Middle East Truce Talks, Tesla Rallies on China Optimism

Bloomberg Audio Studios, Podcasts, Radio News. 0:00:11.039 --> 0:00:12.880 Good morning, I'm Nathan Hager. 0:00:12.760 --> 0:00:15.960 And I'm Karen Moscow. Here are the stories we're following today. 0:00:16.120 --> 0:00:18.759 Karen, we're watching oil drop as well as we begin 0:00:18.800 --> 0:00:21.320 a new trading week. Right now, West Texas Intermediate stand 0:00:21.360 --> 0:00:23.799 about four tenths of one percent at eighty three dollars 0:00:24.079 --> 0:00:27.080 fifty six cents per barrel. And that decline comes as 0:00:27.120 --> 0:00:30.120 the US pushes to broker a peace deal between Israel 0:00:30.120 --> 0:00:33.400 and Hamas we get the details from Bloomberg's Ed Baxter. 0:00:33.840 --> 0:00:37.000 This comes with Secretary of Sir Anthony Blincoln visiting Israel 0:00:37.000 --> 0:00:40.040 today and meeting with Israeli officials. The White House says 0:00:40.200 --> 0:00:44.040 Israel has now agreed to hear concerns. NSA spokesman John 0:00:44.120 --> 0:00:45.360 Kirby says six weeks. 0:00:45.440 --> 0:00:46.199 If we can get that. 0:00:46.159 --> 0:00:48.600 In place, then that gives you six weeks apiece. It 0:00:48.640 --> 0:00:50.839 gives you no fighting for six weeks, and that includes 0:00:50.840 --> 0:00:53.720 no fighting in Rafa. And what we're hoping is that 0:00:53.800 --> 0:00:56.520 after six weeks of a temporary ceasefire, we can maybe 0:00:56.560 --> 0:00:58.200 get something more enduring in place. 0:00:58.520 --> 0:01:00.800 Kirby says, Israel has a read that there will be 0:01:00.880 --> 0:01:03.720 no attack on RAFA until the US concerns are heard. 0:01:04.080 --> 0:01:07.279 He says, we'll see where that goes at Baxter Bloomberg Radio. 0:01:07.440 --> 0:01:09.760 All right, ed, thank you. Adding another wrinkle to the 0:01:09.840 --> 0:01:14.160 discussions or reports at Israeli officials think the International Criminal 0:01:14.200 --> 0:01:17.240 Court could be preparing a rest warrants over the war. 0:01:17.600 --> 0:01:20.600 The New York Times is reporting officials believe Prime Minister 0:01:20.720 --> 0:01:25.399 Benjamin Netanyahoo, other Israelis and some Hamas leaders could be charged. 0:01:25.600 --> 0:01:28.920 The paper says Israeli officials could be accused of preventing 0:01:29.040 --> 0:01:32.520 the delivery of humanitarian aid to the Gaza strip and 0:01:32.680 --> 0:01:36.920 pursuing an excessively harsh response to the Hamas attacks on Israel. 0:01:37.160 --> 0:01:39.800 And here in the US, Karen campus protests over the 0:01:39.800 --> 0:01:42.560 war in Gaza are heading into a third week. Hundreds 0:01:42.560 --> 0:01:45.600 of pro Palestinian demonstrators have been arrested at schools across 0:01:45.640 --> 0:01:49.040 the country since these protests began at Columbia University on 0:01:49.160 --> 0:01:52.800 April eighteenth. House Speaker Mike Johnson's called for the National 0:01:52.840 --> 0:01:55.240 Guard to come in and break up tent encampments, but 0:01:55.400 --> 0:01:59.360 senators like fellow Republican JD. Vance are dismissing that idea. 0:01:59.520 --> 0:02:00.640 I don't know if you need to call in the 0:02:00.720 --> 0:02:01.320 National Guard. 0:02:01.360 --> 0:02:02.560 Maybe you just call in the police. 0:02:02.720 --> 0:02:02.960 Right. 0:02:03.200 --> 0:02:05.320 This is often framed as a free speech debate. 