1 00:00:02,600 --> 00:00:06,400 Speaker 1: My from the Bloomberg Interactive Brooker Studios is Bloomberg Daybreak 2 00:00:06,440 --> 00:00:10,680 Speaker 1: for Thursday May two, coming up this hour. Some off 3 00:00:10,680 --> 00:00:15,120 Speaker 1: continues as US futures add to yesterday's losses. JP Morgan 4 00:00:15,200 --> 00:00:17,680 Speaker 1: becomes the latest firm to cut its outlook for growth, 5 00:00:17,840 --> 00:00:20,960 Speaker 1: Melvin Capital calls it quits, becoming the latest casualty of 6 00:00:21,000 --> 00:00:23,120 Speaker 1: the sell off, and the White House takes another step 7 00:00:23,160 --> 00:00:26,560 Speaker 1: to address the Baby formulas shortage. The suspected gunman in 8 00:00:26,600 --> 00:00:30,120 Speaker 1: Buffalo supermarket shooting as a court appearance today, plus Supreme 9 00:00:30,120 --> 00:00:33,680 Speaker 1: Court justices are getting twenty four hour protection by Michael Barne. 10 00:00:33,720 --> 00:00:37,040 Speaker 1: More ahead, I'm John Stash, Aaron Swards. Game one to 11 00:00:37,080 --> 00:00:39,400 Speaker 1: the Hurricanes, they tied the Rangers late and then one 12 00:00:39,440 --> 00:00:44,960 Speaker 1: in overtime win to the Yankees and Mets. That's all 13 00:00:45,080 --> 00:00:48,760 Speaker 1: trended ahead on Bloomberg Daybreak on Bloomberg eleven three on 14 00:00:48,880 --> 00:00:53,320 Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh 15 00:00:53,360 --> 00:00:58,120 Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Sirius XM 16 00:00:58,160 --> 00:01:01,240 Speaker 1: one nineteen and around the world. Old on Bloomberg Radio 17 00:01:01,360 --> 00:01:08,520 Speaker 1: dot Com and via the Bloomberg Business app And good Morning, 18 00:01:08,520 --> 00:01:11,600 Speaker 1: I'm Karen Moscow and I'm John Tucker. Bloomberg Day Rank 19 00:01:11,680 --> 00:01:13,800 Speaker 1: being brought to you by B and B and Y 20 00:01:13,880 --> 00:01:18,120 Speaker 1: Melon Pershing's Inside Conference back in person June fifteen through 21 00:01:18,160 --> 00:01:21,800 Speaker 1: the seventh team in Grapevine, Texas. Must attend event for 22 00:01:21,840 --> 00:01:26,480 Speaker 1: financial advisors. Register today at Insight dot B and Y 23 00:01:26,600 --> 00:01:30,479 Speaker 1: Melon dot com. And futures this morning are lower. We're 24 00:01:30,480 --> 00:01:32,000 Speaker 1: coming up to six o one on Wall Street. We 25 00:01:32,080 --> 00:01:34,400 Speaker 1: checked the markets every fifteen minutes throughout the trading day. 26 00:01:34,480 --> 00:01:37,800 Speaker 1: On Bloomberg, SNP future is down sixty two points down. 27 00:01:37,840 --> 00:01:40,400 Speaker 1: Futures down four hundred fifty seven. At NAST day features 28 00:01:40,440 --> 00:01:43,560 Speaker 1: down two hundred. Ten year Treasury up eighteen thirty seconds, 29 00:01:43,640 --> 00:01:45,840 Speaker 1: Ye two point eight one percent. They yield on the 30 00:01:45,920 --> 00:01:48,520 Speaker 1: two year two point six one percent. And I make 31 00:01:48,600 --> 00:01:51,520 Speaker 1: screwed oil is down two point three percent, John, and 32 00:01:51,640 --> 00:01:54,840 Speaker 1: futures are down this morning, Karen. After yesterday's big sell off, 33 00:01:55,040 --> 00:01:57,280 Speaker 1: the S and P five hundred had its biggest single 34 00:01:57,360 --> 00:02:00,800 Speaker 1: day drop in nearly two years. Laurens, you know it 35 00:02:00,920 --> 00:02:05,200 Speaker 1: wealthwise as investors should proceed with caution. We are playing 36 00:02:05,200 --> 00:02:09,480 Speaker 1: it more conservatively than more aggressively, both on the fixed 37 00:02:09,480 --> 00:02:12,760 Speaker 1: income as well as on the equity, so dialing down 38 00:02:12,880 --> 00:02:16,960 Speaker 1: areas that are high yield or areas like that. Wealthwise 39 00:02:17,000 --> 00:02:20,680 Speaker 1: CEO Lauren Gilbert Stands say it's unclear when markets could stabilize. 40 00:02:20,919 --> 00:02:24,440 Speaker 1: Bearings chief global strategist Christopher Smart believes that in spite 41 00:02:24,440 --> 00:02:28,280 Speaker 1: of the uncertainty, there's still positive signs from the economy. 42 00:02:28,560 --> 00:02:31,760 Speaker 1: We still see the US economy is fundamentally strong. The 43 00:02:31,880 --> 00:02:34,840 Speaker 1: U S consumer is still very strong. Companies are ready 44 00:02:34,880 --> 00:02:38,240 Speaker 1: to you know, have very good balance sheets. Uh, and 45 00:02:38,280 --> 00:02:40,799 Speaker 1: we've just come through an earning session, an earning season 46 00:02:40,840 --> 00:02:43,760 Speaker 1: that has been relatively good. I think it's important to 47 00:02:43,880 --> 00:02:46,359 Speaker 1: understand that we're still a long way from a recession 48 00:02:46,360 --> 00:02:48,880 Speaker 1: in the US. Christopher Smart of Bearings is it's a 49 00:02:48,880 --> 00:02:51,840 Speaker 1: good time to focus on companies with strong business models 50 00:02:51,880 --> 00:02:55,440 Speaker 1: and balance sheets. The sell office extending overseas, John and 51 00:02:55,520 --> 00:02:58,760 Speaker 1: europe equities are falling hard a day after Britain posted 52 00:02:58,840 --> 00:03:02,079 Speaker 1: record inflation. On Burgh and Bloomberg's Max Ranty joins US 53 00:03:02,080 --> 00:03:05,480 Speaker 1: live from Brussels with the latest next Good morning, Good morning, 54 00:03:05,560 --> 00:03:07,960 Speaker 1: Karen and John ys to sell off gathering pace as 55 00:03:07,960 --> 00:03:10,640 Speaker 1: we get through the European equities session this morning, the 56 00:03:10,639 --> 00:03:13,079 Speaker 1: stock six hundred down two point two percent. Right now, 57 00:03:13,240 --> 00:03:15,880 Speaker 1: it's in the UK that we see the worst losses, 58 00:03:15,919 --> 00:03:19,160 Speaker 1: down two point six percent for the foot seat one hundred, 59 00:03:19,200 --> 00:03:21,240 Speaker 1: but it is still the best performing of the major 60 00:03:21,280 --> 00:03:25,040 Speaker 1: European indussees year to date, despite the challenges post from inflation, 61 00:03:25,040 --> 00:03:28,359 Speaker 1: which hit a forty year high in those CPI figures yesterday. 62 00:03:28,560 --> 00:03:31,320 Speaker 1: Live in Brussels, Max Ramsey bloom back daybreak thanks Max 63 00:03:31,400 --> 00:03:35,120 Speaker 1: starts in Asia also all overnight and Bloombridge. Juliet Sally 64 00:03:35,240 --> 00:03:38,160 Speaker 1: joins us with the latest from Singapore. Juliet, good morning, 65 00:03:38,200 --> 00:03:40,960 Speaker 1: Good morning, Karen and John. The MSCI Asia Pacific Index 66 00:03:41,000 --> 00:03:43,560 Speaker 1: halted a four day rally, posting its biggest one day 67 00:03:43,600 --> 00:03:46,680 Speaker 1: decline in to day since early March. Ten Cent shares 68 00:03:46,720 --> 00:03:49,160 Speaker 1: plunged in Hong Kong, dragging down the hang Sing Tech 69 00:03:49,240 --> 00:03:52,120 Speaker 1: Index after it posted its slowest revenue growth in the 70 00:03:52,120 --> 00:03:55,240 Speaker 1: first quarter since it's two thousand and four listing. Chinese 71 00:03:55,240 --> 00:03:57,720 Speaker 1: shares also came under pressure on the mainland after stan 72 00:03:57,880 --> 00:04:01,119 Speaker 1: Chart cut their twenty twenty two GDP forecast to four 73 00:04:01,160 --> 00:04:04,160 Speaker 1: point one from five percent, but OSSI bones in the 74 00:04:04,160 --> 00:04:07,760 Speaker 1: local currency rallied after Australia's unemployment level plunge to any 75 00:04:07,960 --> 00:04:11,000 Speaker 1: fifty year low in April, delivering a potential boon to 76 00:04:11,160 --> 00:04:13,880 Speaker 1: Prime Minister Scott Morrison's government as it into is the 77 00:04:13,920 --> 00:04:18,040 Speaker 1: final days of campaigning for Saturday's election in Singapore. Juliette 78 00:04:18,080 --> 00:04:21,400 Speaker 1: Sally Bloomberg Daybreak, Juliet thank you. Turning the Fed now 79 00:04:21,600 --> 00:04:23,880 Speaker 1: is looking more and more likely the Fed will follow 80 00:04:23,960 --> 00:04:27,520 Speaker 1: through on j Powell's recent hawkish comments to address inflation. 81 00:04:27,760 --> 00:04:30,719 Speaker 1: Philadelphia Fed President Patrick Harker plans on a series of 82 00:04:30,800 --> 00:04:33,880 Speaker 1: rate hikes at a measured pace going forward if there 83 00:04:33,920 --> 00:04:37,600 Speaker 1: are no significant changes in the data in the coming weeks. 84 00:04:38,520 --> 00:04:41,919 Speaker 1: I expect two additional fifty basis point rate hikes in 85 00:04:42,000 --> 00:04:45,120 Speaker 1: June and July. And Philadelphia Fed President Patrick Harker made 86 00:04:45,120 --> 00:04:47,320 Speaker 1: the comments at a virtual event hosted by the Mid 87 00:04:47,440 --> 00:04:50,720 Speaker 1: Sized Bank Coalition of America. He anticipates the economy and 88 00:04:50,800 --> 00:04:54,920 Speaker 1: whether a measured methodical tightening of monetary policy and JP 89 00:04:55,080 --> 00:04:58,960 Speaker 1: Morgan warning of declining growth economists sound the Bank lowering 90 00:04:59,000 --> 00:05:02,200 Speaker 1: their outlook of half up percent for the second half 91 00:05:02,240 --> 00:05:05,119 Speaker 1: of this year, but now forecast growth of two point 92 00:05:05,160 --> 00:05:08,800 Speaker 1: four percent. The bank science falling stock prices, hire mortgage 93 00:05:08,880 --> 00:05:12,560 Speaker 1: rates on a strong dollar has reasons for the revision. John. 94 00:05:12,600 --> 00:05:15,640 Speaker 1: It's been over a year since Melvin Capital Management suffered 95 00:05:15,680 --> 00:05:18,799 Speaker 1: severe losses and the Memes stock frenzy, and now Gabe 96 00:05:18,800 --> 00:05:21,960 Speaker 1: Plotkins firm is calling it quits. Bloomberg's We Need a 97 00:05:22,000 --> 00:05:23,680 Speaker 1: Young is here alive with more We need a good 98 00:05:23,680 --> 00:05:26,679 Speaker 1: morning and good morning Karen. Gabe Plotkin is shutting down 99 00:05:26,720 --> 00:05:30,359 Speaker 1: his seven point eight billion dollar hedge fund. Melvin Capital 100 00:05:30,360 --> 00:05:33,279 Speaker 1: Management was the most prominent victim of the Meme stock 101 00:05:33,360 --> 00:05:38,080 Speaker 1: frenzy of January one, losing billions. Now. The fund posted 102 00:05:38,120 --> 00:05:41,719 Speaker 1: a fifty five percent loss that month alone, and since then, 103 00:05:41,760 --> 00:05:44,200 Speaker 1: Plotkin has been trying to claw his way back with 104 00:05:44,320 --> 00:05:47,719 Speaker 1: funding from some of Wall Street's biggest players. Although the 105 00:05:47,720 --> 00:05:51,240 Speaker 1: fund showed some promise last year, a plan to reimpose 106 00:05:51,320 --> 00:05:56,160 Speaker 1: fees frustrated backers and failed. Now Melvin Capitals outlining plans 107 00:05:56,200 --> 00:06:00,799 Speaker 1: to eliminate fees and return investor cash. I've in New York. 108 00:06:00,839 --> 00:06:03,880 Speaker 1: I'm gonned a young Bloomberg daybreak thanks for Rena. Turning 109 00:06:03,920 --> 00:06:06,840 Speaker 1: to the nation's capital, the White House remains laser focused 110 00:06:07,040 --> 00:06:10,200 Speaker 1: on easing the baby formula shortage, taking new measures in 111 00:06:10,279 --> 00:06:13,880 Speaker 1: tanda with Congress to address the crisis. Bloomberg's Amy Morris, 112 00:06:13,920 --> 00:06:17,120 Speaker 1: as the latest from our ninety one newsroom in Washington. 113 00:06:17,440 --> 00:06:21,320 Speaker 1: President Biden invoked emergency powers under the Defense Production Act 114 00:06:21,440 --> 00:06:25,000 Speaker 1: to try to boost production of baby formula while ordering 115 00:06:25,040 --> 00:06:29,040 Speaker 1: the use of government planes for imports called Operation Fly. 116 00:06:29,240 --> 00:06:32,000 Speaker 1: Formula has to be able to speed up the import 117 00:06:32,000 --> 00:06:35,680 Speaker 1: of infant formula and start getting more formula in stories 118 00:06:35,720 --> 00:06:38,279 Speaker 1: as soon as possible. Meanwhile, the House path the twenty 119 00:06:38,279 --> 00:06:41,080 Speaker 1: eight million dollar emergency funding bill for the FDA to 120 00:06:41,120 --> 00:06:44,800 Speaker 1: address the baby formula shortage. Republicans oppose the measure, and 121 00:06:44,880 --> 00:06:48,280 Speaker 1: its future in the Senate is uncertain. In Washington, I'm 122 00:06:48,279 --> 00:06:51,120 Speaker 1: maybe Morris Bloomberg daybreak, all right, Amy, thank you, and 123 00:06:51,200 --> 00:06:54,599 Speaker 1: President Biden meets today with Finland's president and Sweden's Prime 124 00:06:54,640 --> 00:06:57,920 Speaker 1: minister to discust the nations bids to join NATO. Turkey's 125 00:06:57,920 --> 00:07:00,560 Speaker 1: president has blocked the Alliance from starting the process for 126 00:07:00,680 --> 00:07:03,880 Speaker 1: both countries. He cites Finland and Sweden's approach to Kurdish 127 00:07:03,960 --> 00:07:07,640 Speaker 1: groups that he considers terrorists. Futures this morning lower SMP 128 00:07:07,800 --> 00:07:10,160 Speaker 1: futures down fifty five points and Down futures down four 129 00:07:10,200 --> 00:07:13,559 Speaker 1: hundred twelve, NASTAG futures down a hundred seventies seven straight, 130 00:07:13,560 --> 00:07:16,840 Speaker 1: A hand your latest local headlines, plus a check of sports, 131 00:07:17,280 --> 00:07:24,480 Speaker 1: and this is Bloomberg. He has six so settled on 132 00:07:24,520 --> 00:07:26,640 Speaker 1: wolfs for it. Let's bring in Michael Varne now to 133 00:07:26,720 --> 00:07:28,640 Speaker 1: find out what else is going on in New York 134 00:07:28,720 --> 00:07:32,360 Speaker 1: and around the world. Thank you very much. The white 135 00:07:32,560 --> 00:07:35,760 Speaker 1: eighteen year old gunmen accused of killing ten black people 136 00:07:35,800 --> 00:07:39,480 Speaker 1: at a Buffalo supermarket is scheduled to appear in court today, 137 00:07:39,840 --> 00:07:43,679 Speaker 1: authorities say. Shortly before the attack last Saturday, Peyton Gendrin 138 00:07:43,960 --> 00:07:48,000 Speaker 1: posted hundreds of pages of writings to online discussion groups 139 00:07:48,160 --> 00:07:51,040 Speaker 1: where he detailed his plans for the assault and his 140 00:07:51,200 --> 00:07:54,920 Speaker 1: racist motivation. It prompted New York Governor Kathy Hockle to 141 00:07:55,000 --> 00:07:58,600 Speaker 1: sign an executive order to create a domestic terrorism unit 142 00:07:58,840 --> 00:08:02,560 Speaker 1: to address the rise the home grown extremism. Hocal says, 143 00:08:02,600 --> 00:08:05,560 Speaker 1: among other things, it will alert authorities to anyone who 144 00:08:05,560 --> 00:08:10,480 Speaker 1: could become violent, requiring the state police to file an 145 00:08:10,480 --> 00:08:14,119 Speaker 1: extreme risk order of protection under New York's Red Flag 146 00:08:14,200 --> 00:08:17,000 Speaker 1: Law when they believe that an individual is a threat 147 00:08:17,040 --> 00:08:23,000 Speaker 1: to himself, herself or others. Previously current law, it's an 148 00:08:23,040 --> 00:08:27,160 Speaker 1: option to do so. According to Governor hocol Let, Buffalo 149 00:08:27,240 --> 00:08:30,280 Speaker 1: be the city where people said enough is enough. Meanwhile, 150 00:08:30,320 --> 00:08:32,839 Speaker 1: the U. S House passed legislation last night that would 151 00:08:33,000 --> 00:08:36,920 Speaker 1: bolster federal resources to prevent domestic terrorism in response to 152 00:08:36,960 --> 00:08:40,480 Speaker 1: the Buffalo shooting. Coronavirus variants are spreading in the US 153 00:08:40,559 --> 00:08:44,800 Speaker 1: and worldwide. At the Lighthouse COVID Response Team briefing, CDC 154 00:08:45,040 --> 00:08:49,680 Speaker 1: Director Dr Rochelle Wilenski, urging new precautions in areas where 155 00:08:49,679 --> 00:08:53,720 Speaker 1: community levels are high, everyone should be using prevention measures 156 00:08:53,720 --> 00:08:56,800 Speaker 1: and wearing a mask in public indoor setting. Dr Wilensky 157 00:08:56,880 --> 00:08:58,960 Speaker 1: says there is an uptick in COVID deaths about two 158 00:08:59,360 --> 00:09:03,120 Speaker 1: seventy day. New York Mayor Eric Adams said he has 159 00:09:03,200 --> 00:09:06,480 Speaker 1: no plans to reinstate a mask mandate in public schools, 160 00:09:06,760 --> 00:09:09,839 Speaker 1: even after health officials this week raised the city's COVID 161 00:09:09,880 --> 00:09:13,360 Speaker 1: alert level too high. During a news conference, Adam says, 162 00:09:13,400 --> 00:09:16,600 Speaker 1: we are not allowing COVID to out smartest, and so 163 00:09:16,880 --> 00:09:21,400 Speaker 1: I'm just really impressed with how we are operating as 164 00:09:21,400 --> 00:09:26,000 Speaker 1: a city. Various are going to continue to come. Mayor 165 00:09:26,040 --> 00:09:29,199 Speaker 1: Adams went on to say we're staying prepared and not panicking. 166 00:09:29,480 --> 00:09:32,360 Speaker 1: The federal government is warning law enforcement agencies around the 167 00:09:32,440 --> 00:09:36,400 Speaker 1: nation of the increased potential for extremist violence after the 168 00:09:36,480 --> 00:09:39,760 Speaker 1: leak of a draft Supreme Court opinion striking down the 169 00:09:39,760 --> 00:09:43,520 Speaker 1: constitutional right to abortion, The U. S. Marshals Service has 170 00:09:43,559 --> 00:09:47,360 Speaker 1: the Supreme Court justices under twenty four hour security. Global 171 00:09:47,400 --> 00:09:49,720 Speaker 1: News twenty four hours a day on air and on 172 00:09:49,800 --> 00:09:53,079 Speaker 1: Bloomberg Quick Take, powered by more than twenty seven hundred 173 00:09:53,120 --> 00:09:56,120 Speaker 1: journalists and analysts more than a hundred twenty countries. Michael 174 00:09:56,160 --> 00:10:03,760 Speaker 1: barn This is Bloomberg, John, Michael, thank you, Hey. It's 175 00:10:03,800 --> 00:10:05,640 Speaker 1: now six till on Wall Street. That's time for the 176 00:10:05,640 --> 00:10:09,360 Speaker 1: Bloomberg Sports Update. He's John Stehower. Thanks John. The Rangers 177 00:10:09,400 --> 00:10:12,000 Speaker 1: know all about losing a series opener in overtime. It 178 00:10:12,000 --> 00:10:14,559 Speaker 1: happened against Pittsburgh that was triple overtime at the Garden. 179 00:10:14,559 --> 00:10:16,640 Speaker 1: This one was in a Raleigh and it ended just 180 00:10:16,760 --> 00:10:20,240 Speaker 1: three minutes in. She gets at the Smith's luck to 181 00:10:20,320 --> 00:10:35,079 Speaker 1: get through as the c MC of the call. Rangers 182 00:10:35,080 --> 00:10:36,760 Speaker 1: for most of the night had a one nothing leading 183 00:10:36,800 --> 00:10:39,520 Speaker 1: a Philippino goal, where they didn't score again and Carolina 184 00:10:39,640 --> 00:10:42,040 Speaker 1: dominated the third period. They had a breakaway shot go 185 00:10:42,200 --> 00:10:45,040 Speaker 1: up the crossbar and another shot caramed off the post 186 00:10:45,080 --> 00:10:47,520 Speaker 1: and then with under threw to go Sebaston Ajo Scord 187 00:10:47,960 --> 00:10:50,480 Speaker 1: the time goal. Cole's game winner actually went in off 188 00:10:50,520 --> 00:10:53,839 Speaker 1: the stick a Ranger defenseman Ryan Lingren wild Star to 189 00:10:53,920 --> 00:10:57,240 Speaker 1: the Battle of Alberta. Calgary led five to one. Edmonton 190 00:10:57,320 --> 00:11:00,360 Speaker 1: tied the game at six, then the Flames won nine 191 00:11:00,440 --> 00:11:03,240 Speaker 1: to six. NBA West Finals Game one, Golden State throughout 192 00:11:03,320 --> 00:11:06,360 Speaker 1: Dallas by twenty five. Yankees won again in Baltimore, three 193 00:11:06,440 --> 00:11:08,079 Speaker 1: runs in the first an. They didn't score again, but 194 00:11:08,120 --> 00:11:10,360 Speaker 1: they won three two is. Garrett Cole went seven inings, 195 00:11:10,400 --> 00:11:13,439 Speaker 1: and Clay Homes the last two Homes has now thrown 196 00:11:13,440 --> 00:11:16,560 Speaker 1: almost twenty consecutive scoreless innings. The Yanks go for the 197 00:11:16,559 --> 00:11:19,520 Speaker 1: four game suite this afternoon at City Field. Mets pulled 198 00:11:19,520 --> 00:11:22,400 Speaker 1: away after four runs in the fifth inning, five more 199 00:11:22,400 --> 00:11:24,840 Speaker 1: in the eighth, including a Petlnzo three run homer. Max 200 00:11:24,840 --> 00:11:27,760 Speaker 1: Scherzer got the winners. The Mets meet the Cardinals eleven 201 00:11:27,760 --> 00:11:30,640 Speaker 1: to four, but Scherzer took himself out in the sixth 202 00:11:30,640 --> 00:11:33,079 Speaker 1: inning discomfort and his left side headed for an m 203 00:11:33,160 --> 00:11:36,840 Speaker 1: r I, but Scherzer said he doubts that it's anything serious. 204 00:11:36,840 --> 00:11:40,040 Speaker 1: P g H Championship begins this morning in Tulsa Tiger 205 00:11:40,080 --> 00:11:43,560 Speaker 1: Woods as an early tea time. John stash Award Bloomberg Sports. 206 00:11:43,600 --> 00:11:46,160 Speaker 1: John all right, John, thanks a lot. After yesterday's four 207 00:11:46,240 --> 00:11:49,560 Speaker 1: percent sell off for the SMP five hundred SMP futures 208 00:11:49,559 --> 00:11:53,319 Speaker 1: this morning, the point lower right now down fifty four points, 209 00:11:53,559 --> 00:11:57,720 Speaker 1: the DALLA futures four hundred eleven points, Flower Canada Asta 210 00:11:57,920 --> 00:12:01,200 Speaker 1: futures are down right now one at seventy five points. 211 00:12:01,520 --> 00:12:08,040 Speaker 1: You're listening the Bloomberg day Break and just to have 212 00:12:08,240 --> 00:12:12,240 Speaker 1: lessons from Wednesday's sell off, our own Joe Wisenthal stops 213 00:12:12,280 --> 00:12:16,480 Speaker 1: by to look at the bullwhip effect. We'll explain. This 214 00:12:16,600 --> 00:12:24,720 Speaker 1: is Bloomberg day Break, Markets, headlines and breaking news twenty 215 00:12:24,720 --> 00:12:27,599 Speaker 1: four hours a day at Bloomberg dot com, the Bloomberg 216 00:12:27,600 --> 00:12:30,559 Speaker 1: Business Out, and at Bloomberg Quick Tape. This is a 217 00:12:30,600 --> 00:12:39,880 Speaker 1: Bloomberg Business flash and I'm kring Moscow. The global stocks 218 00:12:39,880 --> 00:12:43,520 Speaker 1: are out deepening, European shares tumbling, and US Stock Index 219 00:12:43,640 --> 00:12:46,600 Speaker 1: Future is signaling more losses ahead. After yesterday's sell off 220 00:12:46,640 --> 00:12:49,160 Speaker 1: that ere raised one and a half trillion dollars of 221 00:12:49,200 --> 00:12:51,679 Speaker 1: market value from US equities. We checked the markets every 222 00:12:51,679 --> 00:12:54,199 Speaker 1: fifteen minutes throughout the trading day. On Bloomberg guess and 223 00:12:54,240 --> 00:12:57,360 Speaker 1: P futures down five points this morning, Down futures down 224 00:12:57,400 --> 00:13:01,000 Speaker 1: four and NASDAG futures down a hundred seven six. The 225 00:13:01,080 --> 00:13:03,200 Speaker 1: decks in Germany is down more than two percent. The 226 00:13:03,240 --> 00:13:05,760 Speaker 1: ten year treasury up eighteen thirty seconds, held two point 227 00:13:05,760 --> 00:13:08,200 Speaker 1: eight one percent yield on the two year two point 228 00:13:08,240 --> 00:13:11,200 Speaker 1: six one percent. No max Screwde oil is down one 229 00:13:11,200 --> 00:13:13,079 Speaker 1: point six percent out a dollar seventy one and a a 230 00:13:13,240 --> 00:13:16,080 Speaker 1: hundred seven dollars eighty eight cents of barrel COMEXS Gold 231 00:13:16,120 --> 00:13:18,360 Speaker 1: up six tenths percent or eleven dollars twenty cents at 232 00:13:18,360 --> 00:13:21,320 Speaker 1: eighteen thirty three sixty an ounce. The euro one point 233 00:13:21,360 --> 00:13:23,640 Speaker 1: oh five oh two against the dollar British bound one 234 00:13:23,640 --> 00:13:26,200 Speaker 1: point two four oh nine again is at one twenty 235 00:13:26,200 --> 00:13:29,280 Speaker 1: seven point six eight, and Bitcoin this morning is down 236 00:13:29,679 --> 00:13:33,520 Speaker 1: half percent at twenty nine thousand dollars. And shall me 237 00:13:33,760 --> 00:13:36,600 Speaker 1: posting his first quarterly revenue decline on record this after 238 00:13:36,640 --> 00:13:40,760 Speaker 1: beijing strict COVID containment policies crippled smartphone sales. We are 239 00:13:40,760 --> 00:13:44,559 Speaker 1: watching for some earnings today from companies including coals. That's 240 00:13:44,559 --> 00:13:47,240 Speaker 1: a Bloomberg business flash. Now here's Michael Barr with more 241 00:13:47,280 --> 00:13:49,720 Speaker 1: on what's going on around the world. Michael, thank you 242 00:13:49,840 --> 00:13:53,560 Speaker 1: very much, Jarren. The CDC's Independent Advisory Committee meets today 243 00:13:53,640 --> 00:13:57,720 Speaker 1: to discuss whether to authorize Fiser's COVID nineteen booster shot 244 00:13:57,800 --> 00:14:01,520 Speaker 1: children ages five to eleven. It's happening as the nation's 245 00:14:01,559 --> 00:14:05,839 Speaker 1: COVID resurgence reaches its highest point since mid February. The 246 00:14:05,920 --> 00:14:09,200 Speaker 1: suspected eighteen year old gunman in the deadly Buffalo supermarket 247 00:14:09,200 --> 00:14:13,280 Speaker 1: shooting has a court appearance today. Authorities continue to investigate 248 00:14:13,320 --> 00:14:17,560 Speaker 1: the possibility of a hate crime or terrorism charges against 249 00:14:17,600 --> 00:14:20,920 Speaker 1: Peyton Gendrin. In the NHL playoffs, the Rangers lost to 250 00:14:20,960 --> 00:14:23,280 Speaker 1: the Hurricanes to one in overtime in Game one of 251 00:14:23,320 --> 00:14:26,880 Speaker 1: their series. In the NBA playoffs, the Warriors won Game 252 00:14:26,920 --> 00:14:31,120 Speaker 1: one of their Western Conference Finals over the Mavericks. In baseball, 253 00:14:31,200 --> 00:14:34,000 Speaker 1: the Yankees beat the Orioles three to the Mets, Red 254 00:14:34,000 --> 00:14:37,040 Speaker 1: Sox and Nationals won the Giants, and A's lost. Global 255 00:14:37,080 --> 00:14:39,440 Speaker 1: news twenty four hours a day on air and on 256 00:14:39,480 --> 00:14:42,880 Speaker 1: Bloomberg quick Take, powered by more than twenty seven hundred 257 00:14:42,960 --> 00:14:45,440 Speaker 1: journalists and analysts more than a hundred twenty countries. I'm 258 00:14:45,480 --> 00:14:48,480 Speaker 1: like Labar, this is Bloomberg. Michael Thank you. Six twenty 259 00:14:48,560 --> 00:14:51,200 Speaker 1: on Wall Street. We are live from the Bloomberg Interactive 260 00:14:51,200 --> 00:14:54,960 Speaker 1: Broker Studios. This is Bloomberg Daybreak. The big story of 261 00:14:55,000 --> 00:14:58,440 Speaker 1: this week seems to be the absolute implosion of some 262 00:14:58,680 --> 00:15:03,720 Speaker 1: huge retail name sames like Walmart, Target, Costco. Join. I 263 00:15:03,720 --> 00:15:06,840 Speaker 1: guess now, Joe Wisenhal, Bloomberg News Managing editor and host 264 00:15:06,880 --> 00:15:09,720 Speaker 1: of the Odd Lots podcast, who just happened to write 265 00:15:09,720 --> 00:15:14,160 Speaker 1: a story with that exact headline, Joe, there's a shift 266 00:15:14,280 --> 00:15:17,920 Speaker 1: taking place? What is it? Yeah? I mean, look, you 267 00:15:18,000 --> 00:15:21,320 Speaker 1: know what people have expected for a long time is 268 00:15:21,360 --> 00:15:24,920 Speaker 1: that at some point there would be this big shift 269 00:15:25,040 --> 00:15:28,440 Speaker 1: away from the type of sort of durable goods household 270 00:15:28,520 --> 00:15:31,800 Speaker 1: goods consumption that we saw for the pandemic, because we 271 00:15:31,840 --> 00:15:35,200 Speaker 1: know there was this big durable goods boom, but nobody 272 00:15:35,440 --> 00:15:37,680 Speaker 1: really knew when. And if you think about it, you know, 273 00:15:37,760 --> 00:15:41,400 Speaker 1: like remember what the story was last fall. Would there 274 00:15:41,440 --> 00:15:45,560 Speaker 1: be empty shelves on the on the stores for Christmas? 275 00:15:45,560 --> 00:15:47,640 Speaker 1: And so what you have is this effect where it's 276 00:15:47,640 --> 00:15:51,800 Speaker 1: like everybody wanted to load up, everybody wanted to have inventories, 277 00:15:51,920 --> 00:15:54,880 Speaker 1: everybody wanted to make sure that there was no um, 278 00:15:54,920 --> 00:15:57,360 Speaker 1: you know, empty shelves. And what we're seeing now is 279 00:15:57,400 --> 00:16:00,880 Speaker 1: that the consumption shift has happened in a big way 280 00:16:01,040 --> 00:16:03,880 Speaker 1: really in the last two months, this sort of normalization 281 00:16:03,920 --> 00:16:07,520 Speaker 1: of consumption. And now we see these huge piles of 282 00:16:07,720 --> 00:16:11,360 Speaker 1: unsold inventories places like Target and Walmart, and that's a 283 00:16:11,440 --> 00:16:14,960 Speaker 1: pretty sort of like to costly. It's a costly shift 284 00:16:15,040 --> 00:16:18,040 Speaker 1: for them. What am I spending my money on? Now? 285 00:16:18,160 --> 00:16:21,400 Speaker 1: What if I shifted to? You know what? Target said 286 00:16:21,480 --> 00:16:25,800 Speaker 1: yesterday that they're seeing a huge surge in luggage sales. 