Speaker 1: Live from the Bloomberg Interactor Berger Studios is his Bloomberg
Speaker 1: Daybreak for a Tuesday. Coming up this hour, US Futures
Speaker 1: sank his earnings from snaps and big Tech lower. Christie
Speaker 1: mcguard weighs in on monetary policy, saying she won't rush
Speaker 1: into a drawing stimulus US primaries and focus again as
Speaker 1: contest that Georgia could show Donald Trump's influence on the GOP.
Speaker 1: The gunman in a deadly subway shooting in New York
Speaker 1: remains on the loops. Plus, Texas Governor Rabbits says Moore
Speaker 1: is needed to stop the flow of migrants. I'm Michael Barre.
Speaker 1: More ahead, ib Scott Edinburg. The Yankees shopped their third scrape.
Speaker 1: That Mets win big outrest, I'll have that in more
Speaker 1: coming up in sports. That's all training Ahead on Bloomberg
Speaker 1: Daybreak on Bloomberg eleven three on New York, Bloomberg one, Washington,
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty,
Speaker 1: San Francisco, Sirius x M one nineteen and around the world.
Speaker 1: Old on Bloomberg Radio dot Com and via the Bloomberg
Speaker 1: Business App. And good Morning. I'm Kared Moscow Gim, John
Speaker 1: Tucker Bloomberg Day Break being brought to you by B
Speaker 1: N Y Melon Pershing's Inside Conference back in person June
Speaker 1: fifteenth through the seventeenth at the Gaylord Resort in Grapevine, Texas.
Speaker 1: Don't miss it. Register now at Insight dot B and
Speaker 1: y Melon dot com. And futures are lower this morning
Speaker 1: six o one on Wall Street. We check the markets
Speaker 1: every fifteen minutes throughout the trading day on Bloomberg. Right now,
Speaker 1: SNP futures are down forty eight points down. Futures down
Speaker 1: two hundred sixty five. Nasday futures down two hundred and eleven.
Speaker 1: The ten year treasury up thirteen thirty seconds, the Yale
Speaker 1: two point eight zero percent, and they yield on the
Speaker 1: two year two point five seven percent. NIMEX Screwede oil
Speaker 1: is down a third or thirty nine cents at a
Speaker 1: hundred nine dollars ninety cents of barrel and Bitcoin this
Speaker 1: morning is little change at twenty nine thousand, three hundred dollars,
Speaker 1: John Karen. The decline in futures follows yesterday's rally to
Speaker 1: start at the week, the down lead the gains advancing
Speaker 1: two and it looks like we still haven't hit up bottom.
Speaker 1: That's according to David Stubbs, the global head of Cross
Speaker 1: as a Thematic Strategy at JP Morgan Private Bank Bank.
Speaker 1: What the market has been fearing in the last couple
Speaker 1: of weeks is that the growth la outlook maybe weakening,
Speaker 1: and therefore earnings trends going forward may also start to weaken.
Speaker 1: We'll see this this week. This riley can absolutely continue
Speaker 1: from here because of where however, so old markets worth,
Speaker 1: the data is is supportive, but that doesn't mean that
Speaker 1: we've met We've reached an important bottom in the markets now.
Speaker 1: JP Morgan's David Stubbs says he needs to see easing
Speaker 1: inflation and clarently about where interest rates will peak. That
Speaker 1: he says, goods bottom to the stock market. Well John,
Speaker 1: Today's market direction is being influenced by disappointing earnings from Snap,
Speaker 1: and we get the details line from Bloomberg's Real Needy
Speaker 1: Young good morning, Ready to good morning Karen. When markets
Speaker 1: closed yesterday, Snap warned that it would miss second quarter
Speaker 1: profit and revenue forecasts and needs to slow hiring. CEO
Speaker 1: Evans b built sites the economic environment, and that sent
Speaker 1: shares tumbling around thirty, which appears to be holding in
Speaker 1: pre market trading. If that loss holds, it would be
Speaker 1: Snap's biggest daily drop on record, making the company lose
Speaker 1: some eleven billion dollars in market value. Snaps dragging down
Speaker 1: other tech naumes In pre market trading, Twitter, Meta, Pinterest,
Speaker 1: and Alphabet are all lower and they may collectively see
Speaker 1: a one billion dollar wipeout. Live in New York, I'm
Speaker 1: gonna need a young Bloomberg day break needed things. On
Speaker 1: the flip side, shares of Zoom up almost six percent
Speaker 1: in early trading. The company is signaling it can expand
Speaker 1: beyond its consumer friendly video software that made it a
Speaker 1: pandemic Darling Zoom projected sales and profit for the current quarter.
Speaker 1: The topp to estimates well. Turning to the economy now,
Speaker 1: John Kansas City Fed President Esther George expects the Central
Speaker 1: Bank to raise interest rates to two percent by August.
Speaker 1: After that, she says more tightening will be guided by
Speaker 1: how fast inflation cools off. George has been known as
Speaker 1: a longtime let's see how kum Or recently moved to
Speaker 1: the center and monetary policy also a major focus in Europe.
Speaker 1: This morning, a day after Christine Lagard said higher interest
Speaker 1: rates are coming in July. The ECB presidents out down
Speaker 1: for her first interview with the world the economic form
Speaker 1: of Davos. She spoke with Bloomberg's Francine Lacroix. We are
Speaker 1: the turning point. We have all the components in place
Speaker 1: for that. We are turning our back to negative interest rates.
Speaker 1: We are moving very likely into positive territory at the
Speaker 1: end of the third quarter, and then of course we
Speaker 1: will calibrate, we will stablish exactly by how much we
Speaker 1: want to do that. Christy Lagard also rejecting the idea
Speaker 1: that the euro Area is headed for recession. Stay tuned
Speaker 1: for more of our conversation with the ECB president coming
Speaker 1: up shortly, and we also invite you to join us
Speaker 1: this morning when we continue our global coverage from Davos.
Speaker 1: Were speaking live with the Bank of American CEO Brian moynihan,
Speaker 1: and that conversation is coming up live at a levin
Speaker 1: am Wall Street time on both Bloomberg Radio and television.