0:02:05.520 --> 0:02:08.000 Senator Vance tells Fox News Sunday students have a right 0:02:08.040 --> 0:02:09.880 to speak their minds, but not to set up tent 0:02:10.000 --> 0:02:14.000 cities in public spaces. Democratic Senator Tim Kaine says campus 0:02:14.000 --> 0:02:15.959 security should play more of a role. 0:02:15.960 --> 0:02:18.480 Calling in the National Guard to college campuses. 0:02:18.639 --> 0:02:21.120 For so many people would recall what happened when that 0:02:21.280 --> 0:02:22.919 was done during the Vietnam War. 0:02:23.080 --> 0:02:24.120 And it didn't end well. 0:02:24.639 --> 0:02:27.079 Senator Kane was on NBC's Meet the Press, which can 0:02:27.120 --> 0:02:30.480 be heard Sundays on Bloomberg Radio along with Fox News Sunday. 0:02:30.800 --> 0:02:33.399 Well, Nathan, we now turn to the markets, where more 0:02:33.480 --> 0:02:36.880 corporate earnings and a FED decision highlight the week. Fetchair. J. 0:02:37.040 --> 0:02:40.960 Powell will address reporters after the Fed's rate decision on Wednesday, 0:02:41.040 --> 0:02:43.720 when the Central Bank is widely expected to hold borrowing 0:02:43.800 --> 0:02:46.640 costs at a more than two decade high. Here's what 0:02:46.680 --> 0:02:50.160 Goldman Sachs Chief Asia economist Andrew Tilton is expecting. 0:02:50.480 --> 0:02:52.760 He needs to keep the options open for the FED 0:02:53.040 --> 0:02:56.280 after a set of upside surprises to inflation in the 0:02:56.320 --> 0:02:59.440 first quarter we don't know for sure whether it we'll 0:02:59.480 --> 0:03:02.120 see inflation down to target in time for the FED 0:03:02.200 --> 0:03:05.240 to begin cutting by midyear. Our forecast, we think the 0:03:05.280 --> 0:03:07.560 FED starts cutting in July. We think we'll see a 0:03:07.720 --> 0:03:11.079 lower run rate of inflation in Q two and beyond, 0:03:11.080 --> 0:03:13.000 but that's still a forecast, not a fact. 0:03:13.240 --> 0:03:15.800 And then I'll look from Goldman's sax as Andrew Tilton 0:03:15.919 --> 0:03:19.160 comes as expectations for rate reductions have been pursed further 0:03:19.240 --> 0:03:22.280 into twenty twenty four, investors are now betting on two 0:03:22.400 --> 0:03:24.120 cuts at most by year end. 0:03:24.240 --> 0:03:24.400 Well. 0:03:24.400 --> 0:03:27.400 Meanwhile, Karen an analysis of more than sixty thousand FED 0:03:27.480 --> 0:03:30.800 news headlines shows Jay Powell's words in December, when he 0:03:30.840 --> 0:03:34.040 hinted at a swifter pivot toward rate cuts, gave markets 0:03:34.040 --> 0:03:37.400 a boost and likely helped the US economy dodge a downturn. 0:03:37.760 --> 0:03:41.080 Bloomberg Economics FED Sentiment Index is powered by a natural 0:03:41.120 --> 0:03:44.600 language processing algorithm. It shows while Powell's words led to 0:03:44.640 --> 0:03:48.120 a significant cut in borrowing costs, they also probably added 0:03:48.160 --> 0:03:51.200 about a half percentage point two inflation over the year. 0:03:51.680 --> 0:03:54.200 Despite the FED share being forced into a reversal of 0:03:54.240 --> 0:03:57.560 his comments this month, Bloomberg's analysis shows Powell has only 0:03:57.680 --> 0:04:01.680 undone a fraction of the stimulus unleashed his December press conference. 0:04:02.080 --> 0:04:04.160 Well, Nathan, there have been major swings in the value 0:04:04.160 --> 0:04:07.000 of the yen in trading today. The Japanese currency wee 0:04:07.000 --> 0:04:09.320 can pass one sixty to the dollar for the first 0:04:09.320 --> 0:04:13.600 time since in nineteen ninety before rebounding strongly. Traders are 0:04:13.600 --> 0:04:16.800 on high alert for signs of intervention from Japanese authorities. 