welcome to bloomberg markets i'm romaine bostick in the latest record close for u.s. stocks is put on pause with the s&p sitting on again to start the year. not much action here a lot of

restraint ahead of the treasury refunding details and the fed decision day and a deeper gauge of sentiment as earnings season kicks into high gear. you look at the big movers and that includes ups dropping 9.3% coming in well below analyst expectation meanwhile whirlpool with weaker than expected expectation saying the cash flow outlook. there are a few bright spots with gm with consensus growing that auto sales will continue to be resilient. and then micro, anything ai and a company they could promise in ai future.

raising that revenue forecast with the ai demand that is still outstripping supply. friday payroll reports, it is not looking good. ups cutting 14% of management. american airlines getting rid of 8% of customer support. lows, levis have all started the year with plans to trim down in the latest read on job vacancies. the number of americans quitting their jobs has failed to the lowest in three years showing workers are a little more cautious. let's bring in stuart.

some of the data suggest that the labor market could may not be as strong as we think. >> there is an uptick in jobs but underneath the numbers jobs are not confident they can get new jobs at higher wages. we are seeing that start to take up. the quit rate held steady and that should help to reduce churn in the labor market and ultimately the inflation impulse from the labor market. romaine: we will get a couple of data points between the job claims numbers but what can we extrapolate about what we know so far? stuart: we're expecting a

giveback from the payroll reports. that was in part because of a beautiful december but it led to an unseasonably cool january and a cooling in number of jobs. where expecting 165,000 jobs added in a population adjustment that will put upward pressure on the unemployment rate. romaine: stuart pohl with bloomberg economics. let's go from one story to another, let's kick off where the other stuart left off. we are all paying attention to the job market data because were trying to get a read on the fed tomorrow.

stuart: the jobs report is a little more important, is said 240,000 so we have a pretty bullish outlook for the jobs report. in terms of the fed, there is a little more wiggle room. we expect them to remove the tightening bias which is the consensus across the street with the audit for cut at 50-50. as they've focus on dovish suspects like we have seen inflation come down, there are external shocks in the middle east and china or do they discuss the strong labor market and work to be done on inflation. i think there is some wiggle

room in what we get out of the fed tomorrow which is why we are flat today. romaine: do you think they will have the clarity to see what comes out of jay powell's mouth or the labor market report or will we need another month, two months to piece it together? stuart: it was a price be if we end up frustrated with the fed. there is going to be a complaint one way or the other. in terms of the jobs report, if you predict something in the high range, we have seen momentum strong and this will be a continuation of that. average hourly earnings were an upside surprise so that will be some nuance below the service. if we see an upside in wages that could cloud the message

from a payroll support. but i think a strong payrolls is positive for markets. romaine: the commentary out of companies that have announced layoffs like ups and management positions, microsoft, tiktok also saying they are trimming down. stuart: the ups headline catches your attention because they are exposed to u.s. growth and global trade. we have a tight labor market and the fed would like to see loosening in the labor market so in that sense, they will be happy to see corporate america loosening up the labor market. from our perspective you don't want to see large cap companies cut jobs. it's on our radar but it's not front and center. romaine: that brings us back to

the question of corporate earnings and the expectations for this year. no one is really expecting to see a huge gain in earnings growth what is your expectation? stuart: a better-than-expected growth in 2024 2.4 so far. earning surprised by a percent. consensus is been revised downward. i would say that if we get 10 plus eps growth you would have to view that as a net positive for markets. the bar is a little higher this year so it will be interesting to see how the market response of those earnings. on the economic side, even

though the data are strong we need to see if that's repeated on the single stock side. we are pretty happy on how things have progressed this far. romaine: i have to ask you about the treasury refunding and how that will affect the trajectory of rates here. what do you expect? stuart: the data look like slightly lower liquidity. options were a bit of a risk factor and we expected that to be the case. as to just a little less supply coming into the system is the fed is lowering rates. it does reduce the risk of treasury markets spilling into equity markets. there is so much uncertainty about the path of fed policy going forward. romaine: always great to talk to

you helping to kick off the show a big focus on a big week. coming up, boeing expected to report earnings. the jed manufacturer failing to win over airlines when it comes to safety. this is bloomberg. ♪ an ever-changing landscape comes with challenges. from our vantage point, we see opportunities. as a top-ten real estate manager, we harness the power of a 360° perspective, delivering local insights and global expertise across public and private equity and debt. our experienced team and vast network uncover compelling opportunities

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romaine: welcome back to bloomberg markets, romaine bostick and the close look at the movers of the day. ahead of the earnings report, analysts and investors are trying to quantify the fallout

from the 737s max 9s jed. t. it will be a struggle to assuage investors and passengers alike. let's get right to it, i know the numbers themselves will be a point of interest but everyone wants to know where we stand with the grounding of these macs nine jets. >> i think it is clear tomorrow won't be a positive for boeing stock. we are looking forward to the guidance. they have lost 30 billion since january, that means investors are assuming 1.7 billion and outflows. they were expecting for billion

but is seems like it will be closer to 2.5-4 billion. they are expecting the were mac delivery. they are taking a haircut because of the faa application for the max 9s. no one knows what that cap means. is that at 31, 38, 32? romaine: you think they will be able to stick by their delivery targets? sheila: i think they will come closer to the 4, 5 billion mark versus anywhere else. i don't think the faa will cap production at the 31 mark. we think it will be around 40.

