1 00:00:03,320 --> 00:00:06,560 Speaker 1: Live from the Bloomberg Get directed Brooker Studios is Bloomberg 2 00:00:06,600 --> 00:00:11,080 Speaker 1: Daybreak for Tuesday, June two. Coming up this hour. Stocks 3 00:00:11,119 --> 00:00:14,600 Speaker 1: get a lift after China eases it's strict COVID protocols 4 00:00:14,840 --> 00:00:18,440 Speaker 1: thanks boosted dividend payouts after acing the FED stress tests. 5 00:00:18,680 --> 00:00:22,279 Speaker 1: ECB president Christine Legarde says rates are going higher, and 6 00:00:22,320 --> 00:00:25,960 Speaker 1: the January six Committee as a surprise hearing later today. 7 00:00:26,000 --> 00:00:28,960 Speaker 1: It's primary day in New York and six other states, 8 00:00:29,000 --> 00:00:32,000 Speaker 1: Plus it is sentencing day for Glaine Maxwell and the 9 00:00:32,080 --> 00:00:35,519 Speaker 1: Jeffrey Epstein's sexual abuse case. I'm Michael vaughn More and 10 00:00:36,080 --> 00:00:39,280 Speaker 1: I'm John Stasharon Sports another comeback win by the Yankees 11 00:00:39,320 --> 00:00:44,720 Speaker 1: and Kyrie Irving is opting in with the net. That's 12 00:00:44,720 --> 00:00:48,480 Speaker 1: all's training had on Bloomberg Daybreak on Bloomberg, he livened 13 00:00:48,479 --> 00:00:51,920 Speaker 1: free on New York, Bloomberg N one, Washington, d C, 14 00:00:52,400 --> 00:00:56,040 Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixties and 15 00:00:56,080 --> 00:00:59,680 Speaker 1: Francisco Sirius x M one nine team and around the 16 00:00:59,720 --> 00:01:03,040 Speaker 1: world on Bloomberg Radio dot Com and via the Bloomberg 17 00:01:03,080 --> 00:01:09,840 Speaker 1: Business App. Good Morning, I'm Nathan Hagar and I'm Karen 18 00:01:09,920 --> 00:01:13,240 Speaker 1: Moscow US Dock Index futures are higher this morning. We're 19 00:01:13,280 --> 00:01:15,039 Speaker 1: coming up to five oh one on Wall Street, and 20 00:01:15,040 --> 00:01:17,720 Speaker 1: we check the markets every fifteen minutes throughout the trading day. 21 00:01:18,040 --> 00:01:21,240 Speaker 1: On bloomberg SMP future is up twenty four points down. 22 00:01:21,280 --> 00:01:24,640 Speaker 1: Futures have two hundred and NASDAG futures up seventy two. 23 00:01:24,720 --> 00:01:27,200 Speaker 1: The ten year treasury down one thirty second. You have 24 00:01:27,319 --> 00:01:29,560 Speaker 1: three point to zero percent, and they yield on the 25 00:01:29,640 --> 00:01:33,480 Speaker 1: two year three point one cent. Nimex screwed oils up 26 00:01:33,520 --> 00:01:35,520 Speaker 1: one and a half percent, up a dollar fifty eight 27 00:01:35,520 --> 00:01:38,520 Speaker 1: at a hundred eleven dollars fifteen cents of barrel. Comex 28 00:01:38,520 --> 00:01:40,920 Speaker 1: school is up to ten percent or three dollars ninety 29 00:01:41,000 --> 00:01:44,679 Speaker 1: cents at eighteen seventy announced and the euro one point 30 00:01:44,680 --> 00:01:47,360 Speaker 1: oh five nine one against the dollar. Nathan Well, Karen. 31 00:01:47,400 --> 00:01:49,680 Speaker 1: The lift we're seeing in stocks this morning comes after 32 00:01:49,880 --> 00:01:53,280 Speaker 1: China made a major shift to its COVID nineteen policy. 33 00:01:53,640 --> 00:01:56,760 Speaker 1: China's cutting its quarantine period to ten days from up 34 00:01:56,760 --> 00:01:59,800 Speaker 1: to three weeks for inbound travelers. We get more from 35 00:02:00,120 --> 00:02:03,480 Speaker 1: m brigs John Lou in Beijing. The significance is the 36 00:02:03,560 --> 00:02:08,079 Speaker 1: amount of cross border travel, the amount of business people 37 00:02:08,120 --> 00:02:11,280 Speaker 1: coming in and out have been great really reduced since 38 00:02:11,320 --> 00:02:14,440 Speaker 1: the pandemic, largely because of that twenty one days of 39 00:02:14,520 --> 00:02:17,840 Speaker 1: quarantine people would potentially have to do when they come in. 40 00:02:18,480 --> 00:02:21,680 Speaker 1: This is a substantial reduction at half of what it 41 00:02:21,760 --> 00:02:24,520 Speaker 1: used to be. Not only is it for travelers, it's 42 00:02:24,520 --> 00:02:28,080 Speaker 1: also for people who coming to close contact with a 43 00:02:28,800 --> 00:02:32,040 Speaker 1: with an infected person. Bloom Brigs John lu says Asia's 44 00:02:32,040 --> 00:02:36,120 Speaker 1: stocks erased losses to climb for a fourth session. Tourism 45 00:02:36,160 --> 00:02:39,480 Speaker 1: related shares lead the gains well. Nathan Us futures are 46 00:02:39,480 --> 00:02:43,040 Speaker 1: also getting a boost on China easing COVID restrictions. Yesterday, 47 00:02:43,160 --> 00:02:46,320 Speaker 1: stocks started the week on a losing note, but Aaron Kennon, 48 00:02:46,440 --> 00:02:49,840 Speaker 1: chief executive at Clear Harbor Asset Management, says there are 49 00:02:49,880 --> 00:02:53,639 Speaker 1: some optimistic signs for investors. We are seeing some light 50 00:02:53,680 --> 00:02:55,040 Speaker 1: at the end of the tunnel. And I know it 51 00:02:55,280 --> 00:02:58,960 Speaker 1: may not be in vogue to suggest this, but um 52 00:02:59,280 --> 00:03:02,840 Speaker 1: inflation metrics such as you know, for example, copper down, 53 00:03:03,840 --> 00:03:06,799 Speaker 1: nickel off fifty I was looking at shipping rates. They're 54 00:03:06,840 --> 00:03:09,600 Speaker 1: down dramatically over the last couple of months. Aluminums off 55 00:03:09,639 --> 00:03:14,200 Speaker 1: thirty five iron or we you know, even even oils 56 00:03:14,240 --> 00:03:17,640 Speaker 1: off double digits. Right now, clear Harbor said, Management CEO 57 00:03:17,720 --> 00:03:21,120 Speaker 1: Aaron Kennon still recommends investors be cautious now, so does 58 00:03:21,120 --> 00:03:25,040 Speaker 1: Goldman sachscreen that firm strategists say US profit margin estimates 59 00:03:25,040 --> 00:03:27,440 Speaker 1: are too optimistic and that will put stocks at risk 60 00:03:27,480 --> 00:03:32,200 Speaker 1: and more declines when Wall Street analysts downgrade expectations. Goldman 61 00:03:32,200 --> 00:03:35,360 Speaker 1: analysts expect aggregate margins for S and P five companies 62 00:03:35,360 --> 00:03:39,200 Speaker 1: to remain flat in three even if the economy doesn't contract. 63 00:03:39,480 --> 00:03:41,760 Speaker 1: They say the risk is lower for the ten biggest 64 00:03:41,800 --> 00:03:45,480 Speaker 1: companies on the index, which account for nine of its earnings. 65 00:03:45,840 --> 00:03:48,880 Speaker 1: Well Nathan Bank stocks are higher in early trading. They 66 00:03:48,960 --> 00:03:53,160 Speaker 1: boosted dividends following success in passing bank stress tests. They 67 00:03:53,200 --> 00:03:56,440 Speaker 1: get more from Bloomberg. Charlie Pellett. Bank of America announced 68 00:03:56,440 --> 00:04:00,200 Speaker 1: a dividend increase, while Morgan Stanley boosted it's payout while 69 00:04:00,240 --> 00:04:04,320 Speaker 1: saying it will repurchase as much as twenty billion of stock. 70 00:04:04,680 --> 00:04:08,480 Speaker 1: Morgan Stanley boosted its quarterly dividend to seventy seven point 71 00:04:08,520 --> 00:04:11,880 Speaker 1: five cents a share from seventy cents. Bank of America's 72 00:04:11,920 --> 00:04:15,560 Speaker 1: payout climbs to twenty two cents from twenty one cents. 73 00:04:15,600 --> 00:04:20,479 Speaker 1: State Street Corps and Truest Financial also announced dividend increases. 74 00:04:21,080 --> 00:04:24,680 Speaker 1: In New York, Charlie Pellet Bloomberg daybreak, All right, Charlie, 75 00:04:24,720 --> 00:04:27,240 Speaker 1: thank you. This morning. Shares of Nike or down more 76 00:04:27,240 --> 00:04:30,000 Speaker 1: than two percent in early training, as Bloomberg has Doug 77 00:04:30,040 --> 00:04:33,480 Speaker 1: Krisner reports, the company offered a downbeat full year forecast 78 00:04:33,839 --> 00:04:36,440 Speaker 1: the sports where company said gross marching will be flat 79 00:04:36,480 --> 00:04:39,600 Speaker 1: to down fifty basis points and revenue is expected to 80 00:04:39,640 --> 00:04:42,039 Speaker 1: grow this fiscal year by one percent in the low 81 00:04:42,080 --> 00:04:45,560 Speaker 1: double digits. Nike is also being cautious on China. In 82 00:04:45,600 --> 00:04:48,440 Speaker 1: the last quarter, sales in the Greater China region fell 83 00:04:49,200 --> 00:04:52,560 Speaker 1: at constant currencies. Nike still views China as a long 84 00:04:52,680 --> 00:04:55,440 Speaker 1: term growth market and the company will continue to invest 85 00:04:55,520 --> 00:04:59,120 Speaker 1: in the region even with that China weakness. Overall revenue 86 00:04:59,120 --> 00:05:02,240 Speaker 1: for the last quarter beat estimate. Sinnike's board authorized a 87 00:05:02,279 --> 00:05:05,640 Speaker 1: new eighteen billion dollars stock buyback program. In New York, 88 00:05:05,640 --> 00:05:08,200 Speaker 1: i'd Christener Bloomberg daybreak, All right, Doug, thank you mean 89 00:05:08,200 --> 00:05:11,360 Speaker 1: now turn overseas where the European Central Banks Annual Forum 90 00:05:11,360 --> 00:05:13,839 Speaker 1: in CenTra is under way. An ar keynotes speech about 91 00:05:13,839 --> 00:05:17,000 Speaker 1: an hour ago. ECB President Christine Legard said rates are 92 00:05:17,040 --> 00:05:21,320 Speaker 1: going higher to combat inflation. In July, we intend to 93 00:05:21,440 --> 00:05:26,200 Speaker 1: raise our policy rates for the first time in eleven years, 94 00:05:26,720 --> 00:05:30,599 Speaker 1: and we have provided some guidance for our September policy 95 00:05:30,680 --> 00:05:35,440 Speaker 1: meeting and the rate path that we envisage thereafter. E 96 00:05:35,560 --> 00:05:37,839 Speaker 1: c D President Christine Lagar is saying no, the July 97 00:05:38,040 --> 00:05:40,120 Speaker 1: rate high will be a quarter of a point well. 98 00:05:40,160 --> 00:05:42,839 Speaker 1: Later this morning, Karen President Biden heads to Madrid for 99 00:05:42,880 --> 00:05:45,240 Speaker 1: a three day NATO summit. He'll be leaving a G 100 00:05:45,360 --> 00:05:48,520 Speaker 1: seven gathering in Germany that's been dominated by Russia's war 101 00:05:48,560 --> 00:05:51,680 Speaker 1: with Ukraine. G seven leaders accused Rush of committing a 102 00:05:51,720 --> 00:05:54,560 Speaker 1: war crime with an attack on a Ukrainian shopping mall 103 00:05:54,839 --> 00:05:58,360 Speaker 1: that left at least eighteen people dead. Ukrainian President vladimir's 104 00:05:58,440 --> 00:06:04,279 Speaker 1: Lensky is also condemning the hack. Only terrorists who have 105 00:06:04,400 --> 00:06:07,240 Speaker 1: no place on Earth could strike on such a location. 