WEBVTT - Bloomberg Daybreak: June 6, 2022 - Hour 1 (Radio) 0:00:02.600 --> 0:00:06.120 Live from the Bloomberg Interacted Brooker Studios is Bloomberg day 0:00:06.160 --> 0:00:10.400 Break for Monday, June six. Coming up, the shower stocks 0:00:10.480 --> 0:00:13.080 rise around the world as we begin a new trading week. 0:00:13.160 --> 0:00:16.239 Oil gains is Saudi Arabia, Racist prices in Asia more 0:00:16.280 --> 0:00:19.759 than expected. President Biden takes executive action to boost the 0:00:19.880 --> 0:00:23.080 U S. Solar industry, and UK Prime Minister Boris Johnson 0:00:23.079 --> 0:00:26.119 faces that key leadership vote. It was a deadly weekend 0:00:26.120 --> 0:00:28.800 of shootings as U S Senators work on gun reform. 0:00:28.960 --> 0:00:32.599 Plus primary elections take place in seven states tomorrow, including 0:00:32.600 --> 0:00:35.920 New Jersey. I'm Michael barr More an I'm John stash 0:00:35.960 --> 0:00:38.199 Owen sports a late goal live to Tampa Bay over 0:00:38.240 --> 0:00:40.879 the Rangers. The Warriors beat the Celtics, wins for the 0:00:40.880 --> 0:00:46.800 Mets and Yankees. That's all trading ahead on Bloomberg Daybreak 0:00:47.159 --> 0:00:51.480 on Bloomberg eleven, Free on New York, Bloomberg one, Washington, 0:00:51.600 --> 0:00:55.200 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:55.280 --> 0:00:59.080 sixties and Francisco Sirius x M one nine team and 0:00:59.160 --> 0:01:02.240 around the world on Bloomberg Radio dot Com and via 0:01:02.320 --> 0:01:09.520 the Bloomberg Business app. And Good Morning, I'm pared Moscow. 0:01:09.760 --> 0:01:13.040 I'm Nathan Heger. Bloomberg Daybreak is brought to you by Informattica. 0:01:13.160 --> 0:01:15.160 In the Cloud, your data has the power to do 0:01:15.240 --> 0:01:18.479 the extraordinary. Managed data across any location in the cloud 0:01:18.520 --> 0:01:23.119 for accurate and actionable insights. More at Informatica dot Com 0:01:23.160 --> 0:01:26.440 and US futures are higher this morning. It is five 0:01:26.520 --> 0:01:28.560 oh one on Wall Street and we check the markets 0:01:28.600 --> 0:01:31.319 every fifteen minutes throughout the trading day. On Bloomberg, S 0:01:31.360 --> 0:01:34.119 and P futures have about forty seven points now. Futures 0:01:34.160 --> 0:01:37.119 have two D eighty one. NAZAC futures have one hundred 0:01:37.200 --> 0:01:40.520 and nine ten year treasury down seven thirty seconds, yield 0:01:40.560 --> 0:01:42.720 two point nine five percent, and a yield on the 0:01:42.760 --> 0:01:45.839 two year two point six eight percent. Nine X Screwed 0:01:45.840 --> 0:01:48.960 oil is up three tenths of a percent. Nathan, Wellkaren, 0:01:49.000 --> 0:01:51.040 we are seeing a lift in markets as we begin 0:01:51.080 --> 0:01:53.440 a new trading week, helping to boost a sentiment in 0:01:53.520 --> 0:01:58.040 Asia Beijing reopening further from its COVID restrictions. Let's get 0:01:58.040 --> 0:02:01.520 the recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, 0:02:01.680 --> 0:02:04.160 Good morning, Nathan and Koura and Japanese equities are raised 0:02:04.160 --> 0:02:07.160 earlier losses, and Texas rose in Hong Kong following the 0:02:07.200 --> 0:02:10.360 long weekend, this after a gauge of Chinese companies traded 0:02:10.400 --> 0:02:12.880 in the US had risen two percent of the two 0:02:12.880 --> 0:02:16.240 trading sessions that Hong Kong had been closed. Stocks in 0:02:16.240 --> 0:02:20.040 Maitland China advanced as Beijing eased back COVID nineteen restrictions, 0:02:20.080 --> 0:02:23.200 also lifting the on Choi one. Australian stocks fell, bucking 0:02:23.200 --> 0:02:26.440 the trend ahead of an expected second consecutive interest rate 0:02:26.440 --> 0:02:29.880 increased Tuesday, while Swiss Bank UBS said buying the Ozzie 0:02:29.919 --> 0:02:34.880 Dolla is a phenomenal trade in Singapore. Juliette Sally Bloomberg Daybreak, 0:02:35.000 --> 0:02:37.320 All right, Juliet, thank you all. Oil is also on 0:02:37.360 --> 0:02:40.000 the rise this morning, approaching a hundred twenty dollars of 0:02:40.080 --> 0:02:43.600 barrel Saudi Arabia signaling confidence and demand for oil. The 0:02:43.720 --> 0:02:47.360 Kingdom raised prices more than expected for Asian customers