Speaker 1: My from the Bloomberg Interactive Brooker Studios is Bloomberg Daybreak
Speaker 1: for Thursday May two, coming up this hour. Some off
Speaker 1: continues as US futures add to yesterday's losses. JP Morgan
Speaker 1: becