WEBVTT - Bloomberg Daybreak: May 24, 2022 - Hour 1 (Radio) 0:00:03.600 --> 0:00:07.240 Live from the Bloomberg Interactor Berger Studios is Bloomberg Daybreak 0:00:07.280 --> 0:00:12.320 for a Tuesday. Coming up this hour, US teaches Sankas, 0:00:12.320 --> 0:00:15.520 Earnings from Snaps, and big Tech lower. Christine mc guard 0:00:15.600 --> 0:00:18.400 weighs in on monetary policy, saying she won't rush into 0:00:18.440 --> 0:00:21.880 a drawing stimulus US primaries and focus again as contest 0:00:21.920 --> 0:00:25.040 that Georgia could show Donald Trump's influence on the GOP. 0:00:25.840 --> 0:00:28.120 The gunman in a deadly subway shooting in New York 0:00:28.160 --> 0:00:30.840 remains on the loopse P What's Texas? Governor Rabbits says 0:00:30.880 --> 0:00:33.400 Moore is needed to stop the flow of migrants. I'm 0:00:33.440 --> 0:00:37.120 Michael Blarer. More ahead, Tom Scott Sedberg. The Yankees dropped 0:00:37.159 --> 0:00:39.720 their third scrape. The Mets win big out West. I'll 0:00:39.760 --> 0:00:45.040 have that in more coming up in sports. That's All's 0:00:45.080 --> 0:00:48.479 training ahead on Bloomberg Daybreak on Bloomberg. He Live in 0:00:48.520 --> 0:00:53.000 Free on New York, Bloomberg one, Washington, d C, Bloomberg 0:00:53.040 --> 0:00:56.720 one O six one, Boston, Bloomberg nine sixties and Francisco 0:00:57.200 --> 0:01:00.240 Syrius XM one nineteen and around the world. Old on 0:01:00.400 --> 0:01:03.680 Bloomberg Radio dot Com and via the Bloomberg Business App. 0:01:07.640 --> 0:01:10.680 Good Morning on John Tucker and I'm Karen Moscow. US 0:01:10.760 --> 0:01:13.520 DOT Index futures are lower this morning. We're coming up 0:01:13.520 --> 0:01:15.080 to five o one on Wall Street, and we check 0:01:15.120 --> 0:01:17.640 the markets every fifteen minutes throughout the trading day. On 0:01:17.680 --> 0:01:21.400 bloomberg SMP future is down fifty eight points, DAL Future 0:01:21.440 --> 0:01:23.880 is down three hundred thirty and as DAG futures down 0:01:23.880 --> 0:01:27.000 two hundred forty eight. The decks in Germany's down one 0:01:27.040 --> 0:01:30.520 point two percent. Ten year treasury of fourteen thirty seconds 0:01:30.560 --> 0:01:32.840 yield two point eight zero percent. They yield on the 0:01:32.840 --> 0:01:36.040 two year two point five seven percent. Nim X screwn 0:01:36.080 --> 0:01:38.320 oils down four tens per cent, or forty nine cents 0:01:38.360 --> 0:01:40.480 at a hundred nine dollars eighty one cents a barrel. 0:01:40.680 --> 0:01:43.080 Co max schooled up four ten percent or seven dollars 0:01:43.080 --> 0:01:46.399 twenty cents at eighteen sixty one twenty announced and Bitcoin 0:01:46.480 --> 0:01:49.560 this morning at twenty nine thousand, one fifty dollars. John 0:01:49.840 --> 0:01:53.360 currently decline in futures follows yesterday's rally to start the week, 0:01:53.400 --> 0:01:56.960 the Dow leading the games, advancing two percent. It looks 0:01:57.000 --> 0:01:59.560 like we still haven't hit bottom, at least according to 0:01:59.640 --> 0:02:02.840 David's Stubbs. The global head of process at thematic strategy 0:02:02.880 --> 0:02:06.400 at JP Morgan Private Bank. What the market has been 0:02:06.440 --> 0:02:09.000 fearing in the last couple of weeks is that the 0:02:09.000 --> 0:02:12.520 growth outlook maybe weakening, and therefore earnings trends going forward 0:02:12.760 --> 0:02:15.799 may also start to weaken. We'll see this this week. 0:02:15.880 --> 0:02:18.280 This rody can absolutely continue from here because of where 0:02:18.440 --> 0:02:21.240 however so old markets were. If the data is is supportive, 0:02:21.360 --> 0:02:23.360 But that doesn't mean that we've met we've reached an 0:02:23.360 --> 0:02:26.440 important bottom in the markets now. JP Morgan's David Stubbs 0:02:26.440 --> 0:02:29.360 says he needs to see easy inflation and clarity about 0:02:29.360 --> 0:02:32.360 where interest rates will peak. That, he says good signal 0:02:32.520 --> 0:02:35.680 a bottom to the stock market. Well, John, Today's market 0:02:35.680 --> 0:02:39.320 direction is being influenced by disappointing earnings from Snap, and 0:02:39.400 --> 0:02:42.040 we get the details live from Bloomberg's Rnedy Yell and 0:02:42.040 --> 0:02:45.360 Good morning Nita, Good morning Karen. When markets closed yesterday, 0:02:45.480 --> 0:02:49.400 Snap warned that it would miss record second quarter profit 0:02:49.480 --> 0:02:53.200 and revenue forecast it needs to slow hiring. CEO Evan 0:02:53.240 --> 0:02:57.240 Spiegel cites the economic environment and that sent shares tumbling 0:02:57.320 --> 0:03:01.400 down around which appears to holding in pre market trading. 