Yellen Wraps China Talks; Israel Preps Future Operations; Total Eclipse

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Good morning.

I'm Nathan Hager and I'm John Tucker. Here are these stories we're following today.

Man.

We'll have more on the markets John in just a minute, but we begin with US China relations. Treasury Secretary Janet Yellen has just wrapped up four days of talks in China. For much of her trip, Yellen's been busy scolding China about what Washington views as excessive investment in manufacturing to make up for a troubled property sector and weak domestic demand. But at a news conference this morning, Yellen said relations between the US and China are improving.

It's undeniable that the US China relationship is on a stronger footing today than this time last year.

Still, Secretary Yellen warren the US would sanction China's banks and exporters if they help Russia in the war against Ukraine.

I reinforced that any banks that facilitate signific and transactions to channel military or dual use goods to Russia's defense industrial base expose themselves to the risk of US sanctions.

And Treasury Secretary Janet Yellen announced new talks will get underway next week with a meeting between two US China working groups in Washington.

And sticking with geopolitics, Crude oil is declining as we start a new trading week. It's off a five month high after Israel said it would remove some troops from Gaza. Israel did say the forces would recuperate and prepare for future operations, including an offensive. Von Rafa checking oil right now, brand the international benchmark down sixty nine cents of barrel, still above ninety ninety forty eight a barrel.

And John is Israel apparently regroups in Gaza. One of President Biden's key allies in the Senate says the US should not let up when it comes to weapons support. Democratic Senator Chris Coons of Delaware made the case to Fox New Sunday host Martha McCallum.

It's important that we cantinue to show strong support for the defense of Israel, that we continue to support the Iron Dome and other ballistic missile defenses that we've jointly developed, and that we make it clear we will defend Israel against any Iranian proxy attack or any direct asculiar One.

And Delaware Senator Chris coon said he disagrees with House Democrats who have called for withholding weapons transfers until an investigation is complete into the air strike that killed seven World Central Kitchen.

Aid workers in Gaza.

And back here in the US, the day of the total eclipse of the sun is finally here, and Bloomberg's ad Backster reports it certainly caught the nation's attention.

The several minutes of daytime darkness will follow a path up through Mexico, the US and in the Canada, depending on where you are, three to four minutes for some an economic bonanza. One of those places the northeast of the US. New York Governor Kathy Hochel says, along with all the glory, though, we are.

Warning everyone the roads can only handle so much and works expecting a high high volume of traffic before and after the event.

And of course the perfunctory warning by now don't look at the sun without the correct protection. ED Baxter, Bloomberg Radio.

I guess it always bears repeating, Thank you, Ed. Now we turn to the markets and the economy. Investors are preparing for a busy week that includes infleetion data and the start of the first quarter earning season. Last Friday's jobs numbers exceeded expectations for a fifth straight month, reinforcing the Fed's view of being patient about easing interest rates. Here's Richmond FED President Thomas Barkin.

When the economy is as strong as it is, it's hard to feel urgency on taking rates down. Are you going to see a dramatic weakening in the economy as I've suggested the demand pestmits might see, or are you going to see strength three hundred fifty three thousand jobs a month like we apparently saw last month.

Richmond FED chief Thomas Barkin's patient stance on rate cuts was echoed by several more FED officials last week.

And former Treasury Secretary Lanry Summers says the surgeon March payrolls illustrates that the FED is well. Often it's an estimate of where the neutral interest rate is. He's cautioning against any move to lower rates in June.

Saying we don't need to know what the neutral rate is is like saying you should drive your car on feel without looking at the speedometer. It is just a mistake. There's no way to judge what policy is without knowing what would be a neutral policy.

Former Transity Secretary Larry Summers, adding that the right thing to do is quote stick where we are for considerably longer. Here his full conversation with David Weston on the Bloomberg Wall Street podcast that's available on Apple, Spotify and anywhere else you get your podcasts.

And definitely got to listen to the Wall Street Week podcast. John Turning into company news, earning season kicks off this week with financials, we get a pre you from Bloomberg's Charlie.

Pellett Friday, It's JP Morgan, Chase City Group, and Wells Fargo. The reports come as US stocks trade near records Monamaha jan Is, senior investment strategist at Edward Jones.

Broadly, our call on market leadership broadening beyond large cap technology here in the US is driven by the fundamentals around earnings growth we think will broaden this year beyond just the large cap technology or growth parts of the market.

Also this week, we hear from Delta Airlines, Fast and All and Constellation Brands in New York Charlie Pellett Bloomberg Radio.

All right, thanks Charlie, and turning overseas to Asia to our exclusive conversation with HSBC CEO Noel Quinn. Quinn's hosting the bank's three day inaugural Global Investments Summit in Hong Kong. Despite a slowdown and continued economic concern in China, Quinn tells Bloomberg that he sees opportunity in the mainland and the broader region.

We've got a really strong wealth management business here in Hong Kong. I want an equally strong wealth management capability in mainland China, in Singapore, for US here and in India. And what I really want is a platform of four strong pillars of wealth management and in wealth management, I include insurance, asset management, private banking, and therefore our acquisitions are being tended to be acquiring products or distribution capability in those markets.

HSBC CEO Nol Quinn also tells Bloomberg the bank continues to perform extremely well across several areas as it readies to report first quarter earnings later this month, and that brings us to five oh seven on Wall Street. Time down for a look at some of the other stories making news in New York and around the world. We say good morning to Bloomberg's Michael barn.

Good morning, John A. Scare a board at Southwest Airlines jet taking off from Denver. Part of the engine cover ripped off. Southwest flight thirty six ninety five. Euston bound flight with one hundred and forty three people on board, was forced to make an emergency landing yesterday. It was diverted back to Denver International Airport just after takeoff. Pilot Steve Ganyard spoke to ABC.

These lightweight aluminum coverings that you see are essentially like the hood of your car. They allow mechanics to open up the area around the engine itself for it, to inspect it and to do maintenance on it.

The FAA is investigating the incident. President Joe Biden's alternative student debt relief plan could forgive loans for as many as twenty six million Americans. The far reaching initiative will likely be tested by the same challenges in his original program struck down by the Supreme Court. The measures would apply to borrowers who meet certain criteria, including people whose debt exceeds their original principal amount and those who qualify

This would be the largest credit card merger on record, and usually when there's consolidation, the consumer pays the price.

Senator Schumer says lawmakers want to know about the potential increase in fees and what it means for the marketplace. Global news twenty four hours a day and whenever you want it with the Bloomberg News. Now, I'm Michael Barr, and this is Bloomberg. John.

All right, Michael, thank you, and time down for the Bloomberg Sports Update. Damn for that. Good morning, John Steshower.

Good morning, Johnson. Stunning news from college basketball. Just as Yukon and Purdue gets set to play for the national championship tonight in Phoenix, John Calipari is said to be finalizing a deal to leave his job as the coach at Kentucky to take over at Arkansas. Calipari is sixty five. He's in the Hall of Fame. He's been at Kentucky since two thousand and nine, built up powerhouse there, although they haven't had nearly that much success in recent years.

Yeah, I'm sad we lost this game, but I'm also so proud of myself. I'm so proud of my teammates. I'm so proud of this program. There's a lot to be proud of. But you know, there's gonna be tears. It is sad that this is all over and this is the last time I'm gonna put on an Iowa Jerseys.

Next stap the WNBA for her. Sunday wins for the Mets Yankees, Nickson rangers the Mets three one at Cincinnati. Sham and I and four relievers team on a three hitter. The Yankees wrote at John Carlos Stanton thirty eight Grand Slam to an eight three win at the Stadium over Toronto. Yanks are now eight and two. Nixon Milwaukee trailed by eleven and a half time, came back beat the Bucks one twenty two to one. On nine Jalen Brunson scored forty three Rangers at the Garden a four goal third period

All right, thanks a lot, John, And futures indicate a higher lower open on Wall Street down Futures down twenty six, SMP Mini futures six points lower, the nansdeck futures down fourteen.

Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak. Good morning up, Nathan Hager.

We are seeing some modest losses in equity futures this morning at the start of a very busy week, including more inflation data, the start of first quarter earning season, and a rate decision from the European Central Bank this week. Let's get you set for the trading week ahead. We are joined by Dennis Gartman, the chairman of the University of Akron Indowment Investment Committee and the former publisher of

I have been modestly bearished, let's call it neutral to slightly bearish of stocks for quite some period of time, being surprised by the strength that we've seen in the equities market. For a while, I thought it was almost comically laughable that it was a month ago that the consensus was we'd have four to five cuts in the overnight SAD funds rate. Now we're down to one or

God to say being bullish on gold certainly has been a winning bet for the last couple of weeks. Here may how do you explain this run that we've seen in gold. I mean, it's been trading in record territory.

It is in the record territories. It's made new new highs this morning. And I blame, for lack of a better term, I blame the strength upon on golden to a central bank buying. We've seen a lot of central bank buying, especially by the Chinese, excuse me, over the course of the past several months, and that's begun to

Dennis, We've also been seeing a pretty strong run in the oil market as well. How much does geopolitics play into the market outlook?

And we got about a minute left.

First of all, I've been very bullish of gold or of crude oil until about it three or four days ago, when the term structure began to change. Normally, in a bull market in crude oil on up days and down days, the front month gains upon the second third, fourth, and fifth contracts. Going back, the vaquidation widens, and what we've seen is the market has gone higher, the vaquidation has begun to narrow, which I think is disconcerting. So I was quite bullish of crude oil and now I'm neutral

All right, well, we'll see where commodities and risk assets go as we make our way through this week. Thank you Dennis, as always a Dennis Gartman there with us this morning, the chairman of the University of Akron and down An Investment Committee and the former publisher of the Gartman Letter. This is Bloomberg Daybreak today, your morning brief on the stories making news from Wall Street to Washington and beyond look.

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I'm John Tucker. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg day Break