Bloomberg Transient (05/01/2024)

MANUS:GOOD MORNING FROM A GLOBAL HEADQUARTERS IN NEW YORK.WALKING TO BLOOMBERG BRIEF LET'S SET YOUR AGENDA. DANI: THE S&P FALLS ON MOST SINCEJANUARY AS MARKETS BRACE FOR HAWKISH PIVOT FROM POWELL.AMAZON GETS AN AI BOOST. THE E-COMMERCE GIANT PUSH THESTRONGEST CLOUD GROWTH IN YEARS. TESLA COST CUTS CONTINUE.ELON MUSK AXES MOST OF THE SUPERCHARGER TEAM. >> STOCKS ARE NERVOUS.THE CONSUMER CONFIDENCE TANKED.

YESTERDAY. THERE IS A CRISIS OUT THERE INLATTE LAND. THE STOCK IS LITERALLY GETTINGDEMOLISHED. CONSUMERS PULLING BACK INCHINA, SALES ARE UNDER PRESSURE A MULTITUDE OF CUTS, THROUGHFROM JEFFRIES AND THERE WERE IS A MONSTER FLOW INTO EQUITIES LAST WEEK IF YOU REMEMBER ANDYET $3 BILLION FLOW INTO EQUITIES ACROSS INSTITUTIONS.AMAZON ALSO WANT TO KEEP AN EYE ON.THE RETAIL SIDE OF THE BUSINESS.

NOT PUMPING ON ALL FOURCYLINDERS. AWS DOING NICELY. YIELDS ARE AGAIN UNSURE OFTHEIR FOOTING. THE HEDGES AND THE CTA AREACTUALLY SHORT INTO THIS POWELL FOMC MEETING.WE ARE MAX SHORT DURATION ACCORDING TO BANK OF AMERICA WEARE SO SQUEEZED AND SO SHORT, WHAT COULD HAPPEN IF IT DOESNOT RIP THE RUG ON RATE CUTS THIS EVENING?CRUDE IS DOWN BY 1.4%. STOCKPILES BEING UP FOR THEFIFTH WEEK IN A ROW. AND A STRONG DOLLAR.MUCH MORE THAN THE FEEBLE.

NARRATIVE WE ARE SOMEHOW CLOSERTO A PEACE INITIATIVE FROM ISRAEL JOINING THE TALKS.PUTTING INTO THIS FOR A DROP OF 1.4%. >> IT'S IMPORTANT THIS MARKETIS GEARED UP FOR HAWKISH POWELL BUT WHAT COULD BE THE SURPRISE?MORE THAN THE MARKET SUSPECT IT WOULD HAVE TO BE A POWELL THATINTRODUCES THE IDEA THEY ARE AGNOSTIC ON WHAT THEIR NEXTMOVE IS WHETHER IT'S A HIKE OR A CUT.STEVE WRITES HE IS GOING TO STILL HAVE A CUTTING BIASBECAUSE THEY DON'T WANT TO PUSH.

YIELDS HIGHER THAN THEY ARE.POWELL HIMSELF HAS SAID HE BELIEVES CONDITIONS ARE TIGHT.HE DOES NOT WANT TO MAKE THEM TIGHTER OR LOOSER.IT'S A VERY CAREFUL NEEDLE HE NEEDS TO THREAD. >> IT'S WHETHER HE KEEPS THOSEINSURANCE CUTS ALIVE AND WE HAVE ALL HAWKED ITSELF SOAGGRESSIVELY INTO THIS MEETING. IF YOU THINK OF WHERE PCE ISAND OUR NEXT GUEST TALKS ABOUT THIS, IT'S PEGGED BY THE FED TOBE A 2.6%. WE'VE LOST THE PLOT IN TERMS OFTHE DISINFLATION NARRATIVE.

THAT'S PERHAPS PARAPHRASING ONTHAT. >> IN FAVOR OF NOT PARAPHRASINGOUR NEXT GUEST, THIS IS WHAT HE WRITES EXACTLY PRAYED THE LABORMARKET AND INFLATION HAS NOT CHANGED SUFFICIENTLY IN RECENTWEEKS TO SUGGEST OVERT HAWKISHNESS BUT TO BRINGADDITIONAL HIKES BACK ON THE TABLE.THAT HURDLE STILL SEEMS VERY HIGH EVEN IF IT'S NOT APOSSIBILITY. LET'S GET TO THE MAN HIMSELF.IT IS TIM GRAFF. GOOD MORNING TO YOU AND THANKSFOR JOINING US. TIM:.

IT'S SIMILAR IN SCOPE TO WHATWE SAW AT THE BEGINNING OF THIS YEAR WHEN SIX OR SEVEN RATECUTS WERE PRICED AND THAT'S A BIG DEVIATION FROM THE FED'SMESSAGE. THIS IS PROBABLY A LITTLE BITMORE REALISTIC THAN THAT WAS IN TERMS OF TAKING BUT CUTS OUTBUT I THINK WE'VE PROBABLY SWUNG A LITTLE BIT TOO FAR THEOTHER WAY. THE POINT ABOUT THE FEDINFLATION FORECAST IS REALLY IMPORTANT.THEY ARE NOT THAT FAR AWAY FROM WHAT THEY WERE SUGGESTINGINFLATION WOULD BE AT THE END.

OF THIS YEAR AND THAT IS WITHTWO OR THREE RATE CUTS IN THE FORECAST AS WELL.I THINK MARKETS AS THEY OFTEN DO GOT OVERLY SENSITIVE TORECENT NEWS FLOW. MANUS:THAT IS THE NATURAL PROCLIVITY OF MARKETS TO REALLY SORT OFPUSH THAT. WE ARE MAX SHORT DURATION INTOTHIS. SOME PEOPLE ARE SAYING THE REALJUICE WILL COME IN THE MINUTES BECAUSE THAT'S WHERE THE COULDBE A REAL FRACTURING OF THE FED AND THE DEBATE ABOUT A HIKE.HOW HIGH IS THE BAR FOR STATE.

STREET GLOBALLY TO A HIKE? >> I THINK IT IS STILL PRETTYHIGH. EXACTLY BECAUSE OF THAT INFLATION NARRATIVE. AGAIN IT'S NOT A MILLION MILESAWAY FROM THEIR OWN FORECAST AND IT'S MAKING PROGRESSTOWARDS TARGET. I THINK YOU HAVE TO SEE OVERTHE NEXT FEW MONTHS REALLY CONFIRMING THE NARRATIVE FROMTHE FIRST QUARTER WHICH WE KIND OF WENT THROUGH THIS LAST YEARWITH THE Q1 DATA WAS ALSO QUITE HOT AND THEN IT SETTLED DOWN ASSEASONALITY WORE OFF.

