WEBVTT - Bloomberg Daybreak: May 17, 2022 - Hour 1 (Radio) 0:00:03.400 --> 0:00:06.760 Live from the Bloomberg Interacted Berger Studios. This is Bloomberg 0:00:06.840 --> 0:00:10.639 day Break for Tuesday May seventy two. Coming up this hour, 0:00:10.960 --> 0:00:14.160 stocks rise, ahead of key retail sales data and earnings 0:00:14.160 --> 0:00:17.360 from Walmart and Home depon new developments this morning, and 0:00:17.440 --> 0:00:21.319 Elon Musk's pursuit of Twitter, where Buffett changes banks will 0:00:21.320 --> 0:00:24.040 explain and they send moves to a passage of forty 0:00:24.120 --> 0:00:27.240 billion dollars in aid to Ukraine. President Biden heads the 0:00:27.280 --> 0:00:30.760 Buffalo today following Saturday's deadly mass shooting. Plus New York 0:00:30.840 --> 0:00:34.520 City's health chief urgess people to mask up. I'm Michael 0:00:34.520 --> 0:00:37.839 blarn More. Ahead, I'm John Stashdow and sports. The Yankees 0:00:37.880 --> 0:00:40.239 stay red hot with an easy win in Baltimore. The 0:00:40.280 --> 0:00:45.720 Islanders have hired a new coach. That's all training. Ahead 0:00:45.760 --> 0:00:49.320 on Bloomberg Daybreak on Bloomberg eleven three, on New York, 0:00:49.520 --> 0:00:54.200 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.480 --> 0:00:58.920 Bloomberg nine sixties and Francisco Sirius x M one nineteen 0:00:59.160 --> 0:01:01.920 and around the world. Old on Bloomberg Radio dot Com 0:01:02.000 --> 0:01:09.160 and via the Bloomberg Business App. Good morning, I'm John 0:01:09.160 --> 0:01:12.560 Tucker and I'm Karen Moscow in US Dock Index futures 0:01:12.560 --> 0:01:14.840 are on the rise this morning. We're coming up to 0:01:14.840 --> 0:01:16.399 five out one on Wall Street, and we check the 0:01:16.400 --> 0:01:19.320 markets every fifteen minutes throughout the trading day. On Bloomberg 0:01:19.600 --> 0:01:22.800 right now, SMP futures about fifty seven boys. Douth futures 0:01:22.800 --> 0:01:26.760 have three five NASDACK futures have two hundred forty three 0:01:27.120 --> 0:01:29.839 ten year treasury down nine thirty seconds, held two point 0:01:29.920 --> 0:01:32.080 nine one percent, and they yield on the two year 0:01:32.360 --> 0:01:35.479 two point six zero percent. John and Karen. The rise 0:01:35.520 --> 0:01:38.440 and futures follows a late day sell off on Wall Street. 0:01:38.720 --> 0:01:41.000 The tech of the NAZAC was hard as say, falling 0:01:41.000 --> 0:01:45.000 more than one percent. New York State manufacturing activity unexpectedly 0:01:45.080 --> 0:01:48.920 contracted at May. And that's the concerns of slowing growth 0:01:49.160 --> 0:01:52.440 recession of years are real. According to Voyas in your 0:01:52.480 --> 0:01:56.040 portfolio manager Barbara Reinhard, we think that the world is 0:01:56.080 --> 0:01:59.240 going to go from worrying about inflation to worrying about 0:01:59.240 --> 0:02:02.520 the recession probably in just a few months time. So 0:02:02.640 --> 0:02:05.120 we think that this is the very beginning of the 0:02:05.120 --> 0:02:08.639 worries that we see happening for the for the economy. 0:02:08.760 --> 0:02:11.519 Will the Investment Management's Barbara Reinhardt made the comments on 0:02:11.560 --> 0:02:15.079 Bloomberg Business Week her weekdays from two to five pm 0:02:15.160 --> 0:02:19.239 Eastern on Bloomberg Radio. Meantime, John Cash is king. That's 0:02:19.240 --> 0:02:22.240 according to the latest Bank of America Fund Managers survey, 0:02:22.280 --> 0:02:25.799 which shows cash levels among investors hit the highest level 0:02:25.880 --> 0:02:29.080 since September of two thousand one. Stankflation fears are the 0:02:29.120 --> 0:02:32.799 highest and fourteen years investors see hawkish central banks is 0:02:32.840 --> 0:02:36.000 the biggest risk, followed by a global recession, and speaking 0:02:36.040 --> 0:02:38.040 in central banks, we could get more clues on the 0:02:38.080 --> 0:02:41.320 path of interest rate hikes. Six FED officials speak at 0:02:41.320 --> 0:02:44.720 events today. The highlight comes this afternoon when the Fed 0:02:44.760 --> 0:02:48.239 shair j. Pale's interview for a live Wall Street Journal event. 