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Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg

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Speaker 1: day Break for Wednesday, June fifty two. Coming up this hour,

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Speaker 1: the ECB holds an emergency meeting to discuss market conditions.

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Speaker 1: The debate heats up on whether the Fed will hike

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Speaker 1: fifty or seventy five basis points today. Sell off in

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Speaker 1: crypto continues as bitcoin drops to twenty thousand and President

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Speaker 1: Biden takes same at oil refiners record profits, gas bump

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Speaker 1: prices in the New York metro area hit a fresh record,

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Speaker 1: Plus a look at Trump backed candidates, the latest GOP primaries.

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Speaker 1: I'm Michael blarn More ahead, I'm John Stashower and Swords shutout.

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Speaker 1: Wins at home for both the Mets and Yankees, a

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Speaker 1: near no hither in St. Louis the Stanley Cup. Parnel

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Speaker 1: begins The Night That's Alls Traded ahead on Bloomberg Daybreak

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Speaker 1: on Bloomberg eleven three on New York, Bloomberg one, Washington,

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Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine

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Speaker 1: sixties and Francisco Syrius x M one nineteen and around

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Speaker 1: the world Old on Bloomberg Radio dot Com and by

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Speaker 1: the Bloombird Business APT and good morning. I'm John Tucker,

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Speaker 1: I'm Nathan Hagar. Futures are on the rise as we

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Speaker 1: wait to FED decision later today. It is coming up

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Speaker 1: to five oh one on Wall Street. We checked the

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Speaker 1: markets every fifteen minutes during the trading day. On Bloomberg.

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Speaker 1: Right now, SMP futures are up twenty points. Now Future

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Speaker 1: is up a hundred forty NASTACK futures are highered by

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Speaker 1: seventy one point. The tenure treasury is up fourteen thirty seconds.

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Speaker 1: The yield three point four one percent, yield on the

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Speaker 1: two year three point three seven percent. NIMEX screwed down

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Speaker 1: eight tenths percent at a hundred eighteen dollars six cents

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Speaker 1: of arrol. John and Nathan we begin in Europe. We're

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Speaker 1: in a few minutes from now. The European Central Banks

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Speaker 1: Government Council holds an ad hoc meeting to quote discuss

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Speaker 1: current market conditions. Let's get more now from Bloomberg Markets

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Speaker 1: Live editor Lorcan roach Kelly. DCB meeting is more based

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Speaker 1: on what happening markets at home to how i'm spreads

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Speaker 1: of boidant, how it news have moved out and what

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Speaker 1: the market WRO actual the last three or four days

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Speaker 1: has been I'm not going to sure it's going to

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Speaker 1: come with it. I think it's strange that these piece

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Speaker 1: holding the meeting before the FED decision. Sure they don't

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Speaker 1: know what the FED decisition is going to beat themselves,

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Speaker 1: but the factor having to be in it all. Jerry

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Speaker 1: Markets say that is at least somewhat positive for euro Asset.

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Speaker 1: Bloomberg's Lorcan roach Kelly says the Italian bonds of surge down.

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Speaker 1: The news of the unscheduled meeting sources the ECB officials

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Speaker 1: may designed to reinvest bond purchases conducted under the bank's

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Speaker 1: pandemic Emergency program. Other measures could be considered as well.

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Speaker 1: That meant to get started in a few minutes, expected

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Speaker 1: to last about two hours. All right, John, Well, That

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Speaker 1: ECB B meeting comes, of course, ahead of today's highly

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Speaker 1: anticipated decision from the Federal Reserve. The question there is

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Speaker 1: how much j Pal and Company high grates. Michael McKee

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Speaker 1: has more from our Bloomberg nine one newsroom in Washington.

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Speaker 1: The new market consensus is the FED will raise the

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Speaker 1: benchmark US lending rate by seventy five basis points. The

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Speaker 1: biggest increase since nine. That raises the question of what

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Speaker 1: next markets have Already in another seventy five basis point

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Speaker 1: move in July, investors will look to the dot plot

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Speaker 1: rate forecast and Chairman j Pal's news conference for a

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Speaker 1: ratification of that bet. A new median forecast for unemployment

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Speaker 1: of proxy for growth may suggest whether the central bankers

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Speaker 1: still think they can bring down inflation without causing a recession.

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Speaker 1: Michael McKee, Bloomberg Daybreak, All right, thanks Mike. Will it

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Speaker 1: be seventy five basis points? Was summer calling for more

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Speaker 1: erging Square founder Bill Ackman's is a hundred basis point

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Speaker 1: hike would be better? The story from Bloomberg's Charlie Pellett,

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Speaker 1: Ackman says not just today, but in July and thereafter.

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Speaker 1: Instead of the seventy five basis point hyke that some

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Speaker 1: economists are expecting, he said the central bank has allowed

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Speaker 1: inflation to quote get out of control and calls for

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Speaker 1: aggressive action that would help restore market confidence. Writing on Twitter,

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Speaker 1: Ackman said, quote, the sooner the Federal Reserve can get

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Speaker 1: to a terminal FF rate and thereafter can begin to ease,

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Speaker 1: the sooner the markets and recover in New York, Charlie

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Speaker 1: Bloomberg Daybreak, Well, Charlie Jeffrey gun Lacks taking an even

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Speaker 1: more aggressive stance than Bill Ackman. The Double Line Capital

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Speaker 1: CEO says the FED should raise its target interest right

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Speaker 1: to three percent today. That would be a two hundred

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Speaker 1: basis point hike. Markets are still firmly pricing in an

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Speaker 1: increase of seventy five. Let's stay tuned for a complete

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Speaker 1: coverage of this critical FED decision on a special edition

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Speaker 1: of Bloomberg Surveillance that is coming up at one pm

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Speaker 1: Wall Street time on Bloth Bloomberg Radio and Television. And

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Speaker 1: ahead of that decision, we're gonna get the main reading

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Speaker 1: on retail sales account's forecasting gain of just one tenth

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Speaker 1: of a percent. As we mentioned, John Us futures are

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Speaker 1: hired to start the day. Still, The SMP five hundred

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Speaker 1: closed down yesterday for a fifth straight session for its

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Speaker 1: longest slide since January. Mark Lazarie, CEO of Avenue Capital

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Speaker 1: Management and co owner of the Milwaukee Bucks, says week

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Speaker 1: economic sentiment continues to weigh on markets. Everybody knows we're

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Speaker 1: either getting into a recession or is going to be

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Speaker 1: close to a recession. So um, I don't think there's

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Speaker 1: a lot more negative news that's going to come out.

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Speaker 1: You know, the question really is going to be how

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Speaker 1: long is the recession? Is it three months? Is it

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Speaker 1: six months? Is it a year? Avenue Capital CEO Mark

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Speaker 1: Lazie says he thinks the upcoming recession will be short. Well,

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Speaker 1: perhaps no sector has suffered him the sell off as

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Speaker 1: much as cryptocurrencies. At Bitcoin lower again this morning, it

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Speaker 1: approaches the twenty thousand level. Right now, it is trading

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Speaker 1: down seven percent at twenty seven dollars per token. Let's

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Speaker 1: get the latest line from Bloomberg's Really the Young Good morning,

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Speaker 1: Good morning John. Cryptal currencies have become emblematic of a

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Speaker 1: flight from speculative assets. Strategists that Glass notes say the

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Speaker 1: bear market for bitcoin has entered its deepest and darkest phase.

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Speaker 1: Crypto lenders Celsius froze withdrawals on Monday, coin Based announced

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Speaker 1: widespread layoffs on Tuesday. And all of this comes just

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Speaker 1: a month after the collapse of the terror USD stable coin.

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Speaker 1: Royal markets means I'm Bill Gates is dismissing crypto projects

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Speaker 1: like n f t S as shamps, saying there quote

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Speaker 1: based on the greater fool theory. He spoke at a

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Speaker 1: climate conference yesterday and says he's neither long north short.

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Speaker 1: The asset class Live in New York, I'm reneed a

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Speaker 1: young Bloomberg day break. Now we need a thank you.

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Speaker 1: Olst Crypto falls. Oil remains sky high. Pain at the

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Speaker 1: pump is palpable, and President Biden's looking to ease the

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Speaker 1: strain for drivers. We're learning the Energy Department plans to

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Speaker 1: sell up to forty five million barrels from the Strategic Reserve.

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Speaker 1: Amy Morris has more from our Bloomberg newsroom. In Washington,

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Speaker 1: President Biden told oil refiners that unprecedented profit margins are unacceptable.

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Speaker 1: He's calling for immediate action to improve capacity. He's ordered

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Speaker 1: Energy Secretary Jennifer Grenhelm to hold an emergency meeting on

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Speaker 1: the subject in the coming days, and the administration will

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Speaker 1: hold talks with the National Petroleum Council. And he's calling

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Speaker 1: on companies to explain why they've cut capacity. More than

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Speaker 1: a million barrels a day of US oil refining capacity,

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Speaker 1: about five of the total, has been shut since the

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Speaker 1: start of the pandemic. In Washington. I'm any Morris, Bloomberg daybreak.

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Speaker 1: All right, thanks savannam X crewde right now down barrel

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Speaker 1: at one seventeen six down futures up one, SMP futures

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Speaker 1: of eighteen nasdack futures of sixty two. This is daybreak

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Speaker 1: has five. I was setting on Wall Street time to

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Speaker 1: bring in Michael barn with mora hog. What else is

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Speaker 1: going on in New York? Hand around the world, John,

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Speaker 1: Thank you very much, Sarah. US Representative Tom Rice of

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Speaker 1: South Carolina has been anounced it from Congress and his

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Speaker 1: Republican primary after voting to impeach Donald Trump over the

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Speaker 1: January sixth. Then direction Rice, who only got was defeated

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Speaker 1: Tuesday by Trump backed state Congressman Russell Fry, who received fifty. Meanwhile,

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Speaker 1: Representative Nancy Mace cleared the threshold to avoid a runoff

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Speaker 1: against Trump. Back to Katie Errington, New York City Mayor

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Speaker 1: Eric Adams is going to endorse Governor Kathy Hocle in

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Speaker 1: the New York governor's race. Hocal's campaign and adams political

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Speaker 1: adviser confirmed that Adams will make the announcement today in

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Speaker 1: a joint appearance with the Democratic governor in New York City.

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Speaker 1: Adams endorsement comes as Hocal has pledged tougher action on

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Speaker 1: gun crimes, including after the mass shooting in her hometown

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Speaker 1: of Buffalo. Meanwhile, a month after the shooting at the

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Speaker 1: Top supermarket store, survivors, their families and others gathered at

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Speaker 1: the scene to mark the somber event. Buffalo Mayor Byron

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Speaker 1: Brown words will never convey the heartbreak and pain this

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Speaker 1: senseless tragedy has caused. Mayor Brown says the shootings left

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Speaker 1: ten people dead and three injured. Police in Suffolk County

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Speaker 1: say at least fourteen children were injured when an inflatable

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Speaker 1: slide tipped over at a Long Island park. Some of

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Speaker 1: the six and seven year olds were taken to the hospital,

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Speaker 1: one with a broken leg. This seven year old was there,

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Speaker 1: there's too much people house, yeah, and then so over

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Speaker 1: in the hospital. A statement from the Blond Dutch School

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Speaker 1: District says that the slide deflated while the kids were

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Speaker 1: on it. Two police officers in el Monte, California, died

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Speaker 1: in the line of duty. Athorities say the two men

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Speaker 1: were responding to a possible stabbing at a hotel and

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Speaker 1: were fired upon by the suspect. El Monte Mayor Jessica Kna.

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Speaker 1: These men were dedicated to their careers and even more

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Speaker 1: so as son's husbands and fathers. Please keep their families

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Speaker 1: in your prayers, mayor and kind of says the suspect

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Speaker 1: was also killed. Pump prices in the New York metro

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Speaker 1: area had a fresh record. According to Triple A. Gas

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Speaker 1: prices rose to a record five one a gallon overnight

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Speaker 1: for the area and five fifty for Manhattan Global News

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Speaker 1: twenty four hours a day on air and on Bloomberg

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Speaker 1: quick Take, powered by more than journalists and analyists more

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Speaker 1: than a hundred twenty countries. Michael barn This is bloom John, Michael,

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Speaker 1: thank you now five sent on Wall Street Camp. That's

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Speaker 1: time with the Booberg Sports up to Mary Morny. John

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Speaker 1: Yankees and Matt's two best records in baseball Boat were

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Speaker 1: at home. Both won, both with shutouts and le Bronx.

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Speaker 1: Garrett Cole's outing whole lot better than one last week

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Speaker 1: in Minnesota when he allowed home runs but his first

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Speaker 1: three batters and gave up five overall. Cole worked out

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Speaker 1: of the basis load of jam sixth inning that ended

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Speaker 1: his night. It preserved the shut out. The Yanks top

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Speaker 1: Tampa Bay to nothing. It's cold, got to six and one.

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Speaker 1: Clay Holmes got the safe. He's been unbelievable twenty seven

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Speaker 1: straight appearances. Not allowing to run at City Field was

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Speaker 1: Chris Bassett. Eight scoreless. Indians gave up just three hits.

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Speaker 1: The four nothing Mets win over Milwaukee two runs driven

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Speaker 1: in by Pete Alonzo leads to nashvill League fifty nine

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Speaker 1: the Guys. In St. Louis, the Cardinals, Miles Nicholas had

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Speaker 1: a no witner with two outs, two strikes ninth inning.

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Speaker 1: A double by the Pirates cal Mitchell on Nicholas is

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Speaker 1: a hundred and twenty ninth pitch, most thrown in the

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Speaker 1: Major's season. They dropped the clock on the Stanley Cup

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Speaker 1: final tonight and in Denver Tampa Bay lightning off the

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Speaker 1: win over the Rangers and sinking a Stanley kept three.

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Speaker 1: Pete playing Game one with Colorado, who's twelve and two

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Speaker 1: in the playoffs. Bruce Cassidy fired by the Bruins. He's

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Speaker 1: now the new coach of the Vegas Golden Knights to

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Speaker 1: Shaun Watson, formerly with Houston. Now he's got a massive

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Speaker 1: contract a quarterback to Cleveland Browns is also facing twenty

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Speaker 1: four accusations of sexual misconduct. Watson met the media in Cleveland.

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Speaker 1: I've been honest and I've been truthful about my stance. Um,

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Speaker 1: and that's you know. I've never forced anyone, I never

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Speaker 1: assaulted anyone. So um, that's what you know. I've been

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Speaker 1: saying it from the beginning and I'm going to continue

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Speaker 1: to do that and until all the facts come out

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Speaker 1: on the legal side. NFL has been investigating the matter.

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Speaker 1: John Stashatward Bloomberg Sports, All right, thanks John, and uh

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Speaker 1: the meeting today friendly fell to Reserve futures are green

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Speaker 1: Bell futures up one eleven points, SMP futures of seventeen

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Speaker 1: and the Nsday futures of sixty twos. You're listening to

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Speaker 1: Bloomberg Debris and debray being brought to about the New

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Speaker 1: York Community Trust. Your name will live on as a

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Speaker 1: champion of the causes you care about for years to

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Speaker 1: come through a charitable big quest to the New York

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Speaker 1: Community Trust. Learn more at Philanthropist dot n y C

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Speaker 1: markets headlines and breaking news twenty four hours a day

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Speaker 1: Bloomberg Quick take this he's a Bloomberg business flash. I'm

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Speaker 1: Nathan Hagar. Futures are on the rise ahead of a

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Speaker 1: crucial federal reserve policy decision this afternoon. Markets are pricing

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Speaker 1: in the biggest rate hike from the US Central Bank

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Speaker 1: since nine We checked the markets every fifteen minutes during

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Speaker 1: the trading day on Bloomberg SMP futures right now up

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Speaker 1: nineteen points down, futures up a hundred thirty one, Nasdaq

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Speaker 1: futures up sixty seven points. The Dacks in Germany is

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Speaker 1: up one point one percent to Hack and Harris higher

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Speaker 1: by nine tenths percent. The foot See one hundred in

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Speaker 1: London is up nine tenths percent as well. The Tenure

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Speaker 1: Treasury is up eighteen thirty seconds, yield three point four

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Speaker 1: zero percent on the tenure note, yield on the two

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Speaker 1: year three point three four percent. Nim X scrude is

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Speaker 1: down one point one percent, down a dollar twenty five

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Speaker 1: at a hundred seventeen dollar. Sixty eight cents of barrol

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Speaker 1: comex gold up six tenths per cent, or eleven dollars

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Speaker 1: twenty cents at eighteen seventy announced. The euro one point

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Speaker 1: zero four eight seven against the dollar. The pound of

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Speaker 1: one point two zero nine three. The end is at

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Speaker 1: one thirty four point four eight. That's a Bloomberg Business flash.

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Speaker 1: And now here's Michael Barr with more on what's going

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Speaker 1: on around the world. Good morning, Michael, Good morning. Nathan.

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Speaker 1: US Representative Tom Rice of South Carolina has been announced

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Speaker 1: it from Congress in his Republican primary after voting to

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Speaker 1: impeach Donald Trump over the January sixth insurrection. The five

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Speaker 1: term congressman was defeated Tuesday by state Representative Russell Fry,

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Speaker 1: who was endorsed by Trump for I received fifty one percent,

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Speaker 1: well Rice got twenty percent. Brittney Griner's detention in Russia

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Speaker 1: was extended until July. In according to task, the w

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Speaker 1: NBA players being held on charges the drug smuggling in baseball,

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Speaker 1: the Yankees and Mets one. The Red Sox beat the

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Speaker 1: A six one, The Orioles and Giants were winners. The

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Speaker 1: Nationals lost. Global News twenty four hours a day on

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Speaker 1: air and on Bloomberg Quicktake, powered by more than twenty

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Speaker 1: seven hundred journalists and analysts more than a hundred twenty countries.

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Speaker 1: Michael Barn this is Bloomberg. John Michael, thank you. Coming

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Speaker 1: up to twenty on Wall Street. We're live from the

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Speaker 1: Bloomberg INTERRNTO Broker Studios. This is Bloomberg Daybreak. There is

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Speaker 1: a critical federal reserve policy decision later today with markets

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Speaker 1: pricing in the biggest rate hikes since and this morning

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Speaker 1: we have an emergency meeting by the European Central Bank

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Speaker 1: in Europe. Let's take a deeper time this morning with

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Speaker 1: Jennifer Leeves, senior accountists at BEMO Capital Markets. Jenner, if

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Speaker 1: I could, let's start with the ECB. They're actually um

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Speaker 1: achieving what I thought was the impossible. They're making federal

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Speaker 1: reserve policy actually looks simple. Is there sense of panic

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Speaker 1: in Europe? I think there's a sense of concern. Good morning.

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Speaker 1: By the way, UM, it's kind of interesting that they

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Speaker 1: that they are meeting, and obviously they're concerned about bond

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Speaker 1: yields surging in in in various countries across the Europe,

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Speaker 1: the European area, and the fact that last week when

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Speaker 1: they met, you know, there is no discussion apparently about

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Speaker 1: fragmentation UM during the during the official press press conference,

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Speaker 1: but afterwards the resources that came out that said that

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Speaker 1: a large majority of the policymakers were against making an

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Speaker 1: announcement on fragmentation. But obviously the way the markets have

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Speaker 1: been having UM of late is causing them to think

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Speaker 1: twice about it again, and that's why they're probably meeting

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Speaker 1: their original strategy. It sounds like it is in all

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Speaker 1: sorts of trouble today a little bit, a little bit,

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Speaker 1: but you know, there's like everyone has the one goal

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Speaker 1: right now, which is to you know, tackle the UM,

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Speaker 1: the big bag monster of inflation right now. But obviously

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Speaker 1: it has ramifications across across countries and across the asset

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Speaker 1: classes for the ethel m C the expectation basis points

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Speaker 1: well policy makers deliver here. Wow, that is a very

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Speaker 1: very tough question. It's it was very interesting. It's it's

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Speaker 1: almost like, in my humble opinion, how can you that

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Speaker 1: very now the market is fully paced in for a

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Speaker 1: semified basis point hike, how can they not follow through?

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Speaker 1: I think they've almost backed themselves into a corner. And

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Speaker 1: if they don't follow through, they could be seen as weak. UM.

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Speaker 1: If they do follow through, or even maybe even with

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Speaker 1: a larger one, you know, that would cause you know,

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Speaker 1: probably a big reaction of financial markets. But at least

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Speaker 1: it shows that they are sort of attacking this with

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Speaker 1: you know, with with everybody on board right now, um

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Speaker 1: being a lot more aggressive as opposed to do the

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Speaker 1: fifty basis points and just sound more aggressive um. You know,

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Speaker 1: incoming meetings. I think it's either way. We are still

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Speaker 1: expecting fifty basis points, but obviously clearly there is a

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Speaker 1: huge risk of a much bigger, bigger move. Do we

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Speaker 1: get some clarity on what the terminal rate there is

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Speaker 1: going to be today's meeting they will hopefully give some

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Speaker 1: clarity on a lot of different areas um UM. I

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Speaker 1: think in terms of the neutral rate, it probably you know,

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Speaker 1: I think they're probably going to be um keeping at

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Speaker 1: the upper range um and they're going to probably continue

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Speaker 1: to say that we are going to lift rates until

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Speaker 1: even beyond the neutral rate, and if necessary, will keep

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Speaker 1: it there until you know, we start seeing inflation buckle

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Speaker 1: a little bit. Um. But hopefully we'll get a lot

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Speaker 1: more clarity on what they're hoping, what they're looking to see,

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Speaker 1: and what they're looking to do in coming months. What

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Speaker 1: are the drivers of inflation right now? Are they especially

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Speaker 1: affected by rates? When you look at things like energy

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Speaker 1: and food prices for starters, so right now, OK, at

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Speaker 1: the beginning, it was more of an energy story and

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Speaker 1: that's something that Montre policy is not is unable to

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Speaker 1: to to deal with. But as like you know, if

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Speaker 1: a picture power has said many times, UM monetary policy

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Speaker 1: is a very blunt instrument and it can be used

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Speaker 1: to hurt or to hit UM demand. But the supply side,

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Speaker 1: that's something that they can't cannot impact. But at least

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Speaker 1: they're gonna be able to impact one of the two

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Speaker 1: factors that are pushing UM inflation higher, and that's on

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Speaker 1: the demand side. What do you and markets need to

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Speaker 1: hear from the chairman at the press conference today? I

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Speaker 1: would like to hear him, you know what, I think

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Speaker 1: he's been been fairly clear. His communication has been has

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Speaker 1: been very has been actually very good of late UM,

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Speaker 1: and he's always been saying that, you know what, they

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Speaker 1: need to see inflation coming down. It can't be just

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Speaker 1: a few months. It's got to be a consistent move

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Speaker 1: downward before they will consider pausing. It would be very interesting,

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Speaker 1: by the way, to see what he says about the

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Speaker 1: market turmoil, whether or not that's going to impact their

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Speaker 1: decision and UM you know, seeing you know, salt markets

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Speaker 1: plunge the way they have, whether or not that's going

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Speaker 1: to make them potentially hold back a little bit. What's

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Speaker 1: your impression of whether or not there's going to be

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Speaker 1: a recession? If so, will be a deep one. Oh,

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Speaker 1: very good questions that this morning. You know what, I

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Speaker 1: think that there would the pot the risk continue to

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Speaker 1: run ice obviously, and the longer that inflation stays high,

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Speaker 1: the more aggressive the Fed continues to be. The chances

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Speaker 1: of a recession in the next year are continuing to rise.

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Speaker 1: Jen always a pleasure appreciate at Jennifer Lee, senior economist

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Speaker 1: at Demo Capital Markets, with this this morning and ahead

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Speaker 1: of that right decision at two o'clock today, we have

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Speaker 1: a futures in the green this morning after this week's

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Speaker 1: sell off. The down futures right now one eight points

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Speaker 1: sire that's orians of about four tens of a percent.

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Speaker 1: Smp emity futures they are up seventeen points, and the

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Speaker 1: dance taking many futures right now they are up sixty points.

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Speaker 1: And as we look to market volatility wall streets fear gage,

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Speaker 1: the VIX is UH slightly deflated right now at thirty

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Speaker 1: two fifty. The ten year yielding in the US three

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Speaker 1: point four percent. That he is down six basis points.

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Speaker 1: The two year yield right now at three point three

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Speaker 1: four that is down seven basis points. You're less nay.

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Speaker 1: The Bloomberg Daybreak an the Bloomberg Weather from bb rologist

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Speaker 1: Rob Caroline Today, abundant sunshine, the heights aperture topic at

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Speaker 1: about the eight degrees tonight, partly ploudy. There's the chance

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Speaker 1: of a few showers after the midnight. The Most sixty

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Speaker 1: five broadcasting live from the Bloomberg Interactive Broker's studio in

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Speaker 1: New York, Bloomberg Living Freedland to Washington, d C. Bloomberg

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Speaker 1: to Boston, Bloomberg one oh six one to San Francisco,

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Speaker 1: Bloomberg nine six to the country, Sirius XM chand A

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Speaker 1: one nineteen and around the globe, the Bloomberg Business app

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Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Daybreak. He's

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Speaker 1: five thirty on Blood Street. Good morning, I'm John Tucker

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Speaker 1: and I'm Nathan Hagar. We're just about four hours away

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Speaker 1: from the open of US trading. Let's get you up

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Speaker 1: to date on the news you need to know at

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Speaker 1: this hour. Right now, European Central Bank President Christine Lagarde

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Speaker 1: and her colleagues on the Governing Council are holding an

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Speaker 1: emergency meeting to discuss market conditions. We caught up with

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Speaker 1: the Finance Minister Married McGinnis ahead of the meeting. The

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Speaker 1: ECP is doing its job, so I think that's important.

