WEBVTT - Bloomberg Daybreak: May 2, 2022 - Hour 2 (Radio) 0:00:03.880 --> 0:00:07.119 Live from the Bloomberg Interactive Burgers Studios is his Bloomberg 0:00:07.240 --> 0:00:10.760 day Break for Monday, May second two. Coming up this hour. 0:00:11.119 --> 0:00:13.560 US stocks begin the new trading months, coming off the 0:00:13.560 --> 0:00:17.040 worst April in more than fifty years. Investors brace for 0:00:17.040 --> 0:00:20.000 this week's FED decision. Warren Buffett goes on a bind 0:00:20.040 --> 0:00:22.520 spree in the first quarter, and Nancy Pelosi makes a 0:00:22.520 --> 0:00:26.600 surprise visit to Ukraine. A new crime fighting strategy begins 0:00:26.640 --> 0:00:29.159 today in New York City. Plus senators are calling on 0:00:29.280 --> 0:00:32.880 President by the by disruptions of the solar industry. Michael 0:00:32.880 --> 0:00:36.440 blarn More and I'm John Stashower and sports ninth straight 0:00:36.479 --> 0:00:39.320 win for the Yankees, but Mets one another series, NBA 0:00:39.360 --> 0:00:44.919 playoff road winds from Milwaukee and Golden State. That's all 0:00:45.040 --> 0:00:48.720 training ahead on Bloomberg Daybreak on Bloomberg. He liveing free 0:00:48.760 --> 0:00:53.159 on New York, Bloomberg one, Washington, d C, Bloomberg one 0:00:53.159 --> 0:00:57.680 oh six one, Boston, Bloomberg nine sixties and Francisco Sirius 0:00:57.840 --> 0:01:00.280 x M one nineteen and around the world Old on 0:01:00.400 --> 0:01:03.680 Bloomberg Radio dot Com and via the Bloomberg Business App. 0:01:07.720 --> 0:01:10.640 Good Morning, I'm Nathan Hagar and I'm Karen Moscow u 0:01:10.800 --> 0:01:13.520 shtock in NIX futures are on the rise this morning. 0:01:13.520 --> 0:01:15.280 We're coming up to six o one on Wall Street, 0:01:15.280 --> 0:01:17.320 and we checked the markets every fifteen minutes throughout the 0:01:17.360 --> 0:01:21.320 trading day on Bloomberg SMP futures of seventeen points, DALN 0:01:21.400 --> 0:01:24.039 futures of one hundred fifty one, and Nownesday Teachers up 0:01:24.120 --> 0:01:27.080 sixty ten, Your treasury up three thirty seconds, the l 0:01:27.120 --> 0:01:29.319 two point nine two percent yield on the two year 0:01:29.400 --> 0:01:32.800 two point seven percent, and nine next screwed oil is 0:01:32.840 --> 0:01:35.600 down three percent at a hundred one dollars fifty cents 0:01:35.680 --> 0:01:38.840 of Daryl Nathan Karen Investors begin the month of May 0:01:38.959 --> 0:01:42.520 after a historically bad April. The SNP five hundred fell 0:01:42.680 --> 0:01:46.440 eight point eight percent for the worst April performance since 0:01:46.600 --> 0:01:49.920 nine seventy and tech investors haven't taken a beating like 0:01:49.960 --> 0:01:53.040 this in nearly fourteen years. The Nasdaq one hundred plunge 0:01:53.120 --> 0:01:56.480 more than thirteen percent in April, its worst performance since 0:01:56.520 --> 0:01:59.960 October two thousand date. Katie Nixon, his chief investment officer 0:02:00.080 --> 0:02:03.480 at Northern Trust, I mean, I think valuation is very 0:02:03.560 --> 0:02:06.880 fragile in this rising rate environment here and then at 0:02:06.880 --> 0:02:10.080 the shame time. You've got some fundamentals that you know, 0:02:10.639 --> 0:02:13.079 at best are sort of flattening out and at worst 0:02:13.160 --> 0:02:16.239 are showing some declining trends. In net such is sort 0:02:16.240 --> 0:02:19.600 of the poster child joined now by Amazon, that's really 0:02:19.600 --> 0:02:22.880 showing a weakening of demand. Northern Trust Chief investment Officer 0:02:22.960 --> 0:02:25.720 Katie Nixon notes the SMP five and the NASTAC one 0:02:25.919 --> 0:02:29.000 d of each fallen for four consecutive weeks. Well, Nathan 0:02:29.080 --> 0:02:31.720 Vallens have also been taking a pounding this year, and 0:02:31.760 --> 0:02:34.760 one of the biggest investors outside America things there may 0:02:34.760 --> 0:02:37.919 be more pain ahead. We get the latest live with Bloomberries, 0:02:38.000 --> 0:02:41.799 John Tucker, John Gobardan Karen Typically investors can take refuge 0:02:41.800 --> 0:02:45.320 in bonds, especially US treasuries, and for years they've been 0:02:45.360 --> 0:02:49.000 supported by Japanese buyers, but that's no longer the case. 0:02:49.400 --> 0:02:53.440 Japanese institutional managers are now fielding a great bond sell off. 0:02:53.680 --> 0:02:57.520 The largest overseas holder of treasuries has offloaded almost sixty 0:02:57.600 --> 0:03:00.720 billion dollars over the past three months. That's according to 0:03:00.800 --> 0:03:04.800 data from BEMO Capital Markets. There are several reasons market volatility, 0:03:04.840 --> 0:03:09.040 divergent monetary policy, and a weaker again and Japanese investors 0:03:09.120 --> 0:03:12.640 may wait for higher and higher rates before ever jumping 0:03:12.680 --> 0:03:15.960 back in lie to New York. I'm John Tucker, Bloomberg, debreak. 0:03:16.080 --> 0:03:18.080 All right, John, thank you. Of course, both bond and 0:03:18.200 --> 0:03:20.919 equity investors will be paying close attention to this week's 0:03:20.919 --> 0:03:22.920 policy decision from the Fed. It is one of the 0:03:22.960 --> 0:03:25.760 most anticipated in years, and we get a preview from 0:03:25.760 --> 0:03:29.600 Bloomberg's Michael McKay. The government reported Friday that employment costs 0:03:29.680 --> 0:03:32.639 rose the most since nine seven in the first quarter, 0:03:32.880 --> 0:03:35.960 while the Fed's favorite inflation gauge rose to the highest 0:03:35.960 --> 0:03:39.520 since nine two. And let's say that more than seals 0:03:39.560 --> 0:03:42.320 a fifty basis point rate increase from the Fed on Wednesday. 0:03:42.640 --> 0:03:44.880 It raises the question of whether the FED needs to 0:03:45.080 --> 0:03:48.560 keep raising by fifty or even seventy five going forward. 0:03:49.080 --> 0:03:51.680 They won't say, but Chairman j Pale will be asked 0:03:51.680 --> 0:03:54.560 about it at his news conference. The Fed will also 0:03:54.600 --> 0:03:57.280 be detailing how and when it will start reducing the 0:03:57.320 --> 0:04:01.600 balance sheet and trying to reassure Americans inflation is their 0:04:01.600 --> 0:04:05.240 top priority. Michael McKie Bloomberg Daybreak, All right, Mike, thank you. 0:04:05.240 --> 0:04:07.680 Of course, we'll have full coverage and analysis of Wednesday, 0:04:07.760 --> 0:04:10.360 said decision, beginning at one pm Wall Street time that 0:04:10.480 --> 0:04:13.640 day on both Bloomberg Radio and television. Well, Nathan, it's 0:04:13.680 --> 0:04:15.880 also another busy week for earnings, with more than one 0:04:15.960 --> 0:04:18.920 hundred sixty companies in the S and P five hundred reporting. 0:04:18.920 --> 0:04:22.360 We get a preview from bloombergs Shirley Pellett. Big technology 0:04:22.440 --> 0:04:24.880 firms and banks are behind us, but we'll be hearing 0:04:24.960 --> 0:04:28.200 from a broad swath of companies as investors assess the 0:04:28.240 --> 0:04:33.480 ongoing themes of inflation, consumer demand, and geopolitics. Sarah Malick 0:04:33.640 --> 0:04:37.080 is chief investment officer at Nouvene Earnest looked strong free 0:04:37.160 --> 0:04:40.320 quarters of companies are beating Arnies double digit revenue growth 0:04:40.400 --> 0:04:43.479 overall and about five or six percent. Arnis Among some 0:04:43.560 --> 0:04:46.320 of the names reporting this week Airbnb, A, I, G, 0:04:46.680 --> 0:04:50.960 A M D, Conico, Phillips, Ubert Lifts, Starbucks, young brands 0:04:51.200 --> 0:04:55.600 and travel names Expedia, Hilton, and Marriott. In New York, 0:04:55.680 --> 0:04:58.400 Charlie pet Bloomberg day break. All right, Charlie, thanks so. 0:04:58.480 --> 0:05:02.160 One company that already reported over the weekend was Berkshire Hathaway. 0:05:02.200 --> 0:05:05.039 The Warren Buffett conglomerates squeaked out a profit gain, but 0:05:05.520 --> 0:05:08.680 perhaps more importantly, the billionaire went on a buying spree 0:05:08.720 --> 0:05:10.760 in the first quarter. Let's get the lightest on that. 0:05:10.839 --> 0:05:13.320 Live from Bloombergshire, Nity Young, Good morning, Grena, good morning. 0:05:13.360 --> 0:05:16.560 Nathan Warren Buffett made forty one billion dollars in net 0:05:16.640 --> 0:05:19.760 stock purchases during the first quarter. It was his biggest 0:05:19.880 --> 0:05:22.640 buying spree in at least a decade, and a war 0:05:22.760 --> 0:05:25.720 and soaring US inflation did not deter him from doubling 0:05:25.720 --> 0:05:29.360 down on a tried and trusted strategy to navigate the 0:05:29.400 --> 0:05:34.440 fallout among the purchases. Berkshire raises its Chevron holdings, Buffett 0:05:34.480 --> 0:05:37.440 discloses that the company now owns an expanded nine point 0:05:37.520 --> 0:05:40.960 five percent stake in Activision Blizzard, and at the annual 0:05:40.960 --> 0:05:44.480 shareholders meeting, the one year old Buffett had his business partner, 0:05:45.040 --> 0:05:48.480 year old Charlie Munger, gave no indication that they planned 0:05:48.480 --> 0:05:52.000 to step back from their roles anytime soon. Live in 0:05:52.040 --> 0:05:54.960 New York. I'm Renita Young, bloom birth day break All right, 0:05:55.000 --> 0:05:57.080 Granny to thank you. Now, let's get to the latest 0:05:57.080 --> 0:06:00.280 on the war in Ukraine. After weeks of Russian bombardment, 0:06:00.400 --> 0:06:03.280 civilians are starting to leave a besieged steel plant in 0:06:03.400 --> 0:06:06.960 Marya Pole. President Zelenski says about a hundred men, women 0:06:06.960 --> 0:06:10.080 and children will arrive in Ukrainian control of territory this morning. 0:06:10.240 --> 0:06:13.520 And how Speaker Nancy Pelosi met with Poland's president today 0:06:13.560 --> 0:06:16.720 after surprise was to keep to get that story from Bloomberg, 0:06:16.760 --> 0:06:20.039 said Baxter. This was a well kept secret. Pelosi leading 0:06:20.080 --> 0:06:33.880 a congressional delegation pledging continued support and says continued usaid. 0:06:35.240 --> 0:06:39.160 Pelosi then traveled back to Poland in San Francisco. I'm 0:06:39.160 --> 0:06:41.800 at Baxter Bloomberg daybreak, All right, and thank you. Let's 0:06:41.839 --> 0:06:44.600 turn to the pandemic now, where our focus remains in China. 0:06:44.720 --> 0:06:47.640 Coronavirus lockdowns in the country, you're taking a significant toll 0:06:47.680 --> 0:06:50.720 on the economy over the weekend. Data showed both manufacturing 0:06:50.720 --> 0:06:53.640 and services activity plunged in April to their worst levels 0:06:53.640 --> 0:06:57.040 in more than two years. And in Australia, Nathan Quantas 0:06:57.080 --> 0:06:59.920 has revived a plan for the world's longest NonStop flights. 0:07:00.000 --> 0:07:02.279 They would connect Australia's East coast with the New York 0:07:02.320 --> 0:07:05.440 and London. The airline says it's buying twelve Airbus jets 0:07:05.520 --> 0:07:08.479 that can make the twenty hour journeys. Plantas will begin 0:07:08.520 --> 0:07:12.240 the service from Sydney and and again. Future is on 0:07:12.280 --> 0:07:15.120 the rise this morning, straight ahead your latest local headlines, 0:07:15.200 --> 0:07:23.600 plus a check of sports. And this is Bloomberg all right, Karen, 0:07:23.600 --> 0:07:26.360 Thanks Sixcess seven on Wall Street, fifty three degrees in 0:07:26.480 --> 0:07:28.640 Central Park. Both fans on the wheel this morning. We've 0:07:28.640 --> 0:07:32.000 got some nasty thunderstorms all through traffic. Coming up first, 0:07:32.040 --> 0:07:33.840 Michael bar with more on what's going on in New 0:07:33.920 --> 0:07:36.360 York and around the world. Good morning, Michael, Good morning Nathan. 0:07:36.360 --> 0:07:39.880 A new crime fighting initiative begins today in New York City. 0:07:40.280 --> 0:07:43.560 Mayor Eric Adams says and the forty most violent precincts 0:07:43.560 --> 0:07:48.680 authorities will move neighborhood coordinating officers into evening patrols. Other 0:07:48.760 --> 0:07:53.320 plans include sending field intelligence officers to the street. Overall 0:07:53.400 --> 0:07:56.680 crime is up thirty last month compared to April of 0:07:56.800 --> 0:07:59.880 last year. Gun violence it's also on the rise. May 0:08:00.120 --> 0:08:03.240 Adams also says they will find people who cheat on 0:08:03.360 --> 0:08:06.640 paying subway fares in the city. Broadway theaters are ending 0:08:06.680 --> 0:08:09.920 the policy of requiring customers to show proof of vaccination. 0:08:10.480 --> 0:08:13.040 The Broadway League says in a statement that the owners 0:08:13.080 --> 0:08:16.760 and operators of all forty one Broadway theaters are extending 0:08:16.800 --> 0:08:19.360 the mask requirement at least through the end of May, 0:08:19.440 --> 0:08:23.560 but many will no longer check for vaccination status. President 0:08:23.600 --> 0:08:27.000 Biden spoke in Minneapolis at a memorial service for former 0:08:27.040 --> 0:08:31.520 President Walter Vice President Walter Mondale. Mondale died in April 0:08:31.600 --> 0:08:35.320 of last year at age nine. President Biden said he 0:08:35.360 --> 0:08:38.400 and Mondale, who was known as Fritz for close friends. 0:08:38.760 --> 0:08:41.160 I'm I moved to be with you here today as 0:08:41.200 --> 0:08:45.679 an honor one of the great giants in American history. 0:08:45.720 --> 0:08:50.240 And that's not hyperbole. Fritz was a giant in American 0:08:50.240 --> 0:08:54.960 political history. President Biden described Mondale as a dedicated patriot 0:08:55.040 --> 0:08:58.439 and public servant. The judge joined the Country Music Hall 0:08:58.480 --> 0:09:01.720 of Fame last night, just to day after Naomi Judd 0:09:01.800 --> 0:09:06.120 died unexpectedly. Naomi's daughter is Winona and Ashley Judd accepted 0:09:06.160 --> 0:09:08.800 the honor. Wenona Judd, this is the first time I've 0:09:08.800 --> 0:09:12.719 talked since saying goodbye to twenty A kiss draw on 0:09:12.760 --> 0:09:16.240 the forehead, and I walked away, and this is the 0:09:16.240 --> 0:09:19.679 first place I've been. Wenona and Ashley Judd said their 0:09:19.720 --> 0:09:22.000 mother died at the age of seventy six due to 0:09:22.160 --> 0:09:26.360 the disease of mental illness. Nearly two dozen senators today 0:09:26.400 --> 0:09:30.120 called on President Joe Biden to swiftly advance a trade 0:09:30.160 --> 0:09:33.800 probe that they said was already causing massive disruption in 0:09:33.800 --> 0:09:36.559 the U S. Solar industry. According to the letter from 0:09:36.559 --> 0:09:40.240 twenty two senators, the investigation into whether Chinese companies are 0:09:40.360 --> 0:09:45.120 circumventing decades old tariffs by assembling solar cells modules in 0:09:45.160 --> 0:09:50.319 Southeast Asia will severely harm American businesses and workers. Global 0:09:50.320 --> 0:09:52.560 News twenty four hours a day on here and on 0:09:52.600 --> 0:09:56.040 Bloomberg Quicktake, powered by more than twenty seven hundred journalists 0:09:56.080 --> 0:09:58.560 analysts more than a hundred twenty countries. Hi, Michael Barn, 0:09:58.559 --> 0:10:05.680 this is Bloomberg, Nathan, Michael. Thanks coming up to the 0:10:05.720 --> 0:10:08.160 six ten on All Street. Time for the Bloomberg Sports Day. 0:10:08.200 --> 0:10:11.120 Here's John Stenshower. All right, Nathan. The Mets weekend, of course, 0:10:11.160 --> 0:10:13.280 began with the no hitter. It ended last night with 0:10:13.360 --> 0:10:15.560 Max Schers. We're giving up three home runs, but the 0:10:15.640 --> 0:10:18.760 Mets bats produced fifteen hits and attend to six win 0:10:18.840 --> 0:10:21.160 over the Phillies at City Field. Jeff McNeil had four 0:10:21.200 --> 0:10:23.600 of those hits, raising his average to three sixty one. 0:10:23.640 --> 0:10:26.440 Don Smith had four hits. He drove in three runs, 0:10:26.440 --> 0:10:29.560 so did Sterling Marte. The Mets have now played seven series. 0:10:30.120 --> 0:10:32.360 They have not had a sweep, but they've won all seven. 0:10:32.360 --> 0:10:35.720 The Yankees have had three straight series sweeps, nine wins 0:10:35.760 --> 0:10:38.360 in a row. In Kansas City, they trailed four to one, 0:10:38.440 --> 0:10:40.480 took the lead in the seventh innings going two runs 0:10:40.520 --> 0:10:43.000 without a hit, and they won six to four. Aaron 0:10:43.120 --> 0:10:45.439 Judge homerd with one out in the first inning. He 0:10:45.520 --> 0:10:48.199 hit another with two outs of the night. Judge had 0:10:48.200 --> 0:10:50.959 no homers in his first thirteen games. He's hit seven 0:10:51.360 --> 0:10:53.440 in his last eight games, and the Yanks take this 0:10:53.600 --> 0:10:57.400 nine game win streak into tonight's game in Toronto. NBA 0:10:57.440 --> 0:11:00.319 playoffs started Round two Milwaukee one in Boston one oh 0:11:00.360 --> 0:11:02.400 one to eighty nine. Your Honest son to the Compo 0:11:02.480 --> 0:11:06.079 had a triple double. Golden State in Memphis lost Draymond 0:11:06.080 --> 0:11:08.800 Green in the second quarter. He was ejected for a flagrant. 0:11:08.840 --> 0:11:12.000 Fouley held a one point lead at the end. They 0:11:12.040 --> 0:11:14.880 will throw it in fine eight Clark Clark bounce pass 0:11:14.920 --> 0:11:17.360 over to Moran, He'll drive in. Scooper's up. No good 0:11:17.400 --> 0:11:21.920 rebount Wig ups. The Warriors win the Larwriors win, Memphis 0:11:21.960 --> 0:11:25.120 stop the look they wanted and more couldn't finish it 0:11:25.360 --> 0:11:29.319 had told him State capture State one with Trebond grade 0:11:29.400 --> 0:11:32.200 in the locker road. The game had the call. Two 0:11:32.200 --> 0:11:35.000 more series openers tonight. It's also opening night of the 0:11:35.040 --> 0:11:37.560 Stanley Cup Playoffs, with a quartet of games, including the 0:11:37.600 --> 0:11:40.120 Bruins at Carolina the Hurricanes one of the three regular 0:11:40.200 --> 0:11:43.040 season meetings by a combined score of sixteen to one. 0:11:43.400 --> 0:11:45.800 Rangers in the Penguins Game one at the Garden tomorrow, 0:11:45.880 --> 0:11:49.640 John stash Ellardtenberg sports Nathan, thank you, John SMP. Futures 0:11:49.679 --> 0:11:52.120 now up eighteen points down, Futures up a hundred fifty 0:11:52.160 --> 0:11:55.480 five dance stack, futures up sixty seven points after the 0:11:55.559 --> 0:11:58.280 kind of April we haven't seen for stocks in half 0:11:58.320 --> 0:12:02.440 a century. Look at these markets next with Bloomberg's Danni Burger. 0:12:02.640 --> 0:12:08.680 You're listening to Bloomberg day Break. Bloomberg day Break brought 0:12:08.679 --> 0:12:11.360 to you by the Jewish Communal Fund j CFS. Donor 0:12:11.400 --> 0:12:13.880 advised fund is the smart choice to manage your philanthropy, 0:12:14.000 --> 0:12:16.640 especially in times of crisis. Make your giving impact forth 0:12:16.760 --> 0:12:22.320 is it j c F n y dot org. Markets 0:12:22.440 --> 0:12:25.480 headlines and breaking news twenty four hours a day at 0:12:25.520 --> 0:12:29.520 Bloomberg dot Com, The Bloomberg Business at and at Bloomberg Quicktape. 0:12:29.640 --> 0:12:39.000 This is a Bloomberg Business lash and I'm Cameron Moscow 0:12:39.040 --> 0:12:41.800 and you must on. Index futures are rebounding from Friday's 0:12:41.840 --> 0:12:44.280 bruising sell off, which was Wall Street's worst day in 0:12:44.320 --> 0:12:48.160 almost two years outside of the US. Doctor declining is 0:12:48.200 --> 0:12:51.280 disappointing economic data from China and the prospect of sanctions 0:12:51.280 --> 0:12:54.360 on Russian oil wag heavily on risk appetite. We checked 0:12:54.400 --> 0:12:56.760 the markets every fifteen minutes throughout the trading day. On 0:12:56.840 --> 0:13:00.360 Bloomberg SNP Future is up twenty boys down eaters of 0:13:00.440 --> 0:13:03.320 one hundred seventy one and nowsday futures up seventy two. 0:13:03.559 --> 0:13:06.000 The decks in Germany's down six tenths of a percent. 0:13:06.360 --> 0:13:08.839 Ten year treasury of three thirty seconds yield two point 0:13:08.920 --> 0:13:10.960 nine two percent. That yield on the two year two 0:13:10.960 --> 0:13:14.200 point seven percent. Nine mack screwed oil is down three 0:13:14.200 --> 0:13:16.800 point one percent on three dollars twenty seven cents at 0:13:16.800 --> 0:13:19.600 a hundred one dollars forty two cents a barrel. Comics 0:13:19.600 --> 0:13:22.040 called on one point seven percent on thirty three dollars 0:13:22.040 --> 0:13:24.959 at eighteen seventy eight fifty an ounce, the Euro one 0:13:24.960 --> 0:13:27.480 point oh five to four against the dollar, British pound 0:13:27.520 --> 0:13:29.760 one point to five seven seven, the yen at one 0:13:29.800 --> 0:13:33.000 twenty nine point nine four, and Bitcoin higher up more 0:13:33.040 --> 0:13:36.240 than one percent at thirty eight thousand, seven hundred sixty dollars. 0:13:36.440 --> 0:13:38.920 That's at Bloomberg Business Flash. Now here's Michael Barr with 0:13:39.000 --> 0:13:41.840 Moore on what's going on around the world. Michael, thank 0:13:41.880 --> 0:13:44.920 you very much. Karen. The evacuation has begun for civilians 0:13:44.920 --> 0:13:48.080 hold up at a steel plan in the Ukrainian city 0:13:48.120 --> 0:13:51.240 of mary Upol after nearly two months under siege by 0:13:51.320 --> 0:13:55.480 Russian forces. Local officials at people sheltering elsewhere in the 0:13:55.520 --> 0:13:58.960 city would also be allowed out. Today. In a surprise 0:13:59.080 --> 0:14:03.480 visit to Ukraine, speaker Nancy Pelosi promised continuing support. Today, 0:14:03.559 --> 0:14:07.120 Pelosi met with Poland's president. In the NBA playoffs, the 0:14:07.160 --> 0:14:09.480 Celtics lost to the box wh one eighty nine, and 0:14:09.520 --> 0:14:12.360 the opening game of their series, the Warriors beat the 0:14:12.360 --> 0:14:16.920 Grizzlies one seventeen, one sixteen in their Game one. In baseball, 0:14:16.920 --> 0:14:20.080 the Yankees and Mets one, the Orioles beat the Red 0:14:20.120 --> 0:14:23.440 Sox nine five, The Nationals beat the Giants eleven five, 0:14:23.560 --> 0:14:26.840 The A's Lost Global news twenty four hours a day 0:14:26.880 --> 0:14:29.920 on air end on Bloomberg Quick Take, powered by more 0:14:29.960 --> 0:14:33.280 than hundred journalists and analysts in more than a hundred 0:14:33.280 --> 0:14:36.400 twenty countries. I'm Michael Barr. This is Bloomberg Nathan Alright, Michael. 0:14:36.440 --> 0:14:38.880 Thanks at six nineteen on Wall Street Live from the 0:14:38.880 --> 0:14:42.920 Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak as we 0:14:42.960 --> 0:14:45.720 get ready to kick off the trading month of May. 0:14:45.800 --> 0:14:48.880 We are joined now by Bloomberg TV anchor and markets 0:14:48.920 --> 0:14:52.760 correspondent Danny Burger. Danny, good to have you with us 0:14:52.840 --> 0:14:55.040 this morning, and I'm sure a lot of investors are 0:14:55.360 --> 0:14:57.520 feeling at least a little bit good they can finally 0:14:57.600 --> 0:15:00.400 close the books on one of the cruelest A brawls 0:15:00.480 --> 0:15:04.240 the markets seen in its history. Really yeah, I mean 0:15:04.320 --> 0:15:06.040 closed the books on it. But I guess the big 0:15:06.160 --> 0:15:08.320 question is is there more to come? I mean, it 0:15:08.440 --> 0:15:11.600 was a really painful month from the staff of their 0:15:11.640 --> 0:15:14.520 worst month for the NASDAC since two thousand eight. Even 0:15:14.920 --> 0:15:17.480 even just Friday added insult to injury. It was the 0:15:17.520 --> 0:15:21.640 worst single day dropped for the S and P since. So, yes, 0:15:21.760 --> 0:15:23.760 there has been a lot of pain in this market, 0:15:23.760 --> 0:15:26.000 but the forces that caused it be at the FED, 0:15:26.080 --> 0:15:30.640 war in Ukraine, issues with China's economy, those are going away, 0:15:30.840 --> 0:15:34.920 right and we're still seeing a VIX that's above thirty 0:15:35.040 --> 0:15:38.680 right at thirty three right now, pointing to potentially more 0:15:38.800 --> 0:15:42.360 volatility and more selling going on still in the European 0:15:42.440 --> 0:15:46.240 market exactly. Yeah, Europe looking pretty ugly today as well. 0:15:46.280 --> 0:15:49.000 I think the volatility story is an interesting one because 0:15:49.400 --> 0:15:52.080 it's not just bond market volatiky anymore. There was a 0:15:52.240 --> 0:15:54.600 long period of time this year where we said, Okay, 0:15:54.600 --> 0:15:57.640 the Fed is getting aggressive, they're going to raise interest rates, 0:15:57.640 --> 0:16:01.560 and it was really concentrated in bond equity is FX. Yes, 0:16:01.600 --> 0:16:04.320 they were having spasms, but compared to the bond market, 0:16:04.320 --> 0:16:06.800 they were pretty immune. Now you look at what's happened 0:16:06.800 --> 0:16:10.040 in April, stocks have started to act up, and crucially, 0:16:10.480 --> 0:16:13.200 the fex complex has started to act up, the dollar 0:16:13.320 --> 0:16:17.080 strengthening dramatically, it's best months in ten years, with the 0:16:17.200 --> 0:16:20.120 yen in the euro getting pummeled as well. When you 0:16:20.120 --> 0:16:22.520 look at these big cross asset moves, that's when you 0:16:22.520 --> 0:16:24.880 start to ask, is this the kind of thing that 0:16:24.960 --> 0:16:28.920 breaks something doesn't lead again? This question is more turmoil, 0:16:29.400 --> 0:16:33.480 right and when we think about the FED beginning it's 0:16:33.560 --> 0:16:37.680 decision making process on Wednesday, with that first decision where 0:16:37.720 --> 0:16:40.360 they're all but spelling out that there's going to be 0:16:40.440 --> 0:16:43.560 a fifty basis point move, I guess the question for 0:16:43.600 --> 0:16:48.160 investors is is there further to fall as the punch 0:16:48.240 --> 0:16:51.960 bowl gets removed even more? I mean, investors at the 0:16:52.000 --> 0:16:55.320 moment are pricing about a two and a half percent 0:16:55.760 --> 0:16:57.760 on FED rates by the end of the year, So 0:16:57.840 --> 0:17:01.040 that does imply that things are is going to continue 0:17:01.080 --> 0:17:04.840 to be aggressive from here. It is interesting though, because 0:17:04.880 --> 0:17:07.240 of the stock market sell off we've seen because of 0:17:07.240 --> 0:17:10.240 the dollar strength, financial conditions are very tight at the 0:17:10.280 --> 0:17:13.200 moment um save for the pandemic. They are the Titus 0:17:13.800 --> 0:17:16.840 eighteen when the said before had to pause its tightening 0:17:16.880 --> 0:17:19.239 path because of what happened to markets because of that 0:17:19.280 --> 0:17:21.639 said put so, the markets have I've already done some 0:17:21.680 --> 0:17:23.439 of the work from the said I will be interested 0:17:23.480 --> 0:17:26.040 to see if that continues. If the said doesn't have 0:17:26.160 --> 0:17:29.440 to hike as much as being implied right now um 0:17:29.640 --> 0:17:31.800 or you know, perhaps they'll ignore it. And just say, hey, 0:17:31.840 --> 0:17:34.000 we got a tame inflation. It's enemy number one. The 0:17:34.040 --> 0:17:37.960 put does not exist. If we do see a more 0:17:38.000 --> 0:17:41.879 aggressive FED, or even before those moves begin to take place, 0:17:41.920 --> 0:17:44.480 at least in the short term, does the focus turn 0:17:44.800 --> 0:17:49.840 more to fundamentals the earnings picture for these companies. Well, look, 0:17:50.160 --> 0:17:52.639 it's often said it's it's a stock pickers market, and 0:17:52.640 --> 0:17:55.280 it's usually not true. You usually can't just buy the 0:17:55.359 --> 0:17:58.800 index and be okay um. But in this type of environment, 0:17:58.840 --> 0:18:02.359 we have seen a lot of hedge funds able to outperform, 0:18:02.400 --> 0:18:04.400 a lot of stock pickers that perform. That doesn't mean 0:18:04.480 --> 0:18:07.399 it's easy, but it does mean that when there is 0:18:07.440 --> 0:18:09.960 this intense selling, often the baby gets down out with 0:18:10.000 --> 0:18:14.000 the bathwater, and opportunities do emerge. Opportunity to do that 0:18:14.080 --> 0:18:18.160 really fundamental analysis work becomes important. Of course, it doesn't 0:18:18.160 --> 0:18:20.760 always pay off. You see companies that report pretty solid 0:18:20.760 --> 0:18:23.920 earnings and still get beat up. Investors are are are 0:18:23.920 --> 0:18:26.359 putting a lot of scrutiny on this earning season. But 0:18:26.480 --> 0:18:29.719 it is a moment where there are divergences between stocks 0:18:29.720 --> 0:18:33.280 and opportunities, and our last thirty seconds are so here. 0:18:33.359 --> 0:18:36.800 Danny from the market participants that you're speaking to. Where 0:18:36.920 --> 0:18:42.000 is their sentiment lying in terms of sector moves? Is 0:18:42.280 --> 0:18:45.800 there still some hope for tech or are we moving 0:18:45.840 --> 0:18:48.240 into more defensive Oh, I might have bad news for 0:18:48.280 --> 0:18:50.800 you there. I've heard a lot of barishness about tech, 0:18:50.840 --> 0:18:52.640 and you can just look at what's happened to Amazon 0:18:52.800 --> 0:18:56.800 getting absolutely whacked last week. One sector really popular seems 0:18:56.880 --> 0:19:00.159 right now is commodities. Go for it for your inflationary edge. 0:19:00.160 --> 0:19:02.440 About if all else is failing, you know, at least 0:19:02.480 --> 0:19:04.919 some of these supply chain issues, some of the you know, 0:19:05.040 --> 0:19:09.879 unfortunate geopolitical events do lead to a higher commodities complex. Alright, 0:19:09.920 --> 0:19:11.840 great to have you on with us, Dandy, Thanks for this. 0:19:11.920 --> 0:19:17.720 Danny Berger, Bloomberg Television anchor Markets corresponded for Bloomberg News 0:19:17.760 --> 0:19:21.480 with Us this morning. As we get set for May, 0:19:21.680 --> 0:19:26.240 the trading month after a very tough April for stocks, 0:19:26.440 --> 0:19:30.280 looking ahead to this morning's market open, maybe some evidence 0:19:30.320 --> 0:19:33.359 of dip buying, with SMP futures up nineteen points, Staff 0:19:33.400 --> 0:19:36.520 futures up a hundred sixty three, Nasdaq futures higher by 0:19:36.680 --> 0:19:40.520 seventy points. Sell off continues in Europe, with the docks 0:19:40.640 --> 0:19:43.520 down six tenths percent. The cat in Paris lower by 0:19:43.560 --> 0:19:46.919 one point three percent. The footstee in London has a 0:19:46.920 --> 0:19:51.160 bank holiday off ten. Your treasury is up three thirty seconds, 0:19:51.160 --> 0:19:55.320 the yield two point nine two percent. Just ahead Warren 0:19:55.400 --> 0:19:59.920 Buffett's buying spree, and Nancy Pelosi goes to Kiev. Five 0:20:00.080 --> 0:20:02.280 things you need to notice start your day. Coming up 0:20:02.560 --> 0:20:08.720 on Bloomberg day Break Bloomberg eleven three oh weather. The 0:20:08.760 --> 0:20:10.960 rain's gonna end early. It'll turn cloudy today with a 0:20:11.000 --> 0:20:15.000 high in near sixty, clouds mid sixties Tomorrow. Showers return 0:20:15.119 --> 0:20:18.240 Wednesday with a high near sixty. Right now fifty three 0:20:18.240 --> 0:20:24.879 degrees in Central Park. Broadcasting live from the Bloomberg Interactive 0:20:24.880 --> 0:20:28.760 Broker Studio in New York, Bloomberg Living Free to Washington, 0:20:28.840 --> 0:20:32.920 d C. Bloomberg to Boston, Bloomberg one oh six one 0:20:33.040 --> 0:20:36.520 to San Francisco, Bloomberg N sixty to the Country, Sirius 0:20:36.640 --> 0:20:39.080 XM to the one nine team, and around the globe 0:20:39.160 --> 0:20:42.760 the Bloomberg Business apt and Bloomberg Radio dot Com. This 0:20:43.080 --> 0:20:51.680 is Bloomberg Daybreak six thirty on Wall Street. Good morning, 0:20:51.680 --> 0:20:54.720 I'm Nathan Hager and I'm Ferard Moscow. We're just about 0:20:54.720 --> 0:20:57.080 three hours away from the open of US trading. Time 0:20:57.119 --> 0:20:58.800 for the five things you need to know to start 0:20:58.880 --> 0:21:01.560 your day. Broncho you ba I, interact your broker, Simple 0:21:01.600 --> 0:21:05.240 ibk our Global Trader app depositing your local currency and 0:21:05.280 --> 0:21:07.960 trade stocks in the US, Europe and Asia. Start your 0:21:07.960 --> 0:21:12.159 free trio at ibkr dot com, Slash Global Trader. First 0:21:12.200 --> 0:21:16.040 Traders enter May after a historically poor April. The NASDAC 0:21:16.080 --> 0:21:18.879 had its worst month since October two thousand eight, and 0:21:18.920 --> 0:21:22.439 the SNP had its worst April since nineteen seventy. When 0:21:22.520 --> 0:21:24.560 it comes Karen Is, the Fed is expected to raise 0:21:24.640 --> 0:21:27.200 interest rates at this week's fo MC meetings. Miller t 0:21:27.320 --> 0:21:30.679 Back chief market strategist Matt Mayley says if inflation persists, 0:21:30.720 --> 0:21:33.960 the Fed's path forward becomes murkier. That's the fear that 0:21:34.000 --> 0:21:35.800 the Fed is going to have no choice but to 0:21:35.880 --> 0:21:38.560 tighten further and and calling, you know, because of the 0:21:38.600 --> 0:21:41.359 fear s translation, and that's going to cause the market 0:21:41.400 --> 0:21:44.160 to fall further than it has. Matt Maylee, chief market 0:21:44.200 --> 0:21:47.320 strategist of Miller Tabac, says traders should take advantage of 0:21:47.320 --> 0:21:49.760 the recent sell off on the bond market is also 0:21:49.840 --> 0:21:52.800 facing around Nathan and Bloomberg's John Tucker tells US that's 0:21:52.800 --> 0:21:56.440 being fueled by Japanese investors. John good Morning, Good morning, Karen. 0:21:56.520 --> 0:22:00.560 Japanese institutional managers, known for their legend or a US 0:22:00.640 --> 0:22:04.000 debt buying sprees in recent decades, now fueling the Great 0:22:04.040 --> 0:22:07.639 bond sell off. The largest overseas holder of US treasuries 0:22:07.800 --> 0:22:11.480 has offloaded almost sixty billion dollars over the past three months. 0:22:11.880 --> 0:22:15.320 Currency hedging costs of off set the appeal of higher 0:22:15.400 --> 0:22:18.680 US yields of Japanese investors may not return it to 0:22:18.800 --> 0:22:22.280 the benchmark ten year yield trades firmly above three percent. 0:22:22.760 --> 0:22:25.880 Live in New York. I'm John Tucker, Bloomberg Daybreak, All right, John, 0:22:25.920 --> 0:22:28.840