Bloomberg Daybreak: January 30, 2023

over the Memphis police beating at Tyree Nichols. Plus how young is too young for social media? Michael Bomber More ahead, I'm John Stash. In sports, the Eagles blew out the Forts, the chief said. The Bangrolls Philadelphia and Kansas City will

play in Super Bowl fifty seven. That's all straight ahead on Bloomberg day Break on Bloomberg eleven, Treo, New York, Bloomberg one, Washington, d C, Bloomberg one O six one, Boston, Bloomberg nine sixty, San Francisco, Sirius x M one nineteen and around the world on Bloomberg Radio, dot com, um and via The Bloomberg Business. Good morning, I'm Nathan Hagar and I'm kerin Moscow. Here are the stories we're following today. All futures are lower this morning. We do enter the

day in bullish fashion. The S and P five hundred is up six percent so far this month, while the tech heavy Nasdaq is higher by eleven percent, but one noted Wall Street analysts says sell this rally. Let's get the latest Live with Bloomberg. Steve Rappaport. Good morning, Steve, Good morning, Nathan, and Karen. A team of strategists led by Morgan Stanley's Mike Wilson urges investors to cash out now.

Wilson writing the recent price action is more a reflection of the seasonal January effect and shortcovering after a tough end to December and a brutal year. Despite signs of an economic slowdown, investors are pouring money into companies that exceeded expectations. Analysts say that dynamic is likely tied to companies restructuring and cost cutting plan efforts. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you well.

It's also been a good January for crypto investors. Bitcoin has set for its best January since best that monetary tightening in the crypto sector crisis are both ebbing. The largest token is up over forty percent since the start of the year. Smaller coins like Slana have doubled in value as part of a two d eighty billion dollar climb, and digital assets this month bad figure according to coin get Go. Well. This week is another big one for

earnings Karen. More than a hundred companies in the SNP five reporting, and we get a preview from Bloomberg's Charlie Pellett. Microsoft and Intel rattled investors last week. Lisa Shalott is chief investment Officer for Wealth Management at Morgan Stanley. She says it's a bad omen for the US economy. There is definitive risk to the earnings profile as both pricing power and volumes decline UH coming off what has been a historic stimulus over the last two and a half

years and a pull forward in demand. This week, we will here from tech giants including Apple, Alphabet, Metal Platforms, qual Calm, and Amazon. Also reporting x on Mobile for GM, McDonald's and Starbucks in New York. Charlie Pellett Bloomberg Daybreak, Right, Charlie, thank you. Well, it's also a big week for central

banks and economic data. We get both the FED decision and January's jobs report, and here with Moore is Bloomberg Economic Score, responded Michael McKee, Wednesday's FED meeting will dominate the headlines early that although a quarter percentage point increase in the nation's benchmark borrowing rate is pretty much baked in, it would take a surprise to really move markets. Friday is Job's Day, however, and that data will do a lot to inform how investors think about the feds next move.

So far, the Central Bank has raised rates by four and a half percent this year, but unemployment is unchanged, does hiring slow and job loss accelerate, and most important to average hourly wage gains slow. Those will be key data points for Fed officials considering any additional policy change.

Like on the key Bloomberg Daybreak, make thanks. We also get key rate decisions in Europe this week, and for the latest down that we go live to London and bloombergs you and parts, good morning you and good morning Nathan and Karen. The European at Central Bank will be in focus this Thursday. Investors. We're watching for the messaging as to whether this week is likely fifty basis point hike will be followed by another of the same magnitude. The UK Center Bank Memhile makes its decision on the

same day. The Bank of England also expected to raise by fifty basis points, bringing rates to four percent. The BAWA has little reason to shy away given the economy has being more resilient than expected and a tight labor market and spiraling waves growth are in focus in London. I'm you and part spom boy daybreak, Are you and thank you? Are staying in Europe? Thousands of job cuts around the way. A Dutch medical equipment maker, Royal Phillips, we come up, as CEO Roy Jacobs earlier this morning.

