WEBVTT - Bloomberg Daybreak: May 31, 2022 - Hour 2 (Radio) 0:00:02.400 --> 0:00:05.880 Live from the Bloomberg Interacted Berger Studios. Is Bloomberg day 0:00:05.880 --> 0:00:10.680 Break for Tuesday one coming up this hour. Oil surges 0:00:10.720 --> 0:00:13.480 after EU leaders agree to pursue a partial bed on 0:00:13.600 --> 0:00:16.560 Russian crude. The oil game and hawkish comments from the 0:00:16.600 --> 0:00:19.840 FED have treasury yields on the rise. At President Biden 0:00:19.880 --> 0:00:22.480 holds a rare meeting with FED Chair J Powell at 0:00:22.480 --> 0:00:25.880 the Oval Office. Today. People in Volde, Texas prepared to 0:00:25.880 --> 0:00:28.400 bury the dead from last week's shootings to plus, the 0:00:28.480 --> 0:00:32.200 Diocese of Brooklyn calls it a brazen crime of disrespect 0:00:32.240 --> 0:00:35.919 and hate. I'm Michael Barr. More Ahead, I'm trying Stashower 0:00:35.960 --> 0:00:38.560 and sports. The Rangers beat the Hurricanes in Game seven. 0:00:38.600 --> 0:00:41.040 They're moving on to the East Farmal's easy win for 0:00:41.080 --> 0:00:47.320 the Mets. That's all's training. Ahead on Bloomberg Daybreak on 0:00:47.440 --> 0:00:51.880 Bloomberg eleven three, on New York, Bloomberg one, Washington, d C, 0:00:52.360 --> 0:00:55.920 Bloomberg one oh six one, Boston, Bloomberg nine sixties and 0:00:56.040 --> 0:00:59.960 Francisco Sirius x M one nineteen and around the world 0:01:00.320 --> 0:01:07.679 Bloomberg Radio dot Com and via The Bloomberg Business And 0:01:07.760 --> 0:01:11.080 Good Morning. I'm Karen Moscow. I'm Nathan Hacker Bloomberg Daybreak 0:01:11.120 --> 0:01:13.160 is brought to you by B and Y Melon Pershanks 0:01:13.200 --> 0:01:16.520 Inside Conference Back in person June fifteen through the seventeenth 0:01:16.520 --> 0:01:19.200 of the Gaylord Resorted grape Vine, Texas. Don't miss it. 0:01:19.280 --> 0:01:23.320 Register now at Inside dot b n Y Melon dot com. 0:01:23.319 --> 0:01:26.200 And US futures are lower this morning six o one 0:01:26.240 --> 0:01:28.319 on Wall Street. IM gonna check the markets every fifteen 0:01:28.319 --> 0:01:30.760 minutes throughout the trading day. On Bloomberg, Guess and P 0:01:30.959 --> 0:01:33.720 Future is down twenty eight points. DAL futures down two 0:01:34.400 --> 0:01:37.319 one and nasdack futures down forty three. The decks in 0:01:37.360 --> 0:01:40.560 Germany's down three quarters of a percent ten Your treasury 0:01:40.560 --> 0:01:43.600 down thirty seconds yield two point eight one percent. They 0:01:43.680 --> 0:01:46.319 yield on the two year two point five three percent. 0:01:46.880 --> 0:01:49.120 Comics gold is down to tenths per cent or four 0:01:49.160 --> 0:01:52.080 dollars thirty cents at eighteen fifty three announced, and the 0:01:52.160 --> 0:01:54.920 euro one point oh seven to two against the dollar. 0:01:55.000 --> 0:01:58.080 Nathan Karen Oil is on the rise this morning, gets 0:01:58.160 --> 0:02:00.080 up three and a half percent for west Tech this 0:02:00.200 --> 0:02:03.640 intermediate after European Union leaders agreed to seek a ban 0:02:03.800 --> 0:02:07.240 on imports of most Russian oil. Let's get the details 0:02:07.240 --> 0:02:09.600 of Bloomberg's human parts in our London bureau. Good morning, 0:02:10.040 --> 0:02:13.359 Good morning, Nathan Karen. Finally a deal on Russian oil. 0:02:13.440 --> 0:02:16.760 European Union leaders agree sanctions blocking the purchase of crude 0:02:16.760 --> 0:02:20.640 oil and petroleum products from Russia delivered by sea, but 0:02:20.800 --> 0:02:24.359 there is a temporary exemption for pipeline deliveries to satisfy Hungary, 0:02:24.560 --> 0:02:28.400 which have been holding up discussions. European Commission President Vondeline 0:02:28.480 --> 0:02:32.280 welcome the agreement. Council should now be able to finalize 0:02:32.360 --> 0:02:36.760 a ban on almost of all Russian oil inputs by 0:02:36.800 --> 0:02:39.880 the end of the year. European Commission President Vondeline made 0:02:39.919 --> 0:02:42.400 the comments at a briefing in Brussels. In London, I'm 0:02:42.440 --> 0:02:44.360 you and parts spoon back day break, thank you, and 0:02:44.400 --> 0:02:46.320 thank you all. Back here in the US, the fallout 0:02:46.320 --> 0:02:50.280 from last week's school shooting continues to reverberate across the country. 0:02:50.360 --> 0:02:53.480 There's another bush for a legislation on guns for President 0:02:53.520 --> 0:02:55.520 Biden says he is limited on what he can do. 0:02:55.639 --> 0:02:59.400 He traveled to Yevaldi, Texas for an emotional visit this weekend. Anymore, 0:02:59.560 --> 0:03:02.640 says Deep Eils from our Bloomberg One news room in Washington. 0:03:03.040 --> 0:03:06.240 I can't outlaw a weapon. I can't change a background check. 0:03:06.480 --> 0:03:08.920 President Biden explaining that there is only so much he 0:03:09.040 --> 0:03:11.920 can do to stop mass shootings in the US. Biden 0:03:12.000 --> 0:03:15.120 and First Lady Jill Biden visited the Texas elementary school 0:03:15.240 --> 0:03:18.280 where a gunman killed nineteen children and two teachers. That 0:03:18.400 --> 0:03:21.320 shooting has increased demands on Congress to do something about 0:03:21.360 --> 0:03:24.080 gun regulation, and talks in the Senate now center on 0:03:24.120 --> 0:03:27.000 red flag laws. They allow police or family members to 0:03:27.120 --> 0:03:29.560 ask a court to temporarily remove the right to own 0:03:29.600 --> 0:03:32.720 firearms from someone who may be at risk. In Washington, 0:03:32.840 --> 0:03:35.400 I may be more as Bloomberg daybreak Amy thanks on 0:03:35.440 --> 0:03:38.320 Wall Street Today, Inflation continues to be a major focus 0:03:38.360 --> 0:03:41.160 for markets. Treasury yields are climbing as the Federal Reserve 0:03:41.200 --> 0:03:44.320 shows no sign of slowing its hawkish stance. FED Governor 0:03:44.400 --> 0:03:47.000 Christopher Waller says he wants to keep raising interest rates 0:03:47.000 --> 0:03:50.040 and half percentage point steps until inflation is under control, 0:03:50.480 --> 0:03:56.480 support tightening policy by another fifty basis points or several meetings. 0:03:56.920 --> 0:04:01.600 In particular, I am not taking fifty base its point 0:04:01.680 --> 0:04:05.720 heights off the table until I see inflation coming down 0:04:06.120 --> 0:04:09.920 close to part FED Governor Christopher Waller spoke at an 0:04:09.920 --> 0:04:14.160 event hosted by the Institute for Monetary and Financial Stability. Well, Nathan, 0:04:14.200 --> 0:04:17.080 inflation will be a key topic of discussion when President 0:04:17.120 --> 0:04:20.080 Biden holds a rare meeting today with each share of 0:04:20.160 --> 0:04:23.120 the Federal Reserve, and we get more from Bloombery's de Chrisner. 0:04:23.680 --> 0:04:26.440 It'll be the first meeting between the two since November, 0:04:26.480 --> 0:04:29.440 when the President nominated J. Powell for a second four 0:04:29.520 --> 0:04:33.160 year term. In the intervening period, soaring inflation has become 0:04:33.240 --> 0:04:36.679 a crippling problem. In an opinion piece published late Monday 0:04:36.680 --> 0:04:38.960 in The Wall Street Journal, the President said he would 0:04:39.000 --> 0:04:41.799 support the Fed in its effort to combat high inflation 0:04:42.000 --> 0:04:45.159 by reducing demand. The President said the fight was likely 0:04:45.200 --> 0:04:47.599 to slow the rate of job growth from a monthly 0:04:47.640 --> 0:04:51.120 pace of five hundred thousand jobs to around a hundred 0:04:51.160 --> 0:04:55.040 fifty thousand in New York. I'm Doug Christner, Bloomberg Daybreak. Okay, Doug, 0:04:55.040 --> 0:04:56.840 thanks for the labor market will be front and center 0:04:56.880 --> 0:04:58.480 as well this week when we get the May jobs 0:04:58.480 --> 0:05:00.640 report on Friday. Let's get a preview of that from 0:05:00.640 --> 0:05:04.720 Bloomberg'sviney del Judas. Economy is a payroll growth probably exceeded 0:05:04.760 --> 0:05:07.479 three hundred thousand and May. So far this year, the 0:05:07.520 --> 0:05:10.640 economy has added more than two million jobs, with labor 0:05:10.680 --> 0:05:14.480 shortages at record levels. Of slowdown could imply a shortage 0:05:14.480 --> 0:05:18.640 of qualified workers rather than sudden weakness. Job cuts have 0:05:18.720 --> 0:05:21.799 been running it half century lows. Also in this week's 0:05:21.880 --> 0:05:25.799 US data calendar, I s M Factory data, the Conference Boards, 0:05:25.839 --> 0:05:29.920 consumer Confidence Index in the Federal Reserves, bag Book, Economic Survey, 0:05:30.160 --> 0:05:33.000 Benny del Judace, Bloomberg day Break. All right, Anny, thank you, 0:05:33.040 --> 0:05:35.640 But we're also getting key inflation data out of Europe 0:05:35.680 --> 0:05:39.800 showing Eurozone inflation accelerated to a fresh all time high. 0:05:40.080 --> 0:05:42.719 Consumer prices jumped eight point one percent from a year 0:05:42.720 --> 0:05:45.800 earlier in May, exceeding the seven point eight percent median 0:05:45.960 --> 0:05:49.479 estimate in a Bloomberg survey. Acceleration was driven by food 0:05:49.480 --> 0:05:53.440 and energy after Russia's invasion of Ukraine sent commodity prices soaring. 0:05:53.640 --> 0:05:55.760 Oh back here in the US, Karen stocks are coming 0:05:55.800 --> 0:05:58.000 off their first winning week in nearly a month. As 0:05:58.000 --> 0:06:00.800 we returned to this holiday shortened trade week, we get 0:06:00.800 --> 0:06:04.320 more on the days ahead from Bloomberg's Charlie Pellet. Analysts 0:06:04.440 --> 0:06:07.640 remain split on whether equities have found a bottom amid 0:06:07.720 --> 0:06:12.400 ongoing questions about the strength of corporate earnings. Alicia Levine's 0:06:12.440 --> 0:06:15.560 head of Equities and Capital Markets Advisory at Bank of 0:06:15.640 --> 0:06:18.680 New York, Melon, margins are going to come down. And 0:06:18.720 --> 0:06:21.680 what the market's really been grappling with the last couple 0:06:21.680 --> 0:06:24.839 of weeks is the E on the pe their earnings component, 0:06:24.960 --> 0:06:28.600 and it's likely that earnings have to soften from here. 0:06:28.720 --> 0:06:33.800 Among the names scheduled to report this week, Broadcom, CrowdStrike, Hormel, Foods, 0:06:33.960 --> 0:06:38.039 HP and KO, Lulu, Lemon, and Salesforce dot Com in 0:06:38.160 --> 0:06:41.200 New York, Charlie Pellett Bloomberg day Break, A Right Turley, 0:06:41.279 --> 0:06:44.440 thank you will overseas this morning. Shares of Unilever or 0:06:44.520 --> 0:06:48.080 up about six percent. Activist investor Nelson Pellets has been 0:06:48.080 --> 0:06:51.440 appointed as a non executive director in the company, and 0:06:51.480 --> 0:06:53.640 his Try And Fund Management has taken a one and 0:06:53.680 --> 0:06:56.440 a half percent stake in Unilever. All right now and 0:06:56.680 --> 0:06:59.240 futures are down thirty two points. That's a drop of 0:06:59.240 --> 0:07:01.800 eight ten percent that the moment. Dow futures down tutored 0:07:01.839 --> 0:07:05.680 forty seven. NASTAC futures are lower by fifty seven points. 0:07:05.720 --> 0:07:08.880 The tenure Treasury is down twenty thirty seconds yield two 0:07:10.400 --> 0:07:13.640 Nimex crude trading at a hundred nineteen dollars three cents. 0:07:13.680 --> 0:07:16.640 Apparel straight ahead, your latest local headlines and a check 0:07:16.640 --> 0:07:24.200 of sports. This is Bloomberg. It sounds six oh seven 0:07:24.240 --> 0:07:26.960 on Wall Street, seventy four degrees in Central Park. We've 0:07:26.960 --> 0:07:29.440 got an accident in Queen's westbound l I E and 0:07:29.480 --> 0:07:32.760 wood Haven Boulevard. Details coming up in traffic. First Michael 0:07:32.760 --> 0:07:34.640 Barr with more on what's going on in New York 0:07:34.640 --> 0:07:36.920 at around the world. Michael, thank you very much. Nathan. 0:07:36.920 --> 0:07:39.960 Police say someone busted into the altar at a New 0:07:40.040 --> 0:07:43.520 York City church, stole a two million dollar gold relic, 0:07:43.960 --> 0:07:46.720 and removed the head of a statue of an angel. 0:07:47.080 --> 0:07:50.760 The incident happened between Thursday and Saturday at St. Augustine's 0:07:50.840 --> 0:07:55.120 Roman Catholic Church in Brooklyn's Park Slope neighborhood. The church 0:07:55.240 --> 0:07:58.400 was closed for construction at the time. The church's pastors 0:07:58.520 --> 0:08:01.720 said that camera recorps things from the security system who 0:08:01.720 --> 0:08:04.680 are also stolen. The Diocese of Brooklyn called it a 0:08:04.720 --> 0:08:08.559 brazen crime of disrespect and hate. New York Governor Kathy 0:08:08.640 --> 0:08:11.880 Hokell spoke at the commemoration of the twentie anniversary of 0:08:11.920 --> 0:08:15.560 the formal end of recovery operations at Ground zero on 0:08:15.760 --> 0:08:19.440 Memorial Day, HOCl referred to those who quote showed up 0:08:19.560 --> 0:08:22.920 unprompted to help the common denominator from Moses. They were 0:08:22.920 --> 0:08:25.800 New Yorkers, because it's in our d n A. When 0:08:25.800 --> 0:08:29.280 we get knocked down, we fight back and we come back, 0:08:29.720 --> 0:08:32.600 and we must never ever forget that lesson. That is 0:08:32.640 --> 0:08:37.360 the story of this hallowed ground. Governor Hokell also says 0:08:37.400 --> 0:08:40.640 we're going to come back after this pandemic because we 0:08:40.720 --> 0:08:44.240 showed we did it twenty years ago. Funerals take place 0:08:44.280 --> 0:08:47.040 this week for the nineteen children and two teachers killed 0:08:47.120 --> 0:08:50.720 last week in Yuvaldi, Texas. The town's Manyor Don McLaughlin 0:08:50.840 --> 0:08:53.720 says the site of the shooting rob Elementary School should 0:08:53.760 --> 0:08:56.880 be torn down. Mcclocklin says, though people in the community 0:08:57.000 --> 0:08:59.000 will get through it. That's one of the things I 0:08:59.040 --> 0:09:01.319 love about you about it is community will come together 0:09:01.760 --> 0:09:04.240 and we will come together on this. I mean, this 0:09:04.360 --> 0:09:07.640 is something that we will never get over, but we'll 0:09:07.679 --> 0:09:11.040 get through. Mayor McLaughlan says he supports the construction of 0:09:11.080 --> 0:09:14.520 a mental health hospital in Vivodi that would also serve 0:09:14.720 --> 0:09:19.560 dozens of nearby counties and possibly prevent future massacres. Canadian 0:09:19.600 --> 0:09:23.199 prem Minister Justin Trudeau announced an effort to ban handguns. 0:09:23.640 --> 0:09:26.720 Canada already has an assault weapons band. In the news 0:09:26.760 --> 0:09:31.719 conference in Otowa, Trudeau said the legislation would prohibit the purchase, sale, transfer, 0:09:31.880 --> 0:09:35.880 or import of handguns across Canada. We've seen far too 0:09:35.880 --> 0:09:41.040 many tragedies across this country, far too many incidents of 0:09:41.120 --> 0:09:45.320 gun violence, particularly with handguns in our streets, in our communities, 0:09:45.360 --> 0:09:50.800 Devastating families, devastating communities. Trudeaux also announced mandatory by banks 0:09:50.800 --> 0:09:54.120 for assault weapons. Global News twenty four hours a day 0:09:54.240 --> 0:09:57.559 on air and on Bloomberg Quittake, powered by more than 0:09:57.600 --> 0:10:01.040 twenty seven journalists and analysts and more than hundred twenty countries. 0:10:01.440 --> 0:10:09.000 Michael barrn this is Bloomberg, Nathan. All right, Michael, thanks come, 0:10:09.080 --> 0:10:10.599 that's a sixth tent on Wall Street. Time for the 0:10:10.600 --> 0:10:13.559 Bloomberg Sports Update with John Stshaw. All Right, Nathan, what 0:10:13.679 --> 0:10:16.320 a postseason the Rangers are having. It's hardly over, but 0:10:16.360 --> 0:10:20.360 already five winds when faced with elimination, two game seven 0:10:20.440 --> 0:10:23.720 victories two Series one. Both well They never led the 0:10:23.760 --> 0:10:27.000 series until Game seven and Raleigh Hurricanes penalty in a 0:10:27.120 --> 0:10:30.040 Ranger league and seconds to go, the Rangers power play. 0:10:30.640 --> 0:10:33.960 Rakers go back in top right side feed for a 0:10:34.040 --> 0:10:42.800 year back past the flock scores out of Fox. It's 0:10:42.840 --> 0:10:49.160 a power play goal. Rangers LEADPN later in the first 0:10:49.200 --> 0:10:52.440 another power play goal Chris Crider deflection. Criders scored again 0:10:52.440 --> 0:10:55.240 in the third. The Rangers beat the Hurricane six to two. 0:10:55.320 --> 0:10:58.760 Carolina had been seven and oh at home in the postseason. 0:10:58.800 --> 0:11:00.920 The Rangers are now coming home Game one of the 0:11:00.960 --> 0:11:04.040 East Final with two time defending Stanley Cup champion Tampa 0:11:04.080 --> 0:11:07.600 Bay tomorrow night at the Garden City Field. Washington scored 0:11:07.640 --> 0:11:09.200 three runs in the first sitting. The Mets scored the 0:11:09.240 --> 0:11:12.280 next twelve. All twelve scored over the first four innings. 0:11:12.280 --> 0:11:14.920 The Mets beat the Nats thirteen to five, Starling Martde 0:11:14.960 --> 0:11:17.680 and Nick Plummer, both with home runs and four RBI. 0:11:17.800 --> 0:11:21.000 Detroit Tigers called up infielder Cody Clemens and the Miners. 