WEBVTT - Bloomberg Daybreak: April 25, 2022 - Hour 1 (Radio) 0:00:01.600 --> 0:00:05.000 My from the Bloomberg Interactive Berger Studios. This is Bloomberg 0:00:05.040 --> 0:00:08.879 day Break for Monday, April two. Coming up this hour, 0:00:09.119 --> 0:00:12.200 Secretary of State b Lincoln and Defense Secretary Austin meet 0:00:12.240 --> 0:00:16.600 with Ukrainian President vladimir's Olinsky in Keene. Emmanuel mcrown wins 0:00:16.640 --> 0:00:20.320 another term as French president. Stocks in China plunge on 0:00:20.400 --> 0:00:24.680 COVID concerns, and Twitter grows more receptive toward Elon Musk's 0:00:24.720 --> 0:00:28.040 takeover offer. New York City firefighter has noted in the 0:00:28.080 --> 0:00:30.360 line of duty. Plus the Supreme Court is set to 0:00:30.400 --> 0:00:33.639 here arguments involving a separation of church and state at 0:00:33.680 --> 0:00:36.880 Michael black More, I'm John Stage and sports the Mets 0:00:36.920 --> 0:00:41.159 and Yankees both one NBA playoff wins from Milwaukee, Miami, Denver, 0:00:41.320 --> 0:00:46.919 and New Orleans. That's all trading ahead on Bloomberg Daybreak 0:00:47.240 --> 0:00:51.560 on Bloomberg eleven, Free on New York, Bloomberg N one, Washington, 0:00:51.680 --> 0:00:55.320 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:55.360 --> 0:00:59.600 sixties and Francisco, Syrius x M one nineteen and around 0:00:59.600 --> 0:01:02.440 the world on Bloomberg Radio dot Com and via the 0:01:02.480 --> 0:01:09.960 Bloomberg Business app. Good Morning, I'm Nathan Hagart and I'm Karen. Moscow. 0:01:10.080 --> 0:01:12.880 US Dock Index futures are following this morning, coming up 0:01:12.880 --> 0:01:14.520 to five o one on Wall Street, and we checked 0:01:14.520 --> 0:01:17.560 the markets every fifteen minutes throughout the trading day. On Bloomberg, 0:01:17.680 --> 0:01:20.520 U S and P Future is down forty one point down, 0:01:20.560 --> 0:01:23.680 futures down A three hundred five and NASTAG futures down 0:01:23.680 --> 0:01:27.319 one D. Ten year treasury up thirty seconds, EL two 0:01:27.319 --> 0:01:29.800 point eight one percent and they yield on the two 0:01:29.880 --> 0:01:33.399 year two point five nine percent, and NIMEX screwed oil 0:01:33.600 --> 0:01:37.039 is down four point seven percent. Nathan, all right, Karen, 0:01:37.040 --> 0:01:39.000 we'll get back to markets in just a minute. But first, 0:01:39.080 --> 0:01:42.560 there is a significant diplomatic development in the war in Ukraine. 0:01:42.880 --> 0:01:45.640 Secretary of State Anthony B. Lincoln and the Fence Secretary 0:01:45.720 --> 0:01:49.000 Lloyd Austin met with President Vladimir z Olinsky in Kiev. 0:01:49.280 --> 0:01:52.120 They announced a hundred sixty five million dollars in ammunition 0:01:52.200 --> 0:01:55.440 sales and said US diplomats will return to Ukraine as 0:01:55.480 --> 0:01:58.600 soon as this week. Secretary B. Lincoln says Ukraine will 0:01:58.720 --> 0:02:03.000 prevail on the battlefield. Russia has already failed and Ukraine 0:02:03.000 --> 0:02:05.880 has already succeeded because the principal aim that the President 0:02:05.880 --> 0:02:08.920 Putin brought to this in his own words, was to 0:02:09.360 --> 0:02:12.880 fully subsume Ukraine back into Russia to take away its 0:02:12.880 --> 0:02:16.239 sovereigtine independence. And that has not happened and clearly will 0:02:16.240 --> 0:02:18.959 not have. Secretary of State Lincoln was joined by Defense 0:02:18.960 --> 0:02:21.840 Secretary Lloyd Austin, who says the US wants to ensure 0:02:21.919 --> 0:02:25.040 Russia remains weekend. It has already lost a lot of 0:02:25.080 --> 0:02:28.360 military capability and a lot of a lot of its troops, 0:02:28.440 --> 0:02:31.640 quite frankly, and we want to see them not have 0:02:31.760 --> 0:02:36.480 the capability to very quickly reproduce that capability. Secretaries Austin 0:02:36.520 --> 0:02:39.240 and Blincoln are the highest ranking US officials to visit 0:02:39.320 --> 0:02:42.800 Ukraine since Russia's invasion began. Well in France this morning, 0:02:42.880 --> 0:02:46.560 Nathan Politics Front and Center, Emmanuel mccron has won a 0:02:46.760 --> 0:02:50.200 second term as president and again more from Bloomberry's francing 0:02:50.240 --> 0:02:54.080 the Laqua in Paris. Immanuel mccorn defeated far right leader 0:02:54.120 --> 0:02:57.320 Behind le Ben on a pro business, pro European platform. 