Bloomberg The Open 03/26/2024

MANUS: FROM NEW YORK CITY, THE MELT UP HIS BACK ON. HAVE THE ITALIANS REACHED OUT? MONTH FIVE IT WE CAN CLOSE OUT. COUNT DOWN TO THE OPEN KICKS IN RIGHT NOW. ANNOUNCER: EVERYTHING YOU NEED TO GET SET FOR THE START OF U.S. TRADING. THIS IS "BLOOMBERG THE OPEN," WITH JONATHAN FERRO. ♪ MANUS: COMING UP, EDGING HIGHER. FUTURES TRADE UP AS THEY DIGEST THE LATEST DATA AND FED SPEAK. PRESIDENT BIDEN GAINING GROUND IN KEY STATES. DISRUPTION ON THE EAST COAST AFTER A BALTIMORE BRIDGE COLLAPSES. WE BEGIN

WITH THE BIG ISSUE. HAVE WE REACHED RATIONAL EXUBERANCE? >> WE ARE SEEING SIGNS OF, YOU KNOW, THE WALL OF WORRY HAVING BEEN COMPLETELY DISSOLVED. DOUBLING IN THE COURSE OF THREE OR FOUR DAYS. INCREDIBLE BETTING ON THE NASDAQ RALLYING A FURTHER 33% AFTER ALREADY RALLYING 30% SINCE THE OCTOBER LOW. ALL THESE THINGS SAY THERE IS A FEELING THE MARKET IS INVINCIBLE. MANUS: INVINCIBILITY. BEAUTIFUL THOUGHT. BRIAN LEAVITT WRITES THIS THIS MORNING. "I SPENT MUCH OF MY CAREER EMPLOYING INVESTORS TO MANAG

E THEIR EMOTIONS. I, AS MUCH AS ANYONE KNEW THAT BREAKING FROM INVESTMENT PLANS AT AN OPPORTUNE TIMES HAD TYPICALLY COST INVESTORS DEARLY." BRIAN JOINS US NOW ALONGSIDE ANDERS PEARSON. THIS WAS ON THE MARKET WAS TUMBLING OUT OF BED. YOU WERE EXCEPTIONALLY CAUTIOUS AND WORRIED. YOU WERE SO CLOSE TO PRESSING THE SELL BUTTON. HERE WE ARE IN A EUPHORIC MARTIN THAT IS RISING AND RISING. THERE IS WEAPONIZED FOMO. WHAT IS YOUR EMOTION TELL YOU KNOW ABOUT MARKET PARTICIPATION FOR YOU? BRIAN: MY EMOTION

TELLS ME THAT IN MY VIEW SOME EP CONFLATION, PEAK INTEREST RATES TEND TO BE GOOD FOR STOCKS OVER SUBSEQUENT YEARS. IF YOU ARE LOOKING AT NEAR-TERM INDICATORS OF SENTIMENT, IT MIGHT SUGGEST THINGS ARE A LITTLE BIT TOO BULLISH OR LITTLE TOO OPTIMISTIC IN THE SHORT-TERM. MARKETS ALWAYS TEND TO HAVE SOME PULLBACKS IN A GIVEN YEAR. I COME BACK TO THAT PRINCIPLE THAT INFLATION IS BEYOND US. IT PEAKED MONTH AGO. THE FEDERAL RESERVE IS GOING TO BE EASING AND NORMALIZING THE YIELD CURVE. THAT TENDS TO BE

A GOOD BACKDROP FOR EQUITIES AND CREDIT. MANUS: IT HAS PEAKED BUT IT IS STICKY. ANDERS, GOOD MORNING. SOME PEOPLE SAY THERE'S AN IRRATIONALITY IN CREDIT. WHAT YOU SAY? ANDERS: I WOULD ECHO WHAT BRIAN SAID. SIMILAR TRENDS ON THE CREDIT SIDE. MOMENTUM IS HOLDING UP WELL. FOR MOSTLY GOOD REASONS. FUNDAMENTALS ARE HOLDING UP QUITE WELL. I THINK WE ARE FINDING A LOT OF INVESTORS LOOKING AT THE CREDIT MARKETS AND LOOKING AT YIELDS. THEY ARE VERY ATTRACTIVE. IF YOU LOOK AT INVESTMENT GRADE OVER 5%, HI

GH YIELD CLOSE TO 8%, THOSE ARE ATTRACTIVE INCOME LEVELS. WHILE WE CAN ARGUE THAT SPREADS ON THE CREDIT SIDE HAVE BECOME A LITTLE MORE IN THE FULLY VALUED RANGE, AT THE SAME TIME MOMENTUM CONTINUES TO BE BEHIND US. FROM THAT PERSPECTIVE WE COULD SEE IT CONTINUE FOR A BIT LONGER. MANUS: WE WILL DIG INTO THE PREMIUM IF 8% IS ENOUGH AT 5.25% AND MAYBE THE RISK OF NO CUTS. LET'S TALK ABOUT THE FED SPEAK THIS WEEK. THE LATEST FROM THE FED GOVERNOR LISA COOK. >> THE RISKS TO ACHIEVING OUR INFLATION AN

D EMPLOYMENT GOALS ARE MOVING INTO BETTER BALANCE. THE RISK OF EASING MONETARY POLICY TOO SOON OR TOO MUCH IS THAT IT COULD ALLOW ABOVE TARGET INFLATION TO BECOME ENTRENCHED AND HALT THE PROGRESS WE HAVE SEEN. MANUS: A NOTE OF CAUTION FROM MS. COOK. MIKE MCKEE IS WITH US. TOOK A LITTLE HEAT OUT OF THE EQUITY MARKET IN THE FIRST INSTANCE. GIVE US YOUR TAKE. MIKE: A LITTLE BACK TODAY. WE ARE ALL DATA-DEPENDENT AT THIS POINT, INCLUDING THE FED. DURABLE GOODS ORDERS CAME IN STRONGER-THAN-EXPECTED. U

P 1.4%. CAPITAL EXPENSE, NONDEFENSE, EX-AIR GOES INTO GDP AND ALSO STRONGER THAN ANTICIPATED. SHIPMENT WERE DOWN. WHAT DOES IT TELL US ABOUT BUSINESS SPENDING AND THE ECONOMY? A BIT OF A MIXED MESSAGE. THE ONE REASON WE SAW A BIG GAIN AND DURABLE GOODS WAS BOEING. THEY REBOUNDED A LITTLE BIT IN FEBRUARY, SELLING 15 AIRCRAFT. THAT IS BOEING. THAT IS THE BOEING AFFECT. YOU CAN SEE HOW VOLATILE IT IS WHEN BOEING ORDERS COME IN AND OUT. THAT IS WHY WALL STREET DOES NOT PAY A LOT OF ATTENTION TO THE

HEADLINE. IN GENERAL A LITTLE BIT OF STRENGTH, WHICH MEANS THE FED HAS TO DECIDE WHAT IT'S GOING TO DO. THERE IS A DIFFERENCE NOW, A SPLIT ON THE FED. WE WILL SEE IF IT CLOSES AS THEY GET CLOSER TO THE MAY MEETING. RAW FEEL BOSTICK REITERATED THE ONE CUT THIS YEAR THEME. HE SOUNDED IT ON FRIDAY, FOLLOWED BY AUSTAN GOOLSBEE FROM CHICAGO SAYING HE THINKS THREE CUTS ARE PROBABLY THE MOST LIKELY THING. LISA COOK COMING DOWN THE MIDDLE SAYING WE JUST NEED TO BE CAUTIOUS. SHE DID NOT TAKE ASIDE ONE WH

ERE THE OTHER. IT LOOKS LIKE AT THIS POINT THE FED IS CONFUSED AS EVERYBODY ELSE ABOUT THE ECONOMY AND WHERE IT’'S GOING. FORTUNATELY, THEY DON'T HAVE TO TRADE DAY-TO-DAY. MANUS: THERE IS A TRIFECTA. YOU CAN TAKE WHATEVER PORTION OF THE DINNER MENU YOU WANT. THANK YOU VERY MUCH, MIKE MCKEE. ANDERS PEARSON, BRIAN LEAVITT. THERE IS A NON-AND CONSIDERABLE AMOUNT OF DOTS AT TWO CUTS AND BOSTICK VOICING ONE CUT. YOU ARE DUG IN AT THREE. WHY? ANDERS: OUR BASE CASE IS WE WILL HAVE THREE CUTS THIS YEAR.

OUR TAKE IS THAT POWELL IS QUITE KEEN TO GET GOING AT SOME POINT. OUR VIEW IS IT WILL BE THIS SUMMER. DATA DEPENDENT IF IT IS A JUNE OR JULY TIMEFRAME. OUR VIEW IS POWELL WANTS TO RIP THE BAND-AID OFF AND GET GOING. FOR NOW THREE CUTS SEEMS LIKE THE MOST NATURAL APPROACH TO KEEP THE BALANCE GOING. I THINK INVESTORS GET A LITTLE CARRIED AWAY AROUND WHAT WILL HAPPEN. WE COULD SEE THEM TAKE A PAUSE IT SOME POINT. WE DO EXPECT A SUMMER TIME FRAME THE NATURAL FIRST STEP FROM A CUTTING PERSPECTIVE. M

ANUS: IF WE TALK ABOUT THE TRIGGERS FOR A PAUSE WE HAVE YET TO SEE ANYTHING REALLY CAUSE A PAUSE. 500 BASIS POINTS IN HIKES. IT IS A STRONG GROWTH ECONOMY. ALL OF THE BRICKS ARE THERE FOR A STRONG ROBUST U.S. EXCEPTIONALISM. TRADING AT 23 TIMES EARNINGS OR THEREABOUTS AT THE MOMENT. HOW MUCH MORE ROAD HOW WE GOT TO TRAVEL? BRIAN: I WANT TO MAKE TWO POINTS. THE FIRST IS AROUND THE IDEA OF CUTS. IT'S ALMOST AS IF WE WORRY IF THERE'S ONLY ONE CUT, THAT IT WILL BE A MAJOR CHALLENGE FOR THE MARKET. T

HAT JUST MEANS WE HAVE A RELATIVELY STRONG ECONOMIC BACKDROP WHICH WILL BE GOOD FOR EARNINGS. THE DENOMINATOR IN THE VALUATIONS YOU SPEAK ABOUT. ON THE MULTIPLES OF THE S&P 500, THEY ARE ELEVATED COMPARED TO HISTORY. A LOT OF THAT IS CONCENTRATED IN THE TOP 10 NAMES. MANY OF WHICH WHO HAVE NOT SEEN VALUATIONS GO UP ALL THAT MUCH EVEN THOUGH THEIR PRICES HAVE GONE UP BECAUSE EARNINGS HAVE DELIVERED. IF YOU LOOK AT THE AVERAGE S&P 500 COMPANY OR THE OTHER 490 NAMES, THEY GENERALLY TRADE IN LINE WI

TH LONG-TERM AVERAGES. IF YOU CONSIDER THE EARNINGS YIELD ON THE BROAD MARKET AND COMPARE IT TO A 10-YEAR TREASURY RATE IT'S PRETTY MUCH ON PAR. IT SUGGESTS STOCKS ARE NEITHER EXPENSIVE NOR CHEAP TO BONDS. I WOULD NOT BE OVERLY CONCERNED ABOUT VALUATIONS. THEY HAVE NEVER BEEN A TIMING TOOL ANYWAY. AGAIN, BACK TO THAT POINT, THE AVERAGE S&P 500 STOCK IS NOT PARTICULARLY OVERVALUED. MANUS: ANDERS, ONE PIECE THAT CAME TO MY ATTENTION THIS MORNING WAS LARRY FINK. I HEAR YOU SAY THAT I CAN GET 8%, PL

US 5% ON INVESTMENT GRADE. 8% ON HIGH-YIELD. LARRY FINK REALLY GRASPED THE ZEITGEIST THIS MORNING IN A NOTE. "IT IS MORE THAN I CAN EVER REMEMBER, MORE LEADERSHIP PAYING ATTENTION TO AMERICA'S SNOWBALLING DEBT SCENARIO. A BAD SCENARIO IS SOMETHING THAT COULD EVOLVE -- AKIN TO JAPAN IN THE 1990'S. WE ARE NOT A DEBT CRISIS. IS IT INEVITABLE? NO. AT SOME JUNCTURE SOVEREIGNS WILL FACE A HEADWIND. DOES THAT COME INTO YOUR THINKING AT ALL? ANDERS: YEAH. WE WILL SEE THAT FROM THE CBO SIDE AS WELL TO WH

ERE THINGS COULD BE GOING GOING FORWARD. WE WILL CERTAINLY DEBATE THAT QUITE A BIT ON OUR TEAM. WE GET QUESTIONS FROM CLIENTS ALL THE TIME AROUND THIS. FOR NOW I WOULD SAY THAT WE ARE LOOKING AT WHERE WE ARE SITTING TODAY WITH MATURE RATIONS, THAT SHOULD BE BALANCED IN THE COMING MONTHS. A LOT OF DISCUSSIONS AROUND THAT AND WHAT IT WOULD DO TO RATES BACK IN NOVEMBER. THEY HAVE BASICALLY BEEN USING BILLS PRIMARILY AND WE WILL HAVE TAX RECEIPTS COMING IN AND STEADY AUCTION SO THE REST OF THE YEAR.

I'M LOOKING FOR 2024 IT WILL PROBABLY BE A FAIRLY STABLE ENVIRONMENT. IT'S MORE PROBABLY A 2025 AND BEYOND TYPE ISSUE. CERTAINLY NOT IGNORING IT. FOR NOW THE MARKETS ARE GOING TO BE MORE FOCUSED ON HAVING STABLE AUCTIONS, SUCCESSFUL AUCTIONS. THE 20-YOUR AUCTION VERY SUCCESSFUL. LOOKING MORE ON THE ELECTIONS AND WHAT HAPPENS. THAT WILL HAVE AN IMPACT ON WHERE WE TAKE THE DEBT LEVELS GOING FORWARD AS WELL. THAT NUMBER COULD BE MEANINGFULLY LARGER IF YOU HAVE A SWEEP TO ONE SIDE OR THE OTHER. I T

HINK THE MARKET WILL BE FOCUSED MORE ON THE FED CUTS, THE ECONOMY, THE INFLATION, WHAT HAVE YOU. WE ARE THINKING 2025 AND BEYOND, THAT IS AN AREA WE WILL HAVE TO START BASICALLY COUNTING IN MORE AND MORE. MANUS: A NUMBER OF PEOPLE HAVE TALKED ABOUT CYCLICALITY. UPGRADING FINANCIALS FOR THE FIRST TIME SINCE 2021. HOW DO YOU MAKE IT COME ALIVE? BRIAN: THE CYCLICALITY WOULD COME INTO PLAY TYPICALLY AROUND THE FED EASING CYCLE AND THE NORMALIZATION OF THE YIELD CURVE, A CATALYST FOR BROADER ECONOMIC

ACTIVITY INTO HOPEFULLY AN EXPANSION. IN THAT TYPE OF ENVIRONMENT YOU WANT TO FAVOR ENERGY, FINANCIALS, INDUSTRIALS. YOU ARE SEEING THAT WORK A BIT. WE HAVE SEEN BROADENING OUT OF THE MARKET, WHICH IS A GOOD SIGN AND LIKELY IN ANTICIPATION OF THIS EASING CYCLE WE WILL GET OVER THE NEXT YEAR AND YEAR-AND-A-HALF. MANUS: OK. ANDERS, THINK YOU SO MUCH. BRIAN, THANK YOU FOR BEING WITH ME. BRIAN LEVITT. A QUICK SNAPSHOT IN MARKETS THIS MORNING. TEN-YEAR GOVERNMENT BOND YIELDS TICKING UP EVER SO SLIGH

TLY. PIMCO. THEY HAVE A SMALLER EXPOSURE TO U.S. TREASURIES THAN THEY DO PERHAPS TO THE U.K. AND CANADA. EURO-DOLLAR. GOLD TRADES UP .9%, TRADING TO RECORD HIGHS AHEAD OF THE PCE ON FRIDAY. STOCKS AHEAD OF THE OPENING BELL. ABIGAIL: WE DO HAVE THE INDEX FUTURES UP SLIGHTLY BUT ONE STOCK THAT IS WEIGHING TO A SECOND DOWN DAY IN A ROW IS APPLE. THIS IS ON THE REPORT THAT CHINA IPHONE SHIPMENTS FELL 33% IN FEBRUARY. THIS IS CONSISTENT WITH THE REPORT WE HAD EARLIER THIS YEAR, EARLIER THIS MONTH I S