and 0:02:47.400 --> 0:02:50.760 again more from Bloomberg Markets Live editor Heather Burke, so 0:02:50.919 --> 0:02:54.079 Do Arabia signaled confidence with the demand um with the 0:02:54.240 --> 0:02:57.840 bigger than expected price increases, It's screwed for Asia and 0:02:58.000 --> 0:03:02.000 overall we're seeing improve in demand picture. Um, we're heading 0:03:02.000 --> 0:03:06.000 into peak summer driving season, and also in China, which 0:03:06.040 --> 0:03:08.800 is the top crude buyer. They um they continue to 0:03:08.880 --> 0:03:12.360 eat COVID restrictions. We should also help the demand side 0:03:12.600 --> 0:03:16.720 of oil and Bluebird Markets Live editor heatherir Burke says 0:03:16.760 --> 0:03:19.840 oil is rallied almost six this year. Checking prices right 0:03:19.840 --> 0:03:21.680 now and not make screwded oil at three tenths per 0:03:21.680 --> 0:03:24.280 center thirty three cents and a hundred nineteen twenty one 0:03:24.320 --> 0:03:27.160 cents of barrel Brent is up to tenths percent is 0:03:27.160 --> 0:03:30.160 in a hundred nineteen two cents. Well, oil has certainly 0:03:30.200 --> 0:03:32.760 been a major factor in the rise of inflation. Karen 0:03:32.840 --> 0:03:36.160 and now President Biden's Commerce chief Gina Romando says it 0:03:36.240 --> 0:03:39.400 may make sense to lift tariffs on some imported products 0:03:39.440 --> 0:03:43.400 to help ease higher prices steel and aluminum. We've decided 0:03:43.480 --> 0:03:45.880 to keep some of those tariffs because we need to 0:03:45.880 --> 0:03:48.960 protect American workers and we need to protect our our 0:03:49.080 --> 0:03:52.240 steel industry. That's a matter of national security. There are 0:03:52.280 --> 0:03:57.120 other products, um, you know, household goods, bicycles, et cetera. Uh, 0:03:57.320 --> 0:04:00.560 and it may make sense. Commerce Secretary Gena Mondo made 0:04:00.560 --> 0:04:03.720 the comments on CNN. Over the weekend, ball Street is 0:04:03.800 --> 0:04:05.920 racing for a key report on inflation. We get the 0:04:05.960 --> 0:04:09.840 story from Bloomberg's Vinnie Down Judas. The Labor Department will 0:04:09.880 --> 0:04:12.880 the shoe May's consumer price index on Friday. Economists say 0:04:12.880 --> 0:04:15.600 that you over your inflation rate will continue near historic 0:04:15.680 --> 0:04:19.159 levels topping eight percent. A major driver in May record 0:04:19.200 --> 0:04:22.279 petroleum costs in addition to the sustained run up another 0:04:22.320 --> 0:04:25.800 household stables. Also on this week's date agenda, University of 0:04:25.800 --> 0:04:29.159 Michigan figures and consumer sentiment. Sentiment has been running low 0:04:29.360 --> 0:04:32.840 as the quest of living runs high. Judas Bloomberg day break. 0:04:32.880 --> 0:04:35.000 All right, Vinney, thank you. We're getting a new word 0:04:35.000 --> 0:04:37.479 from Goldman Sachs at the u S economy remains on 0:04:37.520 --> 0:04:40.240 a narrow path to a soft landing. Let's get more 0:04:40.240 --> 0:04:42.080 on that life from Bloomberg's We need a young Good 0:04:42.080 --> 0:04:45.840 Morning Grin Good Morning, Nathan Goldman says improving inflation numbers 0:04:45.839 --> 0:04:48.520 and other factors suggest that the Fed may be able 0:04:48.560 --> 0:04:51.599 to pull off its aggressive rate hike plan without tipping 0:04:51.600 --> 0:04:55.400 the country into a recession. Goldman economists say sequential core 0:04:55.400 --> 0:04:58.480 inflation appears to be slowing, and pressures on the supply 0:04:58.600 --> 0:05:01.400 chain are improving and as signs of softening in the 0:05:01.520 --> 0:05:05.080 job markets emerge. But the econdomists say while the deterioration 0:05:05.160 --> 0:05:09.080 and indicators like the first quarters GDP contraction suggests near 0:05:09.200 --> 0:05:13.480 term recession risk risk has increased, other measures show output 0:05:13.640 --> 0:05:16.479 is still expanding. Live in New York. I'm gonna need 0:05:16.520 --> 0:05:18.400 a Young Bloomberg day break. All right, we need to 0:05:18.480 --> 0:05:20.880 thank you at least I have. Of a dozen central 0:05:20.880 --> 0:05:23.880 banks are expected to raise interest rates this week. Meanwhile, 0:05:23.880 --> 0:05:27.240 