Speaker 1: Broadcasting live from the Bloomberg Interacted Broker's studio in New York,
Speaker 1: Bloomberg Living Freedom to Washington, d C. Bloomberg to Boston,
Speaker 1: Bloomberg one six one does San Francisco. Bloomberg and M
Speaker 1: sixteen to the country. Sirius XM had a one nine
Speaker 1: team and around the globe the Bloomberg Business and Bloomberg
Speaker 1: Radio dot Com. This is Bloomberg Daybreak. It's time thirty
Speaker 1: on Wall Street. Good morning, got John Tucker and I'm
Speaker 1: kerin Moscow, or just about four hours away from the
Speaker 1: open of US trading. Let's get you up to date
Speaker 1: on the news you need to know at this hour.
Speaker 1: SNP futures are little change this morning after the SMP
Speaker 1: climbed about one percent yesterday. We've been up and down
Speaker 1: all week as traders assessed the path of Fed policy.
Speaker 1: Jane Foley, as head of f X strategy at Rubble Bank,
Speaker 1: I think that is more likely to go the full monthy.
Speaker 1: They need to get their credibility back, you know, there's
Speaker 1: been so many accusations over the last few months they
Speaker 1: are behind the curve that they could affected sina on inflation.
Speaker 1: Even some of their own have admitted that perhaps they
Speaker 1: should have started to hike before they did. At the
Speaker 1: end of last to keep demand in check. Trainfoliot robo
Speaker 1: banks seized all their strength. Continuing minutes from the latest
Speaker 1: FED meeting show officials looking to raise interest rates by
Speaker 1: fifty basis points at each of their next two decisions.
Speaker 1: Is the time to buy the dipping stocks. That's according
Speaker 1: to strategist at the City Group, who say shares in
Speaker 1: Europe and emerging markets are the most attractive cities. Bear
Speaker 1: market checklist currently warning on just six of eighteen red flags.
Speaker 1: That compares to thirteen red flags before the two thousand
Speaker 1: and eight financial crisis. Well, big tech is in focus
Speaker 1: this morning. John after week earnings from Nvidia shares the
Speaker 1: chipmaker down five and a half percent. It says China's
Speaker 1: COVID lockdowns in the war in Ukraine will weigh on results,
Speaker 1: and he has said batt'll cut sales by about five
Speaker 1: hundred million dollars this quarter. We also have French news
Speaker 1: from Apple. Sources say the company plans to keep iPhone
Speaker 1: production flat this year as the environment turns challenging for
Speaker 1: the smartphone industry. At the same time, Apple boosting pay
Speaker 1: for its workers. The companies raise the US salaries by
Speaker 1: ten percent or more as it faces a tight labor
Speaker 1: market and efforts to unionize. Shares it down more than
Speaker 1: one well. Twitter is gaining in pre market trading. John
Speaker 1: after Elon must change plans to find his acquisition. He's
Speaker 1: no longer looking to use a margin loan for his
Speaker 1: forty four billion dollar purchase of the social media company,
Speaker 1: and Bloomberg's or Needy Young is here live with the story.
Speaker 1: Good Morning Renny to Good morning Karen. A regulatory filing
Speaker 1: shows Elon Musk is providing an additional six point to
Speaker 1: five billion dollars in equity financing to buy out Twitter.
Speaker 1: That'll increase the size of the deal's equity component to
Speaker 1: thirty three point five billion dollars, and it's enough to
Speaker 1: eliminate the margin loan. This new structure could reduce the
Speaker 1: risk of the deal for both Musk and his lenders,
Speaker 1: particularly given the recent slide in Tesla stock price. Shares
Speaker 1: of Tesla have sunk about forty percent since Musk first
Speaker 1: announced his stake in Twitter in early April. Live in
Speaker 1: New York. I'm gonna need a Young Bloomberg daybreak, all right,
Speaker 1: Thanks for Nita and ahead of the open on Wall
Speaker 1: Street to SMP futures right now they have turned flat.
Speaker 1: Nansday futures down thirty four down, futures up thirty four points.
Speaker 1: This is Bloomberg. That's not fine. Three on Wall Street.
Speaker 1: Time to bring in Michael Barr with Moore of when
Speaker 1: else is going on in New York and around the world, John,
Speaker 1: Thank you, Sarah. Texas Governor Greg Abbott says several concerning
Speaker 1: social media posts from the gunmen were discovered moments before
Speaker 1: the rampage began and rob elementary school in Uvalde. Twenty
Speaker 1: one people died before the eighteen year old gunmen was
Speaker 1: killed by law enforcement. Governor Rabbit brushed aside calls for
Speaker 1: strict gun legislation, noting that major cities have their own
Speaker 1: gun laws in place, but they don't work, and we
Speaker 1: need to realize that the people who think that, well,
Speaker 1: maybe we just implement tough for gun laws. It's gonna
Speaker 1: solve it. Chicago, in l A and New York disproved
Speaker 1: the thesis during the briefing. Beda O'Rourke, who is running
Speaker 1: against Abbot for governor, interrupted the news conference, saying this
Speaker 1: shooting was totally predictable. New York Governor Kathy Hoko wants
Speaker 1: to raise the age to one for purchasing the type
Speaker 1: of firearms used in recent mass shootings in Buffalo and Texas.
Speaker 1: The governor also says she held an emergency meeting with
Speaker 1: state police and I said, I want state police patrols
Speaker 1: visiting our schools doing daily check ins every single day
Speaker 1: from today to the end of the school year. Governor
Speaker 1: huncle the man accused of randomly murdering the passenger on
Speaker 1: the New York City subway train, was denied bail. During
Speaker 1: his first court appearance, Andrew Abdulla's lawyer urged the judge
Speaker 1: and the public not to rush to judgment. On the
Speaker 1: second anniversary of the death of George Floyd, President Biden
Speaker 1: signed an executive order to address police accountability. The executive
Speaker 1: order raises standards fans chokeholes, restricts, no knock warrants, use
Speaker 1: of force policies, emphasized de escalation and duty. Do you
Speaker 1: just stop another officer from using executive force? President Biden
Speaker 1: also criticized the Senate for not passing reforms and the
Speaker 1: George Floyd Justice and Policing Act. The Close Race between
Speaker 1: Trump backed Memodaz and David McCormick has triggered a recount
Speaker 1: in the Republican primary for a Pennsylvania US Senate seat.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than journalists and analyst
Speaker 1: more than twenty countries. Michael barn This is Bloomberg, John Michael,
Speaker 1: thank you as five thirty six Street. That's Dive the
Speaker 1: Bloomberg Sports Update. Here's Scott Seidenberg. Good morning, John rookie
Speaker 1: JP Sears made his first big league start, tossing five
Speaker 1: scoreless innings as the Yankees blanked the Orioles to nothing,
Speaker 1: both runs coming in the bottom of the fourth inning
Speaker 1: on a Miguel Andrew Hoar single and a throwing error.
