WEBVTT - Bloomberg Daybreak: May 20, 2022 - Hour 1 (Radio) 0:00:01.720 --> 0:00:05.040 For the Bloomberg Interactive Burger Studios is Bloomberg day Break 0:00:05.080 --> 0:00:08.880 for Friday, May two coming up this hour. Stock step 0:00:09.000 --> 0:00:11.960 for another weekly decline after losing a trillion dollars in 0:00:12.080 --> 0:00:15.760 value since Monday. Geopolitics in focus as Joe Biden makes 0:00:15.800 --> 0:00:18.560 his first presidential trip to Asia. Who sent It? Passes 0:00:18.560 --> 0:00:21.400 a forty billion dollar eight package for Ukraine, and the 0:00:21.400 --> 0:00:24.919 world's second biggest baby formula maker reportedly increases shipments to 0:00:24.960 --> 0:00:28.080 the US. Possible monkey box case has been identified in 0:00:28.120 --> 0:00:30.640 New York City. Plus the January six panel wants the 0:00:30.760 --> 0:00:34.000 question the GOP lawmaker about a capitol tour. I'm Michael Barer. 0:00:34.080 --> 0:00:36.840 More Ahead, I'm John Stash Sharon Sports. The Yankees lost 0:00:36.840 --> 0:00:39.199 the Mets one but learned of a serious injury, and 0:00:39.280 --> 0:00:42.199 Rory McIlroy has the League of the PGA Champion chap. 0:00:44.520 --> 0:00:48.080 That's all training ahead on Bloomberg day Break on Bloomberg 0:00:48.120 --> 0:00:52.000 eleven three on New York, Bloomberg one, Washington, d C, 0:00:52.479 --> 0:00:56.000 Bloomberg one oh six one, Boston, Bloomberg nine sixties and 0:00:56.120 --> 0:01:00.000 Francisco Sirius Exam one nine Team and around the World 0:01:00.000 --> 0:01:03.080 Old on Bloomberg Radio dot Com and via the Bloomberg 0:01:03.120 --> 0:01:11.479 Business app. Good morning, I'm John Tucker and I'm Karen 0:01:11.560 --> 0:01:14.960 Moscow and US Dock index futures are higher this morning. 0:01:14.959 --> 0:01:16.640 We're coming up to five o one on Wall Street, 0:01:16.640 --> 0:01:18.720 and we check the markets every fifteen minutes throughout the 0:01:18.720 --> 0:01:22.320 trading day. On Bloomberg, SMP futures up forty two points down, 0:01:22.319 --> 0:01:25.120 futures up two hundred seventy and as the futures up 0:01:25.200 --> 0:01:28.840 one eighty one. Ten year Treasury down seven thirty seconds. 0:01:28.880 --> 0:01:31.039 The yield is at two point eight six percent. They 0:01:31.120 --> 0:01:33.280 yield on the two year two point six two percent. 0:01:33.760 --> 0:01:36.319 Nine X screwede oil down half percent or fifty six 0:01:36.360 --> 0:01:38.920 cents at a hundred eleven dollars sixty five cents in barrel. 0:01:39.160 --> 0:01:41.200 Comex gold is up tenth of a percent, or two 0:01:41.200 --> 0:01:45.399 dollars fifty cents at eighteen fifty thirty, announced John Well Karen. 0:01:45.480 --> 0:01:48.040 US futures aren't higher as we close out what appears 0:01:48.040 --> 0:01:50.320 to be another losing week for stocks. In fact, the 0:01:50.400 --> 0:01:53.200 SMP five hundred is on track for a seventh straight 0:01:53.280 --> 0:01:56.400 weekly decline that would be its longest decline in twenty 0:01:56.440 --> 0:01:59.800 one years, and traders are raising for another volatile day. 0:02:00.240 --> 0:02:03.240 The monthly expiration of options tied to equities and exchange 0:02:03.240 --> 0:02:06.560 traded funds takes place today. Kathyet Whistle, as a managing 0:02:06.600 --> 0:02:11.359 director at Morgan Stanley, being for volatile, they are uncertain. 0:02:12.560 --> 0:02:17.120 It's giving everybody a little bit of uneasiness and a 0:02:17.200 --> 0:02:19.600 lot of people asking what to do in the market. 0:02:19.720 --> 0:02:23.200 Morgan Stanley's Cantley and Whistle making the comments on Bloomberg 0:02:23.240 --> 0:02:26.000 Business Week, heard weekdays from two to five pm Eastern 0:02:26.040 --> 0:02:28.840 on Bloomberg Radio. SMP five hundred has lost more than 0:02:28.960 --> 0:02:33.240 one trillion dollars in market value over the past four sessions. 0:02:33.800 --> 0:02:36.840 Well John One stock that is not helping market sentiment 0:02:36.919 --> 0:02:39.480 this morning is Applying Materials. It's down more than one 0:02:39.520 --> 0:02:42.200 percent in early trading after the ship maker delivered a 0:02:42.200 --> 0:02:45.240 week forecast, and we get the story from Bloomberg's Charley Pellett. 