HOULD SAY THAT THE IPHONE MAKER SAW A 24% PLUNGE IN IPHONES AND THE FIRST SIX WEEKS OF THE YEAR. THE STOCK DOWN 15% FROM ITS DECEMBER PEAK. TRULY, CORRECTION. TESLA UP 3%. IT SEEMS TO BE IT HAS TO DO WITH INDIA CONTACTING TESLA ABOUT POTENTIAL PRODUCTION OF ELECTRIC TRUCKS, THE CYBER TRUCK. THE BIG WINNER, VIKING THERAPEUTICS UP 16%. THEY PUT A GOOD EARLY STUDY RESULTS FOR THEIR WEIGHT LOSS PILLS. THE STREETS VERY PLEASED. THE DATA IS STRONG, THE STUDY WAS STRONG, THE STOCK SHOULD BE STRONG. THE

RE IS A 12% SHORTAGE. SOME OF THE BEARS RUNNING FOR COVER. MANUS: THANK YOU SO MUCH ABIGAIL DOOLITTLE. COMING UP, I TAKE YOU TO A LIVE SHOT OF THE FRANCIS SCOTT BRIDGE IN BALTIMORE WHICH HAS COLLAPSED AFTER BEING STRUCK BY THAT CONTAINER SHIP. A NEWS CONFERENCE BEGINS AT 9:30 A.M. THIS IS THE FRANCIS SCOTT BRIDGE. THE FAA ARE RESTRICTING DRONE FLIGHTS NEAR THIS MAJOR COMMUTER BRIDGE. THIS SHIP YOU ARE LOOKING AT IS INDEED CHARTERED BY MAERSK. MORE ON THE TRAGEDIES OR THE MORNING. NEWS CONFERENCE

AT 9:30. DETAILS ARE AVAILABLE ON YOUR BLOOMBERG TERMINAL. >> WE ARE STILL VERY MUCH AN INACTIVE SEARCH-AND-RESCUE POSTURE AT THIS POINT. WE WILL CONTINUE TO BE FOR SOME TIME. THERE WERE LIKELY MULTIPLE PEOPLE ON THE BRIDGE AT THE TIME OF THE COLLAPSE. AS A RESULT MULTIPLE PEOPLE WERE IN THE WATER. WE MAY BE LOOKING FOR UPWARDS OF SEVEN INDIVIDUALS. THAT IS THE LATEST INFORMATION WE HAVE. MANUS: GETTING DETAILS. THEY WILL BE MORE AS THE MORNING GOES ON. LIVE PICTURES OF THE COLLAPSED BRIDGE. TH

E FRANCIS SCOTT KEY BRIDGE IN BALTIMORE. IT COLLAPSED AROUND 1:30 A.M. AFTER IT WAS RAMMED BY A CONTAINER SHIP, PLUNGING VEHICLES AND PEDESTRIANS INTO THE WATER. IT ALSO CAUSE CHAOS AT THE PORT OF BALTIMORE. IT IS ONE OF THE MOST IMPORTANT PORTS ON THE U.S. EASTERN SEABOARD. AMY MORSE JOINS US NOW WITH MORE. THE SHIP. IT'S UNCLEAR. THERE HAVE BEEN REPORTS ABOUT A LOSS OF CONTROL OF THE SHIP AND THERE WAS SOME KIND OF WARNING. BEFORE WE GET TO THIS PRESS CONFERENCE WHAT MORE CAN YOU TELL ME? AMY:

THERE WAS SOME LOSS OF CONTROL AND THE SHIP. IF YOU LOOK AT THE VIDEO WHEN THE SHIP ACTUALLY HIT THE BRIDGE YOU CAN SEE SMOKE BILLOWING. YOU CAN SEE THE LIGHTS FLICKERING. YOU CAN SEE THE SHIP MAKES A VERY SUDDEN TURN INTO THE BRIDGE ABUTMENT, WHICH IS WHY A LOT OF PEOPLE AT FIRST THOUGHT COULD THIS HAVE BEEN ATTENTIONAL. LAW ENFORCEMENT OFFICIALS MADE IT CLEAR IT WAS NOT INTENTIONAL, AT LEAST THERE IS NO EVIDENCE TO SUGGEST IT MAY HAVE BEEN ATTENTIONAL. THE FBI'S ON THE SCENE AND THE COAST GUA

RD. HOMELAND SECURITY SECRETARY ALEJANDRA MAYORKAS SAYS THEY ARE INVESTIGATING. THE WHITE HOUSE IS BEING KEPT APPRISED OF THIS. THE FEDERAL OFFICIALS, STATE AND LOCAL OFFICIALS ARE WORKING TOGETHER TO FIGURE OUT HOW THIS COULD HAVE HAPPENED AND WHY ONE SHIP HITTING ONE PART OF THE BRIDGE CAUSED THE ENTIRE BRIDGE TO FALL INTO THE WATER. MANUS: THERE IS A HUMAN TRAGEDY SIDE TO THIS. WE ARE WAITING TO HEAR WHAT THE IMPACT HAS BEEN AT THIS NEWS CONFERENCE. THERE ARE RAMIFICATIONS FOR ONE OF THE BUSI

EST PORTS ON THE EASTERN SEABOARD. IF YOU LOOK AT THE ORDERS GOING TO THE PORT, 847,000 LIGHT TRUCKS AND CARS WENT THROUGH IT IN 2023. WHAT MAY IT MEAN TO SUPPLY CHAIN DIVERSIONS? DO WE KNOW DETAILS IN TERMS OF THE RAMIFICATIONS? AMY: THIS COULD HAVE TREMENDOUS RAMIFICATIONS. THE PORT OF BALTIMORE WAS NUMBER ONE IN SHIPPING FARM EQUIPMENT, CONSTRUCTION EQUIPMENT, CARS, CAOL. NUMBER ONE IN SHIPPING SO MANY DIFFERENT THINGS FROM THAT ONE PORT IN THE PAST YEAR. TO HAVE THAT COMPLETELY CUT OFF IS DE

FINITELY GOING TO HAVE AN IMPACT ON THE SUPPLY CHAINS. IT IS NOT CLEAR WHAT YET .I HEARD FROM OFFICIALS ON THE SCENE WHO SAID THEY ARE STILL TRYING TO GET ENGINEERS TO THE SCENE. THEY HAVE TALKED TO SEVERAL FIRMS SO THEY CAN SEE HOW LONG IT WILL TAKE TO TRY TO FIND A WORKAROUND FOR THIS. MANUS: THANK YOU SO MUCH. THAT IS AMY MORRIS. LET'S TURN TO POLITICS. THE LATEST BLOOMBERG NEWS MORNING CONSULT. IT SHOWS PRESIDENT BIDEN GAINING AGAINST THE REPUBLICAN CHALLENGER DONALD TRUMP IN SIX KEYY SWING

STATES. AND RECORD TURN CAN TALK ME THROUGH THE PROGRESS FOR IN THIS. ANNMARIE: GOOD MORNING. WE HAVE BEEN CONDUCTING THIS POLL FOR MONTHS. BY FAR THIS IS BIDEN'S BEST SHOWING WHEN IT COMES TO THE MONTHLY POLL. HE'S ABLE TO GAIN GROUND IN SIX OF THE SEVEN KEY SWING STATES. WE SHOULD NOTE THAT TRUMP IS GAINING GROUND IN GEORGIA, ONE THAT BIDEN HAS NOT BEEN ABLE TO DO JUST YET. HE'S BEEN ABLE TO FLIP ONE. WHEN IT COMES TO WISCONSIN, BIDEN IS NOW LEADING TRUMP BY ONE POINT. HE TRAILED BY FOUR POINT

S IN FEBRUARY. PENNSYLVANIA THEY ARE TIED. TRUMP HAD A SIX-POINT LEAD LAST MONTH AND ALSO TIED IN MICHIGAN. YOU MENTIONED THE BLUE WALL. THIS IS IMPORTANT TO THE BIDEN CAMPAIGN. THE NORTHERN BATTLEGROUNDS. THEY WOULD ALL BUT MEAN BIDEN HAS A SECOND TERM IF HE'S ABLE TO HOLD ONTO THESE NORTHERN BATTLEGROUNDS, THESE BLUE WALL STATES. HE IS GAINING GROUND, EVEN FLIPPING WHEN IT COMES TO WISCONSIN. BY AND LARGE THIS IS A GOOD SHOWING FOR THE CURRENT PRESIDENT GIVEN WHAT WE HAVE SEEN IN THE PRIOR POL

