1 00:00:01,840 --> 00:00:06,360 Speaker 1: Broadcasting live from the Bloomberg Interacted Broker's studio in New York, 2 00:00:06,480 --> 00:00:11,160 Speaker 1: Bloomberg Living Freedom to Washington, d C. Bloomberg to Boston, 3 00:00:11,280 --> 00:00:14,680 Speaker 1: Bloomberg one six one does San Francisco. Bloomberg and M 4 00:00:14,720 --> 00:00:17,560 Speaker 1: sixteen to the country. Sirius XM had a one nine 5 00:00:17,600 --> 00:00:21,079 Speaker 1: team and around the globe the Bloomberg Business and Bloomberg 6 00:00:21,160 --> 00:00:30,560 Speaker 1: Radio dot Com. This is Bloomberg Daybreak. It's time thirty 7 00:00:30,560 --> 00:00:32,919 Speaker 1: on Wall Street. Good morning, got John Tucker and I'm 8 00:00:33,000 --> 00:00:35,960 Speaker 1: kerin Moscow, or just about four hours away from the 9 00:00:35,960 --> 00:00:37,879 Speaker 1: open of US trading. Let's get you up to date 10 00:00:37,920 --> 00:00:39,800 Speaker 1: on the news you need to know at this hour. 11 00:00:40,120 --> 00:00:44,120 Speaker 1: SNP futures are little change this morning after the SMP 12 00:00:44,320 --> 00:00:47,400 Speaker 1: climbed about one percent yesterday. We've been up and down 13 00:00:47,400 --> 00:00:50,240 Speaker 1: all week as traders assessed the path of Fed policy. 14 00:00:50,600 --> 00:00:53,320 Speaker 1: Jane Foley, as head of f X strategy at Rubble Bank, 15 00:00:53,680 --> 00:00:55,720 Speaker 1: I think that is more likely to go the full monthy. 16 00:00:55,760 --> 00:00:57,960 Speaker 1: They need to get their credibility back, you know, there's 17 00:00:58,000 --> 00:01:00,160 Speaker 1: been so many accusations over the last few months they 18 00:01:00,200 --> 00:01:03,279 Speaker 1: are behind the curve that they could affected sina on inflation. 19 00:01:03,320 --> 00:01:05,160 Speaker 1: Even some of their own have admitted that perhaps they 20 00:01:05,160 --> 00:01:07,520 Speaker 1: should have started to hike before they did. At the 21 00:01:07,640 --> 00:01:11,720 Speaker 1: end of last to keep demand in check. Trainfoliot robo 22 00:01:11,800 --> 00:01:14,559 Speaker 1: banks seized all their strength. Continuing minutes from the latest 23 00:01:14,560 --> 00:01:17,160 Speaker 1: FED meeting show officials looking to raise interest rates by 24 00:01:17,160 --> 00:01:20,160 Speaker 1: fifty basis points at each of their next two decisions. 25 00:01:20,560 --> 00:01:23,120 Speaker 1: Is the time to buy the dipping stocks. That's according 26 00:01:23,120 --> 00:01:26,000 Speaker 1: to strategist at the City Group, who say shares in 27 00:01:26,040 --> 00:01:29,840 Speaker 1: Europe and emerging markets are the most attractive cities. Bear 28 00:01:29,959 --> 00:01:34,760 Speaker 1: market checklist currently warning on just six of eighteen red flags. 29 00:01:34,800 --> 00:01:38,120 Speaker 1: That compares to thirteen red flags before the two thousand 30 00:01:38,080 --> 00:01:41,080 Speaker 1: and eight financial crisis. Well, big tech is in focus 31 00:01:41,080 --> 00:01:43,760 Speaker 1: this morning. John after week earnings from Nvidia shares the 32 00:01:43,880 --> 00:01:47,080 Speaker 1: chipmaker down five and a half percent. It says China's 33 00:01:47,120 --> 00:01:50,000 Speaker 1: COVID lockdowns in the war in Ukraine will weigh on results, 34 00:01:50,200 --> 00:01:52,560 Speaker 1: and he has said batt'll cut sales by about five 35 00:01:52,640 --> 00:01:55,640 Speaker 1: hundred million dollars this quarter. We also have French news 36 00:01:55,640 --> 00:01:58,480 Speaker 1: from Apple. Sources say the company plans to keep iPhone 37 00:01:58,520 --> 00:02:02,000 Speaker 1: production flat this year as the environment turns challenging for 38 00:02:02,080 --> 00:02:05,440 Speaker 1: the smartphone industry. At the same time, Apple boosting pay 39 00:02:05,480 --> 00:02:08,280 Speaker 1: for its workers. The companies raise the US salaries by 40 00:02:08,320 --> 00:02:11,440 Speaker 1: ten percent or more as it faces a tight labor 41 00:02:11,480 --> 00:02:14,760 Speaker 1: market and efforts to unionize. Shares it down more than 42 00:02:14,840 --> 00:02:18,440 Speaker 1: one well. Twitter is gaining in pre market trading. John 43 00:02:18,440 --> 00:02:21,320 Speaker 1: after Elon must change plans to find his acquisition. He's 44 00:02:21,320 --> 00:02:23,239 Speaker 1: no longer looking to use a margin loan for his 45 00:02:23,360 --> 00:02:26,160 Speaker 1: forty four billion dollar purchase of the social media company, 46 00:02:26,320 --> 00:02:28,640 Speaker 1: and Bloomberg's or Needy Young is here live with the story. 47 00:02:28,720 --> 00:02:32,040 Speaker 1: Good Morning Renny to Good morning Karen. A regulatory filing 48 00:02:32,080 --> 00:02:35,120 Speaker 1: shows Elon Musk is providing an additional six point to 49 00:02:35,320 --> 00:02:38,760 Speaker 1: five billion dollars in equity financing to buy out Twitter. 50 00:02:39,120 --> 00:02:41,760 Speaker 1: That'll increase the size of the deal's equity component to 51 00:02:41,880 --> 00:02:44,919 Speaker 1: thirty three point five billion dollars, and it's enough to 52 00:02:45,000 --> 00:02:48,480 Speaker 1: eliminate the margin loan. This new structure could reduce the 53 00:02:48,600 --> 00:02:51,079 Speaker 1: risk of the deal for both Musk and his lenders, 54 00:02:51,120 --> 00:02:55,240 Speaker 1: particularly given the recent slide in Tesla stock price. Shares 55 00:02:55,280 --> 00:02:58,520 Speaker 1: of Tesla have sunk about forty percent since Musk first 56 00:02:58,560 --> 00:03:01,800 Speaker 1: announced his stake in Twitter in early April. Live in 57 00:03:01,840 --> 00:03:04,680 Speaker 1: New York. I'm gonna need a Young Bloomberg daybreak, all right, 58 00:03:04,720 --> 00:03:07,080 Speaker 1: Thanks for Nita and ahead of the open on Wall 59 00:03:07,160 --> 00:03:09,919 Speaker 1: Street to SMP futures right now they have turned flat. 60 00:03:10,000 --> 00:03:14,160 Speaker 1: Nansday futures down thirty four down, futures up thirty four points. 61 00:03:14,200 --> 00:03:20,400 Speaker 1: This is Bloomberg. That's not fine. Three on Wall Street. 62 00:03:20,400 --> 00:03:22,480 Speaker 1: Time to bring in Michael Barr with Moore of when 63 00:03:22,520 --> 00:03:25,560 Speaker 1: else is going on in New York and around the world, John, 64 00:03:25,600 --> 00:03:28,840 Speaker 1: Thank you, Sarah. Texas Governor Greg Abbott says several concerning 65 00:03:28,880 --> 00:03:32,240 Speaker 1: social media posts from the gunmen were discovered moments before 66 00:03:32,240 --> 00:03:36,840 Speaker 1: the rampage began and rob elementary school in Uvalde. Twenty 67 00:03:36,880 --> 00:03:39,640 Speaker 1: one people died before the eighteen year old gunmen was 68 00:03:39,720 --> 00:03:43,320 Speaker 1: killed by law enforcement. Governor Rabbit brushed aside calls for 69 00:03:43,400 --> 00:03:47,040 Speaker 1: strict gun legislation, noting that major cities have their own 70 00:03:47,080 --> 00:03:49,680 Speaker 1: gun laws in place, but they don't work, and we 71 00:03:49,760 --> 00:03:52,600 Speaker 1: need to realize that the people who think that, well, 72 00:03:52,640 --> 00:03:56,480 Speaker 1: maybe we just implement tough for gun laws. It's gonna 73 00:03:56,520 --> 00:04:01,240 Speaker 1: solve it. Chicago, in l A and New York disproved 74 00:04:01,240 --> 00:04:05,400 Speaker 1: the thesis during the briefing. Beda O'Rourke, who is running 75 00:04:05,400 --> 00:04:08,440 Speaker 1: against Abbot for governor, interrupted the news conference, saying this 76 00:04:08,520 --> 00:04:13,080 Speaker 1: shooting was totally predictable. New York Governor Kathy Hoko wants 77 00:04:13,120 --> 00:04:16,440 Speaker 1: to raise the age to one for purchasing the type 78 00:04:16,480 --> 00:04:20,040 Speaker 1: of firearms used in recent mass shootings in Buffalo and Texas. 79 00:04:20,360 --> 00:04:23,080 Speaker 1: The governor also says she held an emergency meeting with 80 00:04:23,160 --> 00:04:26,640 Speaker 1: state police and I said, I want state police patrols 81 00:04:27,480 --> 00:04:32,320 Speaker 1: visiting our schools doing daily check ins every single day 82 00:04:32,360 --> 00:04:34,640 Speaker 1: from today to the end of the school year. Governor 83 00:04:34,720 --> 00:04:37,760 Speaker 1: huncle the man accused of randomly murdering the passenger on 84 00:04:37,800 --> 00:04:41,040 Speaker 1: the New York City subway train, was denied bail. During 85 00:04:41,040 --> 00:04:44,920 Speaker 1: his first court appearance, Andrew Abdulla's lawyer urged the judge 86 00:04:44,920 --> 00:04:47,520 Speaker 1: and the public not to rush to judgment. On the 87 00:04:47,560 --> 00:04:50,720 Speaker 1: second anniversary of the death of George Floyd, President Biden 88 00:04:50,800 --> 00:04:55,160 Speaker 1: signed an executive order to address police accountability. The executive 89 00:04:55,240 --> 00:05:00,360 Speaker 1: order raises standards fans chokeholes, restricts, no knock warrants, use 90 00:05:00,400 --> 00:05:04,880 Speaker 1: of force policies, emphasized de escalation and duty. Do you 91 00:05:04,960 --> 00:05:08,760 Speaker 1: just stop another officer from using executive force? President Biden 92 00:05:08,839 --> 00:05:11,800 Speaker 1: also criticized the Senate for not passing reforms and the 93 00:05:11,880 --> 00:05:15,920 Speaker 1: George Floyd Justice and Policing Act. The Close Race between 94 00:05:15,920 --> 00:05:19,920 Speaker 1: Trump backed Memodaz and David McCormick has triggered a recount 95 00:05:19,920 --> 00:05:23,119 Speaker 1: in the Republican primary for a Pennsylvania US Senate seat. 96 00:05:23,560 --> 00:05:26,320 Speaker 1: Global News twenty four hours a day on air and 97 00:05:26,520 --> 00:05:30,599 Speaker 1: on Bloomberg Quicktake, powered by more than journalists and analyst 98 00:05:30,680 --> 00:05:34,280 Speaker 1: more than twenty countries. Michael barn This is Bloomberg, John Michael, 99 00:05:34,320 --> 00:05:41,080 Speaker 1: thank you as five thirty six Street. That's Dive the 100 00:05:41,120 --> 00:05:45,279 Speaker 1: Bloomberg Sports Update. Here's Scott Seidenberg. Good morning, John rookie 101 00:05:45,400 --> 00:05:48,800 Speaker 1: JP Sears made his first big league start, tossing five 102 00:05:48,839 --> 00:05:51,719 Speaker 1: scoreless innings as the Yankees blanked the Orioles to nothing, 103 00:05:51,800 --> 00:05:53,839 Speaker 1: both runs coming in the bottom of the fourth inning 104 00:05:53,880 --> 00:05:57,000 Speaker 1: on a Miguel Andrew Hoar single and a throwing error. 105 00:05:57,160 --> 00:05:59,640 Speaker 1: Prior to the game, the Yankees placed John Carlos Stanton 106 00:05:59,680 --> 00:06:02,080 Speaker 1: on the day. I l Aaron Boone after the game, 107 00:06:02,120 --> 00:06:05,240 Speaker 1: talked about the win with players stepping up. Yeah, I mean, 108 00:06:05,279 --> 00:06:07,320 Speaker 1: it's been a tough couple of days for us, just 109 00:06:07,600 --> 00:06:10,000 Speaker 1: just with you know, some people going down and things, 110 00:06:10,080 --> 00:06:13,279 Speaker 1: and I'm really excited to see those guys step in 111 00:06:13,320 --> 00:06:16,680 Speaker 1: and play key roles and help us get another series victory. 112 00:06:16,720 --> 00:06:19,599 Speaker 1: It was a different story for the Mets. Rookie starter 113 00:06:19,760 --> 00:06:22,520 Speaker 1: Thomas Sapucky, who was roughed up in his first big 114 00:06:22,640 --> 00:06:26,479 Speaker 1: league start. Evan Longoria homer twice. Jock Peterson went deep 115 00:06:26,520 --> 00:06:28,839 Speaker 1: for the fourth time in two games as the Giants 116 00:06:28,880 --> 00:06:32,520 Speaker 1: route the Mets nine three. Sabucky tag for all nine 117 00:06:32,600 --> 00:06:34,920 Speaker 1: runs on seven hits and three walks in just an 118 00:06:34,920 --> 00:06:37,360 Speaker 1: inning and a third, the Mets losing back to back 119 00:06:37,400 --> 00:06:42,080 Speaker 1: games for just the first time since April tenth and eleventh. Hockey. Tonight, 120 00:06:42,120 --> 00:06:45,400 Speaker 1: it's Game five between the Rangers and the Hurricanes from Carolina, 121 00:06:45,480 --> 00:06:48,080 Speaker 1: with the series tied at two games a piece. NBA, 122 00:06:48,160 --> 00:06:50,440 Speaker 1: the Celtics are one win away from the NBA Finals 123 00:06:50,520 --> 00:06:54,480 Speaker 1: after a night win over the Heat last night in Miami. Tonight, 124 00:06:54,520 --> 00:06:56,800 Speaker 1: the Warriors look to close out the Mavericks in Game 125 00:06:56,839 --> 00:07:00,200 Speaker 1: five of the Western Finals. Tennis, at the French Open, 126 00:07:00,360 --> 00:07:04,120 Speaker 1: Raphael Nadal reached three hundred Grand Slam match victories with 127 00:07:04,279 --> 00:07:07,560 Speaker 1: his second round win. Only Roger Federer with three sixty 128 00:07:07,600 --> 00:07:10,360 Speaker 1: nine and Novak Djokovic with three twenty five have more 129 00:07:10,400 --> 00:07:14,720 Speaker 1: wins at major tournaments. I'm Scott Edinburg with Bloomberg Sports. 130 00:07:14,840 --> 00:07:18,119 Speaker 1: John all Right, Thanks Scott, five seven on Wall Street 131 00:07:18,120 --> 00:07:20,440 Speaker 1: Time now for the tri State Business Report, and for 132 00:07:20,560 --> 00:07:24,560 Speaker 1: that we're joined by Bloomberg's Ed Quarry. New York City's 133 00:07:24,560 --> 00:07:27,800 Speaker 1: tax revenue will likely decline him in an economic slowdown 134 00:07:27,880 --> 00:07:31,560 Speaker 1: due to the Fed's projected rate hikes this year. George Sweeting, 135 00:07:31,640 --> 00:07:34,960 Speaker 1: the Budget office is Acting Director, says the agency has 136 00:07:35,000 --> 00:07:38,400 Speaker 1: lowered its annual March tax revenue forecasts for the next 137 00:07:38,440 --> 00:07:41,200 Speaker 1: three fiscal years due to plans by the FED to 138 00:07:41,240 --> 00:07:46,240 Speaker 1: continue tightening monetary policy. Robert A. M. Stern is bringing 139 00:07:46,320 --> 00:07:49,480 Speaker 1: his New York touch to West Palm Beach. The architect, 140 00:07:49,520 --> 00:07:52,800 Speaker 1: whose firm designed some of the top residential buildings in 141 00:07:52,840 --> 00:07:55,640 Speaker 1: New York, is working on a project in West Palm 142 00:07:55,680 --> 00:07:58,640 Speaker 1: where prices are expected to set records for a city 143 00:07:58,680 --> 00:08:01,960 Speaker 1: that was once seen as Palm Beach is less glamorous 144 00:08:02,000 --> 00:08:06,200 Speaker 1: neighbor Bello Airlines begin serving the Windy City today with 145 00:08:06,360 --> 00:08:10,120 Speaker 1: non stop service to Southern Connecticut from Chicago Midway. The 146 00:08:10,160 --> 00:08:13,440 Speaker 1: airline stays the flight offers Chicago a more convenient and 147 00:08:13,480 --> 00:08:17,040 Speaker 1: affordable gateway to the New England and New York areas 148 00:08:17,560 --> 00:08:21,240 Speaker 1: that your Bloomberg Trying State Business Report. I'm d Corey, Thanks, 149 00:08:21,280 --> 00:08:24,000 Speaker 1: said It is Fine thirty eight on Wall Street. Bloomberg 150 00:08:24,080 --> 00:08:26,680 Speaker 1: Radio is on the air from San Francisco to New York, 151 00:08:26,720 --> 00:08:29,440 Speaker 1: London to Hong Kong. Let's check in now with our 152 00:08:29,440 --> 00:08:31,640 Speaker 1: global news team for some of the top stories heard 153 00:08:31,680 --> 00:08:35,480 Speaker 1: on our three hundred at Filigate radio stations around the world. 154 00:08:38,559 --> 00:08:41,560 Speaker 1: I'm Steve Potas scan Chen Chen Wins in New York. 155 00:08:41,679 --> 00:08:45,240 Speaker 1: We're talking about how the biggest US cities got smaller 156 00:08:45,440 --> 00:08:49,520 Speaker 1: during the pandemic um Cornyanahoan kat r H in Houston. 157 00:08:49,679 --> 00:08:53,000 Speaker 1: Drivers are beginning to bault their record high gas prisis. 158 00:08:53,360 --> 00:08:56,840 Speaker 1: I'm Carlin hit complement Debbie Digjelado. In London. We're reporting 159 00:08:56,880 --> 00:08:59,560 Speaker 1: of how Forest Johnson's government is hoping to move on 160 00:08:59,720 --> 00:09:02,040 Speaker 1: from the party Gate scandal with a package of new 161 00:09:02,080 --> 00:09:05,199 Speaker 1: measures to help households hit by the cost of living crisis. 162 00:09:05,559 --> 00:09:09,600 Speaker 1: I'm Gina Servettian for WDBM in Chicago. I'm reporting that 163 00:09:09,679 --> 00:09:12,160 Speaker 1: the city has moved a step closer to getting its 164 00:09:12,160 --> 00:09:15,679 Speaker 1: first ever casino. My mid Gory on w w J 165 00:09:15,840 --> 00:09:20,040 Speaker 1: and Detroit, I'm reporting the Aloft Hotel Downtown will become 166 00:09:20,160 --> 00:09:25,960 Speaker 1: part of Marriott's autograph collection. And those are some of 167 00:09:25,960 --> 00:09:29,200 Speaker 1: the stories are twenty seven d Bloomberg journalists and analysts 168 00:09:29,200 --> 00:09:32,360 Speaker 1: are working on this morning around the world. It is 169 00:09:32,400 --> 00:09:35,600 Speaker 1: now thirty nine on Wall Street. The following is an 170 00:09:35,760 --> 00:09:40,240 Speaker 1: editorial from Bloomberg Opinion. After a gunman killed nineteen children 171 00:09:40,240 --> 00:09:43,280 Speaker 1: and two educators at a Texas elementary school this week, 172 00:09:43,480 --> 00:09:48,280 Speaker 1: Americans responded with grief and anger as the collective shock subsized. However, 173 00:09:48,559 --> 00:09:51,719 Speaker 1: it needs to give way to purposeful outrage. After all, 174 00:09:51,760 --> 00:09:54,640 Speaker 1: no other country in the world has persistent mass shootings 175 00:09:54,720 --> 00:09:58,480 Speaker 1: like this, and most American support passing common sense gun 176 00:09:58,480 --> 00:10:01,559 Speaker 1: safety laws. From time to time, Congress has come close 177 00:10:01,600 --> 00:10:05,640 Speaker 1: to acting than failed to. This is a dereliction of duty. 178 00:10:05,920 --> 00:10:09,440 Speaker 1: Voters should marshal their anger and directed against politicians and 179 00:10:09,559 --> 00:10:13,719 Speaker 1: interests who have persistently blocked reasonable reforms. The US is 180 00:10:13,800 --> 00:10:16,360 Speaker 1: not yet at the point where mass shootings failed to 181 00:10:16,360 --> 00:10:20,560 Speaker 1: elicit shock, sadness, and outrage, but that's not much comfort, 182 00:10:20,720 --> 00:10:23,320 Speaker 1: especially when the steps we can take to prevent another 183 00:10:23,360 --> 00:10:27,199 Speaker 1: massacre or so manifestly before us. This editorial was written 184 00:10:27,200 --> 00:10:30,480 Speaker 1: by the Bloomberg Opinion Editorial Board. I'm David Shipley. For 185 00:10:30,600 --> 00:10:33,360 Speaker 1: more Bloomberg Opinion, please got to Bloomberg dot com. Slash 186 00:10:33,360 --> 00:10:36,640 Speaker 1: opinion or opia and go on the Bloomberg terminal. This 187 00:10:36,880 --> 00:10:41,080 Speaker 1: has been Bloomberg Opinion. Bloomberg Opinion editorials can be heard 188 00:10:41,160 --> 00:10:44,800 Speaker 1: every week day at this time, terminal customers read Moore 189 00:10:45,040 --> 00:10:48,880 Speaker 1: at opie, I n go dal futures right now turned 190 00:10:49,080 --> 00:10:53,160 Speaker 1: up thirty eight points and sop futures unchanged, and then 191 00:10:53,200 --> 00:10:56,720 Speaker 1: astag is still lower there down thirty six points. You're 192 00:10:56,760 --> 00:11:03,600 Speaker 1: listening to Bloomberg Daybreak and the weather forecast for today cloudy, 193 00:11:03,679 --> 00:11:08,440 Speaker 1: maybe a shower, high around seventy. Tomorrow, cloud showers, thunderstorms. Saturday, 194 00:11:08,520 --> 00:11:12,120 Speaker 1: showers and storms Sunday partly Sunday Memorial Day, mix of 195 00:11:12,200 --> 00:11:18,520 Speaker 1: sun and plows, high eighty by from the Bloomberg Interactive 196 00:11:18,559 --> 00:11:21,840 Speaker 1: Brooker's Studios is Bloomberg day Break for a Thursday May 197 00:11:23,800 --> 00:11:26,480 Speaker 1: coming up this hour. Big Tech feels the pinch of 198 00:11:26,600 --> 00:11:31,200 Speaker 1: supply chain bottlenecks and COVID lockdowns. Elon must survive. Twitter 199 00:11:31,280 --> 00:11:34,400 Speaker 1: bids send shares higher in the pre market, and President 200 00:11:34,440 --> 00:11:38,240 Speaker 1: Biden signs that key executive order. Two years after George 201 00:11:38,240 --> 00:11:41,040 Speaker 1: Floyd's death, New York Governor hukel wants to raise the 202 00:11:41,120 --> 00:11:44,720 Speaker 1: aged by guns plus the alleged gunmen in Sunday's deadly 203 00:11:44,760 --> 00:11:48,040 Speaker 1: subway shooting is being held without mail. I'm Michael Blarr. 204 00:11:48,120 --> 00:11:52,200 Speaker 1: More ahead, I'm Scottsburg. Yi's win the Mets losing the 205 00:11:52,280 --> 00:11:55,480 Speaker 1: Rangers go for a three tiers series lead today. I'll 206 00:11:55,520 --> 00:11:59,920 Speaker 1: have that more coming up in the sports. That's all 207 00:12:00,160 --> 00:12:03,800 Speaker 1: trendy ahead on Bloomberg Daybreak on Bloomberg eleven Free on 208 00:12:03,880 --> 00:12:08,320 Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh 209 00:12:08,400 --> 00:12:13,160 Speaker 1: six one Boston, Bloomberg nine sixty San Francisco, Sirius Exam 210 00:12:13,200 --> 00:12:16,280 Speaker 1: one nine team and around the world on Bloomberg Radio 211 00:12:16,400 --> 00:12:23,560 Speaker 1: dot Com and via the Bloomberg Business App. And good morning. 212 00:12:23,600 --> 00:12:26,959 Speaker 1: I'm Karen Moscow and I'm John Tucker. Bloomberg Daybreak being 213 00:12:26,960 --> 00:12:29,800 Speaker 1: brought to you by Informatica. In the cloud, your data 214 00:12:29,880 --> 00:12:33,360 Speaker 1: has the power to do the extraordinary. Managed data across 215 00:12:33,400 --> 00:12:37,160 Speaker 1: any location. Of the clowns were accurate and actionable insights 216 00:12:37,520 --> 00:12:41,520 Speaker 1: more at Informatica dot Com, and futures are lower being 217 00:12:41,600 --> 00:12:44,120 Speaker 1: dragged down by technology shares. We're coming up to five 218 00:12:44,160 --> 00:12:45,800 Speaker 1: o one on Wall Street and we checked the markets 219 00:12:45,800 --> 00:12:48,800 Speaker 1: every fifteen minutes throughout the trading day on Bloomberg. Right now, 220 00:12:48,880 --> 00:12:52,360 Speaker 1: NOWSDACK futures are down fifty four points. That's down almost 221 00:12:52,360 --> 00:12:55,199 Speaker 1: half percent. Doesn't P futures down about five points, and 222 00:12:55,280 --> 00:12:58,880 Speaker 1: down futures are a little changed. John and Karen, it 223 00:12:58,880 --> 00:13:01,400 Speaker 1: looks like markets are looking for direction this morning. It's 224 00:13:01,400 --> 00:13:04,400 Speaker 1: been an up and down week. The nasdacks lower in 225 00:13:04,640 --> 00:13:08,040 Speaker 1: early trading following some shake ups in big tech. Pepper 226 00:13:08,080 --> 00:13:11,760 Speaker 1: International founder and CEO Carol Pepper believes the outlook remains 227 00:13:11,760 --> 00:13:16,400 Speaker 1: strong despite uncertainty when prices get too high on goods. 228 00:13:16,520 --> 00:13:20,240 Speaker 1: Right now, consumers are backing off this diflation instence that 229 00:13:20,320 --> 00:13:23,480 Speaker 1: you have high inflation and that the prices and no growth. 230 00:13:23,559 --> 00:13:25,600 Speaker 1: I just don't think that's going to happen anymore. I 231 00:13:25,640 --> 00:13:27,080 Speaker 1: really think we're going to be much more in a 232 00:13:27,120 --> 00:13:30,640 Speaker 1: situation where inflation will start tapering down and then we'll 233 00:13:30,679 --> 00:13:33,200 Speaker 1: start to get into more normalized market, probably by the 234 00:13:33,320 --> 00:13:36,360 Speaker 1: end of the year. Pepper International founder Carol Pepper also 235 00:13:36,400 --> 00:13:39,640 Speaker 1: believes the US will avoid a recession this year. Well. John, 236 00:13:39,720 --> 00:13:42,079 Speaker 1: Cheers and Video are down in early trading, though off 237 00:13:42,120 --> 00:13:44,520 Speaker 1: their lowest levels. They slid as much as ten percent 238 00:13:44,559 --> 00:13:48,040 Speaker 1: after earnings missed estimates, and in Video said China's COVID 239 00:13:48,120 --> 00:13:51,600 Speaker 1: lockdowns and the war in Ukraine are weighing on sales forecast. 240 00:13:51,679 --> 00:13:54,679 Speaker 1: The chipmaker CEO also says it's doing its best to 241 00:13:54,760 --> 00:13:58,079 Speaker 1: combat supply chain Bottlenecks shares her down about six percent 242 00:13:58,120 --> 00:14:00,520 Speaker 1: in the pre market, and Apple also of those shaking 243 00:14:00,600 --> 00:14:03,640 Speaker 1: up Nasdaq features with a couple of announcements. Sources say 244 00:14:03,679 --> 00:14:06,960 Speaker 1: the company plans to keep iPhone production flat this year. 245 00:14:07,440 --> 00:14:11,959 Speaker 1: It's a supplies to assemble approximately two million iPhones. It's 246 00:14:11,960 --> 00:14:14,959 Speaker 1: about the same as last year. Apple also revealed it's 247 00:14:15,040 --> 00:14:18,800 Speaker 1: raising salaries for US workers by ten percent. Bloom very 248 00:14:18,840 --> 00:14:21,840 Speaker 1: quick to Canker alex webs it's it's an important step 249 00:14:21,880 --> 00:14:24,320 Speaker 1: to retain workers. You have two things where you've got 250 00:14:24,400 --> 00:14:28,000 Speaker 1: this unionization threat on, which is something which has been 251 00:14:28,000 --> 00:14:30,640 Speaker 1: happening across a bunch of tech companies, at least Amazon. 252 00:14:30,760 --> 00:14:32,720 Speaker 1: So there's a suspicion this is sort of trying to 253 00:14:32,760 --> 00:14:34,520 Speaker 1: fend that off and say what we pay you pretty 254 00:14:34,520 --> 00:14:38,840 Speaker 1: well already. There's also the threats of people hiring both 255 00:14:39,040 --> 00:14:42,560 Speaker 1: the engineers but also from those stores, and Bloomberg's alex 256 00:14:42,600 --> 00:14:45,480 Speaker 1: webs as the Apple's biggest number of employers comes from 257 00:14:45,480 --> 00:14:48,720 Speaker 1: its stores. Shares of Apple down one percent in early 258 00:14:48,760 --> 00:14:52,360 Speaker 1: training Well John Yesterday's FED minutes also driving markets this morning, 259 00:14:52,360 --> 00:14:55,400 Speaker 1: officials revealed a less unkish tone then expected. They plan 260 00:14:55,560 --> 00:14:58,280 Speaker 1: to raise interest rates by fifty basis points at each 261 00:14:58,280 --> 00:15:00,880 Speaker 1: of the next two meetings, leaving their with flexibility to 262 00:15:01,000 --> 00:15:03,920 Speaker 1: change course later. And another FED no there's where the 263 00:15:04,200 --> 00:15:08,000 Speaker 1: Kansas City Fed president Esther George will retire in January. 264 00:15:08,240 --> 00:15:10,360 Speaker 1: George will leave her post at about the same time 265 00:15:10,400 --> 00:15:13,760 Speaker 1: a Chicago FED chief, Charles Evans bat will create two 266 00:15:13,800 --> 00:15:17,520 Speaker 1: openings among the twelve regional FED banks next year. Stocks 267 00:15:17,560 --> 00:15:20,720 Speaker 1: in Europe opening to hire. This morning, John Energy shares 268 00:15:20,720 --> 00:15:23,240 Speaker 1: are leading the stock six D following games and oil 269 00:15:23,280 --> 00:15:27,200 Speaker 1: prices Overnight. In Asia, stocks were shoppy following concerning comments 270 00:15:27,200 --> 00:15:30,360 Speaker 1: from a top Chinese official and Bloomberg. Juliet Sally joins 271 00:15:30,400 --> 00:15:32,800 Speaker 1: us with the details from Singapore. Julie, A good morning, 272 00:15:33,000 --> 00:15:35,680 Speaker 1: Good morning, John, and Karen. Chinese stokes fluctuated, while bonds 273 00:15:35,760 --> 00:15:37,720 Speaker 1: rallied and the off show you one led Asian e 274 00:15:37,880 --> 00:15:40,720 Speaker 1: m f f X losses as premierly one. China's economy 275 00:15:41,000 --> 00:15:44,720 Speaker 1: is in some respects faring worse than in Japanese stocks 276 00:15:44,800 --> 00:15:47,640 Speaker 1: edged up on reopening prospects, and Ali Baba was in 277 00:15:47,680 --> 00:15:50,280 Speaker 1: focus in Hong Kong ahead of its earnings report. The 278 00:15:50,360 --> 00:15:53,120 Speaker 1: Korean one weekend after the Bank of Korea raised its 279 00:15:53,200 --> 00:15:56,760 Speaker 1: key interest rate on Thursday and indicated further hikes are coming, 280 00:15:56,840 --> 00:16:00,960 Speaker 1: as it indicated stabilizing inflation is its key goal. In Singapore, 281 00:16:01,040 --> 00:16:04,560 Speaker 1: Juliette Sale Bloomber Daybreak, Juliet Thanks. Back here in the US, 282 00:16:04,640 --> 00:16:07,560 Speaker 1: there's more news from the text actor. Twitter shares higher 283 00:16:07,560 --> 00:16:11,080 Speaker 1: in early trading after Elon Musk changed plans to fund 284 00:16:11,200 --> 00:16:14,440 Speaker 1: his acquisition. He's no longer