0:02:45.680 --> 0:02:48.520 Applied is the biggest maker of machinery that's used to 0:02:48.560 --> 0:02:52.520 manufacture semiconductors. Had said sales will be about six point 0:02:52.520 --> 0:02:55.919 to five billion dollars in the fiscal third quarter, which 0:02:56.000 --> 0:03:00.000 runs through July. Analysts have estimated six point six nine billion, 0:03:00.000 --> 0:03:03.040 and on average, according to data compole by Bloomberg, the 0:03:03.120 --> 0:03:07.000 chip industry is ordering machinery from Applied and its peers 0:03:07.040 --> 0:03:10.680 at a frantic rate, trying to build enough production capacity 0:03:10.760 --> 0:03:14.600 to end industry wide shortages that are hurting growth across 0:03:14.639 --> 0:03:18.440 the economy. But those same shortages are leaving Applied without 0:03:18.520 --> 0:03:22.240 the components it needs to make its equipment in New York, 0:03:22.320 --> 0:03:26.280 Charlie Bloomberg Daybreak, Thanks Charlie. The semiconductor industry will be 0:03:26.280 --> 0:03:29.520 in focus when Joe Biden makes his first presidential trip 0:03:29.560 --> 0:03:33.079 to Asia. The President's time at South Korea in Japan 0:03:33.160 --> 0:03:36.920 will focus on security and supply chains. Bloomberg's Amy bores 0:03:37.000 --> 0:03:41.200 his details from our newsroom in Washington. The president is 0:03:41.240 --> 0:03:45.160 set to visit a Samsung semiconductor complex as he seeks 0:03:45.200 --> 0:03:48.400 to show up supply chains that reduce reliance on China, 0:03:48.760 --> 0:03:52.440 an indication of the emphasis he's placing on strengthening semiconductor 0:03:52.440 --> 0:03:55.720 reliances among the world's largest ship makers to ease those 0:03:55.720 --> 0:03:58.760 shortages that have dragged on the global economy. He'll also 0:03:58.800 --> 0:04:01.760 meet with regional leaders to garner more support for Ukraine, 0:04:01.760 --> 0:04:05.240 defend off Russia's invasion, and counter security threats from China 0:04:05.320 --> 0:04:09.080 and North Korea. The visit runs through Tuesday, in Washington. 0:04:09.160 --> 0:04:11.560 I maybe more as Bloomberg daybreak. He right, Amy, thank 0:04:11.600 --> 0:04:14.400 you Meantime on Capitol Hill, the US Senator has passed 0:04:14.400 --> 0:04:17.520 an aid package for Ukraine worth more than forty billion 0:04:17.520 --> 0:04:20.640 dollars in how aways President Biden signature. At the same time, 0:04:20.640 --> 0:04:23.680 the Administration said it is providing Ukraine with another one 0:04:23.800 --> 0:04:28.080 hundred million dollars in military assistance. The baby formula shortage 0:04:28.120 --> 0:04:31.279 also in focus this morning. According to Reuters, the world's 0:04:31.320 --> 0:04:35.039 second biggest baby formula maker increasing shipments from Europe to 0:04:35.279 --> 0:04:38.920 the US. The move by theme comes after Avit Laboratories 0:04:38.960 --> 0:04:42.359 had to recall some products. Virginia Senator Tim Kon is 0:04:42.400 --> 0:04:45.960 a member of the Senate Foreign Relations and Armed Services Committees. 0:04:46.320 --> 0:04:49.240 Were now going to use the Defense Production Act to 0:04:49.279 --> 0:04:53.320 increase production. We're allowing importation of formula that's safe from 0:04:53.360 --> 0:04:56.840 other countries. The company that closed its planned down has 0:04:56.839 --> 0:04:59.560 reached an agreement to do some fixes. They should be 0:04:59.600 --> 0:05:02.600 reo within two weeks and starting to produce again, so 0:05:02.680 --> 0:05:05.479 we will solve this problem. I think you'll see that 0:05:05.600 --> 0:05:08.520 the bipartisan but we'll have to have that vote next 0:05:08.520 --> 0:05:11.320 week and see Virginia Senator Tim Kaine spoke with our 0:05:11.360 --> 0:05:14.640 Washington corresponded Joe Matthew and Bloomberg sound on Catch That 0:05:14.720 --> 0:05:18.640 program weekdays at five pm Eastern on Bloomberg Radio. And 0:05:18.720 --> 0:05:21.279 John were also focusing on the pandemic with news on 0:05:21.440 --> 0:05:25.080 vaccine eligibility. Younger children across the US. Can I receive 0:05:25.160 --> 0:05:28.560 a COVID booster shot developed by Fiser. We get the 0:05:28.640 --> 0:05:32.320 details live with Bloomberg's Rnita Young. Good Morning, Ranida, Good morning, Karen. 0:05:32.440 --> 0:05:36.800 CDC director Rochelle Willinsky recommends the booster for children ages 0:05:36.839 --> 0:05:40.359 five to seven five to eleven years old. Making the 0:05:40.360 --> 0:05:43.240 shot available to school age kids will provide much needed 0:05:43.279 --> 0:05:47.800 protection against the contagious omicron subvariants that are spreading across 0:05:47.839 --> 0:05:50.880 the country. We Lynsky says kids in this age group 0:05:50.920 --> 0:05:54.320 should receive a booster dose at least five months after 0:05:54.360 --> 0:05:57.840 their primary series. Live in New York, I'm Ranita Young, 0:05:57.880 --> 0:06:00.880 Bloomberg Day Break. Renita. Thanks. There's a so assigned today 0:06:00.880 --> 0:06:05.200 that the travel industry is bouncing back. Leisure travel now 0:06:05.240 --> 0:06:08.320 back to pre COVID levels. Let's get the story from 0:06:08.360 --> 0:06:11.680 Bloomberg's Doug Prisoner. The trend could help the travel industry 0:06:11.720 --> 0:06:14.640 this summer. The MasterCard Economics Institute says for the first 0:06:14.640 --> 0:06:18.280 time since global movement was halted by the pandemic, leisure 0:06:18.320 --> 0:06:22.320 travel has returned to levels and higher airfares don't appear 0:06:22.320 --> 0:06:25.680 to be a deterrent the average global airfares of eighteen 0:06:25.720 --> 0:06:28.680 percent since the start of the year. MasterCard says if 0:06:28.720 --> 0:06:32.040 flight bookings continue at their current pace, and estimated one 0:06:32.080 --> 0:06:34.920 and a half billion more passengers globally will fly this 0:06:35.000 --> 0:06:38.200 year compared to last, with Europe seeing the biggest increase. 0:06:38.480 --> 0:06:41.159 In New York, I'm Doug Prisner, Bloomberg Daybreak. All right, Doyke, 0:06:41.200 --> 0:06:43.680 thank you what we are seeing. The carnage and retail 0:06:43.760 --> 0:06:46.760 stocks continue this morning now. Shares of Ross stores down 0:06:46.760 --> 0:06:49.880 more than twenty seven percent in early trading, the discount 0:06:49.880 --> 0:06:53.400 retailer cutting its outlook for profit and sales. Ross's outlook 0:06:53.480 --> 0:06:57.159 downgrade follows similar moves this week by Cole's, Target and 0:06:57.240 --> 0:07:00.799 Walmart and ahead of the cash but on Wall Street 0:07:00.839 --> 0:07:03.400 futures right now in the green and down futures of 0:07:03.480 --> 0:07:06.240 three hundred three points, that's the rise of one percent. 0:07:06.440 --> 0:07:09.640 Smp E many futures there are forty seven points, that's 0:07:09.720 --> 0:07:13.560 up one point, and the nastanc futures one nine six 0:07:13.640 --> 0:07:17.800 points higher, up one point seven. You're listening to Bloomberg 0:07:17.840 --> 0:07:26.120 Daybreak five O seven Wall Street. That's time to bring 0:07:26.160 --> 0:07:28.480 in Michael Barr with more on what else he is 0:07:28.520 --> 0:07:31.400 going on to New York End around the world, John, 0:07:31.440 --> 0:07:33.960 Thank you very much. Sary. Health officials say a possible 0:07:34.040 --> 0:07:37.559 case of monkey pox is being investigated in New York City. 0:07:37.880 --> 0:07:40.840 You would add to the case already reported in Massachusetts. 0:07:41.120 --> 0:07:43.960 The city's health department announced on Twitter that the patient 0:07:44.040 --> 0:07:47.680 is being cared for at Bellevue Hospital in Manhattan. Officials 0:07:47.720 --> 0:07:50.600 say preliminary tests for the virus are being conducted and 0:07:50.680 --> 0:07:54.560 if positive, will be sent to the CDC for confirmation. 0:07:55.000 --> 0:07:57.800 Relatives of the ten black people gunned down in a 0:07:57.880 --> 0:08:01.280 Buffalo supermarket are pleading with a nation to confront and 0:08:01.400 --> 0:08:05.000 stop racist violence. Agony poured out in the tears of 0:08:05.000 --> 0:08:07.960 a twelve year old child, Jake Patterson, who lost his father. 0:08:08.360 --> 0:08:11.280 The child covered his face with his hands as his 0:08:11.320 --> 0:08:16.720 mother spoke, his heart is broken, he has sleeps, he 0:08:16.880 --> 0:08:20.000 has eaten. As a mother, what am I supposed to do? 0:08:20.360 --> 0:08:23.480 The Veronica White is the aunt of another victim, Andre McNeil. 