WEBVTT - Bloomberg Daybreak: June 3, 2022 - Hour 2 (Radio) 0:00:04.440 --> 0:00:07.720 By from the Bloomberg Interacted Brooker Studios. This is Bloomberg 0:00:07.760 --> 0:00:11.320 Gay Break for Friday, June three, two. Coming up this hour, 0:00:11.800 --> 0:00:14.880 President Biden pleads with Congress to tough and gun laws. 0:00:15.280 --> 0:00:18.680 New York lawmakers raised the h device semi automatic rifles. 0:00:19.079 --> 0:00:22.520 Investors await them. May employment report and job cuts may 0:00:22.520 --> 0:00:25.680 be coming at Tesla. Lawmakers agreed to a financial boost 0:00:25.680 --> 0:00:28.520 to repair New York City's public housing developments. Plus the 0:00:28.520 --> 0:00:31.800 man Hunt Court sixes prisoners gap killed five on the 0:00:31.840 --> 0:00:34.800 Loos is Over. I'm Michael Larer or a half. I'm 0:00:34.840 --> 0:00:37.280 John Stashow. In sports, the Mets shout out by the Dodgers, 0:00:37.280 --> 0:00:39.440 The Yankees swept a double letter from the Angels, the 0:00:39.520 --> 0:00:45.000 Celtics one Game one of the NBA Final. That's All's 0:00:45.040 --> 0:00:49.280 tradinghead on Bloomberg Daybreak on Bloomberg eleven three on New York, 0:00:49.479 --> 0:00:54.160 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.440 --> 0:00:59.200 Bloomberg nine sixties and Francisco Sirius XM one nineteen and 0:00:59.240 --> 0:01:02.440 around the world Long Bloomberg Radio dot Com and The 0:01:02.480 --> 0:01:09.360 Bloomberg Business. And Good Morning. I'm Nathan Hager and I'm 0:01:09.440 --> 0:01:13.200 Karen Moscow and USTCK index futures are lower this morning. 0:01:13.240 --> 0:01:15.119 We are coming up to six o one on Wall Street, 0:01:15.160 --> 0:01:17.319 and we check the markets every fifteen minutes throughout the 0:01:17.319 --> 0:01:21.000 trading day. On Bloomberg SMP future is down thirteen points 0:01:21.000 --> 0:01:24.160 this morning. Down futures down seventy six. Nasdack futures down 0:01:24.160 --> 0:01:27.360 seventy two. The decks in Germany is up a third 0:01:27.400 --> 0:01:30.480 of a percent. Ten year Treasury down three thirty seconds, 0:01:30.480 --> 0:01:33.120 the yield two point in nine to two percent, and 0:01:33.160 --> 0:01:35.959 the yield on the two year two point six four percent. 0:01:36.360 --> 0:01:39.000 NIMEX scrude oil is down seven tenths per cent or 0:01:39.000 --> 0:01:41.559 seventy nine cents at a hundred sixteen dollars six cents 0:01:41.560 --> 0:01:43.960 of barrel. Comex goal down to tenths per cent or 0:01:44.000 --> 0:01:47.080 three dollars nineties cents at eighteen sixty seven fifty. Announced 0:01:47.440 --> 0:01:51.200 Bitcoin is at thirty thousand, two hundred thirty dollars. Nathan, 0:01:51.320 --> 0:01:53.360 all right, Karen, thank you. This morning, we begin with 0:01:53.400 --> 0:01:56.240 a plea for action from President Biden after a wave 0:01:56.320 --> 0:02:00.320 of deadly mass shootings across the country. Do something, Just 0:02:00.720 --> 0:02:05.240 do something, for God's sake, do something. In a primetime 0:02:05.280 --> 0:02:07.480 address from the White House, the President called for a 0:02:07.520 --> 0:02:10.359 ban on assault weapons, at high capacity magazines and an 0:02:10.440 --> 0:02:14.280 end to lawsuit protections for gunmakers. President said responsible gun 0:02:14.320 --> 0:02:17.079 owners should not be worried about their rights going away. 0:02:17.440 --> 0:02:21.760 Machine guns have been federally regulated for nearly ninety years, 0:02:22.480 --> 0:02:25.640 and this is still a free country. This isn't about 0:02:25.639 --> 0:02:30.880 taking to anyone's rights shot protecting children, while protecting families, 0:02:31.800 --> 0:02:35.359 while protecting whole communities. As President Biden spoke, the House 0:02:35.480 --> 0:02:37.840 Judiciary Committee approved a bill that would raise the minimum 0:02:37.840 --> 0:02:40.639 age to buy semi automatic rifles and also banned high 0:02:40.639 --> 0:02:43.959 capacity magazines. That bill is not likely to pass in 0:02:44.000 --> 0:02:47.320 the Senate. Meantime, Nathan lawmakers in New York have raised 0:02:47.360 --> 0:02:49.840 the age to buy semi automatic rifles. The New York 0:02:49.880 --> 0:02:53.639 state legislature approved increasing the legal age to from eighteen. 0:02:53.960 --> 0:02:56.720 It also passed a package aimed at reducing the likelihood 0:02:56.720 --> 0:02:59.919 of mass shootings by tightening rules to purchase firearms and 0:03:00.040 --> 0:03:03.519 other military equipment. In neighboring New Jersey, Karen Governor Phil 0:03:03.600 --> 0:03:06.720 Murphy says he's optimistic his state will also enact stronger 0:03:06.760 --> 0:03:09.079 gun laws. New Jersey is one of the strongs gun 0:03:09.080 --> 0:03:12.200 safety states in America. We've got a lot past to 0:03:12.400 --> 0:03:14.959 sign in our four and a half years because yet 0:03:15.000 --> 0:03:17.960 another package of bills that we think to make our 0:03:18.000 --> 0:03:20.400 stadia the safer, and we want to get those over. 0:03:20.440 --> 0:03:23.200 The New Jersey Governor Phil Murphy was a guest on 0:03:23.200 --> 0:03:26.119 Bloomberg's Balance of Power. Catch the show weekdays at noon 0:03:26.120 --> 0:03:29.760 Eastern on Bloomberg Radio and Television. In the interests of transparency, 0:03:29.800 --> 0:03:32.320 we should note that Michael Bloomberg, the founder and majority 0:03:32.360 --> 0:03:35.000 owner of Bloomberg LP, the parent company of Bloomberg Radio, 0:03:35.120 --> 0:03:37.640 is a donor two groups that support gun control. Well. 0:03:37.680 --> 0:03:40.560 Another major story we're following this morning, Nathan, the House 0:03:40.600 --> 0:03:44.160 panel investigating last year's Capitol Hill insurrection is ready to 0:03:44.200 --> 0:03:47.840 take its findings public. Bloomberg's Amy Morris has details from 0:03:47.880 --> 0:03:50.960 our ninety nine one newsroom in Washington. After nearly a 0:03:51.040 --> 0:03:55.000 year of investigation, subpoenas, and testimony, the January sixth panel 0:03:55.000 --> 0:03:57.000 will lay out its findings for the public in a 0:03:57.120 --> 0:04:00.400 series of hearing starting next Thursday. Most of their work 0:04:00.400 --> 0:04:02.920 has been behind closed doors, but now members say the 0:04:02.920 --> 0:04:07.120 panel will present previously unseen material documenting what happened on 0:04:07.200 --> 0:04:10.880 January six and provide a summary of its findings. The 0:04:10.920 --> 0:04:13.080 first of a series of public hearings is set for 0:04:13.240 --> 0:04:16.520 eight o'clock Thursday night. It's prime time in the US 0:04:16.640 --> 0:04:20.679 to give the investigation maximum exposure. In Washington, I'm maybe 0:04:20.680 --> 0:04:23.840 more as Bloomberg Daybreak, Okay, Amy, thank you. Also in Washington, 0:04:23.920 --> 0:04:26.200 this morning we get the release of the May jobs report. 0:04:26.240 --> 0:04:29.599 Economists predict three twenty thousand non farm payrolls are created 0:04:29.680 --> 0:04:33.320 last month. Regardless, Andrew Husby US and Canada economists for 0:04:33.320 --> 0:04:36.880 Bloomberg Economics, does not think the report will impact FED policy. 0:04:37.160 --> 0:04:39.159 You know, early signs that labor demand is cooling, But 0:04:39.200 --> 0:04:41.280 certainly there's nothing in this report that's going to shape 0:04:41.279 --> 0:04:44.440 the head off of tightening moves of at least fifty 0:04:44.480 --> 0:04:47.520 basis points the next couple of meeting. Andrew husband Bloomberg 0:04:47.640 --> 0:04:50.760 Economics says, look for that next half percent hike at 0:04:50.800 --> 0:04:53.760 the FEDS policy meeting coming up June. Well, the feds 0:04:53.760 --> 0:04:56.800 major focus right now, of course, is curbing inflation. Black 0:04:56.920 --> 0:04:59.240 Rock chair and CEO Larry Fink is weighing in on 0:04:59.279 --> 0:05:01.279 the matter, and he knows Bloombery the FED may not 0:05:01.360 --> 0:05:03.839 have the tools right now to deal with higher prices. 0:05:04.200 --> 0:05:09.680 There's greater recognition that inflation is is not transitory. It 0:05:09.800 --> 0:05:12.560 is probably with us for a number of years, and 0:05:12.600 --> 0:05:15.039 at the type of inflation that I don't believe the 0:05:15.040 --> 0:05:17.840 Federal Reserve has the policy or the tools to do 0:05:18.440 --> 0:05:21.479 much with it right now. And I'm personally not blaming 0:05:21.480 --> 0:05:23.880 the Federal Reserve for where they where we are right now, 0:05:24.240 --> 0:05:26.800 but I believe most of the problems we're living with 0:05:26.839 --> 0:05:30.680 today are more policy generated and supply generated. Black Rocks 0:05:30.720 --> 0:05:33.000 CEO Larry Think maybe the comments in an interview with 0:05:33.040 --> 0:05:35.840 The Bloomberg's David Weston. Here more of that conversation in 0:05:35.880 --> 0:05:38.559 just a few minutes. Well, let's go to corporate News now, Karen, 0:05:38.560 --> 0:05:41.160 and the latest from Elon Musk. The Testa CEO has 0:05:41.160 --> 0:05:44.240 reportedly told executives the electric carmaker needs to cut staff 0:05:44.279 --> 0:05:48.160 by abound ten percent. According to Reuter's, Musk sent out 0:05:48.160 --> 0:05:51.880 an email titled pause all hiring worldwide. The report says 0:05:51.960 --> 0:05:54.840 Musk has a quote super bad feeling about the economy. 0:05:55.040 --> 0:05:57.240 Testa shares are down more than three and a half 0:05:57.279 --> 0:05:59.880 percent in early trading. On the flip side, Nathan well 0:06:00.080 --> 0:06:03.080 Art is adding employees. The retailer will build four new 0:06:03.120 --> 0:06:05.839 e commerce warehouses and a push to speed deliveries. The 0:06:05.839 --> 0:06:08.800 move will create more than four thousand jobs. It also 0:06:08.839 --> 0:06:12.039 will let Walmart reach nine of the US population with 0:06:12.120 --> 0:06:15.600 one or two days shipping. That's from about seventy right 0:06:15.600 --> 0:06:18.640 now on the earning strite today, Karen Shares of Lululemon 0:06:18.680 --> 0:06:21.280 Athletica are up more than one percent in early training. 0:06:21.279 --> 0:06:24.039 The company reported results that beat estimates. We get the 0:06:24.040 --> 0:06:28.120 details from Bloomberg's Doug Prisner. The athletic ware retailer reported 0:06:28.120 --> 0:06:32.039 comp stores sales rose in the first quarter and net 0:06:32.080 --> 0:06:36.239 revenue reached one point six billion dollars. Importantly, Lulu Lemon 0:06:36.320 --> 0:06:39.480 also raised its full year forecast. The company is expecting 0:06:39.480 --> 0:06:42.080 sales to reach as much as seven point seven billion 0:06:42.160 --> 0:06:45.760 in its fiscal year. Lulu Lemon has been accelerating deliveries 0:06:45.800 --> 0:06:49.239 to get products to stores in time to meet robust demand. 0:06:49.600 --> 0:06:52.880 Even so, the company says logistics problems that hurt performance 0:06:52.920 --> 0:06:56.839 since the holiday season haven't yet fully been alleviated. In 0:06:56.880 --> 0:06:59.440 New York, I'm Doug Prisner, Bloomberg Daybreak, All Right, Doug 0:06:59.440 --> 0:07:02.839 FANKSS and P futures down fourteen points, staff futures down 0:07:02.880 --> 0:07:06.080 seventy Nastac futures are lower by seventy eight points. The 0:07:06.160 --> 0:07:08.840 tenure treasury is down four thirty seconds yield two point 0:07:08.920 --> 0:07:12.320 nine nime x crewed down nine tenths per cent, or 0:07:12.320 --> 0:07:14.600 a dollar nine at a hundred fifteen dollar seventy eight 0:07:14.640 --> 0:07:17.240 cents of barrel. Straight ahead, your latest local headlines and 0:07:17.320 --> 0:07:23.800 the check of sports. This is Bloomberg Sounds six o 0:07:23.920 --> 0:07:26.760 seven on Wall Street work sixty three degrees in Central Park. 0:07:26.840 --> 0:07:29.440 It's getting heavy on the George Washington Bridge after an 0:07:29.440 --> 0:07:31.680 earlier accident on the outbound side. We'll get more on 0:07:31.760 --> 0:07:34.760 traffic shortly. First, Michael Barr with more on what's going 0:07:34.760 --> 0:07:37.160 on in New York and around the world. Michael, thank 0:07:37.160 --> 0:07:41.400 you very much. Nathan. They're living in leaky and moldy units. Yesterday, 0:07:41.480 --> 0:07:44.440 New York lawmakers have approved a new entity to help 0:07:44.480 --> 0:07:48.440 finance much needed renovations at New York City's public housing developments. 