WEBVTT - Bloomberg Daybreak: May 27, 2022 - Hour 1 (Radio) 0:00:02.320 --> 0:00:05.560 Live from the Bloomberg Interactive Broker Studios. This is Bloomberg 0:00:05.640 --> 0:00:09.960 day Break for Friday two. Coming up this hour. Stocks 0:00:09.960 --> 0:00:12.960 are on track for their first weekly gain in two months. 0:00:13.320 --> 0:00:16.280 City Grove downgrades US equities on the risk of our session. 0:00:16.520 --> 0:00:20.240 The US and Taiwan plant talks to increase economic ties, 0:00:20.600 --> 0:00:24.159 and Texas Governor Greg Abbott will reportedly not address the 0:00:24.280 --> 0:00:27.520 n r a's meeting in person. Today. Triples s people 0:00:27.520 --> 0:00:30.160 will pack the roads for the long Memorial Day weekend. 0:00:30.200 --> 0:00:33.479 Plus the w h JOE confirmed nine cases of monkeypox 0:00:33.520 --> 0:00:35.760 in the U S. I'm Michael barr more A and 0:00:36.040 --> 0:00:40.040 Alice got Edinburg and Yankees win in the Rangers face elimination. 0:00:40.240 --> 0:00:45.000 I'll have that more coming up in sports. That's all's 0:00:45.040 --> 0:00:48.680 training ahead on Bloomberg day Break on Bloomberg eleven, Free 0:00:48.680 --> 0:00:53.120 on New York, Bloomberg one, Washington, d C, Bloomberg one 0:00:53.120 --> 0:00:57.600 oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius 0:00:57.800 --> 0:01:01.200 x M one nineteen and around the world Bloomberg Radio 0:01:01.280 --> 0:01:08.640 dot Com and via the Bloomberg Business. Good Friday Morning, 0:01:08.680 --> 0:01:11.440 I'm Nathan Hacker and I'm Karen Moscow and US Dock 0:01:11.480 --> 0:01:14.120 Index futures are on the rise this morning. We're coming 0:01:14.160 --> 0:01:15.560 up to five oh one on Wall Street, and we 0:01:15.640 --> 0:01:18.120 check the markets every fifteen minutes throughout the trading day. 0:01:18.240 --> 0:01:21.000 On Bloomberg. Right now, SNP futures are up about twelve 0:01:21.000 --> 0:01:23.520 points down Future is up thirty eight. Nastag Future is 0:01:23.600 --> 0:01:26.720 up fifty one ten. Your treasury down one thirty second. 0:01:26.760 --> 0:01:29.280 The yield two point seven five percent. That yield on 0:01:29.360 --> 0:01:32.319 the two year two point four seven percent. Nin Max 0:01:32.360 --> 0:01:34.680 Screwed Oil is up three ten percent or thirty three 0:01:34.760 --> 0:01:37.360 cents at a hundred fourteen dollars forty two cents of barrel. 0:01:37.640 --> 0:01:39.920 Comex's Gold is up a third of per cent, or 0:01:39.920 --> 0:01:44.080 six dollars ninety cents at eighteen sixty eight announced and Nathan, 0:01:44.280 --> 0:01:46.640 all right, Karen, thank you well. The SNP five hundred 0:01:46.680 --> 0:01:49.120 this morning is on track for its first weekly gain 0:01:49.640 --> 0:01:52.720 in nearly two months. The index rose two percent yesterday. 0:01:52.720 --> 0:01:55.760 It's biggest game there in ten days. Max Wasserman is 0:01:55.840 --> 0:01:59.960 founder and senior portfolio manager at Miramark Capital. I'm optimists 0:02:00.000 --> 0:02:02.240 sticking a long term. It doesn't mean you could get 0:02:02.240 --> 0:02:04.360 it more downside, and we could see another five to 0:02:04.400 --> 0:02:07.360 seven percent on the downside, but we think we're through 0:02:07.360 --> 0:02:09.880 the majority of the problem. And it's been a bad market. 0:02:09.919 --> 0:02:12.799 I mean, the nazeck was down and the SMP was 0:02:12.800 --> 0:02:15.320 close to down twenty. It could still go further, but 0:02:15.480 --> 0:02:18.120 we're not We're not bailing on this market. My mere 0:02:18.160 --> 0:02:21.519 Mark Capitals. Max Watsman made those comments on Bloomberg Business Week. 0:02:21.560 --> 0:02:23.720 You can catch the program weekdays from two to five 0:02:23.760 --> 0:02:27.280 pm Wall Street Time right here on Bloomberg Radio. Meantime, 0:02:27.360 --> 0:02:30.160 Nathan City Group is getting more bearish on stocks, and 0:02:30.280 --> 0:02:32.960 we get the details live from Bloomberg's redit a Young 0:02:33.000 --> 0:02:35.560 good Morning, Ready to good morning, Karen's City Group cut 0:02:35.560 --> 0:02:38.800 its recommendation on US stocks to neutral on the risk 0:02:38.840 --> 0:02:42.440 of a recession. Strategist there joining an increasing number of 0:02:42.520 --> 0:02:45.639 banks and warning of a growth slow down. They stay 0:02:45.680 --> 0:02:47.880 with this high level of uncertainty and the lack of 0:02:47.960 --> 0:02:51.600 reassurance from the Federal Reserve. The market is showing elements 0:02:51.680 --> 0:02:56.320 of a deflating bubble, but opinion on US equities remains divided. 0:02:56.680 --> 0:02:59.680 Some Wall Street analysts are betting on a rebound. They 0:02:59.720 --> 0:03:03.560 believe that the odds of a recession are overstated. Live 0:03:03.600 --> 0:03:06.960 in New York, I'm Reneda Young, Bloomberg Daybreak, Renina, thank you. 0:03:07.000 --> 0:03:11.399 A solid retail elearnings help sentiment yesterday. Today, retail results 0:03:11.400 --> 0:03:16.000 are not helping. GAP shares are down sixteen percent after 0:03:16.040 --> 0:03:18.800 that company's first quarter profit missed estimates. We get that 0:03:18.800 --> 0:03:22.959 story from Bloomberg's Charlie Pellet. It shows that operational missteps 0:03:23.000 --> 0:03:27.200 and higher costs are hurting the apparel retailer. The company, 0:03:27.240 --> 0:03:30.720 which also owns the Banana Republic and Old Navy brands, 0:03:30.800 --> 0:03:33.560 posted a loss of forty four cents of share in 0:03:33.560 --> 0:03:38.360 the quater ending April, below analysts average estimates. Foliar earnings 0:03:38.360 --> 0:03:41.440 are now seen at between forty and seventy cents a share, 0:03:41.480 --> 0:03:44.280 well below the dollar eighty five to two oh five 0:03:44.440 --> 0:03:49.160 range previously provided In New York. Charlie Pellet, Bloomberg day Break, 0:03:49.280 --> 0:03:51.480 A right, Charlie, thank you. All US futures are still 0:03:51.560 --> 0:03:54.640 higher despite those results from Gap, and sentiment was also 0:03:54.720 --> 0:03:58.280 strong overnight in Asia after solid earnings from Chinese tech companies. 0:03:58.520 --> 0:04:01.360 We get the recap from Bloomberg's LEAs Sally and Singapore. 0:04:01.400 --> 0:04:04.760 Good morning, Juliet, Good morning Karen. The Regional Benchmark Index 0:04:04.800 --> 0:04:06.920 posted its best gain in a week, rising for the 0:04:06.960 --> 0:04:09.240 first time in four sessions to set itself up for 0:04:09.320 --> 0:04:12.760 a second weekly advance. Ali Baba and Baidu Shares rallied 0:04:12.760 --> 0:04:15.160 in Hong Kong, lifting the Hang San Tech Index after 0:04:15.280 --> 0:04:18.920 both beat sales forecast. Japanese equities also rose as the 0:04:19.000 --> 0:04:21.839 nation announced it would reopen to select tours on package 0:04:21.880 --> 0:04:25.400 tools from June ten, and Australian retailers recorded a fourth 0:04:25.440 --> 0:04:28.760 consecutive months of sales gains, highlighting underlying momentum in the 0:04:28.800 --> 0:04:32.480 economy and a degree of resilience among consumers. In Singapore 0:04:32.560 --> 0:04:36.280 Juliet Sally Bloomberg, debreak Okay, Juliet, thank you. In Shanghai, 0:04:36.360 --> 0:04:39.200 we're seeing more signs of the extreme steps being taken 0:04:39.200 --> 0:04:42.680 to keep factories running during a COVID lockdown. Workers at 0:04:42.720 --> 0:04:46.240 an Apple supplier, Quanta Computer, have started revolting against their 0:04:46.279 --> 0:04:48.520 bosses after they were locked down in their factory for 0:04:48.600 --> 0:04:51.600 almost two months. They've been fighting with guards and rushing 0:04:51.640 --> 0:04:55.640 past isolation barriers in search of daily necessities. The current 0:04:55.680 --> 0:04:58.960 system forces workers to live and sleep on factory sites, 0:05:00.200 --> 0:05:02.720 and now Nathan China is coming under even more pressure 0:05:02.760 --> 0:05:06.160 from the White House. As Bloomberg said, Baunster reports, Secretary 0:05:06.160 --> 0:05:08.960 of State Anthony B. Lincoln is vowing to influence China's 0:05:09.000 --> 0:05:12.600 behavior by shaping the world around Beijing. B Lincoln says 0:05:12.640 --> 0:05:15.320 this is a charged moment for the globe and says, well, 0:05:15.400 --> 0:05:17.960 he would like to work with China. Beijing cannot be 0:05:18.000 --> 0:05:20.400 trust as stand ready to increase our direct communication with 0:05:20.440 --> 0:05:24.159 Beijing across a full range of issues, and we hope 0:05:24.240 --> 0:05:27.680 that that can happen, but we cannot rely on Beijing 0:05:27.839 --> 0:05:32.000 to change its trajectory. Blincoln says, alliances like the Quad this. 0:05:32.120 --> 0:05:34.680 At the same time, the US and Taiwan have announced 0:05:34.680 --> 0:05:39.440 plans to enter into economic talks enhancing economic cooperation and 0:05:39.520 --> 0:05:44.240 supply chain resiliency. Ian San Francisco, I'm at Baxter Bloomberg daybreak, 0:05:44.279 --> 0:05:46.680 All right, ed, thank you. Meantime, the war in Ukraine 0:05:46.880 --> 0:05:49.760 rages on, and now the US is rejecting a food 0:05:49.800 --> 0:05:53.839 for sanctions relief plan floated by Russian President Vladimir Putin. 0:05:53.839 --> 0:05:57.599 The proposal would facilitate fertilizer and grain exports, but only 0:05:57.680 --> 0:06:00.560 if sanctions on Russia are lifted. The US says, the 0:06:00.640 --> 0:06:03.679 Kremlin's blocking the shipments and stoking concerns of a global 0:06:03.680 --> 0:06:06.520 food shortage, and we turn Closer to home Now Nathan 0:06:06.560 --> 0:06:09.240 with the latest on the school shooting in Yuvaldi, Texas. 0:06:09.279 --> 0:06:12.680 The National Rifle Association is holding its annual convention in 0:06:12.800 --> 0:06:16.720 Houston today, but Texas Governor Greg Abbott won't be there. 0:06:17.000 --> 0:06:19.719 The Dallas Morning News says he's drawn plans to address 0:06:19.760 --> 0:06:23.880 the event in person to give a prerecorded speech instead. Meantime, 0:06:23.960 --> 0:06:27.680 Senate Democrats say there's room for compromise on gun control legislation. 0:06:27.880 --> 0:06:31.080 We spoke with Maryland Democrat Ben Kurten. What I'd like 0:06:31.120 --> 0:06:33.919 to see don is certainly closed. The loopholes in the 0:06:33.960 --> 0:06:38.520 background check red flags are consistent with that. We need 0:06:38.560 --> 0:06:41.960 to deal with the military style UH and high capacity 0:06:42.560 --> 0:06:46.920 UH magazines that are out there that are the weapon 0:06:47.200 --> 0:06:50.239 choice for those who want to commit mass murders. Senator 0:06:50.240 --> 0:06:53.120 Ben Carter of Maryland spoke with our Washington correspondent Joe 0:06:53.160 --> 0:06:56.080 Matthew on Bloomberg Sound on Catch the show weekdays at 0:06:56.080 --> 0:06:59.080 five pm Eastern on Bloomberg Radio, And in the interest 0:06:59.120 --> 0:07:01.680 of transparent see we should note that Michael Bloomberg, the 0:07:01.720 --> 0:07:04.440 founder and majority owner of Bloomberg Help, the parent of 0:07:04.440 --> 0:07:07.839 Bloomberg Radio, is a donor to groups that support gun control. 0:07:08.080 --> 0:07:10.080 All right, Karen, right now, S and P futures are 0:07:10.160 --> 0:07:13.160 up seven point Stout futures up twelve, Nastack futures up 0:07:13.160 --> 0:07:15.960 thirty five. Straight ahead, your latest local headlines and the 0:07:16.040 --> 0:07:24.080 check of sports. This is Bloomberg. It's now five oh 0:07:24.120 --> 0:07:26.360 seven on Wall Street. We're sixty four degrees in Central 0:07:26.360 --> 0:07:29.080 Park dealing with major problems on routes seventy eight this morning. 0:07:29.120 --> 0:07:31.360 We'll get to the details on that traffic shortly. First, 0:07:31.360 --> 0:07:33.880 Michael Bars here with more on what's going on in 0:07:33.920 --> 0:07:37.360 New York and around the world on this Friday morning. Michael, 0:07:37.640 --> 0:07:41.120 Good morning, Nathan, and if you're traveling this Memorial Day weekend, 0:07:41.200 --> 0:07:44.640 get ready for busy airports and roads. Despite the rising 0:07:44.720 --> 0:07:48.320 costs of gas and airfare. The Triple As has more 0:07:48.360 --> 0:07:51.320 than thirty nine million people will travel fifty miles or 0:07:51.440 --> 0:07:55.440 more during the holiday weekend. Triple A spokesman Andrew Gross 0:07:55.480 --> 0:07:57.760 says the majority of them will be hitting the roads 0:07:58.080 --> 0:08:01.680 despite these record I guess line crisis. We are expecting, 0:08:01.760 --> 0:08:04.480 based on what we're seeing Memorial Day, that it's going 0:08:04.520 --> 0:08:08.560 to be a variable bust travel period for summer. People 0:08:08.840 --> 0:08:11.640 just want to get out and go A gallon of 0:08:11.720 --> 0:08:15.400 regular now tops four dollars in all fifty states. New 0:08:15.480 --> 0:08:18.640 York City will bid to host the Democratic National Convention 0:08:18.680 --> 0:08:22.760 in Madison Square Garden in four. Mayor Eric Adams says 0:08:22.880 --> 0:08:25.640 this is a team New York moment. This is not 0:08:25.720 --> 0:08:29.760 about Democratic Republican It's about how do we bring resources 0:08:29.800 --> 0:08:32.560 to our city. The last time New York City hosts 0:08:32.559 --> 0:08:37.000 at the Democratic Convention was when former President Bill Clinton 0:08:37.040 --> 0:08:40.640 was nominated. Federal health officials say there are now nine 0:08:40.720 --> 0:08:44.080 presumptive cases of monkeypox in the US, including one in 0:08:44.120 --> 0:08:47.000 New York City. The city's Department of Health and Mental 0:08:47.080 --> 0:08:49.840 Hygiene said that officials will be treating this as a 0:08:49.880 --> 0:08:54.880 probable case and will continue its contact tracing efforts globally. 0:08:54.920 --> 0:08:58.720 The WHO says it has confirmed about two monkeypox cases. 0:08:59.080 --> 0:09:04.120 The WHOS Dr Maria van Kirkhov is addressing misinformation about 0:09:04.160 --> 0:09:06.280 the spread of the virus. She notes that it can 0:09:06.320 --> 0:09:09.880 be spread through sexual contact, but it is not an 0:09:09.920 --> 0:09:13.680 STD and although it is not a new virus, it's 0:09:13.720 --> 0:09:16.400 now popping up in countries where it doesn't usually spread. 0:09:16.800 --> 0:09:19.600 We are asking countries to expand surveillance so that we 0:09:19.640 --> 0:09:23.040 are looking for cases of monkey pops um cases of 0:09:23.120 --> 0:09:28.040 rash um, particularly in people who present at sexual health 0:09:28.040 --> 0:09:33.319 clinics or emergency departments. Dr Maria van Kirkhov answered questions 0:09:33.320 --> 0:09:37.080 on the whose Facebook page. At California Parole Panel has 0:09:37.120 --> 0:09:41.000 recommended the release of Charles Manson follower Patricia Krenwinkle she 0:09:41.280 --> 0:09:43.760 rolled Helter Skelter on a Wall to using the blood 0:09:43.840 --> 0:09:46.360 of one of their victims, including actor Sharon Tate. In 0:09:46.440 --> 0:09:49.440 nineteen sixty nine, Global News twenty four hours a day 0:09:49.480 --> 0:09:52.000 on air and on Bloomberg Quick Take, powered by more 0:09:52.320 --> 0:09:54.720 than twenty seven hundred journalists and analysts and more than 0:09:54.760 --> 0:09:58.520 a hundred twenty countries. Michael bar this is Bloomberg, Nathan, Michael, 0:09:58.640 --> 0:10:05.280 thank you almost five ten on Wall straight time for 0:10:05.320 --> 0:10:09.200 the Bloomberg Sports up dat. Here Scott Seideberg, Banks, Nathan Nesty, 0:10:09.280 --> 0:10:12.559 Nestor lives up to his name. Nestor Cortes through eight 0:10:12.600 --> 0:10:14.840 innings of one run balls, the Yankees beat the race 0:10:14.960 --> 0:10:18.520 seven too. At the Trump Courts has allowed just four hits, 0:10:18.559 --> 0:10:22.600 retiring fourteen straight. At one point here was Aaron Boone. 0:10:22.800 --> 0:10:24.440 I think how efficient he got, you know, I had 0:10:24.400 --> 0:10:26.560 to work a little bit in a first inning, and 0:10:26.600 --> 0:10:29.280 then he just dialed in from from a command standpoint 0:10:29.320 --> 0:10:33.160 and kind of cruise there, uh for much of the game. Um, 0:10:33.160 --> 0:10:35.120 but I thought he was really sharp. Prior to the game, 0:10:35.160 --> 0:10:38.800 the Yankees signing former Cardinals All star Mett Carpenter. He 0:10:38.840 --> 0:10:41.640 went over two with the walk as the designated hitter. 0:10:41.679 --> 0:10:43.400 The Mets were off last night. They begin to set 0:10:43.400 --> 0:10:46.319 with the Phillies tonight at City Field. The Rangers are 0:10:46.360 --> 0:10:49.760 on the brink of elimination after falling to Carolina three 0:10:49.800 --> 0:10:52.800 one last night. Game six at the Garden tomorrow or 0:10:52.920 --> 0:10:56.440 nights elsewhere. The Oilers onto the Western Conference Finals after 0:10:56.480 --> 0:11:00.280 beating the Flames five four in overtime. NBA allowed flight. 0:11:00.360 --> 0:11:02.720 The Warriors beat the Mavericks to earn a trip back 0:11:02.760 --> 0:11:05.120 to the NBA Finals for the sixth time in the 0:11:05.200 --> 0:11:08.600 last eight seasons. Tonight, the Celtics look to close out 0:11:08.640 --> 0:11:11.400 the heat in the Eastern Conference Finals. Tennis at the 0:11:11.440 --> 0:11:14.800 French Open, make it thirty straight for Egles the Optic, 0:11:15.080 --> 0:11:17.640 The world's number one, defeated Allison Risk to extend the 0:11:17.720 --> 0:11:20.960 longest winning streak in women's tennis in Serena won thirty 0:11:20.960 --> 0:11:24.800 four matches in a row back in twenty I'm Scott 0:11:24.920 --> 0:11:28.520 Edinburg with Bloomberg Sports. Nathan all Right, Scott, Thanks, Let's 0:11:28.520 --> 0:11:30.560 take a look at this market this morning. We have 0:11:30.720 --> 0:11:34.240 futures moving higher, with the SMP points for its first 0:11:34.480 --> 0:11:37.920 weekly gain in what seven weeks now. SMP futures right 0:11:37.920 --> 0:11:41.720 now up almost seven points. DAL futures up six. Dance 0:11:41.720 --> 0:11:45.319 Deck futures are higher by thirty three points. The tenure 0:11:45.360 --> 0:11:47.760 treasury right now is down to thirty seconds, with the 0:11:47.800 --> 0:11:50.040 yield two point seven five percent yield on the two 0:11:50.120 --> 0:11:54.080 year two point four seven Nimex cruds up to three 0:11:54.080 --> 0:11:56.200 tenths of percent, or thirty two cents at a hundred 0:11:56.200 --> 0:12:11.720 fourteen dollars forty one cents to barrel. And it's afternoon, 0:12:11.760 --> 0:12:14.640 a high near eighty degrees. More storms possible tomorrow with 0:12:14.679 --> 0:12:18.199 a high near eighty upper seventies, sunshine Sunday right now 0:12:18.720 --> 0:12:24.839 sixty four degrees. Markets, headlines and breaking news twenty four 0:12:24.880 --> 0:12:27.920 hours a day at Bloomberg dot Com, the Bloomberg Business 0:12:27.960 --> 0:12:37.400 at and at Bloomberg Quick Tape. He's a Bloomberg Business Flash, 0:12:37.840 --> 0:12:42.000 and I'm far at Moscow and European shares are higher. 0:12:42.200 --> 0:12:45.480 U S Dock indise futures are rising as well. They're 0:12:45.480 --> 0:12:47.959 all following Asian shares higher, heading for the best weekly 0:12:48.000 --> 0:12:51.480 advanced since mid March. It's scorning to European stocks anyway. 0:12:51.520 --> 0:12:53.920 The dollar is dropping. We checked the markets every fifteen 0:12:53.960 --> 0:12:56.160 minutes throughout the trading day. On bloomberg S and P 0:12:56.360 --> 0:12:58.679 Future is up seven points this morning. Down Future is 0:12:58.760 --> 0:13:01.320 up nine and nasday Future is up thirty two. The 0:13:01.400 --> 0:13:04.600 decks in Germany is up half percent ten. Your treasury 0:13:04.600 --> 0:13:07.040 down one thirty second. You have two point seven five percent. 0:13:07.160 --> 0:13:09.120 They yield on the two year two point four six 0:13:09.160 --> 0:13:12.000 percent now. iMX scret oil is up six tents percent 0:13:12.080 --> 0:13:14.240 or sixty eight cents at a hundred fourteen dollar seventy 0:13:14.240 --> 0:13:16.839 seven cents of barrel. Comic School is up half percent 0:13:16.920 --> 0:13:19.280 or eight dollars ninety cents in eighteen sixty two eighty 0:13:19.280 --> 0:13:22.000 announce the euro one point oh seven to eight against 0:13:22.040 --> 0:13:24.320 the dollar, British pound one point to six one three 0:13:24.360 --> 0:13:27.199 and again one twenty seven point oh three Bitcoin this 0:13:27.240 --> 0:13:30.000 morning moving lower, down one point seven percent at twenty 0:13:30.000 --> 0:13:32.720 eight thousand, nine hundred dollars. Today we are watching for 0:13:32.800 --> 0:13:35.520 reports on personal income and spending out at eight thirty 0:13:35.520 --> 0:13:39.079 Wall Street time, along with wholesale inventories and consumer sentiment 0:13:39.160 --> 0:13:41.720 is out at ten. That's a Bloomberg business Flash. Now 0:13:41.760 --> 0:13:44.360 here's Michael Barr with more on what's going on around 0:13:44.360 --> 0:13:48.200 the world. Muchael, Good morning, Good morning Karen. Texas Governor 0:13:48.240 --> 0:13:51.679 Greg Abbott reportedly dropped plans to address the National Rifle 0:13:51.760 --> 0:13:55.760 Association's annual meeting in person just days after the school 0:13:55.840 --> 0:13:59.240 shooting in Uvaldi that left twenty one people dead. According 0:13:59.320 --> 0:14:02.559 to the Dallas Morning News, Abbots scheduled to speak of 0:14:02.600 --> 0:14:06.000 the n A gathering in Houston starting today. The US 0:14:06.080 --> 0:14:09.280 rejected a plan by Russian President of Vladimir Putin to 0:14:09.360 --> 0:14:13.640 facilitate grain and fertilizer exports only if sanctions on his 0:14:13.720 --> 0:14:16.360 country are lifted. The US pins the blame on the 0:14:16.440 --> 0:14:21.120 Kremlin for blocking shipments and stoking concerns of global food shortages. 0:14:21.440 --> 0:14:24.240 In the NHL Playoffs, the Rangers are on the brink 0:14:24.240 --> 0:14:27.440 of elimination. New York lost to the Hurricanes three one 0:14:27.480 --> 0:14:30.760 in Game five. In the NBA Playoffs, the Warriors are 0:14:30.760 --> 0:14:33.000 in the finals. They won the West, beating the Mavericks. 0:14:34.600 --> 0:14:37.240 Global News twenty four hours a day on here and 0:14:37.400 --> 0:14:40.280 on Bloomberg Quick Take, powered by more than twenty seven 0:14:40.320 --> 0:14:42.920 hundred journalists and analysts more than a hundred twenty countries. 0:14:43.280 --> 0:14:46.440 Michael Barron, this is Bloomberg, Nathan. All right, Michael, thanks 0:14:46.480 --> 0:14:48.640 for coming up to five twenty on Wall Street Live 0:14:48.720 --> 0:14:52.440 from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. 0:14:52.520 --> 0:14:54.960 Let's turn out to another major story, a potential new 0:14:55.040 --> 0:14:58.280 challenge to China coming from the United States. Sources tell 0:14:58.280 --> 0:15:01.440 Bloomberg News the Biden administration and is planning economic talks 0:15:01.480 --> 0:15:04.400 with Taiwan. That's after the island was left out of 0:15:04.440 --> 0:15:07.720 the thirteen nation framework that President Biden announced in Tokyo 0:15:07.760 --> 0:15:10.040 earlier this week. From all of this, we're joined live 0:15:10.040 --> 0:15:13.560 from Hong Kong by Bloomberg Is Chief Asia Economics correspondent 0:15:13.920 --> 0:15:15.680 and the Current and they're good to have you with 0:15:15.760 --> 0:15:18.160 us this morning. What do we know about these talks? 0:15:18.200 --> 0:15:20.920 What do we expect them to entail? These folks are 0:15:21.000 --> 0:15:24.480 meant to be announced overcoming weeks, Nathan. The center of 0:15:24.520 --> 0:15:26.720 them seems to be all about working on areas such 0:15:26.720 --> 0:15:31.440 as trade facilitation and supply chains, improving trade in the 0:15:31.480 --> 0:15:36.160 agricultural products products under like. Some of those areas are 0:15:36.240 --> 0:15:39.880 quite similar to the pillars in that new Indo Pacific 0:15:39.880 --> 0:15:42.480 Economic Framework that you mentioned that was announced this week 0:15:42.560 --> 0:15:45.840 by President Biden in Tokyo. The framework, of course doesn't 0:15:45.920 --> 0:15:48.280 yet include Taiwan, so it might be part of the 0:15:48.280 --> 0:15:53.720 process of inching Taiwan closure towards involvement in that Nonetheless, 0:15:53.720 --> 0:15:57.680 though it's suggesting closer economic relations between YUST and Taiwan. 0:15:57.720 --> 0:15:59.680 But the details we have so far for our colleagues, 0:15:59.720 --> 0:16:02.400 Jenny learn out, the DC doesn't yet suggest it's getting 0:16:02.440 --> 0:16:06.720 towards a you know, an outright free trade deal per se. Well, 0:16:06.760 --> 0:16:09.280 that is something that Taiwan has been pressing for for 0:16:09.360 --> 0:16:11.840 some time, a free trade agreement with the United States. 0:16:11.880 --> 0:16:15.520 Have we gotten any reaction from China to this report? 0:16:16.040 --> 0:16:20.760 How would China likely react to this? Well, look, I 0:16:20.800 --> 0:16:23.800 think the Chinese response is all is consistent and fairly predictable. 0:16:24.040 --> 0:16:26.200 Predictable when it comes to this, when Nathan, they will 0:16:26.240 --> 0:16:28.640 all us pushed back against what they considered to be 0:16:28.680 --> 0:16:32.880 interference in its own affairs. We can serve We certainly 0:16:32.880 --> 0:16:34.920 know that in the past, for example, when the US 0:16:34.920 --> 0:16:37.840 has commed it on Taiwan, it has been met with 0:16:37.920 --> 0:16:41.200 a fairly fairly steering rebuke from the Chinese side. But 0:16:41.240 --> 0:16:44.840 nonetheless the U S I just seemed to be keen 0:16:45.280 --> 0:16:47.960 to push for close relations with Taiwan, but at the 0:16:48.000 --> 0:16:52.400 same time in sexual state such as say Lincoln's speech yesterday, 0:16:52.520 --> 0:16:54.560 as you know, he did mention the fact that overall 0:16:54.640 --> 0:16:57.800 US policy for the Taiwan hasn't changed. They don't support 0:16:57.840 --> 0:17:01.080 time and He's independence for example. So clearly the US 0:17:01.160 --> 0:17:04.000 is willing to push the boats to a certain extent 0:17:04.119 --> 0:17:07.679 in terms of US Taiwan economic relations. But you know, 0:17:07.720 --> 0:17:11.000 despite President Biden's comments, as they're also making it clear 0:17:11.040 --> 0:17:15.000 that the overall US Taiwan framework hasn't changed. Does China 0:17:15.680 --> 0:17:19.720 agree with that that the U s policy regarding Taiwan 0:17:19.840 --> 0:17:24.480 has not changed. Well, they're always quite you know, kind 0:17:24.480 --> 0:17:27.480 of aggressive in their response names and they're always quite 0:17:27.920 --> 0:17:31.320 embrasive when there's any commentry on Taiwan. They you know, 0:17:31.320 --> 0:17:32.800 they want to make sure, they want to make clear 0:17:32.800 --> 0:17:36.560 of the red line for China from their perspective of course. 0:17:36.800 --> 0:17:40.520 Um So that's why I think we've seen such a 0:17:40.680 --> 0:17:43.919 ratcheting up of tensions between China and the US in 0:17:43.960 --> 0:17:46.840 recent years in the rush of rhetoric, because even when 0:17:47.160 --> 0:17:50.480 basic policy stabents are really iterated again, they're met by 0:17:50.480 --> 0:17:54.080 a volley of you know, rebuttaled by by either side, 0:17:54.160 --> 0:17:56.879 especially quite barbed on on the Chinese side of when 0:17:56.920 --> 0:17:58.920 it comes to the course the whole role of Wolf Wolf, 0:17:59.000 --> 0:18:00.679 the films in the like. But I think when you 0:18:00.680 --> 0:18:02.439 take it all together, though, you see the U S 0:18:02.480 --> 0:18:06.040 engine towards closer economical relations with Taiwan. You look at 0:18:06.040 --> 0:18:08.879 that overall speech wide secutives, say b Lincoln yesterday outlining 0:18:09.760 --> 0:18:12.600 the you know, in very blunt terms, just where US 0:18:12.680 --> 0:18:14.800 China relations are. I think it goes to show you 0:18:14.840 --> 0:18:18.920 that it's both both sides and are in a very 0:18:18.920 --> 0:18:21.880 competitive state at the very least, if not edging towards 0:18:21.880 --> 0:18:25.560 something even more serious. And then does this have implications 0:18:25.560 --> 0:18:29.360 and for the US China trade relationship. Of course, we're 0:18:29.359 --> 0:18:32.000 in the middle of a Phase one trade deal with China, 0:18:32.160 --> 0:18:36.880 and President Biden is considering making moves on the tariffs 0:18:36.920 --> 0:18:38.960 that have been imposed on China. As we deal with 0:18:39.000 --> 0:18:41.600 this you know, four decade high inflation that we're dealing 0:18:41.640 --> 0:18:44.119 with in the United States right now, it's a big question. 0:18:44.160 --> 0:18:48.920 I mean, both Treasure Checktory Ellen and of course other 0:18:49.040 --> 0:18:50.840 U S officials have made the point that they might 0:18:50.840 --> 0:18:54.760 consider they are considering bringing down TOWERFFS in certain Chinese goods, 0:18:54.800 --> 0:18:57.840 but that would probably be about trying to alleviate the 0:18:57.920 --> 0:19:01.119 US inflation more than resetting on the US relations. I mean, 0:19:01.160 --> 0:19:03.360 that would not be a game changer for the Chinese 0:19:03.400 --> 0:19:06.680 side either. They might welcome it on the margins. But 0:19:06.720 --> 0:19:09.199 when you consider that the US is also report to 0:19:09.240 --> 0:19:12.639 be reported to be considering sanctions, ongoing sanctions, sanctions against 0:19:12.720 --> 0:19:16.840 key Chinese companies for example, When of course you consider 0:19:16.920 --> 0:19:20.560 that you know, the US pushing for closure economic relations 0:19:20.640 --> 0:19:23.040 with time one, none of it suggests that any kind 0:19:23.080 --> 0:19:26.199 of easy enough turf story will be will trigger a 0:19:26.240 --> 0:19:28.679 reset in works on the U S relations. Right And 0:19:29.240 --> 