Speaker 1: And turning to politics now, President Blyden wrapping up his
Speaker 1: trip to Asia. He spoke earlier today at the opening
Speaker 1: of the Leaders Someone in Tokyo and address the ongoing
Speaker 1: war in Ukraine. Were navigating in a dark hour in
Speaker 1: our shared history. The Russian brutal and unprovoked war against
Speaker 1: Ukraine has triggered a humanitarian catastrophe and innocent civilians have
Speaker 1: killed in the streets and millions of refugees are internally
Speaker 1: displaced as well as exile. President Biden is urging Indo
Speaker 1: Pacific leaders, including India's Norrender emoti to make a greater
Speaker 1: effort to stop Vladimir Putin's aggression. Well John. The discussion
Speaker 1: of tariffs on China has also been a focal point
Speaker 1: at President Biden's trip to Asia. Biden says he will
Speaker 1: review Trump era levies as consumer prices surge. They caught
Speaker 1: up with Trade Representative Catherine Tye, who also awaited on
Speaker 1: the matter with respect of the terrorists. Are approach, as
Speaker 1: with everything in this relationship, is to be strategic. We
Speaker 1: have to keep our eye on the ball in terms
Speaker 1: of how to effectively realign the U S China trade
Speaker 1: and economic relationship. Trade Representative Catherine Tye would not say
Speaker 1: whether the administration would remove tarriffs on China or give
Speaker 1: a time frame for making a decision. And back here
Speaker 1: in the US today, marks another test of Donald Trump's
Speaker 1: influence on Republican voters this primary season. Bloomberg's Joe Matthew
Speaker 1: tells us all eyes are on voters in Georgia. Trump's
Speaker 1: endorsement of former Senator David Purdue and the Republican gubernatorial
Speaker 1: primary has failed to make a serious threat to Governor
Speaker 1: Brian Kemp, who is currently leading Perdue by more than
Speaker 1: twenty percentage points. The incumbent being supported by establishment Republicans,
Speaker 1: including former Vice President Mike Pence. The outcome of this
Speaker 1: race and another for Secretary of State is considered personal
Speaker 1: for Trump after Georgia's Republican leaders did not overturn the election.
Speaker 1: One bright spot for Trump has picked for Senate football
Speaker 1: legend herschel Walker, widely expected to win his primary. Joe Matthew, Bloomberg,
Speaker 1: Daybreak right, Joe, thank you, and futures are lower this morning.
Speaker 1: S and P futures down forty eight points down, futures
Speaker 1: down two hundred sixty seven and Nasdaq futures down two
Speaker 1: hundred six. Ten year treasury up twelve thirty seconds. He
Speaker 1: on two point eight zero percent. Straight to hand your
Speaker 1: latest local headlines plus the check of sports and this
Speaker 1: is Bloomberg, alright, Thanks Karen six of us on Wall
Speaker 1: Street Sound to bring in Michael barn to find out
Speaker 1: what else is going on in New York. Hands around
Speaker 1: the world, John, thank you very much, sir. Mayor Eric
Speaker 1: Adams says investigators have a fatal shooting on a New
Speaker 1: York subway train a few leads. Police say forty eight
Speaker 1: year old Daniel and Enriquez was killed without provocation. Adams
Speaker 1: said that the shooting was unimaginable and the worst nightmare.
Speaker 1: I have to make sure the city is safe and
Speaker 1: I want that obligation. I thank god I'm the mayor
Speaker 1: right now and not those that don't understand the urgency
Speaker 1: of this moment. Mayor Adams says there were no police
Speaker 1: officers on the train car where a shooting occurred. He
Speaker 1: says the city will evaluate how it is deploying officers
Speaker 1: across the sprawling subway system. The NYPD says there's a
Speaker 1: second arrest and the deadly shooting of an eleven year
Speaker 1: old girl last week in the Bronx. What He's say
Speaker 1: and alleged accomplice, Eighteen year old Omar Bojang turned himself in.
Speaker 1: He is accused of driving the scooter that a fifteen
Speaker 1: year old was allegedly riding on when he opened fire.
Speaker 1: The intended target is believed to have been another team
Speaker 1: who was not hit, but instead a bullet struck and
Speaker 1: killed eleven year old Kirata. Bronx District Attorney Darcel Clark
Speaker 1: spoke outside the girl's funeral, eleven year old, you know,
Speaker 1: can't even be outside. You know, she's getting a fingernails
Speaker 1: done and just you know, without knowing, bullets are flying
Speaker 1: five o'clock in the afternoon, incomprehensible. But this is what
Speaker 1: we've been dealing within the Bronx t A. NARSL. Clark.
Speaker 1: Texas Governor Greg Abbott was at the US southern border,
Speaker 1: where he praised the continuation of an immigration policy known
Speaker 1: as Title forty two. The pandemic era policy allows officials
Speaker 1: to turn away migrants at the border. President Biden tried
Speaker 1: to have Title forty two lifted, but Governor Abbott praised
Speaker 1: the federal judge's ruling that it must remain in place
Speaker 1: for now. The Biden administration seems to be letting in people,
Speaker 1: whether they're crossing through the port of entry or across
Speaker 1: the river and there's been so many people allowed him
Speaker 1: because of that. Governor Rabbit made his comments at the
Speaker 1: Eagle Pass border crossing yesterday. Washington State health officials in
Speaker 1: Seattle and King County say they are investigating a presumptive
Speaker 1: case of monkey pots. The patient recently came back from
Speaker 1: a country with confirmed cases of the disease. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg Quittake,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: more than one twenty countries. Him Michael Barr, and this
Speaker 1: is Bloomberg, John, Michael, thank you. It's coming up at
Speaker 1: sixteen of Wall Street. That is signed for the Bloomberg
Speaker 1: Sports Update. Here's Scott Suttenberg. Good morning, John. The Yankees
Speaker 1: fell to the Orioles six four, suffering their season high
Speaker 1: third straight loss. Ramon Rias hit a tie breaking home
Speaker 1: run in the sixth inning off of Garrett Cole, and
Speaker 1: the O's overcame two Aaron Judge Homers to pull off
Speaker 1: the upset. For Coal, he allowed five runs on seven
Speaker 1: hits and eight innings, taking his first loss of the season.
Speaker 1: There's manager Aaron Boone. A weird night tonight where Garrett
Speaker 1: was really for the most part dominant, you know, except
Speaker 1: that strain there for five to seven minutes in that
Speaker 1: one inning. Meanwhile, Yankees third baseman Josh Donaldson has been
Speaker 1: suspended one game by Major League Baseball after referring to
Speaker 1: White Sox shortstop Tim Anderson as Jackie, referencing Jackie Robinson.