the European Central Bank is predicted to finally join the 0:05:27.240 --> 0:05:31.200 global tightening bandwagon, with policymakers on Thursday expected to announce 0:05:31.240 --> 0:05:34.360 an end to bond purchases and formally begin the countdown 0:05:34.400 --> 0:05:38.240 to an increase in borrowing costs in July. In Europe, Karen, 0:05:38.240 --> 0:05:41.240 the future of Boris Johnson is in focus as he 0:05:41.279 --> 0:05:45.080 faces a leadership vote in his ruling Conservative Party. Let's 0:05:45.120 --> 0:05:47.040 go live to London and get the very latest on 0:05:47.120 --> 0:05:50.400 that with Bloomberg's Ein Potts. Good morning, Good morning, Nathan 0:05:50.400 --> 0:05:53.520 and Karen. After months of speculation, at eight am outside 0:05:53.520 --> 0:05:55.560 the British House of Parliament, it was announced that the 0:05:55.560 --> 0:05:58.200 Prime Minister is the face of votes of confidence in 0:05:58.240 --> 0:06:02.080 his leadership. This off the fis of lawmakers from Boris 0:06:02.120 --> 0:06:05.599 Johnson's own Conservative party called for the votes. The pms 0:06:05.600 --> 0:06:08.080 be under five for a series of illegal gatherings at 0:06:08.120 --> 0:06:11.360 Downing Street during the COVID lockdowns. The votes on Johnson's 0:06:11.360 --> 0:06:14.320 future will conclude at eight pm London time, and he 0:06:14.360 --> 0:06:16.800 needs the support of at least half of lawmakers to 0:06:16.880 --> 0:06:19.760 keep his position in London. I'm your part Spoomberg Daybreak, 0:06:20.000 --> 0:06:21.600 Right you and thank you. Back here in the US, 0:06:21.680 --> 0:06:24.480 President Biden will take executive action to boost the U 0:06:24.600 --> 0:06:28.800 s solar industry. Bloomberg's Amy Morris has deta answermer newsroom 0:06:28.880 --> 0:06:32.520 in Washington. Sources tell Bloomberg News the President plans to 0:06:32.560 --> 0:06:36.200 invoke the Defense Production Act to provide support for US 0:06:36.279 --> 0:06:39.680 made solar panels, while announcing a two year hald on 0:06:39.800 --> 0:06:43.440 new solar tariffs now that would allow domestic developers to 0:06:43.560 --> 0:06:47.320 use the foreign equipment while US manufacturing ramps up. The 0:06:47.320 --> 0:06:49.839 White House is also set to use the federal government's 0:06:49.839 --> 0:06:54.159 purchasing power to help support American clean energy manufacturers. The 0:06:54.160 --> 0:06:57.640 announcement could come as early as today. In Washington, I'm 0:06:57.680 --> 0:07:00.400 Amy Morris, Bloomberg Daybreak, All right, Amy. Thanks. And finally, 0:07:00.440 --> 0:07:04.239 Starbucks is looking at external candidates only for its next CEO. 0:07:04.440 --> 0:07:07.200 That's according to interim chief executive Howard Schultz. He tells 0:07:07.240 --> 0:07:09.279 the Wall Street Journal the coffee chain needs to add 0:07:09.320 --> 0:07:12.400 new talented skills to its leadership ranks. Schultz is in 0:07:12.480 --> 0:07:14.840 his third stint running Starbucks, but he says he is 0:07:14.880 --> 0:07:18.120 not a candidate for the full time job. You're listening 0:07:18.120 --> 0:07:24.640 to Bloomberg Daybreak. It's sound five oh seven on Wall 0:07:24.680 --> 0:07:27.120 Street where at sixty four degrees in Central Parks. Still 0:07:27.120 --> 0:07:29.520 got some lingering road construction. He spound two eighty bags 0:07:29.560 --> 0:07:31.400 at seven and West Orange. We'll get the details on 0:07:31.440 --> 0:07:33.800 that for you in traffic shortly. Michael Barr is here 0:07:33.840 --> 0:07:35.600 first with war on what's going on in New York 0:07:35.640 --> 0:07:38.240 and around the world. Good morning, Michael, Good morning Nathan. 0:07:38.280 --> 0:07:41.200 A deadly weekend of shootings in the US and several 0:07:41.240 --> 0:07:44.640 states left about a dozen people dead. In Philadelphia, three 0:07:44.640 --> 0:07:48.120 people were killed and eleven wounded into shooting. Philadelphia Police 0:07:48.160 --> 0:07:51.400 Commissioner Danielle Outlaws says they are looking for the shooter 0:07:51.440 --> 0:07:54.000 who fled on foot. We're working with our local, state, 0:07:54.040 --> 0:07:56.480 and federal partners to make sure that no lead is 0:07:56.560 --> 0:08:01.320 lost and that no stone remains unturned. Commissioner outlaws as 0:08:01.320 --> 0:08:04.720 authorities are offering a twenty tho dollar reward for information 0:08:04.840 --> 0:08:07.600 leading to the arrest of the shooter. A shooting near 0:08:07.760 --> 0:08:11.160 a Chattanooga nightclub left three dead. Police say fourteen were 0:08:11.200 --> 0:08:14.600 shot and three others were hit by vehicles. Chattanooga Mayor 0:08:14.640 --> 0:08:17.600 Tim Kelly, I've been an avid hunter and a marksman 0:08:17.640 --> 0:08:19.760 all my life, and I want to say clearly a 0:08:19.840 --> 0:08:24.200 fully responsible I fully support rather responsible gun owner show. 0:08:24.560 --> 0:08:26.960 The Congress needs to do their jobs and past common 0:08:27.040 --> 0:08:31.119 sense regulations that will help stop this nonsense. Mayor Kelly 0:08:31.160 --> 0:08:34.160 implored parents to keep track of their children, especially if 0:08:34.200 --> 0:08:38.239 they are suspect to carrying a gun. Meanwhile, a bipartisan 0:08:38.240 --> 0:08:41.120 group of US Senators say gun talks are inching forward, 0:08:41.160 --> 0:08:44.319 though a deal is far from assured. Officials fear more 0:08:44.320 --> 0:08:48.319 than fifteen people were killed in southwestern Nigeria when gunman 0:08:48.360 --> 0:08:51.720 burst into a Catholic church during mass, opening fire and 0:08:51.760 --> 0:08:56.079 detonating explosives. So far, no one has claimed responsibility. Primary 0:08:56.120 --> 0:08:59.040 elections in New Jersey and six other states will take 0:08:59.080 --> 0:09:02.200 place tomorrow will set the stage for US House and 0:09:02.240 --> 0:09:05.160 send it battles this fall that will play into control 0:09:05.240 --> 0:09:08.760 of Congress. Many contests are being shaped by political divisions 0:09:08.760 --> 0:09:11.800 in both major parties and the shadow of former President 0:09:11.800 --> 0:09:16.240 Donald Trump. In New Jersey's GOP primary, Tom Malinowski one 0:09:16.320 --> 0:09:19.880 by fewer than two percentage points, and his district has 0:09:19.920 --> 0:09:23.679 become slightly more Republican since new congressional district lines were 0:09:23.679 --> 0:09:26.960 set last year. The US and South Korea launched eight 0:09:26.960 --> 0:09:30.080 missiles in response to North Korea. Yesterday at the North 0:09:30.120 --> 0:09:33.599 test fired eight missiles. Global News twenty four hours a 0:09:33.720 --> 0:09:36.640 day on air and on Bloomberg Quick Take, powered by 0:09:36.679 --> 0:09:39.160 more than twenty seven hundred journalists antalists more than a 0:09:39.200 --> 0:09:42.959 hundred twenty countries. Michael Barrn this is Bloomberg, Nathan. Michael 0:09:42.960 --> 0:09:49.520 thanks five o nine on Wall Street time for the 0:09:49.520 --> 0:09:53.000 Bloomberg Sports Updated. Morney, John Sesshaw, every Morney. Nathan. Rangers 0:09:53.000 --> 0:09:56.880 fans probably not realistically expect that series sweep of Tampa 0:09:56.880 --> 0:09:58.760 bayl though id likely after their minds when the Rangers 0:09:58.760 --> 0:10:00.640 scored two power play goals in the second period and 0:10:00.720 --> 0:10:02.760 led Game three to not think, but the Lightning came 0:10:02.800 --> 0:10:05.040 back two power play goals of their own and then 0:10:05.080 --> 0:10:07.720 in the final minute, the first and only five on 0:10:07.920 --> 0:10:10.920 five goal of the game, shoot save me if by 0:10:11.040 --> 0:10:14.280 the circuit rebound the turnack right point left point head 0:10:14.280 --> 0:10:22.400 been Class A speed plot FO one w f l 0:10:22.480 --> 0:10:24.760 A and Tampa Lightning won three two. Rangers now lead 0:10:24.760 --> 0:10:27.640 the series to one game four s Game two of 0:10:27.640 --> 0:10:30.319 the NBA Finals, Warriors dominated the third quarter. That was 0:10:30.360 --> 0:10:33.080 the difference. They beat the Celtics one oh seven eighty 0:10:33.080 --> 0:10:36.040 eight type of series and one. Quince Snyder resigned after 0:10:36.120 --> 0:10:38.120 eight years as the coach of the Utah Jazz Mets. 0:10:38.160 --> 0:10:39.959 In l A trail. The early scored three rounds of 0:10:40.000 --> 0:10:42.040 the eighth anywhere one out from victory bottom of the 0:10:42.080 --> 0:10:44.520 ninth with the Dodgers tied the game, Mets still won 0:10:44.640 --> 0:10:47.000 five for and ten, so they gained a split of 0:10:47.000 --> 0:10:48.920 the four game set. After they dropped the first two. 0:10:48.960 --> 0:10:52.600 They played tonight in San Diego. Yankees are off they liked. 