Speaker 1: Markets, headlines and breaking news twenty four hours a day
Speaker 1: at Bloomberg dot com, The Bloomberg Business At and at
Speaker 1: Bloomberg Quick Takes a Bloomberg Business Flash. I'm Nathan Hagar.
Speaker 1: Stocks are poised for some relief this morning after the
Speaker 1: SMP five hundred race one point three trillion dollars in
Speaker 1: market capitalization yesterday closing in a bear market over worries
Speaker 1: the Federal Reserve will hurl the economy into recession. The
Speaker 1: FEDS Open Market Committee kicks off a two day interest
Speaker 1: rate setting meeting this morning. We check the markets every
Speaker 1: fifteen minutes during the trading day on Bloomberg. Right now,
Speaker 1: SMP futures are up twenty one point, staff futures up
Speaker 1: a hundred thirty four, Nastack futures are higher by ninety
Speaker 1: three points. The tenure Treasury is up nine thirty seconds.
Speaker 1: The yield three point three two percent. Yield on the
Speaker 1: two year is three point three zero percent. Nim X
Speaker 1: screwed up six tenths per cent, up seventy one cents
Speaker 1: at a hundred twenty one dollar sixty four cents a barrel.
Speaker 1: Comex gold is down four tenths per center, or six
Speaker 1: dollars fifty cents eight for announce of gold. The euro
Speaker 1: is at one point zero four four five against the dollar,
Speaker 1: British pound one point two one to six, and the
Speaker 1: yen is at one four point to six. Head of
Speaker 1: the FEDS meeting, we get one final read on inflation.
Speaker 1: This morning eight thirty am Wall Street Time the release
Speaker 1: of the May Producer Price Index. That is a Bloomberg
Speaker 1: business flash. Here's Michael Barnew with more on what's going
Speaker 1: on around the world. Michael, thank you very much, Nathan.
Speaker 1: Ukrainian President Vladimir z Lensky says the battle over the
Speaker 1: Donbas region will be one of the most brutal in
Speaker 1: European history. Ukrainian military officials say their troops have been
Speaker 1: pushed out of a key city in the East and
Speaker 1: are in desperate need of additional military aid. China has
Speaker 1: released a long detained Bloomberg News employee, Hayes Fan, has
Speaker 1: been released on bail after more than a year in detention.
Speaker 1: She was held on suspicion of national security law violations.
Speaker 1: The case remains under investigation while Fan is on bail
Speaker 1: pending trial. In Game five of the NBA Finals, and
Speaker 1: Celtics are on the brink of elimination. Boston lost to
Speaker 1: the Warriors one oh four ninety four in baseball. The
Speaker 1: Nationals in Oioles lost the Giants. One Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quick Take,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: more than a hundred twenty countries. Michael Barn This is Bloomberg, John, Michael,
Speaker 1: thank you, five forty nine on Wall Street. We are
Speaker 1: live from the Bloomberg Interact and Broker's studios. As you
Speaker 1: heard Nathan say, Monday's plunged, plunged, erased one point three
Speaker 1: trillion dollars in market capitalization. Uh, seeing some signs of
Speaker 1: relief this morning. Maybe We're joined now live by Bloomberg's
Speaker 1: Johanna Austin Gird Bloomberg News Cross Asset reporter. What do
Speaker 1: we need to see for signs of a capitulation in markets? Joanna? What?
Speaker 1: What are market participants telling you? Yeah? Well, John, you
Speaker 1: always look for something like elevated volatility and just a
Speaker 1: real d up where it looks like everybody's given up right,
Speaker 1: And so some people are saying, we need to say
Speaker 1: physics of a forty, for instance, and it's in the
Speaker 1: low thirties right now. But it's also true that, you know,
Speaker 1: there can be market dynamics that don't really make that happen,
Speaker 1: and you can have not quite a capitulation, but things
Speaker 1: still go up from there for a long time. So
Speaker 1: so we'll see. But at this point, a lot of
Speaker 1: people are saying it doesn't really look like everyone's given
Speaker 1: up quite yet. The p p I this morning, could
Speaker 1: that be even more important than the consumer price index
Speaker 1: for stocks and where we're gonna get a taste of
Speaker 1: margins for companies right, Yeah, definitely. And the main thing
Speaker 1: is it's kind of on top of the CPI, right
Speaker 1: that if you if you just had one thing in isolation,
Speaker 1: one might be more important to some people than another.
Speaker 1: But coming after everyone is so nervous now about what
Speaker 1: happened with the c p I, it looks like that
Speaker 1: could be really important. Becuse if everybody is already nervous that,
Speaker 1: you know, it'll just add to that if we see
Speaker 1: signs that inflation is really staying hot. All right, so
Speaker 1: what is the FED betting right now for tomorrow's meeting? Well,
Speaker 1: at the meeting starts today, but tomorrow's decision and the
Speaker 1: meeting's coming up. Mhmm. Yeah, it's pretty incredible that we're
Speaker 1: at basis points basically, with some people talking about a
Speaker 1: hundred I mean a full point the hike, So you know,
Speaker 1: there's a lot of uncertainty about it. But as people
Speaker 1: look at what the Fed had to do in the
Speaker 1: past to get inflation under control, and of course at
Speaker 1: that point, you're looking decades in the past, right, so
Speaker 1: things would have been a lot different in many ways.
Speaker 1: But we're looking at a pretty big hike at least
Speaker 1: in what markets sur pricing at this point. Yeah, we
Speaker 1: have a headstocks and bonds moving in tandem lower. So
Speaker 1: that kind of begs the question, what's the alternative for investors?
Speaker 1: Is it just cash at this point? Yeah, well, cash
Speaker 1: or if you try to get into kind of safe
Speaker 1: for stocks. Energy stocks have done pretty well this year,
Speaker 1: but it is hard to find a place to hide.
Speaker 1: Even hedges can be somewhat expensive. So yeah, investors have
Speaker 1: had a pretty rough time of it in the past
Speaker 1: little while here. Yeah, and with the rates in play
Speaker 1: and the rate differentials across the world, you see the
Speaker 1: dollar increasing and I as a cross asset reporter I
Speaker 1: gotta ask you, what does that do to dollar flows
Speaker 1: for foreign investments into the US that could, as they
Speaker 1: have in the past, prop up markets. Yeah, well, it
Speaker 1: definitely isn't great for a lot of nations, you know,
Speaker 1: like some of the Asian countries for instance. Um, but
Speaker 1: you know what I mean this this happened during the pandemic,
Speaker 1: the height of the pandemic as well. You get the nervousness,
Speaker 1: you get the dollar higher, and you know, some other
Speaker 1: currencies suffer. That affects the imports and exports. But overall,
Speaker 1: I mean, people are kind of figuring that there will
Speaker 1: be the the dollar will be stronger just because of
Speaker 1: what the Fed is doing, the yen weakening because go
Speaker 1: o j is kind of staying where it is. So yeah, um,
Speaker 1: it's not exactly easy, but that's somewhat anticipated. All Right, Joanna,
Speaker 1: always a pleasure appreciated from Singapore. That will explain the
Speaker 1: delay this morning. Joanna Hassager, Bloomberg News cross Asset reporter
Speaker 1: Nathan all Right, good to know, John. Thank you, five
Speaker 1: fifty three on Wall Street Time now for our Bloomberg
Speaker 1: Law Report. Let's get to the legal stories we're watching
Speaker 1: this morning. Here's Bloomberg's Jeff Balinger. The Government Accountability Office
Speaker 1: identified five new priority recommendations for the i r S,
Speaker 1: including a suggestion that the agency be more transparent about
Speaker 1: its backlog of unprocessed pack documents. A former a MC
Speaker 1: employee is proposing a class action against the theater chain
Speaker 1: because it pays workers in New York State on a
Speaker 1: bi weekly instead of a weekly basis. Former employees of
Speaker 1: the Wingstop chain or suing NCR in Illinois charging the
Speaker 1: cash registers that collect their fingerprints violated state privacy law.
Speaker 1: Bloomberg Law everything you need, all on one legal research platform,
Speaker 1: including guidance analysis and Bloomberg Market Intelligence. Find out more
Speaker 1: at Bloomberg Law dot com. All right, Jeff, thanks, Now,
Speaker 1: another legal story we're watching. Former President Jimmy Carter has
Speaker 1: stepped into an environmental dispute in Alaska. A three judge
Speaker 1: panel of the Ninth Circuit upheld a Trump era land
Speaker 1: swap that would allow an isolated town to build a
Speaker 1: road through a national wildlife refuge. It's part of the
Speaker 1: National park Lands established when Carter signed his landmark conservation Act,
Speaker 1: the Alaska National Interest Lands Conservation Act. Former President has
Speaker 1: filed a brief supporting conservations who want the full Ninth
Speaker 1: Circuit to rehear the case and for more. Bloomberg's June
Speaker 1: Grosso speaks with Pat Parentell, environmental law professor at the
Speaker 1: Vermont Law School, that it's not often that a former
Speaker 1: president puts himself in the middle of a legal battle.
Speaker 1: This road was part of the deal called a Nilka
Speaker 1: the Alaska Lands Bill, which Jimmy Carter famously signed, saving
Speaker 1: over a hundred million acres of pristine wilderness in Alaska.
Speaker 1: So the deal and a Nilka was you were going
Speaker 1: to put this road through the Tongas National Forest part
Speaker 1: of the Grand Compromise on the Alaska Lands Bill. And
Speaker 1: that's why Carter weighed in and say, wait a minute,
Speaker 1: you're renegging on the agreement that we reached. Do you
Speaker 1: agree with the argument that if this ruling is allowed
Speaker 1: to stand, then future secretaries of the Interior, future administrations
Speaker 1: could use this as a president to start carving up
Speaker 1: the land. You know, it creates a loophole, and you
Speaker 1: have to look at every instance of can you use
Speaker 1: the loophole to do something that isn't anticipated by the agreement?
Speaker 1: You know, in each case is different, but Yeah, I mean,
Speaker 1: any time you go back and revisit what I think
Speaker 1: it's fair to say that there was an agreement at
Speaker 1: that time that the Tongus was going to be left intact.
Speaker 1: It's the largest, by the way, the largest carbon forest
Speaker 1: in North America. It's that kind of really unique resource.
Speaker 1: So yeah, anytime you know, you can revisit a deal
Speaker 1: and open it up for further discussion, that raises the
Speaker 1: question of whether any deal is ever sacristans. It seems
Speaker 1: like it would be something the Ninth Circuit would take
Speaker 1: on bank since it was a two to one decision. Yeah,
Speaker 1: and it was kind of out there from the academic analysis,
Speaker 1: you know, the people that study that particular road project
Speaker 1: and its history have written that the Ninth Circuit should.
Speaker 1: In fact, there's a whole group of law professors on
Speaker 1: warm them signed an amicust brief saying you really to
Speaker 1: take another look at this because it goes against the
Speaker 1: deal that was cut back in the seventies. Tell us
Speaker 1: a little bit more about why you think the ruling
Speaker 1: of the three judge panel was not correct. They didn't
Speaker 1: give it really any deference to the original agreement that
Speaker 1: this forest was not going to be opened up. I mean,
Speaker 1: anytime you put a major road into a forest, you
Speaker 1: change it forever. I mean you get all kinds of
Speaker 1: traffic and all the activities that are associated with that.
Speaker 1: You know, roads introduced invasive species. There's all kinds of
Speaker 1: things that happened. You know, you access remote areas where
Speaker 1: they're grizzly bears and wolves, and then there's poaching, and
Speaker 1: so there's all kinds of negative consequences from roads. It
Speaker 1: isn't just the road itself. It's what the road brings
Speaker 1: into the forest. That's Pat Parente, environmental law professor at
Speaker 1: the Vermont Law School, speaking with Bloomberg's June Grass. How
Speaker 1: You can catch more of that interview, plus analysis of
Speaker 1: the latest legal news by subscribing to the Bloomberg Law
Speaker 1: Podcast or downloading the show at Bloomberg dot com slash podcast.
Speaker 1: Attorneys can find exceptional legal research and business development tools
Speaker 1: at Bloomberg Law dot com and on the Bloomberg terminal
Speaker 1: at blog Go. Bloomberg Daybreak continues. This is Bloomberg broadcasting
Speaker 1: live from the Bloomberg Interactive Broker Studio in New York.
Speaker 1: Bloomberg in Freedom to Washington, d C. Bloomberg to Boston,
Speaker 1: Bloomberg one oh six one to San Francisco, Bloomberg nine
Speaker 1: six to the country, Sirius XM to the one nine team,
Speaker 1: and around the globe, the Bloomberg Business app and Bloomberg
Speaker 1: Radio dot Com. This is Bloomberg Daybreak's five three on
Speaker 1: Wall Street. Good morning, I'm John Tucker and I'm Nathan Heger.
Speaker 1: We're about four hours away from the open of US training.
Speaker 1: Let's get you up to date on the news you
Speaker 1: need to know at this hour. The SMP five finished
Speaker 1: yesterday's trading more than twenty low, its last record close,
Speaker 1: entering a bear market. Currently, SMP futures are bouncing back.
Speaker 1: They're up eighteen points even with the sell off. Defiant
Speaker 1: c t F Chief investment Officer Sylvia Jablonsky tells us
Speaker 1: there is reason for optimism. We're in the first half
Speaker 1: of the year. It's not even over yet, although it
Speaker 1: feels like a decade, and earnings are still looking strong.
Speaker 1: Consumers strong, Carbor balance sheet are strong. I know there's
Speaker 1: a lot of debate about that, but the numbers and
Speaker 1: the big large you know, the larger macroeconomic factors are
Speaker 1: still fairly positive. Sylvia Jablonski, with Chief Definance c ETF,
Speaker 1: says investors could see higher returns this year if inflation
Speaker 1: and supply chain bottlenext ease still forward traders, It's all
Speaker 1: about the FED right now. The Central Bank begins it's
Speaker 1: today policy meeting. Today, reports indicate the Fed could raise
Speaker 1: rates by seventy five basis points. That would be the
Speaker 1: highest high since n Well ahead of that decision, John
Speaker 1: Big Us banks are signaling more concerned for the economy.
Speaker 1: Investor fears of stagflation at the highest since the two
Speaker 1: thousand and eight financial crisis, according to Bank of America's
Speaker 1: monthly fund manager Serve Morgan. Stanley CEO James Gorman says
Speaker 1: he sees the risk of a US OR session at
Speaker 1: about fifty attorney to oil. Crude is holding steady around
Speaker 1: one d twenty two dollars a barrel. Now we're learning
Speaker 1: the White House plans for President Biden to visit Saudi
Speaker 1: Arabia next month. SMP Global Vice chair Dan Jurgen says,
Speaker 1: even if the Kingdom increases production, it may not have
Speaker 1: much of an impact on prices. The markets are very tight,
Speaker 1: and so even though he would expect that with what's
Speaker 1: happened to the overall it seems to be happening to
Speaker 1: the overall economy is slowing, it's not showing up, and
Speaker 1: yet in demand for oil. SMP vice cheer Dan Jurgen
Speaker 1: speaking with David West on Bloomberg's Balance of Power. Catch
Speaker 1: the program weekdays at noon Eastern on Bloomberg Radio and TV.
Speaker 1: All right, let's turn to corporate news, John and to Twitter. Now.
Speaker 1: Elon Musk is set to address staff at the company
Speaker 1: directly this week. Bloomberg's Grenida Young joins US Live with Morgan.
Speaker 1: Good morning, Grenia, Good morning, Nathan Bloomberg. Sources say this
Speaker 1: will be the first time Elon Musk addresses Twitter employees
Speaker 1: since agreeing to buy the company for forty four billion dollars,
Speaker 1: and Musk will take quests at the Thursday morning virtual meeting.
Speaker 1: The company has been in a chaotic state since the
Speaker 1: deal was announced in April. Musk has been critical of
Speaker 1: the company, had questions the amount of spam accounts. Meantime,
Speaker 1: Twitter CEO has announced a series of cost cutting measures
Speaker 1: since the deal came together. Live in New York. I'm
Speaker 1: gonna need a young bloom birth day break. All right,
Speaker 1: thanks for data and ahead of the can show up
Speaker 1: on the Wall Street down the issues right now of
Speaker 1: one eight points, SMP futures of eighteen, that hast In
Speaker 1: futures of eighty five points, and that brings is three
Speaker 1: on Wall Street. Time to bring in Michael Barr with
Speaker 1: more on what else is going out of New York
Speaker 1: and around the world. John, Thank you very much, Sarah.
Speaker 1: New York has expanded legal protections for people seeking and
Speaker 1: providing abortions in the state. Governor Kathy Holcal signed legislation
Speaker 1: anticipation of the U Supreme Court potentially over ruling its
Speaker 1: three Roe v. Wade's decision, which established a constitutional right
Speaker 1: to abortion. This is to the right to control our
Speaker 1: own bodies was supposed to be well settled president by now,
Speaker 1: or so we thought. Governor Houkel says the new laws
Speaker 1: planned to give abortion providers thirty five million dollars to
Speaker 1: expand services and boost security and anticipation of an influx
Speaker 1: of out of state people seeking abortions in New York,
Speaker 1: Attorney General Merritt Garland confirmed he watched the committee's hearings
Speaker 1: closely on the January sixth Capitol riot, even as he
Speaker 1: faced his increased pressure to investigate former President Donald Trump.
Speaker 1: Garland didn't comment on the current status of a possible
Speaker 1: investigation against Trump, but at this point this investigation is proceeding,
Speaker 1: acquiring effects and the law a g Garland as Trump's
Speaker 1: top government officials and even his family were dismantling a
Speaker 1: false claim of twenty election fraud ahead of the January
Speaker 1: sixth attack on the Capitol. The four GOP candidates running
Speaker 1: for New York governor debated topics last night from crime,
Speaker 1: the economy, and former President Trump. During the debate aired
Speaker 1: on CBS two, Andrew Giuliani, the son of the former
Speaker 1: New York mayor, was asked about the hearings. You know,
Speaker 1: the media has been fixated on January six for the
Speaker 1: better part of a year and a half now, and
Speaker 1: I would like to see a Congressional hearing on the
Speaker 1: two hundred and seventy four riots that happened between May
Speaker 1: of and June of January five one, rather than just
Speaker 1: a one day where the video is completely focused on.