Speaker 1: Prior to the game, the Yankees placed John Carlos Stanton
Speaker 1: on the day. I l Aaron Boone after the game,
Speaker 1: talked about the win with players stepping up. Yeah, I mean,
Speaker 1: it's been a tough couple of days for us, just
Speaker 1: just with you know, some people going down and things,
Speaker 1: and I'm really excited to see those guys step in
Speaker 1: and play key roles and help us get another series victory.
Speaker 1: It was a different story for the Mets. Rookie starter
Speaker 1: Thomas Sapucky, who was roughed up in his first big
Speaker 1: league start. Evan Longoria homer twice. Jock Peterson went deep
Speaker 1: for the fourth time in two games as the Giants
Speaker 1: route the Mets nine three. Sabucky tag for all nine
Speaker 1: runs on seven hits and three walks in just an
Speaker 1: inning and a third, the Mets losing back to back
Speaker 1: games for just the first time since April tenth and eleventh. Hockey. Tonight,
Speaker 1: it's Game five between the Rangers and the Hurricanes from Carolina,
Speaker 1: with the series tied at two games a piece. NBA,
Speaker 1: the Celtics are one win away from the NBA Finals
Speaker 1: after a night win over the Heat last night in Miami. Tonight,
Speaker 1: the Warriors look to close out the Mavericks in Game
Speaker 1: five of the Western Finals. Tennis, at the French Open,
Speaker 1: Raphael Nadal reached three hundred Grand Slam match victories with
Speaker 1: his second round win. Only Roger Federer with three sixty
Speaker 1: nine and Novak Djokovic with three twenty five have more
Speaker 1: wins at major tournaments. I'm Scott Edinburg with Bloomberg Sports.
Speaker 1: John all Right, Thanks Scott, five seven on Wall Street
Speaker 1: Time now for the tri State Business Report, and for
Speaker 1: that we're joined by Bloomberg's Ed Quarry. New York City's
Speaker 1: tax revenue will likely decline him in an economic slowdown
Speaker 1: due to the Fed's projected rate hikes this year. George Sweeting,
Speaker 1: the Budget office is Acting Director, says the agency has
Speaker 1: lowered its annual March tax revenue forecasts for the next
Speaker 1: three fiscal years due to plans by the FED to
Speaker 1: continue tightening monetary policy. Robert A. M. Stern is bringing
Speaker 1: his New York touch to West Palm Beach. The architect,
Speaker 1: whose firm designed some of the top residential buildings in
Speaker 1: New York, is working on a project in West Palm
Speaker 1: where prices are expected to set records for a city
Speaker 1: that was once seen as Palm Beach is less glamorous
Speaker 1: neighbor Bello Airlines begin serving the Windy City today with
Speaker 1: non stop service to Southern Connecticut from Chicago Midway. The
Speaker 1: airline stays the flight offers Chicago a more convenient and
Speaker 1: affordable gateway to the New England and New York areas
Speaker 1: that your Bloomberg Trying State Business Report. I'm d Corey, Thanks,
Speaker 1: said It is Fine thirty eight on Wall Street. Bloomberg
Speaker 1: Radio is on the air from San Francisco to New York,
Speaker 1: London to Hong Kong. Let's check in now with our
Speaker 1: global news team for some of the top stories heard
Speaker 1: on our three hundred at Filigate radio stations around the world.
Speaker 1: I'm Steve Potas scan Chen Chen Wins in New York.
Speaker 1: We're talking about how the biggest US cities got smaller
Speaker 1: during the pandemic um Cornyanahoan kat r H in Houston.
Speaker 1: Drivers are beginning to bault their record high gas prisis.
Speaker 1: I'm Carlin hit complement Debbie Digjelado. In London. We're reporting
Speaker 1: of how Forest Johnson's government is hoping to move on
Speaker 1: from the party Gate scandal with a package of new
Speaker 1: measures to help households hit by the cost of living crisis.
Speaker 1: I'm Gina Servettian for WDBM in Chicago. I'm reporting that
Speaker 1: the city has moved a step closer to getting its
Speaker 1: first ever casino. My mid Gory on w w J
Speaker 1: and Detroit, I'm reporting the Aloft Hotel Downtown will become
Speaker 1: part of Marriott's autograph collection. And those are some of
Speaker 1: the stories are twenty seven d Bloomberg journalists and analysts
Speaker 1: are working on this morning around the world. It is
Speaker 1: now thirty nine on Wall Street. The following is an
Speaker 1: editorial from Bloomberg Opinion. After a gunman killed nineteen children
Speaker 1: and two educators at a Texas elementary school this week,
Speaker 1: Americans responded with grief and anger as the collective shock subsized. However,
Speaker 1: it needs to give way to purposeful outrage. After all,
Speaker 1: no other country in the world has persistent mass shootings
Speaker 1: like this, and most American support passing common sense gun
Speaker 1: safety laws. From time to time, Congress has come close
Speaker 1: to acting than failed to. This is a dereliction of duty.
Speaker 1: Voters should marshal their anger and directed against politicians and
Speaker 1: interests who have persistently blocked reasonable reforms. The US is
Speaker 1: not yet at the point where mass shootings failed to
Speaker 1: elicit shock, sadness, and outrage, but that's not much comfort,
Speaker 1: especially when the steps we can take to prevent another
Speaker 1: massacre or so manifestly before us. This editorial was written
Speaker 1: by the Bloomberg Opinion Editorial Board. I'm David Shipley. For
Speaker 1: more Bloomberg Opinion, please got to Bloomberg dot com. Slash
Speaker 1: opinion or opia and go on the Bloomberg terminal. This
Speaker 1: has been Bloomberg Opinion. Bloomberg Opinion editorials can be heard
Speaker 1: every week day at this time, terminal customers read Moore
Speaker 1: at opie, I n go dal futures right now turned
Speaker 1: up thirty eight points and sop futures unchanged, and then
Speaker 1: astag is still lower there down thirty six points. You're
Speaker 1: listening to Bloomberg Daybreak and the weather forecast for today cloudy,
Speaker 1: maybe a shower, high around seventy. Tomorrow, cloud showers, thunderstorms. Saturday,
Speaker 1: showers and storms Sunday partly Sunday Memorial Day, mix of
Speaker 1: sun and plows, high eighty by from the Bloomberg Interactive
Speaker 1: Brooker's Studios is Bloomberg day Break for a Thursday May
Speaker 1: coming up this hour. Big Tech feels the pinch of
Speaker 1: supply chain bottlenecks and COVID lockdowns. Elon must survive. Twitter
Speaker 1: bids send shares higher in the pre market, and President
Speaker 1: Biden signs that key executive order. Two years after George
Speaker 1: Floyd's death, New York Governor hukel wants to raise the
Speaker 1: aged by guns plus the alleged gunmen in Sunday's deadly
Speaker 1: subway shooting is being held without mail. I'm Michael Blarr.
Speaker 1: More ahead, I'm Scottsburg. Yi's win the Mets losing the
Speaker 1: Rangers go for a three tiers series lead today. I'll
Speaker 1: have that more coming up in the sports. That's all
Speaker 1: trendy ahead on Bloomberg Daybreak on Bloomberg eleven Free on
Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh
Speaker 1: six one Boston, Bloomberg nine sixty San Francisco, Sirius Exam
Speaker 1: one nine team and around the world on Bloomberg Radio
Speaker 1: dot Com and via the Bloomberg Business App. And good morning.
Speaker 1: I'm Karen Moscow and I'm John Tucker. Bloomberg Daybreak being
Speaker 1: brought to you by Informatica. In the cloud, your data
Speaker 1: has the power to do the extraordinary. Managed data across
Speaker 1: any location. Of the clowns were accurate and actionable insights
Speaker 1: more at Informatica dot Com, and futures are lower being
Speaker 1: dragged down by technology shares. We're coming up to five
Speaker 1: o one on Wall Street and we checked the markets
Speaker 1: every fifteen minutes throughout the trading day on Bloomberg. Right now,
Speaker 1: NOWSDACK futures are down fifty four points. That's down almost
Speaker 1: half percent. Doesn't P futures down about five points, and
Speaker 1: down futures are a little changed. John and Karen, it
Speaker 1: looks like markets are looking for direction this morning. It's
Speaker 1: been an up and down week. The nasdacks lower in
Speaker 1: early trading following some shake ups in big tech. Pepper
Speaker 1: International founder and CEO Carol Pepper believes the outlook remains
Speaker 1: strong despite uncertainty when prices get too high on goods.
Speaker 1: Right now, consumers are backing off this diflation instence that
Speaker 1: you have high inflation and that the prices and no growth.
Speaker 1: I just don't think that's going to happen anymore. I
Speaker 1: really think we're going to be much more in a
Speaker 1: situation where inflation will start tapering down and then we'll
Speaker 1: start to get into more normalized market, probably by the
Speaker 1: end of the year. Pepper International founder Carol Pepper also
Speaker 1: believes the US will avoid a recession this year. Well. John,
Speaker 1: Cheers and Video are down in early trading, though off
Speaker 1: their lowest levels. They slid as much as ten percent
Speaker 1: after earnings missed estimates, and in Video said China's COVID
Speaker 1: lockdowns and the war in Ukraine are weighing on sales forecast.
Speaker 1: The chipmaker CEO also says it's doing its best to
Speaker 1: combat supply chain Bottlenecks shares her down about six percent
Speaker 1: in the pre market, and Apple also of those shaking
Speaker 1: up Nasdaq features with a couple of announcements. Sources say
Speaker 1: the company plans to keep iPhone production flat this year.
Speaker 1: It's a supplies to assemble approximately two million iPhones. It's
Speaker 1: about the same as last year. Apple also revealed it's
Speaker 1: raising salaries for US workers by ten percent. Bloom very
Speaker 1: quick to Canker alex webs it's it's an important step
Speaker 1: to retain workers. You have two things where you've got
Speaker 1: this unionization threat on, which is something which has been
Speaker 1: happening across a bunch of tech companies, at least Amazon.
Speaker 1: So there's a suspicion this is sort of trying to
Speaker 1: fend that off and say what we pay you pretty
Speaker 1: well already. There's also the threats of people hiring both
Speaker 1: the engineers but also from those stores, and Bloomberg's alex
Speaker 1: webs as the Apple's biggest number of employers comes from
Speaker 1: its stores. Shares of Apple down one percent in early
Speaker 1: training Well John Yesterday's FED minutes also driving markets this morning,
Speaker 1: officials revealed a less unkish tone then expected. They plan
Speaker 1: to raise interest rates by fifty basis points at each
Speaker 1: of the next two meetings, leaving their with flexibility to
Speaker 1: change course later. And another FED no there's where the
Speaker 1: Kansas City Fed president Esther George will retire in January.
Speaker 1: George will leave her post at about the same time
Speaker 1: a Chicago FED chief, Charles Evans bat will create two
Speaker 1: openings among the twelve regional FED banks next year. Stocks
Speaker 1: in Europe opening to hire. This morning, John Energy shares
Speaker 1: are leading the stock six D following games and oil
Speaker 1: prices Overnight. In Asia, stocks were shoppy following concerning comments
Speaker 1: from a top Chinese official and Bloomberg. Juliet Sally joins
Speaker 1: us with the details from Singapore. Julie, A good morning,
Speaker 1: Good morning, John, and Karen. Chinese stokes fluctuated, while bonds
Speaker 1: rallied and the off show you one led Asian e
Speaker 1: m f f X losses as premierly one. China's economy
Speaker 1: is in some respects faring worse than in Japanese stocks
Speaker 1: edged up on reopening prospects, and Ali Baba was in
Speaker 1: focus in Hong Kong ahead of its earnings report. The
Speaker 1: Korean one weekend after the Bank of Korea raised its
Speaker 1: key interest rate on Thursday and indicated further hikes are coming,
Speaker 1: as it indicated stabilizing inflation is its key goal. In Singapore,
Speaker 1: Juliette Sale Bloomber Daybreak, Juliet Thanks. Back here in the US,
Speaker 1: there's more news from the text actor. Twitter shares higher
Speaker 1: in early trading after Elon Musk changed plans to fund
Speaker 1: his acquisition. He's no longer looking to use a margin
Speaker 1: loan for his forty four billion dollar purchase of the
Speaker 1: social media company, and bloom Versus Nia Young is here
Speaker 1: live with the story. Good morning Nita, Good morning John.
Speaker 1: A regulatory filing shows Elon Musk is providing an additional
Speaker 1: six point to five billion dollars in equity financing to
Speaker 1: buy out Twitter. Bat will increase the size of the
Speaker 1: deal's equity component to thirty three point five billion dollars,
Speaker 1: and it's enough to eliminate the margin loan. Now, this
Speaker 1: news structure could reduce the risk of the deal for
Speaker 1: both Musk and his lenders. Particularly given the recent slide
Speaker 1: in Tesla's stock price. Shares of Tesla have sunk about
Speaker 1: forty since Musk first announced his stake in Twitter in
Speaker 1: early April. Live in New York, I'm Rnita Young bloom
Speaker 1: birthday break all right, Renia, thank you? Returned to politics now.
Speaker 1: In the latest move from the White House, two years
Speaker 1: to the day since George Floyd's and death, President Joe
Speaker 1: Biden signed an executive order aimed at law enforcement accountability
Speaker 1: and Bloomberg's dead. Bacheter has the story. President Biden, along
Speaker 1: with Vice President Kamala Harris, as the administration couldn't wait
Speaker 1: any longer for the Senate to pass legislation, and Harris
Speaker 1: says it's not aimed at hurting police, but communication to
Speaker 1: strength and trust between law enforcement and the communities they served.
Speaker 1: It creates a new National Law Enforcement Accountability Database to
Speaker 1: track records of misconduct so that an officer can't hide
Speaker 1: the misconduct, and mandates the use of body cameras and
Speaker 1: record keeping. He says the administration will continue to try
Speaker 1: and get legislation passed. In San Francisco, I'm at Baxter
Speaker 1: Bloomberg Gay break anything said and in Pennsylvania. This morning,
Speaker 1: high profile Republicans setate race headed for a recount. Amy
Speaker 1: Morris has the tales from our Bloomberg newsroom. In Washington.
Speaker 1: Celebrity doctor memit Oz, who has Donald Trump's support, leads
Speaker 1: former Bridgewater Associate It's CEO David McCormick by nine two votes.
Speaker 1: That's enough to trigger an automatic recount. Pennsylvania's Acting Secretary
Speaker 1: of State Lee Chapman says previous recounts and similar type
Speaker 1: races in the past have not changed the results of
Speaker 1: the elections. Counties have to begin the recount by June one,
Speaker 1: and they must be completed by June seven. In Washington,
Speaker 1: I'm Amy Morris, Bloomberg Day Break, right, Amy, thank you,
Speaker 1: SMP Future is down about six points this morning, down,
Speaker 1: Futures down eleven, NASDAG Futures down fifty three straight, A
Speaker 1: hand your latest local headlines plus a check of sports,
Speaker 1: and this is Bloomberg, right, Thanks Karen five. How settled
Speaker 1: on Wall Street? Hanton to bring in Michael Barr with
Speaker 1: Moore on what else is going on in New York
Speaker 1: and around the world, John, Thank you very much, sir.
Speaker 1: Investigators say they have yet to determine a motive for
Speaker 1: mass shooting at a Texas grade school that left twenty
Speaker 1: one dead. Governor Abbott says the only warning game in
Speaker 1: a series of private Facebook messages sent Tuesday morning, he said,
Speaker 1: I'm going to shoot my grandmother. The second post was
Speaker 1: I shot my grandmother. The third post, maybe less than
Speaker 1: fifteen minutes before arriving at the school, was I'm going
Speaker 1: to shoot an elementary school. Kevinor Rabbit called the eighteen
Speaker 1: year old gunman a demented person. Meanwhile, Houston, Texas, is
Speaker 1: preparing for protests of a National Rifle Association convention beginning tomorrow.
Speaker 1: Former President Trump is expected to attend. New York Governor
Speaker 1: Kathy Hocle is called for raising the age to twenty
Speaker 1: one for purchasing assault weapons. HOCl says she wants to
Speaker 1: raise the legal persons gage for a R fifteen style rifles.
Speaker 1: That's the same type of weapon used in Tuesday's match
Speaker 1: shooting in Texas that left twenty one people dead, including
Speaker 1: nineteen children. We must harness that outrage and that anger,
Speaker 1: and that discussed that there could be someone with such
Speaker 1: want and evil in their heart that they would acquire
Speaker 1: and they are fifteen go to a schoolyard after shooting
Speaker 1: their own grandmother and opening up an innocent children and teachers.
Speaker 1: Governor Local says, I don't want eighteen year olds to
Speaker 1: have guns, at least not in the state of New York.
Speaker 1: A man accused a randomly murdering a fellow passenger on
Speaker 1: the New York City subway train has made his first
Speaker 1: court appearance. A lawyer urged the judge and the public
Speaker 1: not to rush the judgment, and Drew Abdulla was ordered
Speaker 1: held without bail on the death of forty eight year
Speaker 1: old Daniel Enriquez, who was on his way to a
Speaker 1: Sunday brunch in Manhattan when he was shot. Democrat Antonio
Speaker 1: Delgado has been sworn in as New York's Lieutenant Governor,
Speaker 1: becoming the state's first person of Latino heritage to serve
Speaker 1: in statewide office. Delgado takes over for Brian Benjamin, who
Speaker 1: resigned following his arrest in April for federal corruption charges.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg quick Take, powered by more than twenty seven
Speaker 1: hundred journalists and analysts more than a hundred twenty countries.
Speaker 1: Mike barn this is Bloomberg, John Michael, thank you. It's
Speaker 1: not fine tent on the wall street to have this
Speaker 1: time of the Bloomberg Sports Up today. Here's Scott Seidenberg.