0:07:48.800 --> 0:07:52.280 The New York City Public Housing Preservation Trust will allow 0:07:52.440 --> 0:07:56.000 the city Housing Authority to borrow money by pulling federal 0:07:56.120 --> 0:07:59.119 housing voutiers. The money will be used to make urgent 0:07:59.160 --> 0:08:01.800 repairs on his Many has a hundred thousand units on 0:08:01.960 --> 0:08:04.600 top of mold and leaks. Many of them are plagued 0:08:04.640 --> 0:08:08.080 by the lead paint and need critical upgrades to boilers 0:08:08.120 --> 0:08:12.080 and elevators. Texas prison officials say a convicted murderer on 0:08:12.120 --> 0:08:14.800 the run since escaping a prison bus on May twelfth 0:08:15.240 --> 0:08:18.200 has been killed after he killed a family of five 0:08:18.240 --> 0:08:22.280 and took their truck. Prison spokesman Jason Clark says Gonzalo 0:08:22.360 --> 0:08:25.680 Lopez was shot dead by law enforcement south of San 0:08:25.720 --> 0:08:31.840 Antonio late last night. Where we are very sadden that 0:08:31.960 --> 0:08:34.960 the murders happen, but I will tell you that we 0:08:35.040 --> 0:08:38.120 are breathing a sigh of relief that Lopez will not 0:08:38.160 --> 0:08:41.200 be able to hurt anyone else. Prison spokesman Jason Clark 0:08:41.320 --> 0:08:44.520 says the five killed in their residence included an adult 0:08:44.559 --> 0:08:48.880 and four miners. After Lopez broke in. Authorities in Tulsa, Oklahoma, 0:08:48.920 --> 0:08:51.480 say the suspect who killed four people inside a medical 0:08:51.520 --> 0:08:54.280 building Wednesday was a patient to one of the victims. 0:08:54.640 --> 0:08:57.640 The victims have been identified as Dr Preston Phillips, Doctor 0:08:57.760 --> 0:09:02.080 Stephanie Houston, Amanda Green, then William Love. The suspect has 0:09:02.080 --> 0:09:05.040 been identified as Michael Lewis tell Us. The police chief, 0:09:05.040 --> 0:09:09.720 Wendell Franklin, said Dr Phillips performed back surgery on Lewis, 0:09:09.720 --> 0:09:13.240 who was angry about lingering pain. Following the operation. We 0:09:13.320 --> 0:09:17.280 have also found a letter on the suspect which made 0:09:17.280 --> 0:09:20.840 it clear that he came in with the intent to 0:09:21.000 --> 0:09:24.600 kill Dr Phillips and anyone who got in his way. 0:09:24.960 --> 0:09:27.400 Chief Franklin says the shooter took his own life when 0:09:27.440 --> 0:09:32.000 officers closed. In Britain continues to mark the Queen's platinum Jubilelee. Today, 0:09:32.040 --> 0:09:35.160 a service of Thanksgiving takes place in St. Paul's Cathedral 0:09:35.240 --> 0:09:38.400 for the Queen's his story seventy years of service. Harry 0:09:38.400 --> 0:09:40.880 and Megan will be there. However, Prince Andrew will not. 0:09:41.040 --> 0:09:44.040 He tested positive for COVID, and the Queen, who is 0:09:44.160 --> 0:09:47.079 ninety six, decided to skip the trip because it will 0:09:47.160 --> 0:09:49.679 just be too much for her. Global news twenty four 0:09:49.679 --> 0:09:52.040 hours a day on air and on Bloombergy Quick Take, 0:09:52.080 --> 0:09:55.320 powered by more than und journalists and analysts more than 0:09:55.360 --> 0:09:58.440 a hundred twenty countries. At Michael bar this is Bloomberg. 0:09:58.559 --> 0:10:05.200 Nathan all right, Michael, thank you almost six ten on 0:10:05.240 --> 0:10:07.920 All Street time for the Bloomberg Sports Update with John Stes. 0:10:08.080 --> 0:10:10.640 All right, they've been starting pitching has carried the Yankees 0:10:10.640 --> 0:10:12.760 in this great start, and it was on display in 0:10:12.800 --> 0:10:14.400 the Bronx in the double header with the Angels up 0:10:14.400 --> 0:10:17.600 first was Nestor Cortez, arguably the best pitcher in the 0:10:17.640 --> 0:10:21.000 Major so far. Seven more scoreless innings. Yanks had four 0:10:21.080 --> 0:10:23.679 solo home runs, three came off show Otani. They won 0:10:23.760 --> 0:10:26.200 six to one as Cortes lowered as z R eight 0:10:26.240 --> 0:10:27.960 a one and a half. And then it was Jamison 0:10:28.000 --> 0:10:31.360 Tyone's turn, coming off eight scoreless innings at Tampa Bay 0:10:31.360 --> 0:10:33.360 where he allowed only two hits. Tyone win eight ins. 0:10:33.400 --> 0:10:36.080 Again he had a perfect game going in the eight. 