Speaker 1: Giuliani is a former advisor to Trump. Other candidates at
Speaker 1: the debates US Representative Lee Zelden, businessman Harry Wilson, and
Speaker 1: former Westchester County Executive Rob Astorino Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quicktake, powered
Speaker 1: by more than twenty seven hundred journalists and analysts more
Speaker 1: than a hundred twenty countries. Michael Barr and this is Bloomberg, John, Michael,
Speaker 1: thank you. It's now five thirty five on Wall Street
Speaker 1: and that's time to the Bloomberg Sports Update US John
Speaker 1: Stash all right, Johnny. Golden State Warriors, of course, led
Speaker 1: by Steph Curry. That was obvious in Game four in
Speaker 1: Boston when Curry scored forty three points, but last night,
Speaker 1: Curry did not make a single three pointer shot. Oh
Speaker 1: for night ends the streak of two hundred and thirty
Speaker 1: three games in a row with at least one dating
Speaker 1: back to November of two thousand eighteen, and the Warriors
Speaker 1: still won. They got twenty six points from Andrew Wiggins.
Speaker 1: They began the fourth quarter with a tend nothing run.
Speaker 1: They beat the Celtics one oh four ninety four first
Speaker 1: time in the playoffs. The Celtics have lost two in
Speaker 1: a row. Warriors lead in the NBA Finals three to
Speaker 1: Game six is Thursday in Boston. Golden State a chance
Speaker 1: to win a fourth championship in the last eight years.
Speaker 1: We'll see if NBA Commissioner Adam Silver can hand out
Speaker 1: the trophy. He missed last night's game COVID Protocols. Yankees
Speaker 1: and Mets both home tonight. Red hot Yanks host Tampa Bay.
Speaker 1: Since losing a couple of games to the Raise, The
Speaker 1: Yanks a going eleven and one Mets take on Milwaukee
Speaker 1: the Braves one again. They hit five home runs. They
Speaker 1: won nine five in Washington, although they lost Ozzie Albis
Speaker 1: to a broken foot Atlanta twelve and oh in June,
Speaker 1: and they have five games behind the Mets. Phil Mickelson
Speaker 1: met the media and ball as he gets ready to
Speaker 1: play the US Open that starts Thursday. Asked repeatedly about
Speaker 1: his decision to play the new Live tour. Field did
Speaker 1: mention the money, incredible financial commitment. But more than that, uh,
Speaker 1: for for all the players involved and everyone involved. But
Speaker 1: more than that, there are other factors that with fewer tournaments,
Speaker 1: it allows me to have more balance in my life.
Speaker 1: It allows me to do things that are off the
Speaker 1: golf course I've always wanted to do. He understands the criticism,
Speaker 1: including that from fellow players, are sticking the PA John
Speaker 1: stactually Bloomberg sports John, all right, thanks John, five thirty seven.
Speaker 1: Old Wall Street tied down for the Tri State Business Report.
Speaker 1: For that, we're joined by Bloomberg's query. Subway Restaurants is
Speaker 1: considering moving to Fairfield County, Connecticut, where its operations began,
Speaker 1: and leaving its current Milford headquarters. The sandwich chain says
Speaker 1: it's exploring options in northeastern Fairfield County to create a
Speaker 1: world class work environment for its employees. The International Brotherhood
Speaker 1: of Electrical Workers opposes a bill awaiting the signature of
Speaker 1: New York Governor Kathy Hoco. According to New York Focus,
Speaker 1: the measure would place a two year moratorium on new
Speaker 1: fossil fuel power plants that would be used by the
Speaker 1: crypto industry. The state of New Jersey is fighting over
Speaker 1: how to spend about eleven billion dollars in surprise tax revenue.
Speaker 1: Governor Phil Murphy says he wants to issue nine hundred
Speaker 1: million dollars in taxpayer relief checks, apply at least one
Speaker 1: point three billion dollars toward debt reduction, and save money
Speaker 1: for an emergency. Others disagree with his plan, though they
Speaker 1: say a financial crisis is approaching. That's your Bloomberg Try
Speaker 1: State Business Report. I'm Ed Corey. All right, thanks Aid
Speaker 1: on Wall Street. Bloomberg Radios on the year from San
Speaker 1: Francisco to New York, London to Hong Kong. Let's second
Speaker 1: now with our global news team for some of the
Speaker 1: top stories heard on our three hundred Affiligate radio stations
Speaker 1: around the world. I'm Steve Potas Ted Ted Winds in
Speaker 1: New York. We're talking about how the Bloomberg fed indecks
Speaker 1: finds bankers are not rushing back to the office amid
Speaker 1: a recent COVID surge. M Corneys on a Hoe on
Speaker 1: w h F and Looisville. The maker of Jack Daniels
Speaker 1: is planning to sell freemix. Jack and Cooke can podcast
Speaker 1: time Genus Servetti. And for w BBM in Chicago, I'm
Speaker 1: reporting that cash register maker NCR faces a potential class
Speaker 1: action in Illinois for allegedly collecting restaurant workers fingerprints without permission.
Speaker 1: Hi make Cory on w w J in Detroit. I'm
Speaker 1: reporting eleven Co America brankers in Michigan are closing. And
Speaker 1: those are some of the stories are Bloomberg journalists and
Speaker 1: analysts are working on this morning around the world is
Speaker 1: now five thirty nine on Wall Street. The following is
Speaker 1: an editorial from Bloomberg Opinion. For too long, a common
Speaker 1: sense agreement to fix America's gun laws has seemed out
Speaker 1: of reach. A new effort in Congress offers reason for optimism.
Speaker 1: This week, ten Senate Democrats and ten Republicans compromised on
Speaker 1: a framework for what will likely be the most significant
Speaker 1: gun control legislation the US has scene in years. Their
Speaker 1: plan won't please everyone, but there's no question it represents progress. Importantly,
Speaker 1: it will encourage states to enact red flag laws, which
Speaker 1: allow courts to temporarily remove firearms from individuals in crisis.
Speaker 1: It would also ensure that domestic violence records are more
Speaker 1: widely included in background checks and boost penalties for gun trafficking.
