Speaker 1: Live from the Bloomberg Interactive Brooker Studios. Is this Bloomberg
Speaker 1: day Break for Tuesday, June one. Coming up this hour,
Speaker 1: stock future surge as we begin this holiday short and
Speaker 1: trading week. We speak exclusively with Elon Musk about Twitter,
Speaker 1: Tesla and politics. More calls this morning for a US recession.
Speaker 1: I'm all street races for congressional testimony this week from
Speaker 1: FED Chair J Powell. New York passes landmark voting rights legislation.
Speaker 1: Plus it's day four of January six hearings Michael Barr.
Speaker 1: More ahead, I'm John Stair showering sports who They're near
Speaker 1: no hitter for the Yankees, they get their fiftieth win,
Speaker 1: shut out win for the Mats, Tampa Baby Colorado in
Speaker 1: the Stanley Cup Final. That's all trendy ahead on Bloomberg
Speaker 1: day Break on Bloomberg eleven three, on New York, Bloomberg one, Washington,
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties,
Speaker 1: and Francisco Sirius x M one nineteen and around the
Speaker 1: world on Bloomberg Radio dot Com and via the Bloomberg
Speaker 1: Business App. Good morning, I'm Nathan Hager, and I'm Karen
Speaker 1: Moscow and US DOT Index futures on the rise this morning.
Speaker 1: We're coming up to five o one on Wall Street,
Speaker 1: and we checked the markets every fifteen minutes throughout the
Speaker 1: trading day on bloomberg S and P futures up seventy
Speaker 1: two points down futures of five eight and nasday features
Speaker 1: of two hundred forty and the ten year treasury down
Speaker 1: ten thirty seconds. You have three point to six percent.
Speaker 1: They yield on the two year three point to zero percent,
Speaker 1: Nathan Karen. We begin this morning with an exclusive interview
Speaker 1: with Elon Musk at the Cutter Economic Forum. The Testas
Speaker 1: CEO sat down for a wide ranging conversation with Bloomberg
Speaker 1: News editor in chief John Michael Thwaite. They discussed everything
Speaker 1: from the economy to politics, and of course, Elon Musk's
Speaker 1: proposed acquisition of Twitter. They're still um a few results
Speaker 1: matters you've you've probably read about. The question is whether
Speaker 1: the number of fake and spam users on the system
Speaker 1: is best than five the center as for claims, which
Speaker 1: I think is probably not most people's experience on we're
Speaker 1: using Twitter. UM, so we're still awaiting resolution on that matter. UM.
Speaker 1: And that that is a very significant matter um. So
Speaker 1: we're a waiting resolution on that um. And then of
Speaker 1: course there is the question of will the dead portion
Speaker 1: of the round come together, and then will the sharehold
Speaker 1: discoge in favors Elon Musk, speaking with Bloomberg from the
Speaker 1: Counter Economic Forum in Doha, the Tesla CEO also spoke
Speaker 1: about politics, cryptocurrencies, and the future of Tesla. Stay tuned
Speaker 1: for more of that exclusive interview coming up shortly on
Speaker 1: Bloomberg Daybreak. Well, Nathan, futures are higher as we begin
Speaker 1: a shortened holiday trading way. The rally comes after nearly
Speaker 1: two trillion dollars in market value as a race from
Speaker 1: the SNP five last week. There could be more losses ahead,
Speaker 1: according to Morgan Stanley and Goldman Sachs. Morgan Stanley's Michael
Speaker 1: Wilson says stocks need to drop another fifty for the
Speaker 1: market to fully reflect the scale of economic contraction. Perhaps
Speaker 1: the biggest event for markets this week, Karen, will be
Speaker 1: Congressional testimony from j Powell. The Fed share delivers the
Speaker 1: Central Bank semi annual report on Monetary policy tomorrow. Bloomberg's
Speaker 1: Vinny Dell Judas reports Powell tell Congress the FEDS commitment
Speaker 1: to battling the worst inflation in forty years is unconditional,
Speaker 1: just days after launching the largest FED interest rate increase
Speaker 1: in twenty years, and advanced text of the FEDS report
Speaker 1: to lawmakers says it's committed at doing what's needed to
Speaker 1: get the job done and that price stability is necessary
Speaker 1: to support a strong US labor market. Powell will testify
Speaker 1: to the Senate Banking Committee on Wednesday and the House
Speaker 1: Financial Services Committee on Thursday. Benny Dell, Judai Sploomberg Day Break,
Speaker 1: All right, Vinnie, thank you. There are more calls and
Speaker 1: an impending recession this morning with the leaders live round
Speaker 1: Bloomberg's re Anita Young, Good morning, Rinia, Good morning. Hearn
Speaker 1: Elon Musk, Norio Robini, and Goldman Sax are now warning
Speaker 1: that the US economy could fall into a recession, while
Speaker 1: Musk predicts it happening sometime in the near future. Goldman
Speaker 1: sachs now sees a thirty percent chance of a recession
Speaker 1: over the next year. That's up from fift percent previously,
Speaker 1: and a twenty five percent chance of entering a recession
Speaker 1: in the second year if one is avoided in the first.
Speaker 1: Robini sees the US is procession by the end of
Speaker 1: this year by getting Robini Macro Associate CEO Norio Robini
Speaker 1: says the economy is expecting experiencing a number of negative
Speaker 1: aggregate supply shocks. Live in New York. I'm Nita Young
Speaker 1: Bloomberg day Break. Okay, Nita, thank you all. President Biden's
Speaker 1: pushing back on those calls for recession. Summers a swarming,
Speaker 1: and h there's nothing recession. President Biden's with reporters in
Speaker 1: Delaware yesterday. He was referring to former Treasury secretary and
Speaker 1: current Bloomberg contributor Larry Summers. Meantime, President Biden says he
Speaker 1: is aiming to decide this week whether to suspend the
Speaker 1: federal gasoline tax, and Bloomberg said Baxter has the story.
