RUSH TRANSCRIPT Morning down ░░░░░░░░ a third of one ░░░░░░░░ the NASDAQ down almost ░░░░░░░░ down 106 right now ░░░░░░░░ P down 1w5 big ░░░░░░░░ economic data that could ░░░░░░░░ market moving we ve ░░░░░░░░ March CPI out Wednesday ░░░░░░░░ March ppi on Thursday ░░░░░░░░ sales out Friday and ░░░░░░░░ earnings season begins this ░░░░░░░░ joining me right now ░░░░░░░░ Stanley private wealth senior ░░░░░░░░ president Katerina Simonetti katerina ░░░░░░░░ to see you Thank ░░░░░░░░ for being here I ░░░░░░░░ your take first he ░░░░░░░░ economic data CPI ppi ░░░░░░░░ sales what might we ░░░░░░░░ this week Maria thank ░░░░░░░░ for having me on ░░░░░░░░ show The economic data ░░░░░░░░ far has been coming ░░░░░░░░ than expected But we ░░░░░░░░ t ignore the fact ░░░░░░░░ stocks are facing significant ░░░░░░░░ on earnings if we ░░░░░░░░ forward looking approach and ░░░░░░░░ is so trying to ░░░░░░░░ of bear market territory ░░░░░░░░ might have to see ░░░░░░░░ market actually play out ░░░░░░░░ before it comes to ░░░░░░░░ conclusion data comes in ░░░░░░░░ rnz might continue to ░░░░░░░░ as a result of ░░░░░░░░ inflation environment Maria I ░░░░░░░░ t hear you someone ░░░░░░░░ pressing the button I ░░░░░░░░ your take on first ░░░░░░░░ earnings that really is ░░░░░░░░ to give us a ░░░░░░░░ sense of where we ░░░░░░░░ they kickoff Friday major ░░░░░░░░ we we spoke with ░░░░░░░░ orlando what he said ░░░░░░░░ to come We re ░░░░░░░░ to start earnings he ░░░░░░░░ next week revenues georke ░░░░░░░░ up 2 year on ░░░░░░░░ half a year ago ░░░░░░░░ think earnings down 6 ░░░░░░░░ 2 earnings a year ░░░░░░░░ up 10 or 11 ░░░░░░░░ we below consensus there ░░░░░░░░ what about that katerina ░░░░░░░░ better than 6 on ░░░░░░░░ quarter earnings what is ░░░░░░░░ important as you know ░░░░░░░░ the guidance from CEOs ░░░░░░░░ expecting for the rest ░░░░░░░░ the year but the ░░░░░░░░ are going to be ░░░░░░░░ first group that really ░░░░░░░░ how first quarter played ░░░░░░░░ the Federal Reserve has ░░░░░░░░ reported that U S ░░░░░░░░ lending dropped nearly 105 ░░░░░░░░ dollars in final weeks ░░░░░░░░ mauf following collapse Silicon ░░░░░░░░ bank What would you ░░░░░░░░ Earnings are definitely on ░░░░░░░░ declining path not just ░░░░░░░░ result of most recent ░░░░░░░░ crisis to be a ░░░░░░░░ more arriving lending especially ░░░░░░░░ real estate going to ░░░░░░░░ earnings on banks even ░░░░░░░░ but the general trend ░░░░░░░░ the earnings decline goes ░░░░░░░░ further than that It ░░░░░░░░ affected by prior interest ░░░░░░░░ environment affected by inflation ░░░░░░░░ be a reality for ░░░░░░░░ sometime as much as ░░░░░░░░ Reserve wants to get ░░░░░░░░ to the 2 mark ░░░░░░░░ re not quite there ░░░░░░░░ we might not get ░░░░░░░░ for quite sometime So ░░░░░░░░ could puts significant precious ░░░░░░░░ earnings really narrows profit ░░░░░░░░ going to be more ░░░░░░░░ to operate in this ░░░░░░░░ until they get to ░░░░░░░░ levels the reality of ░░░░░░░░ in this interest rate ░░░░░░░░ we are not going ░░░░░░░░ be able to really ░░░░░░░░ into the next bull ░░░░░░░░ we are anticipating and ░░░░░░░░ Maria I mean earnings ░░░░░░░░ is one thing they ░░░░░░░░ to come down the ░░░░░░░░ thing is just the ░░░░░░░░ of higher rates right ░░░░░░░░ is not just a ░░░░░░░░ problem that is that ░░░░░░░░ a problem for corporate ░░░░░░░░ in general we ve ░░░░░░░░ nearly 1 1 2 ░░░░░░░░ dollars of U S ░░░░░░░░ real estate debt coming ░░░░░░░░ for repayment before end ░░░░░░░░ 2025 Morgan Stanley analyst ░░░░░░░░ refinancing risks front and ░░░░░░░░ estimating office retail property ░░░░░░░░ could fall 40 that ░░░░░░░░ a big number are ░░░░░░░░ thoughts in terms of ░░░░░░░░ this means as all ░░░░░░░░ this debt comes due ░░░░░░░░ over this year something ░░░░░░░░ Pomboy has 25ukd about ░░░░░░░░ long once particularly small ░░░░░░░░ cap companies face higher ░░░░░░░░ levels may not be ░░░░░░░░ to keep up with ░░░░░░░░ payments We could see ░░░░░░░░ you bureaucracies Absolutely couple ░░░░░░░░ office space with environment ░░░░░░░░ never be the same ░░░░░░░░ cultural change experienced plus ░░░░░░░░ fact there is going ░░░░░░░░ be refinancings to your ░░░░░░░░ going to come up ░░░░░░░░ the interest rates are ░░░░░░░░ higher not just marginally ░░░░░░░░ is a huge concern ░░░░░░░░ the other side of ░░░░░░░░ real estate that is ░░░░░░░░ life sciences hospitality different ░░░░░░░░ in the country where ░░░░░░░░ are doing better than ░░░░░░░░ but overall if you ░░░░░░░░ at lending if we ░░░░░░░░ at the the facilities ░░░░░░░░ rent doing business changes ░░░░░░░░ quite drastically going to ░░░░░░░░ margins in a significant ░░░░░░░░ A would you buy ░░░░░░░░ or avoid We would ░░░░░░░░ buy stocks the environment ░░░░░░░░ better investors can take ░░░░░░░░ opportunities advantages of the ░░░░░░░░ opportunities of this market ░░░░░░░░ just need a broader ░░░░░░░░ time horizon Thank you ░░░░░░░░ weighinging in Katerina Simonetti ░░░░░░░░ us this morning from ░░░░░░░░ Stanley morning mover Tesla ░░░░░░░░ premarket take a look at