We have announced indeed that we are going to reduce the workforce by not a thick thousand people. That's a sizeable, an impactful measure, but we see it necessary to indeed address the rising coast across the company end of the world. Phillips e EO Roy Jacobs says the cuts are in addition to four thousand job cuts announced last year, and shares are at more than six percent on the News. You know, we're also watching shares of a Donnie Group in India this morning. It has been a tumultuous few

days for the company, owned by billionaire Gatma Donnie. The shares fell eighteen percent on Friday after allegations of fraud by short seller Hindenburg Research. Donnie has hit back with a fourteen page rebuttle of those accusations. That's lifting shares a bit this morning. Right now they're up about five. We'll back here in the US Nathan Politics and Focus. President Biden has agreed to meet with HOW Speaker Kevin McCarthy on Wednesday to discuss the dead ceiling and avoiding

a US default. Bloomberg Jamie Morris has details from our newsroom in Washington. The White House says President Biden will ask McCarthy if he'll meet what he calls his constitutional obligation to prevent a default. McCarthy says he'll press for changes in spending. We're not going to default, but let me be very honest with you. Right now, we have hundreds of billions of dollars. This won't come to fruition

until some time in June. So the responsible thing to do is sit down like two adults and start having that discussion. How speaker McCarthy on CBS Face the Nation heard Sundays here on Bloomberg Radio. Republicans want to extract spending cuts, including Social Security and Medicare benefits, in exchange for raising the borrowing cap. Biden has urged McCarthy to raise it without conditions. In Washington, I'm Amy Moore's Bloomberg Daybreak.

Thank you, Amy, s and p futures right now are down thirty five points and straight ahead we have your latest local headlines in the check of sports. This is Bloomberg. It's forty three degrees in Central Park. Gonna be partly sunny and fairly mild today, getting up to near fifty. Some showers possible this evening. Otherwise mostly cloudy, will get

back down to the low thirties. Time to take a look at some of the other stories making news in New York and around the world with Bloomberg's Michael Good Morning, Michael, Good Morning. Nathan. Demonstrations were held across the nation after video showed the deadly beating of Tyree Nichols by Memphis police officers. The Memphis officers were fired and faced murder charges, and their so called Scorpion Union has been disbanded by the police chief. In New York City, a protest was

held in Washington Square over the weekend. Event organizer Timothy Hunter says many in the community feel a responsibility to protect others from suffering a similar fate. Justice isn't the reaction after it happens. Justice is stopping it from ever happening again. Pressure continues on Capitol Hill lawmakers to act on longstalled federal police reform legislation. In the wake of Tyree Nichols. Former Governor Chris Christie of New Jersey talked

about the overhaul of a police department in his state. Camden, New Jersey, was the most dangerous city in America for about a decade, and we disbanded the entire police force and brought in a new one. We taught police officers and that's these skills for violence the escalation. Former New Jersey Governor Christie spoke to ABC. Protests took place on New York City's Upper West Side last night after learning migrants bust from southern border states will be bust once

again to Brooklyn. They are currently being housed at the Watson hotel in Manhattan. This person is a volunteer. It's not humane. This is not the way you treat human beings. New York City officials say after receiving tens of thousands of migrants relocated from states like Texas, they have to look at other places to accommodate people. Israel carried out a drone strike targeting a defense compound in Iran, according

to The Wall Street Journal. People familiar with the operations say the US and Israel are looking for new ways to contain Tehran's nuclear and military ambitions. How young is too young for social media? Surgeon General Vivic Murphy says he thinks thirteen is too young for children to be on social media. He says kids are still developing their

identity at that age. Dr Alach Patel, pediatrician with Stanford Children's Health, agree, the Surgeon General is absolutely correct in my professional opinion that children aged thirteen are simply too young to be on social media, scrolling those platforms and frankly getting addicted. Dr Prtell spoke to ABC Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analyst

and more than one d twenty countries. How Michael Bard, this is Bloomberg, Nathan. Thanks Michael. Time now for the Bloomberg Sports Update, brought to you by try stayed OUTI. Good morning, John Stanshower, Good morning, Nathan, and will be the Eagles in chiefs in Phoenix. Two teams have combined to win only three of the fifty six Super Bowls. Andy Reid will go against the team he coached for thirteen years. Travis Kelsey would play against his brother Jason.

Vegas had the game as a pick on. Philadelphia is now a slight two point favor They improved a sixteen and one with Jalen Ards at quarterback. He led them to a route of the forty Niners thirty one to seven. The Niners had no chance when they're QB Rock Purdy heart his elbow and then his backup Josh Johnson went into concussion protocols, so they had to bring Purdy back, but he couldn't throw a pass and they go down in the NFC Championship Game for the second year in

a row. After their twelve game winning streak came to an end. The Bengals ten games streak end in Chiefs Avenge three straight losses to Cincinnati, included one in overtime in last year's NFC title game. This one looked to be headed ot but Case in the final minute had a long punt returned. The Bengals committed a costly penalty and tied at twenty. It was time for a championship winning field goal Prrison Butker. The biggest kick of his

