WEBVTT - Bloomberg Daybreak: May 4, 2022 - Hour 1 (Radio) 0:00:03.920 --> 0:00:07.280 Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg 0:00:07.360 --> 0:00:10.920 Daybreak for Wednesday, May four two. Coming up this hour, 0:00:11.280 --> 0:00:15.120 Investors brace for the biggest FED decision in decades. Vice 0:00:15.120 --> 0:00:19.120 President Kamala Harris says women's rights are under attack by Republicans. 0:00:19.480 --> 0:00:23.000 A Trump backed candidate wins in Ohio, and Elon Musk 0:00:23.040 --> 0:00:26.240 reportedly planned to take Twitter public again in a few years. 0:00:27.000 --> 0:00:30.680 North Korea has launched another missile, Plus, comedian Dave Chappelle 0:00:30.720 --> 0:00:34.519 was attacked on stage. I'm Michael blar More Ahead, I'm 0:00:34.600 --> 0:00:37.400 John Stashow. Sports double header sweep for the max eleventh 0:00:37.400 --> 0:00:39.959 straight win for the Yankees. The Rangers lost Game one 0:00:39.960 --> 0:00:45.640 of the Penguins and triple overtime. That's all train ahead 0:00:45.680 --> 0:00:49.240 on Bloomberg day Break on Bloomberg Eleving Free on New York, 0:00:49.440 --> 0:00:54.120 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.400 --> 0:00:59.120 Bloomberg nine sixties and Francisco Syrius Exam one nineteen and 0:00:59.200 --> 0:01:02.440 around the world Bloomberg Radio dot Com and via the 0:01:02.440 --> 0:01:09.399 Bloomberg Business app. Good Morning, I'm Nathan Hagar and I'm 0:01:09.480 --> 0:01:12.200 Karen Moscow and US Dock Index Futures are on the 0:01:12.319 --> 0:01:14.360 rises morning. We're coming up to six o one on 0:01:14.400 --> 0:01:16.600 Wall Street, and we check the markets every fifteen minutes 0:01:16.640 --> 0:01:18.800 throughout the trading day. On Bloomberg, U S and P 0:01:19.000 --> 0:01:22.319 Future is up eighteen points down futures of one thirty 0:01:22.360 --> 0:01:24.759 two and ASDAG future is up thirty nine. Ten year 0:01:24.760 --> 0:01:28.440 Treasury four thirty seconds held two point nine five percent, 0:01:28.520 --> 0:01:30.679 and they yield on the two year two point seven 0:01:30.760 --> 0:01:33.640 eight percent and nine X screwed oil up three point 0:01:33.720 --> 0:01:36.920 six percent. Nathan Karen, we begin this busy morning with 0:01:36.959 --> 0:01:40.560 the most widely anticipated FED decision in years. Today's rate 0:01:40.640 --> 0:01:43.399 hike is just the beginning. According to former I m 0:01:43.440 --> 0:01:46.600 F Chief economist Kenneth Rogoff, I think the idea that 0:01:46.720 --> 0:01:51.040 just to three percent would be enough really unlikely. I 0:01:51.080 --> 0:01:53.400 think they're going to have to raise interest rates to 0:01:53.480 --> 0:01:57.200 four or five percent to bring inflation down to two 0:01:57.240 --> 0:01:59.520 and a half or three percent. Former I m F 0:01:59.600 --> 0:02:02.400 chief on Mimous Kinneth Rogoff says inflation is now running 0:02:02.400 --> 0:02:05.520 it more than three times the central banks two percent target. 0:02:05.600 --> 0:02:08.360 We get more on this afternoons FED decision from Bloomberg's 0:02:08.400 --> 0:02:11.160 Michael McKee. There may be more questions about how the 0:02:11.200 --> 0:02:13.840 markets will react to the FED than about what the 0:02:13.880 --> 0:02:16.679 FED will do. A half percentage point rate hike is 0:02:16.720 --> 0:02:19.160 all but certain. The FED will also outline how and 0:02:19.240 --> 0:02:21.919 when it will begin reducing the size of its balance sheet, 0:02:22.160 --> 0:02:24.480 but it already put most of those details into the 0:02:24.520 --> 0:02:27.800 minutes of their March meeting. Investors have already priced in 0:02:27.880 --> 0:02:31.400 both outcomes, so any market move likely depends on the FED, 0:02:31.480 --> 0:02:36.560 particularly Chairman J Powell offering specific future guidance saying perhaps 0:02:36.720 --> 0:02:38.960 the Central Bank will raise rates by the same amount 0:02:39.000 --> 0:02:43.120 several times in a row, or Powell delivering a surprise, say, 0:02:43.360 --> 0:02:46.880 suggesting seventy five bases point hikes could be on the horizon. 0:02:47.240 --> 0:02:50.160 Michael McKee Bloomberg Debris. Alright, Mike, thanks. Of course, we 0:02:50.240 --> 0:02:52.680 will have full coverage and analysis of the FED decision 0:02:52.680 --> 0:02:55.160 beginning at one pm Wall Street Time on a special 0:02:55.280 --> 0:02:58.280 edition of Bloomberg Surveillance. On the other big issue in 0:02:58.320 --> 0:03:01.680 Washington right now, Nathan is your abortion rights, and following 0:03:01.680 --> 0:03:04.160 news that the Supreme Court may strike down Roe v. Wade, 0:03:04.240 --> 0:03:07.440 Vice President Kamala Harris is warning that women's rights are 0:03:07.520 --> 0:03:10.400 under attack. How dare they tell a woman what she 0:03:10.480 --> 0:03:14.560 can do? And cannot do with her own body. How 0:03:14.680 --> 0:03:19.239 dare they? How dare they try to stop her from 0:03:19.280 --> 0:03:23.280 determining her own future. Vice President Harris spoke at the 0:03:23.280 --> 0:03:26.600 annual Emily's List conference in Washington. John de la Volpi 0:03:26.800 --> 0:03:29.720 is director of polling at the Harvard Kennedy School Institute 0:03:29.720 --> 0:03:33.040 of Politics, and he says the leaked opinion could reshape 0:03:33.040 --> 0:03:36.800 the midterm elections. This is likely to be highly motivational 0:03:37.240 --> 0:03:40.440 for specifically young people who are unsure whether or not 0:03:40.480 --> 0:03:43.520 they're going to participate, because, um, they can now see 0:03:43.680 --> 0:03:48.280 in very tangible ways the difference than engagements. Mix and 0:03:48.360 --> 0:03:50.720 John de la Volpi of Harvard spoke with our Washington 0:03:50.720 --> 0:03:53.800 correspondent Joe Matthew on Bloomberg Sound on Catch the show 0:03:53.840 --> 0:03:56.760 weekdays at five pm Eastern on Bloomberg Radio, and we 0:03:56.800 --> 0:03:59.760 should not. The Supreme Court has confirmed the leaked opinion 0:04:00.080 --> 0:04:03.760 so authentic, but says it's not the Justice's final decision. 0:04:03.880 --> 0:04:06.400 We have another major political story this morning. Karen a 0:04:06.480 --> 0:04:09.520 candidate backed by former President Donald Trump, has won the 0:04:09.520 --> 0:04:13.200 Ohio Senate Republican primary. Amy Morris has details from our 0:04:13.200 --> 0:04:18.039 Bloomberg newsroom in Washington. Venture capitalist j D Vance won 0:04:18.080 --> 0:04:21.240 the GOP primary in Ohio after trailing in the polls 0:04:21.320 --> 0:04:23.960 just three weeks ago, and he knew who to thank. 0:04:24.080 --> 0:04:28.360 I have absolutely got to thank the President United States, 0:04:28.360 --> 0:04:32.360 Donald J. Trump. Ladies and gentlemen. Vance had called Trump 0:04:32.520 --> 0:04:36.080 unfit and noxious in sixteen Now he fully embraces him 0:04:36.080 --> 0:04:39.320 and his views. Analysts caution against reading too much into 0:04:39.360 --> 0:04:42.320 the outcome of just one race. Trump's endorsements will be 0:04:42.360 --> 0:04:46.279 tested in coming weeks with GOP primaries and states including Pennsylvania, 0:04:46.360 --> 0:04:50.480 North Carolina, and Georgia. In Washington on maybe Morris Bloomberg daybreak, 0:04:50.600 --> 0:04:53.080 Amy thank you now the latest on the war in Europe. 0:04:53.240 --> 0:04:56.240 Russia is shifting direction and its approach to the invasion 0:04:56.240 --> 0:04:59.760 of Ukraine, and Bloomberg said Master reports this is nearly 0:04:59.800 --> 0:05:02.200 ten weeks into the war. On whether it's military stalled 0:05:02.240 --> 0:05:05.400 in many areas, including just marginal games in the East, 0:05:05.800 --> 0:05:08.800 Russia is now focused on annexation of the areas it 0:05:08.920 --> 0:05:13.440 is occupied. The Kremlin is installing occupation governments, ordering locals 0:05:13.480 --> 0:05:17.080 to use rules for transactions, and in some cases organizing 0:05:17.120 --> 0:05:21.479 referendums to open the way for full annexation. In public, 0:05:21.520 --> 0:05:24.880 the Kremlin says their advance will pick up, but for now, 0:05:25.320 --> 0:05:29.320 this action is necessary. In San Francisco, I'm at Baxter 0:05:29.400 --> 0:05:32.040 Bloomberg Daybreak, All right, and thanks On Wall Street Today, 0:05:32.040 --> 0:05:34.320 earnings continue rolling in, and for a look at some 0:05:34.360 --> 0:05:37.000 stocks on the move following yesterday's reports, you bring in 0:05:37.040 --> 0:05:40.200 Bloomberg's John Tucker, Good morning, John, Good morning, Nathan. Lift 0:05:40.440 --> 0:05:42.640 poised to wipe off more than a quarter of its 0:05:42.680 --> 0:05:46.600 market valuation after the Ryan Heeling Company second quarter outlook disappointed. 0:05:46.720 --> 0:05:51.279 Lift down over tent of the pre market planned increase 0:05:51.320 --> 0:05:55.440 in driver incentives could weigh on profits. Advanced micro Devices 0:05:55.520 --> 0:05:58.680 delivering a strong sales forecast for the current quarter, the 0:05:58.720 --> 0:06:02.320 shipmaker continues to make gains, and computer data centers a 0:06:02.520 --> 0:06:06.080 m D up six percent in early trading at Starbucks 0:06:06.120 --> 0:06:10.120 reported US results that topped estimates. Shares are up six percent. 0:06:10.640 --> 0:06:13.520 Live in New York on John Tucker Bloomberg Daybreak, All right, John, 0:06:13.520 --> 0:06:16.080 thank you. More news this morning on Elon Musk and Twitter. 0:06:16.240 --> 0:06:19.080 Musk reportedly wants to eventually take Twitter public again, and 0:06:19.200 --> 0:06:21.320 we get the latest line from Bloomberg's Need a Young 0:06:21.360 --> 0:06:23.560 Good Morning, Renny Down, Good morning Care, and Elon Musk 0:06:23.640 --> 0:06:25.919 says he's planning to stage an I p O of 0:06:25.960 --> 0:06:29.120 Twitter as little as three years after buying it. That's 0:06:29.120 --> 0:06:33.080 according to Dow Jones, which reports Musk is talking with investors, 0:06:33.160 --> 0:06:36.520 including private equity firms, to help lower his twenty one 0:06:36.560 --> 0:06:40.320 billion dollar contribution to the deal. Private equity firms typically 0:06:40.360 --> 0:06:44.159 take publicly traded companies private to fix them out of 0:06:44.160 --> 0:06:47.680 the limelight, then within five years they take them public again. 0:06:48.080 --> 0:06:50.200 Live in New York, I'm gonna need a young Bloomberg 0:06:50.279 --> 0:06:52.760 day break. All right, we need to thank you programming. No, 0:06:52.960 --> 0:06:55.320 please join us this morning when we speak live with 0:06:55.520 --> 0:06:59.240 JP Morgan CEO Jamie Diamond. That conversation is coming up 0:06:59.520 --> 0:07:02.520 in just about twenty five minutes right here on Bloomberg 0:07:02.600 --> 0:07:06.840 Radio and on Bloomberg Television. SMP futures moving higher now 0:07:06.880 --> 0:07:09.400 about by nineteen points, Staff futures up a hundred forty 0:07:09.440 --> 0:07:13.120 NASTAC futures up forty two points, the tenure treasury yield 0:07:13.160 --> 0:07:16.680 two point nine. Straight ahead, your latest local headlines and 0:07:16.760 --> 0:07:23.760 the check of sports. This is Bloomberg now, six oh 0:07:23.800 --> 0:07:26.720 seven on Wall Street, Word fifty degrees in Central Park 0:07:26.800 --> 0:07:28.720 and Michael Bars here with more on what's going on 0:07:28.760 --> 0:07:30.960 in New York and around the world. Michael, thank you 0:07:31.040 --> 0:07:33.520 very much, Nathan. Protests were held in the trying state 0:07:33.600 --> 0:07:37.000 area over the League Supreme Court draft decision that, if final, 0:07:37.480 --> 0:07:41.040 would overturn Roe v. Wade. Sonia A. Storio, president of 0:07:41.080 --> 0:07:43.880 the New York chapiter of the National Organization for Women, 0:07:44.200 --> 0:07:48.320 says state lawmakers they're legalized abortion several years ago, knowing 0:07:48.480 --> 0:07:52.640 this day would come. Reproductive rights activists in Governor Puoma, 0:07:52.760 --> 0:07:56.280 we worked very hard on that. In we finally passed 0:07:56.320 --> 0:07:59.280 that after several years of hard work, and we did 0:07:59.280 --> 0:08:03.720 that in an to spatient of this week document and 0:08:03.760 --> 0:08:07.640 what is ahead of us? Sonia Surio with now says 0:08:07.720 --> 0:08:10.920 men need to do their part to support abortion rights. 