I THINK THERE IS STILLPOTENTIAL WAIT TO COME FOR SHELTER INFLATION AND BRINGINGINFLATION DOWN SO THE FACT IT HAS TIME ON THEIR SIDE ANDTHAT'S THE VARIABLE FOR THEM. THEY CAN AFFORD TO BE PATIENTWHERE MARKETS MAY BE DON'T WANT TO OR CAN BE.I THINK THAT'S THE MESSAGE THAT WILL COME THROUGH TODAY IS NOTCOMMITTING EITHER WAY BUT JUST COMMITTING TOWARDS WATCHINGTHINGS PLAY OUT FOR A LITTLE BIT LONGER. >> THE ARGUMENT IS THERE ARETRACKS IF YOU LOOK FOR THEM.

WE HAVE CONSUMER CONFIDENCECOMING IN MUCH WEAKER AND A DALLAS FED SERVICES SURVEY.IS THE CONSUMER STARTING TO CRACK AND IF IT DOES DOES THATJUST GET INFLATION BACK DOWN TO TARGET OR IS IT SOMETHING MUCHWORSE FOR THIS ECONOMY NEEDS TO GET AHEAD OF. >> IT'S HARD FOR ME TO SAY THECONSUMER STARTING TO CRACK WHEN YOU LOOK AT THE RETAIL SALESDATA. IT STILL LOOKS PRETTY HEALTHY.IT'S A POINT THAT THE LABOR MARKET AT THE LEAST COMES BACKINTO BALANCE.

THAT'S WERE THINGS AT THE QUITSRATE RELEASED LATER TODAY THAT'S WERE IT'S REALLYIMPORTANT THAT RETURN TO THE PRE-PANDEMIC LEVEL OF QUITSWHICH SUGGESTS EVEN THOUGH PCI YESTERDAY WAS QUITE HIGH THELABOR MARKET BEING BALANCED DOES NOT NECESSARILY MEAN YOUWILL HAVE A WAGE PRICE SPIRAL. I THINK THE DATA YESTERDAYSUGGESTS THE WAGE PRICE SPIRAL THE DRIVES FUTURE INFLATIONHIGHER IS STILL PRETTY UNLIKELY. RIGHT NOW WHAT I DO NOT SEE ISA LABOR MARKET OVERHEATING, IT SOMETHING THAT'S MUCH MOREBALANCED.

>> THE U.S.CONSUMER ALIVE AND WELL, WE'VE BEEN DEBATING THE PRICE OF ALATTE. DANI: LET ME JUST SAY THIS ON THESHOW BECAUSE HE WILL BRING IT UP, I SPENT 0 ON A MACHOLATTE BUT IT WAS NOT AT STARBUCKS.I NEED TO GET IT OUT THERE BECAUSE HE WILL BRING IT UP.TIM: NOW THAT YOU SAY IT THE FED MAYBE DOES HAVE TO HIKE. [LAUGHTER] MANUS:THERE IS THE RATIONALE AND THE REASONING.THE HYSTERIA — THE HEDONISM OF.

THE U.S.CONSUMER PRAYED LET'S LOOK AT THE TREASURY SPREAD BECAUSEACTUALLY BLEW OUT AND THAT IS BASED CLEARLY ON THEOVERPRICING OF CUTS PERHAPS FROM THE ECB AND THEUNDERPRICING OF CUTS FROM THE U.S..THERE'S A SMALL TURN IN THAT. DO I NEED TO REAPPRAISE THETREASURY SPREAD? TIM: I THINK IT IS AT A FAIRLYAPPEALING LEVEL. THE INFLATION STORY IN EUROPEIS MORE THAN WHAT YOU SEE IN THE U.S.. I FEEL LIKE THE ECB ISADEQUATELY PRICED FOR THE.

MODERATE CYCLE THAT IS TO COME.WHAT WE SAW IS IT'S NOT AS BAD AS WAS FEARED AND SO I DO THINKTHERE'S ROOM FOR THAT. I'VE BEEN A FAN OF U.S.DURATION FOR A LITTLE WHILE TO TAKE THIS COMMENT WITH A GRAINOF SALT. BUT NEVERTHELESS REAL YIELDS INTHE U.S. VERSUS EUROPE, A NOMINAL YIELDSI THINK THAT DOES LOOK ATTRACTIVE TO NARROW A LITTLEBIT. DANI: IN STOCK LAND WE'VE SEEN THISREPRICING OF NOT NECESSARILY WEAK GROWTH BUT STRONG GROWTHAND RATE CUTS THAT DON'T HAPPEN.

SOONER.IT'S MADE THE MARKET MOVE SIDEWAYS.WHAT BREAKS THAT BECAUSE CLEARLY EARNINGS HAS NOT BEENENOUGH TO GET US MOVING HIGHER? DANI: I THINK — TIM:I THINK YOU NEED A COUPLE OF THINGS FOR THE U.S.TO START UNDERPERFORMING. I DON'T SEE AS LIKELY AS PERTHE COMMENTS PREVIOUSLY OR REALLY HARD LANDING BUT NOTONLY MOVES RATE CUTS THIS YEAR BUT BRINGS THEM AGGRESSIVELYAND YOU GET SOME EVIDENCE OF THE SLOW U.S.CONSUMER PRAYED IF YOU DON'T.

GET THOSE THE PATH OF LEASTRESISTANCE IS STILL MAY BE A LITTLE BIT FURTHER OF THISFROTH IN THE U.S. EQUITY MARKETS COMING OUT.WE GOT A LITTLE BIT OVER OUR SKIS AND Q1 BUT I STILL SUSPECTWE WILL PROBABLY MAKE NEW ALL-TIME HIGHS BY MIDYEAR MAYBEA LITTLE BIT AFTER THAT GIVEN THE RESILIENCE OF THOSE BIG CUTNAMES AND HOW HEALTHY THE BALANCE SHEET LOOKS.THE EARNINGS QUALITY IS STILL THE BEST IN THE WORLD. MANUS:FINISH WITH A FLOURISH AND A BID.LET'S SEE WHAT THE FED HAS GOT.

TO DELIVER. THANK YOU VERY MUCH.THE STORIES TRENDING UNDER BLOOMBERG TERMINAL.NEW YORK CITY POLICE OFFICERS ENTER COLUMBIA UNIVERSITY'SCAMPUS LAST NIGHT ARRESTING PRO-PALESTINIAN DEMONSTRATORSWHO HAVE BARRICADED THEMSELVES. COLUMBIA'S PRESIDENT SAID SHEASKED POLICE TO CLEAR ALL PROTESTS ENCAMPMENTS ANDMAINTAIN A CAMPUS PRESENCE THROUGH AT LEAST MAY 17. >> THE SENATE HAS VOTED TOAPPROVE LEGISLATION BANNING THE IMPORT OF ENRICHED URANIUM FROMRUSSIA. THE WHITE HOUSE SAYS IT.

