Live on Bloomberg TV

00:00> > FROM THE FINANCIAL CENTERS OF THE WORLD, THIS IS BLOOMBERG MARKETS WITH ALIX STEEL AND GUY JOHNSON. ALIX: IT IS 30 MINUTES INTO THE U.S. TRADING DAY, FEBRUARY 3. HERE AT THE TOP STORIES ARE FOLLOWING FOR YOU NOW. CHECK EUPHORIA ITS A WHILE. AAA'S, ALPHABET, AMAZON AND APPLE. THE EARNINGS AND OUTLOOK HAD AN EPIC START OF THE YEAR. BANK OF AMERICA AWARDS OF BRUTAL DECLINES. WE SPEAK TO JONATHON GOLUB , CHIEF EQUITY ANALYST AT CREDIT SUISSE SECURITIES I'M ALIX STEEL WITH MYCO HAS TOM MACKENZIE. WELCOME TO BLOOMBERG MARKETS, I DON'T THINK I'VE HEARD THIS MANY STRATEGIST SAY WOW IN RESPONSE TO ECONOMIC DATA. TOM: THERE WAS A COLLECTIVE INTAKE OF BREATH WHEN THIS CAME IN. 517,000. YOU HAVE TO ASK YOURSELF, WHAT MORE DOES THE FED NEED TO DO TO GET SOFTNESS IN THE U.S. LABOR MARKET? LEVELS OF UNEMPLOYMENT ARE BACK DOWN LEVELS, 1950 LEVELS. IT'S REMARKABLE. ALIX: WE COULD POINT OUT THE WAGE GROWTH, IT STILL 24% BUT IS SLOWING. THE BOND MARKET, YIELDS ARE UP BY 16 BASIS POINTS ON THE TWO-YEAR. IS PART OF THAT THE SERVICES WE ARE SEEING? TOM: THAT'S COMING THROUGH HERE. RISING 55 .2 VERSUS 49.2. THE ESTIMATES HAD BEEN FOR 50.5. ISM SERVICES COMING IN AT 55.2. AFTER THE SURPRISE CONTRACTION IN THE MONTH OF DECEMBER. JAY POWELL WANTS TO SEE THIS PERSISTED TREND ALONG SERVICES SECTOR COME OFF. IT SUGGESTS THAT THERE IS STILL WORK TO GO THERE. VERY STRONG AND THE SERVICES PART OF THE ECONOMY. CONTRACTING IN DECEMBER BUT BOUNCING BACK IN JANUARY. 55.2. THE SPRING AND MICHAEL MCKEE FOR A REACTION TO THIS. DOES THIS MAKE JAY POWELL'S JOBS MORE DIFFICULT? MIKE: IT WILL DEPEND ON THE ISM SERVICES NUMBER, THAT'S A WILD NUMBER. NEW ORDERS GO UP TO 60.4 FROM 45.2. THE OTHER NUMBERS COME IN REALLY STRONG AS WELL. EXCEPT FOR PRICES, THEY CONTINUE TO FALL. 60 78 FROM 60 81. IT DOESN'T MAKE JAY POWELL'S JOB HARD BUT IT MAKES IS COMMUNICATION IN THE SENSE THAT EVERYONE WILL TALK START LANDING IN THE FED, MAYBE NOT. WE SHOULD POINT OUT THAT A THREE MONTH ROLLING AVERAGE OF THE ANNUAL AVERAGE EARNINGS OF THE YEAR-BY-YEAR IS A LITTLE BIT STRONGER WAGE GROWTH THAN WE HAD SEEN. ALIX: THAT SERVICES NUMBER, THE BIGGEST ADVANCES 2020. NEW ORDERS REALLY COMING IN. LET'S MAKE THIS PART OF OUR QUESTION OF THE DAY, TOO HOT TO HANDLE? IS THIS JOB MARKET TOO HOT TO HANDLE FOR THE FED? THEY HAVE TO GO EVEN HARDER TO GET THE JOB MARKET DOWN. I'M SURPRISED THE BOND MARKET WASN'T MORE REACTIVE. YOUR THOUGHTS ON THE BOND MOVE? IRA: THERE WERE SOME SEASONAL FACTORS THAT MUCKED UP MORE THAN THE HEAD BY SUGGEST. THE SELLOFF IN THE 10-YEAR GILTS MADE SENSE. OF THE SERVICES NUMBERS ARE AMAZING AND I HAVE NOT GONE THROUGH ALL OF THE DETAIL YET, BUT THINGS LIKE BUSINESS ACTIVITY TEND TO BE UP AND EXPORT ORDERS ARE QUITE -- UP QUITE A BIT. PRETTY INTERESTING DAY TODAY AROUND AND SHOWING THE STRENGTH OF THE U.S. ECONOMY. FOR 10-YEAR GILTS, WE TEST THE UPPER END OF THE RANGE, THREE 75, 390 FOR 10 YEAR YIELDS IN THE NEXT COUPLE OF WEEKS. TOM: ARE WE TALKING ABOUT A TERMINAL RATE WELL ABOVE 5% AT THIS POINT? IRA: I FEEL LIKE THE FEDERAL RESERVE WILL BE HAPPY TO HIKE AT LEAST 1, 2 MORE TIMES AND THEN PAUSE AND WAIT AND SEE. IMPORTANTLY, FOR RISK ASSET MARKETS, THE STOCK MARKET AND RISK ASSETS LIKE CORPORATE BONDS, RIGHT NOW I THINK THEY ARE SO HIGH BECAUSE THE MARKET EXPECTATION THAT THE FED WILL CUT THIS YEAR ENDED 2024. IF WE PRICE UP THOSE CUTS, FINANCIAL CONDITIONS TIGHTEN A LOT AND YOU WIND UP SEEING MORE VOLATILITY AND RISK ASSETS AND THAT IS AN ENVIRONMENT WHERE LONG-TERM BOND YIELDS DO A WHOLE LOT OF NOTHING. BOND YIELDS WILL MOVE AFTER THIS MORNING'S NUMBER. ALIX: 5% TERMINAL RATE, IS NOT ENOUGH TO DO IT? MIKE: IT DEPENDS ON WHAT YOU ARE TRYING TO ATTACK. IF YOU THINK VERY LOW UNEMPLOYMENT IS GOING TO CREATE INFLATION, WHICH THE OLD PHILIPS MODEL WOULD TELL YOU YOU WOULD HAVE TO GO FOR 5% IF WE KEEP GETTING THESE KINDS OF NUMBERS. IF YOU'RE LOOKING AT JUST THE INFLATION SIDE, WE HAVE SEEN INFLATION STARTS A SLOW AND PUTTING A LITTLE MORE WEIGHT