0:08:24.320 --> 0:08:27.360 This is so settler that cannot believe somebody would give 0:08:27.440 --> 0:08:31.320 some child a gun and let him think that it's okay. 0:08:31.320 --> 0:08:34.320 Come with somebody, Paul, how did this shoot it up? 0:08:34.960 --> 0:08:38.440 Earlier yesterday, the accused gunman, who is white, eighteen year 0:08:38.440 --> 0:08:42.439 old Peyton Gendren, silently faced a murder indictment, and court 0:08:42.480 --> 0:08:46.319 authorities are investigating the possibility of hate crime and terrorism 0:08:46.400 --> 0:08:50.160 charges against him. The White House calls Oklahoma's new abortion 0:08:50.240 --> 0:08:53.800 bill the most extreme effort to undo the fundamental rights 0:08:53.880 --> 0:08:57.520 laid out in Roe v. Wade. Oklahoma's legislature. He gave 0:08:57.600 --> 0:09:00.080 final approval to the bill, which would ban almost to 0:09:00.080 --> 0:09:04.320 all abortions from the moment of conception. Vice President Kamala 0:09:04.360 --> 0:09:07.640 Harris hosted a virtual meeting with abortions providers at the 0:09:07.640 --> 0:09:10.800 White House. It's just the latest in a series of 0:09:10.920 --> 0:09:17.240 extreme laws around the country. Oklahoma's governor has vowed to 0:09:17.280 --> 0:09:20.520 sign it into law. The House panel investigating the January 0:09:20.559 --> 0:09:23.480 six riot wants to question the Republican lawmaker who has 0:09:23.559 --> 0:09:26.600 said to have led a group tour of the Capitol 0:09:26.640 --> 0:09:30.800 a day before the attack. Georgia GOP representative Buried louder 0:09:30.840 --> 0:09:34.200 Milk is being asked to answer questions before the Congressional Committee. 0:09:34.559 --> 0:09:38.040 Panel Chairman Benny Thompson said the committee's review of evidence 0:09:38.080 --> 0:09:41.920 contradicts denials from some Republicans that there were no tours 0:09:42.000 --> 0:09:45.360 or large groups brought to the Capitol. Global News twenty 0:09:45.360 --> 0:09:48.240 four hours a day on air and on Bloomberg Quittake, 0:09:48.520 --> 0:09:51.440 powered by more than twenty seven hundred journalist and analysts 0:09:51.520 --> 0:09:55.800 more than a hundred twenty countries. Michael barn this is Bloomberg, John, Michael, 0:09:55.840 --> 0:10:01.640 thank you when I got fund six ten on Wall 0:10:01.640 --> 0:10:04.040 Street five ten of Wall Street tim out for the 0:10:04.040 --> 0:10:07.440 Bloomberg Sports Update. Here's john S all right. John Thrilling 0:10:07.520 --> 0:10:08.880 went for the Mets. They've had a lot of those 0:10:08.880 --> 0:10:11.480 already this season. The Cardinals got two on runs from 0:10:11.480 --> 0:10:14.199 Paul Goldschmid led in the ninth inning. The Mets tie 0:10:14.200 --> 0:10:16.640 at St. Louis, went back ahead top of the tenth 0:10:16.880 --> 0:10:19.440 heroics in the bottom he goes spreading a belt, Tie 0:10:19.480 --> 0:10:26.160 said his pitch a field, wait back, love God, that's 0:10:30.400 --> 0:10:36.600 drive flowing out against Gagos. Mets put us up serious victory. 0:10:37.320 --> 0:10:39.960 T S had the call, and that's won seven six 0:10:40.040 --> 0:10:42.800 Alonzo and Alleys all of baseball with thirty six r 0:10:42.840 --> 0:10:45.880 B I s. However, during the game came the news 0:10:45.880 --> 0:10:48.200 on Max jers Or he has an oblique strain. He's 0:10:48.240 --> 0:10:50.560 gonna miss six to eight weeks. Of The Mets were 0:10:50.559 --> 0:10:53.000 hoping to have this great one two punch of Serzer 0:10:53.120 --> 0:10:55.920 and Jacob Degraham both are hurt and so it was 0:10:55.920 --> 0:10:58.720 another starter Tyler McGill. Just as the Mets at their 0:10:58.760 --> 0:11:01.160 walk off when the Yankees for a walk off laws 0:11:01.200 --> 0:11:04.720 in Baltimore, the Orioles Anthony Santander three run over bottom 0:11:04.720 --> 0:11:08.040 the ninth of Lucas Litkey for a nine six Orioles 0:11:08.040 --> 0:11:09.720 win the Yanks and tied the game with two out 0:11:10.000 --> 0:11:12.280 in the top of the ninth NBA Playoffs, Celtics up 0:11:12.320 --> 0:11:14.400 twenty five at half time, and they won Game two 0:11:14.400 --> 0:11:16.640 in Miami by twenty five to tie the series up. 0:11:16.840 --> 0:11:19.720 Samley kept platoff wins for St. Louis and Tampa Bay 0:11:19.800 --> 0:11:22.600 that two time. Defenny Chance go home up to nothing 0:11:22.640 --> 0:11:25.440 on Florida Rangers Hurricanes game too tonight and Roley after 0:11:25.520 --> 0:11:29.160 Kaine took the opener in overtime. Rory McIlroy hasn't won 0:11:29.160 --> 0:11:32.600 a Major since the two thousand fourteen pg A. McElroy 0:11:33.000 --> 0:11:35.920 leads this year's PGA by one shot going into today's 0:11:35.920 --> 0:11:38.600 second round, and tells the live coverag Bloomberg Radio Today 0:11:38.600 --> 0:11:41.120 starting at four p g A tonight show at eleven 0:11:41.360 --> 0:11:44.440 John stash War Bloomberg Sports. John, alright, thanks John, and 0:11:44.640 --> 0:11:47.480 our futures head out the open on Wall Street three 0:11:47.600 --> 0:11:51.640 hundred and three points higher right now, the SMP futures 0:11:51.679 --> 0:11:55.200 of forty six points and the NSF futures up one 0:11:55.280 --> 0:12:00.440 hundred and ninety five points. You're listening the Bloomberg A break. 0:12:07.240 --> 0:12:10.600 Just ahead. On daybreak, President Biden arrives in South Korea 0:12:10.640 --> 0:12:14.520 to begin his first Asia trip. We'll speak with Bloomberg's 0:12:14.559 --> 0:12:17.640 An Roy for a durn. What's on the agenda. This 0:12:17.840 --> 0:12:25.199 is Bloomberg Markets headlines and breaking news twenty four hours 0:12:25.200 --> 0:12:28.200 a day at Bloomberg dot Com, the Bloomberg Business at 0:12:28.280 --> 0:12:37.839 and at Bloomberg Quicktape. This is a Bloomberg Business Flash 0:12:37.840 --> 0:12:40.560 and I'm Karen Moscow. Stocks in Europe and U S 0:12:40.559 --> 0:12:44.160 stock index futures are pushing higher after China's latest measure 0:12:44.200 --> 0:12:47.160 of ulster as economy injected a note of optimism at 0:12:47.160 --> 0:12:49.320 the end of another volatile week for a global markets. 0:12:49.600 --> 0:12:51.920 We checked the markets every fifteen minutes throughout the trading 0:12:52.000 --> 0:12:54.679 day on bloomberg S and p Future is fifty one 0:12:54.720 --> 0:12:57.120 points this morning down Future is up three hundred forty 0:12:57.400 --> 0:13:00.320 and NASDAG futures up two hundred fourteen and X in 0:13:00.360 --> 0:13:03.360 Germany's at one point nine percent. Ten year treasury down 0:13:03.400 --> 0:13:05.839 eight thirties seconds held two point eight six percent that 0:13:05.960 --> 0:13:08.240 yield on the two year two point six three percent. 0:13:08.679 --> 0:13:12.800 Nim X Screwed oil is down half percent, down fifty 0:13:12.840 --> 0:13:15.080 six cents at a hundred eleven dollar, sixty five cents 0:13:15.080 --> 0:13:17.200 of barrel comic scold up a tenth of a percent 0:13:17.240 --> 0:13:19.840 of a dollar sixty at eighteen forty nine forty announce, 0:13:20.160 --> 0:13:22.600 the euro one point oh five eight two against the dollar, 0:13:22.679 --> 0:13:24.640 British pound one point to four eight nine and a 0:13:24.800 --> 0:13:27.640 en one twenty eight point to one, and Bitcoin this 0:13:27.679 --> 0:13:30.120 morning lower down a tenth of a percent at thirty thousand, 0:13:30.200 --> 0:13:34.080 one hundred ninety dollars, and deer In Company and Footlocker 0:13:34.160 --> 0:13:36.760 are among companies schedule to report earnings today. That's a 0:13:36.800 --> 0:13:39.439 Bloomberg business flash. Now here's Michael Barr with more on 0:13:39.520 --> 0:13:42.720 what's going on around the world. Michael, thank you very much. Karen, 0:13:42.800 --> 0:13:45.680 President Joe Biden has landed in South Korea. He will 0:13:45.720 --> 0:13:49.240 meet South Korean President Yun So kiol as they face 0:13:49.280 --> 0:13:53.679 a growing threat from North Korea's nuclear weapons and missile program. 