Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
We begin with politics around the world. A defiant Vladimir Putin says Russia will not be stopped from pursuing its goals. That's after Putin swept to a record victory in a presidential election whose outcome was predetermined. Putin, who is seventy one years old and had no credible opponent, spoke after results showed him with more than eighty seven percent support from voters, and he now gets another six years as president. And we get more from Bloomberg's Rosalind Matheson.
For him, having those two numbers that he can talk about, which is the overall win rate for him, but also the turnout across Russia is certainly something that he is touting.
But his speech itself was quite defined again talking to those messages he's been saying for a while to people inside Russia, the sense that Russia is under siege from the outside, fundamentally under attack from the West, and that he's the only person who can help Russia stand proudly again those words that he said, people want to suppress us.
They've not succeeded. They won't succeed now.
Bloomberg's Ros Mathieson says turnout from three days of voting was more than seventy four percent. That's the highest since Boris Yeltsen became president in nineteen ninety one after the collapse of the Soviet Union.
Now Nathan the latest on the war in the Middle East. Israeli Prime Minister Benjamin Nettan Yeah, who is pushing back on Senate Majority Leader Chuck Schumer's call for an Israel election, And Bloomberg's Ed Baxter has the story.
Matt Yahoo first says the aid issue to Gaza is complicated because when it does get in, Hamas salutes it and uses it for its own gain. And on CNN he says majority of Israeli support the government anyway.
I think what he said is totally inappropriate. It's inappropriate to goe to a sister democracy and try to replace the elected leadership there. That's something that Israel Israeli public does on its own, and we're not a banana republic.
Ntt Yahu also says its forces are trying to be careful, but that the move to remove Hamas will continue Ed Baxter Bloomberg Radio.
All right, Ed, thank you. Sticking with geopolitics, Secretary of State Anthony Blincoln is warning the disinformation is threatening this year's free and fair elections around the world.
As authoritarian and repressive regimes deploy technologies to undermine democracy and human rights.
We need to.
Ensure that technology sustains and supports democratic values and norms.
Speaking in South Korea at the Third Summit for Democracy, Secretary Blincoln seid authoritarian governments like China and Russia will try to leverage generative AI technologies to meddle in democratic elections this year, including in the US and the UK.
Well another political news Nathan Former President Donald Trump held a rally over the weekend in Dayton, Ohio for Republican Senate candidate Bernie Moreno. Threatens to impose one hundred percent tariffs on Chinese cars made in Mexico if he's elected. He went on to see this, now.
If I don't get elected, it's going to be a bloodbath for the whole That's going to be the least of it.
It's going to be a blood bath for the country.
That'll be the least of it.
Democrats were quick to s he's on those comments. Former House Speaker and Nancy Pelosi reacted on the CNN State of the Union, we just have to win this election. Because he's even predicting a bloodbath.
What does that mean He's going to exact a bloodbath.
There's something wrong here. A Republican Congressman, Mike Turner says the former president was not predicting political violence.
The president's statements concerning bloodbath were about what would happen in the auto industry if actually the Chinese manufacturers who are coming into Mexicogo were permitted to import into the United States.
Congressman Mike Turner made those comments on EBC's This Week Heard Every Sunday on Bloomberg Radio Now.
Karen Too a Bloomberg News exclusive. Apple is in talks to build Google's Gemini artificial intelligence engine into the iPhone. Sources say the two companies are in active negotiations to let Apple licensed Gemini Google set of generative AI models to power some new features coming to iPhone software this year. Bloomberg technology reporter Mark German says the deal would shake up the artificial intelligence world.
This would be a blockbuster agreement that has the potential to transform this still growing AI industry. Apple has been working on several new AI tools and services for iosaighteen effects of iPhone software update. Those are going to be based on Apple's homegrown AI models that Apple needs a partner for generative AI, that is the AI that all of us have been talking about for months.
Bloomberg's Mark German says the deal would expand the two company search partnership as well. For years, Google's paid Apple billions to make its search engine the default option in the Safari web browser on iPhone and other devices. Shares of Alphabet are up more than two percent in the early trade, while Apple is hired by a half percent.
Well, we turn to the economy now, Nathan the Fed. It leads a busy week for global policy decisions, and we get a preview from Bloomberg's Michael McKee.
It's a big week for central bankers and those who invest on them. The Bank of Japan is the main event. Its governors have been inching ever closer to raising interest rates for the first time since two thousand and seven. While they may not go that far this week, they could end the purchase of stockytfs for their balance sheet or suggest the end of yield curve control as a rate strategy. Either could have a major impact on the
en dollar rate. The Fed isn't going to move rates, but investors will be watching to see if US Central Bank officials increase their inflation forecasts or decrease the number of rate cuts they put into their dot plot. The Bank of England is also on hold. Growth has picked up an inflation come down some, but markets don't see an immediate rate cut on the horizon. Michael McKee, Bloomberg Radio.
All right, Mike, thanks, We got some new economic data out of China. Industrial output and investment grew more strongly than at the start of the year. Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong.
Factory output rose seven percent in January and February from the same period last year, and that was faster than an estimate of five point two percent. Fixed asset investment grew four point two percent, also better than forecast. Now, those numbers suggest the economy is gaining some traction. On the other hand, consumer spending is proving somewhat more elusive. Retail sales up five and a half percent, roughly in line. Consumer confidence is still weighed down by uncertainties over income
in Hong Kong. Brian Curtis, Bloomberg Radio.
All right, Brian, thank you, and it's time now for a look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael Barr. Michael, good morning, Good morning Karen.
Today the Supreme Court, we'll hear arguments in the National Rifle Association versus the Vello. The NRA alleges that the New York State Department of Finance Services violated the group's right to freedom of speech by urging banks and insurance companies to cut ties with the group. The question is whether a state government regulator can tell state banks and insurance companies not to underwrite insurance contracts for members because the risks presented by school shootings and the bad pr
that it brings. One person is dead, two other people are in stable condition after shots were fired in Jacksonville Beach, Florida. Jacksonville Beach Mayor Christine Hoffman, this.
Is player's weekend at Saint Patrick's Day. It's spring break. We have a lot going on out here, so the fact that we had a couple of bad actors out here that really made a dangerous situation for everyone is extremely tragic.
Police say they are looking for multiple suspects after one or more of the shooters opened fire in a crowded outdoor area. The White House is urging the Senate to pass a bill that would force the sale of TikTok. The measure passed in the House with support from lawmakers and both parties. TikTok is owned by Chinese parent company
bike Dance. Supporters of the bill say it would protect the data of TikTok's more than one hundred and fifty million users in the US from Chinese Community Party influence. But Democratic Congressman Rocana, who represents Silicon Valley and voted against TikTok bill, said concerns about CCP influence are misguided.
Bike Dance is a Chinese company. It has sixty percent international investors, including KKR and General Atlantic. Three of the five board members are Americans. They have data that currently Oracle is managing in Texas.
Congressman ConA spoke on ABC's This Week Heard Sundays on Bloomberg. The Biden administration is rolling out an executive order to strengthen women's health research standards across federal agencies. The National Science Foundation and Department of Health and Human Services are instructed to research ways to use artificial intelligence toward advancing women's health research. It also directs the HHS to expand data collection on women's midlife health and mental clause related research.
Australians will soon be able to enjoy twenty six weeks of paid parental leave. Trade Union's president Michelle O'Neil SAIDs it's a win win situation.
If you're able to stop work and receive pay, you're more likely to stay connected to your workplace.
The new deal will be gradually introduced over the next three years. Global News twenty four hours a day, whenever you want it with Bloomberg News Now. I'm Michael Barr. This is Bloomberg.
Karen, Sorry, Michael, thank you. It's time now for the Bloomberg Sports Update, brought to you by Tri State Audi, and for that we bring in John stash Hour. John, good morning, Good morning. Karen.
Thrilling finished to the players Championship if any champs. Scottie Scheffler went out early, caught fire shot sixty four, got to twenty under part to take the leader, then waited to see if anyone could catch them. Three golfers went to a seventy second hole, one shot behind it in a birdie. All three settled for parts, including Wyndham Clark, who's pot was seemingly in the hole, and then it was in Scheffler, the first ever repeat winner.
I needed some help obviously going in today if I wanted to win the tournament, and I felt like if I could go out and shoot a good, good round on the front nine, I could put myself in it as long as you know, one of them didn't shoot you know, four or five hundred on the front as well. And so the birdie on nine was huge, and you know, I was right right in the tournament the whole back nine.
