SEC Hacked | Bloomberg Surveillance 01/10/2024

>> I AM STILL VERY BULLISH FOR2024 WHAT I THINK IT WILL BE DIFFERENT FROM THE RALLY WE SAWLAST YEAR. >> THERE ARE SOME STRUCTURALCHANGES IN THE MARKET. >> I THINK IT IS THE ECONOMICDOWNTURN THAT'S NOT PRICED IN THE MARKET. >> THE MARKETS ARE ON THE GOODNEWS OF THE ECONOMIC FRONT WHICH IS CAUSING YIELDS TO BACKUP BEING BAD NEWS ON THE EQUITY FRONT. >> RIGHT NOW IT'S NOT ONE OFTHOSE TIMES.

>> THIS IS BLOOMBERGSURVEILLANCE WITH TOM KEENE, JONATHAN FERRO AND LISAABRAMOWICZ. JONATHAN: GOOD MORNING, GOOD MORNING FOROUR AUDIENCE WORLDWIDE. THIS IS BLOOMBERG SURVEILLANCEON TV AND RADIO. YOUR EQUITY MARK ON THE S&P500'S POSITIVE. LET'S BRING UP BITCOIN. IT'S HAPPENED, THE SEC SAYS THESPOT ETF HAS BEEN APPROVED. TOM: KATIE WAS A ST. YESTERDAY. IREAMED HER ABOUT GARY GENSLER AND HOW UPSET THE CHAIRMAN ISOVER THIS ENTIRE BITCOIN FOLLY.

AND THREE HOURS LATER ALL HELLBREAKS LOOSE AT THE SEC. JONATHAN:THE BREACH WAS NOT DUE TO ANY ISSUES WITH THAT SYSTEM ADDINGTHE ACCOUNT DID NOT HAVE TWO FACTOR AUTHENTICATION ENABLEDAT THE TIME OF THE INCIDENT. PRETTY EMBARRASSING STUFF FORTHE SEC. A LOT OF PEOPLE HAVE BEEN WAITING TO SEE THE RESULTOF. TOM: YOU SEE THIS WITH THE NUMBER OFPEOPLE. AND ALSO THE DESPERATION TO GETOUT FRONT ON THIS. AGES AGO WE HAD GAS WARS WHEREIT WOULD BE $.29 A GALLON AND.

THERE WOULD BE A GAS WAR.THAT'S WHERE BITCOIN IS. >> IN AND AROUND 46 K.WE NEED TO TALK ABOUT A BETTER MOOD. ON THIS PROGRAM YESTERDAY PUBLISHING SHORTLY THEREAFTER REST IN PEACE, CONSUMEREXPECTATIONS ARE CLIMBING AS INFLATION IS CALLING.SMALL BUSINESS SENTIMENT HITTING A FIVE MONTHS HIGH. TOM:IT IS THERE AND YOU CAN SEE IT IN THE DATA.12.83 ON THE VIX IS ALL YOU HAVE TO KNOW ABOUT IN THEMARKET.

WE SEE TODAY WITH THE NASDAQ.THE DRAWDOWN ON THIS CRUSHING DIFFICULT JANUARY AND THE DOWJONES INDUSTRIAL AVERAGE IS. >> NO DRAMA.LET'S GET TO THE SCORES ON THE S&P 500 JUST ABOUT POSITIVE.YIELDS ARE COMING IN A COUPLE OF BASIS POINTS THREE AND 98 86ON THE U.S. 10 YEAR. THAT CURRENCY POSITIVE BY 0.16%.TONS TO LOOK OUT FOR THROUGH THE DAY. THE FED SPEAK 315 EASTERN TIMEWE HAVE METZGER, MCKEE SITTING DOWN, A KASHKARI COMING UPLATER IN THE WEEK.

IN THE LAST 24 HOURS HOWARDMARKS ANNUAL LETTER AND KENNETH BROKE OFF WITH THE BLISTERINGPROJECT SYNDICATE ESSAY THAT RATES WILL STAY HIGHER. JOHN WILLIAMS DISCUSSED THATSAYING RATES WILL COME BACK DOWN TO SOME FORM OF WHERE WEWERE BEFORE COVID. PEOPLE LIKE THE INVESTORPOWERED MARKS SAY YOU ARE WRONG. JONATHAN:THE WEEK BEGINS THIS AFTERNOON WITH THAT SPEECH FOR THE NEWYORK FED PRESIDENT JOHN WILLIAMS. CPI ONTO PPI ONFRIDAY.

I KNOW YOU'VE HAD THE CIRCLEDON THE CALENDAR FOR THE LAST MONTH. TOM:I WANT TO GO TO ROSENBERG. I GUESS YOU HAVE TO GO BACK TOTHE TRIED-AND-TRUE WHICH IS THE VECTOR ON SERVICE SECTORDISINFLATION. THERE'S BEEN SOME GOOD NEWSTHERE. WILL WE CONTINUE TO SEE THAT.IS IT ALL ABOUT GOODS INFLATION. JONATHAN:WE WILL BE TALKING ABOUT THE EARNINGS.THIS FRIDAY YOU WILL HEAR FROM J.P.MORGAN FROM CITIGROUP AND BANK.

OF AMERICA AND WELLS FARGO ALLREPORTING CONTINUING INTO THE WEEKEND. >> IN ONE YEAR YOU SEE J.P.MORGAN UP 23%. IT'S REAL SIMPLE HERE. THE ZEITGEIST. GINA MARTINADAMS AMONG THOSE LEADING ON THIS.IT IS A PRETTY GRIM VIEW OUT THERE.I THOUGHT YESTERDAY WAS GREAT ON THIS ONE.THE BOTTOM LINE IS THERE SOME WORTHY PEOPLE SAYING THIS COULDBE BETTER THAN GOOD. JONATHAN:.

GOOD MORNING TO YOU ALL.GLOBAL ALLOCATION FUND PORTFOLIO MANAGER AT BLACKROCK.GREAT TO CATCH UP. I KNOW YOU ARE OVERWEIGHTSTOCKS LAST YEAR LET'S TALK ABOUT WHAT YOU'RE DOING JUSTAROUND SECTORS CARRYING BACK EXPOSURE. WHY IS THAT? >> WE STILL THINK IN 2024 WE DOTHINK IT WILL BE A BIT OF DIFFERENT YEAR FROM LAST YEARWHICH WAS BROUGHT BY AN ENORMOUS GAIN IN THE MARKET.PROBABLY MORE MUTED GAINS BUT A BROADER RALLY.THINKING ABOUT WHAT ARE THE.

PARTS OF THE MARKET WHICH WERELEFT BEHIND IN 2023. SOME OF THE INDUSTRIALS.HEALTH CARE. IT'S NOT AS IF THE LONG-TERMTHEMES AROUND BIG TECH GONE AWAY. BUT MAYBE USE SOME OF THE OVERWEIGHT YOU HAD LAST YEAR TOFUND OPPORTUNITIES AND SOME OF THESE VALUE AREAS THAT AREREALLY CHEAP IN A MARKET THAT IN MOST PEOPLE'S VIEW IS RATHEREXPENSIVE. >> WHAT'S THE UNDERLYINGNOMINAL GDP THAT WILL DRIVE THIS ECONOMY FORWARD? RUSS:I THINK IT'S ABOUT 4%, 4.5%.

ONE OF THE THINGS THAT HAPPENEDWAS THE EARNINGS HELD UP. THEY HELD UP BECAUSE NOMINALGDP HELD UP. 2% GROWTH INFLATION NORMALIZESBACK TO 2.5%. THAT'S A YEAR WHERE YOUPROBABLY CAN FIT OR EXCEED THE 10% OR 11% EARNINGS GROWTHBAKED INTO THE MARKET. WHEN YOU ASK WHY IS THE MARKETGOING HIGHER I THINK THAT'S THE MAIN REASON. >> WHAT ARE YOU SEEING WITHCASH RIGHT NOW. DO WE WAIT TO SEE THE MARKETMONEY FUND MOVE OR IS IT.

HAPPENING RIGHT NOW. >> I THINK IT'S STARTING TOHAPPEN. IT IS SUCH A TRICKLE IN SOMETHING WHAT THAT WILL TAKETIME. FOR THE FIRST TIME IN 15 YEARSWE WILL SEE THAT IN CASH GET A DECENT RETURN.NOT ONLY IS IT A DECENT NOMINAL RETURN IT'S A DECENT REALRETURN. WE SPEAK TO ADVISORS AND CLIENTS THAT MONEY IS COMINGOUT SLOWLY BUT AS WE GET IN TO THE MIDDLE OF THE YEAR ANDSTART TO SEE THE FED BEGIN TO LOWER RATES I THINK WE WILL SEEMORE FLOWS INTO SPREADS AND.

EQUITIES INTO ASSETS THAT WILLMAINTAIN AN ENVIRONMENT WHERE RATES ARE GOING TO START TOCOME DOWN. >> I DID NOT HEAR GO INTO BONDS.WHY IS THAT? >> IT REALLY DEPENDS ON WHEREWE ARE TALKING ABOUT. WE ARE A LITTLE BIT UNDERWEIGHTDURATION FOR A BENCHMARK. MOST OF THAT IS ON THE LONG ENDVIEW AND HAS MORE TO DO WITH THE SUPPLY OF TREASURIES WHENWE'VE GOT STRUCTURAL 7% DEFICITS VERSUS GDP, 2.5TRILLION DOLLARS THAT NEEDS TO BE FUNDED EVERY YEAR.WHAT IS THE RIGHT TERM PREMIUM.

THAT YOU GET FOR THE ADD ON.HOWEVER IF YOU LOOK AT OTHER PARTS OF THE BOND MARKETINVESTMENT GRADE, HIGH YIELD, SECURITIZED, EM, WE SEE THENOMINAL YIELDS YOU GET IS PRETTY ATTRACTIVE SO WE LOOK ATTHOSE PARTS OF THE BOND MARKET WERE ACTUALLY OVERWEIGHTRELATIVE TO THE BENCHMARK. JONATHAN:ARE YOU SAYING THE DEBATE TAKING PLACE IN WASHINGTON DC,THE SPENDING DEADLINES ARE ALREADY SHAPING YOUR APPROACHTO THE TREASURY MARKET? >> 80'S LASTS ABOUT THEINTEGRAL QUESTION OF WHETHER OR.

NOT YOU CAN GET A RESOLUTION ONTHE FUND IT'S MORE ABOUT THOSE LONGER-TERM ISSUES.THINK ABOUT WHAT HAPPENED AT THE END OF LAST YEAR.WE WERE FOCUSED ON THINGS LIKE THE TREASURY FUNDINGANNOUNCEMENT. THE MARKET WAS MOVING ONWHETHER OR NOT AN AUCTION WENT WELL.IT HAD BEEN A LONG TIME SINCE WE SAW THOSE EVENTS REALLYDRAMATICALLY MOVE THE BOND MARKET.FOR THE FIRST TIME IN A LONG TIME PARTICULARLY BACK INAUGUST, SEPTEMBER AND OCTOBER.

THERE WAS A BIG DEBATE ABOUTWHAT IS THE RIGHT PREMIUM YOU NEED TO OWN LONG-TERMTREASURIES IN AN ENVIRONMENT WHERE SUPPLIES ARE STRUCTURALLYHIGH. >> WHAT'S THE REAL YIELD GOINGTO DO? THE MOST SHOCKING THING I'VEHEARD IN THE NEW YEAR. WE ARE DEEP INTO 2024.OVER A J.P. MORGAN MODELING OUT THECOLLAPSE OF THE 10 YEAR REAL YIELD.A LOT OF PEOPLE ARE PUSHING AGAINST IT. SHE'S DOWN TO 1.0%.

WHAT HAPPENS TO THE WORLD IF ITDELIVERED A 1.1% 10 YEAR INFLATION-ADJUSTED YIELD. >> IF YOU GOT DOWN TO THATLEVEL AND CLEARLY WE ARE NOT THERE YET AND YOU WE WERE ALONG WAYS AWAY FROM IT. YOU WOULD WANT TO BE MORECONSTRUCTIVE ON BONDS. MY QUESTION IS WE TALK ABOUTTHAT REAL YIELD WHAT PART OF THE CURVE ARE WE TALKING ABOUT.THE SHORT END, THE BELLY OR THE LONG END.IN OUR DISCUSSIONS A LOT OF THAT DEBATE IS AROUND THE LONGEND AND THAT INTERACTION.

BETWEEN WHAT IS THE RIGHT TERMPREMIUM YOU WILL NEED IN AN ENVIRONMENT CHARACTERIZED BYTHE SUPPLY WE KNOW WE WILL GET IN THE COMING YEARS. >> THE BOND, WHAT BONDS ARESAYING ABOUT INFLATION, THE NOMINAL GDP CALL.IT JUST SIMPLY IMPLIES A CONTINUED DISINFLATION.SO THEN CIRCLE BACK TO THE 10 YEAR YIELD AND FRAME IT AROUND4%. WHAT WILL THAT DYNAMIC LOOK LIKE OVER THE YEAR. RUSS:I THINK THAT IS PROBABLY ABOUT RIGHT.IF YOU THINK ABOUT WHERE THE 10.

IS GOING TO TRADE. I DON'T THINK IT'S CRAZY IN2024 IN THAT ZIP CODE. THAT'S NOT A BAD ENVIRONMENT.IT DOESN'T NECESSARILY MEAN YOU WANT TO BACK UP THE TRUCK ONTHE LONG END OF THE CURVE BUT IF YOU BROADEN THAT OUT ANDTHINK ABOUT RISKY ASSETS WE HAVE AN ENVIRONMENT WHERE WESTICK THE SOFT LANDING AND YOU GET THAT FOR PERCENT GDP, AVOLATILITY IS COMING DOWN. THE FED IS LOWERING RATES ONTHE FRONT END OF THE CURVE, IT IS NOT A BAD ENVIRONMENT TO OWNRISK. JONATHAN:.

GREAT TO HEAR FROM YOU.APPRECIATE IT. IF YOU'VE MADE THIS KIND OFCALL IN THE MIDDLE OF OCTOBER WITH 10 YEAR YIELDS THROUGH 5%IN THE TWO YEAR AT 5.25″ I'M NOT SURE HOW MANY PEOPLEWOULD HAVE BELIEVED IT. JONATHAN: THE EMOTIONS HERE.TANGIBLE FROM BOTH THE BULLS AND THE BEARS AS WELL.I WOULD — MY ANSWER IS TO EXTEND THE TIMELINE.LET'S GO THROUGH THE EXERCISE. WHERE ARE WE MARCH 31 WE HAVETHE OUTLOOK FOR 2024. WHERE ARE WE ON THE FOURTH OFJULY WE CELEBRATE THE COLONY'S.

VICTORY OVER THE MOTHER COUNTRY.THE ANSWER IS WE DO NOT HAVE A CLUE. WE HAVE NO CLUE. >> LET'S TALK ABOUT WHAT'SPRICED. THE DREAM OF A SOFT LANDING ANDTHE POTENTIAL FOR A LOSE LOSE SITUATION. POSING THIS QUESTION.WITH MARKETS NOW PRICING IN A RAPID PACE OF CUTS, READING ALOSE LOSE SITUATION BASED ON HISTORICAL PRECEDENT ITPROBABLY REQUIRES A RECESSION TO GET THESE RATE CUTS. IF THE ECONOMY OUTPERFORMS THEMARKETS DISAPPOINTED BY A MORE.

HAWKISH OUTCOME.ARE WE IN A LOSE LOSE SITUATION AFTER WHAT WE'VE PRICED.JONATHAN: SHE IS OFF CURATING THE SKISLOPE NOW. THE ANSWER IS I'M NOT GOING TODO LOSE-LOSE, A WIN-WIN. WHAT I SUGGEST IS THERE IS AHUGE AMOUNT OF MYSTERY AND MY COMFORT WHETHER I'M RIGHT ORWRONG IS TO SAY I AM BACK, WHAT'S NOMINAL GDP TO UNDERPINREVENUE GROWTH. AND AS RUSS SAID, FOUR TO 4.5%IS NOT BLOOM OR COVID BUT THAT'S A PRETTY GOOD NUMBER.JONATHAN:.

THIS IS WHAT WAS SAID ON THISPROGRAM YESTERDAY. A REAL GDP THROUGH THE YEARAHEAD. DELIVERING SOME SURGICAL RATECUTS AND YOU CAN BE IN A DECENT POSITION.IT'S GREAT JUST AS A THOUGHT EXERCISE.HE JUST SEES A CONTINUATION OF THE TREND. THINGS WILL BE OK. >> THE BANKS ARE GOING TOUNDERPLAY THE PROFITABILITY ON FRIDAY.EVEN IF THERE IS SOME CHAT. SOME REAL CHALLENGES.JOHN AND LISA GETTING READY TO.

CURATE DAVOS. LISA TOLD ME THAT.>> LIKE A CURATOR THAT WORKS IN THE MUSEUM. >> I AM HOME.I THINK IT'S GOING TO BE INTERESTING TO SEE LARRY FINKIS SUCH A PRESENCE AT THE MEETINGS OF THE WORLD ECONOMICFORUM. IT WILL BE INTERESTING TO SEEHOW THEY HANDLE WHICH IS REALLY TAKEN TO HEART OVER THE LASTFEW YEARS. >> WE ARE GOING TO TOUCH ALITTLE BIT LATER THIS MORNING AND THE NEXT HOUR EASTERN TIME.FROM NEW YORK CITY, EQUITY.

FUTURES JUST ABOUT POSITIVE. >>HE WAS NOT INFORMED UNTIL LAST FRIDAY THAT SECRETARY AUSTENWAS IN THE HOSPITAL. NOT INFORMED UNTIL THIS MORNINGTHAT THE ROOT CAUSE OF THE HOSPITALIZATION WAS PROSTATECANCER. WE RECOGNIZE THIS DID NOTUNFOLD THE WAY IT SHOULD HAVE. ON SO MANY LEVELS.NOT JUST THE NOTIFICATION PROCESS BUT THE TRANSITION –WE ALL WANT TO MAKE SURE WE LEARN FROM THAT.

>> STUNNING THE LAST COUPLE OFDAYS IN WASHINGTON. JOHN KIRBY ADDRESSING DEFENSESECRETARY LLOYD AUSTEN'S DECISIONS AND HOSPITALIZATIONS.NOW LEARNING IT WAS DUE TO'S — COMPLICATIONS FROM PROSTATECANCER. >> SUDDENLY IT IS SERIOUS. THE BOTTOM-LINE IS NOW WE KNOWIT IS SERIOUS AND IS ALWAYS SERIOUS.I WOULD SUGGEST A TONE CHANGE. I THINK THERE WAS A MYSTERY OFWHAT'S THIS FOR. JOKES WERE MADE INCLUDING ME.NOW WE KNOW AND IT IS SERIOUS.

AND THEY WILL HAVE TO GO ONWHAT THEY DO. >> I'M NOT SURE HOW YOU DRESSANYTHING OF THIS UP. STILL PLENTY OF QUESTIONS AS TOHOW THIS HAPPENS. PLENTY OF QUESTIONS. >> IT'S THE OVERLAY WHICH YOUAND I HAVE PERSONALLY WITNESSED IN WASHINGTON OF THE BIDENADMINISTRATION WHETHER DEMOCRAT OR REPUBLICAN, INDEPENDENT. IS WHAT IS THE CHARACTERCOMMUNICATION WITHIN ANY ADMINISTRATION.SOME ADMINISTRATIONS THERE'S A.

CACOPHONY OF THE TRUMP PROCESS.THERE'S OTHERS WHERE IT'S ALL THIS MASSIVE DELEGATION.REAGAN WAS NOTORIOUS FOR DELEGATING. >> I GET THE FEELING THEAPPROACH APPEARS TO BE WE ARE NOT TO TALK TO YOU.JUST TRUST US. WE CAN TAKE CARE OF THIS.IT DID NOT FEEL VERY ADULT. >> THAT'S THE WAY IT IS. THE BOTTOM LINE IS THERE ISTHAT WHOLE TRUST ATTITUDE WHICH DRIVES PEOPLE NUTS OF ALLPOLITICAL PERSUASIONS.

WE WILL GET A BRIEF NOW ANDTHIS IS REALLY SPECIAL BECAUSE IN NASHUA NEW HAMPSHIRE THERE IS MORE — THERE'S A DR. NORMANCHRIS ELEMENTARY SCHOOL 50 ARLINGTON STREET.MATTHEW BARTLETT KNOWS EACH AND EVERY WARD. HE IS HARD-CORE NEW HAMPSHIREAND JOINS US THIS MORNING. DERBY FIELD ADVISOR.A REPUBLICAN STRATEGIST WITH SERVICE IN THE TRUMPADMINISTRATION UNTIL A CERTAIN JANUARY DAY EIGHT.JOINING SURVEILLANCE FOR THE.

FIRST TIME.WHAT WAS IT LIKE ON JANUARY 6 WHEN YOU SAID SEE YOU. >> IT WAS A VERY HARD DAY HEREIN THIS TOWN IN WASHINGTON AND I REMEMBER WALKING HOME.IT WAS DURING COVID AND CROSSING THE CAPITAL SEEING THEUTTER MAYHEM AND FEELING OF UTTER DISGUST ON WHAT WAS JUSTTHE EASIEST DECISION I'VE EVER MADE IN MY CAREER WHICH IS MR.SECRETARY I HEREBY RESIGN FROM THE STATE DEPARTMENT. TOM: DECISIONS WILL BE MADE IN NEWHAMPSHIRE, WHAT'S THE TONE YOU.

SEE AMONG REPUBLICANS? MATTHEW:EXACTLY. IT IS JANUARY AND THE COMMUNITYTHE COUNTRY IS LOOKING AT. A LOT OF THE SNOW COVERED ROADS.WE WERE LOOKING AT WHAT IS EITHER THE BEGINNING OR MAY THEEND. PRESIDENT TRUMP HAS A SIGNIFICANT LEAD.THERE ARE REALLY TWO BATTLEGROUNDS.IOWA HE MAY HAVE LOCKED UP. AND IT'S A QUESTION OFEXPECTATIONS AND THEN OVER IN NEW HAMPSHIRE WHERE NIKKI HALEYMAY BE PUTTING TOGETHER SOME PUZZLE PIECES WITH HER GRANITEHEELS ON CLIMBING THE MOUNTAIN.

AND MAY SHOCK THE TRUMPCAMPAIGN AND THE WORLD. IF SO THEN WE HAVE A RACE. IF PRESIDENT TRUMP REALLY BLOWSOUT IN ALL STATES I THINK THIS NOMINATION MIGHT BE WRAPPED UPPRETTY QUICKLY. >> YOU'VE BEEN ON THE GROUNDWITH EVERY CANDIDATE IN THE FIELD.DO YOU SEE ANYTHING ON THE GROUND AS DIFFICULT TORECONCILE WITH WHAT WE SEE IN THE POLLS. MATTHEW: SURE. RIGHT NOW, POLLS YOU WILL SEE ALOT OF NATIONAL POLLS.

THOSE ARE CERTAINLY LAGGINGINDICATORS. THE STATE POLLS OF THE LEADINGINDICATORS. THE NOMINATION PROCESS IN ANATIONAL ELECTION IT'S A STATE-BY-STATE EVENT AND RIGHTNOW IN IOWA AND NEW HAMPSHIRE THE RACE IS NOT NATIONALIZEDRATHER IT IS PERSONALIZED. PEOPLE GET TO GO AND MEET THECANDIDATES UP FRONT. HEAR FROM THEM DIRECTLYUNFILTERED FREE FROM MEDIA, FREE FROM ADS, GET TO ASKQUESTIONS AND GET TO WHERE PEOPLE CAN MAKE A MISTAKE AND ITHINK THAT'S WHERE WE — WHAT.

WE'VE SEEN NIKKI HALEY DUE TO AHIGH DEGREE. >> WHAT'S THE NUMBER ONE ISSUEATTRACTING VOTERS TO THE LIKES OF NIKKI HALEY. >> I THINK IT IS PROBABLY AMIXTURE OF POLICIES, MAY BE THE BIDEN ADMINISTRATION WHETHERIT'S FOREIGN POLICY, DOMESTIC SPENDING, INFLATION PUSHINGPEOPLE AWAY FROM THEIR VOTE IN MAYBE 2020 OR THE DEMOCRATICPARTY BUT MORE IMPORTANTLY LOOKING BACK TOWARDS WHATPEOPLE SEE AS A FIRM REPUBLICAN PARTY BUT MAYBE HE IS ABSENTSOME OF THE MAYHEM AND.

PERSONALITY DEFICITS BUT FORMERPRESIDENT TRUMP HAS DISPLAYED FOR THE BETTER PART OF A DECADE.TOM: VISITING OFTEN FROM PANGAEA.MAKING A COMMENT A NUMBER OF MONTHS AGO SAYING THERE'S ACOMPLETE MISJUDGMENT ABOUT THE NUMBER OF GOP WHO REALLY AREN'TIN LOVE WITH THE FORMER PRESIDENT.AND POLITICO JONATHAN MARTIN THE HEADLINE WHERE ARE ALL THEANTI-TRUMP REPUBLICANS, WHERE ARE THEY.ARE THERE ANY IN CONCORD, NEW HAMPSHIRE. MATTHEW: CERTAINLY.

IF YOU LOOK AT NEW HAMPSHIRE ITIS THE ONLY PURPLE STATE, THE ONLY SWING STATE IN ADDITION TOBE AN EARLY STATE. REPUBLICANS CAN ONLY VOTE INTHE REPUBLICAN PRIMARY. DEMOCRATS CAN ONLY VOTE IN THEDEMOCRATIC PRIMARY. INDEPENDENTS 10 VOTE IN EITHERONE. SO RIGHT NOW THE INDEPENDENTSOF NEW HAMPSHIRE, THOSE WHO DECIDE THE GENERAL ELECTIONWILL HAVE A SIGNIFICANT ROLE IN CHOOSING THE REPUBLICAN NOMINEEOR AT LEAST IMPACTING THAT. RIGHT NOW IT'S AS IF THEY AREGOING TO NIKKI HALEY.

THERE IS A TRUMP FATIGUE FACTOR.WHEN YOU GO TO HER TOWN HALLS ONE OF THE BIGGEST APPLAUSELINES YOU HEAR, SHE IS QUITE CANDID AND SAYS POLING SAYSDONALD TRUMP MIGHT BE UP ONE TO FOUR POINTS ON JOE BIDEN I AMUP 17 POINTS SO I THINK A LOT OF STRONG CONSERVATIVES LOOK ATTHAT AS A RESOUNDING RATIONALE FOR HER CANDIDACY AND A LOT OFINDEPENDENT VOTERS FIND HER TO BE THE GOLDILOCKS CANDIDATE. >> WHAT DOES PRESIDENT BIDENNEED TO DO TO GARNER THOSE DISAFFECTED VOTES.IT DOES HE NEED TO COMMUNICATE.

WITH THEM LIKE HE'SCOMMUNICATING WITH THE PENTAGON? MATTHEW:I THINK COMMUNICATION IS A GOOD START. PUTTING PRIORITY THAT YOULISTEN TO THOSE THAT IT IS A WARM PLACE.MAYBE SOME OF HIS POLICIES HAVE BEEN RATHER PROGRESSIVE.FOR THE PAST FOUR YEARS REALLY ATTUNED TO THE LEFT WING OF HISPARTY. AS WE TURN A CORNER INTO APOTENTIAL GENERAL ELECTION HE REALLY HAS TO MAKE SURE THATCOALITION HE BUILT STAYS WITH HIM.THAT THEY DO NOT FEEL DEFLATED.

AND THAT'S FROM THE LEFT ONCERTAIN ISSUES WHICH MAY BE MORE SENSITIVE.MAYBE IT'S FOREIGN POLICY ISSUES AS WE SEE IN MICHIGAN.THOSE DISAFFECTED VOTERS WHO MAY BE LIKED TRUMP'S POLICY BUTTHOUGHT HIS PERSONALITY WAS TOO MUCH, NOW IT'S GOING TO BE ACHOOSING TIME POTENTIALLY BETWEEN TRUMP AND BIDEN.AND WHO CAN SWING THOSE VOTERS WRITE BACK. >> JUST TO WRAP THINGS UP.YOU'VE GOT RON VERSUS NIKKI ON CNN AND IN THE FORMER PRESIDENTCOUNTER PROGRAMMING ON FOX NEWS.

WHAT'S THE APPROACH GOING TO BE.ARE THEY GOING AFTER EACH OTHER OR THE FORMER PRESIDENT. >> IT'S GOING TO BE BOTH.MORE THAN ANYTHING RIGHT NOW THE REPUBLICAN PARTY WANTSSOMEBODY WITH ATTITUDE AND SWAGGER AND THAT IS CERTAINLYWHY DONALD TRUMP HAS HAD A COMMAND OVER THE PARTY NOT JUSTOVER THE PAST FEW MONTHS BUT THE PAST FEW YEARS.IT IS A PERFORMANCE, IT'S HOW YOU TAKE A PUNCH, HOW YOU LANDA PUNCH. NIKKI HALEY HAS REALLY MADE HERBONES IN THIS RACE BY LINING UP.

AT DEBATES.VOTERS APPRECIATE THAT. >> LET'S CONTINUE THECONVERSATION THROUGH THIS MONTH. ON THE TV PROGRAM IN LATER THISEVENING. >> DESANTIS WILL BE FASCINATINGTHE NEXT TWO WEEKS. >> HOW THEY APPROACH EACH OTHERIN THE FORMER PRESIDENT. GOOD MORNING TO YOU ALL.EQUITY FUTURES JUST ABOUT UNCHANGED. JONATHAN:LIVE FROM NEW YORK CITY, GOOD MORNING.THE NASDAQ WE ARE TAKING YOU TO.

SMALL CAPS AS WELL ON THE S&PJUST ABOUT UNCHANGED. A MARGINAL MOVE LOWER.ON THE NASDAQ DOING OK. TECH WAS OK AS WELL. THE NASDAQ IS UP BY .2% ON THENASDAQ 100. >> ON THE DATA WE TALKED ABOUTAND IT'S OFF THE RADAR AND SHOULDN'T BE OFF THE RADAR.IT IS IDIOSYNCRATIC BUT NEVERTHELESS WE WILL HAVE AMILESTONE MEASURED PATH TO 30 TURKISH LIRA PER DOLLAR.WE ARE IN THE LAND OF THE GREAT STEVE HANKEY OF JOHNS HOPKINSUNIVERSITY.

THE ANSWER IS THE CONTINUEDDEPRECIATION, DEVALUATION. I WILL SAY IT'S ANIDIOSYNCRATIC STORY UNTIL IT IS NOT. BUT 29 POINT X X TURKISH LIRAIS SOMETHING TO WATCH INTO FRIDAY'S EARNINGS. >> I WILL GET YOU A ROUND UP AMOMENT. THE TWO-YEAR, 10 YEAR, 30 YEAR.REALLY SMALL MOVES IN EITHER DIRECTION OVER THE LAST THREEDAYS OR SO. DOWN TO 43413. WE TALKED ABOUT HOW THE WEEKBEGINS THIS AFTERNOON.

HEARING FROM THE NEW YORK FEDPRESIDENT. CPI DATA FRIDAY MORNING.ALL OF THAT STILL TO COME. THE 10 YEAR HAS BEEN IN ANDAROUND 4% FOR THE LAST FEW SESSIONS.WE ARE DOWN A COUPLE OF BASIS POINTS.IN FOREIGN EXCHANGE LET'S TALK ABOUT EURO-DOLLAR.REALLY QUITE STABLE. WHEN WAS THE LAST TIME WE MOVED– IT MOVED FOUR MONTHS AGO. JONATHAN:THINGS ARE SETTLING DOWN. WE ARE FROM THE ECB PRESIDENTNEXT WEEK IN SWITZERLAND.

LET'S GET TO THE TOP STORIES.BOEING CEO DAVE CALHOUN ADMITTING THE COMPANY'S MISTAKEAS IT DEALS WITH THE FALLOUT FROM THE FUSELAGE PANEL BLOWINGOUT DURING AN ALASKA AIRLINES FLIGHT. CALHOUN SPEAKING AT THEFACTORY. >> ALL I CAN THINK ABOUT, I DIDNOT KNOW WHAT HAPPENED OR WHOEVER WAS SUPPOSED TO — IHAVE KIDS, GRANDKIDS AND SO DO YOU. THIS STUFF MATTERS. >> THE FAA SAYING BOEING'SINSTRUCTIONS FOR CHECKING PLANES WERE INSUFFICIENT ANDTHE COMPANY WILL REVISE THEM.

EVERY TIME WE GO OVER THE STORYTHE MORE YOU GET FRESH DETAILS, NEW REPORTING EVERY SINGLE HOURAND DAY, THE NEAR MISS THE TOOK PLACE.IT IS ABSOLUTELY SHOCKING. TOM: IT HARKENS BACK I THINKAUSTRALIA HAS SOME EQUIVALENCIES.WHAT I'M GOING TO DO IS LISTEN TO ADULTS AND THE ADULT IN THEROOM FOR BLOOMBERG SURVEILLANCE IS BROOKE.SHE WAS LIGHTS OUT YESTERDAY ABOUT THE RESTRUCTURING THATNEEDS TO BE DONE IN THIS NATION INSTITUTIONALLY TO GET AIRLINEECONOMICS, AIRLINE SAFETY ON.

THE SAME PAGE. >> BROOKE MENTIONED THE CULTUREOF THIS COMPANY WITH SOMETHING ROTTEN AT THE HEART OF BOEING.THAT'S A QUESTION PEOPLE ARE ASKING.PERHAPS THAT WILL BE PART OF THE CONVERSATION GOING FORWARD.JUST WHAT IS GOING ON AT BOEING. TOM:MY BIAS IS THE DAY THEY MOVED OUT OF SEATTLE THE COMPANY WASCHANGED. JONATHAN: LET'S MOVE TO THIS STORY, THELATEST IN WASHINGTON DC, DOCTORS REVEALING SECRETARY OFDEFENSE LLOYD AUSTIN HAS BEEN.

HOSPITALIZED DUE TOCOMPLICATIONS FROM PROSTATE CANCER.THE WHITE HOUSE ADMITTED IT DID NOT FULLY KNOW ABOUT THEDIAGNOSIS UNTIL YESTERDAY. GIVEN WHAT IT IS NOW WE HOPE ASPEEDY RECOVERY. PERSONAL ISSUES ASIDE, CLEARLYTHERE WERE PROTOCOLS THAT WERE NOT FOLLOWED HERE IN THISADMINISTRATION. >> YOU'VE GOT A GUY ON THE WESTPOINT. MAKE SURE HE IS TOUGH AS NAILS.THIS GUY PLAYED RUGBY. SO THIS IS SOMEBODY RIGHT FROMTHE START AT WEST POINT WHO HAS.

BEEN TOUGH AS NAILS. BUT YOU'VE GOT TO JUST SAY TOYOURSELF WE HAVE TO GET THROUGH THIS GRACEFULLY. WHAT'S NEXT. MANY PEOPLE ARE SUGGESTING WITHHIS ILLNESS HE SHOULD FIND A CONSTRUCTIVE AND GRACEFUL WAYTO RESIGN. JONATHAN: THERE WAS NOTHING GRACEFUL WITHTHE SEC SAYING HIS ACCOUNT WAS COMPROMISED AFTER SHARINGAPPROACH — A POST. GARY GENSLER STEPPING IN MINUTESLATER ON THE SOCIAL MEDIA PLATFORMS WRITING THE SECACCOUNT WAS COMPROMISED, AND.

AUTHORITY — UNAUTHORIZED TWEETWAS POSTED. ADDING THE ACCOUNT DID NOT HAVETWO FACTOR AUTHENTICATION ENABLED AT THE TIME OF THEINCIDENT. THIS JUST EMBARRASSING ALLAROUND. THERE'S NOTHING GRACEFUL ABOUTANY OF THIS YESTERDAY AFTERNOON. >> IT'S BEEN REALLY DIFFICULTAND WHAT I FIND UNFORTUNATE. A COLLEGIAL DEBATE ABOUTBITCOINS SAY WITHIN A RETIREMENT PLAN AND ALL OF THAT.I WILL GO BACK TO JANUARY 8 FAR MORE IMPORTANT THAN A BUSTEDTWEET AT THE SEC, A THREAD.

WHERE THEY DO A SEQUENCE OFTWEETS. INVESTMENTS IN CRYPTO ASSETSALSO WOULD BE EXCEPTIONALLY RISKY AND ARE OFTEN VOLATILE.A NUMBER OF MAJOR PLATFORMS HAVE BECOME INSOLVENT.THAT'S FROM THE FINANCIAL ADVISORY. >> STILL WAITING FOR A DECISION.MAYBE IT COMES LATER ON TODAY. >> NEVER HAVE I SEEN A CHAIRMANSO SEEMINGLY AGAINST SPENDING LEGISLATION. NEVER HAVE SEEN IT.IMPORTANT CPI REPORT. ALL THESE OTHER STORIES HAVEBEEN A DISTRACTION. CHIEF U.S.

INFLATION ECONOMIST ANDHIGH-FREQUENCY ECONOMICS. THE COLLEAGUE IN CRIMEYESTERDAY WITH A BLISTERING NOTE ON EU INFLATION OF 1.9%. ARE WE HEADING FOR SUB 2%INFLATION IN THE U.S.? >> WE ARE LOOKING AT A PATTERNOF INFLATION, A DIRECTION THAT'S GOING TO SHOW PRETTYSUBSTANTIAL DURATION FROM THIS POINT ON. WE HAVE ALREADY SEEN ASUBSTANTIAL MOVE AND WE THINK THE DYNAMICS OF THE LABORMARKET SUPPLY DEMAND AND THE DEMAND SIDE OF THE ECONOMY,SUPPLY-SIDE ISSUES HAVE MOSTLY.

BEEN RESOLVED BARRING ANYGEOPOLITICAL EFFECTS FROM THIS POINT ON.THAT DEMAND SIDE EFFECT WE DO THINK ON A QUARTERLY BASIS WECAN GET TO THAT 2% QUICKLY. TOM: HIGH-FREQUENCY ECONOMICS CHINAREPORT IS ALWAYS WORTH READING. DOVETAIL THAT ON WHAT THAT DOES.>> THERE IS WHAT WE ARE IMPORTING IN TERMS OF FROMCHINA. IT'S THE DOMESTIC COMPONENTTHEY ARE WORRIED ABOUT RIGHT NOW IN THE U.S.IN TERMS OF SERVICES INFLATION. WE ARE SEEING IT AS QUICKLY ASWE EXPECTED.

ESPECIALLY THAT HOUSINGCOMPONENT. IF YOU LOOK AT THE STANDINGPATTERNS. IT HAS STABILIZED AT THAT 2%.IF YOU LOOK AT THE OUTRAGE VERSUS THE THIRD QUARTER ANDWHAT HAPPENED. BUT IT'S JUST THAT RATES HAVECHANGED IN THE CORE SERVICES INFLATION ARE JUST SO ELEVATEDAND THAT'S THE COMPONENT THAT NEEDS TO REALLY SETTLE MORESUBSTANTIALLY. WE THINK THE HOUSING COMPONENTWILL COME THROUGH GOING FORWARD. JONATHAN:WE SPOKE TO RENAISSANCE MACRO.

AND THEY SEE THEY ARE POINTINGTO CONSUMER AND BUSINESS CONFIDENCE BEGINNING TO PICK UP.DO YOU SEE ANY PICK UP THE ECONOMY AGAIN AS WE PROGRESSTHROUGH THE YEAR. >> THERE'S A LOT THAT'S GOINGTO GO RIGHT FOR HOUSEHOLDS AND BUSINESSES IN 2024.RIGHT NOW THE CONSUMER IS STARTING TO FEEL A BIT BETTER.INFLATION WILL CONTINUE TO CALM DOWN. REAL WAGES ARE RISING. THERE'S A LOT THAT'S POSITIVEFOR HOUSEHOLDS AND THERE'S A LOT THAT'S POSITIVE FORBUSINESSES BECAUSE INTEREST.

RATES ARE GOING TO GO DOWN.THE POLICY STANCE WILL BECOME LESS RESTRICTIVE AND CREDITCONDITIONS AND FINANCIAL RESTRICTIONS WILL EASE.WE THINK THERE IS A CHANCE THAT THE UPSIDE SURPRISES IN THEECONOMY. IT'S JUST IN THE VERY NEAR TERMTHEY WILL STEP BACK BECAUSE THEY THINK INTEREST RATE WILLGO DOWN AND HOLDING BACK ON PURCHASES.THAT'S WHAT WE ARE TRYING TO FIGURE OUT. WHERE IS THAT DYNAMIC AND WHEREDOES THE FED TAKE THAT NEXT.

STEP. >> I THINK IT'S MORE IMPORTANTNOW BECAUSE THERE'S SO MUCH DATA , LEADING INDICATORS, ASOFT DATA VERSUS HARD. WHAT ARE YOU PUTTING MOREWEIGHT ON? WHAT'S THE BETTER GUIDE FOR YOU?RUBEELA: WE ARE FOCUSED SQUARELY ON THELABOR MARKET. NOW WE ARE FOCUSED ON THE LABORMARKET. IS THERE GOING TO BE A MORESUBSTANTIAL SEPARATION WITH INDICATIONS FOR HOW HOUSEHOLDSWILL RESPOND.

WE STILL THINK BASELINEPROJECTION IS JOB GROWTH WILL REMAIN POSITIVE. SINCE EARLY 2022 THATUNEMPLOYMENT RATE HAS BEEN BELOW 4%.WE DON'T THINK THERE WILL BE A SURGEON THERE BUT WE AREFOCUSED ON THE LABOR MARKET IN TERMS OF OUR THEIR LAG EFFECTSOF POLICY THAT ARE GOING TO SHOW UP. >> ARE YOU GOING TO BE LOOKINGMONTH OVER MONTH DYNAMIC YEAR-OVER-YEAR DYNAMIC OF THEDATA TOMORROW.

AND IN WHAT WAY DO YOU LOOK ATTHE ANNUALIZED DATA. IS IT THREE MONTH ANNUALIZED ATHIGH-FREQUENCY ECONOMICS OR IS THERE SOME SECRET SAUCE. >> WE ARE LOOKING AT THE MONTHON MONTH TREND BUT ALSO HOW HE EMPHASIZED THAT SIX MONTHANNUALIZED CHANGE, WE ARE ALSO LOOKING AT THAT. I THINK YOU HAVE TO LOOK ATEVERYTHING, OF THE QUARTERLY CHANGES.OUR ESTIMATES SUGGEST THAT ANNUALIZED EXCHANGE WILL PICKUP A LITTLE BIT AND MIGHT CATCH.

THE MARKETS ATTENTION.IT IS A WHOLE HOST OF THINGS WE ARE LOOKING AT.INCLUDING THE MONTH ON MONTH AND YEAR ON YEAR.FOR US IT'S ALL ABOUT THAT TARGET.IT'S THE YEAR ON YEAR CHANGE AND THAT'S WHAT WE ARE FOCUSEDON. >> HOW WILL THE FED FUND INTOTHIS. LOOKING TOWARDS MARCH OR EVEN ARATE CUT EARLIER THAN THAT. WHERE ARE YOU ACTUALLY ON ARATE CUT OFF OF YOUR GUESSTIMATE FOR TOMORROW.

>> WE THINK THE FED — THEFIRST RATE CUT IS GOING TO COME IN JUNE.WE THINK THE INFLATION PICTURE IS GOING TO INCLUDESUBSTANTIALLY AND BY JUNE THEY WILL HAVE ENOUGH INFORMATION INTERMS OF HOW RESTRICTIVE THE POLICY RATE WILL BEPROGRESSIVELY MORE RESTRICTIVE AS INFLATION COMES DOWN AND BYJUNE THEY FEEL THAT ENOUGH PROGRESS ON THE LABOR MARKETTHAT THE POLICY RATE DOES NOT NEED TO BE OVERLY RESTRICTIVE.OUR FIRST PROJECTION INFLATION SURPRISES TO THE DOWNSIDE MORETHAN WHAT WE ARE EXPECTING.

>> THANK YOU FOR THE UPDATE ANDTHE INSIGHT. HIGH-FREQUENCY ECONOMICS.JUST ON WITH HER 2024 MARKET OUTLOOK.THIS IS THERE VIEW ON CENTRAL BANKS.THEY NAVIGATED A SMALL — SOFT LANDING THUS FAR. IT LEADS US TO PREDICT RATEREDUCTION STARTING IN Q2. ALONGSIDE WHAT WAS SAID JUSTTHERE. >> THIS IS IMPORTANT BECAUSE OFWHERE IT'S COMING FROM AND THE PROCESS LOOKING AT GRANULARDATA . I CANNOT SAY ENOUGH HOW.

IMPORTANT IT IS FOR EVERCOREISI TO LOOK AT WHAT TRUCKING IS DOING. OTHER ESOTERIC STUFF. WE ARE ALL LOOKING AT WHO ISSPEAKING TODAY AT THE FED. NOT LOOKING AT WHAT JOHNWILLIAMS WILL SAY. HE WANTS TO KNOW WHAT TRUCKSARE DOING IN LITTLE ROCK. >> A COUPLE OF THINGS YOU CANSAY IT ON THE SURFACE SOUND CONTRADICTORY.BUT THEN WE CAN DELIVER RATE CUTS, RATE REDUCTIONS.I WONDER IF JOHN WILLIAMS ENTERTAINS THAT CONVERSATIONLATER THIS AFTERNOON.

CAN YOU DELIVER THOSE SURGICALRATE CUTS AT THE SAME TIME WITHOUT LETTING THEM BECOMEMORE RESTRICTIVE. TOM: HE IS GOING TO CURE RATE IN THEDIFFERENT IDEAS AND I WONDER HOW MUCH THE FISCAL DYNAMIC INQT WILL SLIP INTO HIS SPEECH. I THINK PEOPLE WANT TO HEARFROM A MONETARY THEORIST ABOUT THE YELLEN WORLD.ABOUT WHAT QT DYNAMICS WOULD BE BEST. JONATHAN:AND THE SEQUENCING. JUST A FEELING YOU TAKE AWAY QTBEFORE YOU START REDUCING INTEREST RATES AND THEN WHENYOU START TALKING ABOUT.

REDUCING INTEREST RATES YOUTHINK MORE ABOUT WHAT'S HAPPENING WITH REAL RATES.AND TRYING TO KEEP THINGS PRETTY STILL.I THINK THAT'S GOOD TO BE THE CONVERSATION. TOM:EVERYTHING I'M LOOKING AT THE REAL RATE. >> EQUITIES UNCHANGED ON THES&P 500. JEFFRIES WITH THE LATEST ON THEBOEING NEAR DISASTER OF THE LAST FEW DAYS.MORE ON THAT STILL TO COME. THIS IS BLOOMBERG.

>> WE ARE GOING TO APPROACHTHIS ACKNOWLEDGING OUR MISTAKE. WE ARE GOING TO APPROACH ITWITH 100% TRANSPARENCY EVERY STEP OF THE WAY.WE WILL WORK WITH THE NTSB WHO WAS INVESTIGATING THE ACCIDENTITSELF TO FIND OUT WHAT THE ROOT CAUSE IS.WE HAVE LONG EXPERIENCE WITH THIS GROUP. JONATHAN: A STRONG ADDRESS FROM THEBOEING CEO SPEAKING AT A COMPANYWIDE MEETING TO ADDRESSIT 737 MAX NINE PLANE. FROM NEW YORK CITY THIS MORNINGGOOD MORNING.

IF YOU ARE JUST WAKING UP THISIS HOW THE SCENE IS SET. NO DRAMA ON THE EQUITY MARKETTOTALLY UNCHANGED. THE BOND MARKET NOT DOING MUCHEITHER. 39943. TALKING ABOUT THE CALENDAR FORTHE NEXT FEW DAYS. WE WILL HEAR FROM JOHN WILLIAMSLATER ON THIS AFTERNOON. THE FED SPEAK STARTS TO PICK UPTOMORROW MORNING ON FRIDAY. BANK EARNINGS SEASON REALLYKICKING OFF. JP MORGAN, BANK OF AMERICA ANDA WHOLE HOST OF OTHERS THROUGH THE WEEK. TOM:.

JP MORGAN CAPTURING PROFITDOLLARS IN BANKING. THEY WILL SLIDE THROUGH THIS ONHOW MUCH THEY ARE MAKING. WHAT'S GOOD TO BE INTERESTINGABOUT THIS IS WITH BLACKROCK WE HAVE NOT ADDRESSED YET WHAT ISTHE RIGHT SIZE TO COST EFFICIENCIES.THAT'S GOING TO BE I'M NOT SURE WHAT THEY KNOW WHAT THEY'REGOING TO SAY ON WEDNESDAY. >> 3% OF GLOBAL WORKFORCE 600EMPLOYEES. ABSOLUTELY NAILED IT. THIS IS WHAT YOU WERE LOOKINGFOR NOW. WILL WE SEE MORE OF THAT FROMTHE OTHER PLAYERS.

SOME OF THE BIG SHIFTS THEY ARESTARTING TO SEE AN ASSET MANAGEMENT.I'M WONDERING IF YOU SEE IT ELSEWHERE. >> ASSET MANAGEMENT MAY BE AS AGOSSIP IDEA ESG AND THAT STRUGGLE.THIS IS NOT SOME ANNUAL LAYOFF AT JOHN DEERE OR CATERPILLAR.THEY DID A LAYOFF 12 MONTHS AGO. THEY HAD LAYOFFS SOMEWHERE. THE ANSWER, OF 3%.IT ADDS UP TO A REAL NUMBER. JONATHAN:WE SEE OUR INDUSTRY CHANGING.

FASTER THAN AT ANY TIME SINCETHE FOUNDING OF BLACKROCK. THAT'S QUITE A STATEMENT OFFTHE BACK OF THAT DECISION. >> WHERE ARE BOEING AIRCRAFTARE MADE. I BELIEVE IT'S WASHINGTON WHERETHEY WERE TUNED INTO THE COLLEGE FOOTBALL GAME HERE AWHILE BACK. AN EXPERT ON THAT IS THE SENIOREQUITY RESEARCH ANALYST AT JEFFERIES WHO JOINS US THISMORNING. >> THERE ARE THREE PRODUCTIONLINES. THE THIRD ONE JUST OPENED UP SOIF YOU THINK ABOUT IT EACH ONE.

OF THOSE CHURNS OUT 15 TO 17PER MONTH. THE FOURTH ONE WILL OPEN NEXTYEAR IN EVERETT ABOUT AN HOUR AND A HALF AWAY FROM RENTON. >> I DON'T WANT YOU TO TALKABOUT THE LEVERAGE FINANCE JP MORGAN AND YOUR AWARD-WINNINGWORK. FORGET ABOUT IT. OUR LISTENERS AND VIEWERS WANTTO KNOW WHERE IS THE PROBLEM AND IS IT EASY TO FIX.IS IT IN WASHINGTON OR IS IT THE FUSELAGE RIVETERS IN KANSAS.>> THE PROBLEM IS THE PANDEMIC DETERIORATED THE AEROSPACEWORKFORCE.

THE PROBLEM IS NOT ONLY AT THEBOEING FACTORY BUT THE SMALL TIER THREE THEY ARE SEEINGSTRAIN ON THEIR WORKFORCE. THE PROBLEM HAS BEEN FOCUSEDOVER THE LAST YEAR IN SPIRIT IN WICHITA WITH THREE INCIDENTS ONTHE MAX OR THE 87 INVOLVING QUALITY ISSUES.THERE'S BEEN MANAGEMENT CHANGES TO ADDRESS THOSE QUALITY ISSUES.I THINK THAT'S THE FOCUS ITEM GIVEN THAT WE'VE SEEN SMALLIMPROVEMENTS. >> THIS SOUNDS SHOCKING.I WOULD LOVE YOUR RESPONSE TO THIS, ARE WE SUGGESTING THINGSARE SAFE BUT NOT AS SAFE AS.

THEY WERE BEFORE THE PANDEMICIN THIS INDUSTRY. >> I THINK THE INDUSTRY ISHAVING A TOUGH TIME GETTING BACK UP TO POST-PANDEMIC LEVELSAND WE ARE MANUFACTURING IN SEPTEMBER ONLY MANUFACTURING INTHE TEENS AMONG THESE MAXES. SO WE ESSENTIALLY IN DECEMBERDELIVERIES HALF OF THAT WAS OUT OF INVENTORY.HALF OF THAT WAS ACTUAL PRODUCTION SO WE DOUBLED OUTPUTIN THREE MONTHS. WE WERE TRYING TO DOUBLE OUTPUT.THERE'S A STRAIN GIVING AIR TRAVEL IS BACK TO 2019 LEVELSTO GET THIS AIRCRAFT PRODUCTION.

BACK. IT WAS VERY CONSTRAINED. >> DEMAND THAT BOEING IS NOTTHE PROBLEM IT IS DELIVERIES. WE HAD MIKE O'LEARY SIT IN YOURSEAT AT THE END OF LAST YEAR COMPLAINING ABOUT THE DELAYS TOTHE TO 7 — THE 737 MAX. HOW CLOSE ARE WE TO FURTHERDELAYS AND ULTIMATELY CANCELED ORDERS. >> I'M SURE HE WAS MOREENTERTAINING THAN ME. >> HE'S MORE ENTERTAINING THANI AM. DON'T WORRY ABOUT IT. >> WE'VE SEEN DELIVERY SLOPE.WE DELIVERED ABOUT 1000.

AIRCRAFT IN 22.SO WE'VE SEEN THAT HAPPEN ALREADY. WE ARE KNOCKING TO SEECANCELLATIONS. SEEING THE ORDERS STRETCH OUT.EVERYONE WANTS TO GET IN LINE. EVEN RYANAIR WHO'S BEEN THEMOST OUTSPOKEN HAS TALKED ABOUT WANTING THAT AIRCRAFT SOONERAND PRICING BEING BETTER FOR THEM ON SOME OF THE RYANAIRAIRCRAFT BECAUSE THEY WANT THE AIRCRAFT SOONER. >> PLAYING THIS LOW, IS THIS AHUGE STRATEGIC OPPORTUNITY IN THE UNITED STATES OF AMERICAFOR SALES AT AIRBUS.

>> I THINK THE OPPORTUNITY WASFROM 2019 TO 23 WHEN THE MAX WAS ESSENTIALLY GROUNDED NOTDELIVERING TO CHINA. AIRBUS HAD THEIR OPPORTUNITY. WHAT WE SEE IS BOEING PRODUCES50 MAXES A MONTH AND AIRBUS TO 75. SO THEY ALREADY HAVE THATMARKET SHARE. AIRBUS HAS ITS OWN ISSUES.THE AIRBUS AIRCRAFT HAS TWO OPTIONS. THE RAYTHEON OPTION. WE KNOW THE GTF HAS ACONTAMINATED POWDER IN IT SO THEY ARE BASICALLY GROUNDING40% OF THE GTF ENGINES IN THE.

FIRST HALF OF THIS YEAR TO DOINSPECTIONS ON THEM. AIRBUS IS NOT SURE OF ITSISSUES AS WELL. >> SOME OF THIS IS THECOMPLEXITY OF THE ENGINEERING ACROSS AVIATION.I GET THE COVERT IDEA. I THINK THAT'S BRILLIANT.ARE WE HAD A POINT WHERE THESE THINGS ARE BECOMING TOO COMPLEX?>> NOT ENOUGH FUEL EFFICIENCY. NOT ENOUGH ENERGY EFFICIENCY.TWO PILOTS TO FLY THE DESK FLY THE PAIN.WHAT WE'VE SEEN IN THE AIRCRAFT INDUSTRY IS NO NEW MODELS.THIS IS THE 20 20'S ARE JUST AN.

UPGRADE OF THE EXISTING MODELS. >> ARE THEY STILL TRYING TO DOONE PILOT PLANE? >> I THINK THAT'S OFF THE BOOKSFOR NOW. THE FOCUS HAS BEEN ON THEENGINE. THE FUEL EFFICIENCY AND WHAT WEGET IN THE TIMEFRAME AND HOW THAT AIRCRAFT TAKES US OVER THENEXT TWO TO THREE DECADES. >> THE SITTING OF THE JET BACKAND FORTH ON THE WING WAS DUE TO FUEL EFFICIENCY.SHOULD WE JETTISON FUEL EFFICIENCY IS AN ENGINEERINGMANDATE.

>> THAT'S WHAT WE ARE AIMINGFOR. NOT ONLY IN PRODUCTION BUT THEEFFICIENCY THAT THEY ARE GAINING.NOT CALLING THEM OUT ONLY WITH THE RAYTHEON ISSUES.NOT ONLY THE CONTAMINATED POWDER.THEY NEED TO DO UPGRADES TO GET THEM UP TO PAR. >> SHE IS CONFIDENCE BUILDING. >> THIS IS A DIFFICULT ONE.HOW DO YOU EXPECT THE REGULATOR TO RESPOND TO THIS.HOW DO AUTHORITY STEP IN.

>> YOU STARTED OFF VERY STARKCONTRAST WITH DAVE CALHOUN YESTERDAY.NTSB IS SOLELY FOCUSED ON THE ACCIDENT.WE WILL KNOW WHAT REALLY HAPPENED.THE FAA SAID GROUNDING 12 HOURS IN.I THINK THEY ARE TAKING A STARK STANCE.BOEING HAS THIS DIRECTIVE OUT AND I THINK WE CAN SEE THEAIRCRAFT BACK IN THE AIR BY THE END OF NEXT WEEK. JONATHAN:THAT QUICKLY? >> IT'S AT 48 HOURS TO INSPECTTHE AIRCRAFT.

YOU THINK ABOUT THE PR ELEMENTOF IT. >> WHEN YOU HEAR FROM THEREGULATOR THEY HAVE TO START OUT BROAD.ACTUALLY HAVE ALL OCEAN — OPTIONS OPEN.DO YOU GET THE SENSE THEY'VE NARROWED THIS INVESTIGATIONDOWN NEXT WEEK? >> THE NTSB WILL TAKE A YEAR TOCOME TO A CONCLUSION ON WHAT HAPPENED AND WHAT THE CAUSE WASPAID THE FAA SEEMS CONFIDENT IT CAME OUT SO QUICKLY. >> THIS AMAZING COMPANY WHEN ITSTARTED. 21 BILLION MARKET CAP.

51 TIMES PE.WHEN I FIRST STARTED COVERING THE STOCK, OF THE MARKET CAPWAS $2 BILLION. THEY ARE A GENERIC AIRCRAFTPARTS MANUFACTURER AND THEY SUPPLY THE AFTERMARKET.THE MORE WE DON'T GET NEW AIRCRAFT DELIVERIES THE MORETHEY BENEFIT BECAUSE THE OLD PLANES GET SERVICED. >> SORT OF LONG BOEING BUT WEDIDN'T. GOOD TO HEAR FROM YOU. JUST FANTASTIC. SHEILA OF JEFFRIES ON THESITUATIONS SUPER DIFFICULT.

THAT ADDRESS WAS PRETTYPOWERFUL YESTERDAY. REALLY TAKING ON HOW SERIOUSTHIS COULD HAVE BEEN. >> THIS IS WHAT SURVEILLANCE ISABOUT. TALKING TO ADULTS. >> WE WILL TALK TO PRINCIPALASSET MANAGEMENT ON THE PROGRAM LOOKING FOR VOLATILITY IN THEFRONT HALF OF THIS YEAR AND A >> I AM STILL VERY BULLISH FOR2024 BUT I THINK IT WILL BE DIFFERENT TO THE RALLIES WE SAWLAST YEAR. >> THERE ARE SOME STRUCTURALCHANGES IN THE MARKET. >> I THINK AT THE ECONOMICDOWNTURN THAT THE BIGGEST RISK.

OF IT'S PRICED IN THE MARKET. >> MARKETS ARE BACK TO THISGOOD NEWS ON THE ECONOMIC FRONT. WHICH IS CAUSING YIELDS TO BACKUP. BAD NEWS ON THE EQUITY FRONT. >> RIGHT NOW IT'S NOT ONE OFTHOSE TIMES. >> THIS IS BLOOMBERGSURVEILLANCE WITH TOM KEENE, JONATHAN FERRO AND LISAABRAMOWICZ. >> LIVE FROM NEW YORK CITY THISMORNING. GOOD MORNING FOR OUR AUDIENCEWORLDWIDE.

ALONGSIDE TOM KEENE I AMJONATHAN FERRO. YOUR EQUITY MARKET ON THE S&P500 TOTALLY UNCHANGED. THE DRAMA SAFE FOR YESTERDAYAFTERNOON AFTER THE CLOSE LET'S PULL A BITCOIN AND TAKE ANOTHERLOOK AT THAT DRAMA. TITE AT ONE POINT IT FELT LIKEON TWITTER THE SEC HAD GRANTED APPROVAL OF SPOT BITCOIN ETF'SAND THEN WE FIND OUT IT'S ALL A HOAX. >> WE STAGGER INTO WEDNESDAYAND I GUESS WE ARE EXPOSED TO TAKE IN TODAY.

>> POSSIBLY WHO KNOWS. ERIC WHO IS TRULY AN ETFEXPORTED BLOOMBERG'S INDUSTRY-LEADING IS THESTATEMENT WE CAN MAKE. HE SAYS THERE'S THIS RAGINGDEBATE ABOUT HOW MUCH CASH IS GOING TO GO INTO THIS. HE IS LIKE A MODEST AMOUNT, 15OR 20 AND OTHERS ARE SAYING 100 BILLION.NO ONE REALLY KNOWS THE MONEY THAT'S GOING TO GO INTO THIS. >> IT WON'T TAKE ME LONGBECAUSE WE DON'T KNOW MUCH AT.

ALL FROM THE SEC THEY SAID THETWEET WAS AN UNAUTHORIZED TWEET. NOT DUE TO ANY ISSUES WITH ITS– SAYING THE ACCOUNT DID NOT HAVE TWO FACTOR AUTHENTICATIONENABLED. PLENTY OF EMBARRASSMENT TOSHARE BUT PARTICULARLY FOR THE SEC. TOM:INTERESTING TO SEE BETWEEN THE CHAIRMAN AND THOSE AROUND HIMON THE COMMITTEE. THERE'S A LOT OF REPUBLICANS ATTHE SEC SAYING LET'S GO FREE ENTERPRISE AND A FEW OTHERPEOPLE SAYING MAYBE NOT. THAT'S THE CRUX OF THE DEBATEAND THE UNKNOWN UNKNOWN.

>> CLOSE TO 46 K THIS MORNING.WE CAN GET BACK TO BUSINESS HERE ON WALL STREET GOING INTOTOMORROW YOU START TO GET THE ECONOMIC DATA AND THE EARNINGS. >> A DATA DELUGE.I CAN'T SPELL IT I CAN SAY IT. IT WILL BE A WALL OF DATA ANDTO YOUR POINT THE ECONOMIC ANGLE ON WALL STREET ARE MOREFOCUSED ON WHAT WE SEE IN GLOBAL WALL STREET BECAUSE PROSARE TELLING THE COMPANY BY COMPANY WE ARE LOWBALLINGEVERYTHING. >> LET'S GET TO THE SCORES.EQUITY FUTURES TOTALLY.

UNCHANGED.FUTURES GOING NOWHERE. YIELDS COMING IN A BASIS POINTOR TWO. IN AND AROUND 4% FOR THE LASTFEW SESSIONS. JUST SOME STABILITY GOING INTOTHE DATA TOMORROW MORNING. IN AND AROUND THAT CURRENCYPAYING POSITIVE BY 0.14%. HERE'S THE DAY AHEAD. FED SPEAK JOHN WILLIAMS 315THIS AFTERNOON. THE NEW YORK FED PRESIDENTCOMING UP LATER ON TODAY AND THEN ON TO TOMORROW MICHAELMCKEE AT 11:30.

YOU WILL HEAR FROM KASHKARI ONFRIDAY. >> LOVE THIS MIX HERE.ALL ARE DIFFERENT FED PRESIDENT SAID GOVERNORS.AN AEROSPACE ENGINEER. HE'S GOT A MUCH MORE CORPORATEFUSE. HIS PRIVATE SERVICE, LORETTAMESTER IS A MATHEMATICIAN AND JOHN WILLIAMS HIS ORIGINALECONOMIC LITERATURE ABOUT GUESSTIMATING WHERE THAT STARTIS PRAYED >> PARTICULARLY IN ANTICIPATION OF DATA.WHAT ELSE CAN THEY REALLY SAY. CPI COMING UP TOMORROW MORNING.WE KNOW FROM WILLIAMS WHAT HE.

HAD TO SAY AFTER THE NEWSCONFERENCE, WHAT WAS THAT MESSAGE.WE ARE NOT REALLY TALKING ABOUT RATE CUTS AT THE FEDERALRESERVE. >> I WOULD GO BACK TO HISBELIEF THROUGH NOW WHERE HE'S LOOKING FOR US TO RETURN TO AMORE QUIET GENERALIZATION TO PERCENT LEVEL AND THERE'S SOMEHUGE PUSHBACK WHETHER IT'S THE FORMER VICE CHAIRMAN SUGGESTINGA HIGHER LEVEL OF 2% AND OTHERS INCLUDING FOLKS.I PUT IT OUT LAST NIGHT BUT IT'S A BLISTERING PRE-DAVOSNOTE.

>> BASICALLY SAYING WE WILL SETHIGHER INTEREST RATES. JACKSON HOLE ESSAY ON DEBT ANDKEN SAYS THEY GOT IT WRONG. WE ARE GOING TO SEE A HIGHERRATE REGIME. >> LAST WEEK WITH THE FIRSTPROGRAM OF THE YEAR THE THREE OF US WERE SITTING AROUNDSAYING WE ARE HITTING THE GROUND RUNNING ON THE OFFEREARNINGS AS WELL. ON FRIDAY YOU GET EARNINGS FROMJ.P. MORGAN BANK OF AMERICA, WELLSFARGO ALL REPORTING. THAT'S THE BIG EVENT AFTER THEDATA ON THURSDAY IT'S ONTO.

EARNINGS. >> CITIGROUP WITH A GREAT LONGESSAY ON MIKE MAYO WHO IS A GOOD FRIEND OF THE SHOW.HE IS UP ON THE TABLE POUNDING BY JANE FRASER. BY CITIGROUP. IF YOU ARE NOT FOCUSED ON THISYOU WANT TO SEE SOME FIREWORKS CONSIDER MIKE MAYO WITH ADOUBLE ON BELEAGUERED CITIGROUP OUT X NUMBER OF YEARS. >> LET'S CATCH UP WITH THECHIEF GLOBAL STRATEGIST. JOINING US RIGHT NOW.GREAT TO CATCH UP.

A TWO-PART STORY FOR YOU.FIRST HALF VOLATILITY SECOND-HALF RALLY.IT REMINDS ME OF SOME OF THE OUTLOOKS I GOT LAST YEAR FOR2023. WHAT IS IT WHERE YOU THINK THATSTORY COULD TAKE PLACE? >> I THINK IF YOU THINK ABOUTWHERE WE WERE AT THE END OF LAST YEAR WHERE YOU HAVE APRICE OF PERFECTION. YOU COULDN'T GET BETTER NEWSTHE FED WOULD START CUTTING EARLY YOU WOULD HAVE A SOFTLANDING ETC.. I'M NOT SAYING THAT'S NOT ALLGOING TO COME TRUE BUT AT THE.

BEGINNING OF THIS YEAR YOU AREALREADY SEEING THE MARKET PUSHBACK ON SOME OF THOSEORIGINAL EXPECTATIONS. YOU ARE SEEING ECONOMICRESILIENCE. I STRUGGLE TO SEE WHAT IS GOINGTO BE THE CATALYST TO DRIVE ANOTHER LEG UP IN THE NEAR TERM.WE NEED TO SEE A PULLBACK AS THE MARKET STARTS TO QUESTIONTHEIR RATE EXPECTATIONS AND THEN AS YOU GET TOWARDS THEMIDDLE OF THE YEAR AND YOU GET CLOSER TO THE ACTUAL RATE CUTTODAY YOU SEE A SLOWDOWN BUT IT DOES NOT COME DOWN TO DAMAGING.THAT TO ME IS THAT GREEN SIGNAL.

FOR THE RALLY. TOM:DOVETAIL NOMINAL GDP THAT COMBINATION OF REAL GDP PLUSTHE INFLATION WITH THE IMF'S CALL OF A BELEAGUERED SLOWGLOBAL ECONOMY OUT FOR YEARS TO 2028.WHERE ARE WE IN THAT CONTINUUM AS WE GO INTO 2024.IS THERE AN ANALYST SPIRIT WITHIN GDP OR WILL IT DRIFTAWAY. >> WE ARE ANTICIPATING A GLOBALGROWTH SLOWDOWN. THE U.S., EUROPE, CHINA.IT'S NOT EXCITING BUT YOU HAVE A COUPLE OF BRIGHT SPOTS.WE ARE NOT ANTICIPATING A VERY.

PROLONGED ECONOMIC WEAKNESS SOI THINK THIS IS A FAIRLY DECENT NOMINAL GROWTH ENVIRONMENT.ALONG WITH THAT COMES THE IDEA WE DON'T SEE INFLATION COMINGBACK DOWN BELOW 2% LIKE YOU SAW IN PREVIOUS YEARS.FOR A REAL BRIDGE I KNOW YOU ARE FOCUSED ON IT'S A SLIGHTLYMORE CHALLENGING ENVIRONMENT. INVESTORS NEED TO START TAKINGTHAT INTO CONSIDERATION AS ITS STARTING TO POSITION. >> WHAT DOES THE REAL RATE DOON THE 10 YEAR INFLATION-ADJUSTED RATE IN THEUNITED STATES.

>> WE ARE EXPECTING TO COMEDOWN SLIGHTLY BUT NOT TOO MUCH. IF I GIVE YOU AN IDEA WE AREEXPECTING THE FED TO GO THREE TIMES 25 BASIS POINTS EACH TIME.WE ARE EXPECTING INFLATION TO COME DOWN AROUND 2.4 PERCENTLEVEL SO IT'S NOT TOO FAR FROM WHERE WE ARE TODAY.THAT IS A LITTLE BIT QUITE RESTRICTIVE.SO YOU ARE NOT IN A FANTASTIC ENVIRONMENT FOR RISK ASSETS BUTTHERE'S A LOT OF CYCLICAL FACTORS WE CAN TAKE INTOCONSIDERATION. YOU ARE LOOKING AT A HIGHERCOST WE'VE HAD IN THE LAST.

DECADE OR SO.SO YOU NEED TO BE SCREENING YOUR STOCKS A LITTLE BIT CLOSER.YOU NEED TO BE THINKING MORE ABOUT BONDS AS WELL.IN TERMS OF INFLATIONARY SCENARIO.WHERE INFLATION DOESN'T COME ALL THE WAY BACK DOWN TO WHATIT ACCUSTOMED TO BEFORE. THEY DON'T PERFORM AS WELL ASWOULD'VE EXPECTED. >> I WILL SHARE WITH YOU WHATWE HEARD FROM LAURIE OF RBC OVERNIGHT.A GREAT INDISCRETION READ. WITH — WE ARE WARY OF BEINGOVER — GIVEN THE TENDENCY OF.

THE SECTOR TO OUTPERFORM ANINTEREST RATES ARE FALLING. THERE ARE TWO SECTORS LEADINGTHE PACK TO CLOSE OUT LAST YEAR. WHERE ARE YOU ON THE FORMAT ANDFOR THAT MATTER WHERE ARE YOU ON THE LATTER. SEEMA:I'M NOT TOO NEGATIVE. I DON'T THINK THERE ISSIGNIFICANT AS MAY BE A LOT OF PEOPLE INCLUDING MYSELF THERE'SA LOT GOING FOR CONSUMERS AT THE MOMENT.AS LONG AS THE LABOR MARKET IS HOLDING UP AS STRONG AS IT IS,ON THE TECH SIDE I STILL HAVE SOLID EXPECTATIONS FOR TECH.I WONDER IF THE EXPECTATIONS.

FOR THE MARKETS WILL BEFULFILLED. WANTED TO GO NEGATIVE ORUNDERWEIGHT TECHNOLOGY THERE ARE OTHER PARTS OF THE MARKETWHICH ARE MORE INTERESTING IN 2024 IF YOU CAN SEE FED CUTSAND SOFT LANDINGS. >> WHAT'S THE BIG CALL FOR YOU.WHERE DO BANKS FIT IN GIVEN EARNINGS ON FRIDAY. >> I THINK AS YOU'VE SEEN IN ALOT OF PARTS OF THE MARKET HEADWINDS ARE THE BEST OF THEYEAR BUT AS YOU GO THROUGH THE SECOND, BANKS CAN DO WELL.THE OTHER PART WHICH SHOULD BE.

GAINING INTEREST THERE WILL BEA BIT MORE IN THE FIRST QUARTER BUT SMALL CAPS I THINKEVALUATIONS ARE TRYING TO TYPICALLY WHEN YOU GET A FEDCUTTING CYCLE AS A COMPANY YOU WANT TO RETURN TO ALL THE SOLIDGROWTH. THAT IS TYPICALLY A GOOD CUTFOR SMALL CAPS. WHEN YOU'RE LOOKING AT THELARGE AND SMALL CAP IT GETS VERY ATTRACTIVE.INVESTORS MAY BE EDGING INTO THOSE POSITIONS. >> IF YIELDS COME DOWN IS THEFLOW OF MONEY OUT OF MONEY.

MARKET FUNDS ASSUMED LINEAR ORIS IT ALL COMING IN ONE GREAT SURGE? SEEMA:IT'S REALLY DIFFICULT TO SAY IN TERMS OF HOW THE INVESTORSENTIMENT WILL GO. ONE THOSE MONEY MARKET DO HAVETHE CREDIT FOR A STRONG RALLY. ONE SOME OF THE QUESTIONSINVESTORS HAVE HANGING UP SO THERE'S QUESTIONS INCLUDINGWHEN IS IT REDUCING INTEREST RATES AND THE SECOND IS WILLTHERE BE AN ECONOMIC SLOWDOWN AND IF THERE IS, HOWDEVASTATING WILL IT BE. I THINK ALL OF THOSE QUESTIONSWILL BE ANSWERED IN A POSITIVE.

TILT IN THAT THERE IS ASLOWDOWN BUT IT IS NOT TOO DEVASTATING.ONCE YOU HAVE SOME OF THESE QUESTIONS ANSWERED, MONEYMARKET FUNDS WILL MOVE TOWARDS THOSE RISK ASSETS WHICH IS ONEOF THE REASONS INVESTORS SHOULD BE POSITIONING FOR A STRONGERSECOND HALF. JONATHAN: THANK YOU, GOOD TO HEAR FROMYOU. IF YOU ARE JUST JOINING US WELCOME TO THE PROGRAM.ALMOST TOTALLY UNCHANGED. POSITIVE BY 0.04%.YIELDS ARE LOWER BY A SINGLE BASIS POINT.THERE IS A TON TO TALK ABOUT.

CPI DATA TOMORROW MORNING.THE EARNINGS AS WELL TALKED ABOUT NUMBERS FROM JP MORGAN,BANK OF AMERICA AND CITI. A LOT TO TALK ABOUT.WE WILL DO THAT IN THE NEXT HOUR.TWO CONVERSATION STAND OUT FOR US. TALKING ABOUT BITCOIN. AND THE LATEST DOWN INWASHINGTON DC AS NIKKI HALEY AND RON DESANTIS FACE-OFF ANDYOU HAVE SOME COUNTER PROGRAMMING ON FOX NEWS. >> IT'S THE SILLY SEASON.ERIC, BLOOMBERG INTELLIGENCE.

BLACKROCK MADE BREAK THE FIRSTDAY FLOW RECORD WITH A POSSIBLE 2 BILLION ASSET INJECTION ONTHE FIRST DAY OF TRADING. BITCOIN ETF. >> GIVEN THE MOVE WE'VE SEENALREADY. >> AS A COMPLETE AMATEUR ONBITCOIN, EVERYONE KNOWS HOW I FEEL ABOUT THIS. >> KELLY JOINS US ABOUT 30MINUTES FROM NOW. TONS TO DISCUSS AROUND THETABLE. ANNMARIE HORDERN TO BREAK DOWNWHAT'S BEEN GOING ON IN THE.

PRESIDENTIAL RACE FOR 2024 ANDTHE MYSTERY AROUND THE DEFENSE SECRETARY IS A MYSTERY NO MORE. >> THE DEFENSE SECRETARY ISSICK , HE IS ILL AND THAT'S WHAT HAPPENS.I'M REALLY INTERESTED ABOUT THE IOWA CAUCUS. JONATHAN: ANNMARIE HORDERN FROM NEW YORKCITY THIS MORNING EQUITY FUTURES SLIGHTLY POSITIVE ,GOOD MORNING. >> WE CONTINUE TO STAND WITHISRAEL ENSURING THAT OCTOBER 7 CAN NEVER HAPPEN AGAIN.WE BELIEVE THE SUBMISSION.

AGAINST ISRAEL TO THEINTERNATIONAL COURT OF JUSTICE DISTRACTS THE WORLD FROM THESEIMPORTANT EFFORTS AND MOREOVER, OF THE CHARGE OF GENOCIDE ISMERITLESS. >> U.S.SECRETARY OF STATE ANTONY BLINKEN SPEAKING AFTER MEETINGWITH BENJAMIN NETANYAHU AND OTHER TOP OFFICIALS.CONTINUING HIS TRIP WITH A VISIT TO THE WEST BANK LATER ONTODAY. WELCOME TO THE PROGRAM. THE SCORES LOOK LIKE THIS ONTHE S&P. TOTALLY UNCHANGED. YIELDS ARE LOWER BY A FEW BASISPOINTS.

EVERYTHING ELSE IS REALLY LOUDIN THE MIDDLE EAST AND CRUDE IS QUIET. POSITIVE .2%. TOM: JEFF CURRIE SHOWING UP, I SAWON BLOOMBERG TV AS WELL. I GUESS THERE IS A GLOBAL PRICEAND GLOBAL DISTRIBUTION. THE ANSWER IS SUPPLIES COME ONWITH A VENGEANCE. WHERE WOULD THE PRICE BEWITHOUT THE UNITED STATES. JONATHAN: DREAD TO THINK. TOM: ON THE EURO, I'M GOING TO GOWITH WHAT SOMEBODY SAID THE OTHER DAY.A HUGE OPPORTUNITY TO REFRAME.

OVER THE NEXT 10 DAYS HER VIEWON WHAT THEY DO WITH DISINFLATION IN A REALLYBELEAGUERED GERMANY. >> THE INFLATION STORY HASIMPROVED. PRETTY BRUTAL COMPARED TO WHATWE'VE EXPERIENCED IN AMERICA. TOM:FULL COVERAGE OF THAT NEXT WEEK AS WELL.RIGHT NOW JOINING US OUR BLOOMBERG WASHINGTONCORRESPONDENT WHO HAS BEEN SOUTHEAST OF DES MOINES TOHAYES VAIL, IOWA. IT'S ROMANTIC AS ALL GET OUT.IT'S A POPULATION DECLINE OF.

20% IN ONE SENSE. BERNARD BALIN THE HISTORIANSAID THEY HAVE THE WEST — AND A GUN STORE SURROUNDED BYFIREARMS. THAT'S WHERE THIS PROCESS STARTS FOR REPUBLICANS. >> IT STARTS IN THESE CAUCUSESWHICH IS MORE OF AN EXPERIENCE RATHER THAN A PRIMARY VOTEWHERE THERE — WHERE YOU STOP BY AND CAST YOUR BALLOT ANDLEAVE. THINGS COULD CHANGE IN THE ROOMAS THESE DISCUSSIONS ARE TAKING PLACE.THIS IS WHY YOU HEARD FROM.

FORMER PRESIDENT WHO IS LEADINGBY REAL CLEAR POLITICS A 36 POINT MARGIN IN IOWA HE WANTSTO WIN IN A BIG WAY AND SHE'S COMING OUT SAYING — WHEN HESPEAKING TO IOWA VOTERS AT THESE RALLIES IT'S NOT ENOUGHYOU SUPPORT ME YOU ALL HAVE TO GO OUT TO THESE CAUCUSES TOMAKE A STATEMENT. TOM: FOR OUR INTERNATIONAL AUDIENCE,IN IOWA IS THERE A SENSE OF INTIMIDATION WITHIN THE CAUCUSWHERE THERE IS A ZEITGEIST AND LET'S PRESUME IT'S FOR THEFORMER PRESIDENT. BUT THE ANSWER IS AND HOW DAREYOU VOTE FOR BIDEN OR HALEY.

IT'S NOT JUST A VOTE IS IT?ANNMARIE: THAT'S WHAT WE ARE TALKINGABOUT. IT'S AN EXPERIENCE, A DEBATE.THINGS CAN CHANGE IN THE ROOM. TOM:DO THEY DO THIS IN THE UNITED KINGDOM? ANNMARIE: THERE'S NO GUN SHOPS IN THEUNITED KINGDOM. THE VENUE FOR ONE WOULD BE VERYDIFFERENT. JONATHAN: LET'S TALK ABOUT THE DEBATELATER ON THIS EVENING 9:00 P.M. EASTERN TIME.

GOVERNOR DESANTIS GOING ONAGAINST NIKKI HALEY ONE BY ONE. COUNTER PROGRAMMING ON FOXNEWS, THE FORMER PRESIDENT DONALD TRUMP. ANNMARIE:IT'S GOING TO BE A BIG TEST OF HOW FAR THEY WILL GO INATTACKING TRUMP WHO'S DECIDING TO SKIP THIS DEBATE.HE HAS SKIPPED ALL OF THEM AND HE IS GOING ON FOX NEWS WHERE ALOT OF REPUBLICANS TRADITIONALLY WATCH AND MAKINGHIS FINAL PITCH FOR THESE IOWA CAUCUS-GOERS.I WANT TO SEE HOW MUCH THEY ARE WILLING TO GO AGAINST THEFORMER PRESIDENT AND AGAINST.

EACH OTHER.NIKKI HALEY HAS SHINED IN THESE DEBATES. HE — CHRIS CHRISTIE IS NOTGOING TO BE THERE TO GO TO ON AGAINST TRUMP TRADE FOR ME ITLOOKS LIKE THIS IS MAKE OR BREAK FOR THEIR CAMPAIGN.HALEY RECENTLY HAD A FUMBLE AND RON DESANTIS CALLED IT A WORDSALAD. CAN SHE MOVE PAST THAT IN THEDEBATE. HE'S PUT ALL HIS EGGS IN IOWA.ALL HIS PERSONNEL. JONATHAN:THERE WAS SOME REPORTING IF.

THINGS DO NOT GO WELL IN IOWAHE DROPS OUT. WHAT WE HEARD FROM THE NATIONALCAMPAIGN. ANNMARIE: THEY ARE KNOCKING TO SAY THEYWILL DROP OUT NOW. IT'S FULL STEAM AHEAD FOR IOWA.WHAT DOES HE DO AFTER IOWA? HIS NUMBERS DO NOT LOOK GREATIN NEW HAMPSHIRE. NIKKI HALEY IS DOMINATING INNEW HAMPSHIRE IN TERMS OF EVERYONE BESIDES TRUMP.CHRIS CHRISTIE IS DOING QUITE WELL IN NEW HAMPSHIRE AS WELL.YOU COULD SEE A MOMENT IF RON DESANTIS WANTS TO PULL OUT ANDCHRIS CHRISTIE WANTS TO PULL.

OUT SHE IS ABLE TO WIN NEWHAMPSHIRE. BUT AT THE MOMENT TRUMP ISSTILL DOMINATING THE FIELD. JONATHAN:LET'S TALK ABOUT INTERNATIONAL ISSUES.WE TALKED ABOUT WHAT HAPPENED AND DID NOT HAPPEN WITH THEDEFENSE SECRETARY. IT'S IMPORTANT WITH WHAT'SHAPPENING ON THE GROUND IN THE MIDDLE EAST ACROSS THE REGION.THE REBELS LAUNCHING ONE OF THE MOST COMPLEX ATTACKS TODAY ANDU.S. FORCES AND ALLIES HAVE BEEN SHOOTING DOWN 18 DRONES IN ABARRAGE.

JUST HOW TENSE ARE THEY IN THERED SEA? ANNMARIE: IT IS INTENSE. YOU ARE SEEING A LOT OF SHIPSNOT GOING THROUGH THE RED SEA. THIS WILL TRICKLE DOWN TOCONSUMERS. THINGS ARE INCREDIBLY INTENSEIN THE RED SEA. WE HAVE SEEN THE ADMINISTRATIONHIT BACK. THERE'S INTERCEPTIONS BUT WEHAVE NOT SEEN THEM GO AFTER HOUTHIS IN YEMEN AND THAT COULDBE THE NEXT STEP. TOM: THE NEXT STEP HERE ASSUMESPOLICY FROM THE UNITED STATES.

IT IS OUR POLICY POSTPONED ORPAUSED BECAUSE OF THE UPROAR THE PENTAGON?IS ALL YOUR REPORTING THE THINGS ARE NORMAL AND THATDEBATE IN COMMUNICATION? ANNMARIE:ABSOLUTELY THINGS CONTINUE. IT IS A MACHINE BUT THERE IS ALOT OF CONCERN ABOUT THE COMMUNICATION BETWEEN THEPENTAGON AND THE WHITE HOUSE GIVEN THE ABSENCE OF LLOYDAUSTIN. YESTERDAY WHEN THE WORLD FOUNDOUT LLOYD AUSTIN'S ELECTIVE PROCEDURE WHICH MEANS A PATIENTDECIDED TO UNDERGO THIS.

PROCEDURE. ELECTIVE PROCEDURE HAS THISNUANCE THAT POTENTIALLY THIS IS NOT SO SERIOUS.WE FOUND OUT YESTERDAY THIS IS SERIOUS.AT THE SAME TIME THE SAME TIME THE PRESIDENT FOUND OUT SO DIDTHE WORLD. THIS IS A BIG PROBLEM. JONATHAN:THIS COMMUNICATION BREAKDOWN IS NOT NEW.JUST GIVE US AN IDEA OF WHAT'S HAPPENING IN THE ADMINISTRATIONAND WHY THERE CONTINUES TO BE A BREAKDOWN BETWEEN THE WHITEHOUSE AND DEPARTMENTS LIKE THE.

STATE DEPARTMENT, THE PENTAGON.ANNMARIE: THIS ADMINISTRATION SAID WEWILL BE TRANSPARENT, WE ARE THE ADULT IN THE ROOM AND GO BACKTO PROCESS AND PROCEDURE. WHAT WE'VE SEEN FROM THE FALLOF KABUL ON IS A STRUGGLE WITH INTERAGENCY.THEY ARE INSULAR IN THE WHITE HOUSE.WHEN YOU HAVE INDIVIDUALS WHO SHOULD BE THE TRANSPORTATIONHIGHWAY INFORMATION. IT DOES SEEM LIKE THAT SEEMSWHERE THINGS SEEM TO BREAK DOWN. JONATHAN:JUST A MASSIVE BREAKDOWN.

ANNMARIE HORDERN, BREAKING DOWNTHE SITUATION IN WASHINGTON. >> ACROSS THE SEA TO SHININGSEA IS THE CLICHE GOES. I'M FASCINATED BY THE PATH FROMIOWA TO NEW HAMPSHIRE TO THE MANY STATES.WE TALK ABOUT HAYES VAIL IOWA EAST OF DES MOINES. 41 IS THE POPULATION.A HOUSE THERE FOR SALE IT'S YOURS FOR $179,000. THAT'S THE DIFFERENCE INAMERICA. ANNMARIE AND OUR TEAM LOOKINGAT THAT MASSIVE POLARITY IN.

REAL ESTATE. JONATHAN:TRYING TO GET ME TO MOVE SINCE I'VE MOVED HERE.WHAT TK HAS BEEN PUSHING WAS TAKING IT BACK TO LONDON.I'M ALLOWED JUST OUTSIDE OF MANHATTAN. TOM: YOU AND MATT MILLER CAN HAVE ATWO DOLLAR BREAKFAST ON SATURDAYS. ANNMARIE: JONATHAN: LIVE FROM NEW YORK CITY S&P500 ALMOST TOTALLY UNCHANGED. WE ARE POSITIVE BY .07%.MASTEC UP .19%.

TOM: THE VIX AT 12.85. IT IS A BULL MARKET FIXED.THERE IS NO OTHER WAY TO PUT IT. THE DRAWDOWN IN THE DOW JONESINDUSTRIAL AVERAGE IS .5%. JONATHAN:I APPRECIATE THE UPDATE. THINK HOW WORSE IT WOULD BE IFTHE 10 YEAR WAS STILL AT FIVE, TWO YEAR FIVE POINT 26.WE ARE BACK DOWN TO 3.98. WE ARE DOWN ON THE 10 YEAR TO4.335. TOM: THE STANDARD DEVIATION, THEVARIANCE OF FORECASTING HE HAS.

NEVER SEEN.AND WHERE LIVING IT DAY TODAY. JONATHAN:THE FORECAST FOR THE S&P, THERE IS A THOUSAND POINTSPREAD. LET'S FINISH ON FOREIGN EXCHANGE ON THE EURO WHICH ISSLEEPY. THE EURO AGAINST THE DOLLARPOSITIVE BY .17. TOM: I SAID TO ANNE-MARIE THAT THISSURVEILLANCE WE GO TO ZURICH BEFORE YOU GO TO DAVOS AND GETTHAT NICE $300 LUNCH. JONATHAN: CAN YOU IMAGINE HOW MUCH THEBURGER KING IS CAN THE COST OF ZURICH? TOM:IT'S GOING TO BE 20 SWISS.

FRANCS. JONATHAN:ABSOLUTELY RIDICULOUS. TOM: YOU WALK INTO THE A HERMES IS $30 MORE THAN IT ISHERE. IT'S A WEIRD MATH IN DAVOS.JONATHAN: LET'S GET TO THE TOP STORIESWHO THE REBELS ARE LAUNCHING ONE OF THEIR WORST ATTACKSHOOTING DOWN DRONES AND MISSILES. CONFIRMING NO INJURIES ORDAMAGE DONE BUT MANY SHIPPING COMPANIES HAVE' REROUTED AROUNDSOUTH AFRICA. TOM:.

THEY PULL BACK THE CAPE OFGOOD HOPE. IT'S WHAT IS IMPORTANT HERE, WEHAVE TO FIND SOME SORT OF OFFENSE BESIDES RANDOMLYSHOOTING DOWN 18 DRONES AND WHAT IS URGENT WITH THE ILLNESS OF THE SECRETARY OF DEFENSE,WHAT KIND OF OFFENSE SHOULD WE HAVE? JONATHAN:ANY UPDATES ON THAT WE WILL BRING THEM TO YOU.THE CEO DAVE CALHOUN SPEAKING TO THE PUBLIC CONCERNING THESAFETY OF THE 7:37. >> I CAN IMAGINE WHAT WOULD'VE.

HAPPENED TO THAT PERSON WHO WASSUPPOSED TO BE IN THAT SEAT. I HAVE KIDS AND GRANDKIDS ANDSO DO YOU. THIS STUFF MATTERS. JONATHAN: THIS WAS A CLOSE CALL.THEY ARE ORDERING INSPECTIONS AFTER LOOSE BOLTS DURINGINSPECTIONS. THERE IS NO CURRENT TIMETABLEFOR THEM TO BE PUT BACK IN SERVICE.THEY SAY THEY COULD BE BACK IN THE AIR AS SOON AS NEXT WEEK.TOM: SHEILA IS THE ENGINEER GEEK. IT WAS ABOUT HOW DO YOU GOTHROUGH THE PROCESS OF.

DETERMINING WHERE WE ARE BEFOREYOU FIGURE OUT WHERE WE ARE GOING TO BE IN THE NEXT FEWMONTHS AND THE KEY THING SHE SAYS IT WILL TAKE 10 YEARS TOFIGURE OUT. JONATHAN: SPIRIT ERA, LET'S TURN TOFINANCIAL SERVICES. YOU'VE HEARD LARRY FINK ISCUTTING 3% OF STAFF CITING RAPID CHANGES IN ASSETMANAGEMENT. WE SEE OUR INDUSTRY CHANGINGFASTER THAN AT ANY TIME SINCE THE FOUNDING OF BLACKROCK. ETF'S ARE BECOMING THEPREFERENCE FOR ACTIVE.

MANAGEMENT STRATEGIES. YOU WONDER HOW MUCH MORE OFTHIS WE WILL SEE IN THE MONTHS TO COME. TOM:AND IT JUST DOESN'T STOP. SHOUT OUT TO MATT CORY WHO SAIDWE NEED TO COVER ETF YEARS AGO. FORGET ABOUT THE BITCOIN, IT'STHE ETF. BOND ETF'S ARE JUST ASIMPORTANT AS EQUITY ETF. THAT GOES FOR BLACKROCK. MAYBE I'M NOT UP TO SPEED, WEDON'T KNOW THE QUALITY OF THE DIVISIONS THAT MAKE UP THAT500, 600. JONATHAN:.

WHENEVER WE TALK ABOUT ISHARESI SPARE A THOUGHT FOR BOB DIAMOND AND WONDER WHAT COULDIN IF HE WERE FORCED TO SELL IT? TOM: I TOTALLY AGREE. WE DIDN'T EVEN KNOW WHAT IT ETFWAS WE HAD NO IDEA WHAT IT WAS AND BOB DIAMOND AND HIS PEOPLE SAID4, 5, 6 COINS. JONATHAN:WE WILL HAVE THE LATEST ON THE S EC AND BITCOIN.EQUITY FUTURES POSITIVE BY NOT EVEN .1%.

FROM BARCLAYS, WHAT IS THEFORECASTING ERROR RIGHT NOW. THE DIFFERENCES OF OPINION AREIMMENSE DO YOU SEE THAT AT THE DESK AT BARCLAYS? >> THERE CONTINUES TO BE FARTOO MUCH CONFIDENCE OF THE SMART FED CUT IN THE FACE OFFINANCIAL CONDITIONS THAT HAVE EASED IN 10 YEAR TREASURIESBACK TO WHERE WE WERE IN EARLY AUGUST. IT'S HARD TO DRAW TOOMANY CONCLUSIONS FROM A SINGLE DATA POINT.THEY HAVE INTRODUCED SOBERING EFFECTS ON THE MARKET.THE PARTICIPATION RATE, WAGE.

DATA, AND MIGHT SHOW THEECONOMY RE-ACCELERATING OVER THE NEXT FEW MONTHS. TOM: UNFAIR QUESTION, WHAT IS THEISSUE ONE'S CALENDAR LOOK LIKE. IS NOW THE TIME CASH RELATEDTECH PUTS OUT MORE? MEGHAN: SIMILAR TO THE FLOODGATES THATOPENED UP OVERNIGHT, THEY HAVE SEEN 83 BILLION NEW ISSUANCEOVER THE LAST SIX DAYS. I THINK ACROSS BROADER MARKETS,IG HAS BEEN THE PLACE WE HAVE SEEN AN ABILITY TO QUICKLYREGAIN OUR FOOTING FROM THE INDIGESTION WE SAW THE START OFTHE YEAR AND IT IS BECOME A.

SILVER LINING. WE HAVE SEEN INVESTORS FINDOPPORTUNITIES TO PUT CASH BALANCES TO WORK.WE ARE RUNNING LARGELY AHEAD OF 2023 VOLUMES AND ON TRACK TOEXCEED ON 150 BILLION FOR THE MONTH OF JANUARY.THAT WOULD BE THE MOST ACTIVE ISSUANCES MAY OF LAST YEAR.JONATHAN: CAN WE GET INTO THE CHARACTEROF THE BARWARE, IS THERE A SHORTER DURATION BUYER, WHAT DOYOU SEE MORE OF? MEGHAN: WHAT'S A BIT OF A DEPARTUREFROM WHAT WE SAW DURING THE TWO.

MONTH RALLY IS A SHIFT TOO LONGAND OUR PERFORMANCE. 10-YEAR OR LONGER ARE GARNERINGSIGNIFICANTLY STRONGER DEMAND THAN THE BELLY OF THE CURVEWHICH OUTPERFORMS TO THE END OF THE YEAR.WE SAW THAT PLAY OUT WITH THE T-MOBILE TRANSACTION.THEIR 30 YEAR WAS SEVEN TIMES OVER PRESCRIBED AND DOUBLE THEDEMAND OF THE FIVE-YEAR. IT'S CREATING OPPORTUNITIES FORBARROOMS. WHAT SUCCESS RATING THESE IS THE SUPPLY WE HAVESEEN SO FAR. THAT IS DOWN 40% YEAR-OVER-YEAR.MOST BORROWERS ARE BE ELECTED.

TO LOCK IN FUNDS WITH ELEVATEDBORROWING COST EVEN IF THEY ACKNOWLEDGE THAT IT BENEFITSTHE TRANSACTION. THE MIX HAS BEEN A SLOW WHEREFINANCIAL CALENDAR. YOU USUALLY SEE TWO THIRDS OFJANUARY THAT WE WILL SEE A TIGHT TURN WITH EARNINGS THISFRIDAY. WE'RE EXPECTING UPWARD TO 20BILLION OF SUPPLY FROM THAT SUBSET OF BORROWERS AND I THINKTHE REGIONALS WILL FOLLOW BEHIND WAS SUPPLY EXPECTATIONSAS THEY PREPARE FOR REGULATORY DEBT REQUIREMENTS. JONATHAN:.

SUPPLY HAS BEEN MET WITH DEMAND.CAN YOU GIVE US AN IDEA WHERE THE DEMAND IS COMING FROM?WHERE ARE THEY DEPLOYING CASH IN THESE MARKETS? MEGHAN:IT'S A YIELD DRIVEN BID. IT WAS FASCINATING TO ME IF YOUTHINK ABOUT IMPLICATIONS FOR CPI, WE HOSTED A ROUNDTABLE ANDTHE MAJORITY OF THE INVESTORS, HEDGE FUNDS, ASSET MANAGERS,INSURANCE COMPANIES. THEY SAY YIELDS MATTER MORETHAN SPREADS. I THINK IT IS FAIR TO SEE THATDATA DEPENDENCY WILL BE KEY. TOM: QUICKLY, I AM ASKING FOR AFRIEND, ARE YOU BUYING THE.

BITCOIN ETF? MEGHAN:I WILL PLAY THE FENCE. JONATHAN: ABSOLUTELY FANTASTIC TO START THE WEEK WITH MEGHAN FROMBARCLAYS. TOM: THERE IS A POINT WHERE YOU GO,THIS IS HARD. THIS BOND STUFF, IT'S HARD.IT'S A TOTALLY DIFFERENT TONE BETWEEN EQUITY AND BONDPART OF A. YOU KNOW SHE READ TO BOISECOVER TO COVER. SHE KNOWS THE OPERATIONALPROCEDURE. THERE ARE ISSUANCE ISSUES WHEREYOU HAVE TO WORK THE PAPER TO.

GET IT DONE. JONATHAN: IF YOU ARE JUST JOINING USWELCOME TO THE PROGRAM. YOUR S&P 500 ALMOST TOTALLYUNCHANGED UP BY 0.01%. SOMETIMES YOU NEED MORNINGSLIKE THIS. TOM: WE WILL GET THE DAILY NEWS ASWE SAID EARLIER. WE ARE DISTRACTED BY THIS BITCOIN, 45,100, CRATERED .IT WAS UP 150% LAST YEAR. JONATHAN: WHETHER WE GET THESE SPOTBITCOIN ETF'S AND YOU HAVE.

PROCEDURES AT THE SEC AND WEHEARD ABOUT ONE OF THESE ISSUES WHERE THE DID NOT HAVEAUTHENTICATION IN THE ACCOUNT WAS COMPROMISED. TOM:EMBARRASSING. IN THE CRYPTO MILL LLIEU, HOWDID YOU LEARN ABOUT TWO FACTOR AUTHENTICATION?I WAS HACKED IN TURKEY. JONATHAN: TOM: IS BITCOIN AND INVESTABLEASSET? >> I THINK IT IS. WE HAVE A THEORY IT ETF COMING,THE FED CUTTING INTEREST RATES.

IT WILL MAKE IT EASIER FORCOMPANIES TO BUY. I COULD GO ON AND ON. JONATHAN: FOR THE BEST PART OF 15MINUTES WE THOUGHT THE SEC HAD GIVEN UP FOR AN ETF SPOTBITCOIN AND THEN WE FOUND OUT THEY HAD BEEN COMPROMISED.IT WAS A ANY BREACH OF THEIR SYSTEMS. THE ACCOUNT DID NOTHAVE TWO FACTOR AUTHENTICATION. WE ARE HEARING THAT FROM X ANDTHE SEC. TOM: WHAT A DISTRACTION FOR WHAT IGUESS WOULD’'VE BEEN A GREAT MOMENT FOR ALTERNATIVEINVESTMENTS AND I GUESS WE TRY.

TO GET BEYOND THAT THIS MORNING.THEY'VE ALREADY PUBLISHED 2 BILLION TO GO INTO BLACKROCK.I'M GETTING A LIFT OFF FEEL FROM ERIC. JONATHAN: THERE IS THE SEC AND HOW THEYWILL ANNOUNCE DECISIONS LIKE THIS. AND THEN ACTS AS A PLATFORM FORDELIVERING NEWS AND HOW SERIOUSLY PEOPLE WILL TAKE THEPLATFORM. TOM: THE CHAIRMAN OF THE SECURITIESEXCHANGE COMMISSION IS LESS THAN ENTHUSED BIO LAB.WE WILL TALK ABOUT THE.

OPERATIVE MOMENT AT 7:48 A.M.ON THIS HISTORIC WEDNESDAY. ALL CRYPTO ALL THE TIME.SHE HAS TAUGHT ME SO MUCH BECAUSE SHE KNOWS IT'S A BUNCHOF MALARKEY. NOW IT GOES FROM MALARKEY TOAND INVESTABLE ASSET? KATIE: IF YOU REALLY WANTED CRYPTOEXPOSURE, YOU ARE RIGHT IN SAYING THIS IS A WATERSHEDMOMENT FOR CRYPTO AND ETF. THIS HAS BEEN ATTEMPTED IN SOMEFORM SINCE 2013, A LONG TIME COMING.

TOM: HOW DOES THE ACTUAL MONEYTRANSACT? DO THEY NEED MONEY TO GO WHEN OR DO THEY HAVE A POOL OF MONEYWHEN ALIX STEEL SAYS IS OFFICIAL, THE MONEY IS THERERIGHT NOW? KATIE: THE WAY A TYPICAL LUNCH WOULDWORK AS SOMEONE LIKE BLACKROCK WOULD PRECEDE THE FUN. TOM:PRECEDE? JONATHAN: THEY PUT MONEY IN BEFORE THELAUNCH TO MAKE IT LOOK A LITTLE BETTER SO THE ASSETS THAT YOUSEE ON FRIDAY MIGHT NOT BE ALL ORGANIC.WHAT WILL BE INTERESTING TO.

WATCH AS THE TRADE VOLUME. IT'S A MUCH BETTER MEASURE OFHOW MUCH INTEREST THERE IS IN THESE FUNDS. JONATHAN: WHY HAS THE SEC DRAGGED ITSFEET ON THIS DECISION? KATIE: REPEATEDLY THEY HAVE SAID THISCRYPTO INDUSTRY IS OPEN TO FRAUD, MANIPULATION.THE IRONY IS IT WAS THE TWITTER ACCOUNT HACKED. THEY ALLOWED THE FUTURE ETF'STO BE LAUNCHED TOOK THE LEGS OUT OF THEIR ARGUMENT AND THATWAS THE BASIS OF GRAYSCALE.

SUING THE SEC. THEY WANTED TOCONVERT THEIR TRUST INTO A SPOT ETF.THEY WON THAT LAWSUIT AND THAT WAS ONE OF THE IMPORTANT EVENTSTHAT PUT TODAY EMOTION. JONATHAN:ISN'T THE ASSUMPTION WE WOULD GET THE NOD AT SOME POINT INTHE FUTURE? WHAT CHANGES IF WE DO?I'VE SEEN SECURITY BITCOIN RUN OUT BUT WHAT CHANGES?ARE THERE PEOPLE WHO COULD NOT BUY IT BEFORE THAT CAN BECAUSEIT IS A SPOT ETF? KATIE: THUS THE DEBATE RIGHT NOW.IF YOU GO BACK TO THE FUTURES.

ETF LAUNCH, THAT WAS THEULTIMATE SELL THE NEWS EVENT. BITCOIN MOVED UP TO 79,000 ACOIN. AND AFTER THE LAUNCH WE HAVEBEEN ANYWHERE CLOSE TO THAT. A LOT OF CRITICS ARE SAYINGTHAT THIS WILL BE THE SAME MOMENT AND ADVOCATES SAY THISWILL TURN ON THE WELL CHANNELS. TOM:IN THE DEPTHS OF THE DEPRESSION THE GOVERNMENT DECIDED TO SET UP THE SEC SO WE COULD BUYANACONDA COPPER AND DOUGLAS AIRCRAFT.THERE WOULD BE ACCOUNTING AND.

WE WOULD KNOW WHAT'S GOING ON.IS THERE ANY IMPROVEMENT IN ACCOUNTING FOR BITCOIN?IT'S ANY CHANGE IN THE PROCESS OF HOW WE OBSERVE THEUNDERLYING ETF? KATIE: ONE OF THE THINGS IT DID CHANGEWHEN HE THINK OF THE APPLICATIONS IS THAT THERE ARESURVEILLANCE SHARING AGREEMENTS BETWEEN THE UNDERLYINGEXCHANGE, COINBASE, AND THE SEC. THEY WILL HAVE MOREINSIGHT HERE. WHAT STARTED THIS ENTHUSIASM ISBLACKROCK FILING IN JUNE FOR A SPOT ETF WHICH TOOK PEOPLE BYSURPRISE. TOM:.

LET'S SAY A LOT OF MONEY COMES IN, WE GET A LEVEL OF OVERDOINGIT. DOES THAT MEAN THE ELECTRIC GRID CHANGES BECAUSE SOMEONEHAS TO MANUFACTURE MORE OF THIS IN WHO CARES ABOUT THETHERMODYNAMICS OF BITCOIN? KATIE:I WOULD NOT GO THAT FAR ABOUT WHAT THIS MEANS FOR SUPPLY. TOM: IT DOES. KATIE:HE WANT TO GET CONCERNED ABOUT THE RECORD-KEEPING HERE. TOM:BUT DOES IT IMPROVE? DOES THE RECORD-KEEPING OF THEUNDERLYING GOING TO BE IMPROVED.

WITH THESE ETF'S? KATIE: THEORETICALLY IT WOULD BE WITHTHOSE AGREEMENTS. THE WORRY OF HEARD FROM CRITICSIS THAT WHAT IF YOU LOSE YOUR WALLET ADDRESS OR THESE BIGISSUERS LOSES THEIR DIGITAL WHILE ADDRESS.DIGITAL WALLET ADDRESS? THOSE ARE SOME OF THEBEHIND-THE-SCENES WORRIES. JONATHAN:KATIE GREIFELD OF BLOOMBERG. THERE IS SO MUCH TO DEAL WITHON THIS ISSUE. TOM: IS TOM BRADY CANNICK ENDORSINGETF? JONATHAN:.

I THINK HIS FINGERS HAVE BEENBURNED ON THAT. THERE IS A FEELING I THINK, ASNOBBERY ON WALL STREET THAT THE ADULTS ARE COMING INTO THEROOM AND ALL THE FRAUD YOU'VE SEEN OVER THE PAST FEW YEARS WITH SPF A, SAM BANKMAN-FRIED THAT THAT'S ALL GOING THEY CHANGE WITHBLACKROCK. KATIE: WHEN YOU THINK OF THEPROMINENCE OF CRYPTOCURRENCY GETTING AWAY FROM THEGOVERNMENT , NOW IT FEELS LIKE THE HOPES AND DREAMS ARE GOINGTO HAVE PHYSICALLY BACKED.

BITCOIN. JONATHAN:IT IS A REAL SHIFT, CULTURALLY FROM WHAT IT WAS. TOM:YOU KNOW HOW I FEEL ABOUT IT. I WILL SAY THIS, I'M WATCHINGWHAT GARY GENSLER DOES. HE HAS MADE IT CLEAR HOW HEFEELS. JONATHAN: WILL IT HAPPEN THIS AFTERNOON?KATIE: THE IDEA IS THAT THEY GO EFFECTIVE AFTER THE MARKETTODAY. WE COULD SEE TRAINING TOMORROW.JONATHAN: SO LOOK TO THE SEC WEBSITE.

COMING UP ON THIS PROGRAM,MICHAEL PURVES BREAKING DOWN WHAT'S HAPPENING IN THIS MARKET.S&P FUTURES TOTALLY UNCHANGED. THE WEEK BEGINS THIS AFTERNOONWITH THE NEW YORK FED PRESIDENT SPEAKING IN THE DATA TOMORROWMORNING. TOM: I WILL GO WITH THE TOM WILLIAMSSPEECH COULD HAVE SOME REAL OOMPH TO IT. WITH ALL THE BACK-AND-FORTH ANDTHE MASSIVE STANDARD DEVIATION FORECAST I HAVE THE FIX A 12.86.THIS IS A BID UNDER THE MARKET. JONATHAN:THERE HAS BEEN A BIT UNDER THE.

MARKET FOR HOW MANY MONTHS NOW?SINCE OCTOBER? MAYBE THE FIRST HALF ISVOLATILITY IN THE SECOND HALF AS A RALLY. >> THE FED POLICY IS BECOMINGMORE CLEAR. >> INFLATION IS MONITORING ANDI THINK IT'S IMPORTANT FOR THE FED TO ADJUST. >> WE HAVE TOADMIT WE PROBABLY FINISH THE FIRST WAVE OF INFLATION. >> WE THINK WE GO TO A LOWGROWTH, LOW INFLATION ENVIRONMENT.THIS IS BLOOMBERG SURVEILLANCE.

WITH TOM KEENE, JONATHAN FERROLISA ABRAMOWICZ. TOM: GOOD MORNING EVERYONE. INTO A DELUGE OF DATA, THEECONOMICS OF INFLATION. THE EARNINGS THAT HIDE THEPROFITS OF THE BIG BANKS. THE ELITE MEET AND GREET INDAVOS NEXT TUESDAY, THERE WILL BE A LOT OF DISCUSSIONS WRAPPEDAROUND IT. JONATHAN: THE U.S. ECONOMY, THE START WITH THECONFLICTING DATA. I SO MANUFACTURING NEGATIVE FORTHE PAST 12 MONTHS. GOING ALL THE WAY BACK TOOCTOBER 2022.

THEN JOBLESS CLAIMS, OR PAYROLLWITH CONFIDENCE NUMBERS. SMALL BUSINESS, CONSUMER, ALLOF THIS CONFLICTING STUFF. THAT MAKES 2024 DIFFICULT. TOM: WE HAVE A SPECTACULAR GUEST,MICHAEL PURVES REALLY FOCUSED ON NOMINAL GDP AND THE GOODTHINGS OF GOLDILOCKS. ARE WE GONNA GET GOLDILOCKSFROM JAMES DIMON? I'M GUESSING IT'S REALLY NOTALL THAT BAD. JONATHAN: IT'S BEEN GREAT FOR THE STOCKOF JP MORGAN RELATIVE TO EVERYONE ELSE.THIS TURNED AROUND AFTER LATE.

OCTOBER WITH THE PEAK IN THETWO YEAR AND. WE CAN TALK ABOUT THAT, HOWDEPENDENT ARE THESE BANK STOCKS IN THE YEAR AHEAD? TOM:THEY HAVE TO GET LOWER COST TO CONSUMERS AND YOU KNOW WHAT NOONE IS TALKING ABOUT THE YELLEN SPEECH, THE QT AND THE BANKINGDYNAMIC AROUND JP MORGAN AND BANK OF AMERICA, ALL OF THEOTHER BANKS, COMMERCIAL REAL ESTATE AND THE CHALLENGES OFLOANS. JONATHAN: WHAT COMES FIRST, RATE CUTSARE QT?.

MAYBE THAT BEGINS IN THE NEXTCOUPLE OF MONTHS. LIKING THAT YOUR CAN THE WINDDOWN WITH ONE BEFORE STARTING THE OTHER. THEY WANTED TO ANNOUNCE THATTHEY WERE WINDING DOWN QT BEFORE RISING RATES. TOM: AS WE GET THE IDEA OF A BITCOIN, 3:00 P.M. JOHN WILLIAMS BEGINS THEECONOMIC DEBATE. HIS SPEECH IS PROBABLY MOREELIMINATING THAN JANET YELLEN. JONATHAN:CHAIRMAN POPPEL SAYING MAYBE.

THIS IS THE TIME TO TALK ABOUTINTEREST RATE CUTS AND THEN WE HEARD FROM JOHN WILLIAMS WHOSAID, WERE NOT TALKING ABOUT THAT RIGHT NOW.I WONDER WHAT WE HEAR FROM HIM THIS AFTERNOON. TOM:SEEMA SHAH SAID REAL RATE STAY WHERE THEY ARE IN PUSH THATAGAINST THE SHOCK OF WHAT WE HEARD FROM J.P. MORGAN SEEING A SUBSTANTIALDECREASE IN FORECASTING. JONATHAN:YIELDS ARE LOWER BY TWO BASIS POINTS.IN THE FX MARKET THINGS OF.

LOOKS SNOOZY.THE EURO IS STRONGER 1.0944. THE DATA IS ANYTHING BUTSTRONG IN EUROPE. TOM: IT IS FAR TOO CUT AND CHISELEDTO BE ONE OF THE OLD GUARD. MICHAEL PURVES, AND I PUT HIM IN THE GROUP WITH DR. YEDENI.THEY HAVE BEEN HERE BEFORE. THANK YOU FOR JOINING US. WHAT IS YOUR ADVICE TO THE KIDSBUFFETED BY SOCIAL MEDIA AND FINANCE WHERE YOU WERE JUSTSAYING, IT'S ATTRACTIVE OUT THERE. GET ON BOARD. MICHAEL:.

WE JUST CAME OUT OF A FANTASTICRALLY, OF 24% LAST YEAR. WE ARE GOING TO HAVE SOMEINDIGESTION. ONE STATISTICS THAT'SINTERESTING IS 14% ON 24% CAME FROM NOVEMBER AND DECEMBER.WE HAVE NOT HAD A CONTRIBUTION MESSIAHS THAT.WHEN YOU ARE LOOKING AT THIS FIDGETY PRICE ACTION WHICH ISNOT TYPICAL OF EARLY OR MID JANUARY, YOU HAVE TO PUT THATIN THE CONTEXT OF NINE UNBROKEN WEEKS IN A ROW.WE HAVE A DUAL GOLDILOCKS CONDITION.A DOVISH PIVOT FROM THE FED.

WE STOPPED TALKING ABOUT RATEHIKES AFTER THE MOST VIOLENT HIKING CYCLE EVER AND WE ARENOW TALKING ABOUT HOW MANY CUTS WE GET. AT THE SAME TIME, WE HAVE MAINSTREET GOLDILOCKS. WE HAVE A CONSUMER WHO WAS INPRETTY GOOD SHAPE. WE WILL FIND OUT TOMORROWMORNING BUT WITH FOOD PRICES AND SO FORTH.IT'S THE CONCURRENCE OF THOSE GOLDILOCKS CONDITIONS. TOM:YOU DO ON NOMINAL GDP ANALYSIS,.

HOW DOES THAT IMPACT EARNINGSSEASON? MICHAEL:THAT COMES DOWN TO YOUR GDP CALL. IT'S IT TO .2 RIGHT NOW. I THINK INFLATION GOES SLOWER,BUT IS A TWISTED SMILE. CAN YOU PAINT A PICTURE OF 4.5,5% NOMINAL GDP THIS YEAR? ABSOLUTELY.THE THING YOU HAVE TO KEEP IN MIND AND THIS GETS BACK TO THEROTATION DISCUSSION, IT IS A DOWNSHIFT FROM 2023 IN THE YEARBEFORE THAT.

THEY ARE FIGHTING A TIDE THEREARE SO UNCONSTRUCTIVE ON RISK APPETITE BUT WHEN YOU LOOK ATTHE DOWNSHIFT, THEY WILL HAVE TO DO WELL AT THE MARGIN LEVELAND BE ABLE TO NAVIGATE THIS LOWER INFLATION. JONATHAN:WE'VE TALKED ABOUT THE CONCENTRATION OF THE S&P 500ACROSS THE SEVEN AND MEDA HAS BEEN PHENOMENAL. MICHAEL:THAT'S ONE OF THE THINGS WE HAVE TO STEP BACK AND THINKABOUT, THERE WAS MASSIVE PE INFLATION IN THE FIRST HALF OFTHE YEAR. BUT THOSE MAGNIFICENT SEVENGREW INTO THE EARNINGS GROWTH.

IF YOU LOOK AT THE RALLY LASTYEAR, HALF OF THAT WAS EARNINGS WITH PE EXPANSION WAS IN THECYCLICAL SECTOR. THAT RALLY WAS ABOUT 12% ON THEYEAR ALMOST ENTIRELY PE EXPANSION.THE EARNINGS DID NOT PERFORM ENCYCLICALS. YOU'RE ASKING THE MARKET TO GORAH RAH CYCLICALS RIGHT NOW AND WHERE FACING NOTE LOWERNOMINAL GROWTH PICTURE. I THINK THE MAGNIFICENT SEVENIS 20% YEAR OVER YEAR EARNINGS GROWTH.LET'S GIVE THAT A HAIRCUT.

THINK ABOUT PRICE TO GROWTHEARNINGS. JONATHAN:OTHER PEOPLE WOULD SAY IS A HIGH BAR BUT DO I WANT PEOPLEWAY OR MARKET S&P EXPOSURE. DO I WANT TO STRIP OUT THEMUSCLE OUT A BIG TECH? MICHAEL: FOLLOW EARNINGS GROWTH.WILL IT BE NOT AS GOOD THIS YEAR AS LAST YEAR? SURE.ON A PROBABILITY BASIS YOU ARE TAKING LESS ACADEMIC RISK. IF CYCLICALS WERE DIRT CHEAPTHAT'S A DIFFERENT STORY. TOM: CFA LEVEL FOUR, WHAT ISSYNTHETIC EARNINGS GROWTH?.

MICHAEL: SHARE BUYBACKS. IF YIELDS COME DOWN THEY WILLISSUE MORE DEBT? TOM: WHAT IS YOUR RESPONSE TOCLIENTS WHEN YOU TALK ABOUT THIS? YOU SOUND LIKE A FOSSIL HEWOULD NEVER BUY BITCOIN. MICHAEL:I'M A PRETTY OLD FOSSIL HE WAS NEVER BOUGHT BITCOIN. IF YOU WANTED ALL CURRENCY,BY GOLD. BUT YOU'RE FACING A SLOW WALKBACK FROM RATE CUTS. I THINK THE GOLD BREAKOUT ISOVERWEIGHTED. JONATHAN:.

THE AUTHORIZATION OF A SPOTBITCOIN ETF DOESN'T CHANGE MUCH FOR YOU? MICHAEL:NO, IT DOES NOT. AT THE END OF THE DAY, IT ISDELIVERED PLAY ON THE NASDAQ. JONATHAN: DO YOU FEEL THAT IS A BIT OF ADIFFERENCE BETWEEN WHAT THEY DO FOR THEIR CLIENTS OF WHAT THEYDO PERSONALLY. THERE HAVE BEEN PEOPLE DOUBTINGBITCOIN FOR YEARS. WILL THEY START CLOSING THE GAP?MICHAEL: SOME INSTITUTION WILL GET THEIRARMS AROUND BITCOIN.

HE LOOKS MORE LEGITIMATE HERE.A LOT OF INSTITUTIONAL INVESTORS STUMBLE WITH USE CASE.WHAT DOES IT DO FOR YOUR PORTFOLIO? TOM:BILL COHEN WAS BLISTERING OVER THE WEEKEND. MICHAEL:IF YOU HAVE TO GO TO COMMITTEE AND SAY THIS WILL BE ADIVERSIFYING ASSET, IT WAS IN A DIVERSIFYING ASSET. JONATHAN:MICHAEL PURVES, THIS WAS GREAT.

IF YOU'RE JUST JOINING US,WELCOME TO THE PROGRAM. THE S&P UNCHANGED UP POINT 03%. ADULT OR JUST A TOUCH WEAKERAGAINST THE EURO. COMING UP IT 8:30, WE GET CPITOMORROW MORNING BUT WE WILL CATCH UP WITH KATHY BOSTJANCIC AND THEN CPI INFORMATION TOMORROW. TOM:IT WILL TELL US ABOUT THE AMERICAN CONSUMER.IT STILL 70% OF THE AMERICAN ECONOMY. THERE IS A MYSTERY ABOUT WHATWE DO WITH AUTO SALES?.

WHAT IS A USED CAR INFLATIONGOING TO BE? GROCERY STORES VERSUSRESTAURANTS? TOM: I THINK IT'S THE MOOD OF THECONSUMER AFTER THE PAST THREE YEARS. >> WORK TO GO BACK AND LOOK ATWHAT WE COULD'VE DONE BETTER TO INCLUDE ON THE PUBLIC AFFAIRSSIDE AND MAKING SURE WE ARE ACKNOWLEDGING AND ASKING THOSEHARD QUESTIONS ABOUT ENSURING THAT THE PUBLIC HAS A TIMELYAND ACCURATE UNDERSTANDING OF THE SECRETARY STATUS. JONATHAN:WE DIDN'T HAVE THAT OVER THE.

LAST WEEK. ADDRESSING SECRETARIES LLOYDAUSTIN SUDDEN HOSPITALIZATION. IT WAS DUE TO COMPLICATIONSFROM SURGERY FOR PROSTATE CANCER. LET'S JUST TURN TO THE PRICEACTION, EQUITYZEN CHANGED UP .03%. THE YIELD SLOWER AT 3.986.BITCOIN AT 45,000. TOM:JOHN WILLIAMS THIS AFTERNOON MAKE IT US AFEW CHOICE HEADLINES. WATCH FOR THAT TEAM COVERAGE.JONATHAN:.

8:30 FOR PPI. TOM:SWISS FRANCS HAVE JUST NOT BROKEN THROUGH.JANE FOLEY WAS BRILLIANT YESTERDAY AFTERNOON, NO ONE ISTALKING ABOUT THIS. WAS JUST ONE INDICATOR.CRAZY STUFF LIKE HUNGARIAN MORTGAGES.IT'S JUST A GENERAL LITMUS TEST OF WHERE WE ARE GOING. YOU SLIDE THROUGH ZURICH ON AGRAND HIGH. JONATHAN: WHEN THEY RIP THE FLOOR WAYYOU SAW THIS AGGRESSIVE MOVE INTO THE SWISS FRANCS, WHEREBELOW THOSE LEVELS.

THAT IS REAL SWISS FRANCS THATTHE CENTRAL BANK WAS FIGHTING AGAINST FOR YEARS.AND NOW, HERE IT IS. TOM: YOU AND LISA ARE GOING TO DAVOS, I WOULD SUGGEST THEBROADER DEBATE IS WHETHER EUROPE WITH THE GERMANICDECLINE THAT WE SEE, YOU WONDER IF IT WILL BE DAVOS/EUROPEVERSUS THE USUAL ASIA, CHINA. JONATHAN:YOU MENTION EUROPE LET'S TALK ABOUT IT.IS THE BREAKDOWN OF THE GERMAN MODEL, YOU GET SECURITY FROMTHE UNITED STATES, ENERGY FROM.

RUSSIA. SO MUCH OF THAT STUFF IS BEENTHREATENED OR BROKEN DOWN COMPLETELY.THE UNITED STATES ROLE IN INTERNATIONAL SECURITY IS AQUESTION AGAIN. WHO MIGHT BE IN THE WHITE HOUSEAT THE END OF THE YEAR? THE LIBERAL ELITE GATHERING INDAVOS, THERE WILL BE REAL EXCITEMENT IN EUROPE ABOUT WHATCOMES OUT OF THE UNITED STATES AT THE END OF THIS YEAR. TOM: YOU WILL SEE THAT NEXT WEEK INDAVOS, RIGHT NOW THERE IS.

SOMETHING DIFFERENT IN AMERICAABOUT ONE HOSPITAL. WALTER REED HOSPITAL, AHOSPITAL OF JOY IS SADNESS. I THINK OF THE SPIRIT OF RONALDAND NANCY REAGAN. THE MESSAGE THIS WEEK HAS BEENA JUMBLE. TO GET A PERSPECTIVE ON THEBETHESDA WALTER REED OF KNOWLEDGE IS MICHAEL SHEPPARDIN WASHINGTON. WHAT ARE PEOPLE TALKING ABOUT? ALL OF THE NEWS THAT JONATHANFERRO HERE, WHAT IS THE DISTINCTIVE POINT OR STUDY THISWEDNESDAY MORNING? MICHAEL:.

PEOPLE ARE STILL TALKING ABOUTWHAT HAPPENED TO LLOYD AUSTIN AND WHY DID IT TAKE SO LONG FORTHE DEFENSE DEPARTMENT TO BE MORE FORTHCOMING ABOUT WHAT HADBEEN FOLLOWING HIM? WE ALL LEARNED THAT HE HAD BEENDIAGNOSED WITH PROSTATE CANCER UNDERGONE SURGERY TWO DAYSBEFORE CHRISTMAS. PRESIDENT JOE BIDEN ONLYLEARNED OF THAT YESTERDAY. THIS BEGAN EMERGING ON FRIDAYWHEN WE TYPICALLY SEE AGENCIES PUTTING OUT BAD NEWS IN THENEWS FROM THE PENTAGON BREEDS MORE QUESTIONS THAN ANSWERSABOUT HOW LONG HE HAD BEEN IN.

THE HOSPITAL . TOM:IS IT UNPRECEDENTED? JONATHAN: FOR THE DEFENSE DEPARTMENT,THIS IS HIGHLY UNUSUAL. LLOYD AUSTIN IS A PRIVATEPERSON . HE IS KNOWN FOR KEEPING HISPUBLIC IMAGE VERY GUARDED. AT THE SAME TIME, AND HIS ROLEAS THE TOP CIVILIAN LEAVING THE MILITARY, IT IS A DIFFERENTDUTY OF CARE TO THE PUBLIC IN CHAIN OF COMMAND IN TERMS OFBEING FORTHCOMING ABOUT THIS. THAT HAS TROUBLED WHITE HOUSEOFFICIALS AND MEMBERS OF CONGRESS.WE HAVE SEEN REPUBLICANS.

CALLING FOR HIM TO RESIGN OVERTHIS. WE DON'T THINK JOE BIDEN WOULDACCEPT HIS RESIGNATION. TOM: THIS IS DRIVING ME NUTS.HE IS GIVING US THE WASHINGTON LINE. HE HAS PROSTATE CANCER AND THEDEBATE CHANGED. I WOULD SUGGEST EROTICALLYCHANGED WITH THE ANNOUNCEMENT OF PROSTATE CANCER. JONATHAN: WHEN IT COMES TO PEERPROTOCOLS, NOT MUCH IS CHANGE. WE ARE TALKING ABOUT A DELICATETIME FOR THE UNITED STATES AND.

NATIONAL SECURITY. GIVEN THE NEWS WE HAVE HEARDTHAT WHO THE REBELS OF LOST A COMPLEX ATTACK IN THE RED SEABEGS THE QUESTION, WHO IS RUNNING THE GOVERNMENT? MICHAEL:THROUGH THE SITUATION THE WHITE HOUSE AND DEFENSE DEPARTMENTINSISTED THERE IS NO CHANGE TO U.S. READINESS BECAUSE OF LLOYD AUSTIN'S ABSENCE FROM THEDEFENSE DEPARTMENT. THEY INSIST HE'S BEEN ABLE TOCARRY OUT THE DUTIES HE HAS NEEDED TO WHILE BEING IN WALTERREED. HE HAS BEEN TAKING CALLS.

IT IS HARD FOR HIM TO TRAVELAND DO OTHER PARTS OF HIS JOB. HE HAS DELEGATED THAT TO HISNUMBER TWO, KATHLEEN HICKS. IT RAISES QUESTIONS ABOUT HEWAS IN CHARGE. TYPICALLY HE GOES THROUGH HISNATIONAL SECURITY ADVISOR WHEN DEALING WITH AUSTIN SO IT'S FORHIM NOT TO BE SPEAKING WITH AUSTIN EVERY DAY.IF YOU WERE GOING TO BE ABSENT YOU WOULD THINK THE DEFENSECHIEF WOULD ALERT THE PRESIDENT, I MEANT TO BE OUTFOR A FEW DAYS AND HERE IS WHY AND WHO WILL BE TAKING OVER INTHE WHITE HOUSE HAS INSISTED ON.

HAVING THAT NOTIFICATION FROMTHE DOD AND THE REST OF HIS CABINET. JONATHAN: LATER ON THIS EVENING, YOU CANWATCH IT RON DESANTIS AND NIKKI HALEY.WHAT ARE YOU FOCUSED ON LATER TONIGHT? MICHAEL:FOR ME, IT WILL BE A SPLIT SCREEN MOMENT.WE HAVE TO WATCH THE CANDIDATES CAREFULLY.FOR DESANTIS AND NIKKI HALEY TONIGHT IS THEIR LAST CHANCE TOTAKE EACH OTHER ON AND MAKE THE ARGUMENT TO VOTERS THAT THEYARE A BETTER ALTERNATIVE TO.

DONALD TRUMP WHO WAS SLEEPINGIN IOWA BY 30 POINTS OR MORE DEPENDING ON THE POLES.JONATHAN: MICHAEL SHEPPARD, APPRECIATETHE UPDATE. SPLIT SCREEN THIS EVENING. TOM:WERE NOT CAPABLE OF DEALING WITH THAT. JONATHAN: YOU WATCH ONE AND HAVE THE TVUP ON THE OTHER. WE HAVE SIX MORE MONTHS OF THISHABIT WE? TOM: IT'S STARTING WITH THE IOWACAUCUS AND THE NEW HAMPSHIRE PRIMARY.

I WILL SAY PERCOLATING HEREWITHIN FINANCE IS THE IMPORTANCE OF SUPER TUESDAY.I THINK IT IS STILL SUPER. JONATHAN: IT WOULD BE NICE OF SOMEONELIKE RON DESANTIS OR NIKKI HALEY MADE IT THAT FAR. JONATHAN:60 MINUTES AND 22 SECONDS AWAY. WE GO RIGHT THROUGH ALL THEBOARDS. THE NASDAQ UP BY 0.07%. LET'S GET TO THE TWO YEAR, THE10 YEAR, THE 30 YEAR. 398.48. NOT EVEN 4% THIS MORNING.

I THINK THE BIGGEST MOVE THATYOU HAVE HAD ON THE TWO YEAR IS THE ONE YOU HAVE ON THE SCREENRIGHT NOW. YESTERDAY ON THE TWO YEAR WEWERE DOWN ABOUT ONE BASIS POINT. ON MONDAY NOT EVEN AND ONFRIDAY, UNCHANGED. TOM: I WOULD REALLY WATCH THE YIELDSPACE AND I WATCHED IT BEFORE THE SEMINAR YESTERDAY. THERE WAS A 75% RECOVERY ON THEBASIS — I DO NOT KNOW HOW LONG IT LASTED.WE FURTHERED THAT YESTERDAY WITH THE VIX ZERO POINT 88.WE ARE POINT — FOCUSED ON BANK.

OF AMERICA, J.P.MORGAN BECAUSE THAT IS WHAT WE DO WITH THE BLOOMBERG TERMINAL.I AM SORRY. JANUARY 24 WHICH I BELIEVE IS AWEDNESDAY, THERE IS A SMALL COMPANY THAT HAS ANACQUAINTANCE WITH THE CLOUD. MAYBE MICROSOFT IS MOREIMPORTANT THIS TIME AROUND THAN J.P. MORGAN. JONATHAN:THE DATA IS SO IMPRESSIVE. TOM: REMEMBER OPENAI?HE REALLY HANDLED THAT PRETTY WELL. JONATHAN:TRANSFORMING THE COMPANY FROM WHAT IT WAS. IT IS JUST AMAZING.TOM:.

I AM READING HIS BIO RIGHT NOW.I REALLY SUGGEST IT, FOLKS. JONATHAN: FOREIGN EXCHANGE. TOM:LET'S GET TO IT. JONATHAN: LET'S START THIS AGAIN.NOT MUCH DATA THIS MORNING. IT PICKS UP TOMORROW MORNINGWITH CPI 24 HOURS AWAY. A TON OF FED SPEAK.HE JUST HAS TO PICK UP A LITTLE BIT.JOHN WILLIAMS, THE CURRENT FED PRESIDENT LATER THIS AFTERNOONAROUND 3:00 P.M. TOMORROW 11:30, MICHAEL MCKEE,LORETTA MESTER. MICHAEL MCKEE JOINS US NOW. TOM:LOOK AT THE SCREEN OVER HERE.

MICHAEL:THERE IS STILL UNCERTAINTY. PERHAPS THE BITCOIN EXCHANGE ATABOUT 1500 YESTERDAY. ESSENTIALLY YOU WANT TO SEE HOWMUCH CONFIDENCE ONE OF THE BIGGER HOTS HAS THAT WE ARE OUTOF THE WOODS ON INFLATION BECAUSE WE SAW MICKEY BOWMANYESTERDAY SAY ESSENTIALLY SHE THINKS THAT WE ARE AT THE PEAKAND SHE HAS BEEN URGING THE FED TO CONTINUE RAISING RATES.IF THAT IS THE CASE, THEN WE WILL SEE IF LORETTA AGREES.THAT MIGHT GIVE A LITTLE MORE CERTAINTY TO IT.ONE OF THE QUESTIONS THAT HAS.

ARISEN IS WHAT THEY SHOULD DOABOUT THE BIOLOGY. IT IS NOT THE OPEN MARKETCOMMITTEE'S DECISION. IT IS THE BOARD BECAUSE THEBOARD IS IN CHARGE OF THAT BUT THEY WILL WEIGH IN ON THAT.WE WILL SEE WHAT IT LOOKS LIKE FROM THERE.SOMEBODY SIT ME A QUESTION THE OTHER DAY WHICH I THINK IS VERYIMPORTANT AND THAT IS WHAT DO YOU THINK IS DRIVING INFLATIONNOW. DO WE THINK IT IS GOING TO KEEPCOMING DOWN? HOW CONFIDENT ARE YOU THAT ITWILL COME DOWN? TOM: RIGHT.

MICHAEL:WHAT IS THE INFLATION DYNAMIC THESE DAYS? TOM:THE LAST ON LINKEDIN SOMEONE PUT OUT HOWARD MARKS ANNUALLETTER AND THERE WAS A BLISTERING SYNDICATES ADJUSTINGTHAT WE ARE SET UP FOR A HIGHER RATE REGIME. I HEARD FROM A PROFESSOR FROMHARVARD WHAT WE WILL HEAR FROM JOHN WILLIAMS THIS AFTERNOON.IS JOHN WILLIAMS GOING TO DO A ROGUE SPEECH OR WILL HE ADDRESSTHAT WE GET BACK TO A LOWER RATE REGIME? MICHAEL:I DON'T WANT TO CALL IT A ROGUE.

SPEECH BUT IT IS AN ECONOMICOUTLOOK. I THINK HE WILL BE TALKINGSHORTER TERM. THERE IS NO QUESTION AT THEFED, EVEN WITH JOHN WILLIAMS, THAT YOU WILL HAVE A HIGHERRATE REGIME. WE ARE NOT GOING BACK TO ZERO.THE ISSUE IS WHERE DO WE GO DOWN TO?THAT BRINGS IN R-STAR ISSUE FOR JOHN WILLIAMS. I DON'T THINK HEWILL GO THERE YET BECAUSE WE ARE STILL A LONG WAY FROM RATECUTS LET ALONE GETTING DOWN TO A SO-CALLED NEUTRAL LEVEL,WHATEVER THAT IS. JONATHAN:.

WE HAVE TO ASK ANOTHERQUESTION, HOW MUCH OF THE HIKING WE HAVE SEEN OVER THELAST 18 MONTHS HAS CONTRIBUTED TO THE DISINFLATION WE HAVESEEN OVER THE LAST SEVERAL MONTHS?CAN WE PUT OUR FINGER ON THAT MICHAEL:WE CAN AND PEOPLE ARE TRYING TO DO THAT.IT IS HARD TO PARSE IT OUT. MOST ECONOMISTS ARE COMINGAROUND THAT ARGUMENT THAT IT HAS BEEN SUPPLY CHAINS THATHAVE BROUGHT DOWN INFLATION. THINGS LIKE OIL PRICES COMINGDOWN BECAUSE DEMAND HAS FALLEN.

OFF. IS IT DEMAND IN THE UNITEDSTATES CAUSED BY THE FED OR IS IT DEMAND IN CHINA BECAUSETHEIR ECONOMY IS VERY WEAK RIGHT NOW?THOSE ARE HARD THINGS TO PARSE OUT. THE FED IS GOING TO TAKECREDIT. THEY NEED THE CREDIT FOR THEIRCREDIBILITY SO LET THEM TAKE IT. IT IS LIKELY THEY WILL THINKABOUT, IT DOES NOT MATTER WHO GETS THE CREDIT AS LONG AS YOUARE HAVING SUCCESS. JONATHAN: THEY'VE GOT A LOT OF THE BLAMEAS WELL. MICHAEL: IT'S LIKE BEING THE PRESIDENTOF THE UNITED STATES.

YOU HAVE VERY LITTLE TO DO WITHTHE ECONOMY, DAY-TO-DAY MOVEMENTS, BUT YOU GET ALL THEBLAME. JONATHAN: MICHAEL MCKEE, THANK YOU.LOOK OUT FOR MICHAEL MCKEE'S INTERVIEW WITH LORETTA MESTERAT 11:30 EASTERN TOMORROW MORNING.THE NEW YORK FED AT 3:15. TOM:WE WILL TALK WITH MICHAEL MCKEE ABOUT THIS BITCOIN EFT ORDER.RIGHT NOW WE WILL FURTHER THE DISCUSSION ON THE AMERICANECONOMY WITH KATHY BOSTJANCIC OF NATIONWIDE.WHAT IS THE STATE OF THE.

CONSUMER? KATHY:HAPPY TO BE WITH YOU. THE CONSUMER HAS BEEN REALLYRESILIENT AND NOT REALLY REFLECTIVE OF THE LABOR MARKETCONTINUING TO BE QUITE STRONG. WE HAVE GROWTH THAT CONTINUESTO OUTPACE THE MONTHLY ESTIMATES AND WAGE GROWTHCONTINUES TO BE GROWING. IT IS NOT GOING TO BE THEBRILLIANT SPENDING THAT WE HAVE HAD IN THE PAST.ALL OF THE PANDEMIC RELATED SAVINGS HAS BEEN RUN DOWN.THE CONSUMER CAN CONTINUE TO RUN. TOM:THE CHARACTER OF OUR WAGE.

GROWTH HAS BEEN COMPARED TO ADECLINING INFLATION. IT IS SOMETHING THE OPTIMISTSSPEAK OF. IS IT NORMAL? IS IT A NORMAL DYNAMIC NOW ORDO YOU PUT AN ASTERISK AROUND WHAT THAT MEANS? KATHY:IT IS GETTING MORE NORMALIZED. WAGE GROWTH, IF YOU LOOK AT THE AVERAGE EARNINGS NUMBERS, THEYARE AROUND 4.1. USUALLY THEY ARE AROUND 3.5.WAGE GROWTH IS UP THERE BUT INFLATION IS NOT BACK TO DEWPOINTS — 2% EITHER. WHAT YOU ARE SEEING IS STEADYWAGE GROWTH.