0:03:01.680 --> 0:03:04.400 If that loss holds, it would be Snap's biggest daily 0:03:04.520 --> 0:03:08.080 drop on record, making the company lose some eleven billion 0:03:08.120 --> 0:03:11.600 dollars in market value. Snaps also dragging down other tech 0:03:11.720 --> 0:03:15.800 names in pre market trading, Twitter, Meta, Pinterest, and Alphabet 0:03:15.800 --> 0:03:18.480 are all lower and they may collectively see a one 0:03:18.520 --> 0:03:22.440 hundred billion dollar wipeout. Live in New York, I'm renit 0:03:22.480 --> 0:03:24.720 a young Bloomberg day break, real need to thanks on 0:03:24.760 --> 0:03:27.760 the flip side. Shares of Zoom up almost six percent 0:03:27.800 --> 0:03:31.120 in early trading, the company signaling it can expand beyond 0:03:31.120 --> 0:03:34.960 its consumer friendly video software that made it a pandemic Darling, 0:03:35.400 --> 0:03:38.160 Zoom rejected sales and profit for the current quarter that 0:03:38.320 --> 0:03:41.760 topped estimates. While turning to the economy now, John Kansas 0:03:41.800 --> 0:03:44.680 City Fed President Esther George expects the Central Bank to 0:03:44.760 --> 0:03:47.920 raise interest rates to two percent by August. After that, 0:03:48.040 --> 0:03:50.360 she says more tightening will be guided by how fast 0:03:50.440 --> 0:03:53.320 inflation cools off. George has been known as a longtime 0:03:53.320 --> 0:03:56.520 policy hawk who were recently moved to the center and 0:03:56.600 --> 0:03:59.680 care monetary policy a focus in Europe. This morning, a 0:03:59.800 --> 0:04:02.800 day after Christine Legard said higher interest rates are coming 0:04:02.800 --> 0:04:06.600 in July, the ECB president sent down for her first 0:04:06.680 --> 0:04:10.000 interview at the World Economic Format Davos, and she spoke 0:04:10.040 --> 0:04:13.640 with Bloomberg's Francy and Laquix. We are at the turning point. 0:04:14.400 --> 0:04:19.320 We have all the components in place for that. We 0:04:19.400 --> 0:04:22.240 are turning our back to negative interest rates. We are 0:04:22.279 --> 0:04:27.279 moving very likely into positive territory at the end of 0:04:27.320 --> 0:04:30.760 the third quarter, and then, of course we will calibrate. 0:04:30.839 --> 0:04:34.039 We will stop this exactly by how much we want 0:04:34.080 --> 0:04:37.320 to do that. Christine Legard also rejecting the idea that 0:04:37.360 --> 0:04:40.279 the Euro Area is headed for recession. Stay tuned for 0:04:40.320 --> 0:04:43.799 more of our conversation with the ECB president coming up shortly, 0:04:44.240 --> 0:04:46.240 and we also invite you to join us this morning 0:04:46.240 --> 0:04:49.400 where we continue our global coverage from Davos. We speak 0:04:49.440 --> 0:04:53.599 live with Bank of America CEO Brian moynihan. Conversations coming 0:04:53.640 --> 0:04:55.760 up live at eleven am moll Street Time on both 0:04:55.800 --> 0:04:59.440 Bloomberg Radio and television. And Journey to Politics Now President 0:04:59.440 --> 0:05:01.479 by and wrap ing up his trip to Asia. He 0:05:01.560 --> 0:05:03.800 spoke earlier today at the opening of the leaders Some 0:05:03.920 --> 0:05:07.200 of in Tokyo and address the ongoing war in Ukraine. 0:05:07.560 --> 0:05:10.200 We're navigating in a dark hour in our shared history. 