Speaker 1: Donaldson is appealing the suspension, saying the reference stems from
Speaker 1: comments made by Anderson back in the interview when he
Speaker 1: compared himself to Robinson. Donaldson was placed on the COVID
Speaker 1: nineteen injury list yesterday prior to the game. The Mets
Speaker 1: last night beat the Giants thirteen three. Pete Alonso hit
Speaker 1: a three run homer. Jeff McNeil and Mark Canna also
Speaker 1: went deep as the Mets one for the fifth time
Speaker 1: in six schemes. David Peterson picked up the win, allowing
Speaker 1: two runs in six innings. Tonight, the Rangers looked even
Speaker 1: up their series with the Hurricanes at two games. A
Speaker 1: piece puck drop from the garden at seven o'clock tennis
Speaker 1: at the French Open. Several top players are out, including
Speaker 1: defending women's champ Barbara Kretchikova, the women's number to see
Speaker 1: losing to French teenager Diane Perry. Elsewhere, Naomi Osaka is
Speaker 1: out losing to Amanda Anissimova. Osaka says she's not a
Speaker 1: sure show compete at Wimbledon. I'm Scott Zedinberg with Bloomberg Sports. John,
Speaker 1: Thanks on Scott and hand of the can showupen on
Speaker 1: the Wall Street futures right now in the rad AMFPY
Speaker 1: yesterday's rally down futures down two hundred thirty two points,
Speaker 1: pairing some of the earlier losses down right now about
Speaker 1: seven tenths of eight percent, and SMP futures forty four
Speaker 1: points slower. That's down one point one percent, and the
Speaker 1: tech heavy nasday futures right now two hundred and two
Speaker 1: points lower, down one point seven percent. Among the most
Speaker 1: actively traded shares, the most actively traded in the pre
Speaker 1: markets of Snap. You're listening to Bloomberg tay Break and
Speaker 1: just Ahead. Recession for Europe forget it Francine laquis Her
Speaker 1: chat with Christine Legard Just Ahead. You're listening to Bloomberg
Speaker 1: tay Break, Markets, headlines and breaking news twenty four hours
Speaker 1: a day at Bloomberg dot Com. The Bloomberg Business Outland
Speaker 1: at Bloomberg Quicktap. He's a Bloomberg business flash and I'm
Speaker 1: Karen Moscow and futures are lower this morning. SMP futures
Speaker 1: down forty three points down, features down to what six
Speaker 1: nasdag features down two hundred and a ten year treasury
Speaker 1: of eleven thirty seconds yield two point eight zero percent,
Speaker 1: yield on the two year two point five eight percent.
Speaker 1: It is six seventeen on Wall Street Time for our
Speaker 1: daily crypto update, brought to you by in Geracted Brokers.
Speaker 1: It charges margin loan rates from one point three three
Speaker 1: percent to two point three three percent, rates subject to change.
Speaker 1: Learn more at ib k R dot com slash compare
Speaker 1: Now with the latest and crypto news. Here's Bloomberg's Ran
Speaker 1: need a young Ran, need a good morning, Good morning Karen.
Speaker 1: Right now, Bitcoin is trading just below thirty tho. It's
Speaker 1: been hovering around this level since the collapse of the
Speaker 1: Terra USD stable coin trigger to sell off in cryptocurrencies now.
Speaker 1: Bitcoin has also been struggling in recent weeks as inflation
Speaker 1: remains elevated, central banks going to rate hiking mode, and
Speaker 1: regulators call for stricter oversight of cryptos following that Terry
Speaker 1: USD stable collapse. Now, by the way, data from the
Speaker 1: crypto industry tracker defy Lama show the fallout from the
Speaker 1: terror USD and its sister token Luna has triggered an
Speaker 1: eighty three billion dollars slump in the decentralized finance sector,
Speaker 1: and Bloomberg Index of Digital coins is down about thirty
Speaker 1: percent this month so far. Meantime, crypto minor bit Nile
Speaker 1: is swinging between games and losses this morning, and it's
Speaker 1: after reporting first quarter results after the bell yesterday with
Speaker 1: revenue coming in higher than expected. That's your Bloomberg Crypto
Speaker 1: Update live in New York. I'm gonna need a young
Speaker 1: Bloomberg daybreak, Karen, I need to thank you. That's a
Speaker 1: Bloomberg business flash. Now here's Michael Barr with more on
Speaker 1: what's going on around the world. Michael Darren, thank you,
Speaker 1: President Joe Biden. As Warren fellow leaders of the informal
Speaker 1: Indo Pacific Security Coalition known as the CLAUDE, they are
Speaker 1: navigating through a dark hour in our shared history as
Speaker 1: Russia continues of brutal war on Ukraine. Doctors in Washington
Speaker 1: State are at the latest to announce the treating a
Speaker 1: patient with a suspected case of monkey box, ringing the
Speaker 1: number of states investigating cases to five NBA playoffs. The
Speaker 1: Celtics beat the Heat to even the series of two
Speaker 1: games apiece. Baseball, Yankees lost to the Orioles Mets be
Speaker 1: the Giants, Nationals, and He's lost. Global News twenty four
Speaker 1: hours a day on here and on Bloomberg quick Take,
Speaker 1: powered by more than twenty seven hundred journalists analysts more
Speaker 1: than a hundred twenty countries. Michael Barr and this is Bloomberg.
Speaker 1: John Sex twenty on Wall Street Line for the Bloomberg
Speaker 1: in Guranto Broker Studios. This is Bloomberg Daybreak. Christine Lagarance
Speaker 1: is the European Central Bank won't be rise to into
Speaker 1: withdrawing monetary stimulus as officials act to contain inflation. The
Speaker 1: easyb president sat down for an interview with Bloomberg's Francy
Speaker 1: Laqua the World Economic Forum in Daubles. The conversation comes
Speaker 1: just the day after Lagrant said higher interest rates are
Speaker 1: coming in July. Let's hear what she had to say
Speaker 1: about that. Listen to the interview right now. I think
Speaker 1: it was it was good to set out the terms
Speaker 1: under which we are going to turn the corner of
Speaker 1: negative interest rates. So was this more a message to
Speaker 1: the markets or is it more to a message to
Speaker 1: the members of the Governing Council. It was a message
Speaker 1: to anybody who is interested in monetary policy, really, because
Speaker 1: we have been going through eight years of negative interest rates,
Speaker 1: special accommodation and we are clearly now at the turning point,
Speaker 1: and I thought it was appropriate at this point to
Speaker 1: explain what the journey is, what the direction of travel is,
Speaker 1: what the destination is in the relatively short term, and
Speaker 1: what is our aim point as well. If you're hiking,
Speaker 1: you want to hike, why wait for July. We are
Speaker 1: not in in a panic mode and we've started that
Speaker 1: journey thinking about it very carefully back in December, with
Speaker 1: steps along the way, and we are not at a
Speaker 1: stage where there is every certainty that we will stop
Speaker 1: NETA said purchases very early in in July, deciding so
Speaker 1: in June, which will then clear the way for a
Speaker 1: rate hikes that will come reasonably shortly after that. Is
Speaker 1: there a danger that because of the timetable, which of
Speaker 1: course you know, goes to the credibility of the d
Speaker 1: c D, which is we do que first to re
Speaker 1: unwind that and then going to interest rates, that you
Speaker 1: miss a curve of inflation. I don't think so. I
Speaker 1: think that's you know, anybody who's very careful about analyzing
Speaker 1: really realizes that we are in a situation which is
Speaker 1: vastly different from that of the United States, and we
Speaker 1: are actually perfectly on time and not behind the curve.
Speaker 1: I think there is also great value in being steady predictable.
Speaker 1: And we said all along in our forward guidance that
Speaker 1: we would stop quantitative easing in terms of net asset
Speaker 1: purchases because we will continue reinvesting as as we go,
Speaker 1: and that then we look at at the interest rate,
Speaker 1: which will be the main tool further on. And then
Speaker 1: how difficult is it to actually give so much forward guidance,
Speaker 1: I guess as a message also to markets when you
Speaker 1: don't really know how Russia reacts. We could have a
Speaker 1: gas embargo, we could have an oil embargo that would
Speaker 1: really make the inflation ra issue out. You know, our
Speaker 1: mission is to um guarantee procure reinforced price stability defined
Speaker 1: as the two percent inflation. So we might be regarded
Speaker 1: as a bit stubborn in that respect, but that's the
Speaker 1: job we have to do. But of course we are
Speaker 1: data and we look at developments, we look at what
Speaker 1: it's going to influence inflation and inflation expectations. So we
Speaker 1: look very carefully at wages. At the moment wage negotiations,
Speaker 1: we're looking very carefully at all inflation expectations, and we
Speaker 1: believe that it is time to act as indicated, under
Speaker 1: what circumstances do you think a fifty basis point hike
Speaker 1: would be warranted? Look what I said is we are
Speaker 1: at the turning point. We have all the components in
Speaker 1: place for that. We are turning our back to negative
Speaker 1: interest rates. We are moving very likely into positive territory
Speaker 1: at the end of the third quarter, and then of
Speaker 1: course we will calibrate, we will stablish exactly by how
Speaker 1: much we want to do that. When you talk about,
Speaker 1: of course no longer negative rates, has a market quite
Speaker 1: understood that this could mean also positive rates. Well, you know,
Speaker 1: when you are out of negative, you can be at zero,
Speaker 1: you can be slightly above zero. This is something that
Speaker 1: we will determine on the basis of our projections, on
Speaker 1: the basis of our forward guidance. I think that there
Speaker 1: are good reasons to believe that all three conditions will
Speaker 1: be satisfied in June and further on during the summer.
Speaker 1: Where are we in the third quarter? Could we be
Speaker 1: you know, above zero in terms of interest rates? Is
Speaker 1: that kind of listen lectures, is what I'm saying. I
Speaker 1: stick to. We will be out of negative interest rates
Speaker 1: most likely before the end of the third quarter. And
Speaker 1: that was easyb President Christie in the garden speaking with
Speaker 1: Bloomberg's Francine Laquen from the World Economic Forum. Yet down
Speaker 1: those Switzerland. Catch more the interview online at Bloomberg dot
Speaker 1: com and ahead of the can show down on Wall Street.
Speaker 1: Futures are lower than our futures after yesterday's rally two
Speaker 1: hundred sixteen points lower, SMP futures down forty two and
Speaker 1: the nansday futures one ninety eight points lower. Seeing some
Speaker 1: strengthen the euro euro dollar one oh seven. Team. You're
Speaker 1: listening to Bloomberg Daybreak. Bloomberg Weather from meteorologist Rob Carolin.
Speaker 1: Mostly cloudy, passing shower, sprinkledle possible this morning. The high
Speaker 1: temperature about seven degrees so I mostly cloudy. Blows in
Speaker 1: the mid fifties, broadcasting live from the Bloomberg Interactive Broker
Speaker 1: Studio in New York. Bloomberg E living three on to Washington,
Speaker 1: d C, Bloomberg on to Boston, Bloomberg one O six
Speaker 1: one to San Francisco, Bloomberg nine sixteen to the country
Speaker 1: Sirius XM che A one nineteen and around the globe
Speaker 1: the Bloomberg Business app and Bloomberg Radio dot com. This
Speaker 1: is Bloomberg Daybreak. He has six thirty on Wall Street.
Speaker 1: Good morning, I'm John Tucker and I'm Karen Moscow. We
Speaker 1: are just about three hours away from the open of
Speaker 1: US trading. Time for the five things you need to
Speaker 1: notice start your day. Brought to you by i b
Speaker 1: KR Investment Advisors switched to Interactive Brokers for lowest cost
Speaker 1: global trading and turnkey custody solutions, no ticket charges and
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Speaker 1: r i A first Futures are declining following yesterday's rally
Speaker 1: to start the trading week. CEO of Goldman Sax International,
Speaker 1: Richard Nod says he expects swings and markets to continue
Speaker 1: as the FED attempts as off landing everybody wants to
Speaker 1: talk about procession. Yes, So there's a lot of data
Speaker 1: coming out and if you just think what we've come through,
Speaker 1: you know, the last two years, the pandemic, in the
Speaker 1: massive interventions. How do we find a steady path forward.
Speaker 1: It's not surprising this volatility bringing supplied them on into
Speaker 1: balance again. This is going to be a tricky journey.