looking to use a margin 285 00:16:14,520 --> 00:16:16,960 Speaker 1: loan for his forty four billion dollar purchase of the 286 00:16:17,000 --> 00:16:19,920 Speaker 1: social media company, and bloom Versus Nia Young is here 287 00:16:20,080 --> 00:16:22,560 Speaker 1: live with the story. Good morning Nita, Good morning John. 288 00:16:22,600 --> 00:16:26,480 Speaker 1: A regulatory filing shows Elon Musk is providing an additional 289 00:16:26,560 --> 00:16:29,760 Speaker 1: six point to five billion dollars in equity financing to 290 00:16:29,880 --> 00:16:32,560 Speaker 1: buy out Twitter. Bat will increase the size of the 291 00:16:32,600 --> 00:16:36,000 Speaker 1: deal's equity component to thirty three point five billion dollars, 292 00:16:36,240 --> 00:16:39,280 Speaker 1: and it's enough to eliminate the margin loan. Now, this 293 00:16:39,320 --> 00:16:41,960 Speaker 1: news structure could reduce the risk of the deal for 294 00:16:42,000 --> 00:16:45,440 Speaker 1: both Musk and his lenders. Particularly given the recent slide 295 00:16:45,440 --> 00:16:48,840 Speaker 1: in Tesla's stock price. Shares of Tesla have sunk about 296 00:16:48,920 --> 00:16:52,280 Speaker 1: forty since Musk first announced his stake in Twitter in 297 00:16:52,360 --> 00:16:55,720 Speaker 1: early April. Live in New York, I'm Rnita Young bloom 298 00:16:55,720 --> 00:16:58,360 Speaker 1: birthday break all right, Renia, thank you? Returned to politics now. 299 00:16:58,400 --> 00:17:00,480 Speaker 1: In the latest move from the White House, two years 300 00:17:00,520 --> 00:17:02,920 Speaker 1: to the day since George Floyd's and death, President Joe 301 00:17:02,920 --> 00:17:06,240 Speaker 1: Biden signed an executive order aimed at law enforcement accountability 302 00:17:06,280 --> 00:17:09,600 Speaker 1: and Bloomberg's dead. Bacheter has the story. President Biden, along 303 00:17:09,640 --> 00:17:12,840 Speaker 1: with Vice President Kamala Harris, as the administration couldn't wait 304 00:17:12,880 --> 00:17:16,119 Speaker 1: any longer for the Senate to pass legislation, and Harris 305 00:17:16,119 --> 00:17:20,040 Speaker 1: says it's not aimed at hurting police, but communication to 306 00:17:20,160 --> 00:17:24,639 Speaker 1: strength and trust between law enforcement and the communities they served. 307 00:17:24,720 --> 00:17:28,920 Speaker 1: It creates a new National Law Enforcement Accountability Database to 308 00:17:29,080 --> 00:17:32,679 Speaker 1: track records of misconduct so that an officer can't hide 309 00:17:32,720 --> 00:17:35,760 Speaker 1: the misconduct, and mandates the use of body cameras and 310 00:17:35,800 --> 00:17:39,080 Speaker 1: record keeping. He says the administration will continue to try 311 00:17:39,119 --> 00:17:42,399 Speaker 1: and get legislation passed. In San Francisco, I'm at Baxter 312 00:17:42,480 --> 00:17:45,639 Speaker 1: Bloomberg Gay break anything said and in Pennsylvania. This morning, 313 00:17:46,040 --> 00:17:50,240 Speaker 1: high profile Republicans setate race headed for a recount. Amy 314 00:17:50,320 --> 00:17:54,440 Speaker 1: Morris has the tales from our Bloomberg newsroom. In Washington. 315 00:17:54,920 --> 00:17:58,720 Speaker 1: Celebrity doctor memit Oz, who has Donald Trump's support, leads 316 00:17:58,720 --> 00:18:03,320 Speaker 1: former Bridgewater Associate It's CEO David McCormick by nine two votes. 317 00:18:03,680 --> 00:18:07,560 Speaker 1: That's enough to trigger an automatic recount. Pennsylvania's Acting Secretary 318 00:18:07,600 --> 00:18:11,320 Speaker 1: of State Lee Chapman says previous recounts and similar type 319 00:18:11,400 --> 00:18:13,800 Speaker 1: races in the past have not changed the results of 320 00:18:13,840 --> 00:18:17,080 Speaker 1: the elections. Counties have to begin the recount by June one, 321 00:18:17,440 --> 00:18:20,520 Speaker 1: and they must be completed by June seven. In Washington, 322 00:18:20,600 --> 00:18:23,159 Speaker 1: I'm Amy Morris, Bloomberg Day Break, right, Amy, thank you, 323 00:18:23,320 --> 00:18:25,800 Speaker 1: SMP Future is down about six points this morning, down, 324 00:18:25,840 --> 00:18:28,960 Speaker 1: Futures down eleven, NASDAG Futures down fifty three straight, A 325 00:18:28,960 --> 00:18:31,840 Speaker 1: hand your latest local headlines plus a check of sports, 326 00:18:32,240 --> 00:18:39,879 Speaker 1: and this is Bloomberg, right, Thanks Karen five. How settled 327 00:18:39,880 --> 00:18:42,480 Speaker 1: on Wall Street? Hanton to bring in Michael Barr with 328 00:18:42,600 --> 00:18:44,640 Speaker 1: Moore on what else is going on in New York 329 00:18:45,119 --> 00:18:47,280 Speaker 1: and around the world, John, Thank you very much, sir. 330 00:18:47,359 --> 00:18:50,240 Speaker 1: Investigators say they have yet to determine a motive for 331 00:18:50,480 --> 00:18:53,439 Speaker 1: mass shooting at a Texas grade school that left twenty 332 00:18:53,480 --> 00:18:57,000 Speaker 1: one dead. Governor Abbott says the only warning game in 333 00:18:57,040 --> 00:19:01,160 Speaker 1: a series of private Facebook messages sent Tuesday morning, he said, 334 00:19:01,440 --> 00:19:04,679 Speaker 1: I'm going to shoot my grandmother. The second post was 335 00:19:05,760 --> 00:19:09,600 Speaker 1: I shot my grandmother. The third post, maybe less than 336 00:19:09,640 --> 00:19:13,400 Speaker 1: fifteen minutes before arriving at the school, was I'm going 337 00:19:13,480 --> 00:19:17,159 Speaker 1: to shoot an elementary school. Kevinor Rabbit called the eighteen 338 00:19:17,200 --> 00:19:20,920 Speaker 1: year old gunman a demented person. Meanwhile, Houston, Texas, is 339 00:19:20,960 --> 00:19:25,680 Speaker 1: preparing for protests of a National Rifle Association convention beginning tomorrow. 340 00:19:26,000 --> 00:19:29,399 Speaker 1: Former President Trump is expected to attend. New York Governor 341 00:19:29,480 --> 00:19:32,119 Speaker 1: Kathy Hocle is called for raising the age to twenty 342 00:19:32,200 --> 00:19:35,600 Speaker 1: one for purchasing assault weapons. HOCl says she wants to 343 00:19:35,720 --> 00:19:39,880 Speaker 1: raise the legal persons gage for a R fifteen style rifles. 344 00:19:39,880 --> 00:19:42,440 Speaker 1: That's the same type of weapon used in Tuesday's match 345 00:19:42,440 --> 00:19:45,520 Speaker 1: shooting in Texas that left twenty one people dead, including 346 00:19:45,600 --> 00:19:49,560 Speaker 1: nineteen children. We must harness that outrage and that anger, 347 00:19:50,320 --> 00:19:54,000 Speaker 1: and that discussed that there could be someone with such 348 00:19:54,080 --> 00:19:57,879 Speaker 1: want and evil in their heart that they would acquire 349 00:19:58,640 --> 00:20:02,880 Speaker 1: and they are fifteen go to a schoolyard after shooting 350 00:20:02,920 --> 00:20:07,680 Speaker 1: their own grandmother and opening up an innocent children and teachers. 351 00:20:08,359 --> 00:20:11,040 Speaker 1: Governor Local says, I don't want eighteen year olds to 352 00:20:11,080 --> 00:20:13,400 Speaker 1: have guns, at least not in the state of New York. 353 00:20:13,800 --> 00:20:16,960 Speaker 1: A man accused a randomly murdering a fellow passenger on 354 00:20:17,000 --> 00:20:19,320 Speaker 1: the New York City subway train has made his first 355 00:20:19,320 --> 00:20:22,679 Speaker 1: court appearance. A lawyer urged the judge and the public 356 00:20:22,720 --> 00:20:25,879 Speaker 1: not to rush the judgment, and Drew Abdulla was ordered 357 00:20:25,920 --> 00:20:28,080 Speaker 1: held without bail on the death of forty eight year 358 00:20:28,080 --> 00:20:30,920 Speaker 1: old Daniel Enriquez, who was on his way to a 359 00:20:30,960 --> 00:20:34,840 Speaker 1: Sunday brunch in Manhattan when he was shot. Democrat Antonio 360 00:20:34,920 --> 00:20:38,159 Speaker 1: Delgado has been sworn in as New York's Lieutenant Governor, 361 00:20:38,200 --> 00:20:41,720 Speaker 1: becoming the state's first person of Latino heritage to serve 362 00:20:41,960 --> 00:20:46,680 Speaker 1: in statewide office. Delgado takes over for Brian Benjamin, who 363 00:20:46,720 --> 00:20:50,240 Speaker 1: resigned following his arrest in April for federal corruption charges. 364 00:20:50,640 --> 00:20:53,320 Speaker 1: Global News twenty four hours a day on air and 365 00:20:53,520 --> 00:20:56,680 Speaker 1: on Bloomberg quick Take, powered by more than twenty seven 366 00:20:56,720 --> 00:20:59,400 Speaker 1: hundred journalists and analysts more than a hundred twenty countries. 367 00:20:59,720 --> 00:21:07,960 Speaker 1: Mike barn this is Bloomberg, John Michael, thank you. It's 368 00:21:07,960 --> 00:21:09,720 Speaker 1: not fine tent on the wall street to have this 369 00:21:09,800 --> 00:21:13,120 Speaker 1: time of the Bloomberg Sports Up today. Here's Scott Seidenberg. 370 00:21:13,320 --> 00:21:15,959 Speaker 1: Thanks John. The Mets felt to the Giants yesterday. Rookie 371 00:21:16,000 --> 00:21:19,280 Speaker 1: Thomas Szafucky was roughed up in his first big league start. 