ON THE IDEA THAT IT WAS THE SUPPLY SIDE THAT PUSH THINGS UP. WE WILL HAVE TO GET MORE DATA. THE GOOD THING FOR THE FED IS THAT THEY HAVE TWO MORE CPR REPORTS BEFORE WE GET TO THE NEXT FED MEETING. THEY WILL HAVE MORE DATA ON INFLATION THAT WILL GIVE THEM A BETTER PICTURE. ALIX: IT LOOKS IF YOU LOOK AT THE FUNCTION, WE HAVE PRICED OUT AND BECAUSE FOR THIS YEAR? MIKE: IT'S MOVED TO DECEMBER NOW. IT WAS NOT LONG AGO THAT THEY WERE ACTUALLY PRICING IN RATE BECAUSE IN MARCH. AND NOW, WE HAVE MOVED THAT WAY BACK. TOM: INVESTORS HAVE TO WAIT WITHOUT LANGUAGE AND THE FAILURE OF JAY POWELL, THAT'S A STRONG TERM, TO PUSH A QUESTION BACK ON FINANCIAL CONDITIONS. IS THERE ANY ASSESSMENT OF THE LANGUAGE WE HEARD FROM JAY POWELL? DO WE EXPECT OFFICIALS TO REFRAME THEIR COMMUNICATION ON THIS? IRA: I THINK THEY WILL AND THEY HAVE THE OPPORTUNITY. WE STILL HAVE ABOUT FIVE WEEKS FOR THEM TO CLARIFY WHERE THEY ARE GOING TO GO. WHEN WE SEE THE CPI DATA IN THE MIDDLE OF THE MONTH, THAT WILL BE THE NEXT KEY NUMBER THAT THE RACE MARKET IN PARTICULAR -- RATES MARKET WILL FOCUS ON A PARTICULAR. JAY POWELL WAS MORE DOVISH, HE DID MAKE HAWKISH COMMENTS LIKE I DON'T THINK WE'LL BE CUTTING THIS YEAR. THE MARKET HAS PRICE OUT, BUT NOT COMPLETELY. MORE IMPORTANTLY, HE DID MAKE SOME DOVISH COMMENTS THAT LOOKS AT THE OPENING REMARKS OF THE PRESS CONFERENCE, SURPRISING TO ME LESS HAWKISH STATEMENTS ARE MORE DOVISH STATEMENTS IN HIS OPENING REMARKS. IT'S A LITTLE BIT SURPRISING GIVEN THE STRENGTH OF THE ECONOMY. IF HE HAD TO DO IT AGAIN, IF HE HAD HAD ALL OF THESE NUMBERS BEFOREHAND HE MIGHT'VE SAID SOMETHING DIFFERENT AND BEEN MORE HAWKISH. MIKE: I HAVE A QUESTION FOR YOU, I'M CONFUSED. THE FED CHAIRMAN CAME OUT AND SAID WE WILL RAISE RATES AGAIN AND WE WILL HOLD THEM THERE IN THE MARKET HEARD THE PARTS ABOUT INFLATION COMING DOWN AND I AM WONDERING WHY THERE IS NO BELIEF IN THAT? THE FED IS MAKING IT CLEAR THAT IS DETERMINED TO BRING INFLATION DOWN BUT PEOPLE DON'T WANT TO HEAR THAT. MIKE: WHEN WE WIND UP HAVING SLOWER RETAIL SALES AND REAL GROWTH GOING DOWN, THE FEDERAL RESERVE WILL CUT INTEREST RATES. THE MARKET IS THINKING THAT THE FED PUT US RELATIVELY CLOSE TO THE MONEY DOESN'T LEAD TO ANY JOB LOSSES. TAKING THE MARKET PSYCHOLOGY AND CHANGING IT WILL TAKE A LONG. OF TIME. I THINK WE ARE JUST NOT THERE YET. I THINK THAT THE MARKET IS WRONG AND IT HAS TO WAKE UP TO THE FACT THAT THE FED PUT IS STILL THERE BUT WAY OUT OF THE MONEY. ALIX: THE MARKET IS LISTENING TO THE DATA. THANKS A LOT, THANK YOU MIKE AND I READ, WE REALLY APPRECIATE YOU GUYS. MORE ON THE JOB'S NUMBER AND THE MARKET REACTION. JONATHON GOLUB CREDIT SUISSE SECURITIES STRATEGIST. AND WE JUST HEARD FROM MARTY WALSH. > > I LOOKED UP MY ECONOMISTS AND SAID YOU WERE WAY OFF TODAY. IT WAS A GREAT REPORT. WHEN YOU LOOK AT AREAS THAT I THINK ARE REALLY IMPORTANT, BUSINESS GROWTH, HEALTH CARE GROWTH, STRONG, STEADY GROWTH IN CONSTRUCTION. THOSE AREAS YOU WOULD KNOW BETTER THAN I WOULD AS FAR AS > > THIS REPORT IS A REMINDER THAT FOR THE HOT, TIGHT LABOR MARKET IT WILL STILL BE AN ISSUE FOR THE INFLATION ELEMENT. THEY REALLY CHALLENGE THE ABILITY OF THE FED TO DELIVER THAT PIVOT THAT THE BOND MARKET IS PRICING AND FOR IS PRICING AND FOR THE SECOND PART OF THE YEAR. ALIX: THAT WAS JEFF ROSENBERG, THE TEXAS OF THE QUESTION OF THE DAY TOO HOT TO HANDLE? IT FEELS REALLY HOT TO HANDLE. JONATHAN GOLUB. CREDIT SUISSE JOINS US NOW. IS IT TOO HOT TO HANDLE? WHAT YOU THINK? JONATHAN: I THINK THOSE COMMENTS WERE VERY MUCH ON THE MARK THAT INVESTORS RIGHT NOW ARE EXPECTING OR WERE EXPECTING FOR TODAY'S REPORTS THAT THE FED WILL HAVE THEIR LAST MOVE IN MARCH, HAVE AN EXTENDED PAUSE AND IN THE FOURTH QUARTER THEY WOULD START TO TAKE INTEREST RATES BACK DOWN BECAUSE INFLATION WOULD BE UNDER CONTROL AND WITH AN ISM AS STRONG AS WE SAW TODAY ON SERVICES AND WITH THIS JOB NUMBER WHICH WAS ON FIRE AND THURSDAYS NUMBER ON REALLY LOW JOBLESS CLAIMS, IT APPEARS AS IF THIS IS RUNNING AWAY FROM THE FED AND THE MODEST PULLBACK