0:02:57.360 --> 0:02:59.639 He's the first sitting president to get a second term 0:02:59.639 --> 0:03:02.079 in twin t years. McCoy is on course to win 0:03:02.080 --> 0:03:06.040 about fifty eight percent of the vote compared with for Liepin, 0:03:06.200 --> 0:03:10.280 a narrower victory than their previous contest in twe The 0:03:10.360 --> 0:03:13.040 outcome is good news for investors who had predicted that 0:03:13.120 --> 0:03:15.840 a Liepin victory would deliver shock to markets on the 0:03:15.880 --> 0:03:18.360 scale of the UK's vote to leave the EU or 0:03:18.400 --> 0:03:20.800 the election of Donald Trump in the US, but the 0:03:20.919 --> 0:03:24.280 rise in support from behind Loepin's the Nationalist program also 0:03:24.320 --> 0:03:27.959 reflects a bitterly divided country. Speaking to supporters in front 0:03:27.960 --> 0:03:31.240 of the Eiffel Tower in Paris, Macon thanked French voters 0:03:31.280 --> 0:03:34.480 for trusting him after five years of hard times. He 0:03:34.560 --> 0:03:37.600 acknowledged many people voted for him only to block the 0:03:37.640 --> 0:03:41.600 far right, and vowed to be president of all in Paris, 0:03:41.680 --> 0:03:44.560 I'm from de Laqua. Bloomberg day Break, All right, Francine, 0:03:44.560 --> 0:03:47.840 thank you. In Asia, Overnight stocks in China plunged almost 0:03:47.960 --> 0:03:51.600 five percent or worsening COVID outbreak is fueling fears of 0:03:51.640 --> 0:03:54.680 a bigger slowdown in the world's second largest economy. We 0:03:54.760 --> 0:03:58.080 get more from Bloomberg Daybreak Asia anchor Brian Curtis. Authorities 0:03:58.160 --> 0:04:01.760 have lockdown some parts of the Hopital policymakers are racing 0:04:01.840 --> 0:04:04.920 to prevent a repeat of the Shanghai outbreak that has 0:04:04.920 --> 0:04:08.440 hobbled the city for weeks. Shanghai reported record daily deaths 0:04:08.480 --> 0:04:11.680 over the weekend that the lockdowns could hurt growth. Oil 0:04:11.720 --> 0:04:15.120 and iron ore tumbled in Monday morning trading. Bryan Curtis, 0:04:15.120 --> 0:04:17.880 Sloomberg Daybreak. All right, Brian, thank you all Back here 0:04:17.920 --> 0:04:20.919 in the US. We're focusing on Twitter. The social media 0:04:21.000 --> 0:04:24.120 company is growing more receptive to Elon musk forty three 0:04:24.160 --> 0:04:27.120 billion dollar tankover offer. Let's get the latest live from 0:04:27.160 --> 0:04:30.719 Bloomberg's Randit A young good morning, Ready, and a good morning, Karen. Bloomberg. 0:04:30.839 --> 0:04:34.359 Sources say Elon Musk met with Twitter executives on Sunday 0:04:34.400 --> 0:04:38.400 to discuss his offer. Twitter's board initially countered Musk's proposal 0:04:38.480 --> 0:04:41.160 with a poison pill, which would make it more expensive 0:04:41.160 --> 0:04:44.520 for any investor, including Musk, to acquire stock beyond a 0:04:44.640 --> 0:04:48.880 fifteen pent steak. Musk currently owns about nine percent of Twitter, 0:04:49.240 --> 0:04:51.719 but The Wall Street Journal reports Musk says he will 0:04:51.760 --> 0:04:54.280 not adjust his fifty four dollars and twenty cents this 0:04:54.400 --> 0:04:58.480 year offer for Twitter that's above Friday's closing price. The 0:04:58.600 --> 0:05:01.840 journal also reports a you could be finalized as soon 0:05:02.000 --> 0:05:04.800 as this week. Live in New York. I'm gonna need 0:05:04.839 --> 0:05:06.760 a young Bloomberg day Break, all right, we need to 0:05:06.839 --> 0:05:09.360 thank you. Corporate earnings are also in focus, with more 0:05:09.400 --> 0:05:12.520 than a third of the companies in the SMP five reporting. 0:05:12.640 --> 0:05:16.760 This week, we get a preview from Bloomberg's Charlie Pellett, Apple, Amazon, 0:05:16.880 --> 0:05:20.960 and other technology giants report results. As to major industrial, 0:05:21.040 --> 0:05:25.560 healthcare and consumer goods companies. Sarah Malick is chief investment 0:05:25.600 --> 0:05:28.640 officer at Nouven. Who we're watching for for earnings are 0:05:28.720 --> 0:05:32.520 with the demand outlook, pricing, power, supply chain issues so 0:05:32.600 --> 0:05:35.200 going forward, and we're so bullish that earnings will continue 0:05:35.200 --> 0:05:39.279 to drive this market higher. This week we hear from Alphabet, Microsoft, Intel, 0:05:39.360 --> 0:05:43.599 and Texas Instruments among tech names. Also this week, three M, Boeing, 0:05:43.680 --> 0:05:47.000 g E G, m Ford, Caterpillar, x On Mobile, en 0:05:47.120 --> 0:05:50.920 Visa in New York, Charlie Pellet Bloomberg day Break, Turley, 0:05:51.000 --> 0:05:54.320 thank you. Another impact on earnings employee pay. According to 0:05:54.360 --> 0:05:58.000 a survey by the National Association for Business Economics, wages 0:05:58.040 --> 0:06:01.120 increased at a record seventy in of US companies in 0:06:01.160 --> 0:06:04.000 the first quarter. About half of the firm's surveyor still 0:06:04.040 --> 0:06:07.560 reporting shortages of skilled labor. There is a warning going 0:06:07.600 --> 0:06:11.160 out to Democrats, Karen from one of their own. Senator 0:06:11.200 --> 0:06:14.120 Elizabeth Warren says her party could be in real trouble 0:06:14.200 --> 0:06:16.520 in this year's elections if it doesn't do more to 0:06:16.600 --> 0:06:18.840 deal with inflation. I think we're going to be in 0:06:18.920 --> 0:06:23.000 real trouble if we don't get up and deliver that. 0:06:23.279 --> 0:06:27.360 I believe that Democrats are going to lose Democrats when 0:06:27.680 --> 0:06:30.960 when they do what when they work on behalf of 0:06:31.040 --> 0:06:34.360 working people. Senator Warren's hell CNN Democrats need to push 0:06:34.360 --> 0:06:38.040 through legislation to tamp down soaring prices. Christie mcguard also 0:06:38.040 --> 0:06:41.200 speaking out about inflation, Nathan the ECB presidents, saying both 0:06:41.240 --> 0:06:43.800 the US and Europe are struggling to contain prices, but 0:06:43.839 --> 0:06:46.880 the challenges are different. Right now, half of Europe's inflation 0:06:46.960 --> 0:06:51.080 stems from searching energy costs. I believe that we share 0:06:51.120 --> 0:06:55.880 the same result, which is to time inflation, which is 0:06:55.920 --> 0:06:58.640 to use all the tools that we have to do so. 0:06:58.920 --> 0:07:02.480 But we're facing the from beast. ECB president Christine Lagartel 0:07:02.560 --> 0:07:05.040 CBS has faced the nation that if she raised interest 0:07:05.080 --> 0:07:07.760 rates today, it would not bring down energy prices. And 0:07:07.800 --> 0:07:11.320 you can catch face the nation every Sunday on Bloomberg Radio, 0:07:11.720 --> 0:07:15.320 futures are lower this morning, straight ahead, your latest local headlines, 0:07:15.480 --> 0:07:23.480 plus a check of sports. And this is Bloomberg from Karen. 0:07:23.560 --> 0:07:26.320 Thank you. Five oh seven on Wall Street, seven degrees 0:07:26.400 --> 0:07:28.360 in Central Park. We've got a couple of problems going 0:07:28.440 --> 0:07:30.680 both ways on the Garden State Parkway. We'll get to 0:07:30.680 --> 0:07:33.320 the details coming up in traffic. First, Michael Bars here 0:07:33.320 --> 0:07:35.400 with more on what's going on in New York and 0:07:35.480 --> 0:07:38.440 around the world. Good morning, Michael, Good morning Nathan. Officials 0:07:38.440 --> 0:07:41.680 say a New York City firefighter and a civilian have 0:07:41.920 --> 0:07:45.520 dined in a Brooklyn house fire where a ceiling partially collapsed. 0:07:45.960 --> 0:07:49.840 Acting Fire Department of New York Commissioner Laura Kavanaugh said 0:07:50.360 --> 0:07:53.320 thirty one year old firefighter Timothy Klein was a six 0:07:53.400 --> 0:07:57.440 year veteran of the department. The incident commander identified deteriorating 0:07:57.440 --> 0:08:00.960 conditions and ordered all members out of the building. As 0:08:01.000 --> 0:08:03.080 they were doing so, there was a partial collapse of 0:08:03.080 --> 0:08:08.080 the seing. Four members were caught in that collapse. Commissioner 0:08:08.160 --> 0:08:12.480 Kavanaugh said eight other firefighters were also injured in Sunday's blaze, 0:08:12.720 --> 0:08:16.680 and another resident sustained minor injuries. Mayor Eric Adams more 0:08:16.720 --> 0:08:21.360 inclined death, saying the city had lost one of its bravest. Meanwhile, 0:08:21.480 --> 0:08:24.600 Mayor Adams also talked about crime in the city. We 0:08:24.680 --> 0:08:27.880 removed eighteen hundred guns off the streets of our city 0:08:27.960 --> 0:08:30.720 since I've been elected eighteen hundred and so we're put 0:08:30.760 --> 0:08:33.920 in place the foundation of dealing with the immediate needs 0:08:33.920 --> 0:08:36.880 of violence. But we also stopped in the pipeline that 0:08:36.960 --> 0:08:41.520 caused his children to get involved in violence. Mayor Adams 0:08:41.520 --> 0:08:44.760 made his comments on CDs IS sixty Minutes, which aired 0:08:44.880 --> 0:08:47.599 last night. Jerry Selection begins today and one of the 0:08:47.720 --> 0:08:51.640 highest profiled US capital riot trials. A former New York 0:08:51.679 --> 0:08:55.640 City police officers accused of assaulting a Washington police officer 0:08:55.840 --> 0:08:59.439 on January six. Thomas Webster was a former New York 0:08:59.480 --> 0:09:02.400 City Police officer once assigned to the detail of a 0:09:02.440 --> 0:09:06.320 former mayor. He's charged with assaulting police at the Capitol 0:09:06.360 --> 0:09:10.559 on January six with a barricade while carrying a flagpole. 0:09:11.000 --> 0:09:14.960 Prosecutors are expected to show jurors body camera video of 0:09:15.000 --> 0:09:19.400 the confrontation. Webster is also expected to argue self defense 0:09:19.440 --> 0:09:23.120 against an officer who was overstepping The Supreme Court has 0:09:23.160 --> 0:09:25.000 had to hear arguments today in the case of a 0:09:25.080 --> 0:09:29.360 former high school football coach in Bremerton, Washington. Joseph Kennedy 0:09:29.720 --> 0:09:33.240 was fired by the public school district after refusing to 0:09:33.280 --> 0:09:36.640 stop praying on the field after games. Kennedy says his 0:09:36.760 --> 0:09:40.800 First Amendment rights were violated. Global News twenty four hours 0:09:40.800 --> 0:09:43.920 a day on air and on Bloomberg Quicktake, powered by 0:09:44.000 --> 0:09:46.920 more than twenty seven hundred journalist and analyst in more 0:09:46.960 --> 0:09:50.360 than a hundred twenty countries. Not Michael barn This is Bloomberg, Nathan. 0:09:50.360 --> 0:09:56.880 All right, Michael, thank you. It's five oh nine on 0:09:57.000 --> 0:09:59.120 All Street, time for the Bloomberg Sports Update and Morney 0:09:59.160 --> 0:10:02.240 John stash out. Morning Nathan. It's an early season struggles, 0:10:02.280 --> 0:10:04.480 and yet here are the Yankees right now, tied for 0:10:04.480 --> 0:10:06.640 the best record the American Lady. They had their most 0:10:06.679 --> 0:10:08.800 lopsided win of the year, and they had their first 0:10:08.840 --> 0:10:12.000 series suite. They beat the Guardians at the stadium, tended 0:10:12.040 --> 0:10:14.400 to Anthony Rizzo, got him going to on Homer first tinning. 0:10:14.440 --> 0:10:16.640 They were up six nothing in the third, plenty of 0:10:16.720 --> 0:10:19.240 run support for Garrett Cole who got his first win. 0:10:19.320 --> 0:10:23.080 Get a nice ovation from the craft. Obviously nice Uh, 0:10:23.600 --> 0:10:27.520 it's just a nice day overall. Really well played game. 0:10:29.320 --> 0:10:31.760 Um just to get finished to the series suite Fount 0:10:31.840 --> 0:10:37.080 hard Um and really just put a cherry on top 0:10:37.080 --> 0:10:39.200 and played to play a complete three games. And fans 0:10:39.200 --> 0:10:42.000 at the stadium behaved themselves after what happened on Saturday. 0:10:42.080 --> 0:10:44.360 Yanks off tonight that hosts Baltimore tomorrow. Mets with a 0:10:44.440 --> 0:10:47.760 six to win at Arizona's. Tyler McGill improved the three 0:10:47.760 --> 0:10:49.960 and oh and the Mets have won every series they've 0:10:50.000 --> 0:10:52.400 played this season. They have a four game lead in 0:10:52.440 --> 0:10:54.800 the NL East. They're in St. Louis tonight. That's the 0:10:54.800 --> 0:10:57.880 battle of early season National League the losing leaders Final 0:10:57.960 --> 0:11:01.080 Wake in the NHL regular season, Carolina beat the Islanders 0:11:01.120 --> 0:11:03.560 five to two. That puts the Hurricanes four points ahead 0:11:03.559 --> 0:11:05.959 of the Rangers. The team's fighting to win the Division 0:11:05.960 --> 0:11:09.240 of the Keynes will face the Rangers at the Garden tomorrow. 