0:02:48.840 --> 0:02:52.280 Well in Asia, overnight, John stocks were winners. Technology shares 0:02:52.320 --> 0:02:55.800 climbed as investors assessed China's effort to stamp out COVID. 0:02:56.040 --> 0:02:59.000 Look at the recap from Bloomberg's Juliette Sally in Singapore. 0:02:59.040 --> 0:03:01.040 Good morning, Juliette, Good morning Karen. The m s c 0:03:01.160 --> 0:03:03.600 I Asia Pacific Index gain for a third session, as 0:03:03.680 --> 0:03:07.240 longest winning streaks since mid March. China's tech companies jumped 0:03:07.280 --> 0:03:10.160 on optimism. Beijing may ease up on a year long 0:03:10.200 --> 0:03:14.040 clampdown following a meeting between regulators and corporate giants. Adding 0:03:14.080 --> 0:03:17.160 to the positive time, Shanghai reporting three days of zero 0:03:17.200 --> 0:03:20.679 community transmission. This is a milestone that could lead officials 0:03:20.720 --> 0:03:24.239 to start unwinding the punishing lockdown and reopening. Stocks also 0:03:24.360 --> 0:03:26.960 rose in Japan after the nation announced it will allow 0:03:27.000 --> 0:03:29.760 small tourist groups on package tours into the country this 0:03:29.800 --> 0:03:34.760 month on an experimental basis. In Singapore. Juliette Sale Bloomberg Daybreak, 0:03:34.880 --> 0:03:38.360 Thanks Julie Attorney to Corporate News. Fresh developments this morning 0:03:38.360 --> 0:03:41.880 on whether Elon Musk will pursue he is takeover of Twitter. 0:03:42.280 --> 0:03:45.520 Let's get the latest live from Bloomberg's REDNEYA Young, Good morning, Na, 0:03:45.680 --> 0:03:48.480 Good morning John. Elon Musk says he'll proceed with his 0:03:48.560 --> 0:03:52.120 forty four billion dollar Twitter takeover only if the social 0:03:52.120 --> 0:03:54.840 media giant proves that less than five percent of his 0:03:54.880 --> 0:03:58.320 accounts are fake. He shared even more of his skepticism 0:03:58.400 --> 0:04:02.120 yesterday at a Miami Tech Prince, estimating that bots make 0:04:02.200 --> 0:04:05.880 up at least twenty percent of all Twitter accounts. Musk 0:04:06.040 --> 0:04:08.280 shocked the market last week when he tweeted that his 0:04:08.320 --> 0:04:11.640 offer was temporarily on hold, and doubts are growing that 0:04:11.720 --> 0:04:14.040 he'd be able to pull off his acquisition and that 0:04:14.160 --> 0:04:17.919 he may consider dropping his bidding price. Shares of Twitter 0:04:18.080 --> 0:04:21.400 right now are down about two percent in early trading. 0:04:21.839 --> 0:04:24.080 Live in New York. I'm gonna need a Young Bloomberg 0:04:24.160 --> 0:04:26.039 day break. I need to thank you. We moved from 0:04:26.040 --> 0:04:29.440 one billionaire now to another. With news from Warren Buffett, 0:04:29.760 --> 0:04:33.839 the Berkshire Hathaway chairman, said goodbye to one longtime bank steak. 0:04:33.920 --> 0:04:36.919 He made a big bet on another. One of filing 0:04:36.920 --> 0:04:39.400 shows that Buffett ended his long running investment in Wells 0:04:39.440 --> 0:04:42.160 Fargo in the first quarter and has now invested roughly 0:04:42.200 --> 0:04:44.599 two point nine billion dollars in City Group. Shares of 0:04:44.640 --> 0:04:47.280 City are up more than four percent this morning. It's 0:04:47.279 --> 0:04:49.120 a big day on the retail front. This morning, we're 0:04:49.160 --> 0:04:52.600 gonna get earnings from Home Depot and Walmart. Bloomberg's Tom 0:04:52.680 --> 0:04:56.039 Busby has more on the outlook for Walmart. The focus 0:04:56.080 --> 0:04:58.960 for investors is whether sales continued to grow at the 0:04:59.040 --> 0:05:03.160 nation's biggest read sailor and largest grocery seller amidst stubbornly 0:05:03.240 --> 0:05:06.400 high inflation, or whether consumers were forced to pull back 0:05:06.400 --> 0:05:10.280 a bit last quarter. Bloomberg consensus calls were adjusted earnings 0:05:10.279 --> 0:05:12.680 per share of a dollar forty eight on revenues of 0:05:12.760 --> 0:05:17.800 just over nine million dollars and comp usls forecast rise 0:05:17.839 --> 0:05:21.680 two and a quarter percent. Tom Busby, Bloomberg Daybreak, Right, Tom, 0:05:21.720 --> 0:05:24.120 thank you. Also, this morning, before the market opens, the 0:05:24.160 --> 0:05:27.120 government issues economic data on retail sales. We get a 0:05:27.120 --> 0:05:31.080 preview from Bloomberg's Lisa Mateo. The median forecast calls for 0:05:31.160 --> 0:05:35.160 a game, but Bloomberg Economics anticipates slower growth in April 0:05:35.200 --> 0:05:39.440 retail sales. The reason signs of stress as inflation chips 0:05:39.440 --> 0:05:42.919 away at household finances. Consumers are turning to credit to 0:05:42.920 --> 0:05:46.279 pay for essentials such as food and gasoline. That doesn't 0:05:46.279 --> 0:05:51.200 bode well for discretionary spending. Lisa Mateo, Bloomberg Daybreak, Thanks Lisa. 0:05:51.279 --> 0:05:54.080 We now turn to developments involving the war in Europe. 0:05:54.520 --> 0:05:57.919 Senators have advanced the Ukrainian aid bill with wide support. 0:05:58.279 --> 0:06:01.920 Amy morriss is details from our Bloomberg N one newsroom 0:06:01.960 --> 0:06:05.520 in Washington. The Senate overwhelmingly moved the bill forward with 0:06:05.560 --> 0:06:08.200 a vote of eighty one to eleven. The measure would 0:06:08.200 --> 0:06:11.200 give forty billion dollars an aid to Ukraine, including money 0:06:11.240 --> 0:06:14.839 for weapons training and humanitarian aid. Now this was a 0:06:14.920 --> 0:06:17.920 procedural vote. A final vote on the measure is expected 0:06:17.920 --> 0:06:22.120 as early as tomorrow if all lawmakers wave rules on debate, 0:06:22.160 --> 0:06:24.200 and then from there it would go to the President's desk. 0:06:24.800 --> 0:06:27.680 Last week, Senator Rand Ball of Kentucky held up the 0:06:27.720 --> 0:06:30.640 bill over concerns about the cost and how the money 0:06:30.640 --> 0:06:33.600 would be spent in Washington, I'm any more as Bloomberg 0:06:33.680 --> 0:06:36.320 daybreak right, Amy, thank you. And it appears that Finland 0:06:36.400 --> 0:06:39.120 and Sweden's bid to join NATO is hitting a roadblog. 0:06:39.200 --> 0:06:41.880 Turkey's President er Juan is for the brakes on the move, 0:06:42.000 --> 0:06:44.640 saying he won't allow the countries to join the alliance 0:06:44.680 --> 0:06:47.960 because of their stances on Kurdish militants. Here Toman caused 0:06:47.960 --> 0:06:50.920 Sweden a nesting ground for terrorists. Even if he does 0:06:51.000 --> 0:06:54.320 not end up blocking membership, are Towan could extract concessions 0:06:54.320 --> 0:06:57.719 from NATO to allow it. And this morning we're seeing 0:06:57.760 --> 0:07:00.919 futures rallying ahead of the cash open on Wall Street. 0:07:01.360 --> 0:07:03.640 Right now, the Dawn Future is up three hundred fifty 0:07:03.760 --> 0:07:07.359 eight points smp E. Many futures up sixty one and 0:07:07.440 --> 0:07:11.000 the Aztec futures up two hundred and fifty five, and 0:07:11.080 --> 0:07:14.520 the benchmark ten year yield right now at two that 0:07:14.640 --> 0:07:18.600 is up to basis points. You're listening to Bloomberg Daybreak, 0:07:23.280 --> 0:07:25.440 it's five. He'll set about Wall Street. Time to bring 0:07:25.520 --> 0:07:27.440 in Michael Barr with more on what else is going 0:07:27.480 --> 0:07:30.360 on in New York and around the world. John, thank 0:07:30.400 --> 0:07:33.280 you very much. President Biden heads to Buffalo, New York 0:07:33.320 --> 0:07:37.280 today after Saturday's deadly mass shooting at a supermarket. Authorities 0:07:37.320 --> 0:07:40.000 say the gunman is an eighteen year old white supremacist. 0:07:40.440 --> 0:07:45.840 Buffalo Mayor Byron Brown. It's been hard. Uh, it's shocking, 0:07:47.400 --> 0:07:52.400 it's painful, and um, I've worked hard to hold this 0:07:52.600 --> 0:07:55.840 community together. Mayor Brown says he will also talk with 0:07:55.880 --> 0:07:58.880 the President Biden about federal gun laws in New York. 0:07:58.960 --> 0:08:01.400 In vigil was held at Harlem Church last night for 0:08:01.440 --> 0:08:04.800 the victims in Buffalo. Among those in attendant said Bethel 0:08:04.920 --> 0:08:08.720 Gospel Assembly, New York Attorney General Letitia James. We are 0:08:08.800 --> 0:08:12.720 in pain for the thirteen individuals who were shot, in 0:08:12.800 --> 0:08:16.000 the ten beautiful lives that were lost, and for their 0:08:16.040 --> 0:08:21.480 families that are suffering, and for the Buffalo community that 0:08:21.760 --> 0:08:25.520 is in so much pain, so much anger, along with 0:08:25.640 --> 0:08:28.840 a G James, New York Mayor Eric Adams also spoke. 