Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg
Speaker 1: day Break for Wednesday, June fifty two. Coming up this hour,
Speaker 1: the ECB holds an emergency meeting to discuss market conditions.
Speaker 1: The debate heats up on whether the Fed will hike
Speaker 1: fifty or seventy five basis points today. Sell off in
Speaker 1: crypto continues as bitcoin drops to twenty thousand and President
Speaker 1: Biden takes same at oil refiners record profits, gas bump
Speaker 1: prices in the New York metro area hit a fresh record,
Speaker 1: Plus a look at Trump backed candidates, the latest GOP primaries.
Speaker 1: I'm Michael blarn More ahead, I'm John Stashower and Swords shutout.
Speaker 1: Wins at home for both the Mets and Yankees, a
Speaker 1: near no hither in St. Louis the Stanley Cup. Parnel
Speaker 1: begins The Night That's Alls Traded ahead on Bloomberg Daybreak
Speaker 1: on Bloomberg eleven three on New York, Bloomberg one, Washington,
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine
Speaker 1: sixties and Francisco Syrius x M one nineteen and around
Speaker 1: the world Old on Bloomberg Radio dot Com and by
Speaker 1: the Bloombird Business APT and good morning. I'm John Tucker,
Speaker 1: I'm Nathan Hagar. Futures are on the rise as we
Speaker 1: wait to FED decision later today. It is coming up
Speaker 1: to five oh one on Wall Street. We checked the
Speaker 1: markets every fifteen minutes during the trading day. On Bloomberg.
Speaker 1: Right now, SMP futures are up twenty points. Now Future
Speaker 1: is up a hundred forty NASTACK futures are highered by
Speaker 1: seventy one point. The tenure treasury is up fourteen thirty seconds.
Speaker 1: The yield three point four one percent, yield on the
Speaker 1: two year three point three seven percent. NIMEX screwed down
Speaker 1: eight tenths percent at a hundred eighteen dollars six cents
Speaker 1: of arrol. John and Nathan we begin in Europe. We're
Speaker 1: in a few minutes from now. The European Central Banks
Speaker 1: Government Council holds an ad hoc meeting to quote discuss
Speaker 1: current market conditions. Let's get more now from Bloomberg Markets
Speaker 1: Live editor Lorcan roach Kelly. DCB meeting is more based
Speaker 1: on what happening markets at home to how i'm spreads
Speaker 1: of boidant, how it news have moved out and what
Speaker 1: the market WRO actual the last three or four days
Speaker 1: has been I'm not going to sure it's going to
Speaker 1: come with it. I think it's strange that these piece
Speaker 1: holding the meeting before the FED decision. Sure they don't
Speaker 1: know what the FED decisition is going to beat themselves,
Speaker 1: but the factor having to be in it all. Jerry
Speaker 1: Markets say that is at least somewhat positive for euro Asset.
Speaker 1: Bloomberg's Lorcan roach Kelly says the Italian bonds of surge down.
Speaker 1: The news of the unscheduled meeting sources the ECB officials
Speaker 1: may designed to reinvest bond purchases conducted under the bank's
Speaker 1: pandemic Emergency program. Other measures could be considered as well.
Speaker 1: That meant to get started in a few minutes, expected
Speaker 1: to last about two hours. All right, John, Well, That
Speaker 1: ECB B meeting comes, of course, ahead of today's highly
Speaker 1: anticipated decision from the Federal Reserve. The question there is
Speaker 1: how much j Pal and Company high grates. Michael McKee
Speaker 1: has more from our Bloomberg nine one newsroom in Washington.
Speaker 1: The new market consensus is the FED will raise the
Speaker 1: benchmark US lending rate by seventy five basis points. The
Speaker 1: biggest increase since nine. That raises the question of what
Speaker 1: next markets have Already in another seventy five basis point
Speaker 1: move in July, investors will look to the dot plot
Speaker 1: rate forecast and Chairman j Pal's news conference for a
Speaker 1: ratification of that bet. A new median forecast for unemployment
Speaker 1: of proxy for growth may suggest whether the central bankers
Speaker 1: still think they can bring down inflation without causing a recession.
Speaker 1: Michael McKee, Bloomberg Daybreak, All right, thanks Mike. Will it
Speaker 1: be seventy five basis points? Was summer calling for more
Speaker 1: erging Square founder Bill Ackman's is a hundred basis point
Speaker 1: hike would be better? The story from Bloomberg's Charlie Pellett,
Speaker 1: Ackman says not just today, but in July and thereafter.
Speaker 1: Instead of the seventy five basis point hyke that some
Speaker 1: economists are expecting, he said the central bank has allowed
Speaker 1: inflation to quote get out of control and calls for
Speaker 1: aggressive action that would help restore market confidence. Writing on Twitter,
Speaker 1: Ackman said, quote, the sooner the Federal Reserve can get
Speaker 1: to a terminal FF rate and thereafter can begin to ease,
Speaker 1: the sooner the markets and recover in New York, Charlie
Speaker 1: Bloomberg Daybreak, Well, Charlie Jeffrey gun Lacks taking an even
Speaker 1: more aggressive stance than Bill Ackman. The Double Line Capital
Speaker 1: CEO says the FED should raise its target interest right
Speaker 1: to three percent today. That would be a two hundred
Speaker 1: basis point hike. Markets are still firmly pricing in an
Speaker 1: increase of seventy five. Let's stay tuned for a complete
Speaker 1: coverage of this critical FED decision on a special edition
Speaker 1: of Bloomberg Surveillance that is coming up at one pm
Speaker 1: Wall Street time on Bloth Bloomberg Radio and Television. And
Speaker 1: ahead of that decision, we're gonna get the main reading
Speaker 1: on retail sales account's forecasting gain of just one tenth
Speaker 1: of a percent. As we mentioned, John Us futures are
Speaker 1: hired to start the day. Still, The SMP five hundred
Speaker 1: closed down yesterday for a fifth straight session for its
Speaker 1: longest slide since January. Mark Lazarie, CEO of Avenue Capital
Speaker 1: Management and co owner of the Milwaukee Bucks, says week
Speaker 1: economic sentiment continues to weigh on markets. Everybody knows we're
Speaker 1: either getting into a recession or is going to be
Speaker 1: close to a recession. So um, I don't think there's
Speaker 1: a lot more negative news that's going to come out.