Speaker 1: The framework is modest, no doubt, and ought to be
Speaker 1: a starting point for wider change. But after a decade
Speaker 1: of Congressional inaction on gun safety, every step forward, big
Speaker 1: or small, should be welcomed. This editorial was written by
Speaker 1: the Bloomberg Opinion Editorial Board. I'm David Shipley. For more
Speaker 1: Bloomberg Opinion, please go to Bloomberg dot com. Slash opinion
Speaker 1: or OPA and go on the Bloomberg terminal. This has
Speaker 1: been Bloomberg Opinion. Bloomberg Opinion editorials can be heard every
Speaker 1: week day at this time, tribal customers can rebore at O, P,
Speaker 1: I N go now as a futures right now, after
Speaker 1: yesterday's massive sell off, they are up nineties six points
Speaker 1: SMP futures of two and at our futures right now
Speaker 1: one thirty five points higher. This is Bloomberg and the
Speaker 1: Bloomberg weather for it today from meteorologist Rob Caroline. Morning
Speaker 1: cloud's in the city with a chance of a stray
Speaker 1: sprinkle or maybe an isolated shower. Otherwise it's going to
Speaker 1: turn partly Sunday today. High temperature in the mid eighties. Markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com, the Bloomberg Business at and at Bloomberg
Speaker 1: Quick Tape. He's a Bloomberg Business Lash. I'm Nathan Hagar.
Speaker 1: Futures are bouncing back. Treasuries has sent a four day
Speaker 1: sell off, a market route driven by expectations of sharper
Speaker 1: Federal reserve interest rate hikes to fight inflation. Looks like
Speaker 1: it could be ending at least at the moment. We
Speaker 1: check the markets for you every fifteen minutes during the
Speaker 1: trading day on Bloomberg. Right now, it's a p futures
Speaker 1: are up sixteen points, Staff futures up ninety Nasty futures
Speaker 1: are higher by eighty points. The acts in Germany down
Speaker 1: three tenths of one percent now. The CAC in Paris
Speaker 1: is a lower by six tenths percent ten. Your treasury
Speaker 1: is up ten thirty seconds. The yield almost three point
Speaker 1: three two percent on the tenure note build on the
Speaker 1: two year three point three zero percent. Nim X screwed
Speaker 1: up about a half percent, up fifty four cents at
Speaker 1: a d twenty one dollar forty eight cents of barrel comes.
Speaker 1: Gold is down four tenths per cent, or seven dollar
Speaker 1: sixty cents at eighty announced. The euro one point zero
Speaker 1: four five five against the dollar British pound one point
Speaker 1: two one four eight. The end is at one thirty
Speaker 1: four point to four. Federal Reserve kicks off it's two
Speaker 1: day interest rate setting meeting this morning, a decision expected tomorrow.
Speaker 1: Ahead of all that, a final read on inflation eight
Speaker 1: thirty Wall Street time, when we get the May producer
Speaker 1: price index. That's a Bloomberg business flash. Now here's Michael
Speaker 1: Barr with more on what's going on around the world. Michael,
Speaker 1: good morning, Good morning. They Kim Donald Trump school US
Speaker 1: his campaign advisors were dismantling his false claims of twenty
Speaker 1: election fraud ahead of January sixth attack on the Capitol.
Speaker 1: During yesterday's House here In, former Attorney General William Barrs
Speaker 1: said the defeated presidents seemed detached from reality. President Joe
Speaker 1: Biden is sent to be traveling to Saudi Arabia next month.
Speaker 1: Biden plans to meet Crown Prince Mohammed ben Selman. China
Speaker 1: has released a long detained Bloomberg News employee, Hayes Found
Speaker 1: has been released on bail after more than a year
Speaker 1: in detention. She was held on suspicion of national security
Speaker 1: law violations. The case remains under investigation while Found is
Speaker 1: on bail pending trial. Game five of the NBA Finals,
Speaker 1: the Celtics are on the brink of elimination. Boston lost
Speaker 1: to the Warriors one oh four ninety four. In baseball,
Speaker 1: the Nationals in Oioles lost the Giants. One. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg
Speaker 1: Quick Take, powered by more than twenty seven hundred journalist
Speaker 1: and analysts and more than a hundred twenty countries. How
Speaker 1: Michael Barr, this is Bloomberg done right, Michael, thank you.
Speaker 1: It is now five twity on Wall Street. We're live
Speaker 1: from the Bloomberg Interact of Brokers Studios. This is Bloomberg Daybreak.
Speaker 1: The SMP five d erased one point three trillion dollars
Speaker 1: in market capitalization and closed in a bear market. So
Speaker 1: what's next. Let's get you set up for the trading
Speaker 1: day ahead. We're joined by Patrick Palfrey, co had of
Speaker 1: Quantitative Research and senior equity strategist at Credit Sweets. Patrick,
Speaker 1: do you see signs of capitulation in the markets? Well,
Speaker 1: there are certainly signs of capitulation yesterday. I think what's
Speaker 1: interesting when you look at the price action amongst sector,
Speaker 1: you see that energy was among the worst performing sectors,
Speaker 1: despite the fact that we didn't see any material move
Speaker 1: in oil. And I think what it comes down to
Speaker 1: is the the pain that a lot of individuals are
Speaker 1: seeing on Wall Street and the areas where they have
Speaker 1: the ability to take profits, and that's I think why
Speaker 1: we saw them probably move more aggressively than I there's
Speaker 1: other sectors, but I think we we do see signs
Speaker 1: of capitulation. Whether or not it is design of capitulation
Speaker 1: that investors are looking for, I think that remains to
Speaker 1: be seen, particularly with the volatility we're seeing not only
Speaker 1: with equities, but within UH commodities, within currencies, and probably
Speaker 1: most importantly within fixed income areas of the market. Yeah,
Speaker 1: and VIX, the Wall Street fear gage that's been elevated
Speaker 1: but still only around thirty two. Does that need to
Speaker 1: go much higher before we might see a bottom. Well,
Speaker 1: I think the VIX moving higher from here is going
Speaker 1: to be more difficult. What we're actually seeing right now
Speaker 1: is that it should be more elevated. UM. When you
Speaker 1: look at realized ball versus traditional VIX, what you see
Speaker 1: is realized ball is typically six points lower given the
Speaker 1: cost of hedging in in the VIX, and what we're
Speaker 1: seeing is that two of them are actually pretty close
Speaker 1: to par. And what that reflects is actually the demand
Speaker 1: for downside protection UH put buying, as judged by this
Speaker 1: Skew index is actually UM not nearly as elevated as
Speaker 1: we would have expected, and it really reflects the fact
Speaker 1: that we've had an elevated VIX for a while. Many
Speaker 1: hedge funds have taken down the risk profiles of the book,
Speaker 1: so they need to UH dramatically hedge their positions is
Speaker 1: actually diminished, and that's why we're not seeing the VIX
Speaker 1: as high as it needs to be, and I don't
Speaker 1: think we're really going to see it move much higher
Speaker 1: from here. Okay, so what is the course they had
Speaker 1: for the feeder reserve? Well, I think we look out
Speaker 1: to this week's meeting. There's there's a lot of talk
Speaker 1: potentially of seventy five basis points, even discussed in the clients.
