WEBVTT - Bloomberg Daybreak: May 20, 2022 - Hour 2 (Radio) 0:00:01.720 --> 0:00:05.080 From the Bloomberg Interactive Burger Studios is Bloomberg day Break 0:00:05.080 --> 0:00:08.639 for Friday, May twenty two. Coming up this hour. Stock 0:00:08.720 --> 0:00:11.880 sept for another weekly decline after losing a trillion dollars 0:00:11.880 --> 0:00:15.120 in value since Monday. Geo politics in focus as Joe 0:00:15.120 --> 0:00:18.079 Biden makes his first presidential trip to Asia. Who sent It? 0:00:18.160 --> 0:00:21.279 Passes a forty billion dollar eight package for Ukraine, and 0:00:21.320 --> 0:00:24.840 the world's second biggest baby formula maker reportedly increases shipments 0:00:24.840 --> 0:00:28.040 to the US. Possible monkey box case has been identified 0:00:28.040 --> 0:00:30.600 in New York City. Plus, the January six panel wants 0:00:30.640 --> 0:00:33.400 to question the GOP lawmaker about the Capitol tour. I'm 0:00:33.400 --> 0:00:35.960 Mike lo Blomberg More Ahead, I'm John Stash Sharon Sports. 0:00:35.960 --> 0:00:38.280 The Yankees lost the Mets one but learned of a 0:00:38.360 --> 0:00:41.120 serious injury, and Rory McElroy has the lead of the 0:00:41.159 --> 0:00:47.400 PGA Championship. That's All's trendy head on Bloomberg Daybreak on 0:00:47.520 --> 0:00:52.000 Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, 0:00:52.479 --> 0:00:56.040 Bloomberg one oh six one, Boston, Bloomberg nine sixties and 0:00:56.160 --> 0:01:00.000 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 buy the Bloomberg 0:01:03.120 --> 0:01:09.960 Business app. And good morning. I'm Karen Moscow and Tim 0:01:10.040 --> 0:01:12.319 John Tucker. Bloomberg Day Break being brought to you by 0:01:12.360 --> 0:01:16.039 B and Y Melon's Pershing Inside Conference back in person 0:01:16.120 --> 0:01:20.399 June fifteenth through the seventeenth at the Gaylord Resort in Grapevine, Texas. 0:01:20.640 --> 0:01:24.039 They'll visit registered now at Inside dot b n Y 0:01:24.160 --> 0:01:27.959 Melon dot com and US Knock Index futures are higher 0:01:28.000 --> 0:01:30.000 this morning six o one on Wall Street. We checked 0:01:30.000 --> 0:01:32.960 the markets every fifteen minutes throughout the trading day on Bloomberg. 0:01:33.040 --> 0:01:34.880 Right now, S and P futures are up forty one 0:01:34.920 --> 0:01:37.400 points down, Future is up two hundred sixty five and 0:01:37.440 --> 0:01:40.160 as day, futures of one hundred seventy two ten year 0:01:40.200 --> 0:01:43.240 Treasury down six thirty seconds, held two point eight six percent, 0:01:43.280 --> 0:01:45.640 and they yield on the two year two point six 0:01:45.680 --> 0:01:50.560 two percent. John and Karen, let's get more on the 0:01:50.800 --> 0:01:55.120 markets this morning, and uh, right now again, as you say, 0:01:55.200 --> 0:01:58.680 the Dow futures are up two hundred and sixty eight points, 0:02:00.400 --> 0:02:03.320 All right, John, Yev she said, features are higher, and 0:02:03.320 --> 0:02:05.360 we're closing out what appears to be another losing week. 0:02:05.440 --> 0:02:08.240 First stocks In fact, the SNP five is on track 0:02:08.320 --> 0:02:11.960 for a seventh straight weekly decline and be its longest 0:02:11.960 --> 0:02:14.040 decline in twenty one years, and traders are bracy for 0:02:14.080 --> 0:02:17.440 another volatile day ahead. The monthly expiration of options tied 0:02:17.480 --> 0:02:20.920 to equities and exchange traded funds takes place today. Kathy 0:02:21.080 --> 0:02:24.600 and Whistle is a managing director at Morgan Stanley. Being 0:02:24.680 --> 0:02:29.560 far volatile, they are uncertain. Um, it's giving everybody a 0:02:29.600 --> 0:02:34.119 little bit of uneasiness and a lot of people asking 0:02:34.280 --> 0:02:36.959 what to do in these markets, and Morgan Stanley is 0:02:37.040 --> 0:02:39.520 Kathy and Whistle may have the comments on Bloomberg Business 0:02:39.520 --> 0:02:42.240 Week Herd weekdays from two to five pm Eastern on 0:02:42.280 --> 0:02:45.240 Bloomberg Radio. The SNP five hundred has lost more than 0:02:45.240 --> 0:02:48.520 a trillion dollars in market value over the past four sessions. 0:02:48.800 --> 0:02:51.760 At one stock not helping market senterment. This morning, Karen 0:02:51.880 --> 0:02:55.280 Applied Materials down one percent and early trading after the 0:02:55.360 --> 0:02:58.280 chip maker delivered a week forecast. We get that story 0:02:58.280 --> 0:03:01.560 and this report from Bloomberg's Charlie Pellet. Applied is the 0:03:01.560 --> 0:03:05.640 biggest maker of machinery that's used to manufacture semiconductors, had 0:03:05.680 --> 0:03:08.640 said sales will be about six point to five billion 0:03:08.680 --> 0:03:12.000 dollars in the fiscal third quarter, which runs through July. 0:03:12.440 --> 0:03:15.720 Analysts had estimated six point six nine billion on average. 0:03:15.720 --> 0:03:19.240 According to data compelled by Bloomberg, the chip industry is 0:03:19.360 --> 0:03:23.119 ordering machinery from Applied and its peers at a frantic rate, 0:03:23.400 --> 0:03:27.360 trying to build enough production capacity to end industry wide 0:03:27.400 --> 0:03:31.080 shortages that are hurting growth across the economy. But those 0:03:31.120 --> 0:03:35.040 same shortages are leaving Applied without the components it needs 0:03:35.080 --> 0:03:39.040 to make its equipment. In New York. Charlie pet Bloomberg Daybreak. 0:03:39.120 --> 0:03:41.480 All right, Charlie, thank you. The semi conductor industry will 0:03:41.520 --> 0:03:44.040 be in focus when Joe Biden makes his first presidential 0:03:44.040 --> 0:03:46.720 trip to Asia. The President's time in South Korea and 0:03:46.800 --> 0:03:49.960 Japan will focus on security and supply chains, and Bloomberg's 0:03:49.960 --> 0:03:53.640 Amy Morris has details from our newsroom in Washington. The 0:03:53.680 --> 0:03:57.760 president is set to visit a Samsung semiconductor complex as 0:03:57.800 --> 0:04:00.200 he seeks to shore up supply chains that we're use 0:04:00.280 --> 0:04:03.880 reliance on China, an indication of the emphasis he's placing 0:04:03.920 --> 0:04:08.160 on strengthening semiconductor reliances among the world's largest ship makers 0:04:08.200 --> 0:04:11.000 to ease those shortages that have dragged on the global economy. 0:04:11.320 --> 0:04:14.200 He'll also meet with regional leaders to garner more support 0:04:14.240 --> 0:04:17.640 for Ukraine, defend off Russia's invasion, and counter security threats 0:04:17.720 --> 0:04:21.280 from China and North Korea. The visit runs through Tuesday 0:04:21.480 --> 0:04:24.200 in Washington. I maybe more as Bloomberg daybreak. All right, 0:04:24.240 --> 0:04:26.880 thanks Sammy, and meantime on Capitol Hill, the US Senate 0:04:26.920 --> 0:04:30.159 has passed an aid package for Ukraine mor more than 0:04:30.200 --> 0:04:34.080 forty billion dollars, now always President Biden's signature. At the 0:04:34.120 --> 0:04:37.440 same time, the Administration says it is providing Ukraine with 0:04:37.480 --> 0:04:42.040 another one million dollars in military assistance. Well John. The 0:04:42.080 --> 0:04:45.320 baby formula shortage is also in focus this morning. According 0:04:45.360 --> 0:04:48.640 to Reuters, the world's second biggest baby formula maker is 0:04:48.680 --> 0:04:51.680 increasing shipments from Europe to the US. The move, Biden 0:04:51.720 --> 0:04:55.320 known comes after added laboratories how to recall some products. 0:04:55.480 --> 0:04:57.839 Virginia Senator at Tim Kaine is a member of the 0:04:57.920 --> 0:05:00.880 Senate Forum Relations and Armed Services can may days. We're 0:05:00.920 --> 0:05:04.560 now going to use the Defense Production Act to increase production. 0:05:04.640 --> 0:05:08.400 We're allowing importation of formula that's safe from other countries. 0:05:08.800 --> 0:05:11.600 The company that closed its plan down has reached an 0:05:11.640 --> 0:05:14.680 agreement to do some fixes. They should be reopened within 0:05:14.720 --> 0:05:17.440 two weeks and starting to produce again, so we will 0:05:17.480 --> 0:05:21.279 solve this problem. I think you'll see that the bipartisan 0:05:21.560 --> 0:05:23.560 but we'll have to have that vote next week and see. 0:05:23.800 --> 0:05:26.880 And Virginia Senator Tim Kaine spoke with our Washington correspondent 0:05:26.960 --> 0:05:29.760 Joe Matthew on Bloomberg Sound on Catch the program weekdays 0:05:29.760 --> 0:05:32.279 at five pm. Easter and on Bloomberg Radio. And the 0:05:32.320 --> 0:05:36.839 pandemic also in focus this morning with news on vaccine eligibility. 