Fed in Point of interest for Week | Bloomberg Surveillance 03/18/2024

SO, I THINK I HAD A LUCKY ANDBLESSED EXISTENCE THAT WAY. >> INFLATION HAS BEEN MORESTUBBORN THAN EXPECTED. >> INFLATION IS INSIDIOUS.THAT SAID, WE HAVE CONTINUED TO THINK IT IS THE SECOND HALF OFTHE YEAR WHERE THE RATE CUTS HAPPEN. >> THE MARKET IS CONTENT TOPRICE IN A JUNE RATE CUT, BUT THE REAL DEPARTURE POINT MIGHTBE JULY. >> FOR QUITE SOME TIME WE HAVEBEEN SAYING THAT THE FED WILL BE SLOWER TO LOWER INTERESTRATES.

>> THE MARKET IS FUNDAMENTALLYREASSESSING RATE CUTS FOR THE YEAR. >> THIS IS “SURVEILLANCE OR COWJONATHAN: LIVE FROM NEW YORK CITY THISMORNING — “SURVEILLANCE.” JONATHAN:THE S&P MARKET, POSITIVE. LAST WEEK WAS ALL ABOUT THEDATA . THIS WEEK IS ALL ABOUT THEDECISION. TOP OF THE PILE, FEDERALRESERVE AROUND THE CORNER. >> THEY ARE NOT GOING TO DOANYTHING, BUT THEY WILL RELEASE.

THE ECONOMIC PROJECTIONS ANDTHEY MIGHT START TALKING ABOUT WHEN TO END QUANTITATIVETIGHTENING. THEN TALK ABOUT THAT NEUTRALRATE. HOW THEY REASSESSED THE ASSUMPTION OF WHAT THE WORLDLOOKS LIKE POST-PANDEMIC. JONATHAN:AND THEY HAVE GOT TO GO THROUGH TO ANALYZE WHAT'S GOING ON.STICKY INFLATION. GEMMA POWELL IS LOOKING FORCONFIDENCE. HAVE THEY GAINED, LOSS, ORRETAINED THE CONFIDENCE THEY HAD AT THE END OF JANUARY? LISA:ONE PERSON ON WALL STREET WILL.

SAY LOOK UNDERNEATH THE HOODBUT THIS IS DISINFLATIONARY INFORMATION WE ARE LOOKING AT.OTHERS SAYING HOLD ON A SECOND, THIS IS DIFFERENT.THIS IS STICKIER INFLATION THAT REFLECTS A NEW REALITY FROM THEFEDERAL RESERVE WITH A NEUTRAL RATE AT 2.5%, IT DOESN'T MAKESENSE. JONATHAN: I KNOW THAT YOU HATE THEBACHELOR, BUT IT ALWAYS ENTERTAINS ME.DID YOU SEE THAT PIECE ON THE NEXT FEDERAL RESERVE CHAIR?FOR THOSE WHO MISSED THIS, THURSDAY THERE WAS A MEETING INFLORIDA BETWEEN TWO ADVISORS TO.

FORMER PRESIDENT DONALD TRUMP,GIVING THEIR THREE PICKS, THE SUGGESTION TO BE THE NEXT FEDCHAIR. I HAVE TO SAY THAT KEVIN WALSH,NOT A SURPRISE. IF YOU HAD ASKED ME A FEW WEEKSAGO I WOULD HAVE SAID THAT'S A TOPIC.BUT IT LOOKS LIKE IT WON'T BE CHAIRMAN POWELL. LISA:THIS IS LOGICAL, EVEN THOUGH CHAIRMAN POWELL WAS NOMINATEDAND CONFIRMED BY DONALD TRUMP. THERE IS — THERE IS ALWAYSREGIME SHIFT BUT WHAT WILL DONALD TRUMP BE PUSHING FOR?CUTTING RATES MORE?.

IT GOES TO YOUR QUESTION, WHATIS TAKE-TWO OF A DONALD TRUMP PRESIDENCY?DOES IT LOOK THE SAME OR DO YOU SEE A DIFFERENT RESPONSE WITHCUTTING RATES IN AN INFLATIONARY MOMENT WHILE ALSOTRYING TO POTENTIALLY INCREASE TARIFFS? JONATHAN:LET'S SAY THAT IT'S KEVIN WALSH, AND I HAVE NO IDEA, BUTI HAVE CAUGHT UP WITH HIM IN THE YEARS GONE BY, HE'S PRETTYHAWKISH. I'M NOT SURE THAT THE MARKETPERCEPTION RIGHT NOW OF HIM WOULD BE — LET'S RALLY, LET'STAKE EQUITIES TO ALL-TIME HIGHS.

HE MIGHT BE A DIFFERENT PERSONAT THE SEAT, IF HE TAKES IT, BUT AT THE MOMENT THE MARKETPERCEPTION OF HIM IS THAT HE'S A HAWK. LISA:WHAT'S YOUR PERCEPTION OF THIS EPISODE OF “THE BACHELOR”?IS IT TRUMP WITH MONETARY POLICY OR IS IT HOLD ON, IFTHIS IS A HAWKISH CENTRAL BANKER, WE DON'T WANT HIM.YOU HAVE TO WONDER WHAT THE MIXED-SIGNAL IS.WHEN I READ THIS I THOUGHT THAT SHE IS TRYING TO COME OUT WITHSOMETHING THAT LOOKS AND SMELLS LIKE POLICY. JONATHAN:IT FEELS LIKE BALLOONS BUT WHEN.

ONE OF THE ADVISORS IS ADVISINGIT, THEY HAVE TO BE ON THE LIST AND I'M NOT SURE HOW SERIOUSYOU TAKE ANY OF THIS. THE LATEST THIS MORNING, ON THEEQUITY MARKET AND THE S&P 500, ITS POSITIVE BY ONE THIRD OF 1%AFTER FORCES LAST WEEK HAD MILD STUFF, DOWN 10% ON THE S&P.A CHANGE FOR EVERY SINGLE DAY LAST WEEK, TWO YEAR AND 10YEAR, MORE THAN 20 BASIS POINTS. LISA:THIS COMES ON THE HEELS OF THE DATA THAT YOU WERE TALKINGABOUT, STRONGER-THAN-EXPECTED INFLATION.WE TALKED ABOUT THE MARGINAL.

WEAKNESS IN THE EQUITY MARKET,ONE OF THE REASONS IT'S ONE OF THE MOST UNDERPLAYED EVENTS OFTHE WEEK IN SAN JOSE, CALIFORNIA, STARTING TODAY WITHA KICK OFF FROM THE CEO SPEAKING AT 4 P.M. EASTERN TIME.DO THEY GIVE A SIGNAL OF HOW MUCH THIS IS GOING TO BEADOPTED IN A WAY THAT HASN'T BEEN PRICED IN?THE BANK OF JAPAN DECISION, THAT WAS A MONUMENTAL MOMENT,IF THEY MOVE AWAY FROM NEGATIVE RATE POLICIES.THIS IS THE LONGEST HOLDING PATTERN HAVE SEEN FROM ACENTRAL BANK EVER.

IT HAS BEEN 17 YEARS.TO PUT IT INTO PERSPECTIVE, WEDNESDAY IS THE FED DECISION.ANOTHER IMPORTANT MOMENT, NOT BECAUSE THEY WILL CHANGEANYTHING BECAUSE IT MIGHT GIVE US ECONOMIC PROJECTION TOCLARIFY WHETHER THEIR THINKING HAS CHANGED, THE MARKETCERTAINLY HAS. THURSDAY WE HAVE THE BANK OFENGLAND, JOBLESS CLAIMS, AND EARNINGS.FEDEX AND NIKE, IT WILL BE PIVOTAL TO GET A SENSE OFWHETHER CONSUMERS ARE PUSHING BACK OR IF THEY ACTUALLY AREN'TAND IF THEY HAVE THE AMMUNITION.

TO KEEP SPENDING AT A ROBUSTPACE. JONATHAN: BIG WEEK AHEAD, BIG WEEK AHEAD.COMING UP, INVESTORS LOOKING TOWARDS WEDNESDAY'S FEDDECISION . WE HAVE A FORMER INTELLIGENCEOFFICIAL ON THE GROWING CRITICISM FROM WASHINGTONTOWARDS NETANYAHU. AND THEN WE HAVE BETTER DATACOMING OUT OF CHINA. TOP STORIES, STOCKS EASINGAHEAD OF A BUSY WEEK ON CENTRAL BANK DECISIONS.WE ARE OVERDUE FOR A BREATHER, OR WILL WE PULL?A RALLY FROM OCTOBER WITH.

RETURNS AND UTILIZING OVER 40%SINCE 1954 BUT THE RALLY BEING FUNDAMENTALLY DRIVEN.I'M PLEASED TO SAY THAT WE CAN KICK OFF TRADING WEEK WITH BENRIGHT NOW. WHAT IS THE BIGGEST EVENT OFTHE WEEK? IS IT NVIDIA OR THE FEDERALRESERVE? >> GOT TO SAY THAT IT IS NVIDIA.NO RESPECT TO JAY POWELL. IT COULD END UP BEING A HUGEYON AND WE COULD WIND UP BEING BACK OR WE STARTED BUT THISRALLY, SINCE OCTOBER WITH BIG TECH, IT'S BEEN ONE LEG IT ANDNVIDIA HAS LED THE CHARGE.

I DON'T THINK WE CAN AFFORD AREBUFF FROM NVIDIA HERE. THE RALLY, BROADENING OUT ABIT, BUT IT'S EARLY DAYS. NVIDIA — JONATHAN:NVIDIA FEELS FUNDAMENTALLY DRIVEN GIVEN THE NUMBERS IT HASBEEN PUTTING UP. WITH BROADENING OUT, HOWFUNDAMENTALLY DRIVEN IS THE ROTATION? ROSA: — BEN: PRETTY FUNDAMENTAL.WE HAVE HAD LOWER S&P FOR TWO WEEKS, EQUAL WEIGHT HITTING THEFIRST OF ALL TIME LAST WEEK. EURO STOCKS OUTPERFORMING S&P.I THINK IT'S HAPPENING.

IT'S HAPPENING BECAUSE EARNINGSEITHER HAVEN'T BEEN AS BAD AS EXPECTED AND THE REST OF THEWORLD, OR THE OUTLOOK IS LOOKING A LITTLE BIT BETTER THECLOSER THAT WE GET TO RATE CUTS. I STILL THINK THAT THOSE CUTSARE COMING. EARNINGS HAVE BEEN OVERDELIVERING. RATE CUTS HAVE BEEN PUSHED BACKFOR THE RIGHT REASON, SO TO SPEAK, WITH GROWTHBETTER-THAN-EXPECTED. LISA:WHAT WOULD TRIPPING UP LOOK LIKE AT THIS CONFERENCE ANDWHAT DO YOU MEAN BY WE CAN'T.

AFFORD THAT? BEN:I CAN SAY IS MUCH AS I LIKE ABOUT HOW THIS RALLY IS JUST,BUT SO FAR IT HAS ALL BEEN ABOUT BIG TECH, BIG TECHDRIVING EARNINGS 60% IN THE FIRST QUARTER.THE S&P, FLAT IF YOU ARE BEING NICE ABOUT THEM.SO, THE MARKET IS VERY FOCUSED ON THAT GROWTH MOMENTUMCONTINUING UNTIL WE BEGIN TO SEE GROWTH FROM EVERYBODY ELSE. SO, EXPECTATIONS ARE CLEARLYQUITE HIGH. EARNINGS EXPECTATIONS,VALUATIONS, WE HAVE CERTAINLY.

SEEN THEM HIGHER, BUT THEY AREAT NORMAL. LISA: WHICH IS THE REASON THAT IFSOMETHING GIVES PAUSE TO INVESTORS AFTER THIS CONFERENCETHERE ARE CONCERNS THAT THERE COULD BE DOWNSIDES.FROM SECURITIES OVER THE WEEKENDS THERE WERE CONCERNSMORE SIGNIFICANTLY ABOUT PROTRACTED DETERIORATION,ESSENTIALLY SAYING THAT OVER THE PAST WEEK WE HAVE SEEN THEMEDIUM BEARISH TURNING BAD BEARISH.SET OF 5% TO 10% PULLBACK IN STOCKS, HE'S THINKING ABOUTSOMETHING FAR WORSE, A 10% OR.

HIGHER PULLBACK WITH YIELDSBREAKING THROUGH AT 4.5%, BUT WHY DON'T YOU SEE THIS AS ACONCERN IF YOU GET MORE SIGNIFICANT SELLOFF IN THE 10YEAR YIELDS? MAYBE THAT'S A GOOD REASON BUTAT A CERTAIN POINT THEY HAVE TO BITE, NO? BEN: NEVER SAY NEVER, BUT I JUSTTHINK THAT THESE TWIN PILLARS ARE STILL IN PLACE AND WE HAVE7 TRILLION IN CASH SITTING ON THE SIDELINES.WE HAVE OUR INVESTOR SENTIMENT INDICATORS, WHICH ARE MAYBE ALITTLE BIT ABOVE AVERAGE, BUT.

IT'S STILL A HALF-FULL GLASS,NOT A FULL GLASS. I STILL THINK THAT WITH THEFUNDAMENTALS RALEIGH IN PLACE, ANY SORT OF PULLBACK WILL BEBOUGHT BY INVESTORS. I STILL THINK THAT IN THE EARLYINNINGS, IF YOUR DEFINITION OF A BULL MARKET IS AN ALL-TIMEHIGH, WE HIT THAT SIX WEEKS AGO. YOUR BULL MARKET AVERAGES FIVEYEARS. I THINK WE ARE RIGHT AT THEBEGINNING. LISA: GIVEN THAT YOU THINK WE ARE ATTHE BEGINNING AND THAT JAY POWELL, NO DISRESPECT, WILL BEA YA WNER, IS THERE ANYTHING HE.

COULD SAY THAT WOULD MAKE YOURECONSIDER WITH THESE EARLY CYCLES? BEN:BE MARKETS ARE BRACE FOR A HAWKISH PIVOT.THREE CUTS TO TWO CUTS. BUT THE MARKET HAS ALREADY COMEFOR WHAT'S EXPECTED. IF THAT'S IT, THE MARKETS LOOKTHROUGH IT. YOU NEED TO SEE SOMETHING MUCHMORE DRAMATIC. YOU NEED TO SEE ALL THE CUTSBEING TAKEN OUT, ALONG WITH MUCH MORE HAWKISH RHETORIC TOREALLY UNSETTLE THE MARKET HERE. JONATHAN:THIS HAS BEEN A SUBJECT OF.

CONVERSATION FOR THE LAST FEWMONTHS, HOW THIS EQUITY MARKET HAS BEEN ABLE TO WITHSTANDREPRICING OF INTEREST RATES, WHICH HAS BEEN PHENOMENAL .YOU HAVE SEEN THAT THROUGH THE TREASURY CURVE IN A MOVE OFMORE THAN 20 BASIS POINTS. THE S&P 500 WAS DOWN BY .1%.THAT'S IMPRESSIVE STUFF. WHAT'S BEHIND THAT? BEN:EARNINGS HAVE OVER DELIVERED, QUITE SIMPLY.THE S&P 500 EARNINGS OF THE LAST QUARTER WERE UP 20.THE EXPECTATIONS ARE BUILDING. ESSENTIALLY, JUST MAKING MONEYIN A DIFFERENT WAY.

FROM EARNINGS WITH LESS OF ITFROM EXPECTATIONS FROM FED CUTS AT — AT POTENTIALLY HIGHERMULTIPLES. TO YOUR POINT, I DON'T HAVE MYHEAD COMPLETELY IN THE SAND. THAT CAN ONLY GO SO FAR.BUT I DO NOT THINK THAT THE MARKET IS IMMUNE TO WHAT THEFED DOES. IT'S A FAIRLY LONG DURATIONMARKET, BUT I THINK IT HAS TO BE SIGNIFICANTLY HIGHER THANWHERE WE ARE RIGHT NOW. JONATHAN: WHAT IS A HIGHER? BEN:450. JONATHAN: THANK YOU, BEN.QUITE A SELLOFF LAST WEEK IN.

THE FACE OF HOTTER THANEXPECTED CPI AND PPI AS WELL. JOIN THE CALL THIS MORNING FROMNVIDIA AND HSBC, BUYING THEIR PRICE TARGET AT 880, WHICH ISBASICALLY WHERE WE WERE. THEY ARE LOOKING FOR 1050 NOWOVER HSBC. LISA: HAVE WE EVER SEEN A SELLINGMOMENT FOREVER — NVIDIA AFTER THOSE ANNOUNCEMENTS?IT SEEMS TO BE THE PLAYBOOK OVER THE PAST YEAR. JONATHAN:I SAID CAREER RISK ASSOCIATED WITH HIS NAME.YOU RIP ANOTHER 50%, THAT COULD BE PROBLEMATIC IF YOU ARE AWALL STREET ANALYST. JONATHAN:.

WHICH IS I THINK THE REASON WECANNOT SEE A HICCUP. PEOPLE SAYING THERE WON'T BE ADOWNSIDE SURPRISE, BUT THERE WILL BE A LOT OF PEOPLE WHO AREOFFSIDES, IT'S CLEAR RISK TO NOT BE OVERWEIGHT. JONATHAN: LET'S GET YOU AN UPDATE ONSTORIES THIS MORNING WITH DANI BURGER. >> RUSSIA WON'T BE STOPPED FROMPURSUING ITS GOALS, ACCORDING TO VLADIMIR PUTIN.HE SWEPT TO VICTORY IN A PREDETERMINED OUTCOME.HE HAD NO CREDIBLE OPPONENT AND.

GETS ANOTHER SIX YEARS ASPRESIDENT. THE BOJ GOVERNOR AND HIS BOARDHAS ONE MORE DAY TO DECIDE IF IT IS TIME FOR THE FIRSTJAPANESE INTEREST RATE HIKE IN 17 YEARS.THE HIKE AT THE END OF THE MEETING IS LIKE — SEEN ASLIKELY AFTER WAGES IN THEIR LARGEST UNION GROUP BLEW OUTLAST WEEK. EVEN WITH THE PAY MOMENT, THEREIS THE OPTION TO WAIT ANOTHER MONTH AS A LOT OF DATA IS DUEAHEAD OF THEIR MEETING. APPLE IS IN TALKS TO BUILD THEGEMINI ARTIFICIAL INTELLIGENCE.

ENGINE INTO THE IPHONE.SOURCES SAY THE COMPANIES ARE IN OPEN NEGOTIATION TO POWERTHE NEW FEATURES COMING TO THE IPHONE SOFTWARE THIS YEAR.FOR YEARS, GOOGLE HAS PAID APPLE BILLIONS TO MAKE THEIRSEARCH ENGINE THE DEFAULT OPTION ON IPHONE IN THE WEBBROWSER AND OTHER DEVICES. JONATHAN: THREE POINTS, THERE.ONE OF THEM, ANTITRUST. APPLE IS CLEARLY BEHIND ON THE AIEFFORT AND IF THIS IS GOING TO COMING TO AN IPHONE NEAR YOU,IS THAT THE UPGRADE CYCLE YOU ARE LOOKING FOR? LISA:HOW MUCH OF THIS IS APPLE.

NEEDING TO GET AHEAD OF SON –SAMSUNG BEFORE THE END OF THIS YEAR?YOUR POINT, THEY ARE LATE AND THAT'S WHAT THIS STORYHIGHLIGHTS. WHAT DOES THIS LOOK LIKE FROM A– JONATHAN: I WONDER, ALSO, ARE THEY BEHINDSAMSUNG AND THEN TRY TO DO IT BETTER?HASN'T THAT ALWAYS BEEN THE STORY? LISA:BUT IF THIS IS THE CASE WITH A PARTNER WITH SOMEONE ELSE, DOESTHAT MEAN THEY THINK THEY CAN'T DO IT BETTER? JONATHAN:MORE ON THAT, A BIT LATER.

UP NEXT, A WIDENING RIFTBETWEEN THE U.S. AND ISRAEL. >> WHAT HE SAID ISINAPPROPRIATE FIND A REPLACEMENT FOR THE LEADERSHIPTHERE. IT'S SOMETHING THAT A BANANAREPUBLIC DOES ON ITS OWN. WE ARE NOT A BANANA REPUBLIC.JONATHAN: GOOD MORNING. JONATHAN:BIG FEDERAL RESERVE MEETING COMING — COMING UP LATER THISWEEK. ANNALEE IS OUT THIS WEEK. WE ARE TOLD THAT SHE MIGHTAPPEAR ON FRIDAY. LISA: WENT SOMEWHERE BEAUTIFUL?JONATHAN:.

TK OFTEN DID THIS, I WOULDGUESS WHERE SHE IS, BUT I'M NOT GOING TO DO THAT.IT WOULD ALWAYS ANNOY ME. LISA: CALLING IT IRRESPONSIBLE?WE ARE NOT DOING THAT. SHE'S AT WORK. JONATHAN:IT'S FOR WORK? LISA: I BELIEVE SO. JONATHAN:IT'S FOR WORK. S&P, POSITIVE ONE THIRD OF 1%WITH A THREE-DAY LOSING STREAK ON THE S&P.THE LONGEST LOSING STREAK SINCE JANUARY, BELIEVE IT OR NOT.THE FIRST LOSING STREAK SINCE OCTOBER.LET'S SIT ON THIS FOR A SECOND.

WEEKLY LOSSES ARE REALLY RARE.WE HAVE HAD THREE SINCE AND OCTOBER AND WE CAME OFF THEBACK OF TWO, SUPER RARE GIVEN THE STRENGTH OF THE RALLY. LISA:AND THEY HAVE BEEN MINUSCULE, WE ARE TALKING ABOUT REALLYSMALL DRAWDOWNS. IS IT VALUABLE? IT IS. JONATHAN:A BIG PUSH HIGHER, STARTING THE WEEK AT 4:30.A WIDENING RIFT BETWEEN THE U.S. AND ISRAEL THIS MORNING. >> WHAT HE SAID IS TOTALLYINAPPROPRIATE. IT'S INAPPROPRIATE FOR — TO GOTO A SISTER DEMOCRACY TO TRY TO.