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Speaker 1: I'm not going to second yes, the conversations that will

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Speaker 1: take place at this meeting, but clearly, since the beginning

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Speaker 1: of this year, and particularly since the invasion, the illegal

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Speaker 1: invasion by Russia of Ukraine, there is uncertainty in markets.

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Speaker 1: The Youth Finance Commissioner, Married McGinnis says the meeting should

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Speaker 1: last about two hours. The ECB gathering comes on the

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Speaker 1: same day the Fed makes an interest rate decision. The

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Speaker 1: question now is how much the federal hike. Let's get

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Speaker 1: more from Bloomberg's thinning down Judais. Most economists anticipate another

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Speaker 1: half point rate increase today, lifting the feds target range

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Speaker 1: between one point two five percent and one point five percent,

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Speaker 1: but some say they wouldn't be surprised if the Fed

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Speaker 1: opts for something more, a larger move and expension mark

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Speaker 1: interest rate. Bloomberg Economics says the FEDS dot plot, which

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Speaker 1: traces the likely path of US interest rates, could move

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Speaker 1: to three percent or a bit higher next year. Any

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Speaker 1: dope Bloomberg day, All right, thanksny One economists predictive fifty

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Speaker 1: basis point hike. Markets are now pricing in a seventy

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Speaker 1: point increase now. Futures are higher ahead of the FED decision.

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Speaker 1: But it's a different story for crypto currencies. Bitcoin is

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Speaker 1: lower again this morning, right now, trading at about twenty

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Speaker 1: two hundred dollars. Let's get the latest life from Bloomberg's

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Speaker 1: or need a young Good morning, Greina, Good morning Nathan.

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00:22:31,800 --> 00:22:34,840
Speaker 1: Strategists at Glass Notes say the bear market for bitcoin

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Speaker 1: has entered its deepest and darkest phase. Crypto lenders Celsius

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00:22:38,920 --> 00:22:43,440
Speaker 1: froze withdrawals on Monday. Coin Base announced widespread layoffs on Tuesday.

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Speaker 1: And this all comes just a month after the collapse

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Speaker 1: of the terror USD stable coin royal crypto markets. Meantime,

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Speaker 1: Bill Gates is dismissing crypto projects like n f t

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Speaker 1: S as shams, saying they're quote based on the greater

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Speaker 1: fool theory. He says he's neither long nor short the

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Speaker 1: asset class live in New York. I'm Nada Young Bloomberg

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Speaker 1: day Break. Thanks for nat to the international energy agencies

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Speaker 1: predicting global oil supplies will struggle to meet rising demand

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Speaker 1: next year. That means consumers will continue to face tight

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Speaker 1: fueld markets. Crude has climb more than fifty percent this year.

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Speaker 1: Right now, not X crude is now the dollar thirty

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Speaker 1: eight at one sevent and future is John are moving higher.

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Speaker 1: We have SMP futures up twenty one point, Staff futures

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Speaker 1: up forty four, Nasdaq futures higher by seventy four points.

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Speaker 1: Straight ahead your latest local headlines in the check of sports.

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Speaker 1: This is Bloomberg. Thanks Nathan. Five thirty three on Wall Street.

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Speaker 1: Time to bring in Michael Barr with more on what

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Speaker 1: else is going on in New York and around the world. John,

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Speaker 1: thank you very much, Sarah. US Representative Tom Rice of

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Speaker 1: South Carolina has been announced to from Congress and his

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Speaker 1: Republican primary after voting to impeach Donald Trump over the

428
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Speaker 1: January six insurrection. The five term congressman was defeated by

429
00:24:00,680 --> 00:24:05,440
Speaker 1: Trump back state Representative Russell Fry. Fry received ble Rice

430
00:24:05,520 --> 00:24:10,680
Speaker 1: got Meanwhile, Representative Nancy Mace Clear at the fifty threshold

431
00:24:10,720 --> 00:24:14,479
Speaker 1: to avoid a runoff against Trump backed Katie Arrington. New

432
00:24:14,600 --> 00:24:16,560
Speaker 1: York Governor Kathy Hokel is about to get a big

433
00:24:16,680 --> 00:24:19,960
Speaker 1: endorsement today and the governor's race. Fellow Democrat New York

434
00:24:20,000 --> 00:24:22,440
Speaker 1: City Mayor Eric Adams is set to make the announcement

435
00:24:22,480 --> 00:24:25,760
Speaker 1: to endorse SOCOL. In a joint news conference to police

436
00:24:25,800 --> 00:24:28,720
Speaker 1: officers in El Monte, California, died after responding to a

437
00:24:28,800 --> 00:24:32,880
Speaker 1: possible stabbing in a hotel. L Monty Interim police Chief

438
00:24:32,960 --> 00:24:36,600
Speaker 1: Ben Lowry says the officers were fired upon by the suspect.

439
00:24:36,800 --> 00:24:42,520
Speaker 1: These heroes paid the ultimate sacrifice today. They were murdered

440
00:24:42,560 --> 00:24:46,359
Speaker 1: by a coward and we are grieving and it hurts.

441
00:24:46,880 --> 00:24:50,119
Speaker 1: Chief Laurie says the suspect was also killed. The Senate

442
00:24:50,200 --> 00:24:52,440
Speaker 1: may have found the formulat to get Republicans on board

443
00:24:52,520 --> 00:24:55,920
Speaker 1: with a gun safety bill, Bloomberg's said. Baxter reports Minority

444
00:24:56,000 --> 00:24:58,680
Speaker 1: Leader Mitch McConnell is making noises that make it sound

445
00:24:58,800 --> 00:25:01,800
Speaker 1: like he will support it. Just people who own God,

446
00:25:02,880 --> 00:25:07,240
Speaker 1: and support for the provisions of the framework is off

447
00:25:07,320 --> 00:25:12,040
Speaker 1: the charts overwhelming, He says. It's wording. I think if

448
00:25:12,080 --> 00:25:16,320
Speaker 1: this framework becomes the actual piece of legislation. It's a

449
00:25:16,480 --> 00:25:20,800
Speaker 1: step forward, step forward on a bipartisan basis, and majority

450
00:25:20,800 --> 00:25:22,840
Speaker 1: of Leader Chuck Schumer says it will be brought to

451
00:25:22,920 --> 00:25:26,480
Speaker 1: the floor quickly. In San Francisco, I'm at Baxter Bloomberg

452
00:25:26,520 --> 00:25:28,720
Speaker 1: Gay Break. The pain at the gas pump continues for

453
00:25:28,800 --> 00:25:31,720
Speaker 1: the New York metro area. According to Triple A, prices

454
00:25:31,840 --> 00:25:35,360
Speaker 1: rose to a record five one overnight and five fifty

455
00:25:35,680 --> 00:25:38,960
Speaker 1: in Manhattan. Global News twenty four hours a day on

456
00:25:39,119 --> 00:25:41,800
Speaker 1: air and on Bloomberg Quick Take, powered by more than

457
00:25:42,720 --> 00:25:46,000
Speaker 1: journalists analysts more than a hundred twenty countries. I'm Michael Barr,

458
00:25:46,160 --> 00:25:53,159
Speaker 1: and this is Bloomberg, John, Michael, thank you. It's not

459
00:25:53,280 --> 00:25:55,800
Speaker 1: five three o'clock Wall Street. That's time for the Bloomberg

460
00:25:55,840 --> 00:25:59,200
Speaker 1: Sports Update. And here's John Stash. Thanks John. Yankees have

461
00:25:59,280 --> 00:26:01,920
Speaker 1: watched the low pay roll Sampa Bay Rays win the

462
00:26:02,040 --> 00:26:04,600
Speaker 1: a L East each of the last two seasons. This year,

463
00:26:04,800 --> 00:26:07,639
Speaker 1: Yanks ten games ahead first of six between the two

464
00:26:07,720 --> 00:26:10,240
Speaker 1: teams over a ten day period at the stadium. I'll

465
00:26:10,320 --> 00:26:13,320
Speaker 1: drop fly ball fourth inning and put two Yankees on

466
00:26:13,880 --> 00:26:17,840
Speaker 1: Isaiah Kiner Fileffa at the plate line. Hard gluck THEO.