0:11:21.400 --> 0:11:24.000 That's Roger's son. He's expected to make his major league 0:11:24.040 --> 0:11:26.800 debut tonight. A couple of fourth round upsets. The French 0:11:26.880 --> 0:11:30.040 opened the second and fourth seeds were ousted, Danil Medvedev 0:11:30.080 --> 0:11:32.439 beaten by Marin Chilett straight sets, and Medvedev as of 0:11:32.520 --> 0:11:36.360 now not allowed to play Wimbledon, who has banned all 0:11:36.480 --> 0:11:40.319 Russian stafinals. Sits Aposs also lost pig match today quarterfinals. 0:11:40.360 --> 0:11:43.800 Raphael dalvers Is Novak Jokeovid Maryland captain undefeated season won 0:11:43.840 --> 0:11:46.600 the n C Double A lacrosse title, beating Cornell John 0:11:46.640 --> 0:11:50.400 Stash Award, Bloomberg Sports NAO Okay John, Thanks SMP Futures 0:11:50.440 --> 0:11:53.280 now down twenty seven point, Stout Futures down twurtter two, 0:11:53.360 --> 0:11:56.679 NASTAC futures down forty three points. Ni've x screwed up 0:11:56.760 --> 0:12:00.000 three point four percent of a hundred eighteen dollars ninety 0:12:00.120 --> 0:12:08.680 five cents apparel. You're listening to Bloomberg Daybreak. Bloomberg Daybreak 0:12:08.720 --> 0:12:11.000 is brought to you by Hofstra University's Frank G's r 0:12:11.120 --> 0:12:13.959 School of Business, top ranked online NBA program with a 0:12:14.040 --> 0:12:16.800 real world foundation. Learn more at Hofstra dot e, d 0:12:17.040 --> 0:12:24.600 u slash Go grad markets headlines and breaking news twenty 0:12:24.640 --> 0:12:27.480 four hours a day, at Bloomberg dot Com, the Bloomberg 0:12:27.520 --> 0:12:31.040 Business at and at Bloomberg Quick Tape. He's a Bloomberg 0:12:31.160 --> 0:12:40.160 Business Flash and I'm Cameron Moscow stocks in US stock 0:12:40.240 --> 0:12:44.040 index futures are dropping while bonds fall as euro Zone 0:12:44.080 --> 0:12:47.600 inflation accelerates to a fresh all time high, intensifying the 0:12:47.640 --> 0:12:50.719 debate at the European Central Bank about how rapidly to 0:12:50.800 --> 0:12:53.200 raise interest rates. We checked the markets every fifteen minutes 0:12:53.240 --> 0:12:56.720 throughout the trading day. On Bloomberg SMP futures down twenty 0:12:56.800 --> 0:13:00.120 six points down, futures down two two. Nowday future is 0:13:00.160 --> 0:13:03.000 down forty two the decks in Germany's down seven tenths 0:13:03.000 --> 0:13:06.160 of upper set ten year treasury down twenty thirty seconds, 0:13:06.200 --> 0:13:08.199 YELD two point eight one percent. They yield on the 0:13:08.240 --> 0:13:11.439 two year two point five three percent. NIMEX scrude oil 0:13:11.600 --> 0:13:13.760 is up three point three percent of three dollars seventy 0:13:13.760 --> 0:13:16.040 eight cents and a hundred eighteen dollars eighty five cents 0:13:16.040 --> 0:13:18.520 a barrel. Comex school down a quarter percent or four 0:13:18.559 --> 0:13:21.480 dollars twenty cents at eighteen fifty three ten announced the 0:13:21.600 --> 0:13:24.000 euro one point oh seven to six against the dollar, 0:13:24.080 --> 0:13:26.480 British pound one point to six oh one the end 0:13:26.520 --> 0:13:30.319 one seven point nine zero, and Bitcoin is higher, up 0:13:30.360 --> 0:13:33.520 one point one percent at thirty one thou six hundred dollars. 0:13:33.520 --> 0:13:36.000 That's a Bloomberg business flash. Now here's Michael Barr with 0:13:36.080 --> 0:13:39.000 more on what's going on around the world. Michael Karen, 0:13:39.000 --> 0:13:41.280 thank you very much. Today will mark one week when 0:13:41.360 --> 0:13:44.320 nineteen children and two teachers were gunned down and rob 0:13:44.360 --> 0:13:48.200 elementary school in Uvaldi, Texas. The first of the funerals 0:13:48.240 --> 0:13:51.760 begins this week. The w h OS top monkey pox 0:13:51.760 --> 0:13:55.560 expert is skeptical the virus will become a global pandemic. 