1 00:00:03,600 --> 00:00:07,240 Speaker 1: Live from the Bloomberg Interactor Berger Studios is Bloomberg Daybreak 2 00:00:07,280 --> 00:00:12,320 Speaker 1: for a Tuesday. Coming up this hour, US teaches Sankas, 3 00:00:12,320 --> 00:00:15,520 Speaker 1: Earnings from Snaps, and big Tech lower. Christine mc guard 4 00:00:15,600 --> 00:00:18,400 Speaker 1: weighs in on monetary policy, saying she won't rush into 5 00:00:18,440 --> 00:00:21,880 Speaker 1: a drawing stimulus US primaries and focus again as contest 6 00:00:21,920 --> 00:00:25,040 Speaker 1: that Georgia could show Donald Trump's influence on the GOP. 7 00:00:25,840 --> 00:00:28,120 Speaker 1: The gunman in a deadly subway shooting in New York 8 00:00:28,160 --> 00:00:30,840 Speaker 1: remains on the loopse P What's Texas? Governor Rabbits says 9 00:00:30,880 --> 00:00:33,400 Speaker 1: Moore is needed to stop the flow of migrants. I'm 10 00:00:33,440 --> 00:00:37,120 Speaker 1: Michael Blarer. More ahead, Tom Scott Sedberg. The Yankees dropped 11 00:00:37,159 --> 00:00:39,720 Speaker 1: their third scrape. The Mets win big out West. I'll 12 00:00:39,760 --> 00:00:45,040 Speaker 1: have that in more coming up in sports. That's All's 13 00:00:45,080 --> 00:00:48,479 Speaker 1: training ahead on Bloomberg Daybreak on Bloomberg. He Live in 14 00:00:48,520 --> 00:00:53,000 Speaker 1: Free on New York, Bloomberg one, Washington, d C, Bloomberg 15 00:00:53,040 --> 00:00:56,720 Speaker 1: one O six one, Boston, Bloomberg nine sixties and Francisco 16 00:00:57,200 --> 00:01:00,240 Speaker 1: Syrius XM one nineteen and around the world. Old on 17 00:01:00,400 --> 00:01:03,680 Speaker 1: Bloomberg Radio dot Com and via the Bloomberg Business App. 18 00:01:07,640 --> 00:01:10,680 Speaker 1: Good Morning on John Tucker and I'm Karen Moscow. US 19 00:01:10,760 --> 00:01:13,520 Speaker 1: DOT Index futures are lower this morning. We're coming up 20 00:01:13,520 --> 00:01:15,080 Speaker 1: to five o one on Wall Street, and we check 21 00:01:15,120 --> 00:01:17,640 Speaker 1: the markets every fifteen minutes throughout the trading day. On 22 00:01:17,680 --> 00:01:21,400 Speaker 1: bloomberg SMP future is down fifty eight points, DAL Future 23 00:01:21,440 --> 00:01:23,880 Speaker 1: is down three hundred thirty and as DAG futures down 24 00:01:23,880 --> 00:01:27,000 Speaker 1: two hundred forty eight. The decks in Germany's down one 25 00:01:27,040 --> 00:01:30,520 Speaker 1: point two percent. Ten year treasury of fourteen thirty seconds 26 00:01:30,560 --> 00:01:32,840 Speaker 1: yield two point eight zero percent. They yield on the 27 00:01:32,840 --> 00:01:36,040 Speaker 1: two year two point five seven percent. Nim X screwn 28 00:01:36,080 --> 00:01:38,320 Speaker 1: oils down four tens per cent, or forty nine cents 29 00:01:38,360 --> 00:01:40,480 Speaker 1: at a hundred nine dollars eighty one cents a barrel. 30 00:01:40,680 --> 00:01:43,080 Speaker 1: Co max schooled up four ten percent or seven dollars 31 00:01:43,080 --> 00:01:46,399 Speaker 1: twenty cents at eighteen sixty one twenty announced and Bitcoin 32 00:01:46,480 --> 00:01:49,560 Speaker 1: this morning at twenty nine thousand, one fifty dollars. John 33 00:01:49,840 --> 00:01:53,360 Speaker 1: currently decline in futures follows yesterday's rally to start the week, 34 00:01:53,400 --> 00:01:56,960 Speaker 1: the Dow leading the games, advancing two percent. It looks 35 00:01:57,000 --> 00:01:59,560 Speaker 1: like we still haven't hit bottom, at least according to 36 00:01:59,640 --> 00:02:02,840 Speaker 1: David's Stubbs. The global head of process at thematic strategy 37 00:02:02,880 --> 00:02:06,400 Speaker 1: at JP Morgan Private Bank. What the market has been 38 00:02:06,440 --> 00:02:09,000 Speaker 1: fearing in the last couple of weeks is that the 39 00:02:09,000 --> 00:02:12,520 Speaker 1: growth outlook maybe weakening, and therefore earnings trends going forward 40 00:02:12,760 --> 00:02:15,799 Speaker 1: may also start to weaken. We'll see this this week. 41 00:02:15,880 --> 00:02:18,280 Speaker 1: This rody can absolutely continue from here because of where 42 00:02:18,440 --> 00:02:21,240 Speaker 1: however so old markets were. If the data is is supportive, 43 00:02:21,360 --> 00:02:23,360 Speaker 1: But that doesn't mean that we've met we've reached an 44 00:02:23,360 --> 00:02:26,440 Speaker 1: important bottom in the markets now. JP Morgan's David Stubbs 45 00:02:26,440 --> 00:02:29,360 Speaker 1: says he needs to see easy inflation and clarity about 46 00:02:29,360 --> 00:02:32,360 Speaker 1: where interest rates will peak. That, he says good signal 47 00:02:32,520 --> 00:02:35,680 Speaker 1: a bottom to the stock market. Well, John, Today's market 48 00:02:35,680 --> 00:02:39,320 Speaker 1: direction is being influenced by disappointing earnings from Snap, and 49 00:02:39,400 --> 00:02:42,040 Speaker 1: we get the details live from Bloomberg's Rnedy Yell and 50 00:02:42,040 --> 00:02:45,360 Speaker 1: Good morning Nita, Good morning Karen. When markets closed yesterday, 51 00:02:45,480 --> 00:02:49,400 Speaker 1: Snap warned that it would miss record second quarter profit 52 00:02:49,480 --> 00:02:53,200 Speaker 1: and revenue forecast it needs to slow hiring. CEO Evan 53 00:02:53,240 --> 00:02:57,240 Speaker 1: Spiegel cites the economic environment and that sent shares tumbling 54 00:02:57,320 --> 00:03:01,400 Speaker 1: down around which appears to holding in pre market trading. 55 00:03:01,680 --> 00:03:04,400 Speaker 1: If that loss holds, it would be Snap's biggest daily 56 00:03:04,520 --> 00:03:08,080 Speaker 1: drop on record, making the company lose some eleven billion 57 00:03:08,120 --> 00:03:11,600 Speaker 1: dollars in market value. Snaps also dragging down other tech 58 00:03:11,720 --> 00:03:15,800 Speaker 1: names in pre market trading, Twitter, Meta, Pinterest, and Alphabet 59 00:03:15,800 --> 00:03:18,480 Speaker 1: are all lower and they may collectively see a one 60 00:03:18,520 --> 00:03:22,440 Speaker 1: hundred billion dollar wipeout. Live in New York, I'm renit 61 00:03:22,480 --> 00:03:24,720 Speaker 1: a young Bloomberg day break, real need to thanks on 62 00:03:24,760 --> 00:03:27,760 Speaker 1: the flip side. Shares of Zoom up almost six percent 63 00:03:27,800 --> 00:03:31,120 Speaker 1: in early trading, the company signaling it can expand beyond 64 00:03:31,120 --> 00:03:34,960 Speaker 1: its consumer friendly video software that made it a pandemic Darling, 65 00:03:35,400 --> 00:03:38,160 Speaker 1: Zoom rejected sales and profit for the current quarter that 66 00:03:38,320 --> 00:03:41,760 Speaker 1: topped estimates. While turning to the economy now, John Kansas 67 00:03:41,800 --> 00:03:44,680 Speaker 1: City Fed President Esther George expects the Central Bank to 68 00:03:44,760 --> 00:03:47,920 Speaker 1: raise interest rates to two percent by August. After that, 69 00:03:48,040 --> 00:03:50,360 Speaker 1: she says more tightening will be guided by how fast 70 00:03:50,440 --> 00:03:53,320 Speaker 1: inflation cools off. George has been known as a longtime 71 00:03:53,320 --> 00:03:56,520 Speaker 1: policy hawk who were recently moved to the center and 72 00:03:56,600 --> 00:03:59,680 Speaker 1: care monetary policy a focus in Europe. This morning, a 73 00:03:59,800 --> 00:04:02,800 Speaker 1: day after Christine Legard said higher interest rates are coming 74 00:04:02,800 --> 00:04:06,600 Speaker 1: in July, the ECB president sent down for her first 75 00:04:06,680 --> 00:04:10,000 Speaker 1: interview at the World Economic Format Davos, and she spoke 76 00:04:10,040 --> 00:04:13,640 Speaker 1: with Bloomberg's Francy and Laquix. We are at the turning point. 77 00:04:14,400 --> 00:04:19,320 Speaker 1: We have all the components in place for that. We 78 00:04:19,400 --> 00:04:22,240 Speaker 1: are turning our back to negative interest rates. We are 79 00:04:22,279 --> 00:04:27,279 Speaker 1: moving very likely into positive territory at the end of 80 00:04:27,320 --> 00:04:30,760 Speaker 1: the third quarter, and then, of course we will calibrate. 81 00:04:30,839 --> 00:04:34,039 Speaker 1: We will stop this exactly by how much we want 82 00:04:34,080 --> 00:04:37,320 Speaker 1: to do that. Christine Legard also rejecting the idea that 83 00:04:37,360 --> 00:04:40,279 Speaker 1: the Euro Area is headed for recession. Stay tuned for 84 00:04:40,320 --> 00:04:43,799 Speaker 1: more of our conversation with the ECB president coming up shortly, 85 00:04:44,240 --> 00:04:46,240 Speaker 1: and we also invite you to join us this morning 86 00:04:46,240 --> 00:04:49,400 Speaker 1: where we continue our global coverage from Davos. We speak 87 00:04:49,440 --> 00:04:53,599 Speaker 1: live with Bank of America CEO Brian moynihan. Conversations coming 88 00:04:53,640 --> 00:04:55,760 Speaker 1: up live at eleven am moll Street Time on both 89 00:04:55,800 --> 00:04:59,440 Speaker 1: Bloomberg Radio and television. And Journey to Politics Now President 90 00:04:59,440 --> 00:05:01,479 Speaker 1: by and wrap ing up his trip to Asia. He 91 00:05:01,560 --> 00:05:03,800 Speaker 1: spoke earlier today at the opening of the leaders Some 92 00:05:03,920 --> 00:05:07,200 Speaker 1: of in Tokyo and address the ongoing war in Ukraine. 93 00:05:07,560 --> 00:05:10,200 Speaker 1: We're navigating in a dark hour in our shared history. 