End of the Tech Rally and Rahm Wins Masters

first time in the university's history. Workers had Rutgers planned to strike bloss of Oaks Day to reinstate and expel Tennessee representative. I'm Michael laughter. More ahead, I'm trying stat charon'sport John rom one of the Masters. The Yankees won, the Mets lost, the nick the Nets start the playoffs

on Saturday. That's all straight ahead on Bloomberg day Break on Bloomberg eliven Frio, New York, Bloomberg ninety nine one, Washington, d C, Bloomberg one O six one, Boston, Bloomberg nine sixty, San Francisco, Sirius XAM one nineteen and around the world on Bloomberg Radio dot Com and via the Bloomberg Business add Good morning. I'm Nathan Hager and I'm Kareron Moscow. Here are the stories we're following today. Put on the Way and another Spanish superstar. We'll wear a green jacket.

And it was a come from behind when for the twenty eight year old Spaniard. He entered yesterday's tournament in Augusta, Georgia, four shots back from brooks Kepka, who ended up tied for second with Phil Mickelson. We're going to have much more on Rom's victory at the Master's in Sports coming up in just a few minutes. Well, we now turned to the economy, Nathan, most global central banks maybe nearing

an end to raising interest rates. When we get the details live with the Bloomberg's John Tucker, John, good morning and Karen. After the most aggressive global tightening cycle scene in decades, peak rates may be in sight. The type policy has delivered dancing economic growth and turmoil in the banking industry. Still, it's not a simple path of take Fridays better than expected payrolls report in the US. Muhammad el Area, president of Queen's College, Cambridge, reacted after those

numbers crossed foot a FED. This increases a probability that they'll go twenty five basis points in early May. Now, according to Bloomberg Economics, the short lived peat for global rates will be six percent in the third quarter. By the end of next year, that measure is seen dropping to four point nine percent. At least twenty of the twenty three major jurisdictions across the globe monitor by Bloomberg are projected to be lowering borrowing costs next year. Live

in New York, I'm John Tucker, Bloomberg Daybreak. Well, Thanks John, Well something else that may be short lived? Maybe this year's twenty percent rally in tech stocks. At least that's according to the latest Bloomberg m Live Pulse survey. More than a quarter of respondents expect earnings to stall the

tech rally. Only fourteen percent predict further gains. Texas also looking more expensive, the NASTAC one hundreds trading at twenty four times it's forward earnings, well above it's long term average of nineteen, and the S and P five hundreds multiple of eighteen. Well, Nathan, the biggest tech stock of them all, Apple has seen personal computer shipments plunge in the first quarter, and we get the latest Live with the Bloomberg Steve A. Rappaport, Good morning, Steve, Good morning,

Karen and Nathan. Shipments by all PC makers combined drop twenty nine percent for the quarter, with Apple leading the way with more than forty percent. That's according to a report from the International Data Corporation. But there's a silver lining to the slump. IDC says cooling demand is giving manufacturers time and room to make changes as they explore factories options outside of China. Experts predict a rebound in twenty twenty four, driven by the need to replace aging

hardware and an improving global economy. Live in New York, I'm Steve Rappaport, Bloomberg Daybreak, Thanks Steve and other corporate news. Tesla says it's going to build a large new battery factory in Shanghai. Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong. Tesla will make its megapac large scale energy storage unit in this new facility. It's a move that will be seen as for the cementing China's place at the top of the energy storage supply chain.

The project was announced on Sunday. Construction is set to begin the third quarter of this year. The plant will start production in the second quarter of next year. The megapac is not for evs. It's intended as a massive battery to help stabilize energy grids in Hong Kong. Bryan Curtis Bloomberg Daybreak. All right, Brian, Thanks. While geopolitical tensions are heating up this morning, a US Navy destroyer passed or the South China Sea and a show of force

as China continues military drills around Taiwan. Bloomberg's Amy Morris has details from our ninety nine one newsroom in Washington. The USS MILIUS guided missile destroyer conducted freedom of navigation operations in the South China Sea near the Spratley Islands, an area that Beijing says belongs to China. The US refuses to acknowledge China's claim and regularly conduct such operations to challenge them, something China denounces as an infringement on

its sovereignty. Meanwhile, China this week held exercises involving aircraft and ships near Taiwan. After Taiwan's president returned from a visit to the US, which included meetings with the House Speaker Kevin McCarthy and other lawmakers in Washington. I'm Amy Morris, Bloomberg Daybreak. Thank you, Amy. The Biden administrations on track to propose the toughest ever US curbs on car pollution. The proposed standards on cars and light trucks are set

to be announced Wednesday in Detroit. They're expected to govern tailpipe emissions of carbon dioxide, smog forming, nitrogen oxide, and other pollution from vehicles manufactured in model years twenty twenty seven to twenty thirty two. The Washington Post says the goal is to have as many as two thirds of all new passenger vehicles sales electric by twenty thirty two.

Well Nathan. The issue of abortion rights back in the spotlight thanks to a decision in Texas, a federal judge has suspended FDA approval of mepapriss stone, a drug that's often used in early stage medication abortions. The drug has

been deemed safe and effective for decades now. Health in Human Services Secretary Javier Basra says he's weighing every option to over turn the ruling if a judge decides to substitute his preference his personal opinion for that of scientists and medical professionals, what drug is it subject to some kind of legal challenge? And Health Secretary how Yer Basara was on CNN State of the Union. The Texas judge's ruling was almost immediately contradicted by a competing decision from

a judge in Washington State. And this is Bloomberg. It is forty two degrees in New York. It's going to be sunny today with a high year sixty five. We'll get down to the upper forties tonight with just a few clouds around. Time Now to take a look at some of the other stories making news in New York and around the world with Bloomberg's Michael bar Good morning, Michael,

Good morning Nathan. It looks like more than nine thousand Rutgers University union members will go on strike today for the first time in the school's two hundred and fifty seven year history. Three unions representing educators, researchers, saying clinicians, took a formal vote last night to walk off the job at nine am after no agreement was made on

a new contract after nearly a year bargaining. Union president Rebecca Givens spoke to ABC seven grad workers, postdocs, counselors, biomedical faculty, so called legacy faculty, and we will take this momentous step. The strike will affect all three campuses of Rutgers in Newark, New Brunswick, and Camden. Nashville, Tennessee's Metro board is expected to meet today to start work

on reappointing expelled state Representative Justin Jones. The Republican controlled state House voted last week to expel Jones and another black member, Justin Pearson, over their part in a protest for gun reform legislation. Nashville Vice Mayor Jim Schulman says constituents have been silenced by the punishment. They're speaking out. They're speaking out on some serious issues, and they deserve

to be heard the syst democracy. Meanwhile, Jones visited his church on Easter Sunday, bringing the congregation to its feet. A New Jersey a mom is recovering after being stabbed during morning prayers on Sunday. About two hundred people were at the Omar Mosque in Paterson, New Jersey, when an attacker rushed said Elkankib and stabbed the a mom twice in the back before being restrained by other attendees. The mom is in the hospital and stable condition, according to authorities.

As for the attacker, no motive has been released. The former president's attorney general says he thinks the Manhattan criminal case against President Donald Trump is weak, but Bill Barr thinks the potential charges for where the classified documents seized at Mara Lago and the charges stemming from allegedly trying to convince Georgia officials to change the States twenty twenty election results have much better chances at sticking. Barr said Trump has no one to blame but himself for all

of his legal woes. The President unfortunately has a pensiont for engaging in reckless and self destructive behavior that brings these kinds of things on him. Barr spoke on ABC's This Week, which can't be heard Sundays on Bloomberg Global News twenty four hours a day, powered by more than twenty seven hundred journalists, analyists, and over one hundred twenty countries. I'm Michael Bard. This is Bloomberg Naked. Thanks Michael Than

for the Bloomberg Sports update. Good morning, John Stanshown In Morning, Nathan John Romby Game twenty twenty three by winning three of the first seven pg Evanson. Now he's won the first major, one of the Master's going away for the twelve hundred part meeting Brooks Kepka and Phil Mickelson by four shots. Britty, proud of myself from what I did,

and still really hust in. Same thing yet, and I'm looking at this course and I'm still thinking I have a couple more holes left to win, and can't really say anything else. You know, this one was for Sevy. I know he was up there helping, and help he did. He's referred to the Late Sevy by Astaros, a golfing legend in Rome's native Spain. He won the green jacket forty years ago. He kept go lost by four after

leading by four at the start of the day. He's left the PGA Tour to join the Live, as did Mickelson, who, at age fifty two, had not been playing well the last couple of years, but he turned back to clock yesterday with the final round sixty five. Yankees won five three at Baltimore, two one runs for Aaron Judge, one for Francie Cordero hit two in the series against the team that cut him in spring training. Yanks have won all three series so far, and they started another one

tonight at Cleveland. The Mets were going for a city field sweep, but Carlos Carrasco roughed up again in Miami won seven to two. Carrasco's oh and two with an eleven era a Tampa Bay one. Again. That's a second straight eleven nothing win over Oakland, and the Rains are now nine and ozero. Nicks and Nets both lost their regular season finales and then learned their playoff openers will be on the road on Saturday. The Knicks will out of six o'clock start in Cleveland, the Nets a one

o'clock tip in Philadelphia. Odell Beckham Junior will not play for the Jets or rejoined the Giants he signed with Baltimore. John Stashaward Bloomberg Sports, Nathan Okay, John, thank you up. Next year. We'll get the trading week started with Dennis Gartman, the former publisher of The Gartman Letter, as we look to the path ahead for the Fed after last week's jobs report and with more inflation data due out later this week, as we watch futures trade little changed right now.