0:05:37.360 --> 0:05:40.200 Younger children across the US can now receive a COVID 0:05:40.240 --> 0:05:43.320 booster shot developed by Fiser. Let's get to Tail's live 0:05:43.360 --> 0:05:46.600 from Bloomberg's Ready Too Young, Redia, Good morning, Good morning John. 0:05:46.720 --> 0:05:50.920 CDC director Rochelle will Lynsky recommends the booster for children 0:05:51.000 --> 0:05:54.560 ages five to eleven years old. Making the shot available 0:05:54.600 --> 0:05:58.320 to school age kids will provide much needed protection against 0:05:58.320 --> 0:06:02.800 the contagious omicron cell variants spreading across the country. Well 0:06:02.839 --> 0:06:05.279 Lensky says kids in this age group should receive a 0:06:05.279 --> 0:06:09.320 booster dose at least five months after their primary series. 0:06:09.880 --> 0:06:13.000 Live in New York, I'm Randa Young Bloomberg Daybreak A Right. 0:06:13.040 --> 0:06:15.320 Branda thank you. Well, there's also a sign today that 0:06:15.360 --> 0:06:18.360 the travel industry is bouncing back from the pandemic. Leisure 0:06:18.400 --> 0:06:20.680 travel is now back to pre COVID level. So let 0:06:20.680 --> 0:06:23.480 me get the story from Bloomberg's Doug Kristner. The trend 0:06:23.480 --> 0:06:26.479 could help the travel industry this summer. The MasterCard Economics 0:06:26.480 --> 0:06:29.359 Institute says, for the first time since global movement was 0:06:29.400 --> 0:06:33.760 halted by the pandemic, leisure travel has returned to levels 0:06:33.880 --> 0:06:36.680 and higher airfares don't appear to be a deterrent the 0:06:36.720 --> 0:06:40.000 average global airfares of eighteen percent since the start of 0:06:40.040 --> 0:06:43.320 the year. MasterCard says if flight bookings continue at their 0:06:43.360 --> 0:06:46.200 current pace, and estimated one and a half billion more 0:06:46.240 --> 0:06:49.560 passengers globally will fly this year compared to last, with 0:06:49.720 --> 0:06:52.760 Europe seeing the biggest increase. In New York I Dug Kristner, 0:06:52.800 --> 0:06:55.360 Bloomberg Daybreak, All right, thanks Doug, and we're seeing the 0:06:55.520 --> 0:06:58.920 carnage in retails docts continue this morning. Shares of Ross 0:06:58.920 --> 0:07:02.600 stores are more than twenty eight percent in early trading, 0:07:02.920 --> 0:07:06.000 the discount retailer cutting its outlook for profit and sales. 0:07:06.320 --> 0:07:09.360 Ross's outlook down grade follows similar moves this week by 0:07:09.440 --> 0:07:12.840 Cole's target at Walmart head of the cash open on 0:07:12.880 --> 0:07:16.320 Wall Street HASMP futures up forty three the down futures 0:07:16.360 --> 0:07:24.400 up two eight points. This is Boomberg as six seven 0:07:24.400 --> 0:07:26.640 on Wall Street time to bring in Michael Barr to 0:07:26.680 --> 0:07:28.480 find out what else is going on in New York 0:07:28.560 --> 0:07:31.360 and around the world. John, Thank you very much. SARA 0:07:31.440 --> 0:07:34.800 Health officials say a possible case of monkey pox is 0:07:34.880 --> 0:07:37.600 being investigated in New York City. It would add to 0:07:37.680 --> 0:07:41.480 the case already reported in Massachusetts. The city's health department 0:07:41.480 --> 0:07:44.040 announced on Twitter that the patient is being cared for 0:07:44.200 --> 0:07:48.480 at Bellevue Hospital in Manhattan. Officials say preliminary test for 0:07:48.520 --> 0:07:51.840 the virus are being conducted and if positive, will be 0:07:51.920 --> 0:07:55.400 sent to the c d C for confirmation. Experts say 0:07:55.440 --> 0:07:59.280 it's a rare illness. University of California, San Francisco Professor 0:07:59.320 --> 0:08:03.640 of Medicine R. Peter Chin Hong is an infectious disease expert. 0:08:03.960 --> 0:08:07.040 I don't think it's really going to run rampants in it, 0:08:07.840 --> 0:08:12.000 as opposed to smallpox, which is highly howly transmissible. Dr 0:08:12.080 --> 0:08:15.720 chen Hong says, if you've been vaccinated for vaccinated for smallpox, 0:08:15.760 --> 0:08:20.440 you'll be protected against monkey pox because it's really closely related. 0:08:20.840 --> 0:08:23.320 Relatives of the ten black people gunned down in a 0:08:23.320 --> 0:08:26.760 Buffalo supermarket are pleading with a nation to confront and 0:08:26.880 --> 0:08:30.720 stop racist violence. Agony poured out in the tears of 0:08:30.720 --> 0:08:34.000 a twelve year old child, Jake Patterson, who lost his father. 0:08:34.200 --> 0:08:39.080 His mother spoke, his heart is broken, he has sleeps, 0:08:39.960 --> 0:08:42.880 he has eaten as a mother. What am I supposed 0:08:42.920 --> 0:08:46.400 to do? Earlier yesterday, the accused gunman, who is white, 0:08:46.440 --> 0:08:50.520 eighteen year old Peyton Gendren, silently faced a murder indictments 0:08:50.600 --> 0:08:54.000 in court. The White House calls Oklahoma's new abortion bill 0:08:54.080 --> 0:08:57.200 the most extreme effort to undo the fundamental rights laid 0:08:57.240 --> 0:09:00.959 out in Roe v. Wade. Oklahoma's legis h gave final 0:09:01.000 --> 0:09:04.680 approval to the bill, which would ban almost all abortions 0:09:04.679 --> 0:09:08.679 from the moment of consumption. Vice President Kamala Harris hosted 0:09:08.679 --> 0:09:11.520 a virtual meeting with abortion providers at the White House. 0:09:11.920 --> 0:09:17.000 It's just the latest in a series of extreme laws 0:09:17.040 --> 0:09:21.000 around the country. Oklahoma's governor has vowed to sign it 0:09:21.080 --> 0:09:24.760 into law. The House panel investigating the January six riot 0:09:24.800 --> 0:09:27.840 wants to question a Republican lawmaker who is said to 0:09:27.920 --> 0:09:30.880 have led a group tour of the capital a day 0:09:30.960 --> 0:09:35.480 before the attack. Georgia GOP representative Buried louder Milk is 0:09:35.520 --> 0:09:38.920 being asked to answer questions before the Congressional Committee. Panel 0:09:39.000 --> 0:09:42.679 chairman Bennie Thompson said the committee's review of evidence contradicts 0:09:42.720 --> 0:09:46.360 denials from some Republicans that there were no tours or 0:09:46.559 --> 0:09:50.479 large groups brought to the capital. New York Congresswoman Alexandria 0:09:50.520 --> 0:09:54.760 Ocassio Cortes confirms she's engaged to her longtime partner Riley 0:09:54.840 --> 0:09:57.840 Roberts were yet on her wedding day. Global News twenty 0:09:57.880 --> 0:10:00.480 four hours a day on air and on Bloomberg Quick Take, 0:10:00.679 --> 0:10:03.240 powered by more than seven hundred journalists and analysts more 0:10:03.240 --> 0:10:05.880 than a hundred twenty countries. Michael Barr, this is Bloomberg. 0:10:05.960 --> 0:10:12.280 John alright, Michael, thank you very much. He's now six 0:10:12.360 --> 0:10:14.520 ten of Wall Street and the sign of the Bloomberg 0:10:14.679 --> 0:10:17.559 Sports Update. Here's John Stown Howard all right, John Thrilling. 0:10:17.600 --> 0:10:18.960 Win for the Mets. They've had a lot of those 0:10:19.000 --> 0:10:21.640 already this season. The Cardinals got two on runs from 0:10:21.640 --> 0:10:23.960 called Goldsmith they let in the night day the Mets 0:10:24.000 --> 0:10:26.439 tied it. St. Louis went back ahead top of the 0:10:26.559 --> 0:10:29.360 ten heroics in the bottom. He goes ready a belt. 0:10:29.360 --> 0:10:35.520 Ty said his pitch Alto built way back. It's love God, 0:10:36.040 --> 0:10:41.360 that's the fun of the ten lot to drive one 0:10:41.360 --> 0:10:45.000 out of each Gydagos have the Mets for the off. 0:10:45.679 --> 0:10:50.760 Serious victory bigs to come. Mets won seven six. Alonzo 0:10:50.840 --> 0:10:52.880 now leads all of baseball the thirty six r b 0:10:53.000 --> 0:10:55.240 i s. However, during the game came the news on 0:10:55.360 --> 0:10:57.680 Max jers Or he has an oblique strain. He's gonna 0:10:57.679 --> 0:10:59.840 miss six to eight weeks of The Mets were hoping 0:10:59.880 --> 0:11:02.679 to have this great one two punch. A Scherzer and 0:11:02.760 --> 0:11:05.959 Jacob de Graham both are hurt, and so was another starter, 0:11:06.000 --> 0:11:08.800 Tyler Miguel, just as the Mets at their walkoff. When 0:11:08.840 --> 0:11:11.640 the Yankees suffered to walk off loss in Baltimore, the 0:11:11.679 --> 0:11:14.520 Orioles Anthony Santander at three run over bottom the night 0:11:14.559 --> 0:11:17.719 off Lucas Letkey for a nine six Orioles win. The 0:11:17.800 --> 0:11:19.960 Yanks had tied the game with two out in the 0:11:20.000 --> 0:11:22.560 top of the ninth. The NBA Playoffs Celtics up twenty 0:11:22.600 --> 0:11:24.480 five at half time. They won Game two in Miami 0:11:24.520 --> 0:11:27.959 by that's hied the series. Stanley kept playoff wins for St. 0:11:28.000 --> 0:11:31.160 Louis and Tampa Bay, both on the road. Rangers looking 0:11:31.240 --> 0:11:33.560 for a road win tonight It's Game two and Raleigh 0:11:33.840 --> 0:11:37.040 after the Hurricanes took the opener in overtime. Amazing the thing. 