LING AND DATA WE HAVE. ONE THING I WOULD NOTE, ESPECIALLY AS WE ARE WAITING FOR IMPORTANT PCE DATA LATER THIS WEEK, AMERICANS, SWING STATE VOTERS ARE FEELING BETTER ABOUT THE ECONOMY. THE ISSUE IS, THEY SAY TRUMP IS BETTER WHEN HANDLING A WIDE RANGE OF POCKETBOOK ISSUES. EVERYTHING FROM FINDING GOOD JOBS AND ALSO THINGS LIKE INTEREST RATES. MANUS: TO A CERTAIN EXTENT THIS WAS THE NARRATIVE THE WHITE HOUSE WAS HOPING WOULD EVENTUALLY FILTER THROUGH. LOOKING AT THE DRIVING SEASON COMING UP, THE PR

ICE OF GAS WILL BE AT FOUR DOLLARS. THAT WILL BITE THE POCKETBOOKS. WHAT DO YOU MAKE OF THE TRUMP STORY, THIS SPAC DEAL THAT WENT THROUGH. HOW CAN TRUMP UTILIZE THE VALUE WITHIN THE SPAC FOR HIMSELF? IF IT STAYS AT THIS PRICE HE WILL BE WORTH $6 BILLION. ANNMARIE: IT MEANS HE WAS ABLE TO GET INTO BLOOMBERG BILLIONAIRE INDEX. THIS WILL BE A WINDFALL FOR THE FORMER PRESIDENT. THERE IS A SIX-MONTH LOCKUP PERIOD BUT I SOME REPORTING OF HE WAS ABLE TO GET THE OK FROM MEMBERS OF HIS BOARD, WHICH WE SH

OULD NOTE PEOPLE ON THIS BOARD, OF THIS MEDIA COMPANY ARE THE LIKES OF CACHE PATEL, ROBERT LIGHTHIZER, INDIVIDUALS THAT WORKED UNDER THE TRUMP ADMINISTRATION, POTENTIALLY HE COULD SELL SHARES SOONER. THAT WOULD GIVE HIM A MAJOR WINDFALL AS HE'S PAYING A NUMBER OF LEGAL FEES. MANUS: INDEED. WE WILL KEEP AN EYE ON THAT. THANK YOU FOR BEING WITH US ON THE LATEST POLL. COMING UP, THE MORNING CALLS ON BLOOMBERG. ♪ MANUS: ONE STOCK AT THE BOTTOM OF YOUR SCREEN, TRUMP MEDIA TECHNOLOGY UP 27%. WHAT WILL

IT MEAN FOR THE WEALTH OF THE CONTENDER IN THE PRESIDENTIAL RACE? A NICE BUMP IN TESLA. ABIGAIL WILL TAKE YOU THROUGH THE TRUMP STOCK IN JUST A MOMENT. TIME FOR THE MORNING CALLS. THIS IS WHAT WE GOT FROM WALL STREET. JEFFRIES UPGRADES CLOROX TO HOLD. THE COMPANY'S EXIT FROM ARGENTINA AND URUGUAY AND PARAGUAY IS A LONG-TERM POSITIVE. DOWN GETTING STELLANTIS TO HOLD. THEY SAY THERE IS LITTLE MEANINGFUL NEAR-TERM UPSIDE AND HIGHLIGHTED CHALLENGING 2024 FOR THE AUTO INDUSTRY. RAYMOND JAMES RAISES

THE PRICE TARGET ON DISNEY. BARCLAYS UPGRADED THE STOCK YESTERDAY ON THE COMPANY'S TURNAROUND STORY. COMING UP, WE ARE SET TO RETURN TO BALTIMORE, ADDRESSING THE FRANCIS SCOTT KEY BRIDGE COLLAPSE. WE WILL BRING YOU THAT LIVE AS IT HAPPENS RIGHT HERE ON BLOOMBERG. GOOD MORNING FROM NEW YORK. ♪ MANUS: YOU CAN FEEL THE RELIEF. THE MEGA MELTDOWN. TESLA UP NICELY. INVESCO SAYING THIS IS A JUSTIFIABLE SITUATION. NOT A MANIA OR EXUBERANCE. TESLA FLYING HIGHER. THERE IS THE BELL TO OPEN THE DAY. EURO-DO

LLAR UP POINTY PERCENT. PIMCO ARE NOT AS LONG ON U.S. TREASURIES AS THEY ARE RELATIVE. THEY HAVE A PREFERENCE FOR THE U.K. AND CANADA. MORE AUCTION PAPER COMING TO THE MARKET. PIMCO TALKING ABOUT THE PACE OF RATE CUTS IN THE U.S. BEING SLOWER THAN THE REST OF THE WORLD. GOLD UP BY .6%. WE HAVE GONE THROUGH SOME RECORDS RECENTLY ON THAT. THERE IS A LITTLE BIT OF CONCERN AND HESITATION AHEAD OF THE PCE ON FRIDAY. EXPECTED TO COMING UP PLUS .3%. ONE STOCK TO WALK IS TESLA. IN ITALIAN NEWSPAPER REPO

RTS THE COMPANY'S OFFICIALS HAVE CONTACTED THE EV MAKER ABOUT THEIR ELECTRIC TRUCK. CRAG IS WITH ME. THIS TRUCK IS A THING OF BEAUTY IF YOU LOOK AT IT CONCEPTION ONLY BUT THE ITALIANS ARE KEEN ON THIS. CRAIG: IT IS WORTH TAKING A BREATH ON THIS ONE. IN THE SENSE THAT THIS COMPANY HAS BEEN MAKING SEMIS HUNDRED PILOT'PRODUCTION FOR MORE THAN A YEARS AND AS OF LATE LAST YEAR THE COMPANY A EXECUTIVE SAID THEY HAD ROUGHLY 100 AND THE FLEET. THIS IS MOVING AT A PRETTY GLACIAL PACE FOR TESLA. WE HAD AN

INTERESTING INTERVIEW ON BLOOMBERG TELEVISION LAST WEEK WITH THE CEO OF DAIMLER TRUCK WHO BELIEVES TESLA WOULD HAVE TO REDESIGN THE SEMI FOR EUROPEAN USE. IT IS TOO LONG. WHETHER OR NOT TESLA EVER ACTUALLY MAKES THE SEMI IN ITALY, WE ARE A LONG WAY FROM LEARNING THAT. MY SUSPICION IS THIS IS A REACTION TO ELON MUSK SAYING IN GERMANY RECENTLY EVENTUALLY IT MAY MAKE SENSE FOR TESLA TO MAKE SEMIS THERE. MANUS: IT'S AN INTERESTING MOMENT BETWEEN PRESS CUTS, COMPETITION, CAR PRODUCTION CUTS, AND HER

E IS A GOOD NEWS STORY COMING FROM ITALY. TO THE SOCIAL MEDIA. TRUMP NEEDED TECHNOLOGY GROUP SOARING AHEAD IN THE FIRST SESSION AS A PUBLICLY TRADED COMPANY. ABIGAIL HAS THE DETAILS ON DJT. ABIGAIL: IT WAS UP 58%. CURRENTLY UP CLOSER TO 30%. EITHER WAY YOU LOOK AT IT ABSOLUTELY SOARING ON ITS FIRST DAY OF TRADING. TRUMP MEDIA AND TECHNOLOGY GROUP AFTER ITS POST-SPAC DEBUT WITH DIGITAL WORLD ACQUISITION. THE NEW TICKER IS DJ T. DIFFICULT TO FORGET WHAT THE FORMER PRESIDENT, HIS INITIALS. IT GIVES

THE PARENT COMPANY OF TRUE SOCIAL $200 MILLION IN CAPITAL AMID LEGAL AND FINANCIAL WOES. AT CURRENT LEVELS TRUMP'S SHARES WHEN IT WAS UP 11% THEY WOULD BE WORTH $6 BILLION. MANY MULTIPLES OF THAT. HE IS SUBJECT TO A SIX-MONTH LOCKUP AND PERFORMANCE REQUIREMENTS. WHILE MAKING THE ENTITY PROFITABLE IS IMPORTANT, IN THIS ELECTION YEAR THIS MAY BE THE ULTIMATE WAY OF DOING AN INFORMAL BID OR LOOK AT THE ELECTION. LOTS OF INVESTORS USING THIS AS A WAY TO BET ON HIS BID FOR REELECTION. THE CEO OF ACC

