WEBVTT - Bloomberg Daybreak: June 7, 2022 - Hour 1 (Radio) 0:00:01.240 --> 0:00:04.359 Live from the Bloomberg Interactive Brookers Studios. This is Bloomberg 0:00:04.400 --> 0:00:07.960 day Break for Tuesday, June seven two. Coming up the shower. 0:00:08.160 --> 0:00:11.440 Boris Johnson survives as UK Prime Minister, but the question 0:00:11.560 --> 0:00:15.120 is for how long Russia bands Dozens, including Janet Yellen 0:00:15.200 --> 0:00:18.200 and Black Rock CEO Larry fing Kee primaries today in 0:00:18.360 --> 0:00:21.639 seven states, including California and New Jersey, and looks like 0:00:21.760 --> 0:00:25.720 Buyer's remorse won't get Elon Musk out of his Twitter acquisition. 0:00:25.840 --> 0:00:28.560 New York Mayor Eric Adams reacts to new gun laws 0:00:28.560 --> 0:00:31.320 across the state. Plus the U S warrens North Korea 0:00:31.360 --> 0:00:34.000 of a strong punishment and conducts a nuclear tests on 0:00:34.120 --> 0:00:36.800 Michael bar More ahead of John Stas Stoward Sports. The 0:00:36.880 --> 0:00:39.480 next one in San Diego, Colorado was raised this Dailey 0:00:39.520 --> 0:00:41.800 Cup on All the Rangers played Game four at Tampa 0:00:41.840 --> 0:00:47.280 Bay tonight. That's All's training ahead on Bloomberg Daybreak on 0:00:47.400 --> 0:00:51.880 Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, 0:00:52.360 --> 0:00:56.640 Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, 0:00:57.120 --> 0:01:00.120 Syrius Exam one nine Team, and around the world on 0:01:00.280 --> 0:01:03.600 Bloomberg Radio dot Com and via the Bloomberg Business Shop 0:01:07.800 --> 0:01:10.399 and good morning. I'm through at Moscow. I'm Nathan Hagar. 0:01:10.400 --> 0:01:13.479 Bloomberg Daybreak is brought to you by Informattica in the Cloud. 0:01:13.520 --> 0:01:16.119 Your data has the power to view the extraordinary managed 0:01:16.200 --> 0:01:19.080 data across any location in the cloud for accurate and 0:01:19.200 --> 0:01:23.320 actionable insights. More at informattica dot com. A US futures 0:01:23.360 --> 0:01:26.199 are lower this morning five oh one on Wall Street. 0:01:26.240 --> 0:01:28.559 We checked the markets every fifteen minutes throughout the trading 0:01:28.640 --> 0:01:31.399 day on Bloomberg Right now. S and P futures down 0:01:31.440 --> 0:01:34.400 twelve points down, futures down a hundred four, NASDAG futures 0:01:34.440 --> 0:01:37.520 down forty eight and the tenure Treasury up six thirty seconds. 0:01:37.560 --> 0:01:40.760 You have three point one percent, Nathan, Karen. We'll have 0:01:40.840 --> 0:01:42.480 more on the markets in just a minute. First, you 0:01:42.520 --> 0:01:44.280 want to get you the latest on the future of 0:01:44.400 --> 0:01:47.760 Boris Johnson. The UK Prime Minister has managed to cling 0:01:47.840 --> 0:01:50.320 to power. Let's go live to London and get the 0:01:50.400 --> 0:01:53.640 very latest from Bloomberg's You and Pott's Good morning. Good morning, 0:01:53.720 --> 0:01:56.480 Nathan and Karen win for Boris Johnson in a vote 0:01:56.520 --> 0:01:59.480 among lawmakers in his own conservative policy. The UK Prominissa 0:01:59.520 --> 0:02:02.400 has secure all the numbers to remain as leader, but 0:02:02.520 --> 0:02:05.480 more than forty percent of his colleagues indicated they had 0:02:05.560 --> 0:02:08.520 no confidence in his leadership. That was the worst result 0:02:08.560 --> 0:02:12.080 than that suffered by his predecessor, Theresa May. Under official 0:02:12.080 --> 0:02:14.760 party rules, he cannot now be challenged again for another 0:02:14.840 --> 0:02:18.040 twelve months, but rules can be changed, and many expect 0:02:18.120 --> 0:02:20.919 leadion for questions to continue in London. I'm your parts 0:02:20.919 --> 0:02:22.880 being big day, break right you and thank you now 0:02:22.919 --> 0:02:25.400 the latest on the war. Russia has banned dozens of 0:02:25.480 --> 0:02:28.440 US officials from entering the country. We get details from 0:02:28.440 --> 0:02:33.440 Bloomberg's Amy Morris in our newsroom in Washington. Treasury Secretary 0:02:33.520 --> 0:02:35.960 Janet Yellett and Black Rocks Larry Fink are among the 0:02:36.000 --> 0:02:40.120 sixty one US officials and executives indefinitely banned by Russia 0:02:40.320 --> 0:02:44.880 retaliation for what it called constantly expanding sanctions against its citizens. 0:02:44.919 --> 0:02:47.519 This says, Ukraine is in talks with the United Nations 0:02:47.680 --> 0:02:50.440 to craft a deal between Turkey and Moscow to restart 0:02:50.480 --> 0:02:54.160 shipments of grain from ports blocked by Russia. Meanwhile, shortly 0:02:54.200 --> 0:02:56.840 after the UK joined the US and pledging to send 0:02:56.919 --> 0:03:00.440 longer range missiles to Ukraine, Russia's president Putin threatened to 0:03:00.440 --> 0:03:03.519 strike new targets if those weapons are delivered in Washington. 0:03:03.600 --> 0:03:06.160 I'm Amy Moore as Bloomberg Daybreak. All right, Amy, thank you. 0:03:06.200 --> 0:03:10.519 Turning to US politics. It is a primary election Super Tuesday. 0:03:10.680 --> 0:03:13.680 Seven states, led by California and New Jersey, are heading 0:03:13.720 --> 0:03:15.960 to the polls for the busiest day of voting before 0:03:16.000 --> 0:03:19.520 the general election in November. Claremont mckennack College political scientist 0:03:19.600 --> 0:03:22.080 Jack Pittney has more on a major theme playing out 0:03:22.200 --> 0:03:25.600 in California, crime and homelessness. If you talk to anybody 0:03:25.639 --> 0:03:29.440 who's recently visited Los Angeles, they'll be shocked at the 0:03:29.440 --> 0:03:33.680 homeless encampments all over the city. Uh. It's a huge 0:03:33.800 --> 0:03:37.200 humanitarian problem and one that the city government has not 0:03:37.360 --> 0:03:41.000 been able to manage very effectively. Claremont McKennis Jack Pitney 0:03:41.040 --> 0:03:43.800 says it is affecting the Democratic race for Los Angeles Mayor, 0:03:43.800 --> 0:03:47.360 pitting Congressman Karen Bass against tough on crime billionaire Rick Caruso. 0:03:47.680 --> 0:03:50.800 It is also feeling the race for Attorney General in California, 0:03:50.880 --> 0:03:53.840 two Republicans and a Republican turned independent or running to 0:03:53.960 --> 0:03:58.400 unsea Democratic incumbent Rob Banta. As for congressional races. Republican 0:03:58.480 --> 0:04:01.760 David Valadeo is facing a tough primary challenge. He was 0:04:01.840 --> 0:04:04.200 one of the ten House Republicans who voted to impeach 0:04:04.280 --> 0:04:07.440 former President Donald Trump last year. Well in New Jersey 0:04:07.520 --> 0:04:10.760 Nathan Republican contenders are hoping to crack the States Blue 0:04:10.800 --> 0:04:14.560 Wall in today's primary, and Bloomberg's Michael Barr has the latest. 0:04:14.840 --> 0:04:18.480 Today's primary has a field of thirty five GOP candidates, 0:04:18.480 --> 0:04:22.120 many online with former President Trump. However, the governor's seat 0:04:22.120 --> 0:04:25.040 and the legislature are controlled by Democrats and the party 0:04:25.240 --> 0:04:28.480 holds ten of the twelve congressional seats. One race to 0:04:28.560 --> 0:04:31.480 keep an eye on his New Jersey's third district, Jim 0:04:31.520 --> 0:04:34.560 owner Ian Smith, refused in order to close his business 0:04:34.640 --> 0:04:38.480 during the pandemic, is among three Republicans running against Democrat 0:04:38.600 --> 0:04:42.080 Andy Kim. The third district is a politically divided area 0:04:42.160 --> 0:04:45.799 that voted for Trump by a narrow margin in the election. 0:04:46.160 --> 0:04:49.200 In New York, Michael Barr Bloomberg Day Brick Okay Michael 0:04:49.200 --> 0:04:52.719 Thanks in Corporate News, Deal or No Deal looks like 0:04:52.760 --> 0:04:55.719 Elon Musk's buyer's remorse will not get him out of 0:04:55.800 --> 0:04:58.360 his acquisition of Twitter. Let's get more on that line 0:04:58.360 --> 0:05:00.760 from Bloomberg's We Need a Young, We Need Good Morning. 0:05:00.839 --> 0:05:04.120 Nathan Elon. Musk is reviving his argument that Twitter has 0:05:04.160 --> 0:05:07.359 a serious bot problem, and he's threatening to walk away 0:05:07.360 --> 0:05:09.599 from the deal if the social media giant does not 0:05:09.800 --> 0:05:12.880 do more to prove that its users are real people. 