0:10:36.160 --> 0:10:38.600 The Angels broke it up, broke up a scoreless game, 0:10:38.640 --> 0:10:40.720 but the Yanks came through bottom the eighth, they too 0:10:40.760 --> 0:10:43.920 out to run game winning pinch hit single for Anthony 0:10:44.000 --> 0:10:45.880 rizz On. The Yanks one two to one to sweep 0:10:46.320 --> 0:10:49.280 the twin Bill. Mets started their ten games Southern California 0:10:49.320 --> 0:10:51.880 road trip. They had only three hits, lost the Dodgers 0:10:51.880 --> 0:10:53.839 to nothing. That ends the Mets six game win Street 0:10:53.880 --> 0:10:55.800 Game one of the NBA Finals. The South is tilled 0:10:55.800 --> 0:11:00.720 by fifteen. They won with a big fourth quarter tat 0:11:01.000 --> 0:11:04.720 over the shoulder past Marcus Smart left side three, good night. 0:11:05.960 --> 0:11:09.360 What's gonna say about Marcus three? What they say? It's seven? 0:11:09.360 --> 0:11:11.440 In Boston, the co host Celts won that fourth quarter 0:11:11.440 --> 0:11:14.960 at forty to sixteen. That's the most lopsided fourth quarter 0:11:15.000 --> 0:11:18.679 score in finals history. Boston be Golden's Day one one 0:11:18.679 --> 0:11:20.640 oh a first team in finals history to come from 0:11:20.640 --> 0:11:23.679 more than ten down and win by more than ten's down. 0:11:23.760 --> 0:11:26.800 The Cup has Colorado shut out Edmonton for nothing to 0:11:26.960 --> 0:11:29.080 nothing lead in the West. Rangers go for a two 0:11:29.120 --> 0:11:31.319 nothing leading in the East. Tonight at the Garden. It's 0:11:31.360 --> 0:11:34.120 Game two with Tampa Bay or Rafael the Dal versus 0:11:34.160 --> 0:11:37.720 alex Arev. Today in Paris, French Open semifinals. Tomorrow's Women's 0:11:37.720 --> 0:11:41.480 final IgA Swayattech versus the eighteen year old American Cocoa 0:11:41.520 --> 0:11:44.880 Go John stash Were Bloomberg Sports, Nathan all Right, John 0:11:44.920 --> 0:11:48.160 thanks SMP futures down down fourteen points down features down 0:11:48.160 --> 0:11:51.200 seventy six sore nastack futures the ten your treasuries down 0:11:51.200 --> 0:11:54.880 three thirty seconds, yield two point nine one percent and 0:11:54.960 --> 0:11:57.439 to yield on the two year right now two point 0:11:57.559 --> 0:12:01.920 six four percent coming up. Comments from Black Rock CEO 0:12:02.120 --> 0:12:08.840 Larry Fink. This is Bloomberg Blomberg eleven three oh weather 0:12:08.880 --> 0:12:11.440 turning partly to hostly sunny today after the fog burns off. 0:12:11.440 --> 0:12:13.880 We'll get up to your seventy five degrees sunshine for 0:12:13.880 --> 0:12:17.920 the weekend. Upper seventies tomorrow, low seventies on Sunday right 0:12:17.920 --> 0:12:23.680 now sixty three in Central Park markets. Headlines and breaking 0:12:23.679 --> 0:12:26.600 news twenty four hours a day at Bloomberg dot Com, 0:12:26.720 --> 0:12:29.760 the Bloomberg Business at and at Bloomberg Quick Tape. This 0:12:30.200 --> 0:12:39.160 is a Bloomberg Business flash and I'm Karen Moscow U 0:12:39.200 --> 0:12:42.720 West Dock Index futures falling after report that Tesla chief 0:12:42.760 --> 0:12:45.480 executive Elon Muss said the electric car maker needs to 0:12:45.520 --> 0:12:49.720 cut staff amid a gloomy economic outlook. Investors also awaiting 0:12:49.760 --> 0:12:52.480 the mape Hayrolls report at any thirty Wall Street time. 0:12:52.760 --> 0:12:54.960 Hen we check the markets every fifteen minutes throughout the 0:12:54.960 --> 0:12:58.280 training day on Bloomberg s and P futures down sixteen 0:12:58.280 --> 0:13:01.160 points down, futures down eighty six, snaz DAG futures down 0:13:01.200 --> 0:13:03.439 eighty eight and the decks in Germany is at a 0:13:03.520 --> 0:13:06.800 quarter percent. Ten year treasury down three thirty seconds, yield 0:13:06.840 --> 0:13:08.959 two point nine one percent. They yield on the two 0:13:09.040 --> 0:13:12.440 year two point six four percent. Nine Max Screwede oil 0:13:12.600 --> 0:13:14.760 is down night ten percent and down a dollar six 0:13:14.800 --> 0:13:17.160 and a hundred fifteen dollars eighty one cents a barrel. 0:13:17.400 --> 0:13:19.920 Comex Gold is down two tens percent or two dollars 0:13:19.960 --> 0:13:23.120 eighty cents at eighteen sixty eight fifty announced the euro 0:13:23.240 --> 0:13:25.680 one point oh seven four two against the dollar, British 0:13:25.679 --> 0:13:28.240 pound one point to five seven zero, and a yen 0:13:28.360 --> 0:13:30.680 one thirty point oh nine. And Big Coin is down 0:13:30.679 --> 0:13:33.000 about a third of a percent at thirty thousand, one 0:13:33.080 --> 0:13:36.000 hundred twenty dollars. That's a bloomberg business flash. Now here's 0:13:36.040 --> 0:13:38.440 Michael Barr with more on what's going on around the world. 