ELERATE FINANCIAL HOLDINGS SAYING THE UNDERLYING BUSINESS FUNDAMENTALS WILL MATTER AT SOME POINT BUT FOR NOW DJT IS THE MOTHER OF ALL MEME STOCKS. HARD TO DISAGREE. MANUS: WE WILL SEE WHAT THE LONG-TERM TRAJECTORY IS ON PROFITABILITY. THANK YOU VERY MUCH, ABIGAIL DOOLITTLE. LET'S TURN TO THE CONSUMER SPREADS. KRISPY KREME DOUGHNUTS ARE COMING TO MCDONALD'S ACROSS THE U.S. IT IS THEIR LATEST EFFORT TO BOOST THE BUSINESS BREAKFAST. SIMONE FOXMAN. KRISPY KREME AT 3:00 A.M.. SIMONE: THE RUSH FOR INV

ESTORS IS WHAT THE SHARES ARE DOING TODAY. THEY HAVE RECOUPED THEIR LOSSES THIS YEAR. THIS IS THE BIGGEST RALLY IN KRISPY KREME SHARES SINCE THE COMPANY IPO'D BACK IN 2021. WE UNDERSTAND THERE WAS A TEST OF SELLING KRISPY KREMES AT MCDONALD'S IN TWO CITIES IN KENTUCKY, LOUISVILLE AND LEXINGTON. ACCORDING TO THE STATEMENT ANNOUNCING THE DEAL THE DEMAND EXCEEDED EXPECTATIONS. KRISPY KREME DOUGHNUTS WILL ROLLOUT IN THE SECOND HALF OF 2024 AND END UP IN ALL MCDONALD'S LOCATIONS BY THE END OF 2026. P

ART OF THE REASONS INVESTORS LIKE IT IS ACCORDING TO THE CEO KRISPY KREME THIS WILL DOUBLE THE POINTS OF ACCESS FOR PEOPLE WHO WANT THESE KRISPY KREME DOUGHNUTS ACROSS THE COUNTRY. IT HAD BEEN HAVING A TOUGH YEAR BECAUSE, AS CITI PUT IT BACK IN FEBRUARY, IT WAS NOT SO SWEET WITH PRESSURES FROM INFLATION AND OTHER THINGS ON ITS INGREDIENTS. ALSO SAW A LITTLE BIT OF A SLOWDOWN IN TERMS OF EXPECTATIONS FOR WHAT PEOPLE WANTED. NOW MUCH WIDER AVAILABILITY OF KRISPY KREME DOUGHNUTS. THAT IS CLEARLY A

POSITIVE FOR THE STOCK THIS MORNING. MANUS: VOLUME IS EVERYTHING. THANK YOU VERY MUCH. LET'S PIVOT TO MAERSK STOCK, THE DANISH FIRM. THE CHARTERING COMPANY OF THE VESSEL THAT AS YOU CAN SEE THERE CRASHED INTO THE FRANCIS SCOTT BRIDGE IN BALTIMORE. WHAT DO WE KNOW IN TERMS OF THE STAFFING? IS IT MAERSK STAFF ON THE SHIP? WHO OWNS THE SHIP? HOW DOES MAERSK USING THIS SHIP PLAY OUT? >> THANK YOU FOR HAVING ME. THE SHARES FELL AFTER THE CHARTERED THE SHIP BUT IT SALES UNDER THE FLAG OF SINGAPORE AND

ARE EXPERTS SAY THE COMPANY MAY NOT BE DIRECTLY RESPONSIBLE FOR THE COLLAPSE, BECAUSE THE COMPANY HAD NO CREW ON BOARD. THE SHIP WAS OPERATED BY A CHARTER COMPANY. WE ARE SEEING THE POSSIBILITY OF AN EXTENDED SHUT DOWN. THAT WILL CAUSE MAJOR CONGESTION FOR TRAVELERS AND BUSINESSES, POSSIBLY FOR MONTHS. THE BRIDGE ALLOWS COMMERCIAL SHIPS TO ENTER THE PORT OF BALTIMORE. IT'S ONE OF THE TOP PORTS IN THE U.S. BY VOLUME AND VALUE. IT HANDLED OVER 10 BILLION TONS OF CARGO ANNUALLY. IT IS THE LARGEST

U.S. PORT FOR HANDLING CARS AND LIGHT TRUCKS. IT ALSO HANDLES SUGAR, COFFEE, COAL FOR EXPORT. WE EXPECT THE BOTTLENECK COULD RESULT IN A SHIFT OF SHIPS GOING TO THE WEST COAST PORTS. MANUS: THERE'S A HUMAN ASPECT TO THE CRISIS AND A LOGISTICAL ASPECT. HOW QUICKLY CAN SHIPPING DIVERT? IT LITERALLY IS INSTANTANEOUS, IS IN IT? NACHA: FOR NOW, IF YOU GO AROUND THE BRIDGE, YOU KNOW, IT EXTENDS THE TIME FROM HALF AN HOUR TO ABOUT AN HOUR. THIS WILL HAVE TO BE, YOU KNOW, PRETTY QUICK. A PRETTY IMMEDIAT

E SHIFT. MANUS: WE ARE AWAITING THE NEWS CONFERENCE TO BEGIN. AS IT DOES WE WILL BRING THAT TO VIEWERS. THE ALLOCATIONS FOR MAERSK, THE CHARTERING COMPANY OF THE SHIP THAT COLLIDED WITH THE BRIDGE IN BALTIMORE. CHINA IS SEEKING TO SHORE UP CONFIDENCE IN THE ECONOMY. SOME U.S. CEOS ARE RECEIVING AN INVITE TO A MEETING WITH THE TOP CHINESE LEADER. WHY THE INSPECTED TO BE PRESIDENT XI JINPING. PFIZER AND FEDEX ARE THE CHIEFS POTENTIALLY HAVING THOSE MEETINGS. EMMA IS WITH ME NOW. THIS IS A VERY INT

ERESTING MOMENT. WE HAVE MONETARY POLICY, FISCAL POLICY, AND THEN WE HAVE BRAND XI ENGAGEMENT. >> IT LOOKS LIKE CLASSIC AVERAGE FROM THE CHINESE AUTHORITIES. SEVERAL OF THE BIG CEOS ARE IN BEIJING FOR A CONFERENCE. THROUGHOUT THE GATHERING OFFICIALS IN CHINA HAVE BEEN SENDING A MESSAGE TO THE WORLD THEY ARE OPEN FOR BUSINESS. THE ECONOMIC DOWNTURN IS IN HAND. THEY HAVE POLICY TOOLS TO TURN IT AROUND. COLLEAGUES ARE REPORTING THAT IT LOOKS LIKE THERE'S A MEETING WITH SENIOR LEADER BEING SET UP FO

R WEDNESDAY. IT'S EXPECT IT TO BE PRESIDENT XI JINPING. THAT IS A SIMILAR MODEL TO WHAT WE SAW AT AIPAC IN SAN FRANCISCO BACK IN NOVEMBER WHEN THE EXECUTIVES HAD OPPORTUNITY TO HAVE AN AUDIENCE WITH XI JINPING. TO YOUR POINT, WHEN YOU CONSIDER THE BACKDROP BEING ABOUT FDI AT ITS WORST IN DECADES, THIS IS A CLASSIC OPPORTUNITY FOR PRESIDENT XI JINPING TO MEET WITH LEADERS OF TOP U.S. AND GLOBAL COMPANIES AND MAKE THE SALES PITCH FOR WHAT CHINA CAN OFFER THEM. MANUS: FROM AN ECONOMIC PERSPECTIVE,

AND YOU TALKED ABOUT FDI, YOU HAVE FIXED ASSET INVESTMENT, INDUSTRIAL SPENDING, BUT YOU HAVE FDI AS THE BIGGEST ISSUE. IT HAS BEEN THE VACUUM OF MONEY COMING OUT OF CHINA. THE FLOW HAS NOT BEEN IN THE RIGHT DIRECTION. HOW CRITICALLY IMPORTANT IS IT TO XI JINPING? ENDA: IT IS IMPORTANT. WE KNOW CHINA'S ECONOMY HAS REBALANCED. IT IS MORE CONSUMER DRIVEN AND IT HAS BEEN. IT IS NO LONGER JUST ABOUT MANUFACTURING EXPORTS. FDI IS AN IMPORTANT ACCELERATOR OF ECONOMIC ACTIVITY IN PROFITS AND EXPORTS. ES