REPLACE THE ELECTED LEADERSHIP,THERE. THAT SOMETHING THAT THE ISRAELIPUBLIC DOES ON ITS OWN. WE ARE NOT A BANANA REPUBLIC.THE MAJORITY OF ISRAELIS SUPPORT THESE POLICIES. IF SENATOR SCHUMER OPPOSES THEPOLICIES, HE DOESN'T OPPOSE ME, HE OPPOSES THE PEOPLE OF ISRAEL.JONATHAN: REJECTING THE CHUCK SCHUMERCALL FOR A NEW ELECTION REMOVING NETANYAHU FROM POWER.THEY ARE CONTINUING THEIR PLANNED OPERATION IN THESOUTHERN CITY OF RAFAH WITH.

TENSIONS GROWING OVER THENUMBER OF CIVILIAN CASUALTIES AND THE HUMANITARIAN CRISIS ONHAND. FOR MORE, FORMER SENIOR ADVISORTO THE TRANSNATIONAL PROJECT, NORMAN, JOINS US OR MORE.FANTASTIC TO CATCH UP WITH YOU. I WANT TO GET TO THIS RIFTBETWEEN THE U.S. AND ISRAEL. WILL THIS INFLUENCE DEFICIENT– DECISION-MAKING ON THE GROUND? NORMAN:IT'S VERY UNLIKELY THAT THIS WILL HAVE ANY IMPACT ON ISRAELIDECISION-MAKING. PRIME MINISTER NETANYAHU ISCORRECT IN THAT THE MAJORITY OF.

ISRAELIS STRONGLY SUPPORT ACEASE FIRE AND PURSUE A WAR IN THE DEFEAT OF HAMAS.IN THIS REGARD IT DOESN'T REALLY CHANGE ANYTHING THATHAPPENS ON THE GROUND. WE ALSO NOTED THAT NETANYAHUAND HIS LACK OF POPULARITY IN WASHINGTON IS NOT A SURPRISEAND IT EXTENDS BACK TO THE OBAMA ADMINISTRATION AND MANYOF THE OFFICIALS IN THE CURRENT ADMINISTRATION CAME FROM THATADMINISTRATION, SO THERE ARE LONG-STANDING ROOTS OFDISAGREEMENT BETWEEN THE TWO SIDES. LISA:.

IF THE U.S.CANNOT ACCOMPLISH ANYTHING ON THE FUNDAMENTAL SIDE, WHY MAKETHESE ANNOUNCEMENTS? ARE THEY WINNING POINTS WITHTHE DEMOCRATIC BASE QUESTION MARK NORMAN:NORMALLY THESE — BASE? NORMAN: THOSE CONVERSATIONS ANDDIPLOMATIC CHANNELS CAN BE FRANK AND PRODUCTIVE.BUT THE GROWING NUMBER OF STATEMENTS AGAINST NETANYAHU,WHICH YOU HAVE SEEN SENATORS SCHUMER AND PELOSI MAKE, ITREFLECTS THE EFFORT BY DEMOCRATS TO DEAL WITH THEPROGRESSIVE CRITICISM OF THE.

WAR IN ISRAEL AND U.S.SUPPORT FOR THAT WAR. LISA: WHICH IS THE REASON WHY YOU AREPERHAPS HEARING THINGS YOU WOULDN'T NORMALLY HEAR.QATAR, EGYPT, INCREASING PRESSURE ON HAMAS TO COME TOTHE TABLE WITH A CEASE-FIRE AGREEMENT.CAN YOU GIVE US A SENSE OF THE NATURE OF THE PRESSURE, WHAT ITLOOKS LIKE AND HOW REALISTIC IT WILL BE IN GETTING RESULTS?NORMAN: TO BEGIN WITH, THERE IS GROWINGPRESSURE ON QATAR ITSELF TO OBTAIN THE RELEASE OF HOSTAGESAND OBTAIN A CEASE FIRE.

THAT HAS NOT HAPPENED IN RECENTWEEKS. THERE ARE REPORTS THAT QATARHAS TOLD THE HAMAS REPRESENTATIVES THAT THEY MIGHTLEAVE — BE FORCED TO LEAVE QATAR, WHERE THEIR BANKACCOUNTS COULD BE FOR THOSE IN. THE DEAL THAT HAMAS HASSUBSEQUENTLY PUT ON THE TABLE, HOWEVER, HAS TWO PARTS TO IT.THE FIRST PART IS I THINK SOMETHING ISRAEL WOULD ACCEPT.RELEASED HOSTAGES FOR PALESTINIAN PRISONERS, ASIX-WEEK CEASE FIRE WITH INCREASED AID.THE SECOND PART, HOWEVER, IS.

IMPORTANT, WITH HAMAS CALLINGFOR THE COMPLETE WITHDRAWAL OF ISRAELI FORCES FROM GAZA,ESSENTIALLY ISRAEL ADMITTING DEFEAT IN THE CONFLICT.JONATHAN: AS YOU KNOW, JOE BIDEN JUST SETA REDLINE, CROSSING INTO RAFAH. WHAT ARE THE CONSEQUENCES IFNETANYAHU DECIDES TO CROSSES — CROSSETT? NORMAN:IT WOULD BE HOW THE ISRAELI OPTION TAKES PLACE. REPORTS ARE ABOUT HOW THEYWOULD APPROACH IT AND I DON'T THINK YOU WOULD SEE A MASSINFANTRY TANK MOVEMENT INTO THE.

CITY BUT YOU WILL SEE ROBUSTOPERATIONS TARGETED AND SHAPED BY INTELLIGENCE TO TAKE OUTHIGH-VALUE TARGETS IN HAMAS LEADERSHIP, RESPONDING TO THEIRCOUNTERATTACKS TO DESTROY THE TWO FRONT — FINAL BRIGADESTHAT THEY RETAIN. IT IS ALMOST IMPOSSIBLE TOCONCEIVE OF HOW TO REMOVE ONE POINT 5 MILLION PEOPLE,IMPLYING THAT THE BEST THING THE ISRAELIS CAN DO IS MOVE ASMALL PORTION OF THE POPULATION TO WORK VERY CAREFULLY.THE DOWNSIDE IS THAT IMPLIES A LONGER CAMPAIGN, PERHAPS MORECIVILIAN CASUALTIES IN SOME.

WAYS , SLOWER FOR ISRAEL TODEFEAT THE OPERATIVES ON THE GROUND.THIS WILL BE A DEVELOPING ISSUE IN THE U.S.WILL CONTINUE TO OPPOSE A MASSIVE ATTACK IN THE CITY.JONATHAN: YOU HAVE TOUCHED ON IT THEREAND IT IS IMPORTANT TO GO THROUGH IT IN MORE DETAIL, HOWDIFFERENT THIS CONFLICT WILL BE AT THIS STAGE VERSUS PREVIOUSMONTHS. HOW DIFFICULT AND DIFFERENTWOULD IT BE? NORMAN:EXTREMELY DIFFICULT, BUT ALSO.

NOT A SURPRISE.THIS IS A SMALL GEOGRAPHY. THE POPULATION HAS BEEN MOVINGFROM NORTH TO SOUTH. THERE IS NOWHERE ELSE TO REALLYMOVE THE POPULATION. YOU COULD SEND A SMALL PORTIONTO THE NORTHEAST NEXT TO THE MEDITERRANEAN BORDER, PERHAPS ASMALL PORTION TO THE SOUTHWEST TO A CLEARED AREA.UNLESS YOU ARE ABLE TO GET THESE INDIVIDUALS BACK INTONORTH GAZA, WHERE THERE IS NO HOUSING, YOU REALLY HAVENOWHERE ELSE TO MOVE THEM UNLESS EGYPT AGREES TO TAKETENS OF THOUSANDS OF.

PALESTINIANS, WHICH IT HASREFUSED TO DO, AND IF YOU ARE THE ISRAELI MILITARY COMMANDERAPPROACHING THIS OPERATIONAL CHALLENGE IS VERY DIFFICULT. LISA: I HAVE TO SAY, WE WEREEXPECTING THIS CONFLICT TO BE FURTHER ALONG, PERHAPS WITH ACEASE FIRE BY NOW. IS THERE A RISK OF ESCALATIONOR IS THIS A CONTAINED MOMENT WITH A LOT OF PAIN ANDSUFFERING THAT JUST CONTINUES? NORMAN:FOR SOME TIME, I HAVE FELT THAT THIS CONFLICT COULD GO ON FORWEEKS AND MONTHS.

MUCH DEPENDS UPON THE ABILITIESOF ISRAELIS TO KILL SENIOR LEADERSHIP AT HAMAS, DESTROYINGTHOSE FINAL MILITARY UNITS. SO, THAT IS A BATTLEFIELD PACEWITH LUMPS AND INTELLIGENCE ISSUES GOING WITH IT.IN TERMS OF CONTINUED CONFLICT, IT IS TRUE THAT LEBANONCONTINUES TO BE AN AREA OF SOME RISK. IRAN HAS BECOME MORE QUIETSINCE THE UNITED STATES TOOK OUT TOP HAS BALA LEADERS.BUT THE RED SEA PROBLEM CONTINUES TO GO ON. JONATHAN: NORMAN, THANK YOU, SIR, FORCATCHING UP WITH US THIS.

MORNING. FORMER SENIOR U.S.INTELLIGENCE OFFICIAL ON THE LATEST COMMENTS FROM BENJAMINNETANYAHU OVER THE WEEKEND, SAYING THAT IT MAY TAKE A FEWWEEKS BUT IT WILL HAPPEN. WE WILL SEE. WATCH THIS SPACE.IT'S A REDLINE FOR THE PRESIDENT OF THE UNITED STATESAND WE ARE NOT SURE WHAT HAPPENS IF HE CROSSES IT.UP NEXT, BETTER-THAN-EXPECTED DATA OUT OF CHINA WITH A LOOKAHEAD TO A BIG BOJ DECISION. LIVE FROM NEW YORK, THIS ISBLOOMBERG. JONATHAN:STOCKS ON THE S&P 500 DOING OK,.

UP BY ONE THIRD OF 1%.THE NASDAQ UP BY 7/10 OF 1%. A DEVELOPERS CONFERENCE KICKINGOFF THIS WEEK. ALREADY THIS MORNING, ASKINGWHAT IS THE BIGGER ISSUE THIS WEEK, HE SAID JENSEN. IT IS ALLABOUT NVIDIA FOR HIM. LISA: THERE IS THIS QUESTION OF HOWMUCH THAT COULD POTENTIALLY CAUSE IN DRAWDOWN OF EQUITYMARKETS. WHAT COULD HE SAY OTHER THAN WEHAVE TONS OF NEW PRODUCTS? JONATHAN:TWO WEEKS OF LOSSES, NOT MUCH OF A DRAWDOWN.CHECK OUT THE TWO YEAR AND THE.

10 YEAR. 430 AFTER CLIMBING EVERY SINGLEDAY LAST WEEK, MONDAY THROUGH FRIDAY.INTO THE FED A LITTLE BIT LATER. DOWN A COUPLE OF BASIS POINTSBUT STARTING THE WEEK, HIGHS ACROSS THE CURVE. LISA:IT'S NOT JUST BASIC NOMINAL RATES. IT IS REAL RATES.YOU HAVE SEEN THEM RISE. EQUITY MARKETS ARE FALLINGVICTIM TO REAL YIELDS. NOT BY THIS IDEA OF BREAKEVEN,INFLATION, ALSO EXTRA PREMIUM BUILT IN BECAUSE OF THEUNCERTAINTY FOR A HOST OF.

REASONS.ARE WE CROSSING THE RUBICON WITH RESPECT TO REAL YIELDS TOTHE POINT OF WHAT INVESTORS WILL DEMAND? JONATHAN:HAVE WE ALREADY FALLEN VICTIM GIVEN LAST WEEK WE ARE DOWN0.13%. 20 BASIS POINT MOVE ON YIELDS,PRETTY IMPRESSIVE. LISA: IF YOU LOOK UNDER THE HOOD ITIS FASCINATING. REAL ESTATE, UTILITIES, SOME OFTHE MORE INTEREST RATE SENSITIVE AREAS, THEY DIDREALLY BADLY. ENERGY CRUSHED IT. WE SAW A HUGE GAME.HOW MUCH IS BEING DRIVEN BY.

GOODS RELATED INFLATION THAT ISNECESSARILY POSITIVE? IT IS AN INTERESTING DYNAMIC.JONATHAN: REALLY INTERESTING DEVELOPMENTIN THE PAST WEEK. I WANT TO TURN TOFOREIGN-EXCHANGE. JUST BELOW 150 AFTER THE BOJDECISION. I LOVE THIS, HOPING THEYUNDERSTAND IT IS A HISTORIC MOMENT.WE ARE TALKING ABOUT THE FIRST RATE HIKES SINCE 2007.THE YEN HAS HARDLY MOVED. LISA: THEY ARE RIGHT TO RESPONDWITHOUT ANY HISTRIONICS.

THE BANK OF JAPAN LIKES TO MOVELIKE A SNAIL. YOU HAVE POINTED OUT THEY HAVEIN THE PAST SURPRISED. WE TALKED ABOUT THIS LAST WEEK.I THOUGHT ABOUT IT MORE OVER THE WEEKEND AND THE BIGGERSURPRISE TOMORROW WILL BE IF THEY DON'T HIKE RATES.THAT COULD POTENTIALLY SEND THE YEN TUMBLING.THAT IS ONE RISK CASE THAT ISN'T BEING PAINTED. JONATHAN:IF THEY DO HIKE INTEREST RATES, THAT MIGHT BE IT.IT IS NOT THE START OF A CYCLE. MAYBE THAT'S WHY THE DOLLAR-YENIS STUCK AROUND 1.50. LISA:.

SHOCKING CONSIDERING THEREMIGHT BE THE FIRST NORMALIZING MOVE IN 17 YEARS.IT IS SHOCKING TO THINK ABOUT HOW STAGNANT THE ECONOMY HASBEEN. JONATHAN: THEY HAVE TRIED VERY HARD. A HISTORIC MOMENT.UNDER SURVEILLANCE THIS MORNING, TOUGH STORY.THE BOJ, FED, BANK OF ENGLAND. RAKING — RAISING THEPOSSIBILITY. THE FED EXPECTED TO KEEP RATESON HOLD WEDNESDAY. AN UPDATED SUMMARY OF ECONOMICOBJECTIONS.

ON THURSDAY, BANK OF ENGLANDEXPECTED TO HOLD, LEAVING THE DOOR OPEN FOR CUTS IN THECOMING MONTHS. KIND OF A WAIT AND SEE. LISA: WHAT THEIR LONGER-TERMASSUMPTION THERE'S A STORY IN THE “WALL STREET JOURNAL”TALKING ABOUT HOW IT'S SO RARE FOR A CENTRAL BANK, THE FEDERALRESERVE NOT TO GIVE SOME SORT OF SENSE OF WHAT THEIRFRAMEWORK IS FOR THINKING ABOUT THE WORLD.WE DON'T KNOW WHAT THE POST-PANDEMIC EXPECTATIONS ARE.IF WE GET SOME INKLING, IF THEY.

GIVE A SENSE OF THAT, THATCOULD RESET PEOPLE'S ASSUMPTION OF WHAT LONGER RISK PREMIUMSSHOULD LOOK LIKE IN A NEW WAY. JONATHAN:I THINK IT'S IMPORTANT . MOHAMMED PROVIDED LEADERSHIP ONTHIS. BOTTOM LINE, THEY DO NOT KNOW.THEY SHOULD BE PROVIDING LEADERSHIP AND THEY ARE NOT.LISA: HOW DO YOU PROVIDE LEADERSHIPON SOMETHING YOU DON'T KNOW? DO YOU FAKE IT?THEY ARE STUCK BETWEEN A ROCK AND A HARD PLACE.IMPORTANT TO HIGHLIGHT HOW.

UNUSUAL IT IS TO NOT HAVE ANYTYPE OF ROADMAP AND EVERYBODY BASICALLY DARTS ON A DARTBOARDWITH A BLINDFOLD ON UNDERSTANDING WHAT THE ECONOMYREALLY LOOKS LIKE. JONATHAN: CLAUDIA IS GOING TO HAVE THEANSWERS, NO DOUBT ABOUT THAT. THE WHITE HOUSE SHOWING SUPPORTFOR CONGRESS THAT WOULD FORCE THE SALE OF TIKTOK OR BAM IT –BAN IT. THE ADMINISTRATION WOULD LIKETO SEE THE BUYER FROM THE APP. THE TIMELINE BECOMINGINCREASINGLY UNCERTAIN AFTER FACING MORE QUESTIONS IN THESENATE.

IT WAS PASSED LAST WEEK WITHBIPARTISAN SUPPORT. THEY ARE TRYING TO PUSH THATTHIS IS ABOUT A SALE AND NOT A BAN. TIKTOK PUSHES THAT THIS IS ABOUT A BAN AND NOT A SALE.THAT IS THE PROBLEM FOR THE ADMINISTRATION. LISA:IT WILL BE A REAL PROBLEM BASED ON MY RESEARCH.IT WAS A HEATED DEBATE. JONATHAN: WHERE DID IT LAND?LISA: NOT GOOD. IT WASN'T GREAT. FREE-SPEECH QUESTIONS, THIS ISHOW PEOPLE MAKE MONEY, COMMUNICATE WITH FRIENDS,ENGAGE WITH THE WORLD.

I'M STRUCK BY THE FACT THAT WEARE NOT WORKING WITH DATA FROM THE GOVERNMENT ABOUT THENATIONAL SECURITY ISSUES. THESE ARE THE PRECISE ISSUES WENEED TO SOLVE. IT IS NATIONAL SECURITYCONCERNS. WHAT I WOULD LIKE TO SEE ISMORE SPECIFICS PUT OUT THERE AND SPECIFIC SOLUTIONS TOREMEDY THEM. HOW DO WE KNOW WE ARE NOTMCCARTHY ERA? OR IN ANOTHER WITCHHUNT TOFIGURE OUT WHO IS GOOD — WHO IS GOOD, WHO IS BAD? JONATHAN:THIS IS GOING TO TAKE A LONG.

TIME TO WORK OUT.MUCH LONGER THAN WE THOUGHT A COUPLE WEEKS AGO.NEW DATA BEATING EXPECTATIONS OUT OF CHINA.INDUSTRIAL OUTPUT RISING 7% YEAR-OVER-YEAR.THE DATA GIVING A LIFT TO CHINESE STOCKS.THE STIMULUS HAS CONCERNS OVER CONSUMER CONFIDENCE.HOW IMPRESSED WHERE YOU BUY THIS DATA OUT OF CHINAOVERNIGHT? DAMON: NOT VERY. THE RETAIL SALES FIGURE WASACTUALLY AMISS. IT IS KIND OF A BIG DEAL INCHINA.

THE CHINESE HAVE TO BE MOREFOCUSED ON THE BOJ TOMORROW. THEY ARE BOTH FUNDINGCURRENCIES THAT ARE ONE AND THE SAME. THE BAR FOR THE BOJ TO OUT HOCKTHIS MARKET IS VERY HIGH. THE BALANCE SHEET AND THEY WILLHAVE TO LIFT RATES FOR THEM TO REALLY APPRECIATE THIS MARKET.IF IT DOESN'T, LOOK FOR CNY TO DEPRECIATE. CHRIS AND AMY TOLD ME, I WASTALKING ABOUT THE BOJ TODAY. JONATHAN:WE ARE GOING TO CONTINUE THE.

TREND. DAMIAN: WE ARE STILL WAITING FOR MOREFROM THE CHINESE GOVERNMENT, MORE STIMULUS, SOMETHING ON THEPROPERTY FRONT. PROPERTY INVESTMENT NUMBERSWERE NOT GOOD. IT IS THE SAME OLD STORY.THE ONLY THING THAT WILL MOVE THIS MARKET FROM WHERE IT'SBEEN TOO SOMETHING ON THE OTHERS WOULD BE A REALLYHAWKISH BOJ. JONATHAN: LET'S STICK WITH THE BOJ, WHATHAPPENS IF THEY DON'T HIKE TOMORROW MORNING? DAMIAN:I'M NOT CONVINCED THEY ARE.

GOING TO HIKE EVEN THOUGH THEMARKET HAS 80% PROBABILITY ON THAT.THEY MIGHT DO SOMETHING ON THE FOREIGN APPROACH IS — PURCHASEPROGRAM. IT IS BUY THE RUMOR, SELL THENEWS IN JAPAN. IT HAS BEEN THIS WAY FOR ASLONG AS I COULD REMEMBER. THERE WAS A LOT OF TALK HEADINGINTO THIS MEETING, THE DATA WAS PRETTY STRONG.THEY HAVE REALLY TELEGRAPHED WHAT THEY WANT TO DO.AGAIN, THE MARKET IS DESENSITIZED.

IT IS BY THE RUMOR, SELL THENEWS. THE JAPANESE YEN HAS APPRECIATED IN THE WEEKSFOLLOWING THE BOJ MEETING. I EXPECT MORE OF THE SAME INTHE MARKET DOES AS WELL. LISA: YOU DON'T LIKE TALKING ABOUTCHINA AND I FIND THIS REALLY INTERESTING.CHINA WAS A BIG PART OF THE INVESTING THESIS FOR SO LONG.IS IT BECAUSE THEY ARE NOT INTERESTED OR IT ALL HINGES ONCENTRAL PLANNING AND HOW MUCH STIMULUS THEY PUT OUT THERE?DAMIAN: TWO THINGS, THE DATA AND THELACK OF CONFIDENCE IN THE DATA.

THAT IS FIRST AND FOREMOST. THEDATA POINTS ARE SUBJECT. WE ARE COMING OUT OF CHINA WITHMEANINGFUL DOLLAR AMOUNTS. IT HAS BEEN THIS LACK OFTRANSPARENCY FROM OWNERSHIP AND INVESTMENT PERSPECTIVE.IT IS DIFFICULT TO MAKE THE CASE. THE ATTENTION HAS NOT BEENTHERE. OTHER CENTRAL BANKS, OTHERMARKETS AND COMMODITIES ARE A GREAT WAY TO PLAY THE STORY.IF YOU LOOK AT INVENTORIES, THE PMI DATA THIS WEEK IS REALLYIMPORTANT FOR CURRENCIES. WE ARE SEEING THE GLOBALMANUFACTURING CYCLE EXPAND.