0:08:29.200 --> 0:08:32.480 Adams talked about Buffalo and an eleven year old girl 0:08:32.559 --> 0:08:35.160 who was shot and killed by a gunman riding a 0:08:35.240 --> 0:08:38.200 scooter in the Longwood section of the Bronx last night. 0:08:38.920 --> 0:08:42.439 We have to be consistent because if you take the 0:08:42.559 --> 0:08:46.040 life of young Kiera merely because of which she lived, 0:08:47.240 --> 0:08:49.880 you no more less demonic than a person that took 0:08:49.920 --> 0:08:52.920 the life of those ten innocent people in Buffalo. Mayor 0:08:52.960 --> 0:08:56.840 Adams also slam social media. New York City health officials 0:08:56.840 --> 0:08:59.319 are urging New Yorkers to wear masks in the all 0:08:59.480 --> 0:09:03.439 indoor public settings as the city approaches high risk COVID 0:09:03.559 --> 0:09:06.920 nineteen alert status. New York City has been averaging around 0:09:07.000 --> 0:09:10.160 thirty six hundred reported new cases of COVID nineteen per 0:09:10.280 --> 0:09:14.160 day over the past week. Five states old primary elections 0:09:14.200 --> 0:09:16.960 today ahead of the November of mid terms. In Pennsylvania, 0:09:17.080 --> 0:09:19.680 both parties hoped to pick up an open Senate seat 0:09:20.080 --> 0:09:23.520 In the Republican primary. TV star Dr menmn Oz has 0:09:23.720 --> 0:09:27.760 former President Trump's endorsement. Oz is running against former Bridgewater 0:09:27.880 --> 0:09:33.200 CEO Dave McCormick. But conservative commentator Kathy Barnett is surging 0:09:33.240 --> 0:09:37.200 in the polls Bloomberg Government Elections, reported Greg Jarrow. Sometimes 0:09:37.240 --> 0:09:39.840 when you have races where we have two front runners 0:09:40.160 --> 0:09:42.440 beating in on each other, sometimes a third canic can 0:09:42.520 --> 0:09:45.959 kind of steak up there by surprise. And but Barnett 0:09:46.040 --> 0:09:48.480 did a rise in the polls in the last seven 0:09:48.559 --> 0:09:52.360 or ten days, Bloomberg's Greg Jarrow. As for the Democrats, 0:09:52.400 --> 0:09:55.560 Lieutenant Governor John Fetterman, who had a health scare, probably, 0:09:55.600 --> 0:09:57.959 according to Jarrow, as enough of elite still win. The 0:09:58.040 --> 0:10:00.760 primary Global News twenty four was a day on air 0:10:00.800 --> 0:10:03.080 and on Bloomberg Quicktake powered by more than twenty seven 0:10:03.160 --> 0:10:05.640 hundred journalists and anolists in more than a twenty countries. 0:10:05.640 --> 0:10:11.800 And Michael bar this is Bloomberg, John, Michael, thanks, he 0:10:12.000 --> 0:10:14.000 is South by ten Wall Street ten out for the 0:10:14.000 --> 0:10:17.320 Bloomberg Sports Update. Good morning, John Stan show Ki Morney. John. 0:10:17.400 --> 0:10:19.679 Here in mid May, the Yankees and still yet to 0:10:19.720 --> 0:10:21.880 reach double figures in the lost called another way, this 0:10:21.960 --> 0:10:23.960 one in Baltimore with a big hit coming from an 0:10:24.040 --> 0:10:28.200 unlikely source. Is hit in the air down the right 0:10:28.240 --> 0:10:31.319 field line, a long run per cent and there and 0:10:31.760 --> 0:10:37.160 it is it is a home run. Wow. He hit 0:10:37.240 --> 0:10:40.240 one right down the line and it just got over 0:10:40.320 --> 0:10:44.360 the high wall near the pole. Well, that is really something. 0:10:44.480 --> 0:10:47.600 A three run home run for Trevino w f an 0:10:47.720 --> 0:10:50.280 Yankees first home run hit by a catcher. Jose Trevino 0:10:50.320 --> 0:10:52.839 and Kyle had got Yoka, both batting under two hundred. 0:10:52.880 --> 0:10:55.840 It's hardly hurt them. They are now twenty six and nine, 0:10:56.000 --> 0:10:58.400 nineteen wins in the last twenty two games. They get 0:10:58.440 --> 0:11:01.360 the Oil six to two. H Donaldson and Anthony Rizzo 0:11:01.400 --> 0:11:03.320 had back to back homer's in the ninth inning. Luis 0:11:03.320 --> 0:11:06.120 Sevrena allowed only one hit Yanks out hit the Oriels 0:11:06.160 --> 0:11:08.520 eleven and three Yanks and only allowed seven hits over 0:11:08.559 --> 0:11:10.800 the last two games. Mets and Cardinals reined out. City 0:11:10.840 --> 0:11:13.080 Field will play a straight doubleheader today after a weekend 0:11:13.120 --> 0:11:15.640 with a total of seven game seven's. The NBA and 0:11:15.760 --> 0:11:18.400 NHL playoffs took a night off back. Tonight started the 0:11:18.480 --> 0:11:22.040 NBA's Eastern Conference Finals Celtics and he in Miami. They 0:11:22.120 --> 0:11:25.000 met in these finals two years ago. Miami won that serious. 