PECIALLY DURING THE DOWNTURN CHINA HAS BEEN EXPERIENCING. OF COURSE THEY WANT FOR KNOW HOW. THEY WANT FOREIGN TECHNOLOGY. THEY WANT FOREIGN CAPITAL. THEY WANT TO SEE THE SECTOR EXPANDING AND GROWING. SOME OF THE SECTORS ARE NOT NECESSARILY CRITICAL FOR NATIONAL AMBITIONS BUT AT THE SAME TIME AT THIS DATE I DON'T THINK MANY COUNTRIES WOULD WANT TO BE TURNING AWAY FDI. THE OTHER SIDE OF THE LEDGER IS THE PORTFOLIO FLOWS. GLOBAL INVESTMENTS HAVE TURNED SOUTH ON CHINA IN THE PAST YEAR OR TWO. THERE

IS NO SIGN OF THAT TURNING AROUND IN A HURRY. MANUS: THE PRICE REACTION FOR AN ECONOMIST, INTEL AND AMD, IF I LOOK AT THAT AS A REFLECTION OF THE POTENTIAL FOR ESCALATION IN TARIFFS AND RESTRICTIONS, IT DOES NOT SEEM TO BE MUCH OF AN OFFRAMP ON THE TARIFFS. THE RISK IS HE GOING TO A SECOND ADMINISTRATION FROM TRUMP AND THINGS ESCALATE. HOW IMPORTANT IS IT FOR THE WORLD THAT THERE IS SOME KIND OF AN OFFRAMP IN TARIFFS? THAT WE HAD BACKWARDS RATHER THAN FORWARDS? ENDA: WE SEEM TO BE IN SOME KIND O

F A HOLDING PATTERN NOW AHEAD OF THE ELECTION. THE CURRENT ADMINISTRATION WAS PRETTY HAWKISH ON THE TRADE FRONT. THEY MAINTAINED TARIFFS AGAINST CHINA. THEY PUSHED THROUGH VARIOUS IMPORT AND EXPORT CONTROLS. WE WILL SEE WHAT ADMINISTRATION COMES OUT IN NOVEMBER. REGARDLESS OF WHICH SIDE IT IS, IT WILL BE EITHER PRETTY HAWKISH OR VERY HAWKISH ALTOGETHER ON CHINA. IF IT IS THE LATTER WITH FORMER PRESIDENT TRUMP TALKING ABOUT TARIFFS OF MAYBE 60% OR HIGHER, THAT WOULD IMPACT TRADE BETWEEN THE WORLD

'S TWO BIGGEST ECONOMIES AND AROUND THE WORLD. IT WOULD NOT JUST BE TARIFFS. THERE ARE OTHER TOOLS AND CONTROLS. IT IS DELICATELY POISED RIGHT NOW. THE WORLD ECONOMY HAS A LOT OF FRAGILITY UNDER THE SURFACE OF GDP GROWTH. THE TWO BIGGEST ECONOMIES GO AT IT IN TERMS OF THE RESUMPTION OF A TRADE WAR, THAT WOULD REVERBERATE AROUND THE WORLD. MANUS: THIS COMES AS THE BOW FORM TAKES FORM. ARE YOU NEAR 30-YEAR LOW IN 2023 AND CHINA. THEY HAVE A LOT OF WORK TO DO. THANK YOU FOR BEING WITH ME ON THE MAC

RO STORY WITH CHINA. PLENTY MORE AHEAD ON BLOOMBERG. WE ARE WAITING FOR THE PRESS CONFERENCE TO BEGIN IN BALTIMORE. YOU ARE LOOKING AT LIVE SHOTS OF THAT TRAGIC SCENE OF THE BRIDGE IN BALTIMORE. WE WILL BRING YOU THAT NEWS CONFERENCE AS SOON AS IT BEGINS. ♪ MANUS: S&P 500 IS ON TRACK -- CONTRACTED NOTCH UP FIVE STRAIGHT MONTHS OF GAINS FROM NOVEMBER THROUGH MARCH. WE ARE TALKING TO THE STATS. THIS IS A RARE WINTER RALLY, JESS. IT WILL BE SOMETHING IF WE GET TO THE CLOSE OF BUSINESS ON THURSDAY B

UT WE HAVE ONLY DONE THIS A COUPLE OF TIMES SINCE 2013. JESS: THAT TIME PERIOD, AS YOU KNOW, THERE TENDS TO BE TAX HARVESTING. USUALLY MIGHT SEE A DOWN YEAR IN DECEMBER TO JANUARY. THE ONLY OTHER TIME THIS CENTURY WE HAVE SEEN A FIVE-MONTH STREAK OF GAINS FROM THE VERY THE MARCH WASIN 2013. BEFORE THAT IT WAS IN 1998. THAT SHOWS YOU HOW RARE THIS IS. IN ORDER FOR THAT TO HAPPEN THE S&P 500 ON THURSDAY WOULD NEED TO CLOSE AROUND 5247 AND GETTING CLOSE TO 5250 TO HOLD ONTO THE DOUBLE-DIGIT GAINS.

WE WILL HAVE TO SEE IN THE NEXT FEW SESSIONS. MANUS: YOU HAVE OPPENHEIMER GOING THROUGH 5500. SOFT IN TALKING ABOUT 5500. IS THERE ANY SENSE LOOKING AT THE DATA IF YOU RALLY AS FURIOUSLY AS THIS IN FIVE MONTHS, WHAT HAPPENS IN THE ENSUING PERIOD? JESS: THERE'S AN ENCYCLOPEDIA STOCKMARKET KNOWLEDGE. HE CRUNCHED THE NUMBERS TO LOOK HOW RARE IT IS TO SEE THE FIVE-MONTH SPAN FROM NOVEMBER TO MARCH. TYPICALLY WHAT HAPPENS IS THE REMAINING OF THE NINE MONTHS SPAN THE REMAINDER OF THE YEAR, THE SECOND,

THIRD, FOURTH QUARTER YOU SEE IT THE S&P 500 NOTCHING GAINS OVER THAT TIME. NOT JUST FOR THE NINE MONTHS BUT FOR AN ANNUAL BASIS. IT'S ABOUT A 12% GAIN FOR THE S&P 500. NOT JUST THAT. WE TEND TO SEE GAINS IN APRIL 9 OF THE 11 INSTANCES. PEOPLE ARE EAGLED TO SEE THE CALENDAR FLIPPING TO THE SECOND QUARTER WHETHER OR NOT THOSE GAINS CAN HOLD. HISTORY TYPICALLY BODES WELL. MANUS: BODES WELL. I HAD INVESCO WITH ME EARLIER AND THEY WERE SAYING WHETHER IT IS 3, 2, ONE CUT, IT WILL NOT INTERRUPT THE N

ARRATIVE IN THE EQUITY MARKET. IT'S ABOUT THE EARNINGS IN THIS EARNINGS HAD BETTER LIVE UP TO EXPECTATIONS. TO WHAT EXTENT DO THE PEOPLE YOU TALK TO PREDICATE THEIR BULLISH VIEW AND THIS ENTHUSIASM TO RATE CUTS AS WELL? JESS: TO YOUR POINT IT BUILDS ON THE CASE OF WHERE THE PROJECTION IS FOR CORPORATE EARNINGS. IN THE FOURTH CORNER WE DID SEE EXPECTATIONS SMASHED. THE EXPECTATIONS WERE FOR THE S&P 500 AVENUE EARNINGS GROWTH CLOSE TO FLAT BUT IT CAME IN ABOUT 8% OR 9% HIGHER. IF YOU LOOK ON AN AN

NUAL BASIS FOR THE S&P 500 EARNINGS GROWTH THIS YEAR IT SUPPOSED TO BE AROUND 11% BUT THE NUMBERS HAVE NOT BUDGED TOO MUCH FROM LAST MAY. THE CONSENSUS IS IF GROWTH REMAINS STRONG MAYBE THAT COULD BE FEASIBLE. YOU DO SEE GROWTH PULLBACK. WHETHER OR NOT THEY WOULD HAVE TO BE RECTIFIED IN THE PROFIT EXPECTATIONS. A LOT OF THAT HAS BEEN CARRIED NOT SURPRISINGLY BY THE MAGNIFICENT SEVEN AND GROWTH STOCKS IN THE LAST YEAR. THE BASE EFFECT IF YOU LOOK YEAR-OVER-YEAR THROUGH THE REMAINDER OF THE YEAR W