0:05:13.200 --> 0:05:16.400 But Bloomberg sources say behind the scenes the deal is 0:05:16.440 --> 0:05:19.400 still proceeding. Twitter thinks it's in the best interest of 0:05:19.440 --> 0:05:23.000 all shareholders and wants the cleft to close the transaction, 0:05:23.400 --> 0:05:25.960 and it's possible that Twitter could try to sue Musk 0:05:26.200 --> 0:05:28.960 to complete the deal if he tries to walk away. 0:05:29.440 --> 0:05:31.920 Live in New York, I'm rened to Young Bloomberg day 0:05:31.920 --> 0:05:33.680 Break a right re need to thank you. Apple out 0:05:33.680 --> 0:05:37.520 with new software and services at its Worldwide Developers Conference. 0:05:37.600 --> 0:05:42.240 Fresh features include an updated iPhone lock screen, multitasking for 0:05:42.279 --> 0:05:45.360 the iPad, and a pay later service that brings Apples 0:05:45.360 --> 0:05:48.479 into the finance industry. We discussed the move with Creative 0:05:48.520 --> 0:05:52.520 Strategies President Carolina Milanessi from the event in California. I 0:05:52.600 --> 0:05:54.440 think the core of it is that is going to 0:05:54.520 --> 0:05:56.719 be so much easier for people that use Apple Pee 0:05:56.960 --> 0:06:00.400 to just use that as a default versus using the 0:06:00.520 --> 0:06:03.240 plethora of other options but you have in the market. 0:06:03.360 --> 0:06:07.280 It's about integration, is about taking away every little bit 0:06:07.279 --> 0:06:10.760 of friction that you have in the experience creative Strategies. 0:06:10.800 --> 0:06:15.039 President Carolina Milanessi expects Apple's new pay later features to 0:06:15.080 --> 0:06:18.440 be helpful for both small businesses and consumers. Turning to 0:06:18.520 --> 0:06:22.120 the economy, Karen JP Morgan Chase chief economist Bruce Cassman 0:06:22.200 --> 0:06:25.719 says there's little chance a recession is imminent. I think 0:06:25.720 --> 0:06:28.520 what we're gonna see is growth continue to be on 0:06:28.560 --> 0:06:32.479 the softer side, but growth continue to show resilience. Uh. 0:06:32.520 --> 0:06:35.560 We don't see a near term recession. Uh. We see 0:06:35.560 --> 0:06:38.599 a global economy which actually does okay in the second 0:06:38.640 --> 0:06:40.640 half of the year, with the U S slowing and 0:06:40.680 --> 0:06:43.359 the rest of the world doing somewhat better. JP Morgan 0:06:43.480 --> 0:06:47.080 Chase chief economist Bruce Cassman's comments differ from his boss, 0:06:47.160 --> 0:06:50.400 Jamie Diamond. Last week, Diamond said investors should be ready 0:06:50.440 --> 0:06:54.240 for an economic hurricane, as tighter monetary policy, inflation, and 0:06:54.400 --> 0:06:58.640 Russia's invasion of Ukraine pose ongoing risks, and futures are lower. 0:06:58.680 --> 0:07:02.120 This morning, SMP future years down seventeen points down futures 0:07:02.160 --> 0:07:04.600 down a hundred thirty two and nashdaic Future is down 0:07:04.720 --> 0:07:07.920 sixty ten year treasury up six thirties seconds, the yield 0:07:07.960 --> 0:07:10.360 three point one percent, and the yield on the two 0:07:10.440 --> 0:07:13.720 year two point seven one and straight ahead, your latest 0:07:13.760 --> 0:07:17.960 local headlines plus the check of sports and this is 0:07:18.040 --> 0:07:25.200 Bloomberg right, Thanks Karen. It's five oh seven on Wall Street. 0:07:25.200 --> 0:07:27.520 Were at sixty three degrees in Central Park. Already have 0:07:27.520 --> 0:07:30.800 an accident in southbound Major Degan at Fordham Road. Details 0:07:30.840 --> 0:07:33.080 coming up in traffic. First, Michael Barr is back with 0:07:33.160 --> 0:07:34.320 us for a look at what else is going on 0:07:34.320 --> 0:07:36.440 in New York and around the world. Good morning, Michael, 0:07:36.480 --> 0:07:39.360 Good morning Nathan. New York Governor Kathy Oakle signed new 0:07:39.400 --> 0:07:43.280 gun reform legislation into law three weeks after ten people 0:07:43.320 --> 0:07:45.880 were killed in a mass shooting at a Buffalo supermarket 0:07:46.200 --> 0:07:51.400 by a self proclaimed white supremacists. The bills will include 0:07:51.440 --> 0:07:53.880 banning anyone under the age of twenty one from buying 0:07:54.000 --> 0:07:57.480 or possessing a semi automatic rifle, as well as expanding 0:07:57.480 --> 0:08:00.240 current red flag walls to keep guns out of the 0:08:00.320 --> 0:08:06.440 hands of quote dangerous people. It just keeps hapening shots 0:08:06.560 --> 0:08:14.400 ring out. Flags come down and nothing ever changes except 0:08:14.680 --> 0:08:17.840 here in New York. During the