WEBVTT - Bloomberg Daybreak: May 12, 2022 - Hour 2 (Radio) 0:00:03.400 --> 0:00:06.720 Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:06.840 --> 0:00:10.480 day Break for Thursday May twelve two. Coming up this hour, 0:00:10.800 --> 0:00:14.520 the Wall Street sell off spreads overseas Global team coverage 0:00:14.600 --> 0:00:18.439 straight ahead. Cryptocurrency has resumed declines as Bitcoin nearest twenty 0:00:18.440 --> 0:00:22.400 five thousand investors await another reading on inflation, and Disney 0:00:22.400 --> 0:00:25.480 shares drop on the company's growth. Albook. Cover to Murphy 0:00:25.560 --> 0:00:29.080 seeks to require New Jersey insurers to cover abortion costs. 0:00:29.160 --> 0:00:31.840 Plus reaction for the US send its vote to block 0:00:31.880 --> 0:00:35.480 abortion rights. I'm Michael bar More Ahead, I'm down stage 0:00:35.720 --> 0:00:38.199 and sports. The Rangers survived. They beat the Penguins to 0:00:38.240 --> 0:00:40.840 force the Game six in Pittsburgh. The Mets lost another 0:00:40.880 --> 0:00:46.480 win for the Yankees. That's All's train ahead on Bloomberg 0:00:46.560 --> 0:00:51.600 Daybreak on Bloomberg eleven three on New York, Bloomberg one, Washington, 0:00:51.720 --> 0:00:55.360 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:55.400 --> 0:00:59.200 sixties and Francisco Sirius x M one nine team and 0:00:59.280 --> 0:01:02.040 around the world. Old on Bloomberg Radio dot Com and 0:01:02.200 --> 0:01:08.840 via the Bloomberg Business app. And Good Thursday Morning. I'm 0:01:08.880 --> 0:01:11.960 Karen Moscow. I'm Nathan Hagar. Bloomberg Daybreak is brought to 0:01:12.000 --> 0:01:14.160 you by B and Y Melon's Pershing Learned Why the 0:01:14.160 --> 0:01:17.880 world's most sophisticated wealth management and institutional firms rely on 0:01:18.080 --> 0:01:22.040 Pershing to help them improve profitability, create efficiency, attract talent, 0:01:22.120 --> 0:01:25.600 and manage risk at pershing dot com. Well US futures 0:01:25.600 --> 0:01:28.200 are extending yesterday sell off at six oh one on 0:01:28.240 --> 0:01:30.360 Wall Street, and we check the markets every fifteen minutes 0:01:30.360 --> 0:01:34.000 throughout the trading day. On Bloomberg. SNP futures down thirty 0:01:34.040 --> 0:01:37.280 points this morning, DAL futures down two hundred and Nasdaq 0:01:37.360 --> 0:01:39.959 futures are down one hundred thirty six. That's down one 0:01:40.000 --> 0:01:43.440 point one percent. Ten year Treasury of twenty thirty seconds 0:01:43.520 --> 0:01:46.040 yield two point one percent, and the yield on the 0:01:46.120 --> 0:01:49.600 two years two point five six percent. Nathan Karen, it's 0:01:49.640 --> 0:01:53.200 inflation worries that have US stock starting this session at 0:01:53.240 --> 0:01:56.560 their lowest level since March of last year. The hotter 0:01:56.560 --> 0:01:59.800 than expected print we got from consumer prices yesterday's sparking 0:02:00.040 --> 0:02:02.880 years that the Federal Reserve may unleash further tightening and 0:02:03.000 --> 0:02:07.320 tip the economy into recession. Michael Darta is Chief Economists 0:02:07.360 --> 0:02:10.480 and macro strategist at m CAM Partners. That's still a 0:02:10.520 --> 0:02:14.120 major problem for this bond market, a major problem for 0:02:14.160 --> 0:02:17.640 this federal reserve, and as we're seeing a major problem 0:02:17.680 --> 0:02:21.040 for the valuations that support the S and P five hundred. 0:02:21.160 --> 0:02:23.400 Michael Darta and m CAM Partner says the Fed missed 0:02:23.440 --> 0:02:26.560 the boat on inflation. The tech heavy NASDAC humbled more 0:02:26.600 --> 0:02:28.960 than three percent yesterday. It has now lost more than 0:02:29.000 --> 0:02:31.600 a quarter of its value this year. Austin Graf, as 0:02:31.639 --> 0:02:35.919 a portfolio manager at Truemark Investments, you're seeing a continuation 0:02:36.000 --> 0:02:39.320 of kind of what we've seen throughout the entire year 0:02:39.400 --> 0:02:42.320 so far, where you're seeing some of the high flyers 0:02:42.400 --> 0:02:44.680 the last few years and the growth names training off 0:02:45.160 --> 0:02:48.360 the Speaking of of high flyers, Austin Graff at Truemark says, 0:02:48.440 --> 0:02:52.160 Apple is down about from its recent high. In fact, 0:02:52.200 --> 0:02:55.000 the iPhone makers now second to Saudi a Ramco as 0:02:55.040 --> 0:02:58.360 the world's most valuable company. Well, Nathan, yesterday, sell office 0:02:58.400 --> 0:03:01.839 spreading overseas and you begin our global team coverage now 0:03:01.840 --> 0:03:04.239 with the Bloomberg's You and Parts in London. Good morning You, 0:03:04.440 --> 0:03:06.800 and good morning Karen and Nathan. Plenty of red on 0:03:06.880 --> 0:03:09.680 traders bloom Bow screens this morning in Europe, investors taking 0:03:09.680 --> 0:03:12.560 fright at that stubborn US inflation. The stocks is hundred 0:03:12.560 --> 0:03:16.600 down two point one. Mining stocks the worst performing sector, 0:03:16.639 --> 0:03:19.639 down more than four percent, but real estate and carmakers 0:03:19.680 --> 0:03:22.440 also near the bottom of the table. All twenty industry 0:03:22.440 --> 0:03:25.079 groups lower this morning. As to the markets, the foots 0:03:25.080 --> 0:03:27.080 are here in London, one of the worst performing down 0:03:27.120 --> 0:03:30.840 two point three percent. Live in London. I'mun parts all 0:03:30.919 --> 0:03:33.000 right you and thanks. We saw the same selling pressure 0:03:33.080 --> 0:03:36.800 overnight in Asia. Let's continue our team coverage now. Bloomberg's 0:03:36.880 --> 0:03:40.080 Juliette Sally joins us from Singapore. Good morning, Juliet, Good morning, 0:03:40.160 --> 0:03:42.760 Nathan and Karen. The MSCI Asia Pacific Index fell to 0:03:42.880 --> 0:03:46.120 June twenty twenty. Low's is new COVID cases in Shanghai 0:03:46.240 --> 0:03:49.680 damp and prospects for reopening. Investors also appearing to be 0:03:49.760 --> 0:03:53.400 unimpressed by Premier Leese comments urging officials to use fiscal 0:03:53.480 --> 0:03:57.000 and monetary policies to stabilize employment and the economy. Hong 0:03:57.080 --> 0:03:59.400 Kong shares came under pressure as the city and defened 0:03:59.600 --> 0:04:03.840 defend its currency for the first time since twenty In Singapore, 0:04:03.880 --> 0:04:06.800 Juliette Sale bloom Bag daybreak. All right, Juliette, thank you. 0:04:06.960 --> 0:04:10.720 We're also seeing cryptocurrencies continue their sell off this morning, 0:04:10.720 --> 0:04:13.080 and we get the latest on that Live with Bloomberg's 0:04:13.080 --> 0:04:15.120 re need a Young in New York. Good morning, Renown, 0:04:15.160 --> 0:04:17.560 Good morning, Karen. The crypto market has lost more than 0:04:17.560 --> 0:04:20.360 two hundred billion dollars in wealth over the past twenty 0:04:20.360 --> 0:04:24.040 four hours. Bitcoins trading at its lowest level since twenty twenty. 0:04:24.320 --> 0:04:27.000 At one point this morning, it touched just over twenty 0:04:27.040 --> 0:04:29.960 five thousand. Right now, it's trading at close to twenty 0:04:30.000 --> 0:04:33.360 eight thousand. It's been falling in conjunction with the regular market, 0:04:33.520 --> 0:04:35.800 but the collapse of the terra usd stable coin is 0:04:35.839 --> 0:04:38.840 triggering a flight from many of the large digital tokens, 0:04:38.880 --> 0:04:41.160 and backers of the coin are trying to raise about 0:04:41.240 --> 0:04:44.520 one point five billion dollars to shore it up. Stable 0:04:44.520 --> 0:04:47.200 Coins are key elements of the crypto markets. There were 0:04:47.200 --> 0:04:49.560 traders park funds as they move in and out of 0:04:49.560 --> 0:04:52.880 other tokens. The total total value of all stable coins 0:04:52.960 --> 0:04:56.400 is beyond one hundred billion dollars. Live in New York. 0:04:56.440 --> 0:04:59.120 I'm renned a Young. Bloomberg Daybreak, All right, Rena. Thanks, 0:04:59.160 --> 0:05:01.120 Let's turn to corporate. He's on Wall Street now. We've 0:05:01.120 --> 0:05:03.280 been watching shares of Disney this morning. The down more 0:05:03.320 --> 0:05:06.160 than five percent in early trading after the company reported 0:05:06.200 --> 0:05:10.200 subscriber gains for its flagship streaming service that beat estimates, 0:05:10.200 --> 0:05:12.840 but it's also tempering its outlook for the year. We 0:05:12.920 --> 0:05:15.960 get the details from Bloomberg's Charlie Pellett. Disney said it 0:05:16.080 --> 0:05:19.400 will trim spending on movies and TV shows. On the 0:05:19.400 --> 0:05:23.080 conference call, CEO Bob Jpeck said Disney is lowering its 0:05:23.080 --> 0:05:26.920 projection for overall film and TV spending by one billion 0:05:26.960 --> 0:05:30.760 dollars to thirty two billion this year. Disney did report 0:05:30.800 --> 0:05:33.520 that on an expected growth in its flagship Disney Plus 0:05:33.600 --> 0:05:37.640 screaming service, while saying half of Disney Plus subscribers are 0:05:37.680 --> 0:05:42.200 adults without kids in New York. Charlie Pellett Bloomberg day Break. 