Speaker 1: I hear the possibility of of a whole point move
Speaker 1: in UH. In reality, I think the set has been
Speaker 1: incredibly meticulous and how they're telegraphing their response. I don't
Speaker 1: think that we're going to see a one percent move.
Speaker 1: I do think it is possible to see seven five
Speaker 1: basis points, but it's hard for me do envisioned something
Speaker 1: beyond that, just given how careful this that has been
Speaker 1: in crafting their message and the fact that they've actually
Speaker 1: accomplished much of their goals here. When you look at
Speaker 1: the yield curve, they've they've already dramatically tighten financial conditions.
Speaker 1: UM so, so they're reaping the benefit of um, the
Speaker 1: expectation of this talkish policy without actually having to implement it.
Speaker 1: The consumer Price Index, well that's one thing, but we uh,
Speaker 1: do we get a better picture of what to expect
Speaker 1: from company margins, uh the input prices with the PPI
Speaker 1: this morning? I think we will. And what we've seen
Speaker 1: is the PPI has been running ahead of CPI, reflecting
Speaker 1: I think the pressure that companies have been seeing. One
Speaker 1: thing I think that's important to keep in mind is
Speaker 1: there's a fixed cost point for many companies, particularly old
Speaker 1: economy or value oriented companies, which actually can lever machinery
Speaker 1: and equipment and land and in in real estate, in
Speaker 1: other long life assets. So for those companies, they don't
Speaker 1: need to pass through everything to reap the margin benefits.
Speaker 1: But I think it does point to some of the
Speaker 1: margin pressures. And I think labors are big input which
Speaker 1: doesn't oftentimes get cash in the CPI, but remains a
Speaker 1: big input to companies right now. I think margins, you know,
Speaker 1: are incrementally under pressure for certain groups UM. But I
Speaker 1: think value oriented names are still able to weather the
Speaker 1: margin pressures that we're seeing. Yeah, what's the next big thing?
Speaker 1: You're going to be looking forward today? Again about thirty seconds, Well,
Speaker 1: I think I think this week. Um. Ultimately we need
Speaker 1: clarity on the course of of the FED hike, and
Speaker 1: I think until we see volatility come in within the
Speaker 1: interest rate area of the market, we're not going to
Speaker 1: see equity of all decline. And until that point, it's
Speaker 1: unlikely that we're going to see a maturely move forward
Speaker 1: in futures. It could be as early as as wee day,
Speaker 1: or could stick with us over the course at the summer.
Speaker 1: But there is a chart forward out of this. It's
Speaker 1: just a matter of one Patrick, Thanks appreciate it. Patrick.
Speaker 1: Palfrey Eco had a quantitative research and senior equity strategies
Speaker 1: to add credit sueeze and ahead of the cash open
Speaker 1: of Wall Street after yesterday sell off, DAL futures of
Speaker 1: one points, SMP futures twenty three points higher and the
Speaker 1: nasday features up one hundred and five points. And you're
Speaker 1: listening to Bloomberg day pray and the Bloomberg weather for
Speaker 1: a meteorologist Ron Carolyn, some morning cloud's chance of a
Speaker 1: stray sprinkle or isolated shower. Otherwise see partly Sunday Skies Today.
Speaker 1: The high temperature eighty to eighty five degrees s L
Speaker 1: five seven Wall Street. Time to bring in Michael Barr
Speaker 1: with more on what else is going on in New
Speaker 1: York hand around the world, John, Thank you very much.
Speaker 1: New York has expanded legal protections for people seeking and
Speaker 1: providing abortions in the state under legislation signed by Governor
Speaker 1: Kathy Hokel. The Democratic governor pushed for the laws and
Speaker 1: anticipation of the U. S. Supreme Court, potentially over ruling
Speaker 1: it's ninety three Roe v. Way decision, which established a
Speaker 1: constitutional rights. Abortion must the hard fought battles from my
Speaker 1: mother's generation, my generation, my thirty year old daughter's generation
Speaker 1: have to be inherited by my new granddaughter's generation as well. Well.
Speaker 1: Apparently so, Governor Hukel says. One new law protects abortion
Speaker 1: providers from arrest, extradition, and legal proceedings in other states
Speaker 1: by forbidding New York State from cooperating in most scenarios
Speaker 1: for Republican candidates for New York governor faced off last
Speaker 1: night in their first televised debate. With two weeks ago
Speaker 1: until the state's primary election. Some of the sharpest exchanges
Speaker 1: of the night came between US Representative Lee's Elden and
Speaker 1: businessman Harry Wilson, who has said he didn't vote for
Speaker 1: Donald Trump. In Zelden repeatedly assailed Wilson as a never
Speaker 1: Trumper and a Republican in name only. I believe that
Speaker 1: we're battling for the heart and soul of our country,
Speaker 1: and it's not just the Democrats, but it's the rhino
Speaker 1: Is like Harry Wilson, who are out there making sure
Speaker 1: that we have this moment in time with one party
Speaker 1: Democratic rule in Washington d C. Wilson responded, Now, Mr
Speaker 1: Zelden is going to go onto a series of attack.
Speaker 1: He saw him even before I had a chance to speak,
Speaker 1: just like he started attacking before I in my campaign
Speaker 1: because he's scared, because he's a broken candidate. Wilson claimed
Speaker 1: that in January Zelden had asked him to be his
Speaker 1: running mate. The Republican field air and on CBS two
Speaker 1: also included former Westchester County Executive Rob Astorino and Andrew Giuliani,
Speaker 1: the son of former New York City Mayor Rudy Giuliani.
Speaker 1: Attorney General Merritt Garland confirms he is keeping an eye
Speaker 1: on all of the House Committee's hearings on the January
Speaker 1: sixth Capital Ryant. However, Garland is choosing not to elaborate
Speaker 1: on the current status of a possible investigation against Donald Trump.
