WEBVTT - Bloomberg Daybreak: April 21, 2022 - Hour 1 (Radio) 0:00:02.600 --> 0:00:05.840 Live from the Bloomberg Interact at Burgers Studios. Is Bloomberg 0:00:05.920 --> 0:00:10.440 day Break for Thursday April Coming up this hour. Russia 0:00:10.520 --> 0:00:13.600 claims a key victory as Ukrainian forces remain hold up 0:00:13.600 --> 0:00:16.400 in the port city of Mariopol. The Justice Department will 0:00:16.440 --> 0:00:19.520 appeal of federal judges ruling that lifted mask mandates on 0:00:19.640 --> 0:00:23.560 public transportation, and Tesla shares surge after the electric vehicle 0:00:23.600 --> 0:00:27.160 maker posts of record profit. Legalized pot sales begin today 0:00:27.200 --> 0:00:29.840 in New Jersey. Plus, the state of Florida clashes with 0:00:29.880 --> 0:00:33.360 its biggest tourist attraction, balt Disney World. I'm Michael barr 0:00:33.479 --> 0:00:36.040 More a half, I'm done stage and force the next 0:00:36.080 --> 0:00:38.280 bloo up. Big Ley lost Game two in Boston, the 0:00:38.360 --> 0:00:40.880 Yankees one in Detroit. The Mets lost for the Giants. 0:00:42.520 --> 0:00:46.280 That's all straight ahead on Bloomberg day Break on Bloomberg 0:00:46.360 --> 0:00:51.320 Eliven Frio, New York, Bloomberg one, Washington, d C, Bloomberg 0:00:51.320 --> 0:00:55.880 one or six one, Boston, Bloomberg nine sixties, San Francisco, Syrius, 0:00:55.920 --> 0:00:59.680 Hexam one nineteen and around the world on Bloomberg Radio 0:00:59.720 --> 0:01:07.759 dot Com and via the Bloomberg Business add And Good Morning. 0:01:07.760 --> 0:01:11.000 I'm Nathan Haggart and I'm Karen Moscow. US DOT Index 0:01:11.080 --> 0:01:14.400 futures on the rise this morning, led by technology shares. 0:01:14.480 --> 0:01:16.199 We are coming up to five o one on Wall Street. 0:01:16.240 --> 0:01:18.720 We checked the markets every fifteen minutes throughout the trading day. 0:01:19.080 --> 0:01:21.839 On Bloomberg. Right now, SNP Future is up thirty six 0:01:21.880 --> 0:01:24.120 points to own Future is up two hundred thirteen and 0:01:24.200 --> 0:01:29.040 NASDAK futures up one hundred sixties seven. And right now 0:01:29.040 --> 0:01:31.640 the ten year Treasury is down nine thirty seconds. They 0:01:31.680 --> 0:01:34.280 yield at two point eight six percent. They yield on 0:01:34.319 --> 0:01:37.680 the two year two point six one per cent, And 0:01:37.959 --> 0:01:40.720 NIMEX scrude oil is up one percent or a dollar 0:01:40.840 --> 0:01:43.679 three at a hundred three dollars twenty two cents of barrel. Nathan, 0:01:43.720 --> 0:01:45.560 all right, Karen, thanks, we'll have more on the markets 0:01:45.680 --> 0:01:48.280 just a minute. First, it may be a major development 0:01:48.320 --> 0:01:51.520 in the war in Ukraine. Russian President Vladimir Putin now 0:01:51.560 --> 0:01:55.000 says his forces have taken the key port city of Mariopol. 0:01:55.280 --> 0:01:57.160 Let's get the latest now from Amy Morris in our 0:01:57.160 --> 0:02:01.760 Bloomberg news room in Washington. Russia's defense minister says more 0:02:01.760 --> 0:02:05.000 than two thousand Ukrainian troops remain hold up in the city. 0:02:05.200 --> 0:02:08.080 Putin is calling on them to surrender. This as the 0:02:08.160 --> 0:02:11.560 US imposed fresh sanctions on Russia while preparing to send 0:02:11.560 --> 0:02:15.040 another eight hundred million dollars in weapons to Ukraine. Treasury 0:02:15.080 --> 0:02:17.840 Secretary Janet Yellen and others walked out of a group 0:02:17.840 --> 0:02:21.119 of twenty meeting as Russian officials began addressing the gathering. 0:02:21.360 --> 0:02:25.320 Russia meanwhile, test fired a new intercontinental ballistic missile, but 0:02:25.400 --> 0:02:28.320 Pentagon Press Secretary John Kirby says Russia told the US 0:02:28.400 --> 0:02:30.840 about that test ahead of time, and he doesn't consider 0:02:30.840 --> 0:02:34.160 it a threat. In Washington, I'm maybe Morris Bloomberg daybreak, 0:02:34.240 --> 0:02:36.280 all right, Amy, thank you about turning to the pandemic. Now. 0:02:36.320 --> 0:02:38.720 The Florida Chord ruling that put US stop to mask 0:02:38.800 --> 0:02:41.639 mandates in the air will be appealed, and Bloomberg said, 0:02:41.639 --> 0:02:44.919 Bachter has that story. The CDC has come out saying 0:02:44.960 --> 0:02:48.680 that current conditions warrant the mask mandate remain in place. 