Global business news twenty four hours a day. If Bloomberg dot Com, the radio plus mobile last and on your radio. This is a Bloomberg Business Flash from Bloomberg World Headquarters. I'm Charlie Palott. Stocks are extended, lost, extending losses amid growing speculation that the Federal Reserve sees firm and off economic growth to raise rates as soon as June. SMP five hundred indecks are racing yesterday's rally. Right now, the SMP down twenty one points, a drop of one percent.
Town Industrials down one ninety four points to decline there of one point one percent. Nastack is down sixty points, a drop of one point three percent. He old on the tenure one point seven five percent, Gold up six fifty ounce to twelve eighties seventy a gain of point five percent, and crude oil hired by seventy nine cents of arrowy fifty one now on West Texas intermediate crude. That is a gain of one point seven percent. I'm
Charlie Palett. That's a Bloomberg Business Flash. Charlie Polla, thank you so very much. Time now for the e t F Report, brought to you by Vanack Vector's e t F expect more from your munis target tax exempt income by maturity and credit quality, all with low cost et F s. Visit van k dot com slash Muni vanek access the opportunities for e t F report we return to our own Catherine Cowdery. It's a tough year for the e t F industry. That's a word from Bloomberg
Intelligence analyst Eric bel Tunis. He says flows into e t s is slowed. However, some e t F providers are doing better than others. This is the kind of year that Schwab and Vanguard live for. They are taking in se of all of the new cash going into e t F s. Val Tunas says that investors who chase performance are selling off in the midst of the market's volatility, but Vanguard and Schwab, those products go in
like clockwork. The flows go in every month, every day, so you have the both of them taking in money and all products, even products that are down. So it just shows you the long term power of of these companies. Bel Tunis says flows this year illustrate the sea change that's taking place in the financial industry from high price to low priced investments. Hedge funds and active mutual funds have seen outflows this year, while e t F has
seen inflows. That's your Bloomberg ETF report. I'm Katherine Cowdery. You're listening to Taking Stock with Kathleen Hayes and Pimp Box on Bloomberg Radio. Imagine if you had invested your money at the beginning of the year in an asset that now is higher by more than eighteen percent. I was looking at some of the fine print in the fine work done by Dennis Gartman, because Dennis Gartman has been putting together the Gartman Letter uh since nine eight
seven that I could not believe. Dennis Gartman, thank you for being with us economist publisher the Gartman Letter, joining us from Suffolk, Virginia. How are you old and tired? But all right? All right, Well that's le's stop. But that's good enough. You know. I I read your commentary, but I read it back to front um. Tell me what's going on with gold and precious metals and palladian and all that. What's going on with this? They first of all, the world suddenly does like gold in dollar terms.
What's important to understand is that the world liked gold in euro terms two years ago, had made its low then, and the world liked gold in yen denominated terms four years ago. It's it's been a demonstrative bowld market in gold predicated in other currencies, and I think one has to understand that gold is nothing more than a currency. As an old four X trader, we always used to trade dollar mark against the end yen, against the Swiss frank,
Swiss frank against the old Italian lira. You're always taught to be a spreader of one thing, a buyer of one thing, a seller of something else. And in the world of for in the world of gold trading, I think people are beginning to understand that gold really is
simply another currency. And we're beginning to understand that if gold was a bull market in the end terms four years ago, if gold was a bull market in euros two years ago, gold began to be a bull market in the dollar about four months ago, and that's starting to engender a little interest on the part of speculators everywhere. People tend to think of gold only in dollar terms, and until you've got a bull market going there, it
was hard to get a bullish enthusiasm much. But you're starting to see that, and I think you're starting to see an increase in inflationary expectations. The grains are turning for the better, Livestock is turning for the better. Clearly the crude oil market has turned for the better. So there's inflationary circumstances prevailing, which is helping to put a
bit to the gold market. See that's why we've always enjoyed talking to each other, because we are macro people, right, gold, bonds, currencies, Dennis, But but you know, the gold going up, but the dollars starting to strengthen. Two, because people are were first working comments from key Feather Reserve officials that hey, we we could raise rates, and in fact some people are talking about the fact that they will and sooner, maybe than the market expects. This has been boosting the dollar
a bit. Does that continue and if it does, what does it mean for this UH dollar rally and goals? Well, I first of all, I think that people are somewhat surprised. We're seeing weakness in the stock market to day, which I think is going to develop into something a little more difficult over the course of the next several weeks.
But the stock market began to sell off this afternoon following comments by Mr Kaplan, the the the president of the Fellow Reserve Bank of Dallas, who, although it's not a voter on the f o MC this year, I think is one of the better voices given the fact that he came out of the trading arena. He's not a PhD in economics. He's actually somebody who's had to run a fund, and I think the market tends to
pay more attention to him. And he made this to the the comment that we might well see a FED funds rate increase at the June meeting, and I suspect that that's probably very likely. So there in lies the problem with the equities market. Equities wanted to see nothing but flat rates, rates held lower for longer, and sudden there's on the table once again as an increase in rate in the June meeting. Dennis Scartman as someone that I believe I grew up watching companies leave one by
one in there in your neighborhood. I wonder if you could mix a little politics with a little investment in the financial perspective for us, well, tis what I grew up in Akron, Ohio, where back in the nineteen forties, fifties, and sixties, every tire on every car, literally every tire and every car was manufactured. There hasn't been a tire manufacturing naquenceins ninety four entire industry. The rubber industry left, good Year, good Rich, Firestone, Uniroyal, Cyberling, they were all there.
Their headquarters are still there, but their production facilities have moved elsewhere. What's interesting is it's all been replaced by hundreds of other businesses. And therein is the magic of America. Uh And instead of having six companies that had that had twenty thousand employees, there are six hundred companies with two hundred employees, and the unemployment rate and acronism is
holding nicely right at the US at average rate. We replaced everything, and that's that's what we do well here. The problem that I have and looking forward into this next election, is that we have on the Republicans, and I'm somewhat to the right of Jengis Khan politically and economically, but the Republican standard there as a protectionist, wants to protect the businesses. The business of America is actually to come up with new businesses, destroy the old, build the new,
and that's why we're great. Well, I'm gonna go too far down that road, because there are some pretty strong voices arguing these days, Dennis. It's an argument that didn't go away. But there's more and more focus being put on the dollar and whether or not it is artificially manipulated by our trading partners. And if it is, then maybe Donald Trump has a point that free trade is one thing, but fair trade is what a lot of people are saying we must have in order for this
to work for everybody, including us workers. Well, Mr Trump takes on the es the reman By. He folks who focuses on the remand as being a manipulated currency. If it is being manipulated over the course of the last decade, it's been manipulated against the Chinese, because the reman By has gotten demonstrably stronger. It's written by what from five
or sickle of actually from eight years ago. I don't have my screen in front of me, but if up dramatically, yes, the reman b is down relative to the dollar over the course of the last year and a half, but over the course of the last decade, it is up and up dramatically, and if the if the Chinese have been manipulating, then they've got manipulation in the wrong direction.
Dennis Gartman expound on the theme of demographics and Europe and what is going on because this is a problem, or is not a problem, but this is a situation that may not necessarily be so widely known about. Well, all economics derives from demographics. You cannot have a growing economy if you have a falling population. It's just that simple. You need need children, you need to have growth in
the population. And what's happening the birth rates in Europe UH, the United Nations, the u N says that unless you have two point one children for every woman in in a birth age population, the population declines. In Europe, now you're starting to get down to one point seven children for for women. That's not enough to keep the economy
to keep the population moving higher. What's interesting is in the industrialized world, the only countries that have populations that are growing are the United States, Canada, Australia, and New Zealand. What do we have in common other than the English language.
The thing that we have most in common with is immigration. UH. You have a problem in in in countries where the population growth is negative, and in places like Japan, for example, where the population growth is even more negative than in Europe. Not only is it growing negative, it is growing older by the hour. There are as I like to say, there are entire villages in Japan who have never heard of baby in the last fifteen years because there haven't
been any born. It's a very serious problem that needs to be dealt with. Certainly, we started to see the Chinese begin to deal with it when they when they ended their ludicrous one child program. At least they have on them now allowed to have two children if they ask permission. You need to have population growth, and in most of the industrialized world we have negative growth. And if it's not negative yet, it will be negative in another couple of years. It's a very serious problem that
no one talks about. Just about fifteen seconds left, but I have to ask you gold that one thousand, two or eighty dollars roughly an ounce would you buy it here? Dennis? Is it gonna move higher this dollar gold rally? Uh? Six months from now it will be higher. A year from now, it'll be higher, two years from now, it'll be higher how much. I'm not one of those people who thinks it's going to several thousand dollars. It's the trend is from the lower left to the upper right.
It's probably gonna be higher, nicely, probably six seven percent higher a year from now than it is now. Dennis Carbon, thank you so very much for joining us. It's great to have on taking stock here on Bloomberg Radio. Economist, publisher of the Gartman Letter. He's in Suffolk, Virginia. We're in Alexandri Alexander, Virginia. Very special broadcast in the Washington metro area on Bloomberg Radio.