Speaker 1: You know, the question really is going to be how
Speaker 1: long is the recession? Is it three months? Is it
Speaker 1: six months? Is it a year? Avenue Capital CEO Mark
Speaker 1: Lazie says he thinks the upcoming recession will be short. Well,
Speaker 1: perhaps no sector has suffered him the sell off as
Speaker 1: much as cryptocurrencies. At Bitcoin lower again this morning, it
Speaker 1: approaches the twenty thousand level. Right now, it is trading
Speaker 1: down seven percent at twenty seven dollars per token. Let's
Speaker 1: get the latest line from Bloomberg's Really the Young Good morning,
Speaker 1: Good morning John. Cryptal currencies have become emblematic of a
Speaker 1: flight from speculative assets. Strategists that Glass notes say the
Speaker 1: bear market for bitcoin has entered its deepest and darkest phase.
Speaker 1: Crypto lenders Celsius froze withdrawals on Monday, coin Based announced
Speaker 1: widespread layoffs on Tuesday. And all of this comes just
Speaker 1: a month after the collapse of the terror USD stable coin.
Speaker 1: Royal markets means I'm Bill Gates is dismissing crypto projects
Speaker 1: like n f t S as shamps, saying there quote
Speaker 1: based on the greater fool theory. He spoke at a
Speaker 1: climate conference yesterday and says he's neither long north short.
Speaker 1: The asset class Live in New York, I'm reneed a
Speaker 1: young Bloomberg day break. Now we need a thank you.
Speaker 1: Olst Crypto falls. Oil remains sky high. Pain at the
Speaker 1: pump is palpable, and President Biden's looking to ease the
Speaker 1: strain for drivers. We're learning the Energy Department plans to
Speaker 1: sell up to forty five million barrels from the Strategic Reserve.
Speaker 1: Amy Morris has more from our Bloomberg newsroom. In Washington,
Speaker 1: President Biden told oil refiners that unprecedented profit margins are unacceptable.
Speaker 1: He's calling for immediate action to improve capacity. He's ordered
Speaker 1: Energy Secretary Jennifer Grenhelm to hold an emergency meeting on
Speaker 1: the subject in the coming days, and the administration will
Speaker 1: hold talks with the National Petroleum Council. And he's calling
Speaker 1: on companies to explain why they've cut capacity. More than
Speaker 1: a million barrels a day of US oil refining capacity,
Speaker 1: about five of the total, has been shut since the
Speaker 1: start of the pandemic. In Washington. I'm any Morris, Bloomberg daybreak.
Speaker 1: All right, thanks savannam X crewde right now down barrel
Speaker 1: at one seventeen six down futures up one, SMP futures
Speaker 1: of eighteen nasdack futures of sixty two. This is daybreak
Speaker 1: has five. I was setting on Wall Street time to
Speaker 1: bring in Michael barn with mora hog. What else is
Speaker 1: going on in New York? Hand around the world, John,
Speaker 1: Thank you very much, Sarah. US Representative Tom Rice of
Speaker 1: South Carolina has been anounced it from Congress and his
Speaker 1: Republican primary after voting to impeach Donald Trump over the
Speaker 1: January sixth. Then direction Rice, who only got was defeated
Speaker 1: Tuesday by Trump backed state Congressman Russell Fry, who received fifty. Meanwhile,
Speaker 1: Representative Nancy Mace cleared the threshold to avoid a runoff
Speaker 1: against Trump. Back to Katie Errington, New York City Mayor
Speaker 1: Eric Adams is going to endorse Governor Kathy Hocle in
Speaker 1: the New York governor's race. Hocal's campaign and adams political
Speaker 1: adviser confirmed that Adams will make the announcement today in
Speaker 1: a joint appearance with the Democratic governor in New York City.
Speaker 1: Adams endorsement comes as Hocal has pledged tougher action on
Speaker 1: gun crimes, including after the mass shooting in her hometown
Speaker 1: of Buffalo. Meanwhile, a month after the shooting at the
Speaker 1: Top supermarket store, survivors, their families and others gathered at
Speaker 1: the scene to mark the somber event. Buffalo Mayor Byron
Speaker 1: Brown words will never convey the heartbreak and pain this
Speaker 1: senseless tragedy has caused. Mayor Brown says the shootings left
Speaker 1: ten people dead and three injured. Police in Suffolk County
Speaker 1: say at least fourteen children were injured when an inflatable
Speaker 1: slide tipped over at a Long Island park. Some of
Speaker 1: the six and seven year olds were taken to the hospital,
Speaker 1: one with a broken leg. This seven year old was there,
Speaker 1: there's too much people house, yeah, and then so over
Speaker 1: in the hospital. A statement from the Blond Dutch School
Speaker 1: District says that the slide deflated while the kids were
Speaker 1: on it. Two police officers in el Monte, California, died
Speaker 1: in the line of duty. Athorities say the two men
Speaker 1: were responding to a possible stabbing at a hotel and
Speaker 1: were fired upon by the suspect. El Monte Mayor Jessica Kna.
Speaker 1: These men were dedicated to their careers and even more
Speaker 1: so as son's husbands and fathers. Please keep their families
Speaker 1: in your prayers, mayor and kind of says the suspect
Speaker 1: was also killed. Pump prices in the New York metro
Speaker 1: area had a fresh record. According to Triple A. Gas
Speaker 1: prices rose to a record five one a gallon overnight
Speaker 1: for the area and five fifty for Manhattan Global News
Speaker 1: twenty four hours a day on air and on Bloomberg
Speaker 1: quick Take, powered by more than journalists and analyists more
Speaker 1: than a hundred twenty countries. Michael barn This is bloom John, Michael,
Speaker 1: thank you now five sent on Wall Street Camp. That's
Speaker 1: time with the Booberg Sports up to Mary Morny. John
Speaker 1: Yankees and Matt's two best records in baseball Boat were
Speaker 1: at home. Both won, both with shutouts and le Bronx.
Speaker 1: Garrett Cole's outing whole lot better than one last week
Speaker 1: in Minnesota when he allowed home runs but his first
Speaker 1: three batters and gave up five overall. Cole worked out
Speaker 1: of the basis load of jam sixth inning that ended
Speaker 1: his night. It preserved the shut out. The Yanks top
Speaker 1: Tampa Bay to nothing. It's cold, got to six and one.
Speaker 1: Clay Holmes got the safe. He's been unbelievable twenty seven
Speaker 1: straight appearances. Not allowing to run at City Field was
Speaker 1: Chris Bassett. Eight scoreless. Indians gave up just three hits.
Speaker 1: The four nothing Mets win over Milwaukee two runs driven
Speaker 1: in by Pete Alonzo leads to nashvill League fifty nine
Speaker 1: the Guys. In St. Louis, the Cardinals, Miles Nicholas had
Speaker 1: a no witner with two outs, two strikes ninth inning.
Speaker 1: A double by the Pirates cal Mitchell on Nicholas is
Speaker 1: a hundred and twenty ninth pitch, most thrown in the
Speaker 1: Major's season. They dropped the clock on the Stanley Cup
Speaker 1: final tonight and in Denver Tampa Bay lightning off the
Speaker 1: win over the Rangers and sinking a Stanley kept three.
Speaker 1: Pete playing Game one with Colorado, who's twelve and two
Speaker 1: in the playoffs. Bruce Cassidy fired by the Bruins. He's
Speaker 1: now the new coach of the Vegas Golden Knights to
Speaker 1: Shaun Watson, formerly with Houston. Now he's got a massive
Speaker 1: contract a quarterback to Cleveland Browns is also facing twenty
Speaker 1: four accusations of sexual misconduct. Watson met the media in Cleveland.
Speaker 1: I've been honest and I've been truthful about my stance. Um,
Speaker 1: and that's you know. I've never forced anyone, I never
Speaker 1: assaulted anyone. So um, that's what you know. I've been
Speaker 1: saying it from the beginning and I'm going to continue
Speaker 1: to do that and until all the facts come out
Speaker 1: on the legal side. NFL has been investigating the matter.
Speaker 1: John Stashatward Bloomberg Sports, All right, thanks John, and uh
Speaker 1: the meeting today friendly fell to Reserve futures are green
Speaker 1: Bell futures up one eleven points, SMP futures of seventeen
Speaker 1: and the Nsday futures of sixty twos. You're listening to
Speaker 1: Bloomberg Debris and debray being brought to about the New
Speaker 1: York Community Trust. Your name will live on as a
Speaker 1: champion of the causes you care about for years to
Speaker 1: come through a charitable big quest to the New York
Speaker 1: Community Trust. Learn more at Philanthropist dot n y C
Speaker 1: markets headlines and breaking news twenty four hours a day
Speaker 1: at Bloomberg dot com, the Bloomberg Business App, and at
Speaker 1: Bloomberg Quick take this he's a Bloomberg business flash. I'm
Speaker 1: Nathan Hagar. Futures are on the rise ahead of a
Speaker 1: crucial federal reserve policy decision this afternoon. Markets are pricing
Speaker 1: in the biggest rate hike from the US Central Bank
Speaker 1: since nine We checked the markets every fifteen minutes during
Speaker 1: the trading day on Bloomberg SMP futures right now up
Speaker 1: nineteen points down, futures up a hundred thirty one, Nasdaq
Speaker 1: futures up sixty seven points. The Dacks in Germany is
Speaker 1: up one point one percent to Hack and Harris higher
Speaker 1: by nine tenths percent. The foot See one hundred in
Speaker 1: London is up nine tenths percent as well. The Tenure
Speaker 1: Treasury is up eighteen thirty seconds, yield three point four
Speaker 1: zero percent on the tenure note, yield on the two
Speaker 1: year three point three four percent. Nim X scrude is
Speaker 1: down one point one percent, down a dollar twenty five
Speaker 1: at a hundred seventeen dollar. Sixty eight cents of barrol
Speaker 1: comex gold up six tenths per cent, or eleven dollars
Speaker 1: twenty cents at eighteen seventy announced. The euro one point
Speaker 1: zero four eight seven against the dollar. The pound of
Speaker 1: one point two zero nine three. The end is at
Speaker 1: one thirty four point four eight. That's a Bloomberg Business flash.
Speaker 1: And now here's Michael Barr with more on what's going
Speaker 1: on around the world. Good morning, Michael, Good morning. Nathan.
Speaker 1: US Representative Tom Rice of South Carolina has been announced
Speaker 1: it from Congress in his Republican primary after voting to
Speaker 1: impeach Donald Trump over the January sixth insurrection. The five
Speaker 1: term congressman was defeated Tuesday by state Representative Russell Fry,
Speaker 1: who was endorsed by Trump for I received fifty one percent,
Speaker 1: well Rice got twenty percent. Brittney Griner's detention in Russia
Speaker 1: was extended until July. In according to task, the w
Speaker 1: NBA players being held on charges the drug smuggling in baseball,
Speaker 1: the Yankees and Mets one. The Red Sox beat the
Speaker 1: A six one, The Orioles and Giants were winners. The
Speaker 1: Nationals lost. Global News twenty four hours a day on
Speaker 1: air and on Bloomberg Quicktake, powered by more than twenty
Speaker 1: seven hundred journalists and analysts more than a hundred twenty countries.
Speaker 1: Michael Barn this is Bloomberg. John Michael, thank you. Coming
Speaker 1: up to twenty on Wall Street. We're live from the
Speaker 1: Bloomberg INTERRNTO Broker Studios. This is Bloomberg Daybreak. There is
Speaker 1: a critical federal reserve policy decision later today with markets
Speaker 1: pricing in the biggest rate hikes since and this morning
Speaker 1: we have an emergency meeting by the European Central Bank
Speaker 1: in Europe. Let's take a deeper time this morning with
Speaker 1: Jennifer Leeves, senior accountists at BEMO Capital Markets. Jenner, if
Speaker 1: I could, let's start with the ECB. They're actually um
Speaker 1: achieving what I thought was the impossible. They're making federal
Speaker 1: reserve policy actually looks simple. Is there sense of panic
Speaker 1: in Europe? I think there's a sense of concern. Good morning.
Speaker 1: By the way, UM, it's kind of interesting that they
Speaker 1: that they are meeting, and obviously they're concerned about bond
Speaker 1: yields surging in in in various countries across the Europe,
Speaker 1: the European area, and the fact that last week when
Speaker 1: they met, you know, there is no discussion apparently about
Speaker 1: fragmentation UM during the during the official press press conference,
Speaker 1: but afterwards the resources that came out that said that
Speaker 1: a large majority of the policymakers were against making an
Speaker 1: announcement on fragmentation. But obviously the way the markets have
Speaker 1: been having UM of late is causing them to think
Speaker 1: twice about it again, and that's why they're probably meeting
Speaker 1: their original strategy. It sounds like it is in all
Speaker 1: sorts of trouble today a little bit, a little bit,
Speaker 1: but you know, there's like everyone has the one goal
Speaker 1: right now, which is to you know, tackle the UM,
Speaker 1: the big bag monster of inflation right now. But obviously
Speaker 1: it has ramifications across across countries and across the asset
Speaker 1: classes for the ethel m C the expectation basis points
Speaker 1: well policy makers deliver here. Wow, that is a very
Speaker 1: very tough question. It's it was very interesting. It's it's
Speaker 1: almost like, in my humble opinion, how can you that
Speaker 1: very now the market is fully paced in for a
Speaker 1: semified basis point hike, how can they not follow through?
Speaker 1: I think they've almost backed themselves into a corner. And
Speaker 1: if they don't follow through, they could be seen as weak. UM.
Speaker 1: If they do follow through, or even maybe even with
Speaker 1: a larger one, you know, that would cause you know,
Speaker 1: probably a big reaction of financial markets. But at least
Speaker 1: it shows that they are sort of attacking this with
Speaker 1: you know, with with everybody on board right now, um
Speaker 1: being a lot more aggressive as opposed to do the
Speaker 1: fifty basis points and just sound more aggressive um. You know,
Speaker 1: incoming meetings. I think it's either way. We are still
Speaker 1: expecting fifty basis points, but obviously clearly there is a
Speaker 1: huge risk of a much bigger, bigger move. Do we
Speaker 1: get some clarity on what the terminal rate there is
Speaker 1: going to be today's meeting they will hopefully give some
Speaker 1: clarity on a lot of different areas um UM. I
Speaker 1: think in terms of the neutral rate, it probably you know,
Speaker 1: I think they're probably going to be um keeping at
Speaker 1: the upper range um and they're going to probably continue
Speaker 1: to say that we are going to lift rates until
Speaker 1: even beyond the neutral rate, and if necessary, will keep
Speaker 1: it there until you know, we start seeing inflation buckle
Speaker 1: a little bit. Um. But hopefully we'll get a lot
Speaker 1: more clarity on what they're hoping, what they're looking to see,
Speaker 1: and what they're looking to do in coming months. What
Speaker 1: are the drivers of inflation right now? Are they especially
Speaker 1: affected by rates? When you look at things like energy
Speaker 1: and food prices for starters, so right now, OK, at
Speaker 1: the beginning, it was more of an energy story and
Speaker 1: that's something that Montre policy is not is unable to
Speaker 1: to to deal with. But as like you know, if
Speaker 1: a picture power has said many times, UM monetary policy
Speaker 1: is a very blunt instrument and it can be used
Speaker 1: to hurt or to hit UM demand. But the supply side,
Speaker 1: that's something that they can't cannot impact. But at least
Speaker 1: they're gonna be able to impact one of the two
Speaker 1: factors that are pushing UM inflation higher, and that's on
Speaker 1: the demand side. What do you and markets need to
Speaker 1: hear from the chairman at the press conference today? I
Speaker 1: would like to hear him, you know what, I think
Speaker 1: he's been been fairly clear. His communication has been has
Speaker 1: been very has been actually very good of late UM,
Speaker 1: and he's always been saying that, you know what, they
Speaker 1: need to see inflation coming down. It can't be just
Speaker 1: a few months. It's got to be a consistent move
Speaker 1: downward before they will consider pausing. It would be very interesting,
Speaker 1: by the way, to see what he says about the
Speaker 1: market turmoil, whether or not that's going to impact their
Speaker 1: decision and UM you know, seeing you know, salt markets
Speaker 1: plunge the way they have, whether or not that's going
Speaker 1: to make them potentially hold back a little bit. What's
Speaker 1: your impression of whether or not there's going to be
Speaker 1: a recession? If so, will be a deep one. Oh,
Speaker 1: very good questions that this morning. You know what, I
Speaker 1: think that there would the pot the risk continue to
Speaker 1: run ice obviously, and the longer that inflation stays high,
Speaker 1: the more aggressive the Fed continues to be. The chances
Speaker 1: of a recession in the next year are continuing to rise.
Speaker 1: Jen always a pleasure appreciate at Jennifer Lee, senior economist
Speaker 1: at Demo Capital Markets, with this this morning and ahead
Speaker 1: of that right decision at two o'clock today, we have
Speaker 1: a futures in the green this morning after this week's
Speaker 1: sell off. The down futures right now one eight points
Speaker 1: sire that's orians of about four tens of a percent.
Speaker 1: Smp emity futures they are up seventeen points, and the
Speaker 1: dance taking many futures right now they are up sixty points.
Speaker 1: And as we look to market volatility wall streets fear gage,
Speaker 1: the VIX is UH slightly deflated right now at thirty
Speaker 1: two fifty. The ten year yielding in the US three
Speaker 1: point four percent. That he is down six basis points.
Speaker 1: The two year yield right now at three point three
Speaker 1: four that is down seven basis points. You're less nay.
Speaker 1: The Bloomberg Daybreak an the Bloomberg Weather from bb rologist
Speaker 1: Rob Caroline Today, abundant sunshine, the heights aperture topic at
Speaker 1: about the eight degrees tonight, partly ploudy. There's the chance
Speaker 1: of a few showers after the midnight. The Most sixty
Speaker 1: five broadcasting live from the Bloomberg Interactive Broker's studio in
Speaker 1: New York, Bloomberg Living Freedland to Washington, d C. Bloomberg
Speaker 1: to Boston, Bloomberg one oh six one to San Francisco,
Speaker 1: Bloomberg nine six to the country, Sirius XM chand A
Speaker 1: one nineteen and around the globe, the Bloomberg Business app
Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Daybreak. He's
Speaker 1: five thirty on Blood Street. Good morning, I'm John Tucker
Speaker 1: and I'm Nathan Hagar. We're just about four hours away
Speaker 1: from the open of US trading. Let's get you up
Speaker 1: to date on the news you need to know at
Speaker 1: this hour. Right now, European Central Bank President Christine Lagarde
Speaker 1: and her colleagues on the Governing Council are holding an
Speaker 1: emergency meeting to discuss market conditions. We caught up with
Speaker 1: the Finance Minister Married McGinnis ahead of the meeting. The
Speaker 1: ECP is doing its job, so I think that's important.