94 00:05:11,400 --> 00:05:16,000 Speaker 1: The Russian brutal and unprovoked war against Ukraine has triggered 95 00:05:16,000 --> 00:05:20,320 Speaker 1: a humanitarian catastrophe and innocent civilians have killed in the 96 00:05:20,360 --> 00:05:25,159 Speaker 1: streets and millions of refugees are internally displaced, as well 97 00:05:25,200 --> 00:05:31,119 Speaker 1: as exile, President urging Indo Pacific leaders, including India's Naredra Modi, 98 00:05:31,240 --> 00:05:34,599 Speaker 1: to make a greater effort to stop Vladimir Putin's aggression 99 00:05:34,960 --> 00:05:37,640 Speaker 1: and John The discussion of tariffs on China has also 100 00:05:37,720 --> 00:05:40,479 Speaker 1: been a focal point of President Biden's trip to Asia. 101 00:05:40,640 --> 00:05:44,440 Speaker 1: Biden says he will review Trump Aaron levies as consumer 102 00:05:44,480 --> 00:05:47,600 Speaker 1: prices surge. We got up a trade representative, Catherine ty 103 00:05:47,760 --> 00:05:50,680 Speaker 1: who also awaited on the matter. With respect of the tarroiffs, 104 00:05:50,720 --> 00:05:54,719 Speaker 1: our approach, as with everything in this relationship, is to 105 00:05:55,320 --> 00:05:58,440 Speaker 1: be strategic. We have to keep our eye on the 106 00:05:58,480 --> 00:06:02,000 Speaker 1: ball in terms of how to effectively realign the US 107 00:06:02,080 --> 00:06:06,160 Speaker 1: China trade and economic relationship. Trade Representative Catherine Tye would 108 00:06:06,200 --> 00:06:09,320 Speaker 1: not say whether the administration would remove tariffs on China 109 00:06:09,640 --> 00:06:12,400 Speaker 1: or give a time frame for making a decision. And 110 00:06:12,520 --> 00:06:15,359 Speaker 1: Karen back here in the US today marks another test 111 00:06:15,400 --> 00:06:19,520 Speaker 1: of Donald Trump's influence on Republican voters this primary season, 112 00:06:20,000 --> 00:06:23,760 Speaker 1: and Bloomberg's Joe Matthew tells us all eyes are on voters. 113 00:06:23,960 --> 00:06:27,480 Speaker 1: In Georgia, Trump's endorsement of former Senator David Purdue and 114 00:06:27,520 --> 00:06:31,000 Speaker 1: the Republican gubernatorial primary has failed to make a serious 115 00:06:31,040 --> 00:06:33,960 Speaker 1: threat to Governor Brian Kemp, who is currently leading Perdue 116 00:06:34,000 --> 00:06:37,080 Speaker 1: by more than twenty percentage points. The incumbent being supported 117 00:06:37,080 --> 00:06:41,400 Speaker 1: by establishment Republicans, including former Vice President Mike Pence. The 118 00:06:41,480 --> 00:06:44,159 Speaker 1: outcome of this race and another for Secretary of State 119 00:06:44,279 --> 00:06:47,840 Speaker 1: is considered personal for Trump after Georgia's Republican leaders did 120 00:06:47,839 --> 00:06:51,560 Speaker 1: not overturn the election. One bright spot for Trump has 121 00:06:51,600 --> 00:06:54,840 Speaker 1: picked for Senate football legend herschel Walker, widely expected to 122 00:06:54,880 --> 00:06:58,560 Speaker 1: win his primary. Joe, Matthew Bloomberg, Daybreak, Sorry Joe, thank you. 123 00:06:58,680 --> 00:07:01,480 Speaker 1: Futures this morning are or S and P futures down 124 00:07:01,560 --> 00:07:04,880 Speaker 1: fifty nine points down. Futures down three hundred thirty four 125 00:07:04,920 --> 00:07:07,600 Speaker 1: and nastagg futures are down two d fifty. That's down 126 00:07:07,640 --> 00:07:11,000 Speaker 1: more than two ten year treasury of fourteen thirty seconds. 127 00:07:11,040 --> 00:07:13,560 Speaker 1: You have two point seven nine percent straight to had 128 00:07:13,600 --> 00:07:16,840 Speaker 1: your latest local headlines plus a check of sports, and 129 00:07:17,160 --> 00:07:25,280 Speaker 1: this is Bloomberg, right. Thanks. Karen five of Wall Street 130 00:07:25,440 --> 00:07:28,000 Speaker 1: had time to bring in Michael Barr with more on 131 00:07:28,120 --> 00:07:30,720 Speaker 1: what else is going on to New York and around 132 00:07:30,720 --> 00:07:34,400 Speaker 1: the world. Mayor Eric Adams john says investigators of a 133 00:07:34,440 --> 00:07:36,720 Speaker 1: fatal shooting on a New York subway train a half 134 00:07:36,840 --> 00:07:40,320 Speaker 1: you leads. Police say forty eight year old Daniel Enriquez 135 00:07:40,440 --> 00:07:43,040 Speaker 1: was killed without provocation, the killer still on the loose. 136 00:07:43,360 --> 00:07:47,080 Speaker 1: Adams said that the shooting was unimaginable and the worst nightmare. 137 00:07:47,440 --> 00:07:49,760 Speaker 1: I have to make sure the city is safe and 138 00:07:49,800 --> 00:07:52,679 Speaker 1: I want that obligation. I thank god I'm the mayor 139 00:07:52,800 --> 00:07:56,720 Speaker 1: right now and not those that don't understand the urgency 140 00:07:56,760 --> 00:07:59,840 Speaker 1: of this moment. Mayor Adams says there were no police 141 00:08:00,000 --> 00:08:02,760 Speaker 1: officers on the train car where the shooting occurred. The 142 00:08:02,880 --> 00:08:06,400 Speaker 1: NYPD says the second arrest was announced in the deadly 143 00:08:06,480 --> 00:08:08,640 Speaker 1: shooting of an eleven year old girl last week in 144 00:08:08,680 --> 00:08:12,400 Speaker 1: the Bronx. Authorities say and alleged accomplice, eighteen year old 145 00:08:12,480 --> 00:08:15,880 Speaker 1: Omar Bojang, turned himself in. He's accused of driving the 146 00:08:15,880 --> 00:08:18,600 Speaker 1: scooter that a fifteen year old was allegedly riding on 147 00:08:18,720 --> 00:08:21,840 Speaker 1: when he opened fire. The intended target is believed to 148 00:08:21,880 --> 00:08:24,120 Speaker 1: have been another team who was not hit, but instead 149 00:08:24,120 --> 00:08:28,320 Speaker 1: a bullet struck and killed eleven year old Karatay. Bronx 150 00:08:28,400 --> 00:08:33,079 Speaker 1: District Attorney Darcel Clark spoke outside the girl's funeral, eleven 151 00:08:33,160 --> 00:08:36,640 Speaker 1: year old, you know, can't even be outside. You know, 152 00:08:36,720 --> 00:08:40,920 Speaker 1: she's getting her fingernails done and just you know, without knowing, 153 00:08:41,480 --> 00:08:45,520 Speaker 1: bullets are flying five o'clock in the afternoon. Incomprehensible. But 154 00:08:45,600 --> 00:08:48,000 Speaker 1: this is what we've been dealing with in the Bronx DA, 155 00:08:48,280 --> 00:08:52,240 Speaker 1: Darsel Clark. Texas Governor Greg Abbott was at the US 156 00:08:52,320 --> 00:08:55,600 Speaker 1: southern border where he praised the continuation of an immigration 157 00:08:55,720 --> 00:08:59,280 Speaker 1: policy known as Title forty two. The pandemic era policy 158 00:08:59,280 --> 00:09:01,960 Speaker 1: allows a fish us to turn away migrants at the border. 159 00:09:02,440 --> 00:09:06,040 Speaker 1: President Biden trying to have Title forty two lifted, but 160 00:09:06,160 --> 00:09:08,920 Speaker 1: the Governor Rabbit praise the federal judges ruling that it 161 00:09:09,000 --> 00:09:12,240 Speaker 1: must remain in place for now. The Biden administration seems 162 00:09:12,280 --> 00:09:14,560 Speaker 1: to be letting him people whether they're crossing through the 163 00:09:14,559 --> 00:09:17,679 Speaker 1: port of entry or across the river. And there's been 164 00:09:17,720 --> 00:09:20,840 Speaker 1: so many people allowed him because of that. Governor Rabbit 165 00:09:20,920 --> 00:09:24,520 Speaker 1: made his comments at Eagle Pass border crossing yesterday. Washington 166 00:09:24,559 --> 00:09:27,520 Speaker 1: State health officials in Seattle and King County say they 167 00:09:27,559 --> 00:09:31,440 Speaker 1: are investigating a presumptive case of monkey Box. Global News 168 00:09:31,440 --> 00:09:34,319 Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake, 169 00:09:34,600 --> 00:09:37,719 Speaker 1: powered by more than journalists and analysts more than a 170 00:09:37,800 --> 00:09:41,120 Speaker 1: hundred twenty countries. Michael barn This is Bloomberg, John, Michael, 171 00:09:41,160 --> 00:09:48,559 Speaker 1: thank you five nine on Wall Street hand Let's stand 172 00:09:48,600 --> 00:09:52,240 Speaker 1: for the Bloomberg Sports Update. There's Scott Sedinberg. Good morning John. 173 00:09:52,280 --> 00:09:54,839 Speaker 1: The Yankees fell to the Orioles six four, suffering their 174 00:09:54,840 --> 00:09:58,520 Speaker 1: season high third straight loss. Promonias hit a tie breaking 175 00:09:58,600 --> 00:10:00,679 Speaker 1: home run in the sixth inning off Garrett Cole, and 176 00:10:00,720 --> 00:10:03,719 Speaker 1: the O's overcame two. Aaron Judge Homers to pull off 177 00:10:03,760 --> 00:10:06,480 Speaker 1: the upset. For Coals, he allowed five runs on seven 178 00:10:06,559 --> 00:10:09,640 Speaker 1: hits and eight innings, taking his first loss of the season. 179 00:10:09,720 --> 00:10:12,480 Speaker 1: There's manager Aaron Boone. A weird night tonight, where Garrett 180 00:10:12,520 --> 00:10:15,280 Speaker 1: was really for the most part dominant, you know, except 181 00:10:15,320 --> 00:10:17,880 Speaker 1: that strain there for five to seven minutes in that 182 00:10:17,960 --> 00:10:21,160 Speaker 1: one inning. Meanwhile, Yankees third baseman Josh Donaldson has been 183 00:10:21,160 --> 00:10:24,200 Speaker 1: suspended one game by Major League Baseball after referring to 184 00:10:24,240 --> 00:10:28,920 Speaker 1: White Sox shortstop Tim Anderson as Jackie, referencing Jackie Robinson. 