0:11:09.240 --> 0:11:12.320 At Barkley's Tonight, Nets and Celtics game four, with Boston 0:11:12.440 --> 0:11:14.640 going for the sweep. There was some hope that facing 0:11:14.720 --> 0:11:16.760 elimination of the Nets would have Ben Simmons in the 0:11:16.760 --> 0:11:19.040 line up for the first time ever, but citing the 0:11:19.120 --> 0:11:22.040 sworeback Simmons will not play. To stay alive. Nets need 0:11:22.040 --> 0:11:24.679 a better game from Kevin Durand. He has been decisively 0:11:24.720 --> 0:11:27.840 outplayed in the series by Celtics store Jason Tatum Milwaukee 0:11:27.920 --> 0:11:30.040 in Miami, both one of the Road Leader series three 0:11:30.040 --> 0:11:32.720 one Denverse stayed Alize till Trail's Golden State. Three one, 0:11:32.760 --> 0:11:35.280 New Orleans beat Phoenix. That series tied at two. John 0:11:35.320 --> 0:11:38.880 stash Dower bloom Brick Sports okay, John, thank you a 0:11:39.000 --> 0:11:43.040 risk off morning. With SMP futures down forty five points down, 0:11:43.040 --> 0:11:47.040 futures down three thirty, NASTAC futures down a hundred twenty 0:11:47.120 --> 0:11:50.320 six points, The tenure treasury is up twenty thirty seconds, 0:11:50.360 --> 0:11:53.480 the yield two point two per cent, nime X screwed 0:11:53.520 --> 0:11:56.600 down four point nine percent, down five dollars one cent 0:11:56.679 --> 0:11:59.240 to ninety seven dollars four cents a barrel. We look 0:11:59.280 --> 0:12:03.000 at these market next with Dennis Gartman, former publisher of 0:12:03.080 --> 0:12:08.560 the Gartment Letter. This is Bloomberg, Bloomberg eleven three oh 0:12:08.600 --> 0:12:11.040 weather partly sunny today with highs in the low sixties. 0:12:11.080 --> 0:12:13.040 Chants for a few showers tomorrow with a high near 0:12:13.080 --> 0:12:16.320 sixty five. By Wednesday, it turns partly sunny but cooler, 0:12:16.400 --> 0:12:22.400 upper fifties right now forty seven in Central Park Markets. 0:12:22.480 --> 0:12:25.520 Headlines and breaking news twenty four hours a day at 0:12:25.559 --> 0:12:29.000 Bloomberg dot Com, the Bloomberg Business at and at Bloomberg 0:12:29.080 --> 0:12:38.520 Quick Tape. This is a Bloomberg Business flash, and I'm Cameron. 0:12:38.600 --> 0:12:42.040 Moscow's docks and commodities are tumbling as China's worsening COVID 0:12:42.080 --> 0:12:45.760 outbreak compounds fear sparked by faster fed a reserve tightening. 0:12:46.160 --> 0:12:48.720 Bonds are arising. We checked the markets every fifteen minutes 0:12:48.760 --> 0:12:50.920 throughout the trading day. On Bloomberg U S and P. 0:12:51.120 --> 0:12:53.839 Future is down about forty seven points down. Future is 0:12:53.840 --> 0:12:57.480 down three d Nasdack Future is down one D five. 0:12:57.640 --> 0:13:00.680 The decks in Germany's down one point nine person sent ten. 0:13:00.720 --> 0:13:03.280 Your treasury of twenty one thirty seconds held two point 0:13:03.280 --> 0:13:05.520 eight one percent, That yield on the two year two 0:13:05.559 --> 0:13:08.839 point five nine percent. Nine X Screwed oil is down 0:13:08.840 --> 0:13:11.480 four point eight percent, down four dollars ninety one cents 0:13:11.480 --> 0:13:14.480 at ninety seven dollars twenty cents a barrel. Comics gold 0:13:14.559 --> 0:13:16.920 is down nine tenths per cent, or sixteen dollars seventy 0:13:16.960 --> 0:13:20.720 cents at nineteen seventeen sixty announced the euro one point 0:13:20.920 --> 0:13:23.320 seven three eight against the dollar, British pound one point 0:13:23.320 --> 0:13:25.959 to seven four zero, the un is at one eight 0:13:26.000 --> 0:13:29.040 point one one, and Bitcoin this morning lower down more 0:13:29.080 --> 0:13:32.959 than three percent at thirty eight thousand, two hundred ninety dollars. 