BEYOND THE U.S.FOR ME, YOU COULD PLAY THE CHINA STORY THROUGHCOMMODITIES, COPPER WAS UP 5% LAST WEEK, THOSE ARE BIGNUMBERS. LISA: WE DID SEE PERFORMANCE WHEN HECAME TO INDUSTRIAL OUTPUT BECAUSE OF YOU COULD — YOUCOULD RAISE QUESTIONS ABOUT THAT. ARE YOU SUGGESTING SOME OFTHESE OTHER DEVELOPING MARKETS HAVE JUST AS MUCH OF AN IMPACTON THINGS LIKE THE COMMODITY MARKETS BECAUSE THEY ARE COMINGA BIGGER PROPORTION OF THE OVERALL ECONOMY?.

IT IS NOT NECESSARILY THEBEHEMOTH IT ONCE WAS IN TERMS OF DRAFTING TRENDS IN YOURWORLD. DAMIAN: IT WAS CORE GOODS THAT ROSE,NOT SO MUCH CORE SERVICES. LET'S FAST-FORWARD TO THIS WEEK.LOOK AT PRISCILLA, LOOK AT COLUMBIA.THEY ARE GOING TO DO THAT. THIS TELLS YOU THAT DESPITE THEFACT THAT YOU SEE THINGS MIGHT BE A LITTLE BIT ROSIER INCHINA, INFLATION IS STILL REAL. IT IS GIVING BANKS THE ABILITYTO CUT RATES THAT MUCH MORE AGGRESSIVELY.THEY HAVE MUCH MORE SCOPE TO.

CUT RATES.THAT IS THE ENVIRONMENT WE LIVE IN. IF YOU ARE LOOKING AT DIFFERENTIALS AND YOU LOOK ATCHINA, THAT IS NOT CHANGING. IT IS KIND OF HARD TO –JONATHAN: DID YOU WATCH THE GOLF YESTERDAY? DAMIAN: OF COURSE.JONATHAN: WASN'T IT HEARTBREAKING? DAMIAN:GOT CHOKED UP TALKING ABOUT HIS MOTHER, TRYING TO CHEER THIS IN.JONATHAN: THE INTERACTION WAS UNBELIEVABLE. THEY REALLY WERE. SCHAUFFLE WAS THERE TO THE VERYEND. LISA:.

HE HAS BEEN TRYING ALL DAY TOGET US SOMEONE. JONATHAN: SCOTTIE SHEFFLER AT THE MOMENTIS JUST RIDICULOUS. BOJ, CHINA, I ALWAYS KNEW WEWOULD TALK ABOUT THE GOLF. LET'S GET YOU UP TO SPEED ONSTORIES ELSEWHERE. LET'S GET YOU BLOOMBERG BRIEF.DANI: ANTONY BLINKEN WARNS OF FALSEINFLATION AHEAD OF ELECTIONS WORLDWIDE. ANTONY BLINKEN WARNEDAUTHORITARIAN GOVERNMENTS WILL MEDDLE IN ELECTIONS AND THE U.S.WOULD KEEP PRESSING TO DISRUPT INFORMATION EFFORTS FROM THELIKES OF CHINA AND RUSSIA.

BIG ADVANCEMENTS IN GENERATIVEAI ARE FUELING GROWING CONCERNS OVER FOR CONTENT INFLUENCINGVOTERS. PRESIDENT BIDEN IS PREPARING TOELECT THE TOUGHEST LIVER — EVER POLLUTION REQUIREMENTS ONAMERICAN CARS. IT IS SEEN AS KEY TO HELP THEU.S. FULFILL ITS COMMITMENTS TO THEPARIS CLIMATE AGREEMENT. THE MOVE POST A DELICATEPOLITICAL ACT FOR BIDEN, WHO IS TRYING TO COURT VOTERS IN SWINGSTATES OF MICHIGAN INCLUDING AUTOWORKERS WHO MIGHT BE UNEASYABOUT THE TRANSITION.

THE MARCH MADNESS ARE SET. MILLIONS OF FANS SET TOCORRECTLY TRY TO PREDICT 67 COLLEGE BASKETBALL GAMES.DEFENDING CHAMPION CONNECTICUT IS ONE OF THE TOP SEEDSALONGSIDE PURDUE, HOUSTON, NORTH CAROLINA.NO FAN HAS EVER COMPLETED A BRACKET PERFECTLY WITH THE NCAASAYING THE ODDS OF DOING SO EQUATE TO ABOUT 129 QUINTILLION– 1-9 QUINTILLION. JONATHAN: I HAVE TRIED, DREADFUL. LISA:THAT'S THE REASON PEOPLE DO IT, ISN'T IT TOTAL LUCK?THERE'S NO SKILL. JONATHAN:.

YOU KNOW HOW FOCUSED STUDENTSARE THE DAY AFTER THE GAME IN FRONT OF THEM. LISA:WHEN I HAVE TRIED IT HAS BEEN A FAILURE. TOJONATHAN: THIS IS WHAT DAMIEN WANTED TOTALK ABOUT EARLIER. DAMIAN: IT'S GOING TO BE REALLY TOUGH.THE NUMBER ONE SEEDS DIDN'T WIN THEIR CONFERENCE TOURNAMENT.JONATHAN: A BIG WEEK FOR CENTRAL BANKS. >> I DON'T THINK THE FED WANTTO BE CUTTING TOO SOON OR STAYING AT THE HIGH LEVELS OFWHERE WE ARE COMPARED TO WHERE.

WE WERE BEFORE. JONATHAN:THAT CONVERSATION UP NEXT. THIS IS BLOOMBERG. ♪ JONATHAN:STOCKS ON THE S&P 500 POSITIVE BY ZERO POINT 4%.LIFT IN THE YIELDS. THE EURO, AT ABOUT 1.09.THE DOLLAR-YEN IS ON A FIVE DAY WINNING STREAK. YOU'D BE EXPECTING STRENGTH.WE HAVE BEEN GETTING ANYTHING BUT. LISA:THERE'S A QUESTION OF IF THEY DO NORMALIZE FOR THE FIRST TIMEIN 17 YEARS, THEN WHAT?.

WHAT IS THAT MATTER IF THEYDON'T MOVE AWAY FROM ZERO? THERE ARE SIGNS THE ECONOMY ISSTABILIZING. A LOT OF QUESTIONS HERE.JONATHAN: THE LONGEST LOSING STREAK OFTHE YEAR SO FAR. UNDER SURVEILLANCE THISMORNING, A BIG WEEK FOR CENTRAL BANKS. >> I DON'T THINK THEY WANT ALEGACY OF CUTTING TOO SOON OR STAYING AT THE HIGH LEVELS OFWHERE WE ARE OR WHERE WE WERE BEFORE OFFERING TOO MUCH.WE CONTINUE TO THINK IT IS THE.

SECOND HALF OF THE YEAR WHEREWE SEE THE RATE CUTS HAPPENING. JONATHAN:TWO DAYS AWAY FROM THE FED RATE DECISION. WRITING, SHOULD INFLATION BELEVELED OFF AT 4%? THE FED IS LIKELY TO EXTEND ITSPOSITION ON THE SIDELINE. SHOULD MOMENTUM SHIFT TO THEUPSIDE, THE FED MAY BE FORCED TO REENGAGE TO ELEVATED PRICEPRESSURES. LINDSAY, THEY WANTED TO GAINCONFIDENCE, HAS AGAIN CONFIDENCE, LOST CONFIDENCE ORRETAINED CONFIDENCE SINCE THEIR.

LAST MEETING? LINDSEY: RIGHT NOW, THE FED IS AT THERISK OF LOSING CONFIDENCE. WE WERE HEADED BACK TO 2%.THEY OPEN THE DOOR FOR THE CONVERSATION OF RATE REDUCTIONTOO SOON. WE HAVE SEEN THE INFLATION DATAIS EVEN AT BEST. PRICE PRESSURES GAINING MOMENTUM ATTHE START OF THE YEAR. THIS HAS NOT ONLY POTENTIALLYSHELVED THE EXPECTATION FOR NEAR-TERM CUT.SHOULD WE SEE INFLATION REVERSE COURSE AND MOVE BACK ABOVE THISTREND OF 4%, THEY MAY BE FORCED.

TO REENGAGE ADDITIONAL RATEHIKES. THEY HAVE TURNED THE FOCUS,SHIFTED THE FOCUS TO AN EVENTUAL RATE CUT. LISA:WHERE IS THE THRESHOLD, THE BAR FOR THEM TO ACTUALLY REENGAGEWITH THE IDEA OF RATE HIKES AT A TIME WHEN PEOPLE THINK THEYWILL KEEP RATES WHERE THEY ARE? LINDEY:TO BE FAIR, I THINK THE BAR IS PRETTY HIGH FOR THAT.WE WOULD NOT NECESSARILY NEED TO SEE INFLATION TO YOUR OUT. WE WOULD HAVE TO SEE AMEANINGFUL RETREAT IN THAT.

DOWNWARD PATHWAY.WE WOULD HAVE TO SEE THREE OR FOUR MONTHS OF ACCELERATION FORTHE FED TO REENGAGE IN RATE HIKES. BARRING THAT SCENARIO, INFLATION FAILING TO REENGAGEIN THAT DOWNWARD TREND. FORCING THEM TO THE SIDELINESFOR MUCH LONGER THAN THE MARKET IS ANTICIPATED. LISA: DO THEY START TALKING ABOUT AHIGHER NEUTRAL RATE WITH THE 3, 3 .5 RANGE? MAYBE EVEN 4, 4 .5%.WHERE DO YOU THINK THEY STAND.

ON THIS?WHAT DO YOU THINK IS THE CORRECT OUTLOOK FOR THEM TOPROJECT? LINDEY:WHERE THEY ANTICIPATE RATES TO FALL INTO A NEUTRAL LEVEL.I THINK THE FED HAS BEEN VERY CLEAR WITH WHEN THEY BEGIN TOENGAGE IN RATE REDUCTIONS, IT'S GOING TO BE A SLOW AND TAPEREDPACE. THE ADDITIONAL SUPPORT OR STIMULUS AS WE MOVE INTO EASYPOLICY RANGE. I DO THINK THE MARKET IS UNDERAPPRECIATING THE FED WILLINGNESS TO NOT ONLY DELAYTHAT FIRST RATE CUT.

JONATHAN: CAN WE INTERROGATE THECONSENSUS BELIEF THAT JUNE IS THE MONTH, WHAT BACKS THAT UPAND WHAT DO YOU SAY TO PEOPLE SAYING THE SAME THING OVER ANDOVER AGAIN? LINDEY: IF WE LOOK AT WHAT INVESTORSHAVE BEEN EXPECTING, THEY HAVE BEEN CALLING FOR AN END TO RATEHIKES AND PRICING IN RATE REDUCTIONS THAT HAVE YET TOMATERIALIZE. I APPRECIATE THE NOTION THATMARCH IS OFF THE TABLE. PUSHING OUT TO MAY AND JUNE.IT IS STARTING TO ABSORB SOME OF THIS MORE PATIENT MESSAGEFROM THE FED.

I DO THINK THIS IS OVERLYOPTIMISTIC IN TERMS OF EXPECTING THE FED TO INITIATETHIS FIRST ROUND OF RATE REDUCTION. TWO RATE REDUCTIONS IN THESECOND HALF OF THE YEAR SEPARATED BY A QUARTERLY BASISAS OPPOSED TO A MEETING BY MEETING BASIS. JONATHAN:YOU SAID LOOK OUT FOR RETAIL SALES.THEY HAVE BEEN WEEK FOR TWO STRAIGHT MONTHS. LINDEY:I DON'T NECESSARILY AGREE WITH THE ASSESSMENT THAT THEY HAVEBEEN WEEK.

LARGELY REFLECTING ONE-OFFVARIABLES. FEBRUARY DID FALL SHORT OFEXPECTATIONS. IT WAS A WELCOMED REBOUND.THIS STILL TELLS THE STORY LINE THE CONSUMER IS RESILIENT WITHA WELCOMED AMOUNT OF COOLING. WE ARE NOT SEEING HEATINGDEMAND ON THE CONSUMER SIDE. THIS IS A WELCOME STEP FOR THEFED TRYING TO TAME INFLATION ON THE SUPPLY SIDE AND ON THEDEMAND SIDE AS WELL. SHOULD WE SEE VERY ROBUSTNUMBERS ON THE CONSUMER SIDE, IT WOULD BE MORE CLEAR THE FEDSTOPPED SHORT.

THIS COOLING IS STILL POSITIVE.IT IS ACTUALLY THE MOST POSITIVE THAT THE FED COULDANTICIPATE. JONATHAN: HE WAS ON THE PROGRAM LAST WEEKAND HAD A SIMILAR TONE TO YOU. HE ACKNOWLEDGED ONE THING, THISIS A FED RESERVE THAT WANTS TO CUT INTEREST RATES.WILL THEY MOVE THE GOALPOSTS AS THEY HAVE DONE A FEW TIMES?SUPER COURT LOOKS HOT. HEARING MORE ABOUT THE PROGRESSTHEY HAVE MADE YEAR-OVER-YEAR, WOULD YOU EXPECT TO SEE THATAND WHAT WOULD YOU TAKE FROM THAT? LINDEY:THAT WILL BE A VERY DOVISH TONE.

IF WE DO SEE THE FEDERALRESERVE CHAIRMAN FOCUS ON SOME OF THESE NON-KEY MEASURES OFINFLATION THAT PREVIOUSLY HAD BEEN TOP OF MIND.THE IMPORTANT THING TOO IS ONCE THE FED INITIATES THAT FIRSTREDUCTION, THAT DOESN'T MEAN THEY CONTINUE ON THAT PATHWAY.WE COULD SEE THE FED CAPITULATE TO MARKET REDUCTIONS IN THESECOND HALF OF THE YEAR FOLLOWED BY AN EXTENDED PAUSE.THAT IS VERY MUCH AN OPTION. THAT WOULD ALLOW THE FED TOWALK THAT DELICATE LINE TO FULFILL THAT EXPECTATION OFRATE REDUCTION BUT NOT GETTING.

TOO FAR AHEAD OF ITSELF.JONATHAN: THANKS FOR JOINING US THISMORNING. ALMOST ECHOING WHAT WE HEARDFROM RAPHAEL BOSTIC FROM THE ATLANTA FED.WE COULD GO JUST ONCE AND THEN SEE.BASED ON THE REVISIONS WE HAVE SEEN ON WALL STREET ECONOMIST,FEELS LIKE THAT IS THE DIRECTION OF TRAVEL AS WELL.LISA: THAT WILL BE A FUN NEW CYCLE. THIS IS WHEN YOU HAVE TO STARTTALKING ABOUT LONGER-TERM.

NEUTRAL RATES.THAT IS HOW YOU GUIDE THE MARKET.I ALSO WONDER IF THIS MEETING, YOU ARE SUPPOSED TO TALK ABOUTTHE BALANCE SHEET. WE HAVE SEEN THE BALANCE SHEETFALL BY $4.5 TRILLION. DO THEY STOP THE RUNOFF NOWEVEN THOUGH THINGS ARE HEATING UP? CAN THEY SIGNAL WITHOUTSIGNALING THAT THEY ARE GETTING A LITTLE NERVOUS? JONATHAN: I LIKE THE DIFFERENCE IN HOWTHEY TALK ABOUT QE AND QT. LISA: SETH CARPENTER HAD A PIECE THISWEEKEND EXPLAINING WHY THAT IS.

POSSIBLE BUT IT IS COMPLETELYDIFFERENT. AT THE SAME TIME, IS IT?JONATHAN: ONE IS WATCHING PAINT DRY ANDTHE OTHER IS SUPERSYMMETRY WILL SAVE THE WORLD. COMING UP IN THE NEXT HOUR,MICHAEL OF BARCLAYS. GEORGE FERGUSON A BLOOMBERG ANDJAMES CAMP OF EAGLE ASSET MANAGEMENT.MORE TO COME FROM NEW YORK CITY, SESSION HIGHS.THIS IS BLOOMBERG. >> IF YOU LOOK AT THE MOMENTUMIN THE U.S.

STATE, RECENT WEEKS ON THEACTIVITY SIDE. >> IT HAS BEEN RESILIENT.IF YOU LOOK AT THE UNDERLYING DYNAMIC, THERE IS SOME SLOWING. >> I THINK THERE'S A NONZEROPROBABILITY WE FIND OURSELVES IN AN ENVIRONMENT WHERE DEMANDCONTINUES TO SLOW MORE AND MORE. >> IT IS NOT AS GREAT AS PEOPLEWOULD LIKE TO SEE, WE ARE NOT THERE YET. >> THIS IS “BLOOMBERGSURVEILLANCE.” JONATHAN: SO LAID BACK.

>> 5400 ON THE S&P. JONATHAN:THAT WAS LIKE 20 PERCENTAGE POINTS AGO. GOOD MORNING. EQUITY FUTURES ON THE S&P 500,WHERE ARE WE? SESSION HIGHS. THIS IS WHAT SHE HAD TO SAY.WE HAVE OPEN THE DOOR TO REDUCTIONS TOO SOON AT THEFEDERAL RESERVE. THERE IS A RISK THEY MAY BEFORCED TO REENGAGE WITH THE FEDERAL RESERVE WITH RATE HIKESLATER THIS YEAR. LISA: THERE IS A CONSENSUSBUILDINGTHAT THAT MAYBE RATES WILL HAVE TO REMAIN A LOT HIGHER FOR ALOT LONGER.

THAT IS THE NEW CONSENSUS, HASIT BEEN BAKED INTO EQUITIES YET. JONATHAN:LET'S TAKE THE BOND MARKET. YIELDS UP UP UP ON A TWOMATURITY. WE START WITH YIELDS VERY CLOSE.WE LOOK AT THE EQUITY MARKET PERFORMANCE. WE WERE DOWN 0.13% LAST WEEK,0.26% ON THE S&P THE WEEK BEFORE. LISA: THIS WAS DRIVEN IN LARGE PARTBECAUSE LEADERSHIP HAS TO LEAVE. THE WINNERS WILL KEEP ONWINNING.

THAT IS WHAT WE HAVE HAD THISYEAR. EVERY TIME THERE'S A HICCUP ORCONCERN, GUESS WHAT RALLIES? THE MAGNIFICENT SEVEN.TODAY, WE KICK OFF THIS CONFERENCE, IT MIGHT BE MOREIMPORTANT THAN THE FEDERAL RESERVE.IF THERE'S ANY SEMBLANCE OF A SENSE THAT MAYBE WE ARE GETTINGSOME SORT OF SLOWDOWN, COULD THAT SINGLE-HANDEDLY CLEAR THERALLY WE HAVE SEEN? JONATHAN: ONE THING THAT IS NOT RALLYINGIS THE JAPANESE YEN. THE DOLLAR-YEN HAS GRINDINGHIGHER FOR FIVE CONSECUTIVE.

DAYS.IMPRESSIVE IN THE FACE OF THE FIRST INTEREST RATE HIKE WE AREGOING TO SEE FOR THE FIRST TIME SINCE 2007.I KNOW THERE ARE SOME OTHERS ELSEWHERE.THERE ARE TWO BIG ONES, THE BOJ AND FED RESERVE. LISA: I'M PARAPHRASING NOW, BANK OFJAPAN, YOU REALIZE THIS IS IMPORTANT DON'T YOU?IT RAISES THIS QUESTION, WILL THE BANK OF JAPAN MEET THEMOMENT BY GIVING SOME SORT OF ROADMAP OF WHAT IS AHEAD ORWILL THEY KICK THE INTEREST.

RATE TO ZERO OR DO NOTHING?THE IDEA OF THIS PAIR HAS BEEN SO OVER ANALYZED AND TALKEDABOUT AND DISAPPOINTED WITH THE MOVING AT THE PACE OF A SNAIL,I UNDERSTAND THE RELUCTANCE. JONATHAN: BOARD OF PRICE ACTIONELSEWHERE, S&P 500 POSITIVE. VERY CLOSE TO SESSION HIGHS.TRYING TO BOUNCE BACK FROM LAST WEEK SMILED, MARGINAL LOSS.BOND MARKET UNCHANGED THIS MORNING.THAT IS A REAL MOVE HIGHER WE HAVE SEEN ON THE 10 YEAR YIELD.EURO-DOLLAR, GUESS WHERE THAT IS? 1.09 EXACTLY. LISA:.

THIS HAS BEEN A YEAR OF REALLYMARGINAL MOVES PARTICULARLY WHEN IT COMES TO THE MACROTRADES. IT IS INTERESTING IN AND OFITSELF. WHY HAS IT BEEN SO QUIET WHENYOU HAVE REAL DIVERGENCE WHEN IT COMES TO AN ECONOMICPERSPECTIVE? WHAT WILL IT TAKE TO CREATEVOLATILITY AND TRADING ACTIONS ELSEWHERE?SAYING TO US IT HAS BEEN PRETTY SLOW. JONATHAN: BORING?THEY CALL IT SLOW, YOU CALL IT BORING. LISA: NOTHING IS BORING.YOU COULD FIND REALLY.

INTERESTING THINGS. JONATHAN:THIS HOUR WILL NOT BE BORING. MORE TO EXPECT ON CHAIRMANPOWELL'S NEWS CONFERENCE. THE BANKS RESTRUCTURING PLANS.JAMES CAMP OF EAGLE ASSET MANAGEMENT ON WHY HE THINKSIT'S LIKELY THE FED PASSES. WE BEGIN WITH OUR COP — TOPSTORY. INVESTORS TURNING THEIR ATTENTION TO WEDNESDAY'S FEDDECISION. MICHAEL SHOW SAYING WE MIGHTSEE SOME CRITICISM WITHIN ASSET MARKETS OR SOME PRESSURE ONCHAIR POWELL TO COMMENT ON THIS ISSUE DURING THE PRESSER,MICHAEL, ARE WE GOING TO GET.