0:05:11.400 --> 0:05:16.000 The Russian brutal and unprovoked war against Ukraine has triggered 0:05:16.000 --> 0:05:20.320 a humanitarian catastrophe and innocent civilians have killed in the 0:05:20.360 --> 0:05:25.159 streets and millions of refugees are internally displaced, as well 0:05:25.200 --> 0:05:31.119 as exile, President urging Indo Pacific leaders, including India's Naredra Modi, 0:05:31.240 --> 0:05:34.599 to make a greater effort to stop Vladimir Putin's aggression 0:05:34.960 --> 0:05:37.640 and John The discussion of tariffs on China has also 0:05:37.720 --> 0:05:40.479 been a focal point of President Biden's trip to Asia. 0:05:40.640 --> 0:05:44.440 Biden says he will review Trump Aaron levies as consumer 0:05:44.480 --> 0:05:47.600 prices surge. We got up a trade representative, Catherine ty 0:05:47.760 --> 0:05:50.680 who also awaited on the matter. With respect of the tarroiffs, 0:05:50.720 --> 0:05:54.719 our approach, as with everything in this relationship, is to 0:05:55.320 --> 0:05:58.440 be strategic. We have to keep our eye on the 0:05:58.480 --> 0:06:02.000 ball in terms of how to effectively realign the US 0:06:02.080 --> 0:06:06.160 China trade and economic relationship. Trade Representative Catherine Tye would 0:06:06.200 --> 0:06:09.320 not say whether the administration would remove tariffs on China 0:06:09.640 --> 0:06:12.400 or give a time frame for making a decision. And 0:06:12.520 --> 0:06:15.359 Karen back here in the US today marks another test 0:06:15.400 --> 0:06:19.520 of Donald Trump's influence on Republican voters this primary season, 0:06:20.000 --> 0:06:23.760 and Bloomberg's Joe Matthew tells us all eyes are on voters. 0:06:23.960 --> 0:06:27.480 In Georgia, Trump's endorsement of former Senator David Purdue and 0:06:27.520 --> 0:06:31.000 the Republican gubernatorial primary has failed to make a serious 0:06:31.040 --> 0:06:33.960 threat to Governor Brian Kemp, who is currently leading Perdue 0:06:34.000 --> 0:06:37.080 by more than twenty percentage points. The incumbent being supported 0:06:37.080 --> 0:06:41.400 by establishment Republicans, including former Vice President Mike Pence. The 0:06:41.480 --> 0:06:44.159 outcome of this race and another for Secretary of State 0:06:44.279 --> 0:06:47.840 is considered personal for Trump after Georgia's Republican leaders did 0:06:47.839 --> 0:06:51.560 not overturn the election. One bright spot for Trump has 0:06:51.600 --> 0:06:54.840 picked for Senate football legend herschel Walker, widely expected to 0:06:54.880 --> 0:06:58.560 win his primary. Joe, Matthew Bloomberg, Daybreak, Sorry Joe, thank you. 0:06:58.680 --> 0:07:01.480 Futures this morning are or S and P futures down 0:07:01.560 --> 0:07:04.880 fifty nine points down. Futures down three hundred thirty four 0:07:04.920 --> 0:07:07.600 and nastagg futures are down two d fifty. That's down 0:07:07.640 --> 0:07:11.000 more than two ten year treasury of fourteen thirty seconds. 0:07:11.040 --> 0:07:13.560 You have two point seven nine percent straight to had 0:07:13.600 --> 0:07:16.840 your latest local headlines plus a check of sports, and 0:07:17.160 --> 0:07:25.280 this is Bloomberg, right. Thanks. Karen five of Wall Street 0:07:25.440 --> 0:07:28.000 had time to bring in Michael Barr with more on 0:07:28.120 --> 0:07:30.720 what else is going on to New York and around 0:07:30.720 --> 0:07:34.400 the world. Mayor Eric Adams john says investigators of a 0:07:34.440 --> 0:07:36.720 fatal shooting on a New York subway train a half 0:07:36.840 --> 0:07:40.320 you leads. Police say forty eight year old Daniel Enriquez 0:07:40.440 --> 0:07:43.040 was killed without provocation, the killer still on the loose. 0:07:43.360 --> 0:07:47.080 Adams said that the shooting was unimaginable and the worst nightmare. 0:07:47.440 --> 0:07:49.760 I have to make sure the city is safe and 0:07:49.800 --> 0:07:52.679 I want that obligation. I thank god I'm the mayor 0:07:52.800 --> 0:07:56.720 right now and not those that don't understand the urgency 0:07:56.760 --> 0:07:59.840 of this moment. Mayor Adams says there were no police 0:08:00.000 --> 0:08:02.760 officers on the train car where the shooting occurred. The 0:08:02.880 --> 0:08:06.400 NYPD says the second arrest was announced in the deadly 0:08:06.480 --> 0:08:08.640 shooting of an eleven year old girl last week in 0:08:08.680 --> 0:08:12.400 the Bronx. Authorities say and alleged accomplice, eighteen year old 0:08:12.480 --> 0:08:15.880 Omar Bojang, turned himself in. He's accused of driving the 0:08:15.880 --> 0:08:18.600 scooter that a fifteen year old was allegedly riding on 0:08:18.720 --> 0:08:21.840 when he opened fire. The intended target is believed to 0:08:21.880 --> 0:08:24.120 have been another team who was not hit, but instead 0:08:24.120 --> 0:08:28.320 a bullet struck and killed eleven year old Karatay. Bronx 