Bloomberg, Charlie Powell, Chris Peron discussed on Balance of Power


This is a Bloomberg business live. From Bloomberg world, headquarters. I'm Charlie Powell, stalks are lower across the board with traders bracing for a key inflation reading and the start of the earnings season for clues on whether the economy is heading for a recession. All major groups in the S&P 500 are retreating with losses in Medicare mega caps like Tesla and Apple wing heavily on trading. Chris Peron is head of technical research at strategos research partners and on Bloomberg surveillance this morning. He was asked what he needs to see to convince him that we are seeing a bull trend. Urgency, people chasing moves higher. We haven't seen it yet. Now, it doesn't mean we can't see it, but we haven't seen it yet, so those are the conditions we're looking for. I don't think they're in place here. We continue to remain prudent. This is a market that bouncer over the last couple of weeks, but without a lot of momentum behind it. And on this back to work Monday, we've got a market that is lower across the board with the S&P down by 1% out falling 37 points. The Dow is down 92 a drop there of three tenths of 1% and as stack composite index is down 221 points, a drop right now of 1.9%. The ten year is up 27 30 seconds, ten year yield 2.97%, spot gold is down $7 the ounce to 1735 at decline of four tenths of 1%. While West Texas intermediate crude is down 7 tenths of 1%, one O four O 5 for a barrel of West Texas intermediate crude oil. Frontier group holdings is asked by out target spirit airlines to further delay a shareholder vote on their proposed merger saying it is still very far from winning sufficient support because of a higher offer from rival JetBlue Airways. One O two on Wall Street, time now for the market drivers report with a focus on American depositary receipts, and here's Abigail Doolittle. Thanks, Charlie, and lots of action for China, ADRs today, given the weakness in the Asian session. So let's hone in on that specific area of the ADR world. And that weakness, of course, has to do with new cases of COVID, amid a zero COVID policy. This equals a very rare one week lockdown in mad cow, Macau, so a bit of a risk off tone there. Plus Beijing find both Alibaba and Tencent again. Those tech giants. So Baba, Alibaba, that tech ADR plunging 9% Tencent another China check ADR down 3.4% our should say conglomerate ADR can do a duo down 11% neo the EV, electric vehicle car, ADR, also down sharply, 9 down 9% GD dot com and Baidu, down to 5%. So as you can see, lots and lots of weakness, but Charlie on the year up 50% and one China stock ETF has only seen in flu. So just a little bit of a cooling off of those massive games, Charlie. All right. I thank you very much, Abigail, do a little keeping track of those ADRs for us. Twitter shares are lower after Elon Musk walked away from his $44 billion deal to buy the company, setting the scene for a disruptive legal battle, and right now we do have Twitter shares down 9 and a half percent, Tesla, lower now by 6.3%. Recapping a down Monday with the S&P falling 35 points down 9 tenths of 1% the ten year yield 2.97%. I'm Charlie Palatin, that is a Bloomberg business flash. This is balance and power with David Weston. Inflation is a bigger risk because it's here. It's real, and if inflation doesn't come under control quickly, it does enormous long-term damage. We have employees who are being bombarded by these rising energy costs. Where the world of politics meets the world of business. There aren't a lot of inflation fighting policies outside of what the fed can do. The American consumer like consumers really all over the world are paying a Putin tax. Balance of power with David Westin on Bloomberg radio. The Ukraine war grinds on as the west runs low on ammunition. A hot labor market raises questions about inflation and recession and President Biden's approval rating dips even lower. From the Bloomberg interactive broker studio in New York, welcome to the second hour of balance of power. I'm David Weston. Congress returns to Washington D.C. this week with a lot on its platter and probably the last chance to get it done before those midterm elections, a 120 days from now. We welcome now, Matt Bennett, cofounder and executive vice president of think tank third way to take us through what Congress might get done. Matt, thanks so much for being back with us. We hear a lot about two things in particular. So called you seeka, which is sort of the successor to the chips act that competitives act with China, really. That is bipartisan, but doesn't seem to be making it through Congress, as well as maybe some cutback version of build back better. Is any of this going to get done? I think it will, but I think it's going to be an ugly process to get there. To your point, both of those things are kind of at the top of the agenda for both houses. Things are really complicated though. Two key democratic senators, including the majority leader Chuck Schumer, are out Schumer has COVID and senator Leahy, fell and broke his hip. And obviously with 50 50 margins missing two Democrats is a huge problem if you're going to try to do things like the reconciliation bill, which would be only Democrats. And then the other big problem in the you seek a bill is that there's an enormous difference between what the House and the Senate negotiators want and that gap doesn't seem to be closing very quickly. If a one or the other of these was passed, and I understand that's a big if. Would it make a difference in the midterm elections? I don't think it would make a huge difference. You seek a bill would provide a lot of money for chip manufacturing in Ohio that could that has become an issue in the Senate race between Tim Ryan and JD Vance with Ryan the Democrat hammering Vance over the hold up in the Bill. So I think in certain places it could make a difference. But I don't think it's going to change the fundamental dynamics of the race all that much. So you've done a lot of strategizing, particularly on the Democrat side. Give us a sense of what the situation is for the party and for President Biden right now. I saw that piece in the front page of The New York Times this morning about their poll with Siena college. That said 74% of what registered voters think we're on the wrong track as a nation. And 64% of Democrats don't think Joe Biden should be their candidate for president next time. Those are really alarming numbers. Are they not? They're not great. You know, I don't think any Democrat could

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