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Speaker 1: Live from the Bloomberg Interactive Brooker Studios. Is this Bloomberg

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Speaker 1: day Break for Tuesday, June one. Coming up this hour,

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Speaker 1: stock future surge as we begin this holiday short and

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Speaker 1: trading week. We speak exclusively with Elon Musk about Twitter,

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Speaker 1: Tesla and politics. More calls this morning for a US recession.

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Speaker 1: I'm all street races for congressional testimony this week from

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Speaker 1: FED Chair J Powell. New York passes landmark voting rights legislation.

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Speaker 1: Plus it's day four of January six hearings Michael Barr.

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Speaker 1: More ahead, I'm John Stair showering sports who They're near

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Speaker 1: no hitter for the Yankees, they get their fiftieth win,

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Speaker 1: shut out win for the Mats, Tampa Baby Colorado in

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Speaker 1: the Stanley Cup Final. That's all trendy ahead on Bloomberg

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Speaker 1: day Break on Bloomberg eleven three, on New York, Bloomberg one, Washington,

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Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties,

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Speaker 1: and Francisco Sirius x M one nineteen and around the

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Speaker 1: world on Bloomberg Radio dot Com and via the Bloomberg

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Speaker 1: Business App. Good morning, I'm Nathan Hager, and I'm Karen

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Speaker 1: Moscow and US DOT Index futures on the rise this morning.

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Speaker 1: We're coming up to five o one on Wall Street,

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Speaker 1: and we checked the markets every fifteen minutes throughout the

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Speaker 1: trading day on bloomberg S and P futures up seventy

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Speaker 1: two points down futures of five eight and nasday features

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Speaker 1: of two hundred forty and the ten year treasury down

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Speaker 1: ten thirty seconds. You have three point to six percent.

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Speaker 1: They yield on the two year three point to zero percent,

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Speaker 1: Nathan Karen. We begin this morning with an exclusive interview

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Speaker 1: with Elon Musk at the Cutter Economic Forum. The Testas

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Speaker 1: CEO sat down for a wide ranging conversation with Bloomberg

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Speaker 1: News editor in chief John Michael Thwaite. They discussed everything

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Speaker 1: from the economy to politics, and of course, Elon Musk's

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Speaker 1: proposed acquisition of Twitter. They're still um a few results

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Speaker 1: matters you've you've probably read about. The question is whether

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Speaker 1: the number of fake and spam users on the system

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Speaker 1: is best than five the center as for claims, which

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Speaker 1: I think is probably not most people's experience on we're

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Speaker 1: using Twitter. UM, so we're still awaiting resolution on that matter. UM.

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Speaker 1: And that that is a very significant matter um. So

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Speaker 1: we're a waiting resolution on that um. And then of

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Speaker 1: course there is the question of will the dead portion

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Speaker 1: of the round come together, and then will the sharehold

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Speaker 1: discoge in favors Elon Musk, speaking with Bloomberg from the

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Speaker 1: Counter Economic Forum in Doha, the Tesla CEO also spoke

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Speaker 1: about politics, cryptocurrencies, and the future of Tesla. Stay tuned

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Speaker 1: for more of that exclusive interview coming up shortly on

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Speaker 1: Bloomberg Daybreak. Well, Nathan, futures are higher as we begin

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Speaker 1: a shortened holiday trading way. The rally comes after nearly

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Speaker 1: two trillion dollars in market value as a race from

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Speaker 1: the SNP five last week. There could be more losses ahead,

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Speaker 1: according to Morgan Stanley and Goldman Sachs. Morgan Stanley's Michael

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Speaker 1: Wilson says stocks need to drop another fifty for the

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Speaker 1: market to fully reflect the scale of economic contraction. Perhaps

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Speaker 1: the biggest event for markets this week, Karen, will be

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Speaker 1: Congressional testimony from j Powell. The Fed share delivers the

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Speaker 1: Central Bank semi annual report on Monetary policy tomorrow. Bloomberg's

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Speaker 1: Vinny Dell Judas reports Powell tell Congress the FEDS commitment

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Speaker 1: to battling the worst inflation in forty years is unconditional,

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Speaker 1: just days after launching the largest FED interest rate increase

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Speaker 1: in twenty years, and advanced text of the FEDS report

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Speaker 1: to lawmakers says it's committed at doing what's needed to

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Speaker 1: get the job done and that price stability is necessary

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Speaker 1: to support a strong US labor market. Powell will testify

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Speaker 1: to the Senate Banking Committee on Wednesday and the House

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Speaker 1: Financial Services Committee on Thursday. Benny Dell, Judai Sploomberg Day Break,

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Speaker 1: All right, Vinnie, thank you. There are more calls and

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Speaker 1: an impending recession this morning with the leaders live round

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Speaker 1: Bloomberg's re Anita Young, Good morning, Rinia, Good morning. Hearn

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Speaker 1: Elon Musk, Norio Robini, and Goldman Sax are now warning

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Speaker 1: that the US economy could fall into a recession, while

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Speaker 1: Musk predicts it happening sometime in the near future. Goldman

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Speaker 1: sachs now sees a thirty percent chance of a recession

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Speaker 1: over the next year. That's up from fift percent previously,

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Speaker 1: and a twenty five percent chance of entering a recession

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Speaker 1: in the second year if one is avoided in the first.

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Speaker 1: Robini sees the US is procession by the end of

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Speaker 1: this year by getting Robini Macro Associate CEO Norio Robini

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Speaker 1: says the economy is expecting experiencing a number of negative

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Speaker 1: aggregate supply shocks. Live in New York. I'm Nita Young

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Speaker 1: Bloomberg day Break. Okay, Nita, thank you all. President Biden's

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Speaker 1: pushing back on those calls for recession. Summers a swarming,

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Speaker 1: and h there's nothing recession. President Biden's with reporters in

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Speaker 1: Delaware yesterday. He was referring to former Treasury secretary and

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Speaker 1: current Bloomberg contributor Larry Summers. Meantime, President Biden says he

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Speaker 1: is aiming to decide this week whether to suspend the

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Speaker 1: federal gasoline tax, and Bloomberg said Baxter has the story.

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Speaker 1: The President is being careful at this point, saying he

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Speaker 1: is looking for more data, but sounds confident hope that

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Speaker 1: I'm looking for. He and his administration are trying to

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Speaker 1: find ways to ease the staring prices at the pump,

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Speaker 1: and his Treasury Secretary Janet Yellen, also sounds like she

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Speaker 1: likes the idea. I think, well, I'm not perfect, it

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Speaker 1: is something that should be under under consideration. So consideration

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Speaker 1: it is, and we should have an answer by the

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Speaker 1: end of the week. In San Francisco, I'm at Baxter

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Speaker 1: Bloomberg Gay break all right and thank you. And Secretary

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Speaker 1: Yellen says another way to lower gas prices could involve

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Speaker 1: Russian oil exports. We are talking about price caps or

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Speaker 1: a price exception that would enhance and strengthen recent and

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Speaker 1: proposed energy restrictions by Europe, the United States, the UK

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Speaker 1: and others that would push down the price of Russian

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Speaker 1: oil and to press Putin's revenues while allowing more oil

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Speaker 1: supply to reach the global market. Treasury Secretary Janet Yelling

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Speaker 1: made those comments during a press conference in Toronto alongside

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Speaker 1: Canadian Finance Minister Christiff Freeland, the CEO of Exxon Mobiles.

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Speaker 1: As global oil markets may remain tight for another three

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Speaker 1: to five years, largely because of a lack of investment

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Speaker 1: since the pandemic began, Darren Woods says it'll take time

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Speaker 1: for oil firms to catch up to ensure there's enough supply.

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Speaker 1: Thoughtful conversations about investments across that whole portfolio of solution

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Speaker 1: sets needed to provide affordable and reliatable energy while reducing

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Speaker 1: emissions is the path forward. Ex Mobiles CEO Darren Woods

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Speaker 1: made the comments at the Cutter Economic Forum in Doha

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Speaker 1: and on the M and A front this morning. Here

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Speaker 1: in the battle over Spirit Airlines is taking off. Jet

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Speaker 1: Blue is raising its offer to buy the bargain carrier,

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Speaker 1: valuing Spirit at about three point seven billion dollars, and

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Speaker 1: follow Spirits decision to delay a shareholder vote on its

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Speaker 1: pending deal with Frontier Airlines. That vote is set for

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Speaker 1: June and futures are higher. Straight ahead your latest local

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Speaker 1: headlines plus such check of sports and this is Bloomberg

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Speaker 1: Oak Care. Thank you. This five oh seven on Wall

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Speaker 1: Street where sixty five degrees in Central Park picking up

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Speaker 1: some voting. Construction on the northbound New Jersey Turnpike's in

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Speaker 1: the truck lane s hearings at six. Look at the

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Speaker 1: details in traffic just a few minutes. First, you gotta

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Speaker 1: bring in Michael Barr for a look at what else

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Speaker 1: is going on in New York and around the world

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Speaker 1: this morning. Good morning, Michael, Good morning Nathan, New York's governor,

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Speaker 1: signed a law intended to prevent local officials from enacting

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Speaker 1: rules that might suppress people's voting rights because of their race.

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Speaker 1: The John R. Lewis Voting Rights Act is named after

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Speaker 1: the late civil rights activists who represented Georgia in the

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Speaker 1: US House. Governor Kathy Ocle Across the country, we're seeing

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Speaker 1: stricter voter I D laws, short early voting periods, and

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Speaker 1: more burdens when you're trying to just vote by mail.

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Speaker 1: We're seeing people pursed on voter rolls. Governor hokel says

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Speaker 1: We're going to change our election laws so we no

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Speaker 1: longer hurt minority communities. The House January six committee is

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Speaker 1: set to hear from local officials who fended off Donald

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Speaker 1: Trump's pressure to overturn the presidential election. Representative Adam Schiff

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Speaker 1: is set to lead today's hearing. He told CNN that

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Speaker 1: Trump campaign's plans unsuccessfully dependent on hopes that state legislators

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Speaker 1: would approved the Big Lie. When they didn't, Trump turned

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Speaker 1: to pressuring state officials will show evidence of the President's

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Speaker 1: involvement in the scheme. Representative Shift and the panel. Today

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Speaker 1: we'll hear testimony from Georgia's Secretary of State Brad Raffensberger

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Speaker 1: about Trump's call asking him to find over eleven thousand

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Speaker 1: votes to prevent Joe Biden's election victory. That testimony is

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Speaker 1: expected to include death threats they received. Alabama's Republican primary

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Speaker 1: is today. Congressman Moe Brooks lost the former president's endorsement

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Speaker 1: in part for saying that it was time to move

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Speaker 1: on from the election. Trump then chose to back Katie

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Speaker 1: Britt of the states conducting elections today our Virginia and Georgia.

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Speaker 1: And out of control New York City cab on a

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Speaker 1: Manhattan street struck a bicyclists and ten two other Ohio

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Speaker 1: tourists to a wall on the sidewalk. It happened yesterday

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Speaker 1: at twenty ninth Street and Broadway. Good Samaritans rushed the

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Speaker 1: scene to free them and treat their injuries, including two

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Speaker 1: women pinned against the building by the taxi. Deputy Police

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Speaker 1: Chief John Chell about fifteen, it's one in New York

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Speaker 1: has attempted to pick this cab walf these women okay.

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Speaker 1: In total, we have six victims at the hospital, including

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Speaker 1: the cab driver, Deputy police Chief. Channel Global News twenty

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Speaker 1: four hours a day on air and on Bloomberg Quick Tank,

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Speaker 1: powered by more than hundred journalists and analysts. More than

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Speaker 1: a hundred twenty countries. Michael Bard, this is Bloomberg Na.

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Speaker 1: Thank you, Michael. We're coming out to five ten on

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Speaker 1: Wall Street. Time for the Bloomberg Sports Updateke and Morney

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Speaker 1: Johnston Show, Good Morning, eighth and Yankees up to fifty

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Speaker 1: wins on the air and four of them. A Yankees

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Speaker 1: starter has flirted with a no hitter once with Dester Cortez,

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Speaker 1: also Jammes and Tyona Now twice with Garrett Cole on

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Speaker 1: the mount he lost to no whether the clean single

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Speaker 1: up the middle leading off the Tampa Bay eighth. Then

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Speaker 1: he Clay Holmes came in having not a lot of

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Speaker 1: runs of the opening day. The Rays got to him too.

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Speaker 1: It's in a walk. They scored twice in the eighth

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Speaker 1: to tie the game. Yanks then scored twice in the ninth.

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Speaker 1: Darreon Hicks the Big get a triple in Aaron Boone's

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Speaker 1: team won four to two. They put a couple of

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Speaker 1: balls and play on us. You were able to tie

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Speaker 1: the game, and it's it's it's right back there. Let's

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Speaker 1: go find a way to get this thing done. And um,

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Speaker 1: you know we talked about keep playing. You know there's

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Speaker 1: things that happen over the course of the game, over

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Speaker 1: the course of the season that are you know, sometimes

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Speaker 1: out of your control. You gotta just keep playing rais

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Speaker 1: or slumping. They've lost six of seven. The Red Socks

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Speaker 1: have moved ahead of them into third in the Al East.

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Speaker 1: Matt Mayan City Field easy went to the Mats six

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Speaker 1: and nothing over the Marlins. Three hits, the branded Nimo

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Speaker 1: three rb I s for at ward O Escu Bar

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Speaker 1: David Peterson got the win of the Mets win another series.

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Speaker 1: They have played twenty one series, they only lost three

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Speaker 1: of them. Atlanta won the main five and a half

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Speaker 1: games behind them. Met Home Ice has met a lot

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Speaker 1: throughout the Stanley Cup laffs that was through for the

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Speaker 1: Rangers and now in the Cup final though Home teams

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Speaker 1: three and O Colorado one in overtime, then seven nothing

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Speaker 1: but Tampa Bay one last night six to two in

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Speaker 1: the lightning of one. Eight in a row at home.

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Speaker 1: Game four is tomorrow. The Athletic reports Kyrie Irving likely

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Speaker 1: to turn down his thirty seven million dollar option with

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Speaker 1: the Nets, become a free agent, and that the Knicks

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Speaker 1: could be interested at John Stash Hallard Bloomberg Sport. All right, John,

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Speaker 1: thanks future surging as we started holiday short and trading week.

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Speaker 1: Right now, S and P futures are up seventy one

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Speaker 1: points down, futures up five hundred fifteen. NASA futures are

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Speaker 1: higher by turn to thirty eight points. The tenure treasury

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Speaker 1: is down ten thirty seconds, yield three point to six percent.

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Speaker 1: You're listening to Bloomberg Taper Bloomberg eleven three oh weather

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Speaker 1: increasing clouds, chance for afternoon showers today with a high

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Speaker 1: near eighty degrees. Showers and storms possible tomorrow low seventies

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Speaker 1: camber let the shower risk on Thursday either right now

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Speaker 1: sixty five and clear in Central Park Markets. Headlines and

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Speaker 1: breaking new twenty four hours a day at Bloomberg dot Com,

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Speaker 1: the Bloomberg Business Outland at Bloomberg Quick Tape. This is

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Speaker 1: a Bloomberg Business flash. Yeah, and I'm Karin Moscow. This

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Speaker 1: update brought to you by Informatica. On the Cloud, your

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Speaker 1: data has the power to do the extraordinary. Managed data

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Speaker 1: across any location in the cloud for accurate and actionable insights.

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Speaker 1: More at Informatica dot Com. SMP future is on the

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Speaker 1: rise this morning at seventy points down, futures up five

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Speaker 1: hundred one and Nasday features up two hundred thirty four penniear,

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Speaker 1: Treasury down on thirty second, and seal three point to

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Speaker 1: six percent yield on a two year three point one

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Speaker 1: As a Bloomberg Business Flash. Now here's Michael Barr with

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Speaker 1: more on what's going on around the world. Michael, good morning,

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Speaker 1: Good morning. Karen Aids to the January six committees say

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Speaker 1: today's public hearing will focus on efforts by former President

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Speaker 1: Trump and his allies the pressures state level officials to

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Speaker 1: overturn the results of the presidential election. President Joe Biden

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Speaker 1: said he is aiming to decide this week whether to

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Speaker 1: move to suspend the federal gas tax and a bid

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Speaker 1: to ease the impact of sewing prices at the pump.

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Speaker 1: In baseball, the Yankees and Mets one. Other winners include

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Speaker 1: the Red Sox, the Giants lost in the NHL Stanley

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Speaker 1: Cup Final, the Lightning one game three over the Avalanche.

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Speaker 1: Six to Global News twenty four hours a day on

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Speaker 1: air and on Bloomberg Quick Take, powered by more than

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Speaker 1: twenty seven hundred journalists and analysts in more than one

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Speaker 1: twenty countries. How Michael Barr and this is Bloomberg. Nathan, Okay, Michael,

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Speaker 1: thank you. It's almost five nineteen on Wall Street Live

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Speaker 1: from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak,

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Speaker 1: and this morning we bring you a special interview with

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Speaker 1: Elon Musk. The Tesla CEO, talked about the unresolved matters

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Speaker 1: in his pursuit of Twitter and why he thinks a

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Speaker 1: recession in the United States is likely. Elon Musk spoke

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Speaker 1: with Bloomberg's editor in chief John michaels Waite from the

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Speaker 1: Cutter Economic Forum in Doha, powered by Bloomberg. Let's begin

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Speaker 1: with Twitter, and I suppose my question for you is

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Speaker 1: what is the status of the forty four billion deal?

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Speaker 1: Forty four billion dollar deal to buy the company? If

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Speaker 1: you look at the deal spreads at the moment, the

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Speaker 1: investors seem to be betting that it won't happen, I suppose.

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Speaker 1: And right here you have the Qataris who amongst your backers? Um,

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Speaker 1: what are you getting to say to them and to us?

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Speaker 1: First of all, I'd like to say, um, uh, your Highness,

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Speaker 1: who excellency isn't distinguished guests, thank you very much for

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Speaker 1: hosting you virtually. Um, it's not to be here or

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Speaker 1: be there by really UM, and I actually wish I

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Speaker 1: could be there in person. So with respect to that

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Speaker 1: the Twitter transaction, there's a limit to what I can

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Speaker 1: say publicly given that is um somewhat of a sensitive matter. UM.

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Speaker 1: So I would like to be measured in my responses here, UM,

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Speaker 1: such as not to generate incremental lawsuits. UM. That seems

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Speaker 1: to be a risk you sometimes managed to overcome. Yes,

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Speaker 1: deposition minimization is I think important? UM, have you have

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Speaker 1: has have Twitter given you enough information? There are still

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Speaker 1: um a few unresolved matters you've You've probably read about

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Speaker 1: the question as to whether the number of fake and

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Speaker 1: spam users on the system is best than five the

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Speaker 1: center as Twitter claims, UM, which I think is probably

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Speaker 1: not most people's experience on when using Twitter. UM. So

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Speaker 1: we're still waiting resolution on that matter. UM. And that

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Speaker 1: that is a very significant matter. UM. So we're a

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Speaker 1: waiting resolution on that. UM. And then of course there

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Speaker 1: is the question of will the dead portion of the

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Speaker 1: round come together? And then will the shareholds authority in favor?

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Speaker 1: So I think those are the three things that UM

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Speaker 1: standard Uh, you know, if that needs to be resolved

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Speaker 1: before the transaction can complete. What about the general state

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Speaker 1: of the economy does that weigh on you when you

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Speaker 1: think about this? I mean, you just described it. You

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Speaker 1: have a super bad feeling about the economy. Are you

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Speaker 1: still in that position? I just said to you earlier,

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Speaker 1: Joe Biden has just come out and said that a

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Speaker 1: recession in America is not inevitable. How do you feel

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Speaker 1: about the economy. I think the recession is inevitable at

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Speaker 1: some point. As to whether there is a reception in

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Speaker 1: the near term, I think that it's more likely than not.

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Speaker 1: It's not a certainty, but it appears more likely than not.

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Speaker 1: What do you think? I'm I'm I'm with you. I

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Speaker 1: agree with you, and I think it's more likely. Can

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Speaker 1: I ask you what a particular thing to do with

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Speaker 1: the Twitter bid, which is you know you are one

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Speaker 1: of the biggest and fastest growing investors in China Tesla.

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Speaker 1: You've talked about it being a third of your sales

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Speaker 1: going forward. You're not buying Twitter the kind of public

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Speaker 1: forum for free speech. The Chinese historically don't tend to

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Speaker 1: be very enthusiastic about free speech. Are you worried about

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Speaker 1: whether you can keep those two particular horses running. Is

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Speaker 1: buying Twitter going to get you in trouble with the Chinese?

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Speaker 1: Twitter does not operate in UM. And I think China

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Speaker 1: does not attempt to interview interfere with the free speech

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Speaker 1: of the of the press in the US as fright

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Speaker 1: as I know, because I assume you're not under pressure

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Speaker 1: to Ed Bloomberg to UH from China. So I think

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Speaker 1: there's UM, I don't think it's gonna be an issue.

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Speaker 1: And in terms generally of that issue of freedom and

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Speaker 1: speech and Twitter, you've talked about Twitter being making it

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Speaker 1: even freer and letting more people onto it. Is there

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Speaker 1: a limit at all to to who you think should

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Speaker 1: be allowed onto Twitter. My aspiration for Twitter, or in

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Speaker 1: general for the digital town square would be that it

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Speaker 1: is as inclusive in the water assess the word as possible,

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Speaker 1: UM that it is. It is an appealing a system

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Speaker 1: for years, UM. So I mean, ideally I'd like to

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Speaker 1: get like eight of UH that's in North America and

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Speaker 1: perhaps I don't know half the world or something ultimately

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Speaker 1: on on Twitter in one form or another, and that

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Speaker 1: needs that means it must be something that is appealing

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Speaker 1: to people. It obviously cannot be a place where they

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Speaker 1: feel uncomfortable or harassed um or they'll somethly not use it.

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Speaker 1: So um. And I think there's there's a big difference

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Speaker 1: between freedom and speech and freedom of reach um. And

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Speaker 1: that one can obviously, let's say and I say, it's

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Speaker 1: go in the middle of the time square and pretty

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Speaker 1: much yell anything you want. And you know you'll you'll

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Speaker 1: annoy the people around you. But but you're you're you're

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Speaker 1: kind of allowed to just sort of yell whatever you

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Speaker 1: want to in in a crowded public place more or

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Speaker 1: less apart from this is this is a robbery probably

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Speaker 1: that would get you in trouble um. So uh. But

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Speaker 1: but then that that whatever you say, how the controversial,

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Speaker 1: does not need to then be broadcast to the whole country.

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Speaker 1: So I think generally the approach of Twitter should be

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Speaker 1: to let people say what they want to do within

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Speaker 1: the bounds flow, but then limit the you know who

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Speaker 1: sees that based on the uh. Any given Twitter uses preferences.

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Speaker 1: So if your preferences are to day on the news,

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Speaker 1: you need to know at this hour US future is

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Speaker 1: surging this morning last week to trillion dollars in market value,

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Speaker 1: erased from the SNP five This week, Marcus react to

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Speaker 1: congressional testimony from then chair J Powell, who delivers the

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Speaker 1: Central Banks semi annual Report on Monetary Policy tomorrow. Well

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Speaker 1: ahead of that, Karen Calls for a pending recession in

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Speaker 1: the US are growing louder. Bloomberg's Rnita Young joins US

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Speaker 1: Live with the details. Good morning, Granita, Good morning. Nathan.

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Speaker 1: Elon Musk and Goldman Sachs are the latest to ward

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Speaker 1: that the US economy could fall into a recession. While

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Speaker 1: Musk predicted happening sometime in the near future, Golden Sacks

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Speaker 1: now he's a thirty percent chance of entering a recession

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Speaker 1: over the next year. That's up from previously. Robini Macro

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Speaker 1: Associate CEO Mario Robini expects the US recession by the

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Speaker 1: end of this year and says the economy is experiencing

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Speaker 1: a number of negative aggregate supply shocks. Live in New York,

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Speaker 1: I'm rened a Young Bloomberg daybreak right. We need to

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Speaker 1: thank you well. Over the weekend at Delaware, President Biden

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Speaker 1: pushed back on those recession calls. He said a contraction

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Speaker 1: is not inevitable. Following a conversation with former Treasury Secretary

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Speaker 1: and current Bloomberg contributor Larry Summers. I think overall the

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Speaker 1: picture is still a very stretched uh economy. And Summers

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Speaker 1: made the remarks on Bloomberg's Wall Street Week with David

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Speaker 1: Weston Catch the program every weekend on Bloomberg Radio and television.

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Speaker 1: Those prices rise at the gas pump. Karen, President Biden's

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Speaker 1: deciding whether to suspend the federal gasoline tax. I hope

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Speaker 1: every that are looking for by the President. Biden says

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Speaker 1: he is looking for more data ahead of the decision,

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Speaker 1: which he expects will come later on this week. Treasury

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Speaker 1: Secretary Janet Yellen says she also supports the idea. Meantime,

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Speaker 1: Nathan ex On Mobile says global oil markets may remain

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Speaker 1: tight for another three to five years. CEO Darren Woods

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Speaker 1: made the comments if the Cutter Economic Forum, saying it's

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Speaker 1: largely due to a lack of investment since the pandemic began.

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Speaker 1: And we have some m and A news to pass

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Speaker 1: along this morning. Karen, Jet Blue is raising its offer

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Speaker 1: to buy bargain carrier Spirit Airlines. The new bid values

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Speaker 1: the company at about three point seven billion dollars. Well,

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Speaker 1: we take a look at futures this morning as they

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Speaker 1: are jumping, SMP futures up seventy points to down, futures

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Speaker 1: up five hundred eight and nastag features up two hundred

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Speaker 1: twenty eight. The decks in Germany's up one point one percent.

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Speaker 1: Ten year treasury down ten thirty seconds. He had three

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Speaker 1: to six percent, and they yield on the two year

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Speaker 1: at three point to zero percent nine nights. Screwed oil

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Speaker 1: is higher up two point one percent, up two dollars

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Speaker 1: twenty nine cents at a hundred eleven dollars. Eighty five

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Speaker 1: cents of barrel comics. Gold is little change at one

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Speaker 1: eight hundred thirty nine dollars forty cents. Announced. The euro

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Speaker 1: this morning one point oh five seven four against the dollar,

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Speaker 1: British pound one point to three one three, the En

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Speaker 1: one thirty five point three too, Bitcoin at twenty one thousand,

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Speaker 1: two hundred eleven dollars. Try to had your latest local headlines,

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Speaker 1: had to check a sports. This is Bloomberg thanks hearing

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Speaker 1: five thirty three on Wall Street, sixty five degrees in

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Speaker 1: Central Park, on an overturned tractor trailer and Upper Saddle River.

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Speaker 1: We'll get to the details shortly. First, Michael Barr with

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Speaker 1: more on what's going on in New York and around

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Speaker 1: the world. Michael, thank you very much, Nathan. New York

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Speaker 1: Governor Kathy Hocal signed a state law protecting voting rights,

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Speaker 1: and as signing ceremony and Brooklyn, Governor Hocal said New

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Speaker 1: York is preserving voting rights while they are under attack

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Speaker 1: around the country. The shocking revelation that there are people

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Speaker 1: out there who were so firm and their belief that

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Speaker 1: Donald Trump she remained their president, fostered by him, that

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Speaker 1: they literally attacked our capital. Governor Hokels says that John

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Speaker 1: Lewis Voting Rights of New York is named after federal

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Speaker 1: legislation that passed the House last year but has not

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Speaker 1: yet passed the Senate. The House eluct committee investigating the

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Speaker 1: January sixth insurrection means again later today for its fourth

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Speaker 1: public hearing. This time, the hearing is from mostly Republican

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Speaker 1: officials on how former President Trump and his allies tried

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Speaker 1: to convince them to break the law and turn the

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Speaker 1: Trump election losses into wins. New York City police are

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Speaker 1: still investigating what caused a yellow cab to jump a

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Speaker 1: curb in Midtown Manhattan. Dur and injured six people. Police

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Speaker 1: say the cab struck a cyclist on Broadway, then veered

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Speaker 1: off the road, jumped the sidewalk, and struck two women

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Speaker 1: on the sidewalk, pinning them against the wall of a

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Speaker 1: building up The twenty passers by immediately jumped into action,

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Speaker 1: trying to lift the cab off the two women who

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Speaker 1: were pinned against the wall. New York Mayor Eric Adams,

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Speaker 1: they clearly responded to help those who were injured. They

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Speaker 1: didn't know they were tourists or not. They just responded

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Speaker 1: a normal way, to New York Mayor Adams says. Two

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Speaker 1: of the injured were tourists from Columbus, Ohio. Two more

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Speaker 1: revisiting from Mexico. Although those injured are expected to recover.

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Speaker 1: Anguish and questions last night during the first school board

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Speaker 1: meeting after the horrific massacre inside the rob Elementary School

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Speaker 1: in Yuvoldi, Texas. Several investigations are underway trying to find

431
00:25:39,240 --> 00:25:42,480
Speaker 1: out why the school systems police chief waited for over

432
00:25:42,520 --> 00:25:45,800
Speaker 1: an hour to storm the classroom and and the shooting rampage.

433
00:25:46,160 --> 00:25:48,480
Speaker 1: At the school board meeting, this man asked for the chief,

434
00:25:48,480 --> 00:25:51,320
Speaker 1: Pete Rodondo, to be fired send them on this duty.

435
00:25:51,320 --> 00:25:54,840
Speaker 1: Call it whatever you want, call it, suspend them, pinning termination,

436
00:25:55,240 --> 00:25:59,800
Speaker 1: It's an insult to injury. Nineteen children and two teachers died.

437
00:26:00,160 --> 00:26:02,480
Speaker 1: Global News twenty four hours a day on air and

438
00:26:02,680 --> 00:26:05,440
Speaker 1: on Bloomberg Quick Sache, powered by more than twenty seven

439
00:26:05,800 --> 00:26:08,680
Speaker 1: journalists and analysts more than a hundred twenty countries. Michael Bard,

440
00:26:08,720 --> 00:26:16,760
Speaker 1: this is Bloomberg, Nathan Michael, thank you on Wall Street

441
00:26:16,760 --> 00:26:19,040
Speaker 1: time for the Bloomberg Sports Update with John Stenshower. Rank

442
00:26:19,080 --> 00:26:21,640
Speaker 1: to day Yankees stop. They had win number fifty Sunday

443
00:26:21,720 --> 00:26:25,119
Speaker 1: in Toronto. Boot Day suddenly scored seven runs over the

444
00:26:25,240 --> 00:26:26,920
Speaker 1: seventh and eighth innings in one ten to nine and

445
00:26:27,000 --> 00:26:29,400
Speaker 1: eighth innings. Struggle again at Tampa Bay. The Rays didn't

446
00:26:29,400 --> 00:26:32,000
Speaker 1: have a hit of Garrett Cole for the first seven.

447
00:26:32,080 --> 00:26:33,840
Speaker 1: They broke up the no hitter, and then they got

448
00:26:33,880 --> 00:26:35,560
Speaker 1: to Clay Holmes, who had not a lot of runs

449
00:26:35,560 --> 00:26:38,480
Speaker 1: since opening Day. They scored twice. The game was tied

450
00:26:38,600 --> 00:26:41,600
Speaker 1: at the ninth inning. Then runner goes slung on and

451
00:26:41,960 --> 00:26:45,280
Speaker 1: hitting the air to right. Get Marco back against the wall.

452
00:26:45,920 --> 00:26:49,240
Speaker 1: That ball is off the wall and Mark going down.

453
00:26:49,359 --> 00:26:51,359
Speaker 1: The set of Humer has to go retrieve the ball

454
00:26:51,840 --> 00:26:56,320
Speaker 1: Jnald single score, Pigs will stop at third and the

455
00:26:56,440 --> 00:26:59,960
Speaker 1: Eggs take up three to two lead on a tree

456
00:27:00,000 --> 00:27:04,680
Speaker 1: a full and Yanks won four to two, So they've

457
00:27:04,720 --> 00:27:07,760
Speaker 1: won ten of eleven seventeen of the last nineteen. Mets

458
00:27:07,800 --> 00:27:10,160
Speaker 1: won a day game with the Marlins six to nothing.

459
00:27:10,280 --> 00:27:12,679
Speaker 1: David Peterson got the winners and Mets improved the twenty

460
00:27:12,760 --> 00:27:15,359
Speaker 1: four and ten at City Field. They have called up

461
00:27:15,400 --> 00:27:17,680
Speaker 1: Don Smith back from the Miners. They'll find out today

462
00:27:17,680 --> 00:27:20,200
Speaker 1: about Jeff McNeil's hamstring injuries ended for an m R

463
00:27:20,200 --> 00:27:23,439
Speaker 1: I McNeil batting three twenty seven Stanley cupt Final at

464
00:27:23,480 --> 00:27:26,359
Speaker 1: Tampa Bay. The Lightning bounced back from that seven nothing

465
00:27:26,440 --> 00:27:28,840
Speaker 1: loss in Game two. They scored four time second period

466
00:27:28,920 --> 00:27:31,879
Speaker 1: in Colorado six to two. Six different goal scores the

467
00:27:31,960 --> 00:27:34,560
Speaker 1: as now LEASA series to one. A report in The

468
00:27:34,600 --> 00:27:37,080
Speaker 1: Athletic that there is an impact between the Nets and

469
00:27:37,240 --> 00:27:39,480
Speaker 1: Kyrie Irving the writing on the wall with comments by

470
00:27:39,560 --> 00:27:42,399
Speaker 1: next GM Shawn Marks said he wants players who are

471
00:27:42,520 --> 00:27:45,920
Speaker 1: selfless and available. That's not Kyrie, who thinks he and

472
00:27:46,040 --> 00:27:48,440
Speaker 1: Kevin Durant should have a managerial role with the team.

473
00:27:48,480 --> 00:27:51,720
Speaker 1: If Irving rejects his thirty seven million dollar option he

474
00:27:51,840 --> 00:27:55,280
Speaker 1: becomes a free agent. John stash Award, Bloomberg Sports Nathan,

475
00:27:55,480 --> 00:27:57,600
Speaker 1: Thank you John. It's five thirty seven on Wall Street

476
00:27:57,640 --> 00:28:00,080
Speaker 1: time for the Tri State Business Report. Here's Bloomberg that

477
00:28:00,240 --> 00:28:03,040
Speaker 1: Corey narrowing down. The search for a place to live

478
00:28:03,080 --> 00:28:05,840
Speaker 1: in New Jersey's biggest city just got a little easier

479
00:28:06,320 --> 00:28:10,640
Speaker 1: thanks to Newark's news search engine. It's for potential buyers, renters,

480
00:28:10,800 --> 00:28:14,439
Speaker 1: or short term renters. Searches can be filtered by price, region,

481
00:28:14,520 --> 00:28:19,840
Speaker 1: locality to public transportation, or other criteria. Connecticut officials say

482
00:28:19,920 --> 00:28:23,000
Speaker 1: the state will end its fiscal year June with an

483
00:28:23,040 --> 00:28:27,080
Speaker 1: additional eighties six million dollar budget surplus. That's more than

484
00:28:27,200 --> 00:28:30,040
Speaker 1: had been projected just a month ago. The money means

485
00:28:30,119 --> 00:28:32,280
Speaker 1: the state can make a three point seven billion dollar

486
00:28:32,359 --> 00:28:36,560
Speaker 1: payment to reduce unfunded liabilities, according to the Governor's budget Director.

487
00:28:37,000 --> 00:28:39,320
Speaker 1: H and M is hosting a pop up hotel. The

488
00:28:39,400 --> 00:28:44,160
Speaker 1: retailer is unveiling the hotel Headings NYC in Manhattan's Lower

489
00:28:44,240 --> 00:28:47,400
Speaker 1: East Side for three days beginning Thursday. Guests will be

490
00:28:47,480 --> 00:28:50,520
Speaker 1: able to access the space via Freeman's Alley. It will

491
00:28:50,560 --> 00:28:53,600
Speaker 1: be open at three Freeman Alley on Thursday through Saturday

492
00:28:53,840 --> 00:28:57,440
Speaker 1: to to nine pm. That's your Bloomberg Trying State Business Report.

493
00:28:57,560 --> 00:29:01,320
Speaker 1: I'm ind Corey wall Street. Bloomberg Radio is on the

494
00:29:01,360 --> 00:29:04,040
Speaker 1: air from San Francisco to New York, London to Hong Kong.

495
00:29:04,120 --> 00:29:05,840
Speaker 1: Let's check in with our global news team for some

496
00:29:05,960 --> 00:29:07,960
Speaker 1: of the top stories heard on our three hundred affiliate

497
00:29:08,040 --> 00:29:14,000
Speaker 1: radio stations around the world. I'm Steve PODASCT TED Ted

498
00:29:14,080 --> 00:29:16,840
Speaker 1: Wins in New York. We're talking about Jet Blue once

499
00:29:16,920 --> 00:29:22,280
Speaker 1: again raising it's offered who purchased Spirit Airlines. Bernie Donaho

500
00:29:22,440 --> 00:29:25,440
Speaker 1: on k IF THEYD in Omaha, Orio couldn't maker Monda

501
00:29:25,480 --> 00:29:29,320
Speaker 1: leave the buy clip energy Bar. I'm kind kill Love

502
00:29:29,520 --> 00:29:31,840
Speaker 1: David dishital Radio and London. We've been reporting on the

503
00:29:31,880 --> 00:29:34,800
Speaker 1: biggest rail strike in more than thirty years, as some

504
00:29:35,080 --> 00:29:37,840
Speaker 1: forty thousand stuff wook out on the job in a

505
00:29:37,880 --> 00:29:42,400
Speaker 1: dispute over pay. I made Cory w w J and Detroit.

506
00:29:42,640 --> 00:29:45,600
Speaker 1: I'm reporting your news surveys says Kids Paul as Sleeve

507
00:29:45,680 --> 00:29:50,040
Speaker 1: faster in electric vehicles and Gantaloon power and those are

508
00:29:50,080 --> 00:29:53,120
Speaker 1: some of the stories our dred Bloomberg journalists and analysts

509
00:29:53,120 --> 00:29:55,120
Speaker 1: are working on this morning. It's five thirty nine on

510
00:29:55,200 --> 00:29:59,080
Speaker 1: Wall Street. The following is an editorial from Bloomberg Opinion.

511
00:29:59,440 --> 00:30:02,920
Speaker 1: This seventh sial was written by the Bloomberg Editorial Board.

512
00:30:03,360 --> 00:30:07,960
Speaker 1: Over the long weekend, Americans observe their newest federal holiday,

513
00:30:08,160 --> 00:30:12,640
Speaker 1: June team, also known as Emancipation Day. The name blends

514
00:30:12,800 --> 00:30:17,080
Speaker 1: June and nine, the date in eighteen sixty five when

515
00:30:17,280 --> 00:30:21,360
Speaker 1: Union soldiers arrived in Texas and declare that those in

516
00:30:21,560 --> 00:30:25,640
Speaker 1: bondage were now free. June teenth is a celebration of

517
00:30:25,680 --> 00:30:29,480
Speaker 1: America's early efforts to right a tragic wrong, but it

518
00:30:29,600 --> 00:30:34,040
Speaker 1: also challenges the nation to confront the unfinished business arising

519
00:30:34,160 --> 00:30:38,200
Speaker 1: from its original sin. In effect, the holiday asks Americans

520
00:30:38,360 --> 00:30:44,320
Speaker 1: to reconcile their national aspirations with the reality of persistent inequities.

521
00:30:44,760 --> 00:30:48,040
Speaker 1: That's an effort that should last year round. So as

522
00:30:48,120 --> 00:30:53,600
Speaker 1: the first federally recognized Juneteenth recedes into memory, Americans should

523
00:30:53,640 --> 00:30:57,960
Speaker 1: recognize that the work of racial justice remains unfinished and

524
00:30:58,120 --> 00:31:01,520
Speaker 1: keep pushing to make the country a more perfect union.

525
00:31:02,000 --> 00:31:05,640
Speaker 1: This editorial was written by the Bloomberg Editorial Board. For

526
00:31:05,760 --> 00:31:08,880
Speaker 1: more Bloomberg Opinion, please go to Bloomberg dot com, slash

527
00:31:09,000 --> 00:31:13,040
Speaker 1: Opinion or Opie I n go on the Bloomberg Terminal.

528
00:31:13,320 --> 00:31:17,080
Speaker 1: This has been Bloomberg Opinion and you are listening to

529
00:31:17,280 --> 00:31:25,160
Speaker 1: Bloomberg Daybreak. Listen for Bloomberg Opinion editorials every weekday at

530
00:31:25,200 --> 00:31:27,800
Speaker 1: this time. Terminal customers can read more at op i

531
00:31:28,040 --> 00:31:30,760
Speaker 1: end go chance for afternoon showers today with a high

532
00:31:30,880 --> 00:31:37,680
Speaker 1: near eighty degrees right now sixty five in Central Park Markets,

533
00:31:37,800 --> 00:31:40,840
Speaker 1: headlines and breaking news twenty four hours a day at

534
00:31:40,880 --> 00:31:44,280
Speaker 1: Bloomberg dot Com, the Bloomberg Business at and at Bloomberg

535
00:31:44,360 --> 00:31:53,440
Speaker 1: Quick Take, This is a Bloomberg Business lash and I'm

536
00:31:53,560 --> 00:31:56,640
Speaker 1: terin Moscow and this updates brought to you by Informatica

537
00:31:56,720 --> 00:31:58,600
Speaker 1: and the Cloud. Your data has the power to do

538
00:31:58,720 --> 00:32:02,040
Speaker 1: the extraordinary. Manage data across any location in the cloud

539
00:32:02,320 --> 00:32:06,360
Speaker 1: for accurate and actionable insights. More at Informatica dot Com.

540
00:32:06,920 --> 00:32:10,120
Speaker 1: Stocks are climbing in Europe and Asia. US stock indix

541
00:32:10,160 --> 00:32:14,440
Speaker 1: futures pointing higher, and treasuries retreating to submit improved investors

542
00:32:14,480 --> 00:32:17,360
Speaker 1: sentiment compared with last week's route in global shares. We

543
00:32:17,480 --> 00:32:20,400
Speaker 1: checked the markets every fifteen minutes throughout the trading day

544
00:32:20,480 --> 00:32:23,720
Speaker 1: on Bloomberg. S and P futures have seventy points this morning.

545
00:32:23,800 --> 00:32:27,520
Speaker 1: Down futures have five hundred nowsday futures have two hundred

546
00:32:27,560 --> 00:32:30,880
Speaker 1: twenty six The decks in Germany's up one point one percent,

547
00:32:31,320 --> 00:32:34,160
Speaker 1: ten year treasury down nine thirty seconds, yell three point

548
00:32:34,240 --> 00:32:36,600
Speaker 1: to five percent. They yield on the two year three

549
00:32:36,640 --> 00:32:39,880
Speaker 1: point one nine percent. Nine Max screwed oils up two

550
00:32:39,920 --> 00:32:42,360
Speaker 1: point one percent, up two dollars twenty nine cents at

551
00:32:42,360 --> 00:32:44,840
Speaker 1: a hundred eleven dollars eighty five cents a barrel. Co

552
00:32:45,040 --> 00:32:46,960
Speaker 1: Max school that it will change at one thousand, eight

553
00:32:47,040 --> 00:32:50,000
Speaker 1: hundred forty dollars thirty cents and ounce the euro one

554
00:32:50,080 --> 00:32:52,760
Speaker 1: point oh five seven four against the dollar British found

555
00:32:52,800 --> 00:32:55,120
Speaker 1: one point to three oh eight and the ends at

556
00:32:55,160 --> 00:32:57,520
Speaker 1: one thirty five point three zero. And look at a

557
00:32:57,560 --> 00:33:01,240
Speaker 1: big cooin this morning. It's higher, up almost four percent

558
00:33:01,400 --> 00:33:05,520
Speaker 1: at twenty one thousand nine dollars. Today we are watching

559
00:33:05,560 --> 00:33:07,960
Speaker 1: for oport on existing home sales at a ten o'clock

560
00:33:08,000 --> 00:33:10,760
Speaker 1: Wall Street time, and that's at Bloomberg Business Flash. Now

561
00:33:10,840 --> 00:33:13,479
Speaker 1: here's Michael Barr with more on what's going on around

562
00:33:13,520 --> 00:33:17,160
Speaker 1: the world. Buckel Karen, thank you very much. Today's January

563
00:33:17,240 --> 00:33:20,040
Speaker 1: six Committee hearing on Capitol Hill will focus on what

564
00:33:20,160 --> 00:33:25,120
Speaker 1: panel members say with former President Trump's unpresidented push to

565
00:33:25,200 --> 00:33:29,560
Speaker 1: get states to reject the election results. Meanwhile, on Fox News,

566
00:33:29,640 --> 00:33:33,000
Speaker 1: former Vice President Pence called January six the Tragic Day

567
00:33:33,480 --> 00:33:37,080
Speaker 1: while blasting Democrats for the hearings. Ukraine's leader has told

568
00:33:37,080 --> 00:33:40,440
Speaker 1: the African Union that the continent has been taken hostage

569
00:33:40,480 --> 00:33:44,440
Speaker 1: in Russia's invasion of Ukraine. President Volodimir's Lensky says it

570
00:33:44,520 --> 00:33:48,840
Speaker 1: comes amid catastrophically rising food prices and baseball. The Yankees

571
00:33:48,880 --> 00:33:51,880
Speaker 1: met in Red Sox one. The Giants lost NHL Stanley

572
00:33:51,920 --> 00:33:54,800
Speaker 1: Cup Final the Lightning one game three over the Avalanche.

573
00:33:55,120 --> 00:33:57,520
Speaker 1: Global News twenty four hours a day on air and

574
00:33:57,760 --> 00:34:01,800
Speaker 1: on Bloomberg Quicktake Power by more event seven hundred journalists

575
00:34:01,800 --> 00:34:04,240
Speaker 1: and analyst in more than a hundred twenty countries. I'm

576
00:34:04,240 --> 00:34:07,360
Speaker 1: Michael Barren. This is Bloomberg, Nathan, Michael. Thank you. It's

577
00:34:07,400 --> 00:34:10,320
Speaker 1: five forty nine on Wall Street Live from the Bloomberg

578
00:34:10,400 --> 00:34:14,319
Speaker 1: Interactive Broker Studios. This is Bloomberg Daybreak. As we get

579
00:34:14,400 --> 00:34:18,040
Speaker 1: ready to jump into a holiday shortened trading week. Let's

580
00:34:18,080 --> 00:34:21,240
Speaker 1: get the perspective this morning from Dennis Gardman, former publisher

581
00:34:21,320 --> 00:34:23,800
Speaker 1: of The Garment Letter, now chairman of the University of

582
00:34:23,880 --> 00:34:27,960
Speaker 1: Akron Endowment Investment Committee, Dennis, Good morning. As Karen mentioned,

583
00:34:28,000 --> 00:34:31,040
Speaker 1: we are seeing a nice surge in risk assets this morning.

584
00:34:31,080 --> 00:34:34,000
Speaker 1: At the same time, we're hearing from a growing number

585
00:34:34,040 --> 00:34:37,680
Speaker 1: of analysts, including now Morgan Stanley, saying this market hasn't

586
00:34:37,760 --> 00:34:40,400
Speaker 1: fully priced in the risk of recession. How do you

587
00:34:40,560 --> 00:34:43,040
Speaker 1: view the market right now? I tend to be with

588
00:34:43,080 --> 00:34:44,960
Speaker 1: the people who think that the market has not fully

589
00:34:45,320 --> 00:34:48,400
Speaker 1: in the possibilities of recession. I think recession is a

590
00:34:48,560 --> 00:34:52,360
Speaker 1: very likely circumstance later this year. But markets get oversold,

591
00:34:52,440 --> 00:34:56,160
Speaker 1: they get overbought, they get oversold. We had probably too

592
00:34:56,239 --> 00:34:59,320
Speaker 1: many people on one side of the market. A competitor

593
00:34:59,360 --> 00:35:01,799
Speaker 1: of yours see and has a great fair and Greed

594
00:35:01,880 --> 00:35:04,880
Speaker 1: index which I watch, and anytime it gets below t

595
00:35:05,239 --> 00:35:09,440
Speaker 1: it's in fearful territory, which she usually get a contrarian bounce.

596
00:35:09,960 --> 00:35:12,600
Speaker 1: And last night I was on Seeing, I was on

597
00:35:12,840 --> 00:35:15,239
Speaker 1: Bloomberg Asia, and I said, we could go up a

598
00:35:15,280 --> 00:35:17,680
Speaker 1: thousand points from the lower last week and still be

599
00:35:17,840 --> 00:35:20,200
Speaker 1: within well within the confines of the bear market. So

600
00:35:20,800 --> 00:35:24,080
Speaker 1: I can think that the bear market continues. I see

601
00:35:24,120 --> 00:35:26,399
Speaker 1: no reason to think that that has changed the fact

602
00:35:26,520 --> 00:35:29,160
Speaker 1: that that will be taking sixty billion dollars worth of

603
00:35:29,560 --> 00:35:33,080
Speaker 1: treasury securities out of circulation, reducing the size of his

604
00:35:33,160 --> 00:35:35,520
Speaker 1: balance sheet over the course of the next several years.

605
00:35:35,640 --> 00:35:38,560
Speaker 1: I think is the instructive circumstance to pay attention to.

606
00:35:38,800 --> 00:35:41,840
Speaker 1: So bounces are to be sold into weaknesses, not to

607
00:35:41,920 --> 00:35:44,080
Speaker 1: be bought. I'm not changing my opinion even slightly, other

608
00:35:44,160 --> 00:35:47,319
Speaker 1: than the fact a little oversold and a little too many,

609
00:35:47,680 --> 00:35:49,319
Speaker 1: far too many people on one side of the boat,

610
00:35:49,640 --> 00:35:51,400
Speaker 1: a little too bearish. What what do we have? A

611
00:35:51,480 --> 00:35:53,640
Speaker 1: ten of the last eleven weeks or lower. We're gonna

612
00:35:53,680 --> 00:35:55,480
Speaker 1: get a bounced and that's all we're gonna get. So

613
00:35:55,719 --> 00:35:58,479
Speaker 1: what has you thinking that the balance sheet is worth

614
00:35:59,080 --> 00:36:02,560
Speaker 1: paying closer atten into? Then the possibility of more aggressive

615
00:36:02,640 --> 00:36:06,640
Speaker 1: rate hikes. We've got the bond market pricing in potentially

616
00:36:06,800 --> 00:36:10,160
Speaker 1: a number of seventy five basis point moves. But why

617
00:36:10,360 --> 00:36:13,200
Speaker 1: is the balance sheet more important to look at? The

618
00:36:13,280 --> 00:36:15,520
Speaker 1: balance sheet is exactly what the Fed does. It is

619
00:36:15,800 --> 00:36:19,200
Speaker 1: by by purchasing treasury securities that injects reserves them directly

620
00:36:19,239 --> 00:36:22,520
Speaker 1: into the system. It's as I've always said, and as

621
00:36:22,719 --> 00:36:26,480
Speaker 1: uh most economists will agree, inflation is always an everywhere

622
00:36:26,480 --> 00:36:29,200
Speaker 1: a monetary phenomenon, in the fact that the monetary phenomenon

623
00:36:29,320 --> 00:36:32,440
Speaker 1: for the past decade has been an aggressive addition from

624
00:36:32,600 --> 00:36:36,440
Speaker 1: to the FED sheet, aggressive the addition of reserves in

625
00:36:36,520 --> 00:36:38,839
Speaker 1: of the banking system. We took the balance sheet from

626
00:36:38,880 --> 00:36:42,080
Speaker 1: nine billion dollars, which is already relatively high, to nine

627
00:36:42,160 --> 00:36:45,600
Speaker 1: trillion dollars, which was breathtaking lee high, and the FED

628
00:36:45,640 --> 00:36:48,000
Speaker 1: has to take that money out of the system slowly

629
00:36:48,600 --> 00:36:51,920
Speaker 1: over time, allowing those trader securities to mature off. I

630
00:36:52,000 --> 00:36:53,600
Speaker 1: hope the FED does not come into the market and

631
00:36:53,640 --> 00:36:55,920
Speaker 1: actually sell treasury securities. I think they'll just let them

632
00:36:55,960 --> 00:36:59,480
Speaker 1: a tour off through through. Uh, just let them a

633
00:36:59,520 --> 00:37:01,440
Speaker 1: tour off, I guess the best way to say it.

634
00:37:01,960 --> 00:37:03,759
Speaker 1: And I pay more attention to the balance sheet than

635
00:37:03,800 --> 00:37:05,080
Speaker 1: I do to the fact that the Fed shall be

636
00:37:05,200 --> 00:37:07,719
Speaker 1: raising the overnight FED funds rate. Let us hope that

637
00:37:07,760 --> 00:37:09,680
Speaker 1: the Fed does not take the overnight Fed funds right

638
00:37:09,719 --> 00:37:11,440
Speaker 1: to to a level that gives us an inversion in

639
00:37:11,520 --> 00:37:14,759
Speaker 1: the yield curve across the entire term structure. I hope

640
00:37:14,800 --> 00:37:16,360
Speaker 1: that that does not occur. If that does, then a

641
00:37:16,400 --> 00:37:20,560
Speaker 1: recession of some study will be almost mandatory. But I

642
00:37:20,640 --> 00:37:23,480
Speaker 1: pay attention to the balance sheet, probably more than other

643
00:37:23,520 --> 00:37:25,560
Speaker 1: people do. And I think that's the proper place to

644
00:37:25,760 --> 00:37:28,080
Speaker 1: have my attention focused for the next several years, to

645
00:37:28,120 --> 00:37:30,800
Speaker 1: be quite honest. So do you take the FED Chairman

646
00:37:30,880 --> 00:37:33,680
Speaker 1: Jerome Pale at his word that he's determined to get

647
00:37:33,760 --> 00:37:36,560
Speaker 1: to that two percent inflation target and if he does,

648
00:37:36,800 --> 00:37:40,320
Speaker 1: what's the impact on markets? You have to take the

649
00:37:40,360 --> 00:37:43,680
Speaker 1: FED chairman at his word. Whether whether he thought or

650
00:37:43,719 --> 00:37:46,200
Speaker 1: not is another thing to be is another story entirely.

651
00:37:46,280 --> 00:37:49,560
Speaker 1: But he has to say that he has no choice.

652
00:37:49,600 --> 00:37:51,680
Speaker 1: He has to maintain that that that their intention is

653
00:37:51,760 --> 00:37:54,880
Speaker 1: to get the inflation ry back percent. Whether they can

654
00:37:54,920 --> 00:37:56,479
Speaker 1: do that or not over the course the next several

655
00:37:56,560 --> 00:37:59,640
Speaker 1: years is another story entirely. I have my doubts completely.

656
00:37:59,680 --> 00:38:01,520
Speaker 1: I think inflation will be with us for some period

657
00:38:01,560 --> 00:38:04,600
Speaker 1: of time. So time shall tell us. But right now

658
00:38:04,719 --> 00:38:09,360
Speaker 1: you have to give the You have to allow expect

659
00:38:09,400 --> 00:38:11,840
Speaker 1: to see the the FED chairman follow through on his

660
00:38:12,280 --> 00:38:15,120
Speaker 1: on his intentions. Well they can actually accomplish that task,

661
00:38:15,640 --> 00:38:18,920
Speaker 1: that's another story. Speaking with Dennis Gartman, the former publisher

662
00:38:18,960 --> 00:38:21,200
Speaker 1: of The Garment Letter now chairman of the University of

663
00:38:21,200 --> 00:38:25,160
Speaker 1: acron Endowment Investment Committee, Dennis, how much is this inflation

664
00:38:25,440 --> 00:38:29,000
Speaker 1: driven by what's happening outside the world of monetary policy.

665
00:38:29,040 --> 00:38:31,360
Speaker 1: I'm thinking about the the war in Ukraine and the

666
00:38:31,440 --> 00:38:36,759
Speaker 1: possibility of prolonged shutdowns potentially from China as they try

667
00:38:36,840 --> 00:38:39,960
Speaker 1: to rein in COVID on that side of the world.

668
00:38:40,239 --> 00:38:43,359
Speaker 1: That we've seen some moves that they might pull back

669
00:38:43,440 --> 00:38:46,000
Speaker 1: on some of their restrictions. But doesn't that feed into

670
00:38:46,080 --> 00:38:49,640
Speaker 1: the inflation we're seeing as well? No question there there's

671
00:38:49,680 --> 00:38:53,520
Speaker 1: certainly I wouldn't say abundant, but certainly there is a

672
00:38:54,480 --> 00:38:57,719
Speaker 1: material impact by by those outside forces. If I had

673
00:38:57,760 --> 00:38:59,919
Speaker 1: to put a percentage on it, I would say seven

674
00:39:00,080 --> 00:39:01,879
Speaker 1: percent of the inflation that we see now is caused

675
00:39:01,920 --> 00:39:06,200
Speaker 1: by monetary policy and is caused by outside influences. Those

676
00:39:06,200 --> 00:39:10,480
Speaker 1: outside influences over time shall so disappear, so too the

677
00:39:10,560 --> 00:39:14,640
Speaker 1: impact of the aggressive monetary edition ease of the past

678
00:39:14,719 --> 00:39:18,480
Speaker 1: a decade or so. But for now, remember inflation follows

679
00:39:19,320 --> 00:39:21,319
Speaker 1: in a delay by one to two in three years.

680
00:39:21,800 --> 00:39:24,920
Speaker 1: The fact that we've had these circumstances prevailing, the fact

681
00:39:24,960 --> 00:39:27,720
Speaker 1: that we've had the monetary authorities being as aggressively easy,

682
00:39:28,680 --> 00:39:30,880
Speaker 1: as aggressively easing natured as they have been for the

683
00:39:30,920 --> 00:39:33,360
Speaker 1: past decade or so that's gonna be with us for

684
00:39:33,360 --> 00:39:36,040
Speaker 1: a period of time going forward. So anybody who thinks

685
00:39:36,080 --> 00:39:37,960
Speaker 1: we're gonna get back to percent inflation in the next

686
00:39:38,040 --> 00:39:40,680
Speaker 1: year or two, I think it's sorely mistaken. Well, if

687
00:39:40,719 --> 00:39:43,840
Speaker 1: we continue in this elevated inflation environment, Dennis, where do

688
00:39:43,960 --> 00:39:46,480
Speaker 1: you put your money in in this kind of bear market?

689
00:39:47,480 --> 00:39:49,080
Speaker 1: Not a bad place to be in cash, not a

690
00:39:49,120 --> 00:39:51,480
Speaker 1: bad place to be in two in five year securities.

691
00:39:52,360 --> 00:39:54,560
Speaker 1: As rates go up, you're gonna get you'll you'll lose

692
00:39:54,600 --> 00:39:56,239
Speaker 1: a little bit of money on them, but the the

693
00:39:56,719 --> 00:40:00,200
Speaker 1: the the coupons that you get will will all set

694
00:40:00,239 --> 00:40:03,080
Speaker 1: that rather dramatically. And as I've said for years, in

695
00:40:03,120 --> 00:40:05,279
Speaker 1: a bear market, here, she who loses the least will

696
00:40:05,280 --> 00:40:07,640
Speaker 1: be the winner. And that's you have to keep that

697
00:40:07,719 --> 00:40:09,640
Speaker 1: in mind. So I think cash and two to five

698
00:40:09,680 --> 00:40:12,839
Speaker 1: year treasuries is absolutely the place to be. I think

699
00:40:12,920 --> 00:40:15,640
Speaker 1: that's that makes eminent sense for the next several years.

700
00:40:15,760 --> 00:40:18,239
Speaker 1: So I hate to say that it's not fun. It's

701
00:40:18,320 --> 00:40:20,960
Speaker 1: much more fun being bullish. Being bullish on stocks is

702
00:40:20,960 --> 00:40:23,920
Speaker 1: always a much more enjoyable circumstance. The ladies are prettier,

703
00:40:23,960 --> 00:40:27,279
Speaker 1: the music is the better, the champagne is cold and

704
00:40:27,400 --> 00:40:31,240
Speaker 1: in in bear markets, the dress has become a little tattered.

705
00:40:31,280 --> 00:40:34,839
Speaker 1: In the champagne turns damp, turns neutral, and in less

706
00:40:34,880 --> 00:40:38,279
Speaker 1: than enthusiastics. So it's a bear market selling to the

707
00:40:38,360 --> 00:40:42,440
Speaker 1: rallies don't buy. Why do you think gold hasn't reacted

708
00:40:42,760 --> 00:40:45,160
Speaker 1: as much as an inflation hedge that has in the past.

709
00:40:45,239 --> 00:40:48,080
Speaker 1: We're looking at gold right now around an eighteen hundred handle.

710
00:40:48,960 --> 00:40:50,759
Speaker 1: I'm a little surprised by that, to be quite honest,

711
00:40:50,800 --> 00:40:52,560
Speaker 1: I would have thought gold would be closer to two

712
00:40:52,560 --> 00:40:54,840
Speaker 1: thousand dollars announced rather than the eighteen hundred dollars. But

713
00:40:54,960 --> 00:40:58,120
Speaker 1: perhaps at the margin, you you've got the gold competing

714
00:40:58,200 --> 00:41:00,759
Speaker 1: with the bitcoin at all, and the other risk of

715
00:41:00,800 --> 00:41:02,600
Speaker 1: the crypto universe. I think some of the money that

716
00:41:02,640 --> 00:41:04,319
Speaker 1: would have gone in the gold market has gone over

717
00:41:04,400 --> 00:41:07,920
Speaker 1: there eventually with the crypto. I think under real pressure,

718
00:41:08,280 --> 00:41:10,880
Speaker 1: and I think gonna be maintained under pressure, and I

719
00:41:10,920 --> 00:41:12,920
Speaker 1: think Bitcoin goes a lot lower than where it is

720
00:41:13,040 --> 00:41:15,879
Speaker 1: right now at the margin, probably will move into gold.

721
00:41:15,920 --> 00:41:17,440
Speaker 1: But I am I will have to admit, I am

722
00:41:17,480 --> 00:41:19,439
Speaker 1: so much surprised that goal is trading in eighteen forty

723
00:41:19,480 --> 00:41:22,560
Speaker 1: instead of in our last minute here Dennis, Of course,

724
00:41:22,800 --> 00:41:24,839
Speaker 1: Chairman pal is going to be appearing on Capitol Hill

725
00:41:24,920 --> 00:41:26,759
Speaker 1: tomorrow and the next day. What are you going to

726
00:41:26,800 --> 00:41:28,800
Speaker 1: be listening for from the chairman? Do you think his

727
00:41:29,880 --> 00:41:32,719
Speaker 1: his remarks will have any impact on markets? I think

728
00:41:32,760 --> 00:41:34,840
Speaker 1: the market has already understood what the what what the

729
00:41:34,920 --> 00:41:37,239
Speaker 1: chairman has said. He his press conference and his press

730
00:41:37,280 --> 00:41:39,279
Speaker 1: releases last week tell us what he's going to talk about.

731
00:41:39,560 --> 00:41:42,000
Speaker 1: He'll talk about the fact that the Fed probably will

732
00:41:42,040 --> 00:41:44,880
Speaker 1: tighten monetary policy a bid for the next two or

733
00:41:44,960 --> 00:41:49,280
Speaker 1: three or four f o MC meetings that he can expect.

734
00:41:49,360 --> 00:41:51,440
Speaker 1: He'll he'll talk about the fact that seventy five basis

735
00:41:51,480 --> 00:41:54,880
Speaker 1: points is probably a given given in the July f

736
00:41:54,960 --> 00:41:57,600
Speaker 1: o MC meeting, and maybe some reduction from there on.

737
00:41:57,760 --> 00:42:01,080
Speaker 1: But the he'll he'll be he'll be talking, in fact,

738
00:42:01,120 --> 00:42:03,759
Speaker 1: if their intention is to get two percent inflation. Whether

739
00:42:03,800 --> 00:42:05,680
Speaker 1: the market believes it or not is another story for

740
00:42:05,719 --> 00:42:09,000
Speaker 1: another time. As always, Dennis, great to get your insights.

741
00:42:09,080 --> 00:42:11,840
Speaker 1: Thanks for being with us. Dennis Gartman, former publisher of

742
00:42:11,880 --> 00:42:14,400
Speaker 1: the Gartment Letter, now chairman of the University of Akron

743
00:42:14,719 --> 00:42:18,920
Speaker 1: Endowment Investment Committee. This morning, futures are moving higher after

744
00:42:19,000 --> 00:42:21,200
Speaker 1: the route from last week. We have SMP futures up

745
00:42:21,280 --> 00:42:24,080
Speaker 1: sixty five points down, futures of four hundred seventy nine,

746
00:42:24,160 --> 00:42:28,040
Speaker 1: NASDAK futures higher by two hundred six points ten. Your

747
00:42:28,080 --> 00:42:30,640
Speaker 1: treasury right now is down eleven thirty seconds. The yield

748
00:42:30,680 --> 00:42:33,200
Speaker 1: three point to six almost three point to seven percent,

749
00:42:33,320 --> 00:42:36,200
Speaker 1: yield on the two years three point two zero percent.

750
00:42:36,640 --> 00:42:39,720
Speaker 1: Nimex crewed up two point one percent to a hundred

751
00:42:39,760 --> 00:42:42,040
Speaker 1: eleven dollars eighty five cents of barrel and comex gold

752
00:42:42,080 --> 00:42:46,959
Speaker 1: little changed down to dollar eighty for announce of gold.

753
00:42:47,400 --> 00:42:49,840
Speaker 1: Bloomberg day break continues. This is Bloomberg