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

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Speaker 1: at Bloomberg dot com, The Bloomberg Business At and at

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Speaker 1: Bloomberg Quick Takes a Bloomberg Business Flash. I'm Nathan Hagar.

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Speaker 1: Stocks are poised for some relief this morning after the

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Speaker 1: SMP five hundred race one point three trillion dollars in

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Speaker 1: market capitalization yesterday closing in a bear market over worries

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Speaker 1: the Federal Reserve will hurl the economy into recession. The

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Speaker 1: FEDS Open Market Committee kicks off a two day interest

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Speaker 1: rate setting meeting this morning. We check the markets every

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Speaker 1: fifteen minutes during the trading day on Bloomberg. Right now,

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Speaker 1: SMP futures are up twenty one point, staff futures up

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Speaker 1: a hundred thirty four, Nastack futures are higher by ninety

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Speaker 1: three points. The tenure Treasury is up nine thirty seconds.

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Speaker 1: The yield three point three two percent. Yield on the

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Speaker 1: two year is three point three zero percent. Nim X

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Speaker 1: screwed up six tenths per cent, up seventy one cents

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Speaker 1: at a hundred twenty one dollar sixty four cents a barrel.

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Speaker 1: Comex gold is down four tenths per center, or six

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Speaker 1: dollars fifty cents eight for announce of gold. The euro

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Speaker 1: is at one point zero four four five against the dollar,

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Speaker 1: British pound one point two one to six, and the

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Speaker 1: yen is at one four point to six. Head of

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Speaker 1: the FEDS meeting, we get one final read on inflation.

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Speaker 1: This morning eight thirty am Wall Street Time the release

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Speaker 1: of the May Producer Price Index. That is a Bloomberg

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Speaker 1: business flash. Here's Michael Barnew with more on what's going

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Speaker 1: on around the world. Michael, thank you very much, Nathan.

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Speaker 1: Ukrainian President Vladimir z Lensky says the battle over the

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Speaker 1: Donbas region will be one of the most brutal in

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Speaker 1: European history. Ukrainian military officials say their troops have been

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Speaker 1: pushed out of a key city in the East and

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Speaker 1: are in desperate need of additional military aid. China has

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Speaker 1: released a long detained Bloomberg News employee, Hayes Fan, has

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Speaker 1: been released on bail after more than a year in detention.

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Speaker 1: She was held on suspicion of national security law violations.

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Speaker 1: The case remains under investigation while Fan is on bail

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Speaker 1: pending trial. In Game five of the NBA Finals, and

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Speaker 1: Celtics are on the brink of elimination. Boston lost to

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Speaker 1: the Warriors one oh four ninety four in baseball. The

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Speaker 1: Nationals in Oioles lost the Giants. One Global News twenty

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Speaker 1: four hours a day on air and on Bloomberg Quick Take,

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Speaker 1: powered by more than twenty seven hundred journalists and analysts

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Speaker 1: more than a hundred twenty countries. Michael Barn This is Bloomberg, John, Michael,

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Speaker 1: thank you, five forty nine on Wall Street. We are

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Speaker 1: live from the Bloomberg Interact and Broker's studios. As you

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Speaker 1: heard Nathan say, Monday's plunged, plunged, erased one point three

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Speaker 1: trillion dollars in market capitalization. Uh, seeing some signs of

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Speaker 1: relief this morning. Maybe We're joined now live by Bloomberg's

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Speaker 1: Johanna Austin Gird Bloomberg News Cross Asset reporter. What do

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Speaker 1: we need to see for signs of a capitulation in markets? Joanna? What?

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Speaker 1: What are market participants telling you? Yeah? Well, John, you

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Speaker 1: always look for something like elevated volatility and just a

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Speaker 1: real d up where it looks like everybody's given up right,

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Speaker 1: And so some people are saying, we need to say

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Speaker 1: physics of a forty, for instance, and it's in the

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Speaker 1: low thirties right now. But it's also true that, you know,

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Speaker 1: there can be market dynamics that don't really make that happen,

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Speaker 1: and you can have not quite a capitulation, but things

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Speaker 1: still go up from there for a long time. So

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Speaker 1: so we'll see. But at this point, a lot of

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Speaker 1: people are saying it doesn't really look like everyone's given

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Speaker 1: up quite yet. The p p I this morning, could

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Speaker 1: that be even more important than the consumer price index

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Speaker 1: for stocks and where we're gonna get a taste of

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Speaker 1: margins for companies right, Yeah, definitely. And the main thing

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Speaker 1: is it's kind of on top of the CPI, right

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Speaker 1: that if you if you just had one thing in isolation,

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Speaker 1: one might be more important to some people than another.

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Speaker 1: But coming after everyone is so nervous now about what

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Speaker 1: happened with the c p I, it looks like that

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Speaker 1: could be really important. Becuse if everybody is already nervous that,

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Speaker 1: you know, it'll just add to that if we see

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Speaker 1: signs that inflation is really staying hot. All right, so

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Speaker 1: what is the FED betting right now for tomorrow's meeting? Well,

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Speaker 1: at the meeting starts today, but tomorrow's decision and the

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Speaker 1: meeting's coming up. Mhmm. Yeah, it's pretty incredible that we're

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Speaker 1: at basis points basically, with some people talking about a

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Speaker 1: hundred I mean a full point the hike, So you know,

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Speaker 1: there's a lot of uncertainty about it. But as people

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Speaker 1: look at what the Fed had to do in the

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Speaker 1: past to get inflation under control, and of course at

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Speaker 1: that point, you're looking decades in the past, right, so

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Speaker 1: things would have been a lot different in many ways.

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Speaker 1: But we're looking at a pretty big hike at least

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Speaker 1: in what markets sur pricing at this point. Yeah, we

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Speaker 1: have a headstocks and bonds moving in tandem lower. So

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Speaker 1: that kind of begs the question, what's the alternative for investors?

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Speaker 1: Is it just cash at this point? Yeah, well, cash

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Speaker 1: or if you try to get into kind of safe

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Speaker 1: for stocks. Energy stocks have done pretty well this year,

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Speaker 1: but it is hard to find a place to hide.

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Speaker 1: Even hedges can be somewhat expensive. So yeah, investors have

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Speaker 1: had a pretty rough time of it in the past

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Speaker 1: little while here. Yeah, and with the rates in play

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Speaker 1: and the rate differentials across the world, you see the

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Speaker 1: dollar increasing and I as a cross asset reporter I

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Speaker 1: gotta ask you, what does that do to dollar flows

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Speaker 1: for foreign investments into the US that could, as they

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Speaker 1: have in the past, prop up markets. Yeah, well, it

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Speaker 1: definitely isn't great for a lot of nations, you know,

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Speaker 1: like some of the Asian countries for instance. Um, but

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Speaker 1: you know what I mean this this happened during the pandemic,

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Speaker 1: the height of the pandemic as well. You get the nervousness,

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Speaker 1: you get the dollar higher, and you know, some other

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Speaker 1: currencies suffer. That affects the imports and exports. But overall,

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Speaker 1: I mean, people are kind of figuring that there will

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Speaker 1: be the the dollar will be stronger just because of

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Speaker 1: what the Fed is doing, the yen weakening because go

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Speaker 1: o j is kind of staying where it is. So yeah, um,

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Speaker 1: it's not exactly easy, but that's somewhat anticipated. All Right, Joanna,

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Speaker 1: always a pleasure appreciated from Singapore. That will explain the

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Speaker 1: delay this morning. Joanna Hassager, Bloomberg News cross Asset reporter

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Speaker 1: Nathan all Right, good to know, John. Thank you, five

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Speaker 1: fifty three on Wall Street Time now for our Bloomberg

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Speaker 1: Law Report. Let's get to the legal stories we're watching

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Speaker 1: this morning. Here's Bloomberg's Jeff Balinger. The Government Accountability Office

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Speaker 1: identified five new priority recommendations for the i r S,

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Speaker 1: including a suggestion that the agency be more transparent about

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Speaker 1: its backlog of unprocessed pack documents. A former a MC

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Speaker 1: employee is proposing a class action against the theater chain

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Speaker 1: because it pays workers in New York State on a

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Speaker 1: bi weekly instead of a weekly basis. Former employees of

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Speaker 1: the Wingstop chain or suing NCR in Illinois charging the

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Speaker 1: cash registers that collect their fingerprints violated state privacy law.