0:08:28.400 --> 0:08:33.079 District Attorney Darcel Clark spoke outside the girl's funeral, eleven 0:08:33.160 --> 0:08:36.640 year old, you know, can't even be outside. You know, 0:08:36.720 --> 0:08:40.920 she's getting her fingernails done and just you know, without knowing, 0:08:41.480 --> 0:08:45.520 bullets are flying five o'clock in the afternoon. Incomprehensible. But 0:08:45.600 --> 0:08:48.000 this is what we've been dealing with in the Bronx DA, 0:08:48.280 --> 0:08:52.240 Darsel Clark. Texas Governor Greg Abbott was at the US 0:08:52.320 --> 0:08:55.600 southern border where he praised the continuation of an immigration 0:08:55.720 --> 0:08:59.280 policy known as Title forty two. The pandemic era policy 0:08:59.280 --> 0:09:01.960 allows a fish us to turn away migrants at the border. 0:09:02.440 --> 0:09:06.040 President Biden trying to have Title forty two lifted, but 0:09:06.160 --> 0:09:08.920 the Governor Rabbit praise the federal judges ruling that it 0:09:09.000 --> 0:09:12.240 must remain in place for now. The Biden administration seems 0:09:12.280 --> 0:09:14.560 to be letting him people whether they're crossing through the 0:09:14.559 --> 0:09:17.679 port of entry or across the river. And there's been 0:09:17.720 --> 0:09:20.840 so many people allowed him because of that. Governor Rabbit 0:09:20.920 --> 0:09:24.520 made his comments at Eagle Pass border crossing yesterday. Washington 0:09:24.559 --> 0:09:27.520 State health officials in Seattle and King County say they 0:09:27.559 --> 0:09:31.440 are investigating a presumptive case of monkey Box. Global News 0:09:31.440 --> 0:09:34.319 twenty four hours a day on air and on Bloomberg Quicktake, 0:09:34.600 --> 0:09:37.719 powered by more than journalists and analysts more than a 0:09:37.800 --> 0:09:41.120 hundred twenty countries. Michael barn This is Bloomberg, John, Michael, 0:09:41.160 --> 0:09:48.559 thank you five nine on Wall Street hand Let's stand 0:09:48.600 --> 0:09:52.240 for the Bloomberg Sports Update. There's Scott Sedinberg. Good morning John. 0:09:52.280 --> 0:09:54.839 The Yankees fell to the Orioles six four, suffering their 0:09:54.840 --> 0:09:58.520 season high third straight loss. Promonias hit a tie breaking 0:09:58.600 --> 0:10:00.679 home run in the sixth inning off Garrett Cole, and 0:10:00.720 --> 0:10:03.719 the O's overcame two. Aaron Judge Homers to pull off 0:10:03.760 --> 0:10:06.480 the upset. For Coals, he allowed five runs on seven 0:10:06.559 --> 0:10:09.640 hits and eight innings, taking his first loss of the season. 0:10:09.720 --> 0:10:12.480 There's manager Aaron Boone. A weird night tonight, where Garrett 0:10:12.520 --> 0:10:15.280 was really for the most part dominant, you know, except 0:10:15.320 --> 0:10:17.880 that strain there for five to seven minutes in that 0:10:17.960 --> 0:10:21.160 one inning. Meanwhile, Yankees third baseman Josh Donaldson has been 0:10:21.160 --> 0:10:24.200 suspended one game by Major League Baseball after referring to 0:10:24.240 --> 0:10:28.920 White Sox shortstop Tim Anderson as Jackie, referencing Jackie Robinson. 0:10:29.080 --> 0:10:32.240 Donaldson is appealing the suspension, saying the reference stems from 0:10:32.320 --> 0:10:36.000 comments made by Anderson back in the interview when he 0:10:36.040 --> 0:10:40.040 compared himself to Robinson. Donaldson was placed on the COVID 0:10:40.200 --> 0:10:43.800 nineteen injury list yesterday prior to the game. The Mets 0:10:43.880 --> 0:10:46.280 last night beat the Giants thirteen three. Pete Alonso hit 0:10:46.280 --> 0:10:48.640 the three run homer. Jeff McNeil and Mark Canna also 0:10:48.720 --> 0:10:50.760 went deep as the Mets won for the fifth time 0:10:50.800 --> 0:10:53.680 in six games. David Peterson picked up the win, allowing 0:10:53.760 --> 0:10:56.720 two runs in six innings. Tonight, the Rangers looked even 0:10:56.800 --> 0:10:58.920 up their series with the Hurricanes at two games. A 0:10:59.000 --> 0:11:01.960 piece puck drop from the garden at seven o'clock tennis 0:11:01.960 --> 0:11:04.439 at the French Open, several top players are out, including 0:11:04.480 --> 0:11:08.040 defending women's champ Barbara Kretchikova, the women's number to see, 0:11:08.080 --> 0:11:12.640 losing to French teenager Diane Perry. Elsewhere, Naomi Osaka is out, 0:11:12.679 --> 0:11:16.400 losing to Amanda Anissamova. Osaka says she's not a percent 0:11:16.480 --> 0:11:20.520 sure show compete at Wimbledon. I'm Scott Edinburg with Bloomberg Sports. 