WE HAD TODAY IS PROBABLY NOT ENOUGH GIVEN THIS NEWS. TOM: IS IT THOUGH OR DO WE HAVE TO THROW OUT THE OLD ECONOMIC MODELS AND EXCEPT THAT MAYBE THIS TIME YOU WILL HAVE A TYPE LABOR MARKET BUT WE JUST COMING OFF? IS THAT UNBELIEVABLE THAT WE COULD ACCEPT THAT THAT IS WHAT WE ARE LOOKING AT? JONATHON: THERE ARE LAWS OF GRAVITY, IS IT POSSIBLE THAT IF YOU DROP AN APPLE IT GOES UP NOT DOWN. IT IS JUST NOT THE WAY THINGS WORK. THE REPORT SAID THERE ARE MORE COMPANIES LOOKING FOR LABOR. THE WEEKLY CLAIMS REPORT SAID COMPANIES ARE UNWILLING TO LET GO OF WORKERS EVEN IF THEY ARE NOT HAPPY WITH THEM BECAUSE THEY KNOW THEY CANNOT REPLACE THEM. TODAY YOU SEE A HUGE NUMBER OF ADDITIONAL HIRES AND INTERESTINGLY, MORE PEOPLE ARE ENTERING THE LABOR MARKET, THE PARTICIPATION RATE WENT UP. BECAUSE WAGES ARE GOING UP AND PEOPLE GET A JOB BECAUSE THEY CAN MAKE MORE MONEY. IS IT POSSIBLE TO HAVE A RED-HOT JOB MARKET AND LOWER INFLATION, IT SEEMS IMPROBABLE. ALIX: WOULD YOU BE SELLING ANY RALLIES AND DOES NOT APPLY TO TAG? HOW DO YOU NOT TEMPTED TO CHASE I? JONATHON: OUR CALL IF YOU LOOK AT OUR MARKET TARGET IN OCTOBER. WE BASICALLY SAID THAT WE ARE GOING TO HAVE A REALLY STRONG RALLY IN THE FOURTH QUARTER AND IT TO THE BEGINNING OF THE YEAR. THE FIRST HALF OF 2023 WAS GOING TO BE STRONGER. WHY? BECAUSE INFLATION, CPI, PPI ARE FALLING RAPIDLY AND CONSUMER CONFIDENCE HAS BEEN RISING FOR SIX MONTHS. THE FED IS SIGNALING THAT THEY ARE GOING TO'S IN MARCH. ALL OF THIS IS A HUGE POSITIVE STORY TO DRAW CAPITAL INTO THE MARKET AND IT DID THAT ALL IN THE FOURTH QUARTER AND IN THE LAST FOUR WEEKS OR SO. IT'S NOT ONLY POURED CAPITAL IN BUT MUCH MORE SPECULATIVE IN NATURE, BITCOIN GOING UP AND SPECULATIVE COMPANIES WITH NO EARNINGS DOING WELL. OUR TAKE WAS THAT ULTIMATELY, IF THE LABOR MARKET STATE THIS HOT, THE FED WILL HAVE NO CHOICE BUT TO DISAPPOINT THE MARKET LATER IN THE YEAR. WE ARE PRETTY MUCH ON THAT PLAYBOOK RIGHT NOW. IT IS JANUARY A BIT STRONGER THAN I ANTICIPATED? MAYBE A TAD. BUT THE OVERALL OUTLOOK IS VERY MUCH IN LINE. STRONGER FIRST HALF OF THE YEAR, WEAKER BACK HALF OF THE FED DISAPPOINTS. TOM: IF YOU WANT EXPOSURE TO U.S. EQUITIES WHERE'S YOUR TILT? JONATHON: THE OTHER THING THAT'S IMPORTANT IS THAT WE ARE NOT GOING TO HAVE A RECESSION OR AT LEAST NOT IN THE NEAR TERM. IF THAT IS THE CASE, YOU DON'T NEED TO BE IN DEFENSIVE STOCKS SUCH AS STAPLES, UTILITIES AND THE LIKE. JACK IS REALLY DOING QUITE TERRIBLY ON FUNDAMENTALS. TECH COMPANIES ARE RIPPING ON THEIR STOCK PRICES, THEY ARE HAVING AN AWFUL EARNINGS SEASON. THAT IS TRUE IN TERM OF GROWTH RATES, MARGIN CONTRACTIONS, MISSING ESTIMATES AND SO, I WOULD LOVE TO BUY TECH BUT THE FUNDAMENTALS ARE TELLING ME TO STAY AWAY. ALIX: ON THAT POINT, APPLE IS A 3%. THERE IS A FLY CHAIN COMMENTARY IN THEIR ECONOMICS WERE NOT GOOD. NOW IT IS UP THREE, HOW DOES THAT MAKE SENSE? JONATHON: IF YOU LOOK AT OTHER TIMES THAT LOOK JUST LIKE THIS HISTORICALLY, IT IS WHEN YOU ARE LEAVING A RECESSION. YOU HAD A RECESSION OR A MAJOR CRISIS, 911, THE FINANCIAL CRISIS AND YOU ARE NOW ON THE OTHER SIDE OF THE BREAK AND YOU GET THIS BIG V-SHAPED BALANCE AND LIQUIDITY'S FLOODING THE MARKET AND YOU HAVE LOTS OF RUNWAY FOR ECONOMIC SUCCESS. THE PROBLEM IS, WE GET THIS V-SHAPED BALANCE BUT THE EARNINGS ARE DECELERATING, THE ECONOMY IS PUMPED, THE EXPECTATION FOR GDPR FOR BASICALLY ZERO OR ONLY 50 BASIS POINTS FOR ALL OF 2023. IF YOU USE THE OTHER. AS WE'VE USE THIS AS A GUIDE, IT DOESN'T LINE UP WITH WHAT WE ARE SEEING NOW. I THINK PEOPLE WHO CHASE US ARE GOING TO GET HURT. TOM: PEOPLE ARE FACED WITH PAIN, 70% RALLY IN TERMS OF THE NASDAQ AND APPLE IS ONE EXAMPLE, OR AT LEAST AMASON AND ALPHABET, INVESTORS ARE DIGESTING THOSE WERE SOULS. WHEN YOU EXPECT THE SQUEEZE ON EASE PS, WHEN DO YOU EXPECT TO SEE MORE RESILIENCE? JONATHON: LET'S FOCUS ON TWO ISSUES, CONSUMER PRICES ARE CPI IS FALLING MORE THAN RAGES -- WAGES ARE FALLING. COMPANIES ARE GETTING STUCK PAYING HIGHER WAGES BUT NOT BEING ABLE TO PASS THAT ON. THERE