SMP Futures are little changed to the upside Down futures are up five points. Nastack futures are lower by nineteen points. This is Bloomberg Live from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Sirius XAMP, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. What

will the Fed do next? It is the ongoing debate for markets, and it's gathering more steam after a March jobs report that seemed to raise bets for yet another interest rate hike. Next month. We get another key round of data for this data dependent central bank this week

when the latest readings on inflation come out. Ahead of that, let's bring in Dennis Gartman to get us ready for the trading week ahead, the chairman of the University of Akron Endowment Investment Committee and the former publisher of the Gartman Letter. Dennis, it's great to speak with you. As always, where would you say the FED is in this hiking cycle? Nathan always going to speak with you, especially the day after the Masters. What a great tournament that was. But

onto the most important stuff. Really very little going on, and the consensus is after Friday's non farm payroll's number of two hundred thirty six thousand, which was right on at the consensus estimation, and a revision upward in the previous month, the SET is probably going to move the overnight set funds rate at twenty five basis points higher. That may well be the last time they moved the funds rate at all for a long period of time.

If you'd have asked me six weeks ago what was the SET going to do, I'd have said we had at least another twenty five basis points in May, twenty five basis points in June, and maybe twenty five basis

points more or later in the summer. But given the banking let's use the term crisis, Given the banking crisis that has occurred over the course of the past over weeks, that's probably the equivalent of fifty basis points and increase in the overnight funds rate or the or the FEDS tighter monetary policies, given the fact that banks will probably somewhat reticent to make loans going forward, So we probably got twenty five basis points coming up at the May

meeting and that should do it, probably through the course of the year, so we'll see what happens. But that's my estimation at this point, given the economic circumstances, given the banking circumstances, and given the inflation circumstances that prevail. Are you concerned that we could see a tightening in

credit conditions? Are you seeing signs of that from banking activity at this point, it's a little too quick to say I'm seeing signs of that when I when I talk to my local banker in Tidewater, Virginia, there's a reticence on their part to be aggressive lenders of money. They're watching as I think all regional and smaller banks are probably watching there. They're being reticent. Their propensity to to be to be out looking for new loans or

to be extending loans has probably been someone reduced. But it's going to take us a month to really find out if that's true or not. We'll see it's more psychological circumstance at this point. The data is still to be gotten. Is there anything that the FED can do to curtail the potential risk for a recession if we do start to see that pullback of credit conditions. The FED has actually been doing reverses with the market and

injecting reserves back into the system. They should be taking sixty five billion dollars worth of assets out of the system, that's what they said they were going to do, but with this new movement on doing match sales, they're actually putting sums of money back into the system. The FED is very concerned about what happened with the Signature Bank, what happened with the Silicon Valley Bank, what happened with

the First Republican republic First Bank. So they've actually sort of reversed their their propensity to tighten monetary policy as as much as they worked early on, the Feed is going to be I think reticent to take rates much higher than where they are right now. Let's let's just be blunt about it. In our last minute or so here, Dennis, we do get another reading on inflation later this week and consumer and producer prices. What's your expectation there and

what could that mean for the FED? The SETS is going to look at these numbers with a with an open eye to watch to see whether the weather inflation has curtailed or not. Take a look at grain prices there down, take a look at the most noblest prices they're down. Take a look at shipping prices there down, and the propensor the The consensus estimate is that CPI will be up three tenths to four tenths or one percent. We'll see if that's that follows through later this week,

But obviously these are important numbers. The set is not going to see another employment number until after the main meetings, so the only thing they're going to have to go on is going to be the CPI and PPI numbers coming out later this week. Are you looking Are you looking for any further gains in the gold market. I'm the only thing that I have in my own account at this point. I'm long a lot of two year notes. I'm short a little bit of the stock market about

four percent. About portfolio is next short, and I'm long about five percent gold. I think gold is holding barely fairly well, we'll see if it can. It's holding right at two thousand dollars per ounce. We need to see a trade about twenty twenty five in the spot to really get things fired up on the upside. But I'm a little bit long of gold in my own account, and I actually have the universe of acronlong a little bit of gold at the same time to hedge against inflation.

Time shall tell so in our last thirty seconds here what's the trajectory for the stock market? I actually have been embarrassed since January fifth, twenty twenty one, and continue to be modestly barissed of the stock market. I think that earnings are going to be reduced over the course of the next several years. I think that the recession is probably a certainty over the course of the next several months. And I think stock prices are extremely high

relative to bond prices. I think stock prices are relatively high in technical terms. So I'm honestly, quietly, very tinily next sort of the stock market at this point. And this is from my own account. As always, good to get your perspective. Thanks for this. Dennis Gartman, the former publisher of the Gartman Letter, now chairman of the University of Akron Endowment Investment Committee. This is Bloomberg day Break 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 your podcasts. You can also listen live each morning starting at five am Wall Street Time on Bloomberg eleven three zero in New York, Bloomberg ninety nine one in Washington, Bloomberg one oh six one in Boston, and Bloomberg nine to sixty in San Francisco. Our flagship New York station is also available on your

Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus listen coast to coast on the Bloomberg Business app, serious XM Channel one nineteen, the iHeartRadio app, 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