0:13:33.120 --> 0:13:36.160 Today we are watching for earnings from companies, including Coca Cola, 0:13:36.400 --> 0:13:38.920 and that's a Bloomberg business flash. Now here's Michael Barr 0:13:39.040 --> 0:13:41.280 with more on what's going on around the world. Michael, 0:13:41.320 --> 0:13:44.720 good morning, Good morning, Karen, U training An officials saying 0:13:44.800 --> 0:13:48.360 the U S Secretaries of State and Defense have met 0:13:48.400 --> 0:13:52.959 with President Belodamir Zelinsky in Key. French President Emmanuel McCraw 0:13:53.120 --> 0:13:56.160 has secured another term in office, handily defeating is far 0:13:56.320 --> 0:13:59.480 right opponent Marine Leapin. The Chrome won a second term 0:13:59.480 --> 0:14:02.240 with roughly fifty eight percent of the vote, depend got 0:14:02.240 --> 0:14:06.480 about forty two. In MLB, the Yankees and Mets one. 0:14:06.559 --> 0:14:09.000 The Red Sox and Orioles lost. The Giants beat the 0:14:09.080 --> 0:14:13.480 Nationals twelve three the A's one. Tonight, it will be 0:14:14.040 --> 0:14:16.800 do or dive for the Brooklyn Nets as they try 0:14:16.840 --> 0:14:20.120 to stay off elimination from the Boston Celtics. They will 0:14:20.160 --> 0:14:23.760 play Game four tonight, also in the NBA Playoffs, the 0:14:23.800 --> 0:14:26.560 Warriors lost to the Nuggets. Golden States still has the 0:14:26.640 --> 0:14:29.320 three games to one lead in that series. Global News 0:14:29.360 --> 0:14:32.040 twenty four hours a day on air and on Bloomberg 0:14:32.120 --> 0:14:35.760 Quick Take, powered by more than hundred journalists and analyst 0:14:35.840 --> 0:14:38.160 more than a hundred twenty countries. Hi, Michael Barr, and 0:14:38.200 --> 0:14:41.200 this is Bloomberg. Nathan, Okay, Michael, thank you. It's five 0:14:41.320 --> 0:14:44.560 nineteen on Wall Street Live from the Bloomberg Interactive Brooker Studios. 0:14:44.600 --> 0:14:47.480 This is Bloomberg Daybreak, and Dennis Gartment is with us 0:14:47.520 --> 0:14:50.440 this morning, chairman of the University of Akron Endowment Investment 0:14:50.480 --> 0:14:53.240 Committee and of course, former publisher of the Gartment Letter. 0:14:53.320 --> 0:14:56.360 As we see deep red for risk assets on the 0:14:56.400 --> 0:14:59.680 screen this morning, it seems as though Dennis did tell me, 0:14:59.680 --> 0:15:01.360 if I'm wrong, a lot of this is driven by 0:15:01.720 --> 0:15:05.480 concerns about COVID in China. How much further could this go? 0:15:07.360 --> 0:15:09.760 I think fearfully it could go quite quite a good 0:15:09.760 --> 0:15:12.360 deal further to the downside. I've embarrassed with stocks since 0:15:12.440 --> 0:15:15.880 January this year, been very consistent about that fact, and 0:15:15.920 --> 0:15:19.320 actually had the university reduced the size of its portfolio 0:15:19.400 --> 0:15:24.040 by twelve to on December thirty one to last year. Uh. 0:15:24.080 --> 0:15:25.960 For my own account, I got stopped out of a 0:15:25.960 --> 0:15:28.560 lot of long positions on Thursday and Friday of last week. 0:15:28.560 --> 0:15:32.280 I'm happy to be basically as as flat as I've 0:15:32.280 --> 0:15:34.520 been in a long period of time. The set is 0:15:34.560 --> 0:15:38.080 tightening monetary policy long overdue, something that should have been 0:15:38.200 --> 0:15:41.720 started two years ago. They're going to be their assets 0:15:42.040 --> 0:15:43.840 rather consistently over the course of the next two or 0:15:43.840 --> 0:15:46.400 three years, and the overnight said funds rate is going 0:15:46.440 --> 0:15:48.400 to go higher. So I think you got I think 0:15:48.400 --> 0:15:50.720 you have problems here for a period of time ahead, 0:15:50.880 --> 0:15:52.880 and you have to be very very careful. So this 0:15:52.960 --> 0:15:56.360 is I think people are trying to explain the today's 0:15:56.400 --> 0:15:59.760 move predicated upon the COVID. I think it's more to 0:16:00.320 --> 0:16:02.360 attributed to the fact that the Federal Reserve Bank has 0:16:02.400 --> 0:16:06.880 become has has excited QUEI and is beginning quantitative tightening. 0:16:07.280 --> 0:16:09.240 And I think we're going to be in that a 0:16:09.280 --> 0:16:11.480 long period of time, so be very careful. This is 0:16:11.520 --> 0:16:14.480 going down a long way. I'm afraid how far do 0:16:14.600 --> 0:16:16.760 you think it could go? I mean, give me a 0:16:16.840 --> 0:16:22.480 number now, I prefer not giving a number. The best 0:16:22.480 --> 0:16:24.440 the one can do. I've been in the business for 0:16:24.480 --> 0:16:27.120 almost fifty years, and if you get the direction right, 0:16:27.160 --> 0:16:29.080 that's the best you can do. So things are moving 0:16:29.120 --> 0:16:31.240 from the upper left to the lower right. They're going 0:16:31.280 --> 