0:11:25.000 --> 0:11:27.520 Stanley kept second round starts tonight with in stint battle 0:11:27.600 --> 0:11:30.920 Tampa Bay and Florida. Also St. Louis at Colorado Rangers 0:11:30.960 --> 0:11:33.600 and Hurricanes game one and Raleigh tomorrow. The Islanders, who 0:11:33.679 --> 0:11:37.360 just fired coach Barry Trots promoted his assistant Lane Lambert. 0:11:37.679 --> 0:11:40.319 Pg H champions FT is off Thursday, and tells so 0:11:40.400 --> 0:11:43.040 that if any champ, Phil Nicholson is not playing Tiger 0:11:43.120 --> 0:11:46.080 Woods is as his legs severely injured in that car 0:11:46.160 --> 0:11:49.040 after the last year, is feeling better. John Stash Howard 0:11:49.040 --> 0:11:52.000 Bloomberg Sports. John alright, thanks John, and we're in the 0:11:52.080 --> 0:11:55.640 green right now Premarket Dow futures three forty eight points, 0:11:55.840 --> 0:11:59.320 SMP futures, they're up sixty at the Nanstic futures right 0:11:59.360 --> 0:12:02.720 now two hundred and fifty four points. If you're listening 0:12:02.720 --> 0:12:08.959 to Bloomberg day Break, just ahead, can't we shop until 0:12:09.040 --> 0:12:13.240 we drop Walmart sales under close scrutiny as they report earnings, 0:12:13.280 --> 0:12:22.480 will preview their earnings report with Jen Bartashes of Bloomberg Intelligence, Markets, 0:12:22.600 --> 0:12:25.640 Headlines and breaking news twenty four hours a day at 0:12:25.720 --> 0:12:29.079 Bloomberg dot Com and Bloomberg Business at and at Bloomberg 0:12:29.200 --> 0:12:38.120 Quick Tape. This is a Bloomberg Business Lash and I'm 0:12:38.200 --> 0:12:41.240 Karen Moscow stocks in Europe are rising along with US 0:12:41.280 --> 0:12:45.199 stock index futures as risk appetite returns to markets, royal bike, 0:12:45.200 --> 0:12:49.640 concerns about global economic growth, searching prices and policy tightening. 0:12:49.720 --> 0:12:52.920 Treasury yields are rising. The dollar for its reading whicheck 0:12:53.000 --> 0:12:56.280 the markets every fifteen minutes throughout the trading day on Bloomberg, 0:12:56.360 --> 0:12:59.959 and technology shares are gaining this morning, with NASDACK futures 0:13:00.160 --> 0:13:02.559 jumping up more than two percent of two hundred fifty 0:13:02.640 --> 0:13:05.880 seven points does in P futures up sixty down futures 0:13:05.880 --> 0:13:08.839 have three hundred forty three the ten your treasury down 0:13:08.840 --> 0:13:11.520 five thirties seconds, YELD two point nine zero percent yield 0:13:11.559 --> 0:13:14.320 on the two year two point six zero percent. Nimex 0:13:14.440 --> 0:13:16.560 herd oil is up to ten percent or twenty three 0:13:16.600 --> 0:13:19.120 cents at a hundred fourteen dollars forty three cents of barrel. 0:13:19.360 --> 0:13:21.760 Comex gold up seven tenths per cent or thirteen dollars 0:13:21.840 --> 0:13:24.800 ten cents at eighteen twenty seven ten announced the euro 0:13:24.920 --> 0:13:27.080 one point oh four eight one against the dollar, British 0:13:27.080 --> 0:13:29.520 found one point to four eight six, the yen one 0:13:29.600 --> 0:13:32.760 twenty nine points to nine, and bitcoin this morning is 0:13:32.840 --> 0:13:35.160 up more than two percent at thirty thousand at five 0:13:35.280 --> 0:13:38.079 hundred eighty dollars. Today, we are watching for report on 0:13:38.160 --> 0:13:40.720 April retail sales at at day thirty Wall Street time 0:13:40.760 --> 0:13:44.760 and nine fifteen it's industrial production. Then at ten Business Inventories, 0:13:44.960 --> 0:13:47.640 Home Depot, and Walmart are among companies scheduled to report 0:13:47.720 --> 0:13:50.959 earnings today. That's a Bloomberg business flash. Now here's Michael 0:13:51.000 --> 0:13:53.400 Barr with more on muss going on around the world. Uncle, 0:13:53.440 --> 0:13:57.080 good morning, Good morning, Karen. President Byton travels to Buffalo, 0:13:57.160 --> 0:13:59.600 New York this morning to meet the families the victims 0:13:59.640 --> 0:14:02.920 of sun to Day's supermarket shooting that left ten people dead, 0:14:02.960 --> 0:14:05.480 all of them black. This as we learned the eighteen 0:14:05.600 --> 0:14:09.360 year old suspected shooter was allegedly inspired by the race 0:14:09.360 --> 0:14:13.920 whose great Replacement theory. Five states will hold primary elections today. 