467
00:26:17,880 --> 00:26:22,080
Speaker 1: There's a Santon runs third coming home, The throw is

468
00:26:22,119 --> 00:26:25,120
Speaker 1: gonna be too high, goes back to the screen. Here

469
00:26:25,200 --> 00:26:28,560
Speaker 1: comes another run home. The crow home is is not

470
00:26:28,760 --> 00:26:31,120
Speaker 1: in dial w f an. Those are only two rounds.

471
00:26:31,200 --> 00:26:33,440
Speaker 1: Yanks score twenty six in their last two games with

472
00:26:33,480 --> 00:26:36,200
Speaker 1: the Cubs. They won this one to Nothing's Garrett Cole

473
00:26:36,280 --> 00:26:38,440
Speaker 1: goes to six and onety team with three relievers on

474
00:26:38,520 --> 00:26:41,720
Speaker 1: the shutout. Cole very much bouncing back from that nightmare

475
00:26:41,760 --> 00:26:43,680
Speaker 1: start last week in Minnesota, where you give a five

476
00:26:43,760 --> 00:26:47,960
Speaker 1: home runs. Tonight it's Nestor Cortez versus the Ray Shane McClanahan.

477
00:26:48,040 --> 00:26:49,600
Speaker 1: Both have v r A s under two, and if

478
00:26:49,640 --> 00:26:52,400
Speaker 1: the Yanks win tonight they will be thirty games over

479
00:26:52,520 --> 00:26:54,639
Speaker 1: five hundred. Amazing. The Mets have been so good with

480
00:26:54,760 --> 00:26:57,680
Speaker 1: maxers Are injured, Jacob de Graham still yet to pitch.

481
00:26:57,760 --> 00:27:01,280
Speaker 1: De Graham has thrown four vullpen sessions, and shus Are

482
00:27:01,320 --> 00:27:05,480
Speaker 1: will through a simulated game Thursday. Meanwhile, Chris Bassett dominant

483
00:27:05,520 --> 00:27:06,840
Speaker 1: and the Mets for nothing to win at the City

484
00:27:06,840 --> 00:27:09,040
Speaker 1: Field over Milwaukee. Bassett went eight and into that only

485
00:27:09,080 --> 00:27:11,840
Speaker 1: three hits. Mets State five games ahead of Atlanta. The

486
00:27:11,920 --> 00:27:14,560
Speaker 1: Braves thirteenth win in a row in Washington. They hit

487
00:27:14,600 --> 00:27:17,000
Speaker 1: five home runs for the second straight game. A near

488
00:27:17,040 --> 00:27:19,640
Speaker 1: no hitter in St. Louis, the Cardinals Miles Nicholas lost

489
00:27:19,720 --> 00:27:21,639
Speaker 1: it with two outs of the night. They'll start the

490
00:27:21,720 --> 00:27:24,760
Speaker 1: Stanley Cup Finals tonight Tampa Bay at Colorado. The lighting

491
00:27:24,840 --> 00:27:27,800
Speaker 1: may get great in point back from injury, missed the

492
00:27:27,880 --> 00:27:30,800
Speaker 1: last two series point thirty goals of the last three playoffs.

493
00:27:31,080 --> 00:27:34,440
Speaker 1: Johns Dash Award was in Sports. John John It is

494
00:27:34,480 --> 00:27:36,840
Speaker 1: five thirties seven on Wall Street time for the Tri

495
00:27:37,000 --> 00:27:40,480
Speaker 1: State Business Report, and for that we're joined by Bloomberg's

496
00:27:40,680 --> 00:27:45,280
Speaker 1: ed Quarry Consolidated. Edison says utility bills will jump twelve

497
00:27:45,359 --> 00:27:48,720
Speaker 1: percent this summer. In New York City. Westchester County bills

498
00:27:48,760 --> 00:27:52,760
Speaker 1: could source sixteen percent compared to last summer. Electricity rates

499
00:27:52,800 --> 00:27:55,760
Speaker 1: have been surging across the US as gas and coal

500
00:27:55,880 --> 00:27:59,520
Speaker 1: supplies are tight and temperatures rise. New York bankers are

501
00:27:59,600 --> 00:28:02,720
Speaker 1: not rushing back to the office. In the downtown cluster

502
00:28:02,880 --> 00:28:06,520
Speaker 1: that includes Wall Street, Pretta Mongery's sale of coffee and

503
00:28:06,640 --> 00:28:09,479
Speaker 1: sandwiches are less than half of what they were before

504
00:28:09,560 --> 00:28:12,760
Speaker 1: the pandemic began. Earlier this month, they fell to their

505
00:28:12,800 --> 00:28:16,639
Speaker 1: lowest level since January. A coalition of homeowners, renters, and

506
00:28:16,800 --> 00:28:20,840
Speaker 1: social justice organizations Tuesday objected to a decision by the

507
00:28:20,880 --> 00:28:24,800
Speaker 1: New York City Council to raise property taxes nearly seven percent.

508
00:28:25,160 --> 00:28:28,840
Speaker 1: Council members voted Monday to adopt that tax increase, but

509
00:28:29,000 --> 00:28:32,600
Speaker 1: also approved a ninety million dollar property tax rebate for

510
00:28:32,960 --> 00:28:36,360
Speaker 1: working in middle class homeowners. That your Bloomberg Try State

511
00:28:36,440 --> 00:28:39,240
Speaker 1: Business Report. I'm Ed Corey, all right, thanks At five

512
00:28:39,360 --> 00:28:42,120
Speaker 1: thirty eight on Wall Street. Bloomberg Radio is on the

513
00:28:42,200 --> 00:28:45,920
Speaker 1: air from San Francisco to New York, London to Hong Kock. Yeah.

514
00:28:45,960 --> 00:28:47,760
Speaker 1: Let's check it now with the Global News team for

515
00:28:48,000 --> 00:28:50,280
Speaker 1: some of the top stories hurt on our three hundred

516
00:28:50,320 --> 00:28:57,640
Speaker 1: affiliate radio stations around the world. I'm Steve potascon ten

517
00:28:57,760 --> 00:29:00,120
Speaker 1: ten Wins in New York. We're talking about how the

518
00:29:00,200 --> 00:29:03,120
Speaker 1: price of luxury goods in New York are a relative

519
00:29:03,200 --> 00:29:07,760
Speaker 1: bargain when compared to overall inflation rates. I'm Gina Servetti

520
00:29:07,880 --> 00:29:11,640
Speaker 1: and for w BBM in Chicago, I'm reporting that Caterpillar

521
00:29:11,760 --> 00:29:15,600
Speaker 1: is leaving Illinois after decades to move its company headquarters

522
00:29:15,680 --> 00:29:19,360
Speaker 1: to Texas. And Lisa Mateo and on KYW in Philadelphia,

523
00:29:19,440 --> 00:29:22,080
Speaker 1: I'll be reporting on more price hikes coming to a

524
00:29:22,160 --> 00:29:25,920
Speaker 1: wireless carrier. I'm Carlin had compliment dab disial ratio. Here

525
00:29:25,920 --> 00:29:28,800
Speaker 1: in London. We've been reporting on the emergency ECB meeting

526
00:29:28,880 --> 00:29:32,440
Speaker 1: in Frankfurt as bontialed spike over inflation fits. I'm had

527
00:29:32,560 --> 00:29:36,240
Speaker 1: Corey on w w J in Detroit. I'm reporting Ford

528
00:29:36,320 --> 00:29:41,600
Speaker 1: has temporarily stopped deliveries of its Mustang make. And those

529
00:29:41,640 --> 00:29:44,800
Speaker 1: are some of the stories are tred Bloomberg journalists and

530
00:29:44,840 --> 00:29:48,600
Speaker 1: analysts are working on this morning around the world. It's

531
00:29:48,840 --> 00:29:51,800
Speaker 1: five thirty nine on Wall Street. The following is an

532
00:29:51,960 --> 00:29:56,600
Speaker 1: editorial from Bloomberg Opinion. The Pentagon has a supply chain problem.