ILL NOT BE QUITE AS ROBUST AS 2022. INTERESTING TO SEE IS THAT NARROWS AT WHAT THE TECH AND GROWTH STOCK MEANS BROADLY FOR THE INDEX AND IF WE COULD SEE THE PROFIT GROWTH EXPECTATIONS. MANUS: GREAT STORY AND WORTH A READ. LET'S TURN BACK TO THE TRAGEDY AT THE BRIDGE IN BALTIMORE. JOINING ME TO TALK ABOUT THE IMPACT ON TRADE IS BRENDAN MURRAY. GOOD DAY TO YOU. WE ARE WAITING FOR THE NEWS CONFERENCE TO TELL US MORE ABOUT THE FRANCIS GOT BRIDGE. IN TERMS OF THE PERSPECTIVE OF THIS PORT ON THE EASTE

RN SEABOARD, WHY IS IT SO CRITICAL TO THE FLOW OF GLOBAL TRADE INTO AMERICA AND OUT? BRENDAN: IT IS ONE OF THE TOP 20 PORTS IN OVERALL VOLUME IN THE UNITED STATES. IT IS ALSO A KEY PORT FOR AUTO INDUSTRY EXPORTS AND IMPORTS. THAT WILL BE A MAJOR ISSUE THAT BY ALL ACCOUNTS THE PORT WILL BE SEVERELY RESTRICTED FOR PERHAPS MONTHS. IT COULD BE CLOSED COMPLETELY FOR A LONG TIME. WHERE ARE ALL THE GOODS GOING TO FLOW? THOSE ARE QUESTIONS WE ARE ASKING TO OTHER PORTS ALONG THE EASTERN SEABOARD. THE POR

T OF BALTIMORE DID ABOUT $80 BILLION WORTH OF CARGO VALUE LAST YEAR. THAT IS $6.5 BILLION A MONTH. EVERY MONTH THE PORT IS SHUT OR RESTRICTED WILL COST THE LOCAL ECONOMY A LOT OF MONEY. THE PORT IS ONE ISSUE. THE OTHER IS THE TRAFFIC CONGESTION AROUND THIS MAJOR U.S. TRUCKING CORRIDOR. ALL THE TRAFFIC THAT WOULD HAVE BEEN ON THAT BRIDGE WILL HAVE TO GO AROUND THE OTHER SIDE OF THE BALTIMORE BELTWAY BECAUSE MUCH OF IT CANNOT GO THROUGH THE BALTIMORE HARBOR BRIDGE, WHICH PROHIBITS HAZARDOUS MATERI

ALS LIKE CHEMICALS AND FLAMMABLES LIKE PROPANE AND THOSE SORTS OF THINGS. IT WILL CREATE ON THE GROUND AND THE ROADWAYS A LOT OF PROBLEMS FOR GOODS THAT NEED TO FLOW UP AND DOWN THE EASTERN SEABOARD. MANUS: BRANDON, THANK YOU VERY MUCH. WE HAVE A LIVE SHOT OF THE PRESS CONFERENCE, WAITING FOR THAT TO HAPPEN AT THE FRANCIS SCOTT KEY BRIDGE. NO INDICATIONS THE CRASH WAS INTENTIONAL ACCORDING TO SOURCES IN THE U.S. AT THE MOMENT. WE ARE COUNTING DOWN TO THE PRESS CONFERENCE AND WE WILL BRING IT TO

YOU AS SOON AS IT'S LIVE. LET'S GET HOW THE COAL MINERS ARE FARING. ABBY, WE JUST HEARD FROM BRENDAN. IT IS NOT JUST AUTOS BUT A MAJOR COAL PORT AS WELL. ABIGAIL: WE HAVE SOME OF THE COAL MINERS DOWN SHARPLY. CONSOL ENERGY HAVING ITS WORST DAY OF THE YEAR AT THIS TIME. AT ONE POINT ITS WORST SINCE OCTOBER OF LAST YEAR. THE REASON YOU WERE MENTIONING THE BALTIMORE MARINE TERMINAL IT IS USED TO LOAD: TO OCEAN SHIPS IN THE AREA OF THE COLLAPSED BRIDGE. CONSOL ENERGY DOWN. RAMAPO DOWN 3%. CONSOL IS

SERVED BY NORFOLK SOUTHERN AND CSX. NORFOLK DOWN EARLIER. IF WE LOOK TO THE UPSIDE WE HAVE THE SOCIAL MEDIA ETF UP 1.8%. THIS OF COURSE HAVING TO DO A LOT WITH THE SPAC IPO MERGER, THE DEBUT OF TRUMP MEDIA TECHNOLOGY GROUP. THAT STOCK NOW UP 40%. IF WE LOOK AT THE SECTOR ACTION QUICKLY, WE USUALLY DO IT IN THE OTHER DIRECTION WE WANTED TO MOVE INTO THE COAL STOCKS. TALKING ABOUT THE RAILROADS ON THE TRAGEDY OF BALTIMORE. THOSE SECTORS HIGHER. 10 OF 11 TO BE SPECIFIC. THE INDEX UP ABOUT ONE QUART

ER OF 1%. THE LOAN SECTOR TO THE DOWNSIDE IS ENERGY WITH OIL DOWN FRACTIONALLY. MANUS: THANK YOU VERY MUCH FOR THE RAMIFICATIONS. COMING UP, THE MARKET MOVING EVENTS. ACTUALLY WE ARE JUST GOING TO GO STRAIGHT TO THE PRESS CONFERENCE. >> THIS MORNING. OUR STATE IS IN STOCK. I WANTED TO TAKE A MOMENT TO SPEAK DIRECTLY TO THE PEOPLE OF OUR STATE. TO THE FIRST RESPONDERS, I MEANT ALL OF YOU. -- I'M IN AWE OF YOUR COURAGE, YOUR STRENGTH, OF EVERYTHING YOU ARE DOING FOR EACH AND EVERY ONE OF US. YOU S

AW A CRISIS AND YOU SAID WHAT CAN I DO TO HELP. OUR RESPONSE TEAMS ARE DOING EVERYTHING IN OUR POWER TO RESCUE AND RECOVER THE VICTIMS OF THIS COLLAPSE LITERALLY AS WE SPEAK. PEOPLE ARE OUT THERE. OUR DIVERS, OUR AIR ASSETS. PEOPLE RIGHT NOW WORKING TO SAVE LIVES. THEY ARE DOING IT BECAUSE THE STATE ASKS. WE WILL UPDATE THE PUBLIC AS THE WORK CONTINUES. TO OUR PARTNERS INSIDE AND OUTSIDE OF GOVERNMENT, I KNOW THIS HAS BEEN A LONG NIGHT. WE STARTED COORDINATING IMMEDIATELY AFTER THE KEY BRIDGE CO

LLAPSED. WE HAVE BEEN STANDING TOGETHER EVERY STEP OF THE WAY, FROM COUNTY LEADERSHIP TO OUR CITY LEADERSHIP TO OUR STATE LEADERSHIP TO OUR FEDERAL LEADERSHIP. I'M GRATEFUL TO CALL EACH AND EVERY ONE OF YOU NOT JUST COLLEAGUES, BUT I'M GRATEFUL TO CALL YOU FRIENDS. TO THE PEOPLE OF BALTIMORE AND EACH AND EVERY ONE OF THE 6.3 MILLION MARYLANDERS WHO CALL OUR STATE HOME, I RECOGNIZE MANY OF US ARE HURTING RIGHT NOW. I RECOGNIZE MANY OF US ARE SCARED RIGHT NOW. I WANT TO BE VERY CLEAR ABOUT WHERE E

VERYTHING STANDS. WE ARE STILL INVESTIGATING WHAT HAPPENED. WE ARE QUICKLY GATHERING DETAILS. PRELIMINARY INVESTIGATION POINTS TO AN ACCIDENT. WE HAVE NOT SEEN ANY CREDIBLE EVIDENCE OF A TERRORIST ATTACK. OUR ADMINISTRATION IS WORKING CLOSELY WITH LEADERS FROM ALL LEVELS OF GOVERNMENT AND SOCIETY TO RESPOND TO THE CRISIS. BY BUILDING A STATE THAT IS MORE RESILIENT AND A STATE THAT IS MORE SAFE. THAT IS OUR PLEDGE. THAT IS OUR COMMITMENT. WE ARE GOING TO KEEP THAT COMMITMENT. LASTLY, TO THE VICTI