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Speaker 1: Bloomberg Law everything you need, all on one legal research platform,

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Speaker 1: including guidance analysis and Bloomberg Market Intelligence. Find out more

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Speaker 1: at Bloomberg Law dot com. All right, Jeff, thanks, Now,

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Speaker 1: another legal story we're watching. Former President Jimmy Carter has

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Speaker 1: stepped into an environmental dispute in Alaska. A three judge

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Speaker 1: panel of the Ninth Circuit upheld a Trump era land

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Speaker 1: swap that would allow an isolated town to build a

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Speaker 1: road through a national wildlife refuge. It's part of the

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Speaker 1: National park Lands established when Carter signed his landmark conservation Act,

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Speaker 1: the Alaska National Interest Lands Conservation Act. Former President has

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Speaker 1: filed a brief supporting conservations who want the full Ninth

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Speaker 1: Circuit to rehear the case and for more. Bloomberg's June

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Speaker 1: Grosso speaks with Pat Parentell, environmental law professor at the

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Speaker 1: Vermont Law School, that it's not often that a former

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Speaker 1: president puts himself in the middle of a legal battle.

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Speaker 1: This road was part of the deal called a Nilka

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Speaker 1: the Alaska Lands Bill, which Jimmy Carter famously signed, saving

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Speaker 1: over a hundred million acres of pristine wilderness in Alaska.

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Speaker 1: So the deal and a Nilka was you were going

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Speaker 1: to put this road through the Tongas National Forest part

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Speaker 1: of the Grand Compromise on the Alaska Lands Bill. And

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Speaker 1: that's why Carter weighed in and say, wait a minute,

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Speaker 1: you're renegging on the agreement that we reached. Do you

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Speaker 1: agree with the argument that if this ruling is allowed

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Speaker 1: to stand, then future secretaries of the Interior, future administrations

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Speaker 1: could use this as a president to start carving up

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Speaker 1: the land. You know, it creates a loophole, and you

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Speaker 1: have to look at every instance of can you use

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Speaker 1: the loophole to do something that isn't anticipated by the agreement?

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Speaker 1: You know, in each case is different, but Yeah, I mean,

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Speaker 1: any time you go back and revisit what I think

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Speaker 1: it's fair to say that there was an agreement at

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Speaker 1: that time that the Tongus was going to be left intact.

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Speaker 1: It's the largest, by the way, the largest carbon forest

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Speaker 1: in North America. It's that kind of really unique resource.

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Speaker 1: So yeah, anytime you know, you can revisit a deal

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Speaker 1: and open it up for further discussion, that raises the

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Speaker 1: question of whether any deal is ever sacristans. It seems

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Speaker 1: like it would be something the Ninth Circuit would take

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Speaker 1: on bank since it was a two to one decision. Yeah,

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Speaker 1: and it was kind of out there from the academic analysis,

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Speaker 1: you know, the people that study that particular road project

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Speaker 1: and its history have written that the Ninth Circuit should.

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Speaker 1: In fact, there's a whole group of law professors on

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Speaker 1: warm them signed an amicust brief saying you really to

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Speaker 1: take another look at this because it goes against the

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Speaker 1: deal that was cut back in the seventies. Tell us

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Speaker 1: a little bit more about why you think the ruling

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Speaker 1: of the three judge panel was not correct. They didn't

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Speaker 1: give it really any deference to the original agreement that

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Speaker 1: this forest was not going to be opened up. I mean,

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Speaker 1: anytime you put a major road into a forest, you

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Speaker 1: change it forever. I mean you get all kinds of

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Speaker 1: traffic and all the activities that are associated with that.

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Speaker 1: You know, roads introduced invasive species. There's all kinds of

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Speaker 1: things that happened. You know, you access remote areas where

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Speaker 1: they're grizzly bears and wolves, and then there's poaching, and

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Speaker 1: so there's all kinds of negative consequences from roads. It

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Speaker 1: isn't just the road itself. It's what the road brings

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Speaker 1: into the forest. That's Pat Parente, environmental law professor at

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Speaker 1: the Vermont Law School, speaking with Bloomberg's June Grass. How

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Speaker 1: You can catch more of that interview, plus analysis of

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Speaker 1: the latest legal news by subscribing to the Bloomberg Law

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Speaker 1: Podcast or downloading the show at Bloomberg dot com slash podcast.

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Speaker 1: Attorneys can find exceptional legal research and business development tools

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Speaker 1: at Bloomberg Law dot com and on the Bloomberg terminal

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Speaker 1: at blog Go. Bloomberg Daybreak continues. This is Bloomberg broadcasting

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Speaker 1: live from the Bloomberg Interactive Broker Studio in New York.

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Speaker 1: Bloomberg in Freedom to Washington, d C. Bloomberg to Boston,

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

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Speaker 1: six to the country, Sirius XM to the one nine team,

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

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Speaker 1: Radio dot Com. This is Bloomberg Daybreak's five three on

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Speaker 1: Wall Street. Good morning, I'm John Tucker and I'm Nathan Heger.

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Speaker 1: We're about four hours away from the open of US training.

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Speaker 1: Let's get you up to date on the news you

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Speaker 1: need to know at this hour. The SMP five finished

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Speaker 1: yesterday's trading more than twenty low, its last record close,

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Speaker 1: entering a bear market. Currently, SMP futures are bouncing back.

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Speaker 1: They're up eighteen points even with the sell off. Defiant

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Speaker 1: c t F Chief investment Officer Sylvia Jablonsky tells us

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Speaker 1: there is reason for optimism. We're in the first half

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Speaker 1: of the year. It's not even over yet, although it

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Speaker 1: feels like a decade, and earnings are still looking strong.

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Speaker 1: Consumers strong, Carbor balance sheet are strong. I know there's

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Speaker 1: a lot of debate about that, but the numbers and

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Speaker 1: the big large you know, the larger macroeconomic factors are

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Speaker 1: still fairly positive. Sylvia Jablonski, with Chief Definance c ETF,

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Speaker 1: says investors could see higher returns this year if inflation

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Speaker 1: and supply chain bottlenext ease still forward traders, It's all

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Speaker 1: about the FED right now. The Central Bank begins it's

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Speaker 1: today policy meeting. Today, reports indicate the Fed could raise

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Speaker 1: rates by seventy five basis points. That would be the

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Speaker 1: highest high since n Well ahead of that decision, John

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Speaker 1: Big Us banks are signaling more concerned for the economy.

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Speaker 1: Investor fears of stagflation at the highest since the two

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Speaker 1: thousand and eight financial crisis, according to Bank of America's

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Speaker 1: monthly fund manager Serve Morgan. Stanley CEO James Gorman says

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Speaker 1: he sees the risk of a US OR session at

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Speaker 1: about fifty attorney to oil. Crude is holding steady around

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Speaker 1: one d twenty two dollars a barrel. Now we're learning

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Speaker 1: the White House plans for President Biden to visit Saudi

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Speaker 1: Arabia next month. SMP Global Vice chair Dan Jurgen says,

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Speaker 1: even if the Kingdom increases production, it may not have

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Speaker 1: much of an impact on prices. The markets are very tight,

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Speaker 1: and so even though he would expect that with what's

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Speaker 1: happened to the overall it seems to be happening to

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Speaker 1: the overall economy is slowing, it's not showing up, and

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Speaker 1: yet in demand for oil. SMP vice cheer Dan Jurgen

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Speaker 1: speaking with David West on Bloomberg's Balance of Power. Catch

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Speaker 1: the program weekdays at noon Eastern on Bloomberg Radio and TV.

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Speaker 1: All right, let's turn to corporate news, John and to Twitter. Now.

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Speaker 1: Elon Musk is set to address staff at the company

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Speaker 1: directly this week. Bloomberg's Grenida Young joins US Live with Morgan.

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Speaker 1: Good morning, Grenia, Good morning, Nathan Bloomberg. Sources say this

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Speaker 1: will be the first time Elon Musk addresses Twitter employees

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Speaker 1: since agreeing to buy the company for forty four billion dollars,

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Speaker 1: and Musk will take quests at the Thursday morning virtual meeting.

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Speaker 1: The company has been in a chaotic state since the

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Speaker 1: deal was announced in April. Musk has been critical of

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Speaker 1: the company, had questions the amount of spam accounts. Meantime,

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Speaker 1: Twitter CEO has announced a series of cost cutting measures

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Speaker 1: since the deal came together. Live in New York. I'm

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Speaker 1: gonna need a young bloom birth day break. All right,

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Speaker 1: thanks for data and ahead of the can show up

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Speaker 1: on the Wall Street down the issues right now of

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Speaker 1: one eight points, SMP futures of eighteen, that hast In

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Speaker 1: futures of eighty five points, and that brings is three

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Speaker 1: on Wall Street. Time to bring in Michael Barr with

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Speaker 1: more on what else is going out of New York

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Speaker 1: and around the world. John, Thank you very much, Sarah.

