Retail Earnings, Shutdown Countdown | Bloomberg Surveillance 02/27/2024

>> IT'S VERY MUCH A >> LATE90'S TYPE MARKET. >>MACROECONOMIC DATA IS NOTBEING CONSIDERED A SERIOUSLY AS THE LIKES OF NVIDIA RESULTSWHICH TO ME IS BONKERS. >> ON THE RIGHT SIDE REALLYHAVEN'T BROKEN ENOUGH TO DO THE DAMAGE EVERYONE THINKS. >> THE LONGER THE FED KEEPSRATES HIGHER, THE HIGHER WE SEE THE GROWTH. >> THE FED IS IN NO RUSH TOREMOVE THE POLICY FIRMING THEY PUT IN PLACE OVER THE PAST TWOYEARS.

>> THIS IS BLOOMBERGSURVEILLANCE WITH JONATHAN FERRO, LISA ABRAMOWICZ ANDANNMARIE HORDERN. >> LIVE FOR AUDIENCE WORLDWIDE,GOOD MORNING. THIS IS BLOOMBERG SURVEILLANCE.TOGETHER WITH ANNMARIE HORDERN I'M JONATHAN FERRO.EQUITY LITTLE CHANGED. BIG COUPLE OF DAYS FOR U.S.RETAILERS KICKING THINGS OFF THIS HOUR.THEN ONTO TOMORROW TJX AND THEN BEST BUY.CROSSING THE BLOOMBERG RIGHT NOW.

>> A HOST OF EARNINGS THROUGHTHOSE NUMBERS. WHAT PEOPLE LOOKING AT RIGHTNOW IS THE POTENTIAL FOR SOME INDICATION OF WHETHER THE BLIPWE GOT IN JANUARY WAS JUST A BLIP OR SOMETHING GREATER.WHAT THEY SEE IS BELOW ESTIMATES.THEY SEE A FULL YEAR OF TOTAL SALES VERSUS AN ESTIMATE OF85.6 BILLION. JONATHAN: MACY'S UP NEXT.SPEAKING OF THE RETAILERS LET'S TALK ABOUT THE SUPERMARKETCHAINS AND THE TROUBLE BETWEEN KROGER AND ALBERTSONS FACING ACHALLENGE VERY PREDICTABLE.

CHALLENGE IN WASHINGTON DC.WASHINGTON SAYS WILL HURT THE CONSUMER. IF THE FTC IS SUCCESSFUL INBLOCKING THIS MERGER WOULD BE HURTING CONSUMERS AND HELPINGSTRENGTHEN MULTICHANNEL RETAILERS SUCH AS WALMART,AMAZON, COSTCO. >> THE VERY COMPANY THE FTC ISSAYING THEY WANT TO TRY AND RAIN IN.THIS IS JUST NO SURPRISE. ADD KROGER AND ALBERTSONS TO ALIST OF COMPANIES AND POTENTIAL TIEUPS THE FTC IS GONE AFTER.WHAT WE SEEN AS A MORE ROBUST.

ENGAGEMENT FROM THIS FTC ANDDOJ WHEN IT COMES DOWN TO CRACKING DOWN ON ANTITRUST.BLOOMBERG INTELLIGENCE SAYS IT'S A COIN TOSS.50% WHETHER OR NOT THIS GOES THROUGH. >> IF WE CANNOT MAKE THISHAPPEN AND MAKE JETBLUE SPIRIT HAPPEN HOW ON EARTH WILL WEMAKE CAPITAL ONE DISCOVER HAPPEN ANYTIME SOON. LISA:EVERYONE'S WATCHING TO SEE IF THIS WILL BE ALLOWED.TWO GROCERY STORES THAT MIGHT GO OUT OF BUSINESS VERSUS THEWALMARTS AND AMAZONS AND IF.

THEY ARE CITING CERTAIN THINGSLIKE BEING ABLE TO NEGOTIATE BETTER WITH LABOR UNIONS ANDTHINGS OF THAT NATURE WE ARE TALKING ABOUT A GAME CHANGERFOR THE M AND A SPACE. THEY ARE ALREADY SEEING A LOTOF COMMENTARY SAYING HOW MANY COMPANIES, HOW MANY BERKSHIREHATHAWAY'S ARE NOT INTERESTED IN MAKING KIND OF ACQUISITIONSBECAUSE WHO IS GOING TO GET THROUGH. >> TALKING ABOUT BIGGER BEINGBETTER IN WASHINGTON. THEY TALK ABOUT BIG BEING BAD.I THINK WE TALK ABOUT SENATOR.

WARREN.SENATOR WARREN HAS COMPANY MAYBE EVEN ACROSS THE AISLE.LISA: — ANNMARIE: SENATOR JOSH HAWLEY ALSOYESTERDAY WHAT WE SAW RELEASING THIS LETTER, 13 LAWMAKERSJOINING SENATOR ELIZABETH WARNING — ELIZABETH WARRENABOUT DISCOVER. SENATOR WARREN SENDING A LETTERTO LLOYD AUSTIN ABOUT CONCERN OF ANY M&A IN THE DEFENSEINDUSTRIAL COMPLEX WHICH MAKE ME THINK THERE IS A SCOPE OFSECTORS SHE DOES NOT WANT TO SEE MERGING. LISA:.

THIS WAS THE GRANT OVER THEWEEKEND IN BRIEF. HERE'S THE QUESTION, HOW MANYOF THE BIG COMPANIES DOMINATING NOW ARE BENEFITING FROM THE MAND DAY THEY DID BEFORE AND HOW MANY COMPANIES ARE STRUGGLINGIN SMALL THAT CANNOT GET IN THE GAME. JONATHAN:MARK ZUCKERBERG AND META OVER THE WEEKEND. LISA:YOU HAVE TO CALL ME OUT? THERE'S THE INSTAGRAM ISSUE.THEY BUILT UP TICK BY TICK. WHAT'S KOSHER AND WHAT'S NOT.JONATHAN: STILL TRYING TO WORK IT OUT INWASHINGTON.

THERE SEEMS TO BE NO NUANCE INBETWEEN. EQUITY FUTURES ON THE S&P 500JUST ABOUT POSITIVE. YIELDS GOING ALMOST DOWN TOBASIS POINT. THERE IS SOME PRICE ACTION FORTHE EURO. WE WILL BE TALKING ABUT THAT IN25 MINUTES. THROUGH THE NEXT HOUR WE CATCHUP WITH KATRINA DUDLEY WITH THE U.S.EQUITY RALLY STOLEN — STALLING BREAD PRESIDENT BIDEN INVITESCONGRESSIONAL LEADERSHIP TO THE WHITE HOUSE TO AVOID AGOVERNMENT SHUTDOWN.

WE APPROACH ONE YEAR SINCE THECOLLAPSE OF SVB. GIVEN THE TOP STORY THIS HOURTHE EQUITY RALLY HITTING PAUSE. KATRINA FRANKLIN MUTUAL SAYINGIT'S TIME TO DIVERSIFY. THE PERCENTAGE OF THE MARKETREPRESENTED BY TECH STOCKS IS CLOSE TO 30% BUT ONLYREPRESENTS 20% OF THE EARNINGS. WE ARE BEARISH BUT WE DO THINKIT'S TIME TO DIVERSIFY WHETHER CHEAP EVALUATIONS WITH GROWTHPROSPECTS. KATRINA JOINS US NOW. LET'S GET INTO THIS.MY NUMBER ONE QUESTION, WHAT ON EARTH DO YOU DO IF YOU'VEMISSED THIS RALLY NOT JUST LAST.

YEAR BUT THIS YEAR AS WELL. >> IT'S NOT WERE ADVOCATINGTHAT YOU SUDDENLY DIVEST THE MAGNIFICENT SEVEN.I CAN SEE THIS WHEN YOU LOOK AT NVIDIA AND THE FACT THAT THEYBEAT REVENUE EXPECTATIONS. WHAT WE ARE SAYING IS WHYDIDN'T YOU GO SHOPPING IN THE 400 90 OTHER STOCKS THAT EXISTIN THIS MARKET. I THINK THE INTERESTING THINGIS WITH THE MAGNIFICENT SEVEN IT REALLY HASN'T BEEN — YOUHAVE NOT BEEN PAID TO BE A STOCK PICKER.

WITH THE 498 YOU GOT TO PICKYOUR STOCKS AND PICK YOUR POINTS AND YOU HAVE TO STARTDOING RESEARCH. I'VE BEEN A RESEARCH ANALYST MYENTIRE CAREER. >> THIS IS THE KEY FOR A LOT OFPEOPLE THEY ARE SAYING TIME TO GO INTO COMMITTEE LESS LOVEDSECTORS LIKE CONSUMER CYCLICALS. I'M LOOKING AT THESE COMING INDISAPPOINTED AND LOOKING AT THE RETAIL DATA FROM JANUARY.VERY DISAPPOINTING. DOES THAT GIVE YOU PAUSE TO GOINTO SOME OF THE CYCLICALS. KATRINA:WE ARE SEEING THIS IN SOME OF.

THE LOWER END CONSUMERS.SOMETHING LIKE A MCDONALD'S THAT CAME OUT SEEING THATPRESSURE. WHAT WE NEED TO SEE IS A LITTLEBIT OF THE WAGE INCREASE. WE ARE SEEING IN A SMALL AMOUNTOF WAGE INCREASE BUT WE NEED TO SOLIDIFY AND SHORE UP THATLOWER END CONSUMER. ONCE WE SHORE THEM UP I DON'TTHINK WE WILL SEE THIS WEAKNESS. I THINK WE CAN HAVE LESS OFTHIS DICHOTOMY BETWEEN THE MACRO STORY. >> THE GOOD NEWS BAD NEWS, THEREASON WHY AM GOING HERE IS.

YESTERDAY WE SAW YIELDS IN THETWO-YEAR GO TO ITS HIGHEST LEVELS SINCE NOVEMBER OF LASTYEAR CERTAINLY SINCE THE PREVIOUS FED MEETING AND YETSMALL CAPS OUTPERFORMED. TWO PEOPLE NOT CARE ANYMORE?KATRINA: WHY ARE THEY OUTPERFORMING?VALUATIONS ARE CHEAPER. YOU CAN GET ACCESS TO GREAT ENDMARKETS WITH MUCH MORE DISCOUNTED VALUATIONS.WE ARE ON SHORING AND THAT'S REALLY ACCELERATING AND YOULOOK AT WHAT'S HAPPENING IN CHINA, AND EVERYTHING IN TERMSOF REALLY CONCERNED ABOUT THAT.

GOING FOR YOUR DOMESTICALLYFOCUS SMALL CAPS MAKE SENSE FROM THAT PERSPECTIVE AS WELL.YOU'VE GOT SOME OF THE SMALL CAPS THAT ARE SAYING WHAT WEREALLY DON'T WANT TO KEEP RAISING DEBT.WE WILL START RAISING EQUITY POTENTIALLY AND SOLIDIFY THOSEBALANCE SHEETS. THEY ARE THE COMPANIES THAT CANDO, DAY BECAUSE THEY'RE SMALL ENOUGH. WE'VE GOT THINGS LIKE MCGRATH,YOU HAVE NO IDEA WHAT THEY DO BUT THEY WERE IN MOBILE OFFICESPACE IN CLASSROOMS. THE FTC.

DOESN'T SEEM TO BE WORRIEDABOUT THOSE TYPES OF COMPANIES BECAUSE THEY ARE SMALLER ANDWON'T GENERATE THE HEADLINES. JONATHAN:HAVE YOU EVER HEARD OF THE COMPANY, DONE. CAN YOU TALK ABOUT — THAT'SWHAT LISA WAS GETTING AT HERE. HOW INSULATED ARE WE AND WHYARE WE SO INSULATED IN A WAY THAT MAYBE WE WEREN'T THREE ORFOUR MONTHS AGO. KATRINA: IT'S THE TELEGRAPHING THAT'SBEEN THE DIFFERENCE. YOU LOOK AT WHAT THE FED ISCONTINUING TO TELL US, DATA.

DEPENDENCY AND WE ARE WATCHINGTHAT DATA. WE LOOK AT THESE TRIANGLESWE'VE TALKED ABOUT BETWEEN INFLATION AND GROWTH RATES ANDINTEREST RATES. IN TERMS OF INFLATION THAT'SCOMING UNDER CONTROL BUT WE THINK IT WILL BE SLOWER THANNORMAL AT THE RATE THE FED NEEDS.IT'S CONTINUE TO BE STRONG. THE FINAL THIRD LINK OF THATSTALL WHICH SAID WE ARE GOING TO BE PATIENT AND IF YOU LOOK– LISTEN THAT'S EXACTLY WHAT THEY'VE BEEN DOING.

>> WE REDUCE THE MAGNITUDE OFCUTS THERE. SOME OF THE BULLS OUT THEREHOPEFUL, SUPER CONSTRUCTIVELY HAD THIS HAND OVER FROM FEDDRIVEN MARKET TO AN EARNINGS DRIVEN MARKET. KATRINA: IF I HAVE A LOOK AT ANY KIND OFRATE CUTS WE ARE LOOKING AT A RATE CUT AS BEING MORESUPPORTIVE AND REALLY JUST SUPPORTING THE ECONOMY INSTEADOF A RATE CUT BEING IN RESPONSE TO VERY BAD DATA COMING OUT.I THINK IT'S A VERY DIFFERENT NARRATIVE AND THAT'S WHAT THENARRATIVE HAS SHIFTED TO.

IF WE GO BACK 18 MONTHS EVEN WEWERE TALKING ABOUT RECESSION FEARS AND RATE CUTS AS BEINGTHE OFFSET TO RECESSION. AND KIND OF MORE LIKE THEY CANTAKE THEIR PADDLE OFF THE ACCELERATOR. >> THE FED WILL GIVE A THINGSARE GOOD AND IF THINGS ARE BAD. MAYBE EVEN A LITTLE BIT MORE.SOME PEOPLE ARE SAYING EVALUATIONS AND THE RESTLOOKING MORE ATTRACTIVE. DO YOU THINK THE U.S.WILL RETAIN THE BASTION OF GROWTH AND OTHERWISESLOW-GROWING.

>> LET'S THINK ABOUT WHY THEU.S. IS THIS GROWTH ENGINE. I TALK ABOUT THE FACT IN THEUNITED STATES IT'S OK TO FAIL. IT IS ACTUALLY A BADGE OF HONORTO HAVE LAUNCHED THREE STARTUPS THAT DID NOT WORK.SO WE HAVE THIS CULTURE OF INNOVATION AND THAT IS WHAT HASDRIVEN US TO CREATE SO MANY LARGE CAP DOMINANT TECH PEERS.YES THEY WERE SUPPORTED BY, DAY BUT BY A LARGE YOU DON'T HAVETHAT OUTSIDE OF THE UNITED STATES.YOU HAVE SOME GOOD FRANCHISES BUT THERE ARE AREAS THAT ARE ALITTLE BIT WORRIED.

IF WE LOOK AT SOMETHING LIKE ANOVO NORDISK AND THE PERCENTAGE OF THE DAILY STOCK MARKETREPRESENTS IN JUST ONE STOCK IT'S MUCH MORE RISKY THAN FOREXAMPLE THE MAGNIFICENT SEVEN IN THE PERCENTAGE OF THE STOCKMARKET. ANNMARIE: THE RISKS OF THAT CONCENTRATIONIN THE UNITED STATES IS STILL QUITE LARGE.90% OF THESE COMPANIES IN TERMS OF THEIR CHIPS ARE TIED TOTAIWAN. KATRINA: I THINK WHAT WE ARE SEEING ASTHEY ARE ADDRESSING THOSE ALREADY.UNFORTUNATELY IT TAKES TIME BUT.

TIME WILL CURE THAT PROBLEM ISTHEY RESHORE MANUFACTURING BRAIN IF YOU TAKE A LOOK AT APROBLEM IF TIME CAN CURE YOUR PROBLEM YOU'VE GOT TO WAIT ITOUT. I THINK THAT'S WHAT WE ARE SEEING IN THOSE MARKETS. >> WAY TOO MUCH BULLISHNESS.JUST TO SET THINGS OLD LIMIT MORE BALANCE THIS MORNING.INFLATION RISKS ARE SKEWED TO THE UPSIDE GIVEN LOOSEFINANCIAL CONDITIONS. WHICH COULD KEEP IT HIGHER FORLONGER. HEARD THIS FROM MARCO LAST WEEKTHERE IS A RISK OF A NARRATIVE.

TURNING BACK FROM GOLDILOCKS TOSOMETHING LIKE 1970'S STAGFLATION. LISA:HE IS NOT ALONE AND IF YOU LOOK AT THE MARGINS NO ONE'S WILLINGTO SAY 1970'S BUT THEY SEE IT IN SOFTER WAYS.HOUSING PRICES TICKING UP WE ARE CONCERNED ABOUT THEBOTTOMING OUT OF THIS COMMODITY CYCLE.WE HEAR ABOUT ON THE MARGINS. IT BASICALLY EXPOSES YOU. >> ARE YOU SAYING YOU RECEIVESOME OF THE CRITICISM YOURSELF? LISA:NO ONE HAS EVER ACCUSED ME .

SKEPTICAL OF THE WORLD.JONATHAN: EQUITIES JUST ABOUT POSITIVE BY.1%. HERE'S YOUR BLOOMBERG BRIEF WITH DANI BURGER. DANI: THE U.S.FEDERAL TRADE COMMISSION HAS SUED TO BLOCK THE KROGERTAKEOVER OF ALBERTSON. THEY ARE ARGUING IT WOULDILLUMINATE COMPETITION AND LEAD TO LOWER WAGES AND HIGHER FOODPRICES. IT WOULD BE THE BIGGEST U.S.GROCERY DEAL IN HISTORY. KROGER AND ALBERTSON WOULD HAVE5000 STORES ACROSS THE COUNTRY. ONLINE TRAVEL COMPANY ATTEMPTSTO REVIVE GROWTH AND REGAIN.

MARKET SHARE.THE SEATTLE-BASED FIRM WILL CUT ABOUT 1500 JOBS ACROSS THEGLOBE WITH SOME AFFECTED EMPLOYEES NOTIFIED ON MONDAY.EARLIER THIS MONTH ISSUED A WEAKER THAN EXPECT THAT OUTLOOKFOR THE QUARTER. IT ALSO ANNOUNCED A LEADERSHIPSHAKEUP. ALPHABET SHARES FELL MOST 4.5%ON MONDAY AMID FEARS THE GOOGLE OWNERS MISSTEPS — MISSED STEPS.THE COMPANY PAUSE THE GOOGLE IMAGE GENERATION FEATURE AFTERCONCERNS OVER INACCURATE DEPICTIONS OF RACE.THEY MAY FUEL A PERCEPTION THEY.

ARE IN UNRELIABLE SOURCE FOR AIAND MAY CREATE AN OPENING FOR COMPETITORS. >> SO MUCH TO SAY, ARE THEYPUTTING IDEOLOGY BEFORE FACTS AT GOOGLE. IT'S A BIG QUESTION.ANOTHER GOVERNMENT SHUTDOWN DEADLINE FAST APPROACHING. >> A PARTIAL LAPSE INGOVERNMENT FUNDING. >> EVEN A PARTIAL SHUTDOWNWOULD MEAN CHAOS AND PAIN FOR THE AMERICAN >> LIVE FROM NEWYORK — AMERICAN PEOPLE. JONATHAN:LIVE FROM NEW YORK CITY, GOOD.

MORNING. ♪ JONATHAN:LIVE FROM NEW YORK CITY, EQUITY FUTURES ON THE S&P 500 ON THES&P AFTER THREE DAYS OF GAINS WE SNAP DOWN YESTERDAY IN THEEQUITY MARKET. YIELDS ARE LOWER. UNDER SURVEILLANCE THISMORNING, ANOTHER GOVERNMENT SHUTDOWN FAST APPROACHING. >> THE DEADLINE TO AVOID APARTIAL LAPSE IN GOVERNMENT FUNDING IS FAST APPROACHING.THAT ACTION BY FRIDAY — WITHOUT ACTION BY FRIDAY THEYWILL FACE NUMEROUS DISRUPTIONS.

>> WE WANT TO AVOID AGOVERNMENT SHUTDOWN AND WORK WITH TO SPARE THE AMERICANPEOPLE OF THE PAIN THAT A SHUTDOWN WOULD BRING.WOULD BRING CHAOS AND PAIN FOR THE AMERICAN PEOPLE. >> PRESIDENT BIDEN MEETING WITHCONGRESSIONAL LEADERS AT 11:30 TODAY TO MAKE A DEAL WITH YOULOOMING GOVERNMENT SHUTDOWN. THE NEXT DEADLINE IS MARCH 8WHEN A FULL SHUTDOWN WILL TAKE PLACE.THE WHITE HOUSE MEETING WILL SHOW WASHINGTON DOESN'T WANT TOBE FISCALLY RESPONSIBLE AND IS.

PAYING NO ATTENTION TOINCREASED MARKET CONCERN AND DISMAY ABOUT THE UNITED STATESIS FISCALLY UNSUSTAINABLE PATH. TERRY, WHAT ARE THE ODDS WEAVOID ASSERT — SHUTDOWN AND THE SPEAKER KEEPS HIS JOB. >> THE ODDS WE AVOID A SHUTDOWNIN THE SHORT TERM ARE PRETTY GOOD.I THINK WHAT ENDS UP HAPPENING HERE IS THEY KICK THE CAN FOR AWEEK OR TWO WITH SOME MORE TEMPORARY SPENDING TO WORK OUTPROBLEMS PRAYED THERE'S ALSO THE OPTICS EVEN FOR THEREPUBLICAN PURISTS WHO ARE.

CHARGING A LOT OF THIS, THEOPTICS OF HAVING A GOVERNMENT SHUTDOWN EITHER RIGHT BEFORERIGHT AFTER THE STATE OF THE UNION ADDRESS.I HAVE NO DOUBT THE OPTICS ARE TERRIBLE REPUBLICANS WHO ARETHOUGHT BY THE PUBLIC TO HAVE A BETTER ECONOMIC HANDLE THAN THEBIDEN DEMOCRATS. SO THIS IS CAN A BUMBLE ON FORA MONTH OR MORE. WITH THE IDEA BY APRIL 30 THEMANDATORY 1% CUTS IF THEY CAN COME TO A DEAL SO THE SAMEREPUBLICANS THINK THEIR LEVERAGE GROWS.

>> HOW MUCH DO WE END UP ATAPRIL 30 AND THEN GET THIS 1% CUT ACROSS THE BOARD AND IGUESS FOR THE REPUBLICANS THEY DON'T GET SOME OF THE POLICYRIDERS THEY WANT IN TERMS OF THESE PROVISIONS BUT THEY GETTHE CUTS. WITH THAT BE A WIN FOR THEM. >> SOME OF THEM WOULD SEE ITTHAT WAY. BUT ALSO WHAT I WOULD SAY FORMARKETS CONCERNED ABOUT DOWNTURNS IN DEFENSE SPENDINGFOR EXAMPLE IS YOU'LL HAVE A 1% CUT OF COURSE.WHAT YOU END UP WITH HER SOME.

KIND OF EXEMPTIONS ORWORKAROUNDS SO THE DEFENSE SPENDING DOESN'T GO DOWN.WHAT YOU'RE GOING TO GET IS KIND OF A MODEL FOR THE NEXTSIX TO SEVEN WEEKS AND A HODGEPODGE OF RESULTS. >> WHAT YOU THINK WE GET OUT OFTHIS MEETING TODAY? HAVING LEGISLATIVE LEADERS OVERTHE WHITE HOUSE. THE SHUTDOWN IS MIDNIGHT ONFRIDAY. IS IT TOO LATE? >> I THINK LIKE MOST THINGS INPOLITICS AND MANY THINGS IN MARKETS IN LIFE A LOT OF ITSPOSTURING.

BIDEN WANTS TO BE SEEN AS DOINGSOMETHING AS A PREVIEW TO THE STATE OF THE UNION.I THINK YOU GET MIXED RESULTS FROM MARKETS.YOU GET A PLUS ON FOREIGN AID IN U.S. GLOBAL LEADERSHIP.WITH THE EXCEPTION OF HOUSE SPEAKER JOHNSON YOU WILL SEE AVAST MAJORITY OF CONGRESS FOCUSED ON THE PUSHING TO THEINDO PACIFIC. A FEW OF THE NEGATIVES OF THESHUTDOWN FOR MARKETS FOR THE FISCAL REASONS I MENTIONED.LISA: IS THIS SOMETHING MARKETS WILLWAKE UP TO OR IS THIS SOMETHING.

NO ONE ASKS YOU ABOUT BUTYOU'LL HAVE TO KEEP IN EYE OUT FOR. >> 15 OR 20 YEARS OF THIS,INSIDE THE BELTWAY IT'S THE USUAL TOWEL SNAPPING WHO SAIDWHAT TO WHO KIND OF STUFF. MARKETS REALLY DON'T CARE ABOUTTHIS. THEY WILL START TO CARE IF ITSTARTS TO AFFECT THE DEFENSE SUPPLY CHAIN REAL-TIME ISSUES.BUT MARKETS ARE IN ON THE JOKE AND HAVE BEEN FOR SOME TIME.THEY KNOW WHAT WILL END UP HAPPENING IS WASHINGTON WILLBACKFILL THE WHOLE THEY CREATE.

LISA: THERE MIGHT BE MORE OF ARESPONSE TO THIS ASPECT. PRESIDENT BIDEN SAYING THERE'SSOME SORT OF AGREEMENT TO PAUSE FIGHTING IN GAZA.HE WAS SAYING MY NATIONAL SECURITY ADVISOR TELLS ME WEARE CLOSE, MY HOPE IS BY NEXT MONDAY.WITHOUT HAVE A MATERIAL EFFECT. DOES THAT MEAN SOMETHING TO YOUIN CONCRETE TERMS? >> THE PRESIDENT WANTS TOCONTINUE TO LOOK RELEVANT IN THOSE NEGOTIATIONS AND IN THEMIDDLE EAST GENERALLY IN THE RUN-UP TO THE MICHIGAN PRIMARYMORE THAN ANYTHING ELSE.

IT'S NOT LOST ON ANYBODY DOWNHERE THE REASON WHY HE SAYS THIS THE DAY BEFORE THE PRIMARYIS TO HEAD OFF A PROBLEM WITH GETTING LARGE NUMBERS OFUNCOMMITTED VOTES. IN THAT PRIMARY.THAT MIGHT MAKE HIM LOOK WEAK OR CAST ASPERSIONS ON THEADMINISTRATION'S MIDDLE EAST POLICY. >> WHAT IS THE BAR FOR THEPRESIDENT AND THAT PRIMARY? WHAT TO SUCCESS OR FAILURE LOOKLIKE. >> OBVIOUSLY HE'S GOING TO WINBUT I WOULD SAY IF YOU GET.

UNCOMMITTED VOTES IN DOUBLEDIGITS BY WHICH I MEAN DOUBLE DIGITS, 10% OR MORE IS GOING TO LOOK LIKE THE WHITE HOUSE ISWEAK IN TERMS OF ITS CORE VOTERS FIRST OF ALL.AND SECONDLY THAT IT'S NOT MESSAGING.NORMALLY I GIVE THE BACK OF MY HANDS TO MESSAGING CONCERNS ASSECONDARY BUT IN THIS CASE WHAT THE WHITE HOUSE NEEDS TO DO ISFORTHRIGHTLY TELL THE PUBLIC AND TELL THEM REPEATEDLY WHATWE ARE FOR, WHY WE ARE FOR IT AND WHAT WE ARE DOING ABOUT IT.THIS PRESIDENT COULD DO WITH A.

LITTLE LESS BOX TICKING FOR ALLTHE COALITIONS A LITTLE BIT MORE STANDING FIRM AND TELLINGPEOPLE WHY WE ARE DOING WHAT WE ARE DOING. ANNMARIE:THESE UNCOMMITTED VOTES WHICH THE GROUP IS TRYING TO GET TOTHE MARGIN IN 2016, WHEN YOU LOOK OUT TO NOVEMBERPOTENTIALLY THEY COME OUT AND VOTE FOR BIDEN. HOW MANY CAN HE LOSE IN THISARAB AMERICAN COMMUNITY AND GET ACROSS THE FINISH LINE. >> I THINK PROBABLY QUITE A LOT.THERE'S NO SERIOUS OPPOSITION.

IN THE PRIMARY.MICHIGAN IS ALWAYS CONSIDERED A SWING STATE AND YOU HAVE DONESOME VERY GOOD REPORTING ON THE IDEA TRUMP VOTERS TEND TO COMEFROM TRADITIONAL DEMOCRAT MIDDLE-CLASS HOUSEHOLDS.AT THE SAME TIME I THINK FIRSTLY THERE WILL BE A BIGBIDEN GET OUT THE VOTE EFFORT. SECONDLY THE CALL ON TRUMPCONTINUES TO BE THAT HE IS WEAK BECAUSE HE'S NOT CONSOLIDATINGTHE PARTY BEHIND HIM AND HE'S LOSING A LOT OF INDEPENDENTVOTERS. SO I THINK THEY COULD STAND TOLOSE A FAIR NUMBER OF ARAB.

AMERICAN VOTERS IN THE FINALANALYSIS AND STILL PULL THROUGH. JONATHAN:THE WEAKNESS, THE PERCEIVED WEAKNESS OF THE FORMERPRESIDENT GOING TO THE NATIONAL LEVEL WITH THAT REINFORCED BYSOUTH CAROLINA OVER THE WEEKEND. >> I THINK WHAT YOU END UPSEEING IS A PARTY SPLIT SOMEWHERE IN THE 5050 TO 6040LINE EVEN IN A STRONGLY TRUMP PLACE LIKE SOUTH CAROLINA YOUCOULDN'T GET TO 60%. BUT HE COULDN'T GET TO 60%.AND I THINK THAT CARRIES THROUGH BOTH IN TERMS OFREPUBLICAN VOTERS, REPUBLICAN.

GRANDEES INCLUDING PEOPLE THATSERVED HIS FIRST ADMINISTRATION STRONGLY AGAINST HIM AND WILLSAY SO REPEATEDLY. AND THEN YOU HAVE THE PROBLEMWITH THE INDEPENDENCE. HE KNOWS HE IS WEAK.ONE OF THE MANY REASONS YOU CAN SEE THAT IS HOW QUICKLY HE CAMEOUT ON IVF. HE SEEKING TO SEPARATE HIMSELFFROM THE PARTY ON THAT AND TRY TO MAKE A RUN WITH INDEPENDENCE.WHO HAVE PROBABLY MADE UP THEIR MINDS AGAINST HIM ANYWAY.JONATHAN: GOOD TO CATCH UP. ON THE SURFACE IT LOOKSDOMINANT .

TALKING ABOUT DOUBLE DIGIT WINSIOWA, NEW HAMPSHIRE, SOUTH CAROLINA. YOU GET INTO THE NUANCES,TERRY'S VIEW, IT'S NOT THAT DOMINANT. ANNMARIE:WHEN YOU LOOK AT REPUBLICANS WHO LEAN A LITTLE MOREINDEPENDENT OR IF IT'S AN OPEN PRIMARY, THEY WANTEDALTERNATIVE. TRUMP IS JUST THAT 60% IN SOUTHCAROLINA. THAT'S CLOSER TO 15% AND 100%.HE HAS THE BASE. I THINK WHAT PRESIDENT BIDEN ISGOING TO SHOW POTENTIALLY TODAY.

WITH THESE UNCOMMITTED PROTESTVOTE LET'S SEE WITH THE NUMBERS SHOW IS THEY NEED TO DO MORE TOSHORE UP THEIR CORE VOTING BASES THEY HAD IN 2020.JONATHAN: EQUITY FUTURES ON THE S&P 500SLIGHTLY POSITIVE UP BY .1% ON THE S&P 500. COMING UP U.S.REGULATORS ISSUING A SCALING ASSESSMENT OF BOEING'S SAFETYCULTURE FOLLOWING THE NEARLY CATASTROPHIC INCIDENT EARLYTHIS YEAR. THAT CONVERSATION FROM NEW YORK.THIS IS BLOOMBERG. JONATHAN:SNAPPED A THREE-DAY WINNING.

STREAK ON THE SESSION.SMALL DAY OF LOSSES, UP BY .1%. UP BY 1.5% ON THE NASDAQ.WE HAD LOWS A LITTLE BIT EARLIER.WE HAVE MORE LATER THIS HOUR AND WE WILL BREAK THAT DOWN FORYOU. TWO-YEAR, 10 YEAR, 30 YEAR. A TON OF ISSUANCE LATER TODAY.YIELDS WERE PUSHING HIGHER THROUGH THE CURVE.DOWN ABOUT TWO OR THREE BASIS POINTS THERE ON A 10 YEAR YIELD.BASICALLY UNCHANGED. IT'S NOT JUST TREASURY SUPPLYALSO NEED TO CAUGHT — TALK CORPORATE CREDIT SUPPLY.WHAT A MONTH IN FEBRUARY.

>> IT'S BEEN A RECORD ACROSSTHE BOARD. YOU'RE LOOKING AT SOME OF THELOWER RATED COMPANIES AS WELL THAT ARE ISSUING DEBT ANDSPREADS ARE STILL AT THE TIGHTEST LEVEL GOING BACK FOR AYEAR. YOU CAN BASICALLY INFER ALLTHAT CASH ON THE SIDELINES PEOPLE KEEP TALKING ABOUT ISGOING SOMEWHERE. MAYBE THIS IS THE HAVEN.JONATHAN: THE BUSIEST MONTH GOING BACK TOAPRIL OF 2020. IT WAS A DIFFERENT WORLD,RUSHING TO ISSUE DEBT, SPREADS.

OF GAPPED WIDER OFF THE BACK OFTHE PANDEMIC. ISSUING DEBT FOR SURVIVAL FORTHE PURPOSES OF SURVIVING THROUGH THE SHUTDOWN AND HEREWE ARE A FEW YEARS LATER TALKING ABOUT SPREADS BEINGINCREDIBLY TIGHT. EVEN WITH RATES AT MULTI-DECADEHIGHS WITH NO SIGN AT LEAST IN THE NEXT SEVERAL MONTHS GOINGTHROUGH JUNE AND THIS FED ITCHING TO CUT RATES ANYTIMESOON. >> IN APRIL OF 2020 IRIDESCENTWAS A FEELING THE FED HAD YOUR BACK.EVEN THOUGH SPREADS WERE WIDER,.

THE BORROWING COST WASROCK-BOTTOM. NOW WE ARE TALKING ABOUTCOMPANIES WITH THE BORROWING COSTS EVEN WITH TIGHT SPREADSARE NOT THAT LOW RELATIVE TO WHERE THEY HAD BEEN WRITTENHISTORICALLY. COMPANIES CAN STILL ISSUE DEBT. INVESTORS SAYING YOU LOOK ATCREDIT MUCH MORE THAN YOU DID BEFORE.THIS IS THE MOST BULLISH MARKET CONSIDERING WHERE WE CAME ANDHOW MUCH PEOPLE WERE PESSIMISTIC.

>> THIS ONE'S DIFFERENT TOWHERE WE WERE FOUR YEARS AGO. I'LL DO MY BEST YEAR TO MAKEFOREIGN-EXCHANGE INTERESTING FOR YOU.I'VE GOT STUFF TO STAY AS WELL. I WILL SAY MY STUFF AND YOU CANSAY YOUR STUFF AND JUST A MOMENT. THE EURO IS UNCHANGED, IT COULDGET INTERESTING. THIS IS WHAT HE'S GOT TO SAYABOUT IT WHETHER THE FEDERAL ECB CUTS FIRST OR FASTEST WILLDETERMINE WHERE EURO-DOLLAR GOES THIS YEAR BUT THAT — BUTIF THEY MOVE IN THE SAME.

DIRECTION THEY CAN GO VERY FARIN EITHER DIRECTION. IF IT WERE TO BECOME CLEAR INTHE MONTHS AHEAD THE FED'S NEXT MOVE WOULD BE A HIKE OR THESEABEES WOULD BE TO CUT RATES AND THE MARKET REACTION WOULDBE SUBSTANTIAL AND RETURN TO PARITY.WOULD DEMAND A PAINFUL REVISION TO OUR FORECAST ON THE EURO.THAT'S ALL I CAN DO WITH THAT. DOLLAR-YEN.THE BOJ HAS EVERYTHING HE NEEDS RIGHT NOW. >> WE SAW HIGHER-THAN-EXPECTEDINFLATION IN JAPAN.

WHAT YOU'RE SEEING RIGHT NOWARE TWO-YEAR YIELDS IN JAPAN AT THE HIGHEST LEVELS GOING BACKTO 2011. THIS STATISTIC GOT MY ATTENTION.THE LIKELIHOOD OF THE BANK OF JAPAN EXITING ITS NEGATIVERATES BY APRIL HAS RISEN TO ABOUT 81%.THAT IS THE EXPECTATION BAKED INTO MARKETS.THE FACT THE CURRENCY IS MOVING AS LITTLE AS IT IS SHOWS HOWMANY PEOPLE HAVE BEEN BURNED BY THIS. >> ON THE EDGE OF EXCITEMENT INTHE FX MARKET JUST GETTING A.

REPORT FROM OUR TEAM ATBLOOMBERG WE OBTAIN THE DRAFT COMMUNIQUE OF THE FINANCECHIEF, THIS IS THE G20 GET TOGETHER IN LATIN AMERICA.THEY SAY IT INCLUDES FASTER THAN EXPECTED DISINFLATION, THELIKELIHOOD OF A SOFT LANDING IN THE GLOBAL ECONOMY HASINCREASED. WHO ARE WE THANKING HERE.I DON'T THINK WE ARE THANKING EUROPE AND WE'RE CERTAINLY NOTTHANKING CHINA EITHER. MAYBE CHINA WE ARE THANKING FORTHE INFLATION. THE GROWTH STORY LOOKSSTATESIDE.

>> BASICALLY THANK YOU TO CHINAFOR THE DISINFLATION IN COMMODITIES AND THANK YOU TOTHE U.S. FOR THE ENGINE OF GROWTH.IT IS NIRVANA BUT PEOPLE ARE GETTING NERVOUS.MAYBE GETTING A LITTLE BIT AHEAD OF OURSELVES. >> THERE'S TWO HOT WARS RIGHTNOW AND YET BRENT IS STILL AT $82 A BARREL.THIS ALL HAS TO DO WITH CHINESE DEMAND WHICH IS NOT COME BACKSINCE THE DEPTH OF THE PANDEMIC. >> THAT'S THE OUTLOOK FOR THEG20. THE LATEST DRAFT COMMUNIQUE.

MOMENTS AGO.PRESIDENT BIDEN EXPECTING A DEAL FOR A CEASE-FIRE BETWEENISRAEL AND HAMAS TO START HIS SOON AS MONDAY.DISCUSSIONS OF INTENSIFIED FURNITURE WHICH WOULD SECURETHE RELEASE OF MORE HOSTAGES HELD IN GAZA.ISRAELI OFFICIALS CONTINUE TO SAY THEY ARE LAUNCHINGOFFENSIVES NEAR THE BORDER WITH EGYPT SOON.NETANYAHU HAS SAID THEY ARE MAKING DELUSIONAL DEMANDS SOWHY IS THE PRESIDENT CONSTRUCTIVE HERE WHENULTIMATELY WHAT YOU HEAR FROM.

THE ISRAELI LEADER IS LESSENCOURAGING. >> WHAT DID WE JUST HEAR THATTHIS IS VERY DELIBERATE AHEAD OF THE ELECTION CONSIDERING THEFACT IT HAS I BELIEVE THE BIGGEST CONCENTRATION OF ANARAB-AMERICAN POPULATION IN THE NATION. ANNMARIE:MORE THAN 100,000 ARAB AMERICANS VOTED IN 2020 ANDTODAY'S GOOD TO BE EVERY — A PROTEST VOTE.THEY MAY BE USING FOREIGN POLICY TO SHORE UP THESECRITICAL BASES IN THE DEMOCRATIC PARTY BUT ALSO THEPRESIDENT JOINED SETH MEYERS.

LAST NIGHT AFTER HE WAS WALKINGAROUND EATING ICE CREAM WITH HIM TALKING ABOUT CEASE-FIREAND SAID RAMADAN IS COMING UP AND THERE'S BEEN AGREEMENT THEYWILL NOT ENGAGE IN ACTIVITIES DURING RAMADAN AS WELL. BASICALLY I THINK WE HAVEMONDAY TO SUNDAY OF NEXT WEEK IF AN AGREEMENT WERE TO HAPPENFOR A HOSTAGE DEAL IT >> WOULD BE WITHIN THOSE DAYS.DON'T TALK ABOUT CEASE-FIRE'S. JUST DON'T DO IT.YOU KNEW WHAT KIND OF QUESTIONS YOU WOULD BE ASKED.DON'T BE IN THAT KIND OF.