185 00:10:29,080 --> 00:10:32,240 Speaker 1: Donaldson is appealing the suspension, saying the reference stems from 186 00:10:32,320 --> 00:10:36,000 Speaker 1: comments made by Anderson back in the interview when he 187 00:10:36,040 --> 00:10:40,040 Speaker 1: compared himself to Robinson. Donaldson was placed on the COVID 188 00:10:40,200 --> 00:10:43,800 Speaker 1: nineteen injury list yesterday prior to the game. The Mets 189 00:10:43,880 --> 00:10:46,280 Speaker 1: last night beat the Giants thirteen three. Pete Alonso hit 190 00:10:46,280 --> 00:10:48,640 Speaker 1: the three run homer. Jeff McNeil and Mark Canna also 191 00:10:48,720 --> 00:10:50,760 Speaker 1: went deep as the Mets won for the fifth time 192 00:10:50,800 --> 00:10:53,680 Speaker 1: in six games. David Peterson picked up the win, allowing 193 00:10:53,760 --> 00:10:56,720 Speaker 1: two runs in six innings. Tonight, the Rangers looked even 194 00:10:56,800 --> 00:10:58,920 Speaker 1: up their series with the Hurricanes at two games. A 195 00:10:59,000 --> 00:11:01,960 Speaker 1: piece puck drop from the garden at seven o'clock tennis 196 00:11:01,960 --> 00:11:04,439 Speaker 1: at the French Open, several top players are out, including 197 00:11:04,480 --> 00:11:08,040 Speaker 1: defending women's champ Barbara Kretchikova, the women's number to see, 198 00:11:08,080 --> 00:11:12,640 Speaker 1: losing to French teenager Diane Perry. Elsewhere, Naomi Osaka is out, 199 00:11:12,679 --> 00:11:16,400 Speaker 1: losing to Amanda Anissamova. Osaka says she's not a percent 200 00:11:16,480 --> 00:11:20,520 Speaker 1: sure show compete at Wimbledon. I'm Scott Edinburg with Bloomberg Sports. 201 00:11:20,640 --> 00:11:23,560 Speaker 1: John all right, thanks Scott, and ahead of the cash 202 00:11:23,600 --> 00:11:26,040 Speaker 1: Oven on Wall Street. We have futures in the rad 203 00:11:26,120 --> 00:11:29,920 Speaker 1: right now. Down futures three hundred and thirty one point slower, 204 00:11:30,040 --> 00:11:32,760 Speaker 1: that is down just over one percent this morning, the 205 00:11:33,000 --> 00:11:36,080 Speaker 1: SNP E mini futures fifty eight points lower, that's down 206 00:11:36,240 --> 00:11:38,560 Speaker 1: one and a half percent in the early going, and 207 00:11:38,600 --> 00:11:41,720 Speaker 1: the nasdank futures two hundred and forty seven points lower, 208 00:11:42,080 --> 00:11:45,480 Speaker 1: that is down two percent. Most actively traded stock of 209 00:11:45,520 --> 00:11:48,800 Speaker 1: the pre market shares of Snap down just about twenty 210 00:11:49,040 --> 00:11:52,719 Speaker 1: nine percent after cutting their forecast. And as we look 211 00:11:52,720 --> 00:11:56,840 Speaker 1: at transuries this morning, the benchmire ten year yield two 212 00:11:56,840 --> 00:12:00,480 Speaker 1: point eight zero percent, that is down five bases points. 213 00:12:01,000 --> 00:12:08,120 Speaker 1: You're listening the Bloomberg tay break recession for Europe forget it. 214 00:12:08,240 --> 00:12:12,360 Speaker 1: Francine Lacroix. Her chat with Christine Legarde is just ahead 215 00:12:12,400 --> 00:12:22,480 Speaker 1: of must listen from the World Economic Forum. This is Daybreak, Markets, 216 00:12:22,559 --> 00:12:25,640 Speaker 1: headlines and breaking news twenty four hours a day at 217 00:12:25,679 --> 00:12:29,079 Speaker 1: Bloomberg dot Com, the Bloomberg Business at and at Bloomberg 218 00:12:29,160 --> 00:12:38,080 Speaker 1: Quick Tape. This is a Bloomberg Business Flash and I'm 219 00:12:38,160 --> 00:12:41,000 Speaker 1: Karen Moscow. A profit warning from Snap A weighing on 220 00:12:41,040 --> 00:12:44,280 Speaker 1: technology shares. This morning, NASTACK futures are down two hundred 221 00:12:44,360 --> 00:12:47,280 Speaker 1: forty seven points, down more than two per cent, SMP 222 00:12:47,440 --> 00:12:50,960 Speaker 1: futures down fifty seven down, futures down three D ten 223 00:12:51,000 --> 00:12:53,640 Speaker 1: year treasury up thirteen thirty seconds, YELD two point eight 224 00:12:53,720 --> 00:12:56,080 Speaker 1: zero percent, and they yield on the two year two 225 00:12:56,080 --> 00:12:59,200 Speaker 1: point five seven percent. That's a Bloomberg business flash. Now 226 00:12:59,200 --> 00:13:01,400 Speaker 1: here's Michael Barr with more on what's going on around 227 00:13:01,400 --> 00:13:04,360 Speaker 1: the world. Michael, good morning, Good morning Karen. President Joe 228 00:13:04,360 --> 00:13:07,680 Speaker 1: Biden has Warren Fellow leaders of the informal Indo Pacific 229 00:13:07,679 --> 00:13:11,400 Speaker 1: Security coalition known as the Quad. They are navigating through 230 00:13:11,440 --> 00:13:14,720 Speaker 1: a dark hour and our shared history as Russia continues 231 00:13:15,040 --> 00:13:18,640 Speaker 1: a brutal war on Ukraine. Biden called for greater Indo 232 00:13:18,679 --> 00:13:21,880 Speaker 1: Pacific leadership and the effort to stop Russian aggression at 233 00:13:21,880 --> 00:13:24,920 Speaker 1: the start of the summit today with the leaders of Australia, 234 00:13:25,040 --> 00:13:28,640 Speaker 1: India and Japan. In the NBA Playoffs, the Celtics beat 235 00:13:28,679 --> 00:13:31,560 Speaker 1: the Heat even the series of two games apiece baseball, 236 00:13:31,600 --> 00:13:34,400 Speaker 1: the Yankees lost to the Orioles, the Mets beat the Giants, 237 00:13:34,480 --> 00:13:37,480 Speaker 1: the Nationals and A's lost. Global News twenty four hours 238 00:13:37,480 --> 00:13:40,600 Speaker 1: a day on air and on Bloomberg Quicktake, powered by 239 00:13:40,640 --> 00:13:43,240 Speaker 1: more than twenty seven undred journalists and analysts. More than 240 00:13:43,280 --> 00:13:46,520 Speaker 1: a hundred twenty countries. Michael Barr and this is Bloomberg, 241 00:13:46,600 --> 00:13:49,280 Speaker 1: John Michael five nineteen on Wall Street Line from the 242 00:13:49,320 --> 00:13:54,120 Speaker 1: Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. Christie Lagard 243 00:13:54,200 --> 00:13:57,160 Speaker 1: says the European Central Bank won't be rushed into withdrawing 244 00:13:57,280 --> 00:14:00,959 Speaker 1: monetary stimulus as officials act to contain and inflation running 245 00:14:01,000 --> 00:14:04,160 Speaker 1: it almost four times, there are two percent target. The 246 00:14:04,240 --> 00:14:07,640 Speaker 1: EASYB president sat down for an interview with Bloomberg's Francine 247 00:14:07,679 --> 00:14:11,960 Speaker 1: Laquix at the World Economic Forum in Dabo's conversation comes 248 00:14:12,040 --> 00:14:14,480 Speaker 1: just a day after the guard said higher interest rates 249 00:14:14,480 --> 00:14:17,000 Speaker 1: are coming in July. Let's see what she had to 250 00:14:17,080 --> 00:14:19,640 Speaker 1: say about that and listen to that interview right now. 251 00:14:20,320 --> 00:14:22,840 Speaker 1: I think it was it was good to set out 252 00:14:22,880 --> 00:14:25,640 Speaker 1: the terms under which we are going to turn the 253 00:14:25,720 --> 00:14:28,440 Speaker 1: corner of negative interest rates. So was this more a 254 00:14:28,480 --> 00:14:31,200 Speaker 1: message to the markets or is it more to a 255 00:14:31,280 --> 00:14:33,720 Speaker 1: message to the members of the Governing Council. It was 256 00:14:33,760 --> 00:14:36,920 Speaker 1: a message to anybody who is interested in monetary policy, really, 257 00:14:37,040 --> 00:14:40,720 Speaker 1: because we have been going through eight years of negative 258 00:14:40,760 --> 00:14:46,080 Speaker 1: interest rates, special accommodation, and we are clearly now at 259 00:14:46,120 --> 00:14:48,960 Speaker 1: the turning point. And I thought it was appropriate at 260 00:14:49,000 --> 00:14:52,920 Speaker 1: this point to explain what the journey is, what the 261 00:14:53,000 --> 00:14:56,320 Speaker 1: direction of travel is, what the destination is in the 262 00:14:56,760 --> 00:15:00,480 Speaker 1: relatively short term, and what is our aimpoint it as well. 263 00:15:01,120 --> 00:15:03,560 Speaker 1: If you're hiking, you want to hike, hit wait for July. 264 00:15:05,280 --> 00:15:09,080 Speaker 1: We are not in in a panic mode, and we've 265 00:15:09,120 --> 00:15:13,000 Speaker 1: started that journey thinking about it very carefully back in December, 266 00:15:13,160 --> 00:15:15,520 Speaker 1: with steps along the way, and we are now at 267 00:15:15,520 --> 00:15:18,600 Speaker 1: a stage where there is every certainty that we will 268 00:15:18,640 --> 00:15:22,920 Speaker 1: stop let us said purchases very early in in July, 269 00:15:23,680 --> 00:15:27,080 Speaker 1: deciding so in June, which will then clear the way 270 00:15:27,600 --> 00:15:31,520 Speaker 1: for a rate hikes that will come reasonably shortly after that. 271 00:15:32,360 --> 00:15:34,560 Speaker 1: Is there a danger that, because of the timetable, which 272 00:15:34,600 --> 00:15:36,560 Speaker 1: of course you know, goes to the credibility of the ECB, 273 00:15:36,760 --> 00:15:39,320 Speaker 1: which is we do que first to reunwind that and 274 00:15:39,400 --> 00:15:42,000 Speaker 1: then going to interest rate, that you miss a drive 275 00:15:42,080 --> 00:15:45,080 Speaker 1: of inflation. I don't think so. I think that's you know, 276 00:15:45,360 --> 00:15:50,600 Speaker 1: anybody who's very careful about analyzing really realizes