Speaker 1: I'm not going to second yes, the conversations that will
Speaker 1: take place at this meeting, but clearly, since the beginning
Speaker 1: of this year, and particularly since the invasion, the illegal
Speaker 1: invasion by Russia of Ukraine, there is uncertainty in markets.
Speaker 1: The Youth Finance Commissioner, Married McGinnis says the meeting should
Speaker 1: last about two hours. The ECB gathering comes on the
Speaker 1: same day the Fed makes an interest rate decision. The
Speaker 1: question now is how much the federal hike. Let's get
Speaker 1: more from Bloomberg's thinning down Judais. Most economists anticipate another
Speaker 1: half point rate increase today, lifting the feds target range
Speaker 1: between one point two five percent and one point five percent,
Speaker 1: but some say they wouldn't be surprised if the Fed
Speaker 1: opts for something more, a larger move and expension mark
Speaker 1: interest rate. Bloomberg Economics says the FEDS dot plot, which
Speaker 1: traces the likely path of US interest rates, could move
Speaker 1: to three percent or a bit higher next year. Any
Speaker 1: dope Bloomberg day, All right, thanksny One economists predictive fifty
Speaker 1: basis point hike. Markets are now pricing in a seventy
Speaker 1: point increase now. Futures are higher ahead of the FED decision.
Speaker 1: But it's a different story for crypto currencies. Bitcoin is
Speaker 1: lower again this morning, right now, trading at about twenty
Speaker 1: two hundred dollars. Let's get the latest life from Bloomberg's
Speaker 1: or need a young Good morning, Greina, Good morning Nathan.
Speaker 1: Strategists at Glass Notes say the bear market for bitcoin
Speaker 1: has entered its deepest and darkest phase. Crypto lenders Celsius
Speaker 1: froze withdrawals on Monday. Coin Base announced widespread layoffs on Tuesday.
Speaker 1: And this all comes just a month after the collapse
Speaker 1: of the terror USD stable coin royal crypto markets. Meantime,
Speaker 1: Bill Gates is dismissing crypto projects like n f t
Speaker 1: S as shams, saying they're quote based on the greater
Speaker 1: fool theory. He says he's neither long nor short the
Speaker 1: asset class live in New York. I'm Nada Young Bloomberg
Speaker 1: day Break. Thanks for nat to the international energy agencies
Speaker 1: predicting global oil supplies will struggle to meet rising demand
Speaker 1: next year. That means consumers will continue to face tight
Speaker 1: fueld markets. Crude has climb more than fifty percent this year.
Speaker 1: Right now, not X crude is now the dollar thirty
Speaker 1: eight at one sevent and future is John are moving higher.
Speaker 1: We have SMP futures up twenty one point, Staff futures
Speaker 1: up forty four, Nasdaq futures higher by seventy four points.
Speaker 1: Straight ahead your latest local headlines in the check of sports.
Speaker 1: This is Bloomberg. Thanks Nathan. Five thirty three on Wall Street.
Speaker 1: Time to bring in Michael Barr with more on what
Speaker 1: else is going on in New York and around the world. John,
Speaker 1: thank you very much, Sarah. US Representative Tom Rice of
Speaker 1: South Carolina has been announced to from Congress and his
Speaker 1: Republican primary after voting to impeach Donald Trump over the
Speaker 1: January six insurrection. The five term congressman was defeated by
Speaker 1: Trump back state Representative Russell Fry. Fry received ble Rice
Speaker 1: got Meanwhile, Representative Nancy Mace Clear at the fifty threshold
Speaker 1: to avoid a runoff against Trump backed Katie Arrington. New
Speaker 1: York Governor Kathy Hokel is about to get a big
Speaker 1: endorsement today and the governor's race. Fellow Democrat New York
Speaker 1: City Mayor Eric Adams is set to make the announcement
Speaker 1: to endorse SOCOL. In a joint news conference to police
Speaker 1: officers in El Monte, California, died after responding to a
Speaker 1: possible stabbing in a hotel. L Monty Interim police Chief
Speaker 1: Ben Lowry says the officers were fired upon by the suspect.
Speaker 1: These heroes paid the ultimate sacrifice today. They were murdered
Speaker 1: by a coward and we are grieving and it hurts.
Speaker 1: Chief Laurie says the suspect was also killed. The Senate
Speaker 1: may have found the formulat to get Republicans on board
Speaker 1: with a gun safety bill, Bloomberg's said. Baxter reports Minority
Speaker 1: Leader Mitch McConnell is making noises that make it sound
Speaker 1: like he will support it. Just people who own God,
Speaker 1: and support for the provisions of the framework is off
Speaker 1: the charts overwhelming, He says. It's wording. I think if
Speaker 1: this framework becomes the actual piece of legislation. It's a
Speaker 1: step forward, step forward on a bipartisan basis, and majority
Speaker 1: of Leader Chuck Schumer says it will be brought to
Speaker 1: the floor quickly. In San Francisco, I'm at Baxter Bloomberg
Speaker 1: Gay Break. The pain at the gas pump continues for
Speaker 1: the New York metro area. According to Triple A, prices
Speaker 1: rose to a record five one overnight and five fifty
Speaker 1: in Manhattan. Global News twenty four hours a day on
Speaker 1: air and on Bloomberg Quick Take, powered by more than
Speaker 1: journalists analysts more than a hundred twenty countries. I'm Michael Barr,
Speaker 1: and this is Bloomberg, John, Michael, thank you. It's not
Speaker 1: five three o'clock Wall Street. That's time for the Bloomberg
Speaker 1: Sports Update. And here's John Stash. Thanks John. Yankees have
Speaker 1: watched the low pay roll Sampa Bay Rays win the
Speaker 1: a L East each of the last two seasons. This year,
Speaker 1: Yanks ten games ahead first of six between the two
Speaker 1: teams over a ten day period at the stadium. I'll
Speaker 1: drop fly ball fourth inning and put two Yankees on
Speaker 1: Isaiah Kiner Fileffa at the plate line. Hard gluck THEO.