Speaker 1: Goldman Sax International CEO Richard Knowledge spoke at the Bloomberg's
Speaker 1: Francy Laca. Laca at the World Economic Forum in Davos.
Speaker 1: Will speak live with Bank of America CEO Brian moynihan
Speaker 1: and Davos later this morning. Tune into Bloomberg Radio and
Speaker 1: Television at eleven am straight time to hear the full
Speaker 1: interview and Karen. Today's market ranction being influenced by disappointing
Speaker 1: earnings from Snap. Bloomberg's Nita Young joins us live with details.
Speaker 1: We need a good morning, Good morning John. When markets
Speaker 1: closed yesterday, Snap warned that it would miss second quarter
Speaker 1: profit and revenue forecasts and needs to slow hiring. CEO
Speaker 1: Evan Spiegel cites the economic environment and that sent shares
Speaker 1: tumbling around thirty, which appears to be holding in pre
Speaker 1: market trading. If that loss holds, it would be Snap's
Speaker 1: biggest daily drop on record, making the company lose some
Speaker 1: eleven billion dollars in market value. Snaps dragging down other
Speaker 1: tech names in pre market trading, Twitter, Meta, Pinterest, and
Speaker 1: Alphabet all lower. Live in New York, I'm goned a
Speaker 1: young Bloomberg day break. All right, Granita, thank you. Turning
Speaker 1: to monetary policy, Kansas City Fed President Esther George expects
Speaker 1: the Federal Reserve to raise interest rates to two per
Speaker 1: sent by August. She says tightening afterwards will be guided
Speaker 1: by how fast inflation cools off. And Overseas, Prinsident Biden
Speaker 1: wrapping up his trip to Asia, the press an urging
Speaker 1: fellow Indo Pacific leaders to make a greater effort to
Speaker 1: stop Vladimir Putin's aggression in Ukraine. And back at home, John,
Speaker 1: there are key primary elections today in Georgia, Texas, Alabama, Minnesota,
Speaker 1: and Arkansas. And that's the five things you need to
Speaker 1: know to start your day. Brought to you by Interactive Brokers.
Speaker 1: S ANDP. Futures down forty one point this morning. Down,
Speaker 1: futures down two hundred seven NASDAG futures down one ninety two.
Speaker 1: That is off the lows of the morning and straight
Speaker 1: ahead your latest local headlines plus a check of sports.
Speaker 1: And this is Bloomberg. Thanks Karen sixty three Wall Street.
Speaker 1: It's time to bring in Michael Barr and it tell
Speaker 1: us what else is going on in New York and
Speaker 1: around the world. Bag very much, John. Police continue to
Speaker 1: search for the gunmen in Sunday's fatal shooting on a
Speaker 1: New York subway train. Mayor Eric Adams says there were
Speaker 1: no police officers on the train car where the shooting occurred.
Speaker 1: He says the city will evaluate howid deploying officers across
Speaker 1: the subway system. Police. A forty eight year old Daniel
Speaker 1: Enriquez of Brooklyn, was killed without provocation. The Biden administration
Speaker 1: continues to clean up the president's comments about Taiwan and China,
Speaker 1: Bloomberg said Baxter as the story Biden's response in the
Speaker 1: Affirmative to the question about whether the US would militarily
Speaker 1: step in of China invaded Taiwan is being interpreted in
Speaker 1: some circles as misspeak and in others a deliberate move
Speaker 1: to try to see how China would react. Well. Defense
Speaker 1: Secretary Lloyd Austin says, in any case, nothing has changed.
Speaker 1: As the President said, our one one China policy has
Speaker 1: not changed, and Austin says the US is and always
Speaker 1: has been working towards stability in the region. In San Francisco,
Speaker 1: I'm at Baxter Bloomberg Radio, Texas Republican Governor Greg Abbott
Speaker 1: is praising a federal judges ruling late Friday that keeps
Speaker 1: the COVID era immigration ordered Title forty two in place
Speaker 1: for now. Govern a rabbit tour at an area beneath
Speaker 1: the will Pass International border crossing in southwest Texas. He
Speaker 1: accused the Biden administration of not doing enough to stem
Speaker 1: the flow of illegal crossings at the border. We don't
Speaker 1: want communities like Eagle Pass to the overrun with large
Speaker 1: number of bigrounds who are milling around in the strees.
Speaker 1: Critics of Governor Abbots say Title forty two uses COVID
Speaker 1: as an excuse the block refugees and asylum seekers. Doctors
Speaker 1: in Washington State are the latest to announce they're treating
Speaker 1: a patient with a suspected case of monkey pots, bringing
Speaker 1: the number of states investigating cases to five. Dr Jennifer
Speaker 1: mcquisten is with the CDC. People can become infected with
Speaker 1: monkey pots through close sustained skin to skin contact with
Speaker 1: someone who has an active rash, or through respiratory droplets
Speaker 1: in someone who has lesions in their mouths and they're
Speaker 1: around another person for an extended period of time. Dr
Speaker 1: McQuiston says most patients with monkey pox will recover on
Speaker 1: their own within two to four weeks. Another shipment of
Speaker 1: baby formulas scheduled to a run than Washington tomorrow. The
Speaker 1: head of the U s d A says the formula
Speaker 1: shortage crisis could ease in the next thirty days. Global
Speaker 1: News twenty four hours a day on air and on
Speaker 1: Bloomberg Quickdache, powered by more than seven hundred journalists and
Speaker 1: analysts more than twenty countries. Michael barn this is Bloomberg, John, Michael,
Speaker 1: thank you. He is coming down on six thirties six
Speaker 1: on Long Street Time down for the Bloomberg Sports update.
Speaker 1: Here's Scott Sidenberg. Thanks John Garrett Cole allowed five runs
Speaker 1: on seven hits in eight innings as the Yankees fell
Speaker 1: to the Orioles six four, suffering their season high third
Speaker 1: straight loss. Aaron Judge homer twice in defeat. Before the game,
Speaker 1: Yankees third baseman Josh Donaldson was suspended one game by
Speaker 1: Major League Baseball after referring to White Sox shortstop Tim
Speaker 1: Anderson is Jackie, referencing Jackie Robinson. Donaldson is appealing the suspension,
Speaker 1: saying that the reference stems from comments made by Anderson
Speaker 1: back in a twenty nineteen interview where he compared himself
Speaker 1: to Jackie Robinson. Thoaldson was played on the COVID nineteen
Speaker 1: injury list yesterday prior to the lost against the Orioles. Elsewhere,
Speaker 1: the Mets with a big night in the Bay Area,
Speaker 1: Cantas over for three tonight, and he launches one of
Speaker 1: the deep left center headed back to o the wall.
Speaker 1: It's out of hair. Cada makes it back to back
Speaker 1: home runs McNeil and now Cattle. It has fourth of
Speaker 1: the year and it's nine to two. New York call
Speaker 1: on s n Y. Peter Alonso homered as well as
Speaker 1: the Mets route the Giants thirteen three hockey Tonight, the
Speaker 1: Rangers looked even up their series at two games apiece
Speaker 1: against the Hurricanes. The Oilers take on the Flames in
Speaker 1: Game five. They lead two games to one. Tennis at
Speaker 1: the French Open, Several top players are out, including defending
Speaker 1: women's champ Barbara Kretchikova, the women's number to see, losing
Speaker 1: to French teenager Diane Perry. Elsewhere, Naomi Osaka is out,
Speaker 1: losing to Amanda Anissamova. Osaka says she's not a sure
Speaker 1: show compete at Wimbledon. I'm Scott Edinburg with Bloomberg Sports.
Speaker 1: John Scott, thanks very much. It is now sixty seven
Speaker 1: Wall Street time to take a look at stocks and
Speaker 1: some of the names that are moving in the premarket.
Speaker 1: For that, we're joined by Bloomberg Radio and TV Markets corresponding,
Speaker 1: Pretty Gupta. I had to get somebody to explain what
Speaker 1: snap snapchat does. Um let me. I'm embarrassed that you
Speaker 1: don't know what snapchat does. It's okay, I was born,
Speaker 1: you know, a long time ago snap But even even
Speaker 1: for for the youth, I feel like Snapchat is fairly
Speaker 1: recent relatively speaking. You're casting yourself as a representative for
Speaker 1: the youth of America. I mean everyone else does. They
Speaker 1: might as well hop on board. Let's talk with a
Speaker 1: snapchat do. Snapchat is a social media company. They are
Speaker 1: also known for their location services, it really becomes a
Speaker 1: story similar to that one you have of uh Facebook
Speaker 1: now known as meta Twitter, Pinchust. Essentially, all of their
Speaker 1: revenue comes from ad revenue, and a lot of what
Speaker 1: Snapchat has done is they've created their location services to
Speaker 1: kind of advertise events going um around kind of where
Speaker 1: you are. You can find your friends, you can send
Speaker 1: um well snaps of yourself to your friends. But the
Speaker 1: point is basically becomes an ad revenue story. And this
Speaker 1: morning that story is not looking well. Snapchat shares s
Speaker 1: n a P down thirty percent in the pre market.
Speaker 1: This comes after they cut their revenue and profit forecast
Speaker 1: beneath the low end of its previous guidance. This is
Speaker 1: a big deal because they say they're concerned about the
Speaker 1: macroeconomic UH situation in the macro economic backdrop that we're at,
Speaker 1: and everyone says that stuff. But he has a point.
Speaker 1: He has a point in mercury and venus. You know
Speaker 1: what he It sounds like a very vague thing to say,
Speaker 1: I'll give you that, but it's that he has a
Speaker 1: point in that if a lot of these social media
Speaker 1: companies are based on ad spend, and you have a
Speaker 1: sphere where the average consumer confidence is that decade lows uh,
Speaker 1: and they are concerned about recession. Well, what is the
Speaker 1: point of marketing? What is the point of advertising if
Speaker 1: your end consumer isn't going to buy? It? Is now
Speaker 1: a bell weather for tech or I'm saying social media
Speaker 1: broad ly is because advertising is at the end of
Speaker 1: the day, very very subjective to the growth picture in
Speaker 1: a booming Contex section my chart of the day, folks,
Speaker 1: You guys should tune in later in radio because I
Speaker 1: will explain this. But basically it is a bell weather
Speaker 1: for ad spends um or for for economic growth broadly.
Speaker 1: If you are spending more in advertising, it means you
Speaker 1: have more to spend and you're expecting the consumer to
Speaker 1: spend as well. Nevertheless, and it's not just Snapchat that
Speaker 1: is down this morning, it's Facebook as well, FB also
Speaker 1: now know as meta tacker still FB down, Twitter as well,
Speaker 1: t W t R down three and a half percent,
Speaker 1: and pinterest p I n S down twelve percent. John
Speaker 1: Wells the pleasure, Thank you bringing the doomsday wherever wherever
Speaker 1: I can. Okay, no, we appreciate it. Bloomberg Radio on
Speaker 1: TV markets score pretty Goopta, thank you so much. And
Speaker 1: looking at the broader market. Right now, we are setting
Speaker 1: ourselves up for a lower open, at least for the
Speaker 1: cash open. Down futures right now down two nine points.
Speaker 1: That is a decline of seven tenths of a percent,
Speaker 1: SMP futures, the EMNI futures forty three points lower, one
Speaker 1: percent lower, and the nmesday futures right now down two
Speaker 1: hundred points, down one point seven. We do uh tenure
Speaker 1: yield right now to eight one, down three basis points.
Speaker 1: This is Bloomberg Day Break. The Bloomberg weather from Rob Carolin.
Speaker 1: Mostly cloudy day, passion shower sprinkle possible this morning. The
Speaker 1: height temperature about seventy anti mostly quality lows in the
Speaker 1: mid fifties. Markets headlines and breaking news twenty four hours
Speaker 1: a day at Bloomberg dot Com, the Bloomberg Business Outland
Speaker 1: at Bloomberg Quick Tape. This is a Bloomberg Business flash
Speaker 1: and I'm fair in Moscow. Futures are lower this morning.
Speaker 1: We get to the first word breaking news. Das for
Speaker 1: today's morning call, and here's Bill Maloney. Bill, go morning,
Speaker 1: Good morning, Karen. That's right. US futures are under pressure
Speaker 1: right now, helped by the plunge in snap doubt futures
Speaker 1: currently down two twenty three point says if you dropped
Speaker 1: forty four, astic futures are lower by two seven. The
Speaker 1: US ten year old at two point eight one percent,
Speaker 1: Gold Oil and Big Cooin are all trading little change,
Speaker 1: and Shanghai felt two point four percent overnight, where up
Speaker 1: markets are also in the red this morning. Back in
Speaker 1: the US on the economic front, at night, forty five
Speaker 1: U s May p M S and at ten o'clock
Speaker 1: New Home Sales and Richmond fed. After the LS night
Speaker 1: Zoom Sales forecast beat US mits, but Snap did cut
Speaker 1: its forecast shares it down thirty percent in the pre market.
Speaker 1: Regarding earnings this morning, look for AutoZone and best Buy
Speaker 1: to report in the pre market, and a deal news.
Speaker 1: Dex Com is said to be in talks to choir
Speaker 1: device firm Insulate Wrapping things up. Eaton was cut to
Speaker 1: underweight over at Barclay's Live from the first to breaking
Speaker 1: news ascomb Doll Malone account. All right, Bill, thank you
Speaker 1: and your live breaking news over your Bloombery time, squawk
Speaker 1: on your terminal s U A w K. That's a
Speaker 1: Bloomberg business flash. Now here's Michael Barr with more on
Speaker 1: what's going on around the world, Michael Karen, thank you
Speaker 1: very much. With mid term primaries well underway, voters had
Speaker 1: to the polls in five states today and Georgia. Former
Speaker 1: President Trump's hold on the Republican Party will be tested
Speaker 1: in the governor's race, with Trump backing David Pudu, while
Speaker 1: former Vice President Mike Pence sides with the other man
Speaker 1: in the race, incumbent governor Brian Kemp. The United States
Speaker 1: and Britain are accusing Russia of spreading disinformation online and
Speaker 1: manipulating public opinion about the war in Ukraine. The two
Speaker 1: countries vehemently rejecting Russia's claims that the West is aiming
Speaker 1: to control all information flows and to find what is
Speaker 1: true or untrue. In the NBA Playoffs, the Celtics beat
Speaker 1: the Heat one or two eighty two to even the
Speaker 1: series at two games apiece. In baseball, the Yankees lost
Speaker 1: to the Oriole six four, The Mets beat the Giants
Speaker 1: thirteen three. The Nationals and A's lost. Global News twenty
Speaker 1: four hours a day on air and on Bloomberg quick Take,
Speaker 1: powered by more than seven hundred journalists and analysts, more
Speaker 1: than a hundred twenty countries. Michael bar this is Bloomberg Cameron.
Speaker 1: All right, thank you, Michael Barb. But a six forty
Speaker 1: nine on Wall Street. We turned to news and science
Speaker 1: and technology now with the Bloomberg and j I T
Speaker 1: STEM Report, brought to you by New Jersey Institute of Technology,
Speaker 1: one of the nation's leading polytechnic universities and a top
Speaker 1: military friendly school. Learn more at n j I T
Speaker 1: DOT E d U slash Veterans now Here's les making
Speaker 1: news and science, technology, engineering, and math. FISER says three
Speaker 1: doses of its COVID nineteen vaccine offers strong protection for
Speaker 1: children younger than five. Fiser plans to give the data
Speaker 1: to US regulators later this week. In a step toward
Speaker 1: letting the littlest kids get the shots, The Food and
Speaker 1: Drug Administration has begun evaluating data from rival Maderna, which
Speaker 1: hopes to begin offering two kids sized shots by summer.
Speaker 1: The head of the u n's World Food Program is
Speaker 1: telling billionaires it's time to step up as the global
Speaker 1: threat of food insecurity rises with Russia's war in Ukraine.
Speaker 1: Ukraine and Russia together export a third of the world's
Speaker 1: wheat and barley and half of its sunflower oil, but
Speaker 1: Russia is a top supplier of fertilizer that has searched
Speaker 1: in price, and Walmart and partner Drone Up planned to
Speaker 1: expand their drone delivery hubs to thirty four locations in
Speaker 1: six states by year end. Walmart says deliveries will cost
Speaker 1: three dollars ninety cents and orders can weigh up to
Speaker 1: ten pounds. They expanded network has the potential to reach
Speaker 1: four million US households and give Walmart the capacity to
Speaker 1: deliver one million packages by air in a year. But
Speaker 1: attaining those goals depends on changes to US rules that
Speaker 1: now require flights to remain within a drone operator's line
Speaker 1: of sight. And that's a Bloomberg and j a t
Speaker 1: Stem report. John, all right, thanks Karen. We are live
Speaker 1: from the Bloomberg in Jurand to Broker Studios where it
Speaker 1: is now six fifty one on Wall Street. Time to
Speaker 1: check what's going on in d C. Some of the
Speaker 1: top stories in our nation's camp will include Georgia, Texas
Speaker 1: incumbents at risk in primaries to watch today, President Biden's lightest,
Speaker 1: the latest Taiwan gaff stokes tensions with Beijing, and the
Speaker 1: Ukraine latest. The President says Vladimir Putin is trying to
Speaker 1: erase Ukraine culture and also US consumers facing a summer
Speaker 1: of power bill pain as heat and gas surge. Just
Speaker 1: who owns these issues? Let's take a deeper deef deeeper
Speaker 1: dive into some of these stories this morning with Joe
Speaker 1: Matthew with the host Boomberg's sound on what is it? Pleasure? Joe,
Speaker 1: thanks for being with us. All right, So we've got
Speaker 1: Georgia on our mind. Yes, apologize to right, Charles Um.
Speaker 1: What what's the what are the big races there? Well,
Speaker 1: we've got three states voting today. Georgia is one of
Speaker 1: the Arkansas, Alabama the others here. Uh, the big one
Speaker 1: is Georgia, though, if only because it became the center
Speaker 1: of Donald Trump's effort to overturn the election. Right, the
Speaker 1: big race, as we were just hearing, the Republican primary
Speaker 1: for governor may not end well for Trump. You know,
Speaker 1: he has had some wins and some losses in the
Speaker 1: cycle so far. This one just could be impossible to win.
Speaker 1: Governor Brian Kemp, very popular in Georgia, is leading former
Speaker 1: Senator David Purdue, who Trump hand picked for this to
Speaker 1: unseat Brian Kemp. He's leading Purdue by about thirty points. John.
Speaker 1: I mean, you just don't see a spread like that.
Speaker 1: It's a commanding lead and likely not possible for Purdue
Speaker 1: to overturn this. This, of course goes back to remember
Speaker 1: Brian Kemp would not help Donald Trump overturned the election,
Speaker 1: and that spills over to the race for secretary of state.
Speaker 1: Can you imagine here we are on Bloomberg talking about
Speaker 1: a secretary of state race in Georgia. But it's that
Speaker 1: pivotal here because Trump is backing a congressman named Jody
Speaker 1: heis to basically step down to to kind of demote
Speaker 1: oneself to run for state office and try to beat
Speaker 1: Brad Raffinsburger. You might remember that name, John, because Donald
Speaker 1: Trump was caught on tape, remember calling him for help
Speaker 1: been finding a few thousand extra votes in Georgia. These
Speaker 1: are conservative, popular incumbents. They have got the good numbers
Speaker 1: on the economy, on a number of issues here. Uh,
Speaker 1: And it's really it has not helped Donald Trump to
Speaker 1: go up against them here. Those both could be losses
Speaker 1: for the Trump brand. Both of those incumbents could keep
Speaker 1: their jobs tonight. Certainly the race for governor. We'll see
Speaker 1: what happens with the Secretary of State, but those are
Speaker 1: the two that will probably get the most national attention.
Speaker 1: How much does this mirror divisions within the GOP and
Speaker 1: how much of the at least the governor's race is
Speaker 1: a Mike Pence story. It's a great question. This has
Speaker 1: turned into a bit of a proxy battle between Donald
Speaker 1: Trump and and if we can call them establishment Republicans.
Speaker 1: I'm kind of running out of terms here for the
Speaker 1: various fractures in these parties. But you're right, Mike Pence
Speaker 1: actually came out of nowhere to campaign in person for
Speaker 1: Brian Camp, leading many to wonder about what his greater
Speaker 1: ambitions could be. But you've got basically the republic Can Party,
Speaker 1: the Republican Governors Association backing Brian Kemp, the incumbent. They
Speaker 1: don't want any part of this conversation with Donald Trump.
Speaker 1: There's endless fodder for late night hosts and comedians. A
Speaker 1: member of Congress, well you know where your love her?
Speaker 1: Maybe a hater Marjorie Taylor Green. What's going on in
Speaker 1: that run into serious opposition. We'll see if it runs
Speaker 1: into a runoff. That's the question. Marjorie Taylor Green facing
Speaker 1: five Republicans, all basically there to try to pull her
Speaker 1: into a runoff. It's not likely any of them could
Speaker 1: be her outright. Uh. There is the candidate doing the
Speaker 1: best here, a healthcare executive named Jennifer Strahan who has
Speaker 1: received donations from all over the spectrum here including Senator
Speaker 1: Romney not a fan of Marjorie Taylor Green, and the
Speaker 1: Republican Jewish Coalition. So stay tuned on that one. That
Speaker 1: one's a little bit different. Uh. And we have a
Speaker 1: couple of other incumbents across the spectrum. In Texas is
Speaker 1: one that we'll be watching. And as I mentioned, Alabama
Speaker 1: is going to have a good race. Arkansas brings Sarah
Speaker 1: Huckabee Sanders. You might remember Donald Trump's press secretary. She's
Speaker 1: expected to win the Republican primary for governor in Arkansas,
Speaker 1: of course, the daughter of Mike Huckabee. Surprisingly, just because
Speaker 1: of all the controversy in the air right now, John,
Speaker 1: this one hasn't received as much of attention as it
Speaker 1: normally would. But that's gonna be a national story to
Speaker 1: watch too. I'm gonna pick your brain. We're gonna skip
Speaker 1: ahead to Uh. I was thinking whether I should actually
Speaker 1: include this in the rundown because it's not really a
Speaker 1: political story but consumers facing a summer of power bill surge. Yeah,
Speaker 1: it's an inflation story. And uh, who owns all this
Speaker 1: as we look forward to the the mid term elections
Speaker 1: come to Ober, I think the answer is probably the
Speaker 1: Biden administration. Fair or not. This is just an extension
Speaker 1: of the energy price story that we've been talking about
Speaker 1: for months here, John. People think they plug that thing
Speaker 1: into the wall and electricity magically comes out and keeps
Speaker 1: the environment safe. That electricity has to come from somewhere, though,
Speaker 1: when it typically comes from burning fossil fuels liquefied natural
Speaker 1: gas and coal. Well, guess what those are both really
Speaker 1: expensive right now, as you know. And I don't think
Speaker 1: we have to tell our listeners on Bloomberg why at
Speaker 1: this point it's been one of the biggest stories in
Speaker 1: the world that that price inflation we're seeing an energy
Speaker 1: is going to come through, uh, through your socket in
Speaker 1: the wall, and my god, we're looking at great story
Speaker 1: on the terminal today. Uh, John, that you point out here,
Speaker 1: we're gonna be seeing bills up as much as in
Speaker 1: parts of the country, particularly in the Western US, where
Speaker 1: drought is going to be an issue, where extreme heat
Speaker 1: will be an issue. This is gonna be walking right
Speaker 1: up to the mid term election cycle, and these are
Speaker 1: the stories that cause people to vote. All right, Chel
Speaker 1: always a pleasure Joe Matthew host a Bloomberg sound on
Speaker 1: the end. You could read more about these stories on
Speaker 1: Bloomberg dot com or the Bloomberg term reminder. You can
Speaker 1: follow all the latest on Bloomberg already on Washington. That's
Speaker 1: Bloomberg at one oh five point seven FM HD two
Speaker 1: at ahead of the cash open on Wallsbreed futures lower,
Speaker 1: SMP futures right now down forty three points at the
Speaker 1: decline of one percent, the Dow futures two hundred, twenty
Speaker 1: two points lower, that's down seven tenths of a percent,
Speaker 1: but ANENTIC futures down two hundred, that is a one
Speaker 1: point seven percent lower for that index right now. The
Speaker 1: Euro one oh seven O nine, and the tenure treasurer
Speaker 1: in the US two point eight one percent, that is
Speaker 1: down right now three basis points. And just ahead, we
Speaker 1: are live from the World Economic Forum in Davos, Switzerland
Speaker 1: with the Tom King at Lisa Bramwitz and Forkaren Moscow.
Speaker 1: I'm John Tucker. You've been listening to Bloomberg Daybreak