106 00:06:07,560 --> 00:06:10,159 Speaker 1: This is not a mistaken missile strike. It is a 107 00:06:10,200 --> 00:06:14,240 Speaker 1: calculated Russian strike on the shopping center. From President Zelinsky 108 00:06:14,240 --> 00:06:16,440 Speaker 1: addressed the G seven through an interpreter. As the summit 109 00:06:16,480 --> 00:06:18,920 Speaker 1: wraps up today, leaders are expected to announce they'll begin 110 00:06:19,000 --> 00:06:22,080 Speaker 1: exploring a price camp on Russian oil and gas. Back 111 00:06:22,080 --> 00:06:24,880 Speaker 1: here at home, Nathan. The January six Committee has quickly 112 00:06:24,920 --> 00:06:27,800 Speaker 1: added an additional hearing it's scoped for today. A Bloomberry 113 00:06:27,839 --> 00:06:30,400 Speaker 1: Zad Bachelor has a story a bit of a surprise. 114 00:06:30,480 --> 00:06:33,320 Speaker 1: The committee's signal last week though that it had obtained 115 00:06:33,320 --> 00:06:36,520 Speaker 1: new information and it obviously thinks it is important enough 116 00:06:36,560 --> 00:06:39,560 Speaker 1: to change the schedule like this. Sources say it will 117 00:06:39,600 --> 00:06:44,120 Speaker 1: center on information from documentary filmmaker Alex Holder about footage 118 00:06:44,120 --> 00:06:47,360 Speaker 1: he has of Donald Trump after the election and leading 119 00:06:47,440 --> 00:06:50,400 Speaker 1: up to the assault on the Capitol by his supporters. 120 00:06:50,560 --> 00:06:53,720 Speaker 1: It also has interviews with family members including Ivanka Trump, 121 00:06:53,800 --> 00:06:57,200 Speaker 1: Jared Kushner, and Eric Trump. Holder also says it has 122 00:06:57,360 --> 00:07:01,120 Speaker 1: never before seen footage of the insur direction attempt at 123 00:07:01,160 --> 00:07:04,880 Speaker 1: the Capitol in San Francisco. I'm at Baxter Bloomberg daybreak, 124 00:07:05,000 --> 00:07:07,279 Speaker 1: All right, thank you, Right now. SMP futures are up 125 00:07:07,279 --> 00:07:10,280 Speaker 1: twenty four points, staff futures up two to three. NASAC 126 00:07:10,360 --> 00:07:12,640 Speaker 1: futures are hired by seventy five points. In the tenure 127 00:07:12,680 --> 00:07:15,720 Speaker 1: treasury yield is three point to one per cent. Straight ahead, 128 00:07:15,720 --> 00:07:18,360 Speaker 1: your latest local headlines and a check of sports. This 129 00:07:18,600 --> 00:07:24,440 Speaker 1: is Bloomberg and it's South five oh seven on Wall 130 00:07:24,480 --> 00:07:26,800 Speaker 1: Street where at sixty seven degrees in Central Park still 131 00:07:26,800 --> 00:07:29,840 Speaker 1: got construction on the southbound Van Wick from Hillside to 132 00:07:29,840 --> 00:07:32,640 Speaker 1: Atlantic Avenue. Details coming up in Traffic. First Michael bar 133 00:07:32,800 --> 00:07:34,480 Speaker 1: with more on what's going on in New York and 134 00:07:34,520 --> 00:07:36,760 Speaker 1: around the world. Good morning, mich Call, Good morning Nathan. 135 00:07:36,880 --> 00:07:39,880 Speaker 1: Seven states, including New York, are sent to host primary 136 00:07:39,960 --> 00:07:43,560 Speaker 1: elections today, the first elections since last week's Supreme Court 137 00:07:43,680 --> 00:07:47,360 Speaker 1: ruling eliminating the constitutional right to an abortion. The slate 138 00:07:47,360 --> 00:07:50,400 Speaker 1: of nominating contest at all for the first clues as 139 00:07:50,560 --> 00:07:53,960 Speaker 1: to whether the political landscape has shifted for the Democrats. 140 00:07:54,000 --> 00:07:57,280 Speaker 1: New York Governor Kathy Hocole faces Tom Swazi and Jamanni 141 00:07:57,320 --> 00:08:03,040 Speaker 1: Williams for the gubernatorial nomination. Rob Astrino Andrew Giuliani, Harry Wilson, 142 00:08:03,120 --> 00:08:06,920 Speaker 1: and Lees Heldon are running for the GOP nomination for governor. 143 00:08:07,520 --> 00:08:11,200 Speaker 1: Judges block New York City from letting non citizens vote 144 00:08:11,200 --> 00:08:15,320 Speaker 1: from mayor and other municipal offices. Republicans challenged the measure 145 00:08:15,400 --> 00:08:18,880 Speaker 1: as unconstitutional, and a Staten Island judge agreed with the 146 00:08:18,920 --> 00:08:22,400 Speaker 1: GOP and the ruling. The law of supporters said it 147 00:08:22,560 --> 00:08:25,880 Speaker 1: gave an electoral voice to many people who have made 148 00:08:25,880 --> 00:08:28,120 Speaker 1: a home in the city and pay taxes, but faced 149 00:08:28,120 --> 00:08:31,640 Speaker 1: tough paths to citizenship. It is the latest tragedy to 150 00:08:31,640 --> 00:08:34,520 Speaker 1: claim the lives of migrants smuggled across the border from 151 00:08:34,520 --> 00:08:38,319 Speaker 1: Mexico to the US. Forty six people are dead after 152 00:08:38,320 --> 00:08:41,680 Speaker 1: being abandoned an attractor trailer on a remote back road 153 00:08:41,720 --> 00:08:45,920 Speaker 1: in San Antonio. Sixteen people were hospitalized, including four children. 154 00:08:46,160 --> 00:08:52,200 Speaker 1: San Antonio Police Chief Bill McManus, a worker who heard 155 00:08:52,280 --> 00:08:58,079 Speaker 1: a cry for help came out to investigate, found a 156 00:08:58,320 --> 00:09:01,800 Speaker 1: trailer with the doors partially open, open him up to 157 00:09:01,840 --> 00:09:06,200 Speaker 1: take a look and found a number of um the 158 00:09:06,240 --> 00:09:10,880 Speaker 1: ceased individuals inside. Chief McManus says three people have been arrested. 159 00:09:11,200 --> 00:09:13,920 Speaker 1: At least three people are dead after an Amtrak train 160 00:09:14,040 --> 00:09:17,040 Speaker 1: hit a dump truck in a rural Missouri and derailed. 161 00:09:17,320 --> 00:09:20,360 Speaker 1: This man was a passenger on board. Seats were coming apart, 162 00:09:20,840 --> 00:09:26,880 Speaker 1: bags were going everywhere, um and then after it stopped, 163 00:09:27,320 --> 00:09:31,000 Speaker 1: you could smell the fumes and so people started panicking, 164 00:09:31,000 --> 00:09:33,079 Speaker 1: thinking it was gonna catch fire. So we tried to 165 00:09:33,080 --> 00:09:36,080 Speaker 1: get out as quick as possible. Federal investigators will be 166 00:09:36,080 --> 00:09:39,160 Speaker 1: on the scene today. Delane Maxwell will be sentenced today 167 00:09:39,160 --> 00:09:41,720 Speaker 1: in New York for helping the wealthy finance here Jeffrey 168 00:09:41,720 --> 00:09:45,920 Speaker 1: Epstein sexually abuse underage girls. Maxwell's lawyers have asked the 169 00:09:46,000 --> 00:09:48,400 Speaker 1: judge sentence there to know more than five years, while 170 00:09:48,440 --> 00:09:51,960 Speaker 1: prosecutors say she deserves at least thirty years. Behind Bars 171 00:09:52,360 --> 00:09:54,840 Speaker 1: Global News twenty four hours a day on air and 172 00:09:55,000 --> 00:09:58,959 Speaker 1: on Bloomberg Quicktake, powered by more than journalists and analysts 173 00:09:59,040 --> 00:10:01,640 Speaker 1: more than a hundred twenty countries. I'm Michael bar This 174 00:10:01,760 --> 00:10:08,720 Speaker 1: is Bloomberg, Nathan. Thank you, Michael. Coming up to five 175 00:10:08,720 --> 00:10:10,959 Speaker 1: ten on Wall Street time for the Bloomberg Sports Update. 176 00:10:11,000 --> 00:10:13,560 Speaker 1: Good morning, John says, Good morning, Nathan. A nearer upset 177 00:10:13,559 --> 00:10:15,520 Speaker 1: in the Bronx Yankees for the best record baseball. The 178 00:10:15,520 --> 00:10:17,720 Speaker 1: Oakland has had the worst. And yet the AD's got 179 00:10:17,720 --> 00:10:20,440 Speaker 1: to Jordan montgoverning the third, and he scored five times 180 00:10:20,440 --> 00:10:22,880 Speaker 1: and led five to one. Turning up back came the 181 00:10:22,960 --> 00:10:25,000 Speaker 1: Yanks so bizarre seventh any when they were helped by 182 00:10:25,080 --> 00:10:29,040 Speaker 1: two catcher's interference calls against the ah Sean Murphy, Jack Donaldson, 183 00:10:29,120 --> 00:10:31,840 Speaker 1: Jose Travinia with two undoubles, the Yanks scored the last 184 00:10:31,880 --> 00:10:34,800 Speaker 1: eight runs. They won nine to five. Not quite the 185 00:10:34,840 --> 00:10:37,920 Speaker 1: emotion of Sunday's comeback went over Houston, but Aaron Boom 186 00:10:37,960 --> 00:10:41,160 Speaker 1: was still please a good one coming off. You know 187 00:10:41,240 --> 00:10:45,280 Speaker 1: obviously at high energy, intense series, you know, come out 188 00:10:45,280 --> 00:10:49,600 Speaker 1: here and get a little rain early. Um, I thought 189 00:10:49,600 --> 00:10:53,400 Speaker 1: our energy was good and uh and obviously a great 190 00:10:53,400 --> 00:10:55,960 Speaker 1: fan of hand Yanks are thirty two and nine at home. 191 00:10:56,000 --> 00:10:57,959 Speaker 1: Astro still in New York after that's what in the 192 00:10:58,000 --> 00:11:00,360 Speaker 1: Bronx they played the Mets tonight. The feeling those things 193 00:11:00,400 --> 00:11:02,760 Speaker 1: were not good between Kyrie Irving and the Nets, and 194 00:11:02,760 --> 00:11:05,280 Speaker 1: so Irving was gonna pass up thirty seven million dollars 195 00:11:05,280 --> 00:11:07,920 Speaker 1: for next season to become a free agent. Now, perhaps 196 00:11:07,960 --> 00:11:10,360 Speaker 1: there wasn't as much interest as he expected. Irving is 197 00:11:10,400 --> 00:11:13,240 Speaker 1: opting in he could still be traded. That's gm. Shawn 198 00:11:13,240 --> 00:11:16,160 Speaker 1: Marks hinted he wasn't thrilled with some of Irving's ways 199 00:11:16,200 --> 00:11:19,360 Speaker 1: that he likes players who are available, which Tyree offense 200 00:11:19,480 --> 00:11:22,440 Speaker 1: is not opening. They had Wimbledon defending champ always first 201 00:11:22,440 --> 00:11:25,439 Speaker 1: on center court, Novak Djokovic one in four sets. Rafael 202 00:11:25,480 --> 00:11:28,200 Speaker 1: the Dow plays this morning, Nanette Noon, it's the return 203 00:11:28,240 --> 00:11:32,079 Speaker 1: of Serena Williams now forty years old, winner of seven Wimbledon. 204 00:11:32,200 --> 00:11:35,040 Speaker 1: She's back after charring her hamstring. A year ago, Marlon 205 00:11:35,120 --> 00:11:37,440 Speaker 1: Briscoe has died. He was seventy six. In the nineteen 206 00:11:37,480 --> 00:11:40,400 Speaker 1: sixty eight, he was the starting quarterback for the Denver Broncos, 207 00:11:40,440 --> 00:11:43,840 Speaker 1: the first African Americans starting QB in Coro football history. 208 00:11:43,920 --> 00:11:45,920 Speaker 1: Later moved to wide receiver. He went two Super Bowls 209 00:11:45,920 --> 00:11:48,840 Speaker 1: with a Dolphins. Johns Sta actually were bloom Brooks falls 210 00:11:48,960 --> 00:11:51,360 Speaker 1: all right? John, Thank you. SMP futures are hired by 211 00:11:51,360 --> 00:11:54,000 Speaker 1: twenty seven point. Staff futures up tune at eighteen nests 212 00:11:54,000 --> 00:11:57,240 Speaker 1: ACT futures hired by eighty two points. The tenure treasury 213 00:11:57,360 --> 00:12:01,120 Speaker 1: is down four thirty seconds. The yield three point to one. 214 00:12:01,559 --> 00:12:08,720 Speaker 1: You're listening to Bloomberg day Break Bloomberg eleven three oh 215 00:12:08,760 --> 00:12:11,840 Speaker 1: weather pretty nice sunshine today with a HR eight mid 216 00:12:11,920 --> 00:12:15,959 Speaker 1: eighties tomorrow hotter for Thursday could hit ninety degrees right now, 217 00:12:16,000 --> 00:12:23,360 Speaker 1: clouds sixties seven degrees in Central Park Markets. Headlines and 218 00:12:23,440 --> 00:12:26,720 Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com, 219 00:12:26,840 --> 00:12:30,360 Speaker 1: the Bloomberg Business at and at Bloomberg Victape. This is 220 00:12:30,400 --> 00:12:39,440 Speaker 1: a Bloomberg Business lash and I'm Karen Moscow. Sofs are 221 00:12:39,559 --> 00:12:43,280 Speaker 1: rising after China softened its strict COVID protocols using investor 222 00:12:43,320 --> 00:12:45,960 Speaker 1: concerns about global growth, and we checked the markets every 223 00:12:45,960 --> 00:12:48,920 Speaker 1: fifteen minutes throughout the trading day on Bloomberg. Right now, 224 00:12:48,920 --> 00:12:51,680 Speaker 1: WESNP futures are up twenty four points down, futures up 225 00:12:51,720 --> 00:12:54,480 Speaker 1: a hundred ninety four, NAST day futures up seventy three 226 00:12:54,920 --> 00:12:57,400 Speaker 1: and the decks in Germany is up one per cent. 227 00:12:57,480 --> 00:13:00,439 Speaker 1: The ten year treasury down four thirty seconds ye three 228 00:13:00,480 --> 00:13:02,760 Speaker 1: point to one percent. They yield on the two year 229 00:13:02,880 --> 00:13:05,800 Speaker 1: three point one two percent. Nine X screwed oils up 230 00:13:05,800 --> 00:13:08,120 Speaker 1: pointed at quarter percent of a dollar thirty seven at 231 00:13:08,120 --> 00:13:10,800 Speaker 1: a hundred ten dollars ninety three cents of barrel comics 232 00:13:10,840 --> 00:13:13,319 Speaker 1: gold up two ten percent or three dollars twenty cents 233 00:13:13,320 --> 00:13:16,280 Speaker 1: at eighteen twenty eight announced. The euro one point oh 234 00:13:16,280 --> 00:13:18,920 Speaker 1: five eight nine against the dollar, British pound one point 235 00:13:18,920 --> 00:13:21,160 Speaker 1: to two seven six, the yen at one thirty five 236 00:13:21,200 --> 00:13:24,120 Speaker 1: point seven seven, and looking at bitcoin this morning have 237 00:13:24,200 --> 00:13:26,600 Speaker 1: more than one point one percent at twenty one thousand, 238 00:13:26,679 --> 00:13:29,560 Speaker 1: one hundred forty dollars. Today we are watching for reports 239 00:13:29,559 --> 00:13:32,439 Speaker 1: on wholesale inventoriesat today thirty Wall Street time and nine 240 00:13:32,480 --> 00:13:35,559 Speaker 1: it's two reports on home prices than at ten consumer confidence. 241 00:13:35,840 --> 00:13:38,440 Speaker 1: That's a Bloomberg business flash. Now here's Michael Barr with 242 00:13:38,480 --> 00:13:41,040 Speaker 1: more on what's going on around the world. Muncaele, good morning, 243 00:13:41,200 --> 00:13:44,880 Speaker 1: Good morning, Karen. The January six panel investigating the US 244 00:13:44,960 --> 00:13:47,760 Speaker 1: Capitol ryant is holding a surprise hearing today with an 245 00:13:47,840 --> 00:13:52,599 Speaker 1: unidentified witness. The last minute proceedings are being cloaked in secrecy, 246 00:13:53,000 --> 00:13:57,760 Speaker 1: raising expectations for new bombshells in the sweeping investigation. Rescuers 247 00:13:57,800 --> 00:14:00,720 Speaker 1: are searching through charred rubble of a shopping mall for 248 00:14:00,840 --> 00:14:03,840 Speaker 1: more victims of a Russian missile strike that has killed 249 00:14:03,880 --> 00:14:06,200 Speaker 1: at least eighteen and wounded scores of others in a 250 00:14:06,280 --> 00:14:09,960 Speaker 1: Ukrainian city. The U n Security Council scheduled an emergency 251 00:14:10,000 --> 00:14:13,560 Speaker 1: meeting today to discuss the attack. In baseball, the Yankees 252 00:14:13,640 --> 00:14:16,480 Speaker 1: one along with the Nationals and Orioles. The Red Sox 253 00:14:16,520 --> 00:14:19,560 Speaker 1: lost Global news twenty four hours a day on air 254 00:14:19,720 --> 00:14:23,120 Speaker 1: and on Bloomberg Quick Take, powered by more than seven 255 00:14:23,160 --> 00:14:25,800 Speaker 1: hundred journalists and analysts more than a hundred twenty countries. 256 00:14:26,160 --> 00:14:29,120 Speaker 1: Michael Barr, this is Bloomberg. Nathan, Okay, Michael, thank you. 257 00:14:29,160 --> 00:14:31,720 Speaker 1: It's five nineteen on Wall Street Live from the Bloomberg 258 00:14:31,760 --> 00:14:34,960 Speaker 1: Interactive Broker Studios. This is Bloomberg Daybreak, and we want 259 00:14:34,960 --> 00:14:37,120 Speaker 1: to get more now on our top story, the one 260 00:14:37,160 --> 00:14:40,160 Speaker 1: that's adding to some of the positive sentiment in markets 261 00:14:40,200 --> 00:14:44,760 Speaker 1: this morning, a potentially significant shift to China's COVID zero policy. 262 00:14:45,120 --> 00:14:48,840 Speaker 1: And accurr In, Our chief Asia economics correspondent from Bloomberg News, 263 00:14:49,120 --> 00:14:52,280 Speaker 1: joins us live from Hong Kong with more on this 264 00:14:52,320 --> 00:14:55,480 Speaker 1: story and a good morning. As we've been reporting, China 265 00:14:55,720 --> 00:15:00,360 Speaker 1: is cutting quarantine times in half for inbound travel milers. 266 00:15:00,680 --> 00:15:05,360 Speaker 1: How significant is this quite significant? Nathan? At least, you know, 267 00:15:05,400 --> 00:15:08,560 Speaker 1: symbolically at least, So it's going from fourteen days on 268 00:15:08,680 --> 00:15:13,840 Speaker 1: arrival to seven days plus three at at home. And 269 00:15:13,920 --> 00:15:16,320 Speaker 1: now they authlready say they're doing this because A they 270 00:15:16,320 --> 00:15:19,480 Speaker 1: have the virus under control and China, I think there 271 00:15:19,520 --> 00:15:22,680 Speaker 1: are twenty odd cases accounted for nationwide. Say that's number one. 272 00:15:22,760 --> 00:15:25,760 Speaker 1: Number two they say the oma con variant, the incubation 273 00:15:25,840 --> 00:15:27,840 Speaker 1: period is shorter, so they don't need it on its 274 00:15:27,920 --> 00:15:31,120 Speaker 1: quarantine to see how it developing. A. Then number three 275 00:15:31,120 --> 00:15:34,000 Speaker 1: they say they've already conducted some trials on this and 276 00:15:34,640 --> 00:15:36,320 Speaker 1: they seem they can pull us off with this seven 277 00:15:36,400 --> 00:15:39,400 Speaker 1: day plus three quarantine for international arrivals. That they are 278 00:15:39,440 --> 00:15:45,120 Speaker 1: also changing up the internal corn quarantine system because there's 279 00:15:45,160 --> 00:15:47,040 Speaker 1: a myriad of rules at the moment, from moving from 280 00:15:47,080 --> 00:15:49,200 Speaker 1: city to city or moving from problems the problems, and 281 00:15:49,240 --> 00:15:51,000 Speaker 1: China so will look there will be some changes there, 282 00:15:51,280 --> 00:15:54,480 Speaker 1: and they're even test me up the testing on arrival 283 00:15:54,800 --> 00:15:58,640 Speaker 1: requirements as well. So all told, it's it's the biggest 284 00:15:58,640 --> 00:16:03,240 Speaker 1: step yet by China on relaxing their COVID zero approach. However, 285 00:16:03,520 --> 00:16:06,680 Speaker 1: the authorities are saying they're not They're not deviating from 286 00:16:06,720 --> 00:16:09,560 Speaker 1: the overall goal of suppressent virus. They're just saying the 287 00:16:09,960 --> 00:16:12,960 Speaker 1: new scientific evidence is allowing them to make these changes. Yeah, 288 00:16:13,000 --> 00:16:15,080 Speaker 1: not so throw too much cold water on this, And 289 00:16:15,320 --> 00:16:18,480 Speaker 1: but it is still a pretty significant quarantine period compared 290 00:16:18,520 --> 00:16:20,280 Speaker 1: to what the rest of the world is doing much 291 00:16:20,400 --> 00:16:23,240 Speaker 1: must do. The rest of the world isn't doing COVID 292 00:16:23,360 --> 00:16:26,040 Speaker 1: zero anymore, and China has been known in the past 293 00:16:26,120 --> 00:16:30,680 Speaker 1: to ratchet up restrictions again if the pandemic rears its head. 294 00:16:30,760 --> 00:16:33,880 Speaker 1: So what's the possibility that that could happen again, that 295 00:16:34,000 --> 00:16:38,600 Speaker 1: the China could go back to tightening things up Exactly right. 296 00:16:38,600 --> 00:16:40,840 Speaker 1: I mean, there is an empha Stockholm syndrome here when 297 00:16:40,880 --> 00:16:42,360 Speaker 1: you go back from at one point it was twenty 298 00:16:42,360 --> 00:16:45,000 Speaker 1: one days quarantines above Shanna Hong Kong. Because at the 299 00:16:45,040 --> 00:16:47,600 Speaker 1: fourteen you welcomed up. Now then to seven it seems 300 00:16:47,640 --> 00:16:51,320 Speaker 1: like progress. The chambers of commerce are welcoming it for now. 301 00:16:51,400 --> 00:16:53,560 Speaker 1: They're saying it will make things a little bit easier 302 00:16:54,040 --> 00:16:57,120 Speaker 1: and to get in and out. But to your point, Nathan, 303 00:16:57,160 --> 00:17:00,120 Speaker 1: there is no doubt that at the same time the 304 00:17:00,120 --> 00:17:03,280 Speaker 1: authorities delivered his message there dubbing down on its idea 305 00:17:03,320 --> 00:17:05,959 Speaker 1: of COVID zero. They're not loosening up, they're not letting go. 306 00:17:06,600 --> 00:17:10,440 Speaker 1: And the you know, the as with the omen con variant, 307 00:17:10,560 --> 00:17:13,280 Speaker 1: as contagious and as transissible as it is, obviously it's 308 00:17:13,280 --> 00:17:15,480 Speaker 1: going to be a running battle to keep it under control. 309 00:17:15,720 --> 00:17:19,680 Speaker 1: So there will be ongoing concerns over you know, it's 310 00:17:19,680 --> 00:17:22,840 Speaker 1: not restrictions on the ground and outright lockdowns on the ground, 311 00:17:22,920 --> 00:17:26,600 Speaker 1: and of course the potential for perhaps hard curves in 312 00:17:26,680 --> 00:17:29,720 Speaker 1: terms of international passions on arrival there. At the point 313 00:17:29,720 --> 00:17:32,120 Speaker 1: of course is that even though they are bringing down 314 00:17:32,119 --> 00:17:35,719 Speaker 1: the quarantine, you know, China is still being serviced by 315 00:17:35,840 --> 00:17:38,240 Speaker 1: a rock bottom number of flights, the rock bottom number 316 00:17:38,280 --> 00:17:41,359 Speaker 1: of airlines. The capacity isn't there. So even those who 317 00:17:41,400 --> 00:17:43,480 Speaker 1: are willing to make the trip out to China, either 318 00:17:43,560 --> 00:17:45,720 Speaker 1: into or out of China to do business there, and 319 00:17:46,200 --> 00:17:47,639 Speaker 1: you know, they doesn't have to go over the hurdle 320 00:17:47,680 --> 00:17:50,000 Speaker 1: of getting airlines that can actually get them. They're giving 321 00:17:50,040 --> 00:17:52,240 Speaker 1: a lot of passage that's on that's on offering. So 322 00:17:52,880 --> 00:17:55,280 Speaker 1: it's a headline development, it's a big it is a 323 00:17:55,440 --> 00:17:57,879 Speaker 1: material development, much you said. But to your point, the 324 00:17:57,920 --> 00:18:01,359 Speaker 1: officials are also being careful, said enough deviating from COVID zero. 325 00:18:01,640 --> 00:18:05,080 Speaker 1: That remains our central pology when it comes to containing devirus. Now, 326 00:18:05,119 --> 00:18:07,600 Speaker 1: we've seen some of the toll that the COVID zero 327 00:18:07,600 --> 00:18:11,040 Speaker 1: policy has taken, particularly with the weeks long shutdowns we 328 00:18:11,080 --> 00:18:14,399 Speaker 1: saw in Shanghai and other major cities in China. What 329 00:18:14,560 --> 00:18:17,240 Speaker 1: is the toll that COVID zero has taken on the 330 00:18:17,320 --> 00:18:21,040 Speaker 1: Chinese economy. Well, let's send the economy into a tail 331 00:18:21,119 --> 00:18:25,520 Speaker 1: spin is through the early part of this year, now, Nathan, 332 00:18:25,640 --> 00:18:28,119 Speaker 1: Let's not forget of course, COVID zero for twenty twenty 333 00:18:28,160 --> 00:18:31,320 Speaker 1: and twenty one allowed sean As economy to a d 334 00:18:31,359 --> 00:18:34,879 Speaker 1: shape rebound and exporters boomed and consumers were able to 335 00:18:34,960 --> 00:18:37,000 Speaker 1: regain some of their conference so worked in twent and 336 00:18:37,040 --> 00:18:40,240 Speaker 1: twenty one. This year, COVID zero didn't necessarily work because 337 00:18:40,240 --> 00:18:43,680 Speaker 1: of the omicron really tested to the limits, forced those 338 00:18:43,720 --> 00:18:46,800 Speaker 1: big lockdowns, especially of Shanghai and the very least a 339 00:18:46,880 --> 00:18:49,800 Speaker 1: forced all the manner of restrictions and loss testing around 340 00:18:49,800 --> 00:18:51,919 Speaker 1: the rest of the country. That they show that everything 341 00:18:51,960 --> 00:18:56,280 Speaker 1: from people's consumers spending patterns through to a manufacturing and 342 00:18:56,359 --> 00:18:58,600 Speaker 1: production and the shipping from the ports. So the end 343 00:18:58,600 --> 00:19:00,840 Speaker 1: result of what people are saying that the second quarter, 344 00:19:01,040 --> 00:19:04,480 Speaker 1: in the second quarter the economy may have contracted compared 345 00:19:04,480 --> 00:19:08,960 Speaker 1: to the previous quarter, the end resose is Bloomberg Economics 346 00:19:09,000 --> 00:19:12,040 Speaker 1: talking about annual growth maybe of three odd percent of 347 00:19:12,200 --> 00:19:15,080 Speaker 1: this year. That's a long way from the government's growth 348 00:19:15,160 --> 00:19:17,840 Speaker 1: targetified and half center. And remember very news with for 349 00:19:17,960 --> 00:19:20,359 Speaker 1: China to MR growth targeting not at least bits about 350 00:19:20,359 --> 00:19:24,320 Speaker 1: that kind of margin. And also even though dot down 351 00:19:24,320 --> 00:19:26,200 Speaker 1: has been lifted now and a lot of the restrictions 352 00:19:26,240 --> 00:19:29,680 Speaker 1: are easing, there's still a sense of wariness and cult 353 00:19:29,760 --> 00:19:33,000 Speaker 1: in both among businesses and consumers and colleagues reporters. Every 354 00:19:33,040 --> 00:19:34,840 Speaker 1: day there's still a hole in the economy that needs 355 00:19:34,840 --> 00:19:36,680 Speaker 1: to be filled. Yeah, I'm sure there is. And the 356 00:19:36,760 --> 00:19:40,200 Speaker 1: current our chief Asian economics correspondent for Bloomberg News, thanks 357 00:19:40,200 --> 00:19:43,120 Speaker 1: for this giving us more context into this headline move 358 00:19:43,200 --> 00:19:46,800 Speaker 1: out of China that quarantines are being cut in half 359 00:19:46,800 --> 00:19:51,720 Speaker 1: for inbound travelers, from fourteen days to seven days in 360 00:19:51,800 --> 00:19:55,280 Speaker 1: quarantine centers and another three days at home right now. 361 00:19:55,320 --> 00:19:58,320 Speaker 1: Futures moving higher, SMP futures up twenty two points, staff 362 00:19:58,359 --> 00:20:01,040 Speaker 1: futures up a hundred eighty seven. Stack features are higher 363 00:20:01,160 --> 00:20:08,160 Speaker 1: by seventy points. You're listening to Bloomberg Daybreak Bloomberg eleven 364 00:20:08,200 --> 00:20:10,240 Speaker 1: three oh weather. Lots of sunshine today with the high 365 00:20:10,240 --> 00:20:12,760 Speaker 1: near eighty degrees, will be in the mid eighties tomorrow. 366 00:20:12,880 --> 00:20:17,639 Speaker 1: By Thursday, it's gonna get hot higher ninety Right now 367 00:20:17,680 --> 00:20:27,320 Speaker 1: sixty seven in Central Park, broadcasting live from the Bloomberg 368 00:20:27,400 --> 00:20:30,960 Speaker 1: Interactive Broker Studio in New York. Bloomberg E living free 369 00:20:31,000 --> 00:20:34,400 Speaker 1: on to Washington, d C, Bloomberg nine one to Boston, 370 00:20:34,520 --> 00:20:37,920 Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg M 371 00:20:38,000 --> 00:20:41,240 Speaker 1: sixty to the country, Sirius XM Cho one nine and 372 00:20:41,320 --> 00:20:44,720 Speaker 1: around the globe. The Bloomberg Business app and Bloomberg Radio 373 00:20:44,800 --> 00:20:54,159 Speaker 1: dot Com. This is Bloomberg Daybreak. It's five thirty on 374 00:20:54,160 --> 00:20:57,160 Speaker 1: Wall Street. Good morning. I'm Nathan Hager and I'm Karen Moscow. 375 00:20:57,160 --> 00:20:59,119 Speaker 1: We're just about four hours away from the open of 376 00:20:59,200 --> 00:21:01,120 Speaker 1: US trading sketch. You have to date on the news, 377 00:21:01,119 --> 00:21:02,919 Speaker 1: you need to know at this hour. We begin with 378 00:21:02,960 --> 00:21:06,000 Speaker 1: a lift in stocks coming after China made a major 379 00:21:06,119 --> 00:21:09,119 Speaker 1: shift and its COVID nineteen policy. It kind of its 380 00:21:09,160 --> 00:21:13,000 Speaker 1: quarantine period to ten days from three weeks for inbound visitors. 381 00:21:13,200 --> 00:21:17,120 Speaker 1: Bloomberg Senior Executive editor John Lewin Beijing outlines the reasons 382 00:21:17,200 --> 00:21:20,199 Speaker 1: for the move. The caseload has come down substantially. The 383 00:21:20,240 --> 00:21:23,640 Speaker 1: other thing is the economy has obviously been pummeled. Last 384 00:21:23,680 --> 00:21:26,200 Speaker 1: week we had President Jin coming out and saying that 385 00:21:26,240 --> 00:21:28,440 Speaker 1: the government is going to do what it can to 386 00:21:28,560 --> 00:21:31,040 Speaker 1: hit this year's growth target. If the government is value 387 00:21:31,040 --> 00:21:33,120 Speaker 1: and if it's willing to take steps like this, it's 388 00:21:33,160 --> 00:21:35,120 Speaker 1: possible we might get closer to five and a half 389 00:21:35,200 --> 00:21:38,359 Speaker 1: percent than previously talked. And Bloomberg John Lewis says the 390 00:21:38,400 --> 00:21:40,879 Speaker 1: Asian equity into extra race losses to climb for a 391 00:21:40,960 --> 00:21:43,600 Speaker 1: fourth session. Now we're watching futures get a boost as 392 00:21:43,600 --> 00:21:45,800 Speaker 1: well care and yesterday stocks started the week on a 393 00:21:45,840 --> 00:21:50,680 Speaker 1: losing note. Riverfront Investment Group chief investment strategist Chris Constantino says, 394 00:21:50,680 --> 00:21:53,440 Speaker 1: with the outlook remaining unclear, investors should put their money 395 00:21:53,680 --> 00:21:57,480 Speaker 1: in safe assets. We think that clipping coupons in the 396 00:21:57,520 --> 00:22:00,879 Speaker 1: form of you know, dividend yields from safe, high quality, 397 00:22:01,160 --> 00:22:03,840 Speaker 1: high cash flow type equities as well as certain parts 398 00:22:03,840 --> 00:22:06,479 Speaker 1: of the fixed income world, those types of instruments are 399 00:22:06,480 --> 00:22:08,240 Speaker 1: really going to be an investor's best friend, we think 400 00:22:08,240 --> 00:22:11,280 Speaker 1: for the next few years. Chris Constantinos, verb Front Investment 401 00:22:11,320 --> 00:22:13,679 Speaker 1: Group says, the macro economic environment in the U S 402 00:22:13,720 --> 00:22:17,160 Speaker 1: and globally remains uncertain. Well. Turning to retail now, Nathan 403 00:22:17,200 --> 00:22:19,720 Speaker 1: shares of Nike down two points seven percent in early 404 00:22:19,760 --> 00:22:22,960 Speaker 1: trading yesterday. The sportswear company offered a downbeat full year 405 00:22:23,000 --> 00:22:26,919 Speaker 1: forecast for gross margin overseas. The European Central Banks Annual 406 00:22:26,960 --> 00:22:30,400 Speaker 1: Forum is underway in Central Portugal. The ECB President Christine 407 00:22:30,440 --> 00:22:34,000 Speaker 1: Legard addressed interest rates and inflation in her keynote speech. 408 00:22:34,359 --> 00:22:38,600 Speaker 1: In response to the changing inflation outlook, we have consistently 409 00:22:38,760 --> 00:22:42,960 Speaker 1: followed the path of policy normalization since December last year, 410 00:22:43,520 --> 00:22:48,800 Speaker 1: sequentially adjusting our policy stants. ECB president Christine Legard says 411 00:22:48,840 --> 00:22:52,080 Speaker 1: inflation in Europe is expected to remain undesirably high in 412 00:22:52,119 --> 00:22:55,520 Speaker 1: the foreseeable future. President Biden is on his way to Madrid, 413 00:22:55,640 --> 00:22:58,159 Speaker 1: Nathan for a three day in NATO summit with a 414 00:22:58,160 --> 00:23:01,399 Speaker 1: Group of Seven gathering coming close Stua closed rather G 415 00:23:01,560 --> 00:23:04,000 Speaker 1: seven leaders accused Russia of committing a war crime with 416 00:23:04,080 --> 00:23:06,960 Speaker 1: an attack on the Ukrainian shopping mall that left eighteen 417 00:23:07,000 --> 00:23:11,600 Speaker 1: people dead. Ukrainian President Vladimir Zolinski also condemned the attack 418 00:23:11,880 --> 00:23:14,160 Speaker 1: and back here at homecare in the January sixth committee 419 00:23:14,160 --> 00:23:17,359 Speaker 1: has added an additional hearing today. Sources say we'll center 420 00:23:17,400 --> 00:23:21,760 Speaker 1: on information and footage from documentary filmmaker Alex Holder. Futures 421 00:23:21,760 --> 00:23:23,960 Speaker 1: this morning on the rise, s ANDP future is up 422 00:23:23,960 --> 00:23:26,880 Speaker 1: twenty four points down, futures of a hundred ninety four 423 00:23:26,880 --> 00:23:29,439 Speaker 1: and Asdak futures of seventy four, trying to head your 424 00:23:29,480 --> 00:23:32,879 Speaker 1: latest local headlines, plus a check of sports. And this 425 00:23:33,280 --> 00:23:40,439 Speaker 1: is Bloomberg three on Wall Street, sixty six degrees in 426 00:23:40,440 --> 00:23:42,360 Speaker 1: Central Park, and we got an accident on the northbound 427 00:23:42,359 --> 00:23:45,000 Speaker 1: New York State threw eggs at fourteen A. Michael Barr 428 00:23:45,040 --> 00:23:46,600 Speaker 1: has more on what's going on in New York and 429 00:23:46,720 --> 00:23:49,119 Speaker 1: around the world. Michael, thank you very much, Nathan. Today 430 00:23:49,200 --> 00:23:52,199 Speaker 1: marks the first election since the Supreme Court revoked a 431 00:23:52,200 --> 00:23:55,920 Speaker 1: woman's constitutional right to an abortion. It's a top issue 432 00:23:55,920 --> 00:23:59,520 Speaker 1: in multiple races and primaries, and seven states, including New York, 433 00:23:59,720 --> 00:24:03,080 Speaker 1: got to Kathe hohlco faces Tom Swazi and Jamanni Williams 434 00:24:03,119 --> 00:24:08,520 Speaker 1: for the Democratic gubernatorial nomination. Rob Astino Andrew Giuliani, Harry Wilson, 435 00:24:08,560 --> 00:24:11,960 Speaker 1: and Lees Eldon are running for the GOP nomination for governor. 436 00:24:12,320 --> 00:24:14,960 Speaker 1: A judge has blocked New York City from letting non 437 00:24:15,080 --> 00:24:19,119 Speaker 1: citizens vote from mayor and other municipal offices. The judge 438 00:24:19,160 --> 00:24:23,320 Speaker 1: agreed with Republicans who challenged the measure as unconstitutional. A 439 00:24:23,400 --> 00:24:27,160 Speaker 1: federal court in Louisiana temporarily blocked the state from enforcing 440 00:24:27,160 --> 00:24:30,719 Speaker 1: its abortion band. Louisiana is one of thirteen states with 441 00:24:30,920 --> 00:24:34,360 Speaker 1: trigger laws that took effect when the Supreme Court overturned 442 00:24:34,359 --> 00:24:37,920 Speaker 1: the federal right to an abortion. Abortion clinics there immediately 443 00:24:37,960 --> 00:24:41,760 Speaker 1: sued to stop Louisiana his band, saying it lacks safeguards 444 00:24:41,800 --> 00:24:45,880 Speaker 1: to prevent the state from arbitrarily enforcing it. Police say 445 00:24:45,920 --> 00:24:48,480 Speaker 1: forty six people were found dead in a semi trailer 446 00:24:48,560 --> 00:24:52,280 Speaker 1: park in San Antonio, Texas, likely victims of heat strokes. 447 00:24:52,560 --> 00:24:56,840 Speaker 1: Another sixteen victims, all believed to be migrants, were hospitalized. 448 00:24:57,080 --> 00:25:02,000 Speaker 1: San Antonio Mayor ron Nyronberg are dealing with a horrific 449 00:25:02,080 --> 00:25:04,960 Speaker 1: human tragedy. So I would urge you all to think 450 00:25:04,960 --> 00:25:09,879 Speaker 1: compassionately and pray for the deceased, the ailing, the families, 451 00:25:10,359 --> 00:25:13,800 Speaker 1: Mayor Nyronberg. Three people have been taken into custody. Three 452 00:25:13,840 --> 00:25:16,520 Speaker 1: people are dead after an Amtrak train hit a dump 453 00:25:16,560 --> 00:25:20,399 Speaker 1: truck and derailed in rural Missouri between Kansas and St. Louis. 454 00:25:20,600 --> 00:25:22,960 Speaker 1: This man was a passenger on board. The thing that's 455 00:25:22,960 --> 00:25:24,680 Speaker 1: going to step with me the most is the smell 456 00:25:25,440 --> 00:25:29,280 Speaker 1: of just the train, the grinding on the nettle and everything, 457 00:25:29,880 --> 00:25:33,240 Speaker 1: and TSB investigators will be on the accident scene today. 458 00:25:33,440 --> 00:25:35,960 Speaker 1: Glaie Maxwell will be sentenced today in New York for 459 00:25:36,080 --> 00:25:41,080 Speaker 1: helping the wealthy financier Jeffrey Epstein sexually abused underage girls. 460 00:25:41,640 --> 00:25:45,800 Speaker 1: The prosecution says Epstein and Maxwell groom vulnerable girls and 461 00:25:45,800 --> 00:25:48,880 Speaker 1: then exploited them. Global News twenty four hours a day 462 00:25:48,960 --> 00:25:51,760 Speaker 1: on air and on Bloomberg Quicktake powered by more than 463 00:25:52,359 --> 00:25:54,919 Speaker 1: hundred journalists analysts more than a hundred, twenty countries by 464 00:25:55,040 --> 00:26:03,720 Speaker 1: Michael Barren. This is Bloomberg, Nathan. Thanks Michael. On Wall Street. 465 00:26:03,760 --> 00:26:05,720 Speaker 1: Time for the Bloomberg Sports Update with John stand Show. 466 00:26:05,720 --> 00:26:08,120 Speaker 1: All right, Nathan. The Yankees fifty four one of the year, 467 00:26:08,160 --> 00:26:10,960 Speaker 1: thirty second home and it was their twenty third come 468 00:26:11,040 --> 00:26:12,720 Speaker 1: from behind victory. In fact, at eight to the yank 469 00:26:12,880 --> 00:26:15,560 Speaker 1: last four wins, they trailed by at least three runs. 470 00:26:15,560 --> 00:26:17,639 Speaker 1: They were down by four as the lowly Oakland A 471 00:26:17,800 --> 00:26:19,800 Speaker 1: scored five times in the third inning, but the Yanks 472 00:26:20,040 --> 00:26:22,399 Speaker 1: put out six and the seventh. The first run was 473 00:26:22,440 --> 00:26:25,400 Speaker 1: scored with a walk, I catcher's interference call I hit 474 00:26:25,440 --> 00:26:28,520 Speaker 1: by pitch and then another catcher's interference Josh Donaldson Jose 475 00:26:28,640 --> 00:26:31,120 Speaker 1: Travino with two on doubles. Yanks beat the A's nine 476 00:26:31,160 --> 00:26:33,520 Speaker 1: to five. Let's back home tonight, can play the Astros. 477 00:26:33,960 --> 00:26:37,000 Speaker 1: NBA free agency comes next week. Kyrie Irving will not 478 00:26:37,119 --> 00:26:39,520 Speaker 1: be one. He's opting in with the Nets. Will make 479 00:26:39,560 --> 00:26:42,080 Speaker 1: thirty seven million, can be a free agent next year. 480 00:26:42,080 --> 00:26:43,920 Speaker 1: We'll see the Nets still try to trade him. They 481 00:26:44,000 --> 00:26:46,800 Speaker 1: like Irving. The player, but maybe not as thrilled with 482 00:26:46,880 --> 00:26:49,160 Speaker 1: some of the baggage that comes with him. John wall, 483 00:26:49,200 --> 00:26:51,159 Speaker 1: at one time All Star guard who hasn't played much 484 00:26:51,240 --> 00:26:53,359 Speaker 1: lately due to injury, said to be headed to the 485 00:26:53,480 --> 00:26:55,640 Speaker 1: l A Clippers to Shaun Watson has a hearing today 486 00:26:55,680 --> 00:26:58,240 Speaker 1: before the former judge who will decide if he's to 487 00:26:58,280 --> 00:27:01,200 Speaker 1: be suspended by the NFL for sexual misconduct with me 488 00:27:01,440 --> 00:27:04,719 Speaker 1: As a year ago at Wimbledon, Serena Williams heard her 489 00:27:04,760 --> 00:27:06,879 Speaker 1: hamstring in the opening round. It wasn't known if she 490 00:27:06,920 --> 00:27:09,439 Speaker 1: did play again, but the now fourty year old seventh 491 00:27:09,480 --> 00:27:13,560 Speaker 1: on Wimbledon champ beyond center for today. I didn't retire. 492 00:27:13,640 --> 00:27:21,960 Speaker 1: I just needed to kill physically mentally. Um and yeah, 493 00:27:22,040 --> 00:27:24,800 Speaker 1: I just I had no plans, to be honest, I 494 00:27:24,920 --> 00:27:27,600 Speaker 1: just didn't know when I would come back. I don't 495 00:27:27,640 --> 00:27:32,280 Speaker 1: know how I would come back, and um, it just 496 00:27:33,200 --> 00:27:36,280 Speaker 1: you know, obviously, Wimbledon is such a great place to 497 00:27:36,320 --> 00:27:40,800 Speaker 1: be and it just kind of worked out Grand Slam 498 00:27:40,880 --> 00:27:44,160 Speaker 1: title with the Tide all time Josh Gashward, Bloomberg Sports, 499 00:27:44,560 --> 00:27:46,920 Speaker 1: thank you John seven on Wall Street Time for the 500 00:27:47,000 --> 00:27:51,240 Speaker 1: Tri State Business Report. Here's Bloomberg's d Cory Manhattan's hot 501 00:27:51,280 --> 00:27:54,800 Speaker 1: real estate market is starting to cool as sales boomed 502 00:27:54,840 --> 00:27:59,439 Speaker 1: from late twenty through early two. Potential buyers jumped in 503 00:27:59,560 --> 00:28:03,080 Speaker 1: before rices rose further, but now some buyers are putting 504 00:28:03,080 --> 00:28:05,879 Speaker 1: their hunt on hold. Other consumers who were continuing to 505 00:28:06,000 --> 00:28:09,560 Speaker 1: look are starting to become pickier about price. New York's 506 00:28:09,680 --> 00:28:12,760 Speaker 1: mt A is working on reducing the costs to ensure 507 00:28:12,840 --> 00:28:16,560 Speaker 1: construction work going out to bid for insurance. MTA shows 508 00:28:16,600 --> 00:28:20,040 Speaker 1: firms that safety practice as an ability to avoid accidents. 509 00:28:20,119 --> 00:28:24,000 Speaker 1: The agency estimation will save between sixty and nine million 510 00:28:24,080 --> 00:28:27,000 Speaker 1: dollars in the next twelve months by securing costs saving 511 00:28:27,080 --> 00:28:32,040 Speaker 1: coverage known as owner controlled insurance. Lifeguard shortages are making 512 00:28:32,080 --> 00:28:36,000 Speaker 1: it tough to open some swim areas safely. As of Monday, 513 00:28:36,080 --> 00:28:40,360 Speaker 1: the job website indeed dot com listed more than fourteen 514 00:28:40,520 --> 00:28:44,200 Speaker 1: hundred available positions in New Jersey for lifeguards. That your 515 00:28:44,200 --> 00:28:47,960 Speaker 1: Bloomberg Dry State Business Report. I'm Ed Corey. Thank you Ed. 516 00:28:48,000 --> 00:28:50,440 Speaker 1: It's five thirty eight on Wall Street. Bloomberg Radio is 517 00:28:50,480 --> 00:28:52,920 Speaker 1: on the air from San Francisco to New York, London 518 00:28:53,000 --> 00:28:55,240 Speaker 1: to Hong Kong. Let's check in with our global news 519 00:28:55,240 --> 00:28:57,000 Speaker 1: team for some of the top stories heard on our 520 00:28:57,040 --> 00:29:02,960 Speaker 1: three hundred affiliate radio stations around the world. I'm Steve 521 00:29:03,080 --> 00:29:05,960 Speaker 1: Potus and on ten ten Wins in New York, we're 522 00:29:06,000 --> 00:29:09,880 Speaker 1: talking about Jet Blue once again boosting its takeover offer 523 00:29:09,960 --> 00:29:14,400 Speaker 1: for Spirit Airlines to counter Arrival Frontier. I'm Gina Servetti 524 00:29:14,480 --> 00:29:17,240 Speaker 1: and for w b B, I'm in Chicago. I'm reporting 525 00:29:17,240 --> 00:29:19,640 Speaker 1: that your Fourth of July barbecue is going to be 526 00:29:19,720 --> 00:29:23,880 Speaker 1: a lot more expensive this year. I'm do vicdiav Digitalado 527 00:29:23,920 --> 00:29:26,120 Speaker 1: in London. We've been reporting on the ECB pers in 528 00:29:26,200 --> 00:29:28,920 Speaker 1: Christine the Gods speech to a meeting of central bankers 529 00:29:29,040 --> 00:29:32,880 Speaker 1: in Portugal. Ed Corey on w w J in Detroit, 530 00:29:33,040 --> 00:29:37,160 Speaker 1: I'm reporting Michigan's governor and Republican lawmakers have shelved the 531 00:29:37,280 --> 00:29:41,160 Speaker 1: potential tax cuts until later this year. And those are 532 00:29:41,200 --> 00:29:44,000 Speaker 1: some of the stories our twenty hundred Bloomberg journalist and 533 00:29:44,000 --> 00:29:46,400 Speaker 1: analysts are working on this morning around the world. It's 534 00:29:46,440 --> 00:29:48,880 Speaker 1: five thirty nine on Wall Street. The following is an 535 00:29:49,000 --> 00:29:52,840 Speaker 1: editorial from Bloomberg Opinion. Echoes of the nineteen seventies and 536 00:29:52,840 --> 00:29:56,080 Speaker 1: early nineteen eighties are impossible to ignore in the UK 537 00:29:56,200 --> 00:29:59,760 Speaker 1: at the moment, on top of supply side shocks, sputtering growth, 538 00:30:00,040 --> 00:30:04,800 Speaker 1: sustainable public finances and soaring prices. Labor unrest has also 539 00:30:04,880 --> 00:30:08,160 Speaker 1: been staging to come back. Last week, strikes shut down 540 00:30:08,200 --> 00:30:11,400 Speaker 1: the country's railway system and brought the London underground to 541 00:30:11,440 --> 00:30:14,440 Speaker 1: a halt. Other unions are planning strikes of their own 542 00:30:14,560 --> 00:30:18,920 Speaker 1: and a threatened summer of discontent. Unfortunately, the rail strikes 543 00:30:19,040 --> 00:30:22,000 Speaker 1: might be just the beginning. Pay deals offering less than 544 00:30:22,040 --> 00:30:25,520 Speaker 1: the rate of inflation are expected for teachers, local government staff, 545 00:30:25,640 --> 00:30:28,720 Speaker 1: doctors and nurses in the National Health Service, and others. 546 00:30:29,320 --> 00:30:32,800 Speaker 1: In these and other negotiations, the government should strive to 547 00:30:32,840 --> 00:30:36,320 Speaker 1: be fair. But before public workers set about bringing on 548 00:30:36,360 --> 00:30:40,120 Speaker 1: the next recession, they should remember the nineteen seventies and 549 00:30:40,160 --> 00:30:43,480 Speaker 1: ask themselves whether a hobbled economy would really serve their 550 00:30:43,520 --> 00:30:46,560 Speaker 1: long term interests. This editorial was written by the Bloomberg 551 00:30:46,560 --> 00:30:50,160 Speaker 1: Opinion Editorial Board. I'm David Shipley. For more Bloomberg Opinion, 552 00:30:50,160 --> 00:30:53,040 Speaker 1: please go to Bloomberg dot com, slash Opinion or opian 553 00:30:53,120 --> 00:30:56,680 Speaker 1: go on the Bloomberg terminal. This has been Bloomberg Opinion. 554 00:30:56,800 --> 00:30:59,640 Speaker 1: Listen from Bloomberg Opinion editorials every weekday at this time 555 00:30:59,800 --> 00:31:02,360 Speaker 1: term customers can read more at O P I N 556 00:31:02,480 --> 00:31:05,920 Speaker 1: GO SFP futures are higher this morning by eighteen points, 557 00:31:05,920 --> 00:31:08,680 Speaker 1: Staff futures up a hundred fifty six, NASTAC futures on 558 00:31:08,720 --> 00:31:11,600 Speaker 1: the rise by fifty two points. The tenure treasury is 559 00:31:11,680 --> 00:31:15,400 Speaker 1: down eight thirty seconds, the yield three point to three 560 00:31:15,520 --> 00:31:23,760 Speaker 1: per cent. This is Bloomberg Bloomberg eleven three oh weather. 561 00:31:23,840 --> 00:31:25,920 Speaker 1: Sunshine today in a high near eighty degrees, will be 562 00:31:25,920 --> 00:31:28,240 Speaker 1: in the mid eighties, with a sunny sky tomorrow, more 563 00:31:28,320 --> 00:31:31,320 Speaker 1: sunshine Thursday, and more heat going up to near ninety 564 00:31:31,800 --> 00:31:38,320 Speaker 1: Right now sixty six in Central Park Markets, headlines and 565 00:31:38,440 --> 00:31:41,680 Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com, 566 00:31:41,800 --> 00:31:45,400 Speaker 1: the Bloomberg Business at and at Bloomberg Quicktape. He's a 567 00:31:45,480 --> 00:31:54,880 Speaker 1: Bloomberg Business Flash and I'm Karen Moscow Stalks on the 568 00:31:55,000 --> 00:31:58,479 Speaker 1: rise after China softened its strict COVID protocols using investor 569 00:31:58,560 --> 00:32:01,640 Speaker 1: concerns about global growth. We checked the markets every fifteen 570 00:32:01,640 --> 00:32:04,040 Speaker 1: minutes throughout the trading day. On Bloomberg. Guess and P 571 00:32:04,240 --> 00:32:07,040 Speaker 1: Future is up seventeen points, staff futures of a hundred 572 00:32:07,040 --> 00:32:09,200 Speaker 1: fifty one and as deck Future is up forty four. 573 00:32:09,280 --> 00:32:11,920 Speaker 1: The decks in Germany is up about six tenths of 574 00:32:11,960 --> 00:32:14,760 Speaker 1: a percent ten your treasury down eight thirty seconds. He 575 00:32:14,840 --> 00:32:16,880 Speaker 1: a three point to three percent, the yield on the 576 00:32:16,920 --> 00:32:19,840 Speaker 1: two year three point one three percent nine x screwed 577 00:32:19,920 --> 00:32:21,680 Speaker 1: oil is up when in a third percent of a 578 00:32:21,720 --> 00:32:24,160 Speaker 1: dollar forty seven at a hundred eleven dollars five cents 579 00:32:24,160 --> 00:32:26,440 Speaker 1: of barrel call mex School. The tenth of a percent 580 00:32:26,480 --> 00:32:29,600 Speaker 1: of a dollar eighty at eighteen twenty sixty ounce, the 581 00:32:29,680 --> 00:32:32,360 Speaker 1: euro one point five eight four against the dollar British 582 00:32:32,360 --> 00:32:35,400 Speaker 1: found one point six zero, and the yen one thirty 583 00:32:35,440 --> 00:32:37,600 Speaker 1: five point nine six and looking at a big coin 584 00:32:37,680 --> 00:32:40,360 Speaker 1: this morning, up seven tenths percent at twenty one thousand 585 00:32:40,800 --> 00:32:43,520 Speaker 1: fifty dollars. And that's a bloomberg business flash. Now here's 586 00:32:43,520 --> 00:32:45,960 Speaker 1: Michael Barr with more on les's going on around the world. 587 00:32:46,000 --> 00:32:49,680 Speaker 1: Michael Karen, thank you very much. Mystery surrounds a surprise 588 00:32:49,800 --> 00:32:53,280 Speaker 1: January sixth hearing that will take place this afternoon. The 589 00:32:53,280 --> 00:32:57,680 Speaker 1: Committee says the hearing will present recently obtained evidence raising 590 00:32:57,680 --> 00:33:02,120 Speaker 1: the expectations of new bombshells. Rescuers are searching through charred 591 00:33:02,160 --> 00:33:04,480 Speaker 1: rubble of a shopping mall for more victims of a 592 00:33:04,520 --> 00:33:07,520 Speaker 1: Russian missile strike that has killed at least eighteen and 593 00:33:07,560 --> 00:33:10,840 Speaker 1: wounded scores of others in the Ukrainian city. Many of 594 00:33:10,880 --> 00:33:13,719 Speaker 1: the more than one thousand people inside managed to escape. 595 00:33:14,040 --> 00:33:17,120 Speaker 1: The U n Security Council scheduled an emergency meeting today 596 00:33:17,200 --> 00:33:20,719 Speaker 1: to discuss the attack. In baseball, the Yankees one along 597 00:33:20,760 --> 00:33:24,080 Speaker 1: with the Nationals and Orioles, the Red Sox lost Global 598 00:33:24,120 --> 00:33:26,600 Speaker 1: news twenty four hours a day on air and on 599 00:33:26,640 --> 00:33:30,320 Speaker 1: Bloomberg Quick Tank, powered by more than twenty seven journalists 600 00:33:30,320 --> 00:33:32,960 Speaker 1: and analysts more than a hundred twenty countries. Hi, Michael 601 00:33:33,000 --> 00:33:35,760 Speaker 1: barn This is Bloomberg. Nathan. Hi Michael, thank you. We're 602 00:33:35,760 --> 00:33:37,960 Speaker 1: coming up to five forty nine on Wall Street Live 603 00:33:38,000 --> 00:33:41,880 Speaker 1: from the Bloomberg Interactive Broker Studios. This is Bloomberg day 604 00:33:41,920 --> 00:33:45,640 Speaker 1: Break on a positive morning for equity investors. Were joined 605 00:33:45,640 --> 00:33:49,400 Speaker 1: live by Matt Mayley, chief market strategist at Miller Tayback. Matt, 606 00:33:49,440 --> 00:33:51,080 Speaker 1: it's always good to speak with you, and we are 607 00:33:51,200 --> 00:33:53,760 Speaker 1: seeing UH sentiment get a lift on this news out 608 00:33:53,760 --> 00:33:57,560 Speaker 1: of China that they're cutting their quarantine period in half 609 00:33:57,680 --> 00:34:01,400 Speaker 1: for inbound travelers. Is this the kind of move that 610 00:34:01,480 --> 00:34:06,160 Speaker 1: could give stocks a broader lift? Well, it's certainly good 611 00:34:06,200 --> 00:34:08,120 Speaker 1: news and something that at least over the near term, 612 00:34:08,160 --> 00:34:10,200 Speaker 1: is gonna be helpful. I mean, and we have, you know, 613 00:34:10,239 --> 00:34:12,320 Speaker 1: we have the end of the quarter coming up on Thursday. 614 00:34:12,760 --> 00:34:15,360 Speaker 1: We have some technical momentum indicators showing that the market 615 00:34:15,400 --> 00:34:18,879 Speaker 1: to could or even should rally a little bit more. So. Yeah, 616 00:34:18,880 --> 00:34:21,200 Speaker 1: it's it gives us some upside on a near term basis. 617 00:34:21,200 --> 00:34:22,759 Speaker 1: I'm not so sure if it is gonna help us 618 00:34:22,800 --> 00:34:25,560 Speaker 1: on an intermediate long term basis. THU what makes you 619 00:34:25,600 --> 00:34:28,640 Speaker 1: say that? Well, mostly is you know, we're coming to 620 00:34:28,680 --> 00:34:31,160 Speaker 1: this earning season. Uh, and that starts to after the 621 00:34:31,640 --> 00:34:34,120 Speaker 1: holiday here, the fourth of July weekend. Uh, really start 622 00:34:34,120 --> 00:34:36,120 Speaker 1: the week after that in a in a bigger way. 623 00:34:36,520 --> 00:34:38,560 Speaker 1: And it's just that the you know something I've been 624 00:34:38,560 --> 00:34:41,000 Speaker 1: saying for months that that you know, with the big 625 00:34:41,040 --> 00:34:44,880 Speaker 1: cuts that we've seen in GDP growth forecasts, uh since 626 00:34:45,120 --> 00:34:47,319 Speaker 1: the fourth quarter of last year, I mean almost been 627 00:34:47,320 --> 00:34:50,160 Speaker 1: cut in half. Uh, these earnings forecasts are way ahead 628 00:34:50,160 --> 00:34:52,200 Speaker 1: of themselves. I mean more and more people starting to 629 00:34:52,239 --> 00:34:54,880 Speaker 1: say that now. And uh that means that the market 630 00:34:54,920 --> 00:34:57,080 Speaker 1: to you know, some people saying with markets starting to 631 00:34:57,120 --> 00:34:59,560 Speaker 1: get more fairly valued, Well, if the part of the 632 00:34:59,600 --> 00:35:01,680 Speaker 1: P issue has to come down. That means that we 633 00:35:01,719 --> 00:35:03,960 Speaker 1: haven't reached for it fair value yet and that's uh 634 00:35:04,000 --> 00:35:08,239 Speaker 1: I think makes this the market vulnerable over the summer months. Now, 635 00:35:08,239 --> 00:35:10,799 Speaker 1: we've heard from a number of strategists now that sort 636 00:35:10,840 --> 00:35:14,120 Speaker 1: of share your view that earnings expectations are getting ahead 637 00:35:14,120 --> 00:35:16,400 Speaker 1: of themselves. I talk a little bit more about what 638 00:35:16,440 --> 00:35:20,719 Speaker 1: makes you think that why earnings expectations might not be 639 00:35:20,840 --> 00:35:24,480 Speaker 1: as rosy as many companies are saying. Well, I mean, 640 00:35:24,840 --> 00:35:26,560 Speaker 1: you know again this this is something I've been saying 641 00:35:26,560 --> 00:35:29,920 Speaker 1: since gosh, almost the beginning of the year. But number 642 00:35:29,920 --> 00:35:32,680 Speaker 1: one is is that again as I talked about these 643 00:35:32,719 --> 00:35:35,520 Speaker 1: growth issues, that the growth is falling. Economic growth is 644 00:35:35,520 --> 00:35:39,720 Speaker 1: falling that much earnings it's all but impossible for earnings 645 00:35:39,800 --> 00:35:41,840 Speaker 1: to stay higher. But the biggest thing, of course, is 646 00:35:41,880 --> 00:35:46,200 Speaker 1: all these big rise rate uh rise and costs I 647 00:35:46,239 --> 00:35:49,080 Speaker 1: mean inflation. I mean it's hurting their margins, that's the 648 00:35:49,080 --> 00:35:51,480 Speaker 1: biggest thing. Yeah, we're starting to see oil come down 649 00:35:51,520 --> 00:35:53,480 Speaker 1: a little bit, though of course it's bounced back, and 650 00:35:53,560 --> 00:35:56,080 Speaker 1: some other commodities, but most of those only coming down 651 00:35:56,120 --> 00:35:59,400 Speaker 1: because they've become incredibly overbought. Yes, some of it is 652 00:35:59,440 --> 00:36:01,120 Speaker 1: that the econom be starting to slow a little bit. 653 00:36:01,320 --> 00:36:03,160 Speaker 1: I guess My point is a lot of these input 654 00:36:03,239 --> 00:36:05,279 Speaker 1: costs are going to remain high, even if they come 655 00:36:05,320 --> 00:36:08,400 Speaker 1: down a little bit. That hurts margins, that hurts earnings. 656 00:36:08,719 --> 00:36:10,719 Speaker 1: And uh, that's you know, that's the main reason why 657 00:36:10,719 --> 00:36:12,080 Speaker 1: I can see that they're gonna have to come in. 658 00:36:12,360 --> 00:36:14,799 Speaker 1: What's your inflation outlook? Do you think we've reached peak 659 00:36:14,840 --> 00:36:19,480 Speaker 1: inflation here? Could we see prices go even higher from here? Well? 660 00:36:19,480 --> 00:36:21,239 Speaker 1: They could, But I guess one of the things is 661 00:36:21,239 --> 00:36:23,640 Speaker 1: that I worry that too many people are saying that 662 00:36:23,719 --> 00:36:26,279 Speaker 1: because we've reached peak inflation, therefore we don't have to 663 00:36:26,280 --> 00:36:28,759 Speaker 1: worry about it at all. And and and that's I 664 00:36:28,760 --> 00:36:31,360 Speaker 1: don't think it's the case at all. We have you know, 665 00:36:31,400 --> 00:36:33,600 Speaker 1: I've been saying for a while that I do believe that, 666 00:36:33,800 --> 00:36:36,080 Speaker 1: you know, peak inflation will come this summer. But when 667 00:36:36,120 --> 00:36:38,360 Speaker 1: it comes back down, it's still gonna plateau at a 668 00:36:38,480 --> 00:36:41,879 Speaker 1: level that is much higher than than anything we've seen 669 00:36:41,920 --> 00:36:44,839 Speaker 1: for forty years. Uh. And that's again, we could create 670 00:36:44,920 --> 00:36:47,800 Speaker 1: problems for earnings and for and for And the biggest 671 00:36:47,800 --> 00:36:50,879 Speaker 1: thing is that the two biggest costs on essentials as 672 00:36:50,880 --> 00:36:54,120 Speaker 1: long as the war of attrition continues in Ukraine Uh, 673 00:36:54,239 --> 00:36:57,080 Speaker 1: food and energy is going to remain high. If those 674 00:36:57,160 --> 00:36:59,680 Speaker 1: essentials remain high, it gives us less, it gives the 675 00:36:59,719 --> 00:37:01,680 Speaker 1: concert m or less money to spend on others, on 676 00:37:01,719 --> 00:37:04,440 Speaker 1: other things. So are you expecting that the FED isn't 677 00:37:04,480 --> 00:37:08,200 Speaker 1: necessarily locked in on more aggressive rate hikes in the 678 00:37:08,239 --> 00:37:10,120 Speaker 1: next couple of months here? Are you thinking the Fed 679 00:37:10,200 --> 00:37:12,680 Speaker 1: is going to be more nimble than many investors are 680 00:37:12,680 --> 00:37:15,560 Speaker 1: expecting at this point? I think that's something you know, again, 681 00:37:15,600 --> 00:37:17,040 Speaker 1: I think that's a bit of a mistake. It has 682 00:37:17,080 --> 00:37:19,640 Speaker 1: become the kind of the narrative right right right now. 683 00:37:19,719 --> 00:37:24,000 Speaker 1: But people are just assuming because because the the economy 684 00:37:24,040 --> 00:37:26,520 Speaker 1: will slow uh, and earnings will come down at the 685 00:37:26,520 --> 00:37:29,360 Speaker 1: FED will will we'll hope pull back on their tightening. 