IS A MARGIN SQUEEZE PLAYING OUT IN EVERY SECTOR OF THE ECONOMY. HOWEVER, THERE IS SOMETHING MUCH LARGER GOING ON IN THE TECH SPACE WHERE THEY OVER HIRED STAFF WITH THE EXPECTATIONS ON WHAT WOULD HAPPEN ON THE TRAJECTORY DURING THE PANDEMIC. IT'S CAUSING IT DISAPPOINTMENT FOR INVESTORS AND COMPANIES THEMSELVES. I THINK YOU ARE GOING TO SEE MARGIN WEAKNESS THROUGHOUT THE COURSE OF THE YEAR. THE CONSENSUS VIEW IS THAT WHEN YOU GET INTO THE THIRD AND FOURTH QUARTERS WE START TO EXIT THIS TYPE OF ENVIRONMENT. IT'S REALLY HARD TO BE SO SPECIFIC. OUR EXPECTATION IS $215 OF EARNINGS THIS YEAR. THE CAN CONSENSUS IS FALLING LIKE A STONE. ALIX: JONATHAN GOLUB FROM CREDIT SUISSE, IT IS 20 PAST THE HOUR ON THE WEST COAST. LET'S GET THE TOP TECH STORIES FROM THE BAY AND BEYOND. JOINING US NOW, ED LUDLOW. LET'S START WHERE WE LEFT OFF. ED: AS JONATHAN PUT IT, WHEN YOU LOOK AT THE FUNDAMENTALS ARE NOT DOING WELL IN THE STOCK DOES NOT REFLECT THAT IN IS TRADING. WHAT WE LEARNED ON THURSDAY NIGHT IS THAT AMAZON, ALPHABET AND APPLE ARE NOT IMMUNE TO MACROECONOMIC HEADWINDS. THE APPLE CORE IS FASCINATING BECAUSE TED COOK WAS BLUNT THAT THEY WOULD'VE BEEN BETTER FOR SUPPLY STRENGTH RESTRAINTS AND LACK OF DEMAND IN CHINA. HAD THERE NOT BEEN SUPPLY CHAIN CONSTRAINTS IN THE LAST THREE MONTHS OF 2022, THEY WOULD HAVE SEEN GROWTH IN THE IPHONE SEGMENT. THEY MISSED ESTIMATES BY 5%. THAT'S AN ASTONISHING THING TO SAY. AS APPLE HAS NOT DONE, THEY HAVING GIVEN ANY FORWARD-LOOKING GUIDED SO WE DON'T HAVE ANY LENS ON HOW THAT IMPROVES. TOM: THE CHINA FACTOR WILL BE FASCINATING. JUST ANECDOTALLY, THEY'RE READY TO GO OUT AND SPEND. WE WILL SEE THE RIPPLE ACROSS FOR APPLE WILL BE. I'M INTERESTED ON YOUR VIEWS AROUND THE CLOUD. AMASON COMING OUT, AWS IS SO IMPORTANT. WHAT IS HAPPENING IN CLOUD? ED: AWS WAS A SURPRISE. THE COMMENTARY WAS SPECIFIC, AC GROWTH DECELERATING IN CLOUD ON AN ONGOING BASIS OVER SEVERAL QUARTERS. WE HAVE GONE FROM AWS TOPLINE LINE GROWTH OF 40% AND THAT HIS DROPPED TO 20%. IT IS STILL SIGNIFICANT GROWTH. AWS AND AMAZON HAS ACCOUNTED FOR THE MAJORITY OF OPERATING INCOME BECAUSE THE E-COMMERCE BUSINESS IS NOT AS PROFITABLE. NOW AWS IS NOT CARRYING THE REST OF THE BUSINESS. IN THE FOURTH QUARTER, AMAZON DID WELL, SALES GREW 9%, PAYMENT ABOVE EXPECTATION, SUSTAINED DEMAND. IT WAS THE WEAKNESS OF THE OUTLOOK THAT SPOOKED INVESTORS. A THE COMMENTARY IS ABOUT A PULLBACK FROM CORPORATE SPENDING FOR THE TRANSITION IN THE CLOUD. ALIX: WHERE DO YOU THINK THERE BIGGEST PROBLEM WAS FOR ALPHABET? IT SEEMED LIKE MEDA WOULD HELP REVIEW THAT IN TERMS OF THE AD MARKET BUT PEOPLE WERE STILL SURPRISED, WHY? ED: THE UNDERLYING RESULTS REFLECT MACROECONOMIC HEADWINDS IN THE ADVERTISING MARKET. WEAKNESS IN SURGE, WEAKNESS IN YOU TWO. I WAS TOLD ON THE PHONE, SHE RECOGNIZED RESILIENCE AND SEARCH THAT WAS SOMETHING SIGNIFICANT TO SAY WHEN THE NUMBERS CLEARLY DON'T REFLECT THAT. THERE IS ALSO THE FINANCIAL IMPACT OF THE LAYOFFS. THEY'RE GOING TO CHARGE $1.9 BILLION AND SLOW HIRING AT THE SAME TIME. THOSE IDEAS SEEM IN TO ME. THE POINT WITH ALPHABET IS THAT IT IS TIGHTENING ITS BELT AND REFOCUSING ITS ALL THIS YEAR. LOOKING FORWARD, AND THE EARNINGS STATEMENT THEY SAID THERE WOULD BITE BE -- THERE MIGHT BE ADDITIONAL COST. THE MAJORITY OF THE LAYOFFS ARE HAPPENING IN THE U.S. AND THEY HAVE NOT GOTTEN TO INTERNATIONAL MARKETS YET. THERE MIGHT BE BECAUSE THAT THEY HAVE NOT FORESEEN. AND OF COURSE THERE IS A I, A LOT OF PRESSURE TO LIFT BACK THE CURTAIN AND THEY HAVE BEEN TALKING UP AI FOR YEARS BUT NOTHING COMMERCIALIZED TO SHOW FOR IT SO ANALYSTS ARE REALLY INTERESTED IN THAT. TOM: ON THE JOBS QUESTION, WHERE ARE WE IN TERMS OF MEGA CAP TECH AND CUTTING JOBS ARE THEY DEAD AT THIS POINT? ED: WHEN YOU THINK ABOUT U.S. JOBS DATA, THERE ARE VARIOUS REASONS THAT THE LAYOFFS DON'T SHOW UP. THERE ARE 100 55 MILLION JOBS IN THIS COUNTRY. TECH LAYOFFS ARE A TINY PROPORTION AND EVIDENCE THOSE LAID OFF OR FINDING NEW JOBS QUITE QUICKLY. THAT IS THE QUESTION ON WHAT ACTION THE