Speaker 1: Thanks John. The Mets felt to the Giants yesterday. Rookie
Speaker 1: Thomas Szafucky was roughed up in his first big league start.
Speaker 1: Evan Longoria homer twice, Jock Peterson one t for the
Speaker 1: fourth time in two games as the Giants beat the
Speaker 1: Mets nine three For Zapucky, he allowed nine runs on
Speaker 1: seven hits and three walks in just an inning and
Speaker 1: a third. A much different result for Yankees rookie pitcher J. P. Sears,
Speaker 1: making his first big league start. Sears tossed five scoreless
Speaker 1: innings as the Yankees blank the Orioles to nothing. Hockey tonight,
Speaker 1: Game five between the Rangers and Hurricanes from Carolina. Here's
Speaker 1: head coach Gerard Glenn. If we played them two wheel
Speaker 1: their games in the building last week, and you know
Speaker 1: we didn't meant whether the win, but we played two
Speaker 1: good hockey games. So I gotta keep working, keep playing,
Speaker 1: and it's gonna be a big game five and their building. NBA.
Speaker 1: The Celtics beat the Heat ninety three. There now one
Speaker 1: win away from a trip to the NBA Finals. Tonight,
Speaker 1: the Warriors look to close out the Mavericks in game
Speaker 1: five of the Western Finals. Tennis, at the French Open,
Speaker 1: raining women's singles and doubles champ Barbara Krutchykova was upset
Speaker 1: in the first round on Monday, and now she will
Speaker 1: not defend her doubles title as the world's number two
Speaker 1: player tested positive for COVID nineteen. Elsewhere, Raphael Nadal reached
Speaker 1: the three hundred Grand Slam match victories with his second round.
Speaker 1: Women only Roger Federer with three sixty nine and Novak
Speaker 1: Djokovic with three twenty five have more wins at major tournaments.
Speaker 1: I'm Scott Sidinburg with Bloomberg Sports. John alright, thanks so Scott,
Speaker 1: and headed the cash shows on Wall Street. We have
Speaker 1: futures right now kind of treading water down. Futures down
Speaker 1: just to seven points smp E. Many futures just to
Speaker 1: fine points slower right now. That's down a tenth of
Speaker 1: a percent, and the tech of a nasday features fifty
Speaker 1: two points slower. That he's down four tenths of a percent.
Speaker 1: As we look for a measure volatility, wall streets, fear gage,
Speaker 1: the VIX right now twenty eight forty two, and the
Speaker 1: Euro unchanged tod one oh six eight one. The ten
Speaker 1: year yield in the US two point seven That is
Speaker 1: down two basis points this morning, and you're listening to
Speaker 1: Bloomberg day Break. Day Break brown to you by the
Speaker 1: New York Community Trust. Your name will live on as
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Speaker 1: and breaking news twenty four hours a day at Bloomberg
Speaker 1: dot com, the Bloomberg Business at and at Bloomberg Quicktape.
Speaker 1: This is a Bloomberg Business lash, and I'm Cameron. Moscow
Speaker 1: Technology shares leading futures lower this morning. Traders also weighing
Speaker 1: Federal Reserve minutes that struck a less hawkish tone, and
Speaker 1: we checked the markets every fifteen minutes throughout the trading
Speaker 1: day on Bloomberg. Right now NOWASDACK futures are down about
Speaker 1: forty seven points, SMP futures are little change, so are
Speaker 1: Dow futures, and the decks in Germany is up about
Speaker 1: four tenths of upper cent. The ten year treasury up
Speaker 1: six thirty seconds, the l two point seven to two percent.
Speaker 1: They yield on the two year two point four six percent.
Speaker 1: Nimex screwed oil is up seven tenths percent or seventy
Speaker 1: five cents at a hundred eleven dollars eight cents in barrel.
Speaker 1: Comex gold is down to ten percent or three dollar
Speaker 1: sixty cents at eighteen forty eight ninety announce the Euro
Speaker 1: one point oh six eight one against the dollar, British
Speaker 1: bound one point to five five nine and again one
Speaker 1: twenty six point seven two, and bitcoins lower down more
Speaker 1: than two percent at twenty nine thousand, one hundred dollars. Today,
Speaker 1: we're looking for a second read on first quarter gross
Speaker 1: domestic product at at eight thirty Wall Street time, along
Speaker 1: with the weekly report and initial jovless claims. Pending home
Speaker 1: sales are out of ten and Macy's is among companies
Speaker 1: schedule to report earnings today. That's a Bloomberg business flash.
Speaker 1: Now here's Michael bar with more on what's going on
Speaker 1: around the world. Michael, thank you very much. The father
Speaker 1: of a child killed by a shooting rampage at the
Speaker 1: Texas Elementary schools says police were slow to move in
Speaker 1: and were unprepared. Javier Caserras says the father of the
Speaker 1: fourth grader, Jacqueline Cassara's one of the nineteen youngsters who
Speaker 1: died along with two teachers in the classroom at rob
Speaker 1: Elementary School in Uvalde. However, they had of the Texas
Speaker 1: Department of Public Safety says law enforcement immediately engaged the
Speaker 1: shooter and contained him in the classroom. Global News twenty
Speaker 1: four hours a day on air and on Bloomberg quick Take,
Speaker 1: powered by more journalist analysis more than a hundred twenty countries.
Speaker 1: Michael Barr and this is Bloomberg, John, Michael, thank you.
Speaker 1: Find nineteen on Wall Street. We're lying for the Bloomberg
Speaker 1: interactor Broker's Studios. This is Bloomberg day Break. We'd like
Speaker 1: you to bring an interview now from the World Economic
Speaker 1: Forum at Davos, Fidelity CEO and Richards sat down with
Speaker 1: Bloomberg's Francine Laka for a conversation about market volatility and
Speaker 1: food price is and how long she expects the uncertainty
Speaker 1: might last. Let's listen to that interview right now. I
Speaker 1: know you're always extremely thoughtful about the markets. I don't
Speaker 1: know what it feels like from where you're sitting today.
Speaker 1: Are you worried about the future or are the glimmers
Speaker 1: of hope? Well, there's always a goolders of hope. We're
Speaker 1: never completely without hope. But it's a pretty tough environment. Um.
