WEBVTT - Bloomberg Daybreak: June 6, 2022 - Hour 2 (Radio) 0:00:02.640 --> 0:00:06.400 Live from the Bloomberg Interactive Brooker Studios is Bloomberg Daybreak 0:00:06.440 --> 0:00:10.760 for Monday, June six. Coming up this shower. Stocks rise 0:00:10.840 --> 0:00:13.160 around the world as we begin a new trading week. 0:00:13.200 --> 0:00:16.279 Oil gains is Saudi Arabia, Racist prices in Asia more 0:00:16.320 --> 0:00:19.799 than expected. President Biden takes executive action to boost the 0:00:19.920 --> 0:00:23.120 U S. Solar industry, and UK Prime Minister Boris Johnson 0:00:23.120 --> 0:00:26.160 faces that key leadership vote. He was a deadly weekend 0:00:26.160 --> 0:00:28.880 of shootings as U S. Senators work on gun reform. 0:00:29.000 --> 0:00:32.640 Plus primary elections take place in seven states tomorrow, including 0:00:32.640 --> 0:00:36.640 New Jersey. I'm Michael Barr. More ahead, I'm John stashon sports. 0:00:36.640 --> 0:00:38.800 A late goal lift in Tampa Bay over the Rangers, 0:00:38.800 --> 0:00:41.839 the Warriors beat the Celtics, wins for the Mets and Yankees. 0:00:44.400 --> 0:00:48.360 That's All's trading ahead on Bloomberg Daybreak on Bloomberg eleven 0:00:48.440 --> 0:00:52.920 three on New York, Bloomberg one, Washington, d C, Bloomberg 0:00:52.920 --> 0:00:56.640 one oh six one, Boston, Bloomberg nine sixties, San Francisco, 0:00:57.120 --> 0:01:00.840 Syrius Exam one nineteen and around the world long Bloomberg 0:01:00.920 --> 0:01:07.840 Radio dot Com and via the Bloomberg Business App. Good morning, 0:01:07.840 --> 0:01:11.080 I'm Karen Moscow. I'm Nathan Hagar. Bloomberg Daybreak is brought 0:01:11.120 --> 0:01:14.120 to you by b n Y Melon, Pershing's Insight conference 0:01:14.160 --> 0:01:16.520 back in person June fifteen through the seventeenth of the 0:01:16.560 --> 0:01:19.560 Gaylord Resort in grape Vine, Texas. Don't miss it. Register 0:01:19.680 --> 0:01:23.800 now at Insights dot b n y Melon dot com 0:01:23.840 --> 0:01:26.640 and Futures This morning on the rise six o one 0:01:26.640 --> 0:01:28.880 on Wall Street, we checked the markets every fifteen minutes 0:01:28.920 --> 0:01:31.520 throughout the trading day on bloomberg S and P Future 0:01:31.600 --> 0:01:34.039 is at forty points now, Futures up two d fifty 0:01:34.080 --> 0:01:37.000 two and nasday futures up one hundred sixty one. The 0:01:37.080 --> 0:01:40.120 decks in Germany's up nine tenths of a percent. The 0:01:40.319 --> 0:01:43.800 tenure Treasury is down seven thirty seconds to yield is 0:01:43.840 --> 0:01:45.840 at two point on six percent of the yield on 0:01:45.920 --> 0:01:49.280 the two year two point six eight percent. Nathan, Well, Karen, 0:01:49.320 --> 0:01:51.160 we are seeing this lift in markets as we begin 0:01:51.200 --> 0:01:53.640 a new trading week and helping to boost sentiment in 0:01:53.800 --> 0:01:58.320 Asia Beijing reopening further from COVID restrictions. Let's get the 0:01:58.360 --> 0:02:01.840 recap from Bloomberg's Juliette sal in Singapore. Morning. Juliet, Good morning, 0:02:01.920 --> 0:02:04.800 Nathan and Karen, Japanese equities are raised earlier losses, and 0:02:04.880 --> 0:02:07.920 Texas rose in Hong Kong following the long weekend, this 0:02:08.120 --> 0:02:10.680 after a gauge of Chinese companies traded in the US 0:02:10.720 --> 0:02:13.760 had risen two percent of the two trading sessions that 0:02:13.840 --> 0:02:17.160 Hong Kong had been closed. Stocks in Maitland China advanced 0:02:17.160 --> 0:02:20.480 as Beijing ease back COVID nineteen restrictions, also lifting the 0:02:20.480 --> 0:02:23.680 on Choi one. Australian stocks fell, bucking the trend ahead 0:02:23.680 --> 0:02:27.840 of an expected second consecutive interest rate increased Tuesday, whilstwiss 0:02:27.880 --> 0:02:31.240 Bank Ubs said buying the Assi Dolla is a phenomenal 0:02:31.280 --> 0:02:35.400 trade in Singapore. Juliette Sally Bloomberg Daybreak a right Juliet, 0:02:35.400 --> 0:02:37.359 thank you all. Oil also on the rise this morning, 0:02:37.400 --> 0:02:40.280 approaching a hundred twenty dollars of barrel. Saudi Arabia is 0:02:40.320 --> 0:02:43.800 signaling confidence and demand for oil. The kingdom raised prices 0:02:43.840 --> 0:02:47.400 more than expected for Asian customers again. More from Bloomberg 0:02:47.400 --> 0:02:51.080 Markets Live editor Heather burg Sad Arabia signal competence with 0:02:51.120 --> 0:02:54.320 the demand um with the bigger than expected price increase 0:02:54.360 --> 0:02:58.480 of its crude for Asia, and overall we're seeing improving 0:02:58.480 --> 0:03:02.040 demand picture. Um, we're heading into peak summer driving season, 0:03:02.600 --> 0:03:05.440 and also in China, which is the top crude buyer. 0:03:05.600 --> 0:03:09.120 They um, they continue to ease COVID restrictions, we should 0:03:09.120 --> 0:03:12.760 also help the demand side of oil and Bluebear Markets 0:03:12.760 --> 0:03:15.680 Line editor Heather Berg says oil has rallied almost sixty 0:03:16.160 --> 0:03:19.160 this year. Checking prices right now, nine NX screwded oil 0:03:19.639 --> 0:03:22.440 up eight tens per center cents and a hundred nineteen 0:03:22.440 --> 0:03:24.919 dollars eighty cents of barrel and brent is up eight 0:03:24.919 --> 0:03:28.600 tens percent at a D twenty seventy three cents. Rising 0:03:28.600 --> 0:03:32.280 oil prices have certainly been a major factor in inflation increases. 0:03:32.360 --> 0:03:35.720 Karen and now President Biden's Commerce chief Gena Romando, says 0:03:35.960 --> 0:03:38.400 it may make sense to lift tariffs on some imported 0:03:38.400 --> 0:03:42.760 products help ease higher prices steel and aluminum. We've decided 0:03:42.800 --> 0:03:45.200 to keep some of those tariffs because we need to 0:03:45.240 --> 0:03:48.360 protect American workers and we need to protect our our 0:03:48.400 --> 0:03:51.600 steel industry. That's a matter of national security. There are 0:03:51.640 --> 0:03:56.480 other products, um, you know, household goods, bicycles, etcetera. Uh, 0:03:56.680 --> 0:03:59.560 and it may make sense. Commerce Secretary Gena Romando made 0:03:59.560 --> 0:04:02.560 the comments on CNN over the weekend, we all straight 0:04:02.680 --> 0:04:05.680 bracing for a key report on inflation. Nathan. We get 0:04:05.680 --> 0:04:08.600 the story from Bloombergy's Vinny del ju Dice. The Labor 0:04:08.640 --> 0:04:12.040 Department will issue May's consumer price index on Friday. Economists 0:04:12.080 --> 0:04:14.480 say that you over your inflation rate will continue near 0:04:14.560 --> 0:04:17.960 historic levels, copping eight percent. A major driver in May 0:04:18.160 --> 0:04:21.360 record petroleum costs in addition to the sustained run up 0:04:21.360 --> 0:04:25.040 another household stables. Also on this week's data agenda, University 0:04:25.040 --> 0:04:28.279 of Michigan figures on consumer sentiment. Sentiment has been running 0:04:28.320 --> 0:04:32.159 low as the quest of living runs Highnce Bloomberg day Break, 0:04:32.160 --> 0:04:34.680 All right, Vinny, thank you. As the Fed remains focused 0:04:34.680 --> 0:04:37.719 on fighting inflation, we are getting word from Goldman Sachs 0:04:37.800 --> 0:04:40.680 that the US economy remains on a narrow path to 0:04:40.760 --> 0:04:42.840 a soft landing. Let's get more on that line from 0:04:42.839 --> 0:04:45.719 Bloomberg's You Need a Young Good Morning, Grened a good morning, Nathan. 0:04:45.839 --> 0:04:49.920 Goldman says improving inflation numbers and other factors suggests that 0:04:49.960 --> 0:04:52.400 the Fed may be able to pull off its aggressive 0:04:52.480 --> 0:04:55.720 rate hike plan without tipping the country into a recession. 0:04:56.160 --> 0:04:59.880 Goldman economists say sequential core inflation appears to be slowing 0:05:00.200 --> 0:05:03.160 and pressures on the supply chain are improving, even as 0:05:03.200 --> 0:05:06.599 signs of softening in the job market emerges. Now, the 0:05:06.640 --> 0:05:10.039 economists say, while the deterioration and indicators like the first 0:05:10.080 --> 0:05:14.760 quarters GDP contractions suggest near term recession risks has increased, 0:05:15.120 --> 0:05:18.960 other measures show output is expanding. Live in New York, 0:05:19.040 --> 0:05:21.480 I'm reneed a young Bloomberg day break right re need 0:05:21.480 --> 0:05:23.320 to thank you. At least a half a dozen central 0:05:23.360 --> 0:05:26.159 banks are expected to raise interest rates this week. Meanwhile, 0:05:26.200 --> 0:05:29.359 the European Central Bank is predicting to finally join the 0:05:29.400 --> 0:05:34.039 global tightening bandwagon, with policymakers on Thursday expected to announce 0:05:34.040 --> 0:05:36.640 it and to bond purchases and formally begin the countdown 0:05:36.720 --> 0:05:39.840 to an increase in borrowing costs in July. While staying 0:05:39.880 --> 0:05:42.440 in Europe, care in the future of Boris Johnson is 0:05:42.480 --> 0:05:45.159 in focus as he faces a leadership vote in his 0:05:45.240 --> 0:05:47.800 ruling Conservative Party. Let's go to London and get the 0:05:47.880 --> 0:05:50.840 very latest with Bloomberg's human pots. Good morning and good morning, 0:05:50.920 --> 0:05:53.720 Nathan and Karen. After months of speculation, at eight a m. 0:05:53.839 --> 0:05:56.120 Outside the British House of the Parliament, it was announced 0:05:56.160 --> 0:05:58.120 that the Prime Minister is the face of votes of 0:05:58.160 --> 0:06:01.679 confidence in his leadership. This after more than fifteen percent 0:06:01.760 --> 0:06:05.039 of lawmakers from Boris Johnson's own Conservative party called for 0:06:05.080 --> 0:06:07.640 the votes. The pms be under five for a series 0:06:07.680 --> 0:06:11.119 of the legal gatherings at Downing Street during the COVID lockdowns. 0:06:11.160 --> 0:06:13.840 The votes on Johnson's future will conclude at eight p m. 0:06:14.040 --> 0:06:16.400 London time, and he needs the supports of at least 0:06:16.400 --> 0:06:19.520 half of lawmakers to keep his position in London. Immune 0:06:19.520 --> 0:06:21.680 Parts spoombook, debreak here and thank you back here. In 0:06:21.680 --> 0:06:24.719 the US, President Biden will take executive action to boost 0:06:24.760 --> 0:06:28.160 the US solar industry. Bloombergs Amy Morris has detailed Stoomer 0:06:29.000 --> 0:06:33.240 newsroom in Washington. Sources tell Bloomberg News the President plans 0:06:33.279 --> 0:06:36.560 to invoke the Defense Production Act to provide support for 0:06:36.760 --> 0:06:40.320 US made solar panels, while announcing a two year halt 0:06:40.440 --> 0:06:44.000 on new solar tariffs now that would allow domestic developers 0:06:44.160 --> 0:06:47.720 to use the foreign equipment while US manufacturing ramps up. 0:06:48.040 --> 0:06:50.160 The White House is also said to use the federal 0:06:50.200 --> 0:06:54.560 government's purchasing power to help support American clean energy manufacturers. 0:06:54.880 --> 0:06:58.200 The announcement could come as early as today. In Washington. 0:06:58.320 --> 0:07:00.880 I'm Amy Morris Bloomberg debrisk okay me thank you? In 0:07:00.920 --> 0:07:04.240 Starbucks is looking at external candidates only for its next CEO. 0:07:04.440 --> 0:07:06.760 That's according to interim chief Howard Schultz, who tells the 0:07:06.760 --> 0:07:09.120 Wall Street Journal the coffee chain needs to add new 0:07:09.200 --> 0:07:12.120 talent and skills to its leadership ranks. Schultz is in 0:07:12.160 --> 0:07:14.600 his third stint running Starbucks. He says he is not 0:07:14.680 --> 0:07:17.960 a candidate for the full time job. And you're listening 0:07:18.200 --> 0:07:24.280 to Bloomberg Daybreak for it sounds six o seven on 0:07:24.320 --> 0:07:27.520 Wall Street, sixty four degrees in Central Park, and we've 0:07:27.520 --> 0:07:30.200 got a crash on the upbound upper level of the 0:07:30.240 --> 0:07:32.840 George Washington Ridge. Details coming up in traffic. First Michael 0:07:32.840 --> 0:07:34.520 bar with more on what's going on in New York 0:07:34.600 --> 0:07:36.920 and around the world. Good morning, Michael, Good morning Nathan. 0:07:36.960 --> 0:07:39.440 A deadly weekend of shootings in the US and several 0:07:39.480 --> 0:07:42.960 states left about a dozen people dead. In Philadelphia, three 0:07:43.000 --> 0:07:46.360 people were killed and eleven wounded into shooting. Philadelphia Police 0:07:46.360 --> 0:07:49.360 Commissioner Daniel Outlaw says they are looking for the shooter 0:07:49.400 --> 0:07:52.040 who fled on foot. We're working with our local, state 0:07:52.080 --> 0:07:54.520 and federal partners to make sure that no lead is 0:07:54.600 --> 0:07:59.400 lost and that no stone remains unturned. Commissioner Outlaws has 0:07:59.440 --> 0:08:03.400 Authorities are offering a twenty dollar reward for information leading 0:08:03.440 --> 0:08:06.480 to the arrest of the shooter. Shooting near a Chattanooga 0:08:06.600 --> 0:08:09.679 nightclub left three dead. Police say four team were shot 0:08:09.720 --> 0:08:13.239 and three others were hit by vehicles. Chattanooga Mayor Tim Kelly, 0:08:13.440 --> 0:08:16.160 are there an avid hunter and a marksman all my life? 0:08:16.400 --> 0:08:18.600 And I want to say clearly a fully responsible I 0:08:18.640 --> 0:08:23.240 fully support rather responsible gun ownership. The Congress needs to 0:08:23.240 --> 0:08:26.520 do their jobs and past common sense regulations that will 0:08:26.560 --> 0:08:30.120 help stop this nonsense. Mayor Kelly implored parents to keep 0:08:30.200 --> 0:08:33.280 track of their children, especially if they suspect they carry 0:08:33.320 --> 0:08:36.600 guns mean while bipartisan group of U. S senators say 0:08:36.679 --> 0:08:39.680 gun talks are innching forward, though a deal is far 0:08:39.720 --> 0:08:43.000 from assured. Officials fear more than fifty people were killed 0:08:43.040 --> 0:08:46.880 in southwestern Nigeria when gunmen burst into a Catholic church 0:08:47.040 --> 0:08:51.840 during mass, opening fire and deadenating explosives. Primary elections in 0:08:51.880 --> 0:08:55.079 New Jersey and six other states take place tomorrow. It 0:08:55.160 --> 0:08:57.560 will set the stage for US House and Send It 0:08:57.600 --> 0:09:00.480 battles this fall and will play into cont troll of 0:09:00.559 --> 0:09:05.439 Congress In New Jersey's GOP primary, Tom Malinowski won by 0:09:05.480 --> 0:09:08.240 fewer than two percentage points in twenty and his district 0:09:08.559 --> 0:09:12.480 has become slightly more Republican since new congressional district lines 0:09:12.760 --> 0:09:16.160 were set last year. I'll see your eight and match it. 0:09:16.360 --> 0:09:19.200 The US and South Korea launched eight missiles into the 0:09:19.240 --> 0:09:23.520 Sea of Japan today in response to North Korea. Yesterday, 0:09:23.600 --> 0:09:27.280 the North test fired eight missiles as well into the sea. 0:09:27.640 --> 0:09:30.760 The South's military says he wanted to demonstrate the allies 0:09:30.800 --> 0:09:35.280 immediate precision strike capabilities and readiness to use them. Alec 0:09:35.360 --> 0:09:38.560 john Such, the basis and founding member of the iconic 0:09:38.640 --> 0:09:41.600 rock band Bon Jovias, died. He was the new Jersey 0:09:41.679 --> 0:09:46.000 rock bands basis. From three to Alec John Such was 0:09:46.040 --> 0:09:49.080 seventy global news twenty four hours a day on air 0:09:49.200 --> 0:09:52.240 and on Bloomberg quittake power by more than twenty seven 0:09:52.320 --> 0:09:54.720 hundred journalists and analysts more than a hundred twenty countries. 0:09:55.000 --> 0:10:02.719 Michael barn this is Bloomberg, Nathan. Thanks Michael six O 0:10:02.880 --> 0:10:04.959 nine on Wall Street time for the Bloomberg Sports Update 0:10:05.000 --> 0:10:07.800 with John Stashow x Nathan. Rangers fans probably did not 0:10:07.960 --> 0:10:11.520 realistically expect that series sweep of Tampa Bayo. They likely 0:10:11.559 --> 0:10:13.600 head to their minds. When the Rangers scored two power 0:10:13.600 --> 0:10:15.720 play goals in the second period, they led game three 0:10:15.760 --> 0:10:18.120 to nothing, but the Lightning came back a couple of 0:10:18.120 --> 0:10:19.760 power play goals of their own, and then in the 0:10:19.880 --> 0:10:23.280 final minute, the first and only five on five goal 0:10:23.320 --> 0:10:26.120 of the game goes shoot stay by the circuit pre 0:10:26.200 --> 0:10:28.880 bound to turn at right point let point head been 0:10:29.559 --> 0:10:37.839 class speed f f l A and Tampa. The goal 0:10:37.880 --> 0:10:40.200 came in only forty two seconds remaining. The Lightning won 0:10:40.240 --> 0:10:42.200 three two and the Rangers now leading series to one. 0:10:42.760 --> 0:10:46.120 Game four tomorrow, Game two of the NBA Finals, Warriors 0:10:46.720 --> 0:10:49.080 dominated the third quarter. That was the difference. They beat 0:10:49.080 --> 0:10:51.240 the Celtics one oh seven to eighty eight to tie 0:10:51.280 --> 0:10:54.120 the series at one. Quinn Snyder resigned after eight years 0:10:54.120 --> 0:10:56.600 as the coach of the Utah Jazz. Matt's in l 0:10:56.640 --> 0:10:58.480 A trailed early and then scored three runs of the 0:10:58.480 --> 0:11:00.400 eighth inning. They were one out from victory the bottom 0:11:00.400 --> 0:11:02.839 of the nine when the Dodgers tied the game. That's 0:11:02.840 --> 0:11:05.439 still won five, four and ten, and they gained a 0:11:05.559 --> 0:11:07.719 split of the four games set after they dropped the 0:11:07.720 --> 0:11:10.640 first two. They played tonight in San Diego Yankees are 0:11:10.640 --> 0:11:13.200 off a like. The Mets also won five four in 0:11:13.400 --> 0:11:15.760 tenantings after Detroit tied the game and the eighth of 0:11:15.840 --> 0:11:18.600 Josh Donaldson sacked fly in the tenth, and the Yanks 0:11:18.640 --> 0:11:21.120 sweep the six game homestand a third of the way 0:11:21.120 --> 0:11:23.800 through the season, the Yankees are thirty nine and fifteen. 0:11:23.840 --> 0:11:26.839 It's the best record any MLB team has had at 0:11:26.840 --> 0:11:30.160 this point in the last twenty one years, making fourteen 0:11:30.240 --> 0:11:33.800 French Open titles for Raffael Nodal twenty two Grand Slams. 0:11:33.840 --> 0:11:36.720 That's two more than Roger Federer and Novak Djokovic. Billy 0:11:36.760 --> 0:11:39.880 Horshaw won Memorial Galpin Ohio by four shots. John stash 0:11:39.880 --> 0:11:42.560 Eller Bloomberg Sports, Nathan Okay, John, thank you right now. 0:11:42.679 --> 0:11:45.120 SMP futures are up forty two point STUN futures up 0:11:45.120 --> 0:11:48.120 two sixty seven, NAZAC future is higher by a hundred 0:11:48.120 --> 0:11:50.680 sixty nine points, and the tenure treasury is down seven 0:11:50.720 --> 0:11:53.640 thirty seconds. The yield just shy of two point nine 0:11:53.679 --> 0:11:56.600 six per cent. More insights on this market as we 0:11:56.640 --> 0:11:59.720 get set for the new trading week. Michael Houston, Chief 0:11:59.720 --> 0:12:03.640 mark an Analyst at CMC Markets joins US next This 0:12:03.920 --> 0:12:09.240 is Bloomberg and Bloomberg Daybreak is brought to you by 0:12:09.280 --> 0:12:12.199 the Jewish Communal Fund JCFS. Don't advised fund is the 0:12:12.240 --> 0:12:15.440 smart choice to manage your philanthropy, especially in times of crisis. 0:12:15.520 --> 0:12:18.280 Make your giving impactful. Visit j c f n Y 0:12:18.520 --> 0:12:25.160 dot org, markets headlines and breaking news twenty four hours 0:12:25.160 --> 0:12:28.120 a day at Bloomberg dot com, the Bloomberg Business at 0:12:28.240 --> 0:12:37.559 and at Bloomberg Quicktake, This is a Bloomberg business flash 0:12:38.160 --> 0:12:40.680 and I'm Karin. Moscow songs in Europe are gaining along 0:12:40.679 --> 0:12:43.599 with US stock index futures as Beijing's latest move to 0:12:43.720 --> 0:12:47.120 use COVID restrictions and checks a note of optimism into 0:12:47.160 --> 0:12:51.280 markets rattled by inflation and rate high concerns treasuries and 0:12:51.440 --> 0:12:54.760 dollar slipping. We checked the markets every fifteen minutes throughout 0:12:54.760 --> 0:12:56.800 the trading day on Bloomberg. Right now, S and P 0:12:57.000 --> 0:12:59.880 futures have forty two points NOWL futures have two D 0:13:00.040 --> 0:13:03.000 sixty three and Nasdaq futures up one hundred sixty nine. 0:13:03.280 --> 0:13:06.520 The decks in Germany's up one percent ten your treasury 0:13:06.559 --> 0:13:09.160 down six thirty seconds. You'll two point nine five percent. 0:13:09.200 --> 0:13:11.600 The yield on the two year two point six eight percent. 0:13:12.000 --> 0:13:15.000 Nimex scrude oil is up half percent, or sixty four cents, 0:13:15.000 --> 0:13:17.320 at a hundred nineteen dollars fifty two cents a barrel. 0:13:17.559 --> 0:13:19.960 Comics schooled up a third per cent, or six dollars 0:13:19.960 --> 0:13:23.280 fifty cents. In eighteen fifty six, seventy announced the euro 0:13:23.400 --> 0:13:25.800 one point oh seven four four against the dollar, British 0:13:25.840 --> 0:13:28.319 found one point two five eight and the end one 0:13:28.400 --> 0:13:31.559 thirty point six eight. Bitcoin this morning is at four 0:13:31.600 --> 0:13:34.320 point nine percent at thirty one thousand, three d eighty 0:13:34.360 --> 0:13:37.360 eight dollars. That's a Bloomberg business flash. Now here's Michael 0:13:37.360 --> 0:13:39.720 Barr with more on what's going on around the world. 