signing and Buffalo Governor 0:08:17.920 --> 0:08:20.960 Hokel says, New York legislators made the decision to be 0:08:21.080 --> 0:08:24.600 leaders when it comes to gun reform, rather than followers 0:08:24.720 --> 0:08:28.960 waiting on Washington, Mayor Adams praised the new gun laws 0:08:28.960 --> 0:08:32.120 in the state. The New York Mayor says, though, that 0:08:32.200 --> 0:08:35.720 more needs to be done to properly prosecute the criminals 0:08:35.720 --> 0:08:39.080 who commit the crimes, Because, he says, criminals, no, they 0:08:39.080 --> 0:08:44.840 won't face proper consequences. No one takes criminal justice seriously anymore. 0:08:45.480 --> 0:08:48.840 These bad guys no longer take them seriously. They believe 0:08:48.880 --> 0:08:52.880 our criminal justice system is a laughing stock. Mayor Adams 0:08:52.920 --> 0:08:56.040 also says they have taken three thousand guns off the streets. 0:08:56.480 --> 0:08:59.320 A bipartisan group of lawmakers in Congress is trying to 0:08:59.320 --> 0:09:03.400 find common ground and pass new gun control legislation. Democratic 0:09:03.440 --> 0:09:06.880 negotiators see a deal could be completed this week. Democratic 0:09:06.920 --> 0:09:10.040 Senator Chris Murphy of Connecticut. Parents are scared, kids are 0:09:10.080 --> 0:09:13.760 scared that they need progress. They need us to show 0:09:14.160 --> 0:09:18.360 that we care about what kids are going through UM 0:09:18.400 --> 0:09:21.120 and I'm hopeful that we'll get a deal. Senator Murphy 0:09:21.160 --> 0:09:25.040 says the proposals include enhanced background checks, the US war 0:09:25.160 --> 0:09:27.839 North Korea of a strong punishment if it conducts a 0:09:27.920 --> 0:09:31.440 nuclear test. It comes, as Washington and the United Nations 0:09:31.440 --> 0:09:34.360 watchdog Agency have said signs in the KP Young Yang 0:09:34.720 --> 0:09:39.880 could soon set off its first atomic device. Since Global 0:09:39.920 --> 0:09:42.200 News twenty four hours a day on air and on 0:09:42.240 --> 0:09:46.240 Bloomberg Quicksad, powered by more than twenty journalists and analysts 0:09:46.320 --> 0:09:48.959 more than a hundred twenty countries. I'm Michael Barring. This 0:09:49.080 --> 0:09:56.760 is Bloomberg Naked. Thanks Michael, five oh nine on Wall Street. 0:09:56.800 --> 0:09:59.360 Time for the Bloomberg sports out there. Good morning, John Stash, 0:09:59.559 --> 0:10:01.680 Morning a to The Mets have the best record the nationally. 0:10:01.720 --> 0:10:04.079 They just split a four game series with the Dodgers, 0:10:04.080 --> 0:10:06.520 who have the NL second best mark. Metro now in 0:10:06.600 --> 0:10:10.080 San Diego Padres, owners of the third best record. Mets 0:10:10.080 --> 0:10:12.679 took the series opener eleven to five, three runs of 0:10:12.720 --> 0:10:15.240 the first SNAM four in the ninth at Wardo Escobar, 0:10:15.760 --> 0:10:18.079 the hitting hero, four hits, including the home run he 0:10:18.200 --> 0:10:21.680 drove in six runs. Carlos Carrasco struck out ten, improved 0:10:22.000 --> 0:10:24.200 to seven and one. Yankees go over their Major League 0:10:24.280 --> 0:10:27.360 leading fort Win Tonight at Minnesota, they faced x Yanks, 0:10:27.400 --> 0:10:30.319 Gary Sanchez and Geo or Shella. Rangers now have two 0:10:30.360 --> 0:10:32.760 games to one. Have game four at Tampa Bay tonight. 0:10:32.800 --> 0:10:35.560 We know who the winner of the series will play 0:10:35.679 --> 0:10:37.800 for the Stanley Cup. Back from the car, let's go 0:10:37.880 --> 0:10:43.319 tep talking great, it's start touring looking at and it 0:10:43.480 --> 0:10:46.600 don't have to go home, but your can't stay here 0:10:47.000 --> 0:10:52.480 because this party is almost k K s and Denver 0:10:52.679 --> 0:10:55.840 the call. He adds six five overtime win at Edmonton 0:10:55.880 --> 0:10:58.520 and captain four games swing. First time Colorado as reaching 0:10:58.520 --> 0:11:00.320 the Stanley Cup finals since two thousand one of the 0:11:00.360 --> 0:11:03.280 Bruins fired their coach, Bruce Cassidy. He got into the 0:11:03.280 --> 0:11:06.440 playoffs sixth Greight years Phil Mickelson's first comments and four 0:11:06.520 --> 0:11:09.080 months he hasn't been playing golf. He says he needed 0:11:09.080 --> 0:11:11.600 time offer. Michelson made official that he is going to 0:11:11.640 --> 0:11:14.480 play the new Saudi Back Live Tour that starts next 0:11:14.480 --> 0:11:17.640 month in London. Michelson's that he's hopefully can Steel also 0:11:17.679 --> 0:11:20.520 play PG eight tour events. He told Sports Illustrated his 0:11:20.600 --> 0:11:24.360 gambling has been reckless and embarrassing, and that he's been 0:11:24.400 --> 0:11:26.240 in therapy to try and deal with it, it was reported, 0:11:26.280 --> 0:11:29.280 and he once had forty million and gambling wantses. Greg Norman, 0:11:29.360 --> 0:11:31.640 runs the Live Tour, says he Tiger Woods was offered 0:11:31.679 --> 0:11:33.520 a nine figure amount to play, but he said no. 0:11:34.040 --> 0:11:36.839 John stash Award bloom Brook Sports. Okay, John, thanks, you 0:11:36.880 --> 0:11:39.600 gotta sp Futures moving lower down by seventeen point Staff 0:11:39.640 --> 0:11:42.320 futures down a hundred thirty seven, Nastack futures down sixty 0:11:42.360 --> 0:11:44.880 nine points ten. Your treasury is up seven thirty seconds 0:11:44.920 --> 0:11:47.079 with the old three point zero one percent held on 0:11:47.160 --> 0:11:50.360 the two year two point seven one the pound trading 0:11:50.400 --> 0:11:53.240 at one point to four nine eight against the dollar 0:11:53.280 --> 0:11:57.200 after Boris Johnson survives a confidence vote in the UK 0:11:57.320 --> 0:12:01.320 Parliament but just barely look at what snack for the 0:12:01.360 --> 0:12:04.240 future of Boris Johnson with Lizzie Burden of Bloomberg News 0:12:04.240 --> 0:12:09.640 coming up next Bloomberg eleven three oh weather partly the 0:12:09.679 --> 0:12:11.520 mostly sunny today with highs in the up for seventies. 0:12:11.559 --> 0:12:13.719 Showers and storms likely tomorrow with the high near eight 0:12:13.880 --> 0:12:16.360 though storms will end during the morning Thursday, with the 0:12:16.440 --> 0:12:19.040 high near eighty degrees once again currently sixty four in 0:12:19.120 --> 0:12:25.120 Central Park. Markets, Headlines and breaking news twenty four hours 0:12:25.120 --> 0:12:28.079 a day at Bloomberg dot Com, the Bloomberg Business at 0:12:28.200 --> 0:12:37.760 and at Bloomberg Quicktake. He's a Bloomberg Business Flash and 0:12:37.800 --> 0:12:40.760 I'm Cameron Moscow. European stocks are falling with u S 0:12:40.800 --> 0:12:43.880 stock index futures as central banks set on tightening policy, 0:12:43.920 --> 0:12:47.400 fan growth fears, the dollars advancing, bon yields stabilizing. We 0:12:47.559 --> 0:12:49.920 checked the markets every fifteen minutes throughout the trading day 0:12:50.040 --> 0:12:53.400 on Bloomberg SMP future is down about eighteen points down. 0:12:53.440 --> 0:12:56.600 Futures down a hundred thirty four nasday, futures down seventy 0:12:56.880 --> 0:12:59.400 the decks in Germany's down nine tenths of upper sent 0:12:59.720 --> 0:13:02.480 Can your treasury of eight thirty seconds yield three percent? 0:13:02.520 --> 0:13:04.520 They yield on a two year two point seven one 0:13:04.600 --> 0:13:07.600 percent nine max Screwed oil is falling down six tenths 0:13:07.640 --> 0:13:09.840 per cent, or sixty nine cents at a hundred seventeen 0:13:10.200 --> 0:13:12.760 eighty six cents in barrel comics called the third of 0:13:12.800 --> 0:13:15.040 a per cent or six dollars twenty cents at eighteen 0:13:15.080 --> 0:13:17.920 forty nine ninety an ounce. The euro one point six 0:13:17.920 --> 0:13:20.000 eight five against the dollar. British found one point to 0:13:20.160 --> 0:13:22.360 five Oh shoo the yet is at one thirty two 0:13:22.400 --> 0:13:27.000 point six four and bitcoin this morning it's down almost 0:13:27.000 --> 0:13:30.480 six percent to twenty nine thousand, six hundred dollars as 0:13:30.480 --> 0:13:33.160 of Bloomberg Business Flash. Now Here's Michael Barrow with more 0:13:33.200 --> 0:13:35.760 on what's going on around the world. Munchael, Good morning, 0:13:35.840 --> 0:13:40.120 Good morning, Karin. South Korea and US military's FLEW twenty 0:13:40.120 --> 0:13:43.600 fighter jet Silver waters off South Korea's western coast today 0:13:43.880 --> 0:13:46.440 and the show of force as a senior US official 0:13:46.480 --> 0:13:50.240 warned of a forceful response of North Korea goes ahead 0:13:50.280 --> 0:13:54.920 with its first nuclear test explosion since seventeen. Age limits 0:13:54.960 --> 0:13:58.400 and red flag laws are being discussed in Washington. Has 0:13:58.440 --> 0:14:01.360 a bipartisan group of senator looks for ways to curb 0:14:01.400 --> 0:14:05.280 the outbreak of gun violence in the nation, strengthening background checks. 