Covid, Las Vegas Raiders, John Gruden discussed on Bloomberg Daybreak

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A weekend of major disruptions both Southwest Airlines and the pilot union deny reports of a sick out the protest the company's COVID-19 vaccine requirement for all employees Las Vegas Raiders head coach John Gruden has stepped down following emails containing racists homophobic and misogynistic comments In Monday Night Football the ravens beat the colts in overtime 31 25 Major League Baseball the Red Sox advanced to the AL championship series by knocking out the league's best team in the division series Tampa Bay Boston one 6 5 to win the series three games to one The Giants have a two games to one lead in their NLD San Francisco shut out the Dodgers one zip Global news 24 hours a day on air and on Bloomberg quick take powered by more than 2700 journalists and analysts in more than a 120 countries on Michael Barr this is Bloomberg John Michael thank you It is coming up on 5 20 on Wall Street We're live from the Bloomberg interactive broker studios This is Bloomberg daybreak Another brick in the wall of worry Investors spreading that rising energy costs are going to keep inflation elevated Let's get you set up for the trading day right now with Daniel Morris chief market strategist at BNP Paribas asset management I guess the ultimate fear seems to be rising prices and slower growth What kind of threat is that from where you sit Well certainly it's going to be the key thing that investors are going to be looking at when we go into the earnings season If you think back when we had the initial increase in near term inflation expectations and then those started to roll over as we initially believe this transitory narrative Even though they've come down a bit from the initial highs they stayed at relatively elevated levels So clearly less temporary than we had hoped for And now we're going to want to see how much impact has that had on profitability for corporations So I think one reason we're seeing so much volatility in the markets is it's going to be I guess as it always is very news dependent And if we get guidance from companies more concerns about the outlook about margins I think we're likely to see for the weakness in the markets but if on the other hand we get the message that they're able to pass through some of the price increases generally speaking at least for profitability that's going to be supportive Well what's your view or a company what's the impact on margins do you suppose It depends a lot on the sectors if you number one look at how equities have performed when you've had this margin squeeze It really depends sometimes equities suffers Sometimes they go up and it depends a lot of course what the broad broader growth environment is What you see more though is better and worse performance depending on the sector So number one you see technology holds up well when you're in this type of environment which really shouldn't be surprising because with the high margins even if they are squeezed a little bit it's not going to make that much difference for profitability You also see industrials You see materials better than other sectors in terms of the ability to pass through those price increases.

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