0:04:16.960 --> 0:04:20.560 Bloomberg Markets Live Asia lead Garfield Reynolds says they don't 0:04:20.560 --> 0:04:22.880 have a lot of options considering the wide gulf and 0:04:23.080 --> 0:04:24.599 interest rates with the US. 0:04:24.960 --> 0:04:27.240 Yes, the BOJ is on a tightening path, but it's 0:04:27.279 --> 0:04:30.919 a slow path that makes it hard for the Ministry 0:04:30.960 --> 0:04:35.159 of Finance to come in strongly to drive the dollar 0:04:35.240 --> 0:04:39.760 yen down, especially when everything else is busy driving the 0:04:39.880 --> 0:04:42.000 dollar up against everything. 0:04:42.000 --> 0:04:45.480 And Bloomberg's Garfield Reynolds says last week the BOJ indicated 0:04:45.520 --> 0:04:49.520 financial conditions or remain easy, though policymakers have repeatedly warned 0:04:49.600 --> 0:04:53.560 that depreciation won't be tolerated if it goes too far, 0:04:53.720 --> 0:04:54.320 too fast. 0:04:54.600 --> 0:04:57.800 Well, checking Company News this morning, Karen shares of Tesla 0:04:57.839 --> 0:04:59.920 are higher by more than seven percent. In your li 0:05:00.200 --> 0:05:02.520 training the ev maker is set to clear a key 0:05:02.600 --> 0:05:07.440 hurdle to introduce its advanced assisted driving features in China. 0:05:07.480 --> 0:05:10.800 Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong. 0:05:11.080 --> 0:05:14.400 Sources say Tesla will partner with byd in mapping and 0:05:14.480 --> 0:05:17.960 navigation functions. The US automaker will then be able to 0:05:18.040 --> 0:05:21.479 deploy its autonomous driving services. This would be on the 0:05:21.520 --> 0:05:24.720 basis of lane level navigation and mapping provided by by 0:05:24.800 --> 0:05:28.159 do Bydwo is one of only about twenty qualified suppliers 0:05:28.200 --> 0:05:31.880 with the key module for self driving functions. The news 0:05:31.920 --> 0:05:35.599 comes as Tesla CEO Elon Musk made a surprise visit 0:05:35.680 --> 0:05:39.159 to China. He was immediately granted a meeting with Premier 0:05:39.279 --> 0:05:42.480 Lee Chung in Hong Kong. Brian Curtis Bloomberg. 0:05:42.120 --> 0:05:44.880 Radio, All right, Brian, thank you. We have news this 0:05:45.000 --> 0:05:48.279 morning involving another one of Musk's companies. Thousands of former 0:05:48.320 --> 0:05:51.719 Twitter employees say they are still owned severance pay. Today, 0:05:51.760 --> 0:05:54.560 the first depositions get under way, starting with Musk and 0:05:54.560 --> 0:05:56.520 Bloomberg's Amy Morris has a preview. 0:05:57.040 --> 0:06:00.440 This will be the first arbitration hearings involving those employedployees 0:06:00.600 --> 0:06:02.799 who say they were cheated out of severance when Elon 0:06:02.880 --> 0:06:05.840 Musk bought Twitter in October of twenty twenty two. An 0:06:05.880 --> 0:06:09.599 email from the law firm representing almost two thousand former 0:06:09.640 --> 0:06:13.599 Twitter employees plus more than a dozen class action lawsuits 0:06:14.000 --> 0:06:16.440 says the deposition will be in person and last for 0:06:16.560 --> 0:06:20.159 seven hours. The company, formerly known as Twitter, which Musk 0:06:20.240 --> 0:06:23.760 has since renamed X, has been accused in multiple suits 0:06:23.800 --> 0:06:27.599 of numerous labor and workplace violations. A spokesman for X 0:06:27.640 --> 0:06:31.440 has declined to comment. In Washington, Amy Moore as Bloomberg Radio. 0:06:31.279 --> 0:06:33.200 All right, Amy, thank you. There are plenty of developments 0:06:33.200 --> 0:06:36.200 involving Paramount Global. Those shares are hired by about four 0:06:36.200 --> 0:06:38.920 and a half percent in early trading, Bloomberg News has 0:06:38.960 --> 0:06:41.799 learned that sky Dance has made its best and final 0:06:41.839 --> 0:06:44.760 offer for the company. Sources say the Redstone family and 0:06:44.800 --> 0:06:47.840 film producer David Ellison have both offered concessions to make 0:06:47.880 --> 0:06:51.520 a possible change in control at Paramount Global to make 0:06:51.520 --> 0:06:55.479 it more appealing to the company's other investors. Paramount CEO 0:06:55.560 --> 0:06:58.240 Bob Bakish is expected to be replaced on an interim 0:06:58.279 --> 0:07:05.160 basis by a management committee as soon as today, and it. 0:07:05.160 --> 0:07:06.320 Is time now for a look at some of the 0:07:06.360 --> 0:07:09.200 other stories making news in New York and around the world, 0:07:09.240 --> 0:07:11.800 and for that we're joined by A Bloomberg's Michael Barr. Michael, 0:07:11.840 --> 0:07:13.320 good Morning, Good morning, Karen. 0:07:13.400 --> 0:07:17.000 Small towns in Oklahoma are beginning a long cleanup after 0:07:17.080 --> 0:07:20.880 tornado's flattened homes and buildings and killed at least four people, 0:07:20.920 --> 0:07:24.720 including an infant. Damage was extensive in the community of Sulfur, 0:07:25.160 --> 0:07:29.680 where a weekend tornado crumpled many downtown buildings and sheared 0:07:29.720 --> 0:07:33.760 the roofs off houses across a fifteen block radius. Hospitals 0:07:33.760 --> 0:07:36.840 across the state reported about one hundred injuries. This man 0:07:36.960 --> 0:07:38.360 lives in Holdenville. 0:07:38.520 --> 0:07:39.520 My brother lives down there. 0:07:39.600 --> 0:07:42.520 Another mile of trying to get to him, I think 0:07:42.560 --> 0:07:45.280 he blowed his tractor fed away and the house is 0:07:45.360 --> 0:07:46.080 found from there. 0:07:46.680 --> 0:07:50.000 White House officials said President Joe Biden spoke to Oklahoma 0:07:50.040 --> 0:07:53.360 Governor Kevin Stitt on Sunday and offered the full support 0:07:53.400 --> 0:07:56.440 of the federal government. A tornado swept over at Trinity, 0:07:56.480 --> 0:08:00.680 Texas last night, destroying a home and damaging others, injuring 0:08:00.680 --> 0:08:03.760 two people who were transported by ambulance to the hospital. 0:08:04.080 --> 0:08:08.040 Trinity County Sheriff Woody Wallace says there are no fatalities. 0:08:08.280 --> 0:08:10.400 Got to worry about, Folie. High winds come through all 0:08:10.440 --> 0:08:13.200 these power lines. We got power lines down everywhere out here, 0:08:14.040 --> 0:08:16.080 so I'm rebb Mar. You go through them and there's 0:08:16.120 --> 0:08:19.400 water on the ground, it's fab not gonna end well 0:08:19.440 --> 0:08:19.640 for you. 0:08:20.040 --> 0:08:23.480 Sheriff Wallace says there is the possibility for more tornadoes. 0:08:23.920 --> 0:08:27.640 New York Governor Cathy Hulkell overnight started a state investigation 0:08:28.120 --> 0:08:32.679 into Sandra Dorley, the Monroe County District Attorney in Rochester, 0:08:33.200 --> 0:08:36.720 after bodycam footage showed the DA trying to avoid a 0:08:36.760 --> 0:08:41.160 speeding ticket. The officer followed her home after she refused 0:08:41.160 --> 0:08:43.760 to pull over for a traffic stop until she drove 0:08:43.800 --> 0:08:44.320 to the house. 0:08:44.800 --> 0:08:47.600 What is the reason you're so against what I'm doing. 0:08:47.640 --> 0:08:48.440 I'm doing my job. 0:08:48.640 --> 0:08:51.199 You say you're a DA I had the DA. 0:08:51.400 --> 0:08:55.719 Okay Governor Cathy Hokel referred Dorley's case to the Commission 0:08:55.760 --> 0:09:00.280 for Prosecutorial Conduct, saying Dorley has undermined her ability to 0:09:00.559 --> 0:09:05.120 hold others account violating the law. South Dakota Governor Christy Nome, 0:09:05.280 --> 0:09:07.800 considered to be in the running to become former President 0:09:07.840 --> 0:09:11.679 Trump's pick for Vice president is responding to the backlash 0:09:11.720 --> 0:09:14.520 over a story in a upcoming memoir. In the book, 0:09:14.600 --> 0:09:17.360 she writes about shooting her dog for its bad behavior, 0:09:17.720 --> 0:09:21.720 including killing the neighbors chickens in killing a nasty, mean goat. 0:09:21.800 --> 0:09:24.080 No one responded. I followed the law and was being 0:09:24.080 --> 0:09:27.640 a responsible parent, dog owner, and neighbor. Global News twenty 0:09:27.640 --> 0:09:29.800 four hours a day and whenever you want it with 0:09:29.880 --> 0:09:30.680 the Bloomberg News. 0:09:30.679 --> 0:09:30.880 Now. 0:09:30.960 --> 0:09:32.959 I'm Michael Barr. This is Bloomberg. Karen. 0:09:33.120 --> 0:09:39.719 All right, Michael Berry, thank you. Time now for the 0:09:39.720 --> 0:09:42.320 Bloomberg Sports Update with John Stanshauer. 0:09:42.400 --> 0:09:44.720 John Good morning, Good morning, Karen. Good Sunday for the 0:09:44.760 --> 0:09:47.720 teams from the Garden. Both went south on ninety five, 0:09:47.800 --> 0:09:50.520 got game four wins, so the Rangers advanced in the 0:09:50.559 --> 0:09:52.600 second round, and then NIXT took a big step in 0:09:52.640 --> 0:09:56.240 that direction in Philly beat the Sixers ninety seven ninety 0:09:56.280 --> 0:09:59.000 two and lead the series three to one. Jalen Brunson's 0:09:59.040 --> 0:10:02.800 forty seven points the most in KNIXT playoff history. Benard 0:10:02.880 --> 0:10:06.920 King scored forty six in nineteen eighty four. Brunson clearly 0:10:06.960 --> 0:10:09.680 outplayed Sixers star Joel Mbi, who took the same number 0:10:09.720 --> 0:10:11.559 of shots he took in Game three. In that game, 0:10:11.880 --> 0:10:14.280 Mbat scored fifty points. This one, he had just over 0:10:14.320 --> 0:10:17.240 half that twenty seven. Mb did not make a basket 0:10:17.520 --> 0:10:19.920 in the fourth quarter, shot out for five. Game five 0:10:20.000 --> 0:10:23.360 tomorrow at MSG. As for the Rangers, they never trailed 0:10:23.360 --> 0:10:25.800 in Washington. The game was tied in the third period. 0:10:26.280 --> 0:10:29.600 Paneren at right wing dranks it to the hash box. 0:10:29.679 --> 0:10:32.679 Paneren leaves it back for Fox. Fox passed to the 0:10:32.720 --> 0:10:33.200 far wings. 0:10:33.200 --> 0:10:34.760 Savana Jad out to Paneren with. 0:10:34.720 --> 0:10:37.720 A shott to hard Tammy Peneren. 