0:11:20.640 --> 0:11:23.560 John all right, thanks Scott, and ahead of the cash 0:11:23.600 --> 0:11:26.040 Oven on Wall Street. We have futures in the rad 0:11:26.120 --> 0:11:29.920 right now. Down futures three hundred and thirty one point slower, 0:11:30.040 --> 0:11:32.760 that is down just over one percent this morning, the 0:11:33.000 --> 0:11:36.080 SNP E mini futures fifty eight points lower, that's down 0:11:36.240 --> 0:11:38.560 one and a half percent in the early going, and 0:11:38.600 --> 0:11:41.720 the nasdank futures two hundred and forty seven points lower, 0:11:42.080 --> 0:11:45.480 that is down two percent. Most actively traded stock of 0:11:45.520 --> 0:11:48.800 the pre market shares of Snap down just about twenty 0:11:49.040 --> 0:11:52.719 nine percent after cutting their forecast. And as we look 0:11:52.720 --> 0:11:56.840 at transuries this morning, the benchmire ten year yield two 0:11:56.840 --> 0:12:00.480 point eight zero percent, that is down five bases points. 0:12:01.000 --> 0:12:08.120 You're listening the Bloomberg tay break recession for Europe forget it. 0:12:08.240 --> 0:12:12.360 Francine Lacroix. Her chat with Christine Legarde is just ahead 0:12:12.400 --> 0:12:22.480 of must listen from the World Economic Forum. This is Daybreak, Markets, 0:12:22.559 --> 0:12:25.640 headlines and breaking news twenty four hours a day at 0:12:25.679 --> 0:12:29.079 Bloomberg dot Com, the Bloomberg Business at and at Bloomberg 0:12:29.160 --> 0:12:38.080 Quick Tape. This is a Bloomberg Business Flash and I'm 0:12:38.160 --> 0:12:41.000 Karen Moscow. A profit warning from Snap A weighing on 0:12:41.040 --> 0:12:44.280 technology shares. This morning, NASTACK futures are down two hundred 0:12:44.360 --> 0:12:47.280 forty seven points, down more than two per cent, SMP 0:12:47.440 --> 0:12:50.960 futures down fifty seven down, futures down three D ten 0:12:51.000 --> 0:12:53.640 year treasury up thirteen thirty seconds, YELD two point eight 0:12:53.720 --> 0:12:56.080 zero percent, and they yield on the two year two 0:12:56.080 --> 0:12:59.200 point five seven percent. That's a Bloomberg business flash. Now 0:12:59.200 --> 0:13:01.400 here's Michael Barr with more on what's going on around 0:13:01.400 --> 0:13:04.360 the world. Michael, good morning, Good morning Karen. President Joe 0:13:04.360 --> 0:13:07.680 Biden has Warren Fellow leaders of the informal Indo Pacific 0:13:07.679 --> 0:13:11.400 Security coalition known as the Quad. They are navigating through 0:13:11.440 --> 0:13:14.720 a dark hour and our shared history as Russia continues 0:13:15.040 --> 0:13:18.640 a brutal war on Ukraine. Biden called for greater Indo 0:13:18.679 --> 0:13:21.880 Pacific leadership and the effort to stop Russian aggression at 0:13:21.880 --> 0:13:24.920 the start of the summit today with the leaders of Australia, 0:13:25.040 --> 0:13:28.640 India and Japan. In the NBA Playoffs, the Celtics beat 0:13:28.679 --> 0:13:31.560 the Heat even the series of two games apiece baseball, 0:13:31.600 --> 0:13:34.400 the Yankees lost to the Orioles, the Mets beat the Giants, 0:13:34.480 --> 0:13:37.480 the Nationals and A's lost. Global News twenty four hours 0:13:37.480 --> 0:13:40.600 a day on air and on Bloomberg Quicktake, powered by 0:13:40.640 --> 0:13:43.240 more than twenty seven undred journalists and analysts. More than 0:13:43.280 --> 0:13:46.520 a hundred twenty countries. Michael Barr and this is Bloomberg, 0:13:46.600 --> 0:13:49.280 John Michael five nineteen on Wall Street Line from the 0:13:49.320 --> 0:13:54.120 Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. Christie Lagard 0:13:54.200 --> 0:13:57.160 says the European Central Bank won't be rushed into withdrawing 0:13:57.280 --> 0:14:00.959 monetary stimulus as officials act to contain and inflation running 0:14:01.000 --> 0:14:04.160 it almost four times, there are two percent target. The 0:14:04.240 --> 0:14:07.640 EASYB president sat down for an interview with Bloomberg's Francine 0:14:07.679 --> 0:14:11.960 Laquix at the World Economic Forum in Dabo's conversation comes 0:14:12.040 --> 0:14:14.480 just a day after the guard said higher interest rates 0:14:14.480 --> 0:14:17.000 are coming in July. Let's see what she had to 0:14:17.080 --> 0:14:19.640 say about that and listen to that interview right now. 0:14:20.320 --> 0:14:22.840 I think it was it was good to set out 0:14:22.880 --> 0:14:25.640 the terms under which we are going to turn the 0:14:25.720 --> 0:14:28.440 corner of negative interest rates. So was this more a 0:14:28.480 --> 0:14:31.200 message to the markets or is it more to a 0:14:31.280 --> 0:14:33.720 message to the members of the Governing Council. It was 0:14:33.760 --> 0:14:36.920 a message to anybody who is interested in monetary policy, really, 0:14:37.040 --> 0:14:40.720 because we have been going through eight years of negative 0:14:40.760 --> 0:14:46.080 interest rates, special accommodation, and we are clearly now at 0:14:46.120 --> 0:14:48.960 the turning point. And I thought it was appropriate at 0:14:49.000 --> 0:14:52.920 this point to explain what the journey is, what the 0:14:53.000 --> 0:14:56.320 direction of travel is, what the destination is in the 0:14:56.760 --> 0:15:00.480 relatively short term, and what is our aimpoint it as well. 0:15:01.120 --> 0:15:03.560 If you're hiking, you want to hike, hit wait for July. 0:15:05.280 --> 0:15:09.080 We are not in in a panic mode, and we've 0:15:09.120 --> 0:15:13.000 started that journey thinking about it very carefully back in December, 0:15:13.160 --> 0:15:15.520 with steps along the way, and we are now at 0:15:15.520 --> 0:15:18.600 a stage where there is every certainty that we will 0:15:18.640 --> 0:15:22.920 stop let us said purchases very early in in July, 0:15:23.680 --> 0:15:27.080 deciding so in June, which will then clear the way 0:15:27.600 --> 0:15:31.520 for a rate hikes that will come reasonably shortly after that. 0:15:32.360 --> 0:15:34.560 Is there a danger that, because of the timetable, which 0:15:34.600 --> 0:15:36.560 of course you know, goes to the credibility of the ECB, 0:15:36.760 --> 0:15:39.320 which is we do que first to reunwind that and 0:15:39.400 --> 0:15:42.000 then going to interest rate, that you miss a drive 0:15:42.080 --> 0:15:45.080 of inflation. I don't think so. I think that's you know, 0:15:45.360 --> 0:15:50.600 anybody who's very careful about analyzing really realizes that we 0:15:50.800 --> 0:15:53.440 are in a situation which is vastly different from that 0:15:53.600 --> 0:15:58.680 of the United States, and we are actually perfectly on 0:15:58.880 --> 0:16:01.200 time and not behind in the curve. I think there 0:16:01.280 --> 0:16:06.000 is also great value in being steady predictable, And we 0:16:06.200 --> 0:16:09.560 said all along in our forward guidance that we would 0:16:09.880 --> 0:16:14.120 stop quantitative easing in terms of net asset purchases because 0:16:14.160 --> 0:16:17.960 we will continue reinvesting as as we go, and that 0:16:18.160 --> 0:16:20.880 then we look at at the interest rate, which will 0:16:20.960 --> 0:16:24.240 be the main tool further on. And then how difficult 0:16:24.320 --> 0:16:26.360 is it to actually give so much forward guidance, I 0:16:26.400 --> 0:16:29.120 guess as a message also to markets when you don't 0:16:29.160 --> 0:16:31.480 really know how Russia reacts. We could have a gas embargo, 0:16:31.560 --> 0:16:33.800 we could have an oil embargo that would really make 0:16:33.880 --> 0:16:36.920 the inflation ratiot up. You know. Our mission is to 0:16:37.440 --> 0:16:43.000 um guarantee procure reinforced price stability defined as the two 0:16:43.040 --> 0:16:47.200 percent inflation. So we might be regarded as a bit 0:16:47.440 --> 0:16:49.640 stubborn in that respect, but that's the job we have 0:16:49.760 --> 0:16:52.480 to do. But of course we are data dependent. We 0:16:52.600 --> 0:16:55.000 look at developments, we look at what it's going to 0:16:55.080 --> 0:16:59.560 influence inflation and inflation expectations. So we look very carefully 0:16:59.640 --> 0:17:03.240 at wages at the moment wage negotiations, we're looking very 0:17:03.280 --> 0:17:07.119 carefully at all inflation expectations, and we believe that it 0:17:07.240 --> 0:17:11.480 is time to act as indicated under what circumstances do 0:17:11.640 --> 0:17:15.640 you think a fifty basis point hike would be warranted. Look, 0:17:15.800 --> 0:17:19.560 what I said is we are at the turning point. 0:17:20.359 --> 0:17:25.240 We have all the components in place for that. We 0:17:25.359 --> 0:17:28.159 are turning our back to negative interest rates. We are 0:17:28.280 --> 0:17:33.200 moving very likely into positive territory at the end of 0:17:33.280 --> 0:17:36.680 the third quarter. And then of course we will calibrate, 0:17:36.800 --> 0:17:40.080 we will establish exactly by how much we want to 0:17:40.160 --> 0:17:42.960 do that. When you talk about of course no longer 0:17:43.080 --> 0:17:45.640 negative rates, has a market quite understood that this could 0:17:45.680 --> 0:17:49.360 mean also positive rates? Well, you know, when you're out 0:17:49.440 --> 0:17:51.879 of negative you can be at zero, you can be 0:17:52.000 --> 0:17:55.080 slightly above zero. This is something that we will determine 0:17:55.480 --> 0:17:58.840 on the basis of of our projections, on the basis 0:17:58.960 --> 0:18:02.280 of our forward guidance. I think that there are good 0:18:02.359 --> 0:18:05.320 reasons to believe that all three conditions will be satisfied 0:18:05.840 --> 0:18:09.719 in June and further on during the summer. Where are 0:18:09.760 --> 0:18:11.720 we in the third quarter? Could we be you know 0:18:11.800 --> 0:18:13.840 above your in terms of interest rates? Is that kind 0:18:13.880 --> 0:18:16.879 of research acts? Is what I'm saying. I stick to 0:18:17.720 --> 0:18:20.920 We will be out of negative interest rates most likely 0:18:21.560 --> 0:18:23.639 before the end of the third quarter. How do you 0:18:23.640 --> 0:18:25.760 see inflation developing from now. I mean, again, there's so 0:18:25.880 --> 0:18:29.359 many unknowns because of the war. You know, there are 0:18:29.440 --> 0:18:32.840 lots of forces um and and some of them, you know, 0:18:33.560 --> 0:18:37.440 counteracting against each other. You have the war, which in 0:18:37.600 --> 0:18:40.240 and of itself is an absolute drummer, and as massive 0:18:40.280 --> 0:18:44.119 economic impacts, not just in Ukraine and eventually in Russia, 0:18:44.160 --> 0:18:46.680 but for the rest of the world. We have energy 0:18:46.760 --> 0:18:50.560 prices which have gone up significantly and represents a big 0:18:50.640 --> 0:18:54.120 chunk of inflation. We have food prices. I mean, there's 0:18:54.160 --> 0:18:56.680 a whole series of things that are weighing on growth 0:18:57.400 --> 0:19:00.600 down and pushing inflation up. But on the other side 0:19:00.640 --> 0:19:03.280 you also have forces. You know, me, I tend to 0:19:03.320 --> 0:19:05.359 be a positive person, and I tried to look at 0:19:05.440 --> 0:19:11.600 what is likely to counteract those very significant shocks. And 0:19:12.200 --> 0:19:15.720 that was the ECB president Christine Lagarin, speaking with Bloomberg's 0:19:15.720 --> 0:19:19.680 Francie Laclaude from the World Economic Forum in Davos, Switzerland. 0:19:20.160 --> 0:19:23.120 Cash more of the interview online at bloomberg dot com. 0:19:23.720 --> 0:19:25.880 I was looking to the euro right now, euro dollar 0:19:26.119 --> 0:19:29.800 one oh seven seventeen and head of the cash up 0:19:29.840 --> 0:19:32.080 and on Wall Street down futures right now three hundred 0:19:32.160 --> 0:19:35.480 and sixteen points lower, that is down one percent. The 0:19:35.680 --> 0:19:38.800 smp E Mini futures fifty six points lower, one point 0:19:38.880 --> 0:19:42.040 four percent lower, and that ASDAG futures down two hundred 0:19:42.080 --> 0:19:45.240 forty two points, that is down two percent. One of 0:19:45.280 --> 0:19:49.240 the most actively tradded shares plunge this morning for shares 0:19:49.520 --> 0:19:52.640 of SNAP ten year yield in the US at two 0:19:52.720 --> 0:19:57.560 point eight zero six, that's down four basis points. You're 0:19:57.640 --> 0:20:08.240 listening to Bloomberg Daybreak and the Bloomberg Weather from a 0:20:08.320 --> 0:20:12.320 meteorologists Rob Caroline. Cloudy today, passing shower, sprinkle possible this morning. 0:20:12.640 --> 0:20:16.400 High temperature around seventy degrees. Tonight mostly cloudy, the low 0:20:16.480 --> 0:20:24.240 temperatures in the mid fifties. Broadcasting live from the Bloomberg 0:20:24.320 --> 0:20:28.040 Interacted Broker's studio in New York, Bloomberg in Living Freedom, 0:20:28.200 --> 0:20:32.320 to Washington, d C. Bloomberg to Boston, Bloomberg one O 0:20:32.560 --> 0:20:35.560 six one to San Francisco, Bloomberg No. Sixty to the 0:20:35.640 --> 0:20:39.119 Country Sirius XM Chado one nine, and around the globe, 0:20:39.200 --> 0:20:42.680 the Bloomberg Business app and Bloomberg Radio dot Com. This 0:20:43.160 --> 0:20:51.480 is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. 0:20:51.480 --> 0:20:54.040 I'm John Tucker and I'm Karen Moscow. We are just 0:20:54.160 --> 0:20:56.600 about four hours away from the open of US trading. 0:20:56.640 --> 0:20:58.000 Let's get you up to date on the news you 0:20:58.080 --> 0:21:00.959 need to know. At this hour, futures are declining following 0:21:01.040 --> 0:21:04.200 yesterday's rally to start the trading wake. CEO of Goldman 0:21:04.240 --> 0:21:07.719 sax International, Richard nods says he expects swings and markets 0:21:07.760 --> 0:21:11.160 to continue as the FED attempts to soft landing. Everybody 0:21:11.240 --> 0:21:14.080 wants to talk about procession. Yes, there's a lot of 0:21:14.160 --> 0:21:16.080 data coming out and if you just think what we've 0:21:16.160 --> 0:21:18.879 come through in the last two years, the pandemic, in 0:21:19.000 --> 0:21:23.000 the massive interventions, how do we find a steady path forward. 0:21:23.480 --> 0:21:27.640 It's not surprising this volatility brings supplying them on into 0:21:27.720 --> 0:21:29.919 balance again. This is going to be a tricky journey. 0:21:30.160 --> 0:21:33.840 Goldman sax International CEO Richard Nodds spoke with Bloomberg's Francy 0:21:33.880 --> 0:21:36.679 in Laqua at the World Economic Forum in Davos. We'll 0:21:36.720 --> 0:21:39.520 speak live with the Bank of America CEO Brian moynihan 0:21:39.600 --> 0:21:42.560 and Davos later this morning. Tune into Bloomberg Radio and 0:21:42.600 --> 0:21:45.399 Television at eleven am Wall Street time to hear the 0:21:45.480 --> 0:21:48.840 full interview and today's market. During and being influenced by 0:21:48.960 --> 0:21:53.000 disappointing earnings from Snap. Bloomberg's Reneedly Young joins us Live 0:21:53.080 --> 0:21:55.520 with details. We need a good morning, Good morning John. 0:21:55.640 --> 0:21:59.159 When markets closed yesterday, Snap warned that it would miss 0:21:59.320 --> 0:22:03.240 second quarter profited revenue forecasts and needs to slow hiring. 0:22:03.760 --> 0:22:07.760 CEO Evan Spiegel cites the economic environment. If that sent 0:22:07.880 --> 0:22:11.479 shares tumbling around thirty percent, which appears to be holding 0:22:11.560 --> 0:22:14.680 in pre market trading. If that loss holds, it would 0:22:14.680 --> 0:22:18.080 be Snap's biggest daily drop on record, making the company 0:22:18.160 --> 0:22:22.040 lose some eleven billion dollars in market value. Snaps also 0:22:22.160 --> 0:22:26.840 dragging down other tech names in pre market trading, Twitter, Meta, Pinterest, 0:22:26.960 --> 0:22:30.240 and Alphabet are all lower. Live in New York, I'm 0:22:30.280 --> 0:22:32.440 rened a Young Bloomberg day break, all right, we need 0:22:32.480 --> 0:22:34.560 a thanks On the flip side. Shares a zoom or 0:22:34.640 --> 0:22:36.840 up about six and a half percent in early trading 0:22:36.880 --> 0:22:39.959 after projected sales and profit for the current quarter topped 0:22:40.000 --> 0:22:43.600 Wall Street estimates. And turning to monetary policy, Kansas City 0:22:43.640 --> 0:22:47.040 Fed President Aster George expands the funder reserve to raise 0:22:47.080 --> 0:22:50.520 the industrates to two percent by August. She says tightening 0:22:50.600 --> 0:22:54.240 afterwards will be guided by how fast inflation cools off 0:22:54.520 --> 0:22:57.320 well overseas, John, President Biden is wrapping up his trip 0:22:57.400 --> 0:23:00.560 to Asia. He urged fellow Indo Pacific leaders to make 0:23:00.600 --> 0:23:04.160 a greater effort to stop Vladimir Putin's aggression in Ukraine. 0:23:04.440 --> 0:23:06.680 We're in the Pacific cars, I said, We're gonna stand 0:23:06.720 --> 0:23:09.440 with you, are close Democratic partners, and we're gonna stay 0:23:09.600 --> 0:23:13.040