0:16:32.880 to continue to move from the upper left to the 0:16:32.880 --> 0:16:35.080 lower right. Mark this down. They'll continue to do so 0:16:35.200 --> 0:16:38.120 until they stop. So putting a number on it, that's 0:16:38.160 --> 0:16:40.320 that's almost silly. And the best the one can do 0:16:40.360 --> 0:16:42.840 is get the direction correct. So what what bothers me 0:16:43.320 --> 0:16:45.600 is the use of margin has been declining. That's always 0:16:45.600 --> 0:16:47.320 one of the signs of the top in the market, 0:16:47.880 --> 0:16:50.920 the feedtest. That's that's clearly going to be a delictarious 0:16:50.960 --> 0:16:53.720 to share prices. So as I said, be careful, I 0:16:53.720 --> 0:16:56.960 think it goes down another percent from here, at least 0:16:57.160 --> 0:17:00.240 maybe more. Now we have seen FED funds fuge his 0:17:00.320 --> 0:17:04.840 price in multiple fifty basis point hikes in upcoming meetings 0:17:04.840 --> 0:17:08.399 here do you think that continues if we do see 0:17:09.040 --> 0:17:14.880 demand destruction in commodities, If this China COVID situation continues 0:17:14.920 --> 0:17:17.520 to play out like it is at the moment, I 0:17:17.520 --> 0:17:20.280 think the said clearly will will tighten monetary policy by 0:17:20.280 --> 0:17:23.240 at least fifty by by fifty points in the upcoming 0:17:23.280 --> 0:17:26.280 May meeting. I think they're professionally to move fifty and 0:17:26.280 --> 0:17:29.840 fifty and fifty again has probably been reduced, but they're 0:17:29.840 --> 0:17:33.119 clearly they're gonna by fifty basis points at the meeting 0:17:33.119 --> 0:17:35.159 in two weeks and then I think it's up for 0:17:35.440 --> 0:17:37.280 up for grabs. But I think they're going to continue 0:17:37.280 --> 0:17:38.760 to tighten to the course of the year. But will 0:17:38.800 --> 0:17:41.680 they take it basis points higher than where they where 0:17:41.720 --> 0:17:44.160 we are right now by years? And I have my doubts. 0:17:44.400 --> 0:17:48.440 Rich what does that tightness mean for the growth? No 0:17:48.560 --> 0:17:51.359 problem inside? Now what does the tighter FED mean for 0:17:51.600 --> 0:17:54.480 US growth going forward? We've got a lot of discussion 0:17:54.480 --> 0:17:56.720 about whether the US has headed for a recession either 0:17:56.760 --> 0:18:00.280 this year or next. What's your view on that? Two 0:18:00.320 --> 0:18:03.400 things to watch and one I wrote two weeks ago, 0:18:03.480 --> 0:18:05.720 three weeks ago that if the said begins to take 0:18:05.760 --> 0:18:07.919 the overnight or it takes the two year above the 0:18:08.000 --> 0:18:09.880 five year and takes the two year above the ten 0:18:10.000 --> 0:18:13.639 year and then has UH crude oil above a d 0:18:13.800 --> 0:18:18.440 ten dollars a barrel recession is almost probability. I think 0:18:18.480 --> 0:18:20.800 that the former is going to happen. The two years 0:18:20.800 --> 0:18:22.520 going to go to a premium over the five years 0:18:22.680 --> 0:18:24.320 years going to even go to a premium over the 0:18:24.359 --> 0:18:28.840 ten year. But clearly the sort of slowing circumstances globally 0:18:28.880 --> 0:18:32.159 have put downward pressure upon crude oil prices. So instead 0:18:32.160 --> 0:18:34.960 of saying that there's a probability of recession this year, 0:18:35.000 --> 0:18:39.480 I reduced that to thirty better than better than the even. 0:18:39.560 --> 0:18:42.440 But still the odds of a recession have been reduced 0:18:42.760 --> 0:18:46.000 just because crude oil prices have fallen rather precipitously, pay 0:18:46.040 --> 0:18:48.400 attention to what's going on in crude oil. The fact 0:18:48.440 --> 0:18:50.320 that we've gone from a hundred ten dollars a barrel 0:18:50.359 --> 0:18:53.240 to what are we now ninety pausive barrel and the 0:18:53.320 --> 0:18:57.400 term structure is narrowing. That's a that's a material change 0:18:57.400 --> 0:18:58.800 in the course of the past month and a half. 0:18:58.840 --> 0:19:03.520 So I think it it's illustrative of the deletarious circumstances 0:19:03.520 --> 0:19:07.640 prevailing in the in the economy. Be careful, That's that's 0:19:07.680 --> 0:19:11.000 the best thing I can say. Be careful, all right, 0:19:11.200 --> 