0:10:52.600 --> 0:10:55.760 The Mets also won five four tennantings after Detroit tied 0:10:55.800 --> 0:10:57.800 the game of the eighth of John Donaldson Zack flying 0:10:57.840 --> 0:11:00.880 the tenth, and the Yanks sweep the x game homestand 0:11:00.920 --> 0:11:03.480 a third of the way through the season. Yankees are 0:11:03.520 --> 0:11:06.640 thirty nine and fifteen. It's the best record any MLB 0:11:06.800 --> 0:11:09.200 team has had at this point in the last twenty 0:11:09.200 --> 0:11:12.400 one years. Make it fourteen French Open titles. Paraphi on 0:11:12.440 --> 0:11:15.040 the Douts went the two Grand Slams. That's two more 0:11:15.080 --> 0:11:18.280 than Roger Federer and go Back Tokovich. Billy Orsol won 0:11:18.320 --> 0:11:21.920 the Memorial Galpin Ohio by four shots. John Stashoward Bloomberg 0:11:21.960 --> 0:11:25.520 Sport okay, John, thanks so. After ending last week with losses, 0:11:25.600 --> 0:11:28.560 futures are pointing two gains as we kick off a 0:11:28.600 --> 0:11:32.680 new trading week dominated by inflation ratings. Right now, SMP 0:11:32.840 --> 0:11:35.160 futures are up forty five point, Stown futures up two 0:11:35.200 --> 0:11:37.960 hundred seventy two, NASTACK futures are higher by a hundred 0:11:38.000 --> 0:11:41.440 eighty five points. The tenure treasury is down six thirty seconds. 0:11:41.440 --> 0:11:43.600 The yield two point nine five percent. You'ld on the 0:11:43.640 --> 0:11:46.480 two year two point six eight nime X Scrude is 0:11:46.559 --> 0:11:49.160 hired by three tenths per cent, forty two cents hired 0:11:49.200 --> 0:11:52.640 a hundred nineteen dollars twenty six cents a barrel, and 0:11:52.840 --> 0:11:55.360 come X gold is up two tenths percent At eighteen 0:11:55.440 --> 0:11:57.880 fifty four. Ten announced we'll get you set for the 0:11:57.880 --> 0:12:00.640 new trading week. Next Dennis Gartman, the former publisher of 0:12:00.679 --> 0:12:03.200 the Gartman Letter, is with us in just a few minutes. 0:12:03.240 --> 0:12:08.959 This is Bloomberg Bloomberg eleven three oh weather. Lots of 0:12:09.040 --> 0:12:11.760 sunshine today with a high near eighty degrees upper seventies 0:12:11.800 --> 0:12:14.720 and partly sunny Tomorrow. Showers and storms likely Wednesday with 0:12:14.760 --> 0:12:17.480 highs in the upper seventies. Right now sixty four degrees 0:12:17.559 --> 0:12:24.839 in Central Park. Markets. Headlines and breaking news twenty four 0:12:24.880 --> 0:12:27.920 hours a day at Bloomberg dot com, the Bloomberg Business 0:12:27.920 --> 0:12:31.600 at and at Bloomberg Quick Tape. She's a Bloomberg business 0:12:31.600 --> 0:12:40.280 flash and I'm pared. Moscow Stocks in Europe are gaining 0:12:40.280 --> 0:12:43.400 along with US stock index futures as Beijing further eases 0:12:43.480 --> 0:12:46.600 COVID restrictions, helping to soothe a fragile mood of bit 0:12:46.679 --> 0:12:50.120 inflation and rate high concerns, treasuries and the dollars slipping. 0:12:50.120 --> 0:12:52.480 We checked the markets every fifteen minutes throughout the trading 0:12:52.559 --> 0:12:55.280 day on Bloomberg S and P futures of forty five 0:12:55.280 --> 0:12:57.720 points to death features of two hundred seventy five nast 0:12:57.800 --> 0:13:00.560 day features of one hundred seventies seven the decks in 0:13:00.640 --> 0:13:04.000 Germany's of one percent ten year treasury down seven thirty 0:13:04.000 --> 0:13:06.280 seconds held two point nine five percent. They yield on 0:13:06.360 --> 0:13:09.360 the two year two point six eight percent. Nimex screwed 0:13:09.360 --> 0:13:11.520 oils at three ten percent or forty one cents and 0:13:11.600 --> 0:13:14.360 a hundred nineteen dollars twenty nine cents a barrel. Comics 0:13:14.400 --> 0:13:16.680 goold of a quarter percent or four dollars seventy cents 0:13:16.679 --> 0:13:19.559 at eighteen fifty four and ninety announce the euro one 0:13:19.559 --> 0:13:21.920 point oh seven for eight against the dollar, British pound 0:13:21.960 --> 0:13:24.600 one point to five seven one and the yen one 0:13:24.679 --> 0:13:27.600 thirty point seven three and Bitcoin this morning of five 0:13:27.640 --> 0:13:30.760 percent at thirty one thou four hundred dollars. That's a 0:13:30.800 --> 0:13:33.480 Bloomberg business flash. Now here's Michael Barr with Moore on 0:13:33.600 --> 0:13:36.960 what's going on around the world. Buncle, good morning, Good morning, Cameron. 