720 --> 0:11:42.880 S and P five hundred now above the fifty three 0:11:42.960 --> 0:11:45.960 hundred level for the first time. Cooler than expected April 0:11:45.960 --> 0:11:48.520 inflation data are firming up a lot of bets that 0:11:48.520 --> 0:11:50.959 the Fed could start cutting interest rates maybe late in 0:11:51.000 --> 0:11:53.839 the next quarter. It's bringing Sema Shaw for some market 0:11:53.840 --> 0:11:58.960 analysis now. Seema's the chief global strategist at Principal Asset Management. Seema, 0:11:59.040 --> 0:12:01.560 good morning. Are you changing your stock out look after 0:12:01.600 --> 0:12:02.680 what we saw in CPI? 0:12:03.920 --> 0:12:08.120 Good morning. No. We have been risk on since January. 0:12:08.160 --> 0:12:09.680 We've maintained that even if you had a bit of 0:12:09.679 --> 0:12:12.959 a pullback in April, and the reason is that although 0:12:13.040 --> 0:12:15.840 the market has been pushing back, pushing out the expectations 0:12:15.840 --> 0:12:19.120 for rate cuts, I think the fundamentals, even if you 0:12:19.160 --> 0:12:21.240 were not to get rate cuts this year, the fundamentals 0:12:21.240 --> 0:12:23.760 for the economy are still so strong and that certainly 0:12:23.800 --> 0:12:26.600 implies that AND's growth is going to remain pretty solid 0:12:26.640 --> 0:12:30.240 and that should continue to mean that stocks are going 0:12:30.280 --> 0:12:32.120 to be boosted through the rest of Yes. It didn't 0:12:32.120 --> 0:12:33.120 really change anything for us. 0:12:33.400 --> 0:12:36.160 Well, I wonder how you interpret this inflation data. Is 0:12:36.200 --> 0:12:38.600 it the start of a new trend, is it more 0:12:38.600 --> 0:12:39.600 of a bump in the road. 0:12:39.640 --> 0:12:40.200 What do you think? 0:12:42.160 --> 0:12:42.240 So? 0:12:42.320 --> 0:12:44.400 I think it's difficult at this point to make any 0:12:44.480 --> 0:12:46.680 kind of conclusions from single data points. I mean, what 0:12:46.720 --> 0:12:49.840 we're looking at is as we look through the remainder 0:12:49.880 --> 0:12:52.319 of twenty twenty four and into twenty five, we do 0:12:52.440 --> 0:12:54.360 expect to see a down shift in economic growth. But 0:12:54.360 --> 0:12:56.760 that's important though. I'm using them a downshift because we 0:12:56.880 --> 0:12:59.360 are not expecting recession. I wouldn't even really put it 0:12:59.400 --> 0:13:01.240 as much of a low down. It's just where you're 0:13:01.320 --> 0:13:05.280 seeing growth revert back to trent and if that's correct, 0:13:05.440 --> 0:13:09.280 then really you should see inflation pressures trend somewhat lower. 0:13:09.800 --> 0:13:12.040 We're not expecting the return to the two percent level, 0:13:12.040 --> 0:13:14.600 but we do think there'll be sufficient comfort for the 0:13:14.679 --> 0:13:18.240 Fed to convince them to start cutting rate late in 0:13:18.320 --> 0:13:19.360 twenty twenty four. 0:13:20.200 --> 0:13:22.800 Late in twenty twenty four, the market starting to price 0:13:22.840 --> 0:13:25.120 in September. Is that kind of where you are? 0:13:26.440 --> 0:13:26.800 It is? 0:13:26.880 --> 0:13:30.080 So, actually, after the April sort of the previous CPI 0:13:30.160 --> 0:13:32.200 pro we came into the year. I should say expecting 0:13:32.240 --> 0:13:34.960 three cuts, one in June, September, and then December. And 0:13:34.960 --> 0:13:38.720 then after the run of three Hottan expected inflation numbers, 0:13:38.720 --> 0:13:41.840 we did shift the forecast to one cut in September 0:13:41.880 --> 0:13:44.160 and one in December. I didn't have much conviction, to 0:13:44.200 --> 0:13:46.720 be honest, about four or five weeks ago in that forecast. 0:13:47.000 --> 0:13:48.840 But as the data has been coming through, not just 0:13:48.840 --> 0:13:52.560 of course yesterday's data, but the payrolls data, retail sales, 0:13:52.640 --> 0:13:55.440 consumer confidence, I have got a bit more conviction that 0:13:55.480 --> 0:13:56.880 September is going to be the start day. 0:13:57.559 --> 0:14:01.319 So you don't have any concern then that the stocks 0:14:01.400 --> 0:14:04.600 might be overvalued at the levels that they're at right now. 0:14:04.600 --> 0:14:06.640 Where do you see valuations at this point? 