SOME CRITICISM WITH FINANCIALCONDITIONS BEING TOO EASY? MICHAEL:THAT'S A BIT OF A TONGUE TWISTER. THAT IS THE QUESTION. I THINK THE FED UNNECESSARILYMOVED ITS GUIDANCE BACK IN NOVEMBER-DECEMBER.NO ONE HAS A CRYSTAL BALL. IF THEY KNEW WHAT THE ECONOMICDATA WOULD HAVE BEEN, IT WOULD'VE KIND OF MOVED IT.YOU COULD SAY NOTHING REALLY HAPPENED.ASSET MARKETS HAVE BEHAVED VERY DIFFERENTLY.

I THINK THERE WAS MAYBE SOMEPRESSURE PUT ON HIM. HIS PRESS CONFERENCES HAVE BEENFAIRLY EASY FOR HIM SINCE NOVEMBER OR DECEMBER.HE HAS BEEN IN CONTROL OF THE NARRATIVE.STARTING TO BE SEEN AS A SUCCESSFUL FEDERAL BOARD CHAIR. ASSET MARKETS ARE STRONG BUTEVERYBODY KIND OF LIKES THAT. IF YOU CONTINUE TO GUIDE LOWERAND CONTINUE TO SAY WE WILL USE WHATEVER OPPORTUNITIES WE AREGOING TO TAKE TO CUT RATES, THE ASSET MARKETS MOVEUNCOMFORTABLY HIGH. LISA:.

A REASON WHY I THINK A LOT OFPEOPLE ARE WONDERING IF THEY GET GUIDANCE LONGER-TERM.DO YOU THINK JAY POWELL IS MORE IMPORTANT TODAY WHEN HE SPEAKSAT THE NVIDIA CONFERENCE? MICHAEL:COMPLETELY DIFFERENT ISSUES TO ME.NVIDIA CONTROLS THE NASDAQ AND THE NASDAQ CONTROLS THE S&P.THE ECONOMY IS CONTROLLED BY THE FED. JONATHAN:MADE THE POINT ABOUT STOCKS DOING OK IN THE FACE OF THESEINTEREST RATE CUTS. GDP BEING A WHOLE LOT STRONGER.WHY WOULD STOCKS TANK EVEN.

WITHOUT THE RATE CUTS? COULD YOU RETAIN THAT BULLISHVIEW REGARDLESS OF WHAT THE FEDERAL RESERVE IS UP TO?MICHAEL: NOMINAL GDP IS ABOUT 5.5%. ON THE OTHERS, TRIPLE BE YIELDSARE EXACTLY WHERE THE FED ARE. IT IS A FAVORABLE OPERATINGENVIRONMENT FOR CORPORATE AMERICA. JONATHAN:WHAT DO YOU LIKE RIGHT NOW WITH THAT IN MIND? MICHAEL:I LIKE THERE IS SOME LIFE IN THE ECONOMIC STUFF BECAUSE THEECONOMY IS OK, THAT STUFF.

SHOULD REALLY BE REWARDED.ENERGY HAS HAD A PRETTY LOUSY 12-18 MONTHS. IT DOESN'T FEEL LIKE A GOODSTART TO THE YEAR. IT IS STARTING TO LOOK OK. LISA:THE RALLY LAST WEEK, ENERGY STOCKS RALLIED TREMENDOUSLY.IS THIS A GOOD RALLY FOR THE ECONOMY OR IS THIS A BAD RALLYCONSIDERING IT SPEAKS TO THE RE-INFLATION? MICHAEL:IT DEPENDS ON WHICH PART OF THE ECONOMY YOU ARE IN.THE PEOPLE MAKING THE GOODS WILL HAVE A DECENT YEAR.AT THE END OF IT, THE SQUEEZE.

IS ON OTHER SIDES OF IT.YOU HAVE THIS CRAZY STORY OF COVID.WE ALL UNDERSTAND THE MASSIVE INFLATION THAT CAME WITH IT.A FAVORABLE WITHDRAWAL OF THOSE PRESSURES.IT'S GOING TO BE NOTHING LIKE COVID, THANK GOD. YOU'VE HAD A VERY LONG CYCLETHAT LOOKS LIKE IT IS COMING TO AN END.YOU WILL SEE A REINVIGORATION OF THE COMMODITY COMPLEX.JONATHAN: YOU THINK THE DISINFLATIONTREND IS OVER? MICHAEL:.

IN THE GOODS ECONOMY, YES.THE SERVICE ECONOMY NEVER REALLY HAD ONE.LOTS OF IDEAS OUT THERE ABOUT WHAT THAT IS GOING TO DO.IF YOU ARE LOOKING FOR THE GOODS ECONOMY IT HAS ADIFFERENT EXPERIENCE OVER THE LAST 18 MONTHS. I THINK YOU WILL GET INFLATIONAND GOODS INFLATION. JONATHAN: IF YOU HAD TO TALK ABOUT THISYEAR, HOW MANY CUTS FROM THE FED? MICHAEL: BETWEEN 1-2. I THINK THEY WILL TRY AND CUTSOONER OR LATER.

THAT IS PROBABLY ABOUT IT.JONATHAN: GOOD TO SEE YOU. EQUITIES RIGHT NOW ON THE S&P,SESSION HIGHS AT 0.4%. LET'S GET YOU AN UPDATE ONSTORIES ELSEWHERE. DANI: NASDAQ IS INVESTIGATINGPREMARKET TRADING. NASDAQ SAYS IT HAS DETERMINEDTHE ROOT CAUSE AND IS WORKING ON A FIX.NO TRADES PRINTED SINCE 4:0 9:00 A.M. NEW YORK TIME.ANY UNACKNOWLEDGED ORDERS ON IT SYSTEM HAVE BEEN CANCELED ANDBACK TO CUSTOMERS. ANTONY BLINKEN WARNED OF AFLOOD OF FALSE INFORMATION.

AHEAD OF A BUSY YEAR FORELECTIONS WORLDWIDE. HE WARNED AUTHORITARIANGOVERNMENTS WOULD METAL IN ELECTIONS AND THE U.S.WOULD KEEP PRESSING TO DISRUPT MISINFORMATION EFFORTS.HUGE ADVANCEMENTS IN GENERATIVE AI ARE FUELING CONCERNS OVERFAKE CONTENT INFLUENCING VOTERS. NORTH KOREA FIRED MULTIPLEBALLISTIC MISSILES, TOKYO'S MINISTRY OF DEFENSE AS NORTHKOREA FIRED THREE MISSILES OFF ITS EAST COAST MONDAY.THEY SAY IT FLEW SOME 300 AND 50 KILOMETERS.

THE U.S., SOUTH KOREA, ANDJAPAN ALL CONDEMNED THE FIRST TEST IN TWO MONTHS AS A THREATTO REGIONAL SECURITY. JONATHAN: IT IS A NEW ERA FOR BARCLAYS. >> WE WILL CONTINUE TO STRIVEFOR EFFICIENCY. PEOPLE AREN'T LOOKING — THEYARE LOOKING FOR A PARTNER AND COUNTERPART WHO IS NOT JUST AU.S. BANK. WE ARE A STRONG BRITISH BANK.JONATHAN: WE WILL CATCH UP WITH THE CEOOF BARCLAYS, UP NEXT. GOOD MORNING.

JONATHAN:MASSIVE WEEK COMING UP. I SAY THAT ALMOST EVERY WEEK.FEDERAL RESERVE, BOJ ON DECK. S&P 500 NEAR SESSION HIGHS.10 YEAR YIELD UP EVERY SINGLE DAY LAST WEEK.20 BASIS POINTS ON A 10 YEAR AS WELL.470 ON A TWO YEAR MATURITY. IT IS A NEW ERA FOR BARCLAYS. >> I THINK IT IS GOING TO BE ABARCLAYS YEAR. WE HAVE TO BE RESILIENT.WE CONTINUE TO STRIVE FOR EFFICIENCY.IMPROVEMENT IN THE TYPES OF.

REVENUE RUNNING THE BUSINESS.WE ARE THE LEADING INVESTMENT BANK OUTSIDE OF THE UNITEDSTATES. PEOPLE ARE LOOKING FOR A PARTNER AND A COUNTERPART NOTJUST A U.S. BANK. IF THEY HAD TO PICK ONE, THEYTEND TO TAKE BRITISH BANKS. JONATHAN:BARCLAYS LAUNCHING A THREE-YEAR PLAN TO SHED COSTS AND BOOSTREVENUE. RETURNING AT LEAST $12 MILLIONTO SHAREHOLDERS THROUGH DIVIDENDS AND BUYBACKS — $12BILLION THROUGH SHARE — THROUGH BUYBACKS.JOINING US IS THE CEO OF.

BARCLAYS. GREAT TO SEE YOU, SIR.PARTICULARLY HERE IN NEW YORK CITY. WE HAVE RALLIED SINCE — PRETTYAGGRESSIVELY UP 20% SINCE YESTERDAY EVENING.DO YOU THINK THAT'S EVIDENCE TO SHARE INTO YOUR VISION? >> IT IS THE EARLY STAGE OFTHAT EVIDENCE. WHAT IS MOST IMPORTANT FOR US IS THIS PLAN TO INCREASE FROM12%. IT IS A PLAN TO RETURN 10 BILLION POUNDS TO SHAREHOLDERS.IT IS A PLAN TO HAVE A BROAD.

DIVERSIFIED BANK TO HAVE AGLOBAL LEADER CENTERED IN THE U.K., INVESTMENT BANK GOING TO50%. OUR JOB IS TO HAVE A PLAN ANDEXECUTE IT. JONATHAN:YOU TALK ABOUT DIVERSIFYING REVENUE AND LEANING MORE INTOADVISORY. IS THE TALENT THEY ARE ON BOARDTO MAKE THAT SHIFT? DO YOU NEED TO HIRE TO MAKETHAT HAPPEN? C.S.:WE HAVE NEW LEADERSHIP IN THE INVESTMENT BANK.WE HIRED VERY SKILLED BANKERS.

IN HEALTH CARE AND TECHNOLOGY.THAT HAS ALREADY STARTED TO HAVE ITS EFFECT. LAST WEEK WE ANNOUNCED THE SALEECHO TRANCE. WE ARE BEGINNING TOFEEL THE MOMENTUM FROM THOSE HIKES. LISA: WHAT DO YOU THINK IT IS ABOUTTHE — VERSUS SAY ADVISORY FEES? C.S.:WHEN YOU MOVE INTO ADVISORY FEES, YOU HAVE TO GET A BETTERRETURN ON CAPITAL. LENDING IS AN IMPORTANT PART OFWHAT WE DO.

WE ARE A VERY BIG PLAYER IN THEFIXED INCOME MARKETS, THE FIXED INCOME TRADING.LENDING IS A PART OF WHAT WE DO. LISA:HOW MUCH IS THIS A NEW MODEL OF BANKING?TAKING ALL OF WALL STREET AND THE GLOBAL BANKS AND TRYING TOCATER TO THE WHOLE CLIENT RATHER THAN SAY GO AFTERSPECIFIC DEALS AND BE FOCUSED ON BEING AT THE TOP OF A TABLE?C.S.: I THINK IT IS AN IMPORTANT PARTOF THE SHIFT HAPPENING. PREVIOUSLY ON THE INVESTMENTBANKING SIDE WE WERE WORKING.

WITH CORPORATIONS.SINCE THEN, WE STILL WORK WITH CORPORATIONS IN A BIG WAY.YOU HAVE THE SOVEREIGN WEALTH FUNDS. THE POOLS OF CAPITAL MAKES ITIMPORTANT TO HAVE THIS RELATIONSHIP WITH THOSE PLAYERSIN MARKET. JONATHAN: WE ASK THE SAME QUESTION.I COULD TAKE ABOUT WHEN JAMIE DIMON LEFT THAT MORNING ANDJENKINS CAME IN. THE MORNING JENKINS COW FIRED,I WAS SITTING WITH THE CHAIRMAN AND WE TALKED ABOUT THE SAMETHING, THE FUTURE OF THE.

INVESTMENT BANK.DO YOU FIND THAT IS A MEDIUM OBSESSION?WHERE DOES THAT QUESTION COME FROM? C.S.: FOUR WEEKS AGO, I TRIED TOADDRESS IT DIRECTLY. IT IS IMPORTANT FOR BARCLAYS TOHAVE THIS. WE ARE THE LARGEST INVESTMENTBANK OUTSIDE OF THE TOP FIVE IN THE U.S..IT IS IMPORTANT TO HAVE A COUNTERPARTY NOT JUST IN U.S.BANK. IT IS AN IMPORTANT SOURCE OFREVENUE FOR US AND WE ARE GOOD.

AT IT. JONATHAN: WHY IS IT IMPORTANT TO HAVE ABANK OUTSIDE OF THE U.S.? C.S.:DIVERSIFYING YOUR EXPOSURE . LONDON HAS BEEN HISTORICALLY AGREAT FINANCIAL CENTER AND REMAINS A VERY IMPORTANT ONE.COVERS A LOT OF FINANCIAL CONTRACTS.ALL OF THOSE THINGS MAKE IT ATTRACTIVE TO WORK WITH A U.K.BANK. LISA: DOES IT MAKE IT DIFFICULT TOCOMPETE OUTSIDE OF THE U.K. WHEN YOU HAVE JP MORGANDOMINATING ABSOLUTELY.

EVERYTHING? C.S.: THE WORLD IS BIG ENOUGH FOR ALLOF US. WE ACT LIKE A U.S. BANK. LISA: WHEN YOU ACT LIKE A U.S.BANK WITH A SPECIFIC FOCUS, THE FIVE PILLARS OF YOURORGANIZATION. RECENTLY YOU OFFSET SOME RISKFROM YOUR CREDIT CARD PORTFOLIO. THERE IS A REAL QUESTION HEREABOUT WHERE YOU SEE AN OPPORTUNITY TO LEND IN THECONSUMER SPACE AT A TIME OF UNCERTAINTY IN THE CYCLE? C.S.:WE VIEW THE CONSUMER SPACE IN TWO WAYS. IN THE U.S.WE HAVE A GREAT CREDIT CARD.

BUSINESS.WE HAVE 20 CORPORATE PARTNERS, BLUE-CHIP CORPORATIONS.WE ARE LOOKING TO CONTINUE TO GROW THAT PARTNERSHIP BUSINESSIN THE U.S. IN A MEASURED WAY BECAUSE ITHAS GREAT SYNERGIES WITH OUR INVESTMENT BANK AND IS A GREATOVERALL BUSINESS FOR US. IN THE U.K.WE HAVE TRENDS ACROSS THE CONSUMER FRANCHISE. IT IS OUR HOMELAND, HOME TURF.WE LOOK TO INCREASE THAT STRENGTH. LISA:.

IS THERE MORE EMPHASIS ONGROWING IN THE UNITED KINGDOM OUTSIDE OF THE U.S.? THE U.S.EFFORT WILL BE MUCH MORE BESPOKE, FOCUSED ON CLEARVERTICAL RATHER THAN THE WHOLE PICTURE. C.S.: WE HAVE A COMPLETE BANKINGPROCESS IN THE U.K.. TOUCHING CUSTOMERS FROM THEVERY LARGEST CORPORATIONS DOWN TO INDIVIDUALS.IN THE U.S., WE OFFER INVESTMENT BANKING SERVICES,TRADING AND BANKING. A VERY GOOD, SPECIALIZEDPARTNERSHIP. JONATHAN:.

WE HAD THE RATE SHOCK, BIG TIMEON BOTH SIDES OF THE ATLANTIC. WHAT WE HAVEN'T SEEN IS THECREDIT STRESS. AS YOU LOOK AT THE BUSINESS ATTHE MOMENT, THE U.S., U.K., ARE YOU SEEING ANYTHING EMERGE ATALL? C.S.: YOU ARE SEEING SMALL SIGNS OFIT ON THE CONSUMER SIDE. JUST A DIFFICULT DELINQUENCYOFF THE COVID LOWS. UNEMPLOYMENT IS LOW.YOU SEE THE INFLATION AND THE EFFECTS OF THE WEARING OF THECONSUMER STIMULUS YOU HAD DURING COVID.YOU ARE SEEING THE SMALL.

DELINQUENCIES IN THE BUSINESS.JONATHAN: IS THERE A PART YOU ARE BEINGSUPER VIGILANT ABOUT WITH LENDING AROUND THAT PARTICULARAREA OF THE ECONOMY? C.S.: NOT REALLY.AS AN OVERALL MATTER, THE ECONOMY IS STABILIZING.IT LOOKS LIKE ON BOTH SIDES OF THE ATLANTIC YOU ARE HAVING ASOFT LANDING. IT HAS REMAINED STRONG INSTATISTICS. GENERALLY, WE ARE CONSTRUCTIVETOWARDS LENDING. JONATHAN: BARCLAYS AND ITS ROOTS GO ALLTHE WAY BACK TO THE LATE 1600S,.

EARLY 1700S.WE ARE TALKING ABOUT CENTURIES. DO YOU SEE THAT AS A THREAT INANY WAY, SHAPE, FORM? DO YOU THINK THE U.K.HAS TAKEN THAT FOR GRANTED? C.S.: I THINK THE U.K.UNDERSTANDS THAT. POLITICIANS ON BOTH SIDESUNDERSTAND THAT EXTREMELY WELL. THERE IS A LOT FOR THE CITY OFLONDON. LISA: THIS WEEK WE DO GET A BANK OFENGLAND DECISION. IS IT BENEFICIAL OF RATES STAYHIGHER FOR LONGER? DO YOU WANT TO SUPPORT THEECONOMIC GROWTH? C.S.:.

ULTIMATELY THAT IS A DECISIONTHEY HAVE TO MAKE. I THINK A LITTLE PRUDENCE ANDWAITING A LITTLE IS NOT A BAD THING. JONATHAN: WHY IS THE BIGGER RISK TO CUTTOO SOON AND NOT HOLD TOO LONG? C.S.:THE ECONOMY IS STABILIZING. EMPLOYMENT IS ROBUST. INFLATIONIS COMING DOWN. ON THE BALANCE AND MIGHT BEMORE PRUDENT TO WAIT LONGER. OUR FEELING IS FOR MORE RATECUTS. JONATHAN: THE SAME CHARACTERIZATION INTHE U.S.? C.S.: I THINK SO.

LISA:WOULD THAT BE GOOD FOR YOU? ARE HIGH RATES GOOD FOR BANKSOR BAD FOR BANKS? C.S.: STABLE IS GOOD FOR BANKS.JONATHAN: VERY DIPLOMATIC. WE APPRECIATE YOUR TIME.ON THE SITUATION FROM THE UNITED STATES TO THE U.K., THEDIFFERENCES, THE SIMILARITIES. LISA:HOW DO YOU SORT OF REARRANGE WHEN THEY ARE SHIFTING WHERETHEY ARE WITH THE SOVEREIGN WEALTH FUNDS, WEALTH MANAGEMENTAND HOW MUCH THAT HAS BALLOONED AND HOW BANKS ARE READTRIGGERING.

WE ARE HEARING THAT FROM MORGANSTANLEY, ALSO CITIGROUP WITH HOW THEY ARE THINKING ABOUT THEWORLD. WE ARE'S BONDING TO REAL SHIFTING POOLS OF CAPITAL.JONATHAN: THE QUESTION ON THE INVESTMENTBANK JUST WON'T GO AWAY. A BIGGER PART, JUST AN INTERESTIN GENERAL. REPEATEDLY IT KEEPS COMING UP. LISA:THERE'S A QUESTION OF WHETHER THAT IS AN ANTIQUATED MODEL.ESPECIALLY GIVEN THE TRADING WITH THE REAL KIND OF BOOMS ANDBUSTS.

ULTIMATELY IF YOU ARE LOOKINGAT A NEW MODEL AS PART OF THAT FULL-SERVICE, IT HAS ADIFFERENT TENOR. JONATHAN:WE ARE LOOKING FOR A PIVOT TOWARDS MORE OF THE ADVISORYSTUFF. COMING UP, WE PIVOT FROM BANKSTO BOEING. DISASTROUS START TO 2024 KEEPSGETTING WORSE. EQUITY FUTURES ON THE S&P 500SET UP AS FOLLOWS. EQUITY SESSION HIGHS OF 0.6% ONTHE S&P 500. BIG MOVES IN THE BOND MARKET.WE START THE WEEK ON THE 10.

YEAR IN THE FOUR 30'S.FOREIGN EXCHANGE, THE EURO SLIGHTLY STRONGER.THIS IS BLOOMBERG. JONATHAN:STOCKS, SESSION HIGHS UP BY ZERO .6% ON THE S&P 500.NASDAQ POSITED BY MORE THAN 1%. TWO THINGS IN FOCUS, ONE'SCENTRAL BANK DECISIONS, THE OTHER IS NVIDIA HAS ADEVELOPERS CONFERENCE. THE ENTHUSIASM IS PRETTY GOODRIGHT NOW. LISA: THAT IS AN UNDERSTATEMENT RIGHTNOW CONSIDERING PEOPLE ARE LOOKING FOR ALL OF THEAPPLICATIONS TO GET FROM.

ARTIFICIAL INTELLIGENCE, WEHEAR HOW IT WILL TRANSFORM HEALTH CARE INTO BANKING, TOTHE RETAIL SECTOR. TO PUT WAY AND SOME OF THE –CHIPOT LE, SOME OF THE OTHER RETAILERS.IT CUTS THE AVOCADO IN HALF AND SCOOPS IT OUT BECAUSE IT SAVESA CERTAIN AMOUNT OF TIME. THE AUTOCADO IS WHAT IT ISCALLED. JONATHAN: HOW MUCH WILL THAT COST? LISA:IF IT SAVES THAT MUCH TIME. THINK ABOUT IT, IF YOU AREDOING IT 1000 TIMES AND YOU HAVE SOMEBODY OPENING IT UP, ITCOULD SAVE A STAFF MEMBER.

INSTEAD OF INVESTING IN HUMAN,YOU COULD END UP WITH THAT. LISA: COULD YOU DO THAT?JONATHAN: NOT AGGRESSIVELY. IN A CONTROLLED MANNER. LISA:THEY HAVE SPECIAL MACHINES. JONATHAN:YIELDS DOWN ABOUT TWO BASIS POINTS.BIG MOVE HIGHER IN THE TWO YEAR AND 10 YEAR YIELD.IN AND AROUND 4.30. THE BOJ AND FEDERAL RESERVE INTHE WEEK AHEAD. DOLLAR-EN LOOKS LIKE THIS.WE HAVE HAD FIVE OR SIX DAYS OF THIS ON DOLLAR-YEN.COMING ALL THE WAY BACK TO 2007.

BUSY WEEK FOR CENTRAL BANKDECISIONS. THE BOJ KICKING THINGS OFFTOMORROW WITH THE FIRST RATE HIKE IN 17 YEARS.WEDNESDAY WE GET THE FED DECISION.THE NEWS CONFERENCE COULD PROVIDE INSIGHT INTO THETIMELINE FOR RATE CUTS. THURSDAY WE GET THE BOE,ANOTHER PAUSE EXPECTED. LIKELY TO MEAN FEWER CALLS FORHIGHER RATES. THE BARCLAYS CEO JOINED US ATTHE TABLE A FEW MOMENTS AGO. SOME INSIGHT INTO THE BANK OFENGLAND THERE.

THERE MAY BE SOME BENEFITS TOWAITING. WHAT IS THE BIGGEST RISKCUTTING TOO SOON OR HOLDING TOO LONG? MAYBE THE BIGGEST RISK ISCUTTING TOO SOON? LISA: THAT IS WHAT THE MARKET ISMAKING IT. MAYBE WE DON'T UNDERSTAND HOWRESILIENT SOME OF THE INFLATIONARY PRESSURE IS.THE GOODS INFLATION IS NOTABLE. THAT IS WHAT WE HEARD EARLIER,A LOT OF PEOPLE WOULD AGREE. DO WE STAY AROUND HERE?DO WE HAVE TO HOLD IT HIGHER FOR LONGER AND NOT HAVE TO DOTHE WORST THING POSSIBLE?.

JONATHAN:COULD HOLD UP TO 25 POUNDS OF AVOCADOS AT ONCE. LISA: THEY ARE VERTICALLY ORIENTEDAND TRANSPORTED. IT IS TIME CONSUMING.IF SOMETHING TO TAKE OFF THE SKIN, PIT, YOU COULD JUST SMASHIT IT IS ONE PERSON. IF YOU DON'T HAVE TO PAYSOMEBODY $40,000 A YEAR TO MASH AVOCADO, YOU COULD EVENTUALLYEVENTS — INVEST IN AN AUTOCADO. JONATHAN:I'VE NEVER BEEN TO CHIPOTLE. LISA: IT'S PRETTY GOOD.THIS IS THE TYPE OF THING THEY.

ARE TALKING ABOUT, AVOCADOS.JONATHAN: SHARES OF NVIDIA UP TODAY AHEADOF THE CEOS SPEECH KICKING OFF THE WEEK.A PLATFORM HE HAS USED TOO OFTEN INTRODUCE NEW PRODUCTSAND TALK ABOUT WHERE THE TECHNOLOGY IS GOING.STOCKS UP BY 2.8% THIS MORNING. COMING OFF ITS 10TH STRAIGHTWEEK OF GAINS. CLOSE TO 80% SO FAR THIS YEAR. WE ASK THIS MORNING WHAT IS THEBIGGEST EVENT FOR THIS WEEK, WILL IT BE NVIDIA OR THE CHAIROF THE FEDERAL RESERVE?.

HE SAID IS THE FORMER AND NOTTHE LATTER. LISA: TRUE, THE QUESTION IS WHY?WHAT ARE THEY GOING TO ANNOUNCE? I REALIZE THAT IS NOT EXACTLYAI , WHAT ARE SOME OF THE ADAPTATIONS THAT WILL CHANGEBUSINESS AS WE KNOW IT IN DIFFERENT PLACES AND HOWQUICKLY IS HE GETTING DEVELOPED? YOU COULD SEE A RALLY, OTHERTYPES OF INDUSTRIES REALLY DO WELL.THIS IS WHY IT IS REALLY KEY. JONATHAN:5% OF THE S&P 500 AND 99% OF THE REASON TO BUY STOCKS.IT FEEDS INTO SENTIMENT THAT.

EVERYTHING AROUND THIS NAMEREALLY FEEDS INTO SENTIMENT FOR THE WHOLE ECOSYSTEM THAT IS AIRIGHT NOW. ESPECIALLY BASED ON THAT SINGLENAME. LISA: WE COULD WORK FEWER HOURS,THERE IS SOMETHING THAT IS UP 12 TIMES ITS INITIAL VALUE. WE ARE TALKING ABOUT ATECHNOLOGICAL SEACHANGE. HOW DO YOU PRICE THAT?THAT IS THE UNDERLYING ENTHUSIASM.IT DOESN'T MATTER IF YOU ARE TALKING TECHNOLOGICAL. JONATHAN:LET'S TURN TO BOEING, A.

DISASTROUS START TO THE YEARAND KEEPS GETTING WORSE. UNITED, SOUTHWEST ARE AMONG THEAIRLINES SCRAMBLING TO RESPOND TO REDUCE DELIVERIES FROMBOEING. THE PLANE MAKER IS FOCUSED ONQUALITY LAPSES WITH AN ALASKA AIRLINES FLIGHT THAT COULD LEADTO AIRLINES REDUCING SUMMER TRAVEL SCHEDULES AND ULTIMATELYHIGHER PRICES FOR PASSENGERS. GEORGE JOINS US NOW FOR MORE.COULD WE GO STRAIGHT INTO PRODUCTION NUMBERS?HOW MUCH HAS THIS DISASTER HELD BACK PRODUCTION? GEORGE:I THINK IT'S SOMETHING WE DON'T.

KNOW YET.WE HAVE ALL BEEN TRYING TO FIGURE IT OUT. THE MARKET HAS NOT ADJUSTED ALOT OF THEIR DELIVERY NUMBERS THIS WEEK. CUTTING 50 DELIVERIES OUT OFTHE BOEING 737 DELIVERIES FOR 2024. IT COULD COME DOWN EVEN ALITTLE MORE. THE EFFECT ON THE AIRLINES,ESPECIALLY FOR THE SUMMER TRAVEL SEASON WILL BE BIG. YOU ARE GETTING YOUR DELIVERIESTHAT YOU WILL USE IN THE SUMMER.

BY MARCH OR APRIL AS YOU GETTHE AIRPLANE IN THE AIR INTO YOUR SCHEDULE.THIS EFFECT WILL TAKE A WHOLE YEAR TO BE FELT. THE U.S. STILL SEEMS A LITTLEOVERCAPACITY FOR US WITH BUDGET SEATS.SOUTHWEST IS ONE OF THE MAJOR PARTICIPANTS IN THE BUDGET SEATCATEGORY I WOULD SAY. LISA: THE GOOD NEWS IF I'M HEARINGYOU CORRECTLY AS WE WILL NOT SEE A SPIKE IN PRICES OFF THEHEELS OF THIS BECAUSE IT WILL BE A LONG PROCESS.MAYBE NEXT SUMMER WE WILL FEEL.

THE PROCESS.BOEING TRIES TO WORK THIS OUT, IS THAT CORRECT? GEORGE:I THINK THE BIGGER RISK IS ABSOLUTELY OUT THERE. LISA: WE HAVE A SENSE OF WHETHERBOEING IS GETTING A LOT OF THE ISSUES UNDER CONTROL?GIVEN THE FACT THAT THE DOJ SEEMS TO BE CONCERNED.THEY HAVE NOT BEEN ABLE TO FIND OR REPORT — A REPORT THAT THEYASKED FOR, WHERE ARE WE WITH THIS? GEORGE:I WOULD SAY THE COMMENTARY.

COMING OUT OF BOEING, THEYPROVIDED MORE GUIDANCE. WE ARE STILL DEEP INTO THISINVESTIGATION PROCESS. BOEING HAS 90 DAYS TO COME BACKAND REPORT TO THE FAA ON HOW THEY WILL STABILIZE THEPRODUCTION PROCESS. HAVEN'T HEARD ANYTHING MORE ONTHAT. STILL FROM THE EARLY DAYS ONWHAT THE GAME PLAN IS GOING TO BE AND WHAT THE EFFECT IS GOINGTO BE ON THE COMPANY PRODUCTION. NOT MUCH REASSURANCE RIGHT NOW.JONATHAN: THE AUTO LOGS AT BOEING STRESSYEARS OUT — STRETCH YEARS OUT.

WHEN YOU THINK ABOUT WHAT ISHAPPENING WITH RYANAIR, WHAT OPTIONS DO THEY ACTUALLY HAVE?GEORGE: THE AIRLINES FLYING VERY SINGLETYPE FLEETS LIKE RYANAIR, SOUTHWEST, IT WOULD BE A MAJORMOVE FOR THEM TO MOVE FROM THE 737 TO THE COMPETITOR, WOULDPROBABLY TAKE A DECADE FOR SOMEBODY TO SWITCH THEIR FLEETOVER. THEY ARE ALL BUILT AROUND LOW-COST FLEETS.PILOTS ALL WITH A SINGLE TYPE. IT'S GOING TO GET A LOT WORSE.THE ONES YOU WILL SEE PEEL AWAY ARE CARRIERS LIKE UNITED THATARE FLYING DUAL TO — DUAL.

FLEETS ALREADY TO USE TWO U.S.EXAMPLES. THOSE ARE THE CARRIERS BOEINGHAS TO BE VERY CAREFUL ABOUT. THEY ARE STARTING TO LOSE IT INUNITED. IT DOESN'T EVEN ADD ANOTHERTYPE. THEY ARE ALREADY FLYING AIRBUS.IT IS EASIER FOR THEM TO SWITCH. JONATHAN:COMPETITION IS ALWAYS CLOSE BY IN THIS INDUSTRY.IT WILL BE UNDER THE SPOTLIGHT WITH THIS.GIVEN THE VERY FEW OPTIONS, WHAT ARE THEY GOING TO DO GOINGFORWARD FROM HERE AND NOT JUST.

IN THE UNITED STATES, I MEANWORLDWIDE. GEORGE: WE ARE LOOKING FOR THEREGULATOR TO HELP SHINE A LIGHT THROUGH FOR BOEING, HELP THEMGET THEIR PROCESS BACK IN PLACE. THE REGULATOR HAS TO BE VERYCAREFUL. IS VERY IMPORTANT TO THE U.S.INDUSTRY, ONE OF THE BIGGEST EXPORTERS IN THE COUNTRY. I THINK SAFETY HAS TO TAKE THEHIGHEST PRIORITY. MAKE THE CALLS BASED ON SAFETY.THEY ARE REALLY TRYING TO HELP THE COMPANY THROUGH THEPROCESS, MORE THAN TRY AND HURT.

THE COMPANY, WHICH IS HARD.LISA: THE BOEING PLANT– PLANES GOING FOR A DISCOUNT? GEORGE:THERE HASN'T BEEN A DISCOUNT. YOU COULD PROBABLY GET A DECENTPRICE ON IT. JONATHAN: THANK YOU SIR, THANK YOU VERYMUCH. THAT RIGHT THERE IS THE PROBLEM. YOU WILL GET A GOOD PRICE BUTYOU WILL GET A DISCOUNT. THAT IS ULTIMATELY WHAT THEYARE DOING. LISA: SPECULATION PRICES ARE GOING TOGO UP.

GEORGE FERGUSON PUSHING BACK ONTHAT JUST A BIT. IT IS A DUOPOLY. BOTH PRODUCTS THEY ARE HAVINGISSUES FULFILLING ORDERS TO BEGIN WITH. WHY DO WE HAVE THIS?JONATHAN: DOWN ANOTHER 1.1%. WE COULD DO THIS WITH THEBLOOMBERG BRIEF. DANI: THE NASDAQ STOCK MARKET HASSAID IT HAS RESOLVED CONNECTIVITY ISSUES. IT HAS DETERMINED THE ROOTCAUSE BUT DIDN'T GO INTO FURTHER DETAIL.THE MARKET STARTING AT 4:09 A.M.

NEW YORK TIME.ANY UNACKNOWLEDGED ORDERS HAVE BEEN CANCELED AND GIVEN BACK TOCUSTOMERS. DONALD TRUMP'S ECONOMICADVISERS INCLUDED THREE NAMES TO LEAD THE FEDERAL RESERVESHOULD HE BE ELECTED. IN A MEETING AT MAR-A-LAGO,THEY RECOMMENDED KEVIN WALSH FROM MORGAN STANLEY.HASN'T COMMITTED TO THE CANDIDATES BUT HASN'T SOURED ONJEROME POWELL, WHOSE TERM ENDS IN 2026.A TWO YEAR SLUMP COULD BE NEARING AN END THANKS TOSTOCKMARKET RECORDS.

THE WATCHING THAT SHOWED THEMOST POPULAR ROLEX MODELS WORK MOSTLY FLAT WITH THE MOST INDEMAND MODEL SHOWING DECLINES OF LESS THAN 1%. ROLEX'S GMT REMAINS AN OUTLIERWITH THE BLUE AND RED MODEL RAISING MORE THAN 2%.THAT IS YOUR BLOOMBERG BRIEF. JONATHAN:I SAW YOU STARING AT IT. LISA: I'M TRYING TO UNDERSTAND$20,000. HAVE YOU EVER HAD A $20,000WATCH? JONATHAN: I THOUGHT YOU NEVER SELLBITCOIN, I THOUGHT THAT WAS A.

SOMETHING — A THING. UP NEXT, YOU DON'T WANT TO TALKABOUT IT. INVESTORS SURRENDER. >> IT IS MORE ABOUT THETERMINAL RATE, I THINK IT HAS BECOME MORE INTERESTING.JONATHAN: THAT CONVERSATION UP NEXT.THIS IS BLOOMBERG. JONATHAN:IF YOU ARE JUST JOINING US, SESSION HIGHS ON THE S&P 500 UPBY 0.7%. THE BOND MARKET YIELDS ARE UPTO MATCH LAST WEEK. 4.29, BIG MOVE HIGHER, ANOTHER20 BASIS POINTS.

INVESTORS SURRENDER TO THEHIGHER FOR LONGER. >> WE HAD A JUNE START TO THECUTTING CYCLE FROM LAST YEAR. LOOKING FOR THREE CUTS THISYEAR. IT IS MORE ABOUT THE TERMINALRATE. I THINK HAS BECOME MORE INTERESTING. JONATHAN: THE FED'S NEXT RATE DECISION ONWEDNESDAY WITH SWAP PRICING AT FEWER THAN THREE RATE CUTS THISYEAR. LESS THAN THE MEDIAN PROJECTIONIN DECEMBER. JAMES CAMP SAYING THE HIGH RISKTO MARKET IS THE BOND MARKET.

FAILING TO PRICE IN A FED THATMAY NOT CUT AT ALL THIS YEAR? JAMES, LET'S GET INTO THIS,WHAT IS THE INFLATION THAT SUGGEST TO YOU THAT THEY WON'TBE DOING MUCH AT ALL? JAMES: GOOD MORNING. THE ISSUE WILL BE THE INFLATIONDATA, THE BASE EFFECT THAT WE TALKED ABOUT ARE GOING TO BEDIFFICULT. THERE IS MORE INERTIA TOINFLATION THAN THE FED IS GIVEN CREDIT FOR.FOR ME, WHEN I WORK AT THE GROWTH OF THE ECONOMY, THELABOR MARKET BEING RELATIVELY.

HEALTHY AND I LOOK AT INFLATIONNOT GETTING TO THE TERMINAL RATE, I DON'T SEE THE CURRENTMOTIVATION. WHAT IS THE FED POLICY COVER IFYOU WILL TO BE CUTTING RATES WHEN WHAT THEY ARE DOING SEEMSTO BE WORKING AND NOT MISSION ACCOMPLISHED? LISA:ON ONE HAND YOU COULD SAY THE FED IS GOING TO WAIT LONGER TOCUT RATES. THAT IS ACTUALLY GOING TO KEEPTHE LONG END OF THE CURVE CONTROLLED.THEY WILL GET INFLATION UNDER CONTROL.ON THE FLIPSIDE THEY SAY IT IS.

A TACIT AGREEMENT TO KEEPINFLATION AROUND 3%. THEY WILL CUT RATES BECAUSETHEY ARE LESS CONCERNED ABOUT IT GOING DOWN.WHICH DO YOU THINK IS MOST LIKELY BASED ON THECOMMUNICATION SO FAR? JAMES: THE TRUTH IS WE ARE IN A HIGHERINFLATION ECONOMY FOR THE NEXT DECADE.THE FED ACKNOWLEDGING THAT WOULD BE WISE.I THINK THAT WOULD GIVE THE FED SOME COVER TO CUT RATES.THE RATE ENVIRONMENT IS PUNITIVE FOR THE LOWER INCOME.THE CREDIT CARD DEBT, SEEING.

THOSE COSTS GO UP AND UP.THAT IS NOT ONLY AN ECONOMIC RISK, IT IS A POLITICAL RISK.THEY ARE SOME OF THE LARGEST CORPORATIONS THAT HAVE ISSUESAT 3%. IT IS A VERY INTERESTING CONUNDRUM.I WOULD LIKE TO SEE THE FED COME OFF THAT 2% RATE.I EXPECT SOMETIME IN THE SUMMER WE WILL BEGIN THAT DIALOGUE, IFYOU WILL. LISA: I THOUGHT THIS WAS REALLY NOTABLE, THEY CAME OUT SAYING ACENTRALLY — ESSENTIALLY THE NEUTRAL RATE HAS GONE BETWEEN4% AND 4.5%, IF IT SETTLES.

AROUND 3% AND THE ECONOMY HAS ASOFT LANDING. THE POLICY RATE SHOULD BE ATLEAST THREE POINTS HIGHER THAN THAT.IS THAT WE ARE LOOKING AT FOR NEUTRAL? JAMES:I THINK THE GROWTH RATES IN THE INFLATION RATE SUGGEST IT ISLIKELY. THE CONSEQUENCES FOR THE LONGEND OF THE CURVE IS THERE WILL BE LESS INCENTIVE TO CARRY, ITHINK THE LONG END OF THE CURVE IS PUTTING IN HIGHER LOWS IFYOU WILL. I DON'T KNOW IF WE REACH THAT5% WE HAD IN OCTOBER.

WE GET INTO 4.75 TYPE TENURE,THAT WILL START MOVING OFF THE SIDELINES BACK INTO THE BONDMARKET. JONATHAN:POSITIONING, YOU ARE 60-30-10. IS THAT WHY YOU WANT TO HAVE10%? JAMES: THE CASH OPTION IS TWO FOLD.I THINK THE CONSEQUENTIAL PART IS THE CORRELATION BETWEENRATES AND STOCKS, UNTIL THIS INFLATION THING IS SETTLED,BONDS AND STOCKS TRADE COINCIDENTALLY.WE DON'T WANT TO CONFLATE THE RISK. I THINK THE BOND MARKETLONG-TERM IS EXTREMELY.

ATTRACTIVE. THE BOND MARKET RETURNS WEREPREVIOUSLY GOOD. THE OTHER PART OF THE EQUATIONIS THOSE TERMINAL GROWERS, COMPANIES THAT PAY AND GROWYEAR AFTER YEAR ALSO HAVE A VERY GOOD TRACK RECORD. OBVIOUSLY WE ARE BEING PAID TOWAIT. JONATHAN: WHY NOT SHIFT EVEN MORE TOEQUITIES VERSUS BONDS? WHY RETAIN 60-30? JAMES:THE ONE THING WE HAVE TO BE MINDFUL OF IS THE YIELDS ANDTHE FIXED INCOME MARKET, AS.

GENEROUS AS THEY HAVE BEEN, ONTHE EQUITY SIDE, WE ARE WAITING FOR IT TO GET A LITTLE BITBETTER. WE ARE HAVING VERY GOOD EARNINGS GROWTH.THAT IS THE OBJECTIVE FUNCTION OF AN INCOME PORTFOLIO.ALL THINGS ARE BEING CHECKED IN TERMS OF BEING MORE BULLISH, WEWILL HAVE TO SEE SOME BROADENING. JONATHAN:WHAT WILL UNDERPIN THAT? JAMES: THE RECOGNITION FOR THERETIREES THAT THE S&P IS NOT THERE BENCHMARK.THAT INCOME GENERATION AND A LOT OF THE SECTORS OF THEECONOMY ARE DOING WELL.

YOU COULD BUY THESE COMPANIESALONGSIDE THE BOND AND THE CASH MARKET.THEY PROBABLY HAVE THE BEST INCOME IN 10 OR 20 YEARS. LISA: UNDERPINNING THIS RALLY ISOBVIOUSLY NVIDIA. I BELIEVE 4 P.M.EASTERN TIME, KICKING OFF THIS IS ARGUABLY THE MOST IMPORTANTEVENT OF THE WEEK. THE RALLY HINGED ON ARTIFICIALINTELLIGENCE, PERCOLATING TO THE REST OF THE ECONOMY? JAMES: LONGWAVE, YES, SHORT-TERM IT ISTHE MOMENTUM TRADE.

IT IS A HUGE PART OF WHAT ISGOING ON IN THE CAPITAL MARKETS. IT IS A BIG TOPIC. I'M VERY EXCITED ABOUT AI, WESEE APPLICATIONS ACROSS THE ECONOMY.THESE INNOVATIONS COULD BE GAME CHANGING.THE LAST COUPLE OF DECADES, IT HAS BEEN LANGUISHING.I WOULD POINT TO THE FED. THE COST OF CAPITAL IS HIGHER.COMPANIES HAVE TO FIGURE OUT HOW TO GET MORE EFFICIENT.NOW THAT LABOR MARKETS ARE TIGHTER.THESE TYPES OF TECHNOLOGY GIVE.

US A LOT OF HOPE LONG-TERM.FOR MARKETS, IT WILL BE AN EXCITING WEEK.THESE WILL BE NEAR-TERM CATALYSTS. I THINK THE LONG-TERMHOPEFULNESS IS WE WILL HAVE A SIGNIFICANT SHIFT INPRODUCTIVITY ENHANCEMENTS THAT IS ULTIMATELY WEALTH CREATING. LISA:HOW HAVE YOU USED ARTIFICIAL INTELLIGENCE?HAVE YOU GOTTEN RID OF HALF OF YOUR EMPLOYEES? JAMES:WE HAVE NOT BUT WE HAVE MORE THAN TRIPLED OUR BUSINESS.