0:02:49.000 --> 0:02:52.240 The wording it is c DC's continuing assessment that at 0:02:52.280 --> 0:02:56.320 this time, in order requiring masking in the indoor transportation 0:02:56.400 --> 0:03:01.040 corridor remains necessary for the public health. C DC believes 0:03:01.120 --> 0:03:05.280 this is a lawful order well within CDC's legal authority 0:03:05.280 --> 0:03:08.840 to protect public health. Now, remember, the Biden administration has 0:03:08.880 --> 0:03:12.800 said that if the CDC made that determination, it would appeal. 0:03:13.080 --> 0:03:14.920 The d o J has said it is ready to 0:03:14.960 --> 0:03:18.360 move forward. In San Francisco, I'm at Baxter Bloomberg Daybreak, 0:03:18.400 --> 0:03:21.280 All right, ed? Thanks. In China, President Shi Jinping is 0:03:21.320 --> 0:03:25.440 defending his country's reliance on lockdowns to fight COVID despite 0:03:25.520 --> 0:03:29.160 mounting economic woes. We need to work together to defend 0:03:29.200 --> 0:03:33.840 people's lives and health. Safety and health all the perrequisite 0:03:34.040 --> 0:03:37.600 for human development and progress. Speaking through an interpreter, Chinese 0:03:37.600 --> 0:03:42.080 President Hijin Ping reaffirmed the underlying goal is to minimize deaths. Well. 0:03:42.120 --> 0:03:44.720 Turning to the markets now, Nathan shares a Tesla up 0:03:44.800 --> 0:03:48.560 seven percent early trading following a strong earnings report from 0:03:48.560 --> 0:03:51.400 Elon Musk's electric vehicle Giant, and we get the latest 0:03:51.440 --> 0:03:53.920 live from Bloomberg's Ready to Young, Good Morning, Ready to 0:03:54.000 --> 0:03:56.880 Good Morning Care and Tesla's reporting a record profit for 0:03:57.000 --> 0:04:00.000 Q one, boosted by strong demand for its electric fee 0:04:00.000 --> 0:04:03.840 equals and despite industry wide supply chain challenges for key 0:04:03.840 --> 0:04:08.520 components like semiconductors and higher prices. CEO Elon Musk says 0:04:08.520 --> 0:04:11.840 Twitter should be Tesla should be able to make up 0:04:12.080 --> 0:04:15.240 for any production shortfalls. He predicts the company is on 0:04:15.360 --> 0:04:18.480 track to expand production to more than one point five 0:04:18.560 --> 0:04:22.200 million vehicles this year. That's compared with about nine thirty 0:04:22.279 --> 0:04:25.800 six thousand deliveries last year. He said on a conference 0:04:25.800 --> 0:04:28.560 call yesterday, quote, we may pull a rabbit out of 0:04:28.560 --> 0:04:31.000 the head. Live in New York. I'm really need a 0:04:31.040 --> 0:04:32.840 young Bloomberg day breaking all right, We need to thank 0:04:32.880 --> 0:04:34.960 you right there next to Tesla in the pre market. 0:04:35.000 --> 0:04:38.160 Shares of United Airlines also up seven per cent, as 0:04:38.160 --> 0:04:41.440 Bloomberg's Charlie Pellett reports, the airline expects to be profitable 0:04:41.520 --> 0:04:45.840 this year. CEO Scott Kirby says the demand environment is 0:04:45.920 --> 0:04:48.960 the strongest it has been in his thirty years in 0:04:49.000 --> 0:04:53.040 the industry. United joins rival Delta and projecting a return 0:04:53.080 --> 0:04:57.400 to profitability even as the industry grapples with dramatically higher 0:04:57.400 --> 0:05:00.880 fuel costs. Carriers have been hopeful this year would mark 0:05:00.920 --> 0:05:05.040 a rebound from the pandemic slump before the rising expenses 0:05:05.279 --> 0:05:08.719 and a brief surge in the COVID nineteen omicron variant 0:05:08.920 --> 0:05:13.600 disrupted operations in recent months in New York. Charlie Bloombird 0:05:13.680 --> 0:05:15.760 day break. All right, Churley, thank you what we are seeing. 0:05:15.760 --> 0:05:18.400 The fallout continue this morning from the massive selloff and 0:05:18.520 --> 0:05:22.000 Netflix shares. Billionaire investor Bill Ackman lost more than four 0:05:22.040 --> 0:05:24.560 hundred thirty million dollars on a three month bet on 0:05:24.600 --> 0:05:28.560 a streaming company. Ackman's Perishing Square Capital Management sold its 0:05:28.560 --> 0:05:32.960 Netflix steak after the company reported an unexpected drop in customers. 