287 00:16:25,880 --> 00:16:28,880 Speaker 1: So one category that is doing extremely well for Target 288 00:16:28,920 --> 00:16:31,360 Speaker 1: is luggage. But it's pretty obvious like what that means. 289 00:16:31,480 --> 00:16:34,240 Speaker 1: It's like the things that we put off for two 290 00:16:34,360 --> 00:16:36,560 Speaker 1: years are coming back in a big way, and one 291 00:16:36,560 --> 00:16:39,080 Speaker 1: of them is travel in BacT I know myself, you know, 292 00:16:39,160 --> 00:16:41,040 Speaker 1: I'm not even typically a big traveler. I think I've 293 00:16:41,040 --> 00:16:44,080 Speaker 1: been on like twelve flights in the last month and 294 00:16:44,080 --> 00:16:46,400 Speaker 1: a half, which is like a record for me. It's 295 00:16:46,440 --> 00:16:49,760 Speaker 1: like different work things, some vacations, some other traveling. And 296 00:16:49,840 --> 00:16:52,960 Speaker 1: so this big shift is happening from the type of 297 00:16:53,000 --> 00:16:55,600 Speaker 1: things that a lot of people simply did not do 298 00:16:55,800 --> 00:16:59,160 Speaker 1: for essentially two straight years. Okay, so we've we're going 299 00:16:59,200 --> 00:17:04,040 Speaker 1: from buying stuff to services. Services the biggest part of 300 00:17:04,040 --> 00:17:07,720 Speaker 1: the economy. Um that gets a boost. Maybe the prices 301 00:17:07,760 --> 00:17:12,600 Speaker 1: coming down on the stuff, Joe, the problem solved, Well, 302 00:17:13,640 --> 00:17:16,680 Speaker 1: you look, it is the big hope, right. I don't 303 00:17:16,680 --> 00:17:19,240 Speaker 1: know if the problem is solved, but the hope would 304 00:17:19,240 --> 00:17:23,680 Speaker 1: be at least that when we have normalized consumption, where 305 00:17:23,760 --> 00:17:27,320 Speaker 1: we when we're our lifestyle but our purchasing petits are 306 00:17:27,440 --> 00:17:31,119 Speaker 1: roughly what they were in twenty nineteen, that mixtures returned, 307 00:17:31,680 --> 00:17:35,600 Speaker 1: that then supply chains and offices and all that can 308 00:17:35,680 --> 00:17:38,280 Speaker 1: more or less work is intended, and that that's that 309 00:17:38,480 --> 00:17:41,639 Speaker 1: the FED would love that, investors would love it. We 310 00:17:41,680 --> 00:17:44,040 Speaker 1: don't know if that will happen, especially on the price side, 311 00:17:44,080 --> 00:17:48,119 Speaker 1: because look, we know that rents are picking up. That's 312 00:17:48,200 --> 00:17:51,320 Speaker 1: not something that you know, it is like looks like 313 00:17:51,359 --> 00:17:54,480 Speaker 1: it's going to go away imminently. We know that services 314 00:17:54,520 --> 00:17:57,919 Speaker 1: prices are saying firming inflation. So I think the jury 315 00:17:58,040 --> 00:18:00,760 Speaker 1: is still out on whether the sort of inflation will 316 00:18:00,800 --> 00:18:03,920 Speaker 1: normalize just when our consumption normalizes, but I think that 317 00:18:03,960 --> 00:18:05,560 Speaker 1: will be part of it. And look, we know like 318 00:18:05,640 --> 00:18:08,560 Speaker 1: there is an element of the current inflation that sort 319 00:18:08,560 --> 00:18:11,399 Speaker 1: of related to the pandemic, and so the big question 320 00:18:11,480 --> 00:18:17,800 Speaker 1: is how much we'll probably find out soon what's sort 321 00:18:17,800 --> 00:18:21,480 Speaker 1: of like real underlying inflation looks like, and that will 322 00:18:21,480 --> 00:18:23,439 Speaker 1: tell us how much more work the FED has to 323 00:18:23,480 --> 00:18:28,280 Speaker 1: do to get back to target. What's the bull whip effect? Yeah, 324 00:18:28,320 --> 00:18:32,119 Speaker 1: I mean, it's this phenomenon that supply chain professionals have 325 00:18:32,359 --> 00:18:35,359 Speaker 1: talked about for a long time, long before the pandemic. 326 00:18:35,400 --> 00:18:40,480 Speaker 1: But it basically is this phenomenon in which it becomes 327 00:18:40,480 --> 00:18:45,800 Speaker 1: extremely hard in a shock to accurately gauge um uh 328 00:18:46,000 --> 00:18:49,040 Speaker 1: proper level of inventory and buying, and people don't have 329 00:18:49,160 --> 00:18:52,000 Speaker 1: much visibility into what the end consumer is going to 330 00:18:52,040 --> 00:18:56,479 Speaker 1: look like. So companies change their whole patterns. You see, okay, 331 00:18:56,520 --> 00:19:01,399 Speaker 1: we're getting a big pickup in demand for are toast 332 00:19:01,520 --> 00:19:05,159 Speaker 1: offens or new refrigerators or the you know, furniture, and 333 00:19:05,200 --> 00:19:09,119 Speaker 1: so then everybody starts cranking up uh you know, production 334 00:19:09,160 --> 00:19:11,680 Speaker 1: of furniture and orders of furniture, and then people over 335 00:19:11,880 --> 00:19:14,480 Speaker 1: order because again, remember we had these shortages, and so 336 00:19:14,600 --> 00:19:16,800 Speaker 1: if you're facing shortages, when you do, you're like, well, 337 00:19:16,800 --> 00:19:18,640 Speaker 1: I'm going to order even more just to make sure 338 00:19:18,640 --> 00:19:21,119 Speaker 1: I don't run out. But then it sort of whips 339 00:19:21,119 --> 00:19:23,960 Speaker 1: in the other direction, and then you have these really 340 00:19:24,080 --> 00:19:28,560 Speaker 1: magnified errors in both directions where you go from shortages 341 00:19:28,960 --> 00:19:33,400 Speaker 1: to gluts very fast because of the compensation in either direction. 342 00:19:33,640 --> 00:19:36,680 Speaker 1: It sounds like they're parallels. Also to FED Policy, Joel 343 00:19:36,760 --> 00:19:39,680 Speaker 1: thanks a lot, appreciate it. Joey isn't thought, the Bloomberg 344 00:19:39,720 --> 00:19:43,920 Speaker 1: News Managing editor, also the host of the Odd Lots podcast. 345 00:19:44,560 --> 00:19:48,119 Speaker 1: And I had the cash of about Wall Street futures 346 00:19:48,400 --> 00:19:51,600 Speaker 1: after yesday four percent sell off for the SMP five hundred. 347 00:19:52,040 --> 00:19:55,479 Speaker 1: We have futures lower this morning. SMP futures down fifty 348 00:19:55,480 --> 00:19:58,320 Speaker 1: two down future is four hundred two points lower than 349 00:19:58,359 --> 00:20:01,960 Speaker 1: AMSDACK futures down one utter day and seventy points. You're 350 00:20:02,000 --> 00:20:07,920 Speaker 1: listening to Bloomberg Day Prey and the Bloomberg Weather from 351 00:20:08,040 --> 00:20:12,159 Speaker 1: meteorologist Rob Carolin. They have some real heavy rain this 352 00:20:12,320 --> 00:20:15,480 Speaker 1: morning for rain will end this morning becoming party site 353 00:20:15,480 --> 00:20:22,920 Speaker 1: the Heights Aptude today seventy to seventy five degrees broadcasting 354 00:20:22,960 --> 00:20:26,680 Speaker 1: live from the Bloomberg Interactive Broker Studio in New York. 355 00:20:26,800 --> 00:20:31,480 Speaker 1: Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, 356 00:20:31,560 --> 00:20:35,359 Speaker 1: Bloomberg one six one to San Francisco, Bloomberg nine sixty 357 00:20:35,520 --> 00:20:38,320 Speaker 1: to the country, Sirius XM Chad A one nineteen and 358 00:20:38,400 --> 00:20:41,760 Speaker 1: around the globe, the Bloomberg Business apt and Bloomberg Radio 359 00:20:41,880 --> 00:20:51,600 Speaker 1: dot com. This is Bloomberg Daybreak. He's six thirty on 360 00:20:51,680 --> 00:20:54,280 Speaker 1: blow Street. Good morning, I'm John Tucker and I'm Karen 361 00:20:54,320 --> 00:20:57,000 Speaker 1: Moscow or just about three hours away from the open 362 00:20:57,000 --> 00:20:59,040 Speaker 1: of US trading time for the five things you need 363 00:20:59,080 --> 00:21:02,200 Speaker 1: to notice start your brought to you by Interactive Brokers. 364 00:21:02,400 --> 00:21:05,440 Speaker 1: Interactive Brokers charges margin loan rates from one point three 365 00:21:05,520 --> 00:21:08,560 Speaker 1: three to two point three three percent, rates subject to change. 366 00:21:08,640 --> 00:21:12,439 Speaker 1: Learn more at ibk R dot com. Slash compare up first. 367 00:21:12,600 --> 00:21:15,200 Speaker 1: US future is falling again as stocks come off their 368 00:21:15,240 --> 00:21:18,280 Speaker 1: worst day in nearly two years. Weak retail earnings are 369 00:21:18,280 --> 00:21:21,200 Speaker 1: stoking concerns about the consumer sector, and Mark Cudmore is 370 00:21:21,240 --> 00:21:24,359 Speaker 1: a macro strategist for Bloomberg News. The weakness for the 371 00:21:24,400 --> 00:21:27,439 Speaker 1: consumer sector was related in my point of view, and 372 00:21:27,440 --> 00:21:29,280 Speaker 1: it makes sense that it's finally come. We kind of 373 00:21:29,280 --> 00:21:31,720 Speaker 1: seem to be denying reality there. The bit that I'm 374 00:21:31,760 --> 00:21:35,399 Speaker 1: really confused about is how fragile is the consumer overall? 375 00:21:35,480 --> 00:21:37,680 Speaker 1: Because our session is definitely coming by the way, there's 376 00:21:37,680 --> 00:21:39,520 Speaker 1: no chance of avoiding a hard landings we're just talking 377 00:21:39,520 --> 00:21:42,520 Speaker 1: about when it comes. Bloomberg macro strategist Mark cud Morris 378 00:21:42,600 --> 00:21:46,040 Speaker 1: as the most optimistic view has the US entering recession 379 00:21:46,160 --> 00:21:49,040 Speaker 1: next year. So where do investors put their money? There's 380 00:21:49,080 --> 00:21:51,399 Speaker 1: no good answer. According to David Dits, he's seen your 381 00:21:51,440 --> 00:21:56,320 Speaker 1: portfolio strategist at Pepak Private Wealth. The alternatives like bitcoin 382 00:21:56,400 --> 00:21:59,520 Speaker 1: have crash show there's only cash. But you know, with 383 00:22:00,359 --> 00:22:02,840 Speaker 1: close to eight percent cash doesn't look very good for 384 00:22:02,880 --> 00:22:05,040 Speaker 1: the long haul either. So it's a real hand reading 385 00:22:05,119 --> 00:22:08,200 Speaker 1: time for investors. The facts Davids was against on Bloomberg 386 00:22:08,200 --> 00:22:10,800 Speaker 1: Business Week heard Weekday Afternoons from two to five and 387 00:22:10,840 --> 00:22:15,920 Speaker 1: Bloomberg Radio five hundred four percent yesterday. This morning, SMP 388 00:22:16,080 --> 00:22:19,280 Speaker 1: futures are down one point four percent. Well, the latest 389 00:22:19,320 --> 00:22:23,320 Speaker 1: casualty of the sell off John Melvin Capital, Gabe Plotkin's 390 00:22:23,400 --> 00:22:26,000 Speaker 1: hedge fund as calling it quests and bloombergerny to Young 391 00:22:26,080 --> 00:22:28,240 Speaker 1: joins us live at the very latest. Good morning, Nina, 392 00:22:28,359 --> 00:22:31,320 Speaker 1: Good morning Karen. Gabe Plotkin is shutting down his seven 393 00:22:31,480 --> 00:22:35,439 Speaker 1: point eight billion dollar hedge fund. Melvin Capital Management was 394 00:22:35,480 --> 00:22:39,960 Speaker 1: the most prominent victim of last year's memestock frenzy, losing billions. 395 00:22:40,320 --> 00:22:43,879 Speaker 1: The fund posted of fifty five percent lost that month alone, 396 00:22:44,280 --> 00:22:46,760 Speaker 1: and since then, Plotkin has been trying to claw his 397 00:22:46,800 --> 00:22:50,160 Speaker 1: way back with funding from some of Wall Street's biggest players. 398 00:22:50,520 --> 00:22:53,280 Speaker 1: Now the fund showed some promise last year, but a 399 00:22:53,280 --> 00:22:58,000 Speaker 1: plan to reimpose fees frustrated backers and failed. Now Melvin 400 00:22:58,040 --> 00:23:01,520 Speaker 1: Capital is outlining plans to elimit eight fees and return 401 00:23:01,600 --> 00:23:04,800 Speaker 1: investor cash. Live in New York. I'm gonna need a 402 00:23:04,800 --> 00:23:07,680 Speaker 1: young Bloomberg payperreak. Thanks for the earnings from Cisco. Also 403 00:23:07,720 --> 00:23:10,159 Speaker 1: wing on sentiment, the tech combody warning that lockdowns in 404 00:23:10,240 --> 00:23:13,639 Speaker 1: China and supply chain disruptions could white bound sales growth 405 00:23:13,640 --> 00:23:16,600 Speaker 1: this quarter. Cisco shares down more than ten percent and 406 00:23:16,720 --> 00:23:19,479 Speaker 1: early trading and some big names on Wall Street are 407 00:23:19,560 --> 00:23:22,679 Speaker 1: slashing their forecast. Economist at JP Morgan are cutting their 408 00:23:22,760 --> 00:23:25,880 Speaker 1: US growth outlook for the year to two point four percent, 409 00:23:25,960 --> 00:23:27,920 Speaker 1: and most Fargo is cutting its view on the SNP 410 00:23:28,040 --> 00:23:31,560 Speaker 1: five hundred. It's year on target now hovers around. That's 411 00:23:31,600 --> 00:23:33,400 Speaker 1: the five things you need to notice start your day. 412 00:23:33,400 --> 00:23:39,359 Speaker 1: Brought to you by Interactor Brokers. All right, thanks Karen, 413 00:23:39,640 --> 00:23:42,600 Speaker 1: it is now six thirty three. Yeah, it's time now 414 00:23:42,800 --> 00:23:45,159 Speaker 1: the bringing Michael bar for what else is going on 415 00:23:45,280 --> 00:23:48,200 Speaker 1: in New York end around the world. Thank you, John. 416 00:23:48,240 --> 00:23:50,840 Speaker 1: The white eighteen year old gunmen accused of killing ten 417 00:23:50,960 --> 00:23:53,960 Speaker 1: black people at a Buffalo supermarket is scheduled to appear 418 00:23:54,000 --> 00:23:58,159 Speaker 1: in court today. Authorities continue to investigate the possibility of 419 00:23:58,240 --> 00:24:02,720 Speaker 1: hate crime or terrorism riges against Peyton Gendrin. Meanwhile, the 420 00:24:02,760 --> 00:24:07,000 Speaker 1: district attorney prosecuting the case says the authorities correctly followed 421 00:24:07,080 --> 00:24:11,400 Speaker 1: protocol when investigating the threat the shooter made a year ago. 422 00:24:11,920 --> 00:24:15,280 Speaker 1: Broome County d A. Mike Corteck, New York State Police 423 00:24:15,840 --> 00:24:20,200 Speaker 1: followed up appropriately on what the school district advised them 424 00:24:20,240 --> 00:24:25,000 Speaker 1: off They properly transported the individual to Bingaton General Hospital 425 00:24:25,000 --> 00:24:28,280 Speaker 1: for a mental health evaluation. DA Cortchack says everyone involved 426 00:24:28,280 --> 00:24:32,119 Speaker 1: will be reevaluating their procedures. New York Governor Kathy Hoco 427 00:24:32,200 --> 00:24:36,440 Speaker 1: authorized the state's Attorney General to investigate social media platforms 428 00:24:36,520 --> 00:24:39,800 Speaker 1: used by the suspected gunmen to determine whether they were 429 00:24:39,840 --> 00:24:43,400 Speaker 1: liable for providing the platform to plan and promote violence. 430 00:24:43,800 --> 00:24:47,399 Speaker 1: Local said social media companies have to take responsibility for 431 00:24:47,560 --> 00:24:52,040 Speaker 1: incendiary content on their platforms. That's the intersection of two 432 00:24:52,119 --> 00:24:57,160 Speaker 1: crises right now. They're unfolding in our country, the mainstreaming 433 00:24:57,160 --> 00:25:03,399 Speaker 1: of hate speech, of racism, nationalism, white supremacy, and the 434 00:25:03,560 --> 00:25:09,320 Speaker 1: easy access to military style weapons and magazines. Governor Uncle 435 00:25:09,359 --> 00:25:12,960 Speaker 1: also says she signed an executive order that requires state 436 00:25:13,000 --> 00:25:16,000 Speaker 1: police to flying people who might be deemed the danger 437 00:25:16,080 --> 00:25:19,400 Speaker 1: to themselves or others. New York Mayor Eric Adams said 438 00:25:19,440 --> 00:25:22,000 Speaker 1: he has no plans to reinstate a mask mandate in 439 00:25:22,040 --> 00:25:25,639 Speaker 1: public schools, even after health officials this week raised the 440 00:25:25,680 --> 00:25:30,680 Speaker 1: city's COVID alert level too high and advised wearing face coverings. Indoors, 441 00:25:31,160 --> 00:25:35,600 Speaker 1: we are being extremely strategic, and we are fighting COVID 442 00:25:35,920 --> 00:25:38,400 Speaker 1: with not only the twols that we didn't have before, 443 00:25:39,040 --> 00:25:43,320 Speaker 1: but we're also fighting COVID using the intelligence we need 444 00:25:43,320 --> 00:25:47,320 Speaker 1: to win. Mayor Adams says we're staying prepared and not panicking. 445 00:25:47,640 --> 00:25:50,320 Speaker 1: Former New York City Mayor Bill de Blasio says he's 446 00:25:50,359 --> 00:25:52,920 Speaker 1: considering it run for Congress after a legal battle over 447 00:25:52,960 --> 00:25:55,680 Speaker 1: the state's political maps opened up a seat in Brooklyn. 448 00:25:56,200 --> 00:25:58,320 Speaker 1: The two term Democrat, who left office at the end 449 00:25:58,359 --> 00:26:02,160 Speaker 1: of one said that he is formed an exploratory committee 450 00:26:02,440 --> 00:26:05,440 Speaker 1: the Justice Department announced u S Supreme Court justices will 451 00:26:05,480 --> 00:26:09,639 Speaker 1: receive around the clock security at home, among other protections. 452 00:26:09,920 --> 00:26:13,520 Speaker 1: It follows the leaked draft opinion advocating overturning abortion rights. 453 00:26:13,760 --> 00:26:16,240 Speaker 1: Global News twenty four hours a day on air and 454 00:26:16,400 --> 00:26:19,000 Speaker 1: on Bloomberg Quick Take, powered by more than twenty seven 455 00:26:19,040 --> 00:26:21,320 Speaker 1: hundred journalists analysts more than a hundred twenty countries. On 456 00:26:21,400 --> 00:26:28,680 Speaker 1: Michael Barr, this is Bloomberg, John, Michael, thank you. He 457 00:26:28,840 --> 00:26:30,680 Speaker 1: is now six thirty six on the Wall Street. Yeah, 458 00:26:30,680 --> 00:26:33,920 Speaker 1: that's sign for the Bloomberg Sports Update. Heves John staff Shower, 459 00:26:33,960 --> 00:26:36,080 Speaker 1: all right, John. The Rangers in the first round one 460 00:26:36,119 --> 00:26:38,280 Speaker 1: a series where they never led Pittsburg until the overtime 461 00:26:38,280 --> 00:26:41,080 Speaker 1: goal in game seven. Now round two. Game one at Carolina, 462 00:26:41,119 --> 00:26:43,720 Speaker 1: Filipino scored seven minutes and it stayed one nothing for 463 00:26:43,760 --> 00:26:46,480 Speaker 1: the next fifty minutes. Hurricanes were out of played in 464 00:26:46,480 --> 00:26:48,720 Speaker 1: the first two periods, but they dominated the third. They 465 00:26:48,760 --> 00:26:51,720 Speaker 1: tied the game on a Sebastian Oaho goal to twenty 466 00:26:51,960 --> 00:26:55,160 Speaker 1: remaining and then three twelve and overtime. I Cole scored 467 00:26:55,160 --> 00:26:57,120 Speaker 1: on a rebound of the Kings one two to one 468 00:26:57,160 --> 00:26:59,880 Speaker 1: and now five and oh at home this postseason Calgary 469 00:27:00,000 --> 00:27:02,440 Speaker 1: on a wild one