MS OF THIS TRAGEDY AND THEIR LOVED ONES, ALL OF OUR HEARTS ARE BROKEN. WE FEEL YOUR LOSS. WE ARE THINKING OF YOU. WE WILL ALWAYS THINK OF YOU. WE PRAY FOR THE CONSTRUCTION WORKERS WHO WERE ON THE KEY BRIDGE. WE PRAY FOR EVERYONE WHO HAS BEEN TOUCHED BY THIS TRAGEDY AND THEIR FAMILIES AND ALL OF THEIR LOVED ONES. MARYLAND, WE WILL GET THROUGH THIS. BECAUSE THAT IS THE MARYLAND SPIRIT AND THAT IS WHAT MARYLAND IS MADE OF. WE ARE MARYLAND TOUGH AND WE ARE BALTIMORE STRONG. IN THE FACE OF HEARTBREAK

WE COME TOGETHER. WE EMBRACE ONE ANOTHER AND WE COME BACK STRONG. THAT IS WHAT WE HAVE ALWAYS DONE. THAT IS WHAT WE WILL CONTINUE TO DO AND THAT IS WHAT WE ARE GOING TO GET DONE TOGETHER. WE WILL PRAY FOR BALTIMORE. I WOULD LIKE TO TURN THIS OVER TO SENATOR VAN HOLLEN WHO HAS DONE A REMARKABLE JOB WITH OUR FEDERAL DELEGATION. THANK YOU. >> THANK YOU, GOVERNOR. AS THE GOVERNOR SAID, WE COME TOGETHER. WE COME TOGETHER IN BALTIMORE AND MARYLAND. OUR HEARTS GO OUT TO ALL THOSE WHO WERE ON THE BRIDG

E AND THEIR LOVED ONES. WE PRAY FOR THEM. OUR GRATITUDE GOES OUT TO THE FIRST RESPONDERS WHO AS WE SPEAK ARE OUT THERE CONTINUING TO CONDUCT SEARCH-AND-RESCUE OPERATIONS. I WANT TO THANK THE GOVERNOR, THE LOCAL MAYOR, THE COUNTY EXECUTIVE, ALL THE PEOPLE GATHERED AS PART OF TEAM BALTIMORE AND TEAM MARYLAND. THE FEDERAL GOVERNMENT IS WITH THEM AS A PARTNER. THE COAST GUARD IS ALSO PART OF THIS MISSION. THE COAST GUARD CUTTERS, COAST GUARD AVIATION ASSETS. I SPOKE TWICE TODAY WITH SECRETARY OF TRA

NSPORTATION PETE BUTTIGIEG. HE HAS PLEDGED THEY WILL DO EVERYTHING THEY CAN TO VERY QUICKLY RELEASE EMERGENCY RESPONSE FUNDS FOR THIS IMPORTANT PROJECT. THE NATIONAL HIGHWAY TRANCE ROTATION ADMINISTRATION ADMINISTRATOR IS ON HIS WAY TO BALTIMORE IF HE IS NOT HERE ALREADY. THEY WILL BE RELEASING THE EARLY FUNDS ONCE ALL PARTIES ARE FULLY ENGAGED. SECOND, THE NATIONAL TRANSPORTATION SAFETY BOARD -- I TALKED TO THE CHAIR THIS MORNING. SHE AND HER TEAM WILL BE CONDUCTING AN INVESTIGATION OF WHAT HAP

PENED. FINALLY, THE ARMY CORPS OF ENGINEERS, NAVAL ASSETS FOR LOOKING BELOW THE SURFACE AND CLEARING ALL OF THIS WILL BE PART OF THE EFFORT. THE GOVERNOR IS LEADING TEAM MARYLAND. THE MAYOR AND THE COUNTY EXECUTIVE OUR TEAM BALTIMORE. I AM HERE TO SAY TOGETHER WITH SENATOR CARTON THE FEDERAL GOVERNMENT IS YOUR PARTNER IN THIS EFFORT. THANK YOU. AGAIN TO THE PEOPLE OF OUR STATE AND THE PEOPLE OF THIS GREAT CITY, WE ARE WITH YOU. WE LOVE YOU. WE WILL GET THROUGH THIS TOGETHER. THANK YOU. >> JUST A

FEW UPDATES THIS MORNING. THE CREW OUT THERE REPAIRING POTHOLES. IT HAD NOTHING TO DO WITH A STRUCTURAL ISSUE. ONE PERSON HAS BEEN RESCUED SO FAR. WE ARE CAN TO NEW EFFORTS IN TERMS OF THAT. ENGINEERS ARE ON SITE NOW DETERMINING THE STRUCTURAL ISSUES. YOU CAN SEE THE DEBRIS FIELD. WE ARE WORKING ON THAT WITH THE NTSB BEFORE WE TAKE FURTHER ACTIONS IN THAT AREA. I WANTED TO INTRODUCE THE FBI FOR COMMENTS AS WELL. >> HELLO. I'M THE SPECIAL AGENT IN CHARGE OF THE BALTIMORE FIELD OFFICE. FIRST AND

FOREMOST, I WANT TO SAY OUR HEARTS GO OUT TO EVERYONE IMPACTED BY THIS TRAGEDY. ESPECIALLY THE VICTIMS AND THEIR FAMILIES. ON BEHALF OF THE FBI I WOULD LIKE TO SAY WE ARE WITH YOU. WE ARE WITH BALTIMORE AND WITH OUR PARTNERS EVERY STEP OF THE WAY. THE FBI WHEN FIRST LOOKING AT AND ASSESSING THIS MATTER FROM AN INVESTIGATIVE STANDPOINT -- I WANTED TO BE CLEAR THERE IS NO SPECIFIC OR CREDIBLE INFORMATION TO SUGGEST THAT OUR TIES TO TERRORISM IN THIS INCIDENT. THE FBI HAS BEEN PART OF THE RESPONSE

IN THE BEGINNING. WE CAME WITHIN ONE HOUR TO THE COMMAND POST AND QUICKLY LATCHED UP WITH ARE VERY STRONG PARTNERS ALL ALONG THE WAY . WE WILL BRING WHATEVER RESOURCES THE FBI HAS TO BEAR. WE HAVE ALREADY BROUGHT OUR CRISIS RESPONSE, OUR VICTIM SERVICES, AND RECENTLY ARE UNDERWATER SEARCH EVIDENCE RECOVERY TEAMS ARE ON-SITE. WE WILL CONTINUE TO PROVIDE THOSE RESOURCES AS LONG AS IT TAKES. AS THE INVESTIGATION GOES ON WE WILL TAKE IT TO ITS LOGICAL CONCLUSION ALONG WITH OUR PARTNERS. TO THE PEOPL

E OF BALTIMORE, TO THE PUBLIC, BE PATIENT AS WE GO THROUGH THIS AND AS INFORMATION BECOMES AVAILABLE TO US. I WANT TO SAY THANK YOU TO OUR PARTNERS. THANK YOU TO EVERYONE IN THE FBI. WE WILL ALWAYS BRING -- TO THE PEOPLE OF BALTIMORE AND WE ARE WITH YOU. I WOULD LIKE TO INTRODUCE THE COAST GUARD. >> GOOD MORNING. THE COAST GUARD IS ACTIVELY SEARCHING AT THIS TIME USING RESPONSE BOAT CREWS FROM TWO LOCAL COAST GUARD STATIONS. WHENEVER HILO CREWS FROM AN AIR STATION ATLANTA CITY AND ONE OF OUR CUT

TER CREWS ON ONE OF HER 87 FOOT PATROL BOATS. WE WILL CONTINUE TO WORK WITH LOCAL, STATE, AND FEDERAL PARTNERS DURING THIS TRAGEDY. THANK YOU. >> WE ARE GOING TO START FROM THE SIDE. >> AS FAR AS WAS THE COLLAPSE OF THE BRIDGE INEVITABLE? >> WE ARE STILL THE PROCESS OF INVESTIGATING EXACTLY WHAT HAPPENED. WE DON'T HAVE ANY FURTHER DETAILS ABOUT WHETHER OR NOT IT WAS INEVITABLE OR NOT. THE BRIDGE WAS ACTUALLY FULLY UP TO CODE. WE HAVE NO FURTHER INFORMATION ABOUT WHAT HAPPENS DURING THAT TIME. .

>> HAS SHIPPING IN AND OUT OF THE PORT STOPPED? HOW LONG WILL IT BE BEFORE SHIPPING CAN RESUME? >> WE DON'T HAVE ANY ESTIMATES ON TIMELINE.