0:14:05.320 --> 0:14:08.760 Also on the table NHL Playoffs, the Avalanche beat the 0:14:08.760 --> 0:14:12.120 Oilers to advance to the Stanley Cup Final. Colorado will 0:14:12.120 --> 0:14:14.920 face either the Rangers or the Lightning, who play game 0:14:15.000 --> 0:14:17.600 for tonight. In baseball, they met some red Sox one 0:14:17.800 --> 0:14:20.240 Global News twenty four hours a day on here and 0:14:20.440 --> 0:14:24.480 on Bloomberg Quicktake, powered by more than journalists and analysts 0:14:24.520 --> 0:14:27.840 more than twenty countries. Hi Michael Barren, This is Bloomberg. 0:14:27.920 --> 0:14:30.680 Nathan all right, Michael, thank you. It is five nineteen 0:14:30.920 --> 0:14:34.360 on Wall Street, live from the Bloomberg Interactive Brokers studios. 0:14:34.440 --> 0:14:37.240 This is Bloomberg day Break. Let's get more now on 0:14:37.280 --> 0:14:40.720 our top story this morning. Boris Johnson lives to see 0:14:40.760 --> 0:14:44.600 another day as UK Prime Minister, but after just getting 0:14:44.640 --> 0:14:47.840 by a confidence vote from his fellow Conservatives, the question 0:14:47.880 --> 0:14:51.120 now is how many more days will he live to see? 0:14:51.120 --> 0:14:55.120 Bloomberg television correspondent Lizzie Burden joins us now with more 0:14:55.160 --> 0:14:59.080 on this. She is live from just outside the Prime 0:14:59.080 --> 0:15:03.080 Minister's residence at Number ten Downing Street. Lizzie, good morning. 0:15:03.240 --> 0:15:05.160 That is the big question of the day. How much 0:15:05.160 --> 0:15:09.040 longer is this going to be Boris Johnson's residents, given 0:15:09.520 --> 0:15:15.720 just how close the margin was among his conservatives, good morning, 0:15:15.720 --> 0:15:18.120 they think. Yeah. I'm outside number ten down In Street, 0:15:18.120 --> 0:15:20.680 in the cabinets, meeting in their as les seat. This 0:15:21.280 --> 0:15:24.360 was the culmination of months of discontent over the party 0:15:24.400 --> 0:15:26.760 gate scandal, the cost of living crisis, and it's a 0:15:26.880 --> 0:15:29.640 year now until another vote like this can happen again. 0:15:29.760 --> 0:15:32.960 So Johnson's teams come out guns blazing, saying he wants 0:15:32.960 --> 0:15:35.360 to draw a line under party gate, But just look 0:15:35.400 --> 0:15:38.200 at the history books. Remember the reason may Margaret sacking. 0:15:38.280 --> 0:15:42.359 His predecessors lasted just six months and a day, respectively, 0:15:42.640 --> 0:15:45.240 having won their own confidence votes. And this is actually 0:15:45.240 --> 0:15:49.120 a larger rebellion than they based in. And there were 0:15:49.160 --> 0:15:52.880 more rebels last night than Johnson's working majority in the 0:15:52.920 --> 0:15:55.960 House of Commons, clearly including some who were on the 0:15:56.000 --> 0:15:59.360 government payroll. So they may try to stall the government's 0:15:59.440 --> 0:16:02.480 legislies that under. Johnson may try to strengthen his hand 0:16:02.600 --> 0:16:05.360 by reshuffling his cabinet, but it's unlikely to be back 0:16:05.400 --> 0:16:08.080 to business as usual for this government. Yeah, when you 0:16:08.240 --> 0:16:11.400 see just how narrow that the victory was, I mean 0:16:11.560 --> 0:16:16.600 just how divided does this leave Boris Johnson's Conservative Party 0:16:16.640 --> 0:16:19.640 And I mean how can you rally the party together 0:16:20.480 --> 0:16:23.960 given where things stand right now? Yeah, this is what's 0:16:24.000 --> 0:16:28.520 most worrying for him because the rebellion was so disparate. 0:16:28.760 --> 0:16:32.600 It was young, old, north, south, left, right. Let it remains, 0:16:32.960 --> 0:16:37.240 it's not just one faction of the Conservative Party rebelling 0:16:37.520 --> 0:16:40.640 to be came and that is why if they came 0:16:40.640 --> 0:16:43.920 out of they know her in a surprise. Almost the 0:16:43.960 --> 0:16:47.920 lists of runners and writers to replace Boris Johnson is circulating. 