IT IS NOT STELLAR BUT IT IS NOTNEGATIVE EITHER. THAT HELPS TO KEEP THE PICTUREMORE BUOYANT. WE DO THINK THERE IS SOMESTERLING UNDERNEATH THE HEADLINE AND CLIMATE NUMBERS. THE QUESTION IS DO WE SEE JUSTA SOFT PATCH IN GROWTH IN THE MIDDLE PART OF THE YEAR OR AMILD RECESSION. WE ARE STILL THINKING A MILDRECESSION AS POSSIBLE. WE CERTAINLY RECOGNIZE THAT THEDATA HAS COME IN STRONGER THAN EXPECTED. JONATHAN:HOW WOULD YOU EXPECT JOHN.

WILLIAMS TO ADDRESS SOME OFTHOSE ISSUES THIS AFTERNOON? KATHY:VERY MUCH LOOKING FORWARD TO HIS COMMENTS AND TO PUT INTOPERSPECTIVE WHAT WE ARE TALKING ABOUT. RATE CUTS BUT NOT REALLY.I DO THINK WE ARE IN AN INTERESTING TIME.IN A WAY, IT IS BETTER THAN THEY THOUGHT BUT IT IS STILLCOMPLICATED. IT IS BETTER BECAUSE INFLATIONHAS COME DOWN MUCH QUICKER THAN THEY THOUGHT.THE LABOR MARKET HAS BEEN MORE RESILIENT.

THE IDEAS NOT JUST ABOUTLOWERING INFLATION BUT CAN WE STABILIZE THE ECONOMY TO AVOIDA HARDER LANDING. I AM INTERESTED TO SEE HOW HETHREADS THAT. ONE MESSAGE HE WILL PROBABLYDELIVER IS THE BOND MARKET IS A LITTLE TOO OPTIMISTIC AND THETIMING OF RATE CUTS. TO BE HONEST WE ARE LOOKING FORMAY OR JUNE PRICING TO NOT BE THAT DIFFERENT.THE FACT THAT THE FED WILL BE CUTTING RATES THIS YEAR ANDWHILE INFLATION STARTS TO TURN AROUND, IT VERY WELL WILL.JONATHAN: ON THE SURFACE IT IS.

CONTRADICTORY TO TALK ABOUTMAINTAINING A RESTRICTIVE STANCE AND TO MAINTAIN THESESURGICAL RATE CUTS AT THE SAME TIME WITH A FOCUS ON REALYIELDS. DO YOU THINK THEY CAN ENTERTAINBOTH IDEAS SIMULTANEOUSLY AND COMMUNICATE EFFECTIVELY ANDCLEARLY? KATHY: COMMUNICATION HAS NOT BEENTHEIR BRIGHT SPOT, TO BE HONEST. THEY NEED TOCOMMUNICATE CLEARLY BUT I DO ALSO THINK PRUDENCE IS WELLTAKEN. ARE YOU REMOVING SOME OF THATRESTRICTIVENESS AND YOU STILL.

WANT TO HOLD ONTO IT BECAUSEYOU ARE NOT 100% CONFIDENT? OR DO YOU SAY, WE HAVE A HIGHDEGREE OF CONFIDENCE. WE ARE GETTING TO MICHAEL'SINTERVIEW WITH LORETTA MESTER. HOW DOES THE REAL RATE PLAYINTO THE MIX OF THINGS? RIGHT NOW THE REAL RATE ISHIGHER. TOM:NATIONWIDE IS ON YOUR SIDE AND ALL THAT.THE UNEMPLOYMENT RATE IS 2.80%. HELP ME WITH SENATOR WARRENFROM THE COMMONWEALTH OF MASSACHUSETTS.SHE WILL BE UP ON THE TABLES.

POPPING CHAMPAGNE AND CELEBRITYAN UNEMPLOYMENT RATE OF 2.80% — SHOULD WE BE UP ON THETABLES POPPING CHAMPAGNE AND CELEBRATING AN UN-UPON A RATEOF 2.80% — AN UNEMPLOYMENT RATE OF 2.80%? KATHY:THERE IS NOT AS MUCH EXUBERANCE OUT THERE.EVENTUALLY THE FED WILL BE CUTTING INTEREST RATES AT SOMEPOINT THIS YEAR. THAT IS A VERY POSITIVE MESSAGETO YOUR POINT. THE EMPLOYMENT — UNEMPLOYMENTRATE IN COLUMBUS IS VERY LOW. WE NEED TO APPLAUD THAT.JONATHAN:.

WHERE DO YOU HAVE UNEMPLOYMENTYEAR END? KATHY: WE SEE THE UNEMPLOYMENTPERSISTING A BIT HIGHER BUT NOT ABOVE 5%.YOU ARE LOOKING AT SOMETHING AROUND 4.7% OR SO. LET SOME OF THE AIR OUT OF THEECONOMY BUT DOES NOT PRESS THE MARKET. JONATHAN: THANK YOU.KATHY BOSTJANCIC OF NATIONWIDE. TIME FOR THE INFLATION RATE TOCARRY ON FOR THE ECONOMY EVEN IF IT DIPS INTO RECESSION.WHEN DO WE SEE AN UNEMPLOYMENT RATE IN THE HIGH FOURS? TOM:SOME REALLY INTERESTING.

DYNAMICS.IT IS VERY COMPLEX EVEN WITH THE SIMPLICITY THAT WE TOSSAROUND. IT IS AN ARCH ISSUE HERE, THEFULLY EMPLOYED AMERICA AND YET YOU READ ABOUT THE CHALLENGESOUT THERE. FOR EXAMPLE, THE NUMBER OFPEOPLE GETTING JOBS FULL-TIME VERSUS PART-TIME AND THEPART-TIME ISM OF PEOPLE WITH TWO OR THREE JOBS. JONATHAN:FUTURES ON THE S&P 500 ALMOST TOTALLY UNCHANGED.WE ARE DOWN BY 0.02%. 3.9924. IN THE COMMODITY MARKET, $73AND $.17 ON W TI.

EVEN WITH THOSE DIFFICULTIESWITH THE RED SEA THAT WE HAVE BEEN TALKING ABOUT ALL MORNING.TOM: THIS IS SOMETHING WE HAVE UNDERPLAYED WITH THE RED SEA.YOU HAVE 18 THINGS COMING IN A SHIP, IT'S NOT TWO THINGS ORONE THING. THIS IS A CONCERTED EFFORT.YOU JUST HAVE TO WONDER WHEN THERE WILL BE A RESPONSE.JONATHAN: THERE WAS A RESPONSE, WASN'TTHERE? WE WERE TALKING TO MIKE SHEPARDABOUT THIS 20 MINUTES AGO. ABOUT U.S.FORCES AND ALLIES SHOOTING DOWN.

13 DRONES AND MISSILES.THIS IS REAL STUFF. THE SHIPPING GIANT HAS PAUSEEDOPERATIONS FOR THE FORESEEABLE FUTURE IN THE RED SEA. TOM:YOU HAVE TO WONDER INTO THE WEEKEND WITH ALL OF THIS ANDTHE REST. THERE IS NOT ONE, THERE ARE TWO MAJOR WORRIESGOING ON THAT WE NEED TO FOCUS ON. HUGE CHALLENGES IN UKRAINE.JONATHAN: BIG TIME. A LOT TO DISCUSS.COMING UP, THE BRILLIANT DAVID RUBENSTEIN.THAT CONVERSATION UP NEXT. >> AS THE NEW GOP INHIBITORSWHICH ARE THESE DRUGS THAT.

REALLY AFFECT HOW WE FEEL ABOUTBEING FULL, BECOME FURTHER ADVANCED, I THINK IT WILL BE ANOVERALL CHANGE FOR AMERICAN HEALTHCARE.THE GLOBAL IMPACT WILL REDUCE OUR OVERALL HEALTH BURDENINCLUDING CANCER. >> THIS IS A MASSIVE STORY. THAT WAS THE PRESIDENT AND CEOOF MEMORIAL SLOAN-KETTERING. WATCH MORE OF THE INTERVIEWTONIGHT ON THE DAVID RUBENSTEIN SHOW AT 9:00 P.M. IN NEW YORK.WE ARE ONLY SCRATCHING THE SURFACE AROUND THAT STORY.WHAT THE DRUGS CAN BE USED FOR.

AND HOW THEY MIGHT TRANSFORMTHE AMERICAN ECONOMY. TOM: YOU HAVE BEEN ON TOP OF THIS.THE ANSWER IS THIS HAS BECOME A REAL STORY NOT ONLY FOR THECOMPANIES THAT ARE LEADING THE WAY INCLUDING ELI LILLY, BUT ITJUST KEEPS GROWING. MY ONLY QUESTION IS ON THERESEARCH, SOMEBODY TELL ME THERE IS NOT A DOWNSIDE AND IDO NOT BELIEVE I HAVE SEEN A DOWNSIDE YET.IT REALLY GETS MY ATTENTION. JONATHAN:WE HAVE TALKED ABOUT SIDE EFFECTS BUT THERE IS STILLRESEARCH ABOUT WHETHER IT CAN.

BE USEFUL IF IT IS JUST THIS,DIABETES, WEIGHT LOSS. IF YOU CAN DEAL WITH ADDICTIONAS WELL MORE BROADLY AWAY FROM OBESITY AND THE AMOUNT OF FOODYOU ARE CONSUMING, IMAGINE WHAT IT MEANS FOR ALCOHOLISM, YOUWONDER WHAT IT MEANS FOR GAMBLING.THERE IS A WHOLE RANGE OF ISSUES.I WANT TO KNOW WHETHER WE ARE TRULY ONLY SCRATCHING THESURFACE OR MORE BROADLY WHAT THE USE OF THESE DRUGS MIGHT BE.TOM: THE REAL ISSUE IS PORTION CONTROL.WHAT DOES IT DO IF YOU HAVE A.

DRUG LIKE THIS TO THEDISCIPLINE OF AMERICANS? I CAN SEE THAT ALL MY TRAVELSTO EACH AND EVERY COUNTRY. THERE IS SOMETHING UNIQUE ABOUTHOW AMERICANS CHOW DOWN THE FOOD.WILL WE CHOW DOWN EVEN MORE NOW THAT WE HAVE THIS WONDER DRUG?I DON'T KNOW. LET'S LEAVE THAT. LET'S MOVE ON.LET'S GET TO THE S&P 500. JONATHAN:WE ARE UNCHANGED THIS MORNING ON THE S&P.WE HAVE GONE ALMOST ABSOLUTELY NOWHERE. -0.04% ON THE S&P 500.

YIELDS ARE LOWER BY TWO BASISPOINTS ON THE 10 YEAR. THERE IS A LOT HAPPENING IN THENEXT 24. THE CPI IS COMING TOMORROWMORNING 8:30 EASTERN. PPI ON FRIDAY.TONS OF BANK EARNINGS AS WELL. JP MORGAN TO GET EARNINGSSEASON UNDERWAY. MY FOCUS IS ON APPLE.APPLE WAS THE COMPANY COMING INTO THE NEW YEAR BECAUSE OFTHE DOWNGRADES WE SAW FROM BARCLAYS. TOM:WE WILL GO THROUGH THAT. YOU WILL SEE OUR COVERAGE OFAPPLE APPEARED WE ARE SO.

ADVANTAGED BY HAVING MARKGURMAN OVER ALL OF THE DETAILS WITH HIS NEWSLETTER.JON, IT IS MORE THAN APPLE. THIS IS THE ONE TIME WHERE THATMAGNIFICENT SEVEN AND I KNOW THEY ARE ALL DIFFERENT STORIESBUT WE REALLY NEED TO HEAR THE NUANCES OF AMAZON, THE NUANCESOF MICROSOFT AND THE OTHERS. TESLA IS ITS OWN LITTLE STORYWITH ELON. THIS IS THE ONE TIME YOU DO NOTJUST WANT TO SIT DOWN. JONATHAN: PRESIDENT BIDEN'S TOP MIDDLEEASTERN FIRES MET WITH THE PRIME MINISTER AND DISCUSSEDREGIONAL TENSIONS AND EFFORTS.

TO SECURE THE RELEASE OFHOSTAGES HELD IN GAZA ACCORDING TO A U.S.SOURCE AND TWO OTHER SOURCES FAMILIAR WITH THE TRIP.IT IS INTERESTING, GREAT REPORTING FROM THE LIKES OF THETEAM. I SECRET MEETING TOOK PLACELAST MONTH BETWEEN UKRAINE, ITS GROUP OF SEVEN ALLIES WILL BE ASMALL GROUP OF COUNTRIES TO DRYLY — COUNTRIES TO RALLYSUPPORT FOR HOLDING PEACE TALKS WITH RUSSIA.YOU HAVE THESE TWO WARS HAPPENING ON THE SURFACE THATWERE OFF SINK FROM THE OUTSIDE.

LOOKING IN.LOOKING AT WHAT'S HAPPENING IN GAZA BETWEEN HAMAS AND ISRAEL.WE ARE LEARNING ABOUT THE COMPLICATIONS. TOM:WHAT IS DIFFERENT NOW IS THE DIPLOMACY INCLUDING THEVISIBILITY OF A HEADLINE SCOOP AND WHAT THE BIDENADMINISTRATION IS DOING IS IT IS MOVING AT LIGHT SPEED NOW.HOW DO YOU PROSECUTE DIPLOMACY IN 2024 VERSUS 1944 OR 1964 INVIETNAM? IT IS COMPLETELY DIFFERENT.JONATHAN: YOU HAVE POINTED OUT THEIMAGERY BEING DELIVERED TO.

PEOPLE'S HOMES.WE ARE SEEING THESE WARS IN REAL TIME.GRAPHIC, TERRIBLE, HORRIFIC. TOM:I AM FROM THE OUTSIDE LOOKING IN, MY FOCUS IS OUR DIPLOMACYWITH THE ISRAELI GOVERNMENT. I LOOK BACK AT THE COVERAGE WEHAVE DONE AND OUR CONVERSATION WITH THE FORMER GOVERNOR OF THEBANK OF ISRAEL. HE WAS NOT CHILLING BUT HE WASQUITE FORCEFUL ON HOW DOMESTIC ISRAELI POLITICS HAVE SHATTERED.JONATHAN: LET'S GO THROUGH STORIESELSEWHERE.

LAUNCHING ONE OF THE MOSTCOMPLEX ATTACKS IN THE RED SEA TODAY. U.S.FORCES AND ALLIES SHOOTING DOWN 18 DRONES AND A BARRAGE OFMISSILES AIMED FOR U.S. SHIPPING LANES.MANY COMPANIES HAVE ALREADY REROUTED VESSELS AWAY FROM THERED SEA SENDING SHIPS ON A LONGER ROUTE AROUND SOUTHERNAFRICA, JUST SPEAKING TO THE TENSION IN THAT PART OF THEWORLD. TOM: WE MENTIONED THIS LAST WEEK.2300 MILES. MY READING IS IT IS OVERWROUGHT.IT IS OVERWROUGHT WITH DANGER.

AROUND THE CAPE OF GOOD HOPE.IT IS A LONGER TRIP. JONATHAN:MUCH LONGER AND MORE EXPENSIVE POTENTIALLY.THIS IS WHAT WE HEARD FROM THE CEO, DAVE CALHOUN SPEAKING TOTHE PUBLIC YESTERDAY AS CONCERNS GROW OVER THE SAFETYOF THE 737 MAX JET. >> ALL I CAN THINK ABOUT, I DIDNOT KNOW WHAT HAPPENED TO WHOEVER WAS SUPPOSED TO BE INTHE SEAT IN THE WHOLE OF THE AIRPLANE.I HAVE KIDS, GRANDKIDS AND SO DO YOU. THIS STUFF MATTERS.JONATHAN:.

REGULATORS GROUNDING THE PLANESAND ORDERING INSPECTIONS AFTER A DOOR PLUG EJECTED FROM ANALASKA AIRLINES FLIGHT ON FRIDAY.THEY FOUND ADDITIONAL LOOSE BOLTS DURING AN INSPECTION.THERE IS NO CLEAR TIMETABLE FOR THE JETS TO BE BACK IN SERVICE.THIS MORNING MAYBE WE WILL BE BACK IN THE AIR BY NEXT WEEK.WE CANNOT MOVE AWAY FROM THIS. DAVE CALHOUN ALLUDED TO IT.THANK GOODNESS THERE WAS NO ONE IN THEIR SEAT RIGHT NEXT TO THEHOLE IN THAT PLANE. TOM: YES BUT BEYOND THAT, WILL THEREBE A NEXT TIME?.

THE NEWS IS NOT ENCOURAGING.TO ME THE SINGLE TIP POINT WAS WHEN UNITED SAID WE'VE GOTPROBLEMS AS WELL. THAT IS WHEN IT SHIFTED FROM ISTHIS ONE ISOLATED PLANE OR NOT AND NOT REIGNED SUPREME WITHINOUR UNCERTAINTY. JONATHAN: WHAT DOES IT MEAN FOR THEBUSINESS? YOU HEARD WHAT JEFFREY SAID.YOU HAD MICHAEL COMPLAINING ABOUT THE DELAYS TO DELIVERIES.THERE IS A REAL CHANCE GIVEN THAT WE DO NOT KNOW WHAT WILLHAPPEN HERE THAT WE COULD SEE FURTHER DELAYS TO THOSEDELIVERIES.

THE RESPONSE FROM ANALYSTS IS THAT OPAL TOMETI YOU WILL SEECANCELLATIONS — ULTIMATELY YOU WILL SEE CANCELLATIONS OF ALLOF THIS. THEY HAVE BEEN RAMPING UPPRODUCTION BECAUSE THE OIL BLOCK IS COMPACT. TOM:THE COMMON THING FROM BROOKE SUTHERLAND AT JEFFERIES ISSIMPLE. THIS IS ABOUT COVID AND DIMINISHED LABOR FORCE QUALITY.FRANKLY YOU ARE HEARING THAT A LOT FROM OTHER INDUSTRIES ASWELL. I LOOK AT TEAM SURVEILLANCE ANDTHERE IS NO QUESTION WE HAVE.

DIMINISHED. JONATHAN:LET'S FINISH THERE WITH BLACKROCK KILLING 600 JOBS, 3%OF J STAFF CITING RAPID CHANGES. “WE SEE OUR INDUSTRY CHANGINGFASTER THAN AT ANY TIME SINCE THE FOUNDING OF BLACKROCK.”EXECUTIVES SAYING ETF'S ARE NOT BECOMING THE PRACTICE FORMANAGEMENT STRATEGIES. THEY ARE STILL PLANNING TO HAVEA LARGER STAFF BY THE END OF THE YEAR DESPITE THE CUTS.WE SAID IT EARLIER ON IN THE PROGRAM.WE ARE LOOKING FOR FINANCIAL SERVICES AND THE POTENTIAL FORCUTS TO COME THROUGH.

THERE IS ONE SET OF CUTS, ASSETMANAGEMENT SPECIFICALLY. WILL WE HEAR MORE ABOUT THAT ASWE CLOSE OUT THE WEEK? TOM: THE ANSWER IS THAT THEPERCENTAGE POINT IS AN OPPORTUNITY, 2%, 3%, 4% CUTSLIKE THIS BLACK ROCK ONE IS AN OPPORTUNITY TO REHIRE WHERE YOUNEED PEOPLE IN PLACES LIKE ETF'S AND BITCOIN. WHEN YOU GET TO 4% CUT,TANGIBLE , AND WITH BLACK ROCK IS THE CUTS NOW AND CUTSEARLIER IN THE YEAR THAT ADD UP TO A LARGE NUMBER. JONATHAN:.

STILL TO COME ON BLOOMBERG TVAND RADIO, 1:00 P.M. EASTERN TIME, CATHIE WOOD.I IMAGINE THERE WILL BE A QUESTION OR TWO OR THREE ORFOUR. TOM: WE SPOKE TO HER IN LONDON.WE REALLY HANDED IT TO HER AND SHE WAS VERY GOOD ABOUTJUSTIFYING HER TRACK RECORD. JONATHAN:WILL YOU BE GLUED TO THE BLOOMBERG TERMINAL LATER THISAFTERNOON? TOM: MY PEOPLE HAVE ME ON SOMEORDERS. JONATHAN: IS THAT INTERRUPTING THEM NOW?TOM:.

DO I PUT IT IN A 201 K OR DO IGO TAXABLE? JONATHAN: IT SERVES YOU WELL.FROM NEW YORK CITY THIS

Sharing is caring!