Speaker 1: Live from the Bloomberg Interactor Berger Studios is Bloomberg Daybreak
Speaker 1: for a Tuesday. Coming up this hour, US teaches Sankas,
Speaker 1: Earnings from Snaps, and big Tech lower. Christine mc guard
Speaker 1: weighs in on monetary policy, saying she won't rush into
Speaker 1: a drawing stimulus US primaries and focus again as contest
Speaker 1: that Georgia could show Donald Trump's influence on the GOP.
Speaker 1: The gunman in a deadly subway shooting in New York
Speaker 1: remains on the loopse P What's Texas? Governor Rabbits says
Speaker 1: Moore is needed to stop the flow of migrants. I'm
Speaker 1: Michael Blarer. More ahead, Tom Scott Sedberg. The Yankees dropped
Speaker 1: their third scrape. The Mets win big out West. I'll
Speaker 1: have that in more coming up in sports. That's All's
Speaker 1: training ahead on Bloomberg Daybreak on Bloomberg. He Live in
Speaker 1: Free on New York, Bloomberg one, Washington, d C, Bloomberg
Speaker 1: one O six one, Boston, Bloomberg nine sixties and Francisco
Speaker 1: Syrius XM one nineteen and around the world. Old on
Speaker 1: Bloomberg Radio dot Com and via the Bloomberg Business App.
Speaker 1: Good Morning on John Tucker and I'm Karen Moscow. US
Speaker 1: DOT Index futures are lower this morning. We're coming up
Speaker 1: to five o one on Wall Street, and we check
Speaker 1: the markets every fifteen minutes throughout the trading day. On
Speaker 1: bloomberg SMP future is down fifty eight points, DAL Future
Speaker 1: is down three hundred thirty and as DAG futures down
Speaker 1: two hundred forty eight. The decks in Germany's down one
Speaker 1: point two percent. Ten year treasury of fourteen thirty seconds
Speaker 1: yield two point eight zero percent. They yield on the
Speaker 1: two year two point five seven percent. Nim X screwn
Speaker 1: oils down four tens per cent, or forty nine cents
Speaker 1: at a hundred nine dollars eighty one cents a barrel.
Speaker 1: Co max schooled up four ten percent or seven dollars
Speaker 1: twenty cents at eighteen sixty one twenty announced and Bitcoin
Speaker 1: this morning at twenty nine thousand, one fifty dollars. John
Speaker 1: currently decline in futures follows yesterday's rally to start the week,
Speaker 1: the Dow leading the games, advancing two percent. It looks
Speaker 1: like we still haven't hit bottom, at least according to
Speaker 1: David's Stubbs. The global head of process at thematic strategy
Speaker 1: at JP Morgan Private Bank. What the market has been
Speaker 1: fearing in the last couple of weeks is that the
Speaker 1: growth outlook maybe weakening, and therefore earnings trends going forward
Speaker 1: may also start to weaken. We'll see this this week.
Speaker 1: This rody can absolutely continue from here because of where
Speaker 1: however so old markets were. If the data is is supportive,
Speaker 1: But that doesn't mean that we've met we've reached an
Speaker 1: important bottom in the markets now. JP Morgan's David Stubbs
Speaker 1: says he needs to see easy inflation and clarity about
Speaker 1: where interest rates will peak. That, he says good signal
Speaker 1: a bottom to the stock market. Well, John, Today's market
Speaker 1: direction is being influenced by disappointing earnings from Snap, and
Speaker 1: we get the details live from Bloomberg's Rnedy Yell and
Speaker 1: Good morning Nita, Good morning Karen. When markets closed yesterday,
Speaker 1: Snap warned that it would miss record second quarter profit
Speaker 1: and revenue forecast it needs to slow hiring. CEO Evan
Speaker 1: Spiegel cites the economic environment and that sent shares tumbling
Speaker 1: down around which appears to holding in pre market trading.
Speaker 1: If that loss holds, it would be Snap's biggest daily
Speaker 1: drop on record, making the company lose some eleven billion
Speaker 1: dollars in market value. Snaps also dragging down other tech
Speaker 1: names in pre market trading, Twitter, Meta, Pinterest, and Alphabet
Speaker 1: are all lower and they may collectively see a one
Speaker 1: hundred billion dollar wipeout. Live in New York, I'm renit
Speaker 1: a young Bloomberg day break, real need to thanks on
Speaker 1: the flip side. Shares of Zoom up almost six percent
Speaker 1: in early trading, the company signaling it can expand beyond
Speaker 1: its consumer friendly video software that made it a pandemic Darling,
Speaker 1: Zoom rejected sales and profit for the current quarter that
Speaker 1: topped estimates. While turning to the economy now, John Kansas
Speaker 1: City Fed President Esther George expects the Central Bank to
Speaker 1: raise interest rates to two percent by August. After that,
Speaker 1: she says more tightening will be guided by how fast
Speaker 1: inflation cools off. George has been known as a longtime
Speaker 1: policy hawk who were recently moved to the center and
Speaker 1: care monetary policy a focus in Europe. This morning, a
Speaker 1: day after Christine Legard said higher interest rates are coming
Speaker 1: in July, the ECB president sent down for her first
Speaker 1: interview at the World Economic Format Davos, and she spoke
Speaker 1: with Bloomberg's Francy and Laquix. We are at the turning point.
Speaker 1: We have all the components in place for that. We
Speaker 1: are turning our back to negative interest rates. We are
Speaker 1: moving very likely into positive territory at the end of
Speaker 1: the third quarter, and then, of course we will calibrate.
Speaker 1: We will stop this exactly by how much we want
Speaker 1: to do that. Christine Legard also rejecting the idea that
Speaker 1: the Euro Area is headed for recession. Stay tuned for
Speaker 1: more of our conversation with the ECB president coming up shortly,
Speaker 1: and we also invite you to join us this morning
Speaker 1: where we continue our global coverage from Davos. We speak
Speaker 1: live with Bank of America CEO Brian moynihan. Conversations coming
Speaker 1: up live at eleven am moll Street Time on both
Speaker 1: Bloomberg Radio and television. And Journey to Politics Now President
Speaker 1: by and wrap ing up his trip to Asia. He
Speaker 1: spoke earlier today at the opening of the leaders Some
Speaker 1: of in Tokyo and address the ongoing war in Ukraine.