533
00:29:57,000 --> 00:29:59,320
Speaker 1: Consider this. In just a few months, the war in

534
00:29:59,480 --> 00:30:02,720
Speaker 1: Ukraine has consumed a quarter of the country's Stinger anti

535
00:30:02,760 --> 00:30:08,080
Speaker 1: aircraft missiles, but replacements might not be available until. It's

536
00:30:08,120 --> 00:30:11,840
Speaker 1: a symptom of a larger problem. Pentagon report found that

537
00:30:11,880 --> 00:30:15,840
Speaker 1: the US military is too often reliant on individual suppliers,

538
00:30:16,360 --> 00:30:20,040
Speaker 1: a weakness that threatens its ability to respond to future crises.

539
00:30:20,240 --> 00:30:23,400
Speaker 1: To prevent shortfalls, the Pentagon should work to attract more

540
00:30:23,560 --> 00:30:27,480
Speaker 1: non traditional vendors, which would broaden its industrial base. It

541
00:30:27,520 --> 00:30:32,120
Speaker 1: should also expand programs to identify promising military technology companies,

542
00:30:32,280 --> 00:30:34,600
Speaker 1: and the U should work with allies that have spare

543
00:30:34,720 --> 00:30:39,640
Speaker 1: manufacturing capacity to bolster collective stockpiles. If the Pentagon wants

544
00:30:39,680 --> 00:30:43,240
Speaker 1: to support Ukraine and win future wars, rethinking how it

545
00:30:43,320 --> 00:30:46,680
Speaker 1: acquires weapons will be key. This editorial was written by

546
00:30:46,680 --> 00:30:50,000
Speaker 1: the Bloomberg Opinion Editorial Board. I'm David Chipley. For more

547
00:30:50,040 --> 00:30:53,200
Speaker 1: Bloomberg Opinion, please go to Bloomberg dot com, slash Opinion

548
00:30:53,400 --> 00:30:56,800
Speaker 1: or OPA go on the Bloomberg terminal. This has been

549
00:30:56,920 --> 00:31:01,040
Speaker 1: Bloomberg Opinion and Bloomberg Opinion Editorial can be heard every

550
00:31:01,200 --> 00:31:04,280
Speaker 1: weekday at this time. Terminal customers can read more at

551
00:31:04,400 --> 00:31:08,280
Speaker 1: O P I n GO. European Central Bank emergency meeting

552
00:31:08,520 --> 00:31:12,440
Speaker 1: is currently under way. The meantime, Italy's tenure yield currently

553
00:31:12,560 --> 00:31:17,120
Speaker 1: trading below just four percent, still six sixty basis points

554
00:31:17,520 --> 00:31:22,120
Speaker 1: above the predecision level. This is Bloomberg at ahead of

555
00:31:22,160 --> 00:31:25,040
Speaker 1: the FED meeting this afternoon. Down futures right now up

556
00:31:25,080 --> 00:31:28,719
Speaker 1: one and twenty three points. SMP futures they're up at

557
00:31:28,760 --> 00:31:32,280
Speaker 1: eighteen and the nastak emnity futures are up sixties six.

558
00:31:32,680 --> 00:31:40,120
Speaker 1: This is Bloomberg Markets headlines and breaking news twenty four

559
00:31:40,200 --> 00:31:43,200
Speaker 1: hours a day at Bloomberg dot com, the Bloomberg Business

560
00:31:43,240 --> 00:31:46,440
Speaker 1: at and at Bloomberg Quick Tape. This is a Bloomberg

561
00:31:46,520 --> 00:31:54,520
Speaker 1: Business Flash. I'm Nathan Hagar. This slash is brought to

562
00:31:54,560 --> 00:31:56,920
Speaker 1: you by Informatica. In the Cloud. Your data has the

563
00:31:56,960 --> 00:31:59,920
Speaker 1: power to do the extraordinary avantage data across any location

564
00:32:00,160 --> 00:32:02,719
Speaker 1: in the cloud for accurate and actionable insights. More at

565
00:32:02,800 --> 00:32:06,240
Speaker 1: Informatica dot Com. Futures are gaining before a crucial FED

566
00:32:06,360 --> 00:32:09,080
Speaker 1: policy decision this afternoon, with markets pricing in the biggest

567
00:32:09,160 --> 00:32:11,880
Speaker 1: rate hikes since nineteen ninety four. We checked the markets

568
00:32:11,920 --> 00:32:15,160
Speaker 1: every fifteen minutes during the trading day on Bloomberg. Right now,

569
00:32:15,440 --> 00:32:18,560
Speaker 1: SMP futures are up. They are higher by twenty one point,

570
00:32:18,560 --> 00:32:21,520
Speaker 1: STOW futures up a hundred forty nine, Nasdaq futures up

571
00:32:21,600 --> 00:32:24,840
Speaker 1: seventy nine points. The tenure Treasury is up nineteen thirty seconds.

572
00:32:24,880 --> 00:32:27,120
Speaker 1: The yield three point three nine percent yield on the

573
00:32:27,160 --> 00:32:30,120
Speaker 1: two year three point three two percent. Nim X screwed

574
00:32:30,280 --> 00:32:32,240
Speaker 1: is down one point one percent, down to dollar thirty

575
00:32:32,280 --> 00:32:34,920
Speaker 1: four a hundred seventeen dollars fifty eight cents of barrel

576
00:32:35,240 --> 00:32:37,520
Speaker 1: comics gold is up seven tenths percent, or twelve dollars

577
00:32:37,560 --> 00:32:40,360
Speaker 1: forty cents. At eighteen twenty six, twenty announced the euro

578
00:32:40,480 --> 00:32:42,680
Speaker 1: one point zero four eight two against the dollar. The

579
00:32:42,920 --> 00:32:45,560
Speaker 1: en one thirty four point four four bitcoined right around

580
00:32:45,560 --> 00:32:48,520
Speaker 1: twenty thousand, one hundred dollars. That's a Bloomberg business flash.

581
00:32:48,560 --> 00:32:50,560
Speaker 1: And now here's Michael Barr with more on what's going

582
00:32:50,600 --> 00:32:53,120
Speaker 1: on around the world. Michael, thank you very much. Nathan.

583
00:32:53,160 --> 00:32:56,480
Speaker 1: In South Carolina, Congressman Tom Rice is out. The five

584
00:32:56,680 --> 00:32:59,240
Speaker 1: term incumbent who voted to impeach Donald Trump for the

585
00:32:59,320 --> 00:33:03,560
Speaker 1: January Day extens direction was defeated by Trump backed Russell Fry.

586
00:33:03,720 --> 00:33:08,760
Speaker 1: Fry got Rice. The leaders of seven eight oh nations

587
00:33:08,880 --> 00:33:12,440
Speaker 1: from across Europe pledge their continued support for Ukraine. They

588
00:33:12,480 --> 00:33:15,480
Speaker 1: agreed to step up military supplies and provide more heavy

589
00:33:15,520 --> 00:33:18,640
Speaker 1: weapons to the war torn country. In baseball, the Yankees

590
00:33:18,680 --> 00:33:21,560
Speaker 1: and Mets one the Red Sox beat the A's, Orioles

591
00:33:21,600 --> 00:33:25,320
Speaker 1: and Giants were also winners. The Nationals lost Global News

592
00:33:25,400 --> 00:33:28,240
Speaker 1: twenty four hours a day on air and on Bloomberg

593
00:33:28,320 --> 00:33:31,480
Speaker 1: quick Take, powered by more than journalist and analysts more

594
00:33:31,520 --> 00:33:35,280
Speaker 1: than twenty countries. Michael barr and this is Bloomberg John

595
00:33:35,440 --> 00:33:38,000
Speaker 1: Michael five forty nine on Wall Street. We are lying

596
00:33:38,040 --> 00:33:42,240
Speaker 1: for the Bloomberg Interact. To broker studios, this is Bloomberg Daybreak. Well,

597
00:33:42,360 --> 00:33:46,480
Speaker 1: monetary policy firmly. You have focused this morning uncertainty a

598
00:33:46,560 --> 00:33:49,720
Speaker 1: bit elevated heading into the FED decision today and of

599
00:33:49,840 --> 00:33:53,720
Speaker 1: course those are European Central Bank meeting taking place this morning.

600
00:33:54,200 --> 00:33:57,480
Speaker 1: This is an emergency meeting. Let's break it all down

601
00:33:57,560 --> 00:34:00,680
Speaker 1: for you this morning. We're joined by se Do actually

602
00:34:00,760 --> 00:34:03,760
Speaker 1: Flow Bank chief Investment officer. If we could just head

603
00:34:03,800 --> 00:34:06,240
Speaker 1: over to Europe for a moment, asked, is there a

604
00:34:06,320 --> 00:34:09,880
Speaker 1: sense of panic as the policymakers in Europe hold in

605
00:34:10,080 --> 00:34:15,400
Speaker 1: an emergency meeting this morning? Good morning. I wouldn't say panic.