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Speaker 1: New York has expanded legal protections for people seeking and

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Speaker 1: providing abortions in the state. Governor Kathy Holcal signed legislation

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Speaker 1: anticipation of the U Supreme Court potentially over ruling its

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Speaker 1: three Roe v. Wade's decision, which established a constitutional right

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Speaker 1: to abortion. This is to the right to control our

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Speaker 1: own bodies was supposed to be well settled president by now,

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Speaker 1: or so we thought. Governor Houkel says the new laws

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Speaker 1: planned to give abortion providers thirty five million dollars to

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Speaker 1: expand services and boost security and anticipation of an influx

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Speaker 1: of out of state people seeking abortions in New York,

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Speaker 1: Attorney General Merritt Garland confirmed he watched the committee's hearings

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Speaker 1: closely on the January sixth Capitol riot, even as he

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Speaker 1: faced his increased pressure to investigate former President Donald Trump.

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Speaker 1: Garland didn't comment on the current status of a possible

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Speaker 1: investigation against Trump, but at this point this investigation is proceeding,

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Speaker 1: acquiring effects and the law a g Garland as Trump's

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Speaker 1: top government officials and even his family were dismantling a

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Speaker 1: false claim of twenty election fraud ahead of the January

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Speaker 1: sixth attack on the Capitol. The four GOP candidates running

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Speaker 1: for New York governor debated topics last night from crime,

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Speaker 1: the economy, and former President Trump. During the debate aired

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Speaker 1: on CBS two, Andrew Giuliani, the son of the former

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Speaker 1: New York mayor, was asked about the hearings. You know,

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Speaker 1: the media has been fixated on January six for the

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Speaker 1: better part of a year and a half now, and

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Speaker 1: I would like to see a Congressional hearing on the

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Speaker 1: two hundred and seventy four riots that happened between May

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Speaker 1: of and June of January five one, rather than just

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Speaker 1: a one day where the video is completely focused on.

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Speaker 1: Giuliani is a former advisor to Trump. Other candidates at

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Speaker 1: the debates US Representative Lee Zelden, businessman Harry Wilson, and

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Speaker 1: former Westchester County Executive Rob Astorino Global News twenty four

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Speaker 1: hours a day on air and on Bloomberg Quicktake, powered

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Speaker 1: by more than twenty seven hundred journalists and analysts more

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Speaker 1: than a hundred twenty countries. Michael Barr and this is Bloomberg, John, Michael,

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Speaker 1: thank you. It's now five thirty five on Wall Street

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Speaker 1: and that's time to the Bloomberg Sports Update US John

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Speaker 1: Stash all right, Johnny. Golden State Warriors, of course, led

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Speaker 1: by Steph Curry. That was obvious in Game four in

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Speaker 1: Boston when Curry scored forty three points, but last night,

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Speaker 1: Curry did not make a single three pointer shot. Oh

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Speaker 1: for night ends the streak of two hundred and thirty

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Speaker 1: three games in a row with at least one dating

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Speaker 1: back to November of two thousand eighteen, and the Warriors

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Speaker 1: still won. They got twenty six points from Andrew Wiggins.

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Speaker 1: They began the fourth quarter with a tend nothing run.

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Speaker 1: They beat the Celtics one oh four ninety four first

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Speaker 1: time in the playoffs. The Celtics have lost two in

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Speaker 1: a row. Warriors lead in the NBA Finals three to

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Speaker 1: Game six is Thursday in Boston. Golden State a chance

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Speaker 1: to win a fourth championship in the last eight years.

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Speaker 1: We'll see if NBA Commissioner Adam Silver can hand out

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Speaker 1: the trophy. He missed last night's game COVID Protocols. Yankees

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Speaker 1: and Mets both home tonight. Red hot Yanks host Tampa Bay.

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Speaker 1: Since losing a couple of games to the Raise, The

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Speaker 1: Yanks a going eleven and one Mets take on Milwaukee

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Speaker 1: the Braves one again. They hit five home runs. They

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Speaker 1: won nine five in Washington, although they lost Ozzie Albis

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Speaker 1: to a broken foot Atlanta twelve and oh in June,

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Speaker 1: and they have five games behind the Mets. Phil Mickelson

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Speaker 1: met the media and ball as he gets ready to

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Speaker 1: play the US Open that starts Thursday. Asked repeatedly about

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Speaker 1: his decision to play the new Live tour. Field did

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Speaker 1: mention the money, incredible financial commitment. But more than that, uh,

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Speaker 1: for for all the players involved and everyone involved. But

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Speaker 1: more than that, there are other factors that with fewer tournaments,

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Speaker 1: it allows me to have more balance in my life.

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Speaker 1: It allows me to do things that are off the

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Speaker 1: golf course I've always wanted to do. He understands the criticism,

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Speaker 1: including that from fellow players, are sticking the PA John

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Speaker 1: stactually Bloomberg sports John, all right, thanks John, five thirty seven.

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Speaker 1: Old Wall Street tied down for the Tri State Business Report.

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Speaker 1: For that, we're joined by Bloomberg's query. Subway Restaurants is

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Speaker 1: considering moving to Fairfield County, Connecticut, where its operations began,

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Speaker 1: and leaving its current Milford headquarters. The sandwich chain says

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Speaker 1: it's exploring options in northeastern Fairfield County to create a

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Speaker 1: world class work environment for its employees. The International Brotherhood

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Speaker 1: of Electrical Workers opposes a bill awaiting the signature of

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Speaker 1: New York Governor Kathy Hoco. According to New York Focus,

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Speaker 1: the measure would place a two year moratorium on new

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Speaker 1: fossil fuel power plants that would be used by the

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Speaker 1: crypto industry. The state of New Jersey is fighting over

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Speaker 1: how to spend about eleven billion dollars in surprise tax revenue.

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Speaker 1: Governor Phil Murphy says he wants to issue nine hundred

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Speaker 1: million dollars in taxpayer relief checks, apply at least one

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Speaker 1: point three billion dollars toward debt reduction, and save money

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Speaker 1: for an emergency. Others disagree with his plan, though they

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Speaker 1: say a financial crisis is approaching. That's your Bloomberg Try

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Speaker 1: State Business Report. I'm Ed Corey. All right, thanks Aid

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Speaker 1: on Wall Street. Bloomberg Radios on the year from San

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Speaker 1: Francisco to New York, London to Hong Kong. Let's second

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Speaker 1: now with our global news team for some of the

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Speaker 1: top stories heard on our three hundred Affiligate radio stations

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Speaker 1: around the world. I'm Steve Potas Ted Ted Winds in

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Speaker 1: New York. We're talking about how the Bloomberg fed indecks

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Speaker 1: finds bankers are not rushing back to the office amid

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Speaker 1: a recent COVID surge. M Corneys on a Hoe on

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Speaker 1: w h F and Looisville. The maker of Jack Daniels

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Speaker 1: is planning to sell freemix. Jack and Cooke can podcast

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Speaker 1: time Genus Servetti. And for w BBM in Chicago, I'm

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Speaker 1: reporting that cash register maker NCR faces a potential class

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Speaker 1: action in Illinois for allegedly collecting restaurant workers fingerprints without permission.

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Speaker 1: Hi make Cory on w w J in Detroit. I'm

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Speaker 1: reporting eleven Co America brankers in Michigan are closing. And

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Speaker 1: those are some of the stories are Bloomberg journalists and

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Speaker 1: analysts are working on this morning around the world is

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Speaker 1: now five thirty nine on Wall Street. The following is

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Speaker 1: an editorial from Bloomberg Opinion. For too long, a common

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Speaker 1: sense agreement to fix America's gun laws has seemed out

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Speaker 1: of reach. A new effort in Congress offers reason for optimism.

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Speaker 1: This week, ten Senate Democrats and ten Republicans compromised on

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Speaker 1: a framework for what will likely be the most significant

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Speaker 1: gun control legislation the US has scene in years. Their

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Speaker 1: plan won't please everyone, but there's no question it represents progress. Importantly,

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Speaker 1: it will encourage states to enact red flag laws, which

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Speaker 1: allow courts to temporarily remove firearms from individuals in crisis.

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Speaker 1: It would also ensure that domestic violence records are more

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Speaker 1: widely included in background checks and boost penalties for gun trafficking.

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Speaker 1: The framework is modest, no doubt, and ought to be

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Speaker 1: a starting point for wider change. But after a decade

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Speaker 1: of Congressional inaction on gun safety, every step forward, big

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Speaker 1: or small, should be welcomed. This editorial was written by

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Speaker 1: the Bloomberg Opinion Editorial Board. I'm David Shipley. For more

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Speaker 1: Bloomberg Opinion, please go to Bloomberg dot com. Slash opinion

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Speaker 1: or OPA and go on the Bloomberg terminal. This has

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Speaker 1: been Bloomberg Opinion. Bloomberg Opinion editorials can be heard every

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Speaker 1: week day at this time, tribal customers can rebore at O, P,

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Speaker 1: I N go now as a futures right now, after

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Speaker 1: yesterday's massive sell off, they are up nineties six points

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Speaker 1: SMP futures of two and at our futures right now

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Speaker 1: one thirty five points higher. This is Bloomberg and the

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Speaker 1: Bloomberg weather for it today from meteorologist Rob Caroline. Morning

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Speaker 1: cloud's in the city with a chance of a stray

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Speaker 1: sprinkle or maybe an isolated shower. Otherwise it's going to

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Speaker 1: turn partly Sunday today. High temperature in the mid eighties. Markets,

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

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Speaker 1: Bloomberg dot Com, the Bloomberg Business at and at Bloomberg

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Speaker 1: Quick Tape. He's a Bloomberg Business Lash. I'm Nathan Hagar.

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Speaker 1: Futures are bouncing back. Treasuries has sent a four day

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Speaker 1: sell off, a market route driven by expectations of sharper

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Speaker 1: Federal reserve interest rate hikes to fight inflation. Looks like

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Speaker 1: it could be ending at least at the moment. We

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Speaker 1: check the markets for you every fifteen minutes during the

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Speaker 1: trading day on Bloomberg. Right now, it's a p futures

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Speaker 1: are up sixteen points, Staff futures up ninety Nasty futures

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Speaker 1: are higher by eighty points. The acts in Germany down

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Speaker 1: three tenths of one percent now. The CAC in Paris

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Speaker 1: is a lower by six tenths percent ten. Your treasury

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Speaker 1: is up ten thirty seconds. The yield almost three point

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Speaker 1: three two percent on the tenure note build on the

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Speaker 1: two year three point three zero percent. Nim X screwed

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Speaker 1: up about a half percent, up fifty four cents at

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Speaker 1: a d twenty one dollar forty eight cents of barrel comes.

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Speaker 1: Gold is down four tenths per cent, or seven dollar

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Speaker 1: sixty cents at eighty announced. The euro one point zero

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Speaker 1: four five five against the dollar British pound one point

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Speaker 1: two one four eight. The end is at one thirty

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Speaker 1: four point to four. Federal Reserve kicks off it's two

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Speaker 1: day interest rate setting meeting this morning, a decision expected tomorrow.

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Speaker 1: Ahead of all that, a final read on inflation eight

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Speaker 1: thirty Wall Street time, when we get the May producer

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Speaker 1: price index. That's a Bloomberg business flash. Now here's Michael

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Speaker 1: Barr with more on what's going on around the world. Michael,

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Speaker 1: good morning, Good morning. They Kim Donald Trump school US

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Speaker 1: his campaign advisors were dismantling his false claims of twenty

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Speaker 1: election fraud ahead of January sixth attack on the Capitol.

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Speaker 1: During yesterday's House here In, former Attorney General William Barrs

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Speaker 1: said the defeated presidents seemed detached from reality. President Joe

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Speaker 1: Biden is sent to be traveling to Saudi Arabia next month.

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Speaker 1: Biden plans to meet Crown Prince Mohammed ben Selman. China

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Speaker 1: has released a long detained Bloomberg News employee, Hayes Found

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Speaker 1: has been released on bail after more than a year

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Speaker 1: in detention. She was held on suspicion of national security

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Speaker 1: law violations. The case remains under investigation while Found is

430
00:24:37,280 --> 00:24:40,720
Speaker 1: on bail pending trial. Game five of the NBA Finals,

431
00:24:40,720 --> 00:24:43,240
Speaker 1: the Celtics are on the brink of elimination. Boston lost

432
00:24:43,280 --> 00:24:45,920
Speaker 1: to the Warriors one oh four ninety four. In baseball,

433
00:24:46,000 --> 00:24:49,359
Speaker 1: the Nationals in Oioles lost the Giants. One. Global News

434
00:24:49,359 --> 00:24:52,000
Speaker 1: twenty four hours a day on air and on Bloomberg

435
00:24:52,080 --> 00:24:55,240
Speaker 1: Quick Take, powered by more than twenty seven hundred journalist

436
00:24:55,240 --> 00:24:57,760
Speaker 1: and analysts and more than a hundred twenty countries. How

437
00:24:57,800 --> 00:25:00,760
Speaker 1: Michael Barr, this is Bloomberg done right, Michael, thank you.

438
00:25:00,920 --> 00:25:03,840
Speaker 1: It is now five twity on Wall Street. We're live

439
00:25:03,920 --> 00:25:07,880
Speaker 1: from the Bloomberg Interact of Brokers Studios. This is Bloomberg Daybreak.

440
00:25:08,359 --> 00:25:12,080
Speaker 1: The SMP five d erased one point three trillion dollars

441
00:25:12,119 --> 00:25:16,119
Speaker 1: in market capitalization and closed in a bear market. So

442
00:25:16,200 --> 00:25:18,600
Speaker 1: what's next. Let's get you set up for the trading

443
00:25:18,680 --> 00:25:21,399
Speaker 1: day ahead. We're joined by Patrick Palfrey, co had of

444
00:25:21,480 --> 00:25:26,720
Speaker 1: Quantitative Research and senior equity strategist at Credit Sweets. Patrick,

445
00:25:26,760 --> 00:25:31,160
Speaker 1: do you see signs of capitulation in the markets? Well,

446
00:25:31,160 --> 00:25:34,160
Speaker 1: there are certainly signs of capitulation yesterday. I think what's

447
00:25:34,200 --> 00:25:37,360
Speaker 1: interesting when you look at the price action amongst sector,

448
00:25:38,119 --> 00:25:42,280
Speaker 1: you see that energy was among the worst performing sectors,

449
00:25:42,480 --> 00:25:45,359
Speaker 1: despite the fact that we didn't see any material move

450
00:25:45,480 --> 00:25:48,119
Speaker 1: in oil. And I think what it comes down to

451
00:25:48,400 --> 00:25:52,320
Speaker 1: is the the pain that a lot of individuals are

452
00:25:52,359 --> 00:25:55,040
Speaker 1: seeing on Wall Street and the areas where they have

453
00:25:55,119 --> 00:25:57,280
Speaker 1: the ability to take profits, and that's I think why

454
00:25:57,320 --> 00:26:00,200
Speaker 1: we saw them probably move more aggressively than I there's

455
00:26:00,359 --> 00:26:03,600
Speaker 1: other sectors, but I think we we do see signs

456
00:26:03,600 --> 00:26:06,880
Speaker 1: of capitulation. Whether or not it is design of capitulation

457
00:26:07,000 --> 00:26:09,480
Speaker 1: that investors are looking for, I think that remains to

458
00:26:09,520 --> 00:26:12,880
Speaker 1: be seen, particularly with the volatility we're seeing not only

459
00:26:12,920 --> 00:26:17,520
Speaker 1: with equities, but within UH commodities, within currencies, and probably

460
00:26:17,560 --> 00:26:20,600
Speaker 1: most importantly within fixed income areas of the market. Yeah,

461
00:26:20,680 --> 00:26:24,480
Speaker 1: and VIX, the Wall Street fear gage that's been elevated

462
00:26:24,520 --> 00:26:27,440
Speaker 1: but still only around thirty two. Does that need to

463
00:26:27,480 --> 00:26:31,760
Speaker 1: go much higher before we might see a bottom. Well,

464
00:26:31,800 --> 00:26:34,880
Speaker 1: I think the VIX moving higher from here is going

465
00:26:34,920 --> 00:26:38,200
Speaker 1: to be more difficult. What we're actually seeing right now

466
00:26:38,240 --> 00:26:41,240
Speaker 1: is that it should be more elevated. UM. When you

467
00:26:41,320 --> 00:26:46,359
Speaker 1: look at realized ball versus traditional VIX, what you see

468
00:26:46,440 --> 00:26:50,199
Speaker 1: is realized ball is typically six points lower given the

469
00:26:50,240 --> 00:26:52,520
Speaker 1: cost of hedging in in the VIX, and what we're

470
00:26:52,520 --> 00:26:54,520
Speaker 1: seeing is that two of them are actually pretty close

471
00:26:54,600 --> 00:26:58,200
Speaker 1: to par. And what that reflects is actually the demand

472
00:26:58,280 --> 00:27:02,520
Speaker 1: for downside protection UH put buying, as judged by this

473
00:27:02,560 --> 00:27:06,360
Speaker 1: Skew index is actually UM not nearly as elevated as

474
00:27:06,359 --> 00:27:08,760
Speaker 1: we would have expected, and it really reflects the fact

475
00:27:08,800 --> 00:27:11,320
Speaker 1: that we've had an elevated VIX for a while. Many

476
00:27:11,400 --> 00:27:14,440
Speaker 1: hedge funds have taken down the risk profiles of the book,

477
00:27:14,480 --> 00:27:17,800
Speaker 1: so they need to UH dramatically hedge their positions is

478
00:27:17,840 --> 00:27:20,240
Speaker 1: actually diminished, and that's why we're not seeing the VIX

479
00:27:20,800 --> 00:27:22,120
Speaker 1: as high as it needs to be, and I don't

480
00:27:22,119 --> 00:27:24,439
Speaker 1: think we're really going to see it move much higher

481
00:27:24,480 --> 00:27:27,000
Speaker 1: from here. Okay, so what is the course they had

482
00:27:27,040 --> 00:27:30,680
Speaker 1: for the feeder reserve? Well, I think we look out

483
00:27:30,720 --> 00:27:33,240
Speaker 1: to this week's meeting. There's there's a lot of talk

484
00:27:33,320 --> 00:27:37,240
Speaker 1: potentially of seventy five basis points, even discussed in the clients.

485
00:27:37,440 --> 00:27:40,000
Speaker 1: I hear the possibility of of a whole point move

486
00:27:40,520 --> 00:27:43,040
Speaker 1: in UH. In reality, I think the set has been

487
00:27:43,119 --> 00:27:47,399
Speaker 1: incredibly meticulous and how they're telegraphing their response. I don't

488
00:27:47,480 --> 00:27:50,560
Speaker 1: think that we're going to see a one percent move.

489
00:27:50,600 --> 00:27:52,920
Speaker 1: I do think it is possible to see seven five

490
00:27:52,920 --> 00:27:55,879
Speaker 1: basis points, but it's hard for me do envisioned something

491
00:27:55,920 --> 00:27:58,760
Speaker 1: beyond that, just given how careful this that has been

492
00:27:58,760 --> 00:28:01,320
Speaker 1: in crafting their message and the fact that they've actually

493
00:28:01,359 --> 00:28:03,320
Speaker 1: accomplished much of their goals here. When you look at

494
00:28:03,320 --> 00:28:06,520
Speaker 1: the yield curve, they've they've already dramatically tighten financial conditions.

495
00:28:06,840 --> 00:28:10,040
Speaker 1: UM so, so they're reaping the benefit of um, the

496
00:28:10,040 --> 00:28:13,800
Speaker 1: expectation of this talkish policy without actually having to implement it.

497
00:28:14,400 --> 00:28:17,840
Speaker 1: The consumer Price Index, well that's one thing, but we uh,

498
00:28:17,840 --> 00:28:19,920
Speaker 1: do we get a better picture of what to expect

499
00:28:19,920 --> 00:28:23,480
Speaker 1: from company margins, uh the input prices with the PPI

500
00:28:23,560 --> 00:28:27,360
Speaker 1: this morning? I think we will. And what we've seen

501
00:28:27,359 --> 00:28:30,680
Speaker 1: is the PPI has been running ahead of CPI, reflecting

502
00:28:30,880 --> 00:28:33,560
Speaker 1: I think the pressure that companies have been seeing. One

503
00:28:33,600 --> 00:28:35,439
Speaker 1: thing I think that's important to keep in mind is

504
00:28:35,480 --> 00:28:39,560
Speaker 1: there's a fixed cost point for many companies, particularly old

505
00:28:39,920 --> 00:28:45,560
Speaker 1: economy or value oriented companies, which actually can lever machinery

506
00:28:45,720 --> 00:28:48,800
Speaker 1: and equipment and land and in in real estate, in

507
00:28:48,920 --> 00:28:52,280
Speaker 1: other long life assets. So for those companies, they don't

508
00:28:52,280 --> 00:28:55,120
Speaker 1: need to pass through everything to reap the margin benefits.

509
00:28:55,160 --> 00:28:56,720
Speaker 1: But I think it does point to some of the

510
00:28:56,760 --> 00:28:59,000
Speaker 1: margin pressures. And I think labors are big input which

511
00:28:59,080 --> 00:29:01,720
Speaker 1: doesn't oftentimes get cash in the CPI, but remains a

512
00:29:01,760 --> 00:29:05,440
Speaker 1: big input to companies right now. I think margins, you know,

513
00:29:05,520 --> 00:29:08,800
Speaker 1: are incrementally under pressure for certain groups UM. But I

514
00:29:08,800 --> 00:29:11,520
Speaker 1: think value oriented names are still able to weather the

515
00:29:11,560 --> 00:29:14,440
Speaker 1: margin pressures that we're seeing. Yeah, what's the next big thing?

516
00:29:14,480 --> 00:29:18,080
Speaker 1: You're going to be looking forward today? Again about thirty seconds, Well,

517
00:29:18,120 --> 00:29:21,600
Speaker 1: I think I think this week. Um. Ultimately we need

518
00:29:21,640 --> 00:29:24,920
Speaker 1: clarity on the course of of the FED hike, and

519
00:29:25,000 --> 00:29:27,880
Speaker 1: I think until we see volatility come in within the

520
00:29:27,920 --> 00:29:30,040
Speaker 1: interest rate area of the market, we're not going to

521
00:29:30,120 --> 00:29:33,480
Speaker 1: see equity of all decline. And until that point, it's

522
00:29:33,560 --> 00:29:35,600
Speaker 1: unlikely that we're going to see a maturely move forward

523
00:29:35,600 --> 00:29:38,400
Speaker 1: in futures. It could be as early as as wee day,

524
00:29:38,520 --> 00:29:40,880
Speaker 1: or could stick with us over the course at the summer.

525
00:29:40,880 --> 00:29:43,000
Speaker 1: But there is a chart forward out of this. It's

526
00:29:43,040 --> 00:29:46,240
Speaker 1: just a matter of one Patrick, Thanks appreciate it. Patrick.

527
00:29:46,320 --> 00:29:50,480
Speaker 1: Palfrey Eco had a quantitative research and senior equity strategies

528
00:29:50,520 --> 00:29:53,080
Speaker 1: to add credit sueeze and ahead of the cash open

529
00:29:53,120 --> 00:29:56,160
Speaker 1: of Wall Street after yesterday sell off, DAL futures of

530
00:29:56,280 --> 00:30:00,920
Speaker 1: one points, SMP futures twenty three points higher and the

531
00:30:01,000 --> 00:30:05,160
Speaker 1: nasday features up one hundred and five points. And you're

532
00:30:05,200 --> 00:30:18,040
Speaker 1: listening to Bloomberg day pray and the Bloomberg weather for

533
00:30:18,080 --> 00:30:21,240
Speaker 1: a meteorologist Ron Carolyn, some morning cloud's chance of a

534
00:30:21,320 --> 00:30:25,880
Speaker 1: stray sprinkle or isolated shower. Otherwise see partly Sunday Skies Today.

535
00:30:26,120 --> 00:30:33,960
Speaker 1: The high temperature eighty to eighty five degrees s L

536
00:30:34,040 --> 00:30:36,640
Speaker 1: five seven Wall Street. Time to bring in Michael Barr

537
00:30:36,720 --> 00:30:38,880
Speaker 1: with more on what else is going on in New

538
00:30:38,960 --> 00:30:41,760
Speaker 1: York hand around the world, John, Thank you very much.

539
00:30:41,800 --> 00:30:45,040
Speaker 1: New York has expanded legal protections for people seeking and

540
00:30:45,080 --> 00:30:48,440
Speaker 1: providing abortions in the state under legislation signed by Governor

541
00:30:48,520 --> 00:30:51,600
Speaker 1: Kathy Hokel. The Democratic governor pushed for the laws and

542
00:30:51,720 --> 00:30:55,120
Speaker 1: anticipation of the U. S. Supreme Court, potentially over ruling

543
00:30:55,120 --> 00:30:58,840
Speaker 1: it's ninety three Roe v. Way decision, which established a

544
00:30:58,880 --> 00:31:03,600
Speaker 1: constitutional rights. Abortion must the hard fought battles from my

545
00:31:04,400 --> 00:31:10,600
Speaker 1: mother's generation, my generation, my thirty year old daughter's generation

546
00:31:11,800 --> 00:31:17,600
Speaker 1: have to be inherited by my new granddaughter's generation as well. Well.

547
00:31:17,640 --> 00:31:22,200
Speaker 1: Apparently so, Governor Hukel says. One new law protects abortion

548
00:31:22,240 --> 00:31:26,200
Speaker 1: providers from arrest, extradition, and legal proceedings in other states

549
00:31:26,280 --> 00:31:30,320
Speaker 1: by forbidding New York State from cooperating in most scenarios

550
00:31:30,360 --> 00:31:33,320
Speaker 1: for Republican candidates for New York governor faced off last

551
00:31:33,440 --> 00:31:36,440
Speaker 1: night in their first televised debate. With two weeks ago

552
00:31:36,560 --> 00:31:40,160
Speaker 1: until the state's primary election. Some of the sharpest exchanges

553
00:31:40,240 --> 00:31:43,600
Speaker 1: of the night came between US Representative Lee's Elden and

554
00:31:43,880 --> 00:31:47,200
Speaker 1: businessman Harry Wilson, who has said he didn't vote for

555
00:31:47,240 --> 00:31:51,560
Speaker 1: Donald Trump. In Zelden repeatedly assailed Wilson as a never

556
00:31:51,640 --> 00:31:55,280
Speaker 1: Trumper and a Republican in name only. I believe that

557
00:31:55,320 --> 00:31:57,400
Speaker 1: we're battling for the heart and soul of our country,

558
00:31:57,640 --> 00:31:59,840
Speaker 1: and it's not just the Democrats, but it's the rhino

559
00:32:00,080 --> 00:32:02,800
Speaker 1: Is like Harry Wilson, who are out there making sure

560
00:32:02,840 --> 00:32:04,640
Speaker 1: that we have this moment in time with one party

561
00:32:04,680 --> 00:32:09,440
Speaker 1: Democratic rule in Washington d C. Wilson responded, Now, Mr

562
00:32:09,640 --> 00:32:11,440
Speaker 1: Zelden is going to go onto a series of attack.

563
00:32:11,520 --> 00:32:13,240
Speaker 1: He saw him even before I had a chance to speak,

564
00:32:13,240 --> 00:32:15,320
Speaker 1: just like he started attacking before I in my campaign

565
00:32:15,640 --> 00:32:19,440
Speaker 1: because he's scared, because he's a broken candidate. Wilson claimed

566
00:32:19,480 --> 00:32:22,120
Speaker 1: that in January Zelden had asked him to be his

567
00:32:22,200 --> 00:32:25,440
Speaker 1: running mate. The Republican field air and on CBS two

568
00:32:25,520 --> 00:32:30,600
Speaker 1: also included former Westchester County Executive Rob Astorino and Andrew Giuliani,

569
00:32:30,680 --> 00:32:32,920
Speaker 1: the son of former New York City Mayor Rudy Giuliani.

570
00:32:33,280 --> 00:32:36,400
Speaker 1: Attorney General Merritt Garland confirms he is keeping an eye

571
00:32:36,400 --> 00:32:38,960
Speaker 1: on all of the House Committee's hearings on the January

572
00:32:39,000 --> 00:32:42,760
Speaker 1: sixth Capital Ryant. However, Garland is choosing not to elaborate

573
00:32:42,800 --> 00:32:46,440
Speaker 1: on the current status of a possible investigation against Donald Trump.

574
00:32:47,040 --> 00:32:51,120
Speaker 1: The Justice Department's longstanding position is that we don't commenting

575
00:32:51,640 --> 00:32:55,560
Speaker 1: don't comment an ongoing investigations. During a second day of hearings,

576
00:32:55,560 --> 00:32:59,760
Speaker 1: former Attorney General William barr said Trump seemed detached from reality.

577
00:33:00,120 --> 00:33:02,560
Speaker 1: Global news twenty four hours a day on air and

578
00:33:02,720 --> 00:33:05,640
Speaker 1: on Bloomberg quick Take, powered by more than twenty seven

579
00:33:05,680 --> 00:33:08,160
Speaker 1: hundred journalists and analysts, are more than a hundred twenty countries.

580
00:33:08,440 --> 00:33:15,480
Speaker 1: Michael BARRN, this is Bloomberg, John, Michael, thank you, sl

581
00:33:15,560 --> 00:33:18,640
Speaker 1: five cent overalls three. That's time for the Bloomberg Sports Update.

582
00:33:18,720 --> 00:33:21,640
Speaker 1: Here's Jo. Thanks John. The Golden State Warriors can win

583
00:33:21,680 --> 00:33:24,560
Speaker 1: the NBAH Championship Thursday in Boston. If they lose, they'll

584
00:33:24,600 --> 00:33:27,280
Speaker 1: have another chance of the game seven Sunday in San Francisco,

585
00:33:27,280 --> 00:33:30,080
Speaker 1: where last night the Warriors started the fourth quarter with

586
00:33:30,120 --> 00:33:32,640
Speaker 1: the ten nothing running. They won Game five by ten

587
00:33:32,800 --> 00:33:35,000
Speaker 1: one oh four ninety four. They leave the series three

588
00:33:35,000 --> 00:33:37,440
Speaker 1: to All five games have been won by at least

589
00:33:37,440 --> 00:33:40,400
Speaker 1: ten points. Andrew Wiggins led Golden State twenty six points,

590
00:33:40,560 --> 00:33:43,240
Speaker 1: play Thompson at twenty one. Steph Curry, who scored forty

591
00:33:43,280 --> 00:33:46,000
Speaker 1: three points in Game four, did not make a single

592
00:33:46,120 --> 00:33:48,600
Speaker 1: three pointer. That had not happened since November of two

593
00:33:48,680 --> 00:33:52,560
Speaker 1: thousand eighteen, two hundred and thirty three games ago Mets

594
00:33:52,600 --> 00:33:54,560
Speaker 1: back home for the road trip. They'll play Milwaukee, who

595
00:33:54,640 --> 00:33:56,840
Speaker 1: just ended an eight game losing street. The Yankees, winners

596
00:33:56,840 --> 00:33:58,760
Speaker 1: of a level of last twelve, host Tampa Bay. It's

597
00:33:58,800 --> 00:34:02,120
Speaker 1: Garrett Cole for says x Yang Corey Couver. Cole comes

598
00:34:02,120 --> 00:34:04,040
Speaker 1: off the outing where he gave up five home runs.

599
00:34:04,120 --> 00:34:07,240
Speaker 1: Josh Donaldson tonight will serve the one game suspension he

600
00:34:07,280 --> 00:34:09,760
Speaker 1: got for comments made to the White Sox Tim Anderson.

601
00:34:09,800 --> 00:34:14,600
Speaker 1: Donaldson's appeal was denied. US Open tas off Thursday. Brookline

602
00:34:14,640 --> 00:34:18,560
Speaker 1: mass All Eyes Yesterday on Phil Mickelson asked repeatedly about

603
00:34:18,600 --> 00:34:21,160
Speaker 1: his decision to leave the PGA Tour for the new

604
00:34:21,560 --> 00:34:24,200
Speaker 1: Saudi Back Live Tour and asked about doing that when

605
00:34:24,200 --> 00:34:27,320
Speaker 1: most of the nine eleven terrorists from Saudi Arabia, I

606
00:34:27,360 --> 00:34:33,120
Speaker 1: would say to everyone that U has lost loved ones, boss, friends,

607
00:34:33,120 --> 00:34:41,640
Speaker 1: and not eleven that I have deep, deep empathy for them. Um.

608
00:34:42,080 --> 00:34:44,560
Speaker 1: I can't emphasize that anomal All those that have joined

609
00:34:44,600 --> 00:34:46,759
Speaker 1: the live tour have been suspended by the PGA. The

610
00:34:46,880 --> 00:34:49,160
Speaker 1: U s g A runs the Open is allowing them

611
00:34:49,160 --> 00:34:51,120
Speaker 1: to play. Michelson's never won the Open, He's been a

612
00:34:51,200 --> 00:34:54,640
Speaker 1: second six times. John stash An Work bloom Brook Sports. John,

613
00:34:54,880 --> 00:34:57,080
Speaker 1: all right, thanks John. Ahead of the market open on

614
00:34:57,160 --> 00:35:02,440
Speaker 1: Wall Street, DALL futures four points higher, the SMP futures.