SITUATION.DON'T ANSWER QUESTIONS ABOUT THE WAR HOLDING AND ICE CREAM. >> THERE HAVE BEEN A LOT OFQUESTIONS. LISA: AT SOME POINT THIS IS WHY YOUHAVE PEOPLE AROUND YOU THE TRY TO CRAFT A MESSAGE.LET MY PEOPLE TRYING TO CRAFT MY MESSAGE EVERY DAY. >> WE ARE HERE TO PROTECT YOU.THE OPTICS ARE DREADFUL. LISA:THEN AND ASK THEM A QUESTION THEY WANT TO BE ASKING ALL DAY.

>> AND THE HANDLERS SHOULD KNOWTHAT SO DON'T PUT THEM IN THE SITUATION WHILE HE'S EATING ANICE CREAM ANSWERING QUESTIONS ABOUT THE WAR IN THE MIDDLEEAST ESPECIALLY WHEN YOU KNOW THEY'VE GOT SOMETHING TO SAY ASWELL. THE FEDERAL TRADE COMMISSIONSUING TO BLOCK ONE OF THE BIGGEST U.S.GROCERY DEALS IN HISTORY. THE COMPLAINT SAYING KROGER'SPURCHASE OF ALBERTSONS WOULD LEAD TO LOWER WAGES FOR WORKERSIN HIGH FOOD PRICES TOGETHER THE COMPANIES WOULD OWN 5000STORES ACROSS THE COUNTRY.

THE SUPER MARKET SHARE SAYINGTHE DEAL IS NEEDED TO COMPETE WITH AMAZON, WALMART AND COSTCO.THEY FIRST ANNOUNCE THE AGREEMENT IN LATE 2022 ANDTHERE IS NO END IN SIGHT TO THE SAGA. >> THEY WANT TO HEAR ABOUTCAPITAL AND UNDERSTAND WITH THE POTENTIAL IS ELSEWHERE.THEY KEEP GOING BACK TO THE CASH FILE — CASH PILE ATBERKSHIRE HATHAWAY. IT IS WHERE ARE YOU GOING TO GO.WHAT CAN YOU BUY. IS IT GOING TO BE MORE, AND DAYOVERSEAS EVEN IN THE UNITED.

STATES BECAUSE IF YOU'RE TOOBIG THE ANSWER IS NO. >> YOURSELF IS THE ANSWERAPPARENTLY. IF YOU HAVE THAT MUCH MONEY ALOT OF THE BIG TECH FIRMS, WHAT CHOICE DO THEY HAVE.THEY COULD BUY CHIPS FROM NVIDIA OR THEY COULD BUYTHEMSELVES. >> IT'S A WONDERFUL WAY OFPUTTING SHARE BUYBACKS IN PURCHASES. JONATHAN:WHAT'S THE [LAUGHTER] LATEST ON THAT? [LAUGHTER] U.S.REGULATORS ISSUING A SCATHING REVIEW OF BOEING AS IT CONTENT– THE FALLOUT CONTINUES FROM.

THE MIDAIR BLOWOUT LAST MONTH.THE FAA SAYS THEY HAVE INEFFECTIVE SAFETY PROCEDURESAND SUFFERS FROM MEDICATION BREAKDOWNS BETWEEN STAFF.SAYING THEY WILL CAREFULLY REVIEW THE PANELS ASSESSMENTAND LEARN FROM THEIR FINDINGS AS WE CONTINUE A CONFERENCE OFEFFORTS TO IMPROVE OUR SAFETY AND QUALITY PROGRAMS. BROOKE,YOU ARE NOT GETTING COMBATIVE BY BOEING PRAY THEY ARELISTENING AND KNOW THEY HAVE TO FIX IT.YOU CAME OUT EARLIER IN TALKED ABOUT THE CULTURE.THAT SOMETHING WAS WRONG WITHIN.

THIS COMPANY.WHAT ARE WE LEARNING FROM THE REGULATOR AND THE PEOPLECONDUCTING THIS REVIEW. >> TO YOUR POINT THEY ARESAYING THE RIGHT THINGS NOW BUT IT WOULD HAVE MEANT MORE IFTHEY HAD BEEN SAYING THIS EARLIER.THEY HAD PLENTY OF OPPORTUNITY TO DO THAT IN THE WAKE OF THECRASHES. WHAT'S IMPORTANT TO NOTE ISTHIS REPORT WAS IN MARCH OF 2023. THEY DID NOT START THISINVESTIGATION BECAUSE OF WHAT HAPPENED WITH ALASKA AIRLINES.THAT WAS A SYMPTOM OF A CULTURE.

THAT'S LACKING.THE CRUX OF THIS IS HOW DO YOU FIGURE OUT HOW TO GET BAD NEWSTO THE PEOPLE THAT CAN DO SOMETHING ABOUT IT.HOW DO YOU FLAG PROBLEMS BEFORE YOU HAVE SOMETHING LIKE ALASKAAIRLINES HAPPEN. THIS GOES BACK TO THE BASICS OFHOW YOU RUN A MANUFACTURING COMPANY.IT SHOULD NOT BE THAT HARD BUT I THINK IN PRACTICE IT IS.NOT JUST FOR BOEING BUT FOR OTHER COMPANIES THAT HAVE LOSTSIGHT OF WHAT THEY REALLY DO AND THAT IS MANUFACTUREPRODUCTS.

I THINK ABOUT GE A LOT BECAUSETHEY DO SHARE SO MUCH OVERLAP FROM EXECUTIVES OVER THE YEARS.YOU LOOK AT THE TRANSFORMATION OF THAT COMPANY AND THE CEO ISKNOWN FOR BEING EXTREMELY HANDS-ON, FOR BEING VERYINVESTED IN WHAT HAPPENS ON HIS FACTORY FLOORS.AT BOEING DAVE CALHOUN IS KNOWN FOR BEING MORE HANDS-OFF.I DON'T KNOW IF THAT'S WHAT THEY NEED RIGHT NOW.I THINK YOU NEED SOMEONE TO GET IN THERE AND PAY ATTENTION TOWHAT'S HAPPENING AT THE MANUFACTURING PROCESSES.BECAUSE THE PEOPLE OF THE.

FACTORIES PAY ATTENTION TOTHAT, WHAT THE EXECUTIVES ARE SAYING AND DOING.WHEN YOU MOVE YOUR HEADQUARTERS TO ARLINGTON, VIRGINIA EVENFURTHER AWAY FROM THAT 737 FACTORY I THINK THAT SENDS AMESSAGE. JONATHAN: TELL US ABOUT THE CHANGES THATHAVE HAPPENED AND THE CHANGES YOU ANTICIPATE TO HAPPEN IN THEWEEKS AND MONTHS. >> THERE'S BEEN A NUMBER OFCHANGES. IF YOU LOOK OVER THE TIMEPERIOD WE'VE SEEN A REVOLVING DOOR OF EXECUTIVES AND YET ISTILL DO NOT FEEL LIKE AND IF.

YOU LOOK AT THIS REPORT THATTHEY HAVE THEIR HANDS AROUND WHAT EXACTLY IS WRONG.PART OF IT JUST TO GO BACK TO YOUR INITIAL POINT, THEY ARESAYING THE RIGHT THINGS NOW BUT WE HAVE NOT HEARD FROM BOEINGMANAGEMENT WE HAVE A CULTURE PROBLEM.THEY HAVE BEEN VERY RELUCTANT TO SAY THIS IS SOME SORT OFSYSTEMIC ISSUE. THE REASONS FOR THAT AREPERHAPS OBVIOUS WHEN WE TALK WITH ANALYST INVESTORS BUTADDRESSING THIS PROBLEM STARTS WITH CALLING IT OUT ANDACCEPTING IT AND BEING WILLING.

TO GET YOUR HANDS DIRTY ANDFIGURE OUT HOW YOU SOLVE THIS. LISA: REGULATORS SEEM TO HAVEATTEMPTED HERE CONSTANT CHANGES TO COMPLEX PROCEDURES LEADINGTO CONFUSION. OTHERS HINTED — HINDERED INTHEIR ROLE OF HOW THEY MANAGE SAFETY. THIS IS PRETTY BASIC. REGULATORS REQUESTEDINFORMATION THAT BOEING DEMONSTRATE COMMITMENT TOSAFETY BECAUSE THE MATERIALS RECEIVED DID NOT PROVIDEOBJECTIVE EVIDENCE OF THE FOUNDATIONAL COMMITMENT TOSAFETY.

THE HEAD OF THE COMPANY WARY OFTHIS KIND OF SCATHING DESCRIPTION FROM U.S.REGULATORS TRYING TO UNDERSTAND WHY THERE HAVE BEEN REPEATEDERRORS AND INCIDENTS. BROOKE: I THINK YOU HAVE TO THINK ABOUTTHE INCENTIVES OF THE DIFFERENT PLAYERS.WHAT MAKES THEM SO UNIQUE IS THAT EXISTS IN A DUOPOLY THATYOU ARE NEVER REALLY GOING TO HAVE THE TYPE OF ACCOUNTABILITYAT BOEING YOU MIGHT HAVE ANOTHER COMPANY SIMPLY BECAUSETHE WORLD CANNOT EXIST WITH JUST AIRBUS AIRPLANES.YOU HAVE SOME PLANES COMING OUT.

OF CHINA WHICH HAVE A PRETTYIMPRESSIVE SHOWING AT THE DUBAI AIR SHOW BUT YOU ARE NEVER GETTO SEE THE WESTERN WORLD BY THOSE PLANES.AND WE CANNOT LIVE IN A WORLD WHERE THERE'S ONLY AIRBUS.YOU'VE SEEN CUSTOMERS COME OUT AND BE MORE AGGRESSIVE IN THEIRCRITICISM OF BOEING IN THE WAKE OF THE ALASKA AIRLINES.THEY ALSO WANT THEIR AIRPLANES. SO I THINK IT WILL BEINTERESTING TO SEE HOW MUCH PRESSURE THERE ULTIMATELY IS ONBOEING TO CHANGE ITS WAYS BECAUSE YOU COULD ARGUE IN THEWAKE OF THE INCIDENTS THERE.

WASN'T ENOUGH PRESSURE,CERTAINLY BOEING DIDN'T FEEL THAT. LISA:THE CEO WILL BE SITTING DOWN WITH THE HEAD OF THE FAA TODAY.DO YOU EXPECT ANYTHING TANGIBLE FROM THAT. BROOKE:IT WILL BE INTERESTING TO SEE HOW MUCH THEY SHARE ABOUTWHAT'S DISCUSSED IN THAT MEETING.IF DAVE CALHOUN WANTS TO SHOW HE'S TAKING THIS SERIOUSLY THEYSHOULD COME OUT WITH SOMETHING TANGIBLE AND IT NEEDS TO BEREAL. WE HEARD ABOUT CHANGES FROMBOEING AND WAYS IN WHICH.

THEY'VE IMPROVE THEIR SAFETYCULTURE. I THINK YOU NEED TO GET SPECIFIC AND TALK ABOUT HOWYOU'RE GOING TO ADDRESS THESE ISSUES THAT WERE RAISED IN THEREPORT. I DON'T HOW MUCH THEY WILLACTUALLY TALK ABOUT CHANGES THEY ARE MAKING OR WHAT WASDISCUSSED. >> APPRECIATE THE UPDATE, THANKYOU FOR THE NOTICE. THE LATEST WITH BOEING.BUT SCHEDULE AN UPDATE ON STORIES ELSEWHERE. DANI: AFTER BLOOMBERG REPORTEDCHARTER COMMUNICATIONS IS.

EYEING EIGHT TAKEOVER.SOURCES SAY CHARTERERS WORKING WITH FINANCIAL ADVISORS TOASSESS THE DEAL. BOTH FIRMS ARE COPING WITHWIRELESS COMPETITION AND CORD CUTTING. ZOOM PERFORMING BETTER SALESFROM CUSTOMERS. SALES GAINS 2.6%, AVENUEENTERPRISE REVENUE WAS UP. ZOOM ANNOUNCED A $1.5 BILLIONSHARE BUYBACK AFTER HYPER GROWTH DURING THE PANDEMIC,ZOOM HAS EXPERIENCED A DRAMATIC SALES SLOWDOWN.PRESIDENT BIDEN DEFENDED HIS.

MENTAL FITNESS IN AN APPEARANCEON LATE NIGHT WITH SETH MEYERS. >> YOU HAVE TO LOOK AT THEOTHER GUY. HE CAN MEMBER HIS WIFE'S NAME.– CANNOT REMEMBER HIS WIFE'S NAME. [APPLAUSE]AND NUMBER TWO IT'S ABOUT HOW OLD YOUR IDEAS ARE. DANI: BIDEN HAS BEEN TRAINED TOMEDIATE FEARS THAT HE IS UNFIT FOR A SECOND TERM.THREE QUARTERS OF VOTERS AND CLING HALF OF DEMOCRATS SAYTHEY ARE CONCERNED ABOUT BIDENS AGE.LESS THAN HALF SAY THAT ABOUT.

TRUMP. >> MY BEST GUESS IS THERE WON'TBE A DEBATE GOING INTO THE ELECTION THIS YEAR BUT IF THEREARE I THINK MAYBE THAT IS BASICALLY THE WARM-UP ACT.CAN YOU IMAGINE HOW DREADFUL IT IS PRETTY WANT TO HEAR POLICY.CAN YOU IMAGINE THE DEBATE IF THAT'S THE ROAD WE ARE GOINGDOWN. AN EXCHANGE OF INSULTS. LISA: I THINK WE ARE GOING TO BESPARED FROM WHATEVER THAT WOULD LOOK LIKE BUT IT WOULDN'T BE ONHOW THEY REDUCE THE DEFICIT. JONATHAN:NEARLY ONE YEAR ON FROM SVB'S.

COLLAPSE. >> FOR INVESTORS RIGHT NOW,GROWTH IN BANKS HAS BEEN TAINTED WITH THE SILICON VALLEYFAILURE, SIGNATURE FAILURE. >> THAT'S COMING UP NEXT, LIVEFROM NEW YORK CITY THIS MORNING, GOOD MORNING. ♪ JONATHAN:EQUITY FUTURES ON THE S&P POSITIVE HEREBY .1% ON THE S&P500. YIELDS LOWER BY A SINGLE BASISPOINT.

A LITTLE BIT LATER ON THISAFTERNOON WE HAVE A LOT OF SUPPLY IN THE TREASURY MARKETIN THE LAST 24 HOURS. WE TALK ABOUT HOW WELL THAT'SBEEN TAKEN OVER THE LAST COUPLE OF DAYS. CREDIT SUPPLY HAS BEENPHENOMENAL TAKING DOWN REALLY WELL. >> THE AUCTIONS YESTERDAY WEREFINE BUT CAME IN A LITTLE BIT WEAKER. >> UNDER SURVEILLANCE THISMORNING FROM SVB'S COLLAPSE. >> INVESTORS RIGHT NOW GROWTHFROM BANKS HAS BEEN TAINTED.

WITH THE SILICON VALLEYFAILURE, A SIGNATURE FAILURE AS WELL AS FIRST REPUBLIC.OUR INVESTORS LOOK AT GROWTH IN THIS ENVIRONMENT.550 BASIS POINT MEGA FUND RATE AS A LITTLE BIT RISKY.AS WE ARE LOOKING FOR LOW GROWTH WE ARE STILL ARE OUTTHERE MEETING OUR CLIENTS NEEDS AND PICKING UP MARKET SHARE.THE INVESTORS KNOW THAT. JONATHAN:THE KBW REGIONAL BANKING INDEX DOWN SO FAR THIS YEAR AS WEINCH CLOSER TO THE ONE-YEAR MARK OF SVB'S COLLAPSE.THE VICE CHAIR AND PARTNER.

WRITING RECENTLY IN THEFINANCIAL TIMES SAYING MANY OF THE ISSUES WAS LED TO SILICONVALLEY BANK'S FAILURE ARE LEFT UNADDRESSED IN THE FED'SPROPOSED OFF THE NEW BANK REGULATION. GOOD MORNING TO YOU.LET'S TALK ABOUT THIS. WHAT SHOULD HAVE BEENADDRESSED, WHAT ISN'T BEING ADDRESSED AND WHATVULNERABILITIES ARE LEFT FROM THE FIASCO OF A YEAR AGO. >> THERE ARE THREE KEY THINGS.FIRST WAS THE MISMATCH. TO BE HONEST THIS IS SOMETHINGWE'VE SEEN IN THE 70'S, 80'S.

AND 90'S. INTEREST RATE RISK.AND THEN THE THIRD WAS DEPOSITOR CONCENTRATION.A NUMBER OF THESE VERY LARGE TICKET UNINSURED DEPOSITS.NONE OF THAT IN THE PROPOSALS IN FACT AND OF COURSE EVERYTIME I GO TO BANK — I MEET A BANK CEO OR CFO, BASEL COMES UP.IT IS THOSE BASICS OF BANKING. THAT'S WHY THINK FOR THEREGIONAL BANKS IT'S PROBABLY A TWO TO THREE YEAR PERIOD TOREADJUST AND THAT'S WHY THEY ARE HAVING SUCH A RIPEOPPORTUNITY. JONATHAN: CAN YOU FRAME FOR US HOWREGULATORY REGIMES ARE GOING TO.

EXACERBATE EXISTING TRENDS ANDRESHAPE THE LANDSCAPE OF WALL STREET.CAN YOU GO THROUGH EACH PHASE FOR US? >> THIS IS THE THIRD OR FOURTHBIG WAVE AND NORMALLY WHAT YOU FIND IS YOU NEED THREE THINGS.A BIG FINANCIAL SOCK — SHOCKED, AND THEN YOU NEED THEREGULATORS TO JUMP AND TRYING TO TURBOCHARGE THAT.MONEY MARKET FUNDS WERE ONLY INVENTED 71. THAT TURBOCHARGED AND I THINKWHAT'S INTERESTING IS FOR THE.

FIRST TWO YEARS LISTENING TOPEOPLE PRAY UPON THE BANKS. WHEN YOU GET THE NEW RULES THEBANKS THEMSELVES START REINFORCING THAT.YOU SAW BIG WAVE OF CORPORATE LENS POST A FINANCIAL CRISISWAS MORTGAGES AND MARKET-MAKING. NOW IT'S REALLY RUN MIDMARKETLANDING, WHERE I DON'T THINK WE BREAK THROUGH THOSE, I THINK WEWILL MASSIVELY BREAKTHROUGH THAT GIVEN THE TRENDS WE ARESEEING. >> LET'S TALK ABOUT THE ANATOMYOF THIS CREDIT DISINTERMEDIATION.IF THAT'S RESTRICTING THEIR.

ABILITY TO LEND.IS THAT WHAT YOU ARE SEEING THAT THESE PRIVATE CREDITPROVIDERS ARE SAYING IF YOU CAN LEND WE WILL AND WE WILLPROVIDE THOSE LOANS. THE SMALL BANKS LOSE OUT. >> LET'S TAKE LAST YEAR.80% OF LEVERAGE LOANS WERE FUNDED BY PRIVATE CREDIT RATHERTHAN THE BANKS. THE LARGE BANKS ARE BACK IN THEGAME. ONE OF THE LESSONS I LEARNEDFROM THE FINANCIAL CRISIS IS BANKS CAN ONLY TAKE THE LOSSESTHEY CAN AFFORD TO TAKE.

SO THEY ARE HANGING IN HOPINGFOR THE BEST AND THAT'S WHY IF YOU LOOK AT LENDING MARKETREGIONALS IT'S CONTINUED TO FALL.AND YOU SAW THAT THROUGH THE EARNINGS SEASON.AT THE MOMENT THEY ARE NOT SELLING THE COMMERCIAL REALESTATE SIZE. THEY'VE GOT FUNDING ISSUES,COMMERCIAL AND STATE WILL TAKE A COUPLE OF YEARS. >> WRITING ABOUT THIS IN AREPORT SAYING THE ODDS ARE THE BANKS OFFICES STRESS IS FARFROM OVER.

E-CIG GIVES AN GROWTH OF LOANS.HOW MUCH SORT OF DEFAULT AND DISTRESS WILL WE SEE INREGIONAL BANKS ON THE PATH GIVING OUT THE BAD STUFF. >> I THINK THERE'S POCKETS OFSTRESS BUT I THINK ALSO THE REGULATORS ARE CLEARLY TRYINGTO ENCOURAGE BANKS TO CONSERVE CAPITAL.CAP DIVIDENDS SO THEY CAN REBUILD.IT'S A REAL GRIND AND AS THEY GO THROUGH THE BEST CASE WE GETTONS MORE BANKS. IF WE GET ANOTHER SHOCK.I THINK IT'S REALLY HARD WORK.