0:05:32.960 --> 0:05:37.280 Shares plunged thirty five percent yesterday. Right now, shares are 0:05:37.320 --> 0:05:40.280 down about another one percent in early training. Okay, turning 0:05:40.320 --> 0:05:42.560 to the economy now, Karen J. Powell will have one 0:05:42.600 --> 0:05:45.120 of the final words on the Central banks policy outlook 0:05:45.120 --> 0:05:48.760 before the FED enters its traditional blackout period. Powell speaks 0:05:48.839 --> 0:05:52.080 later today before an International Monetary Fund panel. The fed's 0:05:52.120 --> 0:05:55.400 next policy decision comes on May fourth. Meanwhile, Nathan San 0:05:55.400 --> 0:05:58.200 Francisco FED President Mary Daly is speaking out in the 0:05:58.240 --> 0:06:01.200 future of interest rate. She says Central Bank should raise 0:06:01.360 --> 0:06:04.120 raised to neutral by the end of the year. Moving 0:06:04.160 --> 0:06:07.599 purposefully to a more neutral stance that does not stimulate 0:06:07.600 --> 0:06:10.640 the economy that is clearly demonstrated it can self sustain 0:06:11.240 --> 0:06:13.600 is a top priority. And this is where the question 0:06:13.600 --> 0:06:16.760 of timing comes in how quickly should we get there, 0:06:17.720 --> 0:06:20.080 so accounting for the risk of being too fast or 0:06:20.120 --> 0:06:23.800 too slow, I see an expeditious march to neutral by 0:06:23.839 --> 0:06:26.560 the end of the year as the prudent path and 0:06:26.600 --> 0:06:29.440 San Francisco FED President Mary Daily made the comments at 0:06:29.440 --> 0:06:32.640 an economic conference in Las Vegas. Well, despite the rise 0:06:32.640 --> 0:06:35.560 in inflation and interest rate hikes Karen. Bank of America 0:06:35.640 --> 0:06:39.000 CEO Brian moynihan says, the consumer is holding up well. 0:06:39.360 --> 0:06:41.560 They have more money to spend, and they aren't borrowing 0:06:41.560 --> 0:06:44.480 on alliance. The credit card bowsers still twenty billion of 0:06:44.800 --> 0:06:46.760 all that, says there's a lot of dry powder on 0:06:46.800 --> 0:06:49.560 the consumer side. So that's the tension. So that's the goodness. 0:06:49.600 --> 0:06:51.560 I don't know what they say and worry about, but 0:06:51.560 --> 0:06:53.400 I can tell you on a given day, they're spending 0:06:53.440 --> 0:06:56.520 money and engaging the economy. Bank of America's CEO Brian 0:06:56.600 --> 0:06:59.680 moynihan made those comments in an interview with Bloomberg's David Weston. 0:06:59.720 --> 0:07:01.839 You can hear more of that conversation. We haven't coming 0:07:01.920 --> 0:07:04.920 up for you in just about ten minutes. Right now, 0:07:05.160 --> 0:07:07.800 SMP futures are up thirty two points. Stouth features up 0:07:07.800 --> 0:07:10.040 a hundred eighty two. Nastack futures are higher by a 0:07:10.080 --> 0:07:12.760 hundred fifty two points and the tenure treasuries down nine 0:07:12.800 --> 0:07:15.400 thirty seconds, with a yield of two point eight six percent. 0:07:15.840 --> 0:07:19.200 Local headlines and a check of sports. Next, this is 0:07:19.240 --> 0:07:24.880 Bloomberg the South five oh seven on Wall Street where 0:07:24.880 --> 0:07:27.320 forty six degrees in Central Park, already dealing with an 0:07:27.360 --> 0:07:30.200 accident and overturned tractor trailer on the northbound New Jersey 0:07:30.200 --> 0:07:33.440 Turnpike bags at seven A. Details coming up in traffic. 0:07:33.480 --> 0:07:35.520 First Michael Barr with more on what's going on in 0:07:35.560 --> 0:07:37.760 New York and around the world. Good morning, Michael, Good 0:07:37.800 --> 0:07:41.600 morning Nathan. Today New Jersey begins selling legalized pot, but 0:07:41.760 --> 0:07:44.000 there will still be a minority of people for whom 0:07:44.080 --> 0:07:48.040 cannabis remains off limits the police, Jersey City Mayor Steve 0:07:48.080 --> 0:07:50.880 fullap these guys are carrying weapons and they need to 0:07:50.880 --> 0:07:53.080 be able to have a good judgment at all times 0:07:53.320 --> 0:07:55.320 in the community to feel comfortable with that. So we're 0:07:55.320 --> 0:07:56.880 gonna make the rules that are in the best interest 0:07:56.880 --> 0:07:59.640 of our community here, Jersey City Mayor Steve fullip As 0:07:59.680 --> 0:08:02.880 the a E c LU will start expunging hundreds of 0:08:02.920 --> 0:08:05.880 thousands of pot related records for people across the state. 