Speaker 1: There's a Santon runs third coming home, The throw is
Speaker 1: gonna be too high, goes back to the screen. Here
Speaker 1: comes another run home. The crow home is is not
Speaker 1: in dial w f an. Those are only two rounds.
Speaker 1: Yanks score twenty six in their last two games with
Speaker 1: the Cubs. They won this one to Nothing's Garrett Cole
Speaker 1: goes to six and onety team with three relievers on
Speaker 1: the shutout. Cole very much bouncing back from that nightmare
Speaker 1: start last week in Minnesota, where you give a five
Speaker 1: home runs. Tonight it's Nestor Cortez versus the Ray Shane McClanahan.
Speaker 1: Both have v r A s under two, and if
Speaker 1: the Yanks win tonight they will be thirty games over
Speaker 1: five hundred. Amazing. The Mets have been so good with
Speaker 1: maxers Are injured, Jacob de Graham still yet to pitch.
Speaker 1: De Graham has thrown four vullpen sessions, and shus Are
Speaker 1: will through a simulated game Thursday. Meanwhile, Chris Bassett dominant
Speaker 1: and the Mets for nothing to win at the City
Speaker 1: Field over Milwaukee. Bassett went eight and into that only
Speaker 1: three hits. Mets State five games ahead of Atlanta. The
Speaker 1: Braves thirteenth win in a row in Washington. They hit
Speaker 1: five home runs for the second straight game. A near
Speaker 1: no hitter in St. Louis, the Cardinals Miles Nicholas lost
Speaker 1: it with two outs of the night. They'll start the
Speaker 1: Stanley Cup Finals tonight Tampa Bay at Colorado. The lighting
Speaker 1: may get great in point back from injury, missed the
Speaker 1: last two series point thirty goals of the last three playoffs.
Speaker 1: Johns Dash Award was in Sports. John John It is
Speaker 1: five thirties seven on Wall Street time for the Tri
Speaker 1: State Business Report, and for that we're joined by Bloomberg's
Speaker 1: ed Quarry Consolidated. Edison says utility bills will jump twelve
Speaker 1: percent this summer. In New York City. Westchester County bills
Speaker 1: could source sixteen percent compared to last summer. Electricity rates
Speaker 1: have been surging across the US as gas and coal
Speaker 1: supplies are tight and temperatures rise. New York bankers are
Speaker 1: not rushing back to the office. In the downtown cluster
Speaker 1: that includes Wall Street, Pretta Mongery's sale of coffee and
Speaker 1: sandwiches are less than half of what they were before
Speaker 1: the pandemic began. Earlier this month, they fell to their
Speaker 1: lowest level since January. A coalition of homeowners, renters, and
Speaker 1: social justice organizations Tuesday objected to a decision by the
Speaker 1: New York City Council to raise property taxes nearly seven percent.
Speaker 1: Council members voted Monday to adopt that tax increase, but
Speaker 1: also approved a ninety million dollar property tax rebate for
Speaker 1: working in middle class homeowners. That your Bloomberg Try State
Speaker 1: Business Report. I'm Ed Corey, all right, thanks At five
Speaker 1: thirty eight on Wall Street. Bloomberg Radio is on the
Speaker 1: air from San Francisco to New York, London to Hong Kock. Yeah.
Speaker 1: Let's check it now with the Global News team for
Speaker 1: some of the top stories hurt on our three hundred
Speaker 1: affiliate radio stations around the world. I'm Steve potascon ten
Speaker 1: ten Wins in New York. We're talking about how the
Speaker 1: price of luxury goods in New York are a relative
Speaker 1: bargain when compared to overall inflation rates. I'm Gina Servetti
Speaker 1: and for w BBM in Chicago, I'm reporting that Caterpillar
Speaker 1: is leaving Illinois after decades to move its company headquarters
Speaker 1: to Texas. And Lisa Mateo and on KYW in Philadelphia,
Speaker 1: I'll be reporting on more price hikes coming to a
Speaker 1: wireless carrier. I'm Carlin had compliment dab disial ratio. Here
Speaker 1: in London. We've been reporting on the emergency ECB meeting
Speaker 1: in Frankfurt as bontialed spike over inflation fits. I'm had
Speaker 1: Corey on w w J in Detroit. I'm reporting Ford
Speaker 1: has temporarily stopped deliveries of its Mustang make. And those
Speaker 1: are some of the stories are tred Bloomberg journalists and
Speaker 1: analysts are working on this morning around the world. It's
Speaker 1: five thirty nine on Wall Street. The following is an
Speaker 1: editorial from Bloomberg Opinion. The Pentagon has a supply chain problem.
Speaker 1: Consider this. In just a few months, the war in
Speaker 1: Ukraine has consumed a quarter of the country's Stinger anti
Speaker 1: aircraft missiles, but replacements might not be available until. It's
Speaker 1: a symptom of a larger problem. Pentagon report found that
Speaker 1: the US military is too often reliant on individual suppliers,
Speaker 1: a weakness that threatens its ability to respond to future crises.
Speaker 1: To prevent shortfalls, the Pentagon should work to attract more
Speaker 1: non traditional vendors, which would broaden its industrial base. It
Speaker 1: should also expand programs to identify promising military technology companies,
Speaker 1: and the U should work with allies that have spare
Speaker 1: manufacturing capacity to bolster collective stockpiles. If the Pentagon wants
Speaker 1: to support Ukraine and win future wars, rethinking how it
Speaker 1: acquires weapons will be key. This editorial was written by
Speaker 1: the Bloomberg Opinion Editorial Board. I'm David Chipley. For more
Speaker 1: Bloomberg Opinion, please go to Bloomberg dot com, slash Opinion
Speaker 1: or OPA go on the Bloomberg terminal. This has been
Speaker 1: Bloomberg Opinion and Bloomberg Opinion Editorial can be heard every
Speaker 1: weekday at this time. Terminal customers can read more at
Speaker 1: O P I n GO. European Central Bank emergency meeting
Speaker 1: is currently under way. The meantime, Italy's tenure yield currently
Speaker 1: trading below just four percent, still six sixty basis points
Speaker 1: above the predecision level. This is Bloomberg at ahead of
Speaker 1: the FED meeting this afternoon. Down futures right now up
Speaker 1: one and twenty three points. SMP futures they're up at
Speaker 1: eighteen and the nastak emnity futures are up sixties six.
