WEBVTT - Bloomberg Daybreak: June 2, 2022 - Hour 2 (Radio) 0:00:04.200 --> 0:00:06.920 Live from the Bloomberg Interact at Burger Studios. It is 0:00:06.960 --> 0:00:11.840 Bloomberg Daybreak for Thursday, June second two. Coming up the shower, 0:00:12.320 --> 0:00:15.880 another deadly mass shooting in the US, this time in Tulsa. 0:00:16.400 --> 0:00:19.400 President Biden is likely to visit Saudi Arabia as gas 0:00:19.400 --> 0:00:23.479 prices surge and Cheryl Sandberg steps down from Facebook parent 0:00:23.560 --> 0:00:26.880 Metta after fourteen years. She tells us why New York 0:00:26.920 --> 0:00:30.160 Mayor Adams names of gun violence are plus. President Biden 0:00:30.160 --> 0:00:33.639 gets pushed back, saying no one anticipated the baby formula shortage. 0:00:33.800 --> 0:00:37.200 I'm Michael barr More A hand imtime stands swards forwards. 0:00:37.240 --> 0:00:39.519 Another win for the Rangers. They beat Tampa Bay in 0:00:39.600 --> 0:00:45.040 Game one the Mets. One There six own. That's all's 0:00:45.040 --> 0:00:48.760 training ahead on Bloomberg Daybreak on Bloomberg eleven three on 0:00:48.840 --> 0:00:53.279 New York, Bloomberg one, Washington, d C, Bloomberg one oh 0:00:53.360 --> 0:00:57.840 six one, Boston Bloomberg nine sixties and Francisco syrius x 0:00:58.000 --> 0:01:00.240 M one nine team and around the world Old on 0:01:00.400 --> 0:01:03.640 Bloomberg Radio dot Com and via the Bloomberg Business Up 0:01:07.600 --> 0:01:10.679 and good Morning. I'm Karen Moscow, I'm Nathan Hagar. Bloomberg 0:01:10.760 --> 0:01:13.080 Daybreak is brought to you by bn Y Melon Pershing's 0:01:13.120 --> 0:01:16.479 Insight Conference back in person June fifteen through the seventeenth 0:01:16.480 --> 0:01:19.240 at the Gaylord Resort in Grapevine, Texas. Don't miss it. 0:01:19.600 --> 0:01:23.000 Register now at Insight dot b n y melon dot com. 0:01:23.000 --> 0:01:25.399 And US futures are higher this morning six o one 0:01:25.400 --> 0:01:27.319 on Wall Street, and we check the markets every fifteen 0:01:27.319 --> 0:01:29.600 minutes to while the trading day on bloomberg S and 0:01:29.680 --> 0:01:32.000 P Future is up seventeen points down, futures have a 0:01:32.040 --> 0:01:34.840 hundred three Nasdack Future is up seventy three, and the 0:01:34.880 --> 0:01:37.479 ten year treasury down three thirties seconds held two point 0:01:37.520 --> 0:01:40.320 on one percent. Nathan Karen, We begin with yet another 0:01:40.400 --> 0:01:42.520 deadly mass shooting in the US, this time in a 0:01:42.560 --> 0:01:46.400 medical building in Tulsa, Oklahoma. Deputy police Chief Eric Dagley 0:01:46.520 --> 0:01:49.400 says a man carrying a rifle and a handgun opened 0:01:49.480 --> 0:01:53.040 fire on employees and visitors before turning the gun on himself. 0:01:53.560 --> 0:01:58.720 We have four civilians that are dead. We have one 0:01:58.840 --> 0:02:03.000 shooter that is dead and right now we believe that 0:02:03.120 --> 0:02:05.920 is self inflicted. Deputy Chief Ric Dalglish says it took 0:02:05.960 --> 0:02:08.360 about three minutes for officers to arrive at the scene. 0:02:08.360 --> 0:02:10.919 And they made contact with the gunman about ten minutes later. 0:02:11.200 --> 0:02:14.320 This comes after other deadly mass shootings in Yuvaldi, Texas, 0:02:14.400 --> 0:02:17.280 and Buffalo, New York that already have Democratic leaders calling 0:02:17.280 --> 0:02:21.160 for greater restrictions on guns Nathan. While President Biden contented 0:02:21.160 --> 0:02:24.880 another shooting, he is also grappling with rising gas prices 0:02:25.280 --> 0:02:27.680 that has it now planning a trip to Saudi Arabia, maybe, 0:02:27.680 --> 0:02:31.760 Morris says details from our Bloomberg newsroom in Washington. Sources 0:02:31.800 --> 0:02:34.960 tell Bloomberg News President Biden is likely to visit Saudi 0:02:35.000 --> 0:02:37.760 Arabia later this month, and that could mean the President 0:02:37.800 --> 0:02:41.040 would also meet with Crown Prince Mohammed Ben Sulman, who 0:02:41.040 --> 0:02:44.120 the U S blames for the murder of US based 0:02:44.160 --> 0:02:47.639 columnists Jamal Ka Shoji Now. Early in his presidency, Biden 0:02:47.639 --> 0:02:50.560 said he would only deal with Saudi Arabia's official head 0:02:50.600 --> 0:02:54.519 of state, King Solomon bin Abdulaziz. But the president is 0:02:54.560 --> 0:02:57.640 under increasing pressure to meet with Ben Solomon as gas 0:02:57.639 --> 0:03:00.560 prices hit record highs in Washington. I may be more, 0:03:00.600 --> 0:03:03.200 as Bloomberg daybreak, we consumers could get a bit more 0:03:03.280 --> 0:03:05.480 relief at the pump ahead of that proposed trip. According 0:03:05.520 --> 0:03:08.320 to the financial time, Saudi Arabia is prepared to produce 0:03:08.400 --> 0:03:12.520 more crude if Russian output declines substantially. Meantime, OPEC and 0:03:12.600 --> 0:03:15.760 its allies meet today, they're expected to ratify a modest 0:03:15.840 --> 0:03:19.480 increase in production. Checking prices now, Nimex crudes down two 0:03:19.480 --> 0:03:21.520 point two per cent, or two dollars fifty two cents 0:03:21.520 --> 0:03:23.760 at a hundred twelve dollars seventy three cents of barrel. 0:03:24.000 --> 0:03:25.760 Brent is down two and a quarter percent to a 0:03:25.800 --> 0:03:29.079 hundred thirteen dollar sixty six cents. Well. Nathan wall Street 0:03:29.160 --> 0:03:32.240 is still reacting to the resignation of Meta Chief operating 0:03:32.280 --> 0:03:35.240 officer Cheryl Sandberg. She became one of the most recognized 0:03:35.280 --> 0:03:38.560 figures in global business after helping Facebook transform from US 0:03:38.560 --> 0:03:42.520 start up into a multibillion dollar advertising powerhouse. Sandberg spoke 0:03:42.560 --> 0:03:45.560 about her decision with Bloomberg's Emily Chang. The decision I 0:03:45.560 --> 0:03:50.400 didn't come too rightly, but it's been fourteen years. It's 0:03:50.440 --> 0:03:53.320 been fourteen years, and I wanted to make more room 0:03:53.440 --> 0:03:57.200 to do more philanthropically. Cheryl Sandberg caused your time and 0:03:57.280 --> 0:04:00.160 Meta quoth the honor and privilege of a lifetime well 0:04:00.160 --> 0:04:03.320 sanderg leaves a complicated legacy, Karen. While she helped to 0:04:03.360 --> 0:04:06.520 build Facebook into a global giant, the company's reputation was 0:04:06.600 --> 0:04:10.960 tarnished by developing blind spots on data and misinformation. Techonomy 0:04:11.000 --> 0:04:14.080 Media CEO David Kirkpatrick called Sandberg one of the most 0:04:14.120 --> 0:04:17.120 powerful women in the business world. Well, she served as 0:04:17.120 --> 0:04:20.039 a symbol of women's success in business. There's no question. 0:04:20.080 --> 0:04:23.280 I mean for most of the last fourteen years, certainly 0:04:23.320 --> 0:04:25.960 for the last maybe ten or eleven years, she could 0:04:26.000 --> 0:04:28.280 have left Facebook at any time and become the CEO 0:04:28.360 --> 0:04:30.440 of any company in the world. And I know she 0:04:30.600 --> 0:04:32.960 was solicited for those kinds of jobs time and time 0:04:32.960 --> 0:04:36.120 again and didn't show interest because she really wanted to 0:04:36.120 --> 0:04:39.880 stay here. Techonomy Media CEO David Kirkpatrick spoke with Bloomberg 0:04:39.880 --> 0:04:43.360 Technologies Emily Chang. For more from Emily and our tech team, 0:04:43.400 --> 0:04:47.000 subscribed to the Bloomberg Technology Podcast. It's available daily wherever 0:04:47.040 --> 0:04:49.960 you get your podcasts. On Turning to the economy now, Nathan, 0:04:49.960 --> 0:04:52.400 our focus remains on the FED. St. Louis FED President 0:04:52.480 --> 0:04:54.760 James Bullard wants to raise interest rates to three and 0:04:54.800 --> 0:04:57.520 a half percent this year at de tain inflation as 0:04:57.600 --> 0:05:02.600 we get tangible evidence that play is definitely retreating, then 0:05:03.080 --> 0:05:07.760 we could look at reducing the post to rate future years, 0:05:08.880 --> 0:05:14.160 maybe late, saying The West Fan president James Bullard, spoken 0:05:14.240 --> 0:05:17.159 Economic Club of Memphis, He's traditionally been the most huggish 0:05:17.240 --> 0:05:19.840 official on the FED. A couple of Wall Street CEOs 0:05:19.880 --> 0:05:22.240 think Bullet and the FED have a very difficult road 0:05:22.240 --> 0:05:25.440 ahead of them. Karen Here's Wells Fargo CEO Charlie Sharf, 0:05:25.720 --> 0:05:29.520 the economy has to slow. The FED has been very 0:05:29.560 --> 0:05:34.599 clear about what their intentions are, and the scenario of 0:05:34.640 --> 0:05:37.719 a soft landing is very difficult to achieve and I 0:05:37.760 --> 0:05:41.200 think extremely difficult to achieve in the environment that we're 0:05:41.200 --> 0:05:44.200 in today. Wells Fargo CEO Charlie Sharf says he sees 0:05:44.200 --> 0:05:47.000 loan growth starting to moderate. His comments follow us similar 0:05:47.000 --> 0:05:50.920 warning from JP Morgan CEO Jamie Diamond. It's a hurricane. 0:05:51.400 --> 0:05:55.039 It's right now, it's kind of sunny. Things are doing fine. 0:05:55.480 --> 0:05:59.000 Everyone thinks that the FED can handle this. That hurricane 0:05:59.120 --> 0:06:01.480 is right out there down the road coming our way. 0:06:01.880 --> 0:06:04.039 We just don't know if it's a minor one or 0:06:04.279 --> 0:06:08.279 Superstorm Sandy. Both JP Morgan's Jamie Diamond and Charlie Sharf 0:06:08.279 --> 0:06:10.520 of Wells Fargo made their comments at a conference in 0:06:10.520 --> 0:06:13.400 New York. Let's update you now on some key earnings 0:06:13.400 --> 0:06:17.520 from late yesterday. Shares of Hewlett Packard Enterprise down more 0:06:17.560 --> 0:06:20.080 than six percent in early trading after the company lowered 0:06:20.080 --> 0:06:23.520 its forecast. Bomb Dog Krisner has more. The company sited 0:06:23.560 --> 0:06:28.200 a few headwinds on favorable currency movements, supply chain disruptions, 0:06:28.320 --> 0:06:31.520 and the impact of the company's exit from the Russian market. 0:06:31.680 --> 0:06:35.359 Hewlett Packard Enterprise said profit excluding some items will be 0:06:35.400 --> 0:06:38.120 as much as seven cents less than the previous guidance 0:06:38.200 --> 0:06:41.440 issued in March. HPE has been working to reduce its 0:06:41.480 --> 0:06:45.000 reliance on sales of hardware such as data center servers 0:06:45.240 --> 0:06:49.599 by encouraging customers to pay for additional services with subscriptions. 0:06:49.960 --> 0:06:52.880 In New York, I'm Doug Prisner, Bloomberg, Daybreak, all Right, Doug, Thanks, 0:06:52.920 --> 0:06:55.120 and some other stocks were following in the pre market. 0:06:55.200 --> 0:06:58.120 Shares of chewy right now are up more than seventeen percent. 0:06:58.200 --> 0:07:00.720 The pet products retailer reported profit in sales at top 0:07:00.960 --> 0:07:04.279 estimates and as usuals some volatility for games stop shares. 0:07:04.320 --> 0:07:06.960 The video game retailer reported a wider than expected first 0:07:07.040 --> 0:07:10.480 quartered at loss after falling almost three percent. Game Stop 0:07:10.520 --> 0:07:14.280 is now up about one percent. Futures are up as well. 0:07:14.440 --> 0:07:17.200 Straight ahead your latest local headlines and a check of sports. 0:07:17.240 --> 0:07:24.920 This is Bloomberg Sounds six oh seven on Wall Street. 0:07:24.960 --> 0:07:27.680 We're sixty three degrees in Central Park. Flooding issues are 0:07:27.680 --> 0:07:31.040 improving on the Bronx Server Parkway in White Plains. We'll 0:07:31.080 --> 0:07:33.480 get the latest in traffic shortly. First, Michael Bars here 0:07:33.520 --> 0:07:34.920 with what else is going on in New York and 0:07:35.080 --> 0:07:37.600 around the world. Money Michael, Good morning, Nathan. New York 0:07:37.640 --> 0:07:41.320 Mayor Eric Adams will name a gun violence are. Adams 0:07:41.360 --> 0:07:44.240 continues to be confronted with a stubbornly high number of 0:07:44.280 --> 0:07:47.520 gun offenses in the city. According to The New York Times, 0:07:47.600 --> 0:07:51.440 the Adams administration has also considered declaring a state of 0:07:51.480 --> 0:07:55.400 emergency related to the surgeon gun violence. Meanwhile, Mayor Adams 0:07:55.440 --> 0:07:59.080 also sent a stern letter to city employees that they 0:07:59.160 --> 0:08:02.840 need to stop working from home. Adams rode all city employee, 0:08:02.840 --> 0:08:06.640 you should be advised that, absent a reasonable accommodation, you 0:08:06.680 --> 0:08:09.520 are required to report to work in person for every 0:08:09.560 --> 0:08:13.880 scheduled workday, and hybrid schedules of any kind are not permitted. 0:08:14.280 --> 0:08:17.800 Baby formula makers met with President Biden for an update 0:08:17.920 --> 0:08:20.880 on ending the supply crisis in the US. There's nothing 0:08:20.920 --> 0:08:23.240 more stressful than the feeling you can't get what your 0:08:23.320 --> 0:08:26.840 child needs, he or she needs, and that's why I've 0:08:26.880 --> 0:08:29.920 directed my administration to use every tool available or increase 0:08:30.000 --> 0:08:34.480 the supply, getting more formula on shelves as quickly as possible. However, 0:08:34.600 --> 0:08:37.680 President Biden faced push back on his claims that no 0:08:37.760 --> 0:08:42.040 one predicted shutting one food plant would create a nationwide shortage. 0:08:42.400 --> 0:08:46.560 Parago Baby formula producer executive Murray Kessler told President Biden 0:08:46.880 --> 0:08:50.400 he immediately knew there would be a supply crisis when 0:08:50.400 --> 0:08:53.800 the FDA closed the Abbot formula plant. The very first 0:08:53.840 --> 0:08:56.720 thing we did when we heard about the Abbot recall 0:08:56.960 --> 0:09:00.680 was we could foresee that this was going to free 0:09:00.679 --> 0:09:06.320 a tremendous shortage. We um significantly increased all our material orders. 0:09:06.720 --> 0:09:10.000 Murray Kessler with Parago. Later, the White House Press Secretaries 0:09:10.000 --> 0:09:13.120 said the administration has been working to relieve the formula 0:09:13.160 --> 0:09:16.840 shortage since day one. The U. S. Transportation Department is 0:09:16.840 --> 0:09:20.160 making it easier for Americans to travel to Cuba, lifting 0:09:20.240 --> 0:09:23.960 flight restrictions that were established during the Trump administration. The 0:09:24.000 --> 0:09:27.760 restrictions had prevented US airline flights and chartered flights from 0:09:27.800 --> 0:09:31.480 going to Cuban cities other than Havana. The Queen's Platinum 0:09:31.559 --> 0:09:34.520 Jubilee is underway, a four day bash designed to honor 0:09:34.559 --> 0:09:37.880 her seventy years on the throne. Millions across Britain are 0:09:37.920 --> 0:09:40.680 ready to take to the streets for parties. Global News 0:09:40.760 --> 0:09:43.480 twenty four hours a day on air and on Bloomberg 0:09:43.559 --> 0:09:46.600 Quick Take, powered by more than twenty seven hundred journalists 0:09:46.600 --> 0:09:49.320 and analysts more than a hundred twenty countries. Michael Barr 0:09:49.360 --> 0:09:56.720 and this is Bloomberg, Nathan. Alright, Michael, thank you, six 0:09:56.720 --> 0:09:58.840 o nine on Wall Street, time for the Bloomberg Sports 0:09:58.880 --> 0:10:01.240 Up Day with John stash Hour. Nathan. The Rangers are 0:10:01.240 --> 0:10:03.320 in a place they had not been before in the 0:10:03.320 --> 0:10:06.600 Stanley Cup playouts. A head in the series before Game seven, 0:10:06.640 --> 0:10:08.840 Game one with Tampa Bay and a Chris Pryder goal 0:10:09.240 --> 0:10:11.560 on the Rangers first shot of the series, they led 0:10:11.559 --> 0:10:13.160 to the one, then three to two, and then the 0:10:13.240 --> 0:10:18.080 kid line Philippino Capocaco and alexis La Fronnier, all under 0:10:18.080 --> 0:10:20.680 the age of twenty two. They were on the ice 0:10:20.720 --> 0:10:24.040 for almost three minutes. He just chill up the board. 0:10:24.600 --> 0:10:29.360 I fight, but it's patted down by Cox. Heap the 0:10:29.440 --> 0:10:32.840 up pitcher to he said pillock for game, let's tud 0:10:32.880 --> 0:10:39.160 the middle hiller, he stared won a shift by the Racers, 0:10:39.679 --> 0:10:44.680 and its top is a light ship. It's fur to Rangers. 0:10:45.760 --> 0:10:47.920 He had second goal and night for the suddenly red 0:10:47.920 --> 0:10:50.560 hot Filipino. He scored eight goals in the regular season. 0:10:50.559 --> 0:10:52.920 He's got seven in the playoffs. Are Tammy Panerva scored 0:10:52.920 --> 0:10:54.400 open him in at the third period of the Mika 0:10:54.480 --> 0:10:58.000 Savanna Jad Rangers beat the Lightning six to two. Tampa 0:10:58.080 --> 0:11:00.600 had only allowed a total of three goals. Old and 0:11:00.679 --> 0:11:03.400 it's four games swape with Florida Rangers double that in 0:11:03.480 --> 0:11:05.960 one game. They've had won five the last six seven 0:11:05.960 --> 0:11:08.240 a row at the Garden where they'll be back for 0:11:08.360 --> 0:11:10.520 game two tomorrow. Met's hit the road right in a 0:11:10.559 --> 0:11:12.880 sixth game winning Today finished the swathe and Washington five 0:11:13.000 --> 0:11:16.200 nothing behind Carlos Carrasco and four it's by Thomas Nto. 0:11:16.280 --> 0:11:19.080 Now a ten game road trip, all ten in southern California, 0:11:19.440 --> 0:11:22.120 starting tonight against the Dodgers, Yankees and Angels rained down 0:11:22.160 --> 0:11:25.760 so a swit doubleheader today and tonight. NBA finals begin 0:11:25.840 --> 0:11:28.800 tonight's Celtics and Warriors in San Francisco, and also today 0:11:28.840 --> 0:11:32.240 the women's semi finals at the French Open. John Stasheller, 0:11:32.280 --> 0:11:35.640 Bloomberg Sports d Okay, John thanks SMP futures right now 0:11:35.720 --> 0:11:39.440 up nineteen points. Staff futures up A. NAZAC futures are 0:11:39.520 --> 0:11:42.360 higher by seventy seven points. The tenure treasury is down 0:11:42.400 --> 0:11:46.319 three thirty seconds. The yield two point nine yield on 0:11:46.400 --> 0:11:50.200 the two year two point six five per cent. Cheryl 0:11:50.280 --> 0:11:54.920 Sandberg looks to life beyond Facebook. Parent meta platforms will 0:11:54.920 --> 0:11:59.439 get reaction to her departure, as CEO Dan Ives of 0:11:59.600 --> 0:12:03.520 Web Securities joins us. Next, you're listening to Bloomberg Gay Break. 0:12:07.559 --> 0:12:09.400 The Bloomberg Gay Break is brought to you by Hofstre 0:12:09.559 --> 0:12:12.680 University's Frank gez Our School of Business, top ranked online 0:12:12.760 --> 0:12:15.560 NBA program with the Real World Foundation. Learned war at 0:12:15.600 --> 0:12:23.280 Hofstra dot e d u slash Go Brad markets headlines 0:12:23.320 --> 0:12:26.319 and breaking news twenty four hours a day at Bloomberg 0:12:26.360 --> 0:12:29.720 dot Com, the Bloomberg Business At and at Bloomberg Quick Tape. 0:12:29.920 --> 0:12:39.560 He's a Bloomberg Business Flash, and I'm Karen Moscow stocks 0:12:39.559 --> 0:12:43.120 in Europe, in US DOT Index futures are rising this morning. 0:12:43.120 --> 0:12:46.360 Investors are assessing attractive valuations and a drop in oil 0:12:46.400 --> 0:12:51.000 prices against hawkish messages from central bankers on raining and inflation. 0:12:51.120 --> 0:12:54.000 Crude oil is falling out a report that Saudi Arabia 0:12:54.080 --> 0:12:57.000 is ready to pump more oil if Russian output declines. 0:12:57.080 --> 0:12:59.400 We checked the markets every fifteen minutes throughout the trading 0:12:59.480 --> 0:13:02.600 day on bloomberg S and P futures of nineteen points 0:13:02.600 --> 0:13:04.760 this morning, down futures have a hundred twenty two and 0:13:04.840 --> 0:13:07.960 nasday futures have seventy seven. The decks in Germany's up 0:13:07.960 --> 0:13:10.679 three quarters of a percent ten, Your treasury down three 0:13:10.720 --> 0:13:13.400 thirty seconds two point on one percent. They yield them 0:13:13.400 --> 0:13:16.079 the two year two point six five percent. Nine max 0:13:16.120 --> 0:13:18.520 Screwed oil is down two point six percent, down two 0:13:18.559 --> 0:13:21.240 dollars cents and a hundred twelve dollars thirty three cents 0:13:21.240 --> 0:13:24.000 of barrel comic schooled up half percent or nine dollars 0:13:24.000 --> 0:13:27.280 twenty cents at eighteen fifty seven ninety announce the euro 0:13:27.400 --> 0:13:30.120 one point oh six eight nine against the dollar. British 0:13:30.120 --> 0:13:32.360 found one point to five for eight the end at 0:13:32.400 --> 0:13:36.400 one twenty nine point seven nine Bitcoin this morning is higher, 0:13:36.480 --> 0:13:39.520 up one percent, at twenty nine thousand, nine hundred dollars. 0:13:39.600 --> 0:13:42.000 And that's a Bloomberg business flash. Now here's Michael Barr 0:13:42.120 --> 0:13:45.440 with more on what's going on around the world. Michael Karen, 0:13:45.480 --> 0:13:47.959 thank you very much. Police officials say four people were 0:13:48.000 --> 0:13:50.400 killed in a mass shooting at a Tulsa medical building 0:13:50.440 --> 0:13:53.760 on the hospital campus. Authorities say the shooter killed himself. 0:13:54.120 --> 0:13:57.560 President Biden says no one anticipated the baby formula crisis 0:13:57.600 --> 0:14:01.440 until months after a crucial manu facturing plant was shut down. 0:14:01.800 --> 0:14:05.480 Formula makers Biden met with disagreed. Game one of the 0:14:05.600 --> 0:14:08.599 NHL East Final, the Rangers beat the Lightning six to 0:14:09.120 --> 0:14:12.200 Game one of the NBA Finals is tonight between the 0:14:12.200 --> 0:14:15.680 Celtics and Warriors. And baseball the Yankees game was reigned out. 0:14:15.679 --> 0:14:18.560 The Mets beat the Nationals, the Red Sox and Orioles won. 0:14:18.640 --> 0:14:22.200 The A's and Giants lost. Global News twenty four hours 0:14:22.200 --> 0:14:25.360 a day on air and on Bloomberg Quick Take, powered 0:14:25.360 --> 0:14:27.680 by more than twenty seven hundred journalist and analysts more 0:14:27.680 --> 0:14:30.680 than a hundred twenty countries. Michael Bard, this is Bloomberg. 0:14:30.760 --> 0:14:33.320 Nathan all Right, Michael Thanks six nineteen on Wall Street 0:14:33.360 --> 0:14:37.160 Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. 0:14:37.320 --> 0:14:40.040 Let's turn more now to uh, probably the biggest corporate 0:14:40.080 --> 0:14:43.080 story of the moment. After fourteen years running the nuts 0:14:43.080 --> 0:14:45.800 and bolts of the world's biggest social media company, Cheryl 0:14:45.840 --> 0:14:49.680 Sandberg is stepping down as Chief operating Officer Facebook parent 0:14:50.120 --> 0:14:53.240 Meta Platforms. Dan Ives is with us this morning from 0:14:53.240 --> 0:14:55.880 We're on this Managing director and senior equity research channel 0:14:55.920 --> 0:14:59.200 list at Wedbush Securities. Dan, it is hard to overstate 0:14:59.280 --> 0:15:03.800 Cheryl sandburg impact turning Facebook into the powerhouse. It is. 0:15:03.880 --> 0:15:08.120 Now what's the legacy that she leaves behind. Look, I mean, 0:15:08.280 --> 0:15:11.800 she's a key reason that people know Facebook. I mean, 0:15:12.080 --> 0:15:16.760 you know, of course Zuckerberg, you know, it continues to 0:15:16.480 --> 0:15:18.120 to to sort of be the one that's going to 0:15:18.240 --> 0:15:20.880 take the legacy from here, even though it's gonna be choppy. 0:15:20.960 --> 0:15:24.280 But Cheryl is a key part of the DNA of Facebook, 0:15:24.480 --> 0:15:29.400 navigating all the challenges, the vision, the street credibility. She 0:15:29.720 --> 0:15:33.600 leaves a massive hole at Facebook, and right now I 0:15:33.600 --> 0:15:36.480 think it's some darker days ahead for Zuckerberg and team, 0:15:36.560 --> 0:15:39.760 especially with Samburg no longer in the co pilots eat. 0:15:40.200 --> 0:15:42.040 I'll talk a little bit more about that. Why do 0:15:42.040 --> 0:15:45.800 you see darker days ahead now? Well, I think, first off, 0:15:45.960 --> 0:15:49.040 I mean the company transitioning to Metaverse, obviously changing their 0:15:49.120 --> 0:15:52.240 name to Meta, the revenues not come from our three 0:15:52.240 --> 0:15:54.240 to five years and and that's going to be a 0:15:54.280 --> 0:15:57.320 bumpy transition. And right now, in terms of social media, 0:15:57.920 --> 0:16:01.760 it's really these Apple priv the iOS changes. That's been 0:16:01.800 --> 0:16:04.680 the gut punch of the business model. And that's why 0:16:04.800 --> 0:16:08.200 right now, I mean, there was always a thought she 0:16:08.280 --> 0:16:11.440 was going to leave, the fact that she's leaving right 0:16:11.560 --> 0:16:15.680 as there transitioning to Meta and the Metaverse couldn't come 0:16:16.160 --> 0:16:19.160 exactly at the right time, And I think that's why 0:16:19.200 --> 0:16:21.880 it's gonna be a negative reaction for the street as 0:16:21.920 --> 0:16:25.560 it goes to this transition. Does her departure say something 0:16:25.600 --> 0:16:29.880 about her feeling about the direction that Facebook is taking 0:16:29.920 --> 0:16:34.040 down now that it is meta platforms. Look, she's obviously 0:16:34.080 --> 0:16:37.640 become more than just a business leader. I mean, you know, 0:16:37.680 --> 0:16:40.440 worldly iconic, you know, especially with a lot of her 0:16:40.520 --> 0:16:45.040 endeavor's charity. So she's gonna, you know, be really focused 0:16:45.080 --> 0:16:48.800 on that. But you can't look past her leaving at 0:16:48.840 --> 0:16:52.000 this time. It's like looking at a tornado being like, 0:16:52.040 --> 0:16:54.720 you know, I'll go the other way, And I think 0:16:54.760 --> 0:16:57.560 that's the view of the street here and look at us. 0:16:57.560 --> 0:17:00.960 When it comes to Zuckerberg, he's not exactly Sully sellinger 0:17:01.040 --> 0:17:04.639 flying the plane. That there's not super confidence that that 0:17:04.760 --> 0:17:07.040 he can navigate some of these challenges. And that's why 0:17:07.080 --> 0:17:09.120 the bench is going to have to ultimately come through. 0:17:09.480 --> 0:17:13.600 But clearly these are almost impossible shoes to fill for 0:17:13.680 --> 0:17:16.040 you know, for for the rest of Managine team. Well, 0:17:16.080 --> 0:17:18.240 we do know that those shoes are going to be 0:17:18.400 --> 0:17:23.480 filled at least at the moment by Meta's Chief growth officer, 0:17:23.600 --> 0:17:26.639 Javier Olivan. What's your view on him? What direction do 0:17:26.680 --> 0:17:29.880 you think he's going to take the company? Look strong, background, 0:17:29.960 --> 0:17:33.199 has proven himself, you know in outside you know, of 0:17:33.320 --> 0:17:38.080 the industry. But these are herculean like challenges they have, 0:17:38.359 --> 0:17:42.040 I mean, transitioning to Meta, the name change the metaurs 0:17:42.080 --> 0:17:44.159 that's gonna be easier said than done. And this is 0:17:44.160 --> 0:17:46.520 all sort of time social media. I mean we've seen 0:17:46.600 --> 0:17:52.040 it from snapping others. Advertising continues to see massive headwinds 0:17:52.119 --> 0:17:54.359 and and Cheryl was the one, she was the pillar 0:17:54.480 --> 0:17:59.359 strength of the Street credibility despite whatever the choppiness was, 0:17:59.760 --> 0:18:02.720 and and he's going to have to start to navigate 0:18:02.800 --> 0:18:05.679 some of those challenges. But but again this continues to 0:18:05.760 --> 0:18:10.080 really be was a surprise to the Street that happened now, 0:18:10.560 --> 0:18:13.359 especially as they're going to this transition. It's not just 0:18:13.720 --> 0:18:17.040 meta platforms that's been hit hard this year. Text stocks 0:18:17.080 --> 0:18:21.119 as a whole of then hammered. They're starting to stabilize 0:18:21.119 --> 0:18:23.280 a bit. Do you think the worst is over for 0:18:23.320 --> 0:18:26.399 big tech? Look? I believe the worst is over a 0:18:26.520 --> 0:18:30.120 relative to what we're seeing on fundamentals. I think Street 0:18:30.160 --> 0:18:34.120 was anticipating a lot worst news. Ultimately the video how 0:18:34.240 --> 0:18:37.600 out does the scower sales wre's better than expected, supply 0:18:37.800 --> 0:18:41.000 chain starting to ease, Army getting was pricing the tech 0:18:41.040 --> 0:18:43.600 stocks I believe way over correct, and that's why you 0:18:43.680 --> 0:18:48.840 started investors look for bargains despite the inflationary Rubert's c 0:18:49.119 --> 0:18:52.240 mac or I think tech stocks away over sold. Here overall, 0:18:53.000 --> 0:18:55.119 just quickly our last thirty seconds here, where do you 0:18:55.200 --> 0:18:59.560 see opportunity in tech? I think software and cybersecurity, I 0:18:59.640 --> 0:19:02.200 think iber security, front and zone names a cow out, 0:19:02.280 --> 0:19:06.720 do z Scale or Tenable, Apple, Microsoft continue to be 0:19:07.000 --> 0:19:09.680 our top favorites in terms of tech, and then I 0:19:09.760 --> 0:19:12.680 think in disruptive tech, you look at EVS memes like 0:19:12.760 --> 0:19:15.080 a Tessla. You know, I think way oversold, you know, 0:19:15.200 --> 0:19:18.280 even though the Twitter Circus show continues to play on. Yeah, 0:19:18.440 --> 0:19:20.960 something else for us to watch as always, Dan, thanks 0:19:21.000 --> 0:19:24.920 for your thoughts. Dan Ives is Managing Director Senior equity 0:19:25.000 --> 0:19:30.080 research analyst at Wedbush Securities. Nasdaq futures the tech heavy 0:19:30.160 --> 0:19:33.840 age on the rise, about a half percent gain of 0:19:34.200 --> 0:19:37.919 sixty three points for dance deck futures. SMP futures are 0:19:38.000 --> 0:19:40.160 up fifteen points, that's a gain of four tenths percent, 0:19:40.240 --> 0:19:43.320 and down futures are higher by ninety four points three 0:19:43.400 --> 0:19:47.800 tenths percent increase. The tenure treasury down two thirty seconds 0:19:48.240 --> 0:19:53.040 yield two point on the benchmark ten uere Note just ahead, 0:19:53.480 --> 0:19:57.040 another deadly mass shooting and President Biden maybe headed to 0:19:57.080 --> 0:20:00.200 Saudi Arabia with gas prices on the rise. Five things 0:20:00.240 --> 0:20:02.639 you need to notice start your day. Coming up on 0:20:02.720 --> 0:20:09.479 Bloomberg day break Bloomberg eleven three oh Weather mostly CLOUDI 0:20:09.480 --> 0:20:11.480 a chance for showers and storms today with a high 0:20:11.520 --> 0:20:14.760 near eighty degrees upper seventies clearing tomorrow, giving way to 0:20:15.000 --> 0:20:18.800 sunshine for the weekend. Right now sixty three in Central Park, 0:20:22.080 --> 0:20:26.600 broadcasting live from the Bloomberg Interactive Broker Studio in New York. 0:20:26.720 --> 0:20:31.359 Bloomberg E Living Free to Washington, d C, Bloomberg to Boston, 0:20:31.520 --> 0:20:34.920 Bloomberg one O six one to San Francisco, Bloomberg M 0:20:35.000 --> 0:20:38.080 sixteen to the Country, Sirius XM to the one nine team, 0:20:38.200 --> 0:20:41.320 and around the bloom the Bloomberg Business apt in Bloomberg 0:20:41.440 --> 0:20:50.960 Radio dot com. This is Bloomberg Daybreak. It's six thirty 0:20:51.000 --> 0:20:53.520 on Wall Street. Good morning. I'm Nathan Hagar and I'm 0:20:53.600 --> 0:20:56.040 Karen Moscow. We are just about three hours away from 0:20:56.080 --> 0:20:58.160 the open of US trading. Time for the five things 0:20:58.240 --> 0:21:00.200 you need to notice start your day. Brown to you 0:21:00.359 --> 0:21:03.480 by Interactive Brokers Global Analysts. It helps you find new 0:21:03.520 --> 0:21:08.080 global investment opportunities to diversify your portfolio and discover undervalued 0:21:08.119 --> 0:21:11.160 companies that make may have greater growth potential. Try ib 0:21:11.280 --> 0:21:14.000 k our Global Analysts today at ib k R dot com. 0:21:14.119 --> 0:21:17.800 Slash g A first, another mass shooting in the US, 0:21:17.920 --> 0:21:20.680 this time at a medical building in Tulsa, Oklahoma, that 0:21:20.800 --> 0:21:24.600 left four dead plus the shooter. Deputy Chief Eric Douglas 0:21:24.680 --> 0:21:27.280 says it took about three minutes for officers to arrive 0:21:27.359 --> 0:21:29.840 at the scene and they made contact with a gunman. 0:21:29.840 --> 0:21:33.280 About ten minutes later. The officers that did arrive, we're 0:21:33.359 --> 0:21:36.479 hearing shots in the building and that's what directed them 0:21:36.560 --> 0:21:40.080 to the second floor. Deputy Police Chief Eric Dalgleish says 0:21:40.119 --> 0:21:43.160 a man open fire on employees and visitors before turning 0:21:43.200 --> 0:21:46.080 the gun on himself. This comes after recent mass shootings 0:21:46.119 --> 0:21:48.720 and evolved the Texas and Buffalo, New York that have 0:21:48.840 --> 0:21:52.680 Democratic leaders calling for greater restrictions on guns. Melsware in 0:21:52.760 --> 0:21:55.479 DC Karen. President Biden's planning a trip to Saudi Arabia 0:21:55.560 --> 0:21:58.000 as he looks through address rising gas prices. According to 0:21:58.040 --> 0:22:00.320 a new report from The Financial Times, Saudi Arabe is 0:22:00.359 --> 0:22:03.520 prepared to pump more crews should rushes output some stances decline. 0:22:03.800 --> 0:22:06.399 The OLPEC plus coalition meets today. It's expected to ratify 0:22:06.440 --> 0:22:09.720 and modest increase checking prices now NIMEX crews down two 0:22:09.800 --> 0:22:12.480 point four at a hundred twelve dollars forty nine cents 0:22:12.520 --> 0:22:16.480 of barrel brents at a hundred Well Nathan. The financial 0:22:16.520 --> 0:22:19.560 world is reacting to the resignation of META chief operating 0:22:19.600 --> 0:22:22.879 officer Cheryl Sandberg. She became a top figure in global 0:22:22.960 --> 0:22:25.520 business in tech during her fourteen years with the company. 0:22:25.880 --> 0:22:29.000 Sendberg tells Bloomberg's Emily Chang the decision to step down 0:22:29.240 --> 0:22:31.880 wasn't easy. It really is about how I will spend 0:22:31.960 --> 0:22:34.080 my time, not how much I've been leave in the company. 0:22:34.200 --> 0:22:36.159 I've believe in the company, but as much as I 0:22:36.240 --> 0:22:39.520 ever did and staying on board, and I really have 0:22:39.640 --> 0:22:41.880 complete confidence in the team Mark and I have built. 0:22:42.359 --> 0:22:45.040 Cheryl Zenberg says she wants to do more philanthropy. She 0:22:45.119 --> 0:22:47.879