0:08:06.360 --> 0:08:09.480 A decade's old relationship between Florida and one of the 0:08:09.520 --> 0:08:12.520 world's biggest companies is in danger of coming to an end. 0:08:12.920 --> 0:08:16.080 Governed around the Santist is asking the legislature to terminate 0:08:16.160 --> 0:08:19.040 a deal with the Walt Disney World. The Santists says 0:08:19.080 --> 0:08:21.720 the Walt Disney Company had no right to criticize what 0:08:21.800 --> 0:08:26.000 critics call Florida's don't Say Gay law. The Florida Senate 0:08:26.080 --> 0:08:28.400 has passed to build a repeal of law allowing Walt 0:08:28.400 --> 0:08:32.080 Disney World to operate as a private government over its 0:08:32.120 --> 0:08:34.880 properties in the state. A man, his dad, and a 0:08:34.920 --> 0:08:37.760 police officer critically injured in what police say was a 0:08:37.800 --> 0:08:41.720 gun investigation arrest gone bad just north of New York City. 0:08:41.880 --> 0:08:45.400 Authorities say three people police were following ducked into a 0:08:45.440 --> 0:08:49.679 small grocery store Yonkers, New York Police Commissioner John Mueller 0:08:50.000 --> 0:08:53.160 says the officers then went inside. One of the suspects 0:08:53.200 --> 0:08:57.640 attempted to push past one of our detectives, a Yonkers detective, 0:08:57.880 --> 0:09:01.760 and when our Yakers detectives sh him back, um it 0:09:01.800 --> 0:09:04.719 appears that he fired one shot at our detective. Y 0:09:04.720 --> 0:09:08.320 Ankers Comissioner. Mueller says the officer lost a tremendous amount 0:09:08.360 --> 0:09:11.240 of blood, but thankfully he is going to be okay. 0:09:11.360 --> 0:09:13.680 The alleged gunman was shot and killed by one of 0:09:13.720 --> 0:09:17.600 the other officers. French President Emmanuel mccron last night strongly 0:09:17.600 --> 0:09:21.360 attacked as far right election challenger Marine Lapin for her 0:09:21.400 --> 0:09:24.839 links to Russia. Through an interpreter, mccron claimed that by 0:09:24.960 --> 0:09:27.920 taking out a loan from a Russian bank, Lepin had 0:09:28.000 --> 0:09:31.760 made her self dependent on Russian power. Why did you 0:09:31.800 --> 0:09:35.319 do it? And I say this with great gravity tonight 0:09:36.000 --> 0:09:39.920 because for our country this is bad news, because you 0:09:39.960 --> 0:09:45.160 depend on the Russian power and you depend on Mr Putin. 0:09:45.280 --> 0:09:48.400 In the debate ahead of Sunday's election runoff, Lapin insists 0:09:48.400 --> 0:09:51.040 the French will be better off on purchasing power and 0:09:51.080 --> 0:09:54.400 security under her rule. Global News twenty four hours a 0:09:54.480 --> 0:09:57.520 day on air and on Bloomberg Quick Take, powered by 0:09:57.559 --> 0:10:00.240 more than twenty seven under journalists and analysts more than 0:10:00.240 --> 0:10:03.880 a twenty countries. Michael barn this is Bloomberg, Nathan, Thank you, Michael. 0:10:08.360 --> 0:10:10.040 Coming up to five ten on Wall Street time for 0:10:10.080 --> 0:10:13.200 the Bloomberg Sports up Take. Good Morty, John Morty Nathan. 0:10:13.200 --> 0:10:16.080 The Nets Game two in Boston able to build up 0:10:16.080 --> 0:10:18.480 a seventeen point lead, not because of their stars. They 0:10:18.480 --> 0:10:20.920 were led by the likes of Bruce Brown, gore On Dragic, 0:10:21.000 --> 0:10:23.559 and Seth Curry. When the Celtics caught up in the 0:10:23.600 --> 0:10:25.080 fourth quarter of the game was on the line, the 0:10:25.120 --> 0:10:27.800 Nets looked to their stars and they failed. On Kevin 0:10:27.840 --> 0:10:31.800 Burran shot four for seventeen. He's thirteen for forty one 0:10:31.800 --> 0:10:33.959 in the series. Kyrie Irving, who had a brilliant game one, 0:10:34.280 --> 0:10:37.480 shot four for thirteen. Together they were one for seventeen 0:10:37.520 --> 0:10:40.319 in the second half. Celtics one on fourteen, one oh 0:10:40.360 --> 0:10:43.160 seven lead the series to nothing. Here's Kyrie, just gotta 0:10:43.200 --> 0:10:46.440 be better moving forward, coming out of that that halftime 0:10:46.520 --> 0:10:49.160 and knowing that when we have the lead and