0:13:39.800 --> 0:13:42.720 Michael Karen, thank you very much. Boris Johnson could be 0:13:42.720 --> 0:13:46.280 ousted as Britain's Prime minister. He's facing an old confidence 0:13:46.360 --> 0:13:49.559 vote in his Conservative party after he had rule breaking 0:13:49.640 --> 0:13:53.760 parties during the COVID lockdown. Lawmakers in Washington say they're 0:13:53.800 --> 0:13:57.680 more hopeful than ever that bipartisan negotiations on gun reform 0:13:57.720 --> 0:14:00.840 will finally get somewhere me and while the several mass 0:14:00.880 --> 0:14:04.520 shootings over the weekend, the Warriors even the NBA Finals 0:14:04.559 --> 0:14:06.880 that a game of piece after beating the Celtics in 0:14:06.960 --> 0:14:10.160 Game three of the NHL East Final. The Rangers lost 0:14:10.160 --> 0:14:13.000 for the Lightning three too. In baseball, the Yankees and 0:14:13.040 --> 0:14:16.079 Mets one, the Red Sox beat the A's, the Orioles 0:14:16.160 --> 0:14:19.520 lost the Nationals and Giants one. Global News twenty four 0:14:19.560 --> 0:14:22.280 hours a day on air and on Bloomberg Quick Day, 0:14:22.600 --> 0:14:25.760 powered by more than twenty seven hundred journalists and analysts 0:14:25.800 --> 0:14:28.360 in more than a hundred twenty countries. Michael Barr, this 0:14:28.360 --> 0:14:31.080 is Bloomberg. Nathan. Okay, Michael, thank you his six nineteen 0:14:31.120 --> 0:14:33.960 on Wall Street Live from the Bloomberg Interactive Broker Studios. 0:14:34.000 --> 0:14:36.400 This is Bloomberg Daybreak, and just want to pass along 0:14:36.400 --> 0:14:39.280 this spread headline that just crossed the Bloomberg terminal moments ago. 0:14:39.560 --> 0:14:43.200 India in talks to increase Russian oil imports from Rosneft. 0:14:43.520 --> 0:14:45.520 Take a look at how that could impact the crude 0:14:45.560 --> 0:14:48.000 market with West Texas Intermediate right now at a half 0:14:48.000 --> 0:14:50.840 percent or a hundred nineteen dollars forty eight cents a barrel. 0:14:50.840 --> 0:14:54.120 On word that Saudi Arabia could be ready to increase production. 0:14:54.160 --> 0:14:56.120 Will be following that for you throughout the morning here 0:14:56.120 --> 0:14:58.760 on Bloomberg day Break. In the meantime, Michael Houston is 0:14:58.760 --> 0:15:02.040 with us this morning, Chief Mark, an analyst at CMC Markets, 0:15:02.120 --> 0:15:04.800 as we take a look at a risk on start 0:15:04.880 --> 0:15:09.520 to the week. Michael, good morning. Karen mentioned the boosting 0:15:09.600 --> 0:15:13.720 sentiment from China lifting some COVID restrictions. Could this be 0:15:13.760 --> 0:15:16.000 the start of something good for the equity market or 0:15:16.040 --> 0:15:19.720 is this a bear market rally. I still think this 0:15:19.800 --> 0:15:22.360 is potentially a bear market rally. I think nothing at 0:15:22.360 --> 0:15:26.280 the moment has convinced me otherwise. I think the picture 0:15:26.320 --> 0:15:29.960 will become slightly clearer, certainly in the context of whether 0:15:30.040 --> 0:15:31.960 or not inflation is peaked, and I think that is 0:15:31.960 --> 0:15:35.400 probably the overranching narrative at the moment. It's not so 0:15:35.520 --> 0:15:38.240 much whether or not China is starting to unlock. We 0:15:38.360 --> 0:15:43.480 knew that anyway. Um shanghaiing restrictions from the first of June. 0:15:44.280 --> 0:15:46.720 Beijing is starting to do the same thing. I think 0:15:46.720 --> 0:15:50.040 the biggest concern I think as regards the Chinese economy 0:15:50.160 --> 0:15:52.520 is concerned is whether or not we get a V 0:15:52.600 --> 0:15:55.360 shaped rebound there, and I'm not convinced that we can 0:15:56.120 --> 0:15:59.400 given the low vaccination rates of the Chinese population and 0:15:59.440 --> 0:16:03.440 the fact China is still insisting on zero COVID policy. 0:16:03.520 --> 0:16:06.800 So the bigger question is this week's you a CPI 0:16:08.000 --> 0:16:11.320 kind of we hit peak inflation or are we plessoing? 