SEPARATELY MANAGED ACCOUNTS,TECHNOLOGICALLY INTENSIVE. WE HAVE ALGORITHMS AND BOND GPTTHAT ALLOW US TO SEARCH, SOURCE, GET ACCURATE PRICES ONA MARKET, WHICH IS FIXED INCOME. IT HAS BEEN GROWING WITHPRODUCTIVITY ENHANCEMENTS ACROSS THE BOARD FROM TRADINGRESEARCH AND PORTFOLIO EXECUTION. JONATHAN:FINISHING UP THERE WITH AI LOOKING AHEAD TO THAT INVESTORCONFERENCE. 4:00 P.M. EASTERN TIME?.

LISA: THAT IS WHERE WE ARE AT.JONATHAN: JONATHAN: HE'S EXCITED, I AM TERRIFIED.I JUST DON'T TRUST THE LEADERSHIP ON THESE ISSUES ATALL. WHEN YOU HEAR CEOS SAY THINGSLIKE THREE DAY WORK WEEK, YOU WILL BE MORE PRODUCTIVE, ITHINK JOB LOSSES. THAT IS ALL I COULD THINK OF.LISA: THERE WILL BE JOB LOSSES ORINCREASE PRODUCTIVITY. THAT IS SORT OF WHAT HE ISARGUING THEY ARE ABLE TO DO. SKILLED VERSUS UNSKILLED, HOWBIG THAT GAP GETS.

YOU HAVE TO HAVE PEOPLE THATCOULD USE AI AS A TOOL. FOR PEOPLE THAT COULD USE THATTO TRANSFORM THE BUSINESSES. WHAT ABOUT ALL OF THE WORKERSWHO CANNOT? THEY HAVE THE SKILLS TO BE ABLETO USE THOSE TOOLS TO GET AHEAD. THAT TO ME IS PRETTYSIGNIFICANT. JONATHAN: I HAVE A DEEPER THEORY THATCAPITALISM WILL EAT ITSELF. JOB LOSSES WILL BE SO BIG, MUCHMORE DEPENDENT ON STIM AND THAT WILL BE THE END OF CAPITALISM.IT SHOULD BE A PURSUIT OF THAT. I COULD GO ON.I DON'T WANT TO MAKE YOU TOO.

DEPRESSED. >> INFLATION HAS BEEN MORESTUBBORN THAN EXPECTED. >> INFLATION IS AN INSIDIOUSTHING. IN THE SECOND HALF OF THE YEARWE SEE THE RATE CUTS HAPPEN. >> THE MARKET SEEMS CONTENT TOPRICE IN ENERGY RATE CUT, MAY BE THE REAL DEPARTURE POINT FORNORMALIZATION IS JULY BUT LATER PRAYED >> THE FED WILL BE SLOWTO LOWER INTEREST RATES. >> WE ARE SEEING THE MARKETFUNDAMENTALLY REASSESS THE OUTLOOK FOR FED CUTS FOR THISYEAR.

>> THIS IS BLOOMBERGSURVEILLANCE WITH JONATHAN FERRO, LISA ABRAMOWICZ ANDANNMARIE HORDERN. >> THE FIRST MESSAGE I RECEIVEDIN THE COMMERCIAL BREAK, I'M GOING BACK TO BED.WHICH I HAD A FEELING SOME PEOPLE WOULD HAVE THAT FEELING.AND MASSIVE WEEK AHEAD. A RECIPE FOR A BIG WEEK.NVIDIA, THE INVESTORS CONFERENCE LATER THIS MORNINGAND A SPRINKLE OF CENTRAL BANK DECISIONS. >> I CAN'T GET PAST THIS,CAPITALISM WILL EAT ITSELF AND.

ALL THESE INTERESTING THINGS. >> BECOMING MORE DEPENDENT ONTHE STATE FOR HANDOUTS. LISA: THIS IS THE REASON WHY SOME OFTHESE BIG STRUCTURAL CHANGES MATTER. THE FED AND THE BOJ, THECENTRAL BANK DECISIONS ARE THEY LOSING THE PLOT, ARE THEYLOSING THE NARRATIVE, ARE THEY LOSING THE ECONOMIC TRAJECTORYBEING TRANSFORMED BY OTHER FACTORS INCLUDING SOMETECHNOLOGICAL SHIFTS THAT WILL LEAD TO PERHAPS CAPITALISMEATING ITSELF. JONATHAN: THE FEDERAL RESERVE LOSING THEPLOT? NOT YET.

HAS THE MARKET, POSSIBLY?THE FED WAS LOOKING FOR THREE INTEREST RATE CUTS THIS YEAR.WE'VE HAD TO TAKE THE BULK OF THAT OUT AND DO IT REALLYQUICKLY IN THE SPACE OF A COUPLE OF MONTHS.IS IT TOO EARLY TO CHANGE THINGS OF THE FEDERAL RESERVE?WE GET A FEW MORE MONTHS LIKE WE'VE SEEN, UPSIDE SURPRISES,YOU THINK YOU'LL START TO HEAR A DIFFERENT MESSAGE COMING OUTOF CHAIRMAN POWELL. CHAIRMAN POWELL WAS LOOKING FORMORE CONFLUENCE ABOUT THE DISINFLATIONARY TREND.CLEARLY UNCOMFORTABLE IN THE.

NEWS CONFERENCE AT THE END OFJANUARY TO SAY WITH CONVICTION THE DISINFLATIONARY TRENDS WILLCONTINUE. THE THREAT TO THAT HAS BEENWHAT'S BEEN HAPPENING AND THAT TAILWIND IS TRYING TO PASS.WHETHER THEY TALK ABOUT THAT OPENLY IN PUBLIC QUITE SO MUCHREMAINS TO BE SEEN. LISA: THE CONCERN ABOUT NOT HAVINGSOME LARGER THESIS AND WHEN YOU'RE SO DATA DEPENDENT THEDATA IS NOISY AND MESSY WE GET SO MUCH OF IT IT'S HARD TO KNOWWHICH TO PICK. HOW DO YOU GIVE THE MARKET ASENSE OF FORWARD GUIDANCE WHEN.

YOU ARE SAYING WE DON'T KNOW.HOW DO YOU GET OUT OF THESE THINGS RATHER THAN JUST BESUBJECT TO THE WHIMS — THE WINDS IN DIFFERENT PLACES.FUNDAMENTALLY A POLICY SHIFT AT THE WORLD'S MOST IMPORTANTCENTRAL BANK. JONATHAN: I DON'T THINK THEY'RE GOING TOHELP THEM THIS WEEK. THEY ARE ALMOST CONSTRAINED BYTHAT BECAUSE THEY TOLD US TO LOOK AT THEM AND THEN IT'S NOTIMPORTANT I SAY THE MEDIAN. IMPLIES THREE CUTS BECAUSETHAT'S ALL THEY'RE REALLY DOING. EACH INDIVIDUAL HAS THE RIGHTVIEW ON THAT ULTIMATELY.

IN THE BEST CASE SCENARIO FORTHEM GOING FORWARD IF THEY DO THIS PIECE BY PIECE WE MIGHT BEGETTING CLOSER TO REDUCING INTEREST RATES. I WOULD GO BACK TO THE FED, THECONDITIONS TODAY CUT INTEREST RATES AND THEN TALK ABOUT THENEXT DECISION FURTHER DOWN THE ROAD. WE HAD THE AGGRESSIVETRANSPARENCY OF CENTRAL BANKS. WE EXPECT THEM TO OFFER US THISROADMAP NOT FOR THE NEXT FEW MONTHS BUT THE NEXT 24 MONTHS,WE WANT TO KNOW WHERE THE RATES ARE NOW.ULTIMATELY WHERE THE THINK THE.

NEUTRAL RATE IS. LISA:THEY DON'T. >> THINK ABOUT WHERE WE ARE NOW.THEY HAVE RATES UP TO 5.5%. INFLATION SURPRISING TO THEUPSIDE A LITTLE BIT. WE'VE SEEN DISINFLATION.HOW CAN THEY SAY WE ARE SIGNIFICANT RESTRICTIVE. LISA:THIS IS THE QUESTION. IF THEY DON'T HAVE ANY CLUE ANDTHEY ARE NOT NECESSARILY GOING TO BE ABLE TO GUIDE BECAUSETHEY DON'T HAVE A CRYSTAL BALL AND THEY DON'T KNOW WHAT THERATE IS. LET'S SAY THEY CUT ONCE, WEHEARD FROM THE CEO OF BARCLAYS.

USUALLY WHEN YOU START YOUSTART. HOW DID THEY COMMUNICATE THAT,HOW DO THEY KNOW THAT. AND WHEN TO THE FINANCIALCONDITIONS BECOME A TOOL FOR THAT TRANSMISSION. IF JAY POWELL SAYS THIS ISABSOLUTELY GOING TO MOVE THE OPPOSITE DIRECTION AND KEEP USHIGHER FOR LONGER. STOCKS ARE GOING TO TAKE A HIT.THEY JUST AREN'T NECESSARILY GOING TO EXECUTE THAT RIGHT NOW.I THOUGHT THAT WAS PERFECT. >> EQUITIES ON THE S&P.POSITIVE BY 0.8% ON THE S&P 500.

IN THE BOND MARKET YIELDS JUSTAGGRESSIVELY HIGH THROUGH LAST WEEK. STILL 430 ON THE 10 YEAR. COMING UP THIS HOUR, MONICADESCENDS ON WHERE SHE THINKS STOCKS HAVE TO RUN. ISAAC BOLT AND SKI ON TARIFFSFOR CHINESE EV'S. IN THE FORMER FED ECONOMISTCLAUDIA LOOKING AHEAD TO WEDNESDAYS BANKRATE — FED RATEDECISION. THE STOCK MARKET HITTING AHEADOF THE DECISION. MONICA SAYING WE NEED TOACKNOWLEDGE THE STRONG START TO.

THE YEAR WITH THE S&P 500 NOTONLY A FEW PERCENT AWAY FROM THE 2024 PRICE TARGET BUT ALSOARGUING FOR MORE SELECTIVITY AND BEING THOUGHTFUL IF YOU'RESTILL SITTING ON TOO MUCH CASH. WE BELIEVE STOCKS WILL MAKE NEWHIGHS. MONICA JOINS US IN NEW YORK.GOOD MORNING TO YOU. NEW HIGHS IN THIS EQUITY MARKET.TALK TO ME ABOUT HOW YOU PUT CASH TO WORK? MONICA:THE CHALLENGE HAS BEEN CERTAINTY.THE FED IS NEVER GOOD TO TELL US WHAT THE PATH WILL LOOK LIKESO THE CHALLENGE BECOMES WHAT.

DO I DO, DO I WAIT FORCERTAINTY. ANYONE WHO TRIED THAT HASMISSED OUT. WE'VE ADVOCATED TO CLIENTS JUSTLOOK AT WHAT WE CAN SEE, EARNINGS REFLECTING.THE OTHER 493 DOWN LAST YEAR. WE HAVE A MODEST INFLATIONARYENVIRONMENT PROBABLY SOME CUTS AT SOME POINT.I DON'T THINK IT NEEDS ANOTHER 25% RALLY BUT IS THE PATH TOSAYING 5% OR 6% FROM HERE. JONATHAN:HOW WOULD YOU PLAY THAT? IS THERE A SECTOR PREFERENCE INANY WAY SHAPE OR FORM? MONICA:.

WE WILL SEE THE BROADENING YOUHAVE TO GO OUTSIDE THE MAGNIFICENT SEVEN.I THINK IT DEPENDS WHERE YOU ARE STARTING FROM. IF YOU DON'T HAVE ENOUGH EQUITYBUYING ABROAD, IF YOUR OVER LEVERED TO TECH AND THAT'S WHENYOU START LOOKING TO THINGS I MIDCAP, VALUATIONS ARESIGNIFICANTLY LOWER. LISA: I WAS LOOKING AT YOUR NOTES ANDIT WAS AMAZING BECAUSE THERE IS THIS CALL FROM ALL DIFFERENTFINANCIAL ADVISORS SAYING GET OUT OF CASH, ROTATE OUT YOU AREGOING TO MISS OUT.

WE TALKED LIKE KEEPING A BUFFER.WHAT IS THE BUFFER? >> IT DEPENDS ON WHAT YOURGOALS ARE. YOU HAVE TO JUST HAVE A PLAN.CASH IS FELT GOOD. I'VE SEEN BALANCES GO 20 OR 30%PLUS IN THE PORTFOLIO. IT COMES DOWN TO WHAT IS MYPLAN TRYING TO WORK TOWARDS A 10% BUFFER?I WOULD ALSO ARGUE YOU LOOK AT WHAT THE MARKET IS GIVING YOU.IF YOU ARE REALLY THAT SCARED OF GOING INTO EQUITIES AND RISKASSETS I WOULD SAY TO PLATO IN AND BY PROTECTION.SPEND A LITTLE BIT OF THAT CASH.

JUST TO KEEP YOU INVESTED. >> THE WINNERS HAVE ONE A LOT.THE LOSERS HAVEN'T GONE ANYWHERE.YOU START LOOKING AT THE WINNERS.DO YOU PILE ON OR DO YOU SORT OF SAY THERE'S MORE DOWNSIDERISK HERE. >> WE DID SEE SOME ROTATION OUTOF JAPAN INTO AREAS THAT LOOKED CHEAP LIKE CHINA. I GOT THAT, BUT IF YOU AREHEAVILY LEVERAGED TO THE U.S. FROM A RISK ASSET STANDPOINT INJAPAN HAS BEEN ON INVESTED IN.

FOR A DECADE, WE NEED TO DIP INIS A LONGER-TERM BET. I DO THINK THERE'S A REASON TOOWN JAPAN. 25% UNDER ONE TIMES BOOK VALUEWHICH SEEMS KIND OF CRAZY. YOU OF POLICY SHIFTS COMING,THAT DOESN'T HAPPEN OVERNIGHT. >> WE'VE BEEN TRYING TO WORKOUT WHAT HAPPENS TO JAPANESE EQUITIES IF YOU DON'T GET THISMOVING THE YEN. WE'VE HAD FIVE DAYS OF WEAKNESSGOING INTO THIS DECISION. JUST A LITTLE BIT OF SCENARIOANALYSIS WHAT WOULD HAPPEN GOING FROM 130, 120.WHERE DOES THAT LEAVE EQUITIES?.

MONICA:CLEARLY A MORE CHALLENGING BACKDROP.SOME CLIENTS TRYING TO HEDGE OUT THE CURRENCY EXPOSURE.AGAIN I THINK THAT'S WHY THE JAPAN CALL CAN BE A ONE MONTHOR TWO MONTH TRADE. WE HAVE TO SAY INTERMEDIATE TOLONGER-TERM AND I THINK JAPAN LOOKS RELATIVELY MOREINTERESTING. LISA: TAKING A STEP BACK ON WHETHERTHERE'S A SHIFT GOING ON UNDER THE SURFACE.WE SAW THIS WITH COMMODITY STOCKS OUTPERFORMINGDRAMATICALLY AND IT MAKES ME.

WONDER WHETHER WE ARE AT THEPRECIPICE OF RE-INFLATING OF GOODS AND WHETHER YOU SEE THATFROM THE INCREASE IN ACTIVITY MET ONLY IN JAPAN BUT ON SOMEDEGREE THE MARGINS OF CHINA AND THE REST OF THE WORLD.DO YOU LEAN INTO THAT OR DO YOU SEE THAT IS SOMETHING THAT HASA SELF-LIMITING ASPECT TO IT? MONICA:WE THINK YOU COULD SEE BRENT MID 80'S TO LOW 90'S.IT DOES SUGGEST A BIT HIGHER FROM HERE AND PROBABLYSUPPORTED FOR ENERGY EQUITIES. THAT WAS THE ONE SECTOR THATDID NOT DO WELL.

I THINK YOU COULD SEE SOMEREBALANCING, THERE'S ALWAYS THIS STRUGGLE FOR PEOPLE WHOWANT TO GET ON BOARD WITH THE EV REVOLUTION AND YOU REALIZEWE STILL NEED OIL IN THE NEAR TO INTERMEDIATE TERM ESPECIALLYAS WE FIGURE OUT WHAT THAT TRANSITION LOOKS LIKE.BORROWING SOME BIG GEOPOLITICAL SHOCK.FROM AN INFLATIONARY STANDPOINT IT'S GOOD TO BE A LESS OF ARISK. LISA: I'M WANTING TO KNOW YOUR TAKEON THE POINT MADE EARLIER, KICKING OFF THE SHOW WITH THISTHEME WHERE HE THINKS NVIDIA'S.

CONFERENCE IS GOOD TO BE MOREIMPORTANT THAN JAY POWELL'S SPEECH.DO YOU THINK THAT'S TRUE, ESPECIALLY IN SOME WAYS THE FEDCAN TELL US ALL THAT MUCH BECAUSE THEY DON'T HAVE ACRYSTAL BALL. MONICA: IT'S PROBABLY TRUE FOR THE FEDTHIS WEEK. YOU WOULD SEE SOME ROTATION OUTOF SOME OF THESE NAMES THAT ARE SO HEAVILY OWNED.I THINK THEY'LL BE PRETTY POSITIVE.YOU'LL HOPEFULLY HEAR SOME COMMENTARY ABOUT HOW THIS ISNOT JUST A MEDIA STORY, IT'S A.

BROAD STORY FOR THE S&P, I KNOWUS A JP MORGAN, IT'S A HUGE PART OF OUR CONVERSATIONS ANDHOW WE CAN BECOME BETTER PEOPLE EYES ARE DUTCH ADVISORS ANDMORE EFFICIENT. — ADVISORS AND MORE EFFICIENT.WE WILL STILL BE HERE NEXT WEEK. >> GOOD TO SEE YOU.MONICA DESCENDS OUT. LOOKING FOR THE WINNERS IN THELOSERS IN THE S&P 500. SUPER MICRO COMPUTER UPYEAR-TO-DATE. NVIDIA UP, BOTTOM OF THE PILETESLA AND BOWING. TWO STOCKS IN A BAD PLACE THISYEAR.

>> BOWING IT'S ONE CATASTROPHEAFTER ANOTHER AND TESLA BECAUSE THERE'S A REAL CHANGE IN THEIDEA AROUND ELECTRIC VEHICLES. DID YOU READ ABOUT THE CEO WHOLEFT AFTER THE DISASTER, I WAS READING ABOUT THE RESALE VALUEOF ELECTRIC VEHICLES. IT'S VERY MINIMAL. THE BATTERY ONLY EXISTS FOREIGHT YEARS. SO IF IT'S ONLY EIGHT YEARS AMESS THE BULK OF THE VALUE IN THE CAR YOU HAVE TO REPLACE IT.YOU DON'T GET THE SAME RESALE VALUES WITH AN ENGINE ANDPARTS, THIS TO ME IS A.

SIGNIFICANT ISSUE. >> NO CONFIDENCE AROUND BATTERYDEGRADATION AT ALL TRYING TO WORK OUT WHAT THAT SECONDARYMARKET SHOULD BE. FOUND THE WEEKEND REALLYFRUSTRATING. I WAS THINKING BACK TO HOW THEMEDIA COVER THE FORMER PRESIDENT BEFORE AND IT ALWAYSANNOYED ME AND THEY REPEATED IT AGAIN THIS WEEKEND.THE COMMENTS ABOUT A POSSIBLE BLOODBATH OF THE FORMERPRESIDENT DIDN'T WIN THIS ELECTION.YOU ALWAYS HAVE TO MENTION THE.

CONTEXT UNDER WHICH THOSECOMMENTS WERE MADE. IT'S NOT FOR ME TO TELL YOU HOWYOU SHOULD VIEW IT. WHAT ANNOYED ME WAS NOT ONLYTHE ABSENCE OF ANY MENTION OF THE AUTO INDUSTRY BUT THEFAILURE TO RESPOND TO THE POLICY BEING MENTIONED IN THEADDRESS BY THE PRESIDENT — THE FORMER PRESIDENT, TALKING ABOUTUP TO HUNDRED PERCENT TARIFF ON AUTOMAKERS OUT OF CHINA INMEXICO. SO YOU HAVE TO START THINKINGABOUT THE POTENTIAL FOR THAT POLICY TO BECOME REAL AND NOTJUST STAY THERE BUT MAY BE.

SPREADING.THE WEEK JUST TOTALLY FAILING TO FOCUS ON THE POLICY AND JUSTGO WITH THE CLICK BAIT OF THE HEADLINE AND JUST GAVE ME ASENSE WE COULD REPEAT THE SAME MISTAKES WE MADE LAST TIMEAROUND COVERING THIS PRESIDENT. LISA: YOU KNOW HOW I FEEL.I COMPLETELY AGREE WITH YOU. LET'S TALK ABOUT THE POLICY,WHY ARE WE FOCUSING ON THE NOISE AND THE THEATER OF IT,LET'S MOVE ON. LISA: JUST — JONATHAN:THE HEADLINE HERE WAS THE POTENTIAL 100% TARIFF AND THENTHE OTHER STUFF.

THAT'S HOW YOU SHOULD DO IT.EQUITIES RIGHT NOW ON THE S&P 500 ABOVE 0.8%.HERE'S YOUR BLOOMBERG BRIEF WITH DANI BURGER. DANI:PRESIDENT BIDEN PREPARING THE TOUGHEST EVER POLLUTION LIMITSON AMERICAN CARS TO ACCELERATE EV SALES.THE EPA WILL FINALIZE THE LIMITS IN THE COMING DAYS.THAT WILL HELP THE U.S.-MADE TO PARIS CLIMATE AGREEMENTCOMMITMENTS. IT'S A POLITICAL BALANCING ACT.BIDEN IS TRYING TO COURT VOTERS.

IN THE SWING STATE OF MICHIGANINCLUDING AUTOWORKERS ARE OFTEN UNEASY ABOUT THE QUICKTRANSITION TO EV. APPLE IS IN TALKS TO RUNGOOGLE'S GEMINI AI INTO THE IPHONE. THE COMPANY'S ARE IN NEGOTIATIONS TO LET APPLELICENSE GEMINI. FOR YEARS GOOGLE HAS PAID APPLEBILLIONS OF DOLLARS TO LET IT BE THE DEFAULT SEARCH ENGINE ONIT SAFARI WEB BROWSER. THE COCO RALLY SHOWS NO SIGNSOF SLOWING, IT'S DOUBLED IN LESS THAN THREE MONTHS AND ISTRADING AT A RECORD HYBRID WEST.

AFRICAN CROPS HAVE BEENBATTERED BY DISEASES AND EXTREME WEATHER.THE RALLY ACCELERATING AHEAD OF EASTER. NOW THE PRICE SEARCH IS STARTING TO BITE AT THE GROCERYSTORE. THAT'S YOUR BLOOMBERG BRIEF.JONATHAN: TRUMP DOUBLING DOWN ON CHINESETARIFFS. >> WE ARE GOOD TO PUT A 100%TARIFF ON EVERY SINGLE CAR BUT COMES ACROSS THE LINE.THEY ARE KNOCKING TO BE ABLE TO SELL THOSE. IF I GET ELECTED.

IF I DON'T IT'S GOOD TO BE ABLOODBATH. THAT'S GOOD TO BE THE LEAST OFIT. JONATHAN: LIVE FROM NEW YORK CITY, GOODMORNING. ♪ JONATHAN:JUST YOU AND ME THIS WEEK. TITE TOOK A WEEK OFF, GONE ONVACATION. AMH IS THREATENING TO TAKE THEWHOLE WEEK OFF. LISA: THEY ARE ALL LEAVING US.JONATHAN: SKIPPING THE FED MEETINGAPPARENTLY.

SESSION HIGHS THIS MORNING,THIS MONDAY MORNING. AFTER SOME VERY MILD LOSSESLAST WEEK DOWN ABOUT 0.1%. THE BOND MARKET YIELDS JUSTABOUT UNCHANGED. UNDER SURVEILLANCE THISMORNING, TRUMP DOUBLING DOWN ON CHINESE TARIFFS. >> IF YOU ARE LISTENINGPRESIDENT XI, HE UNDERSTANDS THE WAY IDEAL PRAYED WE WILLBUT A 100% TARIFF ON EVERY SINGLE CAR THAT COMES ACROSSTHE LINE AND YOU ARE KNOCKING TO BE ABLE TO SELL.IF I GET ELECTED.

IF I DON'T GET ELECTED IT'SGOOD TO BE A BLOODBATH — THAT'S GOOD TO BE THE LEAST OFIT. IT'S GOOD TO BE A BLOODBATH OFTHE COUNTRY. JONATHAN: THE REPUBLICAN NOMINEETHREATENING TO SLAP A 100% TARIFF ON MEXICAN MADE CHINESEEV'S IF HE WINS IN NOVEMBER. THE DIRECTOR OF POLICYRESEARCH, ISAAC BEFORE WE GET INTO HOW THIS WOULD WORK INPRACTICE, TALK ABUT HOW THIS IS PLAYING IN DETROIT, MICHIGAN. >> I THINK WE NEED TOUNDERSTAND THIS IS A VERY LONG.

GENERAL ELECTION.IT WILL BE THE LONGEST GENERAL ELECTION EVER, WE STILL OF 231DAYS OF THIS LEFT. I THINK WE NEED TO UNDERSTANDWHY THE FORMER PRESIDENT WAS SAYING WHAT HE SAID.THIS WAS TO PLAY IN OHIO AND MICHIGAN.GOING THROUGH THE LOCAL PAPERS IN MICHIGAN AND OHIO WHICH ISWHAT WE DO, IT'S PLAYING PRETTY WELL IN MICHIGAN.I THINK ONE OF THE THINGS WE WILL SEE IN THE NEXT FEW MONTHSIS BOTH OF THESE CANDIDATES TRYING TO GO AFTER UNIONWORKERS.

SO THIS TRUMP COMMENTARY ON100% TARIFF ON EV'S THIS IS SOMETHING MEANT TO PLAY FOR THEMANUFACTURING BASE IN MICHIGAN AND OHIO.IT'S THE SAME REASON YOU SEEN PRESIDENT BIDEN CHANGE HIS TONEAND BECOME MORE AGGRESSIVE ON THE U.S. STEEL.THESE ARE ALL POLITICALLY MOTIVATED DYNAMICS.YOU CAN HAVE REAL MARKET INNOVATIONS. >> IT LOOK AT THEIR GOING ATTHINGS SLIGHTLY DIFFERENTLY. AT THE MOMENT THEADMINISTRATION LOOKING AT THE.

SUPPOSE A NATIONAL SECURITYTHREAT. THE PRESIDENT SAYING — THEFORMER PRESIDENT SAYING WE WILL PUT 100% TARIFF EVEN IF THEYARE MADE AT THE BORDER IN MEXICO.CAN YOU TELL ME HOW THAT WOULD WORK IN PRACTICE?CAN THEY BASICALLY DISCRIMINATE AGAINST ONE MANUFACTURER FROMONE COUNTRY IN MEXICO? >> THERE ARE ALWAYS HURDLESHERE AND THERE IS A CHASM BETWEEN RHETORIC FROM THECAMPAIGN TRAIL AND THE REALITY OF IMPLEMENT AND POLICY BUTCUTTING THROUGH THE NOISE I.

CAUTION CLIENTS DOING ANYTHINGTAKES A WHILE YOU'VE GOT TO EXPECT YOU HAVE SIX TO NINEMONTHS BACK AND FORTH BEFORE ANYTHING TANGIBLE WENT INTOPLACE. BUT THE SIMPLE ANSWER IS YESTHE PRESIDENT HAS WIDE AUTHORITY ON THE POWERS TOIMPLEMENT TARIFFS THAT WOULD ACCOMPLISH THIS GOAL INPRACTICE. OF COURSE YOU CANNOT DO THISWHERE YOU HAVE A SINGULAR PUSHBACK ON THE TARIFF SIDE YOUWOULD HAVE TO CREATE A BROADER FRAMING AND BROADER STATUS WORK.ALL OF THAT CAN BE DONE SO WE.

HAVE TO TAKE SERIOUSLY THESETHREATS WHERE HE CAN DO MANY OF THE THINGS HE'S IMPLEMENTINGEVEN THOUGH IT'S CAN IT TAKE A LITTLE BIT OF TIME FROM WHENAND IF HE GETS BEHIND THE RESOLUTE DESK AGAIN. LISA:WASN'T IT LORI WHO SAID IT'S LIKE STARING AT THE SUN.BUT ESSENTIALLY YOU MENTIONED THIS BEFORE THIS ELECTION CYCLEIS LIKE STARING AT THE SUN. IT HAS SIGNIFICANT IMPLICATIONSAND ITS BLINDING IN THEIR ABILITY TO RESPOND TO IT.HOW SERIOUSLY ARE YOUR CLIENTS TAKING CONCEPTS LIKE THIS?.

THE IDEA OF 100% TARIFF BYSOMEONE WHO COULD POTENTIALLY GET THE POWER TO DO THAT. >> THERE IS STILL SOMEDISBELIEF THAT IT'S GOING TO BE BIDEN VERSUS TRUMP TO BEGINWITH. AND THEN THERE IS THE OUTRIGHTDISMISSAL OF THE TARIFFS, I THINK A VAST MAJORITY OFCLIENTS ARE FOCUSING ON WHAT TRUMP WOULD MEAN FOR ADEREGULATORY PERSPECTIVE. FOR HEALTH CARE, THEY ARE JUSTPUSHING ASIDE THE RISK FOR THE TARIFFS.I THINK THIS IS IN PART BECAUSE.

OF WHAT WE SAW LAST TIME.THE FIRST TWO YEARS OF THE TRUMP ADMINISTRATION IS FOCUSEDON TAX CUTS. IT WAS ALL OF THE GOOD FOR THEMARKET. AND THEN WE BEGAN FOCUSING ONTARIFFS. THIS TIME WILL BE DIFFERENT.TARIFFS WILL BE A DAY ONE FOCUS AND THAT SOMETHING TRYING TOPUSH ACROSS IN TERMS OF UNDERSTANDING WHAT WILL HAPPENIF TRUMP IS THE WINNER OF THIS ELECTION.I THINK THE MARKET HAS TO COME TO TERMS WITH WHAT THAT MEANSNOT JUST GEOPOLITICALLY BUT FOR.

SUPPLY CHAINS. >> ONE THING THAT KEN ROGOFF OFHARVARD SAID, WAS THAT BOTH TRUMP AND BIDEN WERE INCREDIBLYPROTECTIONIST PRESIDENTS. SOME OF THE MOST EVER. HAS THAT BEEN ACCURATELY PRICEDIN? THE FACT THAT BOTH ARE LIKELYTO HAVE PRETTY PROTECTIONIST POLICIES? >> THE SIMPLE ANSWER IS I DON'TTHINK THE MARKET IS PREPARED FOR EACH ONE OF THESECANDIDATES TO TRY AND OUT CHINA.

HAWK THE OTHER.AGAIN WE HAVE 230 PLUS DAYS OF THIS TO GO AND WE WILL HAVE AFAIR AMOUNT OF TRADING ACTION IN PARTICULAR.I DON'T THINK THE MARKET IS PREPARED FOR THAT.I DON'T THINK THEY ARE PREPARED FOR WHAT'S IMPORTANT HERE WHICHIS FORMER PRESIDENT TRUMP GOING AFTER THE ON SHORING AND NEARSHORING THEMES THAT WE'VE SEEN OVER THE PAST FEW YEARS. HE'S GOING AFTER — THIS COULDALSO LEAD TO COOLER RELATIONS WITH TAIWAN, COOLER RELATIONSWITH CANADA.

THERE'S A MYRIAD IMPLICATIONS.THE MARKETS LOOKING PAST IN PART BECAUSE THEY ARE NOT SUREIT STILL CAN BE BIDEN VERSUS TRUMP, AND THEY THINK TRUMP ISJUST TALKING ON THE CAMPAIGN TRAIL TO GET VOTES ANDIMMEDIATELY DISMISS THESE POLICY GOALS WHEN HE'S IN THEWHITE HOUSE BECAUSE OF THEIR INFLATIONARY AND ECONOMICIMPACT. I'M NOT SOLD ON THAT. JONATHAN:WONDERFUL TO CATCH UP WITH YOU. CONTENT AND SEQUENCING.GOING BACK TO THE FIRST TERM OF THE FORMER PRESIDENT.ISAAC WAS TALKING ABOUT THIS.

THE FOCUS WAS ON TAX CUTS ANDTHEN LATER ON IN THE TERM THE BACK HALF WAS FOCUSED ON THETRADE WAR. THE FOCUS THIS TIME AROUND ISGOOD TO BE ON TARIFFS ALMOST FROM DAY ONE BASED ON THECAMPAIGN IS GOING. LISA: HE'S SAYING PEOPLE ARE JUSTSAYING IT'S CAMPAIGN RHETORIC AND ARE THESE EVEN TO BE THECANDIDATES. THERE ARE PEOPLE STILL DOUBTINGTHAT. JONATHAN: STRUGGLING TO MOVE ON FROMTHAT, OF ARE THE CANDIDATES WE HAVE RIGHT NOW.COMING UP, THE BRILLIANT.

CLAUDIA JUST AROUND THE CORNER. JONATHAN:QUITE A START TO THE WEEK, EQUITIES ALL-TIME HIGHS ANDPOSSIBLY AGAIN, POSITIVE BY 0.8% ON THE S&P 500, NASDAQ UPBY 1.2%, TAKING BACK SOME LOSSES FROM THE LAST COUPLE OFWEEKS. WE WERE ONLY DOWN BY 0.1% LASTWEEK AND SOMETHING LIKE A QUARTER OF 1% THE WEEK BEFORE.LISA: DOES THAT EVEN COUNT AS A DIP,DOWN LESS THAN 1% OVER TWO WEEKS?THE BIGGEST WEEKLY FALL OF THE.

YEAR, BUT THIS IS VIABLE.JONATHAN: EQUITIES UP, UP, AND AWAY INTHE FACE OF WEAK PRICING IN THE BOND MARKET. 10-YEAR BACK INTO THE 4.30%'S,BOTH THOSE YIELDS HIGHER LAST WEEK BY MORE THAN 20 BASISPOINTS OFF THE BACK OF HOTTER THAN EXPECTED CPI DATA, BACKEDUP BY AN UPSIDE SURPRISE ON PPI. LISA:NO ONE IS TALKING ABOUT RETAIL SALES, AND IF THEY ARE, THEYARE TALKING ABOUT THEM NOT BEING SO BAD.AND WHEN DO WE START SEEING.

THIS NARRATIVE SHIFT ON THEMARGINS AWAY FROM YIELDS ARE JUST RISING FOR THE RIGHTREASONS? WHICH IS GROWTH. AT WHAT POINT DOES IT BECOME,YIELDS ARE RISING BECAUSE INFLATION IS STILL TOO SICKEVEN AS GROWTH ACCELERATES? THAT HAS GOTTEN THROWN OUT.DONOVAN POPPED RETAIL SALES — JONATHAN:TWO MONTHS AGO, RETAIL SALES SPOKE TO THAT. TWO MONTHS AGO.LISA: AND SOME OF THE CREDIT CARDDATA OUT OF SOME OF THE BANKS, IT IS NOT CONCLUSIVE.THIS HAS BEEN A MADDENING CYCLE.

FOR ANYONE WHO WANTS DEFINITIVETRADES WITH CONVICTIONS. THIS IS NOT THE TIME YOU'REGOING TO GET THEM. THIS IS WHERE WE ARE, AND THEFED WILL PROBABLY REFLECT THAT WEDNESDAY. JONATHAN:DOLLAR-YEN 1.49. SOMEONE TELL THE JAPANESE YENIT IS A HISTORIC MEETING TOMORROW. WE HAVE SEEN MILD YEN WEAKNESSOVER THE LAST FIVE SESSIONS. STILL BASICALLY IN AND AROUND1.50, GOING INTO POTENTIALLY THE FIRST INTEREST RATE HIKE IN17 YEARS. LISA:.

YOU CAN FEEL THE FRUSTRATION OFALL FX STRATEGISTS SAYING WAKE UP, DO SOMETHING.THIS WILL BE A MASSIVE MOVE, YET NOTHING.ALL OF THESE MOVES ARE COMING AFTER GREAT EXPECTATIONS FOR SOLONG THAT PEOPLE HAVE BAKED IT IN.I AM STRUCK BY HOW MUCH WE ARE SEEING STASIS IN THE EUROVERSUS THE DOLLAR. THESE ARE GOING TO BE LONG-TERMSHIFTS, BUT RIGHT NOW, IS ANYTHING CHANGES WITH –CHANGING RELATIVE TO EXPECTATIONS? JONATHAN:NOT MUCH.

ISRAELI PRIME MINISTER BENJAMINNETANYAHU COMING BACK AT SENATOR CHUCK SCHUMER.PM NETANYAHU: WHAT HE SAID IS INAPPROPRIATE.IT IS INAPPROPRIATE TO GO TO A SISTER DEMOCRACY AND FIGHT ORREPLACE THE ELECTED LEADERSHIP THERE.WE ARE NOT A BANANA REPUBLIC. JONATHAN:SCHUMER CALL FOR ELECTIONS TO REMOVE THE CURRENT ISRAELIGOVERNMENT, LABELING NETANYAHU AN “OBSTACLE TO PEACE.” NETANYAHU SAYING THAT ANOTHERGROUND OFFENSIVE IN ROUGH IS.

THE ONLY WAY TO ELIMINATEREMAINING HAMAS BRIGADES — IN RAFFA IS THE ONLY WAY TOELIMINATE REMAINING HAMAS BRIGADES.IT IS UNCLEAR AS TO WHAT HAPPENS IF NETANYAHU IS HELLBENT ON CROSSING IT. LISA: WHAT IS UNCLEAR IS HOW MUCHTHIS RHETORIC IS COMING AS A PLEA TO THOSE IN THE DEMOCRATICPARTY WHO SAY WE KNOW, WE ARE ON IT, WE WANT TO DISTANCEOURSELVES FROM THIS CONFLICT TO SOME DEGREE.THAT IS GOING TO BE ONE OF THE HARDEST PARTS OVER THE NEXTCOUPLE OF WEEKS, HOW MUCH DO.

YOU DISTANCE POLICY FROMPOLITICS WHEN IT COMES TO RHETORIC COMING OUT FROMSCHUMER, FROM BIDEN, AND WE WERE JUST HEARING WITH RESPECTTO THE FORMER PRESIDENT TRUMP AND WHAT HE SAID ABOUT TARIFFS?JONATHAN: THE RHETORIC HAS SHIFTEDBIG-TIME. NEXT STORY, APPLE AND ALPHABETCONSIDERING UNTIL, BUT WHAT ABOUT GOOGLE+ GEMINI AI TOPOWER NEW IPHONE FEATURES? THERE IS A PLAN TO LET APPLELICENSED GEMINI AI MODELS FOR NEW CAPABILITIES AS SOON ASTHIS YEAR, WHICH WOULD BUILD ON.

APPLE AND GOOGLE'S YEARS LONGPROPRIETORSHIP OF THE SAFARI SEARCH ENGINE.THE POTENTIALLY BLOCKBUSTER A IDEAL THREATENS TO DRAW MOREANTITRUST SCRUTINY. WE STARTED WITH THIS STORY,TALKED ABOUT THREE DIMENSIONS TO THIS. ANTITRUST. HOW MUCH APPLE ISBEHIND GIVEN THEY NEED A PARTNERSHIP WITH GOOGLE. AND THE POTENTIAL THAT YOUADOPT SOME OF THIS TECHNOLOGY, THESE ADVANCEMENTS COME ASEARLY AS SEPTEMBER AND PUT IT.

IN A NEW PHONE.SOME OF US HAVE BEEN SITTING ON THE SIDELINES WAITING FOR NEWIPHONE WORTH UPGRADING TO COME AND THIS COULD BE THE YEAR.LISA: THEY ARE NOT AS FAR ALONG ASPEOPLE PREVIOUSLY THOUGHT, LOOKING AT THAT, THEY SHIFTEDTHEIR STAFF THAT HAD BEEN DEVOTED TO THE APPLE CARD TOTHE AI INITIATIVE. IS THERE A RACE TO GET TO THESEPTEMBER FINISH LINE IN TANDEM WITH SAMSUNG?SAMSUNG WILL UNVEIL SOMETHING AROUND THE SAME TIME WITHARTIFICIAL INTELLIGENCE.

IS THERE SOME SORT OFIMPERATIVE TO HAVE THAT KIND OF TIMELINE AND NOT HAVE THE APPLELUXURY OF WAITING AND THEN JUST DOING IT BETTER?TO ME, THAT IS THE SIGNAL HERE THAT IS SIGNIFICANT. JONATHAN:WHAT IS THE RISK THAT I OR OTHERS GO TO SAMSUNG OR THAT WEDO NOT UPGRADE AT ALL IF THEY DO NOT DO THAT? BOTH? LISA:I WOULD ARGUE BOTH. IF THERE REALLY ISTRANSFORMATIVE TECHNOLOGY THAT SOMEHOW MAKES IT A DIFFERENTEXPERIENCE, THEN WHY WOULDN'T PEOPLE GO TO THE SAMSUNG?WHY WOULDN'T THEY GAIN MARKET.

SHARE THAT APPLE CANNOT AFFORDTO WHEN IPHONE STILL IS THE BREAD-AND-BUTTER OF THEORGANIZATION? JONATHAN: BECAUSE THE ECOSYSTEM IS SOSTICKY. CAN YOU IMAGINE THE PAIN OFSWITCHING TO SOMETHING ELSE? LISA:I HAVE FAMILY MEMBERS AGAINST THE FOREST ECOSYSTEM AND THEYBOW OUT — THE FORCED ECOSYSTEM AND THEY BOW OUT AND THEY MOVETO SAMSUNG, AND THE TEXTS ARE SO IRRITATING. JONATHAN: FOMC EXPECTED TO HOLD RATESSTEADY WEDNESDAY AND MAYBE.

FIRST CUT POTENTIALLY IN JUNE.INVESTORS LOOKING AT THE SO-CALLED DOT PLOT.JAY POWELL SAYING EARLIER THIS MONTH OF THE CENTRAL BANK ISNOT FAR FROM AN INITIAL CUT AS IT LOOKS FOR A BIT MOREEVIDENCE INFLATION IS MOVING TOWARDS 2%.FORMER FED COLUMNIST CLAUDIA SAHM JOINS US.WONDERFUL TO CATCH UP WITH THE PEER YOU SAID MAYBE A CHANCEFOR CHAIRMAN POWELL THIS WEEK TO MAKE SURE EVERYONE STAYSAROUND THE THREE IMPLIED IN THE MEDIAN DOT. START WITH THE DOTS.WHEN CAN WE, AND HOW CAN WE,.

GET AWAY FROM THIS? CLAUDIA:IT IS HOPELESS AT THIS POINT. EVERYONE WANTS SOME SCRAP OFCERTAINTY, AND THEY LOOK AT THE FED AND HAVE A MISGUIDED BELIEFTHAT THE FED IS GOING TO GIVE THAT TO US.THE FED WOULD LIKE A SCRAP OF CERTAINTY ABOUT WHAT THEY'REGOING TO DO LATER THIS YEAR. MY HOPE FOR THIS MEETING, IT ISTHE MOST BORING MEETING EVER WITH TRADERS FALLING ASLEEP ATTHEIR DESK. WE KNOW THEY ARE NOT GOING TOCUT THIS WEEK, AND WE BETTER NOT SEE ANYTHING MATERIALCHANGE ON THAT SUMMARY OF.

ECONOMIC PROJECTIONS, INPARTICULAR, ARE WE LOOKING AT LIKELY THREE CUTS OR TWO CUTS?JAY IS ABSOLUTELY — MY READING OF WHAT HE HAS SAID, HE IS ALET'S CUT IN JUNE. HE HAS GOT TO KEEP IT TOGETHER.IF THOSE DOTS MOVE TOWARDS JULY, WHICH I THINK THAT IS NOTLIKELY, OR THE LONGER AN ESTIMATE OF WHERE THE RATESSHOULD BE, THE INFAMOUS R STAR, EITHER OF THOSE COULD GETPEOPLE ANTSY AND PUSH THE SUCCESSIONS TO JULY. LISA:I AM A LONG-STANDING HATER OF THE DOT PLOT. I LOVE THE WAY YOUWRITE.

I AM CURIOUS WHETHER YOU THINKIT IS A LIABILITY THAN THE FEDERAL RESERVE IS NOTOPERATING ON SOME SORT OF OVERARCHING THESIS OF WHERE THEECONOMY IS RIGHT NOW, WHETHER IT IS A HOTTER AND HIGHERINFLATION REGIME OR IF IT IS GOING TO REVERT BACK TOSOMETHING MORE PRE-PANDEMIC? CLAUDIA:MY EXPECTATIONS ON WHAT THE FED IS ON TRACK TO DO DID NOTCHANGE LAST WEEK. WE HAD A SECOND DISAPPOINTINGREAD ON INFLATION. WE ALSO HAVE THE SECONDDISAPPOINTING READ ON RETAIL.

SALES.AND POWELL HAS TALKED ABOUT THE RISK OF THE TWO SIDES OF THEMANDATE, THOSE RISKS ARE COMING INTO BALANCE.AND WE SAW THAT LAST WEEK. NAILED THE BALANCE OF, YEAH,INFLATION HAS BEEN NOT SO GOOD — CLEARLY FROM FEBRUARY, ITLOOKS LIKE A FLUKE, AND THOSE RETAIL SALES WERE NOT GOODNUMBERS. I DID CONSUMER SPENDING AT THEFED. THOSE ARE NOT GOOD NUMBERS. THAT SHOULD MAINTAIN THECRITICAL COMING INTO BALANCE. LISA:WIRE THOSE NOT GOOD NUMBERS?.

— WHY ARE THOSE NOT GOODNUMBERS? WHY IS THAT IMPORTANT? WE HEARD THIS MORNING THAT ITWAS NOT THAT BAD, IT DECELERATION BUT STILL QUITE ABIT OF SPENDING AND YOU CAN TELL BALANCE SHEETS ARE NOTTERRIBLE. WHY AREN'T THEY TERRIBLE?CLAUDIA: IN TERMS OF THE RETAIL SALES,THESE WERE DECLINES, NOT GOOD NUMBERS.YES, IT DECELERATION IS WHAT WE WERE LOOKING FOR, BUT WE KNOWIF WEBSITE IS THE ACCELERATION WORRIES ON INFLATION.

IT IS KIND OF LIKE THE SNOWBALL.IT IS A BIG ECONOMY AND TAKES WORK TO GET IT GOING, THEN YOUCOULD END UP WITH A REALLY BIG SNOWBALL THAT IS CRUSHING USAND BRINGING DOWN THE ECONOMY. SO ONCE YOU START GOING IN ADIRECTION, THERE IS A DANGER THAT YOU BUILD UP SPEED IN THATDIRECTION FOR THE ECONOMY, FOR THE SPENDING SIDE, THAT WOULDBE CONTRACTION IN SPENDING, A RECESSION IF WE GET THERE.ON THE INFLATION SIDE, IF THAT NOT JUST STICKS BUT GETS GOING,THAT IS A BIG PROBLEM, TOO. SO THEY HAVE THE POTENTIAL FORTWO BIG PROBLEMS, WHICH SPEAKS.

TO DON'T DO ANYTHING. JONATHAN:I WOULD LOVE YOUR THOUGHTS ON INFLATION. CPI PRINT RELATIVE TOEXPECTATIONS, LIKEWISE ON PPI. WERE THERE COMPONENTS OF THATTHEY GAVE YOU ENCOURAGEMENT OR MAYBE EVEN MADE YOUUNCOMFORTABLE ABOUT THE PATH AHEAD? WHAT WERE YOU FOCUS ON?CLAUDIA : ENCOURAGEMENT, WE SAW INJANUARY A PULLBACK, SO THE PIECE THAT WAS IMPORTANT IN CPIAND PCE, THAT WAS SOMETHING FLUKEY IN ALL LIKELIHOOD.THE DISCOURAGING PART IS WHAT WE HAVE GOTTEN INTO IN THE CORESERVICES OUTSIDE OF SHELTER,.

THE SUPER COURT, THE STICKIESPART IS MOTOR VEHICLE INSURANCE, AND THE HOMEOWNERSINSURANCE IS IN THERE, TOO. THAT IS NOT ABOUT THE FED.MOTOR VEHICLE IS A KNOCK ON EFFECT OF THE USED CAR PRICES,PRICES HIGH AND MAKING UP FOR REPAIR COSTS.THERE IS NOT RELIEF ON THE HORIZON FOR THAT PIECE UNTILLATER IN THE YEAR. THAT IS AN UNFORTUNATE PART OFINFLATION FOR US TO LATCH ONTO, THE FED TO WAIT ON, YET IT ISIN THEIR. IT IS MAKING A CONTRIBUTION.IT AIN'T GOING AWAY FOR A.

LITTLE WHILE. JONATHAN:YOU KNOW THE INNERWORKINGS OF THE FEDERAL RESERVE MORE THANMOST. HOW DO YOU THINK THEY WILL DEAL WITH THAT AROUND THETABLE THIS WEEK, AND HOW WILL THE CHAIRMAN ADDRESS IT IN THENEWS CONFERENCE? CLAUDIA: THE GOAL AND THE NEWSCONFERENCES TO GET MARKETS TO STAY WHERE THEY ARE.AND THE RARE MOMENT WHERE THE FED IS LINED UP WITH MARKETS,THIS JUNE CUT, IT IS FORCING A BALANCE OF RISK.IF WE DO NOT SEE RETAIL SALES MENTIONED IN THE STATEMENT,THEN THAT IS A SIGN THEY HAVE.

GOTTEN MORE HAWKISH.THERE ARE ALL THESE DETAILS UNDER INSURANCE, THAT IS WONKY.YET, IT GIVES TALKS — IF YOU LOOK AT THE TOP LINE, IT GIVESTHEM COVERAGE TO PUSH OUT TO JULY.I THINK THEY ARE GOING TO WIN. JULY IS MY BASELINE.SO IT IS THE MESSAGING, BUT THE FED KNOWS BETTER.THEY KNOW WHAT IS UNDER THEIR HOOD.IT IS A QUESTION OF, CAN THEY LOOK PAST IT OR ARE THEY GOINGTO GET ANTSY LIKE SOMETIMES THEY DO? JONATHAN:CLAUDIA, YOU ARE ONE OF THE.

BEST. THANKS FOR BEING WITH US.CLAUDIA SAHM THERE ON THE FEDERAL RESERVE.LOOKING AT THE DATA FROM LAST WEEK, IT IS NOT HOW WE WANTEDTHEM TO LOOK AT IT, IT IS HOW THEY ACTUALLY LOOK AT IT. LISA:AND IT MATTERS ALL ALONG WHAT THE COMPS ARE SHOWING AND HOWMUCH, STICKY INFLATION OR NOT. I SINCE FRUSTRATION FROMEVERYBODY, FEELS LIKE A VERY FRUSTRATED MORNING. JUST ME?JONATHAN: IS IT STILL Q1? LISA: [LAUGHS]I GET THE SENSE PEOPLE WANT CERTAINTY AND THEY ARE NOTGETTING IT AND FEELING.

FRUSTRATED. JONATHAN:LOOKING AT MARKETS, I WAS JUST THINKING, I CANNOT BELIEVE ITIS STILL Q1. SERIOUSLY. FEELS SORT OF DEEP INTO THESECOND QUARTER ALREADY.TO YOUR POINT ON THE ELECTION, IT IS EIGHT MONTHS AWAY. LISA:SO HOW ARE WE GOING TO EVOLVE THIS CONSIDERING IT WILL BELITERALLY THE SAME STORY, YES, STILL THE SAME CANDIDATESRUNNING. JONATHAN: AND WE WILL SHARE WHAT WASPUBLISHED, DESPITE STRONGER CORE INFLATION, WE DO NOTEXPECT A SIGNIFICANTLY HAWKISH.

FOMC MEETING WEDNESDAY, BASECASE INDICATING 75 BASIS POINTS OF CUTS THIS YEAR.EVEN IF WE ARE WRONG AND THEY IMPLY 50 BASIS, JAY POWELL ISLIKELY TO DEVILISHLY EMPHASIZE THE FED IS ON TRACK TO CUTRATES THIS YEAR DUE TO SUB 3% YEAR ON YEAR CORE PCE INFLATIONAND EVEN IF ACTIVITY HOLDS UP. THAT IS THE VIEW, THAT EVENTHOUGH THE DATA HAS CHANGED SOMEWHAT, CHAIRMAN POWELL HASNOT. LISA: THEY WANT A CUT. BOTTOM LINE IS THEY WANT TOMOVE, AND AS CLAUDIA SAHM SAID, MAYBE THEY GET ANTSY. JONATHAN:THAT DECISION WEDNESDAY.

OTHER STORIES, HERE IS YOURBLOOMBERG BRIEF WITH DANI BURGER. DANI:NASDAQ STOCK MARKET SAYS IT HAS RESOLVED CONNECTIVITY ISSUES.PREMARKET TRADING WAS DISRUPTED FOR MORE THAN TWO HOURS.NEST SAYS IT DETERMINES THE CAUSE BUT DID NOT GO INTODETAIL. DATA SHOWS NO TRADES PRINTED ONTHE NASDAQ GLOBAL MARKET STARTING AT 4:09 A.M.NEW YORK TIME. THEY SAY ANY UNACKNOWLEDGEDORDERS ON THE SYSTEM HAVE BEEN CANCELED AND PUT BACK TOCUSTOMERS.

BARCLAYS LOOKING TO EXPANDRELATIONSHIPS WITH SOVEREIGN FUNDS AND PRIVATE EQUITY.THE CEO OFFERED MORE DETAIL EARLIER IN THE PROGRAM. >> I THINK IT IS AN IMPORTANTPART OF THE SHIFT HAPPENING, AND IT IS HAPPENING BECAUSEPREVIOUSLY IN THE INVESTMENT BANKING SIDE, WE WERE WORKINGWITH CORPORATIONS. AND SINCE THEN, WE STILL WORKWITH CORPORATIONS IN A VERY BIG WAY, BUT IN ADDITION, YOU HAVEFINANCIALS AND SOVEREIGN WEALTH FUNDS.SO THE GROWTH OF CONCENTRATED.

POOLS OF CAPITAL MAKES ITIMPORTANT FOR THAT FULL RELATIONSHIP. DANI:LAST MONTH, BARCLAYS ANNOUNCED A $2.5 BILLION COST-CUTTINGDRIVE AND REORG TO BOOST PROFITS.MARCH MADNESS GAMES ARE SET. MILLIONS OF FANS ARE GOING TOTRY THEIR HAND AT QUICKLY PREDICTING 67 COLLEGEBASKETBALL GAMES FOR THE PERFECT BRACKET. GOOD LUCK.DEFENDING CHAMPIONS YUKON ARE ONE OF THE TOP SEEDS, ALONGSIDEPERDUE, HOUSTON, NORTH CAROLINA. NO FAN HAS EVER COMPLETED APERFECT BRACKET.

NCAA SAY THE ODDS OF DOING SOEQUATE TO ABOUT ONE IN NINE BILLION.THAT IS YOUR BLOOMBERG BRIEF. JONATHAN:WE WILL DO WHAT WE DO EVERY SINGLE YEAR.TRY TO MAKE THE MIDYEAR RE-EVAL GO A LITTLE BETTER. LISA:IS THAT SO? JONATHAN: UP NEXT, ALL EYES ON NVIDIA. >> WHEN YOU LOOK AT THEGODFATHER OF AI, IT IS THEIR WORLD AND EVERYONE ELSE'SPAYING RENT. FLEX THE MUSCLES FOR JENSEN.JONATHAN:.

HE IS LIKE A WIZARD PUTTING ONA CLOAK. THE JACKET GOES ON, TALK UP THESTOCK ANOTHER $200 BILLION. JUST LIKE THAT.THAT CONVERSATION UP NEXT. THIS IS BLOOMBERG. JONATHAN:FED DECISION JUST AROUND THE CORNER, ON WEDNESDAY.TWO-DAY MEETING STARTS TOMORROW FOLLOWING A DOJ DECISION WHICHMAY INCLUDE THE FIRST INTEREST RATE HIKE SINCE 2007.'BRAMO, DRUMMING THINGS UP. LISA: SO EXCITING. JONATHAN:.

JUST SAYING PRICE ACTION IS NOTHAPPENING GOING INTO IT. DOLLAR-YEN AT 1.49.ELSEWHERE, SOME PRICE ACTION. EQUITY FUTURES UP BY .75%.A NICE RALLY, TAKING BACK SOME LOSSES OF LAST WEEK.YIELDS HIGHER BY TWO BASIS POINTS.STARING DOWN THE BARREL OF THE HIGHEST YIELDS OF THE ARE SOFAR. 4.32%. LISA:LARGER THAN EXPECTED INFLATION, AND RESILIENCE WITH RESPECT TOTHE ECONOMY AND EARNINGS. BOTH OF THOSE TOGETHER, ITRAISES THE QUESTION, HOW ARE.

RATES GOING TO GO DOWN THATMUCH IN THE NEAR TERM? JONATHAN: IT IS NOT JUST ABOUT CENTRALBANK DECISIONS THIS WEEK, BUT IT IS ALSO ABOUT THIS, ALL EYESON NVIDIA. >> WHEN YOU LOOK AT THEGODFATHER OF AI, NVIDIA, WE WILL SEE IT ON MONDAY, EVERYONEELSE'S PAYING RENT. IT IS A GRAND ENTRANCE BUT ALSOA SHOWCASE, TO FLEX THE MUSCLES. WE BELIEVE IT IS A 1995 MOMENT,THIS AI REVOLUTION. JONATHAN: NVIDIA'S ANNUAL AI CONFERENCEKICKING OFF WITH SKYHIGH EXPECTATIONS, CALLING IT NVIDIAWOODSTOCK.

WEDDING ON NEW ANNOUNCEMENTSFOR PRODUCTS AND MORE. APPLE IS PLAYING CATCH UP,SOURCES SAYING APPLE IS IN TALKS TO BUILD GOOGLE PLUSGEMINI AI ENGINE INTO THE IPHONE.BLOOMBERG'S ALEX WEBB JOINS US FOR MORE.NVIDIA CONFERENCE FIRST, WHAT ARE YOU EXPECTING FROM JENSENLATER TODAY? ALEX: EXPECTING TO SEE WHAT THE NEXTGENERATION OF CHIPS LOOKS LIKE AND WHAT THEY CAN DO. THE B100 WHICH PEOPLE KNOW WASCOMING BUT THE NATURE OF THE.

INNOVATIONS AND IT WILLDETERMINE HOW OPTIMISTIC INVESTORS ARE ABOUT IT MEETINGTHIS INCREDIBLY VICIOUS TARGETS THAT THEY ARE — INCREDIBLYAMBITIOUS TARGETS THEY ARE SETTING FOR IT.IT IS TRADING AT A HEFTY PREMIUM.THE 35 TIMES FORWARD EARNINGS AT THE MOMENT, NOT MASSIVELYOUT OF CULTURE WITH NAMES LIKE MICROSOFT. A BIT OF A DISCOUNT TO AMDBECAUSE AMD' EARNINGSS ESTIMATES HAVE NOT GONE UP TOMEET EXPECTATIONS OF WHERE THE.

STOCK IS UP.WHAT WILL BE FASCINATING TO SEE IS HOW SIMILAR IT IS TO ANAPPLE EVENT. FROM A TRADING PERSPECTIVE.OFTEN WITH AN APPLE EVENT, YOU SEE PROFIT-TAKING.BUY THE RUMOR AND SELL THE NEWS. THERE HAS BEEN A LITTLE BIT OFSELLOFF IN NVIDIA OVER THE PAST FEW DAYS.SOMETIMES GOOD NEWS DOES NOT DELIVER THE POP IN THE SHARESYOU MIGHT EXPECT BECAUSE PEOPLE THINK IT MAY NOT GET MUCHBETTER THAN THIS RIGHT NOW SO YOU SEE A BIT OF A SELLOFF.SO THAT WILL BE FASCINATING.

JONATHAN: STRONG POINT.TALK ABOUT AN APPLE EVENT, FANTASTIC REPORTING THAT APPLEIS IN TALKS TO BUILD GOOGLE PLUS GEMINI AI ENGINE INTO THEIPHONE. WE HAVE COMMENTARY FROM A GOODFRIEND, DAN NIEVES AT WEDBUSH, CALLING IT MAJOR FOR GOOGLE TOGET INTO THE APPLE ECOSYSTEM. I WANT YOUR OPINION, WHAT THISSAYS ABOUT APPLE AND WHERE THEY ARE IN THIS RACE. ALEX:I FLOATED THIS IDEA TO SOMEONE AS A POSSIBLE COLUMN IDEA,MAYBE YOU SHOULD WRITE THAT APPLE SHOULD OPEN UP SIRI TOONE OF THESE OTHER AI ENGINES,.

AND THE RESPONSE WAS, APPLEWOULD NEVER DO THAT. OF COURSE, THIS LOOKS TO BEWHAT THEY ARE DOING. IT SHOWS TWO THINGS.FIRST, THAT APPLE IS NOT AS CLOSE TO HAVING ITS OWNCAPACITY TO GEMINI, CHATGPT4 AS IT WOULD LIKE, AND ALSO HOWSIGNIFICANT AND IMPORTANT SEES THIS AS A COMPETITIVEDIFFERENTIATOR. IF YOU'RE GOING TO HAVE PHONESOVER THE NEXT ONE TO THREE YEARS WHERE YOU CAN ENGAGE WITHAND AI ENGINE CONVERSATIONALLY, THAT MIGHT BE THEDIFFERENTIATION POINT.

APPLE, CLEARLY IT IS ADEFENSIVE MOVE TO ENSURE THEY HAVE THIS TECH IN THEIRDEVICES, AND THEY'RE HANDING OVER WHAT COULD BE VERYSIGNIFICANT PART OF THAT PROPOSITION TO WHAT IS,FRANKLY, IN MOBILE EQUATION SYSTEMS, A MEANINGFUL CAPACITORUSING GOOGLE. LISA: HOW DO THEY GET AROUND THE IDEATHAT A LOT OF REGULATORS WILL NOT LIKE THE FACT THAT TWO OFTHE BIGGEST COMPANIES IN THE WORLD ARE TEAMING UP TOA BEEVEN BIGGER? ALEX: IT IS SLIGHTLY DIFFERENT FROMTHE SEARCH THING.

WITH SEARCH, IT WAS PUSHINGPEOPLE INTO GOOGLE PLUS ECOSYSTEM, SO GIVING GOOGLE THEOPPORTUNITY TO SERVE OUT ON THAT BASIS.WE DON'T FULLY KNOW HOW THIS IS GOING TO PUSH PEOPLE TOWARDS ASIMILAR THING. THE WAY THAT AI IS BEINGMONETIZED IS STILL KIND OF BEING WORKED OUT, VERY MUCH ACLOUD PRODUCT AT THE MOMENT. PEOPLE PROVIDING THE SYSTEMSARE MAKING MONEY FROM SELLING THE CLOUD SERVICES.SO IT IS A SLIGHTLY DIFFERENT CASE FROM GOOGLE BEING THEDEFAULT SEARCH ENGINE IN IOS,.

DOES NOT MEAN REGULATORS WILLNOT LOOK AT IT, BUT IT IS NOT, EXCUSE THE PUN, APPLES FORAPPLES. JONATHAN: I WANT TO TALK ABOUT GEMINI.IT HAS NOT BEEN A GOOD START FOR GOOGLE UNVEILING ANDROLLING THIS OUT. I GET THAT APPLE IS BEHIND, BUTIS THIS SOMETHING THEY WANT TO GO NEAR AT THIS POINT? ALEX: CONCERNS WITH GEMINI ARE VERYMUCH IN THE GENERATION PEACE, AND THAT WAS THE COLOSSAL FLUBTHAT THEY SAID THEY NEEDED TO FIX AND RECOGNIZED IT WAS AMISTAKE.

THIS STAGE, IT LOOKS LIKE, ANDWE DO NOT FULLY KNOW, AND THIS DEAL IS NOT SIGNED, IT ISREPORTED THERE WERE ALSO TALKS WITH OPENAI. BUT TO BE ABLE TO ENGAGE WITHIT, ASK QUESTIONS, PERHAPS SEARCH THE WEB, THE IMAGE PIECEIS NOT ENTIRELY SET. WE NEED A LITTLE TIME TO SEE IFTHIS COMES INTO A PRODUCT AND IF THEY AND FEEL SUCH A DEAL,IT WOULD BE IN JUNE, AND THE OPERATING SYSTEM AND NOT BEUNTIL SEPTEMBER. THAT GIVES GOOGLE TIME TO FIXPROBLEMS. JONATHAN:.

THANK YOU, SIR.LOOKING AHEAD TO THE NVIDIA DEVELOPERS CONFERENCE LATERTODAY, TALKING A PARTNERSHIP BETWEEN APPLE AND ALPHABET.HERE IS A WIN FOR US, SURVEILLANCE ON TOUR TOMORROW,I FANTASTIC LINEUP, TAKING THE SHOW LIVE TO THE BANK OFAMERICA TRADING FLOOR. THE CEO AND THE HEAD OF RATESSTRATEGY. THE HEAD OF ECONOMICS, AND AWHOLE LOT MORE ACROSS THREE ASSET PROGRAMS, STARTING AT6:00 EASTERN TOMORROW MORNING. LISA: SO LOOKING FORWARD TO IT,ESPECIALLY GIVEN THE FACT THAT.

WE'RE HEADING INTO SUCH AMASSIVE WEEK AND TO GET A BIRDSEYE VIEW ON THE COMPONENTSOF AN ECONOMY AND FLUX. JONATHAN: GETTING THE WEEK STARTED IN ABIG FASHION. LIVE FROM NEW YORK CITY THISMORNING, GOOD MORNING, THIS WAS “BLOOMBERG SURVEILLANCE.” ♪

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