against 0:10:49.320 --> 0:10:51.640 a good team or great team like Boston, we just 0:10:51.679 --> 0:10:54.760 gotta take advantage of its expected. Irving booed by Celtics 0:10:54.800 --> 0:10:57.120 fans every time he touched the ball. Game three Saturday 0:10:57.200 --> 0:10:59.840 night at the Barkley Center, Philadelphia won and overtime at Toronto, 0:11:00.360 --> 0:11:02.960 lead that series three noth in Chicago wanted Milwaukee to 0:11:02.960 --> 0:11:05.199 tie that series at one. Another cold night in Detroit, 0:11:05.520 --> 0:11:07.920 another Yankee win by two runs, this time five. The 0:11:08.040 --> 0:11:11.079 three home run for Anthony Rizzo his fourth. Isaiah kinder 0:11:11.200 --> 0:11:14.160 Felifa has come on since the slow star his RBI 0:11:14.280 --> 0:11:16.319 single seven. Then he gave the Yanks the lead back 0:11:16.400 --> 0:11:18.760 after the Tigers had tied at three hits for Detroit's 0:11:18.760 --> 0:11:21.760 Miguel Cabrera. He needs one more for three thousands in 0:11:21.800 --> 0:11:24.600 his career. City failed Giants a quick start three runs 0:11:24.600 --> 0:11:26.280 of the first Thing you Know, Chris Bassett. They went 0:11:26.320 --> 0:11:27.839 on to beat the Mets five to two. Both the 0:11:27.880 --> 0:11:30.880 Mets and Yankees have day games today. Surprising news from 0:11:30.880 --> 0:11:34.160 college basketball, Jay Wright, only sixty years old, but retiring 0:11:34.200 --> 0:11:36.640 after twenty one years at Villanova. He coached before that 0:11:36.720 --> 0:11:40.320 at Amstra. Villanova has already named as rights replacement Kyle 0:11:40.440 --> 0:11:43.800 Neptune from hern Nova assistant just finished his first year 0:11:44.120 --> 0:11:47.840 at Fordham John's Dash Award Bloomberg Sports Nathan all Right, John, 0:11:47.880 --> 0:11:50.199 thank you right now. SMP futures are up thirty three 0:11:50.200 --> 0:11:53.120 points down futures up a hundred nine three. Nasdaq futures 0:11:53.160 --> 0:11:56.360 higher by a hundred fifty seven points. The tenure treasury 0:11:56.440 --> 0:11:59.960 is down nine thirty seconds. The yield two six percent. 0:12:00.120 --> 0:12:02.640 Yield on the two year two point six one. This 0:12:02.720 --> 0:12:08.640 is Bloomberg Bloomberg Day Break, brought to you by the 0:12:08.640 --> 0:12:10.760 New York Community Trust. Your name will live on as 0:12:10.760 --> 0:12:12.920 a champion of the causes you care about for years 0:12:12.960 --> 0:12:15.440 to come through a charitable request to the New York 0:12:15.440 --> 0:12:22.960 Community Trust. Learn more at Philanthropist dot NYC. Markets headlines 0:12:23.000 --> 0:12:26.000 and breaking news twenty four hours a day at Bloomberg 0:12:26.080 --> 0:12:29.480 dot com, the Bloomberg Business Atland at Bloomberg Quick Tape. 0:12:29.640 --> 0:12:38.600 This is a Bloomberg business lash and I'm Camra in Moscow. 0:12:38.720 --> 0:12:41.480 US DOT Index futures on the rise this morning as 0:12:41.480 --> 0:12:44.480 a strong start to the earnings reporting season, easiest fears 0:12:44.480 --> 0:12:47.040 of a recession in the world's largest economy. A sell 0:12:47.080 --> 0:12:50.200 offen Treasury is resuming with a debate ranging around whether 0:12:50.240 --> 0:12:53.560 inflation is peaking, and we checked the markets every fifteen 0:12:53.600 --> 0:12:56.600 minutes throughout the trading day on Bloomberg. Right now, S 0:12:56.640 --> 0:12:59.600 and P futures are up thirty three points down, futures 0:12:59.640 --> 0:13:02.760 at one undred ninety five NASDACK futures have one hundred 0:13:02.800 --> 0:13:06.120 fifty four the decks in Germany up one percent, CAT 0:13:06.120 --> 0:13:08.600 in Paris up one point four percent, and the foot 0:13:08.640 --> 0:13:10.760 see one hundred is lower down a tenth of upper 0:13:10.840 --> 0:13:13.640 set k to twenty five in Japan gained one and 0:13:13.679 --> 0:13:16.000 a quarter percent, while the Hanks sing in Hong Kong 0:13:16.080 --> 0:13:19.000 was down one at a quarter percent. Ten year Treasury 0:13:19.040 --> 0:13:21.480 down twelve thirty seconds yield two point eight eight percent. 0:13:21.520 --> 0:13:23.920 That yield on the two year two point six two percent. 