0:13:38.520 --> 0:13:41.320 Michael Karen, thank you very much. President Joe Biden called 0:13:41.360 --> 0:13:44.280 for a ban on the sales of assault weapons and 0:13:44.360 --> 0:13:49.240 high capacity magazines. How many more innocent American lives must 0:13:49.240 --> 0:13:53.200 be taken before we say enough enough? Meanwhile, the New 0:13:53.280 --> 0:13:56.480 York Legislature approved raising the legal age to buy semi 0:13:56.520 --> 0:13:59.760 automatic rifles from eighteen to twenty one. Game one of 0:13:59.840 --> 0:14:03.720 the NBA Finals, the Celtics beat the Warriors. After Wednesday's 0:14:03.760 --> 0:14:06.880 when the Rangers host Game two of the NHL East 0:14:06.960 --> 0:14:10.240 Final tonight against the Lightning. In baseball, the Yankees won 0:14:10.280 --> 0:14:12.400 a double head ever against the Angels. The Mets lost, 0:14:12.440 --> 0:14:16.320 along with the Nationals, Orioles and Giants. Global News twenty 0:14:16.320 --> 0:14:19.160 four hours a day on air and on Bloomberg Quicktake, 0:14:19.400 --> 0:14:22.480 powered by more than twenty seven hundred journalists and analysts 0:14:22.520 --> 0:14:25.200 in more than one hundred twenty countries. I'm Michael lar 0:14:25.400 --> 0:14:28.240 and this is Bloomberg. Nathan. All right, Michael, thank you. 0:14:28.360 --> 0:14:31.160 It's six nineteen on Wall Street Live from the Bloomberg 0:14:31.200 --> 0:14:34.120 Interactive Broker Studios. This is Bloomberg day Break. We know 0:14:34.160 --> 0:14:36.400 want to bring you an interview with black Rock Chief 0:14:36.440 --> 0:14:40.040 executive officer Larry Fink. He sat down with our David 0:14:40.080 --> 0:14:43.640 Weston on Bloomberg's Balance of Power and painted an uncertain 0:14:43.760 --> 0:14:46.680 picture for the economy. Fate told David the only thing 0:14:46.720 --> 0:14:50.440 he's sure about is the market will continue to be unpredictable. 0:14:50.720 --> 0:14:53.000 The markets have had sort of a rocky road. Can 0:14:53.000 --> 0:14:55.920 we say so far this year as you look forward, 0:14:56.280 --> 0:14:59.320 is there any real prospect it? Can they can recoup 0:14:59.360 --> 0:15:02.920 in the second half a year? Probably not, not totally. 0:15:03.600 --> 0:15:07.840 Um Let's start off, the market has recalibrate itself. We 0:15:07.840 --> 0:15:10.360 we witnessed now exchanging policies and the feder Reserve we 0:15:10.480 --> 0:15:14.720 raised short rates we have, so we saw a recalibration 0:15:14.760 --> 0:15:18.640 of growth stocks um that's principally of the majority of 0:15:18.680 --> 0:15:22.080 the downfall. And yet and the index are masking some 0:15:22.160 --> 0:15:24.400 of the problems because part of the index are energy 0:15:24.440 --> 0:15:26.720 companies commodity companies that are up quite a bit. So 0:15:26.760 --> 0:15:29.360 if you look at the you know, the volatility in 0:15:29.400 --> 0:15:31.760 the market and the spread between winners and losers, it's 0:15:31.880 --> 0:15:34.480 pretty broad this year. And so we've taken out a 0:15:34.520 --> 0:15:36.600 lot of those gains that we saw during the COVID 0:15:36.720 --> 0:15:40.240 years and during the two years where we were you know, 0:15:40.320 --> 0:15:43.760 changing our lives and we were emphasizing different companies, and 0:15:43.800 --> 0:15:46.120 now we're seeing the reverse impact of that. So that 0:15:46.240 --> 0:15:49.320 was one of the foundations of it. But now there's 0:15:49.400 --> 0:15:55.120 greater recognition that inflation is not transitory. It is probably 0:15:55.120 --> 0:15:57.720 with us for a number of years, and at the 0:15:57.760 --> 0:16:00.160 type of inflation that I don't believe that at a 0:16:00.240 --> 0:16:03.600 reserve has the policy or the tools to do much 0:16:03.720 --> 0:16:06.440 with it right now. And I'm personally not blaming the 0:16:06.480 --> 0:16:08.720 Fed Reserved for where they where we are right now, 0:16:09.120 --> 0:16:11.680 