0:13:37.000 --> 0:13:40.000 Boris Johnson could be housked it as Britain's Prime Minister. 0:13:40.440 --> 0:13:43.440 He's facing an old confidence vote in his Conservative party 0:13:43.800 --> 0:13:47.360 after he had rule breaking parties during the COVID lockdown. 0:13:47.880 --> 0:13:51.160 Lawmakers in Washington say they're more hopeful than ever that 0:13:51.240 --> 0:13:56.040 bipartisan negotiations on gun reform will finally get somewhere. Meanwhile, 0:13:56.080 --> 0:13:59.520 there were several mash shootings over the weekend. The Warriors 0:13:59.600 --> 0:14:02.040 even the NBA Finals in a game of peace after 0:14:02.080 --> 0:14:05.480 beating the Celtics in Game three of the NHL East Final. 0:14:05.559 --> 0:14:08.480 The Rangers lost to the Lightning three too. In baseball, 0:14:08.520 --> 0:14:11.600 the Yankees and Mets one, the Red Sox beat the A's, 0:14:11.640 --> 0:14:15.520 the Orioles lost the Nationals and Giants. One. Global News 0:14:15.559 --> 0:14:18.280 twenty four hours a day on air and on Bloomberg 0:14:18.360 --> 0:14:21.440 Quick Take, powered by more than twenty seven hundred journalists 0:14:21.440 --> 0:14:24.000 and analysts, are more than a hundred twenty countries. Michael 0:14:24.080 --> 0:14:26.920 Barr And this is Bloomberg. Nathan, Okay, Michael. Thanks, It's 0:14:26.960 --> 0:14:29.960 five nineteen on Wall Street Live from the Bloomberg Interactive 0:14:30.000 --> 0:14:33.080 Brokers Studios. This is Bloomberg Daybreak. As we get ready 0:14:33.120 --> 0:14:35.680 to kick off another trading week. We are joined this 0:14:35.720 --> 0:14:38.640 morning for the hour by Dennis Gartman, chairman of the 0:14:38.720 --> 0:14:42.160 University of acron Endowman Investment Committee, former publisher of the 0:14:42.200 --> 0:14:44.840 Gartment Letter. Dennis, it's always great to speak with you. 0:14:44.960 --> 0:14:48.680 We are seeing a rally for equities around the world 0:14:48.920 --> 0:14:53.120 on China, dialing back some of its COVID restrictions. Does 0:14:53.160 --> 0:14:57.440 that give you confidence in this market? Not particularly. I mean, 0:14:57.600 --> 0:14:59.880 we are seeing some strength this morning. It's it's it's 0:15:00.080 --> 0:15:01.920 the surprising to me, to be quite honest, and for 0:15:01.960 --> 0:15:04.280 the first time in quite some period of time for 0:15:04.360 --> 0:15:07.040 my own account, I actually went marginally and I mean 0:15:07.080 --> 0:15:10.200 marginally net short on Friday. We'll see if that works 0:15:10.320 --> 0:15:12.280 right now. I'm behind just a tad and I mean 0:15:12.400 --> 0:15:16.120 just a tad and predicated upon the fact that China 0:15:16.200 --> 0:15:20.960 is in fact, uh, reducing its restrictions, which is long overdue. 0:15:20.960 --> 0:15:22.800 They should have done this quite some period of time ago. 0:15:22.920 --> 0:15:26.320 So you're you're getting a rebound in stock prices around 0:15:26.320 --> 0:15:30.080 the world predicated upon Chinese easing their restrictions. I think 0:15:30.080 --> 0:15:33.080 it's a little overdone. We'll see right now. As I said, 0:15:33.120 --> 0:15:36.320 I'm marginally net short, and I mean marginally, so so 0:15:36.440 --> 0:15:38.680 let's let's see how that works. What makes you think 0:15:38.720 --> 0:15:41.160 that it's overdone at this point? I mean, isn't that 0:15:41.720 --> 0:15:44.920 the idea that China could be dialing back restrictions could 0:15:45.000 --> 0:15:48.280 have some implications for the supply chain down the road. Well, 0:15:48.360 --> 0:15:51.400 let's hope, uh, And obviously if I'm wrong that that 0:15:51.480 --> 0:15:54.480 will be the reason why I'm wrong, Uh, there's clearly 0:15:54.520 --> 0:15:56.520 the supply chain is doing a little bit better. To 0:15:56.520 --> 0:15:59.320 look at the