0:10:37.960 --> 0:10:40.320 How the power play how the Rangers take a three 0:10:40.400 --> 0:10:43.079 to lead and WPN. Rangers had an empty NT of 0:10:43.120 --> 0:10:45.600 one four to two for their first series sweep since 0:10:45.640 --> 0:10:48.240 two thousand and seven. They're the first team to advance 0:10:48.559 --> 0:10:51.240 and the Stanley Cup Playoffs. Minnesota's the first to move on. 0:10:51.240 --> 0:10:53.800 In the NBA finished the sweep of Phoenix. Anthony Edwards 0:10:53.840 --> 0:10:57.000 scored forty. The Timberwolves, lay in the game, suffered a 0:10:57.040 --> 0:11:00.280 serious knee injury to their coach Chris Finch as he 0:11:00.320 --> 0:11:02.640 collided with his point guard Mike Conley. The Clippers blew 0:11:02.679 --> 0:11:05.200 a thirty one point lead in Dallas, still won to 0:11:05.240 --> 0:11:08.920 tie the series of two. Indiana again beat injury ravage Milwaukee. 0:11:09.000 --> 0:11:11.679 The Bucks were without both Deannas Sunte di Compo and 0:11:11.800 --> 0:11:14.640 Damian Lillard, and the Pacers lead three to one. NHL 0:11:14.679 --> 0:11:18.000 in the West. Wins for Edmonton, Colorado, Vancouver they all 0:11:18.080 --> 0:11:20.079 lead their series three to one. Well a weekend for 0:11:20.120 --> 0:11:23.360 the Yankees. In two games, thirty runs, thirty seven hits, 0:11:23.360 --> 0:11:26.560 They've beat Milwaukee fifteen to five. Anthony Rizzo four hits 0:11:26.760 --> 0:11:29.360 included career home run number three hundred. Dramatic win for 0:11:29.400 --> 0:11:31.400 the Mets beat the Cardinals four to two on a 0:11:31.520 --> 0:11:34.520 Mark Bento's home run in the eleventh inning. John Stash 0:11:34.600 --> 0:11:36.559 Edward Bloomberg Sports Karen Nathan. 0:11:38.280 --> 0:11:42.400 Coast to coast on Bloomberg Radio, nationwide on Sirius XM, 0:11:42.520 --> 0:11:45.400 and around the world on Bloomberg dot Com and the 0:11:45.440 --> 0:11:48.880 Bloomberg Business app. This is Bloomberg Daybreak. 0:11:49.480 --> 0:11:51.640 Good morning, I'm Nathan Hager at the start of another 0:11:51.800 --> 0:11:55.280 busy week in store for investors. More corporate earnings due 0:11:55.320 --> 0:11:57.800 out and a made decision from the Fed on the 0:11:57.800 --> 0:12:01.480 way before, but really when days out? Actually, so, let's 0:12:01.520 --> 0:12:04.160 get you ready for it. Lori Calvesina is with us 0:12:04.200 --> 0:12:07.680 this morning in our Interactive Broker Studios in New York. 0:12:07.720 --> 0:12:12.000 The head of US equity strategy at RBC Capital Markets, Laurie, 0:12:12.040 --> 0:12:14.320 Good morning, So what's the bigger deal for you this week? 0:12:14.320 --> 0:12:17.040 The earnings or what we hear from Chairman Powell this week? 0:12:17.520 --> 0:12:19.040 So, you know, I hate to say it, but I 0:12:19.040 --> 0:12:21.080 think for me, it's probably the earnings. We've got one 0:12:21.160 --> 0:12:24.240 hundred and sixty six companies in the SMP reporting this week, 0:12:24.280 --> 0:12:26.600 at least last I checked, So I think, you know, 0:12:26.640 --> 0:12:29.240 as always, people are going to pay attention to the FED. Personally, 0:12:29.240 --> 0:12:31.280 I'm looking for that commentary to kind of catch up 0:12:31.280 --> 0:12:35.080 with where the market already is. I'm much more interested, frankly, 0:12:35.120 --> 0:12:37.320 to hear what companies are saying about the current environment. 