Speaker 1: I think when you look at where we've come from,
Speaker 1: an extent of the correction that you've come from, you
Speaker 1: definitely in equity markets have seen a fairly substantial d
Speaker 1: rating and probably that's pretty much run its course, and
Speaker 1: now it's all about what the earnings patterns are from
Speaker 1: here and obviously what the central banks managed to do
Speaker 1: in terms of bringing inflation under control. So are you
Speaker 1: expecting a lot more of a correction when it comes
Speaker 1: to some of the earnings that weansaw that margins and
Speaker 1: extremely difficult for certain, you know, parts of the industries
Speaker 1: to pass on higher consumer inflation. The risk of her
Speaker 1: recession has unquestionably gone up. I'm not certain yet that
Speaker 1: all parts of the world are going to go into recession.
Speaker 1: Markets are discounting mechanisms, so they've discounted part of that.
Speaker 1: But clearly if the backdrop of economic environment accelerates in
Speaker 1: a downward direction, I think you could see more volatility markets.
Speaker 1: So I don't think we're through this period yet, but
Speaker 1: I think there is some hope that possibly we could
Speaker 1: be seeing the peak of the bearishness. But we're not
Speaker 1: quite through it yet. So what happens in the next
Speaker 1: couple of quarters? And how difficult is that to predict
Speaker 1: for an asset manager? Does it change the way you work? Look,
Speaker 1: it's terribly difficult to predict. And that's you know that.
Speaker 1: I think, as you know, this kind of environment, which
Speaker 1: is like a turning point and sentiment a turning point
Speaker 1: in the sort of economic backdrop, really really difficult. And
Speaker 1: of course we're coming into this from a very unusual cycle, right,
Speaker 1: So we've had a compressed, deep procession followed by the
Speaker 1: most extraordinary bounce back, and then on top of that
Speaker 1: you've had these external supply shocks, first of all on
Speaker 1: the oil price side um and then of course with
Speaker 1: the second wave, big wave of COVID in China with
Speaker 1: the sort of contraction if you can my activity there
Speaker 1: and the stumbling blocks that have been put in on
Speaker 1: the supply chain, that has been sort of a double
Speaker 1: external shock which has once again put this huge amount
Speaker 1: of grit into the economic machinery. That being said, I
Speaker 1: think you're starting to see the Shanghai situation in particular improve,
Speaker 1: which I think is a is a big take, and
Speaker 1: where we get to on the oil price, the gas price,
Speaker 1: I think is the next big thing that you sort
Speaker 1: of hang on. But as I think, so, what do
Speaker 1: you what do you do when you face into this?
Speaker 1: I think diversification is extremely important in that we think
Speaker 1: probably that in terms of bond markets, it will be
Speaker 1: credit spreads that take the strain rather than the bond
Speaker 1: market itself. That if you like treasury so I think,
Speaker 1: you know, government bonds probably feel less volatile from here
Speaker 1: rather than than credit. But it is still quite a
Speaker 1: challenging environment, and I think we've probably got another two
Speaker 1: quarters at least of volatility as we see this economic
Speaker 1: backdrop gradually ease a little bit, and then we'll be
Speaker 1: looking towards the four quarter maybe to see a little
Speaker 1: more clarity. Your clients and want exposure to China. Interesting.
Speaker 1: So we're still seeing quite positive sentiment on China, and
Speaker 1: notwithstanding the sort of more difficult backdrops that we've seen,
Speaker 1: it's such an important and major part of the world economy,
Speaker 1: and that probably is a part of the world where
Speaker 1: you'll see economic activity resume more quickly. And so we're
Speaker 1: definitely still seeing quite a lot of positive sentiment towards
Speaker 1: towards China, particularly given the correction that you've seen quite
Speaker 1: a lot of market there. We caught up at a
Speaker 1: dinner yesterday and he said, I want to come on
Speaker 1: and talk about the effort and and dragon food. How
Speaker 1: do we look at food and stood and stations. Food security?
Speaker 1: Is this, you know, the biggest challenge of our time.
Speaker 1: So one of the things that has been just both um,
Speaker 1: I think really constructive about the conversations this week is
Speaker 1: how the risk of a food crisis has gone right
Speaker 1: up the agenda, and you've see a tremendous amount of
Speaker 1: leaning in from all sorts of parts of both the
Speaker 1: political and if you like, the corporate infrastructure to figure
Speaker 1: out how can we avert a major food crisis. Some
Speaker 1: good news overnight about maybe beginning to find a way
Speaker 1: where we might get some of the grain out of Ukraine,
Speaker 1: and that is a really really important step and all
Speaker 1: of us we're not there yet, but I think it's
Speaker 1: been one of those examples were actually getting people physically
Speaker 1: together talking constructively. Of course, President Zelenski challenged everybody on Monday, like,
Speaker 1: you know, you've got to get on top of these people. Um,
Speaker 1: and I think you've definitely seen some of those conversations progressed.
Speaker 1: So we're not out of the woods yet on that,
Speaker 1: but I think we have made real progress this week
Speaker 1: and actually figuring out what it is we need to
Speaker 1: do to make sure that food and the food chain
Speaker 1: does not get weaponized in times of war. And if
Speaker 1: we've managed to achieve that this week, I think that
Speaker 1: will be a tremendous, tremendous result for down that CEO
Speaker 1: and Richard speaking with Bloomberg's Francy and look at the
Speaker 1: World the Economic Forum in on Most, Switzerland. You can
Speaker 1: catch more of that interview online at Bloomberg dot com.