AND IN THE MEANTIME IF YOU'REONE OF THE TOP FIVE BANKS. I THINK THAT'S WHERE THEOPPORTUNITY THEY LOOK TO PRESS THE ADVANTAGE. JONATHAN:CAN WE TALK ABOUT HOW INVESTORS AND WHAT WE INVEST IN HAS TOCHANGE AS WELL. THE ECONOMIC FORUM ABOUT HOWINVESTOR FLOWS POLARIZE. THIS IS SOMETHING WE TALKEDABOUT AGES AGO. BENCHMARK RETURNS CHIEFLY.INVESTING ESPECIALLY IN PRIVATE ASSETS AND REAL ESTATE SPRAYEDTHIS TREND IS CLEARLY TAKEN HOLD. DO THINK THAT PROCESS ISLARGELY COMPLETE.

>> YOUR VERY KIND TO REMEMBER APIECE OF THIS. SO FORGET ABOUT THEN FEES ONHEDGE FUNDS AND PRIVATE EQUITY. WE ARE UP 27% IN THE INDUSTRY.I SEE IT GOING WELL INTO THE 50'S.IT'S CLEAR WE ARE USING THE RISK BUDGET FOR INTERESTINGRETURNS. PRIVATE CREDIT OFF THE RUN.WE SEE THIS WITH SOME OF THE LARGEST FIXED INCOME INVESTORSIN THE WORLD. THERE'S A SEED CHANGE TO CREDITSO I THINK THERE'S A CONTINUATION OF THAT.ON THE OTHER END ETF'S REMAIN.

CHEAP AS CHIPS.PROBABLY FOR YOUR WORKOUT RATHER THAN MINE. >> I HAVE TO LOOK AT THIS ANDTALK ABOUT THIS, I THINK THERE CERTAIN MEDIA BUSINESS MEDIASTILL ACT LIKE IT'S THE 90'S. SINGLE STOCKS WHEN THE WORLDHAS CHANGED. THE WORLD IS CLEARLY CHANGED.THE WAY PEOPLE INVEST, THE DOW WAS A WEATHER FORECAST. I THINKA LOT OF PEOPLE UPDATING FINANCIAL MARKETS, WHAT DOESTHAT ACTUALLY MEAN TO PEOPLE ANYMORE IF YOU'RE NOT EXPOSEDTO IT.

YOU NOT AT THAT INDEX AT ALL. >> RIGHT NOW WHAT YOU SEE IS IFTHEY ARE SINGLE NAMES IT'S ABOUT THE TECHNICALS AS WELLUNDERPINNING IT BECAUSE OF THE ETF TRADING TRADE AS MUCH AS ITIS ABOUT THE ACTUAL COMPANY AND THEIR REVENUES. JONATHAN:SO GREAT TO SEE YOU. LET'S SET UP THE NEXT HOUR FORYOU. WE CATCH UP AT TS LOMBARD. THE PRESIDENT AND CEO STEPHEN.LIVE FROM NEW YORK CITY THIS MORNING, EQUITY FUTURESPOSITIVE BY .1% IN THE MARKET. ON THE 10 YEAR PAID A TON OFECONOMIC DATA, CONSUMER.

CONFIDENCE AT 90 MINUTES AFTERTHAT. FROM NEW YORK CITY THIS IS BLOOMBERG. >> THE OVERALL MARKET IS STILLOK. >> THE FED IS MORE LIKELY TOREMAIN ON THE SIDELINES RATHER THAN RE-ENGAGING IN FURTHERRATE HIKES. >> THE LONGER THESE POLICYRATES STAY ELEVATED THE MORE THEY WILL BITE INTO THE ECONOMY.>> IF THERE IS A MEANINGFUL RUN IN GROWTH, I THINK IT WILLSTILL HAVE THOSE RATES. >> IT MIGHT BE LOOKING AT NONETO ONE.

>> THIS IS BLOOMBERGSURVEILLANCE WITH JONATHAN FERRO, LISA ABRAMOWICZ ANDANNMARIE HORDERN. JONATHAN: LIVE FROM NEW YORK CITY THISMORNING, GOOD MORNING. THIS IS BLOOMBERG SURVEILLANCE,A BIG MORNING FOR RETAILERS IN AMERICA.FREE-MARKET POSITIVE BY AROUND 3%.WE HAVE THE RESULTS OUTLOOK AND WE'VE GOT SOME STORE CLOSURES.LISA: TO ME WHAT'S INTERESTING ISTHEY'RE GOING TO CLOSE THESE LOCATIONS.IT'S UNCLEAR HOW MANY WILL BE.

AFFECTED THROUGH 2026 BUT THEYARE ADDING TO THE NUMBER OF OUTLETS.IF YOU LOOK AT UNDER THE HOOD YOU CAN SEE SAME-STORE SALES ATTHE NAMESAKE BRAND FELL WHERE'S BLOOMINGDALE'S FELL AND BLUEMERCURY ROLES — BLUE MERCURY ROSE.WEALTHY SHOPPERS HAVE MONEY TO SPEND PRAYED >> WE'VE SEEN ALOT OF ANALYSTS TALK ABOUT THE BIFURCATION OF THE CONSUMER.THOSE ON THE HIGHER END OF THE SOCIOECONOMIC SCALE.THEY ARE SPENDING ON LUXURY AND HAVE THIS DISPOSABLE INCOMEWHILE THOSE ON THE LOWER END.

ARE FEELING THE BITE OFINFLATION. THIS PLAYS OUT PERFECTLY IN THEMACY'S STORY. THEY ARE LOOKING TO SOME OF THEHIGHER LUXURY PRODUCTS. JONATHAN: JUST ABOUT UNCHANGED.WE WILL TALK ABOUT THAT LATER. TAKE A LOOK AT ALPHABET IN THEPREMARKET TRADING POSITIVE ONE POINT 6% YESTERDAY NOT OK.SOMETHING LIKE 4% YESTERDAY THEY PAUSE THE IMAGE GENERATIONFOR ITS AI MODEL. GOOGLE HAS ABSOLUTELY DOMINATEDSEARCH WHETHER THEY DOMINATE AI INFUSED SEARCH IS A DIFFERENTQUESTION BECAUSE THE EARLY.

PROGRESS, THERE IS NOT MUCH OFIT ALL. LISA: IT'S A CREDIBILITY GAME.BUT YOUR MODEL WILL GENERATE SOMETHING THAT HAS THE RESULTSPEOPLE ARE LOOKING FOR. IF THERE GEMINI OUTLET WASACCUSED OF A DIFFERENT BIAS, SOME PEOPLE SAY CREATING A WOKEKIND OF GEMINI OUTPUT, WHATEVER YOU WANT TO CALL IT.THE POINT IS ITS CREDIBILITY. AND THE QUESTION PEOPLE CANLOCK INTO THIS AND IT RAISES THE QUESTION OF ARE THE GOINGTO LOSE FURTHER FROM MICROSOFT AS THEY COMPLAIN THEY AREDOMINATING IN A MONOPOLISTIC.

WAY. JONATHAN:THE EXCUSE THEY'VE GIVEN, THE REASON THEY'VE GIVEN KIND OFMAKES SENSE THAT IF YOU ARE IN CHINA AND ASK FOR AN IMAGE OF AFOOTBALL TEAM THEN YOU MIGHT WANT SOME CHINESE PEOPLE INTHAT FOOTBALL TEAM. THAT SEEMS TO BE WHY THIS HASHAPPENED. THAT'S THE REASONING FOR IT.WHEN YOU START GETTING PROMPTS LIKE NAZIS IN GERMANY IN THE1930'S AND YOU GET A DIVERSE SET OF CHARACTERS QUITE CLEARLYSOMETHING HAS GONE VERY WRONG. THE QUESTION IS HAVE THEYDELIBERATELY PUT IDEOLOGY.

BEFORE FACT AND IF THEY HAVE,HOW CAN YOU RELY ON SEARCH WITH GOOGLE.IF I PUT SOMETHING INTO GOOGLE SEARCH I WILL GET THE ANSWERTHAT I'M LOOKING FOR. IF I CAN RELY ON THEM FOR THATANYMORE WHAT KIND OF BUSINESS DO THEY HAVE LEFT? LISA:I DO NOT HAVE INTIMATE KNOWLEDGE OF GEMINI.THAT SAID THERE IS A QUESTION ALL THE ARTIFICIAL INTELLIGENCEAND GENERATIVE AI TYPES OF PLATFORMS. AND INHERENT BIASESTHAT EVERYONE HAS AND HOW MUCH ARE THEY MAGNIFIED IN THEPROGRAM ANGLE OF SOME OF THESE.

GENERATIVE AI MODELS. DELIBERATE OR NOT, WHAT KIND OFEXPANSION OF THESE TECHNOLOGIES WILL THERE BE ON A FULLUNDERSTANDING OF HOW BIASES ARE IMPLEMENTED. ANNMARIE:NATE SILVER NAILS IT. THEY NEED TO SHUT IT DOWNBECAUSE IT SEVERAL MONTHS AWAY FROM BEING READY FOR PRIME TIME.WHY DID THEY RELEASE SOMETHING THAT WAS NOT READY.HE PUT THIS QUESTION IN IS WHO IS IMPACTED SOCIETY MORE ELONGTWEETING — TWEETING MEAT OR HITLER'S.GEMINI SAID IT'S NOT POSSIBLE.

TO SAY DEFINITIVELY TO YOURPOINT BUT HE SAID WHY ARE THEY MOVING AHEAD WITH SOMETHINGTHAT WAS NOT READY. >> WHEN IT WAS TESTED IN HOUSEWHERE THEY SATISFIED WITH THE ANSWERS THEY WERE GETTING. >> IT GOES TO THE POINT WHERETHEY ARE BANKING ON GENERATIVE AI CHANGING THE WORLD ANDINCREASING PRODUCTIVITY BEFORE WE UNDERSTAND HOW RIGOROUS THETESTING HAS BEEN. THIS GOES TO THE CONCERN THATEVEN PEOPLE IN THE INDUSTRY ARE SAYING CAN WE PUT SOMEGUARDRAILS ON IT.

>> WE ARE TALKING ABOUT ACOMPANY WITH A MONOPOLY BUSINESS.ULTIMATELY IN THE EQUITY BUSINESS THEY HAVE DOMINATED.I HAVE NO IDEA IF THIS PRODUCT WILL BE GOOD IN THE FUTURE.MAYBE IT WILL BE. BUT THE FACT OF THE MATTER ISWE ARE TALKING ABOUT ALPHABET BEING BEHIND IN SOMETHING THATWE THINK THEY SHOULD BE DOMINATING AT.THIS IS A COMPANY THAT'S PERFECTLY SET UP TO DOMINATETHIS AND HAS NOT AT ALL. LISA: THIS IS THE REASON PEOPLE AREGENUINELY WORRIED ABOUT A.

1990'S TYPE TECH BUBBLE.YOU HAVE TO THINK SOME OF THE TECHNOLOGICAL ADVANCEMENT WILLBE SO TRANSFORMATIVE THAT IT WILL UP AND MODELS THAT HAVEBEEN SO DOMINANT. WE WERE TALKING ABOUT MICROSOFTAND THEIR GENERATIVE AI AND WHAT THEY CAN DO TO COMPETEWITH GOOGLE. JONATHAN:STOCK IS UP BY ONE HALF OF 1%. THE BROADER EQUITY MARKET,EQUITY FUTURES POSITIVE. IN THE BOND MARKET YIELDS, DOWNBY A SINGLE BASIS POINT. THE EURO SLIGHTLY STRONGER.

COMING UP THIS HOUR SKYLERMONTGOMERY KOENIG ON WHY STICKY INFLATION IS GOOD FOR STOCKS. AARON DAVID MILLER WITH ACEASE-FIRE IN ISRAEL GATHERING MOMENTUM AND THE CEO ON THEHEALTH OF THE U.S. CONSUMER. THE S&P 500 ENDING A THREE DAYSTREAK AHEAD OF A SLOW DUTCH SALUTE OF ECONOMIC DATA AND FEDSPEAK. POLICY IS NO LONGER THE ONLYMARKET DRIVER WITH EQUITIES NOW REACTING POSITIVE TO UPSIDESURPRISES TO KEY ECONOMIC INDICATORS.WE REMAIN STICKY INFLATION MAY.

DELAY FED CUTS BUT AS LONG ASIT'S CAUSED BY DEMAND IT SHOULD BE GOOD FOR STOCKS.SCARLET DO YOU THINK THAT EXPLAINS WHY THIS EQUITY MARKETHAS BEEN ABLE TO PRICE OUT THE RATE CUTS AND FIXED INCOME ANDULTIMATELY CONTINUED TO RALLY SO FOUR-YEAR TODAY. SCARLET:WE HAD TWO QUARTERS OF POSITIVE EARNINGS GROWTH WHICH MEANS WEARE PAST THE EARNINGS GROWTH WE SAW LAST YEAR. YOUR SEEING WE'LL — REAL WAGEGAINS WHICH DON'T NECESSARILY.

HAVE TO BE MARRED INCONTRACTION. SO THAT POSITIVE U.S.GROWTH COUPLED WITH FED CUTS WHICH WILL COME EVEN IF WE GETOF A SLOWDOWN MEANS YOU CAN HAVE A PRETTY POSITIVE OUTLOOKFOR EQUITIES. JONATHAN: YOU SAID MAYBE THE PAIN TRADECOULD BE WE DON'T GET THE RATE CUTS. WHAT DO YOU THINK THE PAINTRADE IS NOW? SKYLAR:WE'VE MOVED QUITE SIGNIFICANTLY AND WHEN I TALK ABOUT THE PAINTRADE AT THE BEGINNING OF THE YEAR NOT BEING THOSE RATE CUTSI DIDN'T MEAN SO MUCH FOR.

EQUITIES.I WAS TALKING ABOUT THE DOLLAR SPECIFICALLY SO WE HAVE A BITOF THAT PAIN TRADE IN TERMS OF A STRONG DOLLAR ON THE BACK OFTHESE RATE CUTS. I THINK FROM HERE THE BIG WORRYIS WE GET INFLATIONARY RESURGENCE AND THAT IS SUPPLYDRIVEN RATHER THAN BEING DEMAND DRIVEN.THAT WOULD BE VERY BAD FOR EQUITIES AND FOR BONDS.SO THAT'S REALLY THE PAIN TRADE. IT'S THE BASE CASE ANDSOMETHING TO WATCH GIVEN THE SHIPPING DISRUPTIONS AS WELL ASWHAT'S HAPPENING IN THE MIDDLE.

EAST. LISA:ONE THING I LOVE WAS HOW YOU DUG INTO THE RESULTS AND HOWSTRONG THESE COMPANIES WERE. HOW MUCH IS THAT REALLY TIED TOTHE COMMODITY CYCLE THAT WE'VE SEEN GOING THE OPPOSITEDIRECTION THAT SONY PEOPLE WERE EXPECTING. >> IT IS CERTAINLY PLAYING AROLE, THE FACT WE HAD MARGINS BE VERY HEALTHY.WHAT WE'VE HAD WAS MARGIN CONTRACTIONS THROUGH MOST OFLAST YEAR BECAUSE YOU HAD REAL WAGE GAINS, CPI NOT BEING ASSTRONG AS PREVIOUSLY AND.

CONSUMERS HAVE BEEN PUSHINGBACK ON THE STRONGER PRICES WE'VE HAD.BUT ON THE POSITIVE SIDE IS THIS PPI DECLINE AND IT'S BEENQUITE SIGNIFICANT. WE HAD AN UPSIDE SURPRISE INTHE MOST RECENT DATA BUT IT LOOKS MORE LIKE NORMALIZATIONBACK TO AVERAGE LEVELS THAN IT LOOKS LIKE SOMETHING WORRYING.IF WE GO OUT COMMODITY PRICES RISING AGAIN OR RESURGENCETHERE IT'S WORRYING FOR MARGINS. THE PRODUCTIVITY GAINS YOU ARESEEING MEANS WE HAVE MARGIN EXPANSION OR THE VERY LEASTTHESE HIGH LEVELS BUT WERE THE.

TOP OF THE PREVIOUS RANGEBEFORE COVID. JONATHAN: ONE COMPANY — LISA:ONE COMPANY DOES NOT MAKE A TREND BUT I WONDER ABOUT THESIGNALS YOU GET FROM MACY'S TALKING ABOUT PRETTYSIGNIFICANT DECLINES. IT BASICALLY HIGHLIGHTS THEDIFFICULTIES THAT CERTAIN LOWER INCOME CONSUMERS ARE HAVINGCONTINUING TO MAINTAIN THEIR SPENDING.HOW DO YOU INTO AN OUTLOOK AT A TIME WHEN PEOPLE ARE LOOKINGPAST THAT. >> I THINK IT IS SOMETHING TOCONSIDER BUT I THINK FROM THE.

HIGH-LEVEL EARNINGS WE ARECONSIDERING, CONSUMPTION IS STILL STRONG.SOMETHING THAT'S ALSO BEEN TALKED ABOUT IS THIS ZEROINTEREST RATE LENDING THAT'S HAPPENED.THEY ARE GETTING THE ZERO INTEREST RATE LENDING.I THINK THAT'S ALSO PROPPING UP THE CONSUMER BUT YOU NEED TOLOOK AT THE AGGREGATE NUMBERS IN TERMS OF WHERE IS THE LEVELOF THAT WEALTH AND HOW IS THE ECONOMY DOING GENERALLY.WE HAVE FOUND OUT SIGNIFICANTLY WHICH IS WHAT YOU ARE POINTINGTO BUT COMING DOWN FROM A HIGH.

LEVEL IN SAVINGS TO A STILLHIGH LEVEL IS STILL POSITIVE FOR OVERALL CONSUMPTION.IT IS CERTAINLY WORTH WATCHING THE LOWER END OF THECONSUMPTION RANGE BECAUSE THAT IS THE MARGINAL CONSUMER.THAT'S THE MARGINAL DIFFERENCE THAT MAKES THE GROWTH RESULT.ANNMARIE: YOU MENTIONED DISRUPTIONS FROMTHE RED SEA. THE BRITISH CHAMBER OF COMMERCEHESITATING THEIR EXPORTS. WHAT IS IT MEAN FOR AMERICANBUSINESSES AND MANUFACTURERS. >> WE THINK ABOUT IT FROMINFLATION PERSPECTIVE BECAUSE.

IT IS THE SHIPPING COST THEFEEDS INTO YOUR OVERALL NUMBER. U.S.GOODS ONLY A SMALL AMOUNT OF THAT COST AND ONLY A SMALLAMOUNT OF THOSE SHIPPING GOODS GOES INTO THE OVERALL INFLATIONMETRIC. IT'S ALSO A VERY DIFFERENTENVIRONMENT FROM WHEN WE HAD SUPPLY DISRUPTIONS IN 20.WE DON'T HAVE THESE MASSIVE IMBALANCES IN SUPPLY AND DEMANDFOR GOODS. WE DON'T HAVE THIS BACKED UPSHORTAGE SO IT'S NOT AS WORRYING AS IT WAS BACK THENAND IT IS A SMALLER PART OF.

INFLATION AS WELL. >> GOOD TO CATCH UP AS ALWAYS.COULD YOU IMAGINE IF WE DID HAVE THOSE DYNAMICS AND WE HADTHIS TENSION IN THE RED SEA AND THESE ISSUES IN THE PANAMACANAL. >> IT'S THE REASON SO MANYPEOPLE OF BEEN SURPRISED TO TRYING THAT ON ENERGY.BECAUSE OF HOW DIFFERENT AND HOW QUICKLY IT HAS CHANGED.ANNMARIE: WITH THE RED SEA IT'S ALWAYSABOUT THAT GOODS INFLATION. WE ARE TALKING ABOUT WHAT'SGOING ON IN MACY'S AND WHAT.

DOES THIS MEAN FOR LOWER ENDCONSUMER. IF YOU HAVE MORE DISRUPTIONSEVEN IN ENERGY OR GOODS IT'S GOING TO HIT THE LOWER ENDCONSUMER. >> CAN WE TALK ABOUT CONSUMERCONFIDENCE AS WELL. UNEMPLOYMENT'S BEEN AT 4% FOR24 MONTHS. UNEMPLOYMENT, A ROCK-BOTTOM.EQUITY MARKETS ALL-TIME HIGHS. FINANCIAL CONDITIONS BASED ONWHAT HAPPENED SEEMED TO BE WIDE OPEN TO ISSUE DEBT AT THEMOMENT. WE EXPECT CONSUMER CONFIDENCETO KEEP REBOUNDING. LISA:.