606
00:34:15,520 --> 00:34:17,719
Speaker 1: I think what we've heard from the e c B

607
00:34:18,080 --> 00:34:20,200
Speaker 1: is that they didn't want to tell us or tell

608
00:34:20,239 --> 00:34:22,920
Speaker 1: the markets too far in advance what tools they were

609
00:34:22,920 --> 00:34:26,800
Speaker 1: going to use, because they thought it lost effectiveness. But

610
00:34:26,920 --> 00:34:30,200
Speaker 1: what we're really seeing is a divergence of the needs

611
00:34:30,360 --> 00:34:33,160
Speaker 1: of different countries. From the e c B, we have

612
00:34:34,200 --> 00:34:37,400
Speaker 1: Northern Europe that needs higher rates, and we have Southern

613
00:34:37,480 --> 00:34:40,800
Speaker 1: Europe and of course Italy as the biggest example the

614
00:34:40,880 --> 00:34:43,200
Speaker 1: needs rates to stay low, and so the blowout in

615
00:34:43,280 --> 00:34:48,319
Speaker 1: Italian spreads is threatening the financial stability of Europe. It's

616
00:34:48,360 --> 00:34:50,880
Speaker 1: the last big election that we're going to have, probably

617
00:34:51,000 --> 00:34:54,080
Speaker 1: next year, but after Germany and France, those are finished.

618
00:34:54,120 --> 00:34:57,279
Speaker 1: Now Italy is in the spotlight, and so I think

619
00:34:57,360 --> 00:35:00,719
Speaker 1: it's a way for the ECB to maint something of

620
00:35:00,760 --> 00:35:03,560
Speaker 1: a hawkish tone in terms of rate heights and fighting

621
00:35:03,600 --> 00:35:06,800
Speaker 1: inflation because they do have that two percent mandate. But

622
00:35:06,880 --> 00:35:10,440
Speaker 1: at the same time that financial stability is important and

623
00:35:10,520 --> 00:35:15,080
Speaker 1: they're gonna discuss tools, including reinvestment from the p PP

624
00:35:15,280 --> 00:35:19,359
Speaker 1: or other to try to contain those spreads, especially in Italy. Yeah,

625
00:35:19,360 --> 00:35:22,799
Speaker 1: the headlines are earlier is that the ECB would look

626
00:35:22,960 --> 00:35:27,480
Speaker 1: at the p e P, the pandemic reinvestments that kind

627
00:35:27,520 --> 00:35:30,360
Speaker 1: of underwhelmed season. Now that the bank intends to do

628
00:35:30,480 --> 00:35:32,960
Speaker 1: more than that. The latest headline that's coming out of

629
00:35:33,000 --> 00:35:37,880
Speaker 1: the ECB emergency meeting they'll discuss crisis strategy as well

630
00:35:37,960 --> 00:35:43,200
Speaker 1: as reinvestments of the pandemic pandemic era UH investments. The

631
00:35:43,480 --> 00:35:46,239
Speaker 1: Italian Banya is dropping back close to the lows of

632
00:35:46,360 --> 00:35:49,400
Speaker 1: the day the wake of that report. Let's switch now,

633
00:35:50,080 --> 00:35:52,440
Speaker 1: st if we could to the Federal Reserve, what is

634
00:35:52,480 --> 00:35:56,279
Speaker 1: your expectation? Seventy five basis points seems to be the

635
00:35:56,360 --> 00:35:59,839
Speaker 1: market bat right now. I think that's what we're gonna

636
00:35:59,880 --> 00:36:01,919
Speaker 1: get it. I think if you if at this point

637
00:36:02,000 --> 00:36:05,440
Speaker 1: the last three days, so much press has come out

638
00:36:05,560 --> 00:36:08,800
Speaker 1: in that direction, it would actually underwhelm the market to

639
00:36:08,880 --> 00:36:12,279
Speaker 1: get only fifty basis points UH, And you can feel

640
00:36:12,360 --> 00:36:14,680
Speaker 1: that that may c p I. Even though the core

641
00:36:15,080 --> 00:36:18,280
Speaker 1: did come down a little bit, that headline number really

642
00:36:18,600 --> 00:36:22,800
Speaker 1: not coming down at all UH and worrying everyone from consumers.

643
00:36:22,880 --> 00:36:25,759
Speaker 1: That University of Michigan survey with the one year expectation

644
00:36:26,000 --> 00:36:28,879
Speaker 1: jumping as well, and that means the Fed has to act.

645
00:36:29,080 --> 00:36:31,840
Speaker 1: They've said they want to front load the hikes, so

646
00:36:32,200 --> 00:36:35,160
Speaker 1: they're going to do that even more so. And it

647
00:36:35,560 --> 00:36:38,680
Speaker 1: means that maybe isn't off the table either for July,

648
00:36:38,920 --> 00:36:41,560
Speaker 1: depending on how the next couple of weeks looks and

649
00:36:41,640 --> 00:36:44,960
Speaker 1: how the pc comes out, can dive into stocks and

650
00:36:45,160 --> 00:36:51,120
Speaker 1: risk assets. At this point, you know, the the main

651
00:36:51,239 --> 00:36:54,920
Speaker 1: rebound was very nice, but we've been saying that there

652
00:36:55,000 --> 00:36:57,239
Speaker 1: was always a bad headline that could come and that

653
00:36:57,320 --> 00:37:00,000
Speaker 1: could stare scare the markets. Again. The CPI was obvious

654
00:37:00,000 --> 00:37:03,000
Speaker 1: to the top of that list. Um, you have a

655
00:37:03,120 --> 00:37:07,440
Speaker 1: market that or sentiment is already extremely fragile. There's the

656
00:37:07,600 --> 00:37:11,000
Speaker 1: growth fears, and the recession fears are rising, and the

657
00:37:11,120 --> 00:37:14,840
Speaker 1: fact that inflation isn't coming down as fast as anyone like,

658
00:37:15,040 --> 00:37:18,480
Speaker 1: or coming down at all. That's that's another conversation. Means

659
00:37:18,560 --> 00:37:22,320
Speaker 1: the Fed has to keep hiking aggressively, and that's exacerbating

660
00:37:22,360 --> 00:37:25,080
Speaker 1: the fears about growth, about a recession risk in the

661
00:37:25,200 --> 00:37:27,600
Speaker 1: U S which I don't think will happen this year,

662
00:37:28,239 --> 00:37:32,399
Speaker 1: though slowing is already starting. And that combination just sort

663
00:37:32,440 --> 00:37:35,920
Speaker 1: of gave the excuse to the markets that almost wanted

664
00:37:35,960 --> 00:37:39,760
Speaker 1: the May bounce to be a bear market rally to retreat.

665
00:37:39,840 --> 00:37:43,120
Speaker 1: So another couple of weeks under pressure, I'm not sure.

666
00:37:43,239 --> 00:37:44,840
Speaker 1: I mean the Fed, the market is really looking to

667
00:37:44,880 --> 00:37:47,520
Speaker 1: see where that terminal rate is going to be. Anything

668
00:37:47,560 --> 00:37:50,839
Speaker 1: below four percent probably a positive at this point, given

669
00:37:50,880 --> 00:37:54,799
Speaker 1: the market expectations and not that many catalysts to give

670
00:37:54,840 --> 00:37:57,480
Speaker 1: a lot of good news. Uh, you know, maybe the

671
00:37:57,560 --> 00:38:00,279
Speaker 1: ECB will see if that carries over elsewhere, if is

672
00:38:00,400 --> 00:38:04,319
Speaker 1: more bond buying action, and that does seem a little

673
00:38:04,360 --> 00:38:06,160
Speaker 1: more likely than it was a couple of days ago.

674
00:38:06,680 --> 00:38:09,399
Speaker 1: But a little waiting time for the markets to get

675
00:38:09,560 --> 00:38:13,640
Speaker 1: any kind of positive catalyst for now, more volatility ahead.

676
00:38:13,719 --> 00:38:16,880
Speaker 1: It sounds like assetes who act. Flowbank Chief Investment Officer,

677
00:38:17,200 --> 00:38:20,240
Speaker 1: Thanks for very much for being with us this morning, Nathan.