0:11:37.200 --> 0:11:39.720 Rory McElroy hasn't won a major since the two thousand 0:11:39.840 --> 0:11:43.320 fourteen PGA. McElroy leans this year's pg A by one shot. 0:11:43.400 --> 0:11:46.120 Going to today's second round and tells U Live covered 0:11:46.120 --> 0:11:48.880 Bloomberg Radeo today starting at four with the PG eight. 0:11:48.880 --> 0:11:52.800 Tonight show at eleven, John Dashaward Bloomberg Sports John all Right, John, 0:11:52.840 --> 0:11:54.360 thanks very much. Ahead of the cash show to the 0:11:54.440 --> 0:11:57.440 Wallsbury NSP futures of forty four, the dawn futures of 0:11:57.440 --> 0:12:01.720 two eight, the NASA futures one hundred eighty onloom points higher. 0:12:02.000 --> 0:12:08.760 You're listening to Bloomberg and we closed out a trading 0:12:08.800 --> 0:12:10.959 week that saw the SMP five hundred lose more than 0:12:11.000 --> 0:12:13.880 a trillion dollars in market value. Just ahead, we'll pick 0:12:13.920 --> 0:12:17.559 the brand of Brian Levitt, Global market strategists at Advansco 0:12:21.559 --> 0:12:24.960 Markets headlines and breaking news twenty four hours a day 0:12:25.080 --> 0:12:28.640 at Bloomberg dot com, The Bloomberg Business and at Bloomberg 0:12:28.679 --> 0:12:38.959 quick take, This is a Bloomberg business lash and I'm Cameron. Moscow. 0:12:39.040 --> 0:12:41.880 US stock indise futures are pushing higher this morning, along 0:12:41.880 --> 0:12:44.800 with European shares after China's latest measured a firm up 0:12:44.840 --> 0:12:47.160 its economy and injected a note of optimism at the 0:12:47.240 --> 0:12:50.080 end of another volatile week for global markets. We checked 0:12:50.080 --> 0:12:52.320 the markets every fifteen minutes throughout the trading day on 0:12:52.360 --> 0:12:55.480 Bloomberg s and P futures of about forty two points down, 0:12:55.480 --> 0:12:58.160 futures of two hundred sixty seven and NASDACK futures have 0:12:58.200 --> 0:13:01.000 one hundred seventy three the day. In Germany's up one 0:13:01.040 --> 0:13:03.720 point seven percent, the ten year treasury down eight thirty 0:13:03.800 --> 0:13:06.520 seconds two point eight six percent. They yield on the 0:13:06.559 --> 0:13:09.840 two year two point six two percent. Nimex screwed oil 0:13:10.000 --> 0:13:12.080 is done about two tens per cent, or nineteen cents 0:13:12.080 --> 0:13:15.120 at a hundred twelve dollars two cents a barrel. Comex 0:13:15.200 --> 0:13:17.520 gold is up to ten percent or three dollar sixty 0:13:17.520 --> 0:13:20.560 cents at eighteen fifty one forty anounts. The euro one 0:13:20.640 --> 0:13:22.960 point oh five eight nine against the dollar, British found 0:13:22.960 --> 0:13:25.320 one point two four seven five and the yen at 0:13:25.320 --> 0:13:28.240 one eight point one one and Bitcoin this morning up 0:13:28.240 --> 0:13:31.920 to ten percent at thirty thousand, two hundred ninety dollars. 0:13:31.920 --> 0:13:34.440 That's a Bloomberg Business Flash. Now here's Michael Barr with 0:13:34.520 --> 0:13:37.120 more on what's going on around the world. Michael Karen, 0:13:37.200 --> 0:13:40.120 thank you very much. President Joe Biden is in South Korea. 