SUPPORTS EFFORTS TO BLOCKRUSSIAN SHIPMENTS. PROHIBITING RUSSIAN IRANIANIMPORTS ACT WOULD BAR U.S. IMPORTS 90 DAYS AFTER IT'SENACTED. RUSSIA — >> THE BINANCEFOUNDER CZ SAYS HE WILL REMAIN A PASSIVE INVESTOR INCURRENCIES. ALLOWING CYBER CRIMINALS ANDTERRORIST GROUPS TO FREELY TRADE THE WORLD'S LARGESTCRYPTO EXCHANGE. THE PROSPECT — IT IS FAR BELOWTHE THREE YEARS THE PROSECUTORS HAD SOUGHT. DANI:.

DANIEL LOEBS INVESTMENT FIRMSAYS HALF OF ITS EQUITY PORTFOLIO IS NOW AN AI RELATEDNAMES INCLUDING WHAT IT CALLS A SUBSTANTIAL INVESTMENT IN THEFIRST QUARTER IN ALPHABET. THEY'VE ALSO ADDED POSITIONS INTSMC AND THE LONDON STOCK EXCHANGE. MANUS: AMAZON STRONG GROWTH, MORE ONTHE AMAZON STORY. DANI: WITH ELI LILLY SHOWING THEPOWER OF WEIGHT LOSS DRUGS NOVO NORDISK NOW TAKING CENTER STAGE.HERE ON BLOOMBERG BRIEF. ♪.

>> THE CONSIDERABLE MOMENTUM ONTHE AI FRONT WE'VE ACCUMULATED MULTIBILLION-DOLLAR REVENUEALREADY. YOU HEARD ME TALK ABOUT OURAPPROACH ALREADY. WE HAVE CAPABILITIES IN ALLTHREE LAYERS OF THE GENERATIVE AI STACK. >> SHARES OF AMAZON IN AVOLATILE POST MARKET SESSION. HELPS CLOUD UNIT SALES TO POSTITS STRONGEST GROWTH IN A YEAR. THE SALES FORECAST DISAPPOINTED.STEPPING INTO THE AMAZON AI BUSINESS DEBATE WITH US.THIS WAS A HUGE FOCUS OF THE.

EARNINGS.THE SIZE AND THE SCALE AND THE HALF OF AWS. CHARLIE: THIS WAS AMAZON'S SHOW ME A FORAI. WE'VE HEARD SO MUCH ABOUT THESEBIG TECH COMPANIES TALKING ABOUT AI BUT WHAT INVESTORSWANTED TO SEE WAS DO YOU NOT JUST HAVE THESE COOL TOOLS BUTARE YOU MAKING MONEY OFF OF THEM AND WILL YOU CONTINUE TOMAKE MONEY IN THE FUTURE. YESTERDAY ON AMAZON'SFIRST-QUARTER EARNINGS REPORT THEY WERE ABLE TO SAY YES.THE AI FRANCHISE SITS WITHIN.

AMAZON WEB SERVICES, AMAZON WEBSERVICES REVENUE IN THE FIRST QUARTER WAS UP 17% FROM THESAME PERIODS OF LAST YEAR BUT WHAT WAS INTERESTING AND WASVERY IMPORTANT WAS EXECUTIVES FOR THE FIRST TIME ATTACHING AMULTIBILLION-DOLLAR REVENUE FUND RATE TO THAT AI FRANCHISESO THAT TELLS THAT FUTURE STORY THAT INVESTORS HAVE BEEN RAZORFOCUSED ON AND IT SEEMS LIKE AMAZON SHOULD BE REWARDED FORTHIS. DANI: A DIFFERENCE WHERE YOU SAY YOUHAVE A LOT OF SPEND ON AI BUT IS IT COMING TO FRUITION.WE WILL HAVE BLAKE ON LATER TO.

TALK ABOUT THE RETAIL SIDE OFAMAZON BUT GIVE US A TASTE, HOW IS THAT PERFORMING? CHARLIE: WHAT WAS STRIKING WAS TALKINGABOUT SOME CONSUMER BEHAVIOR AND ACTUALLY A SOFTER THANEXPECTED STRIKINGLY WHAT HE SAID WAS CONSUMERS HAVE BEENTRADING DOWN AND SPENDING LESS. IT FEELS LIKE THE INFLATIONSTORY THERE. INTERESTINGLY AMAZON SHOPPERSARE BUYING MORE CONSUMABLES, THESE NEED TO BE DELIVEREDFASTER AND MORE FREQUENTLY AND OF COURSE THAT CUTS INTOPROFITS.

>> IN TERMS OF THE OTHER MAINTECH BEAST IT IS TESLA. AGAIN MORE CHANGES HERE WELEARNED THE SUPERCHARGER TEAM THEY ASKED.IT'S A BLOW NOT JUST A TESLA BUT THE BROADER EV MARKET? WHY? >> THIS IS A HUGE NETWORK AND ALOT OF THE MAJOR CARMAKERS FORD, GM HAD BEEN PLANNING TOTAP INTO THIS NETWORK, A EV CHARGING IS CRUCIAL FOR PEOPLEWHO ARE BUYING ELECTRIC VEHICLES AND WHAT WE FOUND ISTESLA IS CUTTING ALMOST ALL OF ITS 500 PERSON TEAM.WE KNOW ACCORDING TO A PERSON.

FAMILIAR WITH THE MATTER THISWAS A DECISION ELON MUSK TOOK IN THE LAST WEEK OR SO.JUST LAST WEEK THE COMPANY WAS TALKING ABOUT THE GROWTH OF ITSSUPERCHARGER NETWORK BUT THIS WILL CREATE CONFUSION ANDPOTENTIAL CHAOS FOR LARGE AUTOMAKERS WHO HAVE BEENSHIFTING TO THIS TESLA AND SHIFTING AWAY FROM A STANDARD,SENDING THEIR CUSTOMERS ADAPTERS TO USE IN THESUPERCHARGER NETWORK AND EVEN SOME VEHICLES THERE WAS WAS TOBE DELIVERED THOSE HAVE THE TESLA STANDARD INSTALLED SOTHIS CREATES A LOT OF CONFUSION.

WHAT HE IS SET ON TWITTER ISTHEY WILL FOCUS ON GROWTH WOULD SLOW GROWTH AND THEY WILL BEFOCUSING ON MAKING 100% UP SOUGHT — UPSIDE.AMERICAN CARMAKERS ARE NOT GOING TO LIKE IT. >> LOOKING AT TESLA SHARESPRE-MARKET WE ARE DOWN MORE THAN 1.5%.NOT UNWINDING THE MONDAY GAIN. CHARLIE, THANK YOU SO MUCH.CHARLIE WELLS THERE. MARY BARRA HAS TAKEN GM FROMFINANCIAL RUIN TO PROFITABILITY REVIVING A COMPANY THAT SOMESEE AS A RELIC OF DETROIT'S.