0:14:07.960 --> 0:14:09.440 I mean it depends how you're looking. So if you 0:14:09.440 --> 0:14:12.080 look across the world, then yes, US valuations are definitely 0:14:12.080 --> 0:14:16.760 the most stretched. But we are still expecting decent earnings growth. Now, 0:14:16.800 --> 0:14:18.280 are we going to see this kind of run that 0:14:18.320 --> 0:14:19.840 we saw in the first two months of the year. 0:14:20.040 --> 0:14:22.800 Probably not. We do think that EXITIS can probably eke 0:14:22.840 --> 0:14:25.120 out another five or ten percent rally from here, but 0:14:25.240 --> 0:14:28.280 that's pretty solid and it should mean that as long 0:14:28.280 --> 0:14:31.640 as it's supported by continued earnings group against that economic 0:14:31.640 --> 0:14:34.600 backdrop that we have in our forecast, that should mean 0:14:34.640 --> 0:14:36.960 that valuations can still be supported. And it's remember for 0:14:36.960 --> 0:14:39.800 it's important for investors to remember that valuations they give 0:14:39.840 --> 0:14:42.760 you a direction for long term directions in the market, 0:14:43.040 --> 0:14:45.720 but it doesn't really necessarily change the short term aspects. 0:14:45.800 --> 0:14:47.680 So as long as you've got solid earnings grope, as 0:14:47.720 --> 0:14:49.320 long as you've got earnings what you are doing well, 0:14:49.640 --> 0:14:52.920 the market can continue to perform pretty well. 0:14:53.240 --> 0:14:55.920 Can earnings continue to do well even in a kind 0:14:55.960 --> 0:14:58.840 of a slowing earnings growth pattern if we continue to 0:14:58.840 --> 0:15:02.160 see a slow down in consumers. 0:15:02.280 --> 0:15:04.840 So consumer spending has been extraordinarily strong over the last 0:15:04.840 --> 0:15:06.800 couple of years, and you are starting to see some 0:15:06.880 --> 0:15:11.240 strains emerging. That's mainly in the lower income consumer side. 0:15:11.440 --> 0:15:14.360 So we do think that you're going to see at 0:15:14.440 --> 0:15:17.400 growth remaining positive. You could see a bit of a 0:15:17.400 --> 0:15:19.800 slow down, I guess, But that means I mean guess 0:15:19.800 --> 0:15:21.920 that relates directly to the idea that you're not going 0:15:21.960 --> 0:15:24.800 to see the exty market gains of twenty twenty three 0:15:24.920 --> 0:15:27.040 or spending of January and February. This is going to 0:15:27.040 --> 0:15:29.320 be a more modest one, but something which is a 0:15:29.360 --> 0:15:32.360 little bit more sustainable, to be honest, for the action market, only. 0:15:32.160 --> 0:15:34.960 About thirty seconds left. Where is your best opportunity right now? 0:15:36.520 --> 0:15:38.800 So look, there's a couple, but I think within exuity, 0:15:39.040 --> 0:15:41.440 we still think that the US is looking decent. We 0:15:41.560 --> 0:15:43.880 continue to light the large cap space, but actually more 0:15:43.920 --> 0:15:46.640 and more so, international equities are looking good. We look 0:15:46.680 --> 0:15:48.760 across to Europe and the UK at least for six 0:15:48.800 --> 0:15:52.200 months period with rake cups on the horizon quite clearly, 0:15:52.560 --> 0:15:56.240 and so economic upside surprises translating through to earning surprises. 0:15:56.720 --> 0:15:58.760 I think there's actually opportunities over there now as well. 0:15:58.920 --> 0:16:01.840 This is Bloomberg day Break Today, your morning brief on 0:16:01.920 --> 0:16:05.440 the stories making news from Wall Street to Washington and beyond. 0:16:05.720 --> 0:16:08.480 Look for us on your podcast feed at six am 0:16:08.560 --> 0:16:12.240 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:12.280 --> 0:16:13.440 get your podcasts. 0:16:13.560 --> 0:16:16.280 You can also listen live each morning starting at five 0:16:16.320 --> 0:16:18.920 am Wall Street time on Bloomberg eleven three to zero 0:16:18.960 --> 0:16:21.840 in New York, Bloomberg ninety nine to one in Washington, 0:16:21.920 --> 0:16:25.120 Bloomberg one oh six' one in Boston, and Bloomberg ninety 0:16:25.160 --> 0:16:25.760 sixty in. 0:16:25.760 --> 0:16:29.760 San Francisco, our flagship New York station, is also available 0:16:29.800 --> 0:16:34.080 on your Amazon Alexa devices. Just say Alexa Play Bloomberg 0:16:34.120 --> 0:16:35.560 eleven thirty plus. 0:16:35.600 --> 0:16:39.160 Listen coast to coast on the Bloomberg Business app, seriusxmb 0:16:39.360 --> 0:16:43.080 iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager 0:16:43.160 --> 0:16:44.440 and I'm Karen Moscow. 0:16:44.560 --> 0:16:47.320 Join us again tomorrow morning for all the news you 0:16:47.440 --> 0:17:00.240 need to start your day right here on Bloomberg Daybreak