0:12:37.640 --> 0:12:41.520 Okay, so we have seen a big swath of companies 0:12:41.600 --> 0:12:44.000 report already. What are some of your takeaways from what 0:12:44.040 --> 0:12:46.640 we've heard from the companies that have reported so far. 0:12:46.920 --> 0:12:49.040 Somehow we managed to get through most of the reports 0:12:49.120 --> 0:12:51.320 that came out last week, and you know, I think 0:12:51.400 --> 0:12:53.800 the themes are still evolving. But I would say number one, 0:12:53.840 --> 0:12:56.280 we're not seeing any kind of you know, big problem 0:12:56.320 --> 0:12:59.439 with the economy demand anything like that. There's a laundry 0:12:59.480 --> 0:13:02.520 list of pros and cons that companies are talking about 0:13:02.520 --> 0:13:05.000 in regards to this market. For me, one thing that 0:13:05.040 --> 0:13:07.560 did jump out is that interest rate commentary. There's a 0:13:07.600 --> 0:13:10.360 lot of various expectations about what the FED is going 0:13:10.360 --> 0:13:13.040 to do backed in I remember reading one company talking 0:13:13.040 --> 0:13:15.960 about three cuts, and so I do think, you know, 0:13:16.040 --> 0:13:18.800 there's a little bit of a slippage in terms of 0:13:18.800 --> 0:13:21.920 where corporate America is versus the equity market itself or 0:13:21.960 --> 0:13:26.360 the fixed income market. I do think that geopolitical commentary 0:13:26.440 --> 0:13:29.040 is something I'm paying a lot of attention to. It's 0:13:29.160 --> 0:13:31.440 continued to be mentioned as a general risk, but no 0:13:31.600 --> 0:13:34.000 sort of you know, kind of overt impact on demand 0:13:34.080 --> 0:13:35.680 for ether consumers or corporate yet. 0:13:36.000 --> 0:13:38.640 Well, that does steer us toward whatever we could. Hear 0:13:38.720 --> 0:13:43.319 from Chairman Powell on Wednesday in the Made decision, we've 0:13:43.520 --> 0:13:47.920 done an analysis that shows the December Duvish pivot really 0:13:47.960 --> 0:13:50.079 helped to fuel the rally that we saw at the 0:13:50.120 --> 0:13:54.400 first quarter. What's the chance that pivot the other way 0:13:55.480 --> 0:13:57.080 does some damage to this rally? 0:13:57.400 --> 0:13:59.439 Well, well, I'll tell you, you know, I've heard really 0:13:59.440 --> 0:14:02.520 since the big getting of February in my client meetings, 0:14:02.840 --> 0:14:05.320 the idea is the US economy so hot, how can 0:14:05.360 --> 0:14:07.640 the FED possibly even cut this year? So I do 0:14:07.679 --> 0:14:11.280 think equity markets, equity investors at least have already started 0:14:11.280 --> 0:14:13.480 to come to terms with that potential idea. That's not 0:14:13.520 --> 0:14:15.679 really reflected in market pricing right now as far as 0:14:15.679 --> 0:14:18.560 I understand, But I do think this may be one 0:14:18.640 --> 0:14:21.800 instance where equity markets have already assumed a scenario in 0:14:21.880 --> 0:14:24.680 contrast with what they you know, we're thinking back in January. 0:14:25.640 --> 0:14:28.480 So is there a chance then that the stocks can 0:14:28.520 --> 0:14:32.640 continue to rally even with rate cut expectations getting pushed 0:14:32.640 --> 0:14:34.080 back as far as they have in the market. 0:14:34.240 --> 0:14:36.360 So I think it gets harder from here. I think 0:14:36.480 --> 0:14:39.000 a hike discussion, which is not really something I'm hearing 0:14:39.000 --> 0:14:41.240 about from investors right now, I think that would be very, 0:14:41.320 --> 0:14:43.360 very different from just a no cut scenario in the 0:14:43.400 --> 0:14:45.720 mind of equity investors. I'll tell you, Nathan, when I 0:14:45.800 --> 0:14:48.800 talked to investors, you know, they're clearly disappointed that we're 0:14:48.840 --> 0:14:51.040 not getting this interest right down draft story. But at 0:14:51.040 --> 0:14:54.080 the same time, if the economy continues to come through hot, 0:14:54.320 --> 0:14:56.160 