we are concerned with the max seven certification. we are looking for exemptions and deliveries to start. boeing is working with the faa. trying to get the tenant across. 97% of those going to one carrier, southwest. the max 10 is significant for united and delta. romaine: what are we talking about? there are only a handful so far? sheila: only a handful in 24 but in 26 it sets up because that's 25% of deliveries. it is a much larger aircraft and allows for updates. the only way for airlines to grow is to carry more passengers.

it is also a quarter of the backlog. you can't change from a 72 and a at the 10 you have to look at competitors. we have ryanair, united and alaska positioning for better price negotiation. romaine: discus to question about the leadership, dave calhoun has been there since 2020. you have heard some of the comments by some of the airlines that are clearly fed up with things going on over there. what does the story become, it is not just about deliveries is about making sure longer you have a customer base confident in your leader and boeing's company. sheila: the max nine issue was a manufacturing issue, we don't

have an official conclusion but it seems that's the case. you have to exercise operational excellence it is difficult and a supply chain that is so vast. i think that is what management's focus has to be to restore confidence in his customer base. romaine: grade to stock up with you goodbye have a busy couple of hours over a jeffries. the stock is down 2.47%. a big day for dave calhoun and his team. coming up we will talk to a big name from hollywood. you know him from game of thrones but he has something new, a new show called an optimist guide to the planet. that conversation coming up

after the break. this is bloomberg.

romaine: welcome back to bloomberg markets, romaine bostick on this tuesday afternoon and the chance to plug a new bloomberg series called an optimist guide to the planet looking at innovative ways to solve our environmental crisis. we are joined by nikolaj coster-waldau. if he looks familiar he has had a pretty long run in hollywood including game of thrones. it may be not that far away from game of thrones but how did you

take an interest in this? nikolaj: it's not a show about climate change but about solutions in the messaging that comes from these issues. there is this constantly end of the world rhetoric if we don't act, the challenges are very real but this was a way of saying, we have solutions. it's not just in our part of the world it is global. there are people everywhere coming up with ideas and i wanted to spotlight that. what you find out is our part of the world, half of young people believe we are doomed and that's simply not the case. this is a story about humans and how much we have in common. romaine: when i saw the title and i'm probably more of a pessimist, i thought give me

something to be optimistic about? nikolaj: i was a goodwill ambassador is how i got into this. i was in san francisco with climate action in one of the things they had to do was get an electric car. this was six years ago. in northern europe most sold cars are electric. the transition is happening all over the world. in kenya we were driving around on the electric bikes. in parts of africa and asia motorcycles are the main form of transportation. in germany, they have already commissioned a new power plant. we had when power and this is

never going to work and now they are exceeding the needs in northern germany. there are so many solutions and it does already being scaled up. that doesn't mean to say i'm just happy and i'm an optimist. it's important for people to understand, we are doing something. we are pointing fingers at each other and thus not very helpful. romaine: how many countries did you go to for this series? nikolaj: more 15, africa, asia, australia, europe mexico and greenland. romaine: where their material differences in the way people work approaching it based on region?

nikolaj: one of the reason we wanted to do this is a global so . it's great to be here on bloomberg because the support has been immense. it is to remind ourselves why we want to save this planet? what would you bring if it was just you, the one thing we can't live without his humans. we have to believe in each other. the challenges we face are the same all over the world. circumstances are different if you live in tanzania or new york. but what we all want is a better tomorrow and that is important to remind ourselves. one thing about the show that i'm proud of is that it is a lot of fun. it's fun to me people who are passionate and who believe in tomorrow and making a difference.

we have to get away from this thing saying if you don't make the right choices than you are a good or bad person. we are in this together. he who is without sin, no one is winning. romaine: i encourage everyone to check it out. hopefully in 20 years from now. nikolaj: i believe we will have made the transition away from fossil fuels. romaine: thank you for being here and welcome to bloomberg. an optimist guide to the planet airing february 8. as we wrap up this edition of bloomberg markets a closer look at the markets. the fed starting its two day meeting in washington and a slew

of market data as the week goes on. that includes stocks, response and the dollar as well. stick with us we will have full market coverage throughout the day here on bloomberg. ♪ - [mo] if you're thinking about going back to school, this is for you. ♪ - i ended up spending less money my entire time at snhu than i did in just one year at my other university. - [juan] my time at snhu has given me more confidence. now i can go for that promotion. - if you're ready to go back to school... you can do it. southern new hampshire university has changed my life. and it can change yours too. ♪ - [announcer] visit snhu.edu. how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun!

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