COMPANIES TAKE THEMSELVES. ARE THESE CUTS DEEP ENOUGH? IF YOU LOOK AT THE HIRING GROWTH OVER THE PANDEMIC ERA, THESE CUTS DO NOT UNWIND THE GROWTH THAT THESE COMPANIES SAW BETWEEN 2020 IN PRESENT DAY. THEY BECAME INCREDIBLY BLOATING. THESE ARE TRIPS BUT THEY DO NOT REVERSE THE BOOM AND HEADCOUNT THAT CAME WITH THE PANDEMIC AND THE DEMAND ASSOCIATED WITH CONSUMERS. THAT IS WHAT I FIND INTERESTING. TOM: OF THE LOW, THANK YOU VERY MUCH INDEED. COMING UP, WE WILL BE GETTING MORE ON THAT JOB SURPRISED, 17,000 ON PAYROLL. WE WILL GET THE TAKE AWAY FROM DANIEL YANISSE AND KATHY ALIX: WE ARE ABOUT AN HOUR INTO THE U.S. TRADING SESSION. STOCKS ARE ONLY DOWN .3%. ABIGAIL: AT THIS POINT WE HAVE STOCKS WHILE OFF THE LOWS WE HAD EARLIER. WE HAVE THE S & P DOWN 1%, SAME FOR NASDAQ 100. OFF OF THOSE FLOWS, THERE COULD BE SOME KIND OF REVERSAL DESPITE THE FACT THAT WE HAVE YIELD SLIGHTLY HIGHER. THE DOLLAR INDEX IS UP .8%. ONE REASON FOR THIS TURNAROUND IS DUE TO TWO BIG NAMES. WE LOOK AT THE SHARES OF TESLA AND APPLE. WE WILL SEE DECENT GAINS. TESLA IS UP 4.26%. USING TAX LET -- USING TESLA, -- APPLE IS UP 3.45%. MAY BE PEOPLE LOOKING PAST THAT HAVING TO DO WITH CHINA AND THE LOCKDOWNS AND THAT'S A ONE-TIME THING AND THEY WILL BE BACK. IF WE TAKE A LOOK WHAT IS HAPPENING THERE, WE HAVE META PLATFORMS UP 24% ON THE IDEA THAT MEDA IS INVESTABLE IN THE YEAR OF EFFICIENCY. AMAZON, DESPITE THE DECLINE IN A DISAPPOINTING QUARTER. ALPHABET, NVIDIA BOTH UP SHARPLY. THIS PUTS THE NASDAQ 100 AND A GOOD POSITION. HERE'S THE DOWNTREND, LAST YEAR'S BEAR MARKET. THERE IS SIGNIFICANT SCIENCE THAT IT IS COMING TO AN END. YOU HAVE THE NASDAQ 100 POPPING ABOVE IT AND BREAKING IT. THE RSI IS UP CLOSE TO OVERBOUGHT ON A DAILY BASIS, BUT A WEEKLY, MONTHLY BASIS NOWHERE NEAR. EVEN IF WE WERE TO IN THE NEAR TERM, THE BUYERS ARE BEHIND-THE-SCENES AND WANTED TAKE THIS BIG TECH INDEX HIGHER. TOM: BLOOMBERG'S ABIGAIL DOOLITTLE, THANK YOU VERY MUCH. U.S. LABOR SECRETARY AT WITH THE RED PAYROLLS DATA. > > I LOOKED AT MY ECONOMISTS AND SAID YOUR WAY OFF TODAY. IT WAS A GREAT REPORT WHEN YOU LOOK AT AREAS THAT ARE IMPORTANT. BUSINESS GROUP, HEALTH CARE GROUP, EDUCATION GREW AND A STEADY GROWTH IN CONSTRUCTION. THOSE AREAS, ARE SIGNS OF THE ECONOMY AND CONCERNS OF THE ECONOMY, I WILL TAKE THIS JOBS REPORT ANY DAY OF THE WEEK. TOM: LET'S GET THE EMPLOYMENT PICTURE ON THE GROUND. WE ARE JOINED BY DANIEL YANISSE , FOUNDER OF CHECKR INC . LET'S START WITH YOU AND WHAT YOU ARE SEEING ACROSS YOUR BUSINESS IN TERMS OF THE TIGHTNESS OF THE LABOR MARKET. 517,000, THE DATA THAT YOU ARE SEEING ON A DAY-TO-DAY BASIS. WHAT IS THE JOB MARKET YOU SEE? DANIEL: IN DIFFERENT INDUSTRIES, WE SEE INTERESTING TRENDS IN JANUARY. WE CAN CONFIRM THAT TECH COMPANIES ARE HAVING LOW HIRING VOLUMES AND THAT ALIGNS WITH THE LAYOFFS IN THE NEWS. THAT'S A SMALL PORTION OF EMPLOYMENT. WHEN WE LOOK AT OTHER INDUSTRIES, SMALL AND MEDIUM-SIZE BUSINESSES, S & P'S HAVE HAD A HUGE SPIKE IN JANUARY. OF 44% IN HIRING VOLUME COMPARED TO DECEMBER. THERE IS A HUGE SPIKE IN SMALL BUSINESSES AND SIGNALED TRENDS IN THE ECONOMY, DESPITE THE HEADLINES WE SEE A VERY HIGH-VOLUME OF JOBS IN JANUARY. ALIX: ARE THERE ANY SIGNS OF LABOR HOARDING? DANIEL: ACROSS ALL INDUSTRY, THERE IS A LOT OF PRESSURE, NOT ENOUGH JOBS AND NOT ENOUGH PEOPLE AVAILABLE FOR JOBS. CUSTOMER AND BUSINESSES ARE STILL FIGHTING FOR THE LABOR FORCE. THAT'S A BIG TREND. TECH IS THE ONLY EXCEPTION AND THAT MAY BE TEMPORARY. IN OTHER INDUSTRIES THEY ARE FIGHTING FOR WORKERS. TOM: IT'S INTERESTING, IN TERMS OF TECHNOLOGY AND WITHIN THAT, WE HAVE HEARD AND A DAUGHTER LEAVE THE PEOPLE WHO LOSE THEIR JOBS ARE QUICKLY TO PICK UP THEIR JOBS. I BELIEVE WE HAVE THE PRESIDENT. PRES BIDEN: I WILL BE SHORT BECAUSE I HAVE SOME GOOD NEWS. BEFORE I HEAD TO PHILADELPHIA I WANT TO SAY A FEW WORDS ABOUT WHAT I THINK IS STRIKINGLY GOOD NEWS SO WE JUST RECEIVED. NEXT WEEK, I WILL BE REPORTING ON THE STATE OF THE YOU AND. BUT TODAY, I AM HAPPY TO REPORT THAT THE STATE OF THE IN THE STATE OF OUR ECONOMY IS STRONG. WE LEARNED THIS MORNING THAT THE ECONOMY HAS CREATED 517,000 JOBS JUST LAST MONTH. MORE THAN HALF A MILLION JOBS IN JUST THE MONTH OF JANUARY. IN ADDITION, WE ALSO LEARNED THAT THERE WERE HALF A MILLION MORE JOBS CREATED LAST YEAR THAN WE THOUGHT, SO THE JANUARY REPORT HAS BEEN UPDATED. I THAT ALL UP THAT MEANS WE CREATED 12 MILLION JOBS SINCE I TOOK OFFICE. THAT MEANS WE HAVE CREATED MORE JOBS IN TWO YEARS THAN ANY PRESIDENTIAL TERM. THAT IS THE STRONGEST TWO YEARS OF JOB GROWTH IN HISTORY BY A LONG SHOT. AS MY DAD USED TO SAY, A JOB IS ABOUT A LOT MORE ABOUT A PAYCHECK, IT'S ABOUT YOUR DIGNITY. 12 MILLION MORE AMERICANS GET UP EVERY MORNING KNOWING THEY COULD PROVIDE FOR THEIR FAMILIES WITH THE DIGNITY AND SENSE OF SELF WORTH. WE LEARNED THE UNEMPLOYMENT RATE FELL TO 3.4%. THAT IS THE LOWEST IN 54 YEARS. THE LAST TIME UNEMPLOYMENT WITHOUT LOW WAS IN OF 1969. THINK ABOUT THAT. WHAT IS MORE IN, BLACK AND HISPANIC UNEMPLOYMENT ARE NEAR RECORD LOWS. THIS MATTERS, MORE WORKING AGE FOLKS GOING INTO THE LABOR MARKET THEN HAVE FOR A WHILE. MORE PEOPLE ARE COMING INTO THE MARKET, LOOKING FOR JOBS AND GETTING JOBS. A POSITIVE SIGN FOR THE HEALTH OF THE ECONOMY GOING FORWARD. EVEN AS THE JOB MARKET REACHES HISTORIC HIGHS, INFLATION COMES DOWN. INFLATION HAS FALLEN FOR SIX STRAIGHT MONTHS. GAS PRICES ARE DOWN $1.50 SINCE THEIR PEAK, FOOD INFLATION IS FALLING AS WELL. TAKE HOME PAY FOR WORKERS IS GOING UP. REAL WAGES ARE UP. WAGES FOR LOWER AND MIDDLE INCOME WORKERS HAS GONE UP EVEN MORE. COUPLE THAT WITH A 2.9 PERCENT ECONOMIC GROWTH LAST QUARTER AND HERE'S WHERE WE STAND. THE STRONGEST JOB GROWTH IN HISTORY. THE LOWEST UNEMPLOYMENT RATE AND 54 YEARS. MANUFACTURING REBOUNDED AT A FASTER RATE THAN IN THE LAST 40 YEARS. INFLATION COMING DOWN, REAL WAGES GOING UP. THE ECONOMY IS GROWING AT A SOLID CLIP. PUT SIMPLY, I WOULD ARGUE THAT THE BIDEN ECONOMIC PLAN IS WORKING. FOR THE PAST TWO YEARS WE HAVE HEARD A CHORUS OF CRITICS RIGHT OFF MY ECONOMIC PLAN. THEY SAY IT'S NOT POSSIBLE TO GROW THE ECONOMY FROM THE BOTTOM UP. THEY SAID WE COULDN'T BRING BACK AMERICAN MANUFACTURING. I SAID -- THAT SOMEHOW ADDING JOBS WAS A BAD THING. OR THE ONLY THING THAT WOULD SLOW DOWN INFLATION WAS DESTROYING JOBS. TODAY'S DATA MAKES CRYSTAL CLEAR WHAT I'VE ALWAYS KNOWN IN MY GUT, THESE CRITICS AND CYNICS ARE WRONG. WHILE WE MAY FACE SETBACKS, MORE WORK TO DO IS CLEAR. OUR PLAN IS WORKING BECAUSE OF THE GRID AND RESOLVE OF THE AMERICAN WORKER. WE WILL LOWER COSTS AND HEALTH CARE, CLEAN ENERGY, WE PASS OUT LEGISLATION WE WILL BE ROLLING IT OUT ALL YEAR. WE WILL REBUILD THE INFRASTRUCTURE IS SUPPLY CHAINS, MANUFACTURING MORE HERE AT HOME. IN COMMUNITIES ACROSS THE COUNTRY, THERE WERE TWO EASILY WRITTEN OFFER DEAD, WE WILL NOT ONLY SEE JOBS COMING BACK BUT A SENSE OF SELF-WORTH. NOTHING WORSE FOR THE CITY TO SEE MANUFACTURE LEAVE AND YOUR KID COMING OUT OF COLLEGE SAYS I NEED TO MOVE, THERE'S NOTHING HERE ANYMORE. I AM INTENT ON CHANGING THAT IN THE HEARTLAND AS WELL. THAT IS HOW WE BUILD AN AMERICA WE CAN ALL TAKE PRIDE IN. WORKING FAMILIES HAVING GOOD JOBS AND MORE BREATHING ROOM. AS THE ECONOMY GROWS FROM THE BOTTOM UP OF MIDDLE OUT. TRICKLE DOWN ECONOMICS WORKS FOR ONE GROUP OF AMERICANS, IT DOES NOT WORK FOR EVERYBODY. THIS IS WHAT THIS IS ALL ABOUT. I AM HEADING UP TO PHILADELPHIA AND IF YOU WANT TO ASK ME A QUESTION ABOUT THE ECONOMY, I WILL NOT ANSWER ANY QUESTIONS ABOUT ANYTHING ELSE. > > DO YOU TAKE ANY BLAME FOR INFLATION? PRES BIDEN: NO. > > WHY NOT? PRES BIDEN: IT WAS HERE WHEN I GOT HERE, JOBS WERE HEMORRHAGING, INFLATION WAS RISING. WE WEREN'T MANUFACTURING A THING HERE. THAT'S WHY ADELE. -- THAT'S WHY. ALIX: YOU ARE LISTENING TO PRESIDENT BIDEN DELIVERING REMARKS ON THE JOBS IN SOUTHPORT AUDITORIUM. A REFUSAL TO ANSWER ANY OTHER QUESTIONS. NO SURPRISE, SAYING THE BIDEN ECONOMIC PLAN IS WORKING. YOU JUST HEARD HIM TO RESPOND TO A QUESTION THAT HE DOESN'T TAKE RESPONSIBILITY FOR INFLATION IN THE STATE OF THE