GOLDEN AGE. THEY TOLD EMILY CHANG WHY SHE'SBETTING BIG ON EV'S AND AUTONOMOUS DRIVING, ATECHNOLOGY SHE THINGS WILL BE CRUCIAL FOR THE NEXT ERA OFCARS. >> WE ARE STILL IN THE EARLYDAYS. BATTERY TECHNOLOGY IS STILLEXPENSIVE. BECAUSE OF THE VEHICLES ALREADYVERY EXPENSIVE PURCHASE FOR CONSUMERS.IT'S CONTINUING TO GET COSTS DOWN WHILE WE IMPROVE THETECHNOLOGY.

>> IT ALMOST FEELS LIKE HYPE ISSLOWING DOWN. DO YOU FEEL LIKE YOU AREBATTLING THAT SENTIMENT SHIFT AS WELL? >> I THINK IT WAS OVERHYPED ANDNOW IT'S PROBABLY UNDER HEIGHT. THE TRUTH IS SOMEWHERE IN THEMIDDLE. GROWTH HAS SLOWED BUT IT ISSTILL GOING. >> YOU SCALED BACK SOME EVTARGETS MAINLY BECAUSE OF THE MANUFACTURING MACHINES.WHY IS THAT STILL SUCH A CHALLENGE?.

>> I HAD GROWN UP INMANUFACTURING SO I FELT LIKE WE DID HAVE A LOT OF MANUFACTURINGEXPERTISE BUT WE TOOK FOR GRANTED SOME OF THE NEWERPROCESSES. >> ELON MUSK HAS MOCK THEM FORHOW LONG IT TOOK THEM TO GET INTO EV'S?WAS HE RIGHT ABOUT THAT? >> EVEN THOUGH WE WERE MOVING IWOULD'VE ACCELERATED THE PACE. >> TESLA STOCK IS UP MORE THAN1300% IN THE LAST 10 YEARS. GM IS UP 12 OR 13%.YOU HAVE MET OR BEAT EXPECTATIONS 35 OUT OF THE LAST30 SIX QUARTERS.

SO WHEN YOU LOOK AT THE STOCKDOES IT EVER PACE YOU OFF? >> IT DOES.BUT AGAIN I CAN GET MAD ABOUT IT AND BE UPSET AND FRUSTRATEDAND BELIEVE ME I HAVE THOSE MOMENTS. IN THE END IT'S OURRESPONSIBILITY. >> YOU CAN WATCH THAT TONIGHTAT 6:00 P.M. NEW YORK TIME ON BLOOMBERGTELEVISION OR STREAM IT AT 8:00 P.M. EASTERN.THE BOND MARKET IS NERVOUS AHEAD OF THE FOMC AND THEPOWELL NARRATIVE. WE KNOW YESTERDAY THERE WAS HOTPCI, READING THE RESEARCH.

RETROSPECTIVE AND WE ARE ALLPUTTING A LITTLE BIT TOO MUCH EMPHASIS ON THAT. >> WE HAVE NOW JUST PRICED INONLY ONE FULL RATE CUT FOR THE YEAR.WHAT KIND OF TONE DO WE GET FROM POWELL.MAYBE THE AIM IS TO SAY NOTHING AND THAT WILL BE A WIN.WE MOVED THE MARKET. I DON'T THINK WE HAVE THATPOWER BUT COMING UP MORE OF YOUR TOP STORIES. ♪ DANI: THIS IS BLOOMBERG BRIEF.TIME FOR SOME OF OUR FRONT-PAGE.

NEWS. DANI: THIS STORY — MANUS:THIS STORY IS ESCALATING. MULTIPLE PROTESTS, STUDENTSACROSS THE GLOBE JOINING THE PALESTINIAN PROTESTS IN KUWAIT,LEBANON, EGYPT, PARIS AND AUSTRALIA TO NAME A FEW.THIS PILES PRESSURE ON ADMINISTRATORS AND COMPANIES TODIVEST FROM ISRAEL. YOU AT PICTURES FROM THE YALECAMPUS, THE COLUMBIA PICTURES YESTERDAY IN THE AFTERNOON ANDEVENING WERE A SERIOUS ESCALATION. DANI: STUDENTS BARRICADING THEBUILDING.

ANTONY BLINKEN IS IN ISRAEL.MERCEDES HAS REPLACED ITS U.S. CEO. THE COMPANY IS FACINGAGGRESSIVE CAMPAIGNING BY THE UNITED AUTO WORKERS.THEY ARE ELEVATING SOMEONE ELSE. MERCEDES DID NOT GIVE A REASONWHY BUT IT'S CLEAR THEY ARE HOLDING A VOTE ON UNIONIZING APLANT IN ALABAMA. >> THE STORY OF THE DAY IN CASEYOU HAVEN'T ALREADY LISTENED IN BUT STARBUCKS CEO THE STOCK HASBEEN BATTERED THIS MORNING. IT'S A PROMISE OF A TURNAROUNDSTORY FROM THE CEO TO SPEED UP SERVICE AND TO MAKE SURE YOUGET YOUR LATTE.

NET INCOME FELL 15%.I HAVE A LOYALTY APP FOR STARBUCKS. BUT I HAVE TO SAY THIS ISVIRTUAL — IT'S VIRTUAL SACRILEGE AGAINST COFFEE ANDSOME SHOPS. >> THEY HAVE THIS BIG POSTERWITH THEIR FANCY LAVENDER LATTE. I'VE NEVER SEEN ANYONE DRINKTHIS THING. IT'S LITERALLY THE LEAD OF OURSTORY THAT CONSUMERS ARE TOO PRICE-SENSITIVE TO PURCHASE ALAVENDER LATTE. DANI: I WOULD SHARE WITH — MANUS:I WOULD SHARE ONE WITH YOU.

IF YOU THINK ABOUT IT SLOWDOWNAT STARBUCKS, MCDONALD'S UNDER PRESSURE.TALKING ABOUT THE QUALITY FOOD AND BEVERAGE SECTOR. DANI:CONSUMERS ARE UNDER PRESSURE. SPEAKING OF WHICH WE WILL TALKABOUT THE AMAZON CONSUMER COMING UP. ♪ >> FROM OUR GLOBAL HEADQUARTERSIN NEW YORK, I'M DANI BURGER WITH MANUS CRANNY. MANUS: THE MARKETS BRACE FOR A HAWKISHPIVOT FROM CHAIRMAN POWELL.