that we 277 00:15:50,800 --> 00:15:53,440 Speaker 1: are in a situation which is vastly different from that 278 00:15:53,600 --> 00:15:58,680 Speaker 1: of the United States, and we are actually perfectly on 279 00:15:58,880 --> 00:16:01,200 Speaker 1: time and not behind in the curve. I think there 280 00:16:01,280 --> 00:16:06,000 Speaker 1: is also great value in being steady predictable, And we 281 00:16:06,200 --> 00:16:09,560 Speaker 1: said all along in our forward guidance that we would 282 00:16:09,880 --> 00:16:14,120 Speaker 1: stop quantitative easing in terms of net asset purchases because 283 00:16:14,160 --> 00:16:17,960 Speaker 1: we will continue reinvesting as as we go, and that 284 00:16:18,160 --> 00:16:20,880 Speaker 1: then we look at at the interest rate, which will 285 00:16:20,960 --> 00:16:24,240 Speaker 1: be the main tool further on. And then how difficult 286 00:16:24,320 --> 00:16:26,360 Speaker 1: is it to actually give so much forward guidance, I 287 00:16:26,400 --> 00:16:29,120 Speaker 1: guess as a message also to markets when you don't 288 00:16:29,160 --> 00:16:31,480 Speaker 1: really know how Russia reacts. We could have a gas embargo, 289 00:16:31,560 --> 00:16:33,800 Speaker 1: we could have an oil embargo that would really make 290 00:16:33,880 --> 00:16:36,920 Speaker 1: the inflation ratiot up. You know. Our mission is to 291 00:16:37,440 --> 00:16:43,000 Speaker 1: um guarantee procure reinforced price stability defined as the two 292 00:16:43,040 --> 00:16:47,200 Speaker 1: percent inflation. So we might be regarded as a bit 293 00:16:47,440 --> 00:16:49,640 Speaker 1: stubborn in that respect, but that's the job we have 294 00:16:49,760 --> 00:16:52,480 Speaker 1: to do. But of course we are data dependent. We 295 00:16:52,600 --> 00:16:55,000 Speaker 1: look at developments, we look at what it's going to 296 00:16:55,080 --> 00:16:59,560 Speaker 1: influence inflation and inflation expectations. So we look very carefully 297 00:16:59,640 --> 00:17:03,240 Speaker 1: at wages at the moment wage negotiations, we're looking very 298 00:17:03,280 --> 00:17:07,119 Speaker 1: carefully at all inflation expectations, and we believe that it 299 00:17:07,240 --> 00:17:11,480 Speaker 1: is time to act as indicated under what circumstances do 300 00:17:11,640 --> 00:17:15,640 Speaker 1: you think a fifty basis point hike would be warranted. Look, 301 00:17:15,800 --> 00:17:19,560 Speaker 1: what I said is we are at the turning point. 302 00:17:20,359 --> 00:17:25,240 Speaker 1: We have all the components in place for that. We 303 00:17:25,359 --> 00:17:28,159 Speaker 1: are turning our back to negative interest rates. We are 304 00:17:28,280 --> 00:17:33,200 Speaker 1: moving very likely into positive territory at the end of 305 00:17:33,280 --> 00:17:36,680 Speaker 1: the third quarter. And then of course we will calibrate, 306 00:17:36,800 --> 00:17:40,080 Speaker 1: we will establish exactly by how much we want to 307 00:17:40,160 --> 00:17:42,960 Speaker 1: do that. When you talk about of course no longer 308 00:17:43,080 --> 00:17:45,640 Speaker 1: negative rates, has a market quite understood that this could 309 00:17:45,680 --> 00:17:49,360 Speaker 1: mean also positive rates? Well, you know, when you're out 310 00:17:49,440 --> 00:17:51,879 Speaker 1: of negative you can be at zero, you can be 311 00:17:52,000 --> 00:17:55,080 Speaker 1: slightly above zero. This is something that we will determine 312 00:17:55,480 --> 00:17:58,840 Speaker 1: on the basis of of our projections, on the basis 313 00:17:58,960 --> 00:18:02,280 Speaker 1: of our forward guidance. I think that there are good 314 00:18:02,359 --> 00:18:05,320 Speaker 1: reasons to believe that all three conditions will be satisfied 315 00:18:05,840 --> 00:18:09,719 Speaker 1: in June and further on during the summer. Where are 316 00:18:09,760 --> 00:18:11,720 Speaker 1: we in the third quarter? Could we be you know 317 00:18:11,800 --> 00:18:13,840 Speaker 1: above your in terms of interest rates? Is that kind 318 00:18:13,880 --> 00:18:16,879 Speaker 1: of research acts? Is what I'm saying. I stick to 319 00:18:17,720 --> 00:18:20,920 Speaker 1: We will be out of negative interest rates most likely 320 00:18:21,560 --> 00:18:23,639 Speaker 1: before the end of the third quarter. How do you 321 00:18:23,640 --> 00:18:25,760 Speaker 1: see inflation developing from now. I mean, again, there's so 322 00:18:25,880 --> 00:18:29,359 Speaker 1: many unknowns because of the war. You know, there are 323 00:18:29,440 --> 00:18:32,840 Speaker 1: lots of forces um and and some of them, you know, 324 00:18:33,560 --> 00:18:37,440 Speaker 1: counteracting against each other. You have the war, which in 325 00:18:37,600 --> 00:18:40,240 Speaker 1: and of itself is an absolute drummer, and as massive 326 00:18:40,280 --> 00:18:44,119 Speaker 1: economic impacts, not just in Ukraine and eventually in Russia, 327 00:18:44,160 --> 00:18:46,680 Speaker 1: but for the rest of the world. We have energy 328 00:18:46,760 --> 00:18:50,560 Speaker 1: prices which have gone up significantly and represents a big 329 00:18:50,640 --> 00:18:54,120 Speaker 1: chunk of inflation. We have food prices. I mean, there's 330 00:18:54,160 --> 00:18:56,680 Speaker 1: a whole series of things that are weighing on growth 331 00:18:57,400 --> 00:19:00,600 Speaker 1: down and pushing inflation up. But on the other side 332 00:19:00,640 --> 00:19:03,280 Speaker 1: you also have forces. You know, me, I tend to 333 00:19:03,320 --> 00:19:05,359 Speaker 1: be a positive person, and I tried to look at 334 00:19:05,440 --> 00:19:11,600 Speaker 1: what is likely to counteract those very significant shocks. And 335 00:19:12,200 --> 00:19:15,720 Speaker 1: that was the ECB president Christine Lagarin, speaking with Bloomberg's 336 00:19:15,720 --> 00:19:19,680 Speaker 1: Francie Laclaude from the World Economic Forum in Davos, Switzerland. 337 00:19:20,160 --> 00:19:23,120 Speaker 1: Cash more of the interview online at bloomberg dot com. 338 00:19:23,720 --> 00:19:25,880 Speaker 1: I was looking to the euro right now, euro dollar 339 00:19:26,119 --> 00:19:29,800 Speaker 1: one oh seven seventeen and head of the cash up 340 00:19:29,840 --> 00:19:32,080 Speaker 1: and on Wall Street down futures right now three hundred 341 00:19:32,160 --> 00:19:35,480 Speaker 1: and sixteen points lower, that is down one percent. The 342 00:19:35,680 --> 00:19:38,800 Speaker 1: smp E Mini futures fifty six points lower, one point 343 00:19:38,880 --> 00:19:42,040 Speaker 1: four percent lower, and that ASDAG futures down two hundred 344 00:19:42,080 --> 00:19:45,240 Speaker 1: forty two points, that is down two percent. One of 345 00:19:45,280 --> 00:19:49,240 Speaker 1: the most actively tradded shares plunge this morning for shares 346 00:19:49,520 --> 00:19:52,640 Speaker 1: of SNAP ten year yield in the US at two 347 00:19:52,720 --> 00:19:57,560 Speaker 1: point eight zero six, that's down four basis points. You're 348 00:19:57,640 --> 00:20:08,240 Speaker 1: listening to Bloomberg Daybreak and the Bloomberg Weather from a 349 00:20:08,320 --> 00:20:12,320 Speaker 1: meteorologists Rob Caroline. Cloudy today, passing shower, sprinkle possible this morning. 350 00:20:12,640 --> 00:20:16,400 Speaker 1: High temperature around seventy degrees. Tonight mostly cloudy, the low 351 00:20:16,480 --> 00:20:24,240 Speaker 1: temperatures in the mid fifties. Broadcasting live from the Bloomberg 352 00:20:24,320 --> 00:20:28,040 Speaker 1: Interacted Broker's studio in New York, Bloomberg in Living Freedom, 353 00:20:28,200 --> 00:20:32,320 Speaker 1: to Washington, d C. Bloomberg to Boston, Bloomberg one O 354 00:20:32,560 --> 00:20:35,560 Speaker 1: six one to San Francisco, Bloomberg No. Sixty to the 355 00:20:35,640 --> 00:20:39,119 Speaker 1: Country Sirius XM Chado one nine, and around the globe, 356 00:20:39,200 --> 00:20:42,680 Speaker 1: the Bloomberg Business app and Bloomberg Radio dot Com. This 357 00:20:43,160 --> 00:20:51,480 Speaker 1: is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. 358 00:20:51,480 --> 00:20:54,040 Speaker 1: I'm John Tucker and I'm Karen Moscow. We are just 359 00:20:54,160 --> 00:20:56,600 Speaker 1: about four hours away from the open of US trading. 360 00:20:56,640 --> 00:20:58,000 Speaker 1: Let's get you up to date on the news you 361 00:20:58,080 --> 00:21:00,959 Speaker 1: need to know. At this hour, futures are declining following 362 00:21:01,040 --> 00:21:04,200 Speaker 1: yesterday's rally to start the trading wake. CEO of Goldman 363 00:21:04,240 --> 00:21:07,719 Speaker 1: sax International, Richard nods says he expects swings and markets 364 00:21:07,760 --> 00:21:11,160 Speaker 1: to continue as the FED attempts to soft landing. Everybody 365 00:21:11,240 --> 00:21:14,080 Speaker 1: wants to talk about procession. Yes, there's a lot of 366 00:21:14,160 --> 00:21:16,080 Speaker 1: data coming out and if you just think what we've 367 00:21:16,160 --> 00:21:18,879 Speaker 1: come through in the last two years, the pandemic, in 368 00:21:19,000 --> 00:21:23,000 Speaker 1: the massive interventions, how do we find a steady path forward. 369 00:21:23,480 --> 00:21:27,640 Speaker 1: It's not surprising this volatility brings supplying them on into 370 00:21:27,720 --> 00:21:29,919 Speaker 1: balance again. This is going to be a tricky journey. 