with Edmonton nine to six. NBA 470 00:27:02,480 --> 00:27:05,200 Speaker 1: Golden State blew out Dallas by twenty five. The mets 471 00:27:05,200 --> 00:27:07,639 Speaker 1: great start has been without the still injured Jacob Graham, 472 00:27:07,680 --> 00:27:10,200 Speaker 1: and now there's concerned about Max Scherzer got the winn 473 00:27:10,280 --> 00:27:12,360 Speaker 1: A City field and proved five and one met Pete 474 00:27:12,359 --> 00:27:15,640 Speaker 1: the Cardinals eleven to four, but Scherzer took himself out 475 00:27:15,720 --> 00:27:18,480 Speaker 1: six inning discomfort in his left side. I don't think 476 00:27:18,600 --> 00:27:21,960 Speaker 1: this is a major string um, you know, Like I said, 477 00:27:22,080 --> 00:27:23,440 Speaker 1: I was kind of heightened and all of a sudden 478 00:27:23,720 --> 00:27:28,679 Speaker 1: when you know, but I don't feel like I really ripped, 479 00:27:29,080 --> 00:27:30,960 Speaker 1: you know, you know, kind of say it, you know, 480 00:27:31,000 --> 00:27:33,480 Speaker 1: I felt like it just kind of got worse. We'll 481 00:27:33,520 --> 00:27:35,560 Speaker 1: have an m r R today. Yankees made a twenty 482 00:27:35,640 --> 00:27:38,040 Speaker 1: one of the last twenty four three two in Baltimore, 483 00:27:38,040 --> 00:27:39,959 Speaker 1: all three runs in the first inning. Garrett Cole got 484 00:27:40,000 --> 00:27:43,080 Speaker 1: the wind Clay Homes to say, the Giants with salary 485 00:27:43,119 --> 00:27:44,920 Speaker 1: cap issues, I had to release one of their best 486 00:27:44,920 --> 00:27:48,480 Speaker 1: players and now they'll see cornerback James Bradbury twice. He 487 00:27:48,560 --> 00:27:51,959 Speaker 1: signed with Philadelphia p H Championship short Hills in Tulsa 488 00:27:52,040 --> 00:27:55,160 Speaker 1: without the defending jam Phil Mickelson, Bryson de Shambo Withdrew 489 00:27:55,200 --> 00:27:58,480 Speaker 1: injured hand, but a marquee threesome this morning. Jordan's Feed, 490 00:27:58,600 --> 00:28:01,719 Speaker 1: Rory math Leroy Tiger a Wolds Live, PGA covered Don 491 00:28:01,760 --> 00:28:05,400 Speaker 1: Bloomberg Radio Today Stinging at four and the PGA Championship 492 00:28:05,400 --> 00:28:07,520 Speaker 1: wrap up show at eleven New Ones. Actually I wanted 493 00:28:07,520 --> 00:28:10,280 Speaker 1: Bloomberg's Worst Dome. All right, Jonath, thanks very much. Sixty 494 00:28:10,280 --> 00:28:12,320 Speaker 1: seven on Wall Street and it is time now to 495 00:28:12,359 --> 00:28:14,680 Speaker 1: take a look at stocks and some of the names 496 00:28:14,720 --> 00:28:16,399 Speaker 1: that are moving into the pre market, and for that 497 00:28:16,440 --> 00:28:21,200 Speaker 1: we're joined by Bloomberg Radio and TV Markets. Corresponded critic Gupta. 498 00:28:21,640 --> 00:28:25,520 Speaker 1: I'm looking for a broader theme for the markets, the 499 00:28:25,640 --> 00:28:29,840 Speaker 1: narrative that they're latching onto, and I guess it's margin compression. 500 00:28:30,280 --> 00:28:34,840 Speaker 1: Higher costs are squeezing profits pretty much. That and if 501 00:28:34,880 --> 00:28:37,600 Speaker 1: you have any kind of exposure to China, anything COVID 502 00:28:37,640 --> 00:28:40,600 Speaker 1: lockdown related, your stock is going to crash. And I 503 00:28:40,600 --> 00:28:43,040 Speaker 1: think a great case study of it is one of 504 00:28:43,040 --> 00:28:45,240 Speaker 1: the worst performing stocks this morning, which of course the 505 00:28:45,320 --> 00:28:49,720 Speaker 1: Cisco CUS CEO is your ticker down about thirteen percent. 506 00:28:50,040 --> 00:28:51,640 Speaker 1: They came out and they said, I believe the report 507 00:28:51,720 --> 00:28:53,920 Speaker 1: earnings last night, and they came out and said that 508 00:28:54,000 --> 00:28:57,280 Speaker 1: their warning that Chinese lockdowns and other supply disruptions would 509 00:28:57,280 --> 00:29:00,640 Speaker 1: wipe out sales growth in the current quarter, not eat 510 00:29:00,680 --> 00:29:03,959 Speaker 1: into margins, but wipe it out completely. UM and then 511 00:29:04,000 --> 00:29:07,160 Speaker 1: of course adds onto the broader concerns about tech, which 512 00:29:07,160 --> 00:29:09,280 Speaker 1: has been dragging the entire market down. Remember these were 513 00:29:09,280 --> 00:29:11,440 Speaker 1: the big names that we're dragging UM or pulling the 514 00:29:11,480 --> 00:29:13,920 Speaker 1: market up to record highs. I should say, um, But 515 00:29:13,960 --> 00:29:15,480 Speaker 1: there is some green on the screen. If you want 516 00:29:15,480 --> 00:29:19,120 Speaker 1: to think, I've got one for you, really yeah, uh, 517 00:29:19,200 --> 00:29:21,480 Speaker 1: if you are worried about China lockdowns, if you're worried 518 00:29:21,480 --> 00:29:24,120 Speaker 1: about supply shortages, thinking about the companies that are benefiting 519 00:29:24,440 --> 00:29:28,880 Speaker 1: from supply shortages or benefit from a supply shortage and 520 00:29:28,920 --> 00:29:33,840 Speaker 1: a lockdown in China. We'll have about energy chip company Synopsis, 521 00:29:33,840 --> 00:29:36,360 Speaker 1: for example, it's a chip software designer, and they're saying 522 00:29:36,760 --> 00:29:40,000 Speaker 1: they reported extremely strong demand. It's actually one of the 523 00:29:40,040 --> 00:29:42,480 Speaker 1: only five stocks that are in the green this morning. 524 00:29:42,640 --> 00:29:45,640 Speaker 1: S NPS is your taker. It's up just shy of 525 00:29:45,720 --> 00:29:48,520 Speaker 1: four percent. But then to your point, you said energy, 526 00:29:48,560 --> 00:29:50,280 Speaker 1: you said food as well. If you look some of 527 00:29:50,320 --> 00:29:53,000 Speaker 1: the other four names in the green. See if Industries 528 00:29:53,120 --> 00:29:56,080 Speaker 1: is a fertilizer company, it's about seven tenths of one percent. 529 00:29:56,240 --> 00:29:59,400 Speaker 1: Newmont higher with gold prices this morning, an e M 530 00:29:59,480 --> 00:30:01,960 Speaker 1: is your taker up six tenths of one percent. N 531 00:30:02,120 --> 00:30:05,720 Speaker 1: r G, your energy companies right there up five tenths 532 00:30:05,760 --> 00:30:08,120 Speaker 1: of one percent, and even album Marle a LB, which 533 00:30:08,160 --> 00:30:11,120 Speaker 1: is a it makes lithium that helps kind of feed 534 00:30:11,280 --> 00:30:13,680 Speaker 1: E V batteries for example, a l B is the 535 00:30:13,720 --> 00:30:16,160 Speaker 1: taker up two tenths of one percent. So really anything 536 00:30:16,200 --> 00:30:19,080 Speaker 1: commodities related at least in that pocket is doing well. 537 00:30:19,080 --> 00:30:21,400 Speaker 1: But then if you look into the majors like a 538 00:30:21,480 --> 00:30:24,400 Speaker 1: Chevron or an Xon for example, those are down as well. 539 00:30:24,480 --> 00:30:28,200 Speaker 1: So there are very very small pockets of green, okay, 540 00:30:28,240 --> 00:30:30,960 Speaker 1: and that we'll recap retail. For me, that's not the 541 00:30:31,000 --> 00:30:33,440 Speaker 1: place for investors to be right now, I guess it's 542 00:30:33,480 --> 00:30:35,360 Speaker 1: not the place for investors to be, and arguably it's 543 00:30:35,360 --> 00:30:37,400 Speaker 1: what sparked this whole entire thing. You actually look at 544 00:30:37,520 --> 00:30:39,560 Speaker 1: just follow up from the earnings we heard this week. 545 00:30:39,600 --> 00:30:43,240 Speaker 1: Walmart w MT down eight tenths of one percent this morning, 546 00:30:43,280 --> 00:30:46,000 Speaker 1: Costco as well, c o S T down one percent, 547 00:30:46,120 --> 00:30:48,320 Speaker 1: t GT for Target down one percent as well. But 548 00:30:48,320 --> 00:30:50,800 Speaker 1: remember we do get coals earnings a little bit k SS, 549 00:30:51,080 --> 00:30:53,520 Speaker 1: so keep an eye on those shapes. Be very interesting. 550 00:30:53,600 --> 00:30:56,920 Speaker 1: Thank you, Boomberg Radio on TV. Markets corresponded Critty Gupta 551 00:30:57,360 --> 00:30:59,680 Speaker 1: and look, you get stocks as a whole ahead of 552 00:30:59,800 --> 00:31:03,840 Speaker 1: the open. SMP futures right now they are down fifty 553 00:31:03,960 --> 00:31:06,480 Speaker 1: three points. That's a decline at one point four percent 554 00:31:06,560 --> 00:31:10,000 Speaker 1: empty yesterday's four percent sell off. Down futures four hundred 555 00:31:10,000 --> 00:31:13,520 Speaker 1: four points lower but hasaking many futures are down one 556 00:31:13,600 --> 00:31:21,680 Speaker 1: hundred and seventy four. You're listening to Bloomberg Daybreak, the 557 00:31:21,680 --> 00:31:24,640 Speaker 1: Bloomberg Weather for a meteor roulogist Rob Karen and rain 558 00:31:24,880 --> 00:31:28,280 Speaker 1: ending this morning then becoming partly Sunday today. The high 559 00:31:28,320 --> 00:31:32,440 Speaker 1: temperature seventy to seventy five degrees, hardly cloudy tonight blows 560 00:31:32,880 --> 00:31:39,760 Speaker 1: fifty five to sixty Markets headlines and breaking news twenty 561 00:31:39,760 --> 00:31:42,640 Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg 562 00:31:42,680 --> 00:31:45,600 Speaker 1: Business apt and at Bloomberg Quick Take. This is a 563 00:31:45,640 --> 00:31:54,800 Speaker 1: Bloomberg Business Flash and I'm Karen Moscow and futures are 564 00:31:54,840 --> 00:31:56,880 Speaker 1: lower this morning. We go to the First Word Breaking 565 00:31:56,920 --> 00:31:59,680 Speaker 1: news desk for today's morning call. Here's Bill Maloney, Bill 566 00:31:59,680 --> 00:32:02,760 Speaker 