0:13:53.720 --> 0:13:57.440 Both US and South Korean intelligence officials say it's possible 0:13:57.480 --> 0:14:01.439 that North Korea will conduct the Ballista or nuclear tests 0:14:01.480 --> 0:14:05.360 around Biden's visit to South Korea and Japan. The Senate 0:14:05.400 --> 0:14:08.960 has passed a fourty billion dollar package of military, economic 0:14:09.040 --> 0:14:12.480 and food aid for Ukraine and US allies. The vote 0:14:12.520 --> 0:14:16.360 was eighty six eleven. In the NBA playoffs, the Celtics 0:14:16.400 --> 0:14:19.040 have even their series at a game apiece after beating 0:14:19.040 --> 0:14:22.000 the Heat one seven one oh two. In baseball, the 0:14:22.040 --> 0:14:25.400 Yankees lost to the Orioles nine six the Mets one. 0:14:25.480 --> 0:14:28.480 Along with the Red Sox, Global News twenty four hours 0:14:28.480 --> 0:14:31.440 a day on air and on Bloomberg Quickdake, powered by 0:14:31.440 --> 0:14:34.480 more than twenties seven hundred journalists and analysts more than 0:14:34.520 --> 0:14:38.440 a hundred twenty countries. Michael bar this is Bloomberg Dohn. Michael, 0:14:38.480 --> 0:14:41.320 thank you. It is five nineteen at Wall Street. We 0:14:41.360 --> 0:14:44.360 are live from the Bloomberg into Rantobroker Studios. This is 0:14:44.400 --> 0:14:47.760 Bloomberg Daybreak. Was Michael just mentioned Joe Biden and Barking 0:14:47.880 --> 0:14:51.640 on his first presidential trip to South Korea and Japan. 0:14:52.240 --> 0:14:55.040 For more, We're joined by Bloomberg Radio and TV Washington 0:14:55.160 --> 0:14:58.120 correspondent and Marie were turned Emory. Good to have you, 0:14:58.200 --> 0:15:01.760 Happy Friday. So what's on the enda Happy Friday. Well, 0:15:01.760 --> 0:15:04.040 he just touched down in Seoul and the President is 0:15:04.080 --> 0:15:07.680 going to be visiting a Samsung facility. It's really a 0:15:07.720 --> 0:15:11.400 massive complex. Also likely mirrors with the United States and 0:15:11.440 --> 0:15:13.880 Samsung wants to do in this plant they plan on 0:15:13.920 --> 0:15:18.800 building in Texas. Uh. This Samsung trip really underscores the 0:15:18.880 --> 0:15:22.680 emphasis Biden has placed in America about making sure the 0:15:22.760 --> 0:15:25.800 United skates says could fortify their supply chains when it 0:15:25.800 --> 0:15:29.120 comes to these very important microchips. And I imagine at 0:15:29.200 --> 0:15:31.240 some point you're going to hear him point the figure 0:15:31.280 --> 0:15:33.560 at Congress, which for months has been trying to get 0:15:33.600 --> 0:15:38.240 over the finish line a very broad China competition bill 0:15:38.280 --> 0:15:42.200 that has north of fifty billion dollars to semiconductor research. 0:15:42.760 --> 0:15:45.440 What else is it in this China competition bill and 0:15:46.200 --> 0:15:49.240 how that all fits in the chances of passage at 0:15:49.280 --> 0:15:51.440 this point, is this trip going to make a difference 0:15:51.680 --> 0:15:54.160 in getting that passed. I think this trip just gives 0:15:54.160 --> 0:15:57.760 the president a moment to use foreign policy to pivot 0:15:57.840 --> 0:16:02.040 back to why it matters for everyday Americans. So you'll 0:16:02.080 --> 0:16:04.680 see a lot of him trying to weave in the 0:16:04.720 --> 0:16:07.680 farm policy with his domestic agenda. When it comes to 0:16:08.080 --> 0:16:11.560 how this timeline for this bill is, you do have 0:16:11.800 --> 0:16:14.680 in conference, which means you have representatives from the House 0:16:15.120 --> 0:16:17.640 and those from the Senate needing to try to work 0:16:17.640 --> 0:16:20.880 out the differences because they both passed their own versions 0:16:20.920 --> 0:16:23.680 of this bill. Um, but that does take weeks, if 0:16:23.720 --> 0:16:26.400 not mons. You also have the House going on recess. 0:16:26.440 --> 0:16:29.640 So I would say prepare for something around the end 0:16:29.680 --> 0:16:32.240 of the summer that we could see this finally get 0:16:32.240 --> 0:16:34.640 across the finish line. But the President was very direct 0:16:34.720 --> 0:16:37.600 with Congress. He said, quote past the damn bill, so 0:16:37.760 --> 0:16:40.880 his patients is running out. There was also the Transpacific 0:16:40.960 --> 0:16:46.120 Partnership Regional Trade Agreement, and uh what we withdrew from 0:16:46.120 --> 0:16:49.600 that under the previous administration? Where where does that stand? 