371 00:21:30,160 --> 00:21:33,840 Speaker 1: Goldman sax International CEO Richard Nodds spoke with Bloomberg's Francy 372 00:21:33,880 --> 00:21:36,679 Speaker 1: in Laqua at the World Economic Forum in Davos. We'll 373 00:21:36,720 --> 00:21:39,520 Speaker 1: speak live with the Bank of America CEO Brian moynihan 374 00:21:39,600 --> 00:21:42,560 Speaker 1: and Davos later this morning. Tune into Bloomberg Radio and 375 00:21:42,600 --> 00:21:45,399 Speaker 1: Television at eleven am Wall Street time to hear the 376 00:21:45,480 --> 00:21:48,840 Speaker 1: full interview and today's market. During and being influenced by 377 00:21:48,960 --> 00:21:53,000 Speaker 1: disappointing earnings from Snap. Bloomberg's Reneedly Young joins us Live 378 00:21:53,080 --> 00:21:55,520 Speaker 1: with details. We need a good morning, Good morning John. 379 00:21:55,640 --> 00:21:59,159 Speaker 1: When markets closed yesterday, Snap warned that it would miss 380 00:21:59,320 --> 00:22:03,240 Speaker 1: second quarter profited revenue forecasts and needs to slow hiring. 381 00:22:03,760 --> 00:22:07,760 Speaker 1: CEO Evan Spiegel cites the economic environment. If that sent 382 00:22:07,880 --> 00:22:11,479 Speaker 1: shares tumbling around thirty percent, which appears to be holding 383 00:22:11,560 --> 00:22:14,680 Speaker 1: in pre market trading. If that loss holds, it would 384 00:22:14,680 --> 00:22:18,080 Speaker 1: be Snap's biggest daily drop on record, making the company 385 00:22:18,160 --> 00:22:22,040 Speaker 1: lose some eleven billion dollars in market value. Snaps also 386 00:22:22,160 --> 00:22:26,840 Speaker 1: dragging down other tech names in pre market trading, Twitter, Meta, Pinterest, 387 00:22:26,960 --> 00:22:30,240 Speaker 1: and Alphabet are all lower. Live in New York, I'm 388 00:22:30,280 --> 00:22:32,440 Speaker 1: rened a Young Bloomberg day break, all right, we need 389 00:22:32,480 --> 00:22:34,560 Speaker 1: a thanks On the flip side. Shares a zoom or 390 00:22:34,640 --> 00:22:36,840 Speaker 1: up about six and a half percent in early trading 391 00:22:36,880 --> 00:22:39,959 Speaker 1: after projected sales and profit for the current quarter topped 392 00:22:40,000 --> 00:22:43,600 Speaker 1: Wall Street estimates. And turning to monetary policy, Kansas City 393 00:22:43,640 --> 00:22:47,040 Speaker 1: Fed President Aster George expands the funder reserve to raise 394 00:22:47,080 --> 00:22:50,520 Speaker 1: the industrates to two percent by August. She says tightening 395 00:22:50,600 --> 00:22:54,240 Speaker 1: afterwards will be guided by how fast inflation cools off 396 00:22:54,520 --> 00:22:57,320 Speaker 1: well overseas, John, President Biden is wrapping up his trip 397 00:22:57,400 --> 00:23:00,560 Speaker 1: to Asia. He urged fellow Indo Pacific leaders to make 398 00:23:00,600 --> 00:23:04,160 Speaker 1: a greater effort to stop Vladimir Putin's aggression in Ukraine. 399 00:23:04,440 --> 00:23:06,680 Speaker 1: We're in the Pacific cars, I said, We're gonna stand 400 00:23:06,720 --> 00:23:09,440 Speaker 1: with you, are close Democratic partners, and we're gonna stay 401 00:23:09,600 --> 00:23:13,040 Speaker 1: for the shared values that and the shared vision we 402 00:23:13,160 --> 00:23:16,439 Speaker 1: all have. President Biden also said he would review trunk 403 00:23:16,480 --> 00:23:20,440 Speaker 1: era tariffs on China as consumer prices search and bank 404 00:23:20,480 --> 00:23:23,359 Speaker 1: at the home. More primary elections today across several states. 405 00:23:23,480 --> 00:23:28,480 Speaker 1: Key elections taking place in Georgia, Texas, Alabama, Minnesota, and Arkansas. 406 00:23:29,119 --> 00:23:31,560 Speaker 1: And futures are lower This morning, straight ahead your latest 407 00:23:31,600 --> 00:23:34,639 Speaker 1: local headlines, plus a check of sports. This is Bloomberg. 408 00:23:38,640 --> 00:23:41,760 Speaker 1: Thanks three on Wall Street. Time to bring in Michael 409 00:23:41,800 --> 00:23:44,320 Speaker 1: Barr with more what else is going on in New 410 00:23:44,440 --> 00:23:47,360 Speaker 1: York end around the world. Thank you very much, John. 411 00:23:47,440 --> 00:23:49,639 Speaker 1: Police continued to search for the gunmen and the fatal 412 00:23:49,720 --> 00:23:52,400 Speaker 1: shooting of a man on a New York subway train. 413 00:23:52,960 --> 00:23:55,600 Speaker 1: Mayor Adams says there were no police officers on the 414 00:23:55,680 --> 00:23:58,720 Speaker 1: train car where the shooting occurred. Sunday, He says the 415 00:23:58,800 --> 00:24:02,520 Speaker 1: city will evaluate how it is deploying officers across the 416 00:24:02,600 --> 00:24:06,000 Speaker 1: sprawling subway system. Police say forty eight year old Daniel 417 00:24:06,040 --> 00:24:10,720 Speaker 1: Intoriquez of Brooklyn was killed without provocation. Texas Republican Governor 418 00:24:10,760 --> 00:24:13,760 Speaker 1: Greg Abbott is praising of federal judges ruling late Friday 419 00:24:14,080 --> 00:24:17,800 Speaker 1: that keeps the COVID era immigration ordered Title forty two 420 00:24:17,840 --> 00:24:21,200 Speaker 1: in place for now. Governor Rabbit toured an area beneath 421 00:24:21,240 --> 00:24:25,320 Speaker 1: the Eagle Pass International border crossing in southwest Texas. He 422 00:24:25,440 --> 00:24:28,160 Speaker 1: accused the Biden administration of not doing enough to stem 423 00:24:28,240 --> 00:24:31,840 Speaker 1: the flow of illegal crossings at the border. We don't 424 00:24:31,880 --> 00:24:36,840 Speaker 1: want communities like Eagle Pass to be overrun with large 425 00:24:36,880 --> 00:24:38,960 Speaker 1: number of migrants who are milling around in the strees. 426 00:24:39,280 --> 00:24:42,800 Speaker 1: Critics of Governor Abbot say Title forty two uses COVID 427 00:24:42,960 --> 00:24:45,800 Speaker 1: as an excuse the block people who have a legal 428 00:24:45,880 --> 00:24:49,960 Speaker 1: claim to enter the United States, like asylum seekers and refugees. 429 00:24:50,400 --> 00:24:53,160 Speaker 1: Doctors in Washington State are the latest to announce they're 430 00:24:53,160 --> 00:24:56,560 Speaker 1: treating a patient with a suspected case of monkey pocks, 431 00:24:56,880 --> 00:25:00,640 Speaker 1: bringing the number of states investigating cases to five. Dr 432 00:25:00,720 --> 00:25:04,080 Speaker 1: Jennifer McQuiston is the Deputy director of the CDC's Division 433 00:25:04,480 --> 00:25:08,640 Speaker 1: of High Consequence Pathogens and Pathology. People can become infected 434 00:25:08,680 --> 00:25:12,000 Speaker 1: with monkey pocks through close sustained skin to skin contact 435 00:25:12,080 --> 00:25:15,120 Speaker 1: with someone who has an active rash, or through respiratory 436 00:25:15,200 --> 00:25:18,440 Speaker 1: droplets in someone who has lesions in their mouths and 437 00:25:18,480 --> 00:25:21,160 Speaker 1: they're around another person for an extended period of time. 438 00:25:21,640 --> 00:25:24,919 Speaker 1: Dr McQuiston says most patients with monkey pox will recover 439 00:25:25,080 --> 00:25:27,520 Speaker 1: on their own within two to four weeks of their 440 00:25:27,560 --> 00:25:31,600 Speaker 1: first symptoms. Another shipment of baby formula is scheduled to 441 00:25:31,720 --> 00:25:34,480 Speaker 1: arrive in Washington tomorrow. The head of the U s 442 00:25:34,560 --> 00:25:37,120 Speaker 1: d a S has the formula shortage crisis could ease 443 00:25:37,160 --> 00:25:40,320 Speaker 1: in the next thirty days. Global News twenty four hours 444 00:25:40,400 --> 00:25:43,320 Speaker 1: a day on air and on Bloomberg quicks Egg, powered 445 00:25:43,359 --> 00:25:46,159 Speaker 1: by more than twenty seven hundred journalists and analysts in 446 00:25:46,240 --> 00:25:48,760 Speaker 1: more than a hundred twenty countries. I'm Michael lar and 447 00:25:48,880 --> 00:25:56,720 Speaker 1: this is Bloomberg John Michael, thank you. He is now fine. 448 00:25:56,760 --> 00:25:59,080 Speaker 1: Thirty six on All Street HAMUS. Time for the Bloomberg 449 00:25:59,160 --> 00:26:02,560 Speaker 1: Sports up to aid. Here's Scott Sidenburg. Thanks John Garrett 450 00:26:02,560 --> 00:26:05,640 Speaker 1: Cole allowed five runs on seven hits in eight innings 451 00:26:05,720 --> 00:26:08,440 Speaker 1: as the Yankees fell to the Orioles six four, suffering 452 00:26:08,480 --> 00:26:12,399 Speaker 1: their season high third straight loss. Aaron Judge Homard twice 453 00:26:12,600 --> 00:26:16,480 Speaker 1: in defeat. Before the game, Yankees third baseman Josh Donaldson 454 00:26:16,600 --> 00:26:19,800 Speaker 1: was suspended one game by Major League Baseball after referring 455 00:26:19,840 --> 00:26:24,400 Speaker 1: to White Sox shortstop Tim Anderson is Jackie, referencing Jackie Robinson. 