0:13:24.360 --> 0:13:26.680 Nine Max screwed oils up one percent or a dollar 0:13:26.760 --> 0:13:28.679 three at a hundred three dollars twenty two cents of 0:13:28.760 --> 0:13:32.000 Barrel Comics gold down half percent or nine dollars fifty cents. 0:13:32.040 --> 0:13:35.160 A nineteen forty six ten announced the Euro one point 0:13:35.360 --> 0:13:37.640 nine two three against the dollar, British pound one point 0:13:37.679 --> 0:13:40.120 three zero six zero, the ends at one twenty eight 0:13:40.200 --> 0:13:42.840 point one three and bitcoins higher up one point one 0:13:42.880 --> 0:13:45.920 percent at forty one thousand, nine hundred dollars. Today we 0:13:45.960 --> 0:13:48.800 are watching for the weekly report on initial jobless claims 0:13:48.840 --> 0:13:51.800 at at eight thirty Wall Street Time. Leading indicators out 0:13:51.840 --> 0:13:54.320 at ten snap, an, A, T, and T among companies 0:13:54.320 --> 0:13:58.040 schedule to report earnings today. That's a Bloomberg business flash. 0:13:58.120 --> 0:14:00.559 Now here's muncle bar with more I'm less going on 0:14:00.679 --> 0:14:03.640 around the world. Michael, good morning, Good morning, Karen. President 0:14:03.720 --> 0:14:08.240 Vladimir Putin said of Russia has taken control of Ukraine's Mariupol. However, 0:14:08.400 --> 0:14:12.240 a massive steel plant which Putin ordered blockaded, was not stormed. 0:14:12.640 --> 0:14:15.360 More than two thousand opposing troops remained hold up in 0:14:15.440 --> 0:14:19.800 the industrial complex in the strategic Southern Ports city. Meanwhile, 0:14:19.840 --> 0:14:23.040 the US officials as President Joe Biden is planning to 0:14:23.120 --> 0:14:26.960 send additional military aid to help Ukraine fight the Russian invasion. 0:14:27.400 --> 0:14:30.480 The World Health Organization says that the number of reported 0:14:30.560 --> 0:14:34.600 new COVID nineteen cases worldwide decreased by nearly a quarter 0:14:34.760 --> 0:14:37.840 last week. That means there's been a decline in reported 0:14:37.880 --> 0:14:41.720 infections since the end of March. Meanwhile, the Florida court 0:14:41.800 --> 0:14:44.720 ruling that put A stopped mass mandates will be appealed 0:14:44.760 --> 0:14:48.320 by the Justice Department. In the NBA playoffs, the Celtics 0:14:48.360 --> 0:14:50.880 beat the Nets one fourteen one oh seven to take 0:14:50.920 --> 0:14:54.040 a two games to ZIP lead in their series MLB Action, 0:14:54.080 --> 0:14:56.160 the Yankees won, The Giants beat the Mets five to 0:14:56.360 --> 0:14:59.160 the Red Sox lost the Orioles shut off the A's 0:14:59.400 --> 0:15:01.800 one ZIP. In the NHL, the Capital's lost to the 0:15:01.840 --> 0:15:06.280 Golden Knights in overtime for three Global News twenty four 0:15:06.320 --> 0:15:09.960 hours a day on air and on Bloomberg Quicktake, powered 0:15:10.000 --> 0:15:13.480 by more than twenty seven hundred journalists and analysts in 0:15:13.560 --> 0:15:16.440 more than one hundred twenty countries. I'm Michael Barr, and 0:15:16.680 --> 0:15:19.720 this is Bloomberg. Nathan Our Michael, thank you. It's five 0:15:19.800 --> 0:15:23.280 twenty on Wall Street Live from the Bloomberg Interactive Broker Studios. 0:15:23.360 --> 0:15:26.560 This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar. Bank 0:15:26.600 --> 0:15:30.000 of America reported better than expected earnings this week, and 0:15:30.200 --> 0:15:34.080 the bank's CEO, Brian moynihan says the American consumer is 0:15:34.280 --> 0:15:37.960 doing well even with inflation and interest rates on the rise. 0:15:38.520 --> 0:15:41.560 In an interview with Bloomberg's David Weston, moynihan said that 0:15:41.840 --> 0:15:45.240 his economic outlook is bullish and he trusts the Fed 0:15:45.360 --> 0:15:49.200 to bring inflation down. Our core estimate for GDP growth 0:15:49.400 --> 0:15:51.960 United States for the by Canadas, Browning Plat and our 0:15:52.000 --> 0:15:53.360 research team, which is one of the best of the 0:15:53.440 --> 0:15:57.120 businesses three point three percent for twenty two and one 0:15:57.960 --> 0:16:00.760 for next year. And that includes signific get rate rises 0:16:00.800 --> 0:16:02.520 by the Fed. And so there's a belief there that 0:16:02.640 --> 0:16:04.360 the the Fed gets it right, that they have a 0:16:04.400 --> 