number of tankers that are in ships 0:15:59.360 --> 0:16:02.320 that are outside the long Beach here in southern Regina, 0:16:02.560 --> 0:16:04.880 the number of ships that are outside our our harbor 0:16:05.240 --> 0:16:07.960 have been reduced. So the supply chain is. The problems 0:16:08.000 --> 0:16:09.840 in coming in the supply chain that have been so 0:16:10.800 --> 0:16:13.360 pervasive over the course of the past six seven, eight, nine, 0:16:13.400 --> 0:16:15.720 ten months, a year and a half or so are 0:16:15.880 --> 0:16:18.800 are being alleviated. And let us hope that and I 0:16:18.880 --> 0:16:22.640 would hope that the lifting of restrictions in China would 0:16:22.680 --> 0:16:26.800 be uh long term amenable to economic activity. We'll see. 0:16:26.920 --> 0:16:29.080 Time shall tell, But as I said, I'm marginally that 0:16:29.200 --> 0:16:32.120 shortened right now. I'm I'm to be quite honest, I'm 0:16:32.120 --> 0:16:35.400 wrong for the day, all right. Well, we also got 0:16:35.440 --> 0:16:38.440 some insight from Goldman Sacks strategist saying that they see 0:16:38.440 --> 0:16:42.120 a narrow path for the FED to avoid a recession, 0:16:42.240 --> 0:16:44.720 but while raising interest rates the narrow path for a 0:16:44.760 --> 0:16:48.400 soft landing. What's your view on the impact of FED 0:16:48.480 --> 0:16:52.800 tightening on this economy going forward. I think that's portant 0:16:52.800 --> 0:16:54.920 to understand that we're gonna have at least three fifty 0:16:54.920 --> 0:16:59.440 basis point increases. Um, the president of the Cleveland FAD, 0:16:59.440 --> 0:17:01.000 who has been one of the most bariosh members of 0:17:01.040 --> 0:17:03.360 the voting members of the f MC, said that she 0:17:03.440 --> 0:17:07.399 expects to see fifty basis points through the September meeting. Uh, 0:17:07.400 --> 0:17:09.680 we're there there. It's clear that they're tightening. But I 0:17:09.720 --> 0:17:12.720 think what's far more raising the overnight said funds rate 0:17:13.119 --> 0:17:14.720 is what they do to the balance sheet. We'll see 0:17:14.720 --> 0:17:16.600 what On Friday. I think we get a report on 0:17:16.640 --> 0:17:19.080 the size of the Fed's balance sheet. Again, we'll see 0:17:19.080 --> 0:17:21.239 if they're allowing the balance sheet to run off. They 0:17:21.280 --> 0:17:23.639 need to. The fact that they've taken the over the 0:17:24.160 --> 0:17:26.920 balance sheet from what nine billion to nine trillion in 0:17:26.960 --> 0:17:29.440 the course of the decade, that's to me, is far 0:17:29.520 --> 0:17:32.960 more important than than than the level of interest rates 0:17:32.960 --> 0:17:35.320 of the overnight said funds rate. We'll see if they're 0:17:35.359 --> 0:17:39.080 allowing the the the balance sheet to run off. Hopefully 0:17:39.119 --> 0:17:42.560 they are. They've got years that they have to accomplish 0:17:42.600 --> 0:17:44.200 this task, and it's going to take a long period 0:17:44.200 --> 0:17:46.240 of time. They're taking money out of the system that 0:17:46.359 --> 0:17:49.160 had been flooding in the system for the past decade. 0:17:49.520 --> 0:17:52.040 I think I think that's the major reason why stock 0:17:52.119 --> 0:17:53.840 prices have been as strong as they have been for 0:17:53.880 --> 0:17:56.639 the past several years. And the fact that they're taking 0:17:56.640 --> 0:17:59.399 that fuel away, to me, is barious in the long 0:17:59.480 --> 0:18:01.400 run for the for the stock market. So we'll see. 0:18:01.400 --> 0:18:03.320 Time shall tell. So where are you looking for bond 0:18:03.359 --> 0:18:06.080 fields to go? As the FED does start to unwind 0:18:06.080 --> 0:18:09.920 the balance sheet, probably marginally higher. We might get the 0:18:10.000 --> 0:18:12.920 ten year, which is what now on the ten year, 0:18:13.320 --> 0:18:14.960 We might go to three fifty over the course of 0:18:14.960 --> 0:18:17.280 the next two years or so. I doubt that we'll 0:18:17.280 --> 0:18:19.720 go much beyond that. I think what's really more important 0:18:19.760 --> 0:18:21.719 is what happens to the to the very short end 0:18:21.720 --> 0:18:24.520 of the curve. We actually have fives above tens for 0:18:24.520 --> 0:18:27.440 the first