0:13:56.160 --> 0:14:00.360 W h shows Dr Rosamund Lewis says anyone can at 0:14:00.400 --> 0:14:04.800 potential risk, however, and that they're not exactly sure how 0:14:04.840 --> 0:14:08.720 it's being spread. In the NHL Playoffs, the Rangers are 0:14:08.760 --> 0:14:12.120 heading to the Eastern Finals after beating the Hurricanes in 0:14:12.200 --> 0:14:15.280 Game seven, six two. In baseball, the Mets beat the 0:14:15.360 --> 0:14:19.200 Nationals thirteen five. The Orioles beat the Red Sox ten zip. 0:14:19.440 --> 0:14:22.840 The Giants won the A's Lost. Global News twenty four 0:14:22.880 --> 0:14:26.320 hours a day on air and on Bloomberg Quicktake, powered 0:14:26.320 --> 0:14:29.280 by more than seven hundred journalists and analysts more than 0:14:29.320 --> 0:14:33.560 a hundred twenty countries. Michael Barren, this is Bloomberg. Nathan Okay, Michael, 0:14:33.560 --> 0:14:36.080 thanks at six nineteen on Wall Street Live from the 0:14:36.080 --> 0:14:39.840 Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak. Let's turn 0:14:39.880 --> 0:14:42.440 now to more on our top story this morning, the 0:14:42.600 --> 0:14:47.520 surge in oil after the European Union agreed to pursue 0:14:47.560 --> 0:14:52.120 a partial ban on Russian crewede imports. This Canada EU 0:14:52.280 --> 0:14:55.360 leaders summit in Brussels, where we are joined now live 0:14:55.400 --> 0:14:58.480 by Bloomberg's Maria. It's a dale Maria, good morning, Thanks 0:14:58.480 --> 0:15:01.240 for being with us. How significant is this? What is 0:15:01.280 --> 0:15:04.680 the immediate impact? Look, I think it is more significant 0:15:04.720 --> 0:15:07.400 than than the surface of the agreement would lead you 0:15:07.440 --> 0:15:09.320 to believe. And that's the reaction that we're seeing in 0:15:09.360 --> 0:15:12.000 the market today when it comes to oil prices. When 0:15:12.000 --> 0:15:14.840 you look at what's in the agreements that was reached 0:15:14.920 --> 0:15:18.440 yesterday by European leaders, especially what they say is that 0:15:18.480 --> 0:15:21.200 they will do a ban of Russian oil that is 0:15:21.200 --> 0:15:25.720 transported by sea. There are some exemptions to pipeline oil, 0:15:25.800 --> 0:15:28.640 but in reality, this is where it gets interesting. By 0:15:28.680 --> 0:15:32.600 cutting down seaborn, essentially you cut down two thirds of imports. 0:15:32.640 --> 0:15:35.640 If the big bias like Germany and also countries like 0:15:35.680 --> 0:15:39.280 Poland agree to wind down pipeline too, like they say 0:15:39.320 --> 0:15:41.760 they will do this year. Essentially, you're looking at a 0:15:41.800 --> 0:15:46.080 scenario in which potentially there could be a nine reduction 0:15:46.160 --> 0:15:49.720 of Russian oil exports into the European Union. So I 0:15:49.720 --> 0:15:52.680 would argue this deal even though it was delayed. We 0:15:52.800 --> 0:15:54.840 talked a lot about the ins and outs and the 0:15:54.840 --> 0:15:58.720 political commotion that happens with every big summit where you 0:15:58.760 --> 0:16:00.760 have to agree and get to an agree meant among 0:16:00.800 --> 0:16:03.800 twenty seven different countries that have twenty seven different interests, 0:16:04.200 --> 0:16:06.560 I would say this is more significant than we were 0:16:06.600 --> 0:16:09.240 expecting just a day ago when the mood was very negative. 0:16:09.880 --> 0:16:16.320 One of the major, UH significant holdouts here potentially could 0:16:16.320 --> 0:16:19.360 be Hungary, could I mean they've been pushing back pretty 0:16:19.360 --> 0:16:22.400 hard against the idea of a pipeline ban. I mean, 0:16:22.440 --> 0:16:25.440 what are the chances that we could see a pipeline 0:16:25.480 --> 0:16:29.960 ban eventually included in this agreement. Look, I think to me, 0:16:30.240 --> 0:16:33.800 the Hungarian resistance is a little bit overplayed. If I 0:16:33.800 --> 0:16:36.920 have to be honest with you, the Hungarian resistance, it's 0:16:37.000 --> 0:16:39.480 not about the impact on the market. This is a 0:16:39.600 --> 0:16:42.160 very small faction on the market. This was about the 0:16:42.160 --> 0:16:44.520 politics of it the European Union when it comes to 0:16:44.560 --> 0:16:47.360 Russia and the way they tackle Russia. They always like 0:16:47.440 --> 0:16:50.640 to do things unanimously. They don't want to show cracks 0:16:50.680 --> 0:16:54.440 in the union. For them, that unanimity and that union 0:16:54.640 --> 0:16:58.080 is very very important. So yes, there are some concessions 0:16:58.120 --> 0:17:01.120 made to Hungary. They continue still to use a huge 0:17:01.120 --> 0:17:05.399 pipeline that comes through from Russia. At presumably when we 0:17:05.480 --> 0:17:08.000 hear the full details, there will be some financial incentive 0:17:08.119 --> 0:17:10.760 to for them, and there's assurance that if something were 0:17:10.800 --> 0:17:13.200 to happen on the pipeline they would get a backup. 