1: good more, Hang, Hey, good morning, Karen. That's right. US 567 00:32:02,800 --> 00:32:06,080 Speaker 1: futures are sinking again after yesterday's plunge with doubt. Futures 568 00:32:06,120 --> 00:32:08,920 Speaker 1: down three forty two points. Sv s drop forty five. 569 00:32:09,280 --> 00:32:11,440 Speaker 1: Now it's like futures are lower by a hundred forty 570 00:32:11,840 --> 00:32:13,720 Speaker 1: He was a ten year old at two point eight 571 00:32:13,760 --> 00:32:16,720 Speaker 1: two percent. Gold is up twelve, oil is down and 572 00:32:16,800 --> 00:32:19,800 Speaker 1: bitcoin is falling by point eight percent. Hong Kong drop 573 00:32:19,840 --> 00:32:22,040 Speaker 1: two and a half percent overnight, while up markets are 574 00:32:22,080 --> 00:32:24,440 Speaker 1: also in the red, that by two percent losses in 575 00:32:24,480 --> 00:32:27,440 Speaker 1: the UK, France and Germany. Back in the US. On 576 00:32:27,480 --> 00:32:30,280 Speaker 1: the economic frontday thirty initial jobs claims and the Philly 577 00:32:30,320 --> 00:32:33,840 Speaker 1: Fed and at ten o'clock existing home sales. After the 578 00:32:33,880 --> 00:32:36,840 Speaker 1: bellas night Cisco report, it shares it down twelve percent 579 00:32:36,920 --> 00:32:40,000 Speaker 1: in the pre market, and the under Arms CEO stepped 580 00:32:40,000 --> 00:32:43,040 Speaker 1: down regarding earnings this morning, look for a coolest report 581 00:32:43,080 --> 00:32:45,360 Speaker 1: in the pre market and wrapping things up, under Armour 582 00:32:45,440 --> 00:32:49,000 Speaker 1: was cut to equate over at Morgan Stanley Live from 583 00:32:49,000 --> 00:32:52,240 Speaker 1: the first Breaking news Deskom Maloney, Karen, Hey, Bill, thank 584 00:32:52,240 --> 00:32:54,320 Speaker 1: you to hear live breaking news of your bloombergy type 585 00:32:54,360 --> 00:32:57,160 Speaker 1: squawk on your terminal SCU you a w K and 586 00:32:57,200 --> 00:32:59,600 Speaker 1: we do have this headline that just crossed the Bloomberg 587 00:32:59,640 --> 00:33:03,400 Speaker 1: sphere at airline's board is urging shareholders to reject the 588 00:33:03,520 --> 00:33:06,440 Speaker 1: Jet Blue offer. Again at just crossing the Bloomberg and 589 00:33:06,440 --> 00:33:09,160 Speaker 1: that's a Bloomberg business flash. Now here's Michael Barr with 590 00:33:09,240 --> 00:33:11,840 Speaker 1: more on what's going on around the world. Plunk off, Karen, 591 00:33:11,880 --> 00:33:15,120 Speaker 1: thank you very much more. Ukrainian soldiers were evacuated from 592 00:33:15,120 --> 00:33:19,400 Speaker 1: a steel plant in Mariuple. Several buses accompanied by Russian 593 00:33:19,400 --> 00:33:22,760 Speaker 1: military vehicles were seen pulling away from the plant. President 594 00:33:22,840 --> 00:33:26,200 Speaker 1: Joe Biden invoked emergency powers under the Defense Production Act 595 00:33:26,480 --> 00:33:30,800 Speaker 1: to try and boost production of baby formula to alleviate shortages. 596 00:33:31,160 --> 00:33:35,200 Speaker 1: The suspect in the Buffalo killings will be in court today. Meanwhile, 597 00:33:35,280 --> 00:33:38,720 Speaker 1: players on the Buffalo Bills visited the memorial outside the 598 00:33:38,720 --> 00:33:42,560 Speaker 1: supermarket shouting. In the NHL Playoffs, the Rangers lost to 599 00:33:42,600 --> 00:33:44,760 Speaker 1: the Hurricanes to one in overtime in game one of 600 00:33:44,800 --> 00:33:48,360 Speaker 1: their series. In the NBA Playoffs, the Warriors one game 601 00:33:48,400 --> 00:33:51,440 Speaker 1: one of their Western Finals over the Mavericks. In baseball, 602 00:33:51,480 --> 00:33:54,040 Speaker 1: the Yankees beat the Orioles three to the Mets, Red 603 00:33:54,040 --> 00:33:57,680 Speaker 1: Sox and Nationals won the Giants and A's lost Global 604 00:33:57,720 --> 00:34:00,200 Speaker 1: News twenty four hours a day on air, and don 605 00:34:00,240 --> 00:34:03,880 Speaker 1: Bloomberg Quick Tank powered by more than seven hundred journalists 606 00:34:03,880 --> 00:34:06,480 Speaker 1: and analysts more than a D twenty countries. I'm Michael Barr. 607 00:34:06,600 --> 00:34:12,280 Speaker 1: This is Bloomberg. The following commentary is from Bloomberg Opinion, Buffalo. 608 00:34:12,800 --> 00:34:16,200 Speaker 1: I'm Jonathan Bernstein, a columnist for Bloomberg Opinion. Joe Biden's 609 00:34:16,239 --> 00:34:19,520 Speaker 1: Buffalo speech on Tuesday, hitting on the necessary themes of 610 00:34:19,560 --> 00:34:23,480 Speaker 1: combating hatred and defending democracy, was a good one. The 611 00:34:23,520 --> 00:34:27,000 Speaker 1: speech was extremely by nesque, combining all of his leading 612 00:34:27,000 --> 00:34:30,440 Speaker 1: traits as a public figure. Biden displayed the empathy that 613 00:34:30,560 --> 00:34:33,040 Speaker 1: was a central part of his campaign. He also deployed, 614 00:34:33,080 --> 00:34:36,319 Speaker 1: as usual, his scrantonius, not as a contrast to other 615 00:34:36,320 --> 00:34:39,120 Speaker 1: places or backgrounds, but as an inclusive form of one 616 00:34:39,160 --> 00:34:42,640 Speaker 1: of US representation. But Biden isn't just an empathy president 617 00:34:42,920 --> 00:34:45,399 Speaker 1: or one of US president. He's also the guy who 618 00:34:45,440 --> 00:34:48,200 Speaker 1: shoots off his mouth too often, and he used blunt 619 00:34:48,200 --> 00:34:53,640 Speaker 1: words in Buffalo. Domestic terrorism, racism, white supremacy. For Biden, 620 00:34:53,680 --> 00:34:56,439 Speaker 1: empathy and Scrantonness set the stage for the bluntness needed 621 00:34:56,480 --> 00:34:59,680 Speaker 1: to make clear that attacks like the Buffalo massacre are 622 00:34:59,760 --> 00:35:02,480 Speaker 1: t connected to bigger than speech in the public sphere 623 00:35:03,040 --> 00:35:06,520 Speaker 1: and two broader attacks on US democracy. That doesn't mean 624 00:35:06,520 --> 00:35:08,919 Speaker 1: that the speech is going to solve everything. Speeches don't 625 00:35:08,920 --> 00:35:12,160 Speaker 1: have that power. Presidents don't have that power. But every 626 00:35:12,160 --> 00:35:15,120 Speaker 1: little bit helps. I'm Jonathan Bernstein. For more opinion, please 627 00:35:15,120 --> 00:35:17,640 Speaker 1: go to Bloomberg dot com, slash Opinion or opi and 628 00:35:17,719 --> 00:35:21,800 Speaker 1: go on the Bloomberg terminal. These has been Bloomberg Opinion 629 00:35:22,200 --> 00:35:25,239 Speaker 1: and Bloomberg Opinion commentaries can be heard every weekday at 630 00:35:25,280 --> 00:35:27,719 Speaker 1: this time and terminal customers can read more at O 631 00:35:27,880 --> 00:35:31,319 Speaker 1: P I N go. It is six fifty on Wall Street. 632 00:35:31,400 --> 00:35:33,600 Speaker 1: We turned to news and science and technology now at 633 00:35:33,600 --> 00:35:36,160 Speaker 1: the Bloomberg and J I. T. Stem Report, and here's 634 00:35:36,160 --> 00:35:39,960 Speaker 1: what's making news and science, technology, engineering, and math. Spain 635 00:35:40,120 --> 00:35:43,759 Speaker 1: is experiencing unusually high temperature levels amid a heat wave 636 00:35:43,840 --> 00:35:47,040 Speaker 1: that's expected to take thermometers above a hundred and four 637 00:35:47,080 --> 00:35:50,600 Speaker 1: degrees fahrenheit this weekend. It adds to a long list 638 00:35:50,600 --> 00:35:53,360 Speaker 1: of extreme weather events in recent weeks showing the impact 639 00:35:53,360 --> 00:35:56,839 Speaker 1: of climate change. A new study finds a micro plastics 640 00:35:56,840 --> 00:36:00,000 Speaker 1: are widely present in the drinking water of Nigeria's large 641 00:36:00,520 --> 00:36:04,520 Speaker 1: largest city, Logos. It's unclear how the tiny particles found 642 00:36:04,520 --> 00:36:08,080 Speaker 1: in the environment and ingested by humans impacted health. A 643 00:36:08,160 --> 00:36:11,000 Speaker 1: World Health Organization official warrants is urgent to learn about 644 00:36:11,000 --> 00:36:14,640 Speaker 1: the health impact of microplastics on human health and its 645 00:36:14,640 --> 00:36:18,880 Speaker 1: SpaceX looks to launch its newest rocket from Boca Chica, Texas. 646 00:36:19,280 --> 00:36:22,960 Speaker 1: Government wildlife officials say several conservation measures need to be 647 00:36:23,040 --> 00:36:27,080 Speaker 1: taken to minimize its impact on local species. Suggested mitigation 648 00:36:27,120 --> 00:36:31,759 Speaker 1: efforts including contracting with a qualified biologist to monitor vegetation 649 00:36:31,840 --> 00:36:35,640 Speaker 1: and birds, producing vehicle traffic, and adjusting lights to minimize 650 00:36:35,680 --> 00:36:38,759 Speaker 1: the impact on sea turtles. That's a Bloomberg and j 651 00:36:38,960 --> 00:36:42,640 Speaker 1: I t Stem report. John all right, thanks Karen, and 652 00:36:42,760 --> 00:36:45,600 Speaker 1: we are live from the Bloomberg interhad to Broker Studios 653 00:36:45,600 --> 00:36:48,920 Speaker 1: where it is now six fifty two on Wall Street. 