456 00:26:24,760 --> 00:26:28,080 Speaker 1: Thoaldson is appealing the suspension, saying that the reference stems 457 00:26:28,119 --> 00:26:31,520 Speaker 1: from comments made by Anderson back in the nine interview 458 00:26:31,880 --> 00:26:36,200 Speaker 1: where he compared himself to Jackie Robinson. Thoalentson was placed 459 00:26:36,280 --> 00:26:39,080 Speaker 1: on the COVID nineteen injury list yesterday prior to the 460 00:26:39,160 --> 00:26:42,480 Speaker 1: loss against the Orioles. Elsewhere, the Mets with a big 461 00:26:42,600 --> 00:26:45,320 Speaker 1: night in the Bay Area Cats over three tonight, and 462 00:26:45,400 --> 00:26:47,840 Speaker 1: he launched was one a deep left center, headed back 463 00:26:47,880 --> 00:26:52,920 Speaker 1: toward the wall. It's out of their Catamax. It back 464 00:26:53,000 --> 00:26:56,680 Speaker 1: to back home runs McNeil and now cattle and his 465 00:26:56,880 --> 00:26:58,840 Speaker 1: fourth of the air and it's nine to two. New 466 00:26:59,000 --> 00:27:02,240 Speaker 1: York call on send why Pete Alonso Homard? As well 467 00:27:02,359 --> 00:27:06,119 Speaker 1: as the Mets route the Giants thirteen three hockey tonight, 468 00:27:06,200 --> 00:27:08,560 Speaker 1: the Rangers looked even up their series at two games 469 00:27:08,600 --> 00:27:11,919 Speaker 1: apiece against the Hurricanes the Oilers take on the Flames 470 00:27:11,960 --> 00:27:14,520 Speaker 1: in game five, they lead two games to one. Tennis 471 00:27:14,560 --> 00:27:17,040 Speaker 1: at the French Open, several top players are out, including 472 00:27:17,080 --> 00:27:20,600 Speaker 1: defending women's champ Barbara crazy Kova, the women's number two seed, 473 00:27:20,680 --> 00:27:24,720 Speaker 1: losing to French teenager Diane Perry. Elsewhere in Naomi Osaka 474 00:27:24,920 --> 00:27:28,240 Speaker 1: is out, losing to Amanda Anissimova. Osaka says she's not 475 00:27:28,280 --> 00:27:32,080 Speaker 1: a dent, sure she'll compete at Wimbledon. I'm Scott Edinburg 476 00:27:32,119 --> 00:27:36,080 Speaker 1: with Bloomberg Sports John far Times. Scott is now find 477 00:27:36,119 --> 00:27:38,240 Speaker 1: thirty seven on Wall Street and that's time for the 478 00:27:38,440 --> 00:27:41,959 Speaker 1: Trying State Business Report. For that, we're joined by Bloomberg's 479 00:27:42,119 --> 00:27:45,520 Speaker 1: Ed Corey Well. Even before COVID nineteen hit, the state 480 00:27:45,560 --> 00:27:48,600 Speaker 1: of New York was facing an outflow of taxpaying residents 481 00:27:48,920 --> 00:27:51,920 Speaker 1: that they'd had an average annual net out migration of 482 00:27:51,960 --> 00:27:55,240 Speaker 1: twenty eight thousand, seven hundred part year residence between twenty 483 00:27:55,840 --> 00:27:59,119 Speaker 1: and twenty nineteen, according to a report, that means the 484 00:27:59,240 --> 00:28:02,760 Speaker 1: states lawn about one hundred fifteen thousand tax filers during 485 00:28:02,800 --> 00:28:06,040 Speaker 1: the period. New York City subway system is carrying fewer 486 00:28:06,160 --> 00:28:09,360 Speaker 1: rids than expected this year as crime has spiked, including 487 00:28:09,359 --> 00:28:12,119 Speaker 1: a violent subway attack last month that shook the city. 488 00:28:12,400 --> 00:28:15,200 Speaker 1: There were four hundred fifteen million subway and bus trips 489 00:28:15,280 --> 00:28:19,200 Speaker 1: taken from January through April, about nine nine million less 490 00:28:19,359 --> 00:28:23,160 Speaker 1: than budgeted. New York City's last freestanding public pay phone 491 00:28:23,359 --> 00:28:26,200 Speaker 1: was taken away from Times Square on Monday morning for 492 00:28:26,280 --> 00:28:30,280 Speaker 1: a WiFi Kiosks by Link n y C program backed 493 00:28:30,320 --> 00:28:33,760 Speaker 1: by the technology consortium City Bridge and Partnership of the 494 00:28:33,840 --> 00:28:37,399 Speaker 1: City began to replace pay phones in twenty that your 495 00:28:37,440 --> 00:28:40,880 Speaker 1: Bloomberg Try and State Business Report. I'm Ed Corey, all right, 496 00:28:40,920 --> 00:28:43,680 Speaker 1: thanks In five thirty eight on Long Street. Bloomberg Radio 497 00:28:43,800 --> 00:28:46,080 Speaker 1: is on the year from San Francisco to New York, 498 00:28:46,320 --> 00:28:48,960 Speaker 1: London to Hong Kong. And let's check in now with 499 00:28:49,040 --> 00:28:51,400 Speaker 1: our global news team for some of the top stories 500 00:28:51,440 --> 00:28:55,040 Speaker 1: heard on our three hundred affiliate radio stations around the world. 501 00:28:57,760 --> 00:29:01,160 Speaker 1: I'm Steve podascon K and excellent Los Angeles. We're talking 502 00:29:01,200 --> 00:29:05,000 Speaker 1: about video game testers at Activision Blizzard voting to join 503 00:29:05,120 --> 00:29:08,040 Speaker 1: a union. I'm Ginas Servetti and for w b b 504 00:29:08,200 --> 00:29:11,160 Speaker 1: M in Chicago, I'm reporting that a special committee of 505 00:29:11,240 --> 00:29:14,040 Speaker 1: the City Council has approved a one point seven billion 506 00:29:14,120 --> 00:29:17,760 Speaker 1: dollar proposal by Valleys to build the city's first casino. 507 00:29:18,200 --> 00:29:21,000 Speaker 1: I'm Kalin head Come Blue Bag DAB Digital Radio. In London. 508 00:29:21,040 --> 00:29:23,880 Speaker 1: We're reporting on the opening of the new Elizabeth Line. 509 00:29:24,080 --> 00:29:28,400 Speaker 1: Years overdue and billions over budget, but schwansformational. According to 510 00:29:28,480 --> 00:29:34,480 Speaker 1: Andy Byford Detonsport, London Commissioner Um corneyanahoan Cafebian, Omaha farmers 511 00:29:34,520 --> 00:29:38,160 Speaker 1: are still seen making money and despite sin cost. I'm 512 00:29:38,280 --> 00:29:40,840 Speaker 1: ed Corey on w A t AM in Cleveland. I'm 513 00:29:40,920 --> 00:29:44,920 Speaker 1: reporting nine companies from northeast Ohio made the fortune five 514 00:29:45,040 --> 00:29:50,480 Speaker 1: hundred this year and those are some of these stories 515 00:29:50,560 --> 00:29:53,600 Speaker 1: are twenty seven hundred. Bloomberg journalists and analysts are working 516 00:29:53,640 --> 00:29:57,320 Speaker 1: on this morning around the world. It is five thirty 517 00:29:57,480 --> 00:30:00,960 Speaker 1: nine on Ball Street. The following is in editorial from 518 00:30:01,080 --> 00:30:05,440 Speaker 1: Bloomberg Opinion. It's disappointing that UK Prime Minister Boris Johnson 519 00:30:05,520 --> 00:30:08,280 Speaker 1: has chosen to escalate his quarrel with the EU at 520 00:30:08,360 --> 00:30:12,640 Speaker 1: this moment, but unfortunately it's not surprising at issues in 521 00:30:12,720 --> 00:30:15,920 Speaker 1: Northern Ireland Protocol, part of the UK's exit deal with 522 00:30:16,040 --> 00:30:19,200 Speaker 1: Europe that controls trade to and from the province. Brexit 523 00:30:19,320 --> 00:30:23,320 Speaker 1: has made trade involving Northern Ireland costlier and more complicated, 524 00:30:23,560 --> 00:30:26,680 Speaker 1: pushing it farther away from Britain and closer towards Ireland. 525 00:30:26,840 --> 00:30:30,479 Speaker 1: Members of Northern Ireland's Democratic Unionist Party say that as 526 00:30:30,600 --> 00:30:33,440 Speaker 1: long as the protocol stays in place, they'll refuse to 527 00:30:33,520 --> 00:30:36,400 Speaker 1: take their seats in the power sharing government. So Johnson, 528 00:30:36,640 --> 00:30:39,960 Speaker 1: bending to their pressure, has essentially told Europe changed the 529 00:30:40,040 --> 00:30:43,760 Speaker 1: protocol oral scrap it unilaterally. No doubt, the protocol was 530 00:30:43,840 --> 00:30:47,200 Speaker 1: poorly designed and needs attention, but it can be mended 531 00:30:47,320 --> 00:30:50,880 Speaker 1: through cooperation, not by Johnson threatening to tear up an 532 00:30:50,880 --> 00:30:54,760 Speaker 1: agreement he himself championed. This editorial was written by the 533 00:30:54,760 --> 00:30:58,720 Speaker 1: Bloomberg Opinion editorial board. I'm David Shipley. For more Bloomberg opinion, 534 00:30:58,760 --> 00:31:01,680 Speaker 1: please go to Bloomberg dot com Flash Opinion or op 535 00:31:02,040 --> 00:31:05,720 Speaker 1: go on the Bloomberg terminal. This has been Bloomberg Opinion 536 00:31:05,960 --> 00:31:09,320 Speaker 1: and Bloomberg Opinion editorials could be heard every weekday at 537 00:31:09,360 --> 00:31:12,600 Speaker 1: this time. Terminal customers can read more at opie. I 538 00:31:13,040 --> 00:31:18,400 Speaker 1: M go l futures right now down SMP futures down one. 539 00:31:18,600 --> 00:31:23,960 Speaker 1: This is Bloomberg just to have snap and just like that, 540 00:31:24,160 --> 00:31:28,200 Speaker 1: social media takes a tumble. Bloomberg's Alex Webb will stop 541 00:31:28,240 --> 00:31:37,640 Speaker 1: by talk about what is essentially a digital advertising story. Markets, 542 00:31:37,760 --> 00:31:40,800 Speaker 1: headlines and breaking news twenty four hours a day at 543 00:31:40,840 --> 00:31:44,840 Speaker 1: Bloomberg dot com, the Bloomberg Business at and at Bloomberg Trictape. 544 00:31:45,040 --> 00:31:54,120 Speaker 1: This is a Bloomberg Business lash and I'm Karen Moscow 545 00:31:54,320 --> 00:31:57,400 Speaker 1: stocks are lower this morning after a prophet warning from 546 00:31:57,480 --> 00:32:01,120 Speaker 1: snap Weight on technology shares in fuel concerns about risk 547 00:32:01,160 --> 00:32:04,080 Speaker 1: to economic growth. We check the markets every fifteen minutes 548 00:32:04,120 --> 00:32:06,160 Speaker 1: throughout the trading day on Bloomberg U S and P 549 00:32:06,360 --> 00:32:09,280 Speaker 1: futures down about fifty one points down, futures down two 550 00:32:09,320 --> 00:32:12,680 Speaker 1: hundred seventy five and NASDAGG futures down two hundred twenty three. 