Speaker 1: We're navigating in a dark hour in our shared history.
Speaker 1: The Russian brutal and unprovoked war against Ukraine has triggered
Speaker 1: a humanitarian catastrophe and innocent civilians have killed in the
Speaker 1: streets and millions of refugees are internally displaced, as well
Speaker 1: as exile, President urging Indo Pacific leaders, including India's Naredra Modi,
Speaker 1: to make a greater effort to stop Vladimir Putin's aggression
Speaker 1: and John The discussion of tariffs on China has also
Speaker 1: been a focal point of President Biden's trip to Asia.
Speaker 1: Biden says he will review Trump Aaron levies as consumer
Speaker 1: prices surge. We got up a trade representative, Catherine ty
Speaker 1: who also awaited on the matter. With respect of the tarroiffs,
Speaker 1: our approach, as with everything in this relationship, is to
Speaker 1: be strategic. We have to keep our eye on the
Speaker 1: ball in terms of how to effectively realign the US
Speaker 1: China trade and economic relationship. Trade Representative Catherine Tye would
Speaker 1: not say whether the administration would remove tariffs on China
Speaker 1: or give a time frame for making a decision. And
Speaker 1: Karen back here in the US today marks another test
Speaker 1: of Donald Trump's influence on Republican voters this primary season,
Speaker 1: and Bloomberg's Joe Matthew tells us all eyes are on voters.
Speaker 1: In Georgia, Trump's endorsement of former Senator David Purdue and
Speaker 1: the Republican gubernatorial primary has failed to make a serious
Speaker 1: threat to Governor Brian Kemp, who is currently leading Perdue
Speaker 1: by more than twenty percentage points. The incumbent being supported
Speaker 1: by establishment Republicans, including former Vice President Mike Pence. The
Speaker 1: outcome of this race and another for Secretary of State
Speaker 1: is considered personal for Trump after Georgia's Republican leaders did
Speaker 1: not overturn the election. One bright spot for Trump has
Speaker 1: picked for Senate football legend herschel Walker, widely expected to
Speaker 1: win his primary. Joe, Matthew Bloomberg, Daybreak, Sorry Joe, thank you.
Speaker 1: Futures this morning are or S and P futures down
Speaker 1: fifty nine points down. Futures down three hundred thirty four
Speaker 1: and nastagg futures are down two d fifty. That's down
Speaker 1: more than two ten year treasury of fourteen thirty seconds.
Speaker 1: You have two point seven nine percent straight to had
Speaker 1: your latest local headlines plus a check of sports, and
Speaker 1: this is Bloomberg, right. Thanks. Karen five of Wall Street
Speaker 1: had time to bring in Michael Barr with more on
Speaker 1: what else is going on to New York and around
Speaker 1: the world. Mayor Eric Adams john says investigators of a
Speaker 1: fatal shooting on a New York subway train a half
Speaker 1: you leads. Police say forty eight year old Daniel Enriquez
Speaker 1: was killed without provocation, the killer still on the loose.
Speaker 1: Adams said that the shooting was unimaginable and the worst nightmare.
Speaker 1: I have to make sure the city is safe and
Speaker 1: I want that obligation. I thank god I'm the mayor
Speaker 1: right now and not those that don't understand the urgency
Speaker 1: of this moment. Mayor Adams says there were no police
Speaker 1: officers on the train car where the shooting occurred. The
Speaker 1: NYPD says the second arrest was announced in the deadly
Speaker 1: shooting of an eleven year old girl last week in
Speaker 1: the Bronx. Authorities say and alleged accomplice, eighteen year old
Speaker 1: Omar Bojang, turned himself in. He's accused of driving the
Speaker 1: scooter that a fifteen year old was allegedly riding on
Speaker 1: when he opened fire. The intended target is believed to
Speaker 1: have been another team who was not hit, but instead
Speaker 1: a bullet struck and killed eleven year old Karatay. Bronx
Speaker 1: District Attorney Darcel Clark spoke outside the girl's funeral, eleven
Speaker 1: year old, you know, can't even be outside. You know,
Speaker 1: she's getting her fingernails done and just you know, without knowing,
Speaker 1: bullets are flying five o'clock in the afternoon. Incomprehensible. But
Speaker 1: this is what we've been dealing with in the Bronx DA,
Speaker 1: Darsel Clark. Texas Governor Greg Abbott was at the US
Speaker 1: southern border where he praised the continuation of an immigration
Speaker 1: policy known as Title forty two. The pandemic era policy
Speaker 1: allows a fish us to turn away migrants at the border.
Speaker 1: President Biden trying to have Title forty two lifted, but
Speaker 1: the Governor Rabbit praise the federal judges ruling that it
Speaker 1: must remain in place for now. The Biden administration seems
Speaker 1: to be letting him people whether they're crossing through the
Speaker 1: port of entry or across the river. And there's been
Speaker 1: so many people allowed him because of that. Governor Rabbit
Speaker 1: made his comments at Eagle Pass border crossing yesterday. Washington
Speaker 1: State health officials in Seattle and King County say they
Speaker 1: are investigating a presumptive case of monkey Box. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than journalists and analysts more than a
Speaker 1: hundred twenty countries. Michael barn This is Bloomberg, John, Michael,
Speaker 1: thank you five nine on Wall Street hand Let's stand
Speaker 1: for the Bloomberg Sports Update. There's Scott Sedinberg. Good morning John.
Speaker 1: The Yankees fell to the Orioles six four, suffering their
Speaker 1: season high third straight loss. Promonias hit a tie breaking
Speaker 1: home run in the sixth inning off Garrett Cole, and
Speaker 1: the O's overcame two. Aaron Judge Homers to pull off
Speaker 1: the upset. For Coals, he allowed five runs on seven
Speaker 1: hits and eight innings, taking his first loss of the season.
Speaker 1: There's manager Aaron Boone. A weird night tonight, where Garrett
Speaker 1: was really for the most part dominant, you know, except
Speaker 1: that strain there for five to seven minutes in that
Speaker 1: one inning. Meanwhile, Yankees third baseman Josh Donaldson has been
Speaker 1: suspended one game by Major League Baseball after referring to
Speaker 1: White Sox shortstop Tim Anderson as Jackie, referencing Jackie Robinson.
Speaker 1: Donaldson is appealing the suspension, saying the reference stems from
Speaker 1: comments made by Anderson back in the interview when he
Speaker 1: compared himself to Robinson. Donaldson was placed on the COVID
Speaker 1: nineteen injury list yesterday prior to the game. The Mets
Speaker 1: last night beat the Giants thirteen three. Pete Alonso hit
Speaker 1: the three run homer. Jeff McNeil and Mark Canna also
Speaker 1: went deep as the Mets won for the fifth time
Speaker 1: in six games. David Peterson picked up the win, allowing
Speaker 1: two runs in six innings. Tonight, the Rangers looked even
Speaker 1: up their series with the Hurricanes at two games. A
Speaker 1: piece puck drop from the garden at seven o'clock tennis
Speaker 1: at the French Open, several top players are out, including
Speaker 1: defending women's champ Barbara Kretchikova, the women's number to see,
Speaker 1: losing to French teenager Diane Perry. Elsewhere, Naomi Osaka is out,
Speaker 1: losing to Amanda Anissamova. Osaka says she's not a percent
Speaker 1: sure show compete at Wimbledon. I'm Scott Edinburg with Bloomberg Sports.
Speaker 1: John all right, thanks Scott, and ahead of the cash
Speaker 1: Oven on Wall Street. We have futures in the rad
Speaker 1: right now. Down futures three hundred and thirty one point slower,
Speaker 1: that is down just over one percent this morning, the
Speaker 1: SNP E mini futures fifty eight points lower, that's down
Speaker 1: one and a half percent in the early going, and
Speaker 1: the nasdank futures two hundred and forty seven points lower,
Speaker 1: that is down two percent. Most actively traded stock of
Speaker 1: the pre market shares of Snap down just about twenty
Speaker 1: nine percent after cutting their forecast. And as we look
Speaker 1: at transuries this morning, the benchmire ten year yield two
Speaker 1: point eight zero percent, that is down five bases points.
Speaker 1: You're listening the Bloomberg tay break recession for Europe forget it.
Speaker 1: Francine Lacroix. Her chat with Christine Legarde is just ahead
Speaker 1: of must listen from the World Economic Forum. This is Daybreak, Markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com, the Bloomberg Business at and at Bloomberg
Speaker 1: Quick Tape. This is a Bloomberg Business Flash and I'm
Speaker 1: Karen Moscow. A profit warning from Snap A weighing on
Speaker 1: technology shares. This morning, NASTACK futures are down two hundred
Speaker 1: forty seven points, down more than two per cent, SMP
Speaker 1: futures down fifty seven down, futures down three D ten
Speaker 1: year treasury up thirteen thirty seconds, YELD two point eight
Speaker 1: zero percent, and they yield on the two year two
Speaker 1: point five seven percent. That's a Bloomberg business flash. Now
Speaker 1: here's Michael Barr with more on what's going on around
Speaker 1: the world. Michael, good morning, Good morning Karen. President Joe
Speaker 1: Biden has Warren Fellow leaders of the informal Indo Pacific
Speaker 1: Security coalition known as the Quad. They are navigating through
Speaker 1: a dark hour and our shared history as Russia continues
Speaker 1: a brutal war on Ukraine. Biden called for greater Indo
Speaker 1: Pacific leadership and the effort to stop Russian aggression at
Speaker 1: the start of the summit today with the leaders of Australia,
Speaker 1: India and Japan. In the NBA Playoffs, the Celtics beat
Speaker 1: the Heat even the series of two games apiece baseball,
Speaker 1: the Yankees lost to the Orioles, the Mets beat the Giants,
Speaker 1: the Nationals and A's lost. Global News twenty four hours
Speaker 1: a day on air and on Bloomberg Quicktake, powered by
Speaker 1: more than twenty seven undred journalists and analysts. More than
Speaker 1: a hundred twenty countries. Michael Barr and this is Bloomberg,
Speaker 1: John Michael five nineteen on Wall Street Line from the
Speaker 1: Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. Christie Lagard
Speaker 1: says the European Central Bank won't be rushed into withdrawing
Speaker 1: monetary stimulus as officials act to contain and inflation running
Speaker 1: it almost four times, there are two percent target. The
Speaker 1: EASYB president sat down for an interview with Bloomberg's Francine
Speaker 1: Laquix at the World Economic Forum in Dabo's conversation comes
Speaker 1: just a day after the guard said higher interest rates
Speaker 1: are coming in July. Let's see what she had to
Speaker 1: say about that and listen to that interview right now.
Speaker 1: I think it was it was good to set out
Speaker 1: the terms under which we are going to turn the
Speaker 1: corner of negative interest rates. So was this more a
Speaker 1: message to the markets or is it more to a
Speaker 1: message to the members of the Governing Council. It was
Speaker 1: a message to anybody who is interested in monetary policy, really,
Speaker 1: because we have been going through eight years of negative
Speaker 1: interest rates, special accommodation, and we are clearly now at
Speaker 1: the turning point. And I thought it was appropriate at
Speaker 1: this point to explain what the journey is, what the
Speaker 1: direction of travel is, what the destination is in the
Speaker 1: relatively short term, and what is our aimpoint it as well.
Speaker 1: If you're hiking, you want to hike, hit wait for July.
Speaker 1: We are not in in a panic mode, and we've
Speaker 1: started that journey thinking about it very carefully back in December,
Speaker 1: with steps along the way, and we are now at
Speaker 1: a stage where there is every certainty that we will
Speaker 1: stop let us said purchases very early in in July,
Speaker 1: deciding so in June, which will then clear the way
Speaker 1: for a rate hikes that will come reasonably shortly after that.
Speaker 1: Is there a danger that, because of the timetable, which
Speaker 1: of course you know, goes to the credibility of the ECB,
Speaker 1: which is we do que first to reunwind that and
Speaker 1: then going to interest rate, that you miss a drive
Speaker 1: of inflation. I don't think so. I think that's you know,
Speaker 1: anybody who's very careful about analyzing really realizes that we
Speaker 1: are in a situation which is vastly different from that
Speaker 1: of the United States, and we are actually perfectly on
Speaker 1: time and not behind in the curve. I think there
Speaker 1: is also great value in being steady predictable, And we
Speaker 1: said all along in our forward guidance that we would
Speaker 1: stop quantitative easing in terms of net asset purchases because
Speaker 1: we will continue reinvesting as as we go, and that
Speaker 1: then we look at at the interest rate, which will
Speaker 1: be the main tool further on. And then how difficult
Speaker 1: is it to actually give so much forward guidance, I
Speaker 1: guess as a message also to markets when you don't
Speaker 1: really know how Russia reacts. We could have a gas embargo,
Speaker 1: we could have an oil embargo that would really make
Speaker 1: the inflation ratiot up. You know. Our mission is to
Speaker 1: um guarantee procure reinforced price stability defined as the two
Speaker 1: percent inflation. So we might be regarded as a bit
Speaker 1: stubborn in that respect, but that's the job we have
Speaker 1: to do. But of course we are data dependent. We
Speaker 1: look at developments, we look at what it's going to
Speaker 1: influence inflation and inflation expectations. So we look very carefully
Speaker 1: at wages at the moment wage negotiations, we're looking very
Speaker 1: carefully at all inflation expectations, and we believe that it
Speaker 1: is time to act as indicated under what circumstances do
Speaker 1: you think a fifty basis point hike would be warranted. Look,
Speaker 1: what I said is we are at the turning point.
Speaker 1: We have all the components in place for that. We
Speaker 1: are turning our back to negative interest rates. We are
Speaker 1: moving very likely into positive territory at the end of
Speaker 1: the third quarter. And then of course we will calibrate,
Speaker 1: we will establish exactly by how much we want to
Speaker 1: do that. When you talk about of course no longer
Speaker 1: negative rates, has a market quite understood that this could
Speaker 1: mean also positive rates? Well, you know, when you're out
Speaker 1: of negative you can be at zero, you can be
Speaker 1: slightly above zero. This is something that we will determine
Speaker 1: on the basis of of our projections, on the basis
Speaker 1: of our forward guidance. I think that there are good
Speaker 1: reasons to believe that all three conditions will be satisfied
Speaker 1: in June and further on during the summer. Where are
Speaker 1: we in the third quarter? Could we be you know
Speaker 1: above your in terms of interest rates? Is that kind
Speaker 1: of research acts? Is what I'm saying. I stick to
Speaker 1: We will be out of negative interest rates most likely
Speaker 1: before the end of the third quarter. How do you
Speaker 1: see inflation developing from now. I mean, again, there's so
Speaker 1: many unknowns because of the war. You know, there are
Speaker 1: lots of forces um and and some of them, you know,
Speaker 1: counteracting against each other. You have the war, which in
Speaker 1: and of itself is an absolute drummer, and as massive
Speaker 1: economic impacts, not just in Ukraine and eventually in Russia,
Speaker 1: but for the rest of the world. We have energy
Speaker 1: prices which have gone up significantly and represents a big
Speaker 1: chunk of inflation. We have food prices. I mean, there's
Speaker 1: a whole series of things that are weighing on growth
Speaker 1: down and pushing inflation up. But on the other side
Speaker 1: you also have forces. You know, me, I tend to
Speaker 1: be a positive person, and I tried to look at
Speaker 1: what is likely to counteract those very significant shocks. And
Speaker 1: that was the ECB president Christine Lagarin, speaking with Bloomberg's
Speaker 1: Francie Laclaude from the World Economic Forum in Davos, Switzerland.
Speaker 1: Cash more of the interview online at bloomberg dot com.
Speaker 1: I was looking to the euro right now, euro dollar
Speaker 1: one oh seven seventeen and head of the cash up
Speaker 1: and on Wall Street down futures right now three hundred
Speaker 1: and sixteen points lower, that is down one percent. The
Speaker 1: smp E Mini futures fifty six points lower, one point
Speaker 1: four percent lower, and that ASDAG futures down two hundred
Speaker 1: forty two points, that is down two percent. One of
Speaker 1: the most actively tradded shares plunge this morning for shares
Speaker 1: of SNAP ten year yield in the US at two
Speaker 1: point eight zero six, that's down four basis points. You're
Speaker 1: listening to Bloomberg Daybreak and the Bloomberg Weather from a
Speaker 1: meteorologists Rob Caroline. Cloudy today, passing shower, sprinkle possible this morning.
Speaker 1: High temperature around seventy degrees. Tonight mostly cloudy, the low
Speaker 1: temperatures in the mid fifties. Broadcasting live from the Bloomberg
Speaker 1: Interacted Broker's studio in New York, Bloomberg in Living Freedom,
Speaker 1: to Washington, d C. Bloomberg to Boston, Bloomberg one O
Speaker 1: six one to San Francisco, Bloomberg No. Sixty to the
Speaker 1: Country Sirius XM Chado one nine, and around the globe,
Speaker 1: the Bloomberg Business app and Bloomberg Radio dot Com. This
Speaker 1: is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning.
Speaker 1: I'm John Tucker and I'm Karen Moscow. We are just
Speaker 1: about four hours away from the open of US trading.
Speaker 1: Let's get you up to date on the news you
Speaker 1: need to know. At this hour, futures are declining following
Speaker 1: yesterday's rally to start the trading wake. CEO of Goldman
Speaker 1: sax International, Richard nods says he expects swings and markets
Speaker 1: to continue as the FED attempts to soft landing. Everybody
Speaker 1: wants to talk about procession. Yes, there's a lot of
Speaker 1: data coming out and if you just think what we've
Speaker 1: come through in the last two years, the pandemic, in
Speaker 1: the massive interventions, how do we find a steady path forward.
Speaker 1: It's not surprising this volatility brings supplying them on into
Speaker 1: balance again. This is going to be a tricky journey.
Speaker 1: Goldman sax International CEO Richard Nodds spoke with Bloomberg's Francy
Speaker 1: in Laqua at the World Economic Forum in Davos. We'll
Speaker 1: speak live with the Bank of America CEO Brian moynihan
Speaker 1: and Davos later this morning. Tune into Bloomberg Radio and
Speaker 1: Television at eleven am Wall Street time to hear the
Speaker 1: full interview and today's market. During and being influenced by
Speaker 1: disappointing earnings from Snap. Bloomberg's Reneedly Young joins us Live
Speaker 1: with details. We need a good morning, Good morning John.
Speaker 1: When markets closed yesterday, Snap warned that it would miss
Speaker 1: second quarter profited revenue forecasts and needs to slow hiring.
Speaker 1: CEO Evan Spiegel cites the economic environment. If that sent
Speaker 1: shares tumbling around thirty percent, which appears to be holding
Speaker 1: in pre market trading. If that loss holds, it would
Speaker 1: be Snap's biggest daily drop on record, making the company
Speaker 1: lose some eleven billion dollars in market value. Snaps also
Speaker 1: dragging down other tech names in pre market trading, Twitter, Meta, Pinterest,
Speaker 1: and Alphabet are all lower. Live in New York, I'm
Speaker 1: rened a Young Bloomberg day break, all right, we need
Speaker 1: a thanks On the flip side. Shares a zoom or
Speaker 1: up about six and a half percent in early trading
Speaker 1: after projected sales and profit for the current quarter topped
Speaker 1: Wall Street estimates. And turning to monetary policy, Kansas City
Speaker 1: Fed President Aster George expands the funder reserve to raise
Speaker 1: the industrates to two percent by August. She says tightening
Speaker 1: afterwards will be guided by how fast inflation cools off
Speaker 1: well overseas, John, President Biden is wrapping up his trip
Speaker 1: to Asia. He urged fellow Indo Pacific leaders to make
Speaker 1: a greater effort to stop Vladimir Putin's aggression in Ukraine.
Speaker 1: We're in the Pacific cars, I said, We're gonna stand
Speaker 1: with you, are close Democratic partners, and we're gonna stay
Speaker 1: for the shared values that and the shared vision we
Speaker 1: all have. President Biden also said he would review trunk
Speaker 1: era tariffs on China as consumer prices search and bank
Speaker 1: at the home. More primary elections today across several states.
Speaker 1: Key elections taking place in Georgia, Texas, Alabama, Minnesota, and Arkansas.
Speaker 1: And futures are lower This morning, straight ahead your latest
Speaker 1: local headlines, plus a check of sports. This is Bloomberg.
Speaker 1: Thanks three on Wall Street. Time to bring in Michael
Speaker 1: Barr with more what else is going on in New
Speaker 1: York end around the world. Thank you very much, John.
Speaker 1: Police continued to search for the gunmen and the fatal
Speaker 1: shooting of a man on a New York subway train.
Speaker 1: Mayor Adams says there were no police officers on the
Speaker 1: train car where the shooting occurred. Sunday, He says the
Speaker 1: city will evaluate how it is deploying officers across the
Speaker 1: sprawling subway system. Police say forty eight year old Daniel
Speaker 1: Intoriquez of Brooklyn was killed without provocation. Texas Republican Governor
Speaker 1: Greg Abbott is praising of federal judges ruling late Friday
Speaker 1: that keeps the COVID era immigration ordered Title forty two
Speaker 1: in place for now. Governor Rabbit toured an area beneath
Speaker 1: the Eagle Pass International border crossing in southwest Texas. He
Speaker 1: accused the Biden administration of not doing enough to stem
Speaker 1: the flow of illegal crossings at the border. We don't
Speaker 1: want communities like Eagle Pass to be overrun with large
Speaker 1: number of migrants who are milling around in the strees.
Speaker 1: Critics of Governor Abbot say Title forty two uses COVID
Speaker 1: as an excuse the block people who have a legal
Speaker 1: claim to enter the United States, like asylum seekers and refugees.
Speaker 1: Doctors in Washington State are the latest to announce they're
Speaker 1: treating a patient with a suspected case of monkey pocks,
Speaker 1: bringing the number of states investigating cases to five. Dr
Speaker 1: Jennifer McQuiston is the Deputy director of the CDC's Division
Speaker 1: of High Consequence Pathogens and Pathology. People can become infected
Speaker 1: with monkey pocks through close sustained skin to skin contact
Speaker 1: with someone who has an active rash, or through respiratory
Speaker 1: droplets in someone who has lesions in their mouths and
Speaker 1: they're around another person for an extended period of time.
Speaker 1: Dr McQuiston says most patients with monkey pox will recover
Speaker 1: on their own within two to four weeks of their
Speaker 1: first symptoms. Another shipment of baby formula is scheduled to
Speaker 1: arrive in Washington tomorrow. The head of the U s
Speaker 1: d a S has the formula shortage crisis could ease
Speaker 1: in the next thirty days. Global News twenty four hours
Speaker 1: a day on air and on Bloomberg quicks Egg, powered
Speaker 1: by more than twenty seven hundred journalists and analysts in
Speaker 1: more than a hundred twenty countries. I'm Michael lar and
Speaker 1: this is Bloomberg John Michael, thank you. He is now fine.
Speaker 1: Thirty six on All Street HAMUS. Time for the Bloomberg
Speaker 1: Sports up to aid. Here's Scott Sidenburg. Thanks John Garrett
Speaker 1: Cole allowed five runs on seven hits in eight innings
Speaker 1: as the Yankees fell to the Orioles six four, suffering
Speaker 1: their season high third straight loss. Aaron Judge Homard twice
Speaker 1: in defeat. Before the game, Yankees third baseman Josh Donaldson
Speaker 1: was suspended one game by Major League Baseball after referring
Speaker 1: to White Sox shortstop Tim Anderson is Jackie, referencing Jackie Robinson.
Speaker 1: Thoaldson is appealing the suspension, saying that the reference stems
Speaker 1: from comments made by Anderson back in the nine interview
Speaker 1: where he compared himself to Jackie Robinson. Thoalentson was placed
Speaker 1: on the COVID nineteen injury list yesterday prior to the
Speaker 1: loss against the Orioles. Elsewhere, the Mets with a big
Speaker 1: night in the Bay Area Cats over three tonight, and
Speaker 1: he launched was one a deep left center, headed back
Speaker 1: toward the wall. It's out of their Catamax. It back
Speaker 1: to back home runs McNeil and now cattle and his
Speaker 1: fourth of the air and it's nine to two. New
Speaker 1: York call on send why Pete Alonso Homard? As well
Speaker 1: as the Mets route the Giants thirteen three hockey tonight,
Speaker 1: the Rangers looked even up their series at two games
Speaker 1: apiece against the Hurricanes the Oilers take on the Flames
Speaker 1: in game five, they lead two games to one. Tennis
Speaker 1: at the French Open, several top players are out, including
Speaker 1: defending women's champ Barbara crazy Kova, the women's number two seed,
Speaker 1: losing to French teenager Diane Perry. Elsewhere in Naomi Osaka
Speaker 1: is out, losing to Amanda Anissimova. Osaka says she's not
Speaker 1: a dent, sure she'll compete at Wimbledon. I'm Scott Edinburg
Speaker 1: with Bloomberg Sports John far Times. Scott is now find
Speaker 1: thirty seven on Wall Street and that's time for the
Speaker 1: Trying State Business Report. For that, we're joined by Bloomberg's
Speaker 1: Ed Corey Well. Even before COVID nineteen hit, the state
Speaker 1: of New York was facing an outflow of taxpaying residents
Speaker 1: that they'd had an average annual net out migration of
Speaker 1: twenty eight thousand, seven hundred part year residence between twenty
Speaker 1: and twenty nineteen, according to a report, that means the
Speaker 1: states lawn about one hundred fifteen thousand tax filers during
Speaker 1: the period. New York City subway system is carrying fewer
Speaker 1: rids than expected this year as crime has spiked, including
Speaker 1: a violent subway attack last month that shook the city.
Speaker 1: There were four hundred fifteen million subway and bus trips
Speaker 1: taken from January through April, about nine nine million less
Speaker 1: than budgeted. New York City's last freestanding public pay phone
Speaker 1: was taken away from Times Square on Monday morning for
Speaker 1: a WiFi Kiosks by Link n y C program backed
Speaker 1: by the technology consortium City Bridge and Partnership of the
Speaker 1: City began to replace pay phones in twenty that your
Speaker 1: Bloomberg Try and State Business Report. I'm Ed Corey, all right,
Speaker 1: thanks In five thirty eight on Long Street. Bloomberg Radio
Speaker 1: is on the year from San Francisco to New York,
Speaker 1: London to Hong Kong. And let's check in now with
Speaker 1: our global news team for some of the top stories
Speaker 1: heard on our three hundred affiliate radio stations around the world.
Speaker 1: I'm Steve podascon K and excellent Los Angeles. We're talking
Speaker 1: about video game testers at Activision Blizzard voting to join
Speaker 1: a union. I'm Ginas Servetti and for w b b
Speaker 1: M in Chicago, I'm reporting that a special committee of
Speaker 1: the City Council has approved a one point seven billion
Speaker 1: dollar proposal by Valleys to build the city's first casino.
Speaker 1: I'm Kalin head Come Blue Bag DAB Digital Radio. In London.
Speaker 1: We're reporting on the opening of the new Elizabeth Line.
Speaker 1: Years overdue and billions over budget, but schwansformational. According to
Speaker 1: Andy Byford Detonsport, London Commissioner Um corneyanahoan Cafebian, Omaha farmers
Speaker 1: are still seen making money and despite sin cost. I'm
Speaker 1: ed Corey on w A t AM in Cleveland. I'm
Speaker 1: reporting nine companies from northeast Ohio made the fortune five
Speaker 1: hundred this year and those are some of these stories
Speaker 1: are twenty seven hundred. Bloomberg journalists and analysts are working
Speaker 1: on this morning around the world. It is five thirty
Speaker 1: nine on Ball Street. The following is in editorial from
Speaker 1: Bloomberg Opinion. It's disappointing that UK Prime Minister Boris Johnson
Speaker 1: has chosen to escalate his quarrel with the EU at
Speaker 1: this moment, but unfortunately it's not surprising at issues in
Speaker 1: Northern Ireland Protocol, part of the UK's exit deal with
Speaker 1: Europe that controls trade to and from the province. Brexit
Speaker 1: has made trade involving Northern Ireland costlier and more complicated,
Speaker 1: pushing it farther away from Britain and closer towards Ireland.
Speaker 1: Members of Northern Ireland's Democratic Unionist Party say that as
Speaker 1: long as the protocol stays in place, they'll refuse to
Speaker 1: take their seats in the power sharing government. So Johnson,
Speaker 1: bending to their pressure, has essentially told Europe changed the
Speaker 1: protocol oral scrap it unilaterally. No doubt, the protocol was
Speaker 1: poorly designed and needs attention, but it can be mended
Speaker 1: through cooperation, not by Johnson threatening to tear up an
Speaker 1: agreement he himself championed. This editorial was written by the
Speaker 1: Bloomberg Opinion editorial board. I'm David Shipley. For more Bloomberg opinion,
Speaker 1: please go to Bloomberg dot com Flash Opinion or op
Speaker 1: go on the Bloomberg terminal. This has been Bloomberg Opinion
Speaker 1: and Bloomberg Opinion editorials could be heard every weekday at
Speaker 1: this time. Terminal customers can read more at opie. I
Speaker 1: M go l futures right now down SMP futures down one.
Speaker 1: This is Bloomberg just to have snap and just like that,
Speaker 1: social media takes a tumble. Bloomberg's Alex Webb will stop
Speaker 1: by talk about what is essentially a digital advertising story. Markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot com, the Bloomberg Business at and at Bloomberg Trictape.
Speaker 1: This is a Bloomberg Business lash and I'm Karen Moscow
Speaker 1: stocks are lower this morning after a prophet warning from
Speaker 1: snap Weight on technology shares in fuel concerns about risk
Speaker 1: to economic growth. We check the markets every fifteen minutes
Speaker 1: throughout the trading day on Bloomberg U S and P
Speaker 1: futures down about fifty one points down, futures down two
Speaker 1: hundred seventy five and NASDAGG futures down two hundred twenty three.
Speaker 1: That's down about one point nine percent. The docks in
Speaker 1: Germany is down nine tenths of a percent. Ten year
Speaker 1: treasury of twelve thirty seconds yell two point eight zero percent.
Speaker 1: The yelled downe at two year two point five seven percent.
Speaker 1: Nine mex Scrude oil is down a third of per cent,
Speaker 1: or thirty six cents at a hundred nine dollars ninety
Speaker 1: three cents of barrel COMEXS Gold up four tenths percent
Speaker 1: or eight dollars ten cents at eighteen sixty two and
Speaker 1: ounce the euro one point oh seven one two against
Speaker 1: the dollar, British found one point to four nine seven
Speaker 1: and the end at one twenty seven point three one.
Speaker 1: Bitcoin this morning is done about a quarter percent at
Speaker 1: twenty nine thousand, two hundred forty dollars and shere's a
Speaker 1: snapper down more than twenty eight percent in early trading.
Speaker 1: That's a Bloomberg business flash. Now here's Michael Barr with
Speaker 1: more on what's going on around the world. Muchael, Thank
Speaker 1: you very much, Jaren with mid term primaries well under way.
Speaker 1: Voters head to the polls in five states today. In Georgia,
Speaker 1: where former President Trump's hold on the Republican Party will
Speaker 1: be tested in the governor's race, Trump back David Purdue,
Speaker 1: while former Vice President Mike Pence signs with the other
Speaker 1: man in the race, incumbent governor Brian Kemp. The US
Speaker 1: and Britain are accusing Russia of spreading disinformation online and
Speaker 1: manipulating public opinion about the war in Ukraine. The two
Speaker 1: countries vehemently rejecting Russia's claim at the West is aiming
Speaker 1: to control all information flows and to find what is
Speaker 1: true or untrue. NBA playoffs. The Celtics beat the Heat
Speaker 1: to even the series at two games apiece. In baseball,
Speaker 1: the Yankees lost to the Orioles, the Mets beat the Giants,
Speaker 1: the Nationals and A's lost. Global news twenty four hours
Speaker 1: a day on air and on Bloomberg Quicktank, powered by
Speaker 1: more than twenty seven hundred journalists and analysts in more
Speaker 1: than a hundred twenty countries. I'm Michael Bard. This is Bloomberg,
Speaker 1: John Michael, Thank you five forty nine of Wall Street.
Speaker 1: We are live from the Bloomberg Interactive Broker's studios. They
Speaker 1: his daybreak, a slump in tech, let a drop for
Speaker 1: futures after Snap sour the mood with a cut to
Speaker 1: reve than profit forecast shares. This Karen mentioned dropping pre market,
Speaker 1: dragging peers from Meta to Pinterest and Twitter with it.
Speaker 1: And let's get a closer look this morning with Alex
Speaker 1: Web corresponded for Bloomberg Quick Take. Thanks for being here, appreciated.
Speaker 1: Remind anybody born last century what Snap does? Why this
Speaker 1: is a digital advertising story. Well. Stap is a social
Speaker 1: media platform, but largely used by younger users who it's
Speaker 1: fleeting images and videos, which, after having been watched, then disappear.
Speaker 1: It attracts uses by encouragence of post every day they
Speaker 1: have streached that might otherwise use. And as with any
Speaker 1: other social media platform, they make their money from advertising.
Speaker 1: And as we know, when there's a slowdown in the economy,
Speaker 1: often the first thing that brands and companies and general
Speaker 1: term two in terms of finding cost savings is their
Speaker 1: marketing budget. And that's what's happening here. The smaller ones
Speaker 1: are getting hit first, perhaps a bit more resilience among
Speaker 1: the bigger ones. Okay, so the CEO, what does he blaming?
Speaker 1: You know, the broader inflationary pressures that we're seeing from
Speaker 1: you know, not least through the war in Ukraine, but
Speaker 1: supply chain snarl ups, all these things that are affecting
Speaker 1: companies profits and therefore encouraging companies are therefore having to
Speaker 1: cut down on their on their expenditures. You know. The
Speaker 1: thing that you also have to look at with Snap
Speaker 1: is that it was valued pretty highly already. It was
Speaker 1: valued at then before yesterday's news, and of course until
Speaker 1: markets open something like fifty times it's forward earnings. Now
Speaker 1: compare that to Facebook, which traded about fifteen times it's
Speaker 1: forward earnings, and Twitter which is about thirty five times,
Speaker 1: and Snap was very generously valued. Now if you if
Speaker 1: Snap is saying that it's earnings that kind of come down,
Speaker 1: which is, well, they're not going to grow as much
Speaker 1: as they had expected. They've said it will be below
Speaker 1: the range they had previously given. That means that by extension,
Speaker 1: the valuation has to come down as well. We're seeing
Speaker 1: that a lot of corrections are happening then in the
Speaker 1: social media space, as people realize these valuations are quite generous. Yeah,
Speaker 1: I mean, how much of the story is specific just
Speaker 1: to the company or is it, as you say, a
Speaker 1: much much broader story. It is a broader story. But
Speaker 1: as I sort of alluded to earlier, the big companies
Speaker 1: like Facebook and Google, or Meta and Google. You know,
Speaker 1: they have by some accounts, you know, even Instagram has
Speaker 1: one and a half billion active users, so does YouTube,
Speaker 1: and of course even more people using Google Search. So
Speaker 1: even with inflationary pressures, a lot of brands will still
Speaker 1: feel they have to be on those two big platforms that.
Speaker 1: You know, if someone is going on the Internet and
Speaker 1: searching for blue T shirts and you're in the business
Speaker 1: of selling blue T shirts, you have to be advertising
Speaker 1: on Google. That is less the case at some of
Speaker 1: the smaller platforms like Snap, like Twitter, like Pinterests, which
Speaker 1: are a bit more discretionary, perhaps adding you're trying to
Speaker 1: find its brand recognition, You're trying to find new customers
Speaker 1: in a different way from from actually driving a sale
Speaker 1: in the way that you might do our Google search.
Speaker 1: How does the Apple figure into this, Well, Apple's role
Speaker 1: is quite significant because of some changes they introduced recently
Speaker 1: UM pertaining to what's soon as I d I d
Speaker 1: f A identification for advertisers. Now, this is a sort
Speaker 1: of number which let brands work out or app makers
Speaker 1: work out who was in their app and going from
Speaker 1: app to apps. So for instance, if I'm in Snap
Speaker 1: and I see in Snapchat and I see an advert
Speaker 1: advert for Nike sneakers, and then I decide half an
Speaker 1: hour later or even two weeks later in the Nike
Speaker 1: app to buy those sneakers, it knows that I am
Speaker 1: the same person because of I d f A. Now,
Speaker 1: what Apple brought in was changes which made it easy
Speaker 1: for people to say don't track me across apps. That
Speaker 1: means that it's harder for the likes of Snap to say, well, actually,
Speaker 1: we helped drive drive that sale for you, and I
Speaker 1: keep by showing them and add an ad in our app,
Speaker 1: and so that means it destroys a bit of value
Speaker 1: for the likes of Snap. It's something that a lot
Speaker 1: of these social media companies and of course other app
Speaker 1: makers are complaining about, but it is very good for
Speaker 1: you know, consumer choice and consumer privacy. Alex, thanks a
Speaker 1: lot for the explainer. Appreciated Alex Webb, correspondent for Bloomberg
Speaker 1: quicktic and you know the pre market this morning, Snap
Speaker 1: shares the most actively traded right now. They're down twenty
Speaker 1: eight percent. Karen, all right, John, thank you. It's five
Speaker 1: three on Wall Street. Time for our Bloomberg the Law Report.
Speaker 1: We get to the legal stories we're watching this morning
Speaker 1: with Bloomberg's Joan Donnegher. Senators in both parties are looking
Speaker 1: at adding tax perks a credit for u S producers
Speaker 1: of semiconductors, to a bill addressing economic competitiveness. Some Democrats, though,
Speaker 1: are kathy with the idea of adding tax provisions that
Speaker 1: benefit for rations. Lawmakers want to raise the ten thousand
Speaker 1: dollar deduction cap on state and local tax payments are
Speaker 1: looking for another way to get it done. They're hoping
Speaker 1: to see it go through the appropriations process and battle
Speaker 1: lines are forming on Capitol Hill and the effort to
Speaker 1: include cryptocurrency assets in four oh one k plans. Bloomberg
Speaker 1: Law everything you need, all on one legal research platform,
Speaker 1: including guidance analysis and Bloomberg Market Intelligence. Find out more
Speaker 1: at Bloomberg Law dot com. All right, Joan, thank you
Speaker 1: now another legal story we're watching this morning. Cryptocurrency litigation
Speaker 1: is soaring, prompted by a surge of investors in the
Speaker 1: space and US proposals promised more rules to fight over
Speaker 1: in the coming months and years. According to law firm
Speaker 1: Morrison Cohen, crypto has generated more than two hundred class
Speaker 1: action lawsuits and other private litigation as of this month,
Speaker 1: more than fifty percent since the start of For more
Speaker 1: on the uptick and lawsuits, Bloomberg student Grosso spoke with
Speaker 1: Stam Skolnick, a boarder for a Bloomberg Law. Currently, there
Speaker 1: are roughly four hundred actions, be they private lawsuits government suits,
Speaker 1: that are are current in this space. Um That number
Speaker 1: has grown consistently over the years, according to at least
Speaker 1: one guy at a firm called a Morrison and Cohen,
Speaker 1: a mid sized firm in New York that keeps track
Speaker 1: of these lawsuits regarding crypto companies, about half of the
Speaker 1: four hundred, though he said that there's been a real
Speaker 1: explosion in one portion of this that has to do
Speaker 1: with class action lawsuits, other private litigation. About half of
Speaker 1: that four hundred numbers roughly two hundred. That number has
Speaker 1: grown exponentially over just the last few years, and interestingly, June,
Speaker 1: just a quick search of this litigation, of this private
Speaker 1: litigation shows some pretty big names attached to some of
Speaker 1: these suits, and you don't have to follow legal news
Speaker 1: specifically to know some of these names. For example, in January,
Speaker 1: there was a class action I think it's still awaiting certification,
Speaker 1: but computative class action against Kim Kardashian, the celebutante, as
Speaker 1: well as former boxing champ of Floyd Mayweather Jr. And others.
Speaker 1: And what that pseudolleged is that the defendants had made
Speaker 1: misleading statements in Twitter and other social media posts. Two
Speaker 1: investors of one specific cryptocurrency token called Ethereum Max, and
Speaker 1: then there have been lots of other big companies including
Speaker 1: I'm not sure from pronouncing this right, but the fancy
Speaker 1: French scarf and bagmaker air Mess International. They also have
Speaker 1: been involved in litigation of a different type where a patent,
Speaker 1: trademark and fringeman litigation also, I believe in January they
Speaker 1: sued a company called Mason Lothschild in the Federal Court
Speaker 1: in Manhattan basically claiming that that this other company had
Speaker 1: sold a non fungible token these a nonreplicable digital collect
Speaker 1: double items, and that they were doing so illegally, that
Speaker 1: they were infringing one trademark from the Suffrench fashion House.
Speaker 1: And that's Bloomberg Law reporter Sam Skolnick speaking at the
Speaker 1: Bloomberg Stewing Garasso. Catch more of that interview, plus analysis
Speaker 1: of the latest legal news by subscribing to the Bloomberg
Speaker 1: Law Podcast or downloading this show at Bloomberg dot com
Speaker 1: slash podcast. Attorneys can find exceptional legal research and business
Speaker 1: development tools at Bloomberg Law dot com and on the
Speaker 1: Bloomberg terminal at b law Go. SNP futures are lower
Speaker 1: this morning, down forty five points and down futures down
Speaker 1: two hundred forty and NASDAG futures down to two hundred
Speaker 1: to tenure treasury of twelve thirties seconds yet two point
Speaker 1: eight zero percent our top stories straight ahead on Bloomberg Daybreak,
Speaker 1: And this is Bloomberg