654 00:36:49,400 --> 00:36:51,759 Speaker 1: And that's time to take a look at what's going 655 00:36:51,800 --> 00:36:53,919 Speaker 1: on in d C. Some of the top stories making 656 00:36:53,960 --> 00:36:58,440 Speaker 1: news in the nation's capital include President Biden invoking emergency 657 00:36:58,480 --> 00:37:02,160 Speaker 1: powers to try to ease the baby formula shortage, of 658 00:37:02,239 --> 00:37:04,480 Speaker 1: the House also taking action passing it have to get 659 00:37:04,520 --> 00:37:08,080 Speaker 1: baby formula bill, Democrats pressing the White House to go 660 00:37:08,280 --> 00:37:12,400 Speaker 1: big on forgiving student loan debt. Let's take a deeper 661 00:37:12,440 --> 00:37:15,120 Speaker 1: dive into these stories this morning. We're joined by Bloomberg 662 00:37:15,120 --> 00:37:19,520 Speaker 1: government reporter Jack Fitzpatrick. Jack, thanks for being here. Appreciate it. Um. 663 00:37:19,560 --> 00:37:22,120 Speaker 1: What action is the White House taking on the baby 664 00:37:22,200 --> 00:37:26,319 Speaker 1: formula front in the immediate term? The President announced a 665 00:37:26,360 --> 00:37:29,680 Speaker 1: couple of things. One, he's using the Defense Production Act 666 00:37:29,800 --> 00:37:32,920 Speaker 1: to try to boost production of baby formula. That is 667 00:37:32,960 --> 00:37:36,239 Speaker 1: the measure that allows the government to force companies to 668 00:37:36,400 --> 00:37:40,200 Speaker 1: either produce or or prioritize the production of certain things. 669 00:37:40,680 --> 00:37:45,000 Speaker 1: That could address if there are any shortcomings in the 670 00:37:45,040 --> 00:37:48,440 Speaker 1: supply chain leading up to the production of baby formula, 671 00:37:48,680 --> 00:37:52,720 Speaker 1: shortcomings in terms of an ingredient making it down the line. 672 00:37:53,040 --> 00:37:56,799 Speaker 1: If government officials can find any instances when they can 673 00:37:56,840 --> 00:38:01,000 Speaker 1: compel or in a greater way prioritize the movement of 674 00:38:01,040 --> 00:38:04,440 Speaker 1: that to increase the production of baby formula, they'll do that. 675 00:38:04,680 --> 00:38:09,280 Speaker 1: The other was allowing the use of government planes for imports. 676 00:38:09,320 --> 00:38:12,440 Speaker 1: The import issue is going to be a significant measure 677 00:38:12,440 --> 00:38:14,799 Speaker 1: that's getting a lot of attention on Capitol Hill as well, 678 00:38:15,200 --> 00:38:18,000 Speaker 1: UH to try to alleviate the shortage and and probably 679 00:38:18,000 --> 00:38:21,120 Speaker 1: has a significant amount of potential. In the short term. 680 00:38:21,200 --> 00:38:25,160 Speaker 1: It takes a little while to increase production domestically, but 681 00:38:25,320 --> 00:38:29,440 Speaker 1: there is a significant focus of of imports and the 682 00:38:29,560 --> 00:38:32,960 Speaker 1: use of government planes. The president beliefs could speed that up. 683 00:38:33,360 --> 00:38:37,080 Speaker 1: The House also pushing a measure. What is that and 684 00:38:37,160 --> 00:38:41,280 Speaker 1: what's the likelihood of passage? It's a fairly small measure. 685 00:38:41,280 --> 00:38:44,320 Speaker 1: It's twenty eight million dollars for the Food and Drug 686 00:38:44,400 --> 00:38:48,919 Speaker 1: Administration UH. The House Appropriations Chair Rosa Deloro has said 687 00:38:48,960 --> 00:38:52,600 Speaker 1: she she views them as being short staffed in terms 688 00:38:52,680 --> 00:38:56,320 Speaker 1: of having inspectors, which is important because if they're looking 689 00:38:56,400 --> 00:39:00,759 Speaker 1: for other ways to get to get baby formula other 690 00:39:00,800 --> 00:39:03,759 Speaker 1: than the Abbot facility that had to close, then they 691 00:39:03,840 --> 00:39:07,239 Speaker 1: need more inspectors to ensure that places that aren't on 692 00:39:07,280 --> 00:39:10,480 Speaker 1: the f d a's lists already can be added to 693 00:39:10,520 --> 00:39:13,160 Speaker 1: the list. So they need to go to more potential 694 00:39:13,200 --> 00:39:18,680 Speaker 1: sources of production. UH. That was not negotiated with Senate Democrats, 695 00:39:19,080 --> 00:39:23,560 Speaker 1: let alone any Republicans. The House passed it with a majority. 696 00:39:23,719 --> 00:39:27,120 Speaker 1: It's it's path in the Senate is not entirely clear. 697 00:39:27,640 --> 00:39:30,840 Speaker 1: Doloro's counterpart, the Appropriations Chair in the Senate, Patrick Leahy, 698 00:39:30,880 --> 00:39:33,480 Speaker 1: said he may work on his own bill. It might 699 00:39:33,600 --> 00:39:36,120 Speaker 1: end up being the same bill, but the fact that 700 00:39:36,200 --> 00:39:38,680 Speaker 1: it doesn't have an entirely clear path and really is 701 00:39:38,719 --> 00:39:42,920 Speaker 1: a House Democratic bill means we can't necessarily expect it 702 00:39:43,000 --> 00:39:46,200 Speaker 1: to fly through the Senate immediately. There's some chatter from 703 00:39:46,239 --> 00:39:49,520 Speaker 1: Democrats that a big, big measure to forgive student loan dead. 704 00:39:49,600 --> 00:39:53,960 Speaker 1: What's the update, Yeah, Chuck Schumer. Very importantly, the Senate 705 00:39:54,000 --> 00:39:58,400 Speaker 1: Majority Leader joined with Senators Elizabeth Warren and Raphael Warnock 706 00:39:58,560 --> 00:40:02,520 Speaker 1: to try to pitch President Biden to go up to 707 00:40:02,760 --> 00:40:07,840 Speaker 1: fifty dollars in student debt really relief. The President previously 708 00:40:07,880 --> 00:40:12,160 Speaker 1: has indicated more looking like ten thousand dollars, So this 709 00:40:12,239 --> 00:40:16,880 Speaker 1: is trying to really maximize whatever relief he may consider. 710 00:40:17,200 --> 00:40:19,880 Speaker 1: To get the Senate Majority Leader on board with that 711 00:40:19,920 --> 00:40:25,759 Speaker 1: pitch is significant. Obviously, Senator Elizabeth Warren campaigned very aggressively 712 00:40:25,800 --> 00:40:29,239 Speaker 1: for the presidency on that issue, So there's pressure from 713 00:40:29,239 --> 00:40:31,759 Speaker 1: Senate Democrats to try to get get it up to 714 00:40:31,760 --> 00:40:34,920 Speaker 1: the biggest number possible. Uh. And obviously they're looking to 715 00:40:35,320 --> 00:40:38,359 Speaker 1: the White House because the legislative path forward for this 716 00:40:38,680 --> 00:40:42,480 Speaker 1: with Republican opposition would be very, very difficult. So there's 717 00:40:42,480 --> 00:40:44,920 Speaker 1: a lot of focus on trying to negotiate with Biden 718 00:40:44,960 --> 00:40:48,280 Speaker 1: directly to see what he can do unilaterally. Hey, finally, 719 00:40:48,320 --> 00:40:51,319 Speaker 1: in the about a minute left, what was the big 720 00:40:51,360 --> 00:40:57,200 Speaker 1: takeaway from yesterday's primary results? I would look to Pennsylvania 721 00:40:57,239 --> 00:41:02,120 Speaker 1: and the Senate race. John Fetterman, the or progressive Democratic candidate, 722 00:41:02,480 --> 00:41:06,759 Speaker 1: really beat Connor Lamb, the House moderate, quite easily by 723 00:41:06,760 --> 00:41:09,440 Speaker 1: more than thirty percentage points. That's a pretty big victory 724 00:41:09,480 --> 00:41:12,759 Speaker 1: for progressives. Very close race still being counted on the 725 00:41:12,800 --> 00:41:16,239 Speaker 1: Republican side, uh me met Oz of dr oz fame. 726 00:41:16,360 --> 00:41:19,080 Speaker 1: Is it a very narrow lead over Dave McCormick. It 727 00:41:19,239 --> 00:41:21,800 Speaker 1: is within the realm of possibility that there will be 728 00:41:21,840 --> 00:41:24,440 Speaker 1: an automatic recount, so that one could drag on for 729 00:41:24,480 --> 00:41:28,200 Speaker 1: a little bit. Does the former President Trump still holds 730 00:41:28,320 --> 00:41:31,600 Speaker 1: way of the Republican Party? Is Is that a takeaway 731 00:41:31,719 --> 00:41:34,759 Speaker 1: or not? He would like a victory here. Oz was 732 00:41:34,880 --> 00:41:38,520 Speaker 1: his picked candidate, and interestingly enough, the closeness of this 733 00:41:38,640 --> 00:41:42,320 Speaker 1: race prompted former President Trump to say that his candidates 734 00:41:42,320 --> 00:41:46,240 Speaker 1: should declare victory now before, in his words, they find 735 00:41:46,320 --> 00:41:49,120 Speaker 1: more votes. So we're we're getting a revert where we're 736 00:41:49,120 --> 00:41:52,840 Speaker 1: reverting back to the drama of due to the closeness 737 00:41:52,840 --> 00:41:55,640 Speaker 1: of that Republican primary. Alright, Jack, thanks very much. We 738 00:41:55,760 --> 00:41:59,799 Speaker 1: pretty appreciate that. Bloomberg Government reporter, Jack Fitzpatrick, you can 739 00:42:00,040 --> 00:42:02,600 Speaker 1: more about these stories on Bloomberg dot com or on 740 00:42:02,680 --> 00:42:05,480 Speaker 1: the Bloomberg churmnal. Also a reminder, you can follow all 741 00:42:05,520 --> 00:42:10,239 Speaker 1: the latest on Bloomberg Radio in Washington. That's Bloomberg at 742 00:42:10,239 --> 00:42:13,839 Speaker 1: one oh five point seven f m HD two. After 743 00:42:13,920 --> 00:42:17,719 Speaker 1: yesterday's sell off in the markets, in turn in part 744 00:42:17,760 --> 00:42:20,960 Speaker 1: triggered by the results that we saw from Target. The 745 00:42:21,080 --> 00:42:24,960 Speaker 1: Dow futures right now down three hundred eighteen points, that's 746 00:42:24,960 --> 00:42:27,719 Speaker 1: a one percent decline in the futures, the S and 747 00:42:27,760 --> 00:42:31,640 Speaker 1: P five hundred futures after four four percent sell off yesterday, 748 00:42:31,640 --> 00:42:35,239 Speaker 1: down forty two points right now, that's down another one 749 00:42:35,320 --> 00:42:38,600 Speaker 1: percent of the pre market, and the futures down one 750 00:42:38,640 --> 00:42:41,760 Speaker 1: hundred and forty two points, down one point two percent. 751 00:42:42,360 --> 00:42:47,160 Speaker 1: Just ahead Bloomberg Surveillance after Karen Boscown, I'm John Tucker. 752 00:42:47,360 --> 00:42:48,799 Speaker 1: This is Bloomberg day Break.