0:14:14.040 --> 0:14:17.319 Pennsylvania is trying to decide an open Senate seat ahead 0:14:17.360 --> 0:14:21.160 of the mid terms. Other states holding primaries are Idaho, Kentucky, 0:14:21.400 --> 0:14:24.440 North Carolina, and Oregon. In baseball, the Yankees beat the 0:14:24.520 --> 0:14:27.560 oriole six to the Mets Games reigned out the Red Sox, 0:14:27.640 --> 0:14:30.560 and Giants won the Nationals. And He's lost. Global News 0:14:30.640 --> 0:14:33.960 twenty four hours a day on air and on Bloomberg Quicktake, 0:14:34.200 --> 0:14:37.240 powered by more than twenty seven hundred journalists and analysts 0:14:37.520 --> 0:14:39.560 in more than a hundred twenty countries. I'm Michael bar 0:14:39.640 --> 0:14:42.120 This is Bloomberg John. Thank you, Michael. It is five 0:14:42.200 --> 0:14:44.360 twenty on Wall Street. We are live in the Bloomberg 0:14:44.400 --> 0:14:49.000 Intract to Brokers Studios. This is Bloomberg Daybreak. Elon Moss 0:14:49.040 --> 0:14:51.960 says he will proceed with his forty four billion dollar 0:14:52.080 --> 0:14:56.080 takeover of Twitter only if the social media giant can 0:14:56.200 --> 0:15:01.600 substantiate claims about the proportion of bots its service. Let's 0:15:02.120 --> 0:15:04.480 take a deeper dive this morning. We were joined first 0:15:04.560 --> 0:15:09.320 by Giles Turner, Bloomberg Technology Managing Editor. Can you explain 0:15:09.400 --> 0:15:13.680 to me the big deal about bots? Yeah, it's very 0:15:13.760 --> 0:15:16.920 difficult to work out how many bots there are on 0:15:17.040 --> 0:15:19.320 the on the platform. I do have simply both for 0:15:19.800 --> 0:15:23.560 the Elon Musk saying that surely the CEO of Twitter 0:15:23.680 --> 0:15:26.720 must know how many fake accounts on the system. We 0:15:26.880 --> 0:15:28.920 spend a lot of time trying to figure it out ourselves. 0:15:29.120 --> 0:15:33.840 I remember doing the brexit um sort of breakdown. We 0:15:33.920 --> 0:15:36.440 were trying to work out how much of the accounts 0:15:36.480 --> 0:15:41.040 were fueled by um outside influence perhaps from Russia. Clever 0:15:41.080 --> 0:15:42.360 people who us are trying to do it as well, 0:15:42.440 --> 0:15:44.400 and it turned out to be incredibly difficult once you 0:15:44.520 --> 0:15:47.760 drilled down into these accounts. Um So, But keeping here 0:15:47.800 --> 0:15:51.160 for Musk is how much of the accounts are fake? 0:15:51.240 --> 0:15:53.040 Obviously he thinks they've drawn to him. There are a 0:15:53.080 --> 0:15:54.960 lot of fake crypto accounts are obviously going to be 0:15:55.040 --> 0:15:56.920 drawn to Musk's own account. He probably finds that a 0:15:57.080 --> 0:16:00.320 very frustrating, but also it may well be a very 0:16:00.360 --> 0:16:04.080 clever bartering tool to get a lower price on Twitter. 0:16:04.160 --> 0:16:06.200 Obviously seen the shares come down quite a lot recently. 0:16:06.400 --> 0:16:08.520 All Right, so what's Twitter is saying at this point? 0:16:08.720 --> 0:16:13.120 Presumably what they've disclosed comes in the we're getting regulatory 0:16:13.200 --> 0:16:16.440 failings for a bunch of companies, right, Yeah, Well they've 0:16:16.440 --> 0:16:18.640 always said that they think it's around five percent, but 0:16:18.680 --> 0:16:20.320 they've also always said they think it could be a 0:16:20.400 --> 0:16:23.720 lot more because it's very difficult to at least it 0:16:23.760 --> 0:16:25.720 is from the arguments for Twitter, it's very devil to 0:16:25.880 --> 0:16:29.680 know exactly which accounts are fake, which I'm also it's 0:16:29.680 --> 0:16:31.720 worth adding here that the people who do make these 0:16:31.760 --> 0:16:34.040 fake accounts have got incredibly good at this They've had 0:16:34.400 --> 0:16:38.120 quite considerable amount of time to practice their skill. It 0:16:38.280 --> 0:16:40.080 is very difficult to work out which are fake and 0:16:40.760 --> 0:16:42.600 which are not. How