AMAZON GETS AN AI BOOST. THESTRONGEST SALES GROWTH IN OVER A YEAR.THE TESLA COSTS CUTS CONTINUE. ELON MUSK CUTS THE SUPERCHARGERTEAM. RAMIFICATIONS NOT JUST FOR TESLA, BUT FOR THE GREAT EVDREAM. DANI: I HAVE GOOD NEWS AND BAD NEWSFOR YOU THIS MORNING. THE GOOD NEWS IS THAT YOUINDEED MADE IT PAST APRIL. WHAT A DIFFICULT APRIL IT HASBEEN. AMAZON SHARES ARE UP, BUT ITISN'T HELPING THE OVERALL MARKET.

DOWN HALF OF 1%, APRIL STOCKSDROPPING 4% AFTER FIVE MONTHS OF STRAIGHT GAINS.CLEARLY, SOMETHING HAS CHANGED. YIELDS HAVE MOVED HIGHER BY 50BITS IN APRIL. IT HAPPENED AGAIN YESTERDAY ANDWE ARE BACK ABOUT 5% ON THE TWO-YEAR YIELD AND IT DIDN'THELP THAT WE HAD THE ECI COMING IN HOTTER THAN EXPECTED WITHCONSUMER SENTIMENT THAN EXPECTED.IT'S A CAREFUL NEEDLE THAT POWELL WILL HAVE TO THREADTODAY. NOT GOOD NEWS FOR THE YEN.HOT DATA JUST BELOW 158.

TIM GRAFF STATE STREET SAID THEMARKET HAD GONE TOO FAR. LOOKING AT THINGS LIKE THEEMPLOYMENT COSTS INDEX, HE CALLED IT BACKWARDS LOOKING ANDPERHAPS WE NEED TO REIN IN THE BOND MARKET LOSSES. MANUS: THE MARKET IS ALREADY QUITESHORT, MAXTOR RATION ACCORDING TO THE BANK OF AMERICA.LOCKED UP AND LUMPED UP, LOOKING LARGE IN THE FACE OF AMORE RESTRICTIVE POWELL. IS THAT WHAT HE WILL PIVOT TO?PCE IS NOT EXACTLY CAREER LOWER, BUT THIS IS WHAT STATESTREET, THE POINT TIM JUST.

MADE, PENCILING IN 2.6%, YOUARE ALL FAR TOO NEGATIVE ABOUT THE TRAJECTORY OF THEDISINFLATION AND AS YOU SAY, THERE ARE >>, FISHERS, IN SOMEOF THE STORIES. DANI: IT'S THE K SHAPED RECOVERY, BUTAS CHARTER SAYS, POWELL DOESN'T WANT TO SOUND OVERLY HAWKISH.HE HAS SAID BEFORE THAT THINGS ARE RESTRICTIVE AND HE DOESN'TWANT THEM TO BE MORE RESTRICTIVE. MANUS: IT'S MORE OF A QUESTION OFPRICING AND WHAT IS AN INSURANCE CUT.

AS FAR AS AMAZON, IT'S RISINGIN PREMARKET, STRONG RESULTS. GOING FORWARD IT TRAILEDESTIMATES. LET'S DIG INTO THE AMAZONRETAIL SIDE OF THE BUSINESS. WE'VE GOT THE SENIOR ANALYST ATE-MARKETER. ON THE CONSUMER SIDE AND THEDELIVERY SIDE, IT'S NOT THE MAIN ALPHA DRIVER OF SENTIMENT. IT IS A FEEDER TO THEADVERTISING BUSINESS. YOUR ASSESSMENT THIS MORNING?BLAKE: DEFINITELY NOT THE SEXIEST PARTOF THE AMAZON BUSINESS ANYMORE,.

BUT IT REALLY HELPS TO PROPELTHE FLYWHEEL. IF YOU HAVE GOT MORE AND MORECUSTOMERS MAKING USE OF THE AMAZON PRIME MEMBERSHIP TOACCESS FREE AND FAST SHIPPING THROUGH AMAZON, THEY ARE GOINGTO BE USING THE WEBSITE MORE, FEEDING INTO THE MEDIA BUSINESSAND IT ALL TIES INTO THE STELLAR ADVERTISING GROWTH THATWE SAW THIS QUARTER. DANI: BLAKE, LOOKING AT HOW CONSUMERSWERE FOR AMAZON IN THIS QUARTER, RESULTS SHOW THATCUSTOMERS ARE SHOPPING BUT REMAIN CAUTIOUS IN TRADING DOWNON PRICE WHEN THEY CAN AND.

SEEKING OUT DEALS.RESULTS FOR E-COMMERCE WERE SLIGHTLY WEAKER, BUT IS THISSOMETHING THAT AMAZON CAN ULTIMATELY CAPITALIZE ON?OR DOESN'T MEAN THAT MARGINS ARE TOO DIFFICULT FOR THEM INTHIS TYPE OF ENVIRONMENT? BLAKE: IT'S TOUGH.I BELIEVE THAT AMAZON IS WELL-POSITIONED.SINCE PANDEMIC WE HAVE SEEN CUSTOMERS GETTING THE GOODSTHEY TYPICALLY BUY AT THE GROCERY STORE, AT THE PHARMACY,ONLINE, AND GETTING GOOD PRICES WITH FAST SHIPPING AND I THINKTHAT IS A GOOD VALUE.

PROPOSITION FOR THE CONSUMER INANY ECONOMIC ENVIRONMENT. AMAZON SPENT THE LAST YEAR ORSO REALLY RESTRUCTURING THEIR BUSINESS TO OPERATE MOREEFFICIENTLY, SO THOSE RETAIL MARGINS ARE PERHAPS A LITTLEBIT STRONGER. A LOT OF THAT HAS TO DO WITHRESTRUCTURING THE FULFILLMENT STRUCTURE TO MAKE IT MOREREGIONALIZED. THAT IS NOT ONLY MAKING THESHIPPING MORE EFFICIENT ON THE BACKEND, BUT IT'S ALSO HELPINGTHE CONSUMER GET THE ESSENTIAL HOUSEHOLD GOODS THEY ARE.

PURCHASING MORE FREQUENTLYONLINE, AND IT WILL ENABLE AMAZON TO KEEP INVESTING IN THEE-COMMERCE BUSINESS, OPERATE MORE EFFICIENTLY, AND BE ABLETO HAVE THE ACTIVITY ON THE SITE HEALTHY, AGAIN FUELING THEFLYWHEEL. MANUS: JUMPING THE RUBICON FROMPHYSICAL TO ONLINE, THEY ALREADY HAVE 40% OF THE U.S.DELIVERY MARKET. WHAT GOES THROUGH MY MIND ISHOW DO YOU GROW THAT WITHOUT THE REGULATOR TURNING AROUNDAND GOING YOU ARE TOO POWERFUL AND TOO DOMINANT? BLAKE:A GOOD QUESTION.