IT IS THE CURRENT CONDITIONPEOPLE FEEL IS POSITIVE BUT THEIR EXPECTATIONS FOR THEFUTURE AND EVERYONE ELSE TENDS TO BE NEGATIVE.THAT'S WHAT WE ARE AT RIGHT NOW. PEOPLE HAVE SEEN THIS UPWARDTREND. IT'S HINGED TO THE NEW CYCLE. ANNMARIE:RETAIL SALES WERE SOFTER AND THEN WE HAD THAT SPIKE ININFLATION BUT NO ONE WAS EXPECTING. WE HAD THREE MONTHS OF HIRETREND, OF THE WHITE HOUSE LOVES.

WHEN THE COMFORTS — CONFERENCEBOARD COMES OUT. IF THAT WAS STARTING TO SOURTHAT CAN UP AND SOME OF THEIR MESSAGE. JONATHAN:THEY LOVE IT IF IT'S GOOD. IF IT'S NOT THEY PROBABLY WON'TBE TALKED ABOUT. WE WILL FIND OUT IF IT'S GOODAT 10:00 EASTERN TIME. POSITIVE BY .1%.HERE'S YOUR BLOOMBERG BRIEF WITH DANI BURGER. DANI:THE GLOBAL ECONOMY HAS A GROWING CHANCE OF PULLING OFF ASOFT LANDING ACCORDING TO A DRAFT OF THE G20'S CLOSINGSTATEMENT AT THIS WEEK'S.

MEETING IN BRAZIL. THE TEXT IS NOT FINAL, THEDRAFT SAYS RISK TO THE GLOBAL ECONOMIC OUTLOOK, UPSIDE RISKINCLUDE FASTER THAN EXPECTED DISINFLATION.GLOBAL FINANCE MINISTERS ARE EXPECTED TO ARRIVE IN MEETINGSTOMORROW. SHARES OF LOEWS OR FALLINGDESPITE THE COMPANIES REPORTED FOURTH QUARTER COMPARABLE SALESTHAT BEAT ANALYST ESTIMATES. IT WAS STILL A DECREASE WITHTHE HOME-IMPROVEMENT RETAILER CITING A SLOWDOWN IN DIY DEMANDAND UNFAVORABLE JANUARY WEATHER.

DESPITE THAT THE COMPANY CEOSAYS WE REMAIN CONFIDENT IN THE LONG-TERM STRENGTH IN THEMARKET. EXPEDIA CUTTING 9% OF ITSWORKFORCE AS THE COMPANY ATTEMPTS TO REVIVE GROWTH ANDREGAIN MARKET SHARE. THE SEATTLE-BASED FIRM WILL CUT1500 JOBS ACROSS THE GLOBE. EARLIER THIS MONTH EXPEDIAREPORTED DISAPPOINTING HOLIDAY RESULTS AND ISSUED A WEAKERTHAN EXPECTED OUTLOOK FOR THE CURRENT QUARTER IT ALSOANNOUNCED A LEADERSHIP SHAKEUP. THAT'S YOUR BLOOMBERG BRIEF.JONATHAN: HOPE INCREASING FOR A.

CEASE-FIRE IN GAZA. >> MY NATIONAL SECURITY SAYS WEARE WE ARE NOT DONE YET. HOPEFULLY THE NEXT MONDAY WEWILL HAVE A CEASE-FIRE. >> LIVE FROM NEW YORK THIS ISBLOOMBERG. JONATHAN:STOCKS ARE POSITIVE BY .1% ON THE S&P 500 DRIFTING LOWER, A10 YEAR YIELDS DOWN A BASIS POINT.LATER ON TODAY THIS AFTERNOON, $42 BILLION OF SEVEN-YEARNOTES, TO MARKET. UNDER SURVEILLANCE THIS MORNINGHOPE INCREASING FOR A.

CEASE-FIRE IN GAZA. >>I HOPE BY THE BEGINNING OF THE WEEKEND. MY NATIONAL SECURITY ADVISORTELLS ME WE ARE CLOSE PRAYED WE ARE NOT DONE YET.MY HOPE IS BY NEXT MONDAY WE WILL HAVE A CEASE-FIRE. >> THE LATEST, THE PRESIDENTEXPRESSING OPTIMISM FOR TEMPORARY PAUSE IN FIGHTING INGAZA. ISRAEL AND HAMAS YET TO COMMENTON BIDEN'S REMARKS WITH ISRAELI.

OFFICIAL SAYING A GROUNDOFFENSIVE IS COMING BRADEN AARON DAVID MILLER JOINS US NOWFOR MORE. CAN WE START WITH THE COMMENTSWE HEARD FROM PRESIDENT BIDEN — FROM BENJAMIN NETANYAHU.SAYING HAMAS CONTINUES TO MAKE HE CALLS DELUSIONAL DEMANDS.WE KNOW WHAT THESE DEMANDS ARE? >> EARLIER IN THE NEGOTIATIONSTHE REASON THEY STALLED IS HAMAS WAS ASKING FOR 1500 ORMORE PALESTINIAN PRISONERS, SOME CONVICTED OF SERIOUSSECURITY OFFENSES SPECIFICALLY KILLING ISRAELIS.ONE OF THE REASONS WE ARE.

CLOSER TO A DEAL IS HAMAS SEEMTO OF WALKED BACK SOME OF THOSE DEMANDS.WE ARE NOT TALKING ABOUT AN INFLUENTIAL TRADE PRAYED 45HOSTAGES OR SO FOR 45 DAYS OF QUIET. AND PROBABLY HUNDREDS OFPALESTINIAN PRISONERS. IN TERMS OF THE HARD-COREPRISONERS PROBABLY MANY FEWER THAN >> HAMAS WANTED. >>BIDEN IS TALKING ABOUT THISCOULD HAPPEN AS SOON AS MONDAY AND THEN ON MARCH 10 IT'S THESTART OF RAMADAN. DOES ADIL HAVE TO GET DONEBETWEEN MONDAY AND SUNDAY FOR.

THIS TO BE SUCCESSFUL? >> I WAS SURPRISED THEPRESIDENT PUT A DAY ON THESE THINGS.ONE OF THE WORST OFFENSES YOU CAN COMMIT TO NEGOTIATION TOSIGNAL YOU'RE IN A HURRY. BUT I THINK HERE YOU HAVE ASITUATION WHERE THERE'S REAL URGENCY ON THE PART OF HAMASAND PERHAPS THE GOVERNMENT OF ISRAEL TO TAKE ADVANTAGE OF THEFACT MILITARY PRESSURE, HAMAS'S DECISION, PAYING ATTENTION TOTHE CONSTITUENCIES IN GAZA. THEY WREAKED HAVOC ON THEM AS ACONSEQUENCE OF THE TERROR SURGE.

ON OCTOBER 7.A RAMADAN PAUSE WOULD PLAY IN THEIR ADVANTAGE.THE ISRAELIS MIGHT BE GETTING CLOSER TO IDENTIFYING WHERE THEOTHER THREE ARCHITECTS AND IMPLEMENTERS OF THIS OCTOBERSEVENTH TERRORIST ARE PRETTY AND THAT POSES A FASCINATING,WHAT IF THE ISRAELIS ACTIVELY IDENTIFIED WHERE HE WAS IN THENEXT FEW DAYS. WITH A STRIKE TO KILL HIM.WHICH COULD JEOPARDIZE THE LOOMING AND PENDING HOSTAGEEXCHANGE. I THINK THE ANSWERS THEYPROBABLY WOULD.

>> I WANT TO PICK UP ON YOURFIRST POINT THAT THE DASHERS PRIZE THE PRESIDENT IS PUTTINGA SPECIFIC DAY ON THIS ARE THE FACT THAT A LARGE NUMBER OFARAB AMERICANS AND WISHING TO AND TODAY WILL VOTE UNCOMMITTEDON THEIR PRIMARY BALLOT. >> DOMESTIC WORK FOR REPUBLICANAND DEMOCRAT SECRETARY OF STATE AND PRESIDENTS.POLITICS HOVERS OVER ALL OF IT. I'M NOT SURE HOSTAGE EXCHANGEIS CAN FUNDAMENTALLY ALTER THE POSITION OF THOSE MICHIGANVOTERS WHO HOLD THE PRESIDENT RESPONSIBLE FOR HISPRETERNATURAL SUPPORT OF ISRAEL.

ENDING ISRAEL'S EFFORTS TOIDENTIFY AND CRUSH HAMAS IS MILITANT ORGANIZATION. I'M NOT SURE THIS PARTICULARDEAL IS GOING TO CHANGE THEIR MIND.WHAT MIGHT BE INVOLVED IF YOU CHANGE THE PICTURES IN GAZA ANDMAY THIS DEAL WILL ALLOW 45 DAYS OR SO TO DO THAT BUT WEARE BY NO MEANS AT THE END OF THIS WAR. LISA:YOU TALKED ABOUT PRESSURE ON HAMAS BUILDING.PRESSURE FROM WHO? >> THE IDF.THEY BEEN OPERATING THERE FOR.

WEEKS AND I THINK THEY HAVEMADE SIGNIFICANT PROGRESS IN TERMS OF ELIMINATING THEMAJORITY OF HAMAS BATTALIONS. THE SENIOR LEADERSHIP, THOSEWHO ACTUALLY PLANNED OCTOBER 7, THAT'S WHAT THE ISRAELIS WANTTO GET. WHETHER OR NOT THIS DEAL GOESTHROUGH AND EVEN IF IT DOES THE ISRAEL EASE ARE GOING TO BE INGAZA FOR AS LONG AS IT TAKES. FOR MR. NETANYAHU FRANKLY THATWOULD BE THE MOST VISIBLE MATERIAL GAIN OF A FIVE-MONTHWAR SO FAR AND FOR POLITICAL AND LEGAL REASONS IN ORDER TOSTAY IN POWER.

BENJAMIN NETANYAHU NEED SOMESORT OF VICTORY IN THIS WAR. >> THE REASON I ASK IS WE AREHEARING A LOT AND THERE ARE QUESTIONS ABOUT THE APPETITE TOCONTINUE THIS ESPECIALLY GIVEN SOME OF THE RATCHETING UP INTENSIONS. I'M INTERESTED IN WHAT'S GOINGON WITH SAUDI ARABIA AND WHAT'S GOING ON WITH RESPECT TOHEZBOLLAH AND THE SIMMERING TENSIONS AT THE NORTHERN BORDER.IS THERE A SENSE IRAN IS ALSO PRESSURING HAMAS TO COME SWORD– COME TO SOME SORT OF DEAL TO DE-ESCALATE WAS GOING ON IN THE.

MIDDLE EAST. >> I'M NOT SUREFRANKLY RIGHT NOW IRAN ACCORDING TO THE BESTINTELLIGENCE ESTIMATES SURPRISED BY THE OCTOBER 7ATTACK. I'M NOT SURE THE IRANIANS ARETHE KEY DRIVERS IN THE CALCULATIONS.I THINK POLITICAL AND FISCAL SURVIVAL.I THINK SIN WAR BELIEVES HE WILL SURVIVE THIS AND HAMASWILL CONTINUE TO EXERCISE A FAIR AMOUNT OF INFLUENCEPERHAPS EVEN CONTROL IN GAZA IN THE MONTHS AND YEARS TO COME.THAT'S WHAT DRIVING — WHAT IS.

DRIVING THIS. >> FASCINATING.ALWAYS APPRECIATE YOUR OPINION. THANK YOU FOR THIS.LET'S — THAT IS ONE WAR PRAYED HERE IS ANOTHER.SOME COMMENTS FROM JANET YELLEN MEETING WITH THE PRINE –FINANCE MINISTERS. THE G7 NATIONS AND AUSTRALIAFROZE RUSSIAN ASSETS. MUCH OF THAT IN THE EU MORETHAN TWO THIRDS OF THAT. THIS IS WHAT SECRETARY YELLENIS SAYING WITH PREPARED REMARKS. I BELIEVE THERE'S A STRONGINTERNATIONAL LAW, ECONOMIC AND.

MORAL CASE FOR MOVING FORWARDAND USING THIS PHRASE UNLOCKING THE VALUE OF THOSE ASSETS TOBOLSTER UKRAINE'S DEFENSE AGAINST RUSSIA. ANNMARIE:THERE'S BEEN A LOT OF DEBATE ABOUT WHICH PRECEDENT THISWOULD SET AND WHAT HAPPENS IN TERMS OF THEIR VALUE DO YOUGIVE THAT VALUE TO UKRAINE. THERE WAS SOME TALK OF THEINTEREST THAT SOME OF THESE ASSETS ARE ACCRUING. TWO THINGS.THIS IS GOING TO BE A HUGE CLOUD OVER THIS G20 BECAUSE YOUHAVE COUNTRIES WHO DO NOT AGREE WITH THIS STATEMENT.AND THERE'S BEEN A LOT OF.

DIVERGENCE BETWEEN THE GLOBALSOUTH AND THE WEST. KICK THIS DOWN THE ROAD.THIS COULD BE NOTHING THAT HAPPENS IN TERMS OF OURREPORTING UNTIL THE G7 MEETS. THE UNITED STATES WILL WANT TOACT WITH EUROPE WHEN IT COMES TO THESE ASSETS.IT WILL BE HIGHLY CONTROVERSIAL. LISA:UNLOCK THE VALUE, WHAT DOES THAT MEAN?IT MEANS TAKE THE MONEY. YOU HAVE ASSETS FROZEN AND NOWYOU TAKE THOSE ASSETS. AND YOU USE THEM TO GIVE THEMTO UKRAINE.

SOME PEOPLE SAY THIS IS A GREATWAY TO PAY FOR THE OFFENSIVE BY UKRAINE BUT TO ANNMARIE'S POINTIT RAISES QUESTIONS, WHAT KIND OF RISK IF PEOPLE ARE TRYING TODECIDE WHETHER THEY PUT THE MONEY WITH YOU AND YOU'LL BE ACUSTODIAN WHAT KIND OF REPUTATIONAL RISK WILL THATCREATE PRAYED — CREATE. ANNMARIE:THE WEAPONIZATION OF THE U.S. DOLLAR. WE SPOKE TO THEM LAST WEEK ANDHE BASICALLY SAID TBD BUT LEANING IN ON THEY WOULD LIKETO SEE SOMETHING HAPPEN.

I THINK JANET YELLEN USING THEWORD MORAL IS INTERESTING. JONATHAN:THIS MONEY, THESE ASSETS ARE EUROPEAN NATIONS AND FRANCE ASWELL. THEY ARE NOT IN DIRECT CONFLICTWITH RUSSIA RIGHT NOW. THAT'S WHY LEGALLY THIS GETSINTERESTING. CERTAINLY IT'S WHY IT'S MAKING.THERE'S A QUOTE IN THE STATEMENT IS THIS REALLY ABOUTUNLOCKING VALUE OR NEGOTIATION TACTIC. THIS WOULD BE A DECISIVERESPOND TO RUSSIA'S THREAT TO GLOBAL STABILITY.AND WOULD INCENTIVIZE IT TO.

COME TO THE TABLE TO NEGOTIATEA JUST PEACE WITH UKRAINE. THE LATEST FROM THE SEC. THISMORNING IN BRAZIL. COMING UP, MACY'S REPORTING ANESTIMATED FOURTH-QUARTER RESULTS BUT ANNOUNCING PLANS TOCLOSE ON 150 STORES. JONATHAN:EQUITIES DOING OK, POSITIVE BY 1%.HE IS A SNAPSHOT ON THE NASDAQ, POSITIVE.UP BY ABOUT POINT CHRIS — UP BY ABOUT .6%.THROUGH THE FRONT AND, — FROM THE FRONT END, YIELDS ARE ALITTLE BIT LOWER.

468.50 — 4.6850. LISA:THERE IS A CONCERN ABOUT THE DEBT AND THE GOVERNMENTSHUTDOWN, TECHNICALLY, THERE SHOULD BE.IT NEVER SEEMS TO SHOW UP. >> THERE IS A DEBATE RIGHT NOW.WHAT REASON IS THERE FOR SELLOFF?THIS IS WHAT WE HEARD FROM GOLDMAN. TWO VERY DIFFERENT VIEWS THERE. >> — LISA: RIGHT NOW YOU ARESEEING PRETTY GREAT GROWTH AND.

INFLATION SURPRISED TO THEUPSIDE. IF YOU PUT THAT TOGETHER, ITRAISES THE QUESTION OF HOW HIGH RATES CAN GO AND WHAT THE BASEINFLATION WILL BE. JONATHAN: I WILL NOT BORE YOU WITH THEEURO AND I WILL EXCITE YOU WITH THE YEN. WE HAVE A MOVE AT .3%. INFLATION COMES IN AND PEOPLEARE ASKING THE QUESTION, IS IT TIME TO GO AT THE BOJ? LISA: ARE THEY GOING TO HAVE APOSITIVE RATE? UP CONSIDERABLY BECAUSEINFLATION IS COMING IN AT 2%.

JONATHAN:IT HAS BEEN A LONG TIME. WE HAVE SOME NUMBERS FOR YOULITTLE BIT LATER. HOW QUICKLY WE CAN GET BACK TO100. HERE ARE YOUR TOPSOIL. PRESIDENT BIDEN EATINGCONGRESSIONAL LEADERS IN THIS RUNNING, LOOKING TO STRIKE ADEAL TO AVOID GOVERNMENT SHUTDOWN.SPEAKER MIKE JOHNSON AND MINORITIES EITHER MITCHMCCONNELL AMONG THOSE IN ATTENDANCE WITH A DEADLINE FORGOVERNMENT AGENT IS COMING AS SOON AS SATURDAY.FACING A MARCH 8 DEADLINE.

ANN-MARIE, CAN WE AVOID ASHUTDOWN? ANN-MARIE: MARCH 1 IS IMPORTANT.BUT THE BIG ONE WOULD BE MARCH 8. I WOULD ARGUE, IGNORE THESEDATES AND LOOK AT APRIL 30. REGARDLESS WHAT HAPPENS, THEREWILL BE A 1% CUT BASED OFF THE MCCARTHY AND BIDEN FEEL. THE QUESTION OF IF HE KEEPS THEGAVEL, WILL THEY SHOW MORE GRACE TO HIM?IT IS A GREAT QUESTION. ONCE HE DOES A DEAL WITH HERCATS THAT QUESTION WILL BECOME FRONT AND CENTER. JONATHAN:.

WE WANT TO DO A CHECK OF SHARESOF ALPHABET REBOUNDING AFTER FALLING YESTERDAY BY MORE THAN4%. THE RISK TO AI POWEREDCOMPETITION. CONCERNS GOING AFTER GOOGLECAUSED ITS AI FEATURE AFTER DRYING CRITICISM OVERINACCURATE HISTORICAL DEPICTIONS OF RACE. ULTIMATELY, HAVING PUT IDEOLOGYBEFORE FACTS? IF THEY HAVE, HOW MUCHCONFIDENCE WILL BE LOST IN THIS BUSINESS? LISA:IT RAISES A BIGGER QUESTION.

WHAT KIND OF BIASES ARE GETTINGBAKED INTO THE MODELS THAT WE HAVE NOT HAD TIME TO IDENTIFY?ESPECIALLY GIVEN THE COURT CASE OF THE COURT THAT THEY AREDEALING WITH WITH MODERATION OF SOME OF THESE PLATFORMS. THISIS A HUGE ISSUE. JONATHAN: WHO CAN WE TRUST TO REGULATE IT?LISA: YOU RAISE A GREAT POINT ANDTHIS IS ONE OF THE REASONS WHY THEY WOULD ARGUE THAT IT ISMESSY. BUT AT LEAST IT FOSTERS INNOVATION FOR PEOPLE TO TRYTHINGS. THE REAL CHECK MIGHT BE THECONSUMER. AMBURGEY:.

WHY WOULD THEY RELEASE THIS IFIT WAS NOT READY FOR PRIME TIME? SOME OF THE IMAGES AREINACCURATE OR EVEN OFFENSIVE. WHY WOULD YOU PUT OUT ANYTHINGTHAT IS INACCURATE OR OFFENSIVE? JONATHAN:IN HOUSE, THEY TESTED IT AND THIS WAS THE DESIRED OUTCOME.THAT WOULD BE VERY CONCERNING. SIBLINGS TO BLOCK KROGER'SACQUISITION OF ALBERTSON'S, ARGUING A MERGER WOULD LEAD TOLOWER WAGES AND HIGHER FOOD PRICES. THE BIGGEST GROCERY DEAL EVER,LEADING THEM TO COMPETE WITH.