0:08:10.960 --> 0:08:14.120 Women do not get pregnant on their own. New York 0:08:14.120 --> 0:08:17.360 Attorney General, a teacher James, has long been outspoken about 0:08:17.400 --> 0:08:21.640 defending abortion rights. Now she has publicly disclosed that she 0:08:21.760 --> 0:08:25.600 had an abortion herself almost two decades ago. The Democrat 0:08:25.720 --> 0:08:28.680 told an abortion rights rally that she chose to do 0:08:28.760 --> 0:08:31.520 so when she was a newly elected New York City 0:08:31.520 --> 0:08:34.959 Council member. New York Governor Kathy Hokel reacted to the 0:08:35.040 --> 0:08:38.280 League opinion, this is something that we have fought against 0:08:38.360 --> 0:08:41.400 for my entire life. In fact, this is a battle 0:08:41.640 --> 0:08:46.360 my mother's generation, it's a battle from my generation, my 0:08:46.440 --> 0:08:50.640 daughter's generation, and it seems like even my three day 0:08:50.679 --> 0:08:54.720 old grandchild, Sophia's generation, will have to be fighting this 0:08:54.880 --> 0:08:56.880 same fight, something that we had thought we had put 0:08:56.920 --> 0:08:59.280 to bed a long time ago, and I refused to 0:08:59.280 --> 0:09:04.160 go backward. Governor HOCl spoke while announcing Representative Antonio Delgado 0:09:04.480 --> 0:09:08.400 will serve as New York's next Lieutenant governor. North Korea 0:09:08.480 --> 0:09:11.520 has fired a ballistic missile toward the East Sea from 0:09:11.520 --> 0:09:15.160 pyong Yang. South Korea will inaugurate a new president next week, 0:09:15.200 --> 0:09:18.280 who is known to be hardline against the North. Analysts 0:09:18.280 --> 0:09:21.360 say North Korea's military provocations are likely to grow in 0:09:21.400 --> 0:09:25.800 the near future. Comedian Dave Chappelle was tackled on stage 0:09:25.800 --> 0:09:28.720 at the Hollywood Bowl in Los Angeles. It happened at 0:09:28.800 --> 0:09:32.240 Chappelle was just wrapping up his performance. The man was 0:09:32.320 --> 0:09:36.120 grabbed and punched by security guards. Global News twenty four 0:09:36.120 --> 0:09:38.880 hours a day on air and on Bloomberg Quick Tank, 0:09:39.120 --> 0:09:42.360 powered by more than twenty seven hundred journalists and analysts 0:09:42.360 --> 0:09:45.080 in more than one twenty countries. I'm Michael Barr and 0:09:45.200 --> 0:09:53.079 this is Bloomberg, Nathan. Alright, Michael, thank you six o 0:09:53.280 --> 0:09:55.800 nine on Wall Street. Time for the Bloomberg Sports Update 0:09:55.800 --> 0:09:58.679 with John Stanshown. Hi Nathan. The Rangers first playoff game 0:09:58.720 --> 0:10:01.160 with the Garden in five years. It was a long one. 0:10:01.160 --> 0:10:03.440 Blue Shirts, quite a strong first period, not so good 0:10:03.440 --> 0:10:05.960 in the second. They let Pittsburgh take twenty five shots 0:10:05.960 --> 0:10:08.800 on goal and score three times some Ranger penalties. Late 0:10:08.800 --> 0:10:11.160 in that period Chris Twyer actually scored shorthanded, but in 0:10:11.200 --> 0:10:13.959 the Penguins tied the game, scoring with the two man advantage, 0:10:13.960 --> 0:10:16.200 so it was three to three and it stayed that 0:10:16.280 --> 0:10:19.520 way for the next sixty seven minutes of hockey until 0:10:19.600 --> 0:10:22.839 six minutes into the third overtime capping it drifts to 0:10:22.880 --> 0:10:24.920 the far quarter with it up the wall. Now back 0:10:24.960 --> 0:10:30.000 to the point for Melino where shot scos get Evolki 0:10:30.160 --> 0:10:34.240 plays hero the Flexi pascious circuit and you can slap 0:10:34.240 --> 0:10:37.840 it on the Broadway marquee. The Penguins take Game one 0:10:38.120 --> 0:10:41.079 and lead this series. One game did nothing w x 0:10:41.160 --> 0:10:43.640 t X in Pittsburgh four three the final. That goal 0:10:43.720 --> 0:10:46.199 came on the penguins eighty third shot of the night. 0:10:46.280 --> 0:10:48.319 Rangers and their fans thinking about what happened with three 0:10:48.360 --> 0:10:51.560 minutes left in regulation, A Ranger goal taken away after 0:10:51.600 --> 0:10:54.720 the Penguins challenge, and the officials agreed there was goalie interference. 0:10:54.760 --> 0:10:56.560 Seemed like some evidence that it may have been caused 0:10:56.559 --> 0:10:59.480 by the Pittsburgh defense mood. But they will rest today 0:10:59.480 --> 0:11:01.800 and they'll leave after the Garden for Game two tomorrow. 0:11:01.800 --> 0:11:04.160 The Yankees back in Toronto tonight. They'll be going for 0:11:04.200 --> 0:11:06.640 another sweep, a h twelve win in a row. They 0:11:06.640 --> 0:11:09.559 pulled away last night one nine to one, scoring all 0:11:09.640 --> 0:11:12.079 nine runs over the last four innings. Aaron Judge got 0:11:12.120 --> 0:11:14.320 him going. His eight pm were on in the last 0:11:14.360 --> 0:11:17.319 ten games. Yanks put it away with six in the seventh. 0:11:17.320 --> 0:11:19.760 The doubleheader sweep for the Mets over Atlanta verse five 0:11:19.800 --> 0:11:23.240 to four, then three, upping behind Carlos Carrasco NBA Playoffs 0:11:23.240 --> 0:11:26.600 Boston routed Milwaukee, Memphis feed Golden State, John morand Sport 0:11:26.679 --> 0:11:29.880 forty seven points both series. That's high to one down 0:11:29.920 --> 0:11:32.760 station at wear Bloomberg Sports, Lincoln all right, John, Thanks, 0:11:32.760 --> 0:11:35.360 looking ahead to the market open, looking ahead to the Fed. 0:11:35.480 --> 0:11:38.600 We have futures moving higher, with SMP futures up seventeen 0:11:38.640 --> 0:11:42.120 points down futures up a hundred thirty nan stack futures 0:11:42.160 --> 0:11:45.360 are highed by thirty seven points. The tenure Treasury is 0:11:45.440 --> 0:11:47.839 up four thirty seconds, with the yield now two point 0:11:47.960 --> 0:11:51.400 nine five percent, yield on the two year two point 0:11:51.480 --> 0:11:55.320 seven eight percent. Just how hawkish will the Federal Reserve 0:11:55.400 --> 0:11:58.360 be as we await that may decision. We check in 0:11:58.440 --> 0:12:02.559 next with Bloomberg e can Nomics correspondent Michael McKee. This 0:12:03.520 --> 0:12:09.839 is Bloomberg Bloomberg eleven three oh weather. Rain will ender 0:12:09.880 --> 0:12:11.760 on midday today. It will turn partly sunny with a 0:12:11.800 --> 0:12:15.800 high ner sixty five this afternoon, low seventies Tomorrow. Showers 0:12:15.840 --> 0:12:18.080 return Friday, with a high back in the low sixties, 0:12:18.080 --> 0:12:24.400 currently fifty and rainy. Markets headlines and breaking news twenty 0:12:24.400 --> 0:12:27.280 four hours a day at Bloomberg dot Com, the Bloomberg 0:12:27.280 --> 0:12:31.319 Business at and at Bloomberg Ricktape. He's a Bloomberg Business 0:12:31.360 --> 0:12:40.040 Flash and I'm Karen moscow U Stock index futures on 0:12:40.080 --> 0:12:42.520 the rise this morning as investors raced for the biggest 0:12:42.520 --> 0:12:45.280 Federal Reserve interest rate hikes since two thousand and a. 0:12:45.360 --> 0:12:47.760 Wait more clues and to have aggressively the federal tackle 0:12:47.800 --> 0:12:50.400 inflation We checked the markets every fifteen minutes throughout the 0:12:50.400 --> 0:12:53.880 training day on bloomberg S and P futures up eighteen points, 0:12:53.880 --> 0:12:56.960 STAW futures up a hundred thirty three nasday futures up 0:12:56.960 --> 0:12:59.480 thirty nine, the ten year treasury up four thirty seconds. 0:12:59.480 --> 0:13:02.280 He'll two percent. They yield on the two year two 0:13:02.320 --> 0:13:05.319 point seven eight percent. Nimex fruit oil is at three 0:13:05.320 --> 0:13:07.559 point six percent of three dollars seventy one cents and 0:13:07.600 --> 0:13:10.360 a hundred six dollars eight cents of Barrel comic school 0:13:10.400 --> 0:13:13.400 this it'll change. In eighteen sixty nine, eighty announced the 0:13:13.440 --> 0:13:16.120 euro one pot five two six against the dollar. British 0:13:16.160 --> 0:13:19.400 found one zero the end at one thirty point oh one, 0:13:19.840 --> 0:13:23.240 and bitcoin is up about three percent at thirty eight thousand, 0:13:23.360 --> 0:13:26.240 nine hundred dollars because of Bloomberg business flash. Now here's 0:13:26.280 --> 0:13:28.800 Michael Barr with more on what's going on around the world. 0:13:28.840 --> 0:13:32.280 Michael Karen, thank you very much. Protests were held across 0:13:32.320 --> 0:13:34.960 the country over the League's U. S. Supreme Court draft 0:13:35.000 --> 0:13:38.600 opinion that would throw out Roe v. Wade. In Los Angeles, 0:13:38.600 --> 0:13:41.760 a skirmish injured one officer. A new study founds of 0:13:41.800 --> 0:13:45.720 here COVID nineteen may cause long lasting cognitive impairments, similar 0:13:45.720 --> 0:13:49.040 to how much brain power seventy year olds typically have 0:13:49.160 --> 0:13:52.559 lost compared to age fifty. In a couple of game ones. 0:13:52.600 --> 0:13:55.240 In the NHL playoffs, the Rangers lost in triple over 0:13:55.280 --> 0:13:59.200 time to the Penguins for three. Rangers goalie Igor Schstergan 0:13:59.240 --> 0:14:02.480 talk about the tough Laws finished with seventy nine save 0:14:02.679 --> 0:14:06.959 second n h L record of five. The Capitols beat 0:14:07.000 --> 0:14:09.920 the Panthers for two NBA playoffs. The Celtics are tied 0:14:10.000 --> 0:14:13.880 at a game each after beating the Bucks one six. 0:14:13.960 --> 0:14:16.240 Warriors lost to the Grizzlies in Game two one oh six, 0:14:16.280 --> 0:14:18.400 one o one. That series even at a game a 0:14:18.440 --> 0:14:22.000 piece as well. Baseball Yankees won eleven straight wins now 0:14:22.040 --> 0:14:24.560 the Mets swept the Double Ledder against the Braves, The 0:14:24.560 --> 0:14:28.000 Red Sox Nationals won the Orioles eighties, and Giants lost. 0:14:28.320 --> 0:14:30.880 Global news twenty four hours a day on here and 0:14:31.080 --> 0:14:34.240 on Bloomberg Quicktake, powered by more than twenty seven hundred 0:14:34.280 --> 0:14:37.080 journalist analysts more than a hundred twenty countries. Michael bar 0:14:37.280 --> 0:14:40.480 this is Bloomberg, Nathan Michael, thank you. It is six 0:14:40.600 --> 0:14:43.840 nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. 0:14:43.920 --> 0:14:47.840 This is Bloomberg Daybreak on a very important Federal Reserve 0:14:47.880 --> 0:14:51.320 decision day. We are joined live from Washington by Bloomberg 0:14:51.360 --> 0:14:55.120 Economics correspondent Michael McKee. Mike, good morning. We know we're 0:14:55.160 --> 0:14:58.840 in a hiking cycle. We know their laser focused on 0:14:58.960 --> 0:15:01.960 tackling in flay Shin, And I guess the question for 0:15:02.000 --> 0:15:08.040 investors is just how hawkish well the FED signal it is? Now? Well, 0:15:08.040 --> 0:15:10.640 I have to say, it's nice to be back in Washington. 0:15:10.720 --> 0:15:14.560 March was the last FED meeting that was in person. 0:15:14.720 --> 0:15:18.360 Now they met uh in March of this year in person, 0:15:18.480 --> 0:15:21.040 but the press wasn't there this year's. This is the 0:15:21.040 --> 0:15:23.760 first time we've been all back together. It's it's interesting 0:15:23.800 --> 0:15:26.920 because usually I'll come in and I'll say, uh, Nathan, 0:15:27.040 --> 0:15:29.720 it's not what the Fed is going to do, it's 0:15:29.800 --> 0:15:34.120 when they say. In this case, it's what j Pale 0:15:34.400 --> 0:15:38.800 does when he dodges the question on everyone's mind. Okay, 0:15:38.840 --> 0:15:42.360 how does he present the possibility of moving faster than 0:15:42.400 --> 0:15:45.120 even fifty basis points? You know he'll get asked about it. 0:15:45.400 --> 0:15:49.040 And the markets are almost pricing in seventy five for 0:15:49.400 --> 0:15:52.280 June and it's kind of a feeling like, well, you've 0:15:52.280 --> 0:15:54.040 told us you need to get to the neutral rate 0:15:54.160 --> 0:15:55.800 two and a half to three percent by the end 0:15:55.840 --> 0:15:57.600 of the year, so what are you waiting for. So 0:15:57.640 --> 0:16:00.360 it'll be interesting to see how specific he gets in 0:16:00.520 --> 0:16:03.720 laying out the future path. That is interesting because we 0:16:03.720 --> 0:16:07.160 were just speaking moments ago with Tom Porcelli over at 0:16:07.200 --> 0:16:10.560 OURBC saying that it's not clear at this point, at 0:16:10.600 --> 0:16:14.160 least to him, what the FED wants to achieve when 0:16:14.160 --> 0:16:17.360 it comes to getting inflation down to target, or whether 0:16:17.440 --> 0:16:20.960 target is the goal at this point, and his point 0:16:21.120 --> 0:16:25.560 was that that the Chairman needs to at least talk 0:16:25.880 --> 0:16:29.840 toward market expectations. You're thinking he's not going to go 0:16:29.880 --> 0:16:33.720 there potentially, Well, I don't think he's going to be specific. 0:16:33.920 --> 0:16:37.480 He will probably want to leave himself some wiggle room, 0:16:37.600 --> 0:16:41.960 some openings if the market, uh starts to get too 0:16:42.000 --> 0:16:45.080 aggressive and then the FED feels like it's locked into 0:16:45.120 --> 0:16:48.720 something that you know, there may be a change in 0:16:48.760 --> 0:16:51.440 the economic outlook. We don't know what's gonna happen with 0:16:51.480 --> 0:16:55.640 the war Beijing today extending hits lockdown, so obviously more 0:16:56.080 --> 0:16:59.840 problems from China for supply chains. So the FED doesn't 0:16:59.840 --> 0:17:02.680 want to be pinned down until it gets much closer 0:17:02.720 --> 0:17:07.520 to the next meeting, so Power will probably say were 0:17:07.680 --> 0:17:10.280 everything's on the table, but we're not going to commit 0:17:10.280 --> 0:17:13.600 to anything yet. What are you expecting in terms of 0:17:14.040 --> 0:17:17.679 potential changes to the language in the statement? Are you 0:17:17.720 --> 0:17:21.360 looking for any major moves? There? Not? Nothing major. They're 0:17:21.359 --> 0:17:25.240 gonna have to acknowledge that inflation is higher than they expected, 0:17:25.359 --> 0:17:32.320 and they'll take out the idea that the FED maybe 0:17:32.320 --> 0:17:34.600 one and done or something like that. They'll have some 0:17:34.680 --> 0:17:37.720 language in there referring to the idea that the FED 0:17:37.760 --> 0:17:44.719 will continue interest rate moves. They last time had interest 0:17:44.800 --> 0:17:50.800 rate sort of catchphrase in there of significant time over 0:17:51.560 --> 0:17:55.199 the two percent target before the FED would start moving. 0:17:55.280 --> 0:17:57.359 Now they're going to have to have something that says 0:17:57.920 --> 0:18:01.720 we're gonna continue moving because we think that inflation is 0:18:02.280 --> 0:18:05.880 out of control. They won't say out of control, but 0:18:06.000 --> 0:18:07.920 we we think inflation is too high and we want 0:18:07.920 --> 0:18:10.600 to continue attacking it. And it's gonna take some time 0:18:10.680 --> 0:18:15.200 before we get to the point where it's acceptable. And 0:18:15.240 --> 0:18:18.600 to your point, Mike, about being back in Washington for 0:18:18.640 --> 0:18:22.520 the first time since the pandemic, obviously a big change 0:18:23.080 --> 0:18:27.720 coming past COVID. What could we hear from the Fed 0:18:27.960 --> 0:18:31.240 when it comes to how they're thinking about how the 0:18:31.280 --> 0:18:35.400 economy is changing coming out of COVID. Well, I think 0:18:36.240 --> 0:18:39.760 Power will re emphasize, as he has uh several times 0:18:40.000 --> 0:18:42.480 in recent months, that the economy is very strong. And 0:18:42.640 --> 0:18:46.080 we got those Jolts numbers yesterday, the job openings numbers, 0:18:46.080 --> 0:18:48.960 and there's still at a record level of more than 0:18:49.000 --> 0:18:51.680 eleven million, and that just tells you at this point 0:18:51.680 --> 0:18:55.600 there's a lot of competition for employees, which means probably 0:18:55.640 --> 0:18:59.879 pay raises and so uh that adds to the inflationary pressure. 0:18:59.880 --> 0:19:02.840 So the Feds going to reassure people the market in 0:19:02.880 --> 0:19:06.160 the market, and uh, the American people that they don't 0:19:06.160 --> 0:19:08.719 think there's gonna be a recession, that they think they 0:19:08.760 --> 0:19:11.800 have scope to move. They're just thirty seconds left here. 0:19:11.840 --> 0:19:14.120 The question I always ask you around FED decision day. 0:19:14.119 --> 0:19:16.960 Looking forward to hearing your question to Chairman Powell, what 0:19:17.040 --> 0:19:19.679 do you want to ask him? Well, I would like 0:19:19.720 --> 0:19:22.600 to know how aggressive they could get. I think that 0:19:22.760 --> 0:19:26.680 the main question from everyone is going to be will 0:19:26.720 --> 0:19:30.680 you speed up the process by raising rates even faster? 0:19:31.480 --> 0:19:35.520 They cut rates very quickly, do they raise rates very quickly. 0:19:36.200 --> 0:19:40.480 Mike McKee, Bloomberg Economics correspondent. Part of our Fed decision 0:19:40.560 --> 0:19:45.280 day coverage kicks off live one pm Wall Street Time, 0:19:45.320 --> 0:19:48.560 an hour ahead of the decision, with a special edition 0:19:48.600 --> 0:19:52.760 of Bloomberg Surveillance coming up on Bloomberg Radio and Television. Again. 0:19:52.800 --> 0:19:56.760 That's at one pm Wall Street Time. SMP Future is 0:19:56.840 --> 0:19:59.560 higher by seventeen points, Staff futures up a hundred twenty one, 0:19:59.640 --> 0:20:02.800 nasty features up thirty seven ahead of the FED decision. 0:20:02.920 --> 0:20:10.680 This is Bloomberg Street. Stay with us for a live 0:20:10.760 --> 0:20:14.359 conversation with Jamie Diamond coming up in just a few minutes, 0:20:14.400 --> 0:20:18.119 live from the JP Morgan's CEO Summit in London. This 0:20:18.680 --> 0:20:25.840 is Bloomberg broadcasting live from the Bloomberg Interactive Broker Studio 0:20:25.960 --> 0:20:29.119 in New York. Bloomberg Living Freedom to Washington, d C, 0:20:29.320 --> 0:20:34.040 Bloomberg to Boston, Bloomberg one O six one to San Francisco, 0:20:34.080 --> 0:20:37.800 Bloomberg Non sixteen to the country, Sirius xm Cho one nine, 0:20:38.160 --> 0:20:41.680 and around the globe, the Bloomberg Business and Bloomberg Radio 0:20:41.800 --> 0:20:51.000 dot Com. This is Bloomberg Daybreak six thirty on Wall Street. 0:20:51.000 --> 0:20:54.200 Good Morning. I'm Nathan Hagar, and I'm Karen Moscow and Bloomberg. 0:20:54.280 --> 0:20:57.720 Daybreak is brought to you by Interactive Broker's. Interactive Brokers 0:20:57.760 --> 0:21:00.359 Charges margin loan race from zero point eight three percent 0:21:00.440 --> 0:21:02.800 to one point eight three percent rates subject to change. 0:21:02.920 --> 0:21:05.720 Learn more at ib k R dot com. Slash compare 0:21:06.200 --> 0:21:08.359 some of the stories we are following. The Federal Reserves 0:21:08.359 --> 0:21:12.359 expected to raise interest rates fifty basis points today. Barrenberg 0:21:12.440 --> 0:21:15.639 Chief Economist Holger sch Meeting says, the markets already looking 0:21:15.680 --> 0:21:19.000 for what's coming next. The market will listen very closely 0:21:19.040 --> 0:21:22.200 to anything that could give a point to to what 0:21:22.320 --> 0:21:25.520 the Fed does in June and what it may be 0:21:25.640 --> 0:21:28.760 doing there raft which, of course, in these uncertain times 0:21:29.119 --> 0:21:31.320 we may not get all that much to your guidance. 0:21:31.640 --> 0:21:34.800 That's what the market will look out for, any guidance 0:21:34.800 --> 0:21:38.560 on what happens next. And Barrenberg Chief Economist holders Meeting, 0:21:38.600 --> 0:21:41.400 speaking to Bloomberg yesterday. Fill coverage of the Fed decision 0:21:41.400 --> 0:21:44.480 beginning at one pm Wall Street time on Bloomberg Radio 0:21:44.600 --> 0:21:48.000 and television. Definitely looking forward to that coverage. Karen right 0:21:48.000 --> 0:21:51.479 now at six thirty one on Wall Street eleven thirty 0:21:51.520 --> 0:21:57.040 one in London, where the JP Morgan's CEO summit is underway. 0:21:57.119 --> 0:22:01.120 Bloomberg's Francy Lakwix is sitting down now for conversation with 0:22:01.200 --> 0:22:05.480 the cel Jamie Diamond. Let's listen, and now this is Bloomberg. 0:22:08.600 --> 0:22:10.399 Thank you so much. John. Yes, we're in London and 0:22:10.440 --> 0:22:12.760 we could not be more pleased, I say, the Royal Weak. 0:22:12.920 --> 0:22:14.879 We're really delighted. Speak to Jamie Diamond. Thank you so 0:22:15.000 --> 0:22:17.639 much for taking the time Walster in London to speak 0:22:17.680 --> 0:22:19.520 to us. So the Fed, the Fed, the Fed today, 0:22:19.560 --> 0:22:23.199 we're expecting fifty basis points. What happens to inflation? Here? 0:22:23.240 --> 0:22:26.080 Is this your biggest concern? First? So francaying happy to 0:22:26.119 --> 0:22:28.879 be here and give a little perspective. We have and 0:22:28.920 --> 0:22:31.200 this this is contradicting about to say, but both are true, 0:22:31.640 --> 0:22:35.040 very strongly US economy. They because consumers in great shape, 0:22:35.080 --> 0:22:38.399 lots of money spending the money, jobs a plentiful, wages 0:22:38.400 --> 0:22:40.560 of going up. Though everything is distorted by inflation and 0:22:40.600 --> 0:22:43.320 all that, but those are good news. And business are 0:22:43.320 --> 0:22:45.280 in very good shape. And the Fed is going to 0:22:45.320 --> 0:22:47.800 have to raise rates in reverse Q week and they're gonna, 0:22:47.840 --> 0:22:49.200 you know, if they can, they're gonna try to slow 0:22:49.200 --> 0:22:52.560 down the economy enough. Eight percent starts to come down 0:22:52.600 --> 0:22:55.600 over time, and I wish him the best. We're a 0:22:55.600 --> 0:22:57.600