time. They're basically a parody. But the five 0:18:27.520 --> 0:18:31.040 year for a couple of hours on Friday traded through 0:18:31.119 --> 0:18:34.400 the ten year. We'll see if that inversion continues. Everybody's 0:18:34.440 --> 0:18:37.480 watching twos versus tens. I watched five versus tens, and 0:18:37.520 --> 0:18:39.600 the fact that the curve is inverted the tad is 0:18:39.680 --> 0:18:43.439 to me that's important. Inverted heel curves are never beneficial, 0:18:43.600 --> 0:18:47.639 always detrimental, always harbingers of recession, and I think that 0:18:47.640 --> 0:18:50.240 we're going to get a a modest recession. I think 0:18:50.240 --> 0:18:52.200 we're actually going to be in it by the third 0:18:52.280 --> 0:18:54.560 quarter of this year. So we'll see time she'll tell again, 0:18:54.800 --> 0:18:56.880 all right, Dennis Gartman with us for the full hour 0:18:57.000 --> 0:19:00.760 here on Bloomberg Daybreak. We're gonna get more oots from Dennis, 0:19:00.840 --> 0:19:04.880 especially on the path for inflation, uh as we look 0:19:04.920 --> 0:19:08.640 ahead to the release of the May Consumer Price Index 0:19:08.960 --> 0:19:11.719 coming out later on this week, actually on Friday, and 0:19:11.760 --> 0:19:14.399 what that could mean potentially for federal reserve policy. So 0:19:14.440 --> 0:19:17.240 looking forward to checking back in with Dennis Gartman, former 0:19:17.240 --> 0:19:19.520 publisher of the Gartment Letter, now the chairman of the 0:19:19.560 --> 0:19:23.840 University of Akron Endowment Investment Committee. As Bloomberg Daybreak continues 0:19:23.920 --> 0:19:27.040 here on this Monday morning, where we're seeing futures on 0:19:27.119 --> 0:19:31.399 the rise on China dialing back some of those COVID restrictions. 0:19:31.400 --> 0:19:33.920 We have SMP futures right now up forty four points 0:19:33.960 --> 0:19:36.000 again at one point one percent down futures up two 0:19:36.400 --> 0:19:39.640 seventy one NASDAC futures leading the games this morning. They're 0:19:39.680 --> 0:19:42.040 hired by a hundred seventy eight points. That is a 0:19:42.119 --> 0:19:45.240 gain of one point four percent right now. The tenure. 0:19:45.280 --> 0:19:47.880 Treasury is down seven thirty seconds, the yield two point 0:19:47.960 --> 0:19:49.960 nine six percent and the yield on the two year 0:19:50.320 --> 0:19:54.120 two point six eight percent. Just ahead, the Biden administration 0:19:54.160 --> 0:19:56.760 opens the door to lifting some tariffs and more on 0:19:56.880 --> 0:20:00.879 Goldman Sex idea of a narrow path to a soft landing. 0:20:01.280 --> 0:20:04.160 Top stories of the morning. Just ahead on Bloomberg Daybreak, 0:20:07.480 --> 0:20:09.840 Blomberg eleven three oh weather. Lots of sunshine to start 0:20:09.880 --> 0:20:11.440 off the week with a high near eighty degrees that 0:20:11.480 --> 0:20:14.520 will be partly sunny, upper seventies Tomorrow. Showers and storms 0:20:14.560 --> 0:20:17.439 likely by Wednesday, with highs in the upper seventies. Currently 0:20:17.480 --> 0:20:27.240 sixty four in Central Park. Broadcasting live from the Bloomberg 0:20:27.320 --> 0:20:30.840 Interactive Broker's studio in New York. Bloomberg E living free 0:20:30.920 --> 0:20:34.320 on to Washington, d C, Bloomberg ninety nine one to Boston, 0:20:34.440 --> 0:20:37.840 Bloomberg one oh six one to San Francisco, Bloomberg nine 0:20:37.920 --> 0:20:40.800 six to the Country, Sirius XM too one nine T 0:20:41.119 --> 0:20:44.280 and around the globe the Bloomberg Business Act. In Bloomberg 0:20:44.359 --> 0:20:54.080 Radio dot Com. This is Bloomberg Daybreak is five thirty 0:20:54.119 --> 0:20:57.480 on Wall Street. Good Morning. I'm Nathan Hager, and I'm Karen, Moscow. 0:20:57.520 --> 0:20:59.600 We're just about four hours away from the open of 0:20:59.640 --> 0:21:01.240 view West Trading. Let's get you up to date of 0:21:01.280 --> 0:21:03.280 the news you need to know. At this hour, we're 0:21:03.280 --> 0:21:05.760 seeing a lift in markets to begin a new trading week, 0:21:05.760 --> 0:21:08.880 with a boost from Asia. Beijing is reopening further from 0:21:08.880 --> 0:21:12.679 its COVID restrictions, raising stocks, and China Japanese equities are 0:21:12.720 --> 0:21:15.399