372 00:21:19,480 --> 00:21:22,320 Speaker 1: Evan Longoria homer twice, Jock Peterson one t for the 373 00:21:22,320 --> 00:21:24,960 Speaker 1: fourth time in two games as the Giants beat the 374 00:21:25,000 --> 00:21:28,760 Speaker 1: Mets nine three For Zapucky, he allowed nine runs on 375 00:21:28,880 --> 00:21:31,639 Speaker 1: seven hits and three walks in just an inning and 376 00:21:31,720 --> 00:21:35,800 Speaker 1: a third. A much different result for Yankees rookie pitcher J. P. Sears, 377 00:21:35,800 --> 00:21:39,560 Speaker 1: making his first big league start. Sears tossed five scoreless 378 00:21:39,600 --> 00:21:42,840 Speaker 1: innings as the Yankees blank the Orioles to nothing. Hockey tonight, 379 00:21:42,920 --> 00:21:46,920 Speaker 1: Game five between the Rangers and Hurricanes from Carolina. Here's 380 00:21:46,920 --> 00:21:49,120 Speaker 1: head coach Gerard Glenn. If we played them two wheel 381 00:21:49,160 --> 00:21:51,159 Speaker 1: their games in the building last week, and you know 382 00:21:51,200 --> 00:21:52,680 Speaker 1: we didn't meant whether the win, but we played two 383 00:21:52,680 --> 00:21:55,480 Speaker 1: good hockey games. So I gotta keep working, keep playing, 384 00:21:55,520 --> 00:21:58,000 Speaker 1: and it's gonna be a big game five and their building. NBA. 385 00:21:58,119 --> 00:22:00,800 Speaker 1: The Celtics beat the Heat ninety three. There now one 386 00:22:00,840 --> 00:22:03,200 Speaker 1: win away from a trip to the NBA Finals. Tonight, 387 00:22:03,240 --> 00:22:05,240 Speaker 1: the Warriors look to close out the Mavericks in game 388 00:22:05,280 --> 00:22:08,240 Speaker 1: five of the Western Finals. Tennis, at the French Open, 389 00:22:08,359 --> 00:22:11,879 Speaker 1: raining women's singles and doubles champ Barbara Krutchykova was upset 390 00:22:11,880 --> 00:22:14,320 Speaker 1: in the first round on Monday, and now she will 391 00:22:14,359 --> 00:22:17,000 Speaker 1: not defend her doubles title as the world's number two 392 00:22:17,000 --> 00:22:21,359 Speaker 1: player tested positive for COVID nineteen. Elsewhere, Raphael Nadal reached 393 00:22:21,359 --> 00:22:24,600 Speaker 1: the three hundred Grand Slam match victories with his second round. 394 00:22:24,600 --> 00:22:27,639 Speaker 1: Women only Roger Federer with three sixty nine and Novak 395 00:22:27,680 --> 00:22:31,720 Speaker 1: Djokovic with three twenty five have more wins at major tournaments. 396 00:22:31,880 --> 00:22:35,800 Speaker 1: I'm Scott Sidinburg with Bloomberg Sports. John alright, thanks so Scott, 397 00:22:35,960 --> 00:22:38,280 Speaker 1: and headed the cash shows on Wall Street. We have 398 00:22:38,320 --> 00:22:41,760 Speaker 1: futures right now kind of treading water down. Futures down 399 00:22:41,800 --> 00:22:45,159 Speaker 1: just to seven points smp E. Many futures just to 400 00:22:45,240 --> 00:22:47,399 Speaker 1: fine points slower right now. That's down a tenth of 401 00:22:47,400 --> 00:22:51,040 Speaker 1: a percent, and the tech of a nasday features fifty 402 00:22:51,040 --> 00:22:54,240 Speaker 1: two points slower. That he's down four tenths of a percent. 403 00:22:54,800 --> 00:22:58,479 Speaker 1: As we look for a measure volatility, wall streets, fear gage, 404 00:22:58,520 --> 00:23:02,000 Speaker 1: the VIX right now twenty eight forty two, and the 405 00:23:02,080 --> 00:23:06,320 Speaker 1: Euro unchanged tod one oh six eight one. The ten 406 00:23:06,400 --> 00:23:10,480 Speaker 1: year yield in the US two point seven That is 407 00:23:10,560 --> 00:23:13,800 Speaker 1: down two basis points this morning, and you're listening to 408 00:23:13,920 --> 00:23:22,320 Speaker 1: Bloomberg day Break. Day Break brown to you by the 409 00:23:22,359 --> 00:23:24,760 Speaker 1: New York Community Trust. Your name will live on as 410 00:23:24,760 --> 00:23:26,880 Speaker 1: a champion of the clauses you care about for years 411 00:23:26,920 --> 00:23:29,560 Speaker 1: to come through a charitable bequest to the New York 412 00:23:29,600 --> 00:23:38,240 Speaker 1: Community Trust. Learn more at Philanthropists dot NYC. Markets headlines 413 00:23:38,280 --> 00:23:41,280 Speaker 1: and breaking news twenty four hours a day at Bloomberg 414 00:23:41,320 --> 00:23:44,680 Speaker 1: dot com, the Bloomberg Business at and at Bloomberg Quicktape. 415 00:23:44,880 --> 00:23:54,080 Speaker 1: This is a Bloomberg Business lash, and I'm Cameron. Moscow 416 00:23:54,160 --> 00:23:58,399 Speaker 1: Technology shares leading futures lower this morning. Traders also weighing 417 00:23:58,440 --> 00:24:01,119 Speaker 1: Federal Reserve minutes that struck a less hawkish tone, and 418 00:24:01,160 --> 00:24:03,760 Speaker 1: we checked the markets every fifteen minutes throughout the trading 419 00:24:03,840 --> 00:24:06,840 Speaker 1: day on Bloomberg. Right now NOWASDACK futures are down about 420 00:24:06,840 --> 00:24:10,200 Speaker 1: forty seven points, SMP futures are little change, so are 421 00:24:10,280 --> 00:24:13,600 Speaker 1: Dow futures, and the decks in Germany is up about 422 00:24:13,600 --> 00:24:16,760 Speaker 1: four tenths of upper cent. The ten year treasury up 423 00:24:16,760 --> 00:24:19,960 Speaker 1: six thirty seconds, the l two point seven to two percent. 424 00:24:20,080 --> 00:24:23,160 Speaker 1: They yield on the two year two point four six percent. 425 00:24:23,600 --> 00:24:26,439 Speaker 1: Nimex screwed oil is up seven tenths percent or seventy 426 00:24:26,440 --> 00:24:28,800 Speaker 1: five cents at a hundred eleven dollars eight cents in barrel. 427 00:24:29,000 --> 00:24:31,280 Speaker 1: Comex gold is down to ten percent or three dollar 428 00:24:31,359 --> 00:24:34,520 Speaker 1: sixty cents at eighteen forty eight ninety announce the Euro 429 00:24:34,680 --> 00:24:36,960 Speaker 1: one point oh six eight one against the dollar, British 430 00:24:37,000 --> 00:24:39,199 Speaker 1: bound one point to five five nine and again one 431 00:24:39,240 --> 00:24:42,760 Speaker 1: twenty six point seven two, and bitcoins lower down more 432 00:24:42,800 --> 00:24:46,200 Speaker 1: than two percent at twenty nine thousand, one hundred dollars. Today, 433 00:24:46,240 --> 00:24:48,520 Speaker 1: we're looking for a second read on first quarter gross 434 00:24:48,560 --> 00:24:50,960 Speaker 1: domestic product at at eight thirty Wall Street time, along 435 00:24:50,960 --> 00:24:53,920 Speaker 1: with the weekly report and initial jovless claims. Pending home 436 00:24:53,960 --> 00:24:56,320 Speaker 1: sales are out of ten and Macy's is among companies 437 00:24:56,359 --> 00:24:59,639 Speaker 1: schedule to report earnings today. That's a Bloomberg business flash. 438 00:24:59,640 --> 00:25:01,679 Speaker 1: Now here's Michael bar with more on what's going on 439 00:25:01,760 --> 00:25:05,160 Speaker 1: around the world. Michael, thank you very much. The father 440 00:25:05,240 --> 00:25:07,920 Speaker 1: of a child killed by a shooting rampage at the 441 00:25:08,000 --> 00:25:11,920 Speaker 1: Texas Elementary schools says police were slow to move in 442 00:25:12,080 --> 00:25:16,720 Speaker 1: and were unprepared. Javier Caserras says the father of the 443 00:25:16,800 --> 00:25:20,360 Speaker 1: fourth grader, Jacqueline Cassara's one of the nineteen youngsters who 444 00:25:20,400 --> 00:25:22,840 Speaker 1: died along with two teachers in the classroom at rob 445 00:25:22,880 --> 00:25:26,399 Speaker 1: Elementary School in Uvalde. However, they had of the Texas 446 00:25:26,480 --> 00:25:30,000 Speaker 1: Department of Public Safety says law enforcement immediately engaged the 447 00:25:30,000 --> 00:25:33,960 Speaker 1: shooter and contained him in the classroom. Global News twenty 448 00:25:33,960 --> 00:25:36,520 Speaker 1: four hours a day on air and on Bloomberg quick Take, 449 00:25:36,560 --> 00:25:40,320 Speaker 1: powered by more journalist analysis more than a hundred twenty countries. 450 00:25:40,600 --> 00:25:43,359 Speaker 1: Michael Barr and this is Bloomberg, John, Michael, thank you. 451 00:25:43,400 --> 00:25:45,640 Speaker 1: Find nineteen on Wall Street. We're lying for the Bloomberg 452 00:25:45,640 --> 00:25:48,800 Speaker 1: interactor Broker's Studios. This is Bloomberg day Break. We'd like 453 00:25:48,840 --> 00:25:51,440 Speaker 1: you to bring an interview now from the World Economic 454 00:25:51,480 --> 00:25:54,600 Speaker 1: Forum at Davos, Fidelity CEO and Richards sat down with 455 00:25:54,600 --> 00:25:59,320 Speaker 1: Bloomberg's Francine Laka for a conversation about market volatility and 456 00:25:59,359 --> 00:26:02,439 Speaker 1: food price is and how long she expects the uncertainty 457 00:26:02,520 --> 00:26:06,359 Speaker 1: might last. Let's listen to that interview right now. I 458 00:26:06,480 --> 00:26:09,640 Speaker 1: know you're always extremely thoughtful about the markets. I don't 459 00:26:09,680 --> 00:26:11,800 Speaker 1: know what it feels like from where you're sitting today. 460 00:26:12,119 --> 00:26:14,760 Speaker 1: Are you worried about the future or are the glimmers 461 00:26:14,760 --> 00:26:17,680 Speaker 1: of hope? Well, there's always a goolders of hope. We're 462 00:26:17,680 --> 00:26:20,680 Speaker 1: never completely without hope. But it's a pretty tough environment. Um. 463 00:26:20,880 --> 00:26:23,919 Speaker 1: I think when you look at where we've come from, 464 00:26:23,960 --> 00:26:25,639 Speaker 1: an extent of the correction that you've come from, you 465 00:26:25,760 --> 00:26:28,720 Speaker 1: definitely in equity markets have seen a fairly substantial d 466 00:26:28,920 --> 00:26:32,600 Speaker 1: rating and probably that's pretty much run its course, and 467 00:26:32,640 --> 00:26:34,840 Speaker 1: now it's all about what the earnings patterns are from 468 00:26:34,840 --> 00:26:37,080 Speaker 1: here and obviously what the central banks managed to do 469 00:26:37,119 --> 00:26:39,399 Speaker 1: in terms of bringing inflation under control. So are you 470 00:26:39,440 --> 00:26:41,440 Speaker 1: expecting a lot more of a correction when it comes 471 00:26:41,480 --> 00:26:43,600 Speaker 1: to some of the earnings that weansaw that margins and 472 00:26:43,720 --> 00:26:47,359 Speaker 1: extremely difficult for certain, you know, parts of the industries 473 00:26:47,400 --> 00:26:50,679 Speaker 1: to pass on higher consumer inflation. The risk of her 474 00:26:50,720 --> 00:26:55,720 Speaker 1: recession has unquestionably gone up. I'm not certain yet that 475 00:26:55,760 --> 00:26:58,040 Speaker 1: all parts of the world are going to go into recession. 