0:16:08.000 soft landing, the engineer returned to trade and growth as 0:16:08.080 --> 0:16:10.800 is saying we go there out is there's debate around that, 0:16:10.880 --> 0:16:12.600 and well, they have to engineer a harder landing just 0:16:12.680 --> 0:16:14.800 because the amount of inflation and system has to be 0:16:14.920 --> 0:16:17.920 pulled back. But what is different this time, and say 0:16:18.240 --> 0:16:20.880 the last rate cycle where they moved up in in 0:16:21.280 --> 0:16:24.840 eighteen nineteen range is even though unemployments down and it's 0:16:24.880 --> 0:16:27.760 down at that point nineteen, wages were growing as fast. 0:16:27.840 --> 0:16:30.600 Wages are growing very fast. At that point, customers had 0:16:31.040 --> 0:16:33.320 money and accounts, but not like they have today because 0:16:33.320 --> 0:16:36.680 of all the stimulus dollars. And at that point, you know, frankly, 0:16:36.840 --> 0:16:39.080 you know, businesses were at the long end of a 0:16:39.280 --> 0:16:42.320 major recovery tenure recovery one longest ever if we remember 0:16:42.360 --> 0:16:44.640 talking about it before the pandemic. So the thing was 0:16:44.680 --> 0:16:46.440 sort of long in the tooth. Now it's almost like 0:16:46.480 --> 0:16:49.040 a restart due to the fact that you had the pandemic, 0:16:49.280 --> 0:16:52.480 the pull back business closures, and you're coming back out 0:16:52.520 --> 0:16:55.200 of a ton of stimulus. So that's that's the two 0:16:55.240 --> 0:16:56.680 ways to think about. So there's gonna be a tug 0:16:56.760 --> 0:16:59.080 of war and his little tension. But is the market says, 0:16:59.120 --> 0:17:01.800 don't fight the FED. As I said yesterday, I wouldn't 0:17:01.800 --> 0:17:03.560 fight the American consumer because what we see in our 0:17:03.600 --> 0:17:05.680 customer base. So I'm happy to talk more about, David 0:17:05.680 --> 0:17:09.080 if you want, is tremendous customer activity by the bank 0:17:09.119 --> 0:17:11.960 American customers, which is our fifty million strong. So the 0:17:12.200 --> 0:17:14.600 very strong labor market. What about the housing market? Because 0:17:14.600 --> 0:17:17.200 I saw that in your first quarter report returns you 0:17:17.240 --> 0:17:19.640 actually were down a little bit in residential mortgages. Should 0:17:19.640 --> 0:17:21.679 we be concerned about that? Particularly as rates go up? 0:17:21.760 --> 0:17:24.080 I suppose people are less likely to borrow money to 0:17:24.080 --> 0:17:26.679 buy a house as rates go up. You know, obviously 0:17:26.760 --> 0:17:28.440 the cost of a mortgage goes up. If you take 0:17:28.440 --> 0:17:31.680 a two mortgage and rates go up one percent is 0:17:31.720 --> 0:17:34.200 two thousand dollars more a year divided by twelve. You 0:17:34.560 --> 0:17:37.639 could do the math, and so it affects affordability. But 0:17:37.800 --> 0:17:41.000 the reality is people sort of make a mistake and 0:17:41.080 --> 0:17:44.040 think about the refive market is being a major contributor economy. 0:17:44.119 --> 0:17:47.439 It it happens, It helps people get a little lower payments. 0:17:47.520 --> 0:17:50.040 That's good because they have more cashful What drives the 0:17:50.080 --> 0:17:52.760 housing economy is construction. And if you just look at 0:17:52.760 --> 0:17:54.560 the housing numbers this week. There's still a lot of 0:17:54.600 --> 0:17:56.600 starts going on. There's still a lot of demanding housing. 0:17:56.640 --> 0:17:59.159 We still have a housing built housing shortage, both in 0:17:59.240 --> 0:18:02.320 the multi family and the single family in many areas. 