0:16:49.680 --> 0:16:51.920 Is that a focus? Yeah? So that will be a 0:16:51.960 --> 0:16:55.400 focus when the President moves on to Japan. And now 0:16:55.440 --> 0:16:57.640 the t p P. You're going to have something like 0:16:58.080 --> 0:17:02.120 TPP version, a new version of it, but just doesn't 0:17:02.120 --> 0:17:04.240 have as much heft. It's a bit hazy and exactly 0:17:04.240 --> 0:17:07.840 what it means, but basically a Biden plans to kick 0:17:07.880 --> 0:17:12.040 off this Indo Pacific Economic Framework, and this is part 0:17:12.080 --> 0:17:16.440 of the administration's ongoing efforts to counter China's cloud um 0:17:16.560 --> 0:17:19.320 and it's somewhat takes the place of that TPP but 0:17:19.680 --> 0:17:23.120 the administration has stressed that it won't include lower tariffs 0:17:23.200 --> 0:17:26.600 or better access to US markets. The Financial Times also 0:17:26.680 --> 0:17:29.320 reported that in you know, an eleventh hour moment, they 0:17:29.359 --> 0:17:32.360 actually water down some of the language. So it's still 0:17:32.480 --> 0:17:38.120 very confused, confusing on what exactly this economic framework can deliver. 0:17:38.480 --> 0:17:41.159 But I think the Biden administration is just trying to 0:17:41.160 --> 0:17:45.040 find a place holder for these regional allies instead of, uh, 0:17:45.080 --> 0:17:48.000 you know, the t p P, which the Trump administration 0:17:48.040 --> 0:17:50.040 pulled the U s out of. So it's really just 0:17:50.080 --> 0:17:52.760 a starting point. While he's over there. There is the 0:17:52.840 --> 0:17:56.280 chance that North Korea could do something looney. Uh. There's 0:17:56.400 --> 0:18:00.280 also the tensions with China over Taiwan, how with those 0:18:00.359 --> 0:18:03.520 being addressed, So when it comes to North Korea, and 0:18:03.560 --> 0:18:06.520 it's a good point because they have a habit of 0:18:06.600 --> 0:18:10.439 timing these provocations to political events. And now you have 0:18:10.560 --> 0:18:12.600 the president in South Korea and then he'll be going 0:18:12.640 --> 0:18:16.280 over meeting with Quad leaders in Japan. So you talk 0:18:16.359 --> 0:18:18.880 to US officials and they say they are preparing for 0:18:18.920 --> 0:18:22.639 either a launch of an intercontinental ballistic missile or potentially 0:18:22.680 --> 0:18:25.640 from North Korea to conduct a nuclear test, as it 0:18:25.680 --> 0:18:29.199 coincides with Biden in the region. Um, So this is 0:18:29.240 --> 0:18:34.920 something that I think would also just really highlight the 0:18:35.080 --> 0:18:38.440 US is UH stands in the region because this is 0:18:38.480 --> 0:18:40.720 something they need to work with their allies in the 0:18:40.760 --> 0:18:43.280 region about. And this is you know, making sure they 0:18:43.280 --> 0:18:47.359 could fend off these provocations from North Korea. And then 0:18:47.359 --> 0:18:49.280 when it comes to China, I don't expect them to 0:18:49.320 --> 0:18:52.200 say China much, but you can imagine everything the President 0:18:52.280 --> 0:18:55.520 is doing is about making sure they are fortifying the 0:18:55.600 --> 0:18:58.840 United States versus China when it comes to competition. The 0:18:59.040 --> 0:19:02.640 entire administration they started about this pivot to Asia, and 0:19:02.720 --> 0:19:05.080 it just got confusing, right because a lot of the 0:19:05.200 --> 0:19:08.480 time the administration has been spending over the past months 0:19:08.480 --> 0:19:10.720 has been, of course, dealing with the war in Ukraine. 0:19:10.960 --> 0:19:13.600 How do these trips I get thirty seconds left, how 0:19:13.600 --> 0:19:17.119 do they play at home? What's the domestic consumption. The 0:19:17.160 --> 0:19:19.159 grocery bill, by the way, yesterday was a hundred and 0:19:19.200 --> 0:19:21.920 sixty seven bucks. The fill up with the car this 0:19:21.960 --> 0:19:26.800 morning was sixty. Well, I think you hit the nail 0:19:26.800 --> 0:19:29.320 on the head, right. I think the President, you know, 0:19:29.520 --> 0:19:31.720 when he visits the Samsung factor and if he gives 0:19:31.720 --> 0:19:34.199 any comments about it, it will be about wanting to 0:19:34.240 --> 0:19:38.240 fortify America supply chains, which is why they want that 0:19:38.280 --> 0:19:40.639 bill passed, because they want to make sure that you 0:19:40.640 --> 0:19:43.199 can get products in American make them cheaper. But we 0:19:43.320 --> 0:19:45.720 do know this is not going to impact inflation tomorrow 0:19:45.880 --> 0:19:48.879 or next week or by November. These are long term goals, 0:19:49.200 --> 