0:19:31.280 you know, even though sector said Lincoln did say in 0:19:31.320 --> 0:19:33.960 his speech, center is room for corporational areas such as 0:19:33.960 --> 0:19:37.120 climate change in North Korea, and they like I think, 0:19:37.400 --> 0:19:40.199 the trajectory of US generations, or at least when it 0:19:40.200 --> 0:19:42.680 comes to competition between both, is set and that's not 0:19:42.760 --> 0:19:45.080 expected to change any time soon. Always going to have 0:19:45.080 --> 0:19:46.960 you with US. Sender, thanks for this and the current 0:19:47.040 --> 0:19:51.200 chief Asia economics correspondent for Bloomberg News. Right now it 0:19:51.240 --> 0:19:53.399 would be future is up, seven points down. Future is 0:19:53.440 --> 0:19:56.720 up eighteen nansect future is highed by thirty seven points 0:19:56.720 --> 0:19:59.920 and the tenure treasury down one thirty second the yield 0:20:00.040 --> 0:20:08.680 two point seven. This is Bloomberg Bloomberg eleven three oh Weather. 0:20:08.760 --> 0:20:12.600 Showers and storms possible this afternoon and tomorrow afternoon as well, 0:20:12.640 --> 0:20:16.080 with highs in the upper seventies both days. Sunshine returns 0:20:16.080 --> 0:20:18.360 Sunday with a high near eighty Right now sixty four 0:20:18.520 --> 0:20:25.280 in Central Park. Broadcasting live from the Bloomberg Interactive Broker 0:20:25.400 --> 0:20:28.800 Studio in New York. Bloomberg e Living Free to Washington, 0:20:28.880 --> 0:20:33.240 d C. Bloomberg to Boston, Bloomberg one six one does 0:20:33.240 --> 0:20:36.960 San Francisco, Bloomberg nine sixty to the Country, Sirius XM 0:20:37.000 --> 0:20:39.879 to the one ninete and around the globe the Bloomberg 0:20:39.880 --> 0:20:44.320 Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. 0:20:50.160 --> 0:20:52.560 It's five thirty on Wall Street, corning up Nathan Hagar 0:20:52.800 --> 0:20:55.320 and I'm Karen Moscow and we're just about four hours 0:20:55.359 --> 0:20:57.399 away from the open of US trading. Let's catch you 0:20:57.440 --> 0:20:58.760 up to date in the news you need to know 0:20:58.840 --> 0:21:01.720 at this hour US in next futures are rising as 0:21:01.720 --> 0:21:03.520 we close out a training week that has the s 0:21:03.560 --> 0:21:06.320 and P five hundred on track for its first weekly 0:21:06.359 --> 0:21:09.159 gain and two months. However, one Wall Street firm sees 0:21:09.160 --> 0:21:11.480 more pain ahead for investors, and we get the latest 0:21:11.520 --> 0:21:14.000 lie from Bloomberg's gonna need a young Good morning, Renny, Now, 0:21:14.080 --> 0:21:17.359 good morning. Karen's City Group cut its recommendation on US 0:21:17.400 --> 0:21:20.879 stocks to neutral on the risk of a recession. Strategist 0:21:20.920 --> 0:21:23.720 there joining an increasing number of banks and warning of 0:21:23.760 --> 0:21:26.800 a growth slowdown. They say, with this high level of 0:21:26.880 --> 0:21:30.080 uncertainty and a lack of reassurance from the Federal Reserve, 0:21:30.400 --> 0:21:33.600 the market is showing elements of a deflating bubble. But 0:21:33.680 --> 0:21:37.840 opinion on US equities remains divided. Some Wall Street animalsts 0:21:37.880 --> 0:21:40.639 are betting on a rebound. They believe that the odds 0:21:40.680 --> 0:21:44.240 of a recession are overstated. Live in New York. I'm 0:21:44.240 --> 0:21:46.280 gonna need a young Bloomberg day break, all right, Ready 0:21:46.320 --> 0:21:49.480 to thank you all. Retail earnings helped boost sentiment yesterday. 0:21:49.480 --> 0:21:52.040 This morning, it's a different story. Shares of Gap are 0:21:52.119 --> 0:21:55.640 down seventeen percent in early training. That retailer lowered its 0:21:55.680 --> 0:21:59.760 full year forecast after posting profit that missed estimates. Politics 0:21:59.800 --> 0:22:01.960 alls so and focus this morning. Nathan with the latest 0:22:02.040 --> 0:22:05.239 US challenged at China. The Biden administration in Taiwan are 0:22:05.240 --> 0:22:09.600 announcing negotiations to increase economic ties. Talks would focus on 0:22:09.680 --> 0:22:13.960 enhancing economic cooperation and supply chain resiliency, but falls short 0:22:14.000 --> 0:22:16.880 of a free trade agreement. Beijing has were in Washington 0:22:16.920 --> 0:22:20.280