Speaker 1: The President is being careful at this point, saying he
Speaker 1: is looking for more data, but sounds confident hope that
Speaker 1: I'm looking for. He and his administration are trying to
Speaker 1: find ways to ease the staring prices at the pump,
Speaker 1: and his Treasury Secretary Janet Yellen, also sounds like she
Speaker 1: likes the idea. I think, well, I'm not perfect, it
Speaker 1: is something that should be under under consideration. So consideration
Speaker 1: it is, and we should have an answer by the
Speaker 1: end of the week. In San Francisco, I'm at Baxter
Speaker 1: Bloomberg Gay break all right and thank you. And Secretary
Speaker 1: Yellen says another way to lower gas prices could involve
Speaker 1: Russian oil exports. We are talking about price caps or
Speaker 1: a price exception that would enhance and strengthen recent and
Speaker 1: proposed energy restrictions by Europe, the United States, the UK
Speaker 1: and others that would push down the price of Russian
Speaker 1: oil and to press Putin's revenues while allowing more oil
Speaker 1: supply to reach the global market. Treasury Secretary Janet Yelling
Speaker 1: made those comments during a press conference in Toronto alongside
Speaker 1: Canadian Finance Minister Christiff Freeland, the CEO of Exxon Mobiles.
Speaker 1: As global oil markets may remain tight for another three
Speaker 1: to five years, largely because of a lack of investment
Speaker 1: since the pandemic began, Darren Woods says it'll take time
Speaker 1: for oil firms to catch up to ensure there's enough supply.
Speaker 1: Thoughtful conversations about investments across that whole portfolio of solution
Speaker 1: sets needed to provide affordable and reliatable energy while reducing
Speaker 1: emissions is the path forward. Ex Mobiles CEO Darren Woods
Speaker 1: made the comments at the Cutter Economic Forum in Doha
Speaker 1: and on the M and A front this morning. Here
Speaker 1: in the battle over Spirit Airlines is taking off. Jet
Speaker 1: Blue is raising its offer to buy the bargain carrier,
Speaker 1: valuing Spirit at about three point seven billion dollars, and
Speaker 1: follow Spirits decision to delay a shareholder vote on its
Speaker 1: pending deal with Frontier Airlines. That vote is set for
Speaker 1: June and futures are higher. Straight ahead your latest local
Speaker 1: headlines plus such check of sports and this is Bloomberg
Speaker 1: Oak Care. Thank you. This five oh seven on Wall
Speaker 1: Street where sixty five degrees in Central Park picking up
Speaker 1: some voting. Construction on the northbound New Jersey Turnpike's in
Speaker 1: the truck lane s hearings at six. Look at the
Speaker 1: details in traffic just a few minutes. First, you gotta
Speaker 1: bring in Michael Barr for a look at what else
Speaker 1: is going on in New York and around the world
Speaker 1: this morning. Good morning, Michael, Good morning Nathan, New York's governor,
Speaker 1: signed a law intended to prevent local officials from enacting
Speaker 1: rules that might suppress people's voting rights because of their race.
Speaker 1: The John R. Lewis Voting Rights Act is named after
Speaker 1: the late civil rights activists who represented Georgia in the
Speaker 1: US House. Governor Kathy Ocle Across the country, we're seeing
Speaker 1: stricter voter I D laws, short early voting periods, and
Speaker 1: more burdens when you're trying to just vote by mail.
Speaker 1: We're seeing people pursed on voter rolls. Governor hokel says
Speaker 1: We're going to change our election laws so we no
Speaker 1: longer hurt minority communities. The House January six committee is
Speaker 1: set to hear from local officials who fended off Donald
Speaker 1: Trump's pressure to overturn the presidential election. Representative Adam Schiff
Speaker 1: is set to lead today's hearing. He told CNN that
Speaker 1: Trump campaign's plans unsuccessfully dependent on hopes that state legislators
Speaker 1: would approved the Big Lie. When they didn't, Trump turned
Speaker 1: to pressuring state officials will show evidence of the President's
Speaker 1: involvement in the scheme. Representative Shift and the panel. Today
Speaker 1: we'll hear testimony from Georgia's Secretary of State Brad Raffensberger
Speaker 1: about Trump's call asking him to find over eleven thousand
Speaker 1: votes to prevent Joe Biden's election victory. That testimony is
Speaker 1: expected to include death threats they received. Alabama's Republican primary
Speaker 1: is today. Congressman Moe Brooks lost the former president's endorsement
Speaker 1: in part for saying that it was time to move
Speaker 1: on from the election. Trump then chose to back Katie
Speaker 1: Britt of the states conducting elections today our Virginia and Georgia.
Speaker 1: And out of control New York City cab on a
Speaker 1: Manhattan street struck a bicyclists and ten two other Ohio
Speaker 1: tourists to a wall on the sidewalk. It happened yesterday
Speaker 1: at twenty ninth Street and Broadway. Good Samaritans rushed the
Speaker 1: scene to free them and treat their injuries, including two
Speaker 1: women pinned against the building by the taxi. Deputy Police
Speaker 1: Chief John Chell about fifteen, it's one in New York
Speaker 1: has attempted to pick this cab walf these women okay.
Speaker 1: In total, we have six victims at the hospital, including
Speaker 1: the cab driver, Deputy police Chief. Channel Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quick Tank,
Speaker 1: powered by more than hundred journalists and analysts. More than
Speaker 1: a hundred twenty countries. Michael Bard, this is Bloomberg Na.
Speaker 1: Thank you, Michael. We're coming out to five ten on
Speaker 1: Wall Street. Time for the Bloomberg Sports Updateke and Morney
Speaker 1: Johnston Show, Good Morning, eighth and Yankees up to fifty
Speaker 1: wins on the air and four of them. A Yankees
Speaker 1: starter has flirted with a no hitter once with Dester Cortez,
Speaker 1: also Jammes and Tyona Now twice with Garrett Cole on
Speaker 1: the mount he lost to no whether the clean single
Speaker 1: up the middle leading off the Tampa Bay eighth. Then
Speaker 1: he Clay Holmes came in having not a lot of
Speaker 1: runs of the opening day. The Rays got to him too.