0:16:48.000 --> 0:16:51.760 You've got ex Foreign tactically Jeremy Hunt's current foreign texretory 0:16:51.960 --> 0:16:54.880 lid Trust. They're the biggest name is floating at the moment. 0:16:56.400 --> 0:17:00.240 So with this cabinet meeting now under way, Lizzie, you 0:17:00.280 --> 0:17:03.240 mentioned some of the potential names that could be vying 0:17:03.400 --> 0:17:07.280 to succeed Johnson here, can we be looking potentially at 0:17:07.640 --> 0:17:12.879 cabinet resignations following this vote? Potentially, But at the moment 0:17:12.920 --> 0:17:17.480 the big names are declaring their loyalty for Boris Johnson. 0:17:17.840 --> 0:17:21.480 The big risk, which would be a huge surprise, would 0:17:21.520 --> 0:17:24.560 be a Forrest Johnson called a general election. Now it 0:17:24.640 --> 0:17:26.840 would be a big gamble for him, but really that 0:17:27.000 --> 0:17:29.640 all the market care about at this point. The other 0:17:29.680 --> 0:17:33.160 thing that they're looking ahead to are the local elections 0:17:33.200 --> 0:17:35.639 on June twenty three. You've got one in the southwest 0:17:35.680 --> 0:17:39.560 of England, one up north in Wakefield. Those have pretty 0:17:39.600 --> 0:17:45.040 sordid backdrops. You've got the MP in the Southwest was 0:17:45.280 --> 0:17:48.320 found watching pornography in the House of Commons, the one 0:17:48.359 --> 0:17:51.400 that's the North were convicted to sexual assault. And these 0:17:51.440 --> 0:17:56.080 backdrops do not make party date look good. Those seats 0:17:56.080 --> 0:17:59.879 the Conservatives are expected to lose that. Interestingly, it should 0:18:00.040 --> 0:18:03.120 be less losing personally for Boris Johnson, now that he's 0:18:03.119 --> 0:18:05.920 got the voter confidence behind him. Got about a minute 0:18:06.000 --> 0:18:10.160 left here, Lizzie. As you know, Boris Johnson has managed 0:18:10.200 --> 0:18:14.960 to weather scandals in the past. Uh does this one 0:18:15.560 --> 0:18:20.760 seem different the party Gate scandal. This is why Boris 0:18:20.840 --> 0:18:23.919 Johnson has been given the moniker, the priest Coublet, the 0:18:24.000 --> 0:18:28.840 tsslon manch able to come out of these scandals and 0:18:28.920 --> 0:18:33.160 crises smiling and singing them as who's going to carry on? 0:18:33.440 --> 0:18:35.880 But this seems like a very different moment. He heard 0:18:35.880 --> 0:18:38.520 the booze and he was walking up the steps to St. 0:18:38.520 --> 0:18:41.760 Paul Cathedral for the Queen's Platinum Jubilee service over the weekend, 0:18:42.240 --> 0:18:45.680 the same booze that his empties will have heard. They 0:18:45.680 --> 0:18:48.840 will is consider their constituents full of sin its street 0:18:48.840 --> 0:18:51.960 parties over the weekends to the jubilee and heard the 0:18:52.000 --> 0:18:56.160 discontent among their constituents and the fact that his emp 0:18:56.600 --> 0:18:59.439 has voted against him showed that they do not believe 0:18:59.520 --> 0:19:03.280 he is the electoral aftet he want in t Thanks 0:19:03.280 --> 0:19:04.879 for this, Lizzie, good to have you on with us. 0:19:04.960 --> 0:19:09.760 This morning, Lizzie burdon Bloomberg Television, UK government correspondent, joining 0:19:09.840 --> 0:19:12.840 us live from just outside Number ten, Downing Street, Whereas 0:19:12.840 --> 0:19:16.560 Lizzie mentioned, the UK Prime Minister Boris Johnson is holding 0:19:16.600 --> 0:19:21.679 a cabinet meeting after just barely surviving that confidence vote, 0:19:21.720 --> 0:19:26.199 with two hundred eleven of his fellow Conservatives voting to 0:19:26.440 --> 0:19:30.560 keep him in office, but a hundred forty eight voting against, 0:19:30.640 --> 0:19:34.480 a much thinner margin than past confidence votes that led 0:19:34.520 --> 0:19:38.640 to departures for predecessors Theresa May and even Margaret Thatcher 0:19:39.280 --> 0:19:42.119 when you look back at UK history. Thanks again for 0:19:42.200 --> 0:19:45.200 joining us, Lizzie this morning. SMP futures right now down 0:19:45.400 --> 0:19:48.840 fifteen points down, futures down a hundred seventeen. Nastac features 0:19:48.840 --> 0:19:51.840 are lower by sixty one points. The tenure treasury is 0:19:51.920 --> 0:19:55.159 up eight thirty seconds, the yield three point zero one percent, 0:19:55.400 --> 0:19:57.320 and the yield on the two year right now two 0:19:57.400 --> 0:20:01.240 point seven one percent. Day with us. You're listening to 0:20:01.320 --> 0:20:09.560 Bloomberg Daybreak Bloomberg eleven three oh weather. Sunshine today with 0:20:09.600 --> 0:20:12.439 the high near eighty degrees, we'll see showers and storms 0:20:12.480 --> 0:20:15.080 tomorrow with a high near eighty Those showers and storms 0:20:15.119 --> 0:20:18.080 will end during the morning Thursday, right now sixty three 0:20:18.119 --> 0:20:27.959 degrees in Central Park, broadcasting live from the Bloomberg Interactive 0:20:27.960 --> 0:20:31.840 Broker Studio in New York, Bloomberg E Living Freedom to Washington, 0:20:31.920 --> 0:20:35.359 d C, Bloomberg N one to Boston, Bloomberg one O 0:20:35.560 --> 0:20:39.040 six one to San Francisco, Bloomberg sixty to the country, 0:20:39.160 --> 0:20:42.160 Sirius XM Cho one nine team, and around the globe 0:20:42.240 --> 0:20:45.840 the Bloomberg Business app and Bloomberg Radio dot Com. This 0:20:46.160 --> 0:20:54.840 is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. 0:20:54.840 --> 0:20:57.600 I'm Nathan Hagar and I'm Karin Moscow. We're just about 0:20:57.600 --> 0:21:00.320 four hours away from the open of US trading schedule. 0:21:00.320 --> 0:21:01.600 You have to date on the news you need to 0:21:01.600 --> 0:21:03.439 know at this hour. We begin with the latest on 0:21:03.480 --> 0:21:06.640 the future of Boris Johnson. The UK Prime Minister has 0:21:06.680 --> 0:21:09.760 managed a claim to power, surviving a confidence vote last night. 0:21:10.040 --> 0:21:13.520 I'm grateful to colleagues. I'm grateful for the support they've 0:21:13.520 --> 0:21:16.720 given me and Boris Johnson's leadership was uncertain due to 0:21:16.800 --> 0:21:20.240 scandals and political challenges. The so called pandemic, Party Gate 0:21:20.280 --> 0:21:23.560 events and Downing Street anchored citizens, along with the cost 0:21:23.600 --> 0:21:27.000 of living crisis and tax increase. After the result, Johnson 0:21:27.040 --> 0:21:29.000 said it was time to get back to helping people 0:21:29.040 --> 0:21:32.680 in the UK. We have a conclusion to something that's 0:21:32.680 --> 0:21:35.560 been dragging on for far too long, and we have 0:21:35.600 --> 0:21:38.159 the ability night to unite, to live and get on 0:21:38.520 --> 0:21:40.760 with the people's priorities, and that is what we're gonna do. 0:21:40.880 --> 0:21:44.119 Boris Johnson received two d votes in a confidence motion 0:21:44.200 --> 0:21:46.520 and one hundred forty eight against him. We'll turning to 0:21:46.560 --> 0:21:49.240 the war in Ukraine, Karen. Russia has banned dozens of 0:21:49.359 --> 0:21:52.320 US officials from entering the country, while Ukraine is looking 0:21:52.359 --> 0:21:55.159 for ways to restart grain exports from ports that have 0:21:55.200 --> 0:21:58.800 been blocked by Russia's military. Treasury Secretary Janet Yelling and 0:21:58.920 --> 0:22:02.000 Black Rock CEO Larry Fink are among those now banned 0:22:02.040 --> 0:22:04.960 from Russia. Back in the US, Nathan, we're watching primary 0:22:05.080 --> 0:22:08.240 races in New Jersey and California. Crime is in focus 0:22:08.320 --> 0:22:10.600 and the Los Angeles mayoral race as well as San 0:22:10.640 --> 0:22:14.040 Francisco's District attorney recall election, and there are some tight 0:22:14.160 --> 0:22:17.560 house races in New Jersey. There were also primaries tonight 0:22:17.600 --> 0:22:20.959 in five other states. Now the market's Karen. European stocks 0:22:21.000 --> 0:22:24.040 fell with US futures a tiny policy fans growth fears. 0:22:24.240 --> 0:22:27.200 The European Central Bank is set to curb asset purchases 0:22:27.240 --> 0:22:30.639 this week and moved toward exiting years of negative interest rates. Meanwhile, 0:22:30.680 --> 0:22:33.600 in Asia, stocks were mixed as investors assess the impact 0:22:33.600 --> 0:22:36.320 of a jump in treasury yields and incorporate news. Nathan 0:22:36.400 --> 0:22:39.680 deal or no deal, it looks like Elon Musk buyer's 0:22:39.800 --> 0:22:42.800 remorse will not get him out of his acquisition of Twitter. 0:22:43.080 --> 0:22:45.480