IT REMAINS TO BE SEEN. AMAZON, WE EXPECT THEM TO CROSS40% SALES FOR THE FIRST TIME IN 2024.THE NEXT LARGEST COMPETITOR IS WALMART.AMAZON IS FIVE TIMES LONG — LARGER THAN WALMART IN TERMS OFE-COMMERCE SALES. ONE CATEGORY ALONE OVER WHATWALMART SELLS FOR THE ENTIRE U.S. E-COMMERCE BUSINESS.AMAZON IS GOING TO BE MORE AGGRESSIVE IN GOING INTOCATEGORIES, LARGE RETAIL CATEGORIES THAT HAVE LOWPENETRATION.

WE SEE THE DEAL WITH HYUNDAIFROM LAST YEAR. IT'S A BIG CATEGORY IN AUTO ANDRETAIL, VERY SMALL E-COMMERCE PENETRATION IN TERMS OFOPPORTUNITY TO BE ABLE TO GROW THEIR MARKET SHARE.THAT IS A FOCUS AREA FOR ME. GROCERIES, SECOND LARGESTRETAIL CATEGORY OVERALL. LOW ONLINE PENETRATION.AMAZON BEING AGGRESSIVE, PARTICULARLY IN THE GROCERYSEGMENT. WITH THE KROGER MERGER FROMALBERTSON'S, THAT COULD BE THE — THAT COULD BE PROBLEMATIC.

DANI:WE MENTIONED THIS EARLIER IN THE SHOW, THE LOWER ECONOMICRUNG OF CONSUMERS, MCDONALD'S, COKE AND PEPSI, STARBUCKS,NESTLÉ, SOME OF THOSE BUSINESSES ARE FEELING THEPINCH OF CONSUMERS THAT DON'T WANT TO SPEND MORE, BUT THEOVERALL ECONOMY IS DOING WELL BECAUSE THE WEALTHY ARE AMONGUS ARE STILL SPENDING. IF AMAZON IS BRANCHING INTO NEWAREAS OF E-COMMERCE, DOES IT WHO THEM TO TARGET E-COMMERCE?NOT THE ONES WHO WANT DEALS AND DISCOUNTS, BUT THE ONES WHO ARESTILL WILLING TO SPEND. BLAKE:.

AMAZON BENEFITS FROM THE FACTTHAT 70% OF THE POPULATION HAS ACCESS TO PRIME MEMBERSHIP.FOR THAT REASON, THE CUSTOMER AND BASE IS EXTREMELY DIVERSE. THEY ARE GOING BACK TO THEPEOPLE PURCHASING MORE ESSENTIAL HOUSEHOLD GOODSONLINE. HEALTH AND PERSONAL CARE IS THEFASTEST-GROWING SEGMENT BY A LONGSHOT. THESE ARE PARTS OF HOUSEHOLDBUDGETS WHERE THEY WILL HAVE TO PURCHASE NO MATTER WHAT.IT IS NOT A LATTE THAT THEY CAN.

SKIP OUT ON.WHEN YOU RUN OUT OF TOILET PAPER OR A PAPER TOWEL, YOUNEED TO REPLENISH THESE ITEMS. A LOT OF THE WOES WE ARE SEEING IN FAST FOOD, PEOPLE DON'T STOPPURCHASING THESE PRODUCTS, BUT THEY TRADE DOWN.AMAZON EXPANDED THE CONSIDERATION SET.CONSUMERS WERE LOOKING TO BUY CHEAPER OPTIONS AND STILLACCESS FAST AND FREE SHIPPING. AS FAR AS EXPANDING INTO OTHER AREAS, IT'S A LONG HYUNDAI,THEY HAVE STRUCK A PARTNERSHIP.

THERE IS AN ELEMENT TO IT.IT'S A LONG-TERM INVESTMENT THAT GOES BEYOND HOW AMAZON ISTRYING TO MEET CONSUMERS IN THE CURRENT ENVIRONMENT. DANI: ALEXA, SHE WILL BE IN THE CAR,TOO. SHE WILL FOLLOW US EVERYWHERE. I'M STILL GETTING USED TO NEWYORK DRIVING. BLAKE, THANK YOU SO MUCH.COMING UP, ELI LILLY SHOWING THE POWER OF WEIGHT LOSS DRUGS.NOVO NORDISK TAKES THE STAGE. NO ROOM FOR DISAPPOINTMENT.THIS IS BLOOMBERG.

♪ >> FROM THE WORLD POLITICS TOTHE WORLD OF BUSINESS, TWO TIMES PER DAY, 1 P.M. AND 5 P.M.EASTERN, JOE MATHIEU AND KAILEY LEINZ DELIVER NEWS, INSIGHT,AND ANALYSIS FROM AND ABOUT THE BIGGEST POWER PLAYERS. >> THE PRESIDENT HAS BEEN CLEARTHAT IT'S NONNEGOTIABLE. >> “BALANCE OF POWER,”ONLY ON BLOOMBERG TV AND RADIO. CONTEXT CHANGES EVERYTHING.DANI: YOU ARE LOOKING LIVE AT THEPRINCIPAL ROOM.

LATER TODAY, INTERVIEW WITHBILL READY AT 11:30 A.M. EASTERN, FOUR 30 A.M. IN LONDON.THIS IS BLOOMBERG. >> BACK IN DECEMBER THEY WERELOOKING FOR SIX, THEN THREE, NOW TWO AND ONE.THE MARKET HAS TO READJUST. IT'S BEEN A HUGE CHANGE, ASHIFT , THEY'VE TAKEN IT IN STRIDE.A STRONG JANUARY, FEBRUARY, AND MARCH WERE AHEAD OF THE MARKET.THE FED WILL BE DOWN INDEPENDENT.WE'VE ADJUSTED TO 5% INTEREST RATES APPEAR.

WE WILL HOLD IT FOR A WHILE. THE MARKET IS GOING TO GOSIDEWAYS. YOU COULD EASILY HAVE A 10% TO13% SELLOFF IN A BULL MARKET YEAR. THE MARKET COULD BE CHOPPYDURING THE SUMMER. WE HAVE GOT THE ELECTION.THE FED WILL BE DATA-DEPENDENT. DANI:I ASKED THIS QUESTION ON RADIO. ONE OF THE FIRST LINE TODAY WASONE OF THE BASIC PRINCIPLES OF NAVIGATING THE MARKET IS TODATE AND NOT MARRY YOUR POSITION.WHAT POSITION SHOULD YOU DATE.

RIGHT NOW AND WHAT POSITIONSHOULD VERY? >> I HEARD YOU THIS MORNING ANDTHAT WAS AN INTERESTING DISCUSSION.I'M GOING TO MAKE A SHOUT OUT TO MY WIFE, ROBIN.40 YEARS, THIS MONTH OF MAY. COMMITMENT, I THINK YOU STAYMARRIED. I'M A LONG-TERM INVESTOR.I AM GOING TO BUY THE BETA OF THE MARKET AND HOLD IT.I'M OK BEING MARRIED TO POSITIONS.I DON'T NECESSARILY BELIEVE IN TREATING AND TRYING TO TIME THEMARKET.