at least a lot of the investors I speak with, 0:14:56.200 --> 0:14:57.680 I think they want the FED to do the work 0:14:57.720 --> 0:14:59.600 that needs to be done to get inflation down. 0:15:00.080 --> 0:15:03.520 Though we did get that weaker than expected first read 0:15:03.560 --> 0:15:06.560 on first quarter GDP last week, What does that tell 0:15:06.600 --> 0:15:09.440 you about what we could get in terms of corporate 0:15:09.440 --> 0:15:10.520 earnings down the line. 0:15:10.680 --> 0:15:13.400 That's a really interesting report to me. I mean generally, 0:15:13.440 --> 0:15:15.280 what our economists are saying, and I think this has 0:15:15.360 --> 0:15:18.120 been echoed around the street, is that the underlying details 0:15:18.160 --> 0:15:20.760 about that report really, you know, sort of speak to 0:15:20.840 --> 0:15:23.520 the idea that the economy is still strong, the consumer 0:15:23.600 --> 0:15:25.720 is still strong. There were some quirky things that happened 0:15:25.760 --> 0:15:27.640 with the data that caused that headline number to be 0:15:27.640 --> 0:15:30.520 a bit lower than expected. Now we'll see, you know, 0:15:30.560 --> 0:15:33.680 if that narrative holds up, But for now, that seems 0:15:33.720 --> 0:15:36.160 to be what the economic story is, or the economic 0:15:36.240 --> 0:15:38.280 read is on that report, and I think we're hearing 0:15:38.320 --> 0:15:40.840 echoes of that in corporate commentary. I'm really just not 0:15:41.080 --> 0:15:44.120 seeing any sort of demand problem coming through in the 0:15:44.160 --> 0:15:45.840 company transcripts that we're reading through. 0:15:46.120 --> 0:15:48.520 Okay, just thirty seconds left here, Lourie. What's the biggest 0:15:48.600 --> 0:15:51.120 risk for you when it comes to equities is a geopolitics, 0:15:51.160 --> 0:15:52.120 earnings or rates? 0:15:52.400 --> 0:15:55.000 I think geopolitics are always a huge one that markets 0:15:55.040 --> 0:15:57.120 have trouble digesting in advance. But I do think the 0:15:57.200 --> 0:16:00.920 rate story is important. Again, I think no cuts are fine. 0:16:00.960 --> 0:16:02.160 I think hikes are a different matter. 0:16:03.040 --> 0:16:06.120 This is Bloomberg Daybreak Today, your morning brief on the 0:16:06.160 --> 0:16:09.560 stories making news from Wall Street to Washington and beyond. 0:16:09.840 --> 0:16:12.600 Look for us on your podcast feed at six am 0:16:12.680 --> 0:16:16.360 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:16.400 --> 0:16:17.560 get your podcasts. 0:16:17.720 --> 0:16:20.400 You can also listen live each morning starting at five 0:16:20.440 --> 0:16:23.040 am Wall Street time, on Bloomberg eleven three to zero 0:16:23.080 --> 0:16:26.560 in New York, Bloomberg ninety nine one in Washington, Bloomberg 0:16:26.600 --> 0:16:29.240 one oh six to one in Boston, and Bloomberg ninety 0:16:29.280 --> 0:16:30.680 sixty in San Francisco. 0:16:31.040 --> 0:16:34.200 Our flagship New York station is also available on your 0:16:34.240 --> 0:16:39.960 Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus. 0:16:39.720 --> 0:16:43.280 Listen coast to coast on the Bloomberg Business app, seriusxmb 0:16:43.480 --> 0:16:47.520 iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager. 0:16:47.320 --> 0:16:50.440 And I'm Karen Moscow. Join us again tomorrow morning for 0:16:50.560 --> 0:16:53.080 all the news you need to start your day, right 0:16:53.120 --> 0:17:04.320 here on Bloomberg Daybreak