Speaker 1: Live from the Bloomberg Interactive Berger Studios. This is Bloomberg
Speaker 1: day Break for a Wednesday, June one, two Coming up
Speaker 1: this hour, Wall Street kicks off a new trading month
Speaker 1: after May saw the sp five hundred seater on a
Speaker 1: bear market. Treasury Secretary Janet Yellen says she got it
Speaker 1: wrong last year on inflation. The Fed starts to shrink
Speaker 1: its eight point nine truly a dollar ballot sheet, and
Speaker 1: the US ramps up military support to Ukraine. New York
Speaker 1: Governor Hukill introduces new gun reform measures, Plus the first
Speaker 1: funerals have again for the victims of the Texas school shooting.
Speaker 1: I'm Michael larn More. Ahem, I'm John Stashon sports blowout
Speaker 1: wins at home for the Mets and the Yankees. Rangers
Speaker 1: in lightning play Game one at the Garden tonight. That's
Speaker 1: all trading ahead on Bloomberg Daybreak on Bloomberg eleven three
Speaker 1: on New York, Bloomberg one, Washington, d C, Bloomberg one
Speaker 1: oh six one, Boston, Bloomberg nine sixties and Francisco Sirius
Speaker 1: x M one nine team and around the world Old
Speaker 1: on Bloomberg Radio dot Com and via the Bloomberg Business
Speaker 1: and good morning. I'm Karen Moscow, I'm Nathan Hagar. Bloomberg
Speaker 1: Daybreak is brought to you by B and Y Melon's
Speaker 1: Pershing Inside Conference back in person June fifteen through the
Speaker 1: seventeenth in Grapevine, Texas, a must attend event for financial advisors,
Speaker 1: registered today at Inside dot b n y Melon dot Com,
Speaker 1: and US futures are mixed this morning. It is six
Speaker 1: and went on Wall Street. We checked the markets every
Speaker 1: fifteen minutes throughout the trading day. On Bloomberg. SMP future
Speaker 1: is up five points down, futures up a hundred, twenty
Speaker 1: four nasday futures are down thirteen and the ten year
Speaker 1: treasury down four thir Day seconds held two point eight
Speaker 1: six percent, yield on the two year two point five
Speaker 1: seven percent. Nathan Karen. US stocks begin June after a
Speaker 1: month where the SMP five hundred was basically unchanged, but
Speaker 1: that does not explain the extreme volatility during the month
Speaker 1: of May. The benchmark index surged more than eight percent
Speaker 1: after falling within points of a twenty percent drop from
Speaker 1: a record, signifying a bear market. Peter Oppenheimer is chief
Speaker 1: Global equity Strategist at Goldman Sacks. If you look at
Speaker 1: the history for markets, at least when you get pea inflation,
Speaker 1: you do tend to get a recovery in risk assets,
Speaker 1: and that's generally because it starts to alleviate pressures on
Speaker 1: on interest rates. By that stage, you've usually had markets
Speaker 1: already pricing in an economic downturn. So at the point
Speaker 1: where people think that things are bad but getting less bad,
Speaker 1: you tend to get a recovery. Goldman Sacks. Chief global
Speaker 1: equity strategist Peter Oppenheimer still says he expects markets to
Speaker 1: be very volatile over the next few months. Well, Nathan.
Speaker 1: Helping to lift sentiment this morning is corporate earning shares
Speaker 1: a sales Fource up eight percent in early training, the
Speaker 1: company raising its annual profit forecast. We get more from
Speaker 1: Bloomberg's Don Christner. It signals demand for business software is
Speaker 1: holding up in the face of macro economic instability. Salesforce
Speaker 1: said fiscal year earnings excluding some items will be as
Speaker 1: much as four dollar seventy six cents. Analysts on average
Speaker 1: estimated annual profit of four dollar sixty eight cents. Salesforce
Speaker 1: is the leader in cloud based customer management software now
Speaker 1: during the pandemic. The company expanded its products for business
Speaker 1: productivity with the purchase of the messaging platform Slack at
Speaker 1: a price of twenty seven point seven billion dollars in
Speaker 1: New York. I'm Doug Chrisner, Bloomberg Daybreak. All right, Doug. Thanks.
Speaker 1: Crude oil is also on the rise this morning, trading
Speaker 1: at a hundred sixteen seventy five cents for a barrel
Speaker 1: of West Texas Intermediate. This comes ahead of an OPEC
Speaker 1: plus routine meeting tomorrow to discuss supply policy at more.
Speaker 1: City Groups Global ahead of Commodity Research, says triple digit
Speaker 1: oil should be a lot lower. We have to just
Speaker 1: look at the cost structure of the industry. You have
Speaker 1: to look at where new production is coming and where
Speaker 1: would be coming even if we didn't have a hundred
Speaker 1: twenty three dollar red and I'd say it's more in
Speaker 1: the seventy dollar range than it is in the d
Speaker 1: twenty dollar range. City Group said. Moore says demand for
Speaker 1: oil and refined products is falling as the economy starts
Speaker 1: bracing for a recession. Well, Nathan, inflation is still a
Speaker 1: major focus for markets and the top political challenge for
Speaker 1: the White House now Treasury Secretary Janet Yellen is admitting
Speaker 1: she got it wrong last year when she said inflation
Speaker 1: would only be temporary. There have been an anticipated and
Speaker 1: lord shocks to the economy that have boosted energy and
Speaker 1: food prices and um supply bottlenecks that have affected our
Speaker 1: economy badly that I didn't at the time, didn't fully understand,
Speaker 1: but we recognize that now. In an interview as CNN,
Speaker 1: Secretary Yellen said she's encouraged that corporations have started to
Speaker 1: come down, but she says she cannot rule out future shocks.
Speaker 1: The Secretary Yellen was at the White House yesterday Karen
Speaker 1: for a rare meeting between President Biden and FED chair
Speaker 1: j Powell. President used it to declare that he respects
Speaker 1: Central Bank independence while shifting responsibility for taming decades high inflation.
Speaker 1: I'm not going to interfere with their critically important work.
Speaker 1: FED as tool responsibilities one full employment to stable prices.
Speaker 1: This was President Biden's third in person session Powellson's taking
Speaker 1: office well. The FED will also be in focus today.
Speaker 1: Nathan's set to start shrinking at eight point nine trillion
Speaker 1: dollar balance sheet. The Central Bank also releases the Beige Book,
Speaker 1: and we get more from Bloomberg's Michael McKee. The question
Speaker 1: is what will investors learn from the Beige Book that
Speaker 1: they don't already know. Are there hints in the anecdotal
Speaker 1: reports suggesting some goods or services are seeing prices the
Speaker 1: level offer decline? Will there be any indications the labor
Speaker 1: market is loosening? Overall, the Beige Book is likely to
Speaker 1: assess the economy continues to expand at a moderate pace.
Speaker 1: That's the phrase the Fed usually uses. Consumers are still
Speaker 1: spending and manufacturers are trying to keep up. The survey
Speaker 1: is one input into FED policy decisions, but the Central
Speaker 1: Bank has already suggested it's made up his mind to
Speaker 1: raise rates at the next two meetings. Michael McKee, Bloomberg Daybreak.
Speaker 1: All right, Mike, thank you now. The latest developments on
Speaker 1: the war. President Biden says he will give Ukraine advanced
Speaker 1: rocket systems another weaponry to help at the battle with Russia.
Speaker 1: Amy Morris has details from our Bloomberg newsroom in Washington.
Speaker 1: The President made the announcement in a New York Times
Speaker 1: article published last night. As senior US official hotels Bloomberg News.
Speaker 1: The package includes missiles that will allow Ukraine to strike
Speaker 1: locations as far as eighty kilometers away, and while world
Speaker 1: leaders have publicly called for such a move, one concern
Speaker 1: is whether Ukraine would use them to strike targets inside
Speaker 1: Russia that would risk expanding the war and pulling in
Speaker 1: NATO countries. The White House plans to formally announce the
Speaker 1: new seven hundred million dollar security assistance package today in Washington.
Speaker 1: I'm Amy Morris Bloomberg Daybreak, Right, Amy, thank you. President
Speaker 1: Biden will also be addressing the baby formula shortage and
Speaker 1: the country. The White House stade the President will mean
Speaker 1: virtually with infant formula manufacturers this afternoon. Finally, care In
Speaker 1: the world's richest man appears to have had it with
Speaker 1: this whole working from home business testas CEO Elon Musk
Speaker 1: wade in on the debate on Twitter by elaborating on
Speaker 1: an email he apparently sent to the Electric Carmakers executive
Speaker 1: staff under the subject line remote work is no longer acceptable.
Speaker 1: Musk wrote that anyone who wishes to do remote work
Speaker 1: must be in the office for a minimum of forty
Speaker 1: hours per week or depart Tesla right now. S and
Speaker 1: p futures are up three points. Stown features of a
Speaker 1: hundred sixteen NASTAC futures are lower by nineteen points. The
Speaker 1: tenure treasury yield right now two point eight six percent.
Speaker 1: Local headlines and a check of sports. Up next to
Speaker 1: this is Bloomberg Sounds six o seven on Wall Street
Speaker 1: board sixty degrees in Central Park dealing with an accident
Speaker 1: on the westbound Belt Parkway a cross Bay Boulevard. Details
Speaker 1: coming up at Traffic. First Michael bar with Warre on
Speaker 1: what's going on in New York and around the world.
Speaker 1: Good morning, Michael, Good morning Nathan. New York Governor Kathy
Speaker 1: Hocill introduced a new package of gun reform bills aftermass
Speaker 1: shootings in Buffalo and U Valley. It is a total
Speaker 1: of ten bills that would tighten New York's gun laws
Speaker 1: and closed loopholes. Hocal says New York already has some
Speaker 1: of the toughest gun laws in the country, but clearly
Speaker 1: we need to make them even stronger. Among the proposed
Speaker 1: legislation is increasing the minimum age require meant by a
Speaker 1: semi automatic rifle from eighteen to twenty one. The victims
Speaker 1: of last week's mass shooting and the Texas grade school
Speaker 1: are being laid to rest in New Valley. The first
Speaker 1: funerals were held yesterday. A gunman killed nineteen children and
Speaker 1: two teachers. One of those teachers was Eva morrell As.
Speaker 1: Her sister, Maggie Morrells Thomas says she told Governor Abbot
Speaker 1: that if he wants to help, he could change the
Speaker 1: state's gun laws. There's no reason why this type of
Speaker 1: weapon should be among us people here. These things belong
Speaker 1: in the war. There's no war in the classroom. There's
Speaker 1: no war out here in Valdi. Maggie Morrellus Thomas says
Speaker 1: she does not want anyone to forget her sister's name.
Speaker 1: A woman wounded in an April New York City subway
Speaker 1: shooting is filed a lawsuit against gun manufacturer Glock. In
Speaker 1: her lawsuit, Eileen Stewart said Glock endangered the public health
Speaker 1: and safety with the marketing, distribution, and sales of its gun.
Speaker 1: Ten people were shot and wounded as a man fired
Speaker 1: dozens of bullets and the subway train full of morning commuters.
Speaker 1: New York is suspending its gas tax for the rest
Speaker 1: of the year. It would save sixteen cents per gallon,
Speaker 1: joining Connecticut and suspending its gas tax. The energy Department
Speaker 1: says the nationwide record average for a gallon of gas
Speaker 1: rose three cents in the past week to four dollars
Speaker 1: sixty two cents. Governor HOCl announces new LI Double R
Speaker 1: terminal in Mentown, Manhattan. It will be named Grand Central Medicine.
Speaker 1: You're talking about a place as iconic as Grand Central.
Speaker 1: You can't change that. And this conjures up the images
Speaker 1: of glory in a time early nine, nineteen eleven twelve,
Speaker 1: when when the world was stunned by the magistrate of
Speaker 1: this building itself. Governor Hocal says it will be completed
Speaker 1: by the end of this year. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quicksay, powered
Speaker 1: by more than journals snatalists more than twenty countries. Michael Barr,
Speaker 1: this is Bloomberg Kin. Michael, thanks, We're coming up to
Speaker 1: six ten on Wall Street. John stash Ore has the
Speaker 1: Bloomberg sports updates and Nathan Mets and Yankees were both
Speaker 1: at home. They won by a combined score of nineteen
Speaker 1: to one. It was ten nothing for the Mets over Washington.
Speaker 1: They had seventeen hits. Mark Hanna had four, Jeff McNeil
Speaker 1: three home runs for Sterley Marte and Edwardo Escobar, and
Speaker 1: the Mets have won five in a row, scoring forty
Speaker 1: four runs in those five games, twenty three runs in
Speaker 1: the two games so far with the Nationals of the
Speaker 1: day game today at City Field the Stadium, Yanks over
Speaker 1: the Angels nine to one, four run first and include
Speaker 1: two run homer by the newest Yank Matt Carpenter. Jose
Speaker 1: Trevino later with the two run shot. Plenty of run
Speaker 1: support for Jordan Montgomery, who normally does not receive it.
Speaker 1: He got his person under the year Wild started the
Speaker 1: Stanley Cup West Finals Avs and Oilers in Denver. They
Speaker 1: combined for five goals in the first period, six more
Speaker 1: in the second. The has led seven to three, it
Speaker 1: was cut to seven six Colorado held on a on
Speaker 1: eighth to six. Don't expect a game like that tonight
Speaker 1: at the Gardens. The Rangers in Lightning begin the East
Speaker 1: Finals too. Terrific goalies the Rangers igors Ches Turkin, Tampa
Speaker 1: bay Is Andre Vasileski, the Ranger defenseman Adam Fox to
Speaker 1: the top goalies. Obviously, uh does his track record speak herself,
Speaker 1: but Jest's it does to what he's done this year
Speaker 1: has been in Stanley. Impressive. So that's the two good
Speaker 1: goal is uh, you know? Coming together the lightning to
Speaker 1: the two time defending Stanley Cup Chace. They just won
Speaker 1: their tenth straight series. Who was a sweep of Florida?
Speaker 1: Who was the top seed of these fifty nine bat
Speaker 1: between Raphael Dala Novak Djokovic who leads thirty to twenty nine,
Speaker 1: but Nadal won four sets. He's into the semifinals of
Speaker 1: the French Open. He's won the tournament thirteen times. John
Speaker 1: stash were Bloomberg Sports Nathy okay, John thanks SMP futures
Speaker 1: up a point and a half. Right now down, Future
Speaker 1: is up a hundred four points. Stansta features down twenty
Speaker 1: eight points. The tet your treasuries down for thirty seconds.
Speaker 1: The yield two point eight five per cent. You're listing
Speaker 1: to Bloomberg Daybreak. Bloomberg day Break brought to you by
Speaker 1: Hofstra Universities Frank gez Art School of Business, top ranked
Speaker 1: online NBA program with the Real World Foundation. Learn more
Speaker 1: at Hofstra dot e d u slash Go Brad markets
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com. The Bloomberg Business Out and at Bloomberg Quicktake,
Speaker 1: He's a Bloomberg Business Flash and I'm Cameron Moscow songs
Speaker 1: in Europe and US dock in Next Future are struggling
Speaker 1: for direction today admitted debate over the scale of central
Speaker 1: bank monetary policy tightening needed to fight inflation. We checked
Speaker 1: the markets every fifteen minutes throughout the trading day on
Speaker 1: Bloomberg and right now, S and P futures are little
Speaker 1: changed down futures up in ninety eight and NASDAG futures
Speaker 1: are down twenty six The decks in Germany's at a
Speaker 1: quarter per cent, tenure treasury is down five thirty seconds.
Speaker 1: He'll two point eight six percent, the yell done, the
Speaker 1: two year two point five seven percent, nine mex screwed
Speaker 1: oil up one point four percent of a dollar sixty
Speaker 1: three at a hundred sixteen dollars thirty cents, and barrel
Speaker 1: comic school is down nighted tenths per cent or sixteen
Speaker 1: dollars eighties cents at eighteen thirty one sixty announced the
Speaker 1: euro one point oh seven to two against the dollar,
Speaker 1: British bound one point to six and the yen at
Speaker 1: one nine point three eight and Bitcoin this morning, lower
Speaker 1: down six tenths per cent at thirty one thousand, five
Speaker 1: nine dollars. That's a Bloomberg business flap show. Here's Michael
Speaker 1: bar with more on what's going on around the world.
Speaker 1: Michael Barn, thank you very much. President Joe Biden said
Speaker 1: he'll give Ukraine advanced rocket systems and other U S
Speaker 1: weaponry to better hit targets in its war with Russia.
Speaker 1: The White House plans to announce the new seven hundred
Speaker 1: million dollars security assistance package today. The first funerals for
Speaker 1: victims of last week's mass shooting at rob Elementary School
Speaker 1: began yesterday in New Valley, Texas. In baseball, the Yankees one,
Speaker 1: the mat shut out, the Nine Sationals en Zepp, the
Speaker 1: Red Sox Orioles, and A's lost the Giants one. In
Speaker 1: the NHL Eastern Conference Finals tonight, Game one as the
Speaker 1: Rangers host the lightning Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quick Take, powered by
Speaker 1: more than hundred journalists analysts more than a hundred twenty
Speaker 1: countries at Michael Barn, this is Bloomberg. This is the
Speaker 1: Big Take, the best of Bloomberg's in depth, original reporting
Speaker 1: from around the globe. This is a really fascinating story
Speaker 1: that's caused a lot of outrage among investors. This is
Speaker 1: so fascinating. The market shotdown in a way it's never
Speaker 1: done before. That's gonna have consequences for years to come.
Speaker 1: The big take on Bloomberg Radio. It's six times seen
Speaker 1: on Wall Street Live from the Bloomberg Attractive Broker Studios.
Speaker 1: This is Bloomberg day Break and our big take this
Speaker 1: morning is on the war in Ukraine and how the
Speaker 1: surge in commodity prices sparked by Russia's invasion is helping
Speaker 1: to fuel the Kremlin's war machine despite massive sanctions from
Speaker 1: the US and its outli Bloomberg Dow's oil strategist Juliant
Speaker 1: Lee joins US Now with more on this Bloomberg Big
Speaker 1: Takes story. Juliant, good morning. You know, the sanctions were
Speaker 1: supposed to starve Russian military financing, but it's almost like
Speaker 1: the wars created a feedback loop. Is that the right
Speaker 1: way to look at it when it comes to the
Speaker 1: impact of oil price surges. Well, good morning, It's good
Speaker 1: to be with you. Um. Certainly we you know, we've
Speaker 1: seen some big rises in headline prices not just for
Speaker 1: oil but for other commodities as well, and there's a
Speaker 1: temptation to to see that feeding through UM to Russia
Speaker 1: and Russia's earnings, and undoubtedly they have benefited to some
Speaker 1: degree from that. But I think it's important um also
Speaker 1: to look at the sort of discounts that Russia is
Speaker 1: having to offer, particularly for its oil exports, to get
Speaker 1: a real sense that things are starting to happen. And
Speaker 1: the oil embargo that the European Union has now agreed
Speaker 1: that really hasn't come into effect yet, so everything that
Speaker 1: we've seen to date has been very much on a
Speaker 1: voluntary basis by buyers. And what we have seen is
Speaker 1: that in the last month or so, the sort of
Speaker 1: discounts that Russia has had to offer for its crude
Speaker 1: have been in excessive thirty dollars a barrel. So that
Speaker 1: means that while we're seeing Brent and West Texas intermediate
Speaker 1: that sort of hundred and fifteen hundred and twenty dollars
Speaker 1: a barrel, Russian crude is still selling below a hundred
Speaker 1: and you know, in some cases below ninety as well,
Speaker 1: so still a high price UM. But those self sanctions
Speaker 1: are having an effect, and the mandatory sanctions that are
Speaker 1: coming will have an additional effect. And now the Russia
Speaker 1: has been able to sell its crude at a discount,
Speaker 1: it's been sort of shifting its supply chain as well,
Speaker 1: hasn't it to try to find those buyers. Is there
Speaker 1: anything that the US and its allies can do to
Speaker 1: sort of tackle that the purchasing of Russian crude by
Speaker 1: other nations. Well, there are certainly things that could be done.
Speaker 1: I mean that there is quite clearly precedent for secondary
Speaker 1: sanctions against buyers of Russian audio. Only have to look
Speaker 1: at the sanctions that were um imposed both by the
Speaker 1: Obama administration and by the Trump administration subsequently that targeted
Speaker 1: um sort of other buyers of in that case Iranian
Speaker 1: crude UM, and those were both success That's successful in
Speaker 1: their own right in reducing sales of Iran's crewed around
Speaker 1: the world, and it's it's possible that something like that
Speaker 1: could be done with Russian crewede. I think that the
Speaker 1: problem is that we are in a very different market
Speaker 1: to the one that we were in when sanctions were
Speaker 1: imposed on Iran. The underlying supply demand balance is much tighter.
Speaker 1: That's why we're seeing the big run up in prices,
Speaker 1: and in some senses, what I think that the Western
Speaker 1: Powers want to do is not necessarily to choke off
Speaker 1: the the all of Russia's oil a sports. They want
Speaker 1: to make it more difficult. They want to make it
Speaker 1: more expensive for Russia to export its oil. They certainly
Speaker 1: want to reduce the volumes, but I doubt that anyone
Speaker 1: who's looking at the state of the oil market would
Speaker 1: would really want to see no oil coming out of Russia.
Speaker 1: I know that it's a um a high a desirable
Speaker 1: outcome for Ukraine and for anyone who looks at it
Speaker 1: purely from the lens of Russian income and the ability
Speaker 1: to fund the war in Ukraine. But the cost of
Speaker 1: a total halt to Russian oil exports I think would
Speaker 1: be huge. Much more on this in our Big Take
Speaker 1: story Russia's two hundred five billion dollar oil and gas
Speaker 1: bonanza is funding Putin's war. Bloomberg News oil strategist Julian
Speaker 1: Lee thanks for being with us to get a glimpse
Speaker 1: at what's in this Big Take story. You can read
Speaker 1: much more on Big Take, Bloomberg dot Com, slash Big Take,
Speaker 1: or ni Big Take go on the Bloomberg Terminal and
Speaker 1: looking at oil prices right now, NIMEX screwed is higher
Speaker 1: on this session by one point four percent, up a
Speaker 1: dollar fifty nine and a hundred sixteen barrel. Brent is
Speaker 1: higher by one point four percent at a hundred seventeen
Speaker 1: dollars seven cents. Future is little changed at the moment.
Speaker 1: You're listening to Bloomberg Daybreak Bloomber eleven three oh weather.
Speaker 1: Chance for showers and storms this afternoon with highs of
Speaker 1: the low seventies. More showers likely tomorrow afternoon as well,
Speaker 1: with highs of the low eighties, clearing upper seventies for Friday.
Speaker 1: Right now, sixty degrees in Central Park. Broadcasting live from
Speaker 1: the Bloomberg Interacted Broker Studio in New York. Bloomberg Eving
Speaker 1: Preen to Washington, d C. Bloomberg to Boston, Bloomberg one
Speaker 1: O six one to San Francisco, Bloomberg N sixty to
Speaker 1: the Country, Sirius XM Chento one nineteen and around the globe,
Speaker 1: the Bloomberg Business app and Bloomberg Radio dot Com. This
Speaker 1: is Bloomberg Daybreak. It's six thirty on Wall Street to Boarding.
Speaker 1: I got Nathan Hagar and I'm Cameron Moscow. We're just
Speaker 1: about three hours away from the open of US trading.
Speaker 1: Time for the five things you need to notice start
Speaker 1: your day. Brought to you by I b k R
Speaker 1: Investment Advisers switched to Interactive Brokers for lowest const global
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Speaker 1: i A first u s dogs begin June, coming off
Speaker 1: a volatile month that left the SNP five hundred basically
Speaker 1: unchanged and made the benchmark index surge more than eight
Speaker 1: percent after falling within points of a drop from a record.
Speaker 1: John Stults FIZ, chief investment strategist with Oppenheimer Asset Management,
Speaker 1: says he could see the index begin to rise again.
Speaker 1: The last time we saw a market that was in
Speaker 1: the process of coming out of a crisis, which was
Speaker 1: two thousand and nine. The SNP declined from January to
Speaker 1: March oh nine. It then rallied sixty to the end
Speaker 1: of the year. Hoppenheimer Asset Management chief investment strategist John
Speaker 1: Stolts FIZZ says it's possible the SNP makes a similar climb,
Speaker 1: but amidst he may have to adjust his projections well.
Speaker 1: Inflation is still a major focus for markets care and
Speaker 1: at the top political challenge for the White House. Now,
Speaker 1: Treasury Secretary Janet Yellin's admitting she got it wrong last
Speaker 1: year when she said inflation would be temporary. There have
Speaker 1: been unanticipated and lord shocks to the economy that have
Speaker 1: boosted energy and food prices and supply bottle knicks that
Speaker 1: have affected our economy badly that I didn't at the time,
Speaker 1: didn't fully understand. Treasury Secretary Janet Yellin tells CNN she's
Speaker 1: encouraged prices are coming down, but can't rule out future shocks.
Speaker 1: Nathan Secretary Yellin was at the White House yesterday for
Speaker 1: a meeting between President Biden and FED share J. Powell.
Speaker 1: Jane Sperling, senior adviser to the President, says the President
Speaker 1: used the meeting to make clear he respects the Fed's
Speaker 1: independence as it looks to cool inflation. We understand that
Speaker 1: our Federal Reserve is independent as while they have a
Speaker 1: dual mandate at times where inflation becomes the highest concern,
Speaker 1: that they're going to take steps to dampen that inflation
Speaker 1: and that's going to be raising interest rates, and the
Speaker 1: President is going to respect that. Independent Senior adviser to
Speaker 1: President Biden Jeane Spirling speaking with Joe Matthew on Bloomberg
Speaker 1: Sound on airing weekdays at five pm Eastern on Bloomberg Radio,
Speaker 1: the Federal be had focused again today. Karen is it's
Speaker 1: set to start shrinking it's eight point nine trillion dollar
Speaker 1: balance sheet. It also releases its spage book today, and
Speaker 1: Nathan Crude Oil also on the rounds this morning. It
Speaker 1: is currently trading at a hundred and sixteen dollars twenty
Speaker 1: cents a barrel. That's up one point three per cent,
Speaker 1: and this comes before an opeg plus routine meeting tomorrow
Speaker 1: to discuss its supply policy. That's the five things you
Speaker 1: need to know to start your day. Brought to you
Speaker 1: by Interactive Brokers at a sound six thirty three on
Speaker 1: Wall Street where it's sixty degrees in Central Park, dealing
Speaker 1: with an accent on the westbound l a lower level
Speaker 1: by the b Que. Details coming up in traffic. First
Speaker 1: Michael Barr with more of what's going on in New
Speaker 1: York and around the world. Michael, thank you very much.
Speaker 1: Nathan New York Governor Kathy Hock will introduce a new
Speaker 1: package of gun reform bills aftermass shootings in Buffalo and Uvaldi.
Speaker 1: It is a total of ten pills that would tighten
Speaker 1: New York's gun laws and close loopholes. Among the proposed
Speaker 1: legislation is increasing the minimum age requirement by a semi
Speaker 1: automatic rifle from eighteen to twenty one. The first funerals
Speaker 1: for victims of last week's mass shooting at rob Elementary
Speaker 1: School began yesterday in New Valley, Texas. Texas State Democratic
Speaker 1: Senator Roland Gautierres, who represents you Valdy, says he is
Speaker 1: calling on Governor Greg Abbott called a special session of
Speaker 1: the legislature to address the shooting. We need a special
Speaker 1: session to fix gun laws, but we also need a
Speaker 1: special session for this legislature to go and investigate woment
Speaker 1: wrong here. State Senator Gutierres told ABC he is hearing
Speaker 1: voters demand for reform to gun laws. The Supreme Court
Speaker 1: has put on hold of Texas law that would stop
Speaker 1: social media platforms from deleting posts and accounts. Bloomberg's aid
Speaker 1: Baxter as the story. The hold will allow a constitutional
Speaker 1: challenge to go forward in a lower court. The tech
Speaker 1: groups Meta, Twitter and Google. I'll argue the law which
Speaker 1: stop them from barring hate speech, including neo Nazi and
Speaker 1: ku Klux Klan, or Russian propaganda or just plainly misinformation
Speaker 1: and untruths. The authors of the legislation say they are
Speaker 1: just trying to protect free speech. The High Court vote
Speaker 1: was split in this decision and did not explain its
Speaker 1: decision at all. In San Francisco, I met Baxter Bloomberg Gaybreak, Sacramento. Kelly,
Speaker 1: California has found a third probable case of monkeypox, even
Speaker 1: though health officials have said monkey pox is not easily spread.
Speaker 1: Both had contact with the first patient, who had traveled
Speaker 1: to Europe and came back with it. Fifteen monkey pox
Speaker 1: cases have now been confirmed in the US, with more
Speaker 1: being suspected. It is a new name for a new
Speaker 1: ELI Double R terminal. Governor Kathy Hukel says it will
Speaker 1: be called Grand Central Madison. For twenties four years now,
Speaker 1: we've been hearing about this project, and everyone always just thought,
Speaker 1: so it'll get done some day in the future. The future,
Speaker 1: the future, the future is. Governor holcl says, the East
Speaker 1: Side Access Terminal Laimes to bring six more traffic into
Speaker 1: Manhattan from Long Island at peak times. Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quickdake,
Speaker 1: powered by more than twenty seven hundred journalists Antalyist and
Speaker 1: more than a d countries. I Michael Barrn, this is Bloomberg,
Speaker 1: nath Okay, Michael, thank you. Albo six thirty six on
Speaker 1: Wall Street. Time for the Bloomberg Sports Update with Jock
Speaker 1: Stas shower As Nathan June begins with the Yankees best
Speaker 1: record baseball. The Mets, owners of the biggest lead Yanks,
Speaker 1: improved the thirty four and fifteen met the Angels stadium
Speaker 1: nine to one. They finally scored runs for George Montgomery.
Speaker 1: Every Yank had a head except Darren Judge. Even Joey
Speaker 1: gallow had two hits. Mets, also at home, being Washington,
Speaker 1: tend up in their thirty four and seventeen They've got
Speaker 1: a tenant ap game lead in the n L A
Speaker 1: seventeen met hits. In their fifth on the row, the
Speaker 1: Mets have sent the struggling Dom Smith down to Triple
Speaker 1: A Syracuse. He was batting just one eight six hit
Speaker 1: three sixteen years ago. Stelen Cup Playoffs Game one in
Speaker 1: the West and it wasn't designed until the fourteenth goal
Speaker 1: of the night. Landi Scog tried to get it out.
Speaker 1: He does the center rice through the legs a tricycle
Speaker 1: interceptif by Landiskog feet from Barry Landi Scott open net
Speaker 1: ye patcha oh, Captain, my captain, mix it eight for
Speaker 1: the Avalanche with twenty one point four seconds to go
Speaker 1: in the third of this place has erupted and vor
Speaker 1: Colorado beat Edmonton eight to six Rangers in lightning tonight
Speaker 1: at the Garden to start the East Finals. Tampa Bay,
Speaker 1: winners of ten consecutive playoff series, just swept top seed Florida,
Speaker 1: two time defending Stanley Cup chance. The last NHL three
Speaker 1: pet was the Islanders in the early nineteen eighties. The
Speaker 1: Rangers swept the regular season series with Tampa thirteen time
Speaker 1: French Open, champ Rapfield and the Alley to the semifinals
Speaker 1: in Paris. He beat Novak Djokovic in four sets. The
Speaker 1: match went over four hours, ended past one am. Battle
Speaker 1: of Americans Cocoa coffeets Loan Stevens the eight teen It
Speaker 1: All Golf into her first brand Snap Semi, John Stanshaward
Speaker 1: Bloomberg Sports, Nathan all Right, John, Thanks six thirty seven
Speaker 1: on Wall Street. Let's get bored down on the path
Speaker 1: ahead for the FED as the Central Bank begins this
Speaker 1: month by beginning to unwind it's eight point nine trillion
Speaker 1: dollar balance sheet. Bloomberg Economics correspondent Michael McKee is with
Speaker 1: US Live Myke good Moarning. There's been so much focus,
Speaker 1: of course, for investors over the last several months, about
Speaker 1: the path for interest rates. Now this second tool is
Speaker 1: about to be deployed by the Central Bank. What's the
Speaker 1: potential impact here. That's a very good question that I
Speaker 1: don't have an answer to, but neither do FED officials.
Speaker 1: Coming to Chris Waller the other day, they said the
Speaker 1: potential range of impact is very wide because this is
Speaker 1: only the second time this has happened, and we're talking
Speaker 1: about such huge sums of money over a period of
Speaker 1: time that the FED doesn't really know that. Their best
Speaker 1: guesses maybe quarter percentage point increase in rates spread out
Speaker 1: over a year. The worst case scenario is maybe we
Speaker 1: get a hundred and fifty base points of of movement.
Speaker 1: So they're gonna be watching it closely to see what happens.
Speaker 1: But it's gonna be a while till we see any
Speaker 1: kind of reaction because they're only starting with thirty billion
Speaker 1: in treasuries and seventeen and a half in mortgage bonds
Speaker 1: UH a month for three months until it starts to
Speaker 1: really ramp up, So it'll be a while till we
Speaker 1: see any kind of UH impact. There won't be a
Speaker 1: lot of sales yet or roll off yet, no sales
Speaker 1: roll off. As you mentioned, this is only the second
Speaker 1: time that we've seen a balance sheet unwind, so we
Speaker 1: have I guess a little bit of precedent here after
Speaker 1: the two thousand date crisis. What kind of insight is
Speaker 1: the FED looking at given how they unwanted the balance
Speaker 1: sheet the first time around. The biggest problem they ran
Speaker 1: into is when reserves got low enough, there was a
Speaker 1: liquidity squeeze and that caused market eruptions at the short
Speaker 1: end of the FED had to come in and say
Speaker 1: we're gonna stop raising interest rates, and that sort of
Speaker 1: turned things around. Now they've put in place the reverse
Speaker 1: repo facility where if you're a dealer and you have securities,
Speaker 1: can go to fact and get cash if you need it.
Speaker 1: If there isn't a market for your security. So there
Speaker 1: at this point confident that they've got that problem solved.
Speaker 1: Um beyond that, it becomes sort of a question of
Speaker 1: how fast do interest rates react at what tenors, and
Speaker 1: then question of just the overall balance sheet and how
Speaker 1: small or large does it need to be, which they
Speaker 1: say they can't know until they get there. Man, we're
Speaker 1: gonna have a few months to take a look at
Speaker 1: what the impact is going to be as this balance
Speaker 1: sheet on wine gets underway starting today. Bloomberg Economics correspondent
Speaker 1: Michael McKee, thanks for being with us this morning. Looking
Speaker 1: ahead to the market open, UH futures are sort of
Speaker 1: waiting c mode right now, with SMP futures down to
Speaker 1: point down, futures up seventy nine, NASTAC futures are lower
Speaker 1: by almost twenty four points now. The ten your treasury
Speaker 1: is down three thirty seconds. The yield two point eight
Speaker 1: five percent, yield on the two year right now two
Speaker 1: point five seven percent. NIMEX crude is higher by one percent.
Speaker 1: A gate of a dollar thirty five for a hundred
Speaker 1: sixteen dollars three cents for a barrel of West Texas Intermediate,
Speaker 1: you're listening to Bloomberg Daybreak Bloomberg eleven three oh weather
Speaker 1: more clouds and sun chance for afternoon showers and storms
Speaker 1: today with highs in the low seventies. More showers possible
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Speaker 1: right now sixty degrees. Markets headlines and breaking news twenty
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Speaker 1: Bloomberg Business flash and I'm carrying Moscow. Future is little
Speaker 1: change this morning. We get to the first word breaking
Speaker 1: news dance for today's morning call, and here's Bill Maloney
Speaker 1: build a morning. Hey, good morning, Karen. US futures trading
Speaker 1: mixed right now at death futures hired by ninety five points,
Speaker 1: SAPs are upper point, nastic futures althower by twenty. The
Speaker 1: US ten year at two point eight six percent, in
Speaker 1: gold is down seven oil is climbing, and Bitcoin trading
Speaker 1: lower by point six percent. Shanghai was a little changed overnight,
Speaker 1: while your PM markets are quiet this morning. And back
Speaker 1: in the US on the economic front at ninety five
Speaker 1: I s M Manufacturing p M I at ten o'clock
Speaker 1: construction spending, and at two o'clock the Fed releases it's
Speaker 1: beige book after develops Night's salesforce raised its guidance, shares
Speaker 1: her up nine percent in the pre market and other
Speaker 1: news and Marsbergen is buying back a billion dollars in
Speaker 1: stock and for pre holding ZPs beat estimates, grabbing things up.
Speaker 1: Still there was cut to underweight over at JP. Morgan
Speaker 1: live from the first breaking newsscomb the Maloney Karen all right, Bill,
Speaker 1: thank you and to hear live breaking news of your
Speaker 1: Bloomberg time squawk on your termin I'll ascue you a
Speaker 1: w u K and that's a Bloomberg business flash. Now
Speaker 1: here's Michael Barr with more on what's going on around
Speaker 1: the world. Michael Karen, thank you very much. President Biden
Speaker 1: is promising to meet with members of Congress on gun reform. Yesterday,
Speaker 1: the President meeting with New Zealand Prime Minister just Send
Speaker 1: to Ardur and praised her in passing a ban on
Speaker 1: military style semi automatic weapons after a white supremacist killed
Speaker 1: fifty one Muslim worshippers in the Biden administration is sending
Speaker 1: an additional seven hundred million dollars worth of weapons and
Speaker 1: defense systems to support the Ukrainian military. In baseball, the
Speaker 1: Yankees one, the mat shutout the Nationals, the Red Sox
Speaker 1: Orioles and A's lost the Giants one in the NHL
Speaker 1: Eastern Conference Finals tonight, Game one as the Rangers host
Speaker 1: the Lightning Global News twenty four hours a day on
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Speaker 1: Investors in bitcoin and other digital assets have been pummeled
Speaker 1: recently by the longest losing streaks since two thousand eleven.
Speaker 1: If that's you, you might be glad to hear that
Speaker 1: there are ways to ease some of the sting of
Speaker 1: those losses. Act promptly and you can cut your tax
Speaker 1: bill for next April and beyond. That's because the i
Speaker 1: r S allows taxpayers to use losses in stocks and
Speaker 1: other investments, including crypto, to offset gains if your losses
Speaker 1: exceed your total gains for the year, you can deduct
Speaker 1: up to three thousand dollars against your taxable income. Losses
Speaker 1: beyond three thousand dollars can be carried forward every year
Speaker 1: until death to offset gains in future years. What's more,
Speaker 1: crypto investors get a special deal. Unlike stock investors. They
Speaker 1: don't have to wait thirty days before selling and rebuying
Speaker 1: the same coin again. I'm alexis le Honest. For more opinion,
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Speaker 1: P I n go. It's like fifty on Wall Street.
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Speaker 1: U slash Veterans. Now. Here's what's making news and science, technology, engineering,
Speaker 1: and math. China is planning for years of COVID zero
Speaker 1: with testing sites in almost every corner. Tens of thousands
Speaker 1: of lab testing booths are being set up across the
Speaker 1: country's the largest and most economically vital cities. The goal
Speaker 1: is for residents to always be just a fifteen minute
Speaker 1: walk away from a swabbing point. And the UK consumers
Speaker 1: are being urged to brace for inflation getting worse before
Speaker 1: it gets better. The British Retail Consortium said that fresh
Speaker 1: food prices are now rising at their fastest pace in
Speaker 1: a decade. It says fresh food roast four and a
Speaker 1: half percent in the year that ended in May. And
Speaker 1: the world's richest man appears to have had it with
Speaker 1: this whole working from home business. Tesla CEO Elon Musk
Speaker 1: waited on the debate on Twitter by elaborate rating on
Speaker 1: an email he apparently sent to the electric carmaker's executive staff.
Speaker 1: I know the subject line remote work is no longer acceptable.
Speaker 1: Musk wrote that anyone who wishes to do remote work
Speaker 1: must be in the office for a minimum of forty
Speaker 1: hours per week or to part Tesla and as the
Speaker 1: Bloomberg and J. A. T. Stem report, Nathan, all right, Karen,
Speaker 1: thank you, we are live from the Bloomberg interactive broker
Speaker 1: studios where it's six one on Wall Street time now
Speaker 1: to check what's going on in d C. Some of
Speaker 1: the top stories in our nation's capital include President Biden
Speaker 1: promising advanced weapons systems to Ukraine, Treasury Secretary Yelling saying
Speaker 1: she got it wrong on inflation last year, and the
Speaker 1: Biden administration devoting more than two billion dollars to bolster
Speaker 1: food supply chains. It's good more on all these stories now,
Speaker 1: Bloomberg Government reporter Emily Wilkins joins us now, Emily, good morning.
Speaker 1: So we got this op ed from the President last
Speaker 1: night promising even more military support to Ukraine. Give us
Speaker 1: more details here. Yeah, So what is really unique about this, Nathan,
Speaker 1: is that Biden is talking about their sending these weapons
Speaker 1: systems to Ukraine that are going to be able to
Speaker 1: shoot a longer missiles further away targets. Now, initially there
Speaker 1: was some concerned about this because the thought was, well,
Speaker 1: what if Ukraine begins to target things actually within Russia
Speaker 1: and why is up expanding this war? But we are
Speaker 1: really at a point right now where if you look
Speaker 1: at the ground games, you look at what's happening in
Speaker 1: the don Bus region in the East. Um, this war
Speaker 1: has really shifted in nature, and Biden has said that
Speaker 1: he is going to try, uh, you will be sending
Speaker 1: rather weapons that are going to be able to hit
Speaker 1: targets at further distances. UM. The White House plans to
Speaker 1: announce a seven hundred million security assistance package to Ukrane today.
Speaker 1: That of course is coming on top of billions more
Speaker 1: that the US has sent to Ukraine. UM. And at
Speaker 1: this point there still seems to be UM, still pretty
Speaker 1: high bipartisan appetite. It wasn't as high as it was
Speaker 1: a couple of months ago uh as far as sending
Speaker 1: funding to Ukraine, but there's still a very concentrated effort
Speaker 1: in d c UH to make sure that that the
Speaker 1: Ukraine gets whatever since assistance, its assistance it needs from
Speaker 1: the US. Yeah, as we await this announcement, Emily, what
Speaker 1: does this say about how the Biden administration sees this
Speaker 1: war progress? And given that they are promising these sort
Speaker 1: of mid range missile systems, well, we know that this
Speaker 1: war it is going to be lasting awhile, and everyone
Speaker 1: seems to kind of be hunkering down and suddling. And
Speaker 1: for that, I mean, I think you you saw that
Speaker 1: when you saw Congress pass a funding package that had
Speaker 1: such a high price tag on it. You know, even
Speaker 1: though Biden has been giving out this funding and Ingerman's
Speaker 1: kind of up, Congress is allocated, you know, tens of
Speaker 1: billions expecting that this war is going to go on
Speaker 1: for a while and that the White House is going
Speaker 1: to need that funding. Um. Bidon didn't make it clear,
Speaker 1: and his up ed. You know, the the US is
Speaker 1: not seeking a war between NATO and Russia. Um. You know,
Speaker 1: as much as he disagrees with Putin, they really do
Speaker 1: not want to escalate it. They do want to find
Speaker 1: a diplomatic solution. But they also want to make sure
Speaker 1: that Ukraine has what it needs to really fight back
Speaker 1: against the Russian invasion. And you have to think, Emily
Speaker 1: that the Biden administration is hunkering down for an even
Speaker 1: longer war against inflation, given the comments we heard yesterday
Speaker 1: from Secretary Yelling saying she was basically wrong about inflation
Speaker 1: being sort of temporary. Yes uh, Yelling just came out
Speaker 1: admitted on CNN yesterday um that she had been wrong
Speaker 1: when she predicted last year that higher inflation would be
Speaker 1: a long term problems. She said that you know, there
Speaker 1: were so several unanticipated things that happened that she couldn't
Speaker 1: have predicted and that she didn't fully sort of take
Speaker 1: into account all of the various circumstances um. And at
Speaker 1: this point, what she said that where we're at now
Speaker 1: is in this period of transition um that you know,
Speaker 1: we're not expecting to see these huge job gains monthly
Speaker 1: job gains going forward, but they're trying to look at
Speaker 1: a stable growth and really bring inflation down. She said
Speaker 1: that she felt the FED was doing what it needed
Speaker 1: to do at this point, uh to address high inflation UM.
Speaker 1: But at this point, I mean, inflation is still expected
Speaker 1: to be high throughout at least this summer um, if
Speaker 1: not to the end of the year. Yeah, it's interesting
Speaker 1: as well to hear those president comments from President Biden
Speaker 1: yesterday when he met with the FED chair J. Powell,
Speaker 1: sort of saying that he wants to give the FED
Speaker 1: the space it needs to tackle inflation. You have to
Speaker 1: wonder though, whether there's a political impact for the President
Speaker 1: when he sort of shifts responsibility for tackling sky high
Speaker 1: prices over to the central bank as opposed to the
Speaker 1: fiscal side. Well, I mean, na said I don't think
Speaker 1: most Americans look at the grocery store, look at high
Speaker 1: prices and say, oh, the FED. Most of them they blamed,
Speaker 1: They blame Biden, they blame the president, they blame the
Speaker 1: person who is in charge. UM. And and that's just
Speaker 1: going to be the nature of the political impact here.
Speaker 1: I mean what I think what the context to look
Speaker 1: at what Biden is saying UM is simply that he's
Speaker 1: trying uphold precedents of the independence of the FED. That
Speaker 1: was something that we saw his predecessor, Donald Trump kind
Speaker 1: of challenged while he was in office as far as
Speaker 1: trying to give the FED direction and instruction. Biden's trying
Speaker 1: to sort of return to the precedent that was set
Speaker 1: before that kind of leaving the FED, having them have
Speaker 1: their independence, and trying to be hands off in that department.
Speaker 1: Think about thirty seconds left here, Emily, But what's the
Speaker 1: sit down? So what we're expecting from the Biden administration
Speaker 1: on food supply chains? Yeah, so the Biden administration is
Speaker 1: going to be announcing two point one billion dollars just
Speaker 1: to help food supply change. This is gonna expanding small
Speaker 1: and midsized processing plans, helping farmers obtain new infrastructure like
Speaker 1: cooling facilities and helping farmership to organic products. Of course, Nathan,
Speaker 1: this all comes after the shortage and baby formula. Biden
Speaker 1: is going to be meeting with a number of infant
Speaker 1: formula makers to day in the White House. Not on
Speaker 1: the guest list is Abbot Industries and they're the ones
Speaker 1: whose factory in Michigan was shuttered over safety concerns earlier
Speaker 1: this year that led to the current shortage. So between
Speaker 1: omission there, Yeah, certainly Emily Wilkins of Bloomberg Government will
Speaker 1: be watching for developments as that meeting gets underway with
Speaker 1: the baby formula manufacturers. You pready read much more on
Speaker 1: all these stories at Bloomberg dot com or on the
Speaker 1: Bloomberg terminal, and listen to Bloomberg Radio in Washington at
Speaker 1: Bloomberg one and one oh five point seven FM HD two.
Speaker 1: Get ready to open the trading month. Futures little changed
Speaker 1: at the moment right now. S and P futures are
Speaker 1: little changed. To the downside. DAL futures up eighty one points,
Speaker 1: NASTAC futures are lower by nineteen points. The tenure treasuries
Speaker 1: down four thirty seconds yield two point eight five percent.
Speaker 1: Bloomberg Surveillance up next with Tom Keene, Jonathan Farrell, and
Speaker 1: Lisa Bramowitz for Karen Moscow. I'm Nathan Hagar, and this
Speaker 1: is Bloomberg