WEBVTT - Bloomberg Daybreak: July 13, 2022 - Hour 1 (Radio) 0:00:04.600 --> 0:00:08.119 Live from the Bloomberg Interactive Burger Studios is Bloomberg day 0:00:08.119 --> 0:00:11.840 Break for Wednesday, July thirteen two. Coming up this hour, 0:00:12.320 --> 0:00:15.920 Wall Street awaits this morning's key report on inflation, Oil 0:00:16.000 --> 0:00:20.079 prices stabilized following yesterday sell off. Twitter fires back in 0:00:20.120 --> 0:00:22.720 its battle with Elon Musk, and we take you to 0:00:22.840 --> 0:00:26.400 Israel where President Biden begins his Middle East trip. Volting 0:00:26.480 --> 0:00:28.960 accident in the Hudson River is left two people dead, 0:00:29.040 --> 0:00:31.600 plus a gun rights group is suing New York's assault 0:00:31.640 --> 0:00:35.360 weapons Man. I'm Michael lar More. Ahead, I'm John stash 0:00:35.440 --> 0:00:38.200 Our sports the Cincinnati Reds with four of the ninths done. 0:00:38.280 --> 0:00:40.400 The Yankees sent them to a third strade loss. Come 0:00:40.400 --> 0:00:46.400 that's lost in Atlanta. That's all trading ahead on Bloomberg 0:00:46.479 --> 0:00:51.560 Daybreak on Bloomberg Elibing Free on New York, Bloomberg one, Washington, 0:00:51.640 --> 0:00:55.760 d C, Bloomberg one six one, Boston, Bloomberg nine sixties, 0:00:55.760 --> 0:00:59.920 San Francisco, Syrius Exam one nineteen and around the world. 0:01:00.040 --> 0:01:03.600 Then Bloomberg Radio dot Com and via the Bloomberg Business App. 0:01:07.760 --> 0:01:10.720 Good morning, I'm Nathan Hagar, and I'm Karen Moscow and 0:01:10.800 --> 0:01:13.600 U West Dock Index futures are higher this morning. We're 0:01:13.600 --> 0:01:15.320 coming up to five o one on Wall Street, and 0:01:15.400 --> 0:01:17.360 we check the markets every fifteen minutes. In while the 0:01:17.360 --> 0:01:21.240 trading day on Bloomberg, SNP futures up eleven points. This morning, 0:01:21.280 --> 0:01:24.680 Down futures up seventy five, NASDACK futures up forty seven. 0:01:24.840 --> 0:01:27.720 The decks in Germany's down seven tenths of a percent. 0:01:28.000 --> 0:01:30.800 Ten year treasury up to thirty seconds yield two point 0:01:30.880 --> 0:01:33.600 nine five percent, and they yield on the two year 0:01:33.680 --> 0:01:37.319 at three point oh three percent. Nathan Karen, we begin 0:01:37.400 --> 0:01:40.520 this morning with the big inflation report Wall Street is 0:01:40.560 --> 0:01:43.720 bracing for three and a half hours from now. In Washington, 0:01:43.880 --> 0:01:47.039 the government issues the Consumer Price Index for June, and 0:01:47.160 --> 0:01:50.320 it is expected to show no let up on inflation. 0:01:50.640 --> 0:01:53.120 Amy Morris has more from our Bloomberg ninety nine one 0:01:53.120 --> 0:01:56.800 newsroom in Washington. May's CPI rose eight point six percent 0:01:56.880 --> 0:01:59.680 year over year abroad based increase and the largest in 0:01:59.760 --> 0:02:02.720 four of years. June's reading could be even higher based 0:02:02.720 --> 0:02:05.480 on a survey of Wall Street economists. At the same time, 0:02:05.480 --> 0:02:08.920 Blueberg Economics says today's report will be balanced by recent 0:02:08.960 --> 0:02:12.840 evidence that inflation as well as economic growth may be moderating. 0:02:13.080 --> 0:02:15.920 The Federal Reserve is expected to keep raising interest rates 0:02:15.919 --> 0:02:19.760 to contain inflation by tempering economic growth. In Washington, I'm 0:02:19.800 --> 0:02:22.400 mayby Moore as Bloomberg Daybreak, right, Amy, thank you. The 0:02:22.400 --> 0:02:26.080 top priority for the Federal Reserve as curbing inflation. Richmond 0:02:26.120 --> 0:02:29.160 Fed President Thomas Barkin sees another fifty or seventy five 0:02:29.240 --> 0:02:32.280 basis point rate high coming this month. We're engaged in 0:02:32.320 --> 0:02:36.440 a very challenging exercise, which is to try to cool 0:02:36.440 --> 0:02:39.240 the economy down to normal levels, right in an effort 0:02:39.280 --> 0:02:43.000 to bring inflation under control, but without the intent of 0:02:43.280 --> 0:02:46.320 trying to cool it so down that that that the 0:02:46.360 --> 0:02:49.720 decline is calamitous. The right policies to get inflation under control. 0:02:50.320 --> 0:02:53.919 Richmond Fed President Thomas Barkin says today's CPI reading will 0:02:53.919 --> 0:02:56.440 inform the Central banks next move. He is not a 0:02:56.520 --> 0:02:59.519 voter on this year's rate setting. F o MC higher 0:02:59.520 --> 0:03:02.200 gas and oil prices taring have been major contributors to 0:03:02.240 --> 0:03:05.239 the spike in inflation, and today we're seeing crude higher 0:03:05.280 --> 0:03:09.520 following yesterday's nearly eight percent decline. This morning, the International 0:03:09.600 --> 0:03:12.240 Energy Agency is warning that oil prices pose a high 0:03:12.360 --> 0:03:15.280 risk to the global economic recovery, with signs that phil 0:03:15.320 --> 0:03:18.079 costs are starting to take their toll on demand growth. 0:03:18.160 --> 0:03:21.040 Checking prices now nimex scrude is up one point three 0:03:21.040 --> 0:03:24.480 percent or a dollar twenty three nine seven cents for 0:03:24.520 --> 0:03:27.840 a barrel of West Texas Intermediate Well, Nathan the Surgeon, 0:03:27.880 --> 0:03:31.200 gasoline prices this year has Americans changing their minds on 0:03:31.240 --> 0:03:33.639 the next car they'll drive. We get the details from 0:03:33.680 --> 0:03:36.960 Bloomberg's Lisa Mateo. According to a survey by the American 0:03:37.000 --> 0:03:40.640 Automobile Association, a quarter of Americans say their next car 0:03:40.720 --> 0:03:43.480 will be an electric vehicle. More than three fourths of 0:03:43.520 --> 0:03:46.160 them say their interest is driven by a desire to 0:03:46.200 --> 0:03:49.200 save on fuel costs. Gas prices, which have come down 0:03:49.240 --> 0:03:51.600 this month, reached a record five dollars and two cents 0:03:51.600 --> 0:03:54.560 a gallon in June. Millennials are the most eager to 0:03:54.600 --> 0:03:57.800 electrify their ride, with thirty percent saying they plan to 0:03:57.840 --> 0:04:00.720 buy an e V next. Last year, on three point 0:04:00.760 --> 0:04:04.320 two percent of US vehicles for e vs. Lisa Matteo 0:04:04.480 --> 0:04:08.000 Bloomberg Daybreak. Okay, Lisa, thank you. Let's turn to corporate 0:04:08.000 --> 0:04:12.120 news now, where Twitter is escalating its battle with Elon Musk. 0:04:12.360 --> 0:04:15.160 For the details, we are joined Live five Bloomberg's Renia Young, 0:04:15.200 --> 0:04:18.760 Good morning, Good morning, Nathan. Twitter is suing Elon Musk 0:04:18.839 --> 0:04:22.280 after he abandoned his forty four billion dollar takeover bid, 0:04:22.560 --> 0:04:25.839 and the company is accusing him of having buyer's remorse 0:04:25.960 --> 0:04:29.560 after his fortune declined. Twitter lawyers say Musk should be 0:04:29.680 --> 0:04:32.960 forced to honor his agreement. The lawsuit says that Twitter 0:04:33.000 --> 0:04:36.320 has bent over backwards to provide him with the information 0:04:36.400 --> 0:04:40.120 he's requested. Musk has been disputing Twitter's claims that less 0:04:40.120 --> 0:04:42.760 than five percent of its users or butts and wanted 0:04:42.760 --> 0:04:46.520 more proof, but he ultimately abandoned the deal partially because 0:04:46.520 --> 0:04:49.400 of those concerns. The filing is setting up what will 0:04:49.440 --> 0:04:53.000 be a closely watched battle in the Delaware court system. 0:04:53.120 --> 0:04:56.599 Live in New York. I'm rened a Young Bloomberg Daybreak right, Reneeda, 0:04:56.640 --> 0:04:58.880 thank you. But there's also news from Google today. The 0:04:58.920 --> 0:05:01.880 company plans to hiring this year, and an email to 0:05:02.040 --> 0:05:06.159 staff Alphabet CEO Sundar Pasha notes the possibility of a 0:05:06.200 --> 0:05:09.520 recession and urges the company to work with greater urgency. 0:05:09.839 --> 0:05:12.719 He says Google will focus on hiring engineering, technical and 0:05:12.760 --> 0:05:15.600 other critical roles. Al turning to politics, now kring. It's 0:05:15.640 --> 0:05:19.200 all about geopolitics. With President Biden heading to the Middle East, 0:05:19.360 --> 0:05:23.200 his first stop is Israel. Bloomberg's Amrie Hordern is traveling 0:05:23.200 --> 0:05:26.160 with the President and filed this report from Jerusalem. Don't 0:05:26.200 --> 0:05:29.360 respect any major breakthroughs when it comes to United States 0:05:29.440 --> 0:05:32.560 and the Israeli government. It recently collapsed and they're looking 0:05:32.560 --> 0:05:35.440 ahead to elections in November. One key focus of this 0:05:35.440 --> 0:05:39.640 administration has been to normalize more Arab countries with Israel, 0:05:39.920 --> 0:05:41.920 and a key focus in a country to watch out 0:05:41.920 --> 0:05:45.960 for Saudi Arabia. But there won't be any massive breakthroughs 0:05:46.000 --> 0:05:48.600 when it comes to dialogue or peace talks with the Kingdom, 0:05:48.800 --> 0:05:53.400 but potentially more Saudi airspace being open to more Israeli flights. 0:05:53.680 --> 0:05:55.640 The President himself will be one of them, the first 0:05:55.640 --> 0:05:59.400 president United States to fly from Israel to Jetta. Later 0:05:59.440 --> 0:06:02.600 in the week, the President is backtracking on a campaign 0:06:02.640 --> 0:06:05.480 promise to make the Kingdom of Pariah, but at home 0:06:05.520 --> 0:06:07.400 he needs the Saudi's helped to put more oil on 0:06:07.440 --> 0:06:10.840 the market to bring gasoline prices down in Jerusalem. I'm 0:06:10.880 --> 0:06:14.080 Amory Hordern, Bloomberg News, right, and Murray, thank you well. 0:06:14.120 --> 0:06:16.479 Back here in the US, the political focus remains on 0:06:16.560 --> 0:06:19.919 Capitol Hill. The January six Committee says it's investigating the 0:06:19.960 --> 0:06:23.919 possibility that former President Trump directly tried to contact a 0:06:23.960 --> 0:06:27.240 witness for the committee. Bloomberry said, Baxter has the story. 0:06:27.600 --> 0:06:31.320 The potentially explosive announcement by Committee Vice chair List Cheney 0:06:31.400 --> 0:06:34.960 was saved for the end. After our last hearing, President 0:06:35.000 --> 0:06:39.440 Trump tried to call a witness in our investigation, a 0:06:39.560 --> 0:06:43.359 witness you have not yet seen in these hearings. That 0:06:43.560 --> 0:06:47.920 person declined to answer or respond to President Trump's call 0:06:48.279 --> 0:06:50.800 and turned over the evidence to an attorney, who in 0:06:50.880 --> 0:06:54.320 turn contact of the committee. Cheney says, now it has 0:06:54.360 --> 0:06:56.640 been turned over to the d o J for possible 0:06:56.760 --> 0:07:00.600 charges of tampering with a witness. Insane for Francisco. I'm 0:07:00.600 --> 0:07:05.000 at Baxter Bloomberg daybreak, alright, and thank you. In futures 0:07:05.000 --> 0:07:08.120 this morning on the rise, SNP futures up eleven points down, 0:07:08.120 --> 0:07:11.080 futures of eighty two, Nasdack futures of forty six, and 0:07:11.120 --> 0:07:13.440 the ten year treasury up one thirty second yeal two 0:07:13.480 --> 0:07:17.040 point nine six straight and had your latest local headlines 0:07:17.120 --> 0:07:23.560 plus the check of sports and miss is Bloomberg right, Karen, 0:07:23.560 --> 0:07:25.520 thank you. It's five or seven on Wall Street, seventy 0:07:25.600 --> 0:07:28.640 six degrees in Central Park. Already dealing with an accident 0:07:28.720 --> 0:07:31.600 investigation in te Neck. The eight and nine five local 0:07:31.680 --> 0:07:34.560 lanes are closed between exits seventy and seventy one. More 0:07:34.600 --> 0:07:37.520 coming up in traffic. First, Michael bar with an accident 0:07:38.000 --> 0:07:41.240 on the Hudson River. Michael, thank you very much. Nathan. 0:07:41.560 --> 0:07:44.520 At least two people are dead and ten injured after 0:07:44.560 --> 0:07:47.320 a boat cap sized in New York City's Hudson River. 0:07:47.560 --> 0:07:49.840 The cause of the accident is under investigation, but the 0:07:49.880 --> 0:07:53.360 twenty seven foot private boat was in calm waters when 0:07:53.360 --> 0:07:56.480 he went down near Midtown Manhattan. New York City Mayor 0:07:56.600 --> 0:07:59.240 Eric Adams called it a devastating moment for the city. 0:07:59.400 --> 0:08:03.840 Between York Ward Away Harbor FDN Y and girls who 0:08:03.920 --> 0:08:08.800 participated a week clearly saved live. New York Fire Commissioner 0:08:08.880 --> 0:08:12.160 Laura Kavanaugh spoke about the conditions of the others. Are 0:08:12.200 --> 0:08:15.360 two New Yorker is in critical condition in the hospitals 0:08:15.360 --> 0:08:19.160 and an additional New Yorker who is stable but critical 0:08:19.160 --> 0:08:21.240 at the hospital. At this time. We also have eight 0:08:21.280 --> 0:08:24.760 additional patients who are green tags and are in stable 0:08:24.760 --> 0:08:28.240 condition Fire Commissioner Laura Kavanaugh. The vote was charted by 0:08:28.280 --> 0:08:32.320 a group of family and friends. The January six panel 0:08:32.400 --> 0:08:35.960 revealed Donald Trump fought objections from his White House lawyers 0:08:36.000 --> 0:08:40.360 to a plan eventually discarded to seize states voting machines. 0:08:40.840 --> 0:08:43.400 The panel says, then, in the last ditch effort to 0:08:43.440 --> 0:08:46.920 salvage is presidency, Trump summoned supporters to march on the 0:08:47.000 --> 0:08:50.520 US capital for were turned into the deadly riot. Former 0:08:50.600 --> 0:08:56.199 oath Keeper spokesman Jason van Tatanhov testified he wants more accountability. 0:08:56.440 --> 0:08:59.200 There was a gallows set up in front of the capital. 0:09:00.160 --> 0:09:02.840 Could have been the spark that started a new civil 0:09:02.840 --> 0:09:07.040 war and no one would have won there. That would 0:09:07.040 --> 0:09:11.640 have been good for no one. Former Oathkeeper Jason van 0:09:11.720 --> 0:09:14.400 Tatenhove says that he's worried about what will happen if 0:09:14.400 --> 0:09:18.000 Trump is re elected. Local media in Texas released edited 0:09:18.040 --> 0:09:21.960 surveillance video showing law enforcement and Vivaldi waiting for more 0:09:22.000 --> 0:09:24.720 than an hour to take action after a gunman entered 0:09:24.720 --> 0:09:28.720 the broad Elementary school, killing nineteen and two teachers. Police 0:09:28.720 --> 0:09:31.480 officers wearing body armor are seen in the video waiting 0:09:31.480 --> 0:09:34.280 in the hallway during the massacre. A gun rights groups 0:09:34.280 --> 0:09:37.720 sued to overturn New York's assault weapons van less than 0:09:37.720 --> 0:09:40.080 a month after the U. S. Supreme Court struck down 0:09:40.120 --> 0:09:43.000 a related state law that limited who could carry a 0:09:43.120 --> 0:09:47.240 handgun in public. According to the Firearms Policy Coalition, the 0:09:47.240 --> 0:09:51.520 assault weapons ban violates the Second Amendment. Global News twenty 0:09:51.520 --> 0:09:54.160 four hours a day on air and on Bloomberg Quicktake, 0:09:54.280 --> 0:09:56.960 powered by more than seven journalists analyst more than a 0:09:57.000 --> 0:10:00.559 hundred twenty countries. Michael bar this is Bloomberg. Nathan. All right, Michael, 0:10:00.600 --> 0:10:07.120 thank you, Coming up to five ten on Wall Street. 0:10:07.160 --> 0:10:09.720 Time for the Bloomberg Sports UPDATEK Good morning, John Stanshine, 0:10:09.760 --> 0:10:12.600 Good morning, Nathan. So many bright spots to this Yankee season, 0:10:12.600 --> 0:10:15.400 maybe none brighter than the pitching of reliever Clay Holmes, 0:10:15.440 --> 0:10:17.760 acquired a year ago from Pittsburgh Homes. Gave up a 0:10:17.840 --> 0:10:20.680 run on opening Day and then didn't give up another 0:10:20.760 --> 0:10:22.520 for the next two and a half months. But the 0:10:22.559 --> 0:10:24.320 Red Sox didn't get a big hit off him last 0:10:24.320 --> 0:10:26.719 weekend in one of their comeback wins, and last night 0:10:26.720 --> 0:10:30.200 at the stadium, gainst the lowly Reds, Holmes suddenly couldn't 0:10:30.200 --> 0:10:32.760 get anyone out a walk a hit, a hit batsman, 0:10:33.120 --> 0:10:36.200 another single, another hit five pitch at Holmes was taken 0:10:36.200 --> 0:10:38.839 out Jonathan India with two outs of the ninth and 0:10:38.920 --> 0:10:41.800 delivered a game winning two runs single off Wandy Peralta 0:10:41.880 --> 0:10:45.160 and Cincinnati with four in the ninth stunned the Yankees 0:10:45.200 --> 0:10:46.719 four to three. Of the Yanks have now lost three 0:10:46.720 --> 0:10:49.240 in a row, blown leads in all three. It's only 0:10:49.280 --> 0:10:51.840 their second three game losing three. The other was back 0:10:51.840 --> 0:10:54.520 in May. Mets in Atlanta had just five hits, lost 0:10:54.520 --> 0:10:56.320 four to one. Is Matt Olsen at a two run 0:10:56.360 --> 0:10:59.559 omber six innning off David Peterson. Adam Duval followed with 0:10:59.600 --> 0:11:01.600 the two run shot at any later off seth Lugo. 0:11:01.640 --> 0:11:04.480 The series ends this afternoon. At this time tomorrow in 0:11:04.559 --> 0:11:08.720 Scotland will be underway the one and fifty at Open Championship. 0:11:08.800 --> 0:11:11.480 It's at historic St. Andrews. That's why Tiger Wood wanted 0:11:11.520 --> 0:11:14.400 to play. But most of Tigers pressroo yesterday where his 0:11:14.440 --> 0:11:17.560 thoughts about the new Live Tour. He's not a fan. 0:11:20.240 --> 0:11:24.000 That is a possibility that some players will never ever 0:11:24.000 --> 0:11:25.840 get a chest to play a major championship. Never got 0:11:25.840 --> 0:11:30.240 a chest experience this right here. Um I walked out 0:11:30.280 --> 0:11:35.160 in the fairways August, Nashville. I mean, uh that that 0:11:35.320 --> 0:11:37.600 to me? I just don't I just to me, I 0:11:37.640 --> 0:11:40.080 just don't understand it, says the live guys have turned 0:11:40.080 --> 0:11:42.080 their back on the p G A. He teas off 0:11:42.120 --> 0:11:44.040 tomorrow ten Easter. He's playing with the US Open. Chat 0:11:44.120 --> 0:11:47.840 Matt Fitzpatrick, John stash Award Bloomberg Sports. All right, John, 0:11:47.880 --> 0:11:50.800 thanks SMP futures of ten points down, futures of seventy 0:11:51.520 --> 0:11:54.360 nastac futures are hired by thirty nine points. Ni'm x 0:11:54.400 --> 0:11:57.560 screwed up one point two per cent at n barrel 0:11:57.720 --> 0:12:01.679 are elevated oil prices with US for a while. Bloomberg's 0:12:01.679 --> 0:12:08.200 Will Kennedy joins us. Next to this is Bloomberg Bloomberg 0:12:08.240 --> 0:12:10.160 eleven three oh oather partly the mostly sunny today with 0:12:10.200 --> 0:12:12.680 a high your ninety degrees operated. These are the chance 0:12:12.720 --> 0:12:15.800 drafting in showers and storms tomorrow will be operatees mix 0:12:15.840 --> 0:12:18.920 of sun and clouds on Friday. Right now seventy six 0:12:19.000 --> 0:12:24.800 in Central Park Markets, headlines and breaking news twenty four 0:12:24.800 --> 0:12:27.840 hours a day at Bloomberg dot Com, the Bloomberg Business 0:12:27.880 --> 0:12:31.040 at and at Bloomberg Quick Take. This is a Bloomberg 0:12:31.160 --> 0:12:40.240 business flash and I'm Karen Moscow. US DOT Index futures 0:12:40.240 --> 0:12:43.000 are higher this morning, while stocks in Europe and dip 0:12:43.040 --> 0:12:46.760 and caustious trading dominated by a dimming outlook and an 0:12:46.760 --> 0:12:49.760 anxious wait for data that may show US inflation at 0:12:49.760 --> 0:12:52.680 a fresh four decade high. We checked the markets every 0:12:52.679 --> 0:12:55.240 fifteen minutes throughout the trading day on Bloomberg. Right now, 0:12:55.360 --> 0:12:57.800 S and P futures are up about ten points down. 0:12:57.800 --> 0:13:00.520 Future is up seventy one. NAS day futures up thirty eight. 0:13:00.760 --> 0:13:03.280 The decks in Germany is down eight tenths of upper cent. 0:13:03.400 --> 0:13:06.240 The ten year treasury up to thirty seconds two point 0:13:06.320 --> 0:13:08.560 nine five percent. They yield on the two year three 0:13:08.600 --> 0:13:11.559 point oh four percent. Nin Max Screwed oil is at 0:13:11.600 --> 0:13:13.760 one point one percent of a dollar eight at ninety 0:13:13.800 --> 0:13:16.480 six dollars and ninety two cents of Daryl coll Max school. 0:13:16.520 --> 0:13:18.680 The tenth of upper cent or two dollars is seventeen 0:13:18.720 --> 0:13:22.240 twenty six ninety announce the Euro one point zero zero 0:13:22.320 --> 0:13:24.720 three seven against the dollar, British pound one point one 0:13:24.800 --> 0:13:27.640 eight nine, the n at one thirty seven point one 0:13:27.760 --> 0:13:30.440 five and look at it. Bitcoin this morning higher up 0:13:30.440 --> 0:13:33.559 more than two percent at nineteen thousand, eight hundred fifty dollars. 0:13:33.760 --> 0:13:36.520 Now that CPI report is at eight thirty Wall Street time, 0:13:36.559 --> 0:13:39.080 the Federal Reserve at least as its page book at two, 0:13:39.360 --> 0:13:42.320 and Delta is among companies schedule to report earnings today. 0:13:42.640 --> 0:13:45.240 That's a Bloomberg Business Flash. Now here's Michael Barr with 0:13:45.280 --> 0:13:47.680 more on what's going on around the world. Munchael, Good morning, 0:13:47.760 --> 0:13:51.040 Good morning, Karen. January six, Committee co chair Liz Cheney 0:13:51.120 --> 0:13:54.040 said the panel I had notified the Justice Department that 0:13:54.240 --> 0:13:57.920 Donald Trump himself at contact at the potential witness who 0:13:58.040 --> 0:14:01.360 was talking with the committee. The panel also presented evidence 0:14:01.440 --> 0:14:04.720 that Trump aid secretly planned for a second rally stage 0:14:04.920 --> 0:14:07.280 across from the capital on the day of the attack. 0:14:07.760 --> 0:14:10.800 President Joe Biden lands in Israel this afternoon for three 0:14:10.880 --> 0:14:14.319 days stop before we heading to Saudi Arabia. The Ron's 0:14:14.440 --> 0:14:18.480 quickly evolving nuclear program is high on the agenda. In baseball, 0:14:18.520 --> 0:14:21.520 the Yankees and Mets lost. Also in the losing column, 0:14:21.560 --> 0:14:24.960 the Red Sox, the Orioles, A's and Giants won Global 0:14:24.960 --> 0:14:26.960 News twenty four hours a day on it or and 0:14:27.080 --> 0:14:29.640 on Bloomberg quick Take, powered by more than twenty seven 0:14:29.720 --> 0:14:32.360 hundred journalists and analysts more than a hundred twenty countries. 0:14:32.760 --> 0:14:36.120 Michael Barr And this is Bloomberg. Nathan Okay, Michael, thank you. 0:14:36.160 --> 0:14:38.520 It's five nineteen on Wall Street Live from the Bloomberg 0:14:38.600 --> 0:14:41.680 Interactive Broker Studios. This is Bloomberg Daybreak. And while we 0:14:41.720 --> 0:14:44.760 wait for that all important June Producer price index later 0:14:44.840 --> 0:14:46.720 this morning, we want to take a closer look at 0:14:46.720 --> 0:14:49.040 the oil market because that's been such a big piece 0:14:49.080 --> 0:14:50.920 of the price pressure as we've been experiencing over the 0:14:51.040 --> 0:14:54.080 last several months. Now, right now, crude is trading about 0:14:54.080 --> 0:14:56.760 a hundred dollars of barrel, but run around nineties seven 0:14:57.120 --> 0:14:59.800 for West Texas Intermediate, giving up most of the games 0:15:00.120 --> 0:15:03.320 we saw after Russia's invasion of Ukraine. But the era 0:15:03.400 --> 0:15:06.360 of higher fuel prices maybe with us longer than many 0:15:06.360 --> 0:15:11.200 policymakers and drivers might like. Bloomberg's senior executive editor for 0:15:11.320 --> 0:15:14.160 Energy and Commodities, Will Kennedy has a story about this 0:15:14.200 --> 0:15:17.600 for Bloomberg Business Week, and Will joins us now with 0:15:17.640 --> 0:15:20.120 more on it. Well, good morning. We kind of heard 0:15:20.160 --> 0:15:22.760 about this just this week from the head of the 0:15:22.800 --> 0:15:26.360 International Energy Agency saying the worst of the energy crunch 0:15:26.480 --> 0:15:31.800 maybe ahead of US. Why. I think there are several reasons. Yes, 0:15:31.840 --> 0:15:33.200 some of the heat, as you say, is kind of 0:15:33.200 --> 0:15:36.160 out of viral prices in recent weeks as concerns about 0:15:36.240 --> 0:15:38.720 the state of the global economy has grown and the 0:15:38.840 --> 0:15:41.280 dollar has risen, which tends to be bears viral prices. 0:15:41.320 --> 0:15:45.880 But when you look at the fundamental underlying supply and 0:15:45.920 --> 0:15:49.200 demand picture, there's no reason to see any sort of 0:15:49.200 --> 0:15:52.720 collapse in virald prices. And in fact, you know, most 0:15:53.040 --> 0:15:56.600 commentators think that the market will remain tight. There are 0:15:56.600 --> 0:16:00.360 a few reasons for that. Demand remains robust and it's 0:16:00.360 --> 0:16:03.600 still recovering from the pandemic, and people want to be 0:16:03.640 --> 0:16:06.360 out traveling again and flying again and driving again, and 0:16:06.360 --> 0:16:09.400 that's adding adding to demand, and it's expected to continue 0:16:09.440 --> 0:16:11.440 to grow. And then on the supply side, you know, 0:16:11.480 --> 0:16:14.280 OPEC is struggling to meet its current targets. There maybe 0:16:14.320 --> 0:16:16.040 a little bit more oil from Saudi Arabia in the 0:16:16.080 --> 0:16:18.320 U a E. And that's something that Joe Biden will 0:16:18.320 --> 0:16:20.920 be discussing with the Saudi's when he's in the Kingdom 0:16:21.000 --> 0:16:25.080 later this week. But other producers are struggling to increase production. 0:16:25.560 --> 0:16:29.040 US shale industry isn't booming like it once was UM 0:16:29.040 --> 0:16:33.200 and traditional basins UM investment is quite low, so there's 0:16:33.240 --> 0:16:35.200 no reason to see a sudden glot of oil, and 0:16:35.280 --> 0:16:37.200 in fact, a lot of people think that the picture 0:16:37.240 --> 0:16:40.680 will remain, as I say, fairly well balanced. It does 0:16:40.760 --> 0:16:44.240 bring some attention, as you mentioned to President Biden's trip 0:16:44.280 --> 0:16:47.160 to Saudi Arabia later on this week into the weekend. 0:16:47.200 --> 0:16:49.320 We heard from the Biden administration this week, and they 0:16:49.360 --> 0:16:52.960 think that oil producing countries may have some spare capacity 0:16:53.000 --> 0:16:57.200 to boost production. Is the Biden administration wrong here? No 0:16:57.240 --> 0:17:00.520 one knows the precise numbers. Yes, I think Audi Arabia 0:17:00.560 --> 0:17:02.880 does have some extra spare capacity. The UAU probably has 0:17:02.880 --> 0:17:05.439 a little bit of spare capacity too, although as I 0:17:05.440 --> 0:17:08.000 pointed out in my story, the leader of the u 0:17:08.040 --> 0:17:09.919 A told the French president that he didn't think he 0:17:09.960 --> 0:17:11.760 had that much more to give a couple of weeks ago. 0:17:12.400 --> 0:17:14.960 But there's probably some oil for both. The question is 0:17:14.960 --> 0:17:18.440 exactly how much and importantly for how long. Saudi Arabia 0:17:18.480 --> 0:17:21.280 is producing at very high levels already. Um IT says 0:17:21.320 --> 0:17:23.080 it can go to twelve million bells a day, which 0:17:23.119 --> 0:17:26.520 is you know, about another million bolls from where it 0:17:26.560 --> 0:17:28.879 is now, but it's only ever hit twelve million bills 0:17:28.960 --> 0:17:31.399 for a few days, and it's not known to the 0:17:31.440 --> 0:17:33.800 market whether it can do that on us is for 0:17:33.920 --> 0:17:37.480 sustained period. There's another issue here as well. Once that 0:17:37.600 --> 0:17:41.080 extra Saudian u A oil comes into the market, then 0:17:41.119 --> 0:17:43.919 the world has very little spare capacity. So traders have 0:17:44.000 --> 0:17:46.760 to confront the world where if there's another outage and 0:17:46.760 --> 0:17:50.400 we've seen oil bowels disappear from Libya because of unrest there, 0:17:50.440 --> 0:17:52.920 for example, or there's a big hurricane in the Gulf 0:17:52.960 --> 0:17:57.400 of Mexico later in the year, then the market has 0:17:57.440 --> 0:18:00.359 little ability to respond. That swing producer role of Saudi 0:18:00.359 --> 0:18:02.960 Arabia has normally played is all tapped out, and I 0:18:02.960 --> 0:18:05.320 think that's another issue that the market is going to 0:18:05.400 --> 0:18:08.240 have to deal with and another reason why prices may 0:18:08.280 --> 0:18:11.200 remain fairly elevated now. Of course, Russia plays a big 0:18:11.240 --> 0:18:13.160 part in this as well, right I mean, we heard 0:18:13.160 --> 0:18:16.240 from JP Morgan is putting out a worst case scenario 0:18:16.320 --> 0:18:19.040 that prices could spike a three eighty dollars a barrel 0:18:19.080 --> 0:18:22.199 if for Russian crude gets off the market. Russia is 0:18:22.280 --> 0:18:25.879 the great actor in global oil markets right now. Clearly 0:18:25.920 --> 0:18:28.320 it's using its leverage and global oil markets is one 0:18:28.320 --> 0:18:31.200 of the world's most important supplies of crude and natural 0:18:31.240 --> 0:18:36.280 gas to further its political ambitions in the war in Ukraine. Um, 0:18:36.320 --> 0:18:38.920 we see how it's putting pressure in on Europe through 0:18:38.920 --> 0:18:41.880 the gas market. It could do something with oil. So far, 0:18:41.960 --> 0:18:46.760 it's oil production has fallen a bit because traditional buyers 0:18:46.760 --> 0:18:51.840 in Europe have shunned Russian crude and products. But a 0:18:51.840 --> 0:18:54.159 lot of that oil has switched to India and China. 0:18:54.560 --> 0:18:57.200 But if Putin really wanted to give the global economy 0:18:57.200 --> 0:19:00.919 a shock, he could reduce rushes of reduction and that 0:19:00.960 --> 0:19:03.800 could send prices stratos fat. Because JP Morgan, we're exploding 0:19:03.840 --> 0:19:07.920 in that note. Is that likely? Perhaps not, but definitely 0:19:07.920 --> 0:19:12.160 President Putin is another factor that traders have to put 0:19:12.200 --> 0:19:15.399 into their calculations. Thanks for this well, great having you 0:19:15.440 --> 0:19:18.879 on with us this morning. Will Kennedy Senior Executive editor 0:19:18.920 --> 0:19:22.240 for Energy and Commodities for Bloomberg News, and look out 0:19:22.280 --> 0:19:24.560 for his story on the Bloomberg terminal it's coming up 0:19:24.560 --> 0:19:28.520 in Bloomberg Business Week on why elevated oil prices could 0:19:28.520 --> 0:19:31.320 be with us four months, if not years thanks to 0:19:31.359 --> 0:19:35.280 the underlying dynamics of the oil market. Looking ahead to 0:19:35.440 --> 0:19:38.560 the market open on Wall Street, futures are a touch 0:19:38.640 --> 0:19:42.159 higher as we get ready for June. Consumer prices. S 0:19:42.240 --> 0:19:45.119 ANDP futures are higher by nine points. STOW futures up 0:19:45.160 --> 0:19:48.920 sixty eight. Nasdaq futures are higher by thirty nine points ten. 0:19:48.960 --> 0:19:51.639 Your treasury is up to thirty seconds now, the yield 0:19:51.640 --> 0:19:54.560 almost two point nine six yield on the two year 0:19:54.720 --> 0:19:59.959 three point zero four per cent. You're listening to bloom 0:20:00.240 --> 0:20:09.560 Daybreak Bloomberg eleven three oh weather. Sunshine in a high 0:20:09.600 --> 0:20:13.160 near ninety today, upper eighties possible tomorrow with a chance 0:20:13.240 --> 0:20:16.040 drafting in showers and storms. Makes of sun and clouds 0:20:16.119 --> 0:20:19.040 upgradies for Friday. Right now seventy six in Central Park. 0:20:24.960 --> 0:20:29.480 Broadcasting live from the Bloomberg Interactive Broker Studio in New York. 0:20:29.600 --> 0:20:34.240 Bloomberg E Living Free to Washington, d C, Bloomberg to Boston, 0:20:34.359 --> 0:20:37.720 Bloomberg one O six one to San Francisco, Bloomberg NUN 0:20:37.840 --> 0:20:40.920 sixty to the country, Sirius XM to A one nineteen 0:20:41.040 --> 0:20:44.560 and around the globe the Bloomberg Business and Bloomberg Radio 0:20:44.680 --> 0:20:53.920 dot Com. This is Bloomberg Daybreak. It's five thirty on 0:20:53.960 --> 0:20:56.920 Wall Street. Good morning, I'm Nathan Hagar and I'm Karen Moscow. 0:20:57.000 --> 0:20:59.520 We are just about four hours away from the open 0:20:59.520 --> 0:21:01.280 of US trading. Let's see at you up to date 0:21:01.320 --> 0:21:02.920 on the news you need to know at this hour, 0:21:03.000 --> 0:21:05.640 and we begin with the latest Consumer Price Index, which 0:21:05.640 --> 0:21:08.960 will be released three hours from now. Bloomberg's Vindeydale Judai 0:21:09.040 --> 0:21:12.639 says we're likely to see another hot inflation reading. May 0:21:12.760 --> 0:21:15.840 CPI rose eight point six percent over a year abroad 0:21:15.920 --> 0:21:19.240 based increase in the largest and forty years. June's reading 0:21:19.320 --> 0:21:21.640 could be even higher based on a survey of Wall 0:21:21.720 --> 0:21:25.520 Street economists. At the same time, Bloomberg Economics as today's 0:21:25.560 --> 0:21:28.840 report will be balanced by recent evidence that inflation as 0:21:28.920 --> 0:21:32.040 well as economic growth may be moderating. The Federal Reserve 0:21:32.160 --> 0:21:35.240 is expected to keep raising interest rates to contain inflation 0:21:35.359 --> 0:21:39.280 by tempering economic growth. Vinnie der Judeace, Bloomberg day Break, 0:21:39.440 --> 0:21:42.240 All right, Vinnie, thank you. Meantime, the International Monetary Fund 0:21:42.280 --> 0:21:45.400 cut it's month old growth projections for the US economy, 0:21:45.480 --> 0:21:49.200 warning that a broad based surgeon inflation poses systemic risks 0:21:49.280 --> 0:21:52.520 about the U, S and global economies. And Federal Reserve 0:21:52.560 --> 0:21:55.480 Bank of Richmond President Thomas Barkins says, the feds top 0:21:55.560 --> 0:21:59.040 priority is to curb inflation. The FEDS tools work over time, 0:21:59.520 --> 0:22:02.679 so i X effect inflation to come down, but not immediately, 0:22:03.200 --> 0:22:06.920