0:19:13.600 be careful and we'll leave it there. Thank you, Dennis, 0:19:13.640 --> 0:19:16.760 great as always having you with us. Dennis Gartman, Chairman 0:19:16.880 --> 0:19:20.639 of the University of Acronym Dowmint Investment Committee and former 0:19:20.680 --> 0:19:24.720 publisher of the Gartman Letter Red Headline just crossed the 0:19:24.760 --> 0:19:28.200 Bloomberg terminal moments ago. The global route wipes out negative 0:19:28.280 --> 0:19:31.840 yields from the company. Bond market will continue following that 0:19:31.920 --> 0:19:35.240 for you. Right now, SMP futures are down forty seven 0:19:35.280 --> 0:19:37.960 points to drop of one point one percent. Down Future 0:19:38.000 --> 0:19:41.000 is down three forty six. NASTACK futures are lower by 0:19:41.000 --> 0:19:43.560 a hundred thirty nine points. The tenure treasury is up 0:19:43.600 --> 0:19:46.400 twenty one thirty seconds now, the yield two point eight 0:19:46.440 --> 0:19:48.840 one percent and the yield on the two year two 0:19:48.840 --> 0:19:54.040 point six zero percent. Just ahead, Biden's cabinet visits Kiev 0:19:54.520 --> 0:19:57.399 and Twitter gives Elon Musk's takeover off for a second 0:19:57.400 --> 0:20:00.840 look your top stories of the morning. It's away. Stay 0:20:00.880 --> 0:20:08.320 with us. You're listening to Bloomberg Day right Bloomberg eleven 0:20:08.400 --> 0:20:10.679 three oh Weather partly sunny today with highs in the 0:20:10.720 --> 0:20:13.040 low sixties. Will be near sixty five of the chance 0:20:13.119 --> 0:20:16.600 for a few showers Tomorrow, turning partly sunny and cooler Wednesday, 0:20:16.640 --> 0:20:19.760 upper fifties for highs. Right now forty seven in Central 0:20:19.760 --> 0:20:26.159 Park broadcasting live from the Bloomberg Interactive Broker studio in 0:20:26.240 --> 0:20:29.280 New York, Bloomberg e Living Free to Washington, d C. 0:20:29.440 --> 0:20:34.160 Bloomberg to Boston, Bloomberg on a six one to San Francisco, 0:20:34.240 --> 0:20:38.160 Bloomberg sixty to the country, Sirius XM to one, nine ten, 0:20:38.320 --> 0:20:41.480 and around the globe the Bloomberg Business app and Bloomberg 0:20:41.560 --> 0:20:50.760 Radio dot Com. This is Bloomberg Daybreak Pits five thirty 0:20:50.760 --> 0:20:53.000 on Wall Street. Good morning, I'm Nathan Hager and I'm 0:20:53.080 --> 0:20:55.920 Karen Moss Galley or just about four hours away from 0:20:55.920 --> 0:20:57.760 the open of US trading. Let's get you up to 0:20:57.840 --> 0:20:59.600 date on the news you need to know at this hour. 0:20:59.680 --> 0:21:02.159 And we've again in Ukraine, where U S. Secretary of 0:21:02.200 --> 0:21:05.760 State Anthony B. Lincoln and Defense Secretary Lloyd Austin met 0:21:05.800 --> 0:21:09.320 with the President of Vladimier's Lensky. Austin says Moscow has 0:21:09.320 --> 0:21:12.480 already lost a lot of military capability and he wants 0:21:12.520 --> 0:21:16.240 that to continue. You want to see Russia weakened to 0:21:16.320 --> 0:21:18.919 the degree that it can't do the kinds of things 0:21:18.920 --> 0:21:23.240 that it has done in invading Ukraine. U S Secretary 0:21:23.280 --> 0:21:26.159 of Defense Lloyd Austin, along with Secretary of State Anthony Blincoln, 0:21:26.200 --> 0:21:28.960 met with Zelenski and Kiev. The US promised over seven 0:21:29.000 --> 0:21:32.920 hundred million dollars in financial assistance for Ukraine and it's allage. B. 0:21:32.960 --> 0:21:36.120 Lincoln also announced diplomats will soon return to the country. 0:21:36.480 --> 0:21:39.480 Part of our commitment going forward involves a number of 0:21:39.480 --> 0:21:41.680 things that I was able to share with President Zelinski yesterday, 0:21:41.880 --> 0:21:45.560 including the return of American diplomats to Ukraine starting next week. 0:21:45.800 --> 0:21:48.600 Secretaries Austin and B. Lincoln are the highest ranking US 0:21:48.640 --> 0:21:52.719 officials to visit Ukraine since Russia's invasion began. Well meantime, 0:21:52.760 --> 0:21:55.919 in France, Karen Emmanuel macrons securative victory over far right 0:21:56.000 --> 0:21:59.919 leader Marine Leapin in the country's presidential election. Mccron becomes 0:21:59.920 --> 0:22:02.560 the first incumbent to win a second term in France 0:22:02.560 --> 0:22:06.520