0:05:42.279 --> 0:05:44.800 All right, Charlie, thank you all. On the economic front today, 0:05:44.839 --> 0:05:48.039 we'll get another key reading on inflation. The Producer Price 0:05:48.080 --> 0:05:50.480 Index comes out at eight thirty am Wall Street time, 0:05:50.520 --> 0:05:52.960 and we get a preview from bloomberg S Michael McKee. 0:05:53.600 --> 0:05:56.640 Inflation isn't going away soon, but it may ease a 0:05:56.680 --> 0:05:59.799 bit producer prices are forecast to have increased more slowly 0:05:59.839 --> 0:06:03.160 in April, following a stronger than expected gained the previous month. 0:06:03.200 --> 0:06:07.200 While food prices continued to accelerate, oil prices retreated in April. 0:06:07.240 --> 0:06:11.240 Supply chain snarls could worsen amid China's COVID lockdowns, suggesting 0:06:11.240 --> 0:06:14.240 wholesale inflation will be slow to recede. Coming after a 0:06:14.320 --> 0:06:17.080 firm April CPI, the p p I is unlikely to 0:06:17.120 --> 0:06:20.440 add much to market thinking about inflation or the Fed's 0:06:20.520 --> 0:06:24.480 plans for raising rates. Michael McKee, Bloomberg Daybreak, Naren Mike Thanks. 0:06:24.480 --> 0:06:27.120 As the Fed fights inflation, it's adding another new member 0:06:27.120 --> 0:06:29.680 to its ranks. The Senates added a third nominee of 0:06:29.720 --> 0:06:33.000 President Biden's to the FED Board. Lawmakers confirmed economist Philip 0:06:33.080 --> 0:06:37.240 Jefferson as FED governor yesterday Today, Senate Democrats expect to 0:06:37.279 --> 0:06:40.080 vote to confirm Jerome Powell to a second term as 0:06:40.160 --> 0:06:43.320 FED chair. And in the markets this morning, Nathan worsening 0:06:43.400 --> 0:06:46.440 the impact of the recent bonds sell off. Pimco saw 0:06:46.520 --> 0:06:49.800 clients pull more than fourteen billion dollars from its fawn's 0:06:49.880 --> 0:06:53.880 last quarter as investors fled fixed income securities amid rising 0:06:53.920 --> 0:06:57.800 interest rates well, stocks are what investors are fleeing from 0:06:57.839 --> 0:06:59.920 this morning. Karen right now is in p futures are 0:07:00.000 --> 0:07:03.440 down twenty nine points down. Futures down eighty seven. NASDAC 0:07:03.520 --> 0:07:06.320 futures are lower by a hundred thirty one points. The 0:07:06.400 --> 0:07:09.400 tenure treasury is up twenty five thirty seconds now, the 0:07:09.480 --> 0:07:12.360 yield two point eight two and the yield on the 0:07:12.400 --> 0:07:15.360 two year almost two point five seven percent. Just had 0:07:15.360 --> 0:07:19.200 your latest local headlines into check of sports. This is Bloomberg. 0:07:23.040 --> 0:07:24.920 It's six o seven on Wall Street. Now, where's sixty 0:07:24.960 --> 0:07:27.640 degrees in Central Park? On an accident on eastbound three. 0:07:27.720 --> 0:07:30.800 It's on the on ramp to the Lincoln Tunnel. Details 0:07:30.840 --> 0:07:32.960 coming up in traffic. First Michael Barr with what else 0:07:33.040 --> 0:07:34.480 is going on in New York and around the world. 0:07:34.480 --> 0:07:37.160 Good morning, Michael, Good morning Nathan. New Jersey Governor Phil 0:07:37.240 --> 0:07:40.320 Murphy says he's back in legislation to protect and expand 0:07:40.360 --> 0:07:43.680 abortion access in the state. Murphy says that includes a 0:07:43.720 --> 0:07:48.240 requirement that insurers cover costs of the procedure. Abortion is healthcare, 0:07:48.280 --> 0:07:51.920 and healthcare decisions should be left up to the individual. 0:07:52.840 --> 0:07:57.200 Your body belongs to you. Governor Murphy made his comments 0:07:57.240 --> 0:07:59.800 after a Laite opinion indicated the U. S. Supreme Court 0:07:59.840 --> 0:08:02.840 will overturned the landmark Roe v. Wade decision. The High 0:08:02.840 --> 0:08:05.920 Court will meet today. The Democratic leadership in the U. S. 0:08:05.920 --> 0:08:09.320 Senate failed in its attempt to codify abortion rights into law. 0:08:09.520 --> 0:08:12.440 Bloomberg's at Boxter reports the vote to move the bill 0:08:12.520 --> 0:08:15.480 to the floor needed sixty eyes, it got forty nine. 0:08:15.880 --> 0:08:19.040 Vice President Kamala Harris immediately made it a campaign issue, 0:08:19.200 --> 0:08:22.040 and let's be clear, at the majority of the American 0:08:22.080 --> 0:08:27.040 people believe in defending a woman's right, her choice to 0:08:27.200 --> 0:08:29.720 decide what happens to her own body and send a 0:08:29.760 --> 0:08:33.320 minority leader. Mitch McConnell, though says he doesn't understand the uproar. 0:08:33.400 --> 0:08:37.319 Democrats are melting down because of Supreme Court may may 0:08:37.600 --> 0:08:40.920 uphold of Mississippi law that would limit abortion after fifteen weeks. 0:08:41.080 --> 0:08:43.640 The final Supreme Court opinion and ruling is due, most 0:08:43.640 --> 0:08:47.320 probably in June. In San Francisco, I'm at Baxter Bloomberg 0:08:47.360 --> 0:08:50.760 Gay Break Finished leaders have announced Finland must join NATO 0:08:50.840 --> 0:08:54.640 without delay given Russia's invasion in Ukraine. Neighboring Sweden is 0:08:54.720 --> 0:08:58.040 expected to decide on joining NATO in coming days. New 0:08:58.120 --> 0:09:00.120 York City Mayor Eric Adams and the n y p 0:09:00.240 --> 0:09:03.120 D want the federal government to provoke the business license 0:09:03.360 --> 0:09:06.320 of a big gun manufacturer they blame for the increase 0:09:06.360 --> 0:09:09.439 of ghost guns in the city. Adam says the company 0:09:09.559 --> 0:09:13.520 Polymer eight, sells untraceable ready to assemble gun parts online. 0:09:14.000 --> 0:09:16.360 It comes as crime is on the rise in New York. 0:09:16.440 --> 0:09:19.960 Former New York Congressman Joe Crowley says the economic impact 0:09:19.960 --> 0:09:22.320 of the pandemic is partly to blame. I think this 0:09:22.440 --> 0:09:25.640 is all related in many respects to what's happened in 0:09:25.720 --> 0:09:29.200 terms of coming out of this virus that you know, 0:09:29.240 --> 0:09:31.720 the code by TV impact that has had on the 0:09:31.760 --> 0:09:36.199 overall economy. Former Democratic Congressman Joe Crowley spoke on Bloomberg's 0:09:36.200 --> 0:09:39.360 Balance of Power with David weston South Korea. Says North 0:09:39.440 --> 0:09:42.640 Korea fire to ballistic missile off its eastern coast. The 0:09:42.720 --> 0:09:45.600 missile was launched last night towards the sea. Global News 0:09:45.640 --> 0:09:48.439 twenty four hours a day on air and on Bloomberg 0:09:48.480 --> 0:09:51.960 Quick Take, powered by more than hundred journalists and analysts 0:09:52.040 --> 0:09:54.400 more than a hundred twenty countries, and Michael bar this 0:09:54.640 --> 0:10:02.079 is Bloomberg Naked. Thank you Michael six O nine on 0:10:02.160 --> 0:10:04.400 Wall Street time for the Bloomberg Sports Update with John 0:10:04.480 --> 0:10:07.120 Stanshall Dathan. The Rangers, had they lost last night, would 0:10:07.120 --> 0:10:09.520 have been playing golf today. Instead, they're traveling back to 0:10:09.600 --> 0:10:12.240 Pittsburgh for Game six tomorrow. At the Guard, they trailed 0:10:12.280 --> 0:10:16.120 the Penguins to nothing late second period. They came alive 0:10:16.559 --> 0:10:19.760 the house at the right, Quart saw traps, Carter tru again, 0:10:20.040 --> 0:10:28.760 Trump back at Scars three two Rangers ESPN three Ranger 0:10:28.840 --> 0:10:32.520 goals in two minutes forty two seconds, but thirteen seconds 0:10:32.559 --> 0:10:34.599 after the Rangers took the lead, the Penguins tied it 0:10:35.000 --> 0:10:38.120 on Jake Densel's second goal the night, seventh of the series. 0:10:38.280 --> 0:10:42.559 So Game five was tied. Walst ball the puck down 0:10:42.640 --> 0:10:48.360 comes the Heatler shoot starts well of title gives the 0:10:48.480 --> 0:10:51.559 Rangers the lead with a power play goal early at 0:10:51.600 --> 0:10:54.080 Bury at three empty at the end, the Rangers won 0:10:54.120 --> 0:10:56.600 five three, but can they went in Pittsburgh where they 0:10:56.640 --> 0:10:59.679 just lost seven four and seven to Will. The Penguins 0:11:00.040 --> 0:11:02.440 have Sydney Crosby. He left last night with an injury. 0:11:02.480 --> 0:11:04.880 Florida was down three nothing. He came back to be Washington. 0:11:04.960 --> 0:11:08.160 Calgary beat Dallas. They're both up three two. NBA Milwaukee 0:11:08.160 --> 0:11:10.280 came from fourteen down on the fourth quarter to win. 0:11:10.360 --> 0:11:14.080 In Boston. Memphis beat Golden State by thirty nine. The 0:11:14.160 --> 0:11:17.640 Bucks and Warriors have the three too series leads at 0:11:17.640 --> 0:11:19.760 the stadium. Another win for the red Hot Yankees made 0:11:19.800 --> 0:11:22.800 it fifteen or last seventeen beat Toronto five to three. 0:11:22.920 --> 0:11:25.520 Labor Tours driven all five. That's at a three nothing 0:11:25.640 --> 0:11:28.600 first inning lead in Washington Peter Alonso Homer, but the 0:11:28.720 --> 0:11:31.040 Nashals with five and the bottom of the first and 0:11:31.120 --> 0:11:33.400 three more in the second. No more scoring after that, 0:11:33.440 --> 0:11:35.920 and then that's one eight to three. Tyler McGill got 0:11:35.960 --> 0:11:38.480 only four outs. He gave up eight runs on eight hits. 0:11:38.679 --> 0:11:42.120 John Stash Thatward Bloomberg Sports, Nathan all Right, John thanks 0:11:42.120 --> 0:11:44.880 SMP futures are given up twenty six points right now. 0:11:44.960 --> 0:11:47.720 DALN future is down a hundred sixty four. Nastack futures 0:11:47.720 --> 0:11:49.760 are lowered by a hundred twenty two points, leading to 0:11:49.840 --> 0:11:53.640 declines by one percent on the Nastack futures. The tenure 0:11:53.679 --> 0:11:56.640 treasury is now up twenty four thirty seconds yield two 0:11:56.679 --> 0:11:59.120 point eight to per cent more on the market. Sell 0:11:59.160 --> 0:12:03.079 off next will be making with Michael Howson of CMC Markets. 0:12:03.080 --> 0:12:08.800 This is Bloomberg. Bloomberg Day Break is brought to you 0:12:08.800 --> 0:12:10.880 by the Jewish Communal Fund j c F S Donor 0:12:10.880 --> 0:12:13.199 Advice Fund is the smart choice to manage your philanthropy, 0:12:13.320 --> 0:12:16.520 especially in times of crisis. Make your giving impactful. Visit 0:12:16.600 --> 0:12:23.200 j c F n Y dot org, markets headlines and 0:12:23.360 --> 0:12:26.600 breaking news twenty four hours a day at Bloomberg dot com, 0:12:26.720 --> 0:12:29.800 the Bloomberg Business at and at Bloomberg Quick Tape. This 0:12:30.200 --> 0:12:39.600 is a Bloomberg Business Flash and I'm Cameron Moscow Global 0:12:39.640 --> 0:12:41.840 stocks and you want to stock index futures are falling 0:12:41.880 --> 0:12:45.000 this morning as stubborn inflation in the world's biggest economy 0:12:45.040 --> 0:12:47.960 asked the case for more aggressive monetary timing by the FED. 0:12:48.160 --> 0:12:50.280 If you check the markets every fifteen minutes throughout the 0:12:50.280 --> 0:12:53.040 trading day on Bloomberg right now, is in Key futures 0:12:53.040 --> 0:12:55.679 down twenty nine points to Dow futures down what every 0:12:56.000 --> 0:12:59.520 nastagg futures down on the decks in Germany's down two 0:12:59.520 --> 0:13:02.800 point four percent, ten year treasury up twenty five thirty seconds, 0:13:02.880 --> 0:13:04.960 the yield at two point eight two percent. They yield 0:13:05.000 --> 0:13:08.000 on the two year two point five seven percent, Nimex 0:13:08.040 --> 0:13:09.920 screwed oil down one and a half percent, down a 0:13:09.960 --> 0:13:12.440 dollar fifty seven at a hundred four dollars, eighteen cents 0:13:12.440 --> 0:13:14.920 of Barrel Comic School down a quarter percent or four 0:13:14.960 --> 0:13:18.719 dollars ninety cents at eighteen eighty announced the euro one 0:13:18.760 --> 0:13:21.360 point oh four three six against the dollar, British round 0:13:21.360 --> 0:13:23.360 one point to two oh six, and they yet at 0:13:23.360 --> 0:13:26.640 one twenty eight point seven seven and bitcoins falling down 0:13:26.679 --> 0:13:29.760 almost three and a half percent at twenty seven thousand, 0:13:29.800 --> 0:13:33.200 four hundred dollars. That's a Bloomberg business flashdown. Here's Muchael 0:13:33.240 --> 0:13:35.400 Barre with more on what's going on around the world. 0:13:35.520 --> 0:13:39.120 Muchael Karen, thank you very much. Ukraine's military says Russian 0:13:39.200 --> 0:13:42.040 forces are continuing air strikes on the Steel plan in 0:13:42.160 --> 0:13:45.800 Merry Yupol. It comes on day seventy eight of the ward. 0:13:46.240 --> 0:13:49.760 Finland's president and prime ministers say that vary in favor 0:13:49.840 --> 0:13:54.000 of applying for NATO membership. Neighboring Sweden is expected to 0:13:54.080 --> 0:13:57.120 decide on joining NATO in the coming days. In the 0:13:57.240 --> 0:14:00.160 NHL playoffs, Rangers stay alive after beating the Penguin in 0:14:00.280 --> 0:14:02.880 Game five. The Capitols lost to the path there's the 0:14:02.960 --> 0:14:06.440 fall behind in that series three games to two NBA Playoffs, 0:14:06.520 --> 0:14:08.920 the Celtics lost to the Bucks and are now on 0:14:09.000 --> 0:14:12.040 the brink of elimination. The Warriors lost to the grizzly 0:14:12.280 --> 0:14:16.000 Golden State still leads that series three two. In baseball, 0:14:16.080 --> 0:14:18.480 Yankees one, Mets lost to the Nationals, Red Sox and 0:14:18.559 --> 0:14:22.400 Orioles lost the Giants. And A's one Global News twenty 0:14:22.440 --> 0:14:25.160 four hours a day on air and on Bloomberg Quicktanch, 0:14:25.360 --> 0:14:28.360 powered by more than twenty seven hundred journalists analysts more 0:14:28.360 --> 0:14:32.720 than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, Okay, Michael, 0:14:32.760 --> 0:14:35.160 Thanks six nineteen now on Wall Street Life from the 0:14:35.160 --> 0:14:38.400 Bloomberg Intractive Broker Studios. This is Bloomberg Daybreak. Want to 0:14:38.440 --> 0:14:41.400 go now right to Michael Houston, chief market analyst at 0:14:41.440 --> 0:14:45.480 CMC Markets. As we watched the sell off continuing equities, Michael, 0:14:45.520 --> 0:14:49.640 it seems like markets find further ways to move lower. 0:14:50.040 --> 0:14:53.640 How much further do you think this could run? Yeah? 0:14:53.840 --> 0:14:56.920 Lost last week. I think you asked me the question, um, 0:14:57.200 --> 0:15:00.080 are we in a bad market? And I saw on 0:15:00.160 --> 0:15:01.880 the fence a little bit. I said, you know, if 0:15:01.920 --> 0:15:05.080 we break four thousand, one hundred on the SMP and 0:15:06.000 --> 0:15:08.360 and around about twelve thousand, nine hundred on the Nasdack. 0:15:08.760 --> 0:15:11.400 Then yeah, absolutely, I think we would be, and I 0:15:11.520 --> 0:15:15.520 think we do have significantly further to run. I think 0:15:15.560 --> 0:15:19.840 the market reaction to those breaks that I highlighted last 0:15:19.880 --> 0:15:23.440 week suggests that we can see three thousand, eight hundred 0:15:23.480 --> 0:15:26.480 on the SMP initially on the move to three and 0:15:26.520 --> 0:15:30.080 a half thousand, and eleven thousand, seven hundred on the 0:15:30.120 --> 0:15:32.960 Nasdack on the way to potentially ten and a half 0:15:33.000 --> 0:15:35.440 thousand over the course of the next few weeks and months. 0:15:35.680 --> 0:15:37.440 Now we're not too far from either of those levels 0:15:37.480 --> 0:15:41.520 now at the SMP closing at five yesterday, do you 0:15:41.720 --> 0:15:45.120 see this market move as overdone? Is it the right 0:15:45.240 --> 0:15:50.680 reaction to what could come from the Federal Reserve? I 0:15:50.800 --> 0:15:52.720 think it is. I think if you look at it 0:15:52.800 --> 0:15:56.600 in the context of the growth outlook. We got GDP 0:15:56.760 --> 0:15:59.440 numbers out of the UK this morning. We saw a 0:15:59.560 --> 0:16:02.560 march in traction, which means the UK economy has only 0:16:02.640 --> 0:16:07.160 really expanded in January this year, with inflation repressure is 0:16:07.240 --> 0:16:09.560 expected to grow over the course of the rest of 0:16:09.600 --> 0:16:13.040 the year. You've got a cost of living crisis. Certainly, 0:16:13.120 --> 0:16:17.200 those CPI numbers yesterday that we saw from the US 0:16:17.440 --> 0:16:21.360 suggests that the U. S consumer is starting to or 0:16:21.520 --> 0:16:24.400 is going to start feeling the pressure. Certainly, the consumer 0:16:24.480 --> 0:16:27.240 credit numbers out of the US over the past two 0:16:27.320 --> 0:16:31.720 months worry me immensely. We've been We've seen massive growth there, 0:16:32.760 --> 0:16:36.200 and I would argue that the excess savings that the U. S. 0:16:36.280 --> 0:16:39.520 Consumer had over the course of the past twelve months 0:16:40.120 --> 0:16:43.360 has gone because why would you borrow on a credit 0:16:43.440 --> 0:16:47.280 card when rates are going up? Because your repayments are 0:16:47.320 --> 0:16:51.000 going to be inordinately expensive. So I think a big 0:16:51.080 --> 0:16:55.360 test next week will be US retail sales for April, 0:16:55.640 --> 0:16:58.040 but also the numbers from Walmart and Target. What will 0:16:58.080 --> 0:17:01.200 they tell us about the U. S. Conshumor, well, what 0:17:01.320 --> 0:17:03.000 kind of test do you think we could see from 0:17:03.080 --> 0:17:05.800 producer prices later this morning? Are you looking for further 0:17:05.920 --> 0:17:09.720 signs of stickiness and inflation on the producer side? I 0:17:09.840 --> 0:17:12.520 am simply because I think we saw a bigger than 0:17:12.600 --> 0:17:15.439 expected rise in the numbers for March. They went up 0:17:15.440 --> 0:17:18.879 to eleven. They went up to eleven. Now we are 0:17:18.960 --> 0:17:22.320 expecting a small moderation to ten point seven. But I 0:17:22.400 --> 0:17:25.439 don't think it's going to be as big a moderation 0:17:25.880 --> 0:17:30.480 as perhaps markets pricing in look at prices play components 0:17:30.520 --> 0:17:32.919 on the I s M. They actually spiked up in April, 0:17:33.040 --> 0:17:36.640 so why would we expect a decline or a significant decline? 0:17:36.960 --> 0:17:39.720 And producer prices and they generally tend to be fairly 0:17:39.840 --> 0:17:43.240 decent forward looking indicators. So I think there is a 0:17:43.320 --> 0:17:47.199 concern about stagflation going forward. And you can look at 0:17:47.200 --> 0:17:49.800 the US labor market and say, well, yes, there are 0:17:49.880 --> 0:17:53.119 significant amount of vacancies. I'll be interested to see how 0:17:53.240 --> 0:17:58.000 quickly those eleven million vacancies disappear as the economy continues 0:17:58.080 --> 0:18:00.840 to slow. If we can do need to see financial 0:18:00.920 --> 0:18:03.119 conditions taking like they are right now. What does that 0:18:03.240 --> 0:18:06.479 mean for the FED? I think it makes it very 0:18:06.560 --> 0:18:09.640 very difficult for them. I mean they can be at 0:18:09.680 --> 0:18:13.240 the moment they seem very very focused on getting inflation 0:18:13.359 --> 0:18:16.520 under control, and I don't think they've seen that bothered 0:18:16.560 --> 0:18:20.360 about causing a recession because potentially, I think they see 0:18:20.359 --> 0:18:24.200 the alternatives as far worse. Um So, the U s 0:18:24.240 --> 0:18:26.640 economy is in much better shapes, and say, for example, 0:18:27.000 --> 0:18:30.560 the economy here in the UK or Europe. But I 0:18:30.640 --> 0:18:34.080 think Ultimately they are going to have to force a 0:18:34.160 --> 0:18:38.639 significant slowdown in order to get inflation under control. The 0:18:38.680 --> 0:18:41.240 bigger question is whether that's the price they're willing to pay. 0:18:42.640 --> 0:18:44.840 So in our last thirty seconds here, Michael, or do 0:18:44.920 --> 0:18:50.880 you expect that the US reaches a recession this year? Uh? 0:18:52.080 --> 0:18:55.360 Putting me on the spot. Timing is always very very difficult. 0:18:55.520 --> 0:18:58.360 I think it's very very difficult. I mean, obviously we've 0:18:58.400 --> 0:19:01.879 seen a first quarter contraction. I'll be prebady surprised if 0:19:01.920 --> 0:19:05.480 we see a significant pickup in Q two, but who knows, 0:19:05.680 --> 0:19:07.800 we could well see one towards the end of the 0:19:07.960 --> 0:19:10.960 mightbe Q full beginning of Q one. Al right, well, 0:19:11.160 --> 0:19:13.480 as as always, Michael, good to get your thoughts. Thanks 0:19:13.520 --> 0:19:16.359 for this. Michael Houston is a Chief market analyst at 0:19:16.440 --> 0:19:22.160 CMC Markets. As we watch equity markets fall, SMP futures 0:19:22.240 --> 0:19:24.560 right now down twenty eight points, STAFF futures