AMAZON AND WALMART.THEY MAKE A GOOD ARGUMENT, BUT I'M NOT SURE WHAT THAT IS WORTHON THIS FRONT. LISA: THERE IS A LOT — THERE ARE ALOT OF QUESTIONS. THERE ARE DIFFERENT THRESHOLDSTHAT THEY HAD. JONATHAN: AT 10:00 A.M.EASTERN TIME, MACY'S REPORTS EARNINGS THAT BEAT ESTIMATES.THE COMPANY ALSO ANNOUNCING PLANS TO CLOSE 100 50UNDERPERFORMING LOCATIONS AND AN EFFORT TO WARD OFF CERTAININVESTORS. A YEAR OF TRANSITION ANDINVESTMENT.

JOINING US NOW TO DISCUSS THESECTOR AND BUSINESS. THANK YOU FOR BEING WITH US.TRADITIONALLY WE TALK ABOUT MACY'S AND BLOOMINGDALE'S BEINGTHAT ANCHOR RETAILER. HOW HAS THAT CHANGED AND HOWHAVE THINGS DEVELOPED FOR YOU? >> THEY ARE CONSIDERABLYSMALLER THAN THE REGIONAL MALLS, SO FOR US, ANCHORRETAILER IS ARE IN THE 35,000 SQUARE FOOT RANGE.FAR LESS RELYING ON ANY ONE TENANT, BUT THEY ARE STILLGREAT DRAWS. THEY STILL HAVE AN OUTLETBUSINESS.

BOTH OF WHICH THEY FACILITATEBRANDS THAT WOULD NOT GET CERTAIN LIFESTYLE STORIES.JONATHAN: EIGHT USUALLY GOES SOMETHINGLIKE THIS. IT IS NOT FOR YOU, IS IT? >> EVER SINCE COVID, THE OPENAIR SHOPPING CENTER HAS BEEN THE HIGHLIGHT IN OUR SECTOR.PEOPLE LIKE A PLACE WHERE THEY CAN GATHER.OUTLET CENTERS OF 10 TO 15 YEARS AGO ARE EVOLVING.WE ARE CHANGING THE USES AND FILLING SOME OF THAT BACON FROMCOVID WITH DIFFERENT USES, NOT.

NECESSARILY OUTLET USES.JOHN RETAILERS WERE PEOPLE WANT TO COME AND SHOP EVERY WEEK ASOPPOSED TO ONCE A QUARTER. THE CYCLE AND HOW MUCH ARE YOUSEEING THAT BIFURCATION WITH RESPECT TO SOME OF THE LOWERINCOME SHOPPERS OR PEOPLE LOOKING FOR DISCOUNTS AND THOSEWILLING TO GO TO THE UPPER END TYPE OF PRODUCTS? ? SEE MACY'S AS A COMPETITOR FORUS. FOR US, IF WE CAN CREATE MORETHEATER AND EXCITEMENT, IF WE CAN CREATE MORE OF ANENTERTAINING ENVIRONMENT FOR.

PEOPLE TO SHOP, YOU CAN SHOP THE ENTIRE LIFESTYLE. THE BRAND AND THE DEPTH OF THEPRODUCT IN ONE ENVIRONMENT WEATHER SERVICE — THAT IS AHUGE PART OF THE BUSINESS AS WELL. EVERYWHERE ONE CAN SHOP, THEREIS NOTHING MORE SATISFYING TO A CUSTOMER.IT HELPS TO CLOSE THE DEAL SOMETIMES.WE WANT TO MAKE SURE THAT WE PROVIDE SERVICE WHERE A LOT OFOTHER VENUES DO NOT. LISA:.

I NEED SOMEONE TO TELL ME THATI LOOK GOOD BEFORE I BUY SOMETHING. THERE ARE SO MANY BROADERECONOMIC QUESTIONS TIED TO YOUR BUSINESS TO UNDERSTAND HOW MANYPEOPLE ARE WILLING TO SHELL OUT $200 A DAY FOR THE EXPERIENCEOF WALKING UP AND DOWN THE MALL AND BUYING SOME FOOD IN THEPROCESS. ARE YOU SEEING GREATER FOOTTRAFFIC INCREASING OR A PUSHBACK WITH RESTRAINT BYCONSUMERS WHO HAVE GOTTEN STRETCHED?.

>> OUR TRAFFIC NUMBERS SEEMPRETTY CONSISTENT. A LOT OF THAT IS BECAUSE WE ARECLOSER INTO WHERE THE PUBLIC IS SHOPPING NOW.THE OLD NARRATIVE, WE WERE SO FAR OUT THAT IT REQUIRED ASPECIAL TRIP AND A SPECIAL DRIVE.NOW PEOPLE ARE MOVING TO A LOT OF GEOGRAPHIES WHERE OURCENTERS ARE ANY BECOME THE CENTER OF THE ENERGY. IN ORDER FOR US TO COMPETE INTHOSE MARKETPLACES, WE NEED MORE VARIETY.

IT COMES WITH OUTLET RETAILERSAND BETTER FOOD AND BEVERAGE, RESTAURANTS, SIT-DOWN,ENTERTAINMENT, THINGS FOR PEOPLE TO DO. LISA: WHEN I GREW UP, GOING TO TANGERWAS A HIGHLIGHT. HOW DO YOU SEE RETURNINGCUSTOMERS SO THAT IT IS NOT JUST, I'M GOING TO GO TO THEOUTLET ONCE A YEAR. >> LET'S TAKE DEER PARK AS ANEXAMPLE. TAKE A LOOK AT A CENTER LIKETHAT. IT IS UP TO US TO MAKE SURETHAT CONTINUE TO DRIVE.

THE BRANDS THAT PEOPLE LIKE. IT IS A LOT OF COMPETITION TOGET PEOPLE OFF THE COUCH AND INTO A SHOPPING CENTER.YOU HAVE TO HAVE THE BRANDS THAT THEY LIKE. A LOT OF THESE BRANDS THAT YOUONLY SAW ONLINE, BUT NOW YOU ARE SEEING THESE BRANDS ANDBRICKS AND MORTAR FORMAT. EMORY:IS THAT IT IS LESS EXPENSIVE THAN A MALL. WHY IS THAT? >> IS A CONSIDERABLE CHARGE.IN OUR CENTERS, WHEN YOUR OPEN.

AIR, THERE IS FAR LESS ABOUT ITRENTS TO DIVIDE AMONGST RETAILERS.WE ARE PRIMARILY SOUTHERN BASED. A HUGE PART OF THE NARRATIVE.WE JUST BOUGHT A SHOPPING CENTER IN ALABAMA.IT SNOWED IN ALABAMA. THERE IS A PIECE OF THATTHAT WE AT LEAST SEE SOME SAVINGS ON. JONATHAN:CAN WE TALK ABOUT CRIME IN RETAIL? IT WAS REALLY BAD. WHAT IS THE REALITY IN YOURBUSINESS AND IS IT REGIONAL OR STATE-BY-STATE?.

>> I THINK IT IS STATE-BY-STATE.IT IS SOMETHING THAT WE ARE ABSOLUTELY — WHEN WE DIED IN,TECHNOLOGY HAS PLAYED A GREAT ROLE IN HELPING US THINKTHROUGH THAT. HOW DO YOU FIGHT OFF ORGANIZEDCRIME? WE HAD GREAT ACTIVITY. ALERTS WHEN THERE ARE THINGSTHAT ARE PLANNED AND WE HAVE GREAT SURVEILLANCE ON SITE,DIGITAL SURVEILLANCE AND DRONE SURVEILLANCE SO THAT IF ANINCIDENT DOES OCCUR. JONATHAN: HAS THIS BEEN PASSED TO YOU? >> WE ARE PARTNERS WITH A LOTOF THE RETAILERS IN OUR CENTERS.

WE TALKED ABOUT THE COST. WHENSOMETHING HAPPENS AT A CENTER, IT IS TAGGER ON THAT.WE SAY WE PROVIDE A FUN, ENTERTAINING AND SAFEENVIRONMENT FOR OUR SHOPPERS TO COME EVERY DAY AND WE WOULDLIKE TO BE ABLE — THAT SHOULD BE OUR HALLMARK. JONATHAN: YOU CAN CATCH UP WITH DANNY. >> PRESIDENT BIDEN:HE CANNOT EVEN REMEMBER HIS WIFE'S NAME.

NUMBER TWO, IT IS ABOUT HOW YOU– HOW OLD YOUR IDEAS ARE. >>BIDEN IS STRUGGLING TO RELIEVE AMERICA'S FEARS THAT HE IS TOOOLD FOR — TO RUN FOR ANOTHER TERM.MANY DEMOCRATS HAVE CONCERNS ABOUT BIDEN'S AGE AND LESSONHAVE — HALF HAVE THE SAME CONCERNS ABOUT TRUMP. BELIEVING THAT THE SEC ISUNLIKELY TO APPROVE A PUBLIC OFFERING BECAUSE OF OPERATIONSIN CHINA. THEY COULD ALSO CONSIDER HONGKONG OR SINGAPORE.

FILING FOR AN IPO WITH AVALUATION BETWEEN 80 BILLION AND $90 BILLION. A PRICE SHOCK. DECLINING PRODUCTION IN AFRICAHAS CONTRIBUTED TO THE PRICE JUMPING MORE THAN 50% THIS YEAR.THE NEW REGULATION WILL REQUIRE THAT CHOCOLATE MAKER IS — ACOSTLY EXERCISE THAT THREATENS TO DRIVE PRICES EVEN HIGHER.DONOVAN: THEY ARE COMING AFTER YOURCHOCOLATE NOW. LISA, I AM JOKING.MORE FED SPEAK. >> THE MARKET IS NOT GOING TOCHALLENGE THE FED LIKE THEY DID.

LAST YEAR IN AUGUST ANDSEPTEMBER OF LAST YEAR. THIS IS A VERY DIFFERENTTIMEFRAME. JONATHAN: THIS IS BLOOMBERG.LISA: ABSOLUTELY NOT. ♪ JONATHAN: SESSION HIGHS AT 20%.ON YIELDS, DOWN A BASIS POINT ON THE 10 YEAR.UNDER SURVEILLANCE THIS MORNING. MARKETS DIGESTING MORE FEDSPEAK. >> THE MARKET IS NOT GOING TOCHALLENGE THE FED LIKE IT DID LAST YEAR IN AUGUST, SEPTEMBEROF LAST YEAR.

WE SAW THE SELLOFF.THIS IS A VERY DIFFERENT TIMEFRAME.THE FED IS TELLING US THAT THEY BOTH CUT RATES THREE TIMES ANDTHEY ARE NOT WILLING TO CHALLENGE. JONATHAN: URGING PATIENTS.HE SANG WITH INFLATION RUNNING ABOVE TARGET, DEMAND SHOWINGCONSIDERABLE MOMENTUM, MY OWN VIEW IS THAT THERE IS NO NEED TO PREEMPTIVELY ADJUST. NOTMUCH HAS CHANGED IN THE FED OUTLOOK OVER THE LAST FEWWEEKS, SO IT IS TIME TO.

EXERCISE SOME PATIENTS.THREE CUTS IN 2024. JOINING US RIGHT NOW, IT ISAMAZING. JANUARY, FEBRUARY, MULTIYEAR,IT IS HAPPENING AS WE PRICE OUT CUTS.THIS IS PROBABLY A LESSON FOR PEOPLE. DO NOT ASK ME.DID YOU ANTICIPATE THIS? >> THE FED PRICING, YES, THESUPPLY AND NARROWING OF SPREADS, CERTAINLY NOT.INVESTMENT-GRADE SPREADS ARE IN THE BOTTOM SEVENTH PERCENTILEOF HISTORY BUT THEY GO THROUGH THESE REGIMES OF REALLY TIGHTSPREADS.

A GREAT EXAMPLE AS THE LATE1990'S. BUT SPREADS WERE BELOW AVERAGEFOR SOMETHING LIKE THREE YEARS. I AM NOT CONFIDENT THAT WE AREGOING TO HEAD THAT WAY THIS TIME AROUND, BUT THERE ISEVIDENCE. LISA: IS THERE A BENCHMARK THAT WOULDCRACK SOME OF THE DEMAND FOR SOMETHING THAT SEEMSUNCOLLECTIBLE RIGHT NOW? I THINK THERE IS A LOT OFTENSION. BASED — THEY TEND TO BE SLOWMOVING ENTITIES. WHAT WE HAVE SEEN IS THAT FORMUCH OF THE LAST DECADE AND A.

HALF, THEY HAVE BEEN MOREHEAVILY OVERWEIGHT RISK ASSETS. NOW THAT CASH INFLOWS ARESUFFICIENT ENOUGH TO DRIVE THEIR OWN RETURNS, THEY AREALLOCATING INCREASINGLY TO THE CREDIT SIDE OF THINGS. IT IS DRIVING AND UNAPPRECIATEDAMOUNT OF DEMAND. LISA: IT RAISES THE QUESTION OF WHAT– THERE WAS A HOST OF REASONS IN THE HOUSING MARKET THATPEOPLE BELIEVE THAT THE FED FACES THAT LAST PROBLEM COME ARELATIVELY PAINLESS DISINFLATION IS LIKELY TOBECOME A MORE NUANCED PROCESS.

THE DATE RISK IS A DELAY TO THESTART OF CUT OR EVEN A SLOWER PROCESS.WHAT IS THE CONSEQUENCE OF THAT? IS IT FULLY PRICED IN A MARKETTHAT HAS GOTTEN ON THE WORD? >> WHEN I VIEW IT FROM MACROECONOMIC PERSPECTIVE, IT HAS BEEN ABSENT FOR A NUMBER OFYEARS SINCE. THE DIRECTION IN INTEREST RATESIS NOT SLOWING RAPIDLY. EACH OF THOSE CUTS HAS BEENABOUT 75 BASIS POINTS. LAST WEEK, THEY HIGHLIGHTEDSEVERAL. BUT I THINK IT IS INDICATIVEWHAT THE MARKETS ARE PRICING.

RIGHT NOW.THE PERIOD OF ECONOMIC GROWTH THAT SUSTAINS LONGER THAN WHATWE THOUGHT. JONATHAN: GOOD TO GET YOUR VIEW ON THINGS.JUST THINK ABOUT IT. RATES HAVE GONE ABOVE WHATPEOPLE THOUGHT THEY WOULD BE. THEY HAVE STAYED THERE LONGERTHAN PEOPLE THOUGHT AND UNEMPLOYMENT SAT AT 4%.WE ARE TALKING ABOUT RECORD DEBT ISSUANCE. LISA: DOES THIS MEAN THAT THE LAGSWERE NOT IN EXISTENCE OR THEY ARE SUPERLONG?THIS IS THE QUESTION.

THEY ARE NOT GOING TO BEAFFECTED BY SOME OF THE RATE HIKES OR IS IT SOMETHING THATIS A MORE SUSTAINABLE STRENGTH? JONATHAN: STEPHEN IS WITH US.GREAT CATCH UP WITH YOU. CAN YOU WALK US THROUGH HOWTHIS HAS SHAPED YOUR BUSINESS IN ANY WAY, SHAPE OR FORM? >> IT IS LIKE THE CONSUMER, WEWERE TALKING ABOUT TRADING DOWN THE CONSUMER, RATHER THANSPENDING THEIR DOLLARS ON LUXURY PRODUCTS, LOOKING FORVALUE. THERE HAVE BEEN ARTICLES WRITTEN ABOUT THE HIGHEST ENDCONSUMER, SHOPPING IN STORES.

WHERE THEY WERE ABLE TO GET THESAME PRODUCTS. THAT IS WHAT WE DO EVERY DAY.WE ARE SEEING A LOT OF CUSTOMERS WE HAD NOT SEENBEFORE INVESTIGATING AND LOOKING AT OUR PRODUCT. I THINK WE WILL — LISA:YOU WHO — YOU MANAGE A HOST OF PROPERTIES AND I WONDER IF ITIS TIME TO BE BUYING. THERE MIGHT BE A LIMITED SLEWOF BUYERS. OR IS THIS A PLACE WHERE YOUMANAGE A LITTLE MORE CAREFULLY? >> LAST QUARTER, WE BROUGHT TOMARKET.

WE OPENED IN OCTOBER AND WEPURCHASED TW — TWO PROPERTIES AND HUNTSVILLE, ALABAMA WAS ANOUTLET. IT IS OUR FIRST PORTFOLIO THATIS NOT OUTLET OR PRICE FOCUSED. WE THINK THAT MAKES SENSE BECAUSE OF THE TEAM FOCUSING ONTHESE OPERATIONS AND MARKETING. A KENEXA OUTLETS SPECIFICALLY.LISA: DO YOU THINK IT IS A GOOD TIMETO EXPAND BUYING PROPERTIES DUE TO WHERE RATES ARE? >> WE HAVE GREAT ACCESS TOCAPITAL AND UNTAPPED LINES OF.

CREDIT. OUR BALANCE SHEET IS VERY SOLIDAND WE ARE DEFINITELY IN GROWTH AND ACQUISITION MODE.WE LIKE THE SOUTH. WE HAVE BEEN VERY SUCCESSFUL INTHE SOUTH. OPEN AIR SHOPPING CENTERS,HOURS OF OPERATION. IT WORKS FOR US, FOR SURE.WE ARE A SOUTHERN BASED COMPANY. WE HAVE GROWN UP IN THATMARKETPLACE, SO WE KNOW IT PRETTY WELL.OUR LAST ACQUISITIONS, WE ACQUIRED IN NORTH CAROLINA ANDALABAMA. JONATHAN:.

IT IS EASY TO DO BUSINESS INCERTAIN STATES THAN OTHERS. >> DEFINITELY.WHEN WE BUILD A NEW SHOPPING, IT IS REALLY THAT COMMUNITY. IT IS — WHEN THEY AREPRO-BUSINESS, IT WORKS OUT GREAT. WHERE DO THEY COME FROM? THEY COME FROM THAT LOCALCOMMUNITY. FROM A JOB NETWORK AND JOBCREATION POINT OF VIEW. BUT ALSO A TAX GENERATOR.JONATHAN: I THOUGHT PEOPLE WENT TOFLORIDA BECAUSE THE WEATHER WAS.

NICE.I DID NOT KNOW IT WAS ABOUT THE TAXES. IT IS ABOUT THE WEATHER, OFCOURSE IT IS. LISA: CAN YOU CAN — CAN YOU IMAGINEIT RAINING TO EVENTUALLY? JONATHAN:THIS IS BAD HUMOR TODAY. REALLY BAD. DANA PETERSON AT THE BOARD.GOOD MORNING. EQUITIES ARE POSITIVE.UP BY .2%. >> MACROECONOMIC DATA IS NOTBEING CONSIDERED AS SERIOUSLY.

AS THE LACK OF NVIDIA RESULTS. >> WE REALLY HAVE NOT BROKENENOUGH YET TO DO THE DAMAGE. >> THE HIGHER THE ODDS THAT WESEE A SLOWDOWN IN GROWTH. >> THEY ARE IN NO HURRY. >> THIS IS BLOOMBERGSURVEILLANCE. JONATHAN: LIVE FROM NEW YORK CITY, GOODMORNING. THIS IS BLOOMBERG SURVEILLANCE.I AM JONATHAN FERRO. EQUITY FUTURES NEW SESSIONHIGHS CLOSE TO 2% HIGHER ON S&P 500.30 MINUTES AWAY FROM DATA IN.

AMERICA. LISA: BASICALLY HOW MUCH OURCOMPANIES ORDERING? A GOOD PORTION OF THOSE GOODS,PEOPLE FIND OUT ABOUT THAT, BUT HOW MUCH CONFIDENCE TOCOMPANIES HAVE TO KEEP SPENDING WHERE WE ARE SEEING SOMEWHAT OFA RECESSION. JONATHAN: IT COMES — WITH A CARES A LOT ABOUTCREDIT, OFF THE BACK OF THAT, LOOK AT THE DATA ITSELF. FOR TWO YEARS, IT HAS PLAYEDTHIS ADMINISTRATION.

WHY ISN'T THAT TRANSLATING THEHIGHER CONSUMER CONFIDENCE? ANNE-MARIE:THEY WANT TO TALK ABOUT THE MICHIGAN SURVEY AND THE PRIORTHREE MONTHS WE HAVE GOTTEN FROM THE BOARD AND HOWAMERICANS ARE FEELING ABOUT THEIR ECONOMIC CONDITIONS.THEIR OUTLOOK FOR THE NEXT SIX MONTHS. SOME OF THAT DATA WITH HIGHERINFLATION, IS THAT GOING TO IMPACT WHAT WE SEE FROM THESURVEY? AND THEN HOW DO THEY TURN THATMESSAGE AROUND? LISA:.