Speaker 1: It's in a walk. They scored twice in the eighth
Speaker 1: to tie the game. Yanks then scored twice in the ninth.
Speaker 1: Darreon Hicks the Big get a triple in Aaron Boone's
Speaker 1: team won four to two. They put a couple of
Speaker 1: balls and play on us. You were able to tie
Speaker 1: the game, and it's it's it's right back there. Let's
Speaker 1: go find a way to get this thing done. And um,
Speaker 1: you know we talked about keep playing. You know there's
Speaker 1: things that happen over the course of the game, over
Speaker 1: the course of the season that are you know, sometimes
Speaker 1: out of your control. You gotta just keep playing rais
Speaker 1: or slumping. They've lost six of seven. The Red Socks
Speaker 1: have moved ahead of them into third in the Al East.
Speaker 1: Matt Mayan City Field easy went to the Mats six
Speaker 1: and nothing over the Marlins. Three hits, the branded Nimo
Speaker 1: three rb I s for at ward O Escu Bar
Speaker 1: David Peterson got the win of the Mets win another series.
Speaker 1: They have played twenty one series, they only lost three
Speaker 1: of them. Atlanta won the main five and a half
Speaker 1: games behind them. Met Home Ice has met a lot
Speaker 1: throughout the Stanley Cup laffs that was through for the
Speaker 1: Rangers and now in the Cup final though Home teams
Speaker 1: three and O Colorado one in overtime, then seven nothing
Speaker 1: but Tampa Bay one last night six to two in
Speaker 1: the lightning of one. Eight in a row at home.
Speaker 1: Game four is tomorrow. The Athletic reports Kyrie Irving likely
Speaker 1: to turn down his thirty seven million dollar option with
Speaker 1: the Nets, become a free agent, and that the Knicks
Speaker 1: could be interested at John Stash Hallard Bloomberg Sport. All right, John,
Speaker 1: thanks future surging as we started holiday short and trading week.
Speaker 1: Right now, S and P futures are up seventy one
Speaker 1: points down, futures up five hundred fifteen. NASA futures are
Speaker 1: higher by turn to thirty eight points. The tenure treasury
Speaker 1: is down ten thirty seconds, yield three point to six percent.
Speaker 1: You're listening to Bloomberg Taper Bloomberg eleven three oh weather
Speaker 1: increasing clouds, chance for afternoon showers today with a high
Speaker 1: near eighty degrees. Showers and storms possible tomorrow low seventies
Speaker 1: camber let the shower risk on Thursday either right now
Speaker 1: sixty five and clear in Central Park Markets. Headlines and
Speaker 1: breaking new twenty four hours a day at Bloomberg dot Com,
Speaker 1: the Bloomberg Business Outland at Bloomberg Quick Tape. This is
Speaker 1: a Bloomberg Business flash. Yeah, and I'm Karin Moscow. This
Speaker 1: update brought to you by Informatica. On the Cloud, your
Speaker 1: data has the power to do the extraordinary. Managed data
Speaker 1: across any location in the cloud for accurate and actionable insights.
Speaker 1: More at Informatica dot Com. SMP future is on the
Speaker 1: rise this morning at seventy points down, futures up five
Speaker 1: hundred one and Nasday features up two hundred thirty four penniear,
Speaker 1: Treasury down on thirty second, and seal three point to
Speaker 1: six percent yield on a two year three point one
Speaker 1: As a Bloomberg Business Flash. Now here's Michael Barr with
Speaker 1: more on what's going on around the world. Michael, good morning,
Speaker 1: Good morning. Karen Aids to the January six committees say
Speaker 1: today's public hearing will focus on efforts by former President
Speaker 1: Trump and his allies the pressures state level officials to
Speaker 1: overturn the results of the presidential election. President Joe Biden
Speaker 1: said he is aiming to decide this week whether to
Speaker 1: move to suspend the federal gas tax and a bid
Speaker 1: to ease the impact of sewing prices at the pump.
Speaker 1: In baseball, the Yankees and Mets one. Other winners include
Speaker 1: the Red Sox, the Giants lost in the NHL Stanley
Speaker 1: Cup Final, the Lightning one game three over the Avalanche.
Speaker 1: Six to Global News twenty four hours a day on
Speaker 1: air and on Bloomberg Quick Take, powered by more than
Speaker 1: twenty seven hundred journalists and analysts in more than one
Speaker 1: twenty countries. How Michael Barr and this is Bloomberg. Nathan, Okay, Michael,
Speaker 1: thank you. It's almost five nineteen on Wall Street Live
Speaker 1: from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak,
Speaker 1: and this morning we bring you a special interview with
Speaker 1: Elon Musk. The Tesla CEO, talked about the unresolved matters
Speaker 1: in his pursuit of Twitter and why he thinks a
Speaker 1: recession in the United States is likely. Elon Musk spoke
Speaker 1: with Bloomberg's editor in chief John michaels Waite from the
Speaker 1: Cutter Economic Forum in Doha, powered by Bloomberg. Let's begin
Speaker 1: with Twitter, and I suppose my question for you is
Speaker 1: what is the status of the forty four billion deal?
Speaker 1: Forty four billion dollar deal to buy the company? If
Speaker 1: you look at the deal spreads at the moment, the
Speaker 1: investors seem to be betting that it won't happen, I suppose.
Speaker 1: And right here you have the Qataris who amongst your backers? Um,
Speaker 1: what are you getting to say to them and to us?
Speaker 1: First of all, I'd like to say, um, uh, your Highness,
Speaker 1: who excellency isn't distinguished guests, thank you very much for
Speaker 1: hosting you virtually. Um, it's not to be here or
Speaker 1: be there by really UM, and I actually wish I
Speaker 1: could be there in person. So with respect to that
Speaker 1: the Twitter transaction, there's a limit to what I can
Speaker 1: say publicly given that is um somewhat of a sensitive matter. UM.
Speaker 1: So I would like to be measured in my responses here, UM,
Speaker 1: such as not to generate incremental lawsuits. UM. That seems
Speaker 1: to be a risk you sometimes managed to overcome. Yes,
Speaker 1: deposition minimization is I think important? UM, have you have
Speaker 1: has have Twitter given you enough information? There are still
Speaker 1: um a few unresolved matters you've You've probably read about
Speaker 1: the question as to whether the number of fake and
Speaker 1: spam users on the system is best than five the
Speaker 1: center as Twitter claims, UM, which I think is probably
Speaker 1: not most people's experience on when using Twitter. UM. So
Speaker 1: we're still waiting resolution on that matter. UM. And that
Speaker 1: that is a very significant matter. UM. So we're a
Speaker 1: waiting resolution on that. UM. And then of course there
Speaker 1: is the question of will the dead portion of the
Speaker 1: round come together? And then will the shareholds authority in favor?
Speaker 1: So I think those are the three things that UM
Speaker 1: standard Uh, you know, if that needs to be resolved
Speaker 1: before the transaction can complete. What about the general state
Speaker 1: of the economy does that weigh on you when you
Speaker 1: think about this? I mean, you just described it. You
Speaker 1: have a super bad feeling about the economy. Are you
Speaker 1: still in that position? I just said to you earlier,
Speaker 1: Joe Biden has just come out and said that a
Speaker 1: recession in America is not inevitable. How do you feel
Speaker 1: about the economy. I think the recession is inevitable at
Speaker 1: some point. As to whether there is a reception in
Speaker 1: the near term, I think that it's more likely than not.
Speaker 1: It's not a certainty, but it appears more likely than not.
Speaker 1: What do you think? I'm I'm I'm with you. I
Speaker 1: agree with you, and I think it's more likely. Can
Speaker 1: I ask you what a particular thing to do with
Speaker 1: the Twitter bid, which is you know you are one
Speaker 1: of the biggest and fastest growing investors in China Tesla.
Speaker 1: You've talked about it being a third of your sales
Speaker 1: going forward. You're not buying Twitter the kind of public
Speaker 1: forum for free speech. The Chinese historically don't tend to
Speaker 1: be very enthusiastic about free speech. Are you worried about
Speaker 1: whether you can keep those two particular horses running. Is
Speaker 1: buying Twitter going to get you in trouble with the Chinese?
Speaker 1: Twitter does not operate in UM. And I think China
Speaker 1: does not attempt to interview interfere with the free speech
Speaker 1: of the of the press in the US as fright
Speaker 1: as I know, because I assume you're not under pressure
Speaker 1: to Ed Bloomberg to UH from China. So I think
Speaker 1: there's UM, I don't think it's gonna be an issue.
Speaker 1: And in terms generally of that issue of freedom and
Speaker 1: speech and Twitter, you've talked about Twitter being making it
Speaker 1: even freer and letting more people onto it. Is there
Speaker 1: a limit at all to to who you think should
Speaker 1: be allowed onto Twitter. My aspiration for Twitter, or in
Speaker 1: general for the digital town square would be that it
Speaker 1: is as inclusive in the water assess the word as possible,
Speaker 1: UM that it is. It is an appealing a system
Speaker 1: for years, UM. So I mean, ideally I'd like to
Speaker 1: get like eight of UH that's in North America and
Speaker 1: perhaps I don't know half the world or something ultimately
Speaker 1: on on Twitter in one form or another, and that
Speaker 1: needs that means it must be something that is appealing
Speaker 1: to people. It obviously cannot be a place where they
Speaker 1: feel uncomfortable or harassed um or they'll somethly not use it.
Speaker 1: So um. And I think there's there's a big difference
Speaker 1: between freedom and speech and freedom of reach um. And
Speaker 1: that one can obviously, let's say and I say, it's
Speaker 1: go in the middle of the time square and pretty
Speaker 1: much yell anything you want. And you know you'll you'll
Speaker 1: annoy the people around you. But but you're you're you're
Speaker 1: kind of allowed to just sort of yell whatever you
Speaker 1: want to in in a crowded public place more or
Speaker 1: less apart from this is this is a robbery probably
Speaker 1: that would get you in trouble um. So uh. But
Speaker 1: but then that that whatever you say, how the controversial,
Speaker 1: does not need to then be broadcast to the whole country.
Speaker 1: So I think generally the approach of Twitter should be
Speaker 1: to let people say what they want to do within
Speaker 1: the bounds flow, but then limit the you know who
Speaker 1: sees that based on the uh. Any given Twitter uses preferences.
Speaker 1: So if your preferences are to day on the news,
Speaker 1: you need to know at this hour US future is
Speaker 1: surging this morning last week to trillion dollars in market value,
Speaker 1: erased from the SNP five This week, Marcus react to
Speaker 1: congressional testimony from then chair J Powell, who delivers the
Speaker 1: Central Banks semi annual Report on Monetary Policy tomorrow. Well
Speaker 1: ahead of that, Karen Calls for a pending recession in
Speaker 1: the US are growing louder. Bloomberg's Rnita Young joins US
Speaker 1: Live with the details. Good morning, Granita, Good morning. Nathan.
Speaker 1: Elon Musk and Goldman Sachs are the latest to ward
Speaker 1: that the US economy could fall into a recession. While
Speaker 1: Musk predicted happening sometime in the near future, Golden Sacks
Speaker 1: now he's a thirty percent chance of entering a recession
Speaker 1: over the next year. That's up from previously. Robini Macro
Speaker 1: Associate CEO Mario Robini expects the US recession by the
Speaker 1: end of this year and says the economy is experiencing
Speaker 1: a number of negative aggregate supply shocks. Live in New York,
Speaker 1: I'm rened a Young Bloomberg daybreak right. We need to
Speaker 1: thank you well. Over the weekend at Delaware, President Biden
Speaker 1: pushed back on those recession calls. He said a contraction
Speaker 1: is not inevitable. Following a conversation with former Treasury Secretary
Speaker 1: and current Bloomberg contributor Larry Summers. I think overall the
Speaker 1: picture is still a very stretched uh economy. And Summers
Speaker 1: made the remarks on Bloomberg's Wall Street Week with David
Speaker 1: Weston Catch the program every weekend on Bloomberg Radio and television.
Speaker 1: Those prices rise at the gas pump. Karen, President Biden's
Speaker 1: deciding whether to suspend the federal gasoline tax. I hope
Speaker 1: every that are looking for by the President. Biden says
Speaker 1: he is looking for more data ahead of the decision,
Speaker 1: which he expects will come later on this week. Treasury
Speaker 1: Secretary Janet Yellen says she also supports the idea. Meantime,
Speaker 1: Nathan ex On Mobile says global oil markets may remain
Speaker 1: tight for another three to five years. CEO Darren Woods
Speaker 1: made the comments if the Cutter Economic Forum, saying it's
Speaker 1: largely due to a lack of investment since the pandemic began.
Speaker 1: And we have some m and A news to pass
Speaker 1: along this morning. Karen, Jet Blue is raising its offer
Speaker 1: to buy bargain carrier Spirit Airlines. The new bid values
Speaker 1: the company at about three point seven billion dollars. Well,
Speaker 1: we take a look at futures this morning as they
Speaker 1: are jumping, SMP futures up seventy points to down, futures
Speaker 1: up five hundred eight and nastag features up two hundred
Speaker 1: twenty eight. The decks in Germany's up one point one percent.
Speaker 1: Ten year treasury down ten thirty seconds. He had three
Speaker 1: to six percent, and they yield on the two year
Speaker 1: at three point to zero percent nine nights. Screwed oil
Speaker 1: is higher up two point one percent, up two dollars
Speaker 1: twenty nine cents at a hundred eleven dollars. Eighty five
Speaker 1: cents of barrel comics. Gold is little change at one
Speaker 1: eight hundred thirty nine dollars forty cents. Announced. The euro
Speaker 1: this morning one point oh five seven four against the dollar,
Speaker 1: British pound one point to three one three, the En
Speaker 1: one thirty five point three too, Bitcoin at twenty one thousand,
Speaker 1: two hundred eleven dollars. Try to had your latest local headlines,
Speaker 1: had to check a sports. This is Bloomberg thanks hearing
Speaker 1: five thirty three on Wall Street, sixty five degrees in
Speaker 1: Central Park, on an overturned tractor trailer and Upper Saddle River.
Speaker 1: We'll get to the details shortly. First, Michael Barr with
Speaker 1: more on what's going on in New York and around
Speaker 1: the world. Michael, thank you very much, Nathan. New York
Speaker 1: Governor Kathy Hocal signed a state law protecting voting rights,
Speaker 1: and as signing ceremony and Brooklyn, Governor Hocal said New
Speaker 1: York is preserving voting rights while they are under attack
Speaker 1: around the country. The shocking revelation that there are people
Speaker 1: out there who were so firm and their belief that
Speaker 1: Donald Trump she remained their president, fostered by him, that
Speaker 1: they literally attacked our capital. Governor Hokels says that John
Speaker 1: Lewis Voting Rights of New York is named after federal
Speaker 1: legislation that passed the House last year but has not
Speaker 1: yet passed the Senate. The House eluct committee investigating the
Speaker 1: January sixth insurrection means again later today for its fourth
Speaker 1: public hearing. This time, the hearing is from mostly Republican
Speaker 1: officials on how former President Trump and his allies tried
Speaker 1: to convince them to break the law and turn the
Speaker 1: Trump election losses into wins. New York City police are
Speaker 1: still investigating what caused a yellow cab to jump a
Speaker 1: curb in Midtown Manhattan. Dur and injured six people. Police
Speaker 1: say the cab struck a cyclist on Broadway, then veered
Speaker 1: off the road, jumped the sidewalk, and struck two women
Speaker 1: on the sidewalk, pinning them against the wall of a
Speaker 1: building up The twenty passers by immediately jumped into action,
Speaker 1: trying to lift the cab off the two women who
Speaker 1: were pinned against the wall. New York Mayor Eric Adams,
Speaker 1: they clearly responded to help those who were injured. They
Speaker 1: didn't know they were tourists or not. They just responded
Speaker 1: a normal way, to New York Mayor Adams says. Two
Speaker 1: of the injured were tourists from Columbus, Ohio. Two more
Speaker 1: revisiting from Mexico. Although those injured are expected to recover.
Speaker 1: Anguish and questions last night during the first school board
Speaker 1: meeting after the horrific massacre inside the rob Elementary School
Speaker 1: in Yuvoldi, Texas. Several investigations are underway trying to find
Speaker 1: out why the school systems police chief waited for over
Speaker 1: an hour to storm the classroom and and the shooting rampage.
Speaker 1: At the school board meeting, this man asked for the chief,
Speaker 1: Pete Rodondo, to be fired send them on this duty.
Speaker 1: Call it whatever you want, call it, suspend them, pinning termination,
Speaker 1: It's an insult to injury. Nineteen children and two teachers died.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quick Sache, powered by more than twenty seven
Speaker 1: journalists and analysts more than a hundred twenty countries. Michael Bard,
Speaker 1: this is Bloomberg, Nathan Michael, thank you on Wall Street
Speaker 1: time for the Bloomberg Sports Update with John Stenshower. Rank
Speaker 1: to day Yankees stop. They had win number fifty Sunday
Speaker 1: in Toronto. Boot Day suddenly scored seven runs over the
Speaker 1: seventh and eighth innings in one ten to nine and
Speaker 1: eighth innings. Struggle again at Tampa Bay. The Rays didn't
Speaker 1: have a hit of Garrett Cole for the first seven.
Speaker 1: They broke up the no hitter, and then they got
Speaker 1: to Clay Holmes, who had not a lot of runs
Speaker 1: since opening Day. They scored twice. The game was tied
Speaker 1: at the ninth inning. Then runner goes slung on and
Speaker 1: hitting the air to right. Get Marco back against the wall.
Speaker 1: That ball is off the wall and Mark going down.
Speaker 1: The set of Humer has to go retrieve the ball
Speaker 1: Jnald single score, Pigs will stop at third and the
Speaker 1: Eggs take up three to two lead on a tree
Speaker 1: a full and Yanks won four to two, So they've
Speaker 1: won ten of eleven seventeen of the last nineteen. Mets
Speaker 1: won a day game with the Marlins six to nothing.
Speaker 1: David Peterson got the winners and Mets improved the twenty
Speaker 1: four and ten at City Field. They have called up
Speaker 1: Don Smith back from the Miners. They'll find out today
Speaker 1: about Jeff McNeil's hamstring injuries ended for an m R
Speaker 1: I McNeil batting three twenty seven Stanley cupt Final at
Speaker 1: Tampa Bay. The Lightning bounced back from that seven nothing
Speaker 1: loss in Game two. They scored four time second period
Speaker 1: in Colorado six to two. Six different goal scores the
Speaker 1: as now LEASA series to one. A report in The
Speaker 1: Athletic that there is an impact between the Nets and
Speaker 1: Kyrie Irving the writing on the wall with comments by
Speaker 1: next GM Shawn Marks said he wants players who are
Speaker 1: selfless and available. That's not Kyrie, who thinks he and
Speaker 1: Kevin Durant should have a managerial role with the team.
Speaker 1: If Irving rejects his thirty seven million dollar option he
Speaker 1: becomes a free agent. John stash Award, Bloomberg Sports Nathan,
Speaker 1: Thank you John. It's five thirty seven on Wall Street
Speaker 1: time for the Tri State Business Report. Here's Bloomberg that
Speaker 1: Corey narrowing down. The search for a place to live
Speaker 1: in New Jersey's biggest city just got a little easier
Speaker 1: thanks to Newark's news search engine. It's for potential buyers, renters,
Speaker 1: or short term renters. Searches can be filtered by price, region,
Speaker 1: locality to public transportation, or other criteria. Connecticut officials say
Speaker 1: the state will end its fiscal year June with an
Speaker 1: additional eighties six million dollar budget surplus. That's more than
Speaker 1: had been projected just a month ago. The money means
Speaker 1: the state can make a three point seven billion dollar
Speaker 1: payment to reduce unfunded liabilities, according to the Governor's budget Director.
Speaker 1: H and M is hosting a pop up hotel. The
Speaker 1: retailer is unveiling the hotel Headings NYC in Manhattan's Lower
Speaker 1: East Side for three days beginning Thursday. Guests will be
Speaker 1: able to access the space via Freeman's Alley. It will
Speaker 1: be open at three Freeman Alley on Thursday through Saturday
Speaker 1: to to nine pm. That's your Bloomberg Trying State Business Report.
Speaker 1: I'm ind Corey wall Street. Bloomberg Radio is on the
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Speaker 1: Let's check in with our global news team for some
Speaker 1: of the top stories heard on our three hundred affiliate
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Speaker 1: Wins in New York. We're talking about Jet Blue once
Speaker 1: again raising it's offered who purchased Spirit Airlines. Bernie Donaho
Speaker 1: on k IF THEYD in Omaha, Orio couldn't maker Monda
Speaker 1: leave the buy clip energy Bar. I'm kind kill Love
Speaker 1: David dishital Radio and London. We've been reporting on the
Speaker 1: biggest rail strike in more than thirty years, as some
Speaker 1: forty thousand stuff wook out on the job in a
Speaker 1: dispute over pay. I made Cory w w J and Detroit.
Speaker 1: I'm reporting your news surveys says Kids Paul as Sleeve
Speaker 1: faster in electric vehicles and Gantaloon power and those are
Speaker 1: some of the stories our dred Bloomberg journalists and analysts
Speaker 1: are working on this morning. It's five thirty nine on
Speaker 1: Wall Street. The following is an editorial from Bloomberg Opinion.
Speaker 1: This seventh sial was written by the Bloomberg Editorial Board.
Speaker 1: Over the long weekend, Americans observe their newest federal holiday,
Speaker 1: June team, also known as Emancipation Day. The name blends
Speaker 1: June and nine, the date in eighteen sixty five when
Speaker 1: Union soldiers arrived in Texas and declare that those in
Speaker 1: bondage were now free. June teenth is a celebration of
Speaker 1: America's early efforts to right a tragic wrong, but it
Speaker 1: also challenges the nation to confront the unfinished business arising
Speaker 1: from its original sin. In effect, the holiday asks Americans
Speaker 1: to reconcile their national aspirations with the reality of persistent inequities.
Speaker 1: That's an effort that should last year round. So as
Speaker 1: the first federally recognized Juneteenth recedes into memory, Americans should
Speaker 1: recognize that the work of racial justice remains unfinished and
Speaker 1: keep pushing to make the country a more perfect union.
Speaker 1: This editorial was written by the Bloomberg Editorial Board. For
Speaker 1: more Bloomberg Opinion, please go to Bloomberg dot com, slash
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Speaker 1: Stocks are climbing in Europe and Asia. US stock indix
Speaker 1: futures pointing higher, and treasuries retreating to submit improved investors
Speaker 1: sentiment compared with last week's route in global shares. We
Speaker 1: checked the markets every fifteen minutes throughout the trading day
Speaker 1: on Bloomberg. S and P futures have seventy points this morning.
Speaker 1: Down futures have five hundred nowsday futures have two hundred
Speaker 1: twenty six The decks in Germany's up one point one percent,
Speaker 1: ten year treasury down nine thirty seconds, yell three point
Speaker 1: to five percent. They yield on the two year three
Speaker 1: point one nine percent. Nine Max screwed oils up two
Speaker 1: point one percent, up two dollars twenty nine cents at
Speaker 1: a hundred eleven dollars eighty five cents a barrel. Co
Speaker 1: Max school that it will change at one thousand, eight
Speaker 1: hundred forty dollars thirty cents and ounce the euro one
Speaker 1: point oh five seven four against the dollar British found
Speaker 1: one point to three oh eight and the ends at
Speaker 1: one thirty five point three zero. And look at a
Speaker 1: big cooin this morning. It's higher, up almost four percent
Speaker 1: at twenty one thousand nine dollars. Today we are watching
Speaker 1: for oport on existing home sales at a ten o'clock
Speaker 1: Wall Street time, and that's at Bloomberg Business Flash. Now
Speaker 1: here's Michael Barr with more on what's going on around
Speaker 1: the world. Buckel Karen, thank you very much. Today's January
Speaker 1: six Committee hearing on Capitol Hill will focus on what
Speaker 1: panel members say with former President Trump's unpresidented push to
Speaker 1: get states to reject the election results. Meanwhile, on Fox News,
Speaker 1: former Vice President Pence called January six the Tragic Day
Speaker 1: while blasting Democrats for the hearings. Ukraine's leader has told
Speaker 1: the African Union that the continent has been taken hostage
Speaker 1: in Russia's invasion of Ukraine. President Volodimir's Lensky says it
Speaker 1: comes amid catastrophically rising food prices and baseball. The Yankees
Speaker 1: met in Red Sox one. The Giants lost NHL Stanley
Speaker 1: Cup Final the Lightning one game three over the Avalanche.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake Power by more event seven hundred journalists
Speaker 1: and analyst in more than a hundred twenty countries. I'm
Speaker 1: Michael Barren. This is Bloomberg, Nathan, Michael. Thank you. It's
Speaker 1: five forty nine on Wall Street Live from the Bloomberg
Speaker 1: Interactive Broker Studios. This is Bloomberg Daybreak. As we get
Speaker 1: ready to jump into a holiday shortened trading week. Let's
Speaker 1: get the perspective this morning from Dennis Gardman, former publisher
Speaker 1: of The Garment Letter, now chairman of the University of
Speaker 1: Akron Endowment Investment Committee, Dennis, Good morning. As Karen mentioned,
Speaker 1: we are seeing a nice surge in risk assets this morning.
Speaker 1: At the same time, we're hearing from a growing number
Speaker 1: of analysts, including now Morgan Stanley, saying this market hasn't
Speaker 1: fully priced in the risk of recession. How do you
Speaker 1: view the market right now? I tend to be with
Speaker 1: the people who think that the market has not fully
Speaker 1: in the possibilities of recession. I think recession is a
Speaker 1: very likely circumstance later this year. But markets get oversold,
Speaker 1: they get overbought, they get oversold. We had probably too
Speaker 1: many people on one side of the market. A competitor
Speaker 1: of yours see and has a great fair and Greed
Speaker 1: index which I watch, and anytime it gets below t
Speaker 1: it's in fearful territory, which she usually get a contrarian bounce.
Speaker 1: And last night I was on Seeing, I was on
Speaker 1: Bloomberg Asia, and I said, we could go up a
Speaker 1: thousand points from the lower last week and still be
Speaker 1: within well within the confines of the bear market. So
Speaker 1: I can think that the bear market continues. I see
Speaker 1: no reason to think that that has changed the fact
Speaker 1: that that will be taking sixty billion dollars worth of
Speaker 1: treasury securities out of circulation, reducing the size of his
Speaker 1: balance sheet over the course of the next several years.
Speaker 1: I think is the instructive circumstance to pay attention to.
Speaker 1: So bounces are to be sold into weaknesses, not to
Speaker 1: be bought. I'm not changing my opinion even slightly, other
Speaker 1: than the fact a little oversold and a little too many,
Speaker 1: far too many people on one side of the boat,
Speaker 1: a little too bearish. What what do we have? A
Speaker 1: ten of the last eleven weeks or lower. We're gonna
Speaker 1: get a bounced and that's all we're gonna get. So
Speaker 1: what has you thinking that the balance sheet is worth
Speaker 1: paying closer atten into? Then the possibility of more aggressive
Speaker 1: rate hikes. We've got the bond market pricing in potentially
Speaker 1: a number of seventy five basis point moves. But why
Speaker 1: is the balance sheet more important to look at? The
Speaker 1: balance sheet is exactly what the Fed does. It is
Speaker 1: by by purchasing treasury securities that injects reserves them directly
Speaker 1: into the system. It's as I've always said, and as
Speaker 1: uh most economists will agree, inflation is always an everywhere
Speaker 1: a monetary phenomenon, in the fact that the monetary phenomenon
Speaker 1: for the past decade has been an aggressive addition from
Speaker 1: to the FED sheet, aggressive the addition of reserves in
Speaker 1: of the banking system. We took the balance sheet from
Speaker 1: nine billion dollars, which is already relatively high, to nine
Speaker 1: trillion dollars, which was breathtaking lee high, and the FED
Speaker 1: has to take that money out of the system slowly
Speaker 1: over time, allowing those trader securities to mature off. I
Speaker 1: hope the FED does not come into the market and
Speaker 1: actually sell treasury securities. I think they'll just let them
Speaker 1: a tour off through through. Uh, just let them a
Speaker 1: tour off, I guess the best way to say it.
Speaker 1: And I pay more attention to the balance sheet than
Speaker 1: I do to the fact that the Fed shall be
Speaker 1: raising the overnight FED funds rate. Let us hope that
Speaker 1: the Fed does not take the overnight Fed funds right
Speaker 1: to to a level that gives us an inversion in
Speaker 1: the yield curve across the entire term structure. I hope
Speaker 1: that that does not occur. If that does, then a
Speaker 1: recession of some study will be almost mandatory. But I
Speaker 1: pay attention to the balance sheet, probably more than other
Speaker 1: people do. And I think that's the proper place to
Speaker 1: have my attention focused for the next several years, to
Speaker 1: be quite honest. So do you take the FED Chairman
Speaker 1: Jerome Pale at his word that he's determined to get
Speaker 1: to that two percent inflation target and if he does,
Speaker 1: what's the impact on markets? You have to take the
Speaker 1: FED chairman at his word. Whether whether he thought or
Speaker 1: not is another thing to be is another story entirely.
Speaker 1: But he has to say that he has no choice.
Speaker 1: He has to maintain that that that their intention is
Speaker 1: to get the inflation ry back percent. Whether they can
Speaker 1: do that or not over the course the next several
Speaker 1: years is another story entirely. I have my doubts completely.
Speaker 1: I think inflation will be with us for some period
Speaker 1: of time. So time shall tell us. But right now
Speaker 1: you have to give the You have to allow expect
Speaker 1: to see the the FED chairman follow through on his
Speaker 1: on his intentions. Well they can actually accomplish that task,
Speaker 1: that's another story. Speaking with Dennis Gartman, the former publisher
Speaker 1: of The Garment Letter now chairman of the University of
Speaker 1: acron Endowment Investment Committee, Dennis, how much is this inflation
Speaker 1: driven by what's happening outside the world of monetary policy.
Speaker 1: I'm thinking about the the war in Ukraine and the
Speaker 1: possibility of prolonged shutdowns potentially from China as they try
Speaker 1: to rein in COVID on that side of the world.
Speaker 1: That we've seen some moves that they might pull back
Speaker 1: on some of their restrictions. But doesn't that feed into
Speaker 1: the inflation we're seeing as well? No question there there's
Speaker 1: certainly I wouldn't say abundant, but certainly there is a
Speaker 1: material impact by by those outside forces. If I had
Speaker 1: to put a percentage on it, I would say seven
Speaker 1: percent of the inflation that we see now is caused
Speaker 1: by monetary policy and is caused by outside influences. Those
Speaker 1: outside influences over time shall so disappear, so too the
Speaker 1: impact of the aggressive monetary edition ease of the past
Speaker 1: a decade or so. But for now, remember inflation follows
Speaker 1: in a delay by one to two in three years.
Speaker 1: The fact that we've had these circumstances prevailing, the fact
Speaker 1: that we've had the monetary authorities being as aggressively easy,
Speaker 1: as aggressively easing natured as they have been for the
Speaker 1: past decade or so that's gonna be with us for
Speaker 1: a period of time going forward. So anybody who thinks
Speaker 1: we're gonna get back to percent inflation in the next
Speaker 1: year or two, I think it's sorely mistaken. Well, if
Speaker 1: we continue in this elevated inflation environment, Dennis, where do
Speaker 1: you put your money in in this kind of bear market?
Speaker 1: Not a bad place to be in cash, not a
Speaker 1: bad place to be in two in five year securities.
Speaker 1: As rates go up, you're gonna get you'll you'll lose
Speaker 1: a little bit of money on them, but the the
Speaker 1: the the coupons that you get will will all set
Speaker 1: that rather dramatically. And as I've said for years, in
Speaker 1: a bear market, here, she who loses the least will
Speaker 1: be the winner. And that's you have to keep that
Speaker 1: in mind. So I think cash and two to five
Speaker 1: year treasuries is absolutely the place to be. I think
Speaker 1: that's that makes eminent sense for the next several years.
Speaker 1: So I hate to say that it's not fun. It's
Speaker 1: much more fun being bullish. Being bullish on stocks is
Speaker 1: always a much more enjoyable circumstance. The ladies are prettier,
Speaker 1: the music is the better, the champagne is cold and
Speaker 1: in in bear markets, the dress has become a little tattered.
Speaker 1: In the champagne turns damp, turns neutral, and in less
Speaker 1: than enthusiastics. So it's a bear market selling to the
Speaker 1: rallies don't buy. Why do you think gold hasn't reacted
Speaker 1: as much as an inflation hedge that has in the past.
Speaker 1: We're looking at gold right now around an eighteen hundred handle.
Speaker 1: I'm a little surprised by that, to be quite honest,
Speaker 1: I would have thought gold would be closer to two
Speaker 1: thousand dollars announced rather than the eighteen hundred dollars. But
Speaker 1: perhaps at the margin, you you've got the gold competing
Speaker 1: with the bitcoin at all, and the other risk of
Speaker 1: the crypto universe. I think some of the money that
Speaker 1: would have gone in the gold market has gone over
Speaker 1: there eventually with the crypto. I think under real pressure,
Speaker 1: and I think gonna be maintained under pressure, and I
Speaker 1: think Bitcoin goes a lot lower than where it is
Speaker 1: right now at the margin, probably will move into gold.
Speaker 1: But I am I will have to admit, I am
Speaker 1: so much surprised that goal is trading in eighteen forty
Speaker 1: instead of in our last minute here Dennis, Of course,
Speaker 1: Chairman pal is going to be appearing on Capitol Hill
Speaker 1: tomorrow and the next day. What are you going to
Speaker 1: be listening for from the chairman? Do you think his
Speaker 1: his remarks will have any impact on markets? I think
Speaker 1: the market has already understood what the what what the
Speaker 1: chairman has said. He his press conference and his press
Speaker 1: releases last week tell us what he's going to talk about.
Speaker 1: He'll talk about the fact that the Fed probably will
Speaker 1: tighten monetary policy a bid for the next two or
Speaker 1: three or four f o MC meetings that he can expect.
Speaker 1: He'll he'll talk about the fact that seventy five basis
Speaker 1: points is probably a given given in the July f
Speaker 1: o MC meeting, and maybe some reduction from there on.
Speaker 1: But the he'll he'll be he'll be talking, in fact,
Speaker 1: if their intention is to get two percent inflation. Whether
Speaker 1: the market believes it or not is another story for
Speaker 1: another time. As always, Dennis, great to get your insights.
Speaker 1: Thanks for being with us. Dennis Gartman, former publisher of
Speaker 1: the Gartment Letter, now chairman of the University of Akron
Speaker 1: Endowment Investment Committee. This morning, futures are moving higher after
Speaker 1: the route from last week. We have SMP futures up
Speaker 1: sixty five points down, futures of four hundred seventy nine,
Speaker 1: NASDAK futures higher by two hundred six points ten. Your
Speaker 1: treasury right now is down eleven thirty seconds. The yield
Speaker 1: three point to six almost three point to seven percent,
Speaker 1: yield on the two years three point two zero percent.
Speaker 1: Nimex crewed up two point one percent to a hundred
Speaker 1: eleven dollars eighty five cents of barrel and comex gold
Speaker 1: little changed down to dollar eighty for announce of gold.
Speaker 1: Bloomberg day break continues. This is Bloomberg