FAA Chief testifies on Boeing's manufacturing lapses, labor rift potential. Small business optimism and preparations for Valentine's Day. Pressure and cyber preparedness for businesses. Positive macro trends and transition to electric vehicles in the auto industry. Challenges and considerations of EV transition and charging infrastructure. Bloomberg Surveillance, treasury trade, and investment environment discussed.
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Quick takeaways
The FAA chief attributes tighter oversight to Boeing's repeated lapses in compliance.
Inflation is impacting the floral industry, particularly during Valentine's Day.
Deep dives
Outlook on the Business Cycle
The market should not declare premature victory on a soft landing of the business cycle, as it may not be completely correct. The market's assumption that a recession will never come may also prove to be incorrect. It is important for investors to remain cautious and not overlook the possibility of a recession.
Money Market Trends
Money market fund assets are reaching record levels, indicating a preference for low-risk investments. However, this could also be a rational investment decision due to the attractive yields currently offered in money markets. If the Federal Reserve starts cutting rates, money may flow out of money market funds and into other income-generating assets or safe haven assets like gold and treasuries.
Investor Risk Tolerance
Investors are seeking income-generating assets in the current environment with attractive interest rates. If the soft landing scenario unfolds and the Federal Reserve delays rate cuts, investors may become more nervous and move their money into safer options like gold, long-term treasuries, or defensive parts of the stock market.
Meme Stock Behavior
While there are stocks experiencing significant price moves, the market hasn't seen widespread meme stock behavior similar to what was observed in 2020 and 2021. However, there have been substantial price jumps in certain stocks, and momentum continues until it stops.
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Intelligence Senior Airlines Analyst George Ferguson and Bloomberg News Projects and Investigations Reporter Peter Robison break down the FFA testimony before the House on Boeing’s blowout. Christina Stembel, Founder of Farmgirl Flowers, discusses the impact of inflation on the floral industry this Valentine’s Day. Ivan Feinseth, Senior Partner and Chief Investment Officer at Tigress Financial Partners, shares his thoughts on Ford earnings. And we Drive to the Close with Liz Young, Head of Investment Strategy at SoFi. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.