686 00:37:29,719 --> 00:37:32,200 Speaker 1: The Fed is and if they said emphatically they're going 687 00:37:32,280 --> 00:37:35,279 Speaker 1: to fight inflation, and inflation, like I said, it's gonna 688 00:37:35,280 --> 00:37:37,120 Speaker 1: remain high even if it comes down a little bit. 689 00:37:37,400 --> 00:37:39,440 Speaker 1: This is I mean, they're doing what Paul Volker did 690 00:37:39,480 --> 00:37:42,239 Speaker 1: forty years ago. And even though the economy is slowing down, 691 00:37:42,239 --> 00:37:45,320 Speaker 1: they're not going to pivot unless we see a severe 692 00:37:45,360 --> 00:37:48,920 Speaker 1: slowdown in growth or some some sort of financial crisis 693 00:37:49,360 --> 00:37:52,160 Speaker 1: of one away or another. Without that I think they 694 00:37:52,239 --> 00:37:55,600 Speaker 1: keep interest rates high fight inflation, which makes it painful 695 00:37:55,640 --> 00:37:58,200 Speaker 1: for the markets, but in the long run it's actually 696 00:37:58,239 --> 00:38:00,359 Speaker 1: the right thing to do. Right always it to get 697 00:38:00,360 --> 00:38:02,800 Speaker 1: your insights. Matt, thanks again for being with us this morning. 698 00:38:02,800 --> 00:38:06,480 Speaker 1: Matt Mayley, the chief market strategist at Miller tay Back. 699 00:38:06,719 --> 00:38:09,560 Speaker 1: Karen Well Nathan, it is five fifty three on Wall Street. 700 00:38:09,600 --> 00:38:11,680 Speaker 1: It's time for the Bloomberg Law Report. Let's get to 701 00:38:11,719 --> 00:38:14,279 Speaker 1: the legal stories we are watching this morning from Bloomberg's 702 00:38:14,320 --> 00:38:20,760 Speaker 1: Jeff Bellinger. Jack Daniels filed the lawsuit in Tennessee Federal 703 00:38:20,840 --> 00:38:24,319 Speaker 1: court claiming that the maker of Jack's Hard Cider infringed 704 00:38:24,480 --> 00:38:28,640 Speaker 1: numerous federally registered trademarks for the name Jack and failed 705 00:38:28,640 --> 00:38:31,840 Speaker 1: to uphold the twenty thirteen agreement over the names. G 706 00:38:32,040 --> 00:38:36,000 Speaker 1: Q Solutions, at California based auto warranty company is facing 707 00:38:36,000 --> 00:38:40,360 Speaker 1: a federal lawsuit for placing robocalls to consumers without their consent, 708 00:38:40,520 --> 00:38:44,320 Speaker 1: and the Justice Department has seized six websites. The sites 709 00:38:44,360 --> 00:38:49,680 Speaker 1: are used of illegally distributing copyrighted music. Bloomberg Law Everything 710 00:38:49,719 --> 00:38:53,840 Speaker 1: you need, all on one legal research platform, including guidance 711 00:38:53,880 --> 00:38:58,160 Speaker 1: Analysis and Bloomberg Market Intelligence find out more at Bloomberg 712 00:38:58,239 --> 00:39:01,680 Speaker 1: Law dot com. All right, Jeff, thank you. Now another 713 00:39:01,760 --> 00:39:04,600 Speaker 1: legal story. We're watching the Supreme Court rule the Monday 714 00:39:04,640 --> 00:39:07,239 Speaker 1: that a public high school football coach who knelt down 715 00:39:07,239 --> 00:39:09,840 Speaker 1: and prayed on the fifty yard line after games surrounded 716 00:39:09,840 --> 00:39:14,320 Speaker 1: by players was protected by constitutional religion and speech rights. 717 00:39:14,719 --> 00:39:17,160 Speaker 1: The case force the Justice is to wrestle without to 718 00:39:17,200 --> 00:39:20,480 Speaker 1: balance the religious and free speech rights of teachers and coaches, 719 00:39:20,719 --> 00:39:23,200 Speaker 1: but the rights of students not to feel pressured into 720 00:39:23,200 --> 00:39:26,759 Speaker 1: participating in religious practices. The vote was six to three 721 00:39:26,760 --> 00:39:30,320 Speaker 1: down ideological lines, and the decision that buttress is religious rights. 722 00:39:30,560 --> 00:39:34,120 Speaker 1: For more, Bloomberg's judn Grosso speaks to Caroline Mala Corbin, 723 00:39:34,239 --> 00:39:37,799 Speaker 1: a professor at the University of Miami Law School. You know, 724 00:39:37,840 --> 00:39:42,759 Speaker 1: we've been talking for days about the abortion decision contravening precedent. 725 00:39:43,120 --> 00:39:48,239 Speaker 1: Did this case actually contravening precedent or we just stobbed 726 00:39:48,320 --> 00:39:51,359 Speaker 1: The Abortion case was very explicit that it was over 727 00:39:51,480 --> 00:39:55,200 Speaker 1: ruling precedent, and it stated that right in the decision. 728 00:39:55,440 --> 00:39:59,439 Speaker 1: This case does what the Supreme Court usually does when 729 00:39:59,440 --> 00:40:01,640 Speaker 1: it changes the law, is that it changes a law 730 00:40:01,680 --> 00:40:04,360 Speaker 1: without acknowledging the fact that it's changing the law. But 731 00:40:04,440 --> 00:40:08,880 Speaker 1: the existing law prior to this decision is that school 732 00:40:09,080 --> 00:40:13,520 Speaker 1: sponsored prayers violate the establishment clause. That has always been 733 00:40:13,520 --> 00:40:17,560 Speaker 1: the rule. So whether it was the teacher giving a prayer, 734 00:40:18,040 --> 00:40:21,839 Speaker 1: whether they invited someone to give a prayer, whether they 735 00:40:21,880 --> 00:40:24,640 Speaker 1: had a school program that they approved of where a 736 00:40:24,719 --> 00:40:30,799 Speaker 1: student gave a prayer. Like again, regularly, school prayer violated 737 00:40:30,840 --> 00:40:35,920 Speaker 1: the establishment clause, and this case said the school prayer 738 00:40:36,000 --> 00:40:38,680 Speaker 1: does not violate the establishment clause even though it was 739 00:40:38,719 --> 00:40:42,920 Speaker 1: a school teacher coach. It's like the school itself was 740 00:40:43,000 --> 00:40:45,719 Speaker 1: giving a prayer. Here they're trying to finesse it by 741 00:40:45,760 --> 00:40:48,000 Speaker 1: saying no, no, no, no. He granted it was the 742 00:40:48,080 --> 00:40:51,400 Speaker 1: school teacher, but he wasn't acting in his official capacity. 743 00:40:51,440 --> 00:40:54,000 Speaker 1: He was acting in his private capacity. So they're trying 744 00:40:54,000 --> 00:40:58,360 Speaker 1: to wiggle around this very clear rule that the school 745 00:40:58,360 --> 00:41:02,640 Speaker 1: may not pray by saying, well, granted, he was paid 746 00:41:02,680 --> 00:41:05,239 Speaker 1: by the school and working at the school and you know, 747 00:41:05,320 --> 00:41:08,000 Speaker 1: at his job at the school, but he wasn't acting 748 00:41:08,040 --> 00:41:11,239 Speaker 1: as the school when he prayed. Does this open the 749 00:41:11,320 --> 00:41:16,040 Speaker 1: door to either more religious expression in public or more 750 00:41:16,080 --> 00:41:20,560 Speaker 1: religious expression at schools? And it will open the floodgates 751 00:41:21,160 --> 00:41:26,080 Speaker 1: to religious expression at school as it happens. Public schools 752 00:41:26,239 --> 00:41:33,840 Speaker 1: already regularly flout Establishment Clause limits about religion in schools, 753 00:41:33,880 --> 00:41:37,920 Speaker 1: but now the Supreme Court has issued the invitation to 754 00:41:38,080 --> 00:41:42,120 Speaker 1: public schools to push it even more because they've made 755 00:41:42,160 --> 00:41:46,640 Speaker 1: clear that they are not going to find Establishment Clause 756 00:41:47,320 --> 00:41:52,280 Speaker 1: violations in school even when you have a school teacher 757 00:41:52,840 --> 00:41:57,000 Speaker 1: pray at a school event. And as Caroline Mala Corbin, 758 00:41:57,080 --> 00:41:59,880 Speaker 1: a professor at the University of Miami Law Schools, speaking 759 00:42:00,000 --> 00:42:03,080 Speaker 1: the Bloomberg Student Grosso, catch more of that interview plus 760 00:42:03,120 --> 00:42:06,080 Speaker 1: analysis of the latest legal news by subscribing to the 761 00:42:06,080 --> 00:42:09,759 Speaker 1: Bloomberg Law Podcast or downloading the show at Bloomberg dot 762 00:42:09,840 --> 00:42:13,560 Speaker 1: com Slash podcast. Attorneys can find exceptional legal research and 763 00:42:13,640 --> 00:42:16,400 Speaker 1: business development tools at Bloomberg Law dot com and on 764 00:42:16,440 --> 00:42:21,360 Speaker 1: the Bloomberg terminal at b Law. Go right now, sixty 765 00:42:21,560 --> 00:42:24,280 Speaker 1: right now. Taking a look at futures. Futures are moving 766 00:42:24,360 --> 00:42:27,399 Speaker 1: higher this morning. S and P futures of eighteen boys down, 767 00:42:27,440 --> 00:42:29,840 Speaker 1: futures of A hundred fifty five and nast day features 768 00:42:29,880 --> 00:42:33,000 Speaker 1: up forties seven, the ten year treasury down ten thirty seconds. 769 00:42:33,239 --> 00:42:35,319 Speaker 1: You have three point to three percent, and the yield 770 00:42:35,320 --> 00:42:38,080 Speaker 1: on the two year three point one three percent and 771 00:42:38,239 --> 00:42:41,439 Speaker 1: I Max Screwed oil is up one point six per cent, 772 00:42:41,480 --> 00:42:44,960 Speaker 1: and our top stories all straight ahead as Bloomberg day 773 00:42:44,960 --> 00:42:47,279 Speaker 1: Break continues. This is Bloomberg