down a 0:19:24.640 --> 0:19:28.440 hundred eighty five NASDAC futures down a hundred thirty two points, 0:19:28.480 --> 0:19:32.400 a drop of one point one percent. Even more bleeding 0:19:32.560 --> 0:19:34.760 in Europe, with the decks in Germany down to in 0:19:34.840 --> 0:19:37.440 a third percent, to cat in Paris down two point 0:19:37.600 --> 0:19:41.320 seven percent. The tenure Treasury right now up twenty three 0:19:41.520 --> 0:19:44.760 thirty seconds, the yield just shy of two point three 0:19:44.800 --> 0:19:47.560 percent yield on the two year two point five eight, 0:19:47.760 --> 0:19:50.640 and the thirty year yield below three percent at two 0:19:50.800 --> 0:19:54.040 point nine six almost two point nine seven on the 0:19:54.320 --> 0:19:56.760 long term. Note just to head more on the market 0:19:56.800 --> 0:20:02.280 sell off and Disney's dim outlook. Five things you need 0:20:02.320 --> 0:20:04.480 to notice start the day next. I'm Bloomberg day Break, 0:20:07.400 --> 0:20:10.200 Bloomberg eleven three oh weather, partly sunny, low seventies today, 0:20:10.240 --> 0:20:12.879 Scattered showers possible tomorrow with a high in year seventy, 0:20:13.040 --> 0:20:16.440 and we bring the showers back possibly on Saturday as well, 0:20:16.480 --> 0:20:19.359 with highest and the low seventies currently sixty in Central Park. 0:20:22.280 --> 0:20:26.800 Broadcasting live from the Bloomberg Interacted Broker Studio in New York. 0:20:26.920 --> 0:20:31.560 Bloomberg Eloving Freo to Washington, d C, Bloomberg one to Boston, 0:20:31.720 --> 0:20:35.120 Bloomberg one O six one to San Francisco, Bloomberg Nong 0:20:35.200 --> 0:20:38.000 sixteen to the country, Sirius XM to the one nine 0:20:38.040 --> 0:20:40.920 teen and around the globe the Bloomberg Business app in 0:20:41.040 --> 0:20:50.440 Bloomberg Radio dot com. This is Bloomberg Daybreak in a 0:20:50.520 --> 0:20:52.679 six thirty on Wall Street Good morning. I'm Nathan Hagar 0:20:52.960 --> 0:20:55.639 and I'm kerin Moscow. We're just about three hours away 0:20:55.680 --> 0:20:57.680 from the open of US trading. Time to the five 0:20:57.720 --> 0:20:59.680 things you need to notice start your day. Brought to 0:20:59.760 --> 0:21:03.199 you I I b KR Investment Advisers switched to Interactive 0:21:03.240 --> 0:21:07.280 Brokers for lowest cost global trading and turnkey custody solutions 0:21:07.600 --> 0:21:10.199 no ticket charges and no conflicts of your interests at 0:21:10.240 --> 0:21:13.480 ib k R dot com slash r I A first, 0:21:13.640 --> 0:21:17.600 Yesterday's hot inflation reading is sending markets downward. Stocks begin 0:21:17.680 --> 0:21:20.520 the session at their lowest level since March of one. 0:21:20.840 --> 0:21:23.520 Former New York Fed Governor Bill Dudley says Fetchier J. 0:21:23.680 --> 0:21:26.760 Powell may have to tighten monetary policy more than he's 0:21:26.800 --> 0:21:30.000 planning to. I think he's four to five or higher. Um, 0:21:30.200 --> 0:21:32.400 you know I was three or four maybe six months ago. 0:21:32.960 --> 0:21:35.639 From four to five shocked me if I'm you know, 0:21:35.800 --> 0:21:38.399 five to six a few months from now. Former New 0:21:38.480 --> 0:21:40.920 York Fed Governor Bill Dudley said the Federal Reserve must 0:21:40.960 --> 0:21:44.520 forcefully state how it will hate its inflation target. We'll 0:21:44.520 --> 0:21:47.119 get another key reading on inflation this morning when the 0:21:47.119 --> 0:21:49.840 Preucer Price Index is released. You were watching markets in 0:21:49.880 --> 0:21:52.760 Europe and Asia fall as well. Care in European stocks 0:21:52.760 --> 0:21:55.399 are poised for their fifth straight week of declines, and 0:21:55.480 --> 0:21:58.879 crypto assets also tumbling. Here, Nathan Bloomberg's or Nita Young 0:21:58.960 --> 0:22:01.800 joins US Live with more. Good morning, Renida, Good morning Karen. 0:22:01.840 --> 0:22:04.520 The crypto market has lost more than two hundred billion 0:22:04.600 --> 0:22:07.720 dollars in wealth over the past twenty four hours. Bitcoins 0:22:07.760 --> 0:22:10.960 trading at its lowest level since twenty At one point 0:22:11.040 --> 0:22:14.280 this morning, it touched just over twenty five thousand. Now 0:22:14.520 --> 0:22:17.600