it is not impossible, and he 0:16:42.680 --> 0:16:44.920 is study posting that they don't have better understanding of 0:16:46.240 --> 0:16:49.320 of this figure and figure accounts. I mean, this is 0:16:49.360 --> 0:16:53.960 no grad insight. They don't generate any revenue or anything 0:16:54.080 --> 0:16:59.080 for for Twitter. No, well, they can drive. There's plenty 0:16:59.080 --> 0:17:02.240 of spectation and why these exist, um, not only for 0:17:02.840 --> 0:17:06.800 political reasons, but also for for driving or trying to 0:17:06.880 --> 0:17:11.359 influence the algithm to help potentially get different messages across 0:17:11.359 --> 0:17:15.000 from various different people. Um, you know, be a fake 0:17:15.040 --> 0:17:19.000 advertising for example, or for political reasons, be the way 0:17:19.240 --> 0:17:21.159 no one likes them math for sure, but there are 0:17:21.760 --> 0:17:23.399 It's on that point that there are bots that are 0:17:23.400 --> 0:17:27.440 actually valid and Twitter does allow bot certain bots to 0:17:27.520 --> 0:17:30.520 be on their on their system, for example, things that 0:17:31.080 --> 0:17:33.320 the recent popular ones that is a pot that's been 0:17:33.359 --> 0:17:38.520 following various UM yachts and private planes of oligarchs, for example. 0:17:39.080 --> 0:17:41.240 People have found those very useful. Um, So there is 0:17:41.280 --> 0:17:43.240 a place of them. However, you've got to think of 0:17:43.280 --> 0:17:45.320 the perspective that even muster is coming from as being 0:17:45.359 --> 0:17:48.880 one of the most active users on Twitter, also someone 0:17:48.920 --> 0:17:51.320 who talks a lot about flitter currency, and there seems 0:17:51.320 --> 0:17:55.440 to a lot more fake accounts um mainly for trying 0:17:55.520 --> 0:17:58.760 to trick people into giving up their own money. Um, 0:17:59.560 --> 0:18:02.800 and they okay, Mosco telling me a very successful Giles 0:18:02.960 --> 0:18:06.200 nice a lot Chiles Turner, Bloomberg Technology Managing Editor. With 0:18:06.400 --> 0:18:10.240 that explanation, let's continue our coverage of this story this 0:18:10.359 --> 0:18:13.920 morning with one of the top analysts covering these UH companies, 0:18:14.000 --> 0:18:17.880 Dan Ives web Bush Securities, joins us this morning, Dan, 0:18:18.240 --> 0:18:22.720 why is this so chaotic? Look? I mean, it's turned 0:18:22.760 --> 0:18:26.560 into a circuit show because the issue is that the 0:18:26.720 --> 0:18:30.800 bots seek accounts. It was probably noon that it would 0:18:30.800 --> 0:18:34.240 be higher than what Twitter actually talked about. But I 0:18:34.359 --> 0:18:37.000 believe this is really ultimately must getting cold feet with 0:18:37.080 --> 0:18:41.200 the deal, looking for a scapegoat, and you know, it's 0:18:41.240 --> 0:18:44.320 really turned into what I'd say it was the Twilight 0:18:44.440 --> 0:18:47.640 Zone situation. He's trying to ballad the deal billion dollar 0:18:47.760 --> 0:18:53.080 breakup or drive a much significantly lower priced Twitter's back 0:18:53.160 --> 0:18:55.840 into the wall. There's no other bitter and this has 0:18:55.880 --> 0:18:58.240 really become you know, like like I said, it's a 0:18:58.280 --> 0:19:02.840 stirker show. Um, do you mentioned the breakup fee. Is 0:19:02.960 --> 0:19:06.480 there a way to break up this deal up and 0:19:06.840 --> 0:19:11.080 uh not and avoid the fee? No. I mean at 0:19:11.119 --> 0:19:13.800 this point he'd have to pay the fee. But then legally, 0:19:14.359 --> 0:19:16.320 in terms some of the due diligence, there's a lot 0:19:16.359 --> 0:19:19.360 of questions if he could even walk a bit because 0:19:20.080 --> 0:19:23.280 of this back claim, because you know this is gonna 0:19:23.359 --> 0:19:26.000 now potentially go through a back and forth that could 0:19:26.080 --> 0:19:28.439 ultimately end up in the courts. We got to hear 0:19:28.520 --> 0:19:31.600 from Twitter's board, but this is really the issue Twitter News. 0:19:31.800 --> 0:19:35.080 If they just say okay, no deal, we walk away, 0:19:36.080 --> 0:19:39.080 then ultimately this is doctor goes under thirty dollars and 0:19:39.440 --> 0:19:42.560 and that's really the issue for Twitter's board is that 0:19:42.720 --> 0:19:45.159 