Speaker 1: This is Bloomberg Markets headlines and breaking news twenty four
Speaker 1: hours a day at Bloomberg dot com, the Bloomberg Business
Speaker 1: at and at Bloomberg Quick Tape. This is a Bloomberg
Speaker 1: Business Flash. I'm Nathan Hagar. This slash is brought to
Speaker 1: you by Informatica. In the Cloud. Your data has the
Speaker 1: power to do the extraordinary avantage data across any location
Speaker 1: in the cloud for accurate and actionable insights. More at
Speaker 1: Informatica dot Com. Futures are gaining before a crucial FED
Speaker 1: policy decision this afternoon, with markets pricing in the biggest
Speaker 1: rate hikes since nineteen ninety four. We checked the markets
Speaker 1: every fifteen minutes during the trading day on Bloomberg. Right now,
Speaker 1: SMP futures are up. They are higher by twenty one point,
Speaker 1: STOW futures up a hundred forty nine, Nasdaq futures up
Speaker 1: seventy nine points. The tenure Treasury is up nineteen thirty seconds.
Speaker 1: The yield three point three nine percent yield on the
Speaker 1: two year three point three two percent. Nim X screwed
Speaker 1: is down one point one percent, down to dollar thirty
Speaker 1: four a hundred seventeen dollars fifty eight cents of barrel
Speaker 1: comics gold is up seven tenths percent, or twelve dollars
Speaker 1: forty cents. At eighteen twenty six, twenty announced the euro
Speaker 1: one point zero four eight two against the dollar. The
Speaker 1: en one thirty four point four four bitcoined right around
Speaker 1: twenty thousand, one hundred dollars. That's a Bloomberg business flash.
Speaker 1: And now here's Michael Barr with more on what's going
Speaker 1: on around the world. Michael, thank you very much. Nathan.
Speaker 1: In South Carolina, Congressman Tom Rice is out. The five
Speaker 1: term incumbent who voted to impeach Donald Trump for the
Speaker 1: January Day extens direction was defeated by Trump backed Russell Fry.
Speaker 1: Fry got Rice. The leaders of seven eight oh nations
Speaker 1: from across Europe pledge their continued support for Ukraine. They
Speaker 1: agreed to step up military supplies and provide more heavy
Speaker 1: weapons to the war torn country. In baseball, the Yankees
Speaker 1: and Mets one the Red Sox beat the A's, Orioles
Speaker 1: and Giants were also winners. The Nationals lost Global News
Speaker 1: twenty four hours a day on air and on Bloomberg
Speaker 1: quick Take, powered by more than journalist and analysts more
Speaker 1: than twenty countries. Michael barr and this is Bloomberg John
Speaker 1: Michael five forty nine on Wall Street. We are lying
Speaker 1: for the Bloomberg Interact. To broker studios, this is Bloomberg Daybreak. Well,
Speaker 1: monetary policy firmly. You have focused this morning uncertainty a
Speaker 1: bit elevated heading into the FED decision today and of
Speaker 1: course those are European Central Bank meeting taking place this morning.
Speaker 1: This is an emergency meeting. Let's break it all down
Speaker 1: for you this morning. We're joined by se Do actually
Speaker 1: Flow Bank chief Investment officer. If we could just head
Speaker 1: over to Europe for a moment, asked, is there a
Speaker 1: sense of panic as the policymakers in Europe hold in
Speaker 1: an emergency meeting this morning? Good morning. I wouldn't say panic.
Speaker 1: I think what we've heard from the e c B
Speaker 1: is that they didn't want to tell us or tell
Speaker 1: the markets too far in advance what tools they were
Speaker 1: going to use, because they thought it lost effectiveness. But
Speaker 1: what we're really seeing is a divergence of the needs
Speaker 1: of different countries. From the e c B, we have
Speaker 1: Northern Europe that needs higher rates, and we have Southern
Speaker 1: Europe and of course Italy as the biggest example the
Speaker 1: needs rates to stay low, and so the blowout in
Speaker 1: Italian spreads is threatening the financial stability of Europe. It's
Speaker 1: the last big election that we're going to have, probably
Speaker 1: next year, but after Germany and France, those are finished.
Speaker 1: Now Italy is in the spotlight, and so I think
Speaker 1: it's a way for the ECB to maint something of
Speaker 1: a hawkish tone in terms of rate heights and fighting
Speaker 1: inflation because they do have that two percent mandate. But
Speaker 1: at the same time that financial stability is important and
Speaker 1: they're gonna discuss tools, including reinvestment from the p PP
Speaker 1: or other to try to contain those spreads, especially in Italy. Yeah,
Speaker 1: the headlines are earlier is that the ECB would look
Speaker 1: at the p e P, the pandemic reinvestments that kind
Speaker 1: of underwhelmed season. Now that the bank intends to do
Speaker 1: more than that. The latest headline that's coming out of
Speaker 1: the ECB emergency meeting they'll discuss crisis strategy as well
Speaker 1: as reinvestments of the pandemic pandemic era UH investments. The
Speaker 1: Italian Banya is dropping back close to the lows of
Speaker 1: the day the wake of that report. Let's switch now,
Speaker 1: st if we could to the Federal Reserve, what is
Speaker 1: your expectation? Seventy five basis points seems to be the
Speaker 1: market bat right now. I think that's what we're gonna
Speaker 1: get it. I think if you if at this point
Speaker 1: the last three days, so much press has come out
Speaker 1: in that direction, it would actually underwhelm the market to
Speaker 1: get only fifty basis points UH, And you can feel
Speaker 1: that that may c p I. Even though the core
Speaker 1: did come down a little bit, that headline number really
Speaker 1: not coming down at all UH and worrying everyone from consumers.
Speaker 1: That University of Michigan survey with the one year expectation
Speaker 1: jumping as well, and that means the Fed has to act.
