WEBVTT - Bloomberg Daybreak: May 9, 2022 - Hour 1 (Radio) 0:00:03.480 --> 0:00:06.760 Live from the Bloomberg Interactive Burger Studios is his Bloomberg 0:00:06.840 --> 0:00:10.280 Daybreak for a Monday, May nine two Coming up this hour, 0:00:10.600 --> 0:00:13.360 stocks fall and the dollar extends its rally as we 0:00:13.440 --> 0:00:16.880 begin a new trading week. Vladimir Putin justifies his invasion 0:00:16.880 --> 0:00:20.160 of Ukraine at the annual Victory Day celebration in Russia, 0:00:20.360 --> 0:00:23.520 and President Biden plants SWAF for free Internet to millions 0:00:23.520 --> 0:00:26.960 of homes. New York Governor Kathy Hocle test positive for 0:00:27.080 --> 0:00:29.960 COVID plus. Democrats held the pass legislation to preserve a 0:00:30.040 --> 0:00:34.120 Borgian rights protections. I'm Michael Barr. More ahead, I'm John 0:00:34.120 --> 0:00:37.040 stash Hour. In sports, Mets and Yankees with doubleheaders split 0:00:37.120 --> 0:00:40.240 the NBA playoff wins for Dallas and Philadelphia. The Rangers 0:00:40.240 --> 0:00:45.280 have Game four in Pittsburgh tonight. That's all s train 0:00:45.360 --> 0:00:48.720 ahead on Bloomberg Daybreak on Bloomberg E Live in free 0:00:48.720 --> 0:00:53.159 on New York, Bloomberg one, Washington, d C, Bloomberg one 0:00:53.200 --> 0:00:57.680 oh six one, Boston, Bloomberg nine sixties, San Francisco, Syrius 0:00:57.720 --> 0:01:00.920 Exam one nineteen and around the world Old on Bloomberg 0:01:01.000 --> 0:01:08.160 Radio dot Com and via the Bloomberg Business app. Good morning. 0:01:08.160 --> 0:01:11.520 I'm Nathan Hagar and I'm Karen Moscow. US DOT index 0:01:11.600 --> 0:01:15.440 futures are following this morning, led by technology. Shares were 0:01:15.480 --> 0:01:17.000 coming up to five o one on Wall Street, and 0:01:17.000 --> 0:01:19.319 we checked the markets every fifteen minutes throughout the trading 0:01:19.400 --> 0:01:23.160 day on Bloomberg. Right now, SNP futures are down fifty 0:01:23.200 --> 0:01:26.880 six points down, futures down three hundred seventy two, NASTAG 0:01:27.000 --> 0:01:29.800 futures are down two hundred three that's down one point 0:01:29.880 --> 0:01:33.480 six percent. Ten year Treasury down thirteen thirty seconds, held 0:01:33.520 --> 0:01:36.560 three point one seven percent, and the yield on the 0:01:36.600 --> 0:01:39.560 two year two point seven two percent. Nathan, Well, Karen, 0:01:39.560 --> 0:01:41.360 it sounds like more of the same as we enter 0:01:41.400 --> 0:01:44.520 a new trading week. Stock slumping. The dollar is trading 0:01:44.520 --> 0:01:47.480 at a two year high as the feds aggressive tightening 0:01:47.480 --> 0:01:51.520 path and China's COVID lockdowns hit the economic outlook. Steve 0:01:51.520 --> 0:01:55.440 Brown is senior portfolio manager at American Century Investment Management. 0:01:55.640 --> 0:01:58.200 The Fed's gonna continue to raise rates till they get 0:01:58.200 --> 0:02:01.000 the results they want, and I think one the after 0:02:01.040 --> 0:02:03.360 effects of their rate hikes would be at a slowdown 0:02:03.360 --> 0:02:05.120 and g d P in the second half the year. 0:02:05.120 --> 0:02:07.480 In the United States, as well as the reduction and 0:02:07.560 --> 0:02:10.400 earned myths for many compries within the SMP five hundred 0:02:10.480 --> 0:02:13.600 American Century. Steve Brown notes the SMP five hundreds coming 0:02:13.600 --> 0:02:16.920 off it's fifth straight weekly dropped. That is the longest 0:02:16.960 --> 0:02:21.040 losing streak since there is heavy selling in Asia. Over night, 0:02:21.120 --> 0:02:24.240 Nathan Japan's NICK dropped two and a half percent, while 0:02:24.320 --> 0:02:27.239 stocks in Hong Kong plunge three point eight percent. But 0:02:27.400 --> 0:02:30.640 at the recap from Bloomberg's Juliette Sally and Singapore Good Morning, 0:02:30.720 --> 0:02:33.240 Juliet Good Morning Karen, China's on shore you un slid 0:02:33.240 --> 0:02:35.200 past six spots seven to the dollar for the first 0:02:35.200 --> 0:02:38.560 time since twenty twenty a mid data showing stagnating imports 0:02:38.560 --> 0:02:41.800 and the slowest export growth in dollar term since the pandemic. 0:02:42.040 --> 0:02:44.800 Premier Li Ka Chung warned about the employment situation as 0:02:44.880 --> 0:02:48.440 Beijing and Shanghai tight and virus curbs sending stocks low. 0:02:48.520 --> 0:02:52.519 ERM Australia's dollars slumped against the green back, testing seventy 0:02:52.639 --> 0:02:55.280 U s sens. Indonesian stocks fell the most since in 0:02:55.320 --> 0:02:58.679 November twenty twenty as markets reopened after the week long 0:02:58.720 --> 0:03:03.640 eight holiday. In Singapore, Juliette Sally Bloomberg, debreak All right, Juliet. Thanks. 0:03:03.680 --> 0:03:05.240 We now turned to the war in Europe, and as 0:03:05.320 --> 0:03:08.680 Russia's invasion of Ukraine enters its tenth week, President Vladimir 0:03:08.680 --> 0:03:11.400 Putin is presiding over his annual display of military might 0:03:11.760 --> 0:03:14.760 on Moscow's Red Square. Let's get the very latest live 0:03:14.800 --> 0:03:18.000 with Bloomberg's un Potts. Good Morning Euen, Good morning counter Nathan. 0:03:18.040 --> 0:03:20.720 Russia's president has justified his war in Ukraine as a 0:03:20.760 --> 0:03:24.600 battle comparable to the fight against Nazi Germany. Has Putin's 0:03:24.639 --> 0:03:27.760 faltering ten weeks old military action rumbles on. He's been 0:03:27.800 --> 0:03:32.400 speaking at Russia's annual Victory Day celebration on Moscow's Red Square. 0:03:32.760 --> 0:03:36.720 This year's dislay included eleven thousand troops and weaponry, including tanks, 0:03:36.800 --> 0:03:40.000 air defense systems, and nuclear missile launches, but this year 0:03:40.160 --> 0:03:43.680 former leaders were not invited. In London, i'mun Parts Bloomberg, 0:03:43.680 --> 0:03:46.000 debreak you and thank you. Back here in the US, 0:03:46.120 --> 0:03:49.160 the government is adding more sanctions on Russia, including a 0:03:49.200 --> 0:03:52.400 ban on American accounting and consulting firms, and Bloomberg's and 0:03:52.440 --> 0:03:56.280 Baxter has that story. The measures also include new export 0:03:56.360 --> 0:03:59.280 controls on industrial goods lements on three of Russia's pop 0:03:59.320 --> 0:04:03.760 state controlled TV stations and additional visa restrictions. Now the 0:04:03.800 --> 0:04:07.920 Accounting part imposes the first sanctions on gas prom Bank, 0:04:08.280 --> 0:04:12.440 encompassing twenty seven sanctions. It is a first there because 0:04:12.440 --> 0:04:15.320 the US was afraid of disrupting oil shipments, but now 0:04:15.360 --> 0:04:18.000 that the G seven has approved cutting those shipments, it 0:04:18.120 --> 0:04:21.440 decided to go ahead. In San Francisco, I'm at Baxter 0:04:21.480 --> 0:04:24.080 Bloomberg Gay break all right ed, thank you. President Biden 0:04:24.160 --> 0:04:26.760 is also working on his political agenda back home. He's 0:04:26.800 --> 0:04:29.960 about to make high speed internet more widely available across 0:04:30.040 --> 0:04:33.280 the United States, even for households that normally can't afford it. 0:04:33.480 --> 0:04:37.000 Amy Morris has more from our Bloomberg News room in Washington. 0:04:37.400 --> 0:04:40.320 It is part of the infrastructure law that passed last year. 0:04:40.400 --> 0:04:44.120 Twenty internet providers, including A T and T, Comcast, and Verizon, 0:04:44.360 --> 0:04:47.400 agreed to offer high speed connections at essentially no cost 0:04:47.640 --> 0:04:51.320 to millions of low income households. Sources tell Bloomberg News. 0:04:51.320 --> 0:04:54.440 Some companies will drop the prices of existing plans, others 0:04:54.480 --> 0:04:57.400 will raise their speed. The companies were't offered anything, and 0:04:57.400 --> 0:05:00.440 they won't get additional government funding. The government is also 0:05:00.520 --> 0:05:03.480 launching a website called get Internet dot gov to get 0:05:03.520 --> 0:05:06.680 more people involved in the program. President Biden will formally 0:05:06.680 --> 0:05:09.440 announce the plan today in Washington. I maybe more as 0:05:09.440 --> 0:05:11.880 Bloomberg daybreak. All right, Amy, thank you a while staying 0:05:11.920 --> 0:05:14.600 in Washington. Now, it looks like the US government had 0:05:14.600 --> 0:05:17.440 a record tax all this spring. Some of the credit 0:05:17.480 --> 0:05:21.200 goes to the surgeon individual stock trading by Americans. According 0:05:21.200 --> 0:05:24.200 to Treasury Department data, tax collection since the start of 0:05:24.240 --> 0:05:27.440 the fiscal year at October are running at a record high, 0:05:27.520 --> 0:05:31.280 up some forty three percent over the same period. That 0:05:31.440 --> 0:05:35.039 surprised Wall Street and is helping to shrink the budget deficit. Well, 0:05:35.120 --> 0:05:38.279 tax collections rise, Karen, so is the price of gas. 0:05:38.400 --> 0:05:41.640 In fact, the average price of regular grade gasoline jumped 0:05:41.680 --> 0:05:44.679 fifteen cents over the past two weeks to four dollars 0:05:44.720 --> 0:05:48.120 thirty eight cents a gallon. Industry analyst Troby Lundberg says 0:05:48.200 --> 0:05:50.359 that's a dollar thirty eight higher than it was a 0:05:50.440 --> 0:05:54.359 year ago. Nationwide. The highest average price for regular grade 0:05:54.360 --> 0:05:57.520 gases in the San Francisco Bay Area at five eighty 0:05:57.600 --> 0:06:01.120 five per gallon. Well, Nathan, another four or Trump administration 0:06:01.160 --> 0:06:04.000 official is telling all about the inner workings of the 0:06:04.040 --> 0:06:08.120 White House. Former Defense Secretary Mark Sper says he prevented 0:06:08.200 --> 0:06:11.200 dangerous things from happening during his time at the Pentagon, 0:06:11.279 --> 0:06:15.839 like attacking Venezuela and blockading Cuba. Sper says President Trump 0:06:15.880 --> 0:06:20.440 even suggested military action closer to home. The President pulls 0:06:20.440 --> 0:06:22.920 me aside on at least a couple occasions and suggests 0:06:22.920 --> 0:06:26.400 that maybe we have the U. S Military shoot missiles 0:06:26.400 --> 0:06:29.920 into Mexico, shoot missiles into Mexico. For what he would 0:06:29.960 --> 0:06:33.400 say to go after the cartel's Former Defense Secretary Mark 0:06:33.560 --> 0:06:37.240 Esper tells CBS is sixty minutes the former president told him, 0:06:37.240 --> 0:06:39.760 and no one would know the attack came from the US. 0:06:40.160 --> 0:06:43.840 Trump responded to Esper's claim in a statement, writing, quote 0:06:44.000 --> 0:06:47.400 no comment. Listeners in the Washington area can hear sixty 0:06:47.480 --> 0:06:51.120 minutes every Sunday night at ten on Bloomberg and a 0:06:51.160 --> 0:06:54.240 programming note across Bloomberg Radio. Join us later this morning 0:06:54.240 --> 0:06:57.440 on Bloomberg Surveillance when we speak live with Atlanta Fed 0:06:57.520 --> 0:07:00.960 President Raphael Bostick. That's coming up at eight am Wall 0:07:01.000 --> 0:07:05.360 Street time on both Bloomberg Radio and Bloomberg Television. Right now, 0:07:05.480 --> 0:07:08.160 SMP futures are down fifty seven points, drop of one 0:07:08.200 --> 0:07:10.920 point four percent. Down. Futures down three to two points. 0:07:11.000 --> 0:07:14.680 Nasdaq futures leading the declines, down two hundred six points. 0:07:14.720 --> 0:07:17.760 Straight ahead, your latest local headlines and the check of sports. 0:07:17.800 --> 0:07:24.600 This is Bloomberg and it's now five oh seven on 0:07:24.600 --> 0:07:27.440 Wall Street. Were forty seven degrees in Central park dealing 0:07:27.440 --> 0:07:30.360 with an accident investigation on the westbound Belt Parkway. Will 0:07:30.360 --> 0:07:32.800 get you to details coming up in traffic. First Michael 0:07:32.840 --> 0:07:34.720 Barr with more on what's going on in New York 0:07:34.760 --> 0:07:37.120 and around the world. Good morning, Michael, Good morning Nathan. 0:07:37.160 --> 0:07:40.880 New York Governor Kathy Hokel has tested positive for COVID nineteen. 0:07:41.360 --> 0:07:44.600 The governor made the announcement in a tweet yesterday afternoon. 0:07:45.080 --> 0:07:48.160 Governor Hokel says she is vaccinated and boosted against the 0:07:48.240 --> 0:07:52.160 virus and is feeling a symptomatic due to the positive 0:07:52.200 --> 0:07:55.440 test results. You will isolate and work remotely this week. 0:07:55.840 --> 0:07:58.960 Democrats are working to force a vote to codify abortion 0:07:59.080 --> 0:08:02.400 rights for women, but experts believe that vote will likely 0:08:02.440 --> 0:08:06.600 be blocked and the Court's ruling will stand. Senator Amy 0:08:06.680 --> 0:08:10.200 Klobuchar of Minnesota says that if the Democrats are unable 0:08:10.240 --> 0:08:14.000 to successfully pass this legislation. The voters will respond, if 0:08:14.040 --> 0:08:17.240 we are not successful, then we go to the ballot box. 0:08:17.480 --> 0:08:19.960 We march straight to the ballot box, and the women 0:08:20.120 --> 0:08:22.920 of this country and the men who stand with them 0:08:23.080 --> 0:08:26.720 will vote like they've never voted before. Lawmakers in several 0:08:26.720 --> 0:08:30.000 states are already beginning to put in place their legislations 0:08:30.040 --> 0:08:34.120 restricting abortions. In Arkansas, Governor Asa Hutchinson signed a bill 0:08:34.240 --> 0:08:37.560 last year that prohibits abortion in all cases except to 0:08:37.559 --> 0:08:40.960 save the line of the mother. We wanted the reverses 0:08:41.040 --> 0:08:43.840 wade reversed, and the authority to return to the states, 0:08:44.480 --> 0:08:48.080 and and so as a matter of principle, that's where 0:08:48.080 --> 0:08:51.880 it should be. Governor Hutchinson and Senator Clobuchar and spoke 0:08:51.960 --> 0:08:53.920 on a v c S this week, which can be 0:08:53.960 --> 0:08:57.880 heard Sundays on Bloomberg. Dangerous gusty winds are expected to 0:08:57.920 --> 0:09:01.840 continue across northeast New Mexican code today. That's likely to 0:09:01.880 --> 0:09:06.200 complicate the fight against wildfires that's threatened thousands of homes 0:09:06.240 --> 0:09:10.600 in mountainous rural communities. A growing number of parents nationwide 0:09:10.600 --> 0:09:14.760 faces shortage of baby formula due to supply chain issues 0:09:14.840 --> 0:09:19.400 and a February recall of three popular brands made by Abbot. 0:09:19.559 --> 0:09:23.040 Dr A Lock Patel is with Stanford Children's Hospital. For 0:09:23.120 --> 0:09:25.120 parents out there right now who are struggling to find 0:09:25.120 --> 0:09:27.160 a formula, one easy thing you can do is try 0:09:27.240 --> 0:09:29.840 to switch formulas. See if your child can tolerate that. 0:09:30.800 --> 0:09:34.440 Dr Purtell spoke to ABC. An earthquake centered northeast of 0:09:34.480 --> 0:09:38.240 South Carolina's capital city jolted large numbers of state residents 0:09:38.240 --> 0:09:41.800 awake already say the quake overnight had a luminary three 0:09:41.840 --> 0:09:45.000 point three magnitude. Global News twenty four hours a day 0:09:45.040 --> 0:09:48.080 on air and on Bloomberg Quicktake, powered by more than 0:09:48.160 --> 0:09:50.840 twenty seven hundred journalists and analysts more than a hundred 0:09:50.840 --> 0:09:54.320 twenty countries. Michael barn this is Bloomberg, Nathan, thank you, 0:09:54.360 --> 0:10:01.480 Michael five on on Wall Street time for the Bloomberg 0:10:01.520 --> 0:10:03.480 Sports up taking, Morney, John Stan Shark, and one in 0:10:03.559 --> 0:10:05.880 Major Let's play two Yankees and Mets. Due to all 0:10:05.920 --> 0:10:08.199 the rain at the stadium, Yankees won the opener of 0:10:08.320 --> 0:10:10.160 Texas to the one on the labor tore his home 0:10:10.240 --> 0:10:11.839 run leaving off the bottom of the the ninth that went 0:10:11.880 --> 0:10:15.560 to right center field Chris Woodward. The Rangers manager said 0:10:15.559 --> 0:10:17.280 it would not have been a home run in any 0:10:17.280 --> 0:10:21.120 other ballpark, and he called Yankee Stadium a little league ballpark. 0:10:21.240 --> 0:10:24.800 Tore As was asked Tob that I like both team 0:10:24.840 --> 0:10:28.400 play in the symbol park and this INDI nation. Uh. 0:10:29.320 --> 0:10:32.319 I think I feel good to to hit walk off 0:10:32.360 --> 0:10:37.200 homer in the little liberal par and I mean happy 0:10:37.240 --> 0:10:40.120 to the first game tour as the second welko off 0:10:40.160 --> 0:10:42.240 head of the season. Yanks denied the swift. They led 0:10:42.280 --> 0:10:44.280 to nothing with the John Carlos Stanton home run, but 0:10:44.320 --> 0:10:47.320 Brad Miller two run shot off Michael King in the 0:10:47.320 --> 0:10:49.600 seventh inning the Rangers one four to two. King took 0:10:49.600 --> 0:10:51.959 the loss. He came in having not allowed to run 0:10:52.000 --> 0:10:54.840 in his last thirteen innings. In Philadelphia, the Mets lost 0:10:54.880 --> 0:10:57.240 three to two. Max Scherzer struck act and but suffered 0:10:57.280 --> 0:10:59.800 his first Met loss. Is now born and one Chris 0:11:00.000 --> 0:11:02.040 asked it then got his fourth win. Mets took to 0:11:02.120 --> 0:11:04.719 night Caps six to one thanks to Pete Alonzo to 0:11:04.920 --> 0:11:06.840 run over in the first name three run shot. In 0:11:06.840 --> 0:11:09.360 the fifth n b A and NHL playoffs, there were 0:11:09.360 --> 0:11:12.840 a total of six games played. All six were Game four's, 0:11:13.000 --> 0:11:15.160 and all six won by the home team in all 0:11:15.160 --> 0:11:17.400 six series are out tied to two. That's after Dallas 0:11:17.800 --> 0:11:20.600 beat Phoenix in the NBA, Philadelphia Top in Miami, and 0:11:20.640 --> 0:11:24.360 Stanley Cup WOP wins for Boston, Tampa, Bay St. Louis, 0:11:24.480 --> 0:11:26.960 and l A. Rangers hoping to be too two with 0:11:27.000 --> 0:11:29.720 the Penguins after tonight's Game four in Pittsburgh. The Rangers 0:11:29.720 --> 0:11:32.800 two losses have been tough ones, one of triple overtime 0:11:32.840 --> 0:11:35.480 and then Saturday they lost after coming from three goals 0:11:35.480 --> 0:11:38.600 down to tie the game. John stash Award Bloomberg Sports, 0:11:39.040 --> 0:11:41.120 All right, John, thank you. S and P futures down 0:11:41.200 --> 0:11:43.160 down fifty five points to drop of one of the 0:11:43.200 --> 0:11:45.679 third percent. Own futures down one point one percent or 0:11:45.679 --> 0:11:48.800 three sixty three points. NASTAC futures are lower by one 0:11:48.840 --> 0:11:51.800 point six percent to drop of two hundred three points. 0:11:51.800 --> 0:11:55.040 The tenure treasury is down thirteen thirty seconds, yield three 0:11:55.080 --> 0:11:58.640 point one eight percent. Dennis Gartman, former publisher of The 0:11:58.640 --> 0:12:02.520 Gartman Letter, joins us next on this market. You're listening 0:12:02.559 --> 0:12:10.640 to Bloomberg Daybreak Bloomberger eleven three oh weather partly mostly sunny, breezy, 0:12:10.679 --> 0:12:13.120 mid sixties. Today will be sunny and breezy with a 0:12:13.200 --> 0:12:16.120 high near seventy tomorrow high near seventy in the sunshine 0:12:16.120 --> 0:12:18.520 on Wednesday as well. Right now forty seven degrees in 0:12:18.559 --> 0:12:24.960 Central Park. Markets headlines and breaking news twenty four hours 0:12:24.960 --> 0:12:28.160 a day at Bloomberg dot Com, the Bloomberg Business Outland 0:12:28.280 --> 0:12:38.120 at Bloomberg Victape. She's a Bloomberg Business flash and I'm 0:12:38.200 --> 0:12:42.000 Cameron Moscow. And investors are rushing to the safety of 0:12:42.000 --> 0:12:45.160 the US dollar about global stock slide ever closer to 0:12:45.200 --> 0:12:47.960 a bear market as the Federal reserves aggressive tightening path 0:12:48.040 --> 0:12:51.360 in China's COVID lockdown's worse in the outlook for economic growth. 0:12:51.640 --> 0:12:54.240 The dollar are extending at two year high, rising against 0:12:54.240 --> 0:12:56.320 all of its major peers. And we checked the markets 0:12:56.320 --> 0:12:59.400 every fifteen minutes throughout the trading day on Bloomberg. Right 0:12:59.400 --> 0:13:02.720 now isn't P futures are down fifty five points down, 0:13:02.720 --> 0:13:06.520 futures down three hundred fifty nine. NASDACK futures down one 0:13:06.800 --> 0:13:09.240 D ninety five. That's down one and a half percent. 0:13:09.600 --> 0:13:12.559 The decks in Germany's down eight tenths percent. Ten year 0:13:12.600 --> 0:13:16.240 treasury down fourteen thirty seconds. He'll three point one eight percent. 0:13:16.320 --> 0:13:18.800 The yield on the two year two point seven two percent. 0:13:19.200 --> 0:13:21.240 Not a mex scret oil is down one point two 0:13:21.280 --> 0:13:23.400 percent on a dollar twenty seven at a hundred eight 0:13:23.400 --> 0:13:26.319 dollars forty six cents of barrel comex school down nine 0:13:26.320 --> 0:13:28.960 tenths per cent, or sixteen dollars seventy cents at eighteen 0:13:29.040 --> 0:13:31.800 sixty six an ounce. The Euro one point oh five 0:13:31.800 --> 0:13:34.040 one five against the dollar, British bound one point to 0:13:34.200 --> 0:13:36.880 two nine zero the end at one thirty one point 0:13:36.960 --> 0:13:40.800 one two and Bitcoin this morning down one percent at 0:13:40.880 --> 0:13:44.319 thirty three thousand, six hundred dollars. Today we are watching 0:13:44.320 --> 0:13:46.960 for a report on wholesale inventories at at ten o'clock 0:13:46.960 --> 0:13:50.040 Wall Street Time, and Tyson Foods among companies scheduled to 0:13:50.120 --> 0:13:53.360 report earnings today. That's a Bloomberg business flash. Now here's 0:13:53.400 --> 0:13:56.199 Michael Barr with more on what's going on around the world. Michael, 0:13:56.200 --> 0:13:59.800 Good morning, Good morning, Karen. Russia commemorated Victory Day with 0:13:59.840 --> 0:14:03.400 a military parade this morning. Russia's Victory Day marks the 0:14:03.480 --> 0:14:06.760 end of World War Two. President Vladimir Putin addressed the 0:14:06.760 --> 0:14:10.600 parade and Red Square as Ukraine's military warns of a 0:14:10.679 --> 0:14:14.280 high probability of missile strukes ahead of the expected Senate 0:14:14.360 --> 0:14:17.920 vote this week on an abortion rights bill. Catholic churches 0:14:17.960 --> 0:14:21.800 and cities across the country are increasing security. In baseball, 0:14:21.840 --> 0:14:24.240 the Yankees split a double header with the Rangers. The 0:14:24.320 --> 0:14:26.720 Mets split a double header with the Phillies. The Orioles 0:14:26.800 --> 0:14:30.040 won a double header against the Royals. The Red Sox Nationals, 0:14:30.040 --> 0:14:32.840 and he has lost the Giants one NHL Playoffs. The 0:14:32.840 --> 0:14:36.000 Bruins beat the Hurricanes to even the series at two games. 0:14:36.000 --> 0:14:39.160 Apiece Global News twenty four hours a day on air 0:14:39.280 --> 0:14:42.280 and on Bloomberg Quick Take, powered by more than twenty 0:14:42.360 --> 0:14:44.920 seven under journalists an analyist in more than a hundred 0:14:45.000 --> 0:14:48.240 twenty countries. I'm Michael Barren. This is Bloomberg, Nathan Now. 0:14:48.240 --> 0:14:51.080 A lot of baseball players got their working yesterday. Thank you, Michael. 0:14:51.080 --> 0:14:53.000 And we're coming up to five twenty on Wall Street 0:14:53.000 --> 0:14:56.320 Life from the Bloomberg Interactive Broker Studios. This is Bloomberg 0:14:56.400 --> 0:14:58.720 daybreaking with us for the hour this morning, as we 0:14:58.800 --> 0:15:01.680 kick off a new trading week. Dennis Gartman, chairman of 0:15:01.720 --> 0:15:04.600 the University of Akron and Dowmint Investment Committee and former 0:15:04.640 --> 0:15:07.080 publisher of the Gartment Letter. As we watch the bleeding 0:15:07.160 --> 0:15:10.000 continue on Wall Street this morning. Dennis. I know you've 0:15:10.000 --> 0:15:12.520 been calling for a bear market for some time now. 0:15:12.560 --> 0:15:15.240 I wonder if you have any idea or any insights 0:15:15.240 --> 0:15:21.680 into when this this slide might stop. Nate and I've 0:15:21.680 --> 0:15:23.520 been at this for forty five years, and the best 0:15:23.520 --> 0:15:26.160 that I've learned is this the trend that's in place 0:15:26.200 --> 0:15:29.360 will continue until it stops. That's the best that I've learned. 0:15:29.840 --> 0:15:31.600 So to put some number on it, it would be 0:15:32.040 --> 0:15:36.080 ill advised. I've been bearissed since January. I continue to 0:15:36.080 --> 0:15:38.520 be bearish of share prices. I think that the this 0:15:38.600 --> 0:15:41.240 is something that's going on globally, not just domestically here 0:15:41.240 --> 0:15:43.800 in the United States. Look at the look at your 0:15:43.800 --> 0:15:46.480 screens this morning. It's read everywhere. It's read in in Japan, 0:15:46.520 --> 0:15:48.920 it's read in Europe, it's read here in the early 0:15:49.960 --> 0:15:52.320 futures markets here and in the United States. It's read 0:15:52.360 --> 0:15:55.840 in Canada, it's read in Australia. This is something that's 0:15:55.880 --> 0:15:58.600 happening around the world, and it's predicated upon the fact 0:15:58.600 --> 0:16:01.520 that the monetary authorities, especially here in the United States, 0:16:01.560 --> 0:16:03.680 that have been so expansionary for such a long period 0:16:03.680 --> 0:16:06.160 of time right now being contractionary and they're going to 0:16:06.240 --> 0:16:09.800 remain contractionary, trying to fight against the inflationary pressures that 0:16:09.840 --> 0:16:13.400 they themselves have engendered do their own expansionary policies over 0:16:13.440 --> 0:16:16.280 the course of the past near decades. So this is 0:16:16.280 --> 0:16:20.600 a bear market, and the best that is be less involved, 0:16:20.640 --> 0:16:23.960 to be less long, trying to be as uh as 0:16:24.160 --> 0:16:27.040 conservative as one can be. I was lucky enough as 0:16:27.040 --> 0:16:28.720 the chairman of the University of Akron to get us 0:16:28.720 --> 0:16:31.680 out of twelve to fifteen percent of our our equities 0:16:31.720 --> 0:16:33.080 at the end of the last year. Right on the 0:16:33.160 --> 0:16:36.600 last day of the year last February, I actually moved 0:16:36.640 --> 0:16:39.040 us out of three percent of our our equities and 0:16:39.040 --> 0:16:41.720 moved us into three percent gold. And I'm comfortable with 0:16:41.760 --> 0:16:43.560 doing that. And in a bear market, as I like 0:16:43.640 --> 0:16:46.600 to say here, she who loses the league shall be 0:16:46.640 --> 0:16:49.280 the winner. And that's the that's sadly, that's the attitude 0:16:49.280 --> 0:16:51.240 that one should have at this point. So, as you say, 0:16:51.280 --> 0:16:53.320 you've been a participant in this market for some time, 0:16:53.360 --> 0:16:57.760 obviously you've seen contractionary central banks in the past. What 0:16:57.840 --> 0:17:02.280 do you make of the violence of this of I'm 0:17:02.320 --> 0:17:04.920 not sure it's that violent. Yet we're only going down 0:17:04.960 --> 0:17:08.000 one percent a day, which after the course of a 0:17:08.000 --> 0:17:10.160 week he adds up. But it's not as if we're 0:17:10.160 --> 0:17:13.719 taking out five in the course of one session, so 0:17:13.760 --> 0:17:17.320 it's not terribly violent. The market will end in in 0:17:17.480 --> 0:17:20.120 a violent downward movement, will have one day when we'll 0:17:20.160 --> 0:17:22.399 be down five or six percent, and that will be 0:17:22.440 --> 0:17:26.119 a that'll be the final selling pressure that will that 0:17:26.160 --> 0:17:28.840 will end the bear market. But until then, I'm not 0:17:28.840 --> 0:17:31.120 sure that it's been that terribly violent. The VIX has 0:17:31.119 --> 0:17:33.120 not been that high yet, it's not been that strong. 0:17:33.160 --> 0:17:35.560 It's up in the thirties. I guess we'll get it 0:17:35.640 --> 0:17:37.639 up into the forties and that that that'll mark the 0:17:37.720 --> 0:17:39.360 end of the mor of the move. But until then, 0:17:39.840 --> 0:17:42.560 it's a bear market, and prices are moving from the 0:17:42.640 --> 0:17:44.399 upper left to the lower right and will continue to 0:17:44.840 --> 0:17:47.359 do so until they stop. That's that's all I've learned. 0:17:47.760 --> 0:17:50.960 What's the biggest culprit behind this steady slide that we 0:17:51.040 --> 0:17:55.200 have seen in markets The fact that the monetary authorities 0:17:55.440 --> 0:17:59.359 who have been so expansionary uh as as made evident 0:17:59.440 --> 0:18:02.040 by the the fact that the Fed's balance sheet had 0:18:02.080 --> 0:18:04.800 gone from less than a trillion dollars to nine trillion 0:18:04.800 --> 0:18:06.879 dollars in the course of what seven or eight years 0:18:07.520 --> 0:18:10.000 that was. That was fuel adding to a bull market 0:18:10.000 --> 0:18:12.639 all all along the while, and now they're they're taking 0:18:12.640 --> 0:18:15.320 that fuel away. It's as if the automobile has been 0:18:15.400 --> 0:18:18.159 starved for fuel and now it's sputtering to a close. 0:18:18.200 --> 0:18:21.240 And that's to to make the metaphor complete, that's the 0:18:21.240 --> 0:18:22.919 easiest way to look at it. The the fuel that 0:18:22.960 --> 0:18:24.960 had been the sponsor of the bull market is now 0:18:25.000 --> 0:18:28.080 being taken away and the automobile is running out of gas. 0:18:28.560 --> 0:18:30.600 Our last minute of this segment, Dennis, do you think 0:18:30.680 --> 0:18:34.440 the FED continues on the tightening path that it's laid 0:18:34.480 --> 0:18:38.520 out here multiple uh fifty basis point hikes or could 0:18:38.600 --> 0:18:41.000 the financial conditions that we're seeing sort of do some 0:18:41.040 --> 0:18:43.639 of the work of the Fed for it. Well, the 0:18:43.680 --> 0:18:46.280 Fed has to stay with this new policy that has 0:18:46.320 --> 0:18:49.320 put into effect only at this past meeting. It has 0:18:49.359 --> 0:18:51.399 to stay in that way for about a year or 0:18:51.400 --> 0:18:54.720 so just to be consistent. So I think that fifty fifty, fifty, 0:18:54.760 --> 0:18:57.480 fifty and fifty is almost a given. They have no choice. 0:18:57.520 --> 0:19:00.000 They have to otherwise they look far too and consists. 0:19:00.080 --> 0:19:02.320 And so yes, this is the FED is going to 0:19:02.440 --> 0:19:05.040 remain in a in a tightening monetary policy for quite 0:19:05.080 --> 0:19:07.960 some period of time going forward. Dennis Gartman, as I say, 0:19:08.000 --> 0:19:10.200 with us for the hour here, the first hour here 0:19:10.240 --> 0:19:12.439 on Boomberg daybreaks, we'll be checking back in with the 0:19:12.440 --> 0:19:14.560 next in the with Dennis in the next half hour. 0:19:14.600 --> 0:19:17.200 I want to get your thoughts as well on the 0:19:17.240 --> 0:19:20.080 outlook for inflation now that the FED is getting more 0:19:20.119 --> 0:19:22.960 aggressive on this market. So Dennis Scartman will be back 0:19:22.960 --> 0:19:26.000 with us later this hour as we kick off this 0:19:26.160 --> 0:19:28.679 new trading week, and looking at head to the market 0:19:28.720 --> 0:19:32.879 open more losses look like they are in the offing 0:19:32.880 --> 0:19:35.720 here with SMP futures now down fifty five points or 0:19:35.800 --> 0:19:38.600 one point three percent down, futures down three sixty nine, 0:19:38.640 --> 0:19:41.280 that's a drop of one point one percent, the Nasdaq 0:19:41.400 --> 0:19:44.520 futures down one point six percent, a drop of one 0:19:44.680 --> 0:19:47.360 hundred ninety eight points, and the tenure treasury is down 0:19:47.359 --> 0:19:50.679 twelve thirty seconds, the yield three point one seven percent, 0:19:50.760 --> 0:19:54.160 yield on the two year two point seven one percent. 0:19:54.640 --> 0:19:59.400 More analysis of this market slide and Vladimir Putin's address 0:19:59.640 --> 0:20:03.879 on Moscow's victory day. All that's straight ahead on Bloomberg 0:20:03.960 --> 0:20:09.919 Day right Bloomberg eleven three oh weather partly the mostly sunny, 0:20:09.960 --> 0:20:12.840 breezy mid sixties today. We'll get up to near seventy 0:20:12.920 --> 0:20:15.320 tomorrow with sunshine and a breeze. It will be sunny 0:20:15.359 --> 0:20:17.919 with a high near seventy Wednesday as well, currently forty 0:20:17.960 --> 0:20:24.360 seven degrees in Central Park. Broadcasting live from the Bloomberg 0:20:24.400 --> 0:20:28.040 Interactive Broker Studio in New York, Bloomberg Elving Free on 0:20:28.240 --> 0:20:32.399 to Washington, d C. Bloomberg to Boston, Bloomberg one O 0:20:32.600 --> 0:20:35.679 six one to San Francisco, Bloomberg nine sixty to the 0:20:35.680 --> 0:20:39.200 Country Sirius XM to one nineteen and around the globe 0:20:39.280 --> 0:20:42.880 the Bloomberg Business app in Bloomberg Radio dot Com. This 0:20:43.200 --> 0:20:51.480 is Bloomberg day Break. It's five thirty on Wall Street. 0:20:51.520 --> 0:20:54.320 Good morning. I'm Nathan Hagar and I'm Karen Moscow. We 0:20:54.400 --> 0:20:56.879 are just about four hours away from the open of 0:20:57.000 --> 0:20:58.679 US trading. Let's catch you up to date in the 0:20:58.680 --> 0:21:01.040 news you need to know at this hour. While stocks 0:21:01.119 --> 0:21:03.400 are lower, as the dollar trades at a two year 0:21:03.520 --> 0:21:05.679 high to begin the week, the S and P has 0:21:05.760 --> 0:21:09.120 dropped for five straight weeks, and global stocks continue their 0:21:09.119 --> 0:21:12.320 downward shread. This all comes as rising interest rates in 0:21:12.400 --> 0:21:16.600 China's COVID lockdowns pressure markets. Katrina L's, senior economist with 0:21:16.680 --> 0:21:21.560 Moody's Analytics, says lockdowns are significantly impacting exports from China 0:21:21.640 --> 0:21:25.040 and economies across the globe. It is disrupting the pots, 0:21:25.040 --> 0:21:28.960 it is disrupting manufacturing, it and more broadly, it's really 0:21:29.040 --> 0:21:33.679