0:17:13.359 --> 0:17:18.120 But overall, you know, frankly, this Hungarian resistance, I think 0:17:18.320 --> 0:17:20.200 by now it's a little bit overplayed and it's a 0:17:20.200 --> 0:17:23.040 little bit overdone because what really matters is that you're 0:17:23.080 --> 0:17:25.920 looking at a full band by sea that's two thirds, 0:17:26.000 --> 0:17:28.800 and if a big country like Germany says we're committing 0:17:28.920 --> 0:17:32.320 to kinning out pipelines, that has a much bigger impact 0:17:32.560 --> 0:17:34.720 on the market. Again, it goes back to my earlier point. 0:17:34.960 --> 0:17:37.080 On the best case scenario, you could see a reduction 0:17:37.080 --> 0:17:40.640 of purchases for Russia, and this is a huge thing 0:17:40.800 --> 0:17:43.400 for the Russians, you know, it's a big buyer there. 0:17:43.440 --> 0:17:45.679 Essentially you're gonna lose and you have to find an 0:17:45.680 --> 0:17:48.960 alternative buyer who in this market. Of course, they're not 0:17:49.080 --> 0:17:52.040 stupid and they know Russian oil is tricky to manage, 0:17:52.119 --> 0:17:54.560 so they ask for a discount. So while this is 0:17:54.600 --> 0:17:59.560 being phased in Maria, what's being done to backstop energy 0:17:59.600 --> 0:18:02.720 supply is for Europe as this as this gets faced 0:18:02.760 --> 0:18:06.440 in look, I think, to me, what's interesting more than 0:18:06.520 --> 0:18:09.359 what's being done. It's kind of what isn't being done 0:18:09.640 --> 0:18:11.840 going forward? To me, it's very tending. When I spoke 0:18:11.920 --> 0:18:14.720 to the Belgian Prime Minister uh this morning and I 0:18:14.760 --> 0:18:17.600 asked him that question. You've done cold, you've done oil. 0:18:18.000 --> 0:18:20.520 Are we open now to gas? Is that the next 0:18:20.640 --> 0:18:23.720 frontier here? Remember this is always seen as the big 0:18:23.760 --> 0:18:26.760 Geo political weapon for Russia when it comes to the EU. 0:18:26.920 --> 0:18:30.479 And he told me quite candidly, quite frank, I don't 0:18:30.600 --> 0:18:32.800 think it's the time to go further, he told me, 0:18:32.920 --> 0:18:36.560 with this oil embargo, the full implications of it, the 0:18:36.600 --> 0:18:39.760 full significance, Let's just take time to digest what we've 0:18:39.760 --> 0:18:42.280 done and then we can look into anything else. But 0:18:42.480 --> 0:18:45.520 for the time being, he told me, we've kind of 0:18:45.560 --> 0:18:48.000 reached the limits on the energy sanctions. We need to 0:18:48.000 --> 0:18:50.800 take a box all right, So about thirty seconds left here, Maria, 0:18:50.880 --> 0:18:53.560 what's the next step here? Is there going to be 0:18:53.600 --> 0:18:55.840 a vote on this deal? Where where does it go 0:18:55.920 --> 0:18:59.760 from here? I think tomorrow it's more the technical aspect 0:19:00.040 --> 0:19:02.359 bit and just the final print that gets done not 0:19:02.480 --> 0:19:05.320 by the politicians but by all of the many officials 0:19:05.320 --> 0:19:07.840 and figures, so we don't see take the lame light, 0:19:07.960 --> 0:19:09.919 but they really work on the technic candory. So I 0:19:09.960 --> 0:19:13.160 think tomorrow it will be about the fine print, but overall, 0:19:13.240 --> 0:19:16.359 the overall arch of this is already agreed. All right, 0:19:16.400 --> 0:19:18.600 thanks as always for staying on top of all of this. 0:19:18.640 --> 0:19:24.000 As we've been watching this agreement on sanctions on Russian 0:19:24.080 --> 0:19:28.320 energy move forward in Brussels, Bloomberg's Maria Todale joining us 0:19:28.480 --> 0:19:31.520 live from the capital of the European Union. And as 0:19:31.520 --> 0:19:34.280 we look ahead to the market open here on Wall Street, 0:19:34.800 --> 0:19:38.239 futures are pointing to losses. We have SMP futures right 0:19:38.240 --> 0:19:41.080 now down twenty eight points down, futures down two to three, 0:19:41.200 --> 0:19:44.719 Nastack futures are lower by forty nine points. The tenure 0:19:44.760 --> 0:19:47.439 treasury is down twenty thirty seconds with the yield two 0:19:47.520 --> 0:19:51.240 point two and just looking at oil right now, nimex 0:19:51.280 --> 0:19:54.399 screwed up three point three percent or three dollars seventy 0:19:54.440 --> 0:19:57.280 seven sets trying to get a hundred eighteen dollars eighty 0:19:57.359 --> 0:20:02.080 four cents on the IMAX. You're listening to Bloomberg Daybreak. 