0:13:40.320 --> 0:13:43.840 He will meet South Korean President Yume so kiol as 0:13:43.880 --> 0:13:47.400 they face a growing threat from North Korea's nuclear weapons 0:13:47.600 --> 0:13:52.079 and missile program. Both US and South Korean intelligence officials 0:13:52.120 --> 0:13:56.720 say it's possible at North Korea will conductibilistic or nuclear 0:13:56.760 --> 0:14:00.240 tennis around Biden's visit to South Korea and Japan end. 0:14:00.640 --> 0:14:04.320 The Senate has passed a forty billion dollar package of military, 0:14:04.520 --> 0:14:08.160 economic and food aid for Ukraine. The vote was eighty 0:14:08.240 --> 0:14:12.120 six eleven. In the NBA playoffs, the Celtics have even 0:14:12.120 --> 0:14:14.240 their series that a game of peace after beating the 0:14:14.280 --> 0:14:17.439 Heat one seven, one oh two. In baseball, all the 0:14:17.480 --> 0:14:20.400 Yankees lost to the Orioles nine six, the Mats one 0:14:20.400 --> 0:14:23.000 and along with the Red Sox, Global News twenty four 0:14:23.000 --> 0:14:25.920 hours a day on air and on Bloomberg Quick Take, 0:14:26.160 --> 0:14:29.120 powered by more than twenty seven hundred journalists and analysts 0:14:29.200 --> 0:14:31.600 more than a hundred twenty countries. Michael bar This is 0:14:31.640 --> 0:14:34.360 Bloomberg John Michael, thank you. Coming up on six twenty 0:14:34.440 --> 0:14:37.040 on Wall Street. We are lying from the Bloomberg Interactor 0:14:37.080 --> 0:14:41.280 Broker Studios. This is Bloomberg day Break. Global shares on 0:14:41.440 --> 0:14:45.240 course for in historic seventh week of declines. Let's try 0:14:45.280 --> 0:14:47.200 to get you set up for the trading day head now. 0:14:47.280 --> 0:14:51.320 We're joined by Brian Levitt, global market strategist at Investco. 0:14:51.400 --> 0:14:56.360 Brian Happy Friday. What is a head for investors? Well, 0:14:56.400 --> 0:14:58.480 it looks like it means at least the futures are 0:14:58.720 --> 0:15:02.240 up this morning. But it's certainly a challenging market environment, 0:15:02.280 --> 0:15:05.400 which tends to be the case when you're persisting through 0:15:05.440 --> 0:15:09.000 a period of policy uncertainty. And even though the market 0:15:09.080 --> 0:15:12.800 has gone a long way to pricing in multiple Fed 0:15:12.880 --> 0:15:16.800 interest rate hikes, we still have inflation very elevated um 0:15:17.320 --> 0:15:21.800 and so volatility is likely to be uh persistent here 0:15:22.000 --> 0:15:25.480 until we have greater clarity on the inflation picture and 0:15:25.560 --> 0:15:27.440 glater greater clarity on where the set is going to 0:15:27.520 --> 0:15:33.240 ultimately head. The vix remains elevated right now. Well, streets 0:15:33.400 --> 0:15:38.400 fear gauge, how much more volatility it had usually when 0:15:38.560 --> 0:15:41.280 usually you see the VIX at around forty when you 0:15:41.440 --> 0:15:46.480 get to a market bottom. We've even seen the VIX 0:15:46.520 --> 0:15:49.720 at forty a couple of times in the last cycle 0:15:49.960 --> 0:15:52.200 when we didn't end up in a recession, whether that 0:15:52.360 --> 0:15:56.880 was with the FED first rate hike twenty eleven during 0:15:56.920 --> 0:16:01.200 the European debt crisis. So volatility is elevated. I don't 0:16:01.200 --> 0:16:03.920 think we've seen the full level of it yet or 0:16:03.920 --> 0:16:07.760 the full capitulation. We're certainly getting closer. If you look 0:16:07.800 --> 0:16:10.800 at the number of stocks on the New York Stock 0:16:10.840 --> 0:16:14.120 Exchange training above their two entre day moving average, we 0:16:14.120 --> 0:16:17.720 were at fifty percent in March. We're now down below. 0:16:18.760 --> 0:16:21.920 Usually market bottoms are around ten to fifteen percent. So 0:16:22.280 --> 0:16:24.680 we've seen a big move, we've seen a big wash up, 0:16:24.720 --> 0:16:29.080 but nonetheless, inflation is still elevated. Policy still uncertain, so 0:16:29.800 --> 0:16:33.640 there's no real catalyst here, at least in the short 0:16:33.760 --> 0:16:36.840 term for markets. And would you think it's full of 0:16:37.000 --> 0:16:40.320 err and to be buying on depths right now? Well, 0:16:40.360 --> 0:16:42.840 I think if you're a long term investor, you're starting 0:16:42.880 --> 0:16:46.080 to see some good value emerge in the market. So 0:16:46.280 --> 0:16:48.560 if you're trying to get the next days or the 0:16:48.640 --> 0:16:52.480 next week's right, um, buying the dips could be a challenge, 0:16:52.480 --> 0:16:54.280 but if you're a long term investor, I think it 0:16:54.400 --> 0:16:57.480 certainly makes sense to consider starting to do so. I mean, 0:16:57.520 --> 0:17:01.880 we've looked at past downturn. Even if you invest halfway 0:17:02.000 --> 0:17:05.640 through it, you're still far better off over the long 0:17:05.760 --> 0:17:09.040 term than having not done so, so you know the messages. 