WEDGED IN BETWEEN, HOW MUCH OFTHAT IS PART OF THE STORY. YOU CAN TRYING TO BUY SOMETHING.LISA: SERIOUSLY, THAT DOES FEATUREINTO YOUR SENSE OF CONFIDENCE AND STABILITY. JONATHAN:LET ME TELL YOU ABOUT JANET YELLEN.SHE MADE SOME COMMENTS AT A PRESS CONFERENCE.FINANCE MINISTERS, THE OUTLOOK FOR THE ECONOMY QUITE FAVORABLEON INFLATION. IT WILL MOVE CLOSER TO 2% ASTHE YEAR GOES ON.

LISA: THIS WAS CONSENSUS THAT PEOPLESEEM TO BE QUESTIONING THAT. AROUND 3%. CAN THE FED STILL CUT RATES?CAN YOU GET THE SENSE THAT RATES ARE GOING MUCH LOWER, ORIS IT IS THIS A NEW PARADIGM? JONATHAN:DO YOU WANT TO RUB IT IN ABOUT YOUR MORTGAGE AGAIN? LISA: IT IS — IT HAS NOT AFFECTEDHOUSING PRICES, WHICH IS A SHOCKING ASKED OF IT. JONATHAN:.

THANK YOU FOR THINKING OF IS –OF US. WE APPRECIATE IT. THE PARTNERS EXPECTING APARTIAL GOVERNMENT SHUTDOWN. LOOKING AHEAD TO THE DATA.STOCKS LOWER AFTER A RECORD RALLY.THE TOYA FERNANDEZ SAYING NOW IS THE TIME TO BE SELECTIVE. THE ENTIRE MARKET WILL BE DRY– DRAGGED DOWN, BUT YOU CAN BE OPPORTUNISTIC IN THE MEANTIME. ASSOCIATED WITH TRIMMING SOMEOF THESE NAMES. HOW BIG IS THAT FOR YOU?.

>> WE HAVE BEEN ON A — ON ANISLAND FOR A WHILE. AHEAD OF THEMSELVES WHEN ITCOMES TO TIMING. WE DO NOT MIND BEING OUT BYOURSELVES A LITTLE BIT, BUT WHEN YOU HAVE LONG-TERMINVESTORS, YOU WANT TO HAVE EXPOSURE TO THESE NAMES, BUTWHEN YOU HAVE THE RUN UPS THAT YOU HAVE HAD, NVIDIA HAD GREATEARNINGS. WHEN YOU HAVE A RUN-UP LIKEWHAT YOU HAVE SEEN, IT MAKES SENSE THAT YOU SHOULD GO IN ANDTRIM A LITTLE BIT OF THAT. WE ARE NOT SAYING TO LIQUIDATEYOUR HOLDINGS, BUT WE DO THINK.

THIS MOMENTUM WE ARE SEEING INTHE MARKET WILL GO ON FOR A LITTLE BIT LONGER. WE DO THINK THEY WILL RAISETHEIR HEAD AGAIN TOWARDS THE MIDDLE OF THE YEAR . JONATHAN:YOU SAID THE EQUITY MARKET WAS PRICE FOR PERFECTION. >> YOU LOOK AT THE VALUATION OFTHIS MARKET. THERE ARE NOT THAT MANY TIMESHISTORICALLY WHERE WE HAVE HAD THIS LEVEL, AND WHAT WE HAVE,IT HAS BEEN FOLLOWED BY SOME.

NOT GREAT NEWS IN THE MARKET. UP OVER 21%.THE EARNINGS PROPONENT — COMPONENT IS UP.YOU HAVE BEEN TALKING ABOUT THE CONSUMER THIS MORNING AND THESTRENGTH OF THAT AND THE MOMENTUM THAT GOES ALONG WITHIT. YOU CANNOT FIGHT THAT THE SHORTTERM, BUT WE DO THINK SIX TO 12 MONTHS OUT, YOU WILL SEE THEMARKET PULLBACK AND THAT IS WHAT YOU HAVE TO BE PREPAREDFOR. LISA: HOW MUCH IS THAT PURELYEVALUATION IN PLAY AND HOW MUCH.

IS THAT A CONCERN WITH GOOGLEAND GENERATIVE AIA, HAD A MODEL BECAUSE OF CONTROVERSY? >> IT IS NOT JUST THESATURATION OF THAT EITHER. WE SAY IT WAS PRICED TOPERFECTION. GOOGLE IS OBVIOUSLY AN EXAMPLE,BUT ALSO LOOKING AT SOME OF THE COST ASSOCIATED.THERE IS A LOT OF DEVELOPMENT THAT STILL NEEDS TO BE DONE ANDIT IS NOWHERE NEAR PERFECT. ALSO THERE IS A PERFECT EXAMPLEOF HOW THAT IS HAPPENING. WE DO NOT KNOW HOW MUCHPRODUCTIVITY WILL GROW FROM.

THIS. WE DO NOT KNOW HOW IT WILLAFFECT THE LABOR FORCE. THERE ARE A LOT OF UNKNOWNQUESTIONS TO HAVE SUCH AN IMPORTANT PRICING MECHANISM ONTHESE. IT HAS THE MOMENTUM THAT HASBEEN BUILDING IN THE EQUITY MARKET. LISA: YOU ARE NOT TALKING ABOUTWHOLESALE SELLING OR ANYTHING OF THAT NATURE.YOU TALK ABOUT A TRADABLE MOMENT. SO HOW DO YOU KNOW WHEN WE HAVESHIFTED FROM THIS PERIOD OF.

TIME WHERE PEOPLE ARE REALLYENTHUSIASTIC AND RISK ON? HOW DO WE KNOW WE ARE REACHINGTHAT TIPPING POINT OF WHAT COMES NEXT? >> YOU WANT TO WATCH ARECONFIDENT. HISTORICALLY, THERE IS A STRONGCORRELATION IN THE CHANGE IN CONSUMER SPENDING. WE SHOULD BE GETTING ACONTRACTION IN CONSUMER SPENDING AND WE HAVE TO WATCHSPREADS BECAUSE THERE'S — THEY ARE SO INCREDIBLY TIGHT.WHEN ARE WE GOING TO SEE SOME.

OF THOSE WIDENING OUT?THAT WILL BE A TELLTALE SIGN. WHEN YOU START TO SEE SOME OFTHOSE OPEN RATES COME DOWN, U-VERSE — YOU WILL START TOSEE YIELDS COMING LITTLE HIGHER. JONATHAN:WHY WOULD I LIKE TO GO ANYWHERE NEAR FINANCIALS? >> SIX TO 12 MONTHS OUT IS WHENWE THINK YOU WILL SEE SOME TURNING HAPPENING. BECAUSE OF THE PULLBACK — I'MNOT TALKING ABOUT SOME OF THE REGIONAL BANKS THAT HAVE BEENSTRUGGLING, BUT JP MORGAN IS.

OUR FAVORITE NAME IN THE SPACE.YOU CAN ADD SOME EXPOSURE THAT IS QUITE REASONABLEHISTORICALLY. IT IS MORE OF AN OPPORTUNISTICTRADE TO GET INTO SOME NAMES THAT HAVE BEEN PULLED BACKALONG WITH INDUSTRIALS SHOWING LEADERSHIP. YOU ARE SEEING SOME GOOD TRENDSIN THOSE SECTORS. JONATHAN:DOESN'T NOT CONCERN YOU THAT YOU ARE SELLING THE STOCK? >> KNOW.WHEN YOU LOOK AT THE BALANCE.

SHEETS, YOU KNOW THAT WHEN WEBUY EQUITY MEANS, WE ARE DIVING DEEP. IT IS ONE OF THE STRONGESTBALANCE SHEETS THAT WE SEE OUT THERE AND HISTORICALLY IT ISSITTING IN SUCH GOOD SHAPE VERSUS WHERE IT HAS BEEN IN THEPAST. WE THINK THAT THEY WILL CONTINUE TO BE THE LEADER INTHIS SPACE. JONATHAN: GOOD TO CATCH UP. SONY INTERACTIVE.A HEADCOUNT BY 8% GLOBALLY. LISA: ABOUT 900 PEOPLE.EVERY COMPANY IS TALKING ABOUT TRIMMING AROUND THE EDGES.JOBLESS CLAIMS KEEP COMING IN.

AT LOW LEVELS. JONATHAN: WE ARE SEEING A LOT OF GAIT –A LOT OF JOB CAP — CUTS IN THE GAMING INDUSTRY.LET'S GET AN UPDATE ON STORIES ELSEWHERE. >> EXPEDIA IS CUTTING 9% OF ITSJOBS FOR US. EXPEDIA WILL CUT ABOUT 1500JOBS GLOBALLY AND SOME EMPLOYEES WERE NOTIFIED ONMONDAY. EXPEDIA REPORTED DISAPPOINTINGRESULTS AND ANNOUNCED A SHAKEUP. BLOCKING KROGER'S TAKEOVER OFALBERTSON.

THEY JOIN EIGHT STATES ANDWASHINGTON DC AND IMPOSING A DEAL. THE MERGER WOULD BE THE BIGGESTDEAL IN HISTORY. ALPHABET SHARES FELL ALMOST4.5% YESTERDAY ON FEARS THAT MISSTEPS ARE PUTTING BUSINESSAT RISK. THEY HAVE WARNED THAT GOOGLE ISAN UNRELIABLE SOURCE AND COULD CREATE AN OPENING FORCOMPETITORS. JONATHAN: BIDEN PRESSURING CONGRESS, HEAD.>> I THINK WHAT ENDS UP HAPPENING YEAR IS THAT THEYKICK THE CAN FOR A WEEK OR TWO.

JONATHAN: THIS IS BLOOMBERG. ♪ JONATHAN:EQUITY IS THE THING JUST A BIT. . 10 HERE TODAY. BIDEN PRESSURING CONGRESS. >> THE ODDS OF AVOIDING ASHUTDOWN SHORT-TERM ARE PRETTY GOOD.THEY WILL PROBABLY KICK THE CAN A LEAK OR TWO. THE IDEA IS THAT I APRIL 30THERE WILL BE CUTS, IF THEY.

CANNOT MAKE A DEAL. JONATHAN:COMING A LEAK BEFORE A FULL ON SHUTDOWN. WE BELIEVE A PARTIAL SHUTDOWNIS COMING, BUT THE BIGGER ISSUE IS MARCH 8 WHEN FUNDING WOULDBE SHUT DOWN. A SHORT-TERM DEAL TO KEEP THEGOVERNMENT OPEN BEYOND MARCH 8 WILL EMERGE.HENRIETTA JOINS US NOW TO TALK ABOUT THOSE ON A LITTLE BITMORE. WHAT ARE THE ODDS NOW FOR THISSPEAKER THAT HE CAN MAKE A DEAL.

AND HOLD ON TO HIS JOB? >> MOST REMEMBER WHAT IT WASLIKE WHEN THEY WENT WITHOUT A SPEAKER.THERE IS NOT ANOTHER MEMBER WAITING IN THE LATE.WHAT YOU SEE THAT I THINK IS MOST INTERESTING IS MITCHMCCONNELL TRYING TO STEP IN AND SAYING, YOU OBVIOUSLY CANNOTRUN THE SHIP. WE WILL HAVE TO DO ANOTHERSHORT-TERM EXTENSION. AN EXTENSION TO MARCH 22 MAKESSENSE. WE DO NOT HAVE A DEADLINE UNTIL.

MAY 1, SO BY THAT TIME IT WILLHAVE EFFECTIVELY BEEN KICKED FOR ABOUT A YEAR.WHERE WE HAVE BEEN GOING STOPGAP AFTER STOPGAP. THE BIG TEST WILL BE IN MIDMARCH TO APRIL TIMEFRAME. THEY WANT TRANSGENDER CARE, ETC.THEY ARE GOING TO HAVE TO RESET REALITY, EVENTUALLY. EMORY:THEY ARE NOT GOING TO GET THIS POLICY PROVISIONS THAT THEYWANT. WHY DO THEY CONTINUE TO HOLDOUT?.

>> THAT WAS SUPPOSED TO BE THEMITIGATING FACTOR. IT WAS NOT DESIGNED TO HURTDEMOCRATS BUT IT WAS DESIGNED TO HURT REPUBLICANS YEAR FROMNOW. IF WE CAN GET AN AGREEMENT THATAVOIDS THESE AGGRESSIVE TO GOD CUTS, THAT IS WHAT MCCARTHYWOULD REALLY HELP REPUBLICANS. THAT WAS THE HOPE LAST YEAR. MAYBE THREE OR FOUR OF THEM ARESAYING, I FIND. BUT UNFORTUNATELY, MEMBERSTHOSE DISTRICTS HAVE A REAL PROBLEM WITH IT AND ARE NOTGOING TO LET THOSE CUTS GO INTO.

EFFECT.THEY'RE GOING TO HAVE TO RELY ON DEMOCRAT AGAIN. ANNE-MARIE:WE HAVE THE FRONT RUNNER FOR THE REPUBLICAN NOMINATIONTALKING ABOUT A MORE ISOLATIONIST TONE.ISN'T THAT MORE STRIKING NOW? >> YOU WANT AN ISOLATIONISTPOLICY POTENTIALLY WITH UKRAINE SPECIFICALLY, BUT YOU ALSO WANTA TREMENDOUS AMOUNT OF FUNDING AT THE U.S. BORDER.THAT IS CUSTOMS AND BORDER CONTROL, MORE EXTENSIONS.THAT IS STILL ADDITIONAL.

SPENDING, SO IT IS A MATTER OFREACHING A DEAL. THERE IS NO DELL CAPABLE OFGETTING THROUGH THE SENATE THAT THE RIGHT WOULD FIND ACCEPTABLE.NOT HAS BEEN THE CASE FOR AT LEAST A DECADE. ANNE-MARIE: TALKING ABOUT FOREIGN AID.WHEN DO YOU SEE THAT GETTING DONE? >> I DO NOT SEE A BIG BILLGETTING DONE ANYTIME SOON. I THINK PRESIDENT BIDEN WILL BEGIVEN AN OPPORTUNITY WITH THE MICHIGAN PRIMARY UNDERWAY.THERE IS A LOT OF ATTENTION ON.

THE MUSLIM THE THAT COULD VOTEUNDECIDED OR UNDECLARED. HE IS UP 70 POINTS IN THATSTATE VERSUS HIS OTHER CHALLENGER, BUT THIS IS HELPFULAS A WAY TO ILLUSTRATE THAT THERE MIGHT BE A CEASE-FIRETHAT WE CAN NEGOTIATE FOR RAMADAN. MONTHS MAY HAVE GONE BY.NOTHING IN TAIWAN. THERE IS STILL A LOT THAT THEYHAVE BEEN ASKING FOR. THERE IS A LOT OUT THERE THATTHEY NEED TO GET DONE AND HE IS TRYING TO COMPEL THEM TO MOVEIT FORWARD.

JONATHAN: REFERRING TO CLIENTCONVERSATIONS ABOUT POLITICS AND THIS YEAR'S ELECTION ASSTARING AT THE SUN. I WONDER IF THAT HAS CHANGED.HAVE THEY COME AROUNDS THE IDEA THAT THEY NEED TO POSITION FORWHAT MIGHT HAPPEN IN NOVEMBER? WHAT ON EARTH DOES THAT LOOKLIKE? WHAT ARE THEY SAYING? >> PEOPLE ARE REALLY EXCITEDABOUT IT. THERE ARE A LOT OF LUNCHES ANDMEETINGS WHERE PEOPLE JUST WANT TO TALK ABOUT INVESTORS ANDTRADE AS IF THE ELECTION WERE TOMORROW.THERE IS AN ETERNAL POWER.

STRUGGLE. THEY ARE CHOMPING AT THE BITFOR THAT AND THIS IS A HUGE EVENT. AND INVESTORS LOVE THAT. I WOULD SAY THAT WE ARE PRETTYCLOSE TO FEVER PITCH. THERE ARE PEOPLE WHO ASK THATQUESTION AND PEOPLE SAY, WHEN WILL THIS KICK INTO HIGH GEAR?BUT WE ARE THERE. IT IS ON. JONATHAN:HAVE YOU NOTICED WE HAVE REDUCED THIS TO ONE ISSUE?IF IT IS PRESIDENT TRUMP IT IS MASSIVE TARIFFS AND IF IT ISPRESIDENT BIDEN, THERE WILL NOT.

— THEY WILL NOT BE THAT BIG? >> WE HAVE THAT WHOLE LITANY OFPROVISIONS THAT IS CORPORATE AND INDIVIDUAL, WHETHERLONG-TERM — THERE IS TONS OF THAT STUFF AND THEN THETARIFFS, PEOPLE WERE SAYING, WHAT IS THE DIFFERENCE?SHOULD I INSERT IT AS A PLACEHOLDER?WHAT WILL THE DEFICIT BE? WHAT DO WE DO WITH BONDS? PEOPLE ARE JUST TRYING TO PICKWHICH ONE IS GOING TO COME FIRST AND I THINK IT ISIMPORTANT AS THEY GO INTO.

OCTOBER AND NOVEMBER. JONATHAN:WHAT A YEAR AHEAD. WE KNOW WHAT — WE KNOW WHICHONE CAME FIRST. IT WAS TAXES AND THEN IT WAS TARIFFS.ANNE-MARIE: THERE WILL BE AN EXTENSION OFTAX PRODUCTIONS. SO ALREADY YOU ARE GOING TO SEEADDITIONS TO THE DEFICIT REGARDLESS OF WHAT PRESIDENTCOMES IN. LISA:BUT NOTHING HAS REALLY WORKED OUT. IT IS A FRUSTRATINGCONVERSATION FOR ME. JONATHAN:DO YOU WANT TO TALK ABOUT.

MORTGAGES?TELL ME ABOUT YOUR MORTGAGE. LISA:IS THAT HOW YOU ARE GOING TO CALL ME DOWN FROM NOW ON?JONATHAN: A BUSY WEEK OF ECONOMIC DATAKICKING OFF. ECONOMIC DATA, UP NEXT. JONATHAN:SECONDS AWAY FROM ECONOMIC DATA. ON THE NASDAQ, UP .1%.YIELDS A LITTLE BIT LOWER. ON THE 10 YEAR, TOTALLYUNCHANGED. AT THE VERY LONG AND, JUSTABOUT UNCHANGED AS WELL.

TO WORK THROUGH THE DURABLEGOODS ORDERS AND TO STRIP OUT THE EFFECT OF THIS.MIKE MCKEE'S IS HERE WITH MORE. MIKE:WE DID ANTICIPATE A 5% DROP. EVEN TRANSPORTATION IS DOWN. A LOOK AT THE ACTUAL NUMBERS. THIS IS THE PART THAT GOES INTOGDP. THIS IS WHAT WAS FORECAST.SHIPMENTS ARE UP MORE THAN ANTICIPATED. IT SUGGEST A STRONGER GDPNUMBER AND IN COMBINATION THE.

CAPITAL GOOD ORDERS SUGGESTTHAT BUSINESSES HAVE NOT YET BEEN PULLED BACK TOO MUCH ONWHAT THEY ARE ORDERING AND SPENDING. JONATHAN:AN HOUR AFTER THAT WE WILL GET CONSUMER NUMBERS. LOOKING AT EQUITY MARKETS ANDLABOR DATA FOR TWO YEARS, ARE WE SEEING CONFIDENCE PICK UP?MIKE: WE ARE. EACH ONE IS DESIGNED A LITTLESEPARATELY. WE SAW SOME GOOD NEWS ON JOBSLAST TIME.

THE NUMBERS WATCH FOR ISPEOPLE'S ANTICIPATION OF WHAT THE INCOME WILL BE OVER THECOMING SIX MONTHS TO A YEAR. IF PEOPLE THINK THEY WILL MAKEMORE MONEY, THAT SUGGEST THAT THEY WILL CONTINUE SPENDING ATTHE RATE THAT THEY ARE DOING. THIS ONE DOES NOT HAVE THEPOLITICAL IMPLICATIONS. THEY DO NOT BREAK IT DOWN BYPOLITICAL PARTY. LISA: THEY HAVE TO TRACK IT MORECLOSELY. THEY HAVE BEEN A NUMBER OFDISCUSSIONS ABOUT HOW PRICING IS WE ACCELERATING, DESPITE THEFACT THAT YOU ARE SEEING.

MORTGAGE RATES WHERE THEY ARE. MIKE:THEY ARE WATCHING IT BUT ARE NOT AS CONCERNED BECAUSE THEYFEEL WHEN INTEREST RATES START TO COME DOWN, THERE WILL BE APENT-UP DEMAND TO SELL HOUSING AND WE WILL SEE A LOT MOREINVENTORY ON THE MARKET. NOBODY WANTS TO SELL THEIR 3%MORTGAGE. PEOPLE ARE JUST SITTING THERE,BUT A LOT OF PEOPLE ARE RETIRING AND THEY WANT TO MOVETO FLORIDA . THERE ARE YOUNG PEOPLE WITHKIDS.