Speaker 1: Ahead of the open on Wall Street, futures of term
Speaker 1: mixed DAL future is now up forty points. That's up
Speaker 1: one tenth of a percent. SMP future is a point
Speaker 1: higher than ASDACK futures down thirty five. This is Bloomberg
Speaker 1: Day Break. The Bloomberg weather for it today for a
Speaker 1: meteorologist Rock Caroline, mostly cloudy then maybe a shower later
Speaker 1: today the heights, amperature about seventy degrees cloudy to nine
Speaker 1: chances showers blows in the mid sixties. Markets headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com,
Speaker 1: the Bloomberg Business apt and at Bloomberg Quick Tape. This
Speaker 1: is a Bloomberg Business Flash and I'm Karen Moscow. And
Speaker 1: US stock index futures haven't fluctuating this morning. Mrs Trader's
Speaker 1: way Federal Reserve minutes has struck a less hawkish note
Speaker 1: right now. It's in p futures are up nine points down,
Speaker 1: futures are up one hundred one and as deck futures
Speaker 1: are little change. The decks in Germany's up six tensive
Speaker 1: upper cent ten year treasury of three thirty seconds yell
Speaker 1: two point seven three percent, the yield on a two
Speaker 1: year two point four six percent. Nimex screwed oil is
Speaker 1: up one percent of a dollar ten at a hundred
Speaker 1: eleven dollars forty four cents of barrel Comic school is
Speaker 1: down two ten percent or two dollars seventy cents at
Speaker 1: eighteen forty nine eight and ounce. The euro one point
Speaker 1: oh six nine six against the dollar, British pound one
Speaker 1: point to five nine three and the end one twenty
Speaker 1: six point seven six. Looking at bitcoin, it's down two
Speaker 1: percent at twenty nine thousand, one hundred eighty dollars, and
Speaker 1: that's a bloomberg business flash. Now here's Michael Barr with
Speaker 1: more on what's going on around the world. Muchael, Karen,
Speaker 1: thank you very much. Across the country, law enforcement and
Speaker 1: school officials are ramping up security in the wake of
Speaker 1: the taxis shooting that left nineteen school children and two
Speaker 1: teachers dead. The retired police officer killed while trying to
Speaker 1: stop the government in a race attack at a Buffalo
Speaker 1: supermarket was laid to rest. Erin Salter was possimately promoted
Speaker 1: to lieutenant and awarded the Medal of Honor. Another big
Speaker 1: planeload of baby formula has arrived in the United States
Speaker 1: to help these the shortage worried by parents that they're
Speaker 1: facing trying to feed their babies. In the NBA Playoffs,
Speaker 1: the Celtics beat the Heat Boston is now a game
Speaker 1: away from advancing to the finals. In baseball, the Yankees
Speaker 1: shut out the Orioles to zip. The Giants beat the Mets,
Speaker 1: the Red Sox loss the Nationals, and a'es one Global
Speaker 1: News twenty four hours a day on air, end on
Speaker 1: Bloomberg Quick Take, powered by more than dred journalists analysts
Speaker 1: more than twenty countries. I'm Michael bar This is Bloomberg, John, Michael,
Speaker 1: thank you. It is fine forty nine on Wall Street.
Speaker 1: We are blive from the Bloomberg into a hand to
Speaker 1: broker studios. Let's get you set up at the trading
Speaker 1: day ahead. We are joined now by Josh Wide, Vice
Speaker 1: president portfolio manager Hennessy Funds. Josh, good morning, Thanks for
Speaker 1: being with us. Can you make the bowl case for
Speaker 1: stocks this morning? Good to be with you. I'll certainly try. Yeah.
Speaker 1: Very bullish on the market, notwithstanding some some incredible volatility
Speaker 1: that we've seen. So yeah, I think that where we
Speaker 1: are right now, you know, certainly, you know, since late March,
Speaker 1: we've just had lower lows and lower highs on the market.
Speaker 1: But taking a step back, you know, we we are
Speaker 1: at about sixteen times earnings two thousand, twenty three earnings,
Speaker 1: so we've got about a six percent earnings yield. Uh,
Speaker 1: we have a ten year that can't get above three.
Speaker 1: We're at about to eight, so that six verses eight,
Speaker 1: six verses to eight is pretty compelling. I mean, so
Speaker 1: that's where we were before we started talking about a
Speaker 1: pandemic two or three years ago. Uh. One thing that
Speaker 1: I was looking at, you know, we talked a lot
Speaker 1: about cash on the balance sheet of SMP five companies
Speaker 1: at about seven point four trillion, so a lot of cash.
Speaker 1: But I think even more importantly is just kind of
Speaker 1: where we are now versus you know, several years ago.
Speaker 1: So you know, net debt, you know cash. You know,
Speaker 1: as a we look at debt and then cash and
Speaker 1: then in offer in cash flows. So the ratio from
Speaker 1: of net debt to IBADA is less than one, and
Speaker 1: so putting that in perspective, at the end of oh eight,
Speaker 1: it was above three. So I think that we are
Speaker 1: on solid footing balance sheet wise, liquidity wise, evaluation wise.
Speaker 1: So yeah, I think it's a great setup. Uh you know,
Speaker 1: once we get a little bit more clarity around interest
Speaker 1: rate hikes, I think we're we're good for another leg higher.
Speaker 1: How does it set us up for earning season going forward? Yeah, well,
Speaker 1: earning season has absolutely been tough. So I think what
Speaker 1: people thought would be relatively safe, you know, things like
Speaker 1: retail Target, Walmart, things of that nature we now see
Speaker 1: and and I guess in retrospect we all should have
Speaker 1: known it, but we've maybe chose to ignore it. That
Speaker 1: you know, there are some pressures from you know, higher
Speaker 1: gas prices and that comes into gross margins and and
Speaker 1: certainly you know, shipping costs and the consumers feeling it
Speaker 1: clearly in their wallet. I think there's this big reset
Speaker 1: and so certainly this is where we see the results
Speaker 1: of what's been going on for so long, all this
Speaker 1: liquidity flowing into the system and and you know, higher
Speaker 1: fuel prices. So I think that this is a transition period.
Speaker 1: We've seen realized volatility just in the last year nearly double.
Speaker 1: So certainly people don't know what to make of all
Speaker 1: of this. But you know, I think that you know,
Speaker 1: it's not forever, and I think that you know, it's
Speaker 1: just a natural progression as we see higher rates and
Speaker 1: and hopefully some kind of a pause towards the end
Speaker 1: of the year. You interpret the FED venace as being
Speaker 1: less hawkish. I think that they're more flexible. I think
Speaker 1: that you know, the Feds certainly unfortunately, I think with
Speaker 1: the markets realizing just in the last few months, is
Speaker 1: that the FED supply isn't going to come to the
Speaker 1: rescue here, so inflation is now going to have to
Speaker 1: be dealt with on the demand side. So they, you know,
Speaker 1: without maybe saying it explicitly, they need to destroy a
Speaker 1: little bit of demand from the consumer and so that
Speaker 1: certainly not pleasant news. It's it's a tough way to
Speaker 1: deal with it all, but it has to be done.