551 00:32:12,880 --> 00:32:16,040 Speaker 1: That's down about one point nine percent. The docks in 552 00:32:16,120 --> 00:32:19,320 Speaker 1: Germany is down nine tenths of a percent. Ten year 553 00:32:19,360 --> 00:32:22,240 Speaker 1: treasury of twelve thirty seconds yell two point eight zero percent. 554 00:32:22,320 --> 00:32:24,840 Speaker 1: The yelled downe at two year two point five seven percent. 555 00:32:25,280 --> 00:32:27,320 Speaker 1: Nine mex Scrude oil is down a third of per cent, 556 00:32:27,440 --> 00:32:29,440 Speaker 1: or thirty six cents at a hundred nine dollars ninety 557 00:32:29,480 --> 00:32:32,120 Speaker 1: three cents of barrel COMEXS Gold up four tenths percent 558 00:32:32,240 --> 00:32:34,320 Speaker 1: or eight dollars ten cents at eighteen sixty two and 559 00:32:34,400 --> 00:32:37,240 Speaker 1: ounce the euro one point oh seven one two against 560 00:32:37,280 --> 00:32:39,720 Speaker 1: the dollar, British found one point to four nine seven 561 00:32:40,000 --> 00:32:42,200 Speaker 1: and the end at one twenty seven point three one. 562 00:32:42,560 --> 00:32:45,520 Speaker 1: Bitcoin this morning is done about a quarter percent at 563 00:32:45,520 --> 00:32:48,640 Speaker 1: twenty nine thousand, two hundred forty dollars and shere's a 564 00:32:48,680 --> 00:32:51,360 Speaker 1: snapper down more than twenty eight percent in early trading. 565 00:32:51,680 --> 00:32:54,080 Speaker 1: That's a Bloomberg business flash. Now here's Michael Barr with 566 00:32:54,160 --> 00:32:57,200 Speaker 1: more on what's going on around the world. Muchael, Thank 567 00:32:57,240 --> 00:33:00,160 Speaker 1: you very much, Jaren with mid term primaries well under way. 568 00:33:00,240 --> 00:33:03,760 Speaker 1: Voters head to the polls in five states today. In Georgia, 569 00:33:03,840 --> 00:33:06,760 Speaker 1: where former President Trump's hold on the Republican Party will 570 00:33:06,800 --> 00:33:10,320 Speaker 1: be tested in the governor's race, Trump back David Purdue, 571 00:33:10,520 --> 00:33:13,640 Speaker 1: while former Vice President Mike Pence signs with the other 572 00:33:13,720 --> 00:33:17,480 Speaker 1: man in the race, incumbent governor Brian Kemp. The US 573 00:33:17,520 --> 00:33:20,880 Speaker 1: and Britain are accusing Russia of spreading disinformation online and 574 00:33:21,000 --> 00:33:24,040 Speaker 1: manipulating public opinion about the war in Ukraine. The two 575 00:33:24,120 --> 00:33:28,440 Speaker 1: countries vehemently rejecting Russia's claim at the West is aiming 576 00:33:28,480 --> 00:33:31,520 Speaker 1: to control all information flows and to find what is 577 00:33:31,560 --> 00:33:35,360 Speaker 1: true or untrue. NBA playoffs. The Celtics beat the Heat 578 00:33:35,400 --> 00:33:37,960 Speaker 1: to even the series at two games apiece. In baseball, 579 00:33:38,000 --> 00:33:40,719 Speaker 1: the Yankees lost to the Orioles, the Mets beat the Giants, 580 00:33:41,000 --> 00:33:44,200 Speaker 1: the Nationals and A's lost. Global news twenty four hours 581 00:33:44,240 --> 00:33:47,680 Speaker 1: a day on air and on Bloomberg Quicktank, powered by 582 00:33:47,720 --> 00:33:50,600 Speaker 1: more than twenty seven hundred journalists and analysts in more 583 00:33:50,640 --> 00:33:53,640 Speaker 1: than a hundred twenty countries. I'm Michael Bard. This is Bloomberg, 584 00:33:53,720 --> 00:33:56,560 Speaker 1: John Michael, Thank you five forty nine of Wall Street. 585 00:33:56,560 --> 00:33:59,920 Speaker 1: We are live from the Bloomberg Interactive Broker's studios. They 586 00:34:00,360 --> 00:34:04,200 Speaker 1: his daybreak, a slump in tech, let a drop for 587 00:34:04,320 --> 00:34:07,160 Speaker 1: futures after Snap sour the mood with a cut to 588 00:34:07,200 --> 00:34:12,840 Speaker 1: reve than profit forecast shares. This Karen mentioned dropping pre market, 589 00:34:12,960 --> 00:34:16,840 Speaker 1: dragging peers from Meta to Pinterest and Twitter with it. 590 00:34:16,960 --> 00:34:19,080 Speaker 1: And let's get a closer look this morning with Alex 591 00:34:19,160 --> 00:34:23,680 Speaker 1: Web corresponded for Bloomberg Quick Take. Thanks for being here, appreciated. 592 00:34:24,000 --> 00:34:28,040 Speaker 1: Remind anybody born last century what Snap does? Why this 593 00:34:28,200 --> 00:34:32,959 Speaker 1: is a digital advertising story. Well. Stap is a social 594 00:34:33,000 --> 00:34:38,319 Speaker 1: media platform, but largely used by younger users who it's 595 00:34:38,360 --> 00:34:43,400 Speaker 1: fleeting images and videos, which, after having been watched, then disappear. 596 00:34:43,680 --> 00:34:47,480 Speaker 1: It attracts uses by encouragence of post every day they 597 00:34:47,560 --> 00:34:49,799 Speaker 1: have streached that might otherwise use. And as with any 598 00:34:49,840 --> 00:34:52,640 Speaker 1: other social media platform, they make their money from advertising. 599 00:34:52,719 --> 00:34:55,320 Speaker 1: And as we know, when there's a slowdown in the economy, 600 00:34:55,800 --> 00:35:00,239 Speaker 1: often the first thing that brands and companies and general 601 00:35:00,440 --> 00:35:03,239 Speaker 1: term two in terms of finding cost savings is their 602 00:35:03,280 --> 00:35:06,920 Speaker 1: marketing budget. And that's what's happening here. The smaller ones 603 00:35:06,920 --> 00:35:09,279 Speaker 1: are getting hit first, perhaps a bit more resilience among 604 00:35:09,320 --> 00:35:12,640 Speaker 1: the bigger ones. Okay, so the CEO, what does he blaming? 605 00:35:14,280 --> 00:35:17,759 Speaker 1: You know, the broader inflationary pressures that we're seeing from 606 00:35:19,200 --> 00:35:21,120 Speaker 1: you know, not least through the war in Ukraine, but 607 00:35:21,600 --> 00:35:24,120 Speaker 1: supply chain snarl ups, all these things that are affecting 608 00:35:24,239 --> 00:35:29,520 Speaker 1: companies profits and therefore encouraging companies are therefore having to 609 00:35:29,920 --> 00:35:33,080 Speaker 1: cut down on their on their expenditures. You know. The 610 00:35:33,200 --> 00:35:35,000 Speaker 1: thing that you also have to look at with Snap 611 00:35:35,120 --> 00:35:39,000 Speaker 1: is that it was valued pretty highly already. It was 612 00:35:39,120 --> 00:35:43,200 Speaker 1: valued at then before yesterday's news, and of course until 613 00:35:43,280 --> 00:35:47,600 Speaker 1: markets open something like fifty times it's forward earnings. Now 614 00:35:47,640 --> 00:35:51,399 Speaker 1: compare that to Facebook, which traded about fifteen times it's 615 00:35:51,400 --> 00:35:54,480 Speaker 1: forward earnings, and Twitter which is about thirty five times, 616 00:35:54,560 --> 00:35:57,879 Speaker 1: and Snap was very generously valued. Now if you if 617 00:35:58,040 --> 00:36:00,239 Speaker 1: Snap is saying that it's earnings that kind of come down, 618 00:36:00,320 --> 00:36:02,200 Speaker 1: which is, well, they're not going to grow as much 619 00:36:02,239 --> 00:36:04,279 Speaker 1: as they had expected. They've said it will be below 620 00:36:04,400 --> 00:36:11,120 Speaker 1: the range they had previously given. That means that by extension, 621 00:36:11,400 --> 00:36:14,120 Speaker 1: the valuation has to come down as well. We're seeing 622 00:36:14,200 --> 00:36:16,920 Speaker 1: that a lot of corrections are happening then in the 623 00:36:16,960 --> 00:36:21,279 Speaker 1: social media space, as people realize these valuations are quite generous. Yeah, 624 00:36:21,440 --> 00:36:23,680 Speaker 1: I mean, how much of the story is specific just 625 00:36:23,960 --> 00:36:26,560 Speaker 1: to the company or is it, as you say, a 626 00:36:26,719 --> 00:36:30,239 Speaker 1: much much broader story. It is a broader story. But 627 00:36:30,880 --> 00:36:33,920 Speaker 1: as I sort of alluded to earlier, the big companies 628 00:36:33,960 --> 00:36:37,200 Speaker 1: like Facebook and Google, or Meta and Google. You know, 629 00:36:37,320 --> 00:36:40,960 Speaker 1: they have by some accounts, you know, even Instagram has 630 00:36:41,000 --> 00:36:44,280 Speaker 1: one and a half billion active users, so does YouTube, 631 00:36:44,800 --> 00:36:47,840 Speaker 1: and of course even more people using Google Search. So 632 00:36:48,760 --> 00:36:53,200 Speaker 1: even with inflationary pressures, a lot of brands will still 633 00:36:53,239 --> 00:36:55,239 Speaker 1: feel they have to be on those two big platforms that. 634 00:36:55,640 --> 00:36:57,279 Speaker 1: You know, if someone is going on the Internet and 635 00:36:57,360 --> 00:37:00,680 Speaker 1: searching for blue T shirts and you're in the business 636 00:37:00,719 --> 00:37:03,080 Speaker 1: of selling blue T shirts, you have to be advertising 637 00:37:03,120 --> 00:37:05,400 Speaker 1: on Google. That is less the case at some of 638 00:37:05,440 --> 00:37:09,120 Speaker 1: the smaller platforms like Snap, like Twitter, like Pinterests, which 639 00:37:09,160 --> 00:37:11,960 Speaker 1: are a bit more discretionary, perhaps adding you're trying to 640 00:37:12,239 --> 00:37:14,600 Speaker 1: find its brand recognition, You're trying to find new customers 641 00:37:14,680 --> 00:37:17,720 Speaker 1: in a different way from from actually driving a sale 642 00:37:17,760 --> 00:37:19,200 Speaker 1: in the way that you might do our Google search. 