ECONOMY IS QUITE STRONG. I SHOULD POINT OUT THAT WE ARE LOOKING AT STOCKS OF RACING LOSSES FROM EARLIER. IT IS GOOD NEWS GOOD NEWS NOW? I WILL BRING BACK THE QUESTION OF THE DAY, ARE WE TOO HOT TO HANDLE? IS THE JOB MARKET TOO HOT TO BRING INFLATION DOWN. KATHY, WHAT DO YOU THINK IS IT TOO HOT TO HANDLE? KATHY: I THINK IT IS FOR THE ECONOMY SOME GOOD RIGHT NOW. THE ISSUE IS, THE LABOR MARKET CONTINUES TO GET EVEN TIGHTER. WE ARE SEEING SOME DISINFLATION IN THE ECONOMY, TYPICALLY IN THE GOODS SECTOR. FOR SERVICE INFLATION, IT IS STILL QUITE HIGH AND IT CAN BE QUITE STICKY. WHEN I LOOK AT THESE NUMBERS ON THE FACE OF IT, IT'S GOOD NEWS IS PRESIDENT BIDEN POINTED OUT. IT'S JUST TOO HOT, TOO STRONG. THE RISK IS THAT WE START MODERATING WAGE GROWTH, WHEN YOU HAVE A 53 YEAR LOW ON THE UNEMPLOYMENT RATE AND YOU ARE SEEING JOB GROWTH THUS MORE THAN DOUBLE THAN WHAT WAS EXPECTED, BUT CAN ONLY KEEP SERVICE INFLATION ELEVATED. I THINK THAT MEANS THE FEDERAL RESERVE HAS MORE IN TIGHTENING TO GO, NOT LESS. TOM: THAT MORE TIGHTENING, WHERE DOES THAT TAKE YOU? THE PRESIDENT SEEMS TO BE PAINTING THIS ROSY HINTERLAND WHERE YOU HAVE FULL EMPLOYMENT, TIGHT LABOR ECONOMIC AND SLOWING INFLATION. IT DOESN'T SEEM LIKE YOU BUY INTO THAT? KATHY: I HOPE IT PLAYS OUT THAT WAY. THAT WOULD BE A GREAT OUTCOME. YOU HAVE TO BE MORE CAUTIOUS, IT'S MORE COMPLEX THAN THAT. SO THINK WE COULD HAVE THIS MIRACULOUS DISINFLATION AND SLOWING AND WAGE GROWTH, ESPECIALLY WHEN THE LABOR MARKET IS SO HOT. THAT IS A BIG RISK. A BIG LEAP OF FAITH TO TAKE. THE FEDERAL RESERVE, THEY WILL RAISE RATES, 5.25 WOULD BE THE PEAK. AT THE MINIMUM, NEEDS TO GO THERE AND THEY HOLD THAT THROUGHOUT THE YEAR. AS YOU KNOW, THE MARKET HAS BEEN PRICING IN AN EASING OF THE SECOND HALF OF THE YEAR. THESE NUMBERS DON'T SUPPORT THAT. ALIX: WE ARE SEEING SOME EASING BEING PUSHED OUT. WE HAVE THE STRONG ISM AND JOBS DATA, IF YOU LOOK AT THE MANUFACTURING ISM, AS ALL OF THIS PAINTING A CLEAR PICTURE? WHAT ARE THE STANDOUT QUESTIONS? KATHY: IT IS VERY UNEVEN. AND A BIT CONFUSING. REAL ESTATE HAS BEEN A RECESSION FOR SEVERAL QUARTERS. MANUFACTURING HAS BEEN CONTRACTING, THE ISM CONFIRM THAT EARLIER IN THE WEEK. THE SERVICE ISM HAS BEEN PERPLEXING, IT'S MORE VOLATILE THAN WE EXPECT. THAT ONE HIT BELOW 50 AND IT CAME ROARING BACK BECAUSE OF MONTHLY INCREASES. I WOULD SAY THAT NONRESIDENTIAL SEEMS TO BE STALLING. I THINK IT'S JUST A MATTER OF TIME FOR THE LABOR MARKET STARTS TO SLOW AND CRACK. I DON'T SEE HOW IT WAS STANCES. IT IS TOO GOOD FOR NOW BUT WE ARE POISED TO SLOW. TOM: ONLY A MATTER OF TIME BEFORE THE LABOR MARKET STARTS TO CRACK. KATHY BOSTJANCIC NATIONWIDE LIFE INSURANCE CO CHIEF STRATEGIST ATNATIONWIDE LIFE INSURANCE CO , KATHY WOODS TAKES A VICTORY LAP ARC FUND HAS JUMPED OVER 40%. HEATHER BOUCHER JOINS BLOOMBERG TV AT NOON, NEW YORK TIME. THIS IS BLOOMBERG. KEEPING YOU UP-TO-DATE WITH NEWS FROM AROUND THE WORLD. WITH THE FIRST WORD, I'M LISA MATEO. A CHINESE SURVEILLANCE BALLOON WAS DETECTED OVER MISSILE SITES IN MONTANA IN THE BIDEN ADMINISTRATION HAS POSTPONE ANTONY BLINKEN'S TRIP TO BEIJING. CHINA SAYS THE BALLOON WAS CONDUCTING CLIMATE RESEARCH AND ENTERED U.S. AIRSPACE DUE TO FORCES BEYOND HIS CONTROL. FOR THE FIRST TIME IN THREE YEARS, THE BORDER BETWEEN HONG KONG AND MAINLAND CHINA WILL COMPLETELY REOPEN. IT WILL REVIVE THE CITY'S ROLE INTO THE BUSINESS GATEWAY INTO THE COUNTRY. DAILY QUOTAS AND COVERT REQUIREMENTS WILL BE DROPPED. THEY WILL ALSO ALLOW UNVACCINATED TRAVELERS TO ENTER THE CITY. THE U.S. WILL SEND THE UKRAINE A BOTCHED ATTEMPT ROCKET AS PART OF THE LATEST MILITARY PACKAGE. IT'S MADE BY BOEING AND SWEDEN SAW. IT WILL TAKE ABOUT NINE MONTHS FOR THE FIRST DELIVERIES ONCE THE AIR FORCE ISSUES THE CONTRACT. GLOBAL NEWS 24 HOURS A DAY, ON AIR AND ON BLOOMBERG QUICKTAKE, POWERED BY MORE THAN 2700 JOURNALISTS AND ANALYSTS IN MORE THAN 120 COUNTRIES. I AM LISA MATEO, THIS IS BLOOMBERG. ALIX: KATHY WAS, ART ETF IS OFF TO A STRONG START. UP MORE THAN 40% AND SHE SPOKE TO