0:18:02.440 --> 0:18:05.439 You know, when we look with our CEO colleagues in Charlotte, 0:18:05.480 --> 0:18:07.680 we see tens of thousands of units of of workforce 0:18:07.760 --> 0:18:09.280 housing need to be built. When we look with our 0:18:09.320 --> 0:18:11.840 CEO colleagues and Boston, we see the same thing. They 0:18:11.880 --> 0:18:14.200 see the same thing in New York. So there's a 0:18:14.240 --> 0:18:16.919 lot of demand for housing because of just the natural 0:18:17.160 --> 0:18:19.080 way things are working. And I will hold the housing 0:18:19.160 --> 0:18:22.160 market up. Now, was it growing pretty fast price wise? Yes? 0:18:22.440 --> 0:18:26.280 Well that slow down potentially, yes, But remember it's growing 0:18:26.320 --> 0:18:29.000 it three or four times and normal rate it usually 0:18:29.000 --> 0:18:31.480 grows a So I think everything ebbs and flows, and 0:18:31.560 --> 0:18:33.720 that's what the FED will try to work on cooling 0:18:33.720 --> 0:18:36.480 down with the rate hikes. But remember the underlying economic 0:18:36.520 --> 0:18:38.600 activities building those houses, and that still has a lot 0:18:38.600 --> 0:18:40.840 of room to go. Let's talk about inflation. How are 0:18:40.880 --> 0:18:43.960 you seeing that expressed in economic activity? I mean it 0:18:44.000 --> 0:18:47.440 can have expressial self in compressed margin ratios for companies, 0:18:47.480 --> 0:18:50.200 for example, even in demand to structure people buying less things. 0:18:50.240 --> 0:18:53.239 Are you seeing that We're not seeing people buy less 0:18:53.400 --> 0:18:57.080 things yet because frankly, because of some of the shortage, 0:18:57.200 --> 0:18:59.200 is any any price is fine, so they're willing to 0:18:59.240 --> 0:19:02.840 pay the price. The transaction volume of of our customers 0:19:02.880 --> 0:19:05.240 activities going up seven eight percent, the dollar volumes going 0:19:05.320 --> 0:19:07.280 up higher, and that that means if some of that's 0:19:07.320 --> 0:19:10.880 just price increases. So corporate world is making good profits. 0:19:10.880 --> 0:19:12.879 They're passing through when they can, and you're seeing that 0:19:12.960 --> 0:19:14.359 some of the corporate earnings, it will be a very 0:19:14.400 --> 0:19:17.520 interesting earning season. But they're out either handling the shortages 0:19:17.560 --> 0:19:19.880 and they're handling the inflation. It canick go on forever 0:19:19.960 --> 0:19:21.520 that way, and that's why the Fed has a job 0:19:21.600 --> 0:19:23.560 to bring the inflation back in line because that kind 0:19:23.600 --> 0:19:26.560 of spiral is not healthy. But it takes rapid movement 0:19:26.640 --> 0:19:28.920 to get more efficient and rapid movement to move price 0:19:29.000 --> 0:19:31.359 and then with more wages, people can pay the prices 0:19:31.400 --> 0:19:33.400 and doing the things. And that was Bank of America's 0:19:33.400 --> 0:19:36.520 CEO Brian moynihan speaking with Bloomberg's David Westing. You can 0:19:36.560 --> 0:19:38.920 catch their entire interview. We have it for your online 0:19:39.359 --> 0:19:43.640 at Bloomberg dot com Right now, SMP futures are moving higher. 0:19:43.640 --> 0:19:45.800 They're up thirty four points now features up two hundred 0:19:45.840 --> 0:19:48.320 four NASTACK futures up a hundred fifty seven points. The 0:19:48.400 --> 0:19:51.639 ten your Treasury is down eleven thirty seconds. The yield 0:19:51.760 --> 0:19:54.719 two point eight seven percent. Yield on the two year 0:19:54.840 --> 0:19:58.400 right now just shy of two point six two percent. 0:19:59.080 --> 0:20:08.400 Stay with us listening to Bloomberg Daybreak Bloomberg eleven three 0:20:08.440 --> 0:20:10.920 oh weather. More clouds than sun today, cool with highs 0:20:10.920 --> 0:20:12.920 in the upper fifties. Will be in the upper sixties 0:20:13.000 --> 0:20:16.520 tomorrow with sunshine partly sunny, low sixties for Saturday. Right 0:20:16.560 --> 0:20:23.760 now forty six in Central Park, Broadcasting live from the 0:20:23.880 --> 0:20:28.240 Bloomberg Interactive Broker Studio in New York. Bloomberg Eloving Freedom 0:20:28.400 --> 0:20:32.639 to Washington, d C. Bloomberg to Boston, Bloomberg one oh 0:20:32.760 --> 0:20:36.200 six one to San Francisco, Bloomberg Nome sixty to the country, 0:20:36.359 --> 0:20:39.480 Sirius xm Chan one nine and around the globe the 0:20:39.520 --> 0:20:44.560 Bloomberg Business in Bloomberg Radio dot com. This is Bloomberg Daybreak. 0:20:50.480 --> 0:20:52.520 It's five thirty on Wall Street. Good morning. I'm Nathan 0:20:52.560 --> 0:20:55.200 Hagar and I'm Ferre at Moscow we are just about 0:20:55.280 --> 0:20:57.720 four hours away from the open of US trading. Let's 0:20:57.760 --> 0:20:59.040 get you have to date on the news you need 0:20:59.119 --> 0:21:00.760 to know at this shower, we begin with the war 0:21:00.840 --> 0:21:04.280