they really need to ultimately sit there and wait to 0:19:45.200 --> 0:19:47.280 see if there's a lower price. And the way that 0:19:47.400 --> 0:19:49.959 Musk has handled this and I think all around has 0:19:50.000 --> 0:19:53.960 been a black eye. H So, as far as investors 0:19:54.040 --> 0:20:00.320 are concerned, are is this is a disservice to the investors. Oh, 0:20:00.400 --> 0:20:03.000 I mean, I say it's unconscionable in terms the waves 0:20:03.040 --> 0:20:07.320 hounds in the public market. This is typical due diligence 0:20:07.400 --> 0:20:11.320 you do behind the scenes, and it's something where market 0:20:11.359 --> 0:20:14.560 sen dramatically three injin billions come off of his Golden 0:20:14.680 --> 0:20:18.160 Child test lessons. It's all started. I think you overestimated 0:20:18.280 --> 0:20:23.119 that his bonds are falling this morning after yesterday's a 0:20:23.200 --> 0:20:27.360 late sell off. Nancy Davey, founder of Quadratic Capital Management, 0:20:27.400 --> 0:20:30.680 says the market is still too optimistic about the feasibility 0:20:30.760 --> 0:20:34.359 to tame inflation. So much of the inflationary shock is 0:20:34.440 --> 0:20:38.000 not necessarily a result of the level of interest rates. 0:20:38.119 --> 0:20:41.320 It's other reasons that are pandemic related. So it's a 0:20:41.400 --> 0:20:44.040 really challenging time to try to thread the needle, and 0:20:44.280 --> 0:20:46.680 I think that's why we're encouraging investors just to be 0:20:46.920 --> 0:20:51.439 very diversified. Nancy Davis of Quadratic Capital Management says if 0:20:51.480 --> 0:20:54.480 inflation does not come down with higher rates, she worries 0:20:54.520 --> 0:20:57.600 about stagflation. That's surely on the mind of the Fed. 0:20:57.800 --> 0:21:00.840 As we hear six Central Bank officials to day, including 0:21:00.920 --> 0:21:03.680 Chair J. Powell. He'll be interviewed during a live Wall 0:21:03.720 --> 0:21:07.200 Street Journal event later this afternoon. While turning to Capitol 0:21:07.320 --> 0:21:10.159 Hill the mid term election less than six months away, 0:21:10.280 --> 0:21:13.800 inflation is likely a major issue for voters. Senator Dick 0:21:13.840 --> 0:21:16.679 Durbin of Illinois spoke to Bloomberg's David Weston about how 0:21:16.760 --> 0:21:20.800 President Biden is trying to curb rising prices. But the 0:21:20.920 --> 0:21:24.879 president's doing releasing oil from the Strategic Patrol named Reserve, 0:21:25.200 --> 0:21:28.560 making moves in agriculture. He's doing everything within his control 0:21:28.600 --> 0:21:32.440 and power to move this inflation away from American families. 0:21:32.560 --> 0:21:36.240 It's a tough challenge. Illinois Senator Dick Durbin speaking with 0:21:36.440 --> 0:21:40.280 David Weston on Bloomberg's balance of power. Catch the program 0:21:40.359 --> 0:21:44.280 weekdays at noon Eastern on Bloomberg Radio and Television. And 0:21:44.440 --> 0:21:47.000 Karen on the economic front, We're gonna get more of 0:21:47.080 --> 0:21:50.199 a sense of consumer sentiment today. That's when the government 0:21:50.240 --> 0:21:53.959 issues data on retail sales. We also get earnings from 0:21:54.000 --> 0:21:57.800 Walmart this morning at overseas stocks in Europe and Chinese 0:21:57.880 --> 0:22:01.960 text socks clide with hopes that China will ease COVID restrictions. 0:22:02.400 --> 0:22:04.719 And finally, John, as you've been telling you, there are 0:22:04.880 --> 0:22:08.800 fresh developments this morning on Elon Musk's pursuit of Twitter, 0:22:08.920 --> 0:22:12.919 and Bloomberg's Ranita Young joins us live with more. Good morning, Ranita, 0:22:13.000 --> 0:22:16.040 Good morning Karen. Elon Musk says he'll proceed with his 0:22:16.160 --> 0:22:19.560 forty four billion dollar. Twitter takeover only if it proves 0:22:19.640 --> 0:22:22.160 that less than five percent of its accounts are fake. 0:22:22.600 --> 0:22:25.960 He shared more skepticism yesterday at a Miami tech conference, 0:22:26.440 --> 0:22:29.600 estimating that bots make up at least twenty of all 0:22:29.680 --> 0:22:33.080 Twitter accounts. Musk shocked the market last week when he 0:22:33.160 --> 0:22:36.480 tweeted that his offer was temporarily on hold, and doubts 0:22:36.480 --> 0:22:39.000