0:16:11.800 --> 0:16:15.800 And obviously what the e CBS intentions are going forward. 0:16:15.840 --> 0:16:17.080 So I think we're in a little bit of no 0:16:17.160 --> 0:16:19.720 man's land uncertainty over the course of the next two 0:16:19.720 --> 0:16:22.920 weeks because no sooner do we get the ECB out 0:16:22.960 --> 0:16:26.040 the way, and obviously we've got the Federal Reserve coming 0:16:26.120 --> 0:16:29.600 up next week as well. So what's your read on 0:16:29.680 --> 0:16:32.680 whether we could be at peak inflation at this point? 0:16:32.680 --> 0:16:36.479 What's your expectation heading into that CPI print coming on Friday. 0:16:37.200 --> 0:16:38.840 If I look at the bond market and I look 0:16:38.880 --> 0:16:42.080 at ten new yields, then certainly I think there is 0:16:42.640 --> 0:16:44.800 a perception on the part of bond markets that we 0:16:44.880 --> 0:16:47.480 have because if you look at the price action and 0:16:47.520 --> 0:16:49.920 you look at the fairly subdued reaction that we saw 0:16:50.000 --> 0:16:52.600 to Friday's payrolls date, for I think as long as 0:16:52.640 --> 0:16:56.080 the ten year yields stays below three that I certainly 0:16:56.080 --> 0:17:00.520 think there is a ability by markets to push the 0:17:00.640 --> 0:17:03.200 SMP higher. If we can get back above four thousand, 0:17:03.200 --> 0:17:08.480 two hundred and bond yields soften, then I think there's 0:17:08.520 --> 0:17:12.439 there's potentially good traction the further gains, but you know, 0:17:12.520 --> 0:17:16.960 let's not let's not get too overenthusiastic about this. We 0:17:17.000 --> 0:17:20.320 are still in a downtrend. We have been in a 0:17:20.440 --> 0:17:25.240 town trend since the end of last year. We can 0:17:25.280 --> 0:17:27.600 go back as far as four thousand, four hundred and 0:17:27.680 --> 0:17:31.320 still for me being a bear market rally. So I 0:17:31.320 --> 0:17:34.240 think there is potential for further upside, but I think 0:17:34.240 --> 0:17:36.159 an awful lot will depend on whether or not the 0:17:36.200 --> 0:17:40.000 Fed goes fifty basis points in September, which is what 0:17:40.000 --> 0:17:42.280 I think what markets are concerned about at the moment, 0:17:42.560 --> 0:17:45.399 in the aftermath of obviously a June and July. If 0:17:45.800 --> 0:17:48.280 basis points right movement, I think the picture will become 0:17:48.400 --> 0:17:52.760 much clearer. Jackson Hall and we do have the SMP 0:17:53.000 --> 0:17:57.639 right now at eight after the Friday close. Uh, Michael, 0:17:57.680 --> 0:18:01.120 we have just about a minute left here. What is 0:18:01.320 --> 0:18:05.280 your feel on whether the Fed is going to continue 0:18:05.560 --> 0:18:08.439 with aggressive rate hikes. It does seem as though the 0:18:08.440 --> 0:18:12.400 markets priced in fifty basis point moves this month and next. 0:18:12.520 --> 0:18:15.960 What should markets be looking for when it comes to 0:18:16.200 --> 0:18:19.680 gaming out whether we could see even more aggressive rate 0:18:20.040 --> 0:18:23.439 tightening in the months to come well. I think if 0:18:23.440 --> 0:18:26.080 we look at pc that has been on the downward 0:18:26.119 --> 0:18:30.439 track since March, I think if this week's CPI and 0:18:30.440 --> 0:18:33.400 them it comes in below eight points, or the core 0:18:33.480 --> 0:18:37.120 prices coming significantly lower, then we could see start price 0:18:37.280 --> 0:18:39.480 We could start to see pricing come out of that 0:18:39.560 --> 0:18:42.840 fifty basis point move that markets are already starting to 0:18:42.880 --> 0:18:45.800 price in. So I think the next few weeks, the 0:18:45.840 --> 0:18:48.080 next couple of weeks are going to be crucial. Softening 0:18:48.080 --> 0:18:51.240 in CPI this week and then see what the Fed 0:18:51.320 --> 0:18:53.800 says with respect to its dot plot and obviously it's 0:18:54.040 --> 0:18:57.560 forward guidance going forward next week. Now very important FED 0:18:57.600 --> 0:18:59.920 meeting coming up next week and at least a half 0:19:00.080 --> 0:19:04.560 dozen central banks expected to join the rate hiking party 0:19:04.680 --> 0:19:09.000 this week alone. Michael Houston, Chief Market Analyst