Meanwhile, a meeting planned for today is sit down between the PGA Tour players board that includes Tiger Woods and the Saudi Yassir Al Ramayan, who heads the fund that becks the Live Tour. That deal struck several months ago between the two tours not yet official. Tennis Carlos alcaraz Strait set in Dadil Medvedev won at Indian Wells for the second straight year. Igishyontec took the women's finally, and CAA tournament field is set defending champion yukon the top
overall seat. Saint John's didn't make it. The Bubbles shrunk as four conference tournaments were won by teams unexpectedly that hurt the Red Storm, who then chose not to play the consolation in it at the Garden Rangers with the Islanders five to two with five different goal scorers. The Devil's lost three one at Vegas, Nets lost in overtime at San Antonio. The rookie Victor Weimbinyana scored thirty three at fifteen rebounds. The Celtics crushed the Wizards. Nick's played
tonight at Golden State Nicks for two and zero. On this road trip, Jalen Brunson has scored forty five and forty two points. Yankees lost the Red Sox twelve to six. The Sock scored nine runs in the first inning. John Stash Edward Bloomberg Sports.
I want to get you set for a trading week that'll be dominated by central bank policy decisions around the world, not the least of which coming from the Federal Reserve. We're joined now by Lori Calvacina, ahead of US Equity Strategy at RBC Capital Markets. Great to speak with you as always, Lourie. It's going to be a very busy week, but I want to get right first to your latest note looking at energy stocks as potential outperformers in this rally. Can you get into that a little bit for us?
Sure, So thanks for having me as always, And look, I think there's just a lot going on in the energy space right now. Is obviously got some heightened geopolitical tensions and the backdrop the ail trices on the move. But when I put that aside and just look at our work, you know, the thing that's been coming up in my meetings there the past week is just there's all this worry about the said and inflation being sticky out there again, big topic of conversation.
How do you play that well?
Energy is one of the sectors that tends to actually outperform when ten year yields are rising. So we left our overweight on this year. It was somewhat of a controversial decision, but we said at the time that we really viewed it as an inflation hedge in our portfolio.
We like the enthusiasm, our analysts, we like the evaluations, and so it's interesting to see you're really starting to see this sector move all of a sudden, and it's really kind of functioning in our portfolio, is the way we intend it to the start the year in case this inflation risk came back.
Do you think then that energy could be a leader for the rally, that we could see a shift away from the megacap tech names that have dominated for the last several months.
So I think you have to look at both sides of that trade, and I do think that energy as a natural beneficiary if that rotation trade, you know, does sort of resume in a sustainable way. And there are signs in the data that that rotation trade is really trying to get started again, not quite with the same kind of power that it had back in November and December, but we are seeing, you know, in a lot of different quant metrics that we look at, that you're starting
to see some shift away. And I think energy is not really enough on its own to sort of absorb all that market cap. So I think there are things like small caps, you know, industrials has also been doing well of late. Financials is another one to keep an
eye on. There's a lot of market cap there. But generally, I think the market is starting to respond to the idea that economic expectations are coming in better than expected GDP forecasts up to two point one percent for this year, and that really should pull people out of you know, kind of more of the defensive secular growth names to some extent, and into more cyclical areas of the market. Energy would be in that bucket, yeah.
And that takes us to the policy decision and the look ahead to further Federal Reserve policy making for the rest of this year. Are you thinking that the Fed is going to push back even further on expectations that the first rate cut could come even later in the summer.
So our team is still in the June camp, and you know, that has been in line with a lot of the messaging that we've seen from the FED with for quite some time. So we'll see, of course what the commentary shows. You know, I think that the idea of kind of March cut, you know that was so popular to come into the really sort of mystified me where that was coming from but that's obviously kind of undoing.
That view has been a big focal point for investors this year, so our team still thinks they're going to move in June. I think, you know, the commentary is always of interest to me in terms of just the characterization of inflation and the economy. But we'll, you know, we'll see how the market reacts. I think there's so much anngst that's already been baked in.
Just to talk a little bit more about that potential market reaction, what could the messaging from the FED do when it comes to your thinking about large cap versus small cap stocks, which, of course small cap is so sensitive to what happened in the economic.
Data now, I think that's important. There are a few cross currents for small caps going on now right because the hot economy tends to benefit small caps. They do tend to be more cyclical and just sort of more exposed to those hopes and fears around where the domestic
economy is headed. But at the same time, small caps have really needed rate cuts to kind of get their stabilization in versus large cap Historically, we two tend to see small caps out perform when the first cuts come in and they've pre traded a lot of that back
in November and December. So I think the cuts are the kind of first issue, but I do think the economic descriptions matter as well, and so for small caps to work, we've really got to see the needle threaded where you get the cuts and the economic expectations continue to improve.
This is Bloomberg day Break Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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