BLOOMBERG YESTERDAY. > > THE WAY THAT NASDAQ PERFORMED IN THE 80'S AND 90'S, THAT IS WHERE WE WENT. YOU LOOK THROUGH THAT NOW, HE WILL NOT FIND THE KIND OF DISRUPTIVE INNOVATION. IT DOES NOT DOMINATE THOSE INDEXES. ALIX: WHAT DO YOU THINK? > > THIS IS WHY SHE HAS DEVELOPED THE SCOPE FOLLOWING BECAUSE SHE STEPS TO HER CONDITIONS AND SHE DOUBLES DOWN. YOU KNOW WHAT YOU ARE GOING TO GET WITH KATHY WOODS. YOU WILL GET THIS VERY DISRUPTIVE STOCKS. THUS WHAT HER PORTFOLIO HOLDS. SHE WILL NOT GO TO CASH LIKE A TYPICAL MANAGER WOULD DO. SHE WILL DOUBLE DOWN AND YOU CAN SEE IT IN HER PORTFOLIO. AS TESLA, SOON, ROKU, WHICH SHE THINKS WILL BE THE NEW LEADERS OF GROWTH. SHE THINKS THE NASDAQ 100 IS STALE, YOU ARE INVESTING FOR THE FUTURE YOU SHOULD INVEST IN THE DARK INNOVATION ETF. IF YOU CAN STOMACH THE VOLATILITY. TOM: QUITE THE VOLATILITY THERE IS. WHAT ABOUT MORGAN STANLEY, THEIR REENTRY INTO THE ETF MARKET, WHY NOW? > > THIS IS REALLY IMPORTANT, MORGAN STANLEY COMING TO THE MARKET WAS SIX ETF'S. THIS IS THEIR FIRST MODERN-DAY ENTRIES INTO THE ETF INDUSTRY WITH THEIR OWN FUNDS. -- WHEN YOU THINK ABOUT THEIR OTHER INVESTMENTS, THEY HAVE 5.5 TRILLION DOLLARS WORTH OF ASSETS. THAT IS A LOT OF MONEY THAT COULD GO INTO THEIR ETF'S. IN TERMS OF WHY NOW, THAT'S A CONVERSATION THAT I HAD WITH THEIR GLOBAL HEAD OF ETF'S. AT THIS POINT WE HAVE $7 TRILLION WORTH OF ASSETS IN U.S. ETF'S. THIS CAME FROM CLIENTS. IT'S NOT A CONVERSATION ABOUT WHETHER IT IS ETF'S ARE MUTUAL FUNDS, THIS IS AN EITHER OR. THEY ARE INVESTING IN PRODUCTS FOR DIFFERENT REASONS AND THIS IS WHAT THEIR INVESTOR BASE WANTED. ALIX: WHAT KIND OF ETF'S DO THEY WANT? > > IT IS ALL ESG. THEY BOUGHT A COUPLE OF YEARS AGO IN THE ACQUISITION THAT THEY GOT THE CALVERT RENT WHICH IS A PIONEER AND ESG. IT'S A LEGIT PRINT TO HAVE. IT'S AN INTERESTING TIME FOR ESG BECAUSE THERE HAS NOT BEEN A LOT OF LOVE WHEN YOU LOOK AT THE FLOWS. THEIR POINT IS WE ARE COMING IN COMPETITIVELY PRICED, ALL OF THEIR FUNDS ARE UNDER 20 BASIS POINTS. YOU HAVE THE BRAND RECOGNITION OF CALVERT. MAYBE THEY WILL SEE MORE SUCCESS WITH THOSE ESG ETF'S. THEY SAID THIS IS THE FIRST OF SEVERAL LODGES. THEY HAVE BIG PLANS FOR THE U.S. AND EUROPE. SO STAY TUNED. TOM: REALLY INTERESTING IN TERMS OF THE PRODUCTS IN THE ETF SPACE THAT MORGAN STANLEY IS PUSHING THROUGH. AND OF COURSE REACTION TO CATHIE WOOD WOODS CLAIMED THAT SHE IS THE NEW GNOSTIC. THE U.S. CONFIRMING THAT ANTONY BLINKEN HAS BEEN POSTPONED BECAUSE OF THAT SPY BALLOON THAT HAS BEEN HOVERING OVER MONTANA. THE U.S. SAYING THAT THE SPY BALLOON IS UNACCEPTABLE AND IRRESPONSIBLE. TOM: WELCOME BACK. LET'S CHECK IN ON THE MARKET SINCE WE HEAD INTO THE FINAL HOUR OF TRADING IN EUROPE. THIS RAN ACROSS THE TERMINAL AROUND THE U.S. POSTPONING A TRIP BY THE U.S. SECRETARY OF STATE, ANTONY BLINKEN TO CHINA. THE U.S. POSTPONE THE TRIP BECAUSE OF WHAT THEY DESCRIBED AS A SPY BALLOON THAT HAS BEEN HOVERING IN U.S. AIRSPACE. ON GEOPOLITICS, THUS THE LATEST UPDATE. LET'S CHECK IN ON THESE MARKETS. THE PAYROLLS NUMBER, WHAT A BLOWOUT. I PICK UP THE EURO-DOLLAR BECAUSE YOU'VE SEEN THE BLOOMBERG DOLLAR, IT'S UP .8 PERCENT. YIELDS ARE UP ACROSS THE BOARD AND YOU SEE A STRONG DOLLAR, WEAK DOLLAR. 1.0 WAY RIGHT NOW, THE DRUG MAKER SALAFI TAKING A HIT. DOWN 1.8%. THE NEAR -- THE GENERIC VACCINES CAME BACK DOWN. TOTAL ENERGY, IT'S EXPOSURE TO ADANI THAT HAS BEEN CAUGHT UP IN CONTROVERSY, THE STOCK RALLIED 2.7%. VERY STRONG GAINS AND PRINTS. LAURA COOPER, SENIOR INVESTMENT STRATEGIST AT BLACK ROCK.

No schedule data available.

Bloomberg Markets (02/03/2023)

Alix Steel and Tom Mackenzie bring you the news you need to know and trends you need to watch as US markets get into the trading day. (Source: Bloomberg)

More From Bloomberg Markets
All episodes and clips

The David Rubenstein Show
The David Rubenstein Show: Peer-to-Peer Conversations" explores successful leadership through the personal and professional choices of the most influential people in business.
More episodes and clips