Speaker 1: The Justice Department's longstanding position is that we don't commenting
Speaker 1: don't comment an ongoing investigations. During a second day of hearings,
Speaker 1: former Attorney General William barr said Trump seemed detached from reality.
Speaker 1: Global news twenty four hours a day on air and
Speaker 1: on Bloomberg quick Take, powered by more than twenty seven
Speaker 1: hundred journalists and analysts, are more than a hundred twenty countries.
Speaker 1: Michael BARRN, this is Bloomberg, John, Michael, thank you, sl
Speaker 1: five cent overalls three. That's time for the Bloomberg Sports Update.
Speaker 1: Here's Jo. Thanks John. The Golden State Warriors can win
Speaker 1: the NBAH Championship Thursday in Boston. If they lose, they'll
Speaker 1: have another chance of the game seven Sunday in San Francisco,
Speaker 1: where last night the Warriors started the fourth quarter with
Speaker 1: the ten nothing running. They won Game five by ten
Speaker 1: one oh four ninety four. They leave the series three
Speaker 1: to All five games have been won by at least
Speaker 1: ten points. Andrew Wiggins led Golden State twenty six points,
Speaker 1: play Thompson at twenty one. Steph Curry, who scored forty
Speaker 1: three points in Game four, did not make a single
Speaker 1: three pointer. That had not happened since November of two
Speaker 1: thousand eighteen, two hundred and thirty three games ago Mets
Speaker 1: back home for the road trip. They'll play Milwaukee, who
Speaker 1: just ended an eight game losing street. The Yankees, winners
Speaker 1: of a level of last twelve, host Tampa Bay. It's
Speaker 1: Garrett Cole for says x Yang Corey Couver. Cole comes
Speaker 1: off the outing where he gave up five home runs.
Speaker 1: Josh Donaldson tonight will serve the one game suspension he
Speaker 1: got for comments made to the White Sox Tim Anderson.
Speaker 1: Donaldson's appeal was denied. US Open tas off Thursday. Brookline
Speaker 1: mass All Eyes Yesterday on Phil Mickelson asked repeatedly about
Speaker 1: his decision to leave the PGA Tour for the new
Speaker 1: Saudi Back Live Tour and asked about doing that when
Speaker 1: most of the nine eleven terrorists from Saudi Arabia, I
Speaker 1: would say to everyone that U has lost loved ones, boss, friends,
Speaker 1: and not eleven that I have deep, deep empathy for them. Um.
Speaker 1: I can't emphasize that anomal All those that have joined
Speaker 1: the live tour have been suspended by the PGA. The
Speaker 1: U s g A runs the Open is allowing them
Speaker 1: to play. Michelson's never won the Open, He's been a
Speaker 1: second six times. John stash An Work bloom Brook Sports. John,
Speaker 1: all right, thanks John. Ahead of the market open on
Speaker 1: Wall Street, DALL futures four points higher, the SMP futures.
Speaker 1: They're up sixteen. Masday futures after yesterday's sell off, up
Speaker 1: seventies six points. You're listening to Bloomberg Daybreak, and just ahead,
Speaker 1: we'll speak with Patrick Calfrey, the co head of Quantitative
Speaker 1: research and senior equity strategist at Credit Swiss. He'll set
Speaker 1: us out for today's trading live from the Bloomberg Interactive
Speaker 1: Brokers Studios. This is Bloomberg day Break for Tuesday, June two,
Speaker 1: Coming up this hour. US futures rebound after yesterday's massive
Speaker 1: sell off. Traders bet the Fed could turn even more
Speaker 1: hawkish it this week's policy meeting. Oil prices stay high
Speaker 1: as President Biden prepares to visits Saudi Arabia, and Elon
Speaker 1: Musk addresses Twitter staffers for the first time since his
Speaker 1: takeover bed New York State expands protections from people seeking abortions.
Speaker 1: Plust the Republic up in the governor candidates debate ahead
Speaker 1: of the New York State primary. I'm Michael Barner Moore Ahead.
Speaker 1: I'm John stash Our. In sports, the Warriors beat the
Speaker 1: South fast. They leave the NBA Final three games at two.
Speaker 1: The map of Yankees at home game tonight. That's all
Speaker 1: STrenD ahead on Bloomberg Daybreak on Bloomberg eleven three on
Speaker 1: New York, Bloomberg ninety nine one, Washington, d C, Bloomberg
Speaker 1: one oh six one, Boston, Bloomberg nine sixty s and
Speaker 1: Francisco Sirius x M one nine team, and around the
Speaker 1: world on Bloomberg Radio dot Com and via the Bloomberg
Speaker 1: Business Appay. Good morning, I'm John Tucker. I'm Nathan Hagar.
Speaker 1: US futures are bouncing back this morning. It is coming
Speaker 1: up to five oh one on Wall Street. We check
Speaker 1: the markets every fifteen minutes during the trading day. On Bloomberg.
Speaker 1: Right now, S and P futures are up twenty points.
Speaker 1: STUFF futures up nine, NASTAC futures up ninety one points.