Speaker 1: They've said they want to front load the hikes, so
Speaker 1: they're going to do that even more so. And it
Speaker 1: means that maybe isn't off the table either for July,
Speaker 1: depending on how the next couple of weeks looks and
Speaker 1: how the pc comes out, can dive into stocks and
Speaker 1: risk assets. At this point, you know, the the main
Speaker 1: rebound was very nice, but we've been saying that there
Speaker 1: was always a bad headline that could come and that
Speaker 1: could stare scare the markets. Again. The CPI was obvious
Speaker 1: to the top of that list. Um, you have a
Speaker 1: market that or sentiment is already extremely fragile. There's the
Speaker 1: growth fears, and the recession fears are rising, and the
Speaker 1: fact that inflation isn't coming down as fast as anyone like,
Speaker 1: or coming down at all. That's that's another conversation. Means
Speaker 1: the Fed has to keep hiking aggressively, and that's exacerbating
Speaker 1: the fears about growth, about a recession risk in the
Speaker 1: U S which I don't think will happen this year,
Speaker 1: though slowing is already starting. And that combination just sort
Speaker 1: of gave the excuse to the markets that almost wanted
Speaker 1: the May bounce to be a bear market rally to retreat.
Speaker 1: So another couple of weeks under pressure, I'm not sure.
Speaker 1: I mean the Fed, the market is really looking to
Speaker 1: see where that terminal rate is going to be. Anything
Speaker 1: below four percent probably a positive at this point, given
Speaker 1: the market expectations and not that many catalysts to give
Speaker 1: a lot of good news. Uh, you know, maybe the
Speaker 1: ECB will see if that carries over elsewhere, if is
Speaker 1: more bond buying action, and that does seem a little
Speaker 1: more likely than it was a couple of days ago.
Speaker 1: But a little waiting time for the markets to get
Speaker 1: any kind of positive catalyst for now, more volatility ahead.
Speaker 1: It sounds like assetes who act. Flowbank Chief Investment Officer,
Speaker 1: Thanks for very much for being with us this morning, Nathan.
Speaker 1: All right, John, thank you. It's five fifty three on
Speaker 1: Wall Street. Time for our Bloomberg Law Report. Let's get
Speaker 1: to the legal stories we're watching this morning. Here's Bloomberg's
Speaker 1: Jeff Palinger. The Director of the Food and Drug Administration,
Speaker 1: says the agency's biologic Center will provide more consistent and
Speaker 1: coordinated advice to sell and gene therapy companies. The nation's
Speaker 1: smallest state has the biggest renewable power ambitions. Rhode Island
Speaker 1: lawmakers advanced to build that would require one pent renewable
Speaker 1: energy by three A Jewish congregation file to complain, charging
Speaker 1: that a new Florida law banning abortions after fifteen weeks
Speaker 1: of pregnancy would buy elate the right to religious freedom.
Speaker 1: Bloomberg Law everything you need, all on one legal research platform,
Speaker 1: including guidance analysis and Bloomberg Market Intelligence. Find out more
Speaker 1: at Bloomberg Law dot com. Now to another legal story
Speaker 1: we're watching with twenty four cases outstanding before the end
Speaker 1: of its term. The Supreme Court announces more decisions today.
Speaker 1: On Monday, the Justice is handed down two decisions against
Speaker 1: immigrants who are detained and seek bond hearings. All their
Speaker 1: cases are pending. One case was unanimous, the other was
Speaker 1: a six to three vote down. Ideological lines for more.
Speaker 1: Bloomberg's June Grosso speaks to immigration law expert Leon Fresco,
Speaker 1: partner at Holland and Night, was this a one to
Speaker 1: punch for immigrants and immigration activists by the Court on Monday? Absolutely,
Speaker 1: Jude was definitely a very difficult day from the standpoint
Speaker 1: that the immigration law. I would say, if you were
Speaker 1: looking at it during the period of somewhere between two
Speaker 1: thousand and nine and two thousand and fifteen two thousand
Speaker 1: and sixteen, both of these cases would have been decided
Speaker 1: completely the other way. And now the Supreme Court has
Speaker 1: changed and the ethos has changed, and now you not
Speaker 1: only have these five four decisions, but you actually have
Speaker 1: decisions with liberal justice assigning onto them that are sort
Speaker 1: of cracking down on immigration lawsuits. And from that standpoint,
Speaker 1: it's a whole new, completely different world. In one case,
Speaker 1: Justice wrote the majority opinion in the other she dissented.
Speaker 1: It's unusual for her to be writing in a majority
Speaker 1: opinion in an immigration case. Well, it's certainly unusual in
Speaker 1: this court, and it's certainly unusual in a case where
Speaker 1: it's restricting rights of down citizens who want to file lawsuits.
Speaker 1: If you would have had some sort of wager in
Speaker 1: a casino to three years ago, that justice sort of
Speaker 1: mayor would have written a decision making it more difficult
Speaker 1: for non citizens to have a right to be released
Speaker 1: from the tension. That would have been like seven to
Speaker 1: one odds. And now you have such a decision. And
Speaker 1: so really this was a tough day for the advocates
Speaker 1: of the immigration world. So why because we hear her
Speaker 1: voice in the second case where she's an advocate for immigrants.
Speaker 1: So what happened with the first case? I think what's
Speaker 1: happening real large is there some desire to try to
Speaker 1: build some collegiality and to try to perhaps not have
Speaker 1: five four decisions everywhere. And so you might see some
Speaker 1: of the liberal justices saying, look, I'm gonna go along
Speaker 1: in a case like this, whereby if you're gonna go
Speaker 1: along on a case where I need you maybe we
Speaker 1: can start to build some currency here. And I do
Speaker 1: think that's the intent, because otherwise I don't think you
Speaker 1: would have seen this decision, because the path of where
Speaker 1: these decisions were going were in giving expansive rights to
Speaker 1: non sit than the bomb hearing Mets Leon Fresco, partner
Speaker 1: in Holland and Knights, speaking with Bloomberg's June Grosso. Catch
Speaker 1: more of that interview, plus analysis of the latest legal
Speaker 1: news by listening to the Bloomberg Law Show ten pm
Speaker 1: Eastern Time or subscribing to the Bloomberg Law Podcast, and
Speaker 1: attorneys can find exceptional legal research and business development tools
Speaker 1: at Bloomberg Law dot com. SFP futures are seventeen points
Speaker 1: higher ahead of the FEDS decision two pm Wall Street time,
Speaker 1: DAL futures up a hundred seventeen Nasty futures hire by
Speaker 1: sixty nine points. The tenure treasury is up twenty one
Speaker 1: thirty seconds yield three point three nine percent. Yield on
Speaker 1: the two year three point three two nime X crew
Speaker 1: down one and a quarter percent at a hundred seventeen
Speaker 1: dollars forty eight cents of barrel. Bloomberg Daybreak continues. This
Speaker 1: is Bloomberg,