CMC Markets 0:19:09.080 --> 0:19:12.280 as always great to get your thoughts as we get 0:19:12.359 --> 0:19:15.880 ready for another trading week ahead of all that central 0:19:15.880 --> 0:19:18.800 bank action this week and next. Looking ahead to the 0:19:18.840 --> 0:19:21.560 market open, we do have futures moving higher, with SMP 0:19:21.760 --> 0:19:24.920 futures up forty three points or one point one percent down. 0:19:25.000 --> 0:19:28.160 Futures are up two hundred sixty six points, and NAZDAC 0:19:28.200 --> 0:19:30.439 futures are leading the Games this morning up a hundred 0:19:30.440 --> 0:19:33.560 seventy four points. That's a gain of one point four percent. 0:19:33.960 --> 0:19:36.439 Docks in Germany up one percent, the cat in Paris 0:19:36.480 --> 0:19:38.480 up one point one percent, the foot Sea in London 0:19:38.560 --> 0:19:41.200 up one point three percent. Ahead of that confidence vote 0:19:41.440 --> 0:19:45.160 for UK Prime Minister Boris Johnson later today ten Your 0:19:45.160 --> 0:19:48.040 treasuries down six thirty seconds, the yield two point nine 0:19:48.119 --> 0:19:50.639 five percent and the yield on the two year two 0:19:50.680 --> 0:19:54.679 point six seven percent. Just ahead, the Biden administration opens 0:19:54.680 --> 0:19:57.840 the door to lifting some tariffs, and Goldman Sachs sees 0:19:57.880 --> 0:20:00.840 a narrow path to a soft landing. Five things you 0:20:00.880 --> 0:20:02.919 need to know to start your day Coming up on 0:20:03.000 --> 0:20:09.159 Bloomberg Daybreak and Bloomberg Daybreak is brought to you by 0:20:09.200 --> 0:20:12.160 hoff Street University's Frank gz RB School of Business, top 0:20:12.240 --> 0:20:15.200 ranked online MBA program with a real world foundation. Learn 0:20:15.240 --> 0:20:18.200 more at Hofstreed Dot E d U slash go grad. 0:20:22.280 --> 0:20:26.800 Broadcasting live from the Bloomberg Interactive Broker Studio in New York, 0:20:26.920 --> 0:20:31.600 Bloomberg E Living Freedom to Washington, d C, Bloomberg to Boston, 0:20:31.680 --> 0:20:34.920 Bloomberg one O six one to San Francisco, Bloomberg No. 0:20:35.200 --> 0:20:38.000 Sixt to the Country Sirius XM to the one nine 0:20:38.040 --> 0:20:40.920 team and around the globe, the Bloomberg Business at and 0:20:41.000 --> 0:20:50.880 Bloomberg Radio dot com. This is Bloomberg Daybreak hits six 0:20:50.920 --> 0:20:53.520 thirty on Wall Street. Good morning, I'm Nathan Hagar and 0:20:53.560 --> 0:20:56.160 I'm Karen Moscow. We're just about three hours away from 0:20:56.160 --> 0:20:58.359 the open of US trading. Time for the five things 0:20:58.480 --> 0:21:00.560 you need to notice start your day. Brought to you 0:21:00.720 --> 0:21:04.160 by I b k R Investment Advisers switched to Interactive 0:21:04.160 --> 0:21:08.240 Brokers for lowest cost global trading and turnkey custody solutions, 0:21:08.240 --> 0:21:10.960 no ticket charges and no conflicts of your interests at 0:21:10.960 --> 0:21:14.600 I v k R dot com slash r I A first. 0:21:14.640 --> 0:21:17.040 We're seeing a lift in markets to begin a new 0:21:17.080 --> 0:21:20.560 trading week, with a boost from Asia. Beijing is reopening 0:21:20.600 --> 0:21:24.600 further from its COVID restrictions, raising stocks in China. Japanese 0:21:24.600 --> 0:21:27.520 equities are raised earlier losses, and Tex shares rose in 0:21:27.640 --> 0:21:30.480 Hong Kong now also on the rise. This morning. Oil 0:21:30.600 --> 0:21:33.520 karen hovering about around a hundred twenty dollars of barrel. 0:21:33.840 --> 0:21:36.879 This comes to Saudi Arabia, signals confidence in demand for oil. 0:21:36.920 --> 0:21:39.760 The kingdom raised prices more than expected for Asian customers. 0:21:40.000 --> 0:21:43.240 Checking prices now, Nimex cruds up seven tenths per center 0:21:43.280 --> 0:21:45.880 eighty two cents at a hundred nineteen sixty nine cents 0:21:45.880 --> 0:21:48.320 of barrel brent is up seven tenths per cent at 0:21:48.320 --> 0:21:50.960 a hundred twenty dollars fifty three cents. And turning to 0:21:51.040 --> 0:21:55.680 Washington Now, Nathan President Biden's Commerce chief Gina Raimondo says 0:21:55.680 --> 0:21:58.879 the administration is not willing to lift all tariffs on 0:21:59.040 --> 0:22:03.240