but I believe most of the problems we're living with 0:16:11.720 --> 0:16:15.240 today are more policy generated and supply generated. It's been 0:16:15.280 --> 0:16:19.600 aggravated now obviously by COVID and lockdowns in different parts 0:16:19.720 --> 0:16:22.160 of the world where we are manufacturing goods. It has 0:16:22.200 --> 0:16:27.040 been further aggravated about the Ukraine uh Russian War and 0:16:27.080 --> 0:16:30.080 where we have supply shocked. But I have this fundamental 0:16:30.200 --> 0:16:32.720 view that much of the inflation has been generated by 0:16:32.720 --> 0:16:37.000 some very large policy policy shifts. In the United States. 0:16:37.560 --> 0:16:40.720 We have Jamie Diamond talking about a hurricane. Potentially, are 0:16:40.760 --> 0:16:43.360 you saying something that's significant? What's the chance of her session? 0:16:43.640 --> 0:16:46.400 And not so much of this year, But in twenty 0:16:46.400 --> 0:16:49.360 four I think Jamie said one outcome could be a hurricane. 0:16:49.600 --> 0:16:52.120 It may not be that, So you know, you know, 0:16:52.160 --> 0:16:55.040 I know that sounds so perfect for the media hurricane, 0:16:55.080 --> 0:16:59.360 but uh, I don't. I could see scenarios where it 0:16:59.360 --> 0:17:04.440 could be quite add another another downward draft of significance, 0:17:05.200 --> 0:17:07.960 um uh, and that's going to be dependent on earnings 0:17:08.640 --> 0:17:14.639 going forward. But I could also see a scenario where 0:17:15.640 --> 0:17:18.840 we're gonna be muddling along for the next year or 0:17:18.880 --> 0:17:22.000 two right around this level, and you know, maybe up 0:17:22.200 --> 0:17:24.480 five p down ten percent. But we're gonna be in 0:17:24.520 --> 0:17:27.679 this range bound area until we have better information. And 0:17:27.640 --> 0:17:30.040 the one thing I will say with total certainty, we're 0:17:30.080 --> 0:17:33.159 gonna be living with more uncertainty. And and so with 0:17:33.200 --> 0:17:35.600 that in mind, we are going to have bouts of 0:17:35.680 --> 0:17:38.200 fear which is going to bring down the markets and 0:17:38.200 --> 0:17:41.159 and a little more confidence going on forward. But we 0:17:41.240 --> 0:17:45.120 have not witnessed huge asset allocation changes by our investors. 0:17:45.200 --> 0:17:46.600 I was gonna ask about that, what are you see 0:17:46.640 --> 0:17:48.720 in your funds? For example, are people buying bonds ag 0:17:48.720 --> 0:17:50.480 in for example, in your pow Oh my gosh. In 0:17:50.520 --> 0:17:53.240 the month of May, we've had we had the biggest 0:17:53.280 --> 0:17:56.720 increase in ETF bond purchases. Um. I mean, we had 0:17:56.720 --> 0:18:01.040 thirty something billion dollars of inflows in bonds, whether it's 0:18:01.119 --> 0:18:03.560 credit or all that. So you were certainly seeing a 0:18:03.640 --> 0:18:08.720 revaluation of how far integrates need to go upward. Uh. 0:18:08.760 --> 0:18:11.959 And so that's also one of the big trends. I mean, 0:18:12.080 --> 0:18:14.040 you know, I'd say thirty days, so many people were 0:18:14.040 --> 0:18:18.080 calling for a deep recession and now people are mitigating that. Obviously, 0:18:18.320 --> 0:18:20.760 there are views that we could have a deeper session 0:18:20.880 --> 0:18:23.480 or a hurricane, but that's just one of the outcomes. 0:18:23.520 --> 0:18:25.960 I mean, I could. I think there's higher probabilities of 0:18:26.080 --> 0:18:29.120 outcomes that we're going to be more range bounds with 0:18:29.160 --> 0:18:32.040 a lot of fatility. Certainly, there's uncertain about exactly what 0:18:32.080 --> 0:18:34.000 happens with the Fed. Maybe not so much on rate 0:18:34.040 --> 0:18:36.280 increases as one are the consequences will be of the 0:18:36.359 --> 0:18:39.600 quantity of tightening which actually started this week this week, 0:18:39.800 --> 0:18:42.080 what are those consequences likely to be? In your judgment, 0:18:42.080 --> 0:18:45.840 you better find new buyers. I think the market place 0:18:45.920 --> 0:18:49.040 does not understand the dependency of low rates was on 0:18:49.400 --> 0:18:52.000 the QUI purchases with the trillions of dollars at the 0:18:52.000 --> 0:18:55.920 Federal