476 00:26:58,760 --> 00:27:02,040 Speaker 1: Markets are discounting mechanisms, so they've discounted part of that. 477 00:27:02,240 --> 00:27:05,960 Speaker 1: But clearly if the backdrop of economic environment accelerates in 478 00:27:06,000 --> 00:27:09,560 Speaker 1: a downward direction, I think you could see more volatility markets. 479 00:27:09,560 --> 00:27:12,720 Speaker 1: So I don't think we're through this period yet, but 480 00:27:12,840 --> 00:27:16,200 Speaker 1: I think there is some hope that possibly we could 481 00:27:16,240 --> 00:27:18,720 Speaker 1: be seeing the peak of the bearishness. But we're not 482 00:27:18,840 --> 00:27:21,000 Speaker 1: quite through it yet. So what happens in the next 483 00:27:21,000 --> 00:27:24,480 Speaker 1: couple of quarters? And how difficult is that to predict 484 00:27:24,600 --> 00:27:27,240 Speaker 1: for an asset manager? Does it change the way you work? Look, 485 00:27:27,240 --> 00:27:29,520 Speaker 1: it's terribly difficult to predict. And that's you know that. 486 00:27:29,560 --> 00:27:31,760 Speaker 1: I think, as you know, this kind of environment, which 487 00:27:31,800 --> 00:27:33,960 Speaker 1: is like a turning point and sentiment a turning point 488 00:27:33,960 --> 00:27:36,399 Speaker 1: in the sort of economic backdrop, really really difficult. And 489 00:27:36,440 --> 00:27:40,320 Speaker 1: of course we're coming into this from a very unusual cycle, right, 490 00:27:40,359 --> 00:27:44,000 Speaker 1: So we've had a compressed, deep procession followed by the 491 00:27:44,040 --> 00:27:47,440 Speaker 1: most extraordinary bounce back, and then on top of that 492 00:27:48,040 --> 00:27:51,000 Speaker 1: you've had these external supply shocks, first of all on 493 00:27:51,480 --> 00:27:54,680 Speaker 1: the oil price side um and then of course with 494 00:27:54,920 --> 00:27:58,160 Speaker 1: the second wave, big wave of COVID in China with 495 00:27:58,200 --> 00:28:00,920 Speaker 1: the sort of contraction if you can my activity there 496 00:28:00,920 --> 00:28:03,800 Speaker 1: and the stumbling blocks that have been put in on 497 00:28:03,840 --> 00:28:06,359 Speaker 1: the supply chain, that has been sort of a double 498 00:28:06,480 --> 00:28:10,280 Speaker 1: external shock which has once again put this huge amount 499 00:28:10,280 --> 00:28:14,159 Speaker 1: of grit into the economic machinery. That being said, I 500 00:28:14,200 --> 00:28:18,040 Speaker 1: think you're starting to see the Shanghai situation in particular improve, 501 00:28:18,560 --> 00:28:20,239 Speaker 1: which I think is a is a big take, and 502 00:28:20,280 --> 00:28:22,960 Speaker 1: where we get to on the oil price, the gas price, 503 00:28:23,200 --> 00:28:24,920 Speaker 1: I think is the next big thing that you sort 504 00:28:24,920 --> 00:28:27,600 Speaker 1: of hang on. But as I think, so, what do 505 00:28:27,640 --> 00:28:29,000 Speaker 1: you what do you do when you face into this? 506 00:28:29,080 --> 00:28:33,119 Speaker 1: I think diversification is extremely important in that we think 507 00:28:33,280 --> 00:28:35,960 Speaker 1: probably that in terms of bond markets, it will be 508 00:28:36,040 --> 00:28:39,600 Speaker 1: credit spreads that take the strain rather than the bond 509 00:28:39,600 --> 00:28:42,000 Speaker 1: market itself. That if you like treasury so I think, 510 00:28:42,280 --> 00:28:45,280 Speaker 1: you know, government bonds probably feel less volatile from here 511 00:28:45,400 --> 00:28:48,440 Speaker 1: rather than than credit. But it is still quite a 512 00:28:48,520 --> 00:28:51,360 Speaker 1: challenging environment, and I think we've probably got another two 513 00:28:51,440 --> 00:28:55,720 Speaker 1: quarters at least of volatility as we see this economic 514 00:28:55,760 --> 00:28:59,120 Speaker 1: backdrop gradually ease a little bit, and then we'll be 515 00:28:59,120 --> 00:29:01,360 Speaker 1: looking towards the four quarter maybe to see a little 516 00:29:01,400 --> 00:29:06,200 Speaker 1: more clarity. Your clients and want exposure to China. Interesting. 517 00:29:06,240 --> 00:29:09,640 Speaker 1: So we're still seeing quite positive sentiment on China, and 518 00:29:09,680 --> 00:29:13,640 Speaker 1: notwithstanding the sort of more difficult backdrops that we've seen, 519 00:29:14,160 --> 00:29:18,280 Speaker 1: it's such an important and major part of the world economy, 520 00:29:18,400 --> 00:29:20,800 Speaker 1: and that probably is a part of the world where 521 00:29:20,840 --> 00:29:24,600 Speaker 1: you'll see economic activity resume more quickly. And so we're 522 00:29:24,600 --> 00:29:28,479 Speaker 1: definitely still seeing quite a lot of positive sentiment towards 523 00:29:28,600 --> 00:29:31,560 Speaker 1: towards China, particularly given the correction that you've seen quite 524 00:29:31,560 --> 00:29:34,320 Speaker 1: a lot of market there. We caught up at a 525 00:29:34,360 --> 00:29:36,440 Speaker 1: dinner yesterday and he said, I want to come on 526 00:29:36,480 --> 00:29:41,520 Speaker 1: and talk about the effort and and dragon food. How 527 00:29:41,520 --> 00:29:43,800 Speaker 1: do we look at food and stood and stations. Food security? 528 00:29:43,880 --> 00:29:46,160 Speaker 1: Is this, you know, the biggest challenge of our time. 529 00:29:46,440 --> 00:29:51,280 Speaker 1: So one of the things that has been just both um, 530 00:29:51,320 --> 00:29:55,280 Speaker 1: I think really constructive about the conversations this week is 531 00:29:55,320 --> 00:29:58,160 Speaker 1: how the risk of a food crisis has gone right 532 00:29:58,240 --> 00:30:01,040 Speaker 1: up the agenda, and you've see a tremendous amount of 533 00:30:01,360 --> 00:30:05,320 Speaker 1: leaning in from all sorts of parts of both the 534 00:30:05,360 --> 00:30:08,440 Speaker 1: political and if you like, the corporate infrastructure to figure 535 00:30:08,480 --> 00:30:12,000 Speaker 1: out how can we avert a major food crisis. Some 536 00:30:12,320 --> 00:30:16,080 Speaker 1: good news overnight about maybe beginning to find a way 537 00:30:16,080 --> 00:30:19,160 Speaker 1: where we might get some of the grain out of Ukraine, 538 00:30:19,200 --> 00:30:21,959 Speaker 1: and that is a really really important step and all 539 00:30:22,000 --> 00:30:24,080 Speaker 1: of us we're not there yet, but I think it's 540 00:30:24,080 --> 00:30:27,040 Speaker 1: been one of those examples were actually getting people physically 541 00:30:27,080 --> 00:30:32,520 Speaker 1: together talking constructively. Of course, President Zelenski challenged everybody on Monday, like, 542 00:30:32,600 --> 00:30:34,800 Speaker 1: you know, you've got to get on top of these people. Um, 543 00:30:34,800 --> 00:30:37,600 Speaker 1: and I think you've definitely seen some of those conversations progressed. 544 00:30:37,600 --> 00:30:39,360 Speaker 1: So we're not out of the woods yet on that, 545 00:30:39,840 --> 00:30:42,040 Speaker 1: but I think we have made real progress this week 546 00:30:42,040 --> 00:30:44,120 Speaker 1: and actually figuring out what it is we need to 547 00:30:44,160 --> 00:30:46,960 Speaker 1: do to make sure that food and the food chain 548 00:30:47,040 --> 00:30:50,000 Speaker 1: does not get weaponized in times of war. And if 549 00:30:50,040 --> 00:30:51,560 Speaker 1: we've managed to achieve that this week, I think that 550 00:30:51,600 --> 00:30:55,040 Speaker 1: will be a tremendous, tremendous result for down that CEO 551 00:30:55,120 --> 00:30:58,000 Speaker 1: and Richard speaking with Bloomberg's Francy and look at the 552 00:30:58,040 --> 00:31:01,360 Speaker 1: World the Economic Forum in on Most, Switzerland. You can 553 00:31:01,360 --> 00:31:04,320 Speaker 1: catch more of that interview online at Bloomberg dot com. 554 00:31:05,160 --> 00:31:07,960 Speaker 1: Ahead of the open on Wall Street, futures of term 555 00:31:08,040 --> 00:31:11,479 Speaker 1: mixed DAL future is now up forty points. That's up 556 00:31:11,520 --> 00:31:14,240 Speaker 1: one tenth of a percent. SMP future is a point 557 00:31:14,320 --> 00:31:18,280 Speaker 1: higher than ASDACK futures down thirty five. This is Bloomberg 558 00:31:18,320 --> 00:31:23,200 Speaker 1: Day Break. The Bloomberg weather for it today for a 559 00:31:23,280 --> 00:31:27,800 Speaker 1: meteorologist Rock Caroline, mostly cloudy then maybe a shower later 560 00:31:27,880 --> 00:31:31,240 Speaker 1: today the heights, amperature about seventy degrees cloudy to nine 561 00:31:31,320 --> 00:31:38,440 Speaker 1: chances showers blows in the mid sixties. Markets headlines and 562 00:31:38,560 --> 00:31:41,840 Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com, 563 00:31:41,960 --> 00:31:45,040 Speaker 1: the Bloomberg Business apt and at Bloomberg Quick Tape. This 564 00:31:45,440 --> 00:31:54,400 Speaker 1: is a Bloomberg Business Flash and I'm Karen Moscow. And 565 00:31:54,600 --> 00:31:58,360 Speaker 1: US stock index futures haven't fluctuating this morning. Mrs Trader's 566 00:31:58,360 --> 00:32:01,280 Speaker 1: way Federal Reserve minutes has struck a less hawkish note 567 00:32:01,560 --> 00:32:04,440 Speaker 1: right now. It's in p futures are up nine points down, 568 00:32:04,520 --> 00:32:07,600 Speaker 1: futures are up one hundred one and as deck futures 569 00:32:07,600 --> 00:32:10,440 