678
00:38:20,440 --> 00:38:22,800
Speaker 1: All right, John, thank you. It's five fifty three on

679
00:38:22,840 --> 00:38:25,399
Speaker 1: Wall Street. Time for our Bloomberg Law Report. Let's get

680
00:38:25,440 --> 00:38:28,200
Speaker 1: to the legal stories we're watching this morning. Here's Bloomberg's

681
00:38:28,239 --> 00:38:34,439
Speaker 1: Jeff Palinger. The Director of the Food and Drug Administration,

682
00:38:34,520 --> 00:38:38,400
Speaker 1: says the agency's biologic Center will provide more consistent and

683
00:38:38,600 --> 00:38:42,600
Speaker 1: coordinated advice to sell and gene therapy companies. The nation's

684
00:38:42,640 --> 00:38:46,640
Speaker 1: smallest state has the biggest renewable power ambitions. Rhode Island

685
00:38:46,719 --> 00:38:50,719
Speaker 1: lawmakers advanced to build that would require one pent renewable

686
00:38:50,840 --> 00:38:55,200
Speaker 1: energy by three A Jewish congregation file to complain, charging

687
00:38:55,280 --> 00:38:58,479
Speaker 1: that a new Florida law banning abortions after fifteen weeks

688
00:38:58,560 --> 00:39:01,800
Speaker 1: of pregnancy would buy elate the right to religious freedom.

689
00:39:02,040 --> 00:39:06,880
Speaker 1: Bloomberg Law everything you need, all on one legal research platform,

690
00:39:07,080 --> 00:39:11,680
Speaker 1: including guidance analysis and Bloomberg Market Intelligence. Find out more

691
00:39:11,760 --> 00:39:15,719
Speaker 1: at Bloomberg Law dot com. Now to another legal story

692
00:39:15,760 --> 00:39:18,840
Speaker 1: we're watching with twenty four cases outstanding before the end

693
00:39:18,880 --> 00:39:22,240
Speaker 1: of its term. The Supreme Court announces more decisions today.

694
00:39:22,600 --> 00:39:25,320
Speaker 1: On Monday, the Justice is handed down two decisions against

695
00:39:25,400 --> 00:39:28,120
Speaker 1: immigrants who are detained and seek bond hearings. All their

696
00:39:28,160 --> 00:39:31,440
Speaker 1: cases are pending. One case was unanimous, the other was

697
00:39:31,520 --> 00:39:35,120
Speaker 1: a six to three vote down. Ideological lines for more.

698
00:39:35,280 --> 00:39:39,160
Speaker 1: Bloomberg's June Grosso speaks to immigration law expert Leon Fresco,

699
00:39:39,320 --> 00:39:42,040
Speaker 1: partner at Holland and Night, was this a one to

700
00:39:42,320 --> 00:39:48,359
Speaker 1: punch for immigrants and immigration activists by the Court on Monday? Absolutely,

701
00:39:48,520 --> 00:39:52,520
Speaker 1: Jude was definitely a very difficult day from the standpoint

702
00:39:52,640 --> 00:39:55,920
Speaker 1: that the immigration law. I would say, if you were

703
00:39:56,000 --> 00:39:58,680
Speaker 1: looking at it during the period of somewhere between two

704
00:39:58,760 --> 00:40:02,080
Speaker 1: thousand and nine and two thousand and fifteen two thousand

705
00:40:02,160 --> 00:40:05,320
Speaker 1: and sixteen, both of these cases would have been decided

706
00:40:05,440 --> 00:40:08,680
Speaker 1: completely the other way. And now the Supreme Court has

707
00:40:08,840 --> 00:40:12,480
Speaker 1: changed and the ethos has changed, and now you not

708
00:40:12,640 --> 00:40:15,480
Speaker 1: only have these five four decisions, but you actually have

709
00:40:15,640 --> 00:40:19,919
Speaker 1: decisions with liberal justice assigning onto them that are sort

710
00:40:19,960 --> 00:40:23,840
Speaker 1: of cracking down on immigration lawsuits. And from that standpoint,

711
00:40:23,880 --> 00:40:27,280
Speaker 1: it's a whole new, completely different world. In one case,

712
00:40:27,680 --> 00:40:32,160
Speaker 1: Justice wrote the majority opinion in the other she dissented.

713
00:40:32,480 --> 00:40:35,280
Speaker 1: It's unusual for her to be writing in a majority

714
00:40:35,320 --> 00:40:39,120
Speaker 1: opinion in an immigration case. Well, it's certainly unusual in

715
00:40:39,239 --> 00:40:42,279
Speaker 1: this court, and it's certainly unusual in a case where

716
00:40:42,320 --> 00:40:46,799
Speaker 1: it's restricting rights of down citizens who want to file lawsuits.

717
00:40:47,360 --> 00:40:49,719
Speaker 1: If you would have had some sort of wager in

718
00:40:49,760 --> 00:40:52,960
Speaker 1: a casino to three years ago, that justice sort of

719
00:40:53,000 --> 00:40:56,880
Speaker 1: mayor would have written a decision making it more difficult

720
00:40:56,960 --> 00:40:59,640
Speaker 1: for non citizens to have a right to be released

721
00:40:59,640 --> 00:41:02,800
Speaker 1: from the tension. That would have been like seven to

722
00:41:02,880 --> 00:41:05,920
Speaker 1: one odds. And now you have such a decision. And

723
00:41:06,200 --> 00:41:09,000
Speaker 1: so really this was a tough day for the advocates

724
00:41:09,040 --> 00:41:12,520
Speaker 1: of the immigration world. So why because we hear her

725
00:41:12,640 --> 00:41:17,400
Speaker 1: voice in the second case where she's an advocate for immigrants.

726
00:41:17,880 --> 00:41:20,600
Speaker 1: So what happened with the first case? I think what's

727
00:41:20,680 --> 00:41:25,040
Speaker 1: happening real large is there some desire to try to

728
00:41:25,120 --> 00:41:28,920
Speaker 1: build some collegiality and to try to perhaps not have

729
00:41:29,120 --> 00:41:32,279
Speaker 1: five four decisions everywhere. And so you might see some

730
00:41:32,360 --> 00:41:35,320
Speaker 1: of the liberal justices saying, look, I'm gonna go along

731
00:41:35,440 --> 00:41:38,239
Speaker 1: in a case like this, whereby if you're gonna go

732
00:41:38,320 --> 00:41:40,759
Speaker 1: along on a case where I need you maybe we

733
00:41:40,840 --> 00:41:44,279
Speaker 1: can start to build some currency here. And I do

734
00:41:44,480 --> 00:41:47,279
Speaker 1: think that's the intent, because otherwise I don't think you

735
00:41:47,320 --> 00:41:50,799
Speaker 1: would have seen this decision, because the path of where

736
00:41:50,880 --> 00:41:59,320
Speaker 1: these decisions were going were in giving expansive rights to

737
00:41:59,440 --> 00:42:04,160
Speaker 1: non sit than the bomb hearing Mets Leon Fresco, partner

738
00:42:04,200 --> 00:42:07,399
Speaker 1: in Holland and Knights, speaking with Bloomberg's June Grosso. Catch

739
00:42:07,480 --> 00:42:10,040
Speaker 1: more of that interview, plus analysis of the latest legal

740
00:42:10,120 --> 00:42:13,040
Speaker 1: news by listening to the Bloomberg Law Show ten pm

741
00:42:13,120 --> 00:42:16,680
Speaker 1: Eastern Time or subscribing to the Bloomberg Law Podcast, and

742
00:42:16,800 --> 00:42:20,400
Speaker 1: attorneys can find exceptional legal research and business development tools

743
00:42:20,880 --> 00:42:25,520
Speaker 1: at Bloomberg Law dot com. SFP futures are seventeen points

744
00:42:25,600 --> 00:42:29,319
Speaker 1: higher ahead of the FEDS decision two pm Wall Street time,

745
00:42:29,840 --> 00:42:32,520
Speaker 1: DAL futures up a hundred seventeen Nasty futures hire by

746
00:42:32,560 --> 00:42:35,000
Speaker 1: sixty nine points. The tenure treasury is up twenty one

747
00:42:35,120 --> 00:42:37,840
Speaker 1: thirty seconds yield three point three nine percent. Yield on

748
00:42:37,920 --> 00:42:40,279
Speaker 1: the two year three point three two nime X crew

749
00:42:40,360 --> 00:42:42,480
Speaker 1: down one and a quarter percent at a hundred seventeen

750
00:42:42,520 --> 00:42:47,120
Speaker 1: dollars forty eight cents of barrel. Bloomberg Daybreak continues. This

751
00:42:48,000 --> 00:42:48,880
Speaker 1: is Bloomberg,