643 00:37:20,080 --> 00:37:23,080 Speaker 1: How does the Apple figure into this, Well, Apple's role 644 00:37:23,840 --> 00:37:27,880 Speaker 1: is quite significant because of some changes they introduced recently 645 00:37:28,480 --> 00:37:30,560 Speaker 1: UM pertaining to what's soon as I d I d 646 00:37:30,680 --> 00:37:33,600 Speaker 1: f A identification for advertisers. Now, this is a sort 647 00:37:33,640 --> 00:37:38,160 Speaker 1: of number which let brands work out or app makers 648 00:37:38,680 --> 00:37:40,960 Speaker 1: work out who was in their app and going from 649 00:37:41,000 --> 00:37:43,640 Speaker 1: app to apps. So for instance, if I'm in Snap 650 00:37:43,760 --> 00:37:46,120 Speaker 1: and I see in Snapchat and I see an advert 651 00:37:46,280 --> 00:37:50,080 Speaker 1: advert for Nike sneakers, and then I decide half an 652 00:37:50,120 --> 00:37:52,479 Speaker 1: hour later or even two weeks later in the Nike 653 00:37:52,640 --> 00:37:55,400 Speaker 1: app to buy those sneakers, it knows that I am 654 00:37:55,480 --> 00:37:57,560 Speaker 1: the same person because of I d f A. Now, 655 00:37:57,600 --> 00:37:59,960 Speaker 1: what Apple brought in was changes which made it easy 656 00:38:00,160 --> 00:38:02,520 Speaker 1: for people to say don't track me across apps. That 657 00:38:02,680 --> 00:38:05,520 Speaker 1: means that it's harder for the likes of Snap to say, well, actually, 658 00:38:05,520 --> 00:38:07,320 Speaker 1: we helped drive drive that sale for you, and I 659 00:38:07,480 --> 00:38:10,080 Speaker 1: keep by showing them and add an ad in our app, 660 00:38:10,239 --> 00:38:12,640 Speaker 1: and so that means it destroys a bit of value 661 00:38:12,680 --> 00:38:14,960 Speaker 1: for the likes of Snap. It's something that a lot 662 00:38:15,000 --> 00:38:16,920 Speaker 1: of these social media companies and of course other app 663 00:38:16,960 --> 00:38:18,840 Speaker 1: makers are complaining about, but it is very good for 664 00:38:19,200 --> 00:38:22,120 Speaker 1: you know, consumer choice and consumer privacy. Alex, thanks a 665 00:38:22,200 --> 00:38:25,600 Speaker 1: lot for the explainer. Appreciated Alex Webb, correspondent for Bloomberg 666 00:38:25,719 --> 00:38:29,160 Speaker 1: quicktic and you know the pre market this morning, Snap 667 00:38:29,400 --> 00:38:33,560 Speaker 1: shares the most actively traded right now. They're down twenty 668 00:38:33,840 --> 00:38:36,960 Speaker 1: eight percent. Karen, all right, John, thank you. It's five 669 00:38:37,320 --> 00:38:40,280 Speaker 1: three on Wall Street. Time for our Bloomberg the Law Report. 670 00:38:40,400 --> 00:38:42,800 Speaker 1: We get to the legal stories we're watching this morning 671 00:38:42,840 --> 00:38:49,919 Speaker 1: with Bloomberg's Joan Donnegher. Senators in both parties are looking 672 00:38:49,960 --> 00:38:52,360 Speaker 1: at adding tax perks a credit for u S producers 673 00:38:52,400 --> 00:38:56,759 Speaker 1: of semiconductors, to a bill addressing economic competitiveness. Some Democrats, though, 674 00:38:56,800 --> 00:38:59,239 Speaker 1: are kathy with the idea of adding tax provisions that 675 00:38:59,400 --> 00:39:02,600 Speaker 1: benefit for rations. Lawmakers want to raise the ten thousand 676 00:39:02,640 --> 00:39:05,440 Speaker 1: dollar deduction cap on state and local tax payments are 677 00:39:05,480 --> 00:39:07,840 Speaker 1: looking for another way to get it done. They're hoping 678 00:39:07,920 --> 00:39:10,960 Speaker 1: to see it go through the appropriations process and battle 679 00:39:11,000 --> 00:39:13,000 Speaker 1: lines are forming on Capitol Hill and the effort to 680 00:39:13,040 --> 00:39:17,080 Speaker 1: include cryptocurrency assets in four oh one k plans. Bloomberg 681 00:39:17,200 --> 00:39:21,280 Speaker 1: Law everything you need, all on one legal research platform, 682 00:39:21,480 --> 00:39:26,080 Speaker 1: including guidance analysis and Bloomberg Market Intelligence. Find out more 683 00:39:26,160 --> 00:39:30,840 Speaker 1: at Bloomberg Law dot com. All right, Joan, thank you 684 00:39:30,960 --> 00:39:35,120 Speaker 1: now another legal story we're watching this morning. Cryptocurrency litigation 685 00:39:35,360 --> 00:39:38,120 Speaker 1: is soaring, prompted by a surge of investors in the 686 00:39:38,239 --> 00:39:42,080 Speaker 1: space and US proposals promised more rules to fight over 687 00:39:42,200 --> 00:39:45,000 Speaker 1: in the coming months and years. According to law firm 688 00:39:45,040 --> 00:39:48,400 Speaker 1: Morrison Cohen, crypto has generated more than two hundred class 689 00:39:48,440 --> 00:39:52,000 Speaker 1: action lawsuits and other private litigation as of this month, 690 00:39:52,239 --> 00:39:55,560 Speaker 1: more than fifty percent since the start of For more 691 00:39:55,640 --> 00:39:58,400 Speaker 1: on the uptick and lawsuits, Bloomberg student Grosso spoke with 692 00:39:58,520 --> 00:40:02,560 Speaker 1: Stam Skolnick, a boarder for a Bloomberg Law. Currently, there 693 00:40:02,640 --> 00:40:08,120 Speaker 1: are roughly four hundred actions, be they private lawsuits government suits, 694 00:40:08,440 --> 00:40:11,520 Speaker 1: that are are current in this space. Um That number 695 00:40:11,600 --> 00:40:15,640 Speaker 1: has grown consistently over the years, according to at least 696 00:40:16,360 --> 00:40:18,840 Speaker 1: one guy at a firm called a Morrison and Cohen, 697 00:40:18,880 --> 00:40:21,400 Speaker 1: a mid sized firm in New York that keeps track 698 00:40:21,480 --> 00:40:25,560 Speaker 1: of these lawsuits regarding crypto companies, about half of the 699 00:40:25,640 --> 00:40:27,839 Speaker 1: four hundred, though he said that there's been a real 700 00:40:27,920 --> 00:40:30,800 Speaker 1: explosion in one portion of this that has to do 701 00:40:30,960 --> 00:40:35,400 Speaker 1: with class action lawsuits, other private litigation. About half of 702 00:40:35,440 --> 00:40:39,080 Speaker 1: that four hundred numbers roughly two hundred. That number has 703 00:40:39,120 --> 00:40:44,719 Speaker 1: grown exponentially over just the last few years, and interestingly, June, 704 00:40:44,840 --> 00:40:48,080 Speaker 1: just a quick search of this litigation, of this private 705 00:40:48,120 --> 00:40:51,360 Speaker 1: litigation shows some pretty big names attached to some of 706 00:40:51,400 --> 00:40:53,920 Speaker 1: these suits, and you don't have to follow legal news 707 00:40:54,000 --> 00:40:57,960 Speaker 1: specifically to know some of these names. For example, in January, 708 00:40:58,239 --> 00:41:02,239 Speaker 1: there was a class action I think it's still awaiting certification, 709 00:41:02,400 --> 00:41:08,279 Speaker 1: but computative class action against Kim Kardashian, the celebutante, as 710 00:41:08,360 --> 00:41:12,920 Speaker 1: well as former boxing champ of Floyd Mayweather Jr. And others. 711 00:41:13,239 --> 00:41:16,799 Speaker 1: And what that pseudolleged is that the defendants had made 712 00:41:17,120 --> 00:41:21,399 Speaker 1: misleading statements in Twitter and other social media posts. Two 713 00:41:21,480 --> 00:41:27,680 Speaker 1: investors of one specific cryptocurrency token called Ethereum Max, and 714 00:41:27,760 --> 00:41:30,320 Speaker 1: then there have been lots of other big companies including 715 00:41:30,640 --> 00:41:33,360 Speaker 1: I'm not sure from pronouncing this right, but the fancy 716 00:41:33,520 --> 00:41:38,279 Speaker 1: French scarf and bagmaker air Mess International. They also have 717 00:41:38,400 --> 00:41:41,760 Speaker 1: been involved in litigation of a different type where a patent, 718 00:41:42,280 --> 00:41:46,080 Speaker 1: trademark and fringeman litigation also, I believe in January they 719 00:41:46,200 --> 00:41:49,600 Speaker 1: sued a company called Mason Lothschild in the Federal Court 720 00:41:49,640 --> 00:41:54,239 Speaker 1: in Manhattan basically claiming that that this other company had 721 00:41:54,520 --> 00:42:00,000 Speaker 1: sold a non fungible token these a nonreplicable digital collect 722 00:42:00,040 --> 00:42:03,480 Speaker 1: double items, and that they were doing so illegally, that 723 00:42:03,560 --> 00:42:06,919 Speaker 1: they were infringing one trademark from the Suffrench fashion House. 724 00:42:07,640 --> 00:42:10,600 Speaker 1: And that's Bloomberg Law reporter Sam Skolnick speaking at the 725 00:42:10,640 --> 00:42:14,239 Speaker 1: Bloomberg Stewing Garasso. Catch more of that interview, plus analysis 726 00:42:14,280 --> 00:42:16,960 Speaker 1: of the latest legal news by subscribing to the Bloomberg 727 00:42:17,040 --> 00:42:20,040 Speaker 1: Law Podcast or downloading this show at Bloomberg dot com 728 00:42:20,160 --> 00:42:24,160 Speaker 1: slash podcast. Attorneys can find exceptional legal research and business 729 00:42:24,200 --> 00:42:27,040 Speaker 1: development tools at Bloomberg Law dot com and on the 730 00:42:27,080 --> 00:42:31,279 Speaker 1: Bloomberg terminal at b law Go. SNP futures are lower 731 00:42:31,400 --> 00:42:33,880 Speaker 1: this morning, down forty five points and down futures down 732 00:42:33,920 --> 00:42:36,800 Speaker 1: two hundred forty and NASDAG futures down to two hundred 733 00:42:37,000 --> 00:42:40,279 Speaker 1: to tenure treasury of twelve thirties seconds yet two point 734 00:42:40,320 --> 00:42:44,720 Speaker 1: eight zero percent our top stories straight ahead on Bloomberg Daybreak, 735 00:42:44,800 --> 00:42:46,160 Speaker 1: And this is Bloomberg