Speaker 1: are little change. The decks in Germany's up six tensive 570 00:32:10,480 --> 00:32:13,480 Speaker 1: upper cent ten year treasury of three thirty seconds yell 571 00:32:13,520 --> 00:32:15,640 Speaker 1: two point seven three percent, the yield on a two 572 00:32:15,720 --> 00:32:18,880 Speaker 1: year two point four six percent. Nimex screwed oil is 573 00:32:18,960 --> 00:32:20,880 Speaker 1: up one percent of a dollar ten at a hundred 574 00:32:20,880 --> 00:32:23,720 Speaker 1: eleven dollars forty four cents of barrel Comic school is 575 00:32:23,760 --> 00:32:26,000 Speaker 1: down two ten percent or two dollars seventy cents at 576 00:32:26,000 --> 00:32:29,000 Speaker 1: eighteen forty nine eight and ounce. The euro one point 577 00:32:29,000 --> 00:32:31,360 Speaker 1: oh six nine six against the dollar, British pound one 578 00:32:31,360 --> 00:32:33,960 Speaker 1: point to five nine three and the end one twenty 579 00:32:34,080 --> 00:32:37,000 Speaker 1: six point seven six. Looking at bitcoin, it's down two 580 00:32:37,000 --> 00:32:40,040 Speaker 1: percent at twenty nine thousand, one hundred eighty dollars, and 581 00:32:40,080 --> 00:32:42,560 Speaker 1: that's a bloomberg business flash. Now here's Michael Barr with 582 00:32:42,600 --> 00:32:45,480 Speaker 1: more on what's going on around the world. Muchael, Karen, 583 00:32:45,520 --> 00:32:47,920 Speaker 1: thank you very much. Across the country, law enforcement and 584 00:32:47,960 --> 00:32:50,320 Speaker 1: school officials are ramping up security in the wake of 585 00:32:50,400 --> 00:32:54,040 Speaker 1: the taxis shooting that left nineteen school children and two 586 00:32:54,080 --> 00:32:58,520 Speaker 1: teachers dead. The retired police officer killed while trying to 587 00:32:58,600 --> 00:33:01,520 Speaker 1: stop the government in a race attack at a Buffalo 588 00:33:01,600 --> 00:33:05,600 Speaker 1: supermarket was laid to rest. Erin Salter was possimately promoted 589 00:33:05,680 --> 00:33:08,680 Speaker 1: to lieutenant and awarded the Medal of Honor. Another big 590 00:33:08,720 --> 00:33:11,880 Speaker 1: planeload of baby formula has arrived in the United States 591 00:33:11,920 --> 00:33:15,360 Speaker 1: to help these the shortage worried by parents that they're 592 00:33:15,400 --> 00:33:19,320 Speaker 1: facing trying to feed their babies. In the NBA Playoffs, 593 00:33:19,320 --> 00:33:21,880 Speaker 1: the Celtics beat the Heat Boston is now a game 594 00:33:21,920 --> 00:33:25,080 Speaker 1: away from advancing to the finals. In baseball, the Yankees 595 00:33:25,080 --> 00:33:27,520 Speaker 1: shut out the Orioles to zip. The Giants beat the Mets, 596 00:33:27,520 --> 00:33:31,160 Speaker 1: the Red Sox loss the Nationals, and a'es one Global 597 00:33:31,160 --> 00:33:33,520 Speaker 1: News twenty four hours a day on air, end on 598 00:33:33,560 --> 00:33:37,160 Speaker 1: Bloomberg Quick Take, powered by more than dred journalists analysts 599 00:33:37,200 --> 00:33:40,880 Speaker 1: more than twenty countries. I'm Michael bar This is Bloomberg, John, Michael, 600 00:33:40,880 --> 00:33:43,400 Speaker 1: thank you. It is fine forty nine on Wall Street. 601 00:33:43,440 --> 00:33:45,320 Speaker 1: We are blive from the Bloomberg into a hand to 602 00:33:45,360 --> 00:33:48,040 Speaker 1: broker studios. Let's get you set up at the trading 603 00:33:48,120 --> 00:33:50,920 Speaker 1: day ahead. We are joined now by Josh Wide, Vice 604 00:33:50,920 --> 00:33:55,320 Speaker 1: president portfolio manager Hennessy Funds. Josh, good morning, Thanks for 605 00:33:55,360 --> 00:33:58,000 Speaker 1: being with us. Can you make the bowl case for 606 00:33:58,080 --> 00:34:02,840 Speaker 1: stocks this morning? Good to be with you. I'll certainly try. Yeah. 607 00:34:02,960 --> 00:34:06,800 Speaker 1: Very bullish on the market, notwithstanding some some incredible volatility 608 00:34:06,880 --> 00:34:08,880 Speaker 1: that we've seen. So yeah, I think that where we 609 00:34:08,920 --> 00:34:12,520 Speaker 1: are right now, you know, certainly, you know, since late March, 610 00:34:12,560 --> 00:34:14,760 Speaker 1: we've just had lower lows and lower highs on the market. 611 00:34:14,920 --> 00:34:17,719 Speaker 1: But taking a step back, you know, we we are 612 00:34:17,760 --> 00:34:21,000 Speaker 1: at about sixteen times earnings two thousand, twenty three earnings, 613 00:34:21,360 --> 00:34:24,520 Speaker 1: so we've got about a six percent earnings yield. Uh, 614 00:34:24,680 --> 00:34:26,520 Speaker 1: we have a ten year that can't get above three. 615 00:34:26,560 --> 00:34:29,759 Speaker 1: We're at about to eight, so that six verses eight, 616 00:34:30,120 --> 00:34:32,400 Speaker 1: six verses to eight is pretty compelling. I mean, so 617 00:34:32,480 --> 00:34:35,360 Speaker 1: that's where we were before we started talking about a 618 00:34:35,360 --> 00:34:38,759 Speaker 1: pandemic two or three years ago. Uh. One thing that 619 00:34:38,800 --> 00:34:40,399 Speaker 1: I was looking at, you know, we talked a lot 620 00:34:40,400 --> 00:34:44,320 Speaker 1: about cash on the balance sheet of SMP five companies 621 00:34:44,360 --> 00:34:47,640 Speaker 1: at about seven point four trillion, so a lot of cash. 622 00:34:47,719 --> 00:34:50,319 Speaker 1: But I think even more importantly is just kind of 623 00:34:50,320 --> 00:34:53,239 Speaker 1: where we are now versus you know, several years ago. 624 00:34:53,360 --> 00:34:56,200 Speaker 1: So you know, net debt, you know cash. You know, 625 00:34:56,239 --> 00:34:58,920 Speaker 1: as a we look at debt and then cash and 626 00:34:58,960 --> 00:35:02,520 Speaker 1: then in offer in cash flows. So the ratio from 627 00:35:02,560 --> 00:35:06,200 Speaker 1: of net debt to IBADA is less than one, and 628 00:35:06,280 --> 00:35:08,680 Speaker 1: so putting that in perspective, at the end of oh eight, 629 00:35:08,719 --> 00:35:11,360 Speaker 1: it was above three. So I think that we are 630 00:35:11,440 --> 00:35:17,439 Speaker 1: on solid footing balance sheet wise, liquidity wise, evaluation wise. 631 00:35:17,480 --> 00:35:19,920 Speaker 1: So yeah, I think it's a great setup. Uh you know, 632 00:35:19,960 --> 00:35:22,360 Speaker 1: once we get a little bit more clarity around interest 633 00:35:22,400 --> 00:35:25,760 Speaker 1: rate hikes, I think we're we're good for another leg higher. 634 00:35:26,320 --> 00:35:30,520 Speaker 1: How does it set us up for earning season going forward? Yeah, well, 635 00:35:30,520 --> 00:35:33,200 Speaker 1: earning season has absolutely been tough. So I think what 636 00:35:33,239 --> 00:35:36,600 Speaker 1: people thought would be relatively safe, you know, things like 637 00:35:36,680 --> 00:35:41,200 Speaker 1: retail Target, Walmart, things of that nature we now see 638 00:35:41,400 --> 00:35:43,400 Speaker 1: and and I guess in retrospect we all should have 639 00:35:43,440 --> 00:35:46,040 Speaker 1: known it, but we've maybe chose to ignore it. That 640 00:35:46,080 --> 00:35:48,160 Speaker 1: you know, there are some pressures from you know, higher 641 00:35:48,200 --> 00:35:51,680 Speaker 1: gas prices and that comes into gross margins and and 642 00:35:51,719 --> 00:35:55,319 Speaker 1: certainly you know, shipping costs and the consumers feeling it 643 00:35:55,400 --> 00:35:59,120 Speaker 1: clearly in their wallet. I think there's this big reset 644 00:35:59,560 --> 00:36:03,480 Speaker 1: and so certainly this is where we see the results 645 00:36:03,480 --> 00:36:05,480 Speaker 1: of what's been going on for so long, all this 646 00:36:05,560 --> 00:36:08,760 Speaker 1: liquidity flowing into the system and and you know, higher 647 00:36:08,800 --> 00:36:12,080 Speaker 1: fuel prices. So I think that this is a transition period. 648 00:36:12,600 --> 00:36:17,240 Speaker 1: We've seen realized volatility just in the last year nearly double. 649 00:36:17,600 --> 00:36:20,040 Speaker 1: So certainly people don't know what to make of all 650 00:36:20,040 --> 00:36:22,600 Speaker 1: of this. But you know, I think that you know, 651 00:36:22,640 --> 00:36:25,560 Speaker 1: it's not forever, and I think that you know, it's 652 00:36:25,600 --> 00:36:29,719 Speaker 1: just a natural progression as we see higher rates and 653 00:36:29,719 --> 00:36:31,680 Speaker 1: and hopefully some kind of a pause towards the end 654 00:36:31,719 --> 00:36:34,399 Speaker 1: of the year. You interpret the FED venace as being 655 00:36:34,520 --> 00:36:39,640 Speaker 1: less hawkish. I think that they're more flexible. I think 656 00:36:39,680 --> 00:36:43,560 Speaker 1: that you know, the Feds certainly unfortunately, I think with 657 00:36:43,640 --> 00:36:45,799 Speaker 1: the markets realizing just in the last few months, is 658 00:36:45,800 --> 00:36:48,200 Speaker 1: that the FED supply isn't going to come to the 659 00:36:48,200 --> 00:36:50,480 Speaker 1: rescue here, so inflation is now going to have to 660 00:36:50,480 --> 00:36:53,960 Speaker 1: be dealt with on the demand side. So they, you know, 661 00:36:54,000 --> 00:36:57,360 Speaker 1: without maybe saying it explicitly, they need to destroy a 662 00:36:57,360 --> 00:36:59,880 Speaker 1: little bit of demand from the consumer and so that 663 00:37:00,600 --> 00:37:04,239 Speaker 1: certainly not pleasant news. It's it's a tough way to 664 00:37:04,280 --> 00:37:06,520 Speaker 1: deal with it all, but it has to be done. 665 00:37:06,760 --> 00:37:10,080 Speaker 1: So uh, you know, I think that the Fed is 666 00:37:10,640 --> 00:37:13,000 Speaker 1: doing what they're doing. They're gonna, you know, stick with 667 00:37:13,040 --> 00:37:16,120 