0:19:51.520 so right now Americans really only care about what you mentioned, 0:19:51.560 --> 0:19:54.560 their kitchen table and the gas pump. Thanks Sam, Marie, 0:19:54.600 --> 0:19:58.120 always a pleasure. Bloomberg Radio and TV watching to correspondent 0:19:58.520 --> 0:20:01.840 and Marie, we're durn and right now down features of 0:20:02.000 --> 0:20:07.200 three hundred and five points. This is Bloomberg. Bloomberg Weather 0:20:07.280 --> 0:20:10.280 for today from Rob Carolin. Dense fog advisory and effect 0:20:10.280 --> 0:20:12.400 for the north of the city that goes through nine 0:20:12.480 --> 0:20:15.840 am and then campus will give way to partial sum 0:20:15.920 --> 0:20:19.720 The height today about seventy five degrees. This is Bloomberg 0:20:22.200 --> 0:20:26.760 broadcasting live from the Bloomberg Interactive Broker Studio in New York. 0:20:26.840 --> 0:20:30.320 Bloomberg ev in Freedom to Washington, d C, Bloomberg ninety 0:20:30.640 --> 0:20:34.159 one to Boston, Bloomberg one six one to San Francisco, 0:20:34.240 --> 0:20:38.359 Bloomberg n sixt to the country, Sirius XM ch and 0:20:38.440 --> 0:20:41.800 around the globe the Bloomberg Business app in Bloomberg Radio 0:20:41.920 --> 0:20:51.200 dot Com. This is Bloomberg day Break. It's five thirty 0:20:51.200 --> 0:20:53.520 on Wall Street. Good morning. I'm John Tucker and I'm 0:20:53.560 --> 0:20:56.439 Karen Moscow. Here just about four hours away from the 0:20:56.440 --> 0:20:58.239 open of US trading. Let's hear you have to date 0:20:58.280 --> 0:20:59.800 on the news you need to know at this hour. 0:21:00.040 --> 0:21:02.639 US stock index futures are higher this morning as we 0:21:02.680 --> 0:21:05.200 close out a trading week that saw the SNP five 0:21:05.240 --> 0:21:08.520 hundred it lose more than one trillion dollars in market value. 0:21:08.800 --> 0:21:12.920 The index is down almost from its January third closing 0:21:13.000 --> 0:21:16.480 high and is on track for a seventh week of losses. 0:21:16.640 --> 0:21:19.679 Ken Griffin is CEO of Citadel. What we're seeing in 0:21:19.680 --> 0:21:23.440 the markets is a rotation from growth stocks with earnings 0:21:23.560 --> 0:21:26.160 very far in the future towards stocks that are are 0:21:26.240 --> 0:21:29.080 much more value stocks earnings here in the present and 0:21:29.119 --> 0:21:31.480 this reflects the fact that real rates for the first 0:21:31.520 --> 0:21:34.439 time in a very long time, are likely to go 0:21:34.600 --> 0:21:38.919 positive and Citadel CEO Ken Griffin made the comments to 0:21:38.920 --> 0:21:42.640 Bloomberg's Francing Laqua at the Bloomberg Intelligence Market Structure three 0:21:42.640 --> 0:21:46.159 point oh conference in New York. Results from Applied Materials 0:21:46.200 --> 0:21:49.040 weighing on sentiment this morning, shares down about one percent 0:21:49.119 --> 0:21:52.880 in early trading. The company delivered a week forecast as 0:21:52.960 --> 0:21:57.000 chip shortages persist. Altering to politics, john President Joe Biden 0:21:57.040 --> 0:21:59.920 heads to South Korea and Japan to reassure allies of 0:22:00.040 --> 0:22:04.359 America's commitment to Asia. Bloomberg Daybreak Asia anchor Brian Curtis 0:22:04.359 --> 0:22:07.840 has the details. The last time a US president visited Soul, 0:22:07.880 --> 0:22:10.920 in twenty nineteen, Donald Trump and Kim Jong Lun agreed 0:22:10.960 --> 0:22:13.840 to restart nuclear talks. This time, the White House has 0:22:13.880 --> 0:22:16.080 not indicated Biden will be heading up to the d 0:22:16.280 --> 0:22:18.760 m Z. In the meantime, the North Korean leader is 0:22:18.800 --> 0:22:22.159 preparing to launch another i CBM and possibly conduct his 0:22:22.200 --> 0:22:25.919 first nuclear test since seventeen. President Biden is aiming to 0:22:25.960 --> 0:22:28.920 firm up the US pivot to Asia and counter China's 0:22:28.960 --> 0:22:32.480 military build up in the region. Brian Curtis, Bloomberg Daybreak. 0:22:32.520 --> 0:22:35.600 Thanks Brian. The pandemic also in focus this morning with 0:22:35.760 --> 0:22:39.840 news on vaccine eligibility. Younger children across the US can 0:22:39.840 --> 0:22:43.320 now receive a COVID booster shot developed by Fiser. Let's 0:22:43.359 --> 0:22:46.639