WEBVTT - Bloomberg Daybreak: May 24, 2022 - Hour 2 (Radio) 0:00:03.640 --> 0:00:06.800 Live from the Bloomberg Interactor Berger Studios is his Bloomberg 0:00:06.880 --> 0:00:11.920 Daybreak for a Tuesday. Coming up this hour, US Futures 0:00:11.920 --> 0:00:15.120 sank his earnings from snaps and big Tech lower. Christie 0:00:15.200 --> 0:00:18.200 mcguard weighs in on monetary policy, saying she won't rush 0:00:18.200 --> 0:00:21.480 into a drawing stimulus US primaries and focus again as 0:00:21.480 --> 0:00:25.040 contest that Georgia could show Donald Trump's influence on the GOP. 0:00:25.840 --> 0:00:28.160 The gunman in a deadly subway shooting in New York 0:00:28.200 --> 0:00:31.120 remains on the loops. Plus, Texas Governor Rabbits says Moore 0:00:31.200 --> 0:00:34.040 is needed to stop the flow of migrants. I'm Michael Barre. 0:00:34.159 --> 0:00:38.000 More ahead, ib Scott Edinburg. The Yankees shopped their third scrape. 0:00:38.000 --> 0:00:40.480 That Mets win big outrest, I'll have that in more 0:00:40.560 --> 0:00:46.480 coming up in sports. That's all training Ahead on Bloomberg 0:00:46.560 --> 0:00:51.640 Daybreak on Bloomberg eleven three on New York, Bloomberg one, Washington, 0:00:51.760 --> 0:00:55.800 d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty, 0:00:55.880 --> 0:01:00.000 San Francisco, Sirius x M one nineteen and around the world. 0:01:00.000 --> 0:01:03.080 Old on Bloomberg Radio dot Com and via the Bloomberg 0:01:03.120 --> 0:01:10.119 Business App. And good Morning. I'm Kared Moscow Gim, John 0:01:10.120 --> 0:01:12.240 Tucker Bloomberg Day Break being brought to you by B 0:01:12.480 --> 0:01:16.479 N Y Melon Pershing's Inside Conference back in person June 0:01:16.480 --> 0:01:20.440 fifteenth through the seventeenth at the Gaylord Resort in Grapevine, Texas. 0:01:20.720 --> 0:01:23.680 Don't miss it. Register now at Insight dot B and 0:01:24.000 --> 0:01:27.400 y Melon dot com. And futures are lower this morning 0:01:27.440 --> 0:01:29.399 six o one on Wall Street. We check the markets 0:01:29.440 --> 0:01:32.360 every fifteen minutes throughout the trading day on Bloomberg. Right now, 0:01:32.440 --> 0:01:35.120 SNP futures are down forty eight points down. Futures down 0:01:35.160 --> 0:01:38.840 two hundred sixty five. Nasday futures down two hundred and eleven. 0:01:38.880 --> 0:01:41.960 The ten year treasury up thirteen thirty seconds, the Yale 0:01:41.959 --> 0:01:44.039 two point eight zero percent, and they yield on the 0:01:44.080 --> 0:01:47.360 two year two point five seven percent. NIMEX Screwede oil 0:01:47.400 --> 0:01:49.360 is down a third or thirty nine cents at a 0:01:49.400 --> 0:01:52.560 hundred nine dollars ninety cents of barrel and Bitcoin this 0:01:52.760 --> 0:01:56.320 morning is little change at twenty nine thousand, three hundred dollars, 0:01:56.400 --> 0:01:59.720 John Karen. The decline in futures follows yesterday's rally to 0:01:59.760 --> 0:02:02.640 start at the week, the down lead the gains advancing 0:02:02.640 --> 0:02:05.800 two and it looks like we still haven't hit up bottom. 0:02:05.880 --> 0:02:08.480 That's according to David Stubbs, the global head of Cross 0:02:08.520 --> 0:02:11.760 as a Thematic Strategy at JP Morgan Private Bank Bank. 0:02:12.160 --> 0:02:14.640 What the market has been fearing in the last couple 0:02:14.639 --> 0:02:17.800 of weeks is that the growth la outlook maybe weakening, 0:02:17.800 --> 0:02:21.280 and therefore earnings trends going forward may also start to weaken. 0:02:21.800 --> 0:02:24.480 We'll see this this week. This riley can absolutely continue 0:02:24.520 --> 0:02:26.960 from here because of where however, so old markets worth, 0:02:27.000 --> 0:02:29.440 the data is is supportive, but that doesn't mean that 0:02:29.480 --> 0:02:31.960 we've met We've reached an important bottom in the markets now. 0:02:32.440 --> 0:02:35.520 JP Morgan's David Stubbs says he needs to see easing 0:02:35.560 --> 0:02:38.919 inflation and clarently about where interest rates will peak. That 0:02:39.120 --> 0:02:42.919 he says, goods bottom to the stock market. Well John, 0:02:42.960 --> 0:02:46.680 Today's market direction is being influenced by disappointing earnings from Snap, 0:02:46.680 --> 0:02:49.080 and we get the details line from Bloomberg's Real Needy 0:02:49.160 --> 0:02:51.560 Young good morning, Ready to good morning Karen. When markets 0:02:51.600 --> 0:02:54.920 closed yesterday, Snap warned that it would miss second quarter 0:02:54.960 --> 0:02:59.440 profit and revenue forecasts and needs to slow hiring. CEO 0:02:59.520 --> 0:03:03.079 Evans b built sites the economic environment, and that sent 0:03:03.200 --> 0:03:06.560 shares tumbling around thirty, which appears to be holding in 0:03:06.600 --> 0:03:09.600 pre market trading. If that loss holds, it would be 0:03:09.639 --> 0:03:13.399 Snap's biggest daily drop on record, making the company lose 0:03:13.520 --> 0:03:17.399 some eleven billion dollars in market value. Snaps dragging down 0:03:17.400 --> 0:03:21.000 other tech naumes In pre market trading, Twitter, Meta, Pinterest, 0:03:21.040 --> 0:03:24.079 and Alphabet are all lower and they may collectively see 0:03:24.080 --> 0:03:27.920 a one billion dollar wipeout. Live in New York, I'm 0:03:27.960 --> 0:03:30.520 gonna need a young Bloomberg day break needed things. On 0:03:30.560 --> 0:03:33.760 the flip side, shares of Zoom up almost six percent 0:03:33.840 --> 0:03:36.960 in early trading. The company is signaling it can expand 0:03:37.000 --> 0:03:40.280 beyond its consumer friendly video software that made it a 0:03:40.360 --> 0:03:44.120 pandemic Darling Zoom projected sales and profit for the current quarter. 0:03:44.400 --> 0:03:47.320 The topp to estimates well. Turning to the economy now, 0:03:47.400 --> 0:03:50.800 John Kansas City Fed President Esther George expects the Central 0:03:50.800 --> 0:03:53.680 Bank to raise interest rates to two percent by August. 0:03:53.960 --> 0:03:56.200 After that, she says more tightening will be guided by 0:03:56.240 --> 0:03:59.280 how fast inflation cools off. George has been known as 0:03:59.320 --> 0:04:01.680 a longtime let's see how kum Or recently moved to 0:04:01.760 --> 0:04:05.640 the center and monetary policy also a major focus in Europe. 0:04:05.720 --> 0:04:08.920 This morning, a day after Christine Lagard said higher interest 0:04:09.000 --> 0:04:12.040 rates are coming in July. The ECB presidents out down 0:04:12.080 --> 0:04:14.480 for her first interview with the world the economic form 0:04:14.480 --> 0:04:18.440 of Davos. She spoke with Bloomberg's Francine Lacroix. We are 0:04:18.560 --> 0:04:23.920 the turning point. We have all the components in place 0:04:24.040 --> 0:04:27.680 for that. We are turning our back to negative interest rates. 0:04:27.720 --> 0:04:32.680 We are moving very likely into positive territory at the 0:04:32.800 --> 0:04:35.479 end of the third quarter, and then of course we 0:04:35.600 --> 0:04:39.520 will calibrate, we will stablish exactly by how much we 0:04:39.600 --> 0:04:42.840 want to do that. Christy Lagard also rejecting the idea 0:04:42.880 --> 0:04:45.800 that the euro Area is headed for recession. Stay tuned 0:04:45.839 --> 0:04:48.680 for more of our conversation with the ECB president coming 0:04:48.760 --> 0:04:51.600 up shortly, and we also invite you to join us 0:04:51.640 --> 0:04:54.720 this morning when we continue our global coverage from Davos. 0:04:54.760 --> 0:04:58.000 Were speaking live with the Bank of American CEO Brian moynihan, 0:04:58.200 --> 0:05:00.240 and that conversation is coming up live at a levin 0:05:00.279 --> 0:05:03.320 am Wall Street time on both Bloomberg Radio and television. 0:05:03.440 --> 0:05:06.039 And turning to politics now, President Blyden wrapping up his 0:05:06.080 --> 0:05:08.839 trip to Asia. He spoke earlier today at the opening 0:05:08.839 --> 0:05:11.320 of the Leaders Someone in Tokyo and address the ongoing 0:05:11.320 --> 0:05:14.479 war in Ukraine. Were navigating in a dark hour in 0:05:14.520 --> 0:05:19.400 our shared history. The Russian brutal and unprovoked war against 0:05:19.480 --> 0:05:25.039 Ukraine has triggered a humanitarian catastrophe and innocent civilians have 0:05:25.120 --> 0:05:29.320 killed in the streets and millions of refugees are internally 0:05:29.360 --> 0:05:33.640 displaced as well as exile. President Biden is urging Indo 0:05:33.720 --> 0:05:37.320 Pacific leaders, including India's Norrender emoti to make a greater 0:05:37.400 --> 0:05:40.960 effort to stop Vladimir Putin's aggression. Well John. The discussion 0:05:41.000 --> 0:05:43.400 of tariffs on China has also been a focal point 0:05:43.400 --> 0:05:45.960 at President Biden's trip to Asia. Biden says he will 0:05:46.000 --> 0:05:49.720 review Trump era levies as consumer prices surge. They caught 0:05:49.800 --> 0:05:53.120 up with Trade Representative Catherine Tye, who also awaited on 0:05:53.160 --> 0:05:56.120 the matter with respect of the terrorists. Are approach, as 0:05:56.160 --> 0:06:01.640 with everything in this relationship, is to be strategic. We 0:06:01.760 --> 0:06:03.880 have to keep our eye on the ball in terms 0:06:03.880 --> 0:06:07.280 of how to effectively realign the U S China trade 0:06:07.320 --> 0:06:11.039 and economic relationship. Trade Representative Catherine Tye would not say 0:06:11.040 --> 0:06:14.080 whether the administration would remove tarriffs on China or give 0:06:14.120 --> 0:06:16.880 a time frame for making a decision. And back here 0:06:17.040 --> 0:06:19.880 in the US today, marks another test of Donald Trump's 0:06:19.960 --> 0:06:24.120 influence on Republican voters this primary season. Bloomberg's Joe Matthew 0:06:24.160 --> 0:06:27.520 tells us all eyes are on voters in Georgia. Trump's 0:06:27.560 --> 0:06:31.200 endorsement of former Senator David Purdue and the Republican gubernatorial 0:06:31.279 --> 0:06:34.120 primary has failed to make a serious threat to Governor 0:06:34.160 --> 0:06:36.760 Brian Kemp, who is currently leading Perdue by more than 0:06:36.760 --> 0:06:41.120 twenty percentage points. The incumbent being supported by establishment Republicans, 0:06:41.160 --> 0:06:44.360 including former Vice President Mike Pence. The outcome of this 0:06:44.480 --> 0:06:47.600 race and another for Secretary of State is considered personal 0:06:47.720 --> 0:06:52.080 for Trump after Georgia's Republican leaders did not overturn the election. 0:06:52.279 --> 0:06:54.960 One bright spot for Trump has picked for Senate football 0:06:55.040 --> 0:06:59.200 legend herschel Walker, widely expected to win his primary. Joe Matthew, Bloomberg, 0:06:59.279 --> 0:07:02.239 Daybreak right, Joe, thank you, and futures are lower this morning. 0:07:02.360 --> 0:07:05.000 S and P futures down forty eight points down, futures 0:07:05.000 --> 0:07:07.720 down two hundred sixty seven and Nasdaq futures down two 0:07:07.800 --> 0:07:11.000 hundred six. Ten year treasury up twelve thirty seconds. He 0:07:11.080 --> 0:07:13.800 on two point eight zero percent. Straight to hand your 0:07:13.840 --> 0:07:17.480 latest local headlines plus the check of sports and this 0:07:18.000 --> 0:07:24.760 is Bloomberg, alright, Thanks Karen six of us on Wall 0:07:24.800 --> 0:07:27.040 Street Sound to bring in Michael barn to find out 0:07:27.080 --> 0:07:29.560 what else is going on in New York. Hands around 0:07:29.640 --> 0:07:32.080 the world, John, thank you very much, sir. Mayor Eric 0:07:32.120 --> 0:07:34.880 Adams says investigators have a fatal shooting on a New 0:07:34.960 --> 0:07:38.520 York subway train a few leads. Police say forty eight 0:07:38.560 --> 0:07:42.480 year old Daniel and Enriquez was killed without provocation. Adams 0:07:42.480 --> 0:07:46.080 said that the shooting was unimaginable and the worst nightmare. 0:07:46.360 --> 0:07:48.720 I have to make sure the city is safe and 0:07:48.760 --> 0:07:51.600 I want that obligation. I thank god I'm the mayor 0:07:51.720 --> 0:07:55.640 right now and not those that don't understand the urgency 0:07:55.680 --> 0:07:58.400 of this moment. Mayor Adams says there were no police 0:07:58.400 --> 0:08:01.320 officers on the train car where a shooting occurred. He 0:08:01.400 --> 0:08:04.480 says the city will evaluate how it is deploying officers 0:08:04.480 --> 0:08:08.560 across the sprawling subway system. The NYPD says there's a 0:08:08.600 --> 0:08:11.240 second arrest and the deadly shooting of an eleven year 0:08:11.280 --> 0:08:13.880 old girl last week in the Bronx. What He's say 0:08:13.920 --> 0:08:17.440 and alleged accomplice, Eighteen year old Omar Bojang turned himself in. 0:08:17.960 --> 0:08:20.440 He is accused of driving the scooter that a fifteen 0:08:20.480 --> 0:08:23.000 year old was allegedly riding on when he opened fire. 0:08:23.480 --> 0:08:26.400 The intended target is believed to have been another team 0:08:26.480 --> 0:08:29.480 who was not hit, but instead a bullet struck and 0:08:29.560 --> 0:08:33.880 killed eleven year old Kirata. Bronx District Attorney Darcel Clark 0:08:33.960 --> 0:08:37.880 spoke outside the girl's funeral, eleven year old, you know, 0:08:38.040 --> 0:08:41.400 can't even be outside. You know, she's getting a fingernails 0:08:41.480 --> 0:08:45.800 done and just you know, without knowing, bullets are flying 0:08:45.960 --> 0:08:49.400 five o'clock in the afternoon, incomprehensible. But this is what 0:08:49.480 --> 0:08:52.199 we've been dealing within the Bronx t A. NARSL. Clark. 0:08:52.600 --> 0:08:55.520 Texas Governor Greg Abbott was at the US southern border, 0:08:55.559 --> 0:08:59.720 where he praised the continuation of an immigration policy known 0:08:59.760 --> 0:09:03.680 as Title forty two. The pandemic era policy allows officials 0:09:03.679 --> 0:09:06.680 to turn away migrants at the border. President Biden tried 0:09:06.720 --> 0:09:10.240 to have Title forty two lifted, but Governor Abbott praised 0:09:10.240 --> 0:09:12.880 the federal judge's ruling that it must remain in place 0:09:12.920 --> 0:09:16.480 for now. The Biden administration seems to be letting in people, 0:09:16.480 --> 0:09:19.160 whether they're crossing through the port of entry or across 0:09:19.160 --> 0:09:21.800 the river and there's been so many people allowed him 0:09:21.800 --> 0:09:24.680 because of that. Governor Rabbit made his comments at the 0:09:24.679 --> 0:09:28.680 Eagle Pass border crossing yesterday. Washington State health officials in 0:09:28.720 --> 0:09:32.119 Seattle and King County say they are investigating a presumptive 0:09:32.160 --> 0:09:35.160 case of monkey pots. The patient recently came back from 0:09:35.160 --> 0:09:38.400 a country with confirmed cases of the disease. Global News 0:09:38.440 --> 0:09:41.640 twenty four hours a day on air and on Bloomberg Quittake, 0:09:41.880 --> 0:09:44.880 powered by more than twenty seven hundred journalists and analysts 0:09:44.960 --> 0:09:47.800 more than one twenty countries. Him Michael Barr, and this 0:09:47.920 --> 0:09:55.280 is Bloomberg, John, Michael, thank you. It's coming up at 0:09:55.280 --> 0:09:57.559 sixteen of Wall Street. That is signed for the Bloomberg 0:09:57.600 --> 0:10:01.440 Sports Update. Here's Scott Suttenberg. Good morning, John. The Yankees 0:10:01.480 --> 0:10:04.160 fell to the Orioles six four, suffering their season high 0:10:04.280 --> 0:10:07.439 third straight loss. Ramon Rias hit a tie breaking home 0:10:07.520 --> 0:10:09.400 run in the sixth inning off of Garrett Cole, and 0:10:09.440 --> 0:10:12.439 the O's overcame two Aaron Judge Homers to pull off 0:10:12.480 --> 0:10:15.240 the upset. For Coal, he allowed five runs on seven 0:10:15.280 --> 0:10:18.360 hits and eight innings, taking his first loss of the season. 0:10:18.440 --> 0:10:21.199 There's manager Aaron Boone. A weird night tonight where Garrett 0:10:21.240 --> 0:10:24.040 was really for the most part dominant, you know, except 0:10:24.040 --> 0:10:26.600 that strain there for five to seven minutes in that 0:10:26.679 --> 0:10:29.880 one inning. Meanwhile, Yankees third baseman Josh Donaldson has been 0:10:29.920 --> 0:10:32.920 suspended one game by Major League Baseball after referring to 0:10:32.960 --> 0:10:37.640 White Sox shortstop Tim Anderson as Jackie, referencing Jackie Robinson. 0:10:37.800 --> 0:10:41.000 Donaldson is appealing the suspension, saying the reference stems from 0:10:41.040 --> 0:10:44.720 comments made by Anderson back in the interview when he 0:10:44.760 --> 0:10:48.800 compared himself to Robinson. Donaldson was placed on the COVID 0:10:48.920 --> 0:10:52.520 nineteen injury list yesterday prior to the game. The Mets 0:10:52.600 --> 0:10:55.000 last night beat the Giants thirteen three. Pete Alonso hit 0:10:55.000 --> 0:10:57.400 a three run homer. Jeff McNeil and Mark Canna also 0:10:57.440 --> 0:10:59.520 went deep as the Mets one for the fifth time 0:10:59.520 --> 0:11:02.440 in six schemes. David Peterson picked up the win, allowing 0:11:02.480 --> 0:11:05.440 two runs in six innings. Tonight, the Rangers looked even 0:11:05.520 --> 0:11:07.640 up their series with the Hurricanes at two games. A 0:11:07.720 --> 0:11:10.640 piece puck drop from the garden at seven o'clock tennis 0:11:10.679 --> 0:11:13.200 at the French Open. Several top players are out, including 0:11:13.200 --> 0:11:16.720 defending women's champ Barbara Kretchikova, the women's number to see 0:11:16.800 --> 0:11:21.120 losing to French teenager Diane Perry. Elsewhere, Naomi Osaka is 0:11:21.160 --> 0:11:24.480 out losing to Amanda Anissimova. Osaka says she's not a 0:11:25.200 --> 0:11:29.600 sure show compete at Wimbledon. I'm Scott Zedinberg with Bloomberg Sports. John, 0:11:29.880 --> 0:11:32.800 Thanks on Scott and hand of the can showupen on 0:11:32.880 --> 0:11:35.080 the Wall Street futures right now in the rad AMFPY 0:11:35.120 --> 0:11:39.040 yesterday's rally down futures down two hundred thirty two points, 0:11:39.320 --> 0:11:42.000 pairing some of the earlier losses down right now about 0:11:42.080 --> 0:11:45.079 seven tenths of eight percent, and SMP futures forty four 0:11:45.120 --> 0:11:48.559 points slower. That's down one point one percent, and the 0:11:48.760 --> 0:11:52.160 tech heavy nasday futures right now two hundred and two 0:11:52.200 --> 0:11:55.640 points lower, down one point seven percent. Among the most 0:11:55.679 --> 0:11:58.880 actively traded shares, the most actively traded in the pre 0:11:59.080 --> 0:12:06.920 markets of Snap. You're listening to Bloomberg tay Break and 0:12:07.160 --> 0:12:11.040 just Ahead. Recession for Europe forget it Francine laquis Her 0:12:11.160 --> 0:12:15.600 chat with Christine Legard Just Ahead. You're listening to Bloomberg 0:12:15.640 --> 0:12:25.120 tay Break, Markets, headlines and breaking news twenty four hours 0:12:25.120 --> 0:12:28.319 a day at Bloomberg dot Com. The Bloomberg Business Outland 0:12:28.400 --> 0:12:38.320 at Bloomberg Quicktap. He's a Bloomberg business flash and I'm 0:12:38.400 --> 0:12:42.000 Karen Moscow and futures are lower this morning. SMP futures 0:12:42.040 --> 0:12:45.040 down forty three points down, features down to what six 0:12:45.160 --> 0:12:47.960 nasdag features down two hundred and a ten year treasury 0:12:47.960 --> 0:12:51.160 of eleven thirty seconds yield two point eight zero percent, 0:12:51.360 --> 0:12:54.000 yield on the two year two point five eight percent. 0:12:54.640 --> 0:12:57.720 It is six seventeen on Wall Street Time for our 0:12:57.800 --> 0:13:00.920 daily crypto update, brought to you by in Geracted Brokers. 0:13:00.960 --> 0:13:03.240 It charges margin loan rates from one point three three 0:13:03.280 --> 0:13:06.400 percent to two point three three percent, rates subject to change. 0:13:06.480 --> 0:13:09.160 Learn more at ib k R dot com slash compare 0:13:09.559 --> 0:13:12.000 Now with the latest and crypto news. Here's Bloomberg's Ran 0:13:12.080 --> 0:13:14.360 need a young Ran, need a good morning, Good morning Karen. 0:13:14.480 --> 0:13:17.840 Right now, Bitcoin is trading just below thirty tho. It's 0:13:17.840 --> 0:13:20.240 been hovering around this level since the collapse of the 0:13:20.360 --> 0:13:24.800 Terra USD stable coin trigger to sell off in cryptocurrencies now. 0:13:24.840 --> 0:13:27.840 Bitcoin has also been struggling in recent weeks as inflation 0:13:27.920 --> 0:13:31.120 remains elevated, central banks going to rate hiking mode, and 0:13:31.160 --> 0:13:34.560 regulators call for stricter oversight of cryptos following that Terry 0:13:34.640 --> 0:13:37.920 USD stable collapse. Now, by the way, data from the 0:13:37.960 --> 0:13:41.520 crypto industry tracker defy Lama show the fallout from the 0:13:41.640 --> 0:13:45.320 terror USD and its sister token Luna has triggered an 0:13:45.320 --> 0:13:49.120 eighty three billion dollars slump in the decentralized finance sector, 0:13:49.480 --> 0:13:52.960 and Bloomberg Index of Digital coins is down about thirty 0:13:53.000 --> 0:13:56.760 percent this month so far. Meantime, crypto minor bit Nile 0:13:56.920 --> 0:13:59.679 is swinging between games and losses this morning, and it's 0:13:59.720 --> 0:14:03.200 after reporting first quarter results after the bell yesterday with 0:14:03.320 --> 0:14:07.200 revenue coming in higher than expected. That's your Bloomberg Crypto 0:14:07.320 --> 0:14:09.679 Update live in New York. I'm gonna need a young 0:14:09.679 --> 0:14:12.280 Bloomberg daybreak, Karen, I need to thank you. That's a 0:14:12.280 --> 0:14:15.240 Bloomberg business flash. Now here's Michael Barr with more on 0:14:15.400 --> 0:14:17.840 what's going on around the world. Michael Darren, thank you, 0:14:17.880 --> 0:14:21.120 President Joe Biden. As Warren fellow leaders of the informal 0:14:21.160 --> 0:14:25.080 Indo Pacific Security Coalition known as the CLAUDE, they are 0:14:25.160 --> 0:14:27.920 navigating through a dark hour in our shared history as 0:14:28.000 --> 0:14:31.800 Russia continues of brutal war on Ukraine. Doctors in Washington 0:14:31.880 --> 0:14:35.600 State are at the latest to announce the treating a 0:14:35.640 --> 0:14:38.440 patient with a suspected case of monkey box, ringing the 0:14:38.480 --> 0:14:42.160 number of states investigating cases to five NBA playoffs. The 0:14:42.200 --> 0:14:44.600 Celtics beat the Heat to even the series of two 0:14:44.640 --> 0:14:48.040 games apiece. Baseball, Yankees lost to the Orioles Mets be 0:14:48.160 --> 0:14:51.160 the Giants, Nationals, and He's lost. Global News twenty four 0:14:51.160 --> 0:14:53.680 hours a day on here and on Bloomberg quick Take, 0:14:53.880 --> 0:14:56.400 powered by more than twenty seven hundred journalists analysts more 0:14:56.400 --> 0:14:59.479 than a hundred twenty countries. Michael Barr and this is Bloomberg. 0:14:59.520 --> 0:15:02.160 John Sex twenty on Wall Street Line for the Bloomberg 0:15:02.200 --> 0:15:06.200 in Guranto Broker Studios. This is Bloomberg Daybreak. Christine Lagarance 0:15:06.320 --> 0:15:08.520 is the European Central Bank won't be rise to into 0:15:08.560 --> 0:15:13.240 withdrawing monetary stimulus as officials act to contain inflation. The 0:15:13.280 --> 0:15:16.640 easyb president sat down for an interview with Bloomberg's Francy 0:15:16.760 --> 0:15:20.840 Laqua the World Economic Forum in Daubles. The conversation comes 0:15:20.880 --> 0:15:23.200 just the day after Lagrant said higher interest rates are 0:15:23.240 --> 0:15:25.920 coming in July. Let's hear what she had to say 0:15:25.920 --> 0:15:28.760 about that. Listen to the interview right now. I think 0:15:28.760 --> 0:15:31.480 it was it was good to set out the terms 0:15:31.560 --> 0:15:34.280 under which we are going to turn the corner of 0:15:34.320 --> 0:15:37.080 negative interest rates. So was this more a message to 0:15:37.120 --> 0:15:39.880 the markets or is it more to a message to 0:15:39.920 --> 0:15:42.400 the members of the Governing Council. It was a message 0:15:42.400 --> 0:15:45.560 to anybody who is interested in monetary policy, really, because 0:15:45.560 --> 0:15:49.680 we have been going through eight years of negative interest rates, 0:15:50.080 --> 0:15:55.120 special accommodation and we are clearly now at the turning point, 0:15:55.360 --> 0:15:58.160 and I thought it was appropriate at this point to 0:15:58.280 --> 0:16:02.320 explain what the journey is, what the direction of travel is, 0:16:02.600 --> 0:16:06.560 what the destination is in the relatively short term, and 0:16:06.600 --> 0:16:09.920 what is our aim point as well. If you're hiking, 0:16:09.960 --> 0:16:13.760 you want to hike, why wait for July. We are 0:16:13.800 --> 0:16:17.760 not in in a panic mode and we've started that 0:16:17.880 --> 0:16:21.400 journey thinking about it very carefully back in December, with 0:16:21.520 --> 0:16:23.760 steps along the way, and we are not at a 0:16:23.840 --> 0:16:27.080 stage where there is every certainty that we will stop 0:16:27.160 --> 0:16:32.480 NETA said purchases very early in in July, deciding so 0:16:32.600 --> 0:16:36.160 in June, which will then clear the way for a 0:16:36.320 --> 0:16:40.560 rate hikes that will come reasonably shortly after that. Is 0:16:40.600 --> 0:16:42.840 there a danger that because of the timetable, which of 0:16:42.880 --> 0:16:44.480 course you know, goes to the credibility of the d 0:16:44.520 --> 0:16:46.640 c D, which is we do que first to re 0:16:46.840 --> 0:16:49.640 unwind that and then going to interest rates, that you 0:16:49.680 --> 0:16:52.520 miss a curve of inflation. I don't think so. I 0:16:52.560 --> 0:16:56.400 think that's you know, anybody who's very careful about analyzing 0:16:56.560 --> 0:17:00.520 really realizes that we are in a situation which is 0:17:00.600 --> 0:17:04.040 vastly different from that of the United States, and we 0:17:04.160 --> 0:17:08.640 are actually perfectly on time and not behind the curve. 0:17:09.000 --> 0:17:13.720 I think there is also great value in being steady predictable. 0:17:13.960 --> 0:17:17.280 And we said all along in our forward guidance that 0:17:17.320 --> 0:17:21.560 we would stop quantitative easing in terms of net asset 0:17:21.600 --> 0:17:25.119 purchases because we will continue reinvesting as as we go, 0:17:25.880 --> 0:17:28.320 and that then we look at at the interest rate, 0:17:28.560 --> 0:17:31.560 which will be the main tool further on. And then 0:17:31.920 --> 0:17:34.480 how difficult is it to actually give so much forward guidance, 0:17:34.520 --> 0:17:37.080 I guess as a message also to markets when you 0:17:37.119 --> 0:17:39.040 don't really know how Russia reacts. We could have a 0:17:39.080 --> 0:17:41.520 gas embargo, we could have an oil embargo that would 0:17:41.520 --> 0:17:44.320 really make the inflation ra issue out. You know, our 0:17:44.320 --> 0:17:50.520 mission is to um guarantee procure reinforced price stability defined 0:17:50.680 --> 0:17:54.920 as the two percent inflation. So we might be regarded 0:17:54.960 --> 0:17:57.320 as a bit stubborn in that respect, but that's the 0:17:57.400 --> 0:17:59.439 job we have to do. But of course we are 0:17:59.520 --> 0:18:02.639 data and we look at developments, we look at what 0:18:02.760 --> 0:18:06.560 it's going to influence inflation and inflation expectations. So we 0:18:06.800 --> 0:18:10.440 look very carefully at wages. At the moment wage negotiations, 0:18:10.720 --> 0:18:14.639 we're looking very carefully at all inflation expectations, and we 0:18:14.720 --> 0:18:18.359 believe that it is time to act as indicated, under 0:18:18.359 --> 0:18:21.440 what circumstances do you think a fifty basis point hike 0:18:21.720 --> 0:18:26.800 would be warranted? Look what I said is we are 0:18:26.840 --> 0:18:31.879 at the turning point. We have all the components in 0:18:31.960 --> 0:18:35.400 place for that. We are turning our back to negative 0:18:35.400 --> 0:18:40.760 interest rates. We are moving very likely into positive territory 0:18:40.840 --> 0:18:43.199 at the end of the third quarter, and then of 0:18:43.240 --> 0:18:47.520 course we will calibrate, we will stablish exactly by how 0:18:47.600 --> 0:18:50.240 much we want to do that. When you talk about, 0:18:50.400 --> 0:18:52.800 of course no longer negative rates, has a market quite 0:18:52.840 --> 0:18:56.800 understood that this could mean also positive rates. Well, you know, 0:18:56.840 --> 0:18:59.560 when you are out of negative, you can be at zero, 0:18:59.680 --> 0:19:02.359 you can be slightly above zero. This is something that 0:19:02.440 --> 0:19:06.479 we will determine on the basis of our projections, on 0:19:06.520 --> 0:19:09.840 the basis of our forward guidance. I think that there 0:19:09.880 --> 0:19:12.760 are good reasons to believe that all three conditions will 0:19:12.800 --> 0:19:16.919 be satisfied in June and further on during the summer. 0:19:17.560 --> 0:19:19.600 Where are we in the third quarter? Could we be 0:19:19.760 --> 0:19:21.680 you know, above zero in terms of interest rates? Is 0:19:21.720 --> 0:19:24.600 that kind of listen lectures, is what I'm saying. I 0:19:24.680 --> 0:19:28.160 stick to. We will be out of negative interest rates 0:19:28.480 --> 0:19:31.600 most likely before the end of the third quarter. And 0:19:31.640 --> 0:19:34.520 that was easyb President Christie in the garden speaking with 0:19:34.520 --> 0:19:38.440 Bloomberg's Francine Laquen from the World Economic Forum. Yet down 0:19:38.440 --> 0:19:42.240 those Switzerland. Catch more the interview online at Bloomberg dot 0:19:42.320 --> 0:19:45.480 com and ahead of the can show down on Wall Street. 0:19:45.840 --> 0:19:49.120 Futures are lower than our futures after yesterday's rally two 0:19:49.200 --> 0:19:52.800 hundred sixteen points lower, SMP futures down forty two and 0:19:52.840 --> 0:19:57.280 the nansday futures one ninety eight points lower. Seeing some 0:19:57.359 --> 0:20:01.080 strengthen the euro euro dollar one oh seven. Team. You're 0:20:01.119 --> 0:20:09.520 listening to Bloomberg Daybreak. Bloomberg Weather from meteorologist Rob Carolin. 0:20:09.960 --> 0:20:13.480 Mostly cloudy, passing shower, sprinkledle possible this morning. The high 0:20:13.520 --> 0:20:17.480 temperature about seven degrees so I mostly cloudy. Blows in 0:20:17.520 --> 0:20:25.399 the mid fifties, broadcasting live from the Bloomberg Interactive Broker 0:20:25.520 --> 0:20:28.920 Studio in New York. Bloomberg E living three on to Washington, 0:20:29.000 --> 0:20:32.880 d C, Bloomberg on to Boston, Bloomberg one O six 0:20:32.920 --> 0:20:36.119 one to San Francisco, Bloomberg nine sixteen to the country 0:20:36.240 --> 0:20:39.240 Sirius XM che A one nineteen and around the globe 0:20:39.320 --> 0:20:43.000 the Bloomberg Business app and Bloomberg Radio dot com. This 0:20:43.240 --> 0:20:51.560 is Bloomberg Daybreak. He has six thirty on Wall Street. 0:20:51.600 --> 0:20:54.320 Good morning, I'm John Tucker and I'm Karen Moscow. We 0:20:54.359 --> 0:20:56.800 are just about three hours away from the open of 0:20:56.920 --> 0:20:59.000 US trading. Time for the five things you need to 0:20:59.040 --> 0:21:01.159 notice start your day. Brought to you by i b 0:21:01.359 --> 0:21:05.440 KR Investment Advisors switched to Interactive Brokers for lowest cost 0:21:05.520 --> 0:21:09.399 global trading and turnkey custody solutions, no ticket charges and 0:21:09.480 --> 0:21:12.479 no conflicts of your interests at IBKR dot com slash 0:21:12.680 --> 0:21:16.920 r i A first Futures are declining following yesterday's rally 0:21:16.960 --> 0:21:20.280 to start the trading week. CEO of Goldman Sax International, 0:21:20.400 --> 0:21:23.960 Richard Nod says he expects swings and markets to continue 0:21:24.320 --> 0:21:27.960 as the FED attempts as off landing everybody wants to 0:21:27.960 --> 0:21:30.160 talk about procession. Yes, So there's a lot of data 0:21:30.200 --> 0:21:32.400 coming out and if you just think what we've come through, 0:21:32.600 --> 0:21:34.840 you know, the last two years, the pandemic, in the 0:21:34.920 --> 0:21:38.800 massive interventions. How do we find a steady path forward. 0:21:39.280 --> 0:21:43.440 It's not surprising this volatility bringing supplied them on into 0:21:43.520 --> 0:21:45.800 balance again. This is going to be a tricky journey. 0:21:45.960 --> 0:21:49.320 Goldman Sax International CEO Richard Knowledge spoke at the Bloomberg's 0:21:49.320 --> 0:21:52.640 Francy Laca. Laca at the World Economic Forum in Davos. 0:21:52.720 --> 0:21:55.640 Will speak live with Bank of America CEO Brian moynihan 0:21:55.680 --> 0:21:58.639 and Davos later this morning. Tune into Bloomberg Radio and 0:21:58.680 --> 0:22:01.440 Television at eleven am straight time to hear the full 0:22:01.440 --> 0:22:05.080 interview and Karen. Today's market ranction being influenced by disappointing 0:22:05.080 --> 0:22:08.919 earnings from Snap. Bloomberg's Nita Young joins us live with details. 0:22:08.960 --> 0:22:11.200 We need a good morning, Good morning John. When markets 0:22:11.200 --> 0:22:14.320 closed yesterday, Snap warned that it would miss second quarter 0:22:14.400 --> 0:22:18.640 profit and revenue forecasts and needs to slow hiring. CEO 0:22:18.720 --> 0:22:22.720 Evan Spiegel cites the economic environment and that sent shares 0:22:22.760 --> 0:22:25.280 tumbling around thirty, which appears to be holding in pre 0:22:25.400 --> 0:22:28.560 market trading. If that loss holds, it would be Snap's 0:22:28.600 --> 0:22:31.919 biggest daily drop on record, making the company lose some 0:22:32.080 --> 0:22:35.840 eleven billion dollars in market value. Snaps dragging down other 0:22:35.880 --> 0:22:39.040 tech names in pre market trading, Twitter, Meta, Pinterest, and 0:22:39.119 --> 0:22:42.560 Alphabet all lower. Live in New York, I'm goned a 0:22:42.600 --> 0:22:45.040 young Bloomberg day break. All right, Granita, thank you. Turning 0:22:45.040 --> 0:22:48.600 to monetary policy, Kansas City Fed President Esther George expects 0:22:48.600 --> 0:22:51.000 the Federal Reserve to raise interest rates to two per 0:22:51.080 --> 0:22:54.040 sent by August. She says tightening afterwards will be guided 0:22:54.080 --> 0:22:57.800 by how fast inflation cools off. And Overseas, Prinsident Biden 0:22:57.840 --> 0:23:00.560 wrapping up his trip to Asia, the press an urging 0:23:00.560 --> 0:23:03.639