0:20:07.400 --> 0:20:10.160 Every Daybreak is brought to you by Pepack Private Wealth Management. 0:20:10.200 --> 0:20:13.000 Pepack Private Wealth Management knows that the portfolio is more 0:20:13.040 --> 0:20:15.359 than a collection of assets, it's a path to your future. 0:20:15.480 --> 0:20:18.919 Visit Pepack Private dot com and begin your financial legacy today. 0:20:22.080 --> 0:20:26.600 Broadcasting live from the Bloomberg Interactive Broker Studio in New York, 0:20:26.720 --> 0:20:31.400 Bloomberg Living Free to Washington, d C. Bloomberg to Boston, 0:20:31.480 --> 0:20:35.400 Bloomberg one six one does San Francisco, Bloomberg Known sixteen 0:20:35.440 --> 0:20:38.240 to the country Sirius xm Chado one nine team, and 0:20:38.320 --> 0:20:41.680 around the globe the Bloomberg Business app and Bloomberg Radio 0:20:41.800 --> 0:20:50.639 dot Com. This is Bloomberg Daybreak at six thirty on 0:20:50.640 --> 0:20:53.880 Wall Street. Good Boarding. I'm Nathan Hagar and I'm Karen Moscow, 0:20:54.000 --> 0:20:56.280 and we're just about three hours away from the open 0:20:56.280 --> 0:20:58.320 of US trading. Time for the five things that you 0:20:58.359 --> 0:21:00.199 need to know to start your day. Brought to you 0:21:00.320 --> 0:21:03.719 by Interactive Brokers, global analyst. It helps you find new 0:21:03.720 --> 0:21:08.040 global investment opportunities to diversify your portfolio and discover undervalued 0:21:08.080 --> 0:21:11.639 companies that may have greater growth potential. Try ib k 0:21:11.920 --> 0:21:15.160 R Global Analysts Today at ibk R dot com slash 0:21:15.240 --> 0:21:17.960 g A. Now, at first, you begin with the oil, 0:21:18.000 --> 0:21:20.280 which is on the rise. This morning it is up 0:21:20.320 --> 0:21:22.960 three and a third percent. The game comes after European 0:21:23.040 --> 0:21:25.600 Union leaders agreed to seek a ban on imports of 0:21:25.640 --> 0:21:28.800 most Russian oil. Bloombarrus Maria Today OH has the latest 0:21:28.840 --> 0:21:32.000 from Brussels. When you look at the actual content, the 0:21:32.040 --> 0:21:35.040 Europeans say that on the best case scenario, if this 0:21:35.200 --> 0:21:38.000 deal is fully applied by the end of the year, 0:21:38.960 --> 0:21:43.520 of Russian oil exports coming into the European Union will 0:21:43.600 --> 0:21:47.560 essentially be shut off. Bloomers Maria Today O says EU 0:21:47.720 --> 0:21:50.520 leader has offered Hungary a guarantee that it will receive 0:21:50.640 --> 0:21:54.760 replacement supplies if pipelines were disrupted. Hungary have been blocking 0:21:54.760 --> 0:21:58.880 an embargo and will continue receiving Russian oil via pipeline. 0:21:58.760 --> 0:22:00.960 In response to that jump, at wealcare and stocks in 0:22:01.000 --> 0:22:04.600 Asia fluctuated and treasuries sold off across the curve. Well 0:22:04.680 --> 0:22:07.920 Nathan here in the US, Federal Reserve Governor Christopher Waller 0:22:08.000 --> 0:22:10.520 says he wants to keep raising interest rates and half 0:22:10.560 --> 0:22:14.560 percentage point steps until inflation is under control. He also 0:22:14.600 --> 0:22:18.639 believes reducing the Fed balance sheet could curb inflation. Athesis 0:22:18.680 --> 0:22:21.920 are highly in certain using a variety of mobs and assumptions. 0:22:22.280 --> 0:22:27.040 The O wall overall reduction in the balance sheet is 0:22:27.200 --> 0:22:29.600 estimated to be equivalent to a couple of twenty five 0:22:29.640 --> 0:22:34.639 basis radars, and Federal Reserve Governor Christopher Waller again cautioning 0:22:34.680 --> 0:22:37.760 those estimates were uncertain. He's spoken an event hosted by 0:22:37.800 --> 0:22:41.080 the Institute for Monetary and Financial Stability also this morning, 0:22:41.119 --> 0:22:44.200