615
00:35:02,440 --> 00:35:06,560
Speaker 1: They're up sixteen. Masday futures after yesterday's sell off, up

616
00:35:07,680 --> 00:35:18,360
Speaker 1: seventies six points. You're listening to Bloomberg Daybreak, and just ahead,

617
00:35:18,400 --> 00:35:21,160
Speaker 1: we'll speak with Patrick Calfrey, the co head of Quantitative

618
00:35:21,200 --> 00:35:25,879
Speaker 1: research and senior equity strategist at Credit Swiss. He'll set

619
00:35:25,920 --> 00:35:33,719
Speaker 1: us out for today's trading live from the Bloomberg Interactive

620
00:35:33,719 --> 00:35:38,560
Speaker 1: Brokers Studios. This is Bloomberg day Break for Tuesday, June two,

621
00:35:38,640 --> 00:35:42,440
Speaker 1: Coming up this hour. US futures rebound after yesterday's massive

622
00:35:42,520 --> 00:35:45,040
Speaker 1: sell off. Traders bet the Fed could turn even more

623
00:35:45,120 --> 00:35:48,239
Speaker 1: hawkish it this week's policy meeting. Oil prices stay high

624
00:35:48,320 --> 00:35:51,880
Speaker 1: as President Biden prepares to visits Saudi Arabia, and Elon

625
00:35:51,960 --> 00:35:54,960
Speaker 1: Musk addresses Twitter staffers for the first time since his

626
00:35:55,080 --> 00:35:59,239
Speaker 1: takeover bed New York State expands protections from people seeking abortions.

627
00:35:59,239 --> 00:36:02,000
Speaker 1: Plust the Republic up in the governor candidates debate ahead

628
00:36:02,000 --> 00:36:05,040
Speaker 1: of the New York State primary. I'm Michael Barner Moore Ahead.

629
00:36:05,400 --> 00:36:07,719
Speaker 1: I'm John stash Our. In sports, the Warriors beat the

630
00:36:07,760 --> 00:36:10,239
Speaker 1: South fast. They leave the NBA Final three games at two.

631
00:36:10,280 --> 00:36:15,239
Speaker 1: The map of Yankees at home game tonight. That's all

632
00:36:15,360 --> 00:36:19,120
Speaker 1: STrenD ahead on Bloomberg Daybreak on Bloomberg eleven three on

633
00:36:19,200 --> 00:36:23,360
Speaker 1: New York, Bloomberg ninety nine one, Washington, d C, Bloomberg

634
00:36:23,360 --> 00:36:26,400
Speaker 1: one oh six one, Boston, Bloomberg nine sixty s and

635
00:36:26,480 --> 00:36:30,080
Speaker 1: Francisco Sirius x M one nine team, and around the

636
00:36:30,120 --> 00:36:33,440
Speaker 1: world on Bloomberg Radio dot Com and via the Bloomberg

637
00:36:33,440 --> 00:36:40,520
Speaker 1: Business Appay. Good morning, I'm John Tucker. I'm Nathan Hagar.

638
00:36:40,680 --> 00:36:43,600
Speaker 1: US futures are bouncing back this morning. It is coming

639
00:36:43,640 --> 00:36:45,520
Speaker 1: up to five oh one on Wall Street. We check

640
00:36:45,560 --> 00:36:48,480
Speaker 1: the markets every fifteen minutes during the trading day. On Bloomberg.

641
00:36:48,640 --> 00:36:50,479
Speaker 1: Right now, S and P futures are up twenty points.

642
00:36:50,520 --> 00:36:53,760
Speaker 1: STUFF futures up nine, NASTAC futures up ninety one points.

643
00:36:54,120 --> 00:36:56,640
Speaker 1: Dacks in Germany little change. The CACK in Paris is

644
00:36:56,680 --> 00:36:59,000
Speaker 1: down four tents of one percent ten. Your Treasury is

645
00:36:59,080 --> 00:37:01,879
Speaker 1: up thirteen thirty seal three point three zero percent yield

646
00:37:01,920 --> 00:37:04,720
Speaker 1: on the two year three point to seven percent. NIMEX

647
00:37:04,760 --> 00:37:06,879
Speaker 1: screwed is up three quarters of one percent of eighty

648
00:37:06,920 --> 00:37:10,359
Speaker 1: nine cents and eighty two cents of barrel comes goal

649
00:37:10,440 --> 00:37:12,839
Speaker 1: down three tenths percent, down five dollars ninety cents at

650
00:37:12,880 --> 00:37:16,680
Speaker 1: eight announced. The euro one point zero four six four

651
00:37:16,680 --> 00:37:18,320
Speaker 1: against the dollar in the end is at one thirty

652
00:37:18,320 --> 00:37:20,920
Speaker 1: four point to one John well Nathan. The SMP five

653
00:37:21,000 --> 00:37:24,160
Speaker 1: hundred finished yesterday's trading more than twenty percent below its

654
00:37:24,239 --> 00:37:28,400
Speaker 1: last record close, entering a bear market and ending a

655
00:37:28,520 --> 00:37:32,240
Speaker 1: two year bull run. Currently, SMB futures are up twenty

656
00:37:32,239 --> 00:37:36,839
Speaker 1: two points defiant. CYTS Chief Investment Officer Sylvia Jablonsky tails

657
00:37:36,920 --> 00:37:40,839
Speaker 1: US she expects more uncertainty moving forward. Inflation has been

658
00:37:40,840 --> 00:37:42,839
Speaker 1: hot for quite some time. It's going to remain hot

659
00:37:42,920 --> 00:37:45,799
Speaker 1: for quite some time, so until that eases up, we're

660
00:37:45,840 --> 00:37:48,520
Speaker 1: probably gonna have this folatility with US Chief defiance c

661
00:37:48,680 --> 00:37:51,800
Speaker 1: t F c I O Sylvia Jablonsky says inflation headwins

662
00:37:51,800 --> 00:37:55,080
Speaker 1: have gotten worse since Friday. CPI reading this quarter is

663
00:37:55,080 --> 00:37:57,760
Speaker 1: set to deliver the biggest combined loss for global bonds

664
00:37:57,800 --> 00:38:00,640
Speaker 1: and stocks on record. John The question for usters now

665
00:38:01,040 --> 00:38:03,319
Speaker 1: is whether the Fed and other central banks tip their

666
00:38:03,360 --> 00:38:06,879
Speaker 1: economies into recession to curb inflation. Central banks will get

667
00:38:06,880 --> 00:38:09,759
Speaker 1: further insight on prices today with the latest read on

668
00:38:09,920 --> 00:38:13,360
Speaker 1: May producer prices. That data is due at eight thirty

669
00:38:13,360 --> 00:38:15,799
Speaker 1: a m. All Street time, and also today, the FED

670
00:38:15,880 --> 00:38:19,960
Speaker 1: begins its two day policy meeting. Following Friday's hot inflation reading,

671
00:38:20,040 --> 00:38:23,000
Speaker 1: officials may consider a more hawkish ancest rate increase than

672
00:38:23,040 --> 00:38:27,680
Speaker 1: originally planned. Bloomberg's Michael McKee gives us a preview. Surprisingly

673
00:38:27,680 --> 00:38:31,759
Speaker 1: strong pickups in consumer prices and inflation expectations now look

674
00:38:31,800 --> 00:38:35,839
Speaker 1: likely to spur the biggest interest rate increase since Fed

675
00:38:35,920 --> 00:38:39,160
Speaker 1: officials had coalesced around a fifty basis point hike going

676
00:38:39,239 --> 00:38:42,279
Speaker 1: into their two day meeting, which begins this morning. But

677
00:38:42,360 --> 00:38:45,240
Speaker 1: a big rise in the May consumer price index coupled

678
00:38:45,239 --> 00:38:49,080
Speaker 1: with two surveys showing higher inflation becoming embedded in consumer

679
00:38:49,120 --> 00:38:53,439
Speaker 1: expectations pushed investors to increase bets on a seventy five

680
00:38:53,560 --> 00:38:57,800
Speaker 1: basis point increase. Those bets hardened following media reports Monday

681
00:38:58,000 --> 00:39:01,560
Speaker 1: the central bankers would consider the your move. Economists that

682
00:39:01,760 --> 00:39:05,360
Speaker 1: major Wall Street firms were quick to change their calls. Goldman,

683
00:39:05,440 --> 00:39:08,759
Speaker 1: No Mira, and JP Morgan Chase joined Barclays and Jeffreys

684
00:39:08,800 --> 00:39:12,000
Speaker 1: in forecasting a three quarters point move. The FED decision

685
00:39:12,040 --> 00:39:15,400
Speaker 1: will be announced at two pm Wall Street time on Wednesday.

