1 00:00:02,680 --> 00:00:05,840 Speaker 1: Live from the Bloomberg Interactive Berger Studios. This is Bloomberg 2 00:00:05,920 --> 00:00:09,119 Speaker 1: day Break for a Wednesday, June one, two Coming up 3 00:00:09,119 --> 00:00:11,800 Speaker 1: this hour, Wall Street kicks off a new trading month 4 00:00:11,840 --> 00:00:14,480 Speaker 1: after May saw the sp five hundred seater on a 5 00:00:14,560 --> 00:00:17,880 Speaker 1: bear market. Treasury Secretary Janet Yellen says she got it 6 00:00:17,960 --> 00:00:21,240 Speaker 1: wrong last year on inflation. The Fed starts to shrink 7 00:00:21,280 --> 00:00:24,000 Speaker 1: its eight point nine truly a dollar ballot sheet, and 8 00:00:24,040 --> 00:00:27,440 Speaker 1: the US ramps up military support to Ukraine. New York 9 00:00:27,440 --> 00:00:30,600 Speaker 1: Governor Hukill introduces new gun reform measures, Plus the first 10 00:00:30,640 --> 00:00:33,839 Speaker 1: funerals have again for the victims of the Texas school shooting. 11 00:00:34,080 --> 00:00:37,640 Speaker 1: I'm Michael larn More. Ahem, I'm John Stashon sports blowout 12 00:00:37,640 --> 00:00:39,600 Speaker 1: wins at home for the Mets and the Yankees. Rangers 13 00:00:39,600 --> 00:00:44,720 Speaker 1: in lightning play Game one at the Garden tonight. That's 14 00:00:44,720 --> 00:00:48,639 Speaker 1: all trading ahead on Bloomberg Daybreak on Bloomberg eleven three 15 00:00:48,680 --> 00:00:53,120 Speaker 1: on New York, Bloomberg one, Washington, d C, Bloomberg one 16 00:00:53,159 --> 00:00:57,639 Speaker 1: oh six one, Boston, Bloomberg nine sixties and Francisco Sirius 17 00:00:57,800 --> 00:01:00,120 Speaker 1: x M one nine team and around the world Old 18 00:01:00,160 --> 00:01:03,800 Speaker 1: on Bloomberg Radio dot Com and via the Bloomberg Business 19 00:01:07,440 --> 00:01:10,560 Speaker 1: and good morning. I'm Karen Moscow, I'm Nathan Hagar. Bloomberg 20 00:01:10,600 --> 00:01:12,840 Speaker 1: Daybreak is brought to you by B and Y Melon's 21 00:01:12,840 --> 00:01:16,240 Speaker 1: Pershing Inside Conference back in person June fifteen through the 22 00:01:16,280 --> 00:01:20,000 Speaker 1: seventeenth in Grapevine, Texas, a must attend event for financial advisors, 23 00:01:20,000 --> 00:01:24,000 Speaker 1: registered today at Inside dot b n y Melon dot Com, 24 00:01:24,000 --> 00:01:26,840 Speaker 1: and US futures are mixed this morning. It is six 25 00:01:26,840 --> 00:01:28,640 Speaker 1: and went on Wall Street. We checked the markets every 26 00:01:28,680 --> 00:01:31,720 Speaker 1: fifteen minutes throughout the trading day. On Bloomberg. SMP future 27 00:01:31,800 --> 00:01:33,960 Speaker 1: is up five points down, futures up a hundred, twenty 28 00:01:33,959 --> 00:01:37,039 Speaker 1: four nasday futures are down thirteen and the ten year 29 00:01:37,040 --> 00:01:39,400 Speaker 1: treasury down four thir Day seconds held two point eight 30 00:01:39,440 --> 00:01:42,200 Speaker 1: six percent, yield on the two year two point five 31 00:01:42,240 --> 00:01:45,520 Speaker 1: seven percent. Nathan Karen. US stocks begin June after a 32 00:01:45,520 --> 00:01:48,480 Speaker 1: month where the SMP five hundred was basically unchanged, but 33 00:01:48,560 --> 00:01:51,960 Speaker 1: that does not explain the extreme volatility during the month 34 00:01:51,960 --> 00:01:54,760 Speaker 1: of May. The benchmark index surged more than eight percent 35 00:01:55,040 --> 00:01:57,760 Speaker 1: after falling within points of a twenty percent drop from 36 00:01:57,760 --> 00:02:01,040 Speaker 1: a record, signifying a bear market. Peter Oppenheimer is chief 37 00:02:01,080 --> 00:02:04,000 Speaker 1: Global equity Strategist at Goldman Sacks. If you look at 38 00:02:04,040 --> 00:02:07,440 Speaker 1: the history for markets, at least when you get pea inflation, 39 00:02:07,520 --> 00:02:10,200 Speaker 1: you do tend to get a recovery in risk assets, 40 00:02:10,280 --> 00:02:14,119 Speaker 1: and that's generally because it starts to alleviate pressures on 41 00:02:14,120 --> 00:02:18,960 Speaker 1: on interest rates. By that stage, you've usually had markets 42 00:02:18,960 --> 00:02:22,960 Speaker 1: already pricing in an economic downturn. So at the point 43 00:02:23,040 --> 00:02:26,320 Speaker 1: where people think that things are bad but getting less bad, 44 00:02:26,520 --> 00:02:29,080 Speaker 1: you tend to get a recovery. Goldman Sacks. Chief global 45 00:02:29,120 --> 00:02:32,240 Speaker 1: equity strategist Peter Oppenheimer still says he expects markets to 46 00:02:32,240 --> 00:02:35,080 Speaker 1: be very volatile over the next few months. Well, Nathan. 47 00:02:35,120 --> 00:02:38,200 Speaker 1: Helping to lift sentiment this morning is corporate earning shares 48 00:02:38,200 --> 00:02:40,600 Speaker 1: a sales Fource up eight percent in early training, the 49 00:02:40,600 --> 00:02:43,280 Speaker 1: company raising its annual profit forecast. We get more from 50 00:02:43,280 --> 00:02:47,000 Speaker 1: Bloomberg's Don Christner. It signals demand for business software is 51 00:02:47,040 --> 00:02:50,880 Speaker 1: holding up in the face of macro economic instability. Salesforce 52 00:02:50,880 --> 00:02:54,120 Speaker 1: said fiscal year earnings excluding some items will be as 53 00:02:54,200 --> 00:02:57,520 Speaker 1: much as four dollar seventy six cents. Analysts on average 54 00:02:57,639 --> 00:03:01,680 Speaker 1: estimated annual profit of four dollar sixty eight cents. Salesforce 55 00:03:01,840 --> 00:03:05,200 Speaker 1: is the leader in cloud based customer management software now 56 00:03:05,280 --> 00:03:08,239 Speaker 1: during the pandemic. The company expanded its products for business 57 00:03:08,280 --> 00:03:12,639 Speaker 1: productivity with the purchase of the messaging platform Slack at 58 00:03:12,639 --> 00:03:15,600 Speaker 1: a price of twenty seven point seven billion dollars in 59 00:03:15,639 --> 00:03:18,280 Speaker 1: New York. I'm Doug Chrisner, Bloomberg Daybreak. All right, Doug. Thanks. 60 00:03:18,360 --> 00:03:20,840 Speaker 1: Crude oil is also on the rise this morning, trading 61 00:03:20,880 --> 00:03:23,519 Speaker 1: at a hundred sixteen seventy five cents for a barrel 62 00:03:23,520 --> 00:03:26,160 Speaker 1: of West Texas Intermediate. This comes ahead of an OPEC 63 00:03:26,200 --> 00:03:30,000 Speaker 1: plus routine meeting tomorrow to discuss supply policy at more. 64 00:03:30,280 --> 00:03:33,200 Speaker 1: City Groups Global ahead of Commodity Research, says triple digit 65 00:03:33,200 --> 00:03:35,480 Speaker 1: oil should be a lot lower. We have to just 66 00:03:35,800 --> 00:03:38,080 Speaker 1: look at the cost structure of the industry. You have 67 00:03:38,120 --> 00:03:40,960 Speaker 1: to look at where new production is coming and where 68 00:03:41,040 --> 00:03:43,280 Speaker 1: would be coming even if we didn't have a hundred 69 00:03:43,360 --> 00:03:46,720 Speaker 1: twenty three dollar red and I'd say it's more in 70 00:03:46,720 --> 00:03:48,920 Speaker 1: the seventy dollar range than it is in the d 71 00:03:49,120 --> 00:03:51,680 Speaker 1: twenty dollar range. City Group said. Moore says demand for 72 00:03:51,680 --> 00:03:54,520 Speaker 1: oil and refined products is falling as the economy starts 73 00:03:54,520 --> 00:03:57,440 Speaker 1: bracing for a recession. Well, Nathan, inflation is still a 74 00:03:57,440 --> 00:04:00,120 Speaker 1: major focus for markets and the top political challenge for 75 00:04:00,160 --> 00:04:03,080 Speaker 1: the White House now Treasury Secretary Janet Yellen is admitting 76 00:04:03,120 --> 00:04:05,520 Speaker 1: she got it wrong last year when she said inflation 77 00:04:05,560 --> 00:04:09,800 Speaker 1: would only be temporary. There have been an anticipated and 78 00:04:10,000 --> 00:04:14,880 Speaker 1: lord shocks to the economy that have boosted energy and 79 00:04:15,040 --> 00:04:20,680 Speaker 1: food prices and um supply bottlenecks that have affected our 80 00:04:20,720 --> 00:04:25,600 Speaker 1: economy badly that I didn't at the time, didn't fully understand, 81 00:04:26,040 --> 00:04:29,800 Speaker 1: but we recognize that now. In an interview as CNN, 82 00:04:29,839 --> 00:04:33,000 Speaker 1: Secretary Yellen said she's encouraged that corporations have started to 83 00:04:33,040 --> 00:04:36,000 Speaker 1: come down, but she says she cannot rule out future shocks. 84 00:04:36,080 --> 00:04:38,480 Speaker 1: The Secretary Yellen was at the White House yesterday Karen 85 00:04:38,480 --> 00:04:41,280 Speaker 1: for a rare meeting between President Biden and FED chair 86 00:04:41,400 --> 00:04:44,320 Speaker 1: j Powell. President used it to declare that he respects 87 00:04:44,320 --> 00:04:48,720 Speaker 1: Central Bank independence while shifting responsibility for taming decades high inflation. 88 00:04:48,920 --> 00:04:51,440 Speaker 1: I'm not going to interfere with their critically important work. 89 00:04:52,080 --> 00:04:57,279 Speaker 1: FED as tool responsibilities one full employment to stable prices. 90 00:04:57,560 --> 00:05:00,920 Speaker 1: This was President Biden's third in person session Powellson's taking 91 00:05:00,920 --> 00:05:03,320 Speaker 1: office well. The FED will also be in focus today. 