0:17:09.240 --> 0:17:14.119 Near term challenges will ultimately see the economy slow and 0:17:14.200 --> 0:17:17.040 some of these supplied demand imbalances start to work their 0:17:17.080 --> 0:17:21.840 way out Directionally, inflation should start to come down, which 0:17:21.840 --> 0:17:24.399 will set up a better environment for stock. So we 0:17:24.440 --> 0:17:26.080 may not be all the way through it, but again, 0:17:26.119 --> 0:17:28.240 if you have your eye on the long term, there's 0:17:28.280 --> 0:17:31.359 good value that's starting to emerge. And on the earnings front, 0:17:31.359 --> 0:17:34.440 of course, with Walmart, Target the other retailers, I guess 0:17:34.480 --> 0:17:38.560 the lesson to the takeaway there is margin compression. How 0:17:38.640 --> 0:17:40.919 much more of that are we going to see? What 0:17:41.000 --> 0:17:44.760 are the lessons we get for that? Yeah, margin compression, 0:17:44.800 --> 0:17:48.280 But let's remember margins were a very very elevated levels, 0:17:48.640 --> 0:17:51.200 and so I think the way to think of this 0:17:51.440 --> 0:17:55.920 is it's a slow down in demand where costs are 0:17:56.000 --> 0:18:00.040 still quite elevated and so that creates a difficult a 0:18:00.160 --> 0:18:03.280 drop in the in the short term. But this slowdown 0:18:03.640 --> 0:18:08.679 is likely to bring UM. As demands slows, you're likely 0:18:08.760 --> 0:18:12.879 to start to see inflationary pressures moderate. Now, of course 0:18:12.960 --> 0:18:16.679 we need better clarity on China with zero COVID policy. 0:18:17.040 --> 0:18:21.040 UM cases in Shanghai do seem to be coming down. 0:18:21.400 --> 0:18:25.720 Policy makers in China are trying to support growth. So 0:18:26.119 --> 0:18:29.040 you know, if we can start to see some movement 0:18:29.240 --> 0:18:32.760 they are. As demand slows, we should start to see 0:18:32.760 --> 0:18:36.280 inventories get rebuilt UM and and and some of that 0:18:36.359 --> 0:18:39.199 pricing pressure should start to come down. But but you know, 0:18:39.600 --> 0:18:43.240 margins coming down again from from very very elevated levels. 0:18:43.400 --> 0:18:46.240 Do you want to gauge the risk of hard versus 0:18:46.320 --> 0:18:52.760 soft landings, Well, look, it's it's gonna be a challenge. 0:18:52.800 --> 0:18:55.840 I mean, it's hard for the fit to navigate this 0:18:56.280 --> 0:19:00.760 um and so you know growth is going to slow meaningfully. 0:19:00.840 --> 0:19:03.200 Now that all the debate is whether or not we're 0:19:03.200 --> 0:19:06.080 going to have a recession with the markets are already 0:19:06.080 --> 0:19:12.960 pricing in a pretty a meaningful deterioration in growth UM 0:19:13.080 --> 0:19:17.160 and the reality is the fundamentals of this economy are 0:19:17.280 --> 0:19:21.000 pretty sound. That the households have been in good shape, UM, 0:19:21.280 --> 0:19:25.440 the banking system strong, the business sectors has been has been, 0:19:25.560 --> 0:19:29.120 UM is well capitalized, and so even if you were 0:19:29.200 --> 0:19:31.399 to have a recession, it would likely be a pretty 0:19:31.440 --> 0:19:35.200 mild one. Brian. Always a pleasure appreciated. Brian left, global 0:19:35.280 --> 0:19:39.240 markets strategist at Investco with us this morning and ahead 0:19:39.280 --> 0:19:42.160 of the up on the Wall Street futures in the 0:19:42.200 --> 0:19:45.760 green this morning. The Dow futures of two D ninety 0:19:45.840 --> 0:19:49.400 nine points as of the immate of futures six right now, 0:19:49.440 --> 0:19:52.399 and that asset futures are on one hundred and eighty 0:19:52.600 --> 0:19:56.800 nine points. As for treasuries, the benchmark tenure yield up 0:19:56.800 --> 0:19:59.920 two basis points right now at two point eight six percent. 