686
00:39:15,440 --> 00:39:18,359
Speaker 1: Michael McKee, Bloomberg Gaybreak. All right, thanks Mike, and join

687
00:39:18,480 --> 00:39:20,920
Speaker 1: us for live coverage that FED decision on a special

688
00:39:21,040 --> 00:39:24,759
Speaker 1: editional Bloomberg surveillance that kicks off tomorrow at one p m.

689
00:39:24,880 --> 00:39:28,239
Speaker 1: Eastern Bloomberg Radio and Television. We'll meantime, John, Some big

690
00:39:28,320 --> 00:39:31,560
Speaker 1: US banks are signaling more concerned for the economy. Investor

691
00:39:31,640 --> 00:39:34,600
Speaker 1: fears of stagflation are the highest since the two thousand

692
00:39:34,680 --> 00:39:37,880
Speaker 1: eight financial crisis, while global growth optimism has sunk to

693
00:39:37,960 --> 00:39:40,680
Speaker 1: a record low. That's according to Bank of America's monthly

694
00:39:40,719 --> 00:39:44,239
Speaker 1: Fund manager survey. Morgan Stanley CEO James Gorman says he

695
00:39:44,320 --> 00:39:47,120
Speaker 1: sees the risk of US recession at about fifty fifty.

696
00:39:47,360 --> 00:39:49,960
Speaker 1: We'm likely at this stage to go into a deeper,

697
00:39:50,080 --> 00:39:53,960
Speaker 1: long recession. It's possible we go into recession obviously probably

698
00:39:55,400 --> 00:39:59,680
Speaker 1: now um, but that's that's okay. Morgan Stanley CEO James

699
00:39:59,719 --> 00:40:02,759
Speaker 1: Gorman made the comments yesterday at the Morgan Stanley US Financials,

700
00:40:02,760 --> 00:40:06,480
Speaker 1: Payments and c Are conference, and overseas stocks in Europe

701
00:40:06,520 --> 00:40:10,319
Speaker 1: treading water. They're not bouncing back from yesterday's losses. These

702
00:40:10,320 --> 00:40:13,600
Speaker 1: stocks Europe six hundred index right now down one point

703
00:40:14,080 --> 00:40:17,600
Speaker 1: and overnight in Asia, equity's followed US stocks lower. Bloomberg's

704
00:40:17,640 --> 00:40:20,640
Speaker 1: Juliet Sally joins US with the latest from Singapore. Juliet,

705
00:40:20,680 --> 00:40:23,200
Speaker 1: good morning, Good morning, John, and Nathan. The ms c

706
00:40:23,239 --> 00:40:25,440
Speaker 1: I Asia Pacific Index film more than one and a

707
00:40:25,480 --> 00:40:27,680
Speaker 1: half percent inge a day, with bosses from Japan to

708
00:40:27,840 --> 00:40:30,920
Speaker 1: China and Hong Kong all in the red. Australia underperformed.

709
00:40:30,960 --> 00:40:33,960
Speaker 1: Does that market played catch up? Following a public holiday Monday?

710
00:40:34,160 --> 00:40:36,320
Speaker 1: The Essex two hundred was down more than five percent

711
00:40:36,480 --> 00:40:38,799
Speaker 1: during the day's trade. It's worth session in more than

712
00:40:38,880 --> 00:40:42,359
Speaker 1: two years. Short dated bonds across the region slumped, while

713
00:40:42,400 --> 00:40:45,200
Speaker 1: the Bank of Japan boosted bond purchase operations to keep

714
00:40:45,280 --> 00:40:49,960
Speaker 1: yields in check. In Singapore, Juliet Sally Bloomberg, Debriak. All right, Juliette,

715
00:40:50,000 --> 00:40:51,960
Speaker 1: thank you for turning to crypto now. It's been another

716
00:40:52,040 --> 00:40:56,840
Speaker 1: wild ride there. Bitcoin dropped fifteen percent yesterday. Perhaps no

717
00:40:56,960 --> 00:40:59,360
Speaker 1: sectors seen a sell off sharper than the crypto market

718
00:40:59,440 --> 00:41:03,880
Speaker 1: right now, Big points trading at about and oil trading

719
00:41:03,920 --> 00:41:09,040
Speaker 1: around one of barrels. Investors weigh a tight supply outlook.

720
00:41:09,360 --> 00:41:11,720
Speaker 1: It comes as the White House plans for President Biden

721
00:41:11,719 --> 00:41:14,799
Speaker 1: to visit Saudi Arabia next month. The administration says it

722
00:41:14,880 --> 00:41:19,000
Speaker 1: won't press the kingdom to increase production, but SMP Global

723
00:41:19,120 --> 00:41:22,840
Speaker 1: Vice Chair Dan Jurgen says oil will beyond the agenda.

724
00:41:23,000 --> 00:41:24,640
Speaker 1: It's hard to believe that he would be going to

725
00:41:24,719 --> 00:41:27,440
Speaker 1: Saudia if it wasn't for oil. I think if he

726
00:41:27,520 --> 00:41:29,839
Speaker 1: does come, they'll start to put more oil to the market.

727
00:41:29,880 --> 00:41:32,080
Speaker 1: They've done done a little bit more. The thing is

728
00:41:32,120 --> 00:41:35,040
Speaker 1: that there isn't much more oil in Saudi Arabia and

729
00:41:35,400 --> 00:41:40,120
Speaker 1: the UAE to really significantly change the market. SMP Vice

730
00:41:40,200 --> 00:41:43,560
Speaker 1: Chair Dan Jurgen speaking to David Weston on Bloomberg's Balance

731
00:41:43,600 --> 00:41:46,680
Speaker 1: of Power. You can catch that program noon Wall Street

732
00:41:46,680 --> 00:41:50,000
Speaker 1: Time on Bloomberg Radio and TV staying in Washington, said

733
00:41:50,000 --> 00:41:52,560
Speaker 1: a Majority Leader Chuck Schumer says he'll move quickly to

734
00:41:52,640 --> 00:41:56,160
Speaker 1: get gun legislation past. Bloomberg said, Baxter has the story.

735
00:41:57,680 --> 00:42:00,920
Speaker 1: Schumer says, not everything, but a drew step forward, and

736
00:42:00,920 --> 00:42:03,440
Speaker 1: we have a lot of work left to do before

737
00:42:03,480 --> 00:42:06,680
Speaker 1: we actually pass a bill, So working on wording. Once

738
00:42:06,719 --> 00:42:09,839
Speaker 1: the text of this agreement is finalized, and I hope

739
00:42:09,840 --> 00:42:12,399
Speaker 1: it will be as soon as possible, I will put

740
00:42:12,400 --> 00:42:16,080
Speaker 1: this bill on the floor quickly. Schumer says it definitely

741
00:42:16,239 --> 00:42:19,720
Speaker 1: does add to safety in San Francisco. I'm at Baxter

742
00:42:19,800 --> 00:42:22,920
Speaker 1: Bloomberg daybreak, alright, ed, thank you. Right now, SMP futures

743
00:42:22,920 --> 00:42:25,480
Speaker 1: are up nineteen point, staff futures up a hundred thirteen

744
00:42:25,560 --> 00:42:29,080
Speaker 1: NASTAC futures up eighty four points after yesterday's big sell off.

745
00:42:29,320 --> 00:42:32,200
Speaker 1: Tenure treasury is up twelve thirty seconds, the yield three

746
00:42:32,200 --> 00:42:34,719
Speaker 1: point three one percent, yield on the two year three

747
00:42:34,760 --> 00:42:37,160
Speaker 1: point to eight percent, and I'm x screwed up seven

748
00:42:37,160 --> 00:42:39,239
Speaker 1: tenth percent or eighty six cents at a hundred twenty

749
00:42:39,280 --> 00:42:42,080
Speaker 1: one dollar seventy nine cents of verrel. We get may

750
00:42:42,160 --> 00:42:46,000
Speaker 1: producer prices at eight thirty Wall Street time, straight ahead,

751
00:42:46,000 --> 00:42:48,560
Speaker 1: your latest local headlines in the check of sports, this

752
00:42:48,840 --> 00:42:49,640
Speaker 1: is Bloomberg