Speaker 1: Dacks in Germany little change. The CACK in Paris is
Speaker 1: down four tents of one percent ten. Your Treasury is
Speaker 1: up thirteen thirty seal three point three zero percent yield
Speaker 1: on the two year three point to seven percent. NIMEX
Speaker 1: screwed is up three quarters of one percent of eighty
Speaker 1: nine cents and eighty two cents of barrel comes goal
Speaker 1: down three tenths percent, down five dollars ninety cents at
Speaker 1: eight announced. The euro one point zero four six four
Speaker 1: against the dollar in the end is at one thirty
Speaker 1: four point to one John well Nathan. The SMP five
Speaker 1: hundred finished yesterday's trading more than twenty percent below its
Speaker 1: last record close, entering a bear market and ending a
Speaker 1: two year bull run. Currently, SMB futures are up twenty
Speaker 1: two points defiant. CYTS Chief Investment Officer Sylvia Jablonsky tails
Speaker 1: US she expects more uncertainty moving forward. Inflation has been
Speaker 1: hot for quite some time. It's going to remain hot
Speaker 1: for quite some time, so until that eases up, we're
Speaker 1: probably gonna have this folatility with US Chief defiance c
Speaker 1: t F c I O Sylvia Jablonsky says inflation headwins
Speaker 1: have gotten worse since Friday. CPI reading this quarter is
Speaker 1: set to deliver the biggest combined loss for global bonds
Speaker 1: and stocks on record. John The question for usters now
Speaker 1: is whether the Fed and other central banks tip their
Speaker 1: economies into recession to curb inflation. Central banks will get
Speaker 1: further insight on prices today with the latest read on
Speaker 1: May producer prices. That data is due at eight thirty
Speaker 1: a m. All Street time, and also today, the FED
Speaker 1: begins its two day policy meeting. Following Friday's hot inflation reading,
Speaker 1: officials may consider a more hawkish ancest rate increase than
Speaker 1: originally planned. Bloomberg's Michael McKee gives us a preview. Surprisingly
Speaker 1: strong pickups in consumer prices and inflation expectations now look
Speaker 1: likely to spur the biggest interest rate increase since Fed
Speaker 1: officials had coalesced around a fifty basis point hike going
Speaker 1: into their two day meeting, which begins this morning. But
Speaker 1: a big rise in the May consumer price index coupled
Speaker 1: with two surveys showing higher inflation becoming embedded in consumer
Speaker 1: expectations pushed investors to increase bets on a seventy five
Speaker 1: basis point increase. Those bets hardened following media reports Monday
Speaker 1: the central bankers would consider the your move. Economists that
Speaker 1: major Wall Street firms were quick to change their calls. Goldman,
Speaker 1: No Mira, and JP Morgan Chase joined Barclays and Jeffreys
Speaker 1: in forecasting a three quarters point move. The FED decision
Speaker 1: will be announced at two pm Wall Street time on Wednesday.
Speaker 1: Michael McKee, Bloomberg Gaybreak. All right, thanks Mike, and join
Speaker 1: us for live coverage that FED decision on a special
Speaker 1: editional Bloomberg surveillance that kicks off tomorrow at one p m.
Speaker 1: Eastern Bloomberg Radio and Television. We'll meantime, John, Some big
Speaker 1: US banks are signaling more concerned for the economy. Investor
Speaker 1: fears of stagflation are the highest since the two thousand
Speaker 1: eight financial crisis, while global growth optimism has sunk to
Speaker 1: a record low. That's according to Bank of America's monthly
Speaker 1: Fund manager survey. Morgan Stanley CEO James Gorman says he
Speaker 1: sees the risk of US recession at about fifty fifty.
Speaker 1: We'm likely at this stage to go into a deeper,
Speaker 1: long recession. It's possible we go into recession obviously probably
Speaker 1: now um, but that's that's okay. Morgan Stanley CEO James
Speaker 1: Gorman made the comments yesterday at the Morgan Stanley US Financials,
Speaker 1: Payments and c Are conference, and overseas stocks in Europe
Speaker 1: treading water. They're not bouncing back from yesterday's losses. These
Speaker 1: stocks Europe six hundred index right now down one point
Speaker 1: and overnight in Asia, equity's followed US stocks lower. Bloomberg's
Speaker 1: Juliet Sally joins US with the latest from Singapore. Juliet,
Speaker 1: good morning, Good morning, John, and Nathan. The ms c
Speaker 1: I Asia Pacific Index film more than one and a
Speaker 1: half percent inge a day, with bosses from Japan to
Speaker 1: China and Hong Kong all in the red. Australia underperformed.
Speaker 1: Does that market played catch up? Following a public holiday Monday?
Speaker 1: The Essex two hundred was down more than five percent
Speaker 1: during the day's trade. It's worth session in more than
Speaker 1: two years. Short dated bonds across the region slumped, while
Speaker 1: the Bank of Japan boosted bond purchase operations to keep
Speaker 1: yields in check. In Singapore, Juliet Sally Bloomberg, Debriak. All right, Juliette,
Speaker 1: thank you for turning to crypto now. It's been another
Speaker 1: wild ride there. Bitcoin dropped fifteen percent yesterday. Perhaps no
Speaker 1: sectors seen a sell off sharper than the crypto market
Speaker 1: right now, Big points trading at about and oil trading
Speaker 1: around one of barrels. Investors weigh a tight supply outlook.
Speaker 1: It comes as the White House plans for President Biden
Speaker 1: to visit Saudi Arabia next month. The administration says it
Speaker 1: won't press the kingdom to increase production, but SMP Global
Speaker 1: Vice Chair Dan Jurgen says oil will beyond the agenda.
Speaker 1: It's hard to believe that he would be going to
Speaker 1: Saudia if it wasn't for oil. I think if he
Speaker 1: does come, they'll start to put more oil to the market.
Speaker 1: They've done done a little bit more. The thing is
Speaker 1: that there isn't much more oil in Saudi Arabia and
Speaker 1: the UAE to really significantly change the market. SMP Vice
Speaker 1: Chair Dan Jurgen speaking to David Weston on Bloomberg's Balance
Speaker 1: of Power. You can catch that program noon Wall Street
Speaker 1: Time on Bloomberg Radio and TV staying in Washington, said
Speaker 1: a Majority Leader Chuck Schumer says he'll move quickly to
Speaker 1: get gun legislation past. Bloomberg said, Baxter has the story.
Speaker 1: Schumer says, not everything, but a drew step forward, and
Speaker 1: we have a lot of work left to do before
Speaker 1: we actually pass a bill, So working on wording. Once
Speaker 1: the text of this agreement is finalized, and I hope
Speaker 1: it will be as soon as possible, I will put
Speaker 1: this bill on the floor quickly. Schumer says it definitely
Speaker 1: does add to safety in San Francisco. I'm at Baxter
Speaker 1: Bloomberg daybreak, alright, ed, thank you. Right now, SMP futures
Speaker 1: are up nineteen point, staff futures up a hundred thirteen
Speaker 1: NASTAC futures up eighty four points after yesterday's big sell off.
Speaker 1: Tenure treasury is up twelve thirty seconds, the yield three
Speaker 1: point three one percent, yield on the two year three
Speaker 1: point to eight percent, and I'm x screwed up seven
Speaker 1: tenth percent or eighty six cents at a hundred twenty
Speaker 1: one dollar seventy nine cents of verrel. We get may
Speaker 1: producer prices at eight thirty Wall Street time, straight ahead,
Speaker 1: your latest local headlines in the check of sports, this
Speaker 1: is Bloomberg