0:20:00.720 --> 0:20:08.160 You're listening to Bloomberg day Break, the Bloomberg Weather from 0:20:08.160 --> 0:20:12.000 maybe Ron just robbed Caroline Desk five Advisory and effect 0:20:12.119 --> 0:20:15.080 through nine o'clock this morning, the fog will burn off, 0:20:15.119 --> 0:20:18.880 giving way to low clouds, then partial sun the possibility 0:20:18.920 --> 0:20:26.680 of showers. Broadcasting live from the Bloomberg Interactive Brokery Studio 0:20:26.760 --> 0:20:29.680 in New York, Bloomberg E Living free on to Washington, 0:20:29.760 --> 0:20:33.159 d C, Bloomberg nine one to Boston. Bloomberg one O 0:20:33.400 --> 0:20:36.880 six one to San Francisco, Bloomberg N sixty to the country, 0:20:36.960 --> 0:20:40.159 Sirius XM CHADO one nine and around the globe, the 0:20:40.160 --> 0:20:44.679 Bloomberg Business and Bloomberg Radio dot com. This is Bloomberg 0:20:44.760 --> 0:20:52.920 Daybreak at six thirty on Wall Street. Good morning, I'm 0:20:53.000 --> 0:20:55.760 John Tucker and I'm caroen Mosca. We're just about three 0:20:55.800 --> 0:20:58.119 hours away from the open of US trading. Time for 0:20:58.160 --> 0:21:00.240 the five things you need to notice start your day. 0:21:00.280 --> 0:21:03.560 Brought to you by Interactive Brokers ib k Our Investment 0:21:03.560 --> 0:21:06.879 Advisors switched to Interactive Brokers for lowest cost global trading 0:21:06.880 --> 0:21:10.600 and turnkey custody solutions, no ticket charges and no conflicts 0:21:10.600 --> 0:21:13.320 of your interests at ibk R dot com slash r 0:21:13.400 --> 0:21:16.280 i A first US Future is higher as we close 0:21:16.320 --> 0:21:17.879 out a trading week that saw the S and P 0:21:18.040 --> 0:21:20.320 fi've harder to lose more than a trillion dollars and 0:21:20.400 --> 0:21:24.280 market value. The index is down almost from its January 0:21:24.320 --> 0:21:26.240 third closing high, and it is on track for a 0:21:26.400 --> 0:21:29.800 seventh week of losses. Ken Griffin is CEO of Citadel. 0:21:30.280 --> 0:21:32.879 What we're seeing in the markets is a rotation from 0:21:33.320 --> 0:21:36.600 growth Fox with earnings very far in the future towards 0:21:36.640 --> 0:21:39.120 stocks that are are much more value stocks earnings here 0:21:39.200 --> 0:21:41.760 in the present, and this reflects the fact that real 0:21:41.880 --> 0:21:44.280 rates for the first time in a very long time, 0:21:44.760 --> 0:21:49.000 are likely to go positive in and Citadel CEO Ken 0:21:49.040 --> 0:21:51.800 Griffin made the comments to Bloomberg's francying Laqua at the 0:21:51.800 --> 0:21:55.480 Bloomberg Intelligence Market Structure three point conference in New York. 0:21:55.640 --> 0:21:59.200 Results from Applied Materials weighing on some sentiment this morning, 0:21:59.200 --> 0:22:02.480 shares down almost one percent in early trading, the company 0:22:02.600 --> 0:22:06.680 delivering a week forecast as chip shortages persist. Training to 0:22:06.760 --> 0:22:09.639 politics now, President Joe Biden heads to South Korea and 0:22:09.720 --> 0:22:13.000 Japan to reassure allies of America's commitment to Asia. On 0:22:13.000 --> 0:22:16.960 Bloomberg's Daybreak, Asia anchor Brian Curtis has the details. The 0:22:17.080 --> 0:22:20.200 last time a US president visited Soul, in twenty nineteen, 0:22:20.280 --> 0:22:23.679 Donald Trump and Kim Jong lun agreed to restart nuclear talks. 0:22:24.000 --> 0:22:26.440 This time, the White House has not indicated Biden will 0:22:26.440 --> 0:22:29.000 be heading up to the d m Z. In the meantime, 0:22:29.080 --> 0:22:31.320 the North Korean leader is preparing to launch another i 0:22:31.440 --> 0:22:35.800 CBM and possibly conduct his first nuclear test since t seventeen. 0:22:35.960 --> 0:22:38.560 President Biden is aiming to firm up the US pivot 0:22:38.600 --> 0:22:41.919 to Asia and counter China's military build up in the region. 0:22:42.240 --> 0:22:46.080 Brian Curtis, Bloomberg Daybreak, Thanks Ryan. The pandemic also in 0:22:46.119 --> 0:22:50.720 focus this morning with news on vaccine eligibility. Younger children 0:22:50.720 --> 0:22:53.720 across the US can now Receiva COVID boosters shot developed 0:22:53.720 --> 0:22:56.800 by Fiser. Now let's get to tails. Lying from Bloomberg's 0:22:56.840 --> 0:22:59.879 Rind Young. Good morning, Reneva, Good morning, John CDC dre 0:23:00.080 --> 0:23:04.000 to Rochelle Willinsky recommends the booster for children ages five 0:23:04.119 --> 0:23:07.439 to eleven years old. Making the shot available to school 0:23:07.440 --> 0:23:11.400 age kids will provide much needed protection against the contagious 0:23:11.400 --> 0:23:16.000