Speaker 1: So uh, you know, I think that the Fed is
Speaker 1: doing what they're doing. They're gonna, you know, stick with
Speaker 1: the plan kind of some fifty basis point moves. But
Speaker 1: I think towards the end of the year, this idea
Speaker 1: that they would have some flexibility that you know, take
Speaker 1: a step back is welcome news. We saw the market
Speaker 1: rally on that, so yeah, and and build on that
Speaker 1: very a little bit. You know, I think they need
Speaker 1: to deuce to do these rate hikes. You know, they
Speaker 1: need some room to maneuver in the case of some
Speaker 1: kind of big you know, shocked to the market, and
Speaker 1: they didn't have that up until until late so you know,
Speaker 1: it would be hard to cut when there's nothing to cut.
Speaker 1: So now there's something to cut in the future, but
Speaker 1: they still do need to raise rates in the near term.
Speaker 1: Give you a real quick give us one name youlike
Speaker 1: absolutely so in our Hennessy Gas Utility Funds, you know
Speaker 1: I would point out Chesapeake Utilities. So I think in
Speaker 1: a market like as you need, a great balance feats
Speaker 1: some earnings growth and visibility. Chest of Peak's been raising
Speaker 1: their dividend for nineteen consecutive years, nearly a two yield,
Speaker 1: about nine and a half percent growth in that dividend
Speaker 1: over the last five years. UH Natural Gas Utility josh
Speaker 1: Pleasure Joshua and vice president portfolio manager at Hennessy Funds, Karen.
Speaker 1: Thanks John. It is five ft three on wall straight
Speaker 1: time for the Bloomberg Laura Board. We get to the
Speaker 1: legal stories we're watching this morning from Bloomberg's Joan Donnegher.
Speaker 1: A Florida federal court has ruled a law in Colorado
Speaker 1: requires that cut in the damage is awarded an Army
Speaker 1: veteran in a suit over three M combat ear plugs.
Speaker 1: The veteran had been awarded fifty five million dollars by
Speaker 1: a jury. The cut leaves him with just short of
Speaker 1: two million. The Biden administrations pick to lead research and
Speaker 1: development at the Environmental Protection Agency is a step closer
Speaker 1: to confirmation The Senate voted to cut off debate on
Speaker 1: Christopher Fry's nomination and the Biden administration suitable for pose
Speaker 1: requiring major companies that do business with the federal government
Speaker 1: to disclose their greenhouse gas emissions. Bloomberg Law everything you need,
Speaker 1: all on one legal research platform, including guidance analysis and
Speaker 1: Bloomberg Market Intelligence. Find out more at Bloomberg Law dot com.
Speaker 1: All right, Joan, thank you, Now, another legal story we're watching.
Speaker 1: Title fort h U, the COVID nineteen immigration policy, will
Speaker 1: remain in place until legal proceedings play out, likely until
Speaker 1: well into next year. A Louisiana federal judge made the
Speaker 1: ruling in a case brought by twenty four Republican led states,
Speaker 1: and it appears that the Biden administration is in no
Speaker 1: rush to challenge the temporary injunction issued by the judge.
Speaker 1: For more in the case, Bloomberg student Grosso speak to
Speaker 1: Leon Fresco, a partner at Holland and Night Lenn explain
Speaker 1: why the judge said the Biden administration can't rescind Title
Speaker 1: forty two. Well, the judge had a few babies for
Speaker 1: saying that the vital forty two revivision could not be
Speaker 1: for displayed. And basically the first and the main rationals
Speaker 1: that the judge said that the CDC needed to use
Speaker 1: the a p A Notice and comments process in order
Speaker 1: to revoke Title forty two, which is interesting because you
Speaker 1: didn't need to actually use the notice and common process
Speaker 1: to implement Title forty two. So it's a strange sort
Speaker 1: of laws that would say you would need to actually
Speaker 1: use notice and comments to resend Title forty two. Because
Speaker 1: then secondly, the judge said that the CDC's rationale is overbroad.
Speaker 1: The White House says it's going to comply with the
Speaker 1: court's order, but it's going to feel the decision. Does
Speaker 1: this indicate a prolonged legal battle that will most likely
Speaker 1: end up at the Supreme Court? Well, yes, And what's
Speaker 1: very interesting about what's occurred sort of the unreported nugget
Speaker 1: for whatever reason out of all of this is that
Speaker 1: even though the by administration has appealed, they appear not
Speaker 1: to have asked for a say of the District Court's ruling.
Speaker 1: And for what that means is they're not taking the
Speaker 1: fast track on the field, they're taking the slow track
Speaker 1: on appeal, which means that theoretically speaking, Title forty two
Speaker 1: could be in place until well into three, maybe the
Speaker 1: middle of Well, this brings me to a question I
Speaker 1: believe I've asked you before. Is the Biden administration secretly
Speaker 1: happy or relieved that this judge saved Title forty two. Well,
Speaker 1: the only implication that one could draw from the fact
Speaker 1: that they're not moving for a say of the district
Speaker 1: judge disorder is that they want Title forty two to
Speaker 1: remain in play. And I'm surprised they're not getting more
Speaker 1: pushback from the immigration rights because the community on this side,
Speaker 1: because at the end of the day, if you were
Speaker 1: really intent on eliminating Title forty two as a policy,
Speaker 1: you'd be put for a stay of the But apparently
Speaker 1: there's just no desire to the Bloomer essay, which means
Speaker 1: you'd go through the normal Fifth Circuit process, which could
Speaker 1: take six months to a year, and then the Supreme
Speaker 1: Court process, which could take another six months to a year.
Speaker 1: And Les Leon Fresco, a partner at Holland and Nights,
Speaker 1: speaking with Bloomberg student Gross So catch more of that interview,
Speaker 1: plus analysis of the latest legal news, by subscribing to
Speaker 1: the Bloomberg Law podcast or downloading the show at Bloomberg
Speaker 1: dot com, Slash Podcast, Attorney's Confined, exceptional legal research and
Speaker 1: business development tools at Bloomberg law dot com, and on
Speaker 1: the Bloomberg terminal at b law go hand Still ahead.
Speaker 1: On Bloomberg day Break, we have a check on the
Speaker 1: business headlines and all the news you need to start
Speaker 1: your day. And this is Bloomberg