Reserve. But let's let's be clear. Between Japan and China, 0:18:55.960 --> 0:18:57.800 they own, you know, close to two and a half 0:18:57.800 --> 0:19:01.560 trillion dollars of US traceries too, So there are big 0:19:01.600 --> 0:19:05.639 owners and big players and and obviously what will be 0:19:05.680 --> 0:19:09.160 the future clearing prices rates with less QUI and now 0:19:09.280 --> 0:19:11.560 reversal it do we need to get up to a 0:19:11.640 --> 0:19:15.080 three percent tenure to meet a lot more demand, and 0:19:15.200 --> 0:19:16.919 so much of this is we're all gonna have to 0:19:16.920 --> 0:19:19.240 see what is what are the cons And that was 0:19:19.240 --> 0:19:22.920 Black Rock CEO Larry Fink speaking with Bloomberg David Weston. 0:19:23.040 --> 0:19:26.679 You can catch their full conversation on our website Bloomberg 0:19:26.760 --> 0:19:29.880 dot com. Right now, S ANDP futures are down thirteen 0:19:29.920 --> 0:19:33.120 points down, futures down fifty nine, NASTAC futures lower by 0:19:33.160 --> 0:19:35.520 seventy nine points as we await the release of the 0:19:35.600 --> 0:19:38.320 May pay rolls report in just about two hours time. 0:19:38.800 --> 0:19:42.160 Full coverage of that for you right here on Bloomberg Radio. 0:19:42.600 --> 0:19:44.920 Tend your treasuries down to thirty seconds, the yield two 0:19:44.920 --> 0:19:46.840 point nine one percent and the yield on the two 0:19:46.920 --> 0:19:49.840 year two point six four percent. Nime X crew down 0:19:49.920 --> 0:19:53.840 nine tenths percent, down ninety nine cents at fifty eight 0:19:53.840 --> 0:19:56.600 cents of barrel, just to haad President Biden's plea for 0:19:56.640 --> 0:20:00.119 action on guns and Elon Musk's super bad feel thing 0:20:00.160 --> 0:20:02.440 about the economy. Five things you need to notice start 0:20:02.440 --> 0:20:08.440 your day coming up on Bloomberg Daybreak. Bloomberg Daybreak is 0:20:08.440 --> 0:20:11.000 brought to you by Hofstra University's Frank G's r School 0:20:11.000 --> 0:20:13.520 of Business, top ranked online NBA program with a real 0:20:13.560 --> 0:20:16.560 world foundation. Learn more at Hofstra dot e d U 0:20:16.840 --> 0:20:25.639 slash go grad Broadcasting live from the Bloomberg Interactive broker 0:20:25.760 --> 0:20:29.160 studio in New York, Bloomberg E Living Free on to Washington, 0:20:29.240 --> 0:20:33.320 d C. Bloomberg to Boston, Bloomberg one O six one 0:20:33.440 --> 0:20:36.880 to San Francisco, Bloomberg during sixteen to the country, Sirius 0:20:37.040 --> 0:20:39.479 XM to the one nine team, and around the globe 0:20:39.560 --> 0:20:43.200 the Bloomberg Business app and Bloomberg Radio dot com. This 0:20:43.480 --> 0:20:51.960 is Bloomberg Daybreak. It's six thirty on Wall Street. Good morning. 0:20:52.040 --> 0:20:54.879 I'm Nathan Hager and I'm Karen Moscow. We are just 0:20:54.960 --> 0:20:57.760 about three hours away from the open of US trading. 0:20:57.800 --> 0:20:59.920 Time for the five things you need to notice r 0:21:00.080 --> 0:21:02.320 your day brought to you by I b k R 0:21:02.720 --> 0:21:06.360 Investment Advisers switched to Interactive Brokers for lowest cost global 0:21:06.400 --> 0:21:09.840 trading and turnkey custody solutions, no ticket charges and no 0:21:09.920 --> 0:21:13.000 conflicts of your interests at IBKR dot com slash r 0:21:13.080 --> 0:21:17.080 i A first President Biden addressed the nation last night 0:21:17.119 --> 0:21:19.840 with a plea to curb gun violence after a wave 0:21:19.920 --> 0:21:23.359 of deadly mass shootings across the country. Bloomberg said, Baxter 0:21:23.520 --> 0:21:28.440 has the details. Biden says enough and urges congressional action. Now. 0:21:28.680 --> 0:21:31.600 If we can't ban assault weapons and we should raise 0:21:31.680 --> 0:21:35.719 the age to purchase them from eighteen to one, strength 0:21:35.760 --> 0:21:39.880 and background checks, enact safe storage law and red flag laws. 0:21:40.640 --> 0:21:45.000 Repeal the immunity to protect gun manufactures and liability, address 0:21:45.040 --> 0:21:48.080 the mental health crisis. Biden says Second Amendment of Rights 0:21:48.119 --> 0:21:50.280 will not be violated and says he doesn't want to 0:21:50.320 --> 0:21:53.639