MICHAEL AND EVERYBODY WASWONDERING ABOUT BOEING. NEW ORDERS. THAT IS WHY YOUR HEADLINE LOOKSO AWFUL. JONATHAN KLEIN EQUITIES JUSTABOUT POSITIVE. JOINING US NOW TO REACT, DANAPETERSON. WONDERFUL TO HAVE YOU WITH USON THE PROGRAM. HOW MUCH SHOULD LEAVE EDEN INTOTHIS DATA? GIVEN THE BOEING EFFECT THAT HEJUST WENT WITH — THAT HE JUST WENT THROUGH?.

>> IT IS AN INDICATOR OFSHIPMENTS IN THE PRESENT TENSE AND HOW WELL WE WILL SEEBUSINESS PICK UP. WE KNOW THAT BUSINESSES IN OUROWN SURVEY ARE NOT REALLY CHANGING INVESTMENT PLANS.IF THEY DID NOT PLAN TO DO ANYTHING, THEY ARE NOT GOINGTO, BUT THAT WILL BE A KEY THING. ESPECIALLY GIVEN THE DEGREE OFUNCERTAINTY. JONATHAN: IS THAT HAPPENINGSIMULTANEOUSLY? >> IT DID PICK UP AND IT WASPOSITIVE.

BUSINESSES ARE LOOKING ATCONTINUING TO RAISE WAGES AND ARE STILL CONCERNED ABOUTGEOPOLITICS, BUT THEY ARE OPTIMISTIC THAT THERE IS GOODNEWS FOR THE U.S. ECONOMY, GOING FORWARD. LISA: HOW PREDICTIVE ARE THEY? >> IT DOES A BETTER JOB TELLING US OF WHAT — OUR HEADLINE INCLUDESBUSINESS CONDITIONS, INCOME AND EMPLOYMENT.

WE DID SEE INFLATION REALLYBOTHER CONSUMERS LAST YEAR, BUT INFLATION HAS EASED AND WE ARESEEING THAT IN OUR NUMBERS, AND WE SEE THAT CONSUMERS HEADINGINTO THIS YEAR AND FOR THE FIRST READING OF THIS YEAR, WEHAVE — DOING A LITTLE BIT BETTER. LISA: IT IS HARD TO TALK ABOUT THISAS A MONOLITH. YOU CAN SEE A CLEAR VOCATIONAND THOSE WHO HAVE LOWER INCOMES. HOW MUCH ARE THERE DIFFERENTAUDIENCES THAT ARE REFLECTED IN.

THESE NUMBERS? >> WE DO ASK CONSUMERS WHEN ITCOMES TO INCOME AND AGE, BUT THERE IS THIS OVERALL SENTIMENTTHAT WE GATHER, AND WHEN WE LOOK AT THE DATA, WE ARE VERYMUCH LOOKING FORWARD TO THE REPORT THIS WEEK. CONSUMERS, ARE THEY SPENDINGMORE? WE SAW THAT IN THE SECOND HALFOF LAST YEAR AND WE SAW A CREDIT CARD USE RISE.THEY ARE BUILDING UP A LOT OF DEBT AND THE COST OF CARRYINGTHAT DEBT IS A LOT HIGHER,.

GIVEN THAT THE FED HAS RAISEDINTEREST RATES AND THEY ARE PROBABLY NOT LOOKING TO CUTRATES UNTIL ABOUT JUNE OF THIS YEAR. JONATHAN:WHAT DOES THAT LOOK LIKE RELATIVE TO INCOME? >> IT IS GOOD TO LOOK AT THEAMOUNT OF INTEREST. THAT HAS SKYROCKETED. THAT IS A PROBLEM. WE SEE THIS AS BEINGUNSUSTAINABLE, ESPECIALLY IF WE CAN SET — IF WE SEE IT IN THELABOR MARKET.

I THINK THAT PUTTING ALL THISTOGETHER, WE WILL SEE SLOWER GROWTH.WE DO HAVE GROWTH HOVERING AROUND ZERO BUT THEN PICKING UPAS INTEREST RATES GO DOWN. JONATHAN:ONE OF THE QUOTES FROM IT, WE KNOW THE LIKELIHOOD HASINCREASED. THEY BELIEVE THE LIKELIHOOD HASINCREASED. HOW MUCH IS DOWN TO THE GROWTHNUMBERS OVER THE LAST SIX WEEKS OR SO? >> IT DEPENDS ON HOW YOU DEFINESOFT LANDING.

I LOOK AT IT AS NOT GOING INTOA RECESSION. WHATEVER THE THRESHOLD OR THERANGE IS FOR EACH ECONOMY. BUT WE NEVER CALLED FOR ARECESSION. WE HAVE SEEN THAT THROUGHOUT.JAPAN DIPPED INTO A RECESSION. LEE COULD CONTINUE TO SEE THAT,BUT IN TERMS OF GLOBAL RECESSION? NO.WE ARE CONFIDENT THAT IT WILL CONTINUE TO ACCELERATE. WE THINK THAT THE MAJORS WILLSTART CUTTING INTEREST RATES AROUND SPRINGTIME. LISA:.

I'M TRYING TO UNDERSTAND THEBLURRY LINE VERSUS MORE PROTRACTED WEAKNESS. THE DELINQUENCY MODEL ISSHOWING AN INCREASE IN QUARTER OF ORDER DELINQUENCIES.IT WOULD BRING US TO NINE CONSECUTIVE INCREASES.DANA, UNDERSTANDING THAT THIS IS UP HERE LOWS, WHEN DOES THISCREATE A REAL PROBLEM THIS IDEA THAT THE WEST REMAINS THEBASTION OF GROWTH THAT JONATHAN WAS JUST REFERRING TO? >> WE DO NOT THINK THE U.S.WILL REMAIN THIS BASTION OF.

GROWTH. WE STILL HAD THE REMNANTS OFFISCAL STIMULUS FROM CHECKS AND SAVINGS BEING SPENT DOWN. MANY COMPANIES DID NOT LETPEOPLE GO, SO PEOPLE CONTINUE TO WORK, EVEN THOUGH COMPANIESFELT LIKE THERE WAS SOMETHING BAD COMING DOWN THE LINE. AND AGAIN, YOU SAW PEOPLE USINGCREDIT CARDS TO SUPPLEMENT THEIR SPENDING. IT IS BACKING UP INTO THE BANKSTHAT ARE ISSUING THESE CREDIT.

CARDS.THE FED DID RAISE INTEREST RATES AGGRESSIVELY, HIGHER THANWHAT WE HAVE SEEN DECADES, AND THAT WILL COME HOME TO ROOST. IDO NOT THINK THAT THE U.S. WILL NEED THE ECONOMY GROWTHTHIS YEAR. CHINA WILL PROBABLY RATCHETDOWN. IT ALL SUGGESTS SLOWING GLOBALGROWTH THIS YEAR. WE EXPECT THAT THERE WILL BE ALITTLE BIT OF PICKUP AS MANY CENTRAL BANKS WILL BE CUTTINGINTEREST RATE AND IT WILL HELP TO BOLSTER ECONOMIES.

LISA:YOU THINK IS THE BIGGER RISK? >> I THINK THE RISKS AREROUGHLY BALANCED. YOU COULD CONTINUE TO SEE THEMWORKING THE HOUSING MARKET IS GETTING UP STRENGTH.WHEN THE FED ACTUALLY CUTS, THERE ARE TREMENDOUS DOWNSIDES.WE COULD HAVE FURTHER DISRUPTIONS AND SUPPLY CHAINS. NOT SO MUCH AFFECTING THE U.S.,BUT IF WE DO HAVE ANY DISRUPTION IN ASIA, THAT WILLAFFECT CHIPS. IT MAY SHAKE UP POLICIES AROUNDTRADE AND TAXES.

THERE ARE A LOT OFUNCERTAINTIES OUT THERE. IT IS ROUGHLY BALANCED.JONATHAN: THANK YOU. GREAT TO CATCH UP WITH YOU ATTHE CONFERENCE BOARD. HOW DEPENDENT THEY ARE ON ONECOMPANY AND WHAT IS HAPPENING WITH TELLING. LISA QUAN AT SOME POINT THEYARE GOING TO HAVE TO START SELLING PLANES AGAIN.YOU DO NOT WANT TO THINK ABOUT QUALITY CONTROL. JONATHAN:YOU DO NOT WANT TO THINK ABOUT THAT AT ALL.

I THINK BROOKE SUTHERLAND WASON TOP OF IT FIRST. I WANT TO BE POLITE BECAUSE THIS IS NOTEVERYONE COVERS THAT STOP CERTAIN INDIVIDUALS TO DO COVERTHAT TALK ARE RELUCTANT TO TALK ABOUT THE CULTURAL ISSUES INTHAT FIRM BECAUSE OF THE TRADITIONAL OLD AGE ISSUE. LISA:IT IS ALSO HARD TO QUANTIFY QUALITATIVE CHANGES THAT SHIFTA COMPANY IN A DRAMATIC WAY, BUT IF YOU DO NOT, YOU'RE NOTABLE TO ADDRESS REAL PROBLEMS. YOU NEED TO QUANTIFY HOWSTRAIGHT YOU HAVE GONE. JONATHAN:IT WILL BE MIKE MCKEE'S JOB.

MIKE CAN BREAK THAT DOWN FORYOU ANOTHER TIME. JUST ABOUT UNCHANGED ON THE S&P.HERE IS YOUR BLOOMBERG BRIEF. QUEST A GROWING CHANCE OFPULLING OFF A SOFT LANDING ACCORDING TO A DRAFT AT THISWEEK'S MEETING IN BRAZIL. RISK TO THE GLOBAL ECONOMYOUTLOOK ARE MORE BALANCED AND UPSIDE RISKS INCLUDE FASTERTHAN EXPECTED DISINFLATION. SHARES AS MUCH AS 60% AFTERBLOOMBERG REPORTED THEY WERE IN A TAKEOVER. CHARTER IS WORKING WITHFINANCIAL ADVISORS BUT COULD.

STILL DECIDE NOT TO PURSUE THETRANSACTION. FIRMS ARE SUFFERING WITH ASURGE IN WIRELESS A PETITION WITH CUSTOMERS FLEEINGTRADITIONAL TV IN FAVOR OF STREAMING.CHOCOLATE LOVERS COULD BE A FOR A PRICE SHOCK WITH THE COST OFCOCOA AT AN ALL-TIME HIGH. A PRICE JUMP OF MORE THAN 50%THIS YEAR. THE NEW REGULATION REQUIRESTHAT CHOCOLATE MAKER'S PROOF THAT THEY DID NOT CONTRIBUTE TODEFORESTATION. IT THREATENS TO DRIVE PRICESEVEN HIGHER. JONATHAN:.

UP NEXT, THE STATE OF THEAMERICAN CONSUMER. >> THE FED RAISES RATES INORDER TO SLOW THE ECONOMY AND TO BREAK THE CONSUMER. JONATHAN:DO YOU WANT TO SAY SOMETHING ABOUT THAT CHOCOLATE STORY?LISA: I'M WAITING FOR YOU TO SAY SOMETHING. JONATHAN:I WILL TELL YOU DURING THE BREAK. THIS IS BLOOMBERG. ♪ JONATHAN:OPENING UP IN ABOUT 40 MINUTES TIME. POSITIVE BY 1%.YIELDS UP A SINGLE BASIS POINT.

ON THE 10 YEAR.UNDER SURVEILLANCE THIS MORNING, THE STATE OF THEAMERICAN CONSUMER. >> THE FED RAISES RATES TO SLOWTHE ECONOMY AND ARGUABLY TO BREAK THE CONSUMER.BUT WITH THE ECONOMY ACCELERATING INTO THE YEAR-ENDAND THE CONSUMER STILL VERY RESILIENT, IT IS NOT YET CLEARTHAT THE FED HAS DONE ENOUGH TO ENSURE THAT THE U.S.ECONOMY GETS BACK TO A PLACE OF PRICE STABILITY. JONATHAN: MACY'S ISSUING DISAPPOINTINGGUIDANCE. STOCK IS DOWN 1.7%.

CALLING 2024 A YEAR OFTRANSITION AND INVESTMENT AS THE DEPARTMENT STORE CHAINLOOKS TO CLOSE UNDERPERFORMING LOCATIONS.LOWS DEVELOP — EVEN AS IT SEES A CONTINUED PULLBACK.THAT STOCK LITTLE BIT SOFTER. JOINING US IS JOE.HOW STRONG ARE THE HEADWINDS FOR THE LIKES OF HOME DEPOT ANDLOWE'S? >> YOU'RE STILL SEEING SOMEPRETTY STRONG HEADWINDS WHERE CONSUMERS SPEND A LOT DURINGTHE PANDEMIC, WE ARE NOW COMING OFF OF THAT AND PEOPLE AREDEFINITELY MODERATING THEIR.

SPENDING.THEY ARE SHIFTING TO OTHER AREAS , WHICH IS A GOOD THINGAND SHOWS THE HEALTH OF THE CONSUMER ABLE TO SPEND INDIFFERENT POCKETS, BUT FOR THE NEAR TERM THEY WILL REMAINCHALLENGED. JONATHAN: ARE WE STILL TALKING ABOUTUNDERLYING TRENDS AND SERVICES? >> I THINK YOU ARE STILL SEEINGTHAT SHIFT TOWARD SERVICE IS HAPPENING.DINING, TRAVEL AND CONCERT GOING, THINGS LIKE THAT AREGROWING AT A FASTER CLIP. YOU'RE NOT QUITE BACK TO THATPRE-PANDEMIC LEVEL, WHEN YOU.

LOOK AT THE MIX OF GOODS ANDSERVICES. THEY STILL HAVE ROOM TO GO INTERMS OF GROWTH. WE HOSTED A CALL WITH THE CEOOF DELTA AIRLINES AND HE TALKED A LOT ABOUT THE RECOVERYCONTINUING TO HAPPEN. HOME DEPOT HAS TALKED ABOUT ITAND WE WILL PROBABLY HEAR IT FROM LOWE'S AS WELL.LISA QUAN I HAVE GONE TO SEPHORA AND I HAVE SEEN ALL THE10-YEAR-OLDS BUYING BILLY EXPENSIVE STUFF.I WAS STRUCK BY THE IDEA THAT MACY'S X — IS SPENDING MORE ONSKINCARE.

IS THIS LASTING OR A MOMENTARYKIND OF LIFT AT ALL THESE COMPANIES ARE TRYING TOCAPITALIZE ON? >> THAT WHOLE BUSINESS HAS BEENSTRONG AND IS EXPECTED TO REMAIN GROWING AT A HEALTHYCLIP FOR THE NEXT SEVERAL YEARS, GOING FORWARD.I THINK IT MAKES SENSE FOR COMPANIES TO GO AFTER THAT. YOU HAVE WALMART, TARGET ANDEVERYONE ELSE IN BETWEEN TRYING TO GO AFTER THAT MARKET MOREAGGRESSIVELY, AND THEY ARE SEEING GOOD GROWTH IN THOSECATEGORIES.

I UNDERSTAND WHY THEY WOULD GOAFTER IT. BUT AS YOU JUST MENTIONED, WE ARE HEARING MORE ABOUT YOUNGGIRLS WITH 10 STEP FACIAL REGIMENS EVERY NIGHT.IT IS KIND OF CRAZY BUT THAT IS KIND OF WHAT SOCIAL MEDIA HASDONE TO KIDS THESE DAYS. THAT MEANS MORE SPENDING ONHEALTH AND BEAUTY PRODUCTS. LISA:I JUST WONDER WHERE THEY ARE GETTING THE MONEY.MORE POWER TO THEIR 10 STEP ROUTINES, BUT I AM CURIOUS.WHERE IS THE DISCRETIONARY.

SPENDING GOING?IS IT BECAUSE OF STRENGTHEN THE CONSUMER OR IS IT BECAUSE YOUHAVE HIGHER INCOME FAMILIES THAT ARE ABLE TO GO OUT ANDHAVE THIS AS AN EXPERIENCE VERSUS THE PEOPLE RUNNING OUTOF DISCRETIONARY SPENDING ON THE LOWER AND NOT BUYING GOODSAS MUCH. QUEST MORE AFFLUENT CONSUMERSARE THE ONES THAT ARE TRAVELING AND DINING OUT. AT THE LOWER END, YOU AREDEFINITELY SEEING CASH-STRAPPED CONSUMERS MAKING THE SITE –DECISIONS ON WHAT TO SPEND ON.

EVERYONE IS TALKING ABOUT THEFACT THAT PEOPLE ARE STRETCHING DOLLARS FURTHER. THEY ARE OPTING FOR A PRIVATELABEL BRANDS. THIS IS NOT TO SAY THATEVERYBODY IS DOING BETTER, BUT EVEN THE LOW-END CONSUMER HASSEEN SOME WAGE GROWTH. THAT'S WHY I THINK THERE ISGROWTH. ANNE-MARIE:CUTTING BACK ON SOME MACY'S STORES.COULD WE SEE THE FACT THAT SOME OF THESE ORGANIZATIONS GO INTOTHOSE AND WE WILL SEE A.

HALLOWEEN OUT OFMIDDLE-OF-THE-ROAD RETAILERS? >> THAT IS A BIG CONCERN THATWE HAVE. DEPARTMENT STORES — THEWINNERS HAVE BEEN AT THE TWO EXTREMES. AND THE OFF-PRICE IS TJX. THEY HAVE BEEN PICKING UP THATPORTION OF THE CONSUMER BASE. BUT THEY ARE UNDER A LOT OFPRESSURE. I THINK WE HAVE SEEN SOME OFTHE PRESSURE AT KOHL'S AND OTHER DEPARTMENT STORES HASBEEN WEAKENING.

THAT HALLOWEEN OUT IN THEMIDDLE HAS BEEN A PROBLEM. TO GO FORWARD, YOU STILL THENEED THAT OFFERING FROM THE CONSUMER AND I THINK THEY ARESTARTING TO FIND IT. JONATHAN: TOP PICK.IS THAT WHERE YOU FIND IT? >> I STILL REALLY LIKE WALMART.EXECUTION HAS BEEN GOOD. JONATHAN:IS THE REGULATOR DOING THEM A FAVOR BY BLOCKING THIS DEAL? >> IT WILL BE INTERESTING TOSEE WHAT HAPPENS BECAUSE THE REGULATORS HAVE NOT BEEN VERYSUCCESSFUL THE LAST FEW YEARS.

IT HAS NOT WORKED.EVERY DEAL IS DIFFERENT. AFTER THE COMBINATION, WALMART IS STILL GOING TO BE A GOOD BITLARGER, ALMOST 10 POINTS LARGER DEPENDING ON WHAT ESTIMATE YOULOOK AT. JONATHAN: WE WILL HAVE TO TALK ABOUT THATAT ANOTHER TIME. INFLUENCERS, DREADFUL PEOPLE,GETTING PEOPLE TO SPEND MORE MONEY ON MAKEUP AND SKIN CAREREGIMES. WE SHOULD DO THAT STORY.WHAT ELSE WOULD YOU LIKE TO DO? LISA:WE HAVE THIS NARRATIVE THAT.

MIGHT BE FALSE ABOUT THECONSUMER. WE HEARD FROM DIETER PETERS –DANA PETER IS. IT IS NOT CLEAR, AND THEY ARENOT FINDING THOSE TRENDS, AND I FIND THAT REALLY FASCINATING.ANNE-MARIE: I THINK JOE MADE A GOOD POINT.HE LIKES WALMART AND KROGER CANNOT COMPETE. THESE ARE THE COMPANIES THATFTC SHOULD BE WRITING BACK, AND WE ARE TRYING TO COMPETE WITHTHEM, AND WE CANNOT. WOULD IT CHANGE IF TRUMP CAMEINTO POWER?.

THERE IS ONE UNION AGAINST THISDEAL, TEAMSTERS. $45,000 TO THE RNC. LISA: WHERE DO 10-YEAR-OLDS GET $182TO BUY EMPTY — ANTIOXIDANT TREATMENT?FOR ONE FLUID OUNCE OF BLUE MERCURY. ANNE-MARIE:INSTEAD OF GETTING ICE CREAM, IT'S, LET'S GO TO SEPHORA.JONATHAN: YOU THOUGHT GEN Z WAS BAD.WAIT 20 YEARS. TOMORROW WITH QUALCOMM CEO.

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