Chiefs life. Placement is down. Butcker's kick us out. The spinning kick high, funny in the air as God, God, God, it's Cincinnati called time out. They did not, They did not, They did not. It's a field goal for forty five yards by Harrison Butker. He traded call Patrick Mahomes bothered by an ankle in dream, but he's still through for three hundred and twenty six yards. That's Garden st Johnson nearly lost to Lowly Georgetown pulled out a seventy seventy

three win. Hoyas have lost thirty of their last thirty one. In the Big East. Novak Djokovic is tan Tha. Australian Open title gives him twenty two Grand slams now tied the Raphael the daw john Sta actually were Bloomberg Sports live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius xamp, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

Good morning, I'm Nathan Hagar, as we get ready to kick off a very busy week for central bank decisions in the US and around the world, as well as earnings, with more than a hundred companies in the SP five hundred reporting this week. It's gonna look at this market now. We're joined by Dennis Gartman, the chairman of the University of Akron Endowment Investment Committee and the former publisher of the Gartman Letter. Dennis, Good morning. We are seeing futures

af firmly in the red this morning. Is this the peak of the January rally? It may well be time, shall tell I had been various of style basically since January of last year, and about four weeks ago I started to turn quietly, marginally, modestly slightly bullish of of equities. But I have to admit that today's action looks really quite horrific to be to be blunt, and we may well have seen the to the peak. Everybody's looking forward to I shouldn't stay forward. Everybody's looking to the FEDS

decision this week. Right now. That consensus is the FED is going to raise the overnight FED funds raised by twenty five basis points. I have a sneaky suspicion they'll probably go by fifty. But time shall tell. But we have a you had a strong rally since October last year. We found some support for the S and P, we found some support for the NASDAC, but the rally had

has probably exhausted itself. So in my own account, I'm I'm marginally long, about ten net long, and I'm probably gonna start taking some some safety against that this morning. And and and put in some derivatives to hedge my position. You said there's a pond stability that the FED could go fifty basis points. What makes you think that? The language coming from Mr Powell, he's been very consistent. We'll see.

I was one of the first people to say that the FED was going to take greats towards five percent. I said that almost fourteen months ago. And the fact that that we raised seventy five basis points for the last three or four meetings. Uh, the odds of them going only twenty five, I think are relatively slim. Time shall tell, we'll see. The set is nowhere near dune tightening monetary policy at this point, and we need to pay more attention to what they're doing to their balance

sheet is still above eight trillion dollars. It needs to get down to four or four point to four to five trillion over the course of the the next year or two. And that's to me even more important than what they do with the overnight said funds rate. Is it more important for equity valuations? What makes them more important the fact that the Fed will be, has been, and shall continue to be taking liquidity out of the market for

a protracted period of time. They raised the over their their balance sheet from what nine million dollars to nine trillion dollars. That took almost a decade to accomplish that task. It's going to take them a long period of time to resolve that to get that balance sheet back to four to five trillion dollars instead, which would still be a top heavy balance sheet. But the fact that they're taking the liquidity that had sponsored the great bull market

that we had two years ago. Uh that that liquidity is being taken away. That's the one caveat that you have to be concerned about if you're an overt bowl, as I said. As I said, I'm marginally bullish, have been for the past three or four weeks, but today's action does look deleterious, looks detrimental, looks a little suspicious, and I'm going to be taking some protection this morning. Is the policy moves that the FED is making now?

Is that the right prescription for the inflation that we've seen so far is the Fed possibly hiking into a recession. The Fed is almost certainly hiking into a recession. And I think that's actually the right thing to that. I think they're taking the right the right course of action. The question shall be where how far will they take the overnight said funds right to reach the terminal rate

as we now call it. I think they want to get it to five and a quarter percent, and then even even once they get there, they won't be cutting rates. They won't be easy monetary policy. They won't be making these long forecasting pivot for a long period of time, probably not into before they actually begin to move right

slower again. So I think they're doing the right thing. Well, what's that going to mean for equity valuations if we do see that kind of tightening go forward, all things being otherwise equal, Once you get a bounce, which maybe that's what we've seen since from from the lows in October to the highs of last week. Maybe that's the fact that we we had a nice technical bounce and and the fact that they're going to be taking liquidity away from the market should be deltarious to share prices.

So I'm I'm on the edge right now. As I said, I was marginally bullish, and the operative ward here is marginally Uh. Time shall tell. But I'm not at all happy with what I'm seeing this morning, And as I said, I'm gonna be taking some some derivative positions to hedge my position and get back to neutral. I'm not overly bullish, I'm marginally so and I and I feel a little discomfort this morning watching this, watching red across the board, in bonds, in stocks, in the dollar, uh, in gold.

So we may have seen a little change here. This is Bloomberg Daybreak today, your morning brief on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed at six am Eastern each morning, on Apple, Spotify, and anywhere else you get

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and on Bloomberg dot com. I'm Nathan Hager and I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak