Speaker 1: By from the Bloomberg Interactive Brooker Studios. This is Bloomberg
Speaker 1: day Break for Monday May two. Coming up this hour,
Speaker 1: stock futures rise. Following the longest losing streak for the
Speaker 1: SMP five hundred in decades, President Biden said the US
Speaker 1: would intervene to defend Taiwan from China or baby formula
Speaker 1: arrives in the US, and Broadcom isn't talk to buy
Speaker 1: a top cloud computing company. New York City police continued
Speaker 1: to search for the gunman in a deadly random subway shooting.
Speaker 1: Plus Ukraine says up to one hundred of their soldiers
Speaker 1: die every day. I'm Michael blarn More ahead, I'm Scotts Edinburgh,
Speaker 1: Yankee swept in a doubleheader, the Mets pickup win, and
Speaker 1: the Rangers defend the hallmarks of that More coming up
Speaker 1: in sports. That's all Trading ahead on Bloomberg Daybreak on
Speaker 1: Bloomberg eleven three on New York, Bloomberg one, Washington d C,
Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixties and
Speaker 1: Francisco Sirius x M one nineteen and around the world
Speaker 1: Old on Bloomberg Radio dot Com and via the Bloomberg
Speaker 1: Business App. Good morning. I'm John Tucker and I'm Karen
Speaker 1: Moscow US dock indext futures on the rise this morning.
Speaker 1: We're coming up to six o one on Moll Street,
Speaker 1: and we checked the markets every fifteen minutes throughout the
Speaker 1: trading day. On Bloomberg. SNP future is up twenty three
Speaker 1: points and down futures of a hundred seventy nasday futures
Speaker 1: of fifty three The decks in Germany's up half percent,
Speaker 1: ten year treasury down eleven thirty seconds held two point
Speaker 1: two percent, and they yield on the two year two
Speaker 1: point six zero percent, and NIMEX screwed oil is at
Speaker 1: one point two percent. John and Karen. The rise in
Speaker 1: futures comes after the S and P five hunder touch
Speaker 1: bear market territory on Friday and closed lower for a
Speaker 1: seventh straight week. According to Basbook Investment Group, it's just
Speaker 1: the SNPs fourth Street of seven or more weekly losses
Speaker 1: in the post World War two era. Alan Zaffron is
Speaker 1: founding partner and co CEO at I e Q Capital.
Speaker 1: Benthan is terrible enough, so we're we're ready for a
Speaker 1: bear market rally, but it's still probably a bear market
Speaker 1: rally until such time as there's evidence the economy is
Speaker 1: very close to a bottom. Alexanfred of i e Q
Speaker 1: Capital is not alone in thinking stocks will head lower.
Speaker 1: According to the latest Bloomberg end my pulse Pole participantsy
Speaker 1: the S and P five hunder falling another ten percent. Well. John.
Speaker 1: While many traders see the U S economy headed for
Speaker 1: a recession, the President of the United States isn't so sure.
Speaker 1: He answered the question at a press conference in Tokyo overnight.
Speaker 1: In your view, he's a recession in the United States inevitable? No,
Speaker 1: why not? Our GDPs are going to grow faster than
Speaker 1: China's for the first time in forty years. How does
Speaker 1: that mean we don't have problems? We do. We have
Speaker 1: problems with the rest of the world has, but less
Speaker 1: consequential than the rest of the world has been because
Speaker 1: of our internal growth from STrenD and at the same
Speaker 1: press briefing in Tokyo, President Biden made headlines who announced
Speaker 1: if the U S would defend Taiwan for much China attack,
Speaker 1: are you willing to get involved militarily to defend Taiwan
Speaker 1: if it comes to that, you are made? President Biden
Speaker 1: also announced that a dozen Indo Pacific countries will join
Speaker 1: the US and a sweeping economic initiative designed to counter
Speaker 1: China's influence in the region. And earlier in his trip,
Speaker 1: during the stop at South Korea on Sunday, the President
Speaker 1: also address the growing concern over monkey pox cases around
Speaker 1: the world. Concern in the sense that I were to
Speaker 1: spread this conquen That's all they told me. President says
Speaker 1: they're speaking to advisors about monkey pots. The President's National
Speaker 1: Security advisor, Jake Sullivan, says the US has a relevant
Speaker 1: vaccine reader to be deployed to treat the disease if needed. Well.
Speaker 1: The US monitors the monkey pok situation. John it is
Speaker 1: getting some relief this morning on the battle against the
Speaker 1: baby formula shortage. We get the latest life from Bloomberg's
Speaker 1: Renida Young. Good morning, Nida, Good morning Caaron a play.
Speaker 1: A load of more than seventy thousand pounds of baby
Speaker 1: formula arrived in the US on Sunday. It's called Operations
Speaker 1: Fly Formula, an emergency program to alleviate the national shortage
Speaker 1: that's left some parents scrambling to feed their children. President
Speaker 1: Biden's top economic advisors says more formula will start arriving
Speaker 1: in stores as early as this week, and last week
Speaker 1: the President invoked emergency powers under the Defense Production Act
Speaker 1: to spur domestic manufacturing of baby formula. Live in New York,
Speaker 1: I'm Reneda Young Bloomberg Day bring reneed to thanks. After
Speaker 1: a two year hiatus because of the pandemic, The annual
Speaker 1: World Economic Forum in Davos, Switzerland is back, but without
Speaker 1: the hype of years past. Our Tom Keene is covering
Speaker 1: the event for both Bloomberg Radio and television. This will
Speaker 1: be a different Davos, There's no question about it. I
Speaker 1: think the major thing is the change of calendar, not
Speaker 1: January but May and much more. It will be compressed
Speaker 1: pretty much from four days down to three days. Revel
Speaker 1: schedules seem to be so tight for so many people attending.
Speaker 1: The war is absolutely front and center, There's no question
Speaker 1: about that. There will be some other themes, some ideas
Speaker 1: of risks as well, but the overarching theme besides the
Speaker 1: wars my colleague Paul Sweeney mentioned is the idea here
Speaker 1: of what do we do about inflation? And that will
Speaker 1: transcend the dialogue all the way all the way through
Speaker 1: this UH three days in Davos. Thanks Tom. Bloomberg's Tom
Speaker 1: came reporting from Davos beginning this morning along with Lisa Brambo.
Speaker 1: It's on Bloomberg Surveillance and say two for that that's
Speaker 1: going to get at seven am Wall Street time. Christine
Speaker 1: Leguard is one official who will be and Davos this week, John,
Speaker 1: But ahead of her appearance, the European Central Bank president
Speaker 1: is making some critical comments about cryptocurrencies because more from
Speaker 1: Bloomberg's Maria TODAYO in Brussels, she gave an interview to
Speaker 1: a Dutch television She said that this thing is trash,
Speaker 1: it carries no value, and it's an investment vehicle for
Speaker 1: some to get very rich, but for other naive people
Speaker 1: to lose potentially a lot of money. But of course
Speaker 1: you know this is a central banker. Bitcoin, crypto everything
Speaker 1: around and we know essentially tries to defy central bankers.
Speaker 1: So of course what the central banker was ahead of
Speaker 1: these piquant to say that it's trash and she doesn't
Speaker 1: believe in it. And Bloomberg's Maria Today Osa and so
Speaker 1: far Leguard's comments are not impacting cryptos and checking Bitcoin
Speaker 1: right now, it is higher up one percent at thirty thousand,
Speaker 1: four thirty dollars, and we're seeing shares a vm Ware
Speaker 1: up in early trading the cloud computing company and talks
Speaker 1: to be bought by Broadcom. Details on that from Bloomberg's
Speaker 1: Doug Krisner. Vm Ware, based in Palo Alto, makes virtualization software.
Speaker 1: It allows a small number of servers to do more
Speaker 1: by enabling each to handle more than one program. Broadcom
Speaker 1: is a Singapore based giant in the semiconductor industry. A
Speaker 1: deal would help it diversified beyond computer chips. Vm Ware
Speaker 1: has a market cap of around forty billion dollars so
Speaker 1: far this year. It shares her down in New York.
Speaker 1: I'd prisoner Bloomberg Daybreak and Bloomberg Daybreak being drunt you
Speaker 1: by B and wide Melon's pershing Inside Conference back in
Speaker 1: person June fifteenth through the seventeen at the Gaylord Resort
Speaker 1: in Grapely in Texas. Don't miss it. Register now at
Speaker 1: Inside dot b and y Melon dot com. This is
Speaker 1: Bloomberg as Sex seven on Wall Street time to bring
Speaker 1: in Michael Barr to find out what else is going
Speaker 1: on in New York end around the world. John, Thank
Speaker 1: you very much, An unidentified gunman as shouting killed another
Speaker 1: passenger on a moving New York City subway train. Police
Speaker 1: officials say it appears to have been an unprovoked attack,
Speaker 1: and the victim, a forty eight year old man, died
Speaker 1: at a hospital in YPD Chief of Department Kenneth Corey.
Speaker 1: At this time, there are no arrests. The suspect is
Speaker 1: described as a dark skinned male who is heavy set
Speaker 1: with a beard. Police say the shooting took place yesterday
Speaker 1: on a Q train traveling over the Manhattan Bridge at
Speaker 1: around eleven forty a m. That's the time of day
Speaker 1: when subway cars are often filled with families, tourists and
Speaker 1: people had it to brunch. Meanwhile, the victim was a
Speaker 1: member of Solomon Solomon the Sacks, and we understand that
Speaker 1: the chairman of the company said that it was a
Speaker 1: disaster what happened, and he was beloved the victim. Japanese
Speaker 1: Prime Minister Fumio Kashita told President Joe Biden that Russia's
Speaker 1: aggression cannot be tolerated. The two leaders met in Tokyo
Speaker 1: to discuss regional security and economic cooperation. Speaking through a translator,
Speaker 1: Prime Minister Kashita Prime Minister Kashida's comments come as the
Speaker 1: United Nations agencies said the war in Ukraine as display
Speaker 1: it's more than a hundred million people from their homes.
Speaker 1: Ukraine's president says up to a hundred of its soldiers
Speaker 1: die every day in battle. Republican Congresswoman Liz Cheney of
Speaker 1: Wyoming was one of five individuals last night to receive
Speaker 1: the two John F. Kennedy Profile and Courage Award. In
Speaker 1: their livestream of acceptance speech, Cheney, who serves on the
Speaker 1: Special Committee investigating the January sixth Capital Ryot, spoke about
Speaker 1: the continuous threat to democracy. We face a threat we
Speaker 1: have never faced before, a former president attempting to unravel
Speaker 1: our constitutional republic. The award was also handed to Ukrainian
Speaker 1: President of Volodimir's Lensky and three US officials defending the
Speaker 1: integrity of the twenty presidential election. Global News twenty more
Speaker 1: hours a day on air and on Bloomberg Quick Take,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: more than a hundred twenty countries. I'm Michael Barr, and
Speaker 1: this is Bloomberg John Michael, thank you. He s sixtent
Speaker 1: on the Roll Street Time with the Bloomberg Sports Update.
Speaker 1: Here's Scott Sidenberg. Good morning, John egor Shist. Durkin made
Speaker 1: forty three saves me because I Ben and Ja had
Speaker 1: a goal and an assist as the Rangers beat the
Speaker 1: Hurricanes three one at the Garden yesterday. Chris Critter and
Speaker 1: Tyler Mott also scored as the Blue Shirts the fand
Speaker 1: home ice now trail two games to one. Here's head
Speaker 1: coach Gerard Glent a power play goal. That's how you
Speaker 1: went hockey game, the tight game. So it was a
Speaker 1: battle type battle again tonight. They obviously ego ego with
Speaker 1: an outstanding fust and that was the key. It was
Speaker 1: just the second win for the Blue Shirts over Carolina
Speaker 1: in their last ten meetings. Game fourth the Garden Tomorrow
Speaker 1: night baseball, the Yankees dropped both games of a double
Speaker 1: header to the White Sox three one in Game one
Speaker 1: and a five nothing shutout loss in game two. The
Speaker 1: Mets meanwhile blank the Rockies to nothing. Taywan Walker through
Speaker 1: seven scoreless innings. NBA Playoffs, the Warriors taken commanding three
Speaker 1: oh series lead over the Mavericks with a one on
Speaker 1: nine one win. Golf was an exciting finish at the
Speaker 1: PG eight Championship up yesterday, and Justin Thomas is walking
Speaker 1: around for the quick tap and he's got it. A
Speaker 1: two time major winner of the PGA Championship, Justin Thomas
Speaker 1: is your hundred port p G A champion here at
Speaker 1: Southern Hills and Culf, Oklahoma. The call is heard right
Speaker 1: here on Bloomberg Radio. Justin Thomas winning his second one
Speaker 1: or Maker Trophy, outlasting Wills Allatorus in a three whole playoff.
Speaker 1: I'm Scots murdered with Bloomberg Sports. All right, Scott, thanks
Speaker 1: very much, and hand they can show about Wall Street
Speaker 1: futures in the green right now, the down features they
Speaker 1: are up two hundred six points, that's up seven tenths
Speaker 1: of a percent. SMP even in futures twenty seven points higher,
Speaker 1: up seven tenths of a percent. After the Broader Index
Speaker 1: de skirted the definition of a bearer market on Friday,
Speaker 1: NASDAC features sixties six points higher, that is up six
Speaker 1: tenths of a percent. Right now, Dan, your treasury to
Speaker 1: two of the yield up three basis points. You're listening
Speaker 1: to Bloomberg tapering still ahead of Bloomberg. What is next
Speaker 1: for the markets? Well, I ask Patrick Armstrong, he's the
Speaker 1: chief investment officer of luring me, well, does he see
Speaker 1: signs of a bottoming? This is Bloomberg Markets, headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com,
Speaker 1: the Bloomberg Business Outland at Bloomberg Quick Tape. This is
Speaker 1: a Bloomberg business lash, and I'm parent Moscow's donks in
Speaker 1: the UN advancing after President Joe Biden said Schina tariffs
Speaker 1: imposed by the Trump administration we're under consideration. The dollar
Speaker 1: and treasuries are retreating, and we checked the markets every
Speaker 1: fifteen minutes throughout the trading day on Bloomberg, U s
Speaker 1: and P futures up twenty seven points this morning, Dow
Speaker 1: futures up two eleven and NAZDAC future is up sixty four.
Speaker 1: The decks in Germany's up six to puns of uppercent ten.
Speaker 1: Your treasury down ten thirty seconds, yield two point eight
Speaker 1: one percent. That yield on a two year two point
Speaker 1: six zero percent. Nin mex scrude oil is up one
Speaker 1: point one percent of a dollar twenty three and a
Speaker 1: hundred eleven dollars fifty one cents of barrel Comics gold
Speaker 1: up one point one percent or twenty dollars at eighteen
Speaker 1: sixty eight forty announce, the Euro one point oh six
Speaker 1: seven three against the dollar, British pound one point to
Speaker 1: five seven five, the yen is at one twenty seven
Speaker 1: point four three, and Bitcoin this morning of almost two
Speaker 1: percent at thirty thousand, five hundred dollars. That's a Bloomberg
Speaker 1: business flash. Now here's Michael Barr with more on what's
Speaker 1: going on around the world. Muchaele Karen, thank you very much.
Speaker 1: President Joe Biden says the US would intervene militarily of
Speaker 1: China where to invade Taiwan. Speaking in Tokyo, President Biden
Speaker 1: says such a move would dislocate the entire region. White
Speaker 1: House officials later said that Biden simply meant the US
Speaker 1: would provide military equipment to Taiwan, not send troops to
Speaker 1: defend the island of China attacks. CE seventeen mill terry
Speaker 1: cargo playing carrying about seventy eight thousand pounds of specialized
Speaker 1: baby formula from overseas, landed in Indiana yesterday to help
Speaker 1: ease the shortage In the NHL playoffs. The Rangers beat
Speaker 1: the Hurricanes three one. Carolina still leads the series two
Speaker 1: games to one. In the NBA Playoffs, the Warriors beat
Speaker 1: the Mavericks to lead the Western Conference Finals three games
Speaker 1: to zip. In baseball, the Yankees lost the double header
Speaker 1: to the White Sox, the Mets, Red Sox Orioles Nationals
Speaker 1: won the Giants, and A's lost. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quick Tank,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: more than a hundred twenty countries. Michael Barr, this is Bloomberg, John, Michael,
Speaker 1: thank you. He is coming up on six twenty on
Speaker 1: Wall Street. We are lying for the Bloomberg Interactive Broker Studios.
Speaker 1: This is Bloomberg day Break O. US equity futures is
Speaker 1: Karen mentioned are higher this morning after the SMP five
Speaker 1: how to drop for a seventh straight week. So what's
Speaker 1: the next for investors joining US now? Patrick Armstrong, investment
Speaker 1: officer at Plurimi Wealth. Patrick, do you see signs of
Speaker 1: bottoming in the markets? I think you can make a
Speaker 1: case that markets will be bottoming around this level, assuming
Speaker 1: the United States doesn't fall into a recession. So surprisingly,
Speaker 1: when we entered two thousand twenty two UM, unless we're
Speaker 1: expecting two hundred and twenty earnings per share for the
Speaker 1: SMP fived. Those earnings estimates have actually been increased this
Speaker 1: year to two d and twenty seven is what analysts
Speaker 1: they're expecting right now. So the whole sell offs being
Speaker 1: driven by multiple contraction, which makes perfect sense given that
Speaker 1: liquidity is getting withdrawn from the system. Ten year yields
Speaker 1: have shot up UM close to three percent. I think
Speaker 1: they're going to continue to move higher. But as long
Speaker 1: as you don't see a real earnings recession, and I
Speaker 1: don't think that happens unless you have an economic recession.
Speaker 1: It will come down to what Powell wants to do.
Speaker 1: He's got fifty basis points hiking in June and July.
Speaker 1: If he assesses the lay of the land and starts
Speaker 1: to ease and accepts higher inflation rather than provoking a recession,
Speaker 1: I could see around these levels being a bottom for
Speaker 1: the SMP. With the PE multiple of somewhere around nineteen
Speaker 1: for the SMP five hundred, is that worth investing? Is
Speaker 1: it a cheap at this point? Well, I wouldn't call
Speaker 1: it cheap, so on a forward basis, it's seventeen pe
Speaker 1: on a trailing basis nineteen and a half UM. Those
Speaker 1: are pretty normal PE s, so they're not elevated anymore,
Speaker 1: but they're they're not cheap. I wouldn't call it cheap.
Speaker 1: On a price to sales basis. The SMP five hundreds
Speaker 1: at two point four times, and that's still very elevated.
Speaker 1: A typical price to sales multiple is one point six times.
Speaker 1: So UM on an earnings basis you could say fair valued.
Speaker 1: On a price to sales basis, you can still say
Speaker 1: thirty overvalued. It'll come down to what profit margin UM
Speaker 1: companies are able to generate. So if we do go
Speaker 1: into an environment where basically companies have their margins squeezed,
Speaker 1: which is totally plausible when you look at producer prices
Speaker 1: running much higher UM inflationary backdrop than can tumor prices
Speaker 1: are that basically implies that companies will be getting squeezed,
Speaker 1: you should see a lower price to margin and probably
Speaker 1: significantly lower price to sales. Are growth stocks off the
Speaker 1: table for you? I don't like the most extreme growth
Speaker 1: stocks UM, the stocks that don't have earnings yet and
Speaker 1: have business models where they're hoping to get earnings over
Speaker 1: the next decade. This isn't the environment you want to
Speaker 1: be chasing those kind of disruptors and hoping uh that
Speaker 1: eventually they'll grow their way into the multiples they trade at.
Speaker 1: That makes a lot of sense when liquidity is abundant,
Speaker 1: when interest rates are zero, and we're in an environment
Speaker 1: where quantitative tightening is beginning next month. We think ten
Speaker 1: your yields are moving well above three percent for the
Speaker 1: remainder of this year. So I prefer value stocks that
Speaker 1: are producing cash flow today, and the companies that don't
Speaker 1: have earnings, I think the market is going to continue
Speaker 1: to punish them. Does it feel like we've done a
Speaker 1: round trip? We're back to levels that we saw before
Speaker 1: the start of the pandemic. UM well on some of
Speaker 1: the most growth stocks. Yeah, they fall in You're back
Speaker 1: to levels you were um during the pandemic. I actually
Speaker 1: think they have further to fall because there's still billions
Speaker 1: in market cap that just don't even have a path
Speaker 1: to profitability. In my opinion, so UM a lot of
Speaker 1: the new I p o s, even having their perspectives,
Speaker 1: we don't have a path to profitability. But when interest
Speaker 1: rates for zero, investors still flopped into them. So I
Speaker 1: think it's an environment very similar to Q four two
Speaker 1: thousand and one, where the growth stocks still sold off,
Speaker 1: but the companies that were producing cash flow the market
Speaker 1: started to rotate into them. And I do think there's
Speaker 1: a lot of good companies out there right now that
Speaker 1: are trading at ten to even eight times earnings. We
Speaker 1: bought Mosaic on Friday, which is owns potash reserves which
Speaker 1: is used in fertilizer. It's trading at eight times earnings.
Speaker 1: And I think you're going to have a very strong
Speaker 1: backdrop with agricultural commodity prices where they are gauge. For me,
Speaker 1: you're the risk of recession at this point. So it's plausible.
Speaker 1: It's not my base case. In the United States, it's
Speaker 1: going to come down to Powell. Um if he blinks
Speaker 1: and he's got to make a policy mistake, He's got
Speaker 1: to decide I'm going to create a recession or I'm
Speaker 1: going to let inflation stay well above my two percent target.
Speaker 1: I actually think he's going to go for the second
Speaker 1: option and probably let inflation stay high. Um as long
Speaker 1: as it is showing signs that it has platoon and
Speaker 1: coming down towards two percent. I don't think he'll need
Speaker 1: to do the final kick to get it down to
Speaker 1: two percent, and that should allow the US to avoid
Speaker 1: a recession, but the consequences will be inflation much higher
Speaker 1: than the target. Patrick A pleasure appreciated. Patrick Armstrong, chief
Speaker 1: Investment Officer at Plurimi Wealth with us this morning at
Speaker 1: ahead of the open hob Wall Street, we have DOWN
Speaker 1: futures of one eighty nine points at sub six tenths
Speaker 1: of a percent, SMB futures twenty four points higher, that's
Speaker 1: of six tenths of a percent. At the NAZENT futures
Speaker 1: of fifty five points, that's up half a percent right now,
Speaker 1: ten year yield at to eight one three basis points higher.
Speaker 1: You're listening, it's a Bloomberg day break and the Bloomberg
Speaker 1: Weather from meteorologist Rob Caroline partly Sunday is gonna be
Speaker 1: cooler today and Lea's s gume with the heights Empert.
Speaker 1: You're topping out at seventy degrees mostly cloudy tonight blows
Speaker 1: fifty five to sixty Broadcasting live from the Bloomberg Interactive
Speaker 1: Broker Studio in New York, Bloomberg E Living Freedom to Washington,
Speaker 1: d C. Bloomberg to Boston, Bloomberg one O six one
Speaker 1: to San Francisco, Bloomberg N sixty to the country, Sirius XM,
Speaker 1: tod A one nine and around the globe the Bloomberg
Speaker 1: Business app and Bloomberg Radio dot com. This is Bloomberg
Speaker 1: Daybreak six thirty on Wall Street. Good morning, I'm John
Speaker 1: Tucker and I'm Karen Moscow. We are just about three
Speaker 1: hours away from the open of US trading time for
Speaker 1: the five phase you need to notice start your day.
Speaker 1: Brought to you by Interactive Brokers. Interactive Brokers charges marchin
Speaker 1: loan rates from one point three to two point three
Speaker 1: three percent, rates subject to change. Learn more at i
Speaker 1: VKR dot com. Slash Compare First futures are up amid
Speaker 1: expectations traders will help lift the S and P five
Speaker 1: hundred after a touched bear market Territory Friday. Despite talks
Speaker 1: of a US recession, Credit Sweet CEO Thomas Gonstein said
Speaker 1: he doesn't see what happening. People are somewhat insecured in
Speaker 1: risk off mode. But our house, he was still, is
Speaker 1: that there won't be a recession neither. It is here
Speaker 1: no next year, there will be slow down. Credit see
Speaker 1: CEO Thomas Gonstein was speaking in Davos with the Bloomberg's
Speaker 1: Francine Laqua. The annual Davos World Economic Forum is back
Speaker 1: this year. Tune into Bloomberg Radio and Television for full
Speaker 1: coverage This week overseas, President Biden indicated China terence imposed
Speaker 1: by the Trump administration or under consideration. He also declared
Speaker 1: the U. S Military would intervene should China attack Taiwan,
Speaker 1: but White House official later a state of the U.
Speaker 1: S would provide military equipment to the island, not sent troops.
Speaker 1: President Biden also announcing that a dozen Into Pacific countries
Speaker 1: will join the US and an economic initiative designed to
Speaker 1: counter China's influence in the region. Well John Before boarding
Speaker 1: Air Force One in South Korea yesterday, the President addressed
Speaker 1: the growing monkey pox outbreak. Well, heaven't told me the
Speaker 1: level of exposure yet, but it is something that everybody
Speaker 1: should be concerned about. We're working on a hard figure
Speaker 1: out what we do. And President Biden says he spoke
Speaker 1: to advisors about the monkey pox vires. Well, the US
Speaker 1: monitors monkey pox. It's getting relief on the battle against
Speaker 1: the baby formula shortage and Bloomberg's We Need a Young
Speaker 1: joins us live with more we need a good morning,
Speaker 1: Good Morning John. A plainload of more than seventy thousand
Speaker 1: pounds of baby formula arrived in the US on Sunday.
Speaker 1: It's called Operation Fly Formula, an emergency program program to
Speaker 1: alleviate a national shortage that's left thumb parents scrambling to
Speaker 1: feed their children. President Biden's top economic advisors says more
Speaker 1: formula will arrive in stores as early as this week.
Speaker 1: Last week, the President invoked emergency powers to spur domestic
Speaker 1: manufacturing of baby formula. Live in New York, I'm reneed
Speaker 1: a young Bloomberg debris right, we need to thank you,
Speaker 1: and turning back to equity, shares a vm Ware are
Speaker 1: up a nine percent in early trading. The cloud computing
Speaker 1: company is in talks to be bought by Broncom. Futures
Speaker 1: are moving higher. Not to find things you need to notice.
Speaker 1: Start your day, Bronty, you by interactive brokers trying to
Speaker 1: hand your latest local headlines and this is Bloomberg. Thanks
Speaker 1: Karen wall Street. Time to bring in Michael Barr to
Speaker 1: tell us what else is going on in New York
Speaker 1: and around the world. John, thank you very much. The
Speaker 1: search is on for a gunman who shot a man
Speaker 1: on a subway train in Manhattan Sunday morning. The suspect fled.
Speaker 1: The forty eight year old victim died later at a hospital.
Speaker 1: In YPD, Chief of Department Kenneth core He says the
Speaker 1: victim was shot in the chest. According to witnesses, the
Speaker 1: suspect was walking back and forth in the same train
Speaker 1: car and without provocation, pulled out a gun and fired
Speaker 1: it at the victim at close range. In my p
Speaker 1: D Chief of Department Kenneth Corey says there was apparently
Speaker 1: no prior contact between the victim and the suspect. Meanwhile,
Speaker 1: the chief executive of Goldman Sachs says the forty eight
Speaker 1: year old man shot and killed was an employee of
Speaker 1: the firm. David Solomon says Daniel Enriquez was a beloved
Speaker 1: member of the company for nine years. Solomon says the
Speaker 1: firm was devastated by this senseless tragedy. In our deepest
Speaker 1: sympathies are with Dan's family. At this difficult time, Russia
Speaker 1: is intensifying its attacks in eastern Ukraine, as President Voladimir
Speaker 1: Zelenski calls for even more powerful weapons. To count of
Speaker 1: the Russian invasion, so Lenski says between fifty two d
Speaker 1: Ukrainian soldiers die every day on the battlefield. Meanwhile, the
Speaker 1: threat of possible new clear attacks continues from President Putin.
Speaker 1: Former Chairman of the Joint Chiefs, Admiral Mike Mullen says, well,
Speaker 1: he doesn't believe Putin will actually use nuclear weapons. It's
Speaker 1: a possible action they have to consider. It's very difficult
Speaker 1: to know what Putin is thinking in any particular time.
Speaker 1: He's obviously spoken to this. I think we need to
Speaker 1: make sure that we consider it. Former Chairman of the
Speaker 1: Joint Chiefs Mullen spoke on a d c S this week,
Speaker 1: which can be heard Sundays on Bloomberg. Basque requirements and
Speaker 1: advisories are back in cities with the rise in COVID
Speaker 1: nineteen cases. Philadelphia is one of them. Starting today face coverings,
Speaker 1: there will be mandatory indoors and on school buses. Today
Speaker 1: was supposed to be the day that the COVID era
Speaker 1: Border Policy Title forty two was set to end, but
Speaker 1: the federal judge in Louisiana blocked the Biden administration from
Speaker 1: ending it. However, that is not stopping a steady stream
Speaker 1: of migrants to arrive trying to get into the US.
Speaker 1: Families with young children arrived over the weekend in Yuma, Arizona.
Speaker 1: Beijing as extended orders for workers and students to stay
Speaker 1: home and ordered additional mass testing as cases of COVID
Speaker 1: nineteen again arise in the City. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quicktake, powered
Speaker 1: by more than twenty seven hundred journalists and analysts more
Speaker 1: than twenty countries. Michael mar this is Bloomberg, John, Michael,
Speaker 1: thank you, and six thirty six on Walls Tree. That
Speaker 1: is tied. But the Bloomberg Sports Update, here's Scott Sidenberg.
Speaker 1: Thanks John. The Rangers desperately needed a win yesterday to
Speaker 1: avoid falling down three games to none against the Hurricanes.
Speaker 1: He Gorcius Darcy was up for the task, stopping forty
Speaker 1: three shots as the Blue Shirts defeated the King's three
Speaker 1: to one game four at the Garden. Tomorrow night, else where,
Speaker 1: the Lightning take a three games to then lead over
Speaker 1: the Panthers with a five one win. Edmonton goes up
Speaker 1: two games to one over the Flames with a four
Speaker 1: one victory Baseball rolled the Shapman surrendered a tie breaking
Speaker 1: home run to A. J. Pollock in the top of
Speaker 1: the ninth inning as the Yankees dropped Game one of
Speaker 1: a double header to the White Sox three to one.
Speaker 1: They would also lose Game two, being shut out five
Speaker 1: nothing despite Louis Sabrina going seven scoreless innings, the Yankees
Speaker 1: losing two straight but just the second time this season
Speaker 1: that Mets meanwhile blank the Rockies to nothing, Taywan Walker
Speaker 1: throwing seven scoreless innings. NBA Playoffs, the Warriors take a
Speaker 1: three oh series lead over the Mavericks with a one
Speaker 1: on nine in Dallas. Game four of the Eastern Conference
Speaker 1: Finals tonight in Boston, Miami leads two games to one. Golf.
Speaker 1: What an exciting finish at the PGA Championship yesterday and
Speaker 1: Justin Thomas is walking around for the quick tap and
Speaker 1: he's got it. A two time major winner at the
Speaker 1: PGA Championship. Justin Thomas, He's your hundred four p G
Speaker 1: A champion. Hear at Southern Hillford called Fall Oklahoma. The
Speaker 1: call has heard right here on Bloomberg Radio. Justin Thomas
Speaker 1: winning his second water Or Maker Trophy outlasting William Salaturus
Speaker 1: in a three whole playoff. I'm Scott Bloomberg Sports. All right, Scott,
Speaker 1: thanks very much. It is now sixty seven on Wall
Speaker 1: Street and it is time down to take a look
Speaker 1: at some of the stocks on the move, some of
Speaker 1: the names that are moving in the pre market. And
Speaker 1: for that we're joined by Bloomberg Radio and TV Markets
Speaker 1: Correspondent Critic Group to let me guess steal news. Steal news?
Speaker 1: What a great guess. Really on top of things here,
Speaker 1: somebody's making money. Someone is. It's not me, But you
Speaker 1: know that's a different conversation. Um, what's interesting here is
Speaker 1: the players. We've talked a lot about this, about the
Speaker 1: extreme amounts of cash that are on a lot of
Speaker 1: balance sheets in corporate America, specifically in the tech sector.
Speaker 1: So why not hop into that m and a boom. Well,
Speaker 1: here's one example that that is. In fact, what's happening
Speaker 1: really deploying some of that cash in this inflationary environment.
Speaker 1: I mean, John, a five year old could tell you
Speaker 1: that if you're if you're not spending five dollars to day,
Speaker 1: it's gonna be worth less tomorrow. It's better to spend
Speaker 1: it today. And it kind of seems like that's the
Speaker 1: tone a lot of these companies are taking. Which brings
Speaker 1: me to the deal of the morning, Broadcoms. It's said
Speaker 1: to be in talks to buy VM. Where this is
Speaker 1: a cloud company backed by the billionaire Michael Dell. Broadcom
Speaker 1: we know it as one of the chip makers in
Speaker 1: the Apple supply chain. Uh this morning, let me walk
Speaker 1: you through the stock price action Broadcom a v g
Speaker 1: O is your ticker down four point three p VM
Speaker 1: where though climbing over in the pre market. And now,
Speaker 1: of course we don't have any confirmation from either parties
Speaker 1: about whether or not this is in fact going through.
Speaker 1: This is according to people familiar with the matter bloomberg Scoop.
Speaker 1: I might add, but this is important as we talk
Speaker 1: about what could be the biggest ever acquisition of a
Speaker 1: technology company. Essentially, this would give Broadcom a unique insight
Speaker 1: into just a very different part of the technology of
Speaker 1: the software space. And we know cloud companies are very
Speaker 1: hot right now, just given a lot of these companies
Speaker 1: haven't switched to cloud infrastructure yet, they've kind of started
Speaker 1: doing that post pandemic and really amping that up in
Speaker 1: this era of needing more cybersecurity and things like that.
Speaker 1: So that's where cloud companies really come in handy. So
Speaker 1: investment bankers can salivate at least at this particular time
Speaker 1: for this particular industry because more is on the way,
Speaker 1: I suspect well potentially, and I mean you do start
Speaker 1: to see a little bit of reaction to some of
Speaker 1: the other cloud companies as well. If you look at Oracle,
Speaker 1: for example, which has a major market share when it
Speaker 1: comes to cloud computing, it is up five tenths of
Speaker 1: one per cent. Splunk is another one that you want
Speaker 1: to keep your eye on. Sp l K is your
Speaker 1: taker and it is up just shrive three percent. So
Speaker 1: once again you are seeing a lot of this deal
Speaker 1: activity throughout the day. Service Now is another one, and
Speaker 1: ow used the taker up one point two percent. And
Speaker 1: lastly I'll leave you with c h KP. That's Checkpoint
Speaker 1: Software Technologies up one so cloud technologies there about this morning,
Speaker 1: I found this stat TAKEO takeovers of tech company is
Speaker 1: a forty six percent this year. That's globally. That's interesting.
Speaker 1: Pretty thank you very much. Bloomberg Radio on TV Markets
Speaker 1: correspondent Pretty Gupta and a head of the Open on
Speaker 1: Wall Street SMP futures right now thirty four points higher.
Speaker 1: You are listening the Bloomberg day Break and the Bloomberg
Speaker 1: Weather from meteorologist Rob Caroline Partley sunny gotta be cooler
Speaker 1: today and lesbian but the heights app that you're topping
Speaker 1: out degrees most Looke comedy Tonight Lows Fife behind the
Speaker 1: sixty markets headlines and breaking news twenty four hours a
Speaker 1: day at Bloomberg dot Com, the Bloomberg Business apt and
Speaker 1: at Bloomberg Quick Tape. He's a Bloomberg Business Flash and
Speaker 1: I'm Karen Moscow. Futures are gaining this morning, we get
Speaker 1: to the first word breaking news dance for today's morning call.
Speaker 1: Here's Bill Maloney LL good morning and good morning, Karen.
Speaker 1: That's right. US teachers are in the green right now
Speaker 1: with DOWN futures up two hundred and sixty points SAPs
Speaker 1: game thirty four one. That's that futures rise by eight
Speaker 1: five the US ten year old that two point two
Speaker 1: percent gold is of fifteen. Oil is also climbing, and
Speaker 1: bitcoin is rising by one point nine percent. Japan gain
Speaker 1: one percent overnight, while up of markets are trading mostly
Speaker 1: higher this morning and back in the US on the
Speaker 1: economic Frontday thirty, Chicago fed in dean news, Brock coms
Speaker 1: and talks to buy vm Ware. Vm Ware shares are
Speaker 1: up twenty one percent pre market, and another news JP
Speaker 1: Morgan boosted its guidance for fiscal year and net interest
Speaker 1: income X markets forecast. Wrapping things up, HP Inc. Was
Speaker 1: cut to neutral. Over at the City Group Live on
Speaker 1: the First Breaking News Desk. I'm Bill Maloney, Karen, all right, Bil,
Speaker 1: thank you to here live breaking economic news. O your
Speaker 1: Bloomberg type squawk on your terminal SCU A w u K.
Speaker 1: That's a Bloomberg business flash. Now here's Michael Barrow with
Speaker 1: more on what's going on around the world. Michael, Karen,
Speaker 1: thank you very much. President Joe Biden said the US
Speaker 1: military would intervene to defend Taiwan in any attack from
Speaker 1: China in Tokyo. Biden said such a move would dislocate
Speaker 1: the entire region and be an action similar to what
Speaker 1: Russia has done in Ukraine. White House officials later said
Speaker 1: that Biden simply meant the US would provide military equipment
Speaker 1: to Taiwan, not send troops to defend the island of
Speaker 1: China attacks. A military plane carrying enough specialty infant formula
Speaker 1: for more than a half a million baby bottles arrived
Speaker 1: yesterday in Indianapolis. It's the first of several flights expected
Speaker 1: from Europe aimed at relieving a formula shortage. In the
Speaker 1: NHL playoff, Rangeers beat the Hurricanes and the NBA Playoffs,
Speaker 1: the Warriors beat the Mavericks in baseball, the Yankees lost
Speaker 1: a double header to the White Sox, the Met's Red Sox,
Speaker 1: Orioles and Nationals won the Giants, and A's lost. Global
Speaker 1: News twenty four hours a day on air and on
Speaker 1: Bloomberg Quicktake, powered by more than twenty seven hundred journalists
Speaker 1: and analysts and more than one hundred twenty countries on
Speaker 1: Michael Ar, this is Bloomberg. John, all right, thank you, Michael,
Speaker 1: and we are live from the Bloomberg Interactive Broker Studios
Speaker 1: where it is now sixty nine on Wall Street Time
Speaker 1: to check what's going on in d C. Set of
Speaker 1: the top stories that are a nation's capital include President
Speaker 1: Biden says the U. S Military, as Michael mentioned, would
Speaker 1: intervene to defend Taiwan in any attack from China, a
Speaker 1: statement condemned by Beijing later walked back by White House
Speaker 1: officials and President Vines saying he'll discuss terrence on Chinese
Speaker 1: imports with the Treasury Secretary upon his return from his
Speaker 1: Asia trip. President Biden seeking to share reassure Americans that
Speaker 1: the current monkey pox outbreak unlikely to cause a pandemic
Speaker 1: on the scale of COVID nineteen, and also a high
Speaker 1: stakes Republican primary in Georgia tomorrow. Let's take a deeper
Speaker 1: dive into some of these stories this morning. We're lucky
Speaker 1: to have unscripted Greg Valier, the chief US policy strategist
Speaker 1: at a G Investments. Hopefully we won't have to worry
Speaker 1: about you speaking off the cuff and angering China, Greg,
Speaker 1: but it gives you an indication of some of the
Speaker 1: things that the President and his advisors are up against
Speaker 1: when you are asked questions complicated, the questions about the
Speaker 1: US policy. Well, this is once again the story of
Speaker 1: Joe Biden going off script. Is his advisors cringe when
Speaker 1: he does it. And here we are again saying something
Speaker 1: that previously, earlier this year, the White House said is
Speaker 1: not accurate, that we have abandoned our strategic ambiguity. But
Speaker 1: here we have Joe Biden. I think disrupting what was
Speaker 1: looking like a pretty good trade meeting, trade trip to Europe,
Speaker 1: good relations with South Korea, and now everything has been
Speaker 1: discombobulated by the comments team made last night. UM and
Speaker 1: Uh it's not the first time that this has happened.
Speaker 1: What kind of message does it send more broadly to uh,
Speaker 1: to his constituents and his opponents. Two things I say.
Speaker 1: Number One, like Donald Trump, he doesn't listen to his advisors.
Speaker 1: I mean, every Democrats seemed to think that Trump was
Speaker 1: oblivious to his advisors. But it's looking like Joe Biden
Speaker 1: is the same. Number Two, he's very stubborn. He's been
Speaker 1: told time and time again not to use this phrase.
Speaker 1: He chose to use it. Either he didn't remember or
Speaker 1: he just is very Again, he's very stubborn. But it's
Speaker 1: not a good signal. Person of Biden says he's going
Speaker 1: to discuss tariffs Chinese imports with that Janet yelling upon
Speaker 1: his return. They're walking back some of the things that
Speaker 1: were that the Trump administration did. Uh. And it seems
Speaker 1: to be good news, at least for the markets, right.
Speaker 1: I think it's a it's a pretty good signal. I
Speaker 1: think that Uh, there are some things to be reasonably
Speaker 1: positive about. The budget deficits coming down, The unemployment rate
Speaker 1: is really low, the economy is not in recession. There
Speaker 1: are still some decent stories out there. But you know,
Speaker 1: barring some sudden reversal, I do think the Republicans will
Speaker 1: gain the House and maybe even gain the Senate. Uh.
Speaker 1: And at this point, well, let's let's talk about the elections. UM.
Speaker 1: Some of the takeaways from the primaries that we just had.
Speaker 1: What was the big message for you? I think the
Speaker 1: big messages it is still all about Trump. And all
Speaker 1: of these races is some he won, some a lot,
Speaker 1: some extremists one, some extremists lost. But in all of
Speaker 1: these elections, Biden's Trump was still a big factor. And
Speaker 1: now we get a really big race tomorrow night in Georgia,
Speaker 1: a race in which I think Donald Trump is going
Speaker 1: to get smoked. I think he's going to lose badly.
Speaker 1: This is Brian Camp the incumbent, and David Purdue. Uh.
Speaker 1: We'll explain for us the differences between the two, but
Speaker 1: they're pretty significant. Yeah, they're both conservative Republicans. But one
Speaker 1: of them, of course, Kemp the governor, didn't support Donald
Speaker 1: Trump's ridiculous claims that he won Georgia. So Trump has
Speaker 1: a vendetta and he wants to see Kemp lose. Unfortunately
Speaker 1: for Trump, Kemp is ahead by points, maybe even more so.
Speaker 1: I think the the Trump favorite, uh fell about the
Speaker 1: name of Perdue, is going to lose badly. This will
Speaker 1: be the first sign that Trump is not infallible, that
Speaker 1: he can lose some of these races where he nominates
Speaker 1: someone he's convinced is going to win. And uh Democrats
Speaker 1: Stacy Abrahams, She's unopposed in the gubernatorial primary on the
Speaker 1: On the Democratic side, there's also the Warnock Senate seat
Speaker 1: that is that how vulnerable is it? And herschel Walker,
Speaker 1: I should mention, is his opponent. Yeah, it's an interesting race,
Speaker 1: but I'm not sure that Walker. Yeah, yeah, I'm not
Speaker 1: sure herschel Walker is going to win. That race is
Speaker 1: going to be close. But I think Walker has some baggage.
Speaker 1: What what is his baggage? I mean, he does have
Speaker 1: a close relationship with Donald Trump, we know that. I'm
Speaker 1: not sure or not. No, I would say there's some
Speaker 1: personal things, some accusations about his personal life, and I
Speaker 1: think that might be a factor as well. I think
Speaker 1: Warnock could be a surprise and could get reelected. Let's
Speaker 1: finish up if I could, Greg, there seems to be
Speaker 1: some glimmer of hope at least between Ukraine and Russia.
Speaker 1: Can you tell us more about that, a glimmer of
Speaker 1: hope to this extent, I think Zelinsky knows there's going
Speaker 1: to have to be negotiations. I mean, the losses have
Speaker 1: been staggering on both sides. Maybe Russian soldiers killed another
Speaker 1: fifty or sixty thousand caps or are wounded. The Ukrainians
Speaker 1: are losing truce several hundred a week. They can't sustain
Speaker 1: this indefinitely. And I do think that Zelinsky hinting over
Speaker 1: the weekend that negotiations are coming is encouraging. You've got
Speaker 1: to get Putin on board, but you like to have
Speaker 1: to concede that Putin has won most of his objectives
Speaker 1: in the East, so he knows he's not going to
Speaker 1: get the key. That's not gonna happen. So I see
Speaker 1: a sign or two that maybe by the middle of
Speaker 1: the summer we could be getting closer to a truce.
Speaker 1: Greg always a pleasure of Greg value, the chief US
Speaker 1: policy strategist at a GF investments. You can read more
Speaker 1: about these stories on Bloomberg dot com or the Bloomberg terminal,
Speaker 1: and you can follow all the latest on Bloomberg Radio
Speaker 1: in Washington Bloomberg and one oh five point seven FM
Speaker 1: HD two Harry Tom thank you. At six fifties six
Speaker 1: on Wall Street, we turned to news and science and
Speaker 1: technology now with the Bloomberg and J. I. T. Stammer Report.
Speaker 1: Run to you buy New Jersey Institute of Technology, one
Speaker 1: of the nation's leading polytechnic universities in a top military
Speaker 1: friendly school. Learn more at n j I T dot
Speaker 1: E d U slash Veterans And now here's what's making
Speaker 1: news and science, technology, engineering and math well. As you've
Speaker 1: been reporting, A planeload of more than seventy thousand pounds
Speaker 1: of baby furmula have arrived in the US an Air
Speaker 1: Force jet fluid from Germany to Indianapolis as the start
Speaker 1: of an emergency program to alleviate a national shortage that
Speaker 1: has left some parents scrounging to feed their children. Global
Speaker 1: power grids are about to face their biggest test in decades,
Speaker 1: war drought, production shortages, historically low inventories, and pandemic backlash.
Speaker 1: Energy markets across the planet have been put through the
Speaker 1: ringer over the past year, but somehow things are on
Speaker 1: track to get even worse. Blame the heat. Summer in
Speaker 1: much of the northern Hemisphere is a typical peak for
Speaker 1: electricity use. This year, it's going to be sweltering as
Speaker 1: climate change tightens its grip. It's already so hard in
Speaker 1: parts of South Asia that the air temperatures are blistering
Speaker 1: enough to cook a ross salmon. Scientists are predict scorching
Speaker 1: months ahead for the US and Amazon dot Com, stuck
Speaker 1: with too much warehouse capacity now that the surgeon pandemic
Speaker 1: era shopping is faded, is looking to sublet at least
Speaker 1: ten million square feet of space and con vacate even
Speaker 1: more by ending leases with landlords. Sources say the excess
Speaker 1: capacity includes warehouses in New York, New Jersey, southern California,
Speaker 1: and Atlanta and s the Bloomberg and j I t
Speaker 1: STEM report and again futures on the rise this morning,
Speaker 1: SMP futures forty four points, DOW futures of three hundred thirty,
Speaker 1: and NASDACK futures have a hundred seventeen. So they've been
Speaker 1: adding to their games this morning and Bloomberg Surveillance with
Speaker 1: Tom Keene and Lisa of Brabo. Waits will be Live
Speaker 1: and Davos this morning for John Tucker. I'm Karen Moscow
Speaker 1: and this is Bloomberg