Speaker 1: the plan kind of some fifty basis point moves. But 668 00:37:16,320 --> 00:37:18,040 Speaker 1: I think towards the end of the year, this idea 669 00:37:18,080 --> 00:37:21,319 Speaker 1: that they would have some flexibility that you know, take 670 00:37:21,360 --> 00:37:25,480 Speaker 1: a step back is welcome news. We saw the market 671 00:37:25,560 --> 00:37:29,239 Speaker 1: rally on that, so yeah, and and build on that 672 00:37:29,400 --> 00:37:31,480 Speaker 1: very a little bit. You know, I think they need 673 00:37:31,520 --> 00:37:33,759 Speaker 1: to deuce to do these rate hikes. You know, they 674 00:37:33,760 --> 00:37:36,600 Speaker 1: need some room to maneuver in the case of some 675 00:37:36,680 --> 00:37:39,279 Speaker 1: kind of big you know, shocked to the market, and 676 00:37:39,320 --> 00:37:42,719 Speaker 1: they didn't have that up until until late so you know, 677 00:37:42,719 --> 00:37:44,520 Speaker 1: it would be hard to cut when there's nothing to cut. 678 00:37:44,600 --> 00:37:47,600 Speaker 1: So now there's something to cut in the future, but 679 00:37:47,640 --> 00:37:49,640 Speaker 1: they still do need to raise rates in the near term. 680 00:37:50,040 --> 00:37:52,360 Speaker 1: Give you a real quick give us one name youlike 681 00:37:53,800 --> 00:37:56,520 Speaker 1: absolutely so in our Hennessy Gas Utility Funds, you know 682 00:37:56,760 --> 00:37:59,319 Speaker 1: I would point out Chesapeake Utilities. So I think in 683 00:37:59,360 --> 00:38:01,800 Speaker 1: a market like as you need, a great balance feats 684 00:38:01,800 --> 00:38:05,320 Speaker 1: some earnings growth and visibility. Chest of Peak's been raising 685 00:38:05,320 --> 00:38:11,080 Speaker 1: their dividend for nineteen consecutive years, nearly a two yield, 686 00:38:11,280 --> 00:38:14,320 Speaker 1: about nine and a half percent growth in that dividend 687 00:38:14,320 --> 00:38:18,840 Speaker 1: over the last five years. UH Natural Gas Utility josh 688 00:38:19,360 --> 00:38:24,120 Speaker 1: Pleasure Joshua and vice president portfolio manager at Hennessy Funds, Karen. 689 00:38:24,560 --> 00:38:26,719 Speaker 1: Thanks John. It is five ft three on wall straight 690 00:38:26,760 --> 00:38:28,960 Speaker 1: time for the Bloomberg Laura Board. We get to the 691 00:38:29,000 --> 00:38:32,440 Speaker 1: legal stories we're watching this morning from Bloomberg's Joan Donnegher. 692 00:38:35,480 --> 00:38:38,239 Speaker 1: A Florida federal court has ruled a law in Colorado 693 00:38:38,440 --> 00:38:40,879 Speaker 1: requires that cut in the damage is awarded an Army 694 00:38:40,960 --> 00:38:43,440 Speaker 1: veteran in a suit over three M combat ear plugs. 695 00:38:43,560 --> 00:38:46,080 Speaker 1: The veteran had been awarded fifty five million dollars by 696 00:38:46,080 --> 00:38:47,920 Speaker 1: a jury. The cut leaves him with just short of 697 00:38:47,960 --> 00:38:51,080 Speaker 1: two million. The Biden administrations pick to lead research and 698 00:38:51,120 --> 00:38:54,280 Speaker 1: development at the Environmental Protection Agency is a step closer 699 00:38:54,280 --> 00:38:56,520 Speaker 1: to confirmation The Senate voted to cut off debate on 700 00:38:56,600 --> 00:39:00,400 Speaker 1: Christopher Fry's nomination and the Biden administration suitable for pose 701 00:39:00,480 --> 00:39:03,320 Speaker 1: requiring major companies that do business with the federal government 702 00:39:03,400 --> 00:39:07,600 Speaker 1: to disclose their greenhouse gas emissions. Bloomberg Law everything you need, 703 00:39:07,840 --> 00:39:11,759 Speaker 1: all on one legal research platform, including guidance analysis and 704 00:39:11,800 --> 00:39:17,240 Speaker 1: Bloomberg Market Intelligence. Find out more at Bloomberg Law dot com. 705 00:39:17,280 --> 00:39:20,040 Speaker 1: All right, Joan, thank you, Now, another legal story we're watching. 706 00:39:20,120 --> 00:39:23,719 Speaker 1: Title fort h U, the COVID nineteen immigration policy, will 707 00:39:23,760 --> 00:39:27,560 Speaker 1: remain in place until legal proceedings play out, likely until 708 00:39:27,640 --> 00:39:30,840 Speaker 1: well into next year. A Louisiana federal judge made the 709 00:39:30,920 --> 00:39:33,760 Speaker 1: ruling in a case brought by twenty four Republican led states, 710 00:39:33,840 --> 00:39:36,440 Speaker 1: and it appears that the Biden administration is in no 711 00:39:36,600 --> 00:39:39,840 Speaker 1: rush to challenge the temporary injunction issued by the judge. 712 00:39:40,120 --> 00:39:42,440 Speaker 1: For more in the case, Bloomberg student Grosso speak to 713 00:39:42,480 --> 00:39:45,840 Speaker 1: Leon Fresco, a partner at Holland and Night Lenn explain 714 00:39:45,880 --> 00:39:50,360 Speaker 1: why the judge said the Biden administration can't rescind Title 715 00:39:50,440 --> 00:39:54,319 Speaker 1: forty two. Well, the judge had a few babies for 716 00:39:54,600 --> 00:39:59,080 Speaker 1: saying that the vital forty two revivision could not be 717 00:39:59,200 --> 00:40:03,160 Speaker 1: for displayed. And basically the first and the main rationals 718 00:40:03,200 --> 00:40:06,520 Speaker 1: that the judge said that the CDC needed to use 719 00:40:06,600 --> 00:40:10,400 Speaker 1: the a p A Notice and comments process in order 720 00:40:10,440 --> 00:40:14,799 Speaker 1: to revoke Title forty two, which is interesting because you 721 00:40:14,880 --> 00:40:18,800 Speaker 1: didn't need to actually use the notice and common process 722 00:40:18,880 --> 00:40:22,800 Speaker 1: to implement Title forty two. So it's a strange sort 723 00:40:22,840 --> 00:40:27,080 Speaker 1: of laws that would say you would need to actually 724 00:40:27,640 --> 00:40:31,120 Speaker 1: use notice and comments to resend Title forty two. Because 725 00:40:31,120 --> 00:40:35,960 Speaker 1: then secondly, the judge said that the CDC's rationale is overbroad. 726 00:40:36,760 --> 00:40:39,000 Speaker 1: The White House says it's going to comply with the 727 00:40:39,040 --> 00:40:42,120 Speaker 1: court's order, but it's going to feel the decision. Does 728 00:40:42,120 --> 00:40:46,280 Speaker 1: this indicate a prolonged legal battle that will most likely 729 00:40:46,440 --> 00:40:49,439 Speaker 1: end up at the Supreme Court? Well, yes, And what's 730 00:40:49,560 --> 00:40:54,160 Speaker 1: very interesting about what's occurred sort of the unreported nugget 731 00:40:54,280 --> 00:40:56,480 Speaker 1: for whatever reason out of all of this is that 732 00:40:56,520 --> 00:40:59,640 Speaker 1: even though the by administration has appealed, they appear not 733 00:40:59,800 --> 00:41:03,800 Speaker 1: to have asked for a say of the District Court's ruling. 734 00:41:03,960 --> 00:41:06,600 Speaker 1: And for what that means is they're not taking the 735 00:41:06,680 --> 00:41:10,400 Speaker 1: fast track on the field, they're taking the slow track 736 00:41:10,520 --> 00:41:16,000 Speaker 1: on appeal, which means that theoretically speaking, Title forty two 737 00:41:16,040 --> 00:41:19,719 Speaker 1: could be in place until well into three, maybe the 738 00:41:19,760 --> 00:41:23,800 Speaker 1: middle of Well, this brings me to a question I 739 00:41:23,840 --> 00:41:28,120 Speaker 1: believe I've asked you before. Is the Biden administration secretly 740 00:41:28,239 --> 00:41:34,000 Speaker 1: happy or relieved that this judge saved Title forty two. Well, 741 00:41:34,040 --> 00:41:37,440 Speaker 1: the only implication that one could draw from the fact 742 00:41:37,520 --> 00:41:41,520 Speaker 1: that they're not moving for a say of the district 743 00:41:41,560 --> 00:41:44,600 Speaker 1: judge disorder is that they want Title forty two to 744 00:41:44,640 --> 00:41:48,120 Speaker 1: remain in play. And I'm surprised they're not getting more 745 00:41:48,280 --> 00:41:52,600 Speaker 1: pushback from the immigration rights because the community on this side, 746 00:41:52,840 --> 00:41:55,359 Speaker 1: because at the end of the day, if you were 747 00:41:55,880 --> 00:41:59,040 Speaker 1: really intent on eliminating Title forty two as a policy, 748 00:41:59,440 --> 00:42:03,120 Speaker 1: you'd be put for a stay of the But apparently 749 00:42:03,160 --> 00:42:06,640 Speaker 1: there's just no desire to the Bloomer essay, which means 750 00:42:06,920 --> 00:42:09,759 Speaker 1: you'd go through the normal Fifth Circuit process, which could 751 00:42:09,760 --> 00:42:13,000 Speaker 1: take six months to a year, and then the Supreme 752 00:42:13,040 --> 00:42:15,879 Speaker 1: Court process, which could take another six months to a year. 753 00:42:16,320 --> 00:42:18,759 Speaker 1: And Les Leon Fresco, a partner at Holland and Nights, 754 00:42:18,760 --> 00:42:21,680 Speaker 1: speaking with Bloomberg student Gross So catch more of that interview, 755 00:42:21,719 --> 00:42:24,520 Speaker 1: plus analysis of the latest legal news, by subscribing to 756 00:42:24,560 --> 00:42:27,800 Speaker 1: the Bloomberg Law podcast or downloading the show at Bloomberg 757 00:42:27,840 --> 00:42:31,600 Speaker 1: dot com, Slash Podcast, Attorney's Confined, exceptional legal research and 758 00:42:31,640 --> 00:42:34,520 Speaker 1: business development tools at Bloomberg law dot com, and on 759 00:42:34,520 --> 00:42:39,080 Speaker 1: the Bloomberg terminal at b law go hand Still ahead. 760 00:42:39,080 --> 00:42:41,239 Speaker 1: On Bloomberg day Break, we have a check on the 761 00:42:41,239 --> 00:42:44,040 Speaker 1: business headlines and all the news you need to start 762 00:42:44,080 --> 00:42:46,520 Speaker 1: your day. 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