92 00:05:03,400 --> 00:05:06,080 Speaker 1: Nathan's set to start shrinking at eight point nine trillion 93 00:05:06,080 --> 00:05:09,240 Speaker 1: dollar balance sheet. The Central Bank also releases the Beige Book, 94 00:05:09,279 --> 00:05:12,120 Speaker 1: and we get more from Bloomberg's Michael McKee. The question 95 00:05:12,200 --> 00:05:14,640 Speaker 1: is what will investors learn from the Beige Book that 96 00:05:14,680 --> 00:05:17,560 Speaker 1: they don't already know. Are there hints in the anecdotal 97 00:05:17,600 --> 00:05:20,760 Speaker 1: reports suggesting some goods or services are seeing prices the 98 00:05:20,839 --> 00:05:24,239 Speaker 1: level offer decline? Will there be any indications the labor 99 00:05:24,279 --> 00:05:27,560 Speaker 1: market is loosening? Overall, the Beige Book is likely to 100 00:05:27,600 --> 00:05:30,919 Speaker 1: assess the economy continues to expand at a moderate pace. 101 00:05:31,040 --> 00:05:34,480 Speaker 1: That's the phrase the Fed usually uses. Consumers are still 102 00:05:34,480 --> 00:05:37,960 Speaker 1: spending and manufacturers are trying to keep up. The survey 103 00:05:38,080 --> 00:05:41,479 Speaker 1: is one input into FED policy decisions, but the Central 104 00:05:41,520 --> 00:05:44,000 Speaker 1: Bank has already suggested it's made up his mind to 105 00:05:44,160 --> 00:05:47,640 Speaker 1: raise rates at the next two meetings. Michael McKee, Bloomberg Daybreak. 106 00:05:47,680 --> 00:05:49,640 Speaker 1: All right, Mike, thank you now. The latest developments on 107 00:05:49,680 --> 00:05:52,760 Speaker 1: the war. President Biden says he will give Ukraine advanced 108 00:05:52,839 --> 00:05:55,679 Speaker 1: rocket systems another weaponry to help at the battle with Russia. 109 00:05:55,880 --> 00:05:59,680 Speaker 1: Amy Morris has details from our Bloomberg newsroom in Washington. 110 00:06:00,040 --> 00:06:02,240 Speaker 1: The President made the announcement in a New York Times 111 00:06:02,320 --> 00:06:06,200 Speaker 1: article published last night. As senior US official hotels Bloomberg News. 112 00:06:06,360 --> 00:06:09,360 Speaker 1: The package includes missiles that will allow Ukraine to strike 113 00:06:09,400 --> 00:06:12,679 Speaker 1: locations as far as eighty kilometers away, and while world 114 00:06:12,800 --> 00:06:15,679 Speaker 1: leaders have publicly called for such a move, one concern 115 00:06:15,800 --> 00:06:18,880 Speaker 1: is whether Ukraine would use them to strike targets inside 116 00:06:18,960 --> 00:06:21,919 Speaker 1: Russia that would risk expanding the war and pulling in 117 00:06:22,000 --> 00:06:25,080 Speaker 1: NATO countries. The White House plans to formally announce the 118 00:06:25,120 --> 00:06:29,400 Speaker 1: new seven hundred million dollar security assistance package today in Washington. 119 00:06:29,480 --> 00:06:32,520 Speaker 1: I'm Amy Morris Bloomberg Daybreak, Right, Amy, thank you. President 120 00:06:32,560 --> 00:06:35,760 Speaker 1: Biden will also be addressing the baby formula shortage and 121 00:06:35,839 --> 00:06:37,960 Speaker 1: the country. The White House stade the President will mean 122 00:06:38,040 --> 00:06:41,920 Speaker 1: virtually with infant formula manufacturers this afternoon. Finally, care In 123 00:06:41,960 --> 00:06:44,120 Speaker 1: the world's richest man appears to have had it with 124 00:06:44,160 --> 00:06:48,039 Speaker 1: this whole working from home business testas CEO Elon Musk 125 00:06:48,080 --> 00:06:50,800 Speaker 1: wade in on the debate on Twitter by elaborating on 126 00:06:50,880 --> 00:06:54,200 Speaker 1: an email he apparently sent to the Electric Carmakers executive 127 00:06:54,200 --> 00:06:57,680 Speaker 1: staff under the subject line remote work is no longer acceptable. 128 00:06:58,040 --> 00:07:00,640 Speaker 1: Musk wrote that anyone who wishes to do remote work 129 00:07:00,839 --> 00:07:03,200 Speaker 1: must be in the office for a minimum of forty 130 00:07:03,200 --> 00:07:07,080 Speaker 1: hours per week or depart Tesla right now. S and 131 00:07:07,120 --> 00:07:09,120 Speaker 1: p futures are up three points. Stown features of a 132 00:07:09,200 --> 00:07:12,640 Speaker 1: hundred sixteen NASTAC futures are lower by nineteen points. The 133 00:07:12,680 --> 00:07:15,520 Speaker 1: tenure treasury yield right now two point eight six percent. 134 00:07:16,000 --> 00:07:18,400 Speaker 1: Local headlines and a check of sports. Up next to 135 00:07:18,480 --> 00:07:24,960 Speaker 1: this is Bloomberg Sounds six o seven on Wall Street 136 00:07:24,960 --> 00:07:27,440 Speaker 1: board sixty degrees in Central Park dealing with an accident 137 00:07:27,480 --> 00:07:30,720 Speaker 1: on the westbound Belt Parkway a cross Bay Boulevard. Details 138 00:07:30,760 --> 00:07:32,880 Speaker 1: coming up at Traffic. First Michael bar with Warre on 139 00:07:32,960 --> 00:07:34,640 Speaker 1: what's going on in New York and around the world. 140 00:07:34,640 --> 00:07:37,400 Speaker 1: Good morning, Michael, Good morning Nathan. New York Governor Kathy 141 00:07:37,400 --> 00:07:41,240 Speaker 1: Hocill introduced a new package of gun reform bills aftermass 142 00:07:41,240 --> 00:07:44,400 Speaker 1: shootings in Buffalo and U Valley. It is a total 143 00:07:44,440 --> 00:07:47,320 Speaker 1: of ten bills that would tighten New York's gun laws 144 00:07:47,320 --> 00:07:50,840 Speaker 1: and closed loopholes. Hocal says New York already has some 145 00:07:50,880 --> 00:07:53,040 Speaker 1: of the toughest gun laws in the country, but clearly 146 00:07:53,480 --> 00:07:56,800 Speaker 1: we need to make them even stronger. Among the proposed 147 00:07:56,920 --> 00:08:00,480 Speaker 1: legislation is increasing the minimum age require meant by a 148 00:08:00,520 --> 00:08:04,480 Speaker 1: semi automatic rifle from eighteen to twenty one. The victims 149 00:08:04,520 --> 00:08:07,320 Speaker 1: of last week's mass shooting and the Texas grade school 150 00:08:07,320 --> 00:08:09,800 Speaker 1: are being laid to rest in New Valley. The first 151 00:08:09,840 --> 00:08:13,560 Speaker 1: funerals were held yesterday. A gunman killed nineteen children and 152 00:08:13,760 --> 00:08:17,080 Speaker 1: two teachers. One of those teachers was Eva morrell As. 153 00:08:17,440 --> 00:08:21,480 Speaker 1: Her sister, Maggie Morrells Thomas says she told Governor Abbot 154 00:08:21,480 --> 00:08:23,640 Speaker 1: that if he wants to help, he could change the 155 00:08:23,640 --> 00:08:27,720 Speaker 1: state's gun laws. There's no reason why this type of 156 00:08:27,960 --> 00:08:33,959 Speaker 1: weapon should be among us people here. These things belong 157 00:08:34,040 --> 00:08:37,959 Speaker 1: in the war. There's no war in the classroom. There's 158 00:08:38,000 --> 00:08:42,320 Speaker 1: no war out here in Valdi. Maggie Morrellus Thomas says 159 00:08:42,400 --> 00:08:45,040 Speaker 1: she does not want anyone to forget her sister's name. 160 00:08:45,440 --> 00:08:48,240 Speaker 1: A woman wounded in an April New York City subway 161 00:08:48,280 --> 00:08:52,040 Speaker 1: shooting is filed a lawsuit against gun manufacturer Glock. In 162 00:08:52,080 --> 00:08:56,000 Speaker 1: her lawsuit, Eileen Stewart said Glock endangered the public health 163 00:08:56,040 --> 00:08:59,840 Speaker 1: and safety with the marketing, distribution, and sales of its gun. 164 00:09:00,480 --> 00:09:03,079 Speaker 1: Ten people were shot and wounded as a man fired 165 00:09:03,080 --> 00:09:06,400 Speaker 1: dozens of bullets and the subway train full of morning commuters. 166 00:09:06,880 --> 00:09:09,360 Speaker 1: New York is suspending its gas tax for the rest 167 00:09:09,400 --> 00:09:11,760 Speaker 1: of the year. It would save sixteen cents per gallon, 168 00:09:12,120 --> 00:09:16,320 Speaker 1: joining Connecticut and suspending its gas tax. The energy Department 169 00:09:16,360 --> 00:09:19,400 Speaker 1: says the nationwide record average for a gallon of gas 170 00:09:19,480 --> 00:09:21,960 Speaker 1: rose three cents in the past week to four dollars 171 00:09:22,000 --> 00:09:26,719 Speaker 1: sixty two cents. Governor HOCl announces new LI Double R 172 00:09:26,960 --> 00:09:32,520 Speaker 1: terminal in Mentown, Manhattan. It will be named Grand Central Medicine. 173 00:09:33,080 --> 00:09:35,720 Speaker 1: You're talking about a place as iconic as Grand Central. 174 00:09:36,720 --> 00:09:39,680 Speaker 1: You can't change that. And this conjures up the images 175 00:09:39,800 --> 00:09:44,240 Speaker 1: of glory in a time early nine, nineteen eleven twelve, 176 00:09:44,320 --> 00:09:49,840 Speaker 1: when when the world was stunned by the magistrate of 177 00:09:49,920 --> 00:09:53,160 Speaker 1: this building itself. Governor Hocal says it will be completed 178 00:09:53,200 --> 00:09:55,719 Speaker 1: by the end of this year. Global News twenty four 179 00:09:55,720 --> 00:09:58,480 Speaker 1: hours a day on air and on Bloomberg Quicksay, powered 180 00:09:58,480 --> 00:10:02,520 Speaker 1: by more than journals snatalists more than twenty countries. Michael Barr, 181 00:10:02,600 --> 00:10:09,440 Speaker 1: this is Bloomberg Kin. Michael, thanks, We're coming up to 182 00:10:09,480 --> 00:10:11,560 Speaker 1: six ten on Wall Street. John stash Ore has the 183 00:10:11,559 --> 00:10:14,280 Speaker 1: Bloomberg sports updates and Nathan Mets and Yankees were both 184 00:10:14,320 --> 00:10:16,840 Speaker 1: at home. They won by a combined score of nineteen 185 00:10:16,920 --> 00:10:19,800 Speaker 1: to one. It was ten nothing for the Mets over Washington. 186 00:10:19,880 --> 00:10:22,840 Speaker 1: They had seventeen hits. Mark Hanna had four, Jeff McNeil 187 00:10:22,960 --> 00:10:26,080 Speaker 1: three home runs for Sterley Marte and Edwardo Escobar, and 188 00:10:26,120 --> 00:10:28,320 Speaker 1: the Mets have won five in a row, scoring forty 189 00:10:28,320 --> 00:10:31,320 Speaker 1: four runs in those five games, twenty three runs in 190 00:10:31,400 --> 00:10:33,199 Speaker 1: the two games so far with the Nationals of the 191 00:10:33,280 --> 00:10:36,200 Speaker 1: day game today at City Field the Stadium, Yanks over 192 00:10:36,240 --> 00:10:39,000 Speaker 1: the Angels nine to one, four run first and include 193 00:10:39,000 --> 00:10:41,439 Speaker 1: two run homer by the newest Yank Matt Carpenter. Jose 194 00:10:41,640 --> 00:10:43,959 Speaker 1: Trevino later with the two run shot. Plenty of run 195 00:10:44,040 --> 00:10:46,800 Speaker 1: support for Jordan Montgomery, who normally does not receive it. 196 00:10:46,840 --> 00:10:49,120 Speaker 1: He got his person under the year Wild started the 197 00:10:49,160 --> 00:10:52,280 Speaker 1: Stanley Cup West Finals Avs and Oilers in Denver. They 198 00:10:52,280 --> 00:10:55,200 Speaker 1: combined for five goals in the first period, six more 199 00:10:55,240 --> 00:10:57,199 Speaker 1: in the second. The has led seven to three, it 200 00:10:57,280 --> 00:11:00,040 Speaker 1: was cut to seven six Colorado held on a on 201 00:11:00,120 --> 00:11:02,520 Speaker 1: eighth to six. Don't expect a game like that tonight 202 00:11:02,559 --> 00:11:05,240 Speaker 1: at the Gardens. The Rangers in Lightning begin the East 203 00:11:05,320 --> 00:11:09,280 Speaker 1: Finals too. Terrific goalies the Rangers igors Ches Turkin, Tampa 204 00:11:09,320 --> 00:11:13,160 Speaker 1: bay Is Andre Vasileski, the Ranger defenseman Adam Fox to 205 00:11:13,360 --> 00:11:18,240 Speaker 1: the top goalies. Obviously, uh does his track record speak herself, 206 00:11:18,240 --> 00:11:22,280 Speaker 1: but Jest's it does to what he's done this year 207 00:11:22,320 --> 00:11:26,199 Speaker 1: has been in Stanley. Impressive. So that's the two good 208 00:11:26,200 --> 00:11:29,120 Speaker 1: goal is uh, you know? Coming together the lightning to 209 00:11:29,200 --> 00:11:31,240 Speaker 1: the two time defending Stanley Cup Chace. They just won 210 00:11:31,280 --> 00:11:33,880 Speaker 1: their tenth straight series. Who was a sweep of Florida? 211 00:11:34,240 --> 00:11:36,240 Speaker 1: Who was the top seed of these fifty nine bat 212 00:11:36,320 --> 00:11:39,520 Speaker 1: between Raphael Dala Novak Djokovic who leads thirty to twenty nine, 213 00:11:39,520 --> 00:11:42,480 Speaker 1: but Nadal won four sets. He's into the semifinals of 214 00:11:42,520 --> 00:11:45,560 Speaker 1: the French Open. He's won the tournament thirteen times. John 215 00:11:45,600 --> 00:11:49,040 Speaker 1: stash were Bloomberg Sports Nathy okay, John thanks SMP futures 216 00:11:49,080 --> 00:11:50,920 Speaker 1: up a point and a half. Right now down, Future 217 00:11:50,960 --> 00:11:53,960 Speaker 1: is up a hundred four points. Stansta features down twenty 218 00:11:54,000 --> 00:11:56,600 Speaker 1: eight points. The tet your treasuries down for thirty seconds. 219 00:11:56,600 --> 00:12:01,400 Speaker 1: The yield two point eight five per cent. You're listing 220 00:12:01,520 --> 00:12:08,760 Speaker 1: to Bloomberg Daybreak. Bloomberg day Break brought to you by 221 00:12:08,800 --> 00:12:11,920 Speaker 1: Hofstra Universities Frank gez Art School of Business, top ranked 222 00:12:11,920 --> 00:12:15,240 Speaker 1: online NBA program with the Real World Foundation. Learn more 223 00:12:15,280 --> 00:12:22,560 Speaker 1: at Hofstra dot e d u slash Go Brad markets 224 00:12:22,679 --> 00:12:25,760 Speaker 1: headlines and breaking news twenty four hours a day at 225 00:12:25,760 --> 00:12:29,680 Speaker 1: Bloomberg dot Com. The Bloomberg Business Out and at Bloomberg Quicktake, 226 00:12:30,320 --> 00:12:39,800 Speaker 1: He's a Bloomberg Business Flash and I'm Cameron Moscow songs 227 00:12:39,800 --> 00:12:42,080 Speaker 1: in Europe and US dock in Next Future are struggling 228 00:12:42,160 --> 00:12:44,760 Speaker 1: for direction today admitted debate over the scale of central 229 00:12:44,760 --> 00:12:48,200 Speaker 1: bank monetary policy tightening needed to fight inflation. We checked 230 00:12:48,200 --> 00:12:50,640 Speaker 1: the markets every fifteen minutes throughout the trading day on 231 00:12:50,679 --> 00:12:53,040 Speaker 1: Bloomberg and right now, S and P futures are little 232 00:12:53,120 --> 00:12:56,320 Speaker 1: changed down futures up in ninety eight and NASDAG futures 233 00:12:56,320 --> 00:12:59,040 Speaker 1: are down twenty six The decks in Germany's at a 234 00:12:59,120 --> 00:13:02,600 Speaker 1: quarter per cent, tenure treasury is down five thirty seconds. 235 00:13:02,640 --> 00:13:04,640 Speaker 1: He'll two point eight six percent, the yell done, the 236 00:13:04,679 --> 00:13:07,640 Speaker 1: two year two point five seven percent, nine mex screwed 237 00:13:07,679 --> 00:13:09,920 Speaker 1: oil up one point four percent of a dollar sixty 238 00:13:09,960 --> 00:13:12,360 Speaker 1: three at a hundred sixteen dollars thirty cents, and barrel 239 00:13:12,600 --> 00:13:14,920 Speaker 1: comic school is down nighted tenths per cent or sixteen 240 00:13:14,920 --> 00:13:18,040 Speaker 1: dollars eighties cents at eighteen thirty one sixty announced the 241 00:13:18,080 --> 00:13:20,400 Speaker 1: euro one point oh seven to two against the dollar, 242 00:13:20,480 --> 00:13:22,840 Speaker 1: British bound one point to six and the yen at 243 00:13:22,880 --> 00:13:26,200 Speaker 1: one nine point three eight and Bitcoin this morning, lower 244 00:13:26,280 --> 00:13:29,200 Speaker 1: down six tenths per cent at thirty one thousand, five 245 00:13:29,679 --> 00:13:32,600 Speaker 1: nine dollars. That's a Bloomberg business flap show. Here's Michael 246 00:13:32,600 --> 00:13:35,040 Speaker 1: bar with more on what's going on around the world. 247 00:13:35,080 --> 00:13:37,840 Speaker 1: Michael Barn, thank you very much. President Joe Biden said 248 00:13:37,960 --> 00:13:41,240 Speaker 1: he'll give Ukraine advanced rocket systems and other U S 249 00:13:41,280 --> 00:13:45,199 Speaker 1: weaponry to better hit targets in its war with Russia. 250 00:13:45,480 --> 00:13:48,280 Speaker 1: The White House plans to announce the new seven hundred 251 00:13:48,280 --> 00:13:52,000 Speaker 1: million dollars security assistance package today. The first funerals for 252 00:13:52,120 --> 00:13:55,040 Speaker 1: victims of last week's mass shooting at rob Elementary School 253 00:13:55,240 --> 00:13:58,920 Speaker 1: began yesterday in New Valley, Texas. In baseball, the Yankees one, 254 00:13:59,000 --> 00:14:00,960 Speaker 1: the mat shut out, the Nine Sationals en Zepp, the 255 00:14:00,960 --> 00:14:04,760 Speaker 1: Red Sox Orioles, and A's lost the Giants one. In 256 00:14:04,840 --> 00:14:08,440 Speaker 1: the NHL Eastern Conference Finals tonight, Game one as the 257 00:14:08,520 --> 00:14:11,360 Speaker 1: Rangers host the lightning Global News twenty four hours a 258 00:14:11,440 --> 00:14:13,880 Speaker 1: day on air and on Bloomberg Quick Take, powered by 259 00:14:13,880 --> 00:14:17,200 Speaker 1: more than hundred journalists analysts more than a hundred twenty 260 00:14:17,240 --> 00:14:21,120 Speaker 1: countries at Michael Barn, this is Bloomberg. This is the 261 00:14:21,240 --> 00:14:25,120 Speaker 1: Big Take, the best of Bloomberg's in depth, original reporting 262 00:14:25,160 --> 00:14:28,000 Speaker 1: from around the globe. This is a really fascinating story 263 00:14:28,400 --> 00:14:31,520 Speaker 1: that's caused a lot of outrage among investors. This is 264 00:14:31,560 --> 00:14:34,400 Speaker 1: so fascinating. The market shotdown in a way it's never 265 00:14:34,480 --> 00:14:37,400 Speaker 1: done before. That's gonna have consequences for years to come. 266 00:14:37,560 --> 00:14:42,480 Speaker 1: The big take on Bloomberg Radio. It's six times seen 267 00:14:42,520 --> 00:14:45,400 Speaker 1: on Wall Street Live from the Bloomberg Attractive Broker Studios. 268 00:14:45,440 --> 00:14:47,840 Speaker 1: This is Bloomberg day Break and our big take this 269 00:14:47,880 --> 00:14:50,240 Speaker 1: morning is on the war in Ukraine and how the 270 00:14:50,320 --> 00:14:54,960 Speaker 1: surge in commodity prices sparked by Russia's invasion is helping 271 00:14:55,000 --> 00:14:58,800 Speaker 1: to fuel the Kremlin's war machine despite massive sanctions from 272 00:14:58,840 --> 00:15:02,440 Speaker 1: the US and its outli Bloomberg Dow's oil strategist Juliant 273 00:15:02,520 --> 00:15:05,200 Speaker 1: Lee joins US Now with more on this Bloomberg Big 274 00:15:05,200 --> 00:15:08,600 Speaker 1: Takes story. Juliant, good morning. You know, the sanctions were 275 00:15:08,600 --> 00:15:13,040 Speaker 1: supposed to starve Russian military financing, but it's almost like 276 00:15:13,080 --> 00:15:15,720 Speaker 1: the wars created a feedback loop. Is that the right 277 00:15:15,760 --> 00:15:17,120 Speaker 1: way to look at it when it comes to the 278 00:15:17,160 --> 00:15:22,960 Speaker 1: impact of oil price surges. Well, good morning, It's good 279 00:15:23,000 --> 00:15:26,160 Speaker 1: to be with you. Um. Certainly we you know, we've 280 00:15:26,200 --> 00:15:30,400 Speaker 1: seen some big rises in headline prices not just for 281 00:15:30,480 --> 00:15:34,120 Speaker 1: oil but for other commodities as well, and there's a 282 00:15:34,800 --> 00:15:39,360 Speaker 1: temptation to to see that feeding through UM to Russia 283 00:15:39,440 --> 00:15:44,680 Speaker 1: and Russia's earnings, and undoubtedly they have benefited to some 284 00:15:44,800 --> 00:15:48,680 Speaker 1: degree from that. But I think it's important um also 285 00:15:48,840 --> 00:15:53,080 Speaker 1: to look at the sort of discounts that Russia is 286 00:15:53,160 --> 00:15:57,760 Speaker 1: having to offer, particularly for its oil exports, to get 287 00:15:57,760 --> 00:16:01,560 Speaker 1: a real sense that things are starting to happen. And 288 00:16:02,040 --> 00:16:06,640 Speaker 1: the oil embargo that the European Union has now agreed 289 00:16:07,000 --> 00:16:09,920 Speaker 1: that really hasn't come into effect yet, so everything that 290 00:16:09,960 --> 00:16:13,240 Speaker 1: we've seen to date has been very much on a 291 00:16:13,680 --> 00:16:18,280 Speaker 1: voluntary basis by buyers. And what we have seen is 292 00:16:18,320 --> 00:16:21,720 Speaker 1: that in the last month or so, the sort of 293 00:16:21,760 --> 00:16:24,320 Speaker 1: discounts that Russia has had to offer for its crude 294 00:16:24,360 --> 00:16:28,160 Speaker 1: have been in excessive thirty dollars a barrel. So that 295 00:16:28,200 --> 00:16:32,720 Speaker 1: means that while we're seeing Brent and West Texas intermediate 296 00:16:32,800 --> 00:16:36,080 Speaker 1: that sort of hundred and fifteen hundred and twenty dollars 297 00:16:36,080 --> 00:16:41,040 Speaker 1: a barrel, Russian crude is still selling below a hundred 298 00:16:41,080 --> 00:16:43,840 Speaker 1: and you know, in some cases below ninety as well, 299 00:16:44,040 --> 00:16:48,600 Speaker 1: so still a high price UM. But those self sanctions 300 00:16:48,680 --> 00:16:52,640 Speaker 1: are having an effect, and the mandatory sanctions that are 301 00:16:52,760 --> 00:16:56,960 Speaker 1: coming will have an additional effect. And now the Russia 302 00:16:57,160 --> 00:17:00,880 Speaker 1: has been able to sell its crude at a discount, 303 00:17:01,040 --> 00:17:05,440 Speaker 1: it's been sort of shifting its supply chain as well, 304 00:17:05,520 --> 00:17:09,640 Speaker 1: hasn't it to try to find those buyers. Is there 305 00:17:09,640 --> 00:17:12,520 Speaker 1: anything that the US and its allies can do to 306 00:17:12,640 --> 00:17:17,720 Speaker 1: sort of tackle that the purchasing of Russian crude by 307 00:17:17,840 --> 00:17:23,440 Speaker 1: other nations. Well, there are certainly things that could be done. 308 00:17:23,440 --> 00:17:28,399 Speaker 1: I mean that there is quite clearly precedent for secondary 309 00:17:28,440 --> 00:17:33,080 Speaker 1: sanctions against buyers of Russian audio. Only have to look 310 00:17:33,119 --> 00:17:38,040 Speaker 1: at the sanctions that were um imposed both by the 311 00:17:38,160 --> 00:17:44,120 Speaker 1: Obama administration and by the Trump administration subsequently that targeted 312 00:17:44,800 --> 00:17:49,080 Speaker 1: um sort of other buyers of in that case Iranian 313 00:17:49,160 --> 00:17:54,080 Speaker 1: crude UM, and those were both success That's successful in 314 00:17:54,119 --> 00:17:58,960 Speaker 1: their own right in reducing sales of Iran's crewed around 315 00:17:58,960 --> 00:18:03,000 Speaker 1: the world, and it's it's possible that something like that 316 00:18:03,080 --> 00:18:06,080 Speaker 1: could be done with Russian crewede. I think that the 317 00:18:06,200 --> 00:18:09,719 Speaker 1: problem is that we are in a very different market 318 00:18:10,520 --> 00:18:12,800 Speaker 1: to the one that we were in when sanctions were 319 00:18:12,840 --> 00:18:17,920 Speaker 1: imposed on Iran. The underlying supply demand balance is much tighter. 320 00:18:18,400 --> 00:18:22,280 Speaker 1: That's why we're seeing the big run up in prices, 321 00:18:22,359 --> 00:18:27,640 Speaker 1: and in some senses, what I think that the Western 322 00:18:27,680 --> 00:18:31,600 Speaker 1: Powers want to do is not necessarily to choke off 323 00:18:32,640 --> 00:18:36,200 Speaker 1: the the all of Russia's oil a sports. They want 324 00:18:36,200 --> 00:18:38,800 Speaker 1: to make it more difficult. They want to make it 325 00:18:39,480 --> 00:18:43,840 Speaker 1: more expensive for Russia to export its oil. They certainly 326 00:18:43,880 --> 00:18:47,880 Speaker 1: want to reduce the volumes, but I doubt that anyone 327 00:18:48,000 --> 00:18:50,960 Speaker 1: who's looking at the state of the oil market would 328 00:18:51,080 --> 00:18:55,560 Speaker 1: would really want to see no oil coming out of Russia. 329 00:18:55,640 --> 00:19:00,719 Speaker 1: I know that it's a um a high a desirable 330 00:19:00,720 --> 00:19:06,040 Speaker 1: outcome for Ukraine and for anyone who looks at it 331 00:19:06,119 --> 00:19:10,800 Speaker 1: purely from the lens of Russian income and the ability 332 00:19:10,840 --> 00:19:14,600 Speaker 1: to fund the war in Ukraine. But the cost of 333 00:19:15,119 --> 00:19:18,840 Speaker 1: a total halt to Russian oil exports I think would 334 00:19:18,840 --> 00:19:22,160 Speaker 1: be huge. Much more on this in our Big Take 335 00:19:22,359 --> 00:19:26,320 Speaker 1: story Russia's two hundred five billion dollar oil and gas 336 00:19:26,320 --> 00:19:30,879 Speaker 1: bonanza is funding Putin's war. Bloomberg News oil strategist Julian 337 00:19:30,960 --> 00:19:33,120 Speaker 1: Lee thanks for being with us to get a glimpse 338 00:19:33,200 --> 00:19:35,400 Speaker 1: at what's in this Big Take story. You can read 339 00:19:35,480 --> 00:19:39,440 Speaker 1: much more on Big Take, Bloomberg dot Com, slash Big Take, 340 00:19:39,880 --> 00:19:43,399 Speaker 1: or ni Big Take go on the Bloomberg Terminal and 341 00:19:43,520 --> 00:19:46,440 Speaker 1: looking at oil prices right now, NIMEX screwed is higher 342 00:19:46,440 --> 00:19:48,480 Speaker 1: on this session by one point four percent, up a 343 00:19:48,560 --> 00:19:52,000 Speaker 1: dollar fifty nine and a hundred sixteen barrel. Brent is 344 00:19:52,080 --> 00:19:55,200 Speaker 1: higher by one point four percent at a hundred seventeen 345 00:19:55,200 --> 00:19:59,840 Speaker 1: dollars seven cents. Future is little changed at the moment. 346 00:20:00,840 --> 00:20:08,560 Speaker 1: You're listening to Bloomberg Daybreak Bloomber eleven three oh weather. 347 00:20:08,640 --> 00:20:10,760 Speaker 1: Chance for showers and storms this afternoon with highs of 348 00:20:10,800 --> 00:20:13,359 Speaker 1: the low seventies. More showers likely tomorrow afternoon as well, 349 00:20:13,359 --> 00:20:16,640 Speaker 1: with highs of the low eighties, clearing upper seventies for Friday. 350 00:20:16,720 --> 00:20:23,680 Speaker 1: Right now, sixty degrees in Central Park. Broadcasting live from 351 00:20:23,680 --> 00:20:27,760 Speaker 1: the Bloomberg Interacted Broker Studio in New York. Bloomberg Eving 352 00:20:27,840 --> 00:20:32,440 Speaker 1: Preen to Washington, d C. Bloomberg to Boston, Bloomberg one 353 00:20:32,440 --> 00:20:35,600 Speaker 1: O six one to San Francisco, Bloomberg N sixty to 354 00:20:35,680 --> 00:20:39,320 Speaker 1: the Country, Sirius XM Chento one nineteen and around the globe, 355 00:20:39,359 --> 00:20:43,000 Speaker 1: the Bloomberg Business app and Bloomberg Radio dot Com. This 356 00:20:43,320 --> 00:20:51,920 Speaker 1: is Bloomberg Daybreak. It's six thirty on Wall Street to Boarding. 357 00:20:51,920 --> 00:20:54,560 Speaker 1: I got Nathan Hagar and I'm Cameron Moscow. We're just 358 00:20:54,600 --> 00:20:57,119 Speaker 1: about three hours away from the open of US trading. 359 00:20:57,119 --> 00:20:59,000 Speaker 1: Time for the five things you need to notice start 360 00:20:59,080 --> 00:21:01,600 Speaker 1: your day. Brought to you by I b k R 361 00:21:01,720 --> 00:21:05,159 Speaker 1: Investment Advisers switched to Interactive Brokers for lowest const global 362 00:21:05,200 --> 00:21:08,679 Speaker 1: trading and turnkey custody solutions, no ticket churches and no 363 00:21:08,840 --> 00:21:11,960 Speaker 1: conflicts of your interests at ibkr dot com slash r 364 00:21:12,040 --> 00:21:15,159 Speaker 1: i A first u s dogs begin June, coming off 365 00:21:15,200 --> 00:21:18,080 Speaker 1: a volatile month that left the SNP five hundred basically 366 00:21:18,160 --> 00:21:20,960 Speaker 1: unchanged and made the benchmark index surge more than eight 367 00:21:20,960 --> 00:21:24,640 Speaker 1: percent after falling within points of a drop from a record. 368 00:21:25,000 --> 00:21:28,800 Speaker 1: John Stults FIZ, chief investment strategist with Oppenheimer Asset Management, 369 00:21:29,040 --> 00:21:31,280 Speaker 1: says he could see the index begin to rise again. 370 00:21:31,680 --> 00:21:33,679 Speaker 1: The last time we saw a market that was in 371 00:21:33,720 --> 00:21:36,199 Speaker 1: the process of coming out of a crisis, which was 372 00:21:36,240 --> 00:21:40,879 Speaker 1: two thousand and nine. The SNP declined from January to 373 00:21:41,000 --> 00:21:45,080 Speaker 1: March oh nine. It then rallied sixty to the end 374 00:21:45,119 --> 00:21:48,960 Speaker 1: of the year. Hoppenheimer Asset Management chief investment strategist John 375 00:21:49,000 --> 00:21:52,520 Speaker 1: Stolts FIZZ says it's possible the SNP makes a similar climb, 376 00:21:52,760 --> 00:21:55,400 Speaker 1: but amidst he may have to adjust his projections well. 377 00:21:55,400 --> 00:21:57,919 Speaker 1: Inflation is still a major focus for markets care and 378 00:21:57,960 --> 00:22:00,680 Speaker 1: at the top political challenge for the White House. Now, 379 00:22:00,720 --> 00:22:04,160 Speaker 1: Treasury Secretary Janet Yellin's admitting she got it wrong last 380 00:22:04,200 --> 00:22:07,080 Speaker 1: year when she said inflation would be temporary. There have 381 00:22:07,240 --> 00:22:12,199 Speaker 1: been unanticipated and lord shocks to the economy that have 382 00:22:12,359 --> 00:22:18,520 Speaker 1: boosted energy and food prices and supply bottle knicks that 383 00:22:18,640 --> 00:22:22,760 Speaker 1: have affected our economy badly that I didn't at the time, 384 00:22:22,880 --> 00:22:27,120 Speaker 1: didn't fully understand. Treasury Secretary Janet Yellin tells CNN she's 385 00:22:27,200 --> 00:22:30,520 Speaker 1: encouraged prices are coming down, but can't rule out future shocks. 386 00:22:30,960 --> 00:22:33,480 Speaker 1: Nathan Secretary Yellin was at the White House yesterday for 387 00:22:33,520 --> 00:22:36,440 Speaker 1: a meeting between President Biden and FED share J. Powell. 388 00:22:36,760 --> 00:22:39,760 Speaker 1: Jane Sperling, senior adviser to the President, says the President 389 00:22:39,840 --> 00:22:42,520 Speaker 1: used the meeting to make clear he respects the Fed's 390 00:22:42,560 --> 00:22:45,919 Speaker 1: independence as it looks to cool inflation. We understand that 391 00:22:45,960 --> 00:22:49,040 Speaker 1: our Federal Reserve is independent as while they have a 392 00:22:49,119 --> 00:22:52,760 Speaker 1: dual mandate at times where inflation becomes the highest concern, 393 00:22:53,040 --> 00:22:56,200 Speaker 1: that they're going to take steps to dampen that inflation 394 00:22:56,560 --> 00:22:59,320 Speaker 1: and that's going to be raising interest rates, and the 395 00:22:59,359 --> 00:23:03,040 Speaker 1: President is going to respect that. Independent Senior adviser to 396 00:23:03,119 --> 00:23:06,280 Speaker 1: President Biden Jeane Spirling speaking with Joe Matthew on Bloomberg 397 00:23:06,359 --> 00:23:09,840 Speaker 1: Sound on airing weekdays at five pm Eastern on Bloomberg Radio, 398 00:23:10,080 --> 00:23:12,080 Speaker 1: the Federal be had focused again today. Karen is it's 399 00:23:12,080 --> 00:23:14,600 Speaker 1: set to start shrinking it's eight point nine trillion dollar 400 00:23:14,680 --> 00:23:17,680 Speaker 1: balance sheet. It also releases its spage book today, and 401 00:23:17,760 --> 00:23:20,280 Speaker 1: Nathan Crude Oil also on the rounds this morning. It 402 00:23:20,359 --> 00:23:23,159 Speaker 1: is currently trading at a hundred and sixteen dollars twenty 403 00:23:23,240 --> 00:23:25,640 Speaker 1: cents a barrel. That's up one point three per cent, 404 00:23:25,720 --> 00:23:28,320 Speaker 1: and this comes before an opeg plus routine meeting tomorrow 405 00:23:28,520 --> 00:23:30,879 Speaker 1: to discuss its supply policy. That's the five things you 406 00:23:30,880 --> 00:23:32,560 Speaker 1: need to know to start your day. Brought to you 407 00:23:32,640 --> 00:23:39,560 Speaker 1: by Interactive Brokers at a sound six thirty three on 408 00:23:39,600 --> 00:23:41,880 Speaker 1: Wall Street where it's sixty degrees in Central Park, dealing 409 00:23:41,920 --> 00:23:43,840 Speaker 1: with an accent on the westbound l a lower level 410 00:23:43,880 --> 00:23:46,280 Speaker 1: by the b Que. Details coming up in traffic. First 411 00:23:46,320 --> 00:23:48,439 Speaker 1: Michael Barr with more of what's going on in New 412 00:23:48,480 --> 00:23:50,840 Speaker 1: York and around the world. Michael, thank you very much. 413 00:23:50,920 --> 00:23:53,720 Speaker 1: Nathan New York Governor Kathy Hock will introduce a new 414 00:23:53,800 --> 00:23:58,240 Speaker 1: package of gun reform bills aftermass shootings in Buffalo and Uvaldi. 415 00:23:58,760 --> 00:24:00,920 Speaker 1: It is a total of ten pills that would tighten 416 00:24:00,960 --> 00:24:04,920 Speaker 1: New York's gun laws and close loopholes. Among the proposed 417 00:24:05,000 --> 00:24:08,320 Speaker 1: legislation is increasing the minimum age requirement by a semi 418 00:24:08,359 --> 00:24:12,440 Speaker 1: automatic rifle from eighteen to twenty one. The first funerals 419 00:24:12,440 --> 00:24:15,240 Speaker 1: for victims of last week's mass shooting at rob Elementary 420 00:24:15,280 --> 00:24:18,960 Speaker 1: School began yesterday in New Valley, Texas. Texas State Democratic 421 00:24:19,000 --> 00:24:22,560 Speaker 1: Senator Roland Gautierres, who represents you Valdy, says he is 422 00:24:22,600 --> 00:24:25,480 Speaker 1: calling on Governor Greg Abbott called a special session of 423 00:24:25,560 --> 00:24:28,439 Speaker 1: the legislature to address the shooting. We need a special 424 00:24:28,440 --> 00:24:30,720 Speaker 1: session to fix gun laws, but we also need a 425 00:24:30,720 --> 00:24:35,240 Speaker 1: special session for this legislature to go and investigate woment 426 00:24:35,320 --> 00:24:39,240 Speaker 1: wrong here. State Senator Gutierres told ABC he is hearing 427 00:24:39,359 --> 00:24:43,440 Speaker 1: voters demand for reform to gun laws. The Supreme Court 428 00:24:43,480 --> 00:24:46,000 Speaker 1: has put on hold of Texas law that would stop 429 00:24:46,080 --> 00:24:50,400 Speaker 1: social media platforms from deleting posts and accounts. Bloomberg's aid 430 00:24:50,400 --> 00:24:53,679 Speaker 1: Baxter as the story. The hold will allow a constitutional 431 00:24:53,760 --> 00:24:56,400 Speaker 1: challenge to go forward in a lower court. The tech 432 00:24:56,400 --> 00:24:59,360 Speaker 1: groups Meta, Twitter and Google. I'll argue the law which 433 00:24:59,440 --> 00:25:03,159 Speaker 1: stop them from barring hate speech, including neo Nazi and 434 00:25:03,240 --> 00:25:07,680 Speaker 1: ku Klux Klan, or Russian propaganda or just plainly misinformation 435 00:25:07,720 --> 00:25:11,120 Speaker 1: and untruths. The authors of the legislation say they are 436 00:25:11,160 --> 00:25:14,359 Speaker 1: just trying to protect free speech. The High Court vote 437 00:25:14,400 --> 00:25:17,960 Speaker 1: was split in this decision and did not explain its 438 00:25:18,000 --> 00:25:23,159 Speaker 1: decision at all. In San Francisco, I met Baxter Bloomberg Gaybreak, Sacramento. Kelly, 439 00:25:23,200 --> 00:25:27,520 Speaker 1: California has found a third probable case of monkeypox, even 440 00:25:27,560 --> 00:25:31,040 Speaker 1: though health officials have said monkey pox is not easily spread. 441 00:25:31,560 --> 00:25:34,240 Speaker 1: Both had contact with the first patient, who had traveled 442 00:25:34,240 --> 00:25:37,320 Speaker 1: to Europe and came back with it. Fifteen monkey pox 443 00:25:37,359 --> 00:25:40,000 Speaker 1: cases have now been confirmed in the US, with more 444 00:25:40,119 --> 00:25:43,320 Speaker 1: being suspected. It is a new name for a new 445 00:25:43,359 --> 00:25:46,880 Speaker 1: ELI Double R terminal. Governor Kathy Hukel says it will 446 00:25:46,920 --> 00:25:51,440 Speaker 1: be called Grand Central Madison. For twenties four years now, 447 00:25:51,440 --> 00:25:55,720 Speaker 1: we've been hearing about this project, and everyone always just thought, 448 00:25:56,240 --> 00:25:58,639 Speaker 1: so it'll get done some day in the future. The future, 449 00:25:58,760 --> 00:26:04,399 Speaker 1: the future, the future is. Governor holcl says, the East 450 00:26:04,440 --> 00:26:07,640 Speaker 1: Side Access Terminal Laimes to bring six more traffic into 451 00:26:07,680 --> 00:26:11,040 Speaker 1: Manhattan from Long Island at peak times. Global News twenty 452 00:26:11,040 --> 00:26:14,160 Speaker 1: four hours a day on air and on Bloomberg Quickdake, 453 00:26:14,160 --> 00:26:16,840 Speaker 1: powered by more than twenty seven hundred journalists Antalyist and 454 00:26:16,920 --> 00:26:19,920 Speaker 1: more than a d countries. I Michael Barrn, this is Bloomberg, 455 00:26:20,040 --> 00:26:27,040 Speaker 1: nath Okay, Michael, thank you. Albo six thirty six on 456 00:26:27,119 --> 00:26:29,800 Speaker 1: Wall Street. Time for the Bloomberg Sports Update with Jock 457 00:26:29,840 --> 00:26:32,640 Speaker 1: Stas shower As Nathan June begins with the Yankees best 458 00:26:32,680 --> 00:26:35,480 Speaker 1: record baseball. The Mets, owners of the biggest lead Yanks, 459 00:26:35,520 --> 00:26:38,640 Speaker 1: improved the thirty four and fifteen met the Angels stadium 460 00:26:38,760 --> 00:26:41,160 Speaker 1: nine to one. They finally scored runs for George Montgomery. 461 00:26:41,240 --> 00:26:43,639 Speaker 1: Every Yank had a head except Darren Judge. Even Joey 462 00:26:43,680 --> 00:26:47,200 Speaker 1: gallow had two hits. Mets, also at home, being Washington, 463 00:26:47,280 --> 00:26:49,679 Speaker 1: tend up in their thirty four and seventeen They've got 464 00:26:49,760 --> 00:26:51,920 Speaker 1: a tenant ap game lead in the n L A 465 00:26:52,080 --> 00:26:54,080 Speaker 1: seventeen met hits. In their fifth on the row, the 466 00:26:54,119 --> 00:26:56,879 Speaker 1: Mets have sent the struggling Dom Smith down to Triple 467 00:26:56,920 --> 00:26:59,040 Speaker 1: A Syracuse. He was batting just one eight six hit 468 00:26:59,080 --> 00:27:02,000 Speaker 1: three sixteen years ago. Stelen Cup Playoffs Game one in 469 00:27:02,040 --> 00:27:04,960 Speaker 1: the West and it wasn't designed until the fourteenth goal 470 00:27:05,000 --> 00:27:06,959 Speaker 1: of the night. Landi Scog tried to get it out. 471 00:27:07,040 --> 00:27:09,920 Speaker 1: He does the center rice through the legs a tricycle 472 00:27:10,440 --> 00:27:13,920 Speaker 1: interceptif by Landiskog feet from Barry Landi Scott open net 473 00:27:14,000 --> 00:27:23,359 Speaker 1: ye patcha oh, Captain, my captain, mix it eight for 474 00:27:23,600 --> 00:27:26,560 Speaker 1: the Avalanche with twenty one point four seconds to go 475 00:27:26,760 --> 00:27:30,959 Speaker 1: in the third of this place has erupted and vor 476 00:27:31,040 --> 00:27:34,320 Speaker 1: Colorado beat Edmonton eight to six Rangers in lightning tonight 477 00:27:34,359 --> 00:27:36,200 Speaker 1: at the Garden to start the East Finals. Tampa Bay, 478 00:27:36,240 --> 00:27:40,600 Speaker 1: winners of ten consecutive playoff series, just swept top seed Florida, 479 00:27:40,960 --> 00:27:43,720 Speaker 1: two time defending Stanley Cup chance. The last NHL three 480 00:27:43,800 --> 00:27:46,000 Speaker 1: pet was the Islanders in the early nineteen eighties. The 481 00:27:46,119 --> 00:27:49,440 Speaker 1: Rangers swept the regular season series with Tampa thirteen time 482 00:27:49,480 --> 00:27:51,880 Speaker 1: French Open, champ Rapfield and the Alley to the semifinals 483 00:27:52,240 --> 00:27:54,560 Speaker 1: in Paris. He beat Novak Djokovic in four sets. The 484 00:27:54,600 --> 00:27:57,320 Speaker 1: match went over four hours, ended past one am. Battle 485 00:27:57,320 --> 00:28:00,240 Speaker 1: of Americans Cocoa coffeets Loan Stevens the eight teen It 486 00:28:00,280 --> 00:28:03,320 Speaker 1: All Golf into her first brand Snap Semi, John Stanshaward 487 00:28:03,320 --> 00:28:06,080 Speaker 1: Bloomberg Sports, Nathan all Right, John, Thanks six thirty seven 488 00:28:06,119 --> 00:28:08,160 Speaker 1: on Wall Street. Let's get bored down on the path 489 00:28:08,240 --> 00:28:11,399 Speaker 1: ahead for the FED as the Central Bank begins this 490 00:28:11,640 --> 00:28:14,720 Speaker 1: month by beginning to unwind it's eight point nine trillion 491 00:28:14,760 --> 00:28:19,080 Speaker 1: dollar balance sheet. Bloomberg Economics correspondent Michael McKee is with 492 00:28:19,280 --> 00:28:21,879 Speaker 1: US Live Myke good Moarning. There's been so much focus, 493 00:28:21,960 --> 00:28:24,160 Speaker 1: of course, for investors over the last several months, about 494 00:28:24,200 --> 00:28:27,480 Speaker 1: the path for interest rates. Now this second tool is 495 00:28:27,520 --> 00:28:30,119 Speaker 1: about to be deployed by the Central Bank. What's the 496 00:28:30,160 --> 00:28:34,159 Speaker 1: potential impact here. That's a very good question that I 497 00:28:34,240 --> 00:28:36,160 Speaker 1: don't have an answer to, but neither do FED officials. 498 00:28:36,280 --> 00:28:38,560 Speaker 1: Coming to Chris Waller the other day, they said the 499 00:28:38,640 --> 00:28:41,880 Speaker 1: potential range of impact is very wide because this is 500 00:28:41,920 --> 00:28:44,240 Speaker 1: only the second time this has happened, and we're talking 501 00:28:44,280 --> 00:28:47,680 Speaker 1: about such huge sums of money over a period of 502 00:28:47,800 --> 00:28:50,480 Speaker 1: time that the FED doesn't really know that. Their best 503 00:28:50,560 --> 00:28:55,320 Speaker 1: guesses maybe quarter percentage point increase in rates spread out 504 00:28:55,400 --> 00:28:58,480 Speaker 1: over a year. The worst case scenario is maybe we 505 00:28:58,560 --> 00:29:02,080 Speaker 1: get a hundred and fifty base points of of movement. 506 00:29:02,720 --> 00:29:05,280 Speaker 1: So they're gonna be watching it closely to see what happens. 507 00:29:05,320 --> 00:29:07,520 Speaker 1: But it's gonna be a while till we see any 508 00:29:07,640 --> 00:29:11,959 Speaker 1: kind of reaction because they're only starting with thirty billion 509 00:29:12,160 --> 00:29:15,400 Speaker 1: in treasuries and seventeen and a half in mortgage bonds 510 00:29:15,840 --> 00:29:19,520 Speaker 1: UH a month for three months until it starts to 511 00:29:19,600 --> 00:29:21,880 Speaker 1: really ramp up, So it'll be a while till we 512 00:29:21,960 --> 00:29:25,240 Speaker 1: see any kind of UH impact. There won't be a 513 00:29:25,280 --> 00:29:28,000 Speaker 1: lot of sales yet or roll off yet, no sales 514 00:29:28,440 --> 00:29:30,600 Speaker 1: roll off. As you mentioned, this is only the second 515 00:29:30,640 --> 00:29:33,200 Speaker 1: time that we've seen a balance sheet unwind, so we 516 00:29:33,400 --> 00:29:36,240 Speaker 1: have I guess a little bit of precedent here after 517 00:29:36,400 --> 00:29:41,480 Speaker 1: the two thousand date crisis. What kind of insight is 518 00:29:41,560 --> 00:29:45,200 Speaker 1: the FED looking at given how they unwanted the balance 519 00:29:45,240 --> 00:29:47,560 Speaker 1: sheet the first time around. The biggest problem they ran 520 00:29:47,640 --> 00:29:51,120 Speaker 1: into is when reserves got low enough, there was a 521 00:29:51,240 --> 00:29:54,560 Speaker 1: liquidity squeeze and that caused market eruptions at the short 522 00:29:54,680 --> 00:29:56,480 Speaker 1: end of the FED had to come in and say 523 00:29:56,520 --> 00:30:00,520 Speaker 1: we're gonna stop raising interest rates, and that sort of 524 00:30:00,680 --> 00:30:04,040 Speaker 1: turned things around. Now they've put in place the reverse 525 00:30:04,120 --> 00:30:07,840 Speaker 1: repo facility where if you're a dealer and you have securities, 526 00:30:07,840 --> 00:30:09,600 Speaker 1: can go to fact and get cash if you need it. 527 00:30:09,640 --> 00:30:13,000 Speaker 1: If there isn't a market for your security. So there 528 00:30:13,080 --> 00:30:16,720 Speaker 1: at this point confident that they've got that problem solved. 529 00:30:17,240 --> 00:30:20,440 Speaker 1: Um beyond that, it becomes sort of a question of 530 00:30:20,480 --> 00:30:24,240 Speaker 1: how fast do interest rates react at what tenors, and 531 00:30:24,320 --> 00:30:28,720 Speaker 1: then question of just the overall balance sheet and how 532 00:30:28,920 --> 00:30:31,959 Speaker 1: small or large does it need to be, which they 533 00:30:32,000 --> 00:30:34,840 Speaker 1: say they can't know until they get there. Man, we're 534 00:30:34,840 --> 00:30:37,160 Speaker 1: gonna have a few months to take a look at 535 00:30:37,240 --> 00:30:39,200 Speaker 1: what the impact is going to be as this balance 536 00:30:39,240 --> 00:30:43,600 Speaker 1: sheet on wine gets underway starting today. Bloomberg Economics correspondent 537 00:30:43,640 --> 00:30:47,120 Speaker 1: Michael McKee, thanks for being with us this morning. Looking 538 00:30:47,160 --> 00:30:50,640 Speaker 1: ahead to the market open, UH futures are sort of 539 00:30:50,680 --> 00:30:53,280 Speaker 1: waiting c mode right now, with SMP futures down to 540 00:30:53,400 --> 00:30:56,360 Speaker 1: point down, futures up seventy nine, NASTAC futures are lower 541 00:30:56,480 --> 00:30:59,840 Speaker 1: by almost twenty four points now. The ten your treasury 542 00:30:59,920 --> 00:31:02,880 Speaker 1: is down three thirty seconds. The yield two point eight 543 00:31:03,000 --> 00:31:05,520 Speaker 1: five percent, yield on the two year right now two 544 00:31:05,600 --> 00:31:10,640 Speaker 1: point five seven percent. NIMEX crude is higher by one percent. 545 00:31:10,720 --> 00:31:12,680 Speaker 1: A gate of a dollar thirty five for a hundred 546 00:31:12,800 --> 00:31:16,640 Speaker 1: sixteen dollars three cents for a barrel of West Texas Intermediate, 547 00:31:17,240 --> 00:31:23,560 Speaker 1: you're listening to Bloomberg Daybreak Bloomberg eleven three oh weather 548 00:31:23,600 --> 00:31:26,520 Speaker 1: more clouds and sun chance for afternoon showers and storms 549 00:31:26,520 --> 00:31:28,880 Speaker 1: today with highs in the low seventies. More showers possible 550 00:31:28,920 --> 00:31:32,280 Speaker 1: tomorrow afternoon low eighties, clearing up her seventies for Friday 551 00:31:32,400 --> 00:31:39,800 Speaker 1: right now sixty degrees. Markets headlines and breaking news twenty 552 00:31:39,840 --> 00:31:42,680 Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg 553 00:31:42,760 --> 00:31:45,680 Speaker 1: Business apt and at Bloomberg Quick Tape. This is a 554 00:31:45,720 --> 00:31:54,880 Speaker 1: Bloomberg Business flash and I'm carrying Moscow. Future is little 555 00:31:54,960 --> 00:31:56,960 Speaker 1: change this morning. We get to the first word breaking 556 00:31:57,000 --> 00:31:59,600 Speaker 1: news dance for today's morning call, and here's Bill Maloney 557 00:31:59,640 --> 00:32:03,320 Speaker 1: build a morning. Hey, good morning, Karen. US futures trading 558 00:32:03,360 --> 00:32:05,800 Speaker 1: mixed right now at death futures hired by ninety five points, 559 00:32:05,840 --> 00:32:09,520 Speaker 1: SAPs are upper point, nastic futures althower by twenty. The 560 00:32:09,640 --> 00:32:12,240 Speaker 1: US ten year at two point eight six percent, in 561 00:32:12,280 --> 00:32:15,480 Speaker 1: gold is down seven oil is climbing, and Bitcoin trading 562 00:32:15,560 --> 00:32:18,920 Speaker 1: lower by point six percent. Shanghai was a little changed overnight, 563 00:32:18,960 --> 00:32:21,520 Speaker 1: while your PM markets are quiet this morning. And back 564 00:32:21,600 --> 00:32:23,880 Speaker 1: in the US on the economic front at ninety five 565 00:32:23,920 --> 00:32:26,640 Speaker 1: I s M Manufacturing p M I at ten o'clock 566 00:32:26,680 --> 00:32:29,440 Speaker 1: construction spending, and at two o'clock the Fed releases it's 567 00:32:29,600 --> 00:32:33,080 Speaker 1: beige book after develops Night's salesforce raised its guidance, shares 568 00:32:33,120 --> 00:32:35,400 Speaker 1: her up nine percent in the pre market and other 569 00:32:35,480 --> 00:32:38,040 Speaker 1: news and Marsbergen is buying back a billion dollars in 570 00:32:38,120 --> 00:32:42,040 Speaker 1: stock and for pre holding ZPs beat estimates, grabbing things up. 571 00:32:42,120 --> 00:32:45,120 Speaker 1: Still there was cut to underweight over at JP. Morgan 572 00:32:45,680 --> 00:32:49,120 Speaker 1: live from the first breaking newsscomb the Maloney Karen all right, Bill, 573 00:32:49,200 --> 00:32:51,120 Speaker 1: thank you and to hear live breaking news of your 574 00:32:51,200 --> 00:32:53,920 Speaker 1: Bloomberg time squawk on your termin I'll ascue you a 575 00:32:54,160 --> 00:32:56,280 Speaker 1: w u K and that's a Bloomberg business flash. Now 576 00:32:56,360 --> 00:32:58,640 Speaker 1: here's Michael Barr with more on what's going on around 577 00:32:58,640 --> 00:33:01,440 Speaker 1: the world. Michael Karen, thank you very much. President Biden 578 00:33:01,560 --> 00:33:05,680 Speaker 1: is promising to meet with members of Congress on gun reform. Yesterday, 579 00:33:05,800 --> 00:33:08,600 Speaker 1: the President meeting with New Zealand Prime Minister just Send 580 00:33:08,640 --> 00:33:11,400 Speaker 1: to Ardur and praised her in passing a ban on 581 00:33:11,680 --> 00:33:15,560 Speaker 1: military style semi automatic weapons after a white supremacist killed 582 00:33:15,600 --> 00:33:20,080 Speaker 1: fifty one Muslim worshippers in the Biden administration is sending 583 00:33:20,120 --> 00:33:22,760 Speaker 1: an additional seven hundred million dollars worth of weapons and 584 00:33:22,840 --> 00:33:27,040 Speaker 1: defense systems to support the Ukrainian military. In baseball, the 585 00:33:27,120 --> 00:33:29,720 Speaker 1: Yankees one, the mat shutout the Nationals, the Red Sox 586 00:33:29,800 --> 00:33:33,000 Speaker 1: Orioles and A's lost the Giants one in the NHL 587 00:33:33,080 --> 00:33:36,960 Speaker 1: Eastern Conference Finals tonight, Game one as the Rangers host 588 00:33:37,040 --> 00:33:39,880 Speaker 1: the Lightning Global News twenty four hours a day on 589 00:33:40,040 --> 00:33:43,160 Speaker 1: air and on Bloomberg Quick Tank, powered by more than 590 00:33:43,240 --> 00:33:45,760 Speaker 1: twenty seven hundred journalists and analysts in more than a 591 00:33:45,840 --> 00:33:48,960 Speaker 1: hundred twenty countries. I'm Michael Barr. This is Bloomberg. The 592 00:33:49,120 --> 00:33:55,400 Speaker 1: following commentary is from Bloomberg Opinion, the calumnist for Bloomberg Opinion. 593 00:33:55,600 --> 00:33:59,000 Speaker 1: Investors in bitcoin and other digital assets have been pummeled 594 00:33:59,040 --> 00:34:02,480 Speaker 1: recently by the longest losing streaks since two thousand eleven. 595 00:34:02,960 --> 00:34:05,320 Speaker 1: If that's you, you might be glad to hear that 596 00:34:05,440 --> 00:34:07,440 Speaker 1: there are ways to ease some of the sting of 597 00:34:07,520 --> 00:34:10,399 Speaker 1: those losses. Act promptly and you can cut your tax 598 00:34:10,480 --> 00:34:13,000 Speaker 1: bill for next April and beyond. That's because the i 599 00:34:13,160 --> 00:34:16,239 Speaker 1: r S allows taxpayers to use losses in stocks and 600 00:34:16,360 --> 00:34:20,000 Speaker 1: other investments, including crypto, to offset gains if your losses 601 00:34:20,080 --> 00:34:22,920 Speaker 1: exceed your total gains for the year, you can deduct 602 00:34:23,000 --> 00:34:26,400 Speaker 1: up to three thousand dollars against your taxable income. Losses 603 00:34:26,440 --> 00:34:29,319 Speaker 1: beyond three thousand dollars can be carried forward every year 604 00:34:29,400 --> 00:34:32,680 Speaker 1: until death to offset gains in future years. What's more, 605 00:34:33,080 --> 00:34:36,920 Speaker 1: crypto investors get a special deal. Unlike stock investors. They 606 00:34:37,000 --> 00:34:40,280 Speaker 1: don't have to wait thirty days before selling and rebuying 607 00:34:40,560 --> 00:34:44,080 Speaker 1: the same coin again. I'm alexis le Honest. For more opinion, 608 00:34:44,160 --> 00:34:47,400 Speaker 1: please go to Bloomberg dot com, slash opinion or OPI 609 00:34:47,600 --> 00:34:51,160 Speaker 1: and go from the Bloomberg terminal has been Bloomberg Opinion 610 00:34:51,600 --> 00:34:54,239 Speaker 1: and bloomerg Opinion commentaries. Give me heard every weekday at 611 00:34:54,280 --> 00:34:56,680 Speaker 1: this time and terminal customers can read more at O 612 00:34:56,840 --> 00:34:59,560 Speaker 1: P I n go. It's like fifty on Wall Street. 613 00:34:59,600 --> 00:35:02,080 Speaker 1: We turned to news and science and technology now, but 614 00:35:02,160 --> 00:35:04,680 Speaker 1: the Bloomberg and j I T STEM Report brought to 615 00:35:04,760 --> 00:35:07,640 Speaker 1: you by New Jersey Institute of Technology, one of the 616 00:35:07,719 --> 00:35:11,840 Speaker 1: nation's leading polytechnic universities and a top military friendly school. 617 00:35:12,200 --> 00:35:14,080 Speaker 1: Learn more at n j I T dot E d 618 00:35:14,239 --> 00:35:18,440 Speaker 1: U slash Veterans. Now. Here's what's making news and science, technology, engineering, 619 00:35:18,560 --> 00:35:22,120 Speaker 1: and math. China is planning for years of COVID zero 620 00:35:22,280 --> 00:35:25,560 Speaker 1: with testing sites in almost every corner. Tens of thousands 621 00:35:25,600 --> 00:35:27,960 Speaker 1: of lab testing booths are being set up across the 622 00:35:28,040 --> 00:35:31,120 Speaker 1: country's the largest and most economically vital cities. The goal 623 00:35:31,239 --> 00:35:34,120 Speaker 1: is for residents to always be just a fifteen minute 624 00:35:34,160 --> 00:35:38,120 Speaker 1: walk away from a swabbing point. And the UK consumers 625 00:35:38,200 --> 00:35:40,960 Speaker 1: are being urged to brace for inflation getting worse before 626 00:35:41,000 --> 00:35:43,959 Speaker 1: it gets better. The British Retail Consortium said that fresh 627 00:35:44,040 --> 00:35:46,840 Speaker 1: food prices are now rising at their fastest pace in 628 00:35:46,920 --> 00:35:49,360 Speaker 1: a decade. It says fresh food roast four and a 629 00:35:49,400 --> 00:35:51,920 Speaker 1: half percent in the year that ended in May. And 630 00:35:52,000 --> 00:35:54,239 Speaker 1: the world's richest man appears to have had it with 631 00:35:54,360 --> 00:35:58,000 Speaker 1: this whole working from home business. Tesla CEO Elon Musk 632 00:35:58,120 --> 00:36:00,279 Speaker 1: waited on the debate on Twitter by elaborate rating on 633 00:36:00,320 --> 00:36:03,640 Speaker 1: an email he apparently sent to the electric carmaker's executive staff. 634 00:36:04,000 --> 00:36:07,040 Speaker 1: I know the subject line remote work is no longer acceptable. 635 00:36:07,440 --> 00:36:10,040 Speaker 1: Musk wrote that anyone who wishes to do remote work 636 00:36:10,160 --> 00:36:12,440 Speaker 1: must be in the office for a minimum of forty 637 00:36:12,520 --> 00:36:15,279 Speaker 1: hours per week or to part Tesla and as the 638 00:36:15,320 --> 00:36:18,680 Speaker 1: Bloomberg and J. A. T. Stem report, Nathan, all right, Karen, 639 00:36:18,760 --> 00:36:21,160 Speaker 1: thank you, we are live from the Bloomberg interactive broker 640 00:36:21,200 --> 00:36:24,160 Speaker 1: studios where it's six one on Wall Street time now 641 00:36:24,239 --> 00:36:25,960 Speaker 1: to check what's going on in d C. Some of 642 00:36:26,000 --> 00:36:28,880 Speaker 1: the top stories in our nation's capital include President Biden 643 00:36:29,000 --> 00:36:33,520 Speaker 1: promising advanced weapons systems to Ukraine, Treasury Secretary Yelling saying 644 00:36:33,640 --> 00:36:36,360 Speaker 1: she got it wrong on inflation last year, and the 645 00:36:36,400 --> 00:36:39,920 Speaker 1: Biden administration devoting more than two billion dollars to bolster 646 00:36:40,040 --> 00:36:42,319 Speaker 1: food supply chains. It's good more on all these stories now, 647 00:36:42,360 --> 00:36:46,359 Speaker 1: Bloomberg Government reporter Emily Wilkins joins us now, Emily, good morning. 648 00:36:46,400 --> 00:36:48,600 Speaker 1: So we got this op ed from the President last 649 00:36:48,719 --> 00:36:52,440 Speaker 1: night promising even more military support to Ukraine. Give us 650 00:36:52,440 --> 00:36:56,560 Speaker 1: more details here. Yeah, So what is really unique about this, Nathan, 651 00:36:56,960 --> 00:37:00,640 Speaker 1: is that Biden is talking about their sending these weapons 652 00:37:00,680 --> 00:37:03,040 Speaker 1: systems to Ukraine that are going to be able to 653 00:37:03,120 --> 00:37:07,080 Speaker 1: shoot a longer missiles further away targets. Now, initially there 654 00:37:07,160 --> 00:37:09,480 Speaker 1: was some concerned about this because the thought was, well, 655 00:37:09,600 --> 00:37:12,880 Speaker 1: what if Ukraine begins to target things actually within Russia 656 00:37:13,239 --> 00:37:15,960 Speaker 1: and why is up expanding this war? But we are 657 00:37:16,000 --> 00:37:17,680 Speaker 1: really at a point right now where if you look 658 00:37:17,719 --> 00:37:19,600 Speaker 1: at the ground games, you look at what's happening in 659 00:37:19,680 --> 00:37:22,439 Speaker 1: the don Bus region in the East. Um, this war 660 00:37:22,560 --> 00:37:26,160 Speaker 1: has really shifted in nature, and Biden has said that 661 00:37:26,320 --> 00:37:29,000 Speaker 1: he is going to try, uh, you will be sending 662 00:37:29,120 --> 00:37:31,080 Speaker 1: rather weapons that are going to be able to hit 663 00:37:31,160 --> 00:37:34,320 Speaker 1: targets at further distances. UM. The White House plans to 664 00:37:34,360 --> 00:37:38,480 Speaker 1: announce a seven hundred million security assistance package to Ukrane today. 665 00:37:38,880 --> 00:37:41,359 Speaker 1: That of course is coming on top of billions more 666 00:37:41,920 --> 00:37:44,719 Speaker 1: that the US has sent to Ukraine. UM. And at 667 00:37:44,760 --> 00:37:47,680 Speaker 1: this point there still seems to be UM, still pretty 668 00:37:47,760 --> 00:37:50,440 Speaker 1: high bipartisan appetite. It wasn't as high as it was 669 00:37:50,480 --> 00:37:52,920 Speaker 1: a couple of months ago uh as far as sending 670 00:37:53,000 --> 00:37:57,080 Speaker 1: funding to Ukraine, but there's still a very concentrated effort 671 00:37:57,160 --> 00:37:59,600 Speaker 1: in d c UH to make sure that that the 672 00:38:00,080 --> 00:38:04,160 Speaker 1: Ukraine gets whatever since assistance, its assistance it needs from 673 00:38:04,200 --> 00:38:07,600 Speaker 1: the US. Yeah, as we await this announcement, Emily, what 674 00:38:07,719 --> 00:38:11,680 Speaker 1: does this say about how the Biden administration sees this 675 00:38:11,920 --> 00:38:15,399 Speaker 1: war progress? And given that they are promising these sort 676 00:38:15,440 --> 00:38:19,600 Speaker 1: of mid range missile systems, well, we know that this 677 00:38:19,680 --> 00:38:21,880 Speaker 1: war it is going to be lasting awhile, and everyone 678 00:38:21,960 --> 00:38:24,120 Speaker 1: seems to kind of be hunkering down and suddling. And 679 00:38:24,239 --> 00:38:25,840 Speaker 1: for that, I mean, I think you you saw that 680 00:38:25,960 --> 00:38:29,799 Speaker 1: when you saw Congress pass a funding package that had 681 00:38:29,840 --> 00:38:31,839 Speaker 1: such a high price tag on it. You know, even 682 00:38:31,880 --> 00:38:34,960 Speaker 1: though Biden has been giving out this funding and Ingerman's 683 00:38:35,040 --> 00:38:37,680 Speaker 1: kind of up, Congress is allocated, you know, tens of 684 00:38:37,800 --> 00:38:40,480 Speaker 1: billions expecting that this war is going to go on 685 00:38:40,640 --> 00:38:42,520 Speaker 1: for a while and that the White House is going 686 00:38:42,600 --> 00:38:45,319 Speaker 1: to need that funding. Um. Bidon didn't make it clear, 687 00:38:45,400 --> 00:38:47,440 Speaker 1: and his up ed. You know, the the US is 688 00:38:47,480 --> 00:38:50,759 Speaker 1: not seeking a war between NATO and Russia. Um. You know, 689 00:38:50,840 --> 00:38:53,480 Speaker 1: as much as he disagrees with Putin, they really do 690 00:38:53,640 --> 00:38:55,520 Speaker 1: not want to escalate it. They do want to find 691 00:38:55,560 --> 00:38:58,480 Speaker 1: a diplomatic solution. But they also want to make sure 692 00:38:58,520 --> 00:39:01,799 Speaker 1: that Ukraine has what it needs to really fight back 693 00:39:02,200 --> 00:39:05,080 Speaker 1: against the Russian invasion. And you have to think, Emily 694 00:39:05,280 --> 00:39:08,560 Speaker 1: that the Biden administration is hunkering down for an even 695 00:39:08,680 --> 00:39:12,440 Speaker 1: longer war against inflation, given the comments we heard yesterday 696 00:39:12,960 --> 00:39:17,680 Speaker 1: from Secretary Yelling saying she was basically wrong about inflation 697 00:39:17,840 --> 00:39:21,920 Speaker 1: being sort of temporary. Yes uh, Yelling just came out 698 00:39:22,000 --> 00:39:25,200 Speaker 1: admitted on CNN yesterday um that she had been wrong 699 00:39:25,239 --> 00:39:27,840 Speaker 1: when she predicted last year that higher inflation would be 700 00:39:27,920 --> 00:39:30,279 Speaker 1: a long term problems. She said that you know, there 701 00:39:30,320 --> 00:39:33,160 Speaker 1: were so several unanticipated things that happened that she couldn't 702 00:39:33,200 --> 00:39:35,319 Speaker 1: have predicted and that she didn't fully sort of take 703 00:39:35,360 --> 00:39:39,440 Speaker 1: into account all of the various circumstances um. And at 704 00:39:39,520 --> 00:39:42,120 Speaker 1: this point, what she said that where we're at now 705 00:39:42,760 --> 00:39:45,640 Speaker 1: is in this period of transition um that you know, 706 00:39:45,719 --> 00:39:49,400 Speaker 1: we're not expecting to see these huge job gains monthly 707 00:39:49,520 --> 00:39:52,759 Speaker 1: job gains going forward, but they're trying to look at 708 00:39:52,840 --> 00:39:56,439 Speaker 1: a stable growth and really bring inflation down. She said 709 00:39:56,440 --> 00:39:58,720 Speaker 1: that she felt the FED was doing what it needed 710 00:39:58,760 --> 00:40:02,520 Speaker 1: to do at this point, uh to address high inflation UM. 711 00:40:02,719 --> 00:40:05,280 Speaker 1: But at this point, I mean, inflation is still expected 712 00:40:05,320 --> 00:40:09,279 Speaker 1: to be high throughout at least this summer um, if 713 00:40:09,360 --> 00:40:11,680 Speaker 1: not to the end of the year. Yeah, it's interesting 714 00:40:11,719 --> 00:40:14,320 Speaker 1: as well to hear those president comments from President Biden 715 00:40:14,440 --> 00:40:17,560 Speaker 1: yesterday when he met with the FED chair J. Powell, 716 00:40:17,719 --> 00:40:19,719 Speaker 1: sort of saying that he wants to give the FED 717 00:40:19,800 --> 00:40:22,480 Speaker 1: the space it needs to tackle inflation. You have to 718 00:40:22,560 --> 00:40:26,080 Speaker 1: wonder though, whether there's a political impact for the President 719 00:40:26,239 --> 00:40:31,120 Speaker 1: when he sort of shifts responsibility for tackling sky high 720 00:40:31,200 --> 00:40:33,520 Speaker 1: prices over to the central bank as opposed to the 721 00:40:34,000 --> 00:40:37,200 Speaker 1: fiscal side. Well, I mean, na said I don't think 722 00:40:37,239 --> 00:40:40,359 Speaker 1: most Americans look at the grocery store, look at high 723 00:40:40,400 --> 00:40:44,080 Speaker 1: prices and say, oh, the FED. Most of them they blamed, 724 00:40:44,120 --> 00:40:46,440 Speaker 1: They blame Biden, they blame the president, they blame the 725 00:40:46,480 --> 00:40:49,320 Speaker 1: person who is in charge. UM. And and that's just 726 00:40:49,400 --> 00:40:52,160 Speaker 1: going to be the nature of the political impact here. 727 00:40:52,520 --> 00:40:55,640 Speaker 1: I mean what I think what the context to look 728 00:40:55,719 --> 00:40:58,520 Speaker 1: at what Biden is saying UM is simply that he's 729 00:40:58,560 --> 00:41:01,960 Speaker 1: trying uphold precedents of the independence of the FED. That 730 00:41:02,160 --> 00:41:05,000 Speaker 1: was something that we saw his predecessor, Donald Trump kind 731 00:41:05,000 --> 00:41:07,319 Speaker 1: of challenged while he was in office as far as 732 00:41:07,400 --> 00:41:11,200 Speaker 1: trying to give the FED direction and instruction. Biden's trying 733 00:41:11,239 --> 00:41:13,160 Speaker 1: to sort of return to the precedent that was set 734 00:41:13,239 --> 00:41:15,719 Speaker 1: before that kind of leaving the FED, having them have 735 00:41:15,840 --> 00:41:19,400 Speaker 1: their independence, and trying to be hands off in that department. 736 00:41:19,719 --> 00:41:21,920 Speaker 1: Think about thirty seconds left here, Emily, But what's the 737 00:41:21,960 --> 00:41:24,440 Speaker 1: sit down? So what we're expecting from the Biden administration 738 00:41:24,600 --> 00:41:28,360 Speaker 1: on food supply chains? Yeah, so the Biden administration is 739 00:41:28,360 --> 00:41:31,200 Speaker 1: going to be announcing two point one billion dollars just 740 00:41:31,280 --> 00:41:34,240 Speaker 1: to help food supply change. This is gonna expanding small 741 00:41:34,320 --> 00:41:39,080 Speaker 1: and midsized processing plans, helping farmers obtain new infrastructure like 742 00:41:39,160 --> 00:41:43,239 Speaker 1: cooling facilities and helping farmership to organic products. Of course, Nathan, 743 00:41:43,320 --> 00:41:45,720 Speaker 1: this all comes after the shortage and baby formula. Biden 744 00:41:45,760 --> 00:41:47,560 Speaker 1: is going to be meeting with a number of infant 745 00:41:47,600 --> 00:41:50,040 Speaker 1: formula makers to day in the White House. Not on 746 00:41:50,120 --> 00:41:52,480 Speaker 1: the guest list is Abbot Industries and they're the ones 747 00:41:52,480 --> 00:41:55,760 Speaker 1: whose factory in Michigan was shuttered over safety concerns earlier 748 00:41:55,800 --> 00:41:58,680 Speaker 1: this year that led to the current shortage. So between 749 00:41:58,719 --> 00:42:02,279 Speaker 1: omission there, Yeah, certainly Emily Wilkins of Bloomberg Government will 750 00:42:02,320 --> 00:42:05,840 Speaker 1: be watching for developments as that meeting gets underway with 751 00:42:05,880 --> 00:42:08,520 Speaker 1: the baby formula manufacturers. You pready read much more on 752 00:42:08,560 --> 00:42:11,160 Speaker 1: all these stories at Bloomberg dot com or on the 753 00:42:11,200 --> 00:42:14,640 Speaker 1: Bloomberg terminal, and listen to Bloomberg Radio in Washington at 754 00:42:14,640 --> 00:42:19,040 Speaker 1: Bloomberg one and one oh five point seven FM HD two. 755 00:42:19,680 --> 00:42:25,160 Speaker 1: Get ready to open the trading month. Futures little changed 756 00:42:25,200 --> 00:42:27,120 Speaker 1: at the moment right now. S and P futures are 757 00:42:27,160 --> 00:42:30,000 Speaker 1: little changed. To the downside. DAL futures up eighty one points, 758 00:42:30,440 --> 00:42:34,400 Speaker 1: NASTAC futures are lower by nineteen points. The tenure treasuries 759 00:42:34,440 --> 00:42:38,440 Speaker 1: down four thirty seconds yield two point eight five percent. 760 00:42:38,760 --> 00:42:41,840 Speaker 1: Bloomberg Surveillance up next with Tom Keene, Jonathan Farrell, and 761 00:42:41,960 --> 00:42:45,560 Speaker 1: Lisa Bramowitz for Karen Moscow. I'm Nathan Hagar, and this 762 00:42:46,719 --> 00:42:47,440 Speaker 1: is Bloomberg