I HAVE LEARNED THAT THE HARDWAY MYSELF. FOR THE FUND YEAR WE HAVE DONEWELL INVESTING THROUGH THICK AND THIN.MAYBE YOU FLOW A BIT, DIVERSIFY THE PORTFOLIO 70-30, YOU HOLDFOR THE LONG TERM AND STAY MARRIED TO YOUR ASSETALLOCATION WITHOUT WORRYING ABOUT INDIVIDUAL STOCKS. DANI: THAT WAS THE MCALLISTER CEOSPEAKING ON BLOOMBERG YESTERDAY. THE CHAIR POWELL MAY ADOPT AMORE HAWKISH TERM — TONE TODAY WITH NO PLANS FOR CUTS IN THENEAR FUTURE, KEEPING RATES.

STEADY. JOINING US NOW IS LIZMCCORMICK. IT PROBABLY DOESN'T HELP POWELLTHAT WE ARE OFF OF THE BACK OF HOTTER EMPLOYMENT INDEX DATA,SOMETHING THEY LIKE TO LOOK AT FOR WAGE INFLATION.WHAT IS THE NEEDLE THAT HOW WILL NEEDS TO THREAD WHEN HESPEAKS TODAY? LIKE THE ECI — LIZ:LIKE THE ECI NUMBER, IT WAS HOT. CHAIRMAN POWELL, CLEARLY HE ISGOING TO DOUBLE DOWN ON HOW HE SIGNALED AT THE IMF MEETINGSTHAT THE DATA ISN'T THERE, WE DON'T HAVE THE CONFIDENCE.I WAS SPEAKING TO A FUND.

MANAGER YESTERDAY FROM VANGUARDWHO SAID — REMEMBER JOHN WILLIAMS FROM THE RECENT TALKAT THE NEW YORK FED WAS ASKED BY A REPORTER WHY WOULD YOURAISE RATES, COULD YOU RAISE RATES, AND HE BASICALLY LIKE AGOOD CENTRAL BANKER SAID IF INFLATION PICKS UP, THAT'S THETHEORY, AND THIS FUND MANAGER SAID THAT IF HE ASKED TO THATTOMORROW, IT WOULD BE A TOUGH QUESTION BECAUSE ANYTHING THATHE SAYS THAT DOESN'T SOUND DEFINITIVELY LIKE NOT RAISINGRATES, YOU WILL SEE A MARKET REACTION.HE HAS A TIGHT ROPE AND THEY.

LOVE TO HAVE OPTIONALITY. WE ARE ALL ON PRICE FOR CUTSTHIS YEAR. ANYTHING HAWKISH, YOU CAN SEELESS THAN A FULL QUARTER POINT CUT PRICED IN THIS YEAR.IT WILL BE A TIGHT ROPE FOR HIM TO WALK FOR SURE. MANUS:WE HAD A CONVERSATION WITH TIM GRAFF EARLIER, HE REMINDED US,SOLID, FRESH REMINDER, THE FED THEMSELVES PENCILED IN PCE THISYEAR, RUNNING AT 2.8%. I DON'T KNOW WHAT THE PCE ISGOING TO DO OVER THE NEXT COUPLE OF QUARTERS, BUT THEDISTANCE TO TARGET IS NOT THAT.

FAR.A LOT HAS TO GO VERY WRONG TO REALLY DESTABILIZE THETRAJECTORY. MAYBE THEN IT WILL BE STICKY.SOME SAID THAT IT WAS A ROUNDING ERROR IN TERMS OF THEBONDS ISSUED IN A QUARTERLY FUNDING, BUT IT IS MORE NUANCEDTHAN THAT. GIVE US THE BOW ON TOP. LIZ: IT'S SUCH A FOCUS ON THEFICTIONAL — FISCAL PICTURE IN THE U.S., A ROUNDING ERROR GETSATTENTION. MONDAY WE SAW THE AGGREGATE ONWHAT THE TREASURY DEPARTMENT IS.

BORROWING FOR THE QUARTER, SOTHERE IS SOME IMPORTANT STUFF FOR THE TREASURY FOLKS BESIDESTHE FED. WE HAD THE REFUNDING ANNOUNCEMENT, WITH WHAT THEYWILL BE SELLING FOR 3, 10, 30 YEAR NOTES NEXT WEEK.WE ARE LOOKING FOR COUPON ISSUANCE TO STAY STABLE.IT WAS RAISED IN THE LAST THREE QUARTERS AND TREASURY SIGNALEDIT WAS STATUS QUO AND HIGH ENOUGH OR MANY AUCTIONS TO BEAT HIGHER LEVELS. ANY NUANCE WILL INVOLVE EXACTDATA FOR THE BUYBACK PROGRAM THEY ARE DOING.PEOPLE WERE LOOKING AT THE.

INDICATIONS FOR WHAT THEY WOULDDO WITH SUPPLY, THE BUFFER. IF THINGS ARE WORSE THEY COULDSELL MORE OR LESS, THERE IS A LOT TO LOOK AT AT 81 34 US. DANI:IF THERE IS A PLACE TO THRIVE FOR BOND WONKS, ITS EUROBLOOMBERG. YESTERDAY JANET YELLEN SAID SHEWAS CONCERNED WITH WHERE WE ARE GOING WITH THE DEFICIT AND WENEED CONGRESS TO GET THEIR ACT TOGETHER TO MAKE PROGRESSALONGSIDE THE WHITE HOUSE. THERE'S NO SIGN THAT IT WILLHAPPEN, BUT WHEN WE GOT THE.

ROUNDING ERROR ON MONDAY,REACTION WASN'T HUGE. WHAT HAVE YOU BEEN HEARING INTERMS OF THE FEAR OF THE FISCAL POSITION OF THE U.S.AND HOW IT PLAYS INTO WHETHER TRADERS ARE WILLING TO BUYBONDS RIGHT NOW? LIZ: I THINK THAT PEOPLE HAVE GOTTENWELL-INFORMED, SO IT WAS A TEENY BIT OF REACTION THAT WENTAWAY. PEOPLE REMEMBERING THAT WHAT ISMORE IMPACTFUL FOR THE MARKET IS THE COUPON BEARING DEBT, THENOTES AND BONDS. PEOPLE WERE CLEAR THAT AFTERALL OF THE INCREASES THEY.

STARTED IN AUGUST, WE WON'T SEEMORE AND IT IS NOT AS BAD. OH GOING BEYOND THAT, NO ITSAYING ANYTIME SOON TREASURY COULD REDUCE THE SIZE OF THELONG-TERM DEBT ISSUANCE. WE JUST DON'T KNOW HOW SOON,THEY ARE THINKING SOMETIME IN 2025 THEY MIGHT HAVE TO LIFTLONG-TERM TECH SALES AGAIN. TO JANET YELLEN'S LONG-TERMPOINT, PEOPLE ARE AWARE AND IT IS IN A SENSE MOVING THE TERMPREMIUM A LITTLE BIT. IT'S THERE, BUT THERE ARE SOMANY OTHER ISSUES LIKE WHAT THE FED DOES.FRONT AND CENTER IS THE RATE.

POLICY, BUT IT IS LOOMING INTHE BACKGROUND OF PEOPLE SAYING YES, THE DEBT PROBLEM IS APROBLEM. WE WILL WAIT TO SEE WHATCHANGES AND THE POLICY. MANUS: YOU TOUCHED ON A RAW NERVETHERE, IS THERE ENOUGH TERM PREMIUM TO TEMPT REAL BORROWERSBACK IN? THANK YOU VERY MUCH, LIZMCCORMICK. WE WILL SEE WHAT POWELL SAYS. LEADING INTO THE MAKERS OF THECOVID VACCINE, SALES PLUMMET. PFIZER LOOKING TO NEW MEDICINESIN CANCER AND INFECTIOUS.

DISEASES TO DRIVE REVENUE ANDRETURN TO GROWTH. WE BROUGHT IN OUR SENIOR PHARMAANALYST, SUZANNE. T. HOW DID THEY REPLACE THEPIPELINE WITH SIGNIFICANT NEW DRUGS? >> YEAH, THE WAY THAT PFIZERMANAGEMENT CHARACTERIZED 2024'S DAY CALL IT AN EXECUTION YEAR.THEY ARE GOING TO SHOW A PRETTY AWFUL LOOKING QUARTER ON AQUARTER BASIS. Q1 THIS YEAR, BECAUSE OF THEMUCH LOWER SALES OF COVID VACCINES, THE SAME FOR PAXLOVID.IT'S GOING TO BE PRETTY UGLY IN.

TERMS OF NUMBERS.THE QUESTION IS, WHAT DO THEY SAY AND HOW HAVE THEY SUITED ONTHE NEW DRUG LAUNCHES? 14 KIDNEY CANCER, WHICH THEY RECENTLY — THERE IS ONE FORKIDNEY CANCER THAT CAME FROM SEATTLE GENETICS.THIS IS WHAT THE MARKET WILL BE FOCUSED ON.AND OF COURSE, HOPING THEY DON'T CHANGE THE GUIDANCE FOR2024, WHICH AS THEY SAID SHOULD BE EASILY ACHIEVABLE. DANI:WE ARE GOING TO GET NOVO NORDISK EARNINGS TOMORROW.IT IS A MACRO EVENT FOR.

DENMARK, CONSIDERING HOW MUCHIS RIDING ON NOVO NORDISK, BUT THERE IS INCREASED COMPETITIONAND SUPPLY CHAIN ISSUES. CAN NOVO NORDISK KEEP THE SKIESBLUE WITH THEIR EARNINGS? SAM: I DON'T KNOW ABOUT THE SCALLIONDENMARK TOMORROW, BUT THE REALITY IS THERE IS SO MUCHDEMAND FOR THESE PRODUCTS, THEY WILL BE SELLING AS MUCH AS THEYCAN MAKE. THEY ARE STILL SUPPLY CONSTRAINED. THAT MIGHT EQUALIZE IN 2025,2026, BUT THEY ALREADY RAISED SO MUCH YESTERDAY.THE QUESTION IS, WHAT WILL THEY.

DO TOMORROW?ARE THEY SEEING THE SAME TRENDS? YESTERDAY, WE SAW PEOPLESTARTING PRESCRIPTIONS, NEW TO BRAND, THEY ARE ABOVE 50%.OF COURSE, NOVO NORDISK HAS ANSWERS FOR THIS, BUT THEQUESTION IS HOW HAS THAT IMPACTED IN WHAT ARE WE LOOKINGFOR WHEN WE SEE THE NUMBERS TOMORROW? DANI:UP 20% THIS YEAR AFTER A BIG RUN UP LAST YEAR.SAM, THANK YOU SO MUCH. COMING UP, WE GET YOU SET UPFOR THE DAY. MARKET MOVING EVENTS TO WATCH,DID YOU KNOW THAT THERE IS AN.

FOMC MEETING WHERE POWELL WILLBE SPEAKING? THAT'S THE BIG ONE. WILL WALK YOU THROUGH IT. DANI: IT'S “BLOOMBERG BRIEF,” LET'S GET YOU SET UP FOR YOURTRADING DAY. 8:30 A.M. EASTERN, WE GET THE TREASURYQUARTERLY FUNDING ANNOUNCEMENT WITH OTHER ECONOMIC DATAINCLUDING ISM MANUFACTURING. IT COMES OUT AT 10 A.M.AND THEN YOU GET YOUR MAIN EVENT, THE FED ANNOUNCES A RATEDECISION AT 2 P.M. EASTERN AND WE GET THE CHAIRPOWELL NEWS CONFERENCE AT 2 P.M.

AND TUNE IN FOR THAT, WE WILLCARRY YOU THROUGH THE COVERAGE. MANUS:WHEN IT COMES TO EQUITIES, WE HAVE BEEN TALKING ABOUT THATTHROUGH THE MORNING. WE HAVE BEEN HAVING A BIT OF AGIGGLE BUT STARBUCKS FELL FOR THE FIRST TIME SINCE 2020 ONHALF OFF DEALS AND LAVENDER LATTES.IT WAS NOT ENOUGH TO ENTICE YOU IT.DANI BURGER DID HAVE A LAVENDER LATTE, I HAVE IT ON GOODAUTHORITY. ROCKET AND ROLLING SALESSURPASSING THE STREET.

FINALLY, ADVANCED MICRODEVICES, REALLY UNDER PRESSURE. DISAPPOINTING FORECAST ON THEAI PROCESSORS. DANI: I DON'T KNOW WHERE YOU GET YOURINFORMATION FROM. I HAD A MACHO LATTE.IT PROMPTED TIM GRAFF SAYING THAT THE FED MAYBE NEEDS TOHIKE. AB HE HAS A POINT? THAT IS NOT WHAT WE AREEXPECTING FROM CHAIR POWELL TODAY. HE DOESN'T WANT MORERESTRICTIONS. THAT WE MIGHT CUT AT SOME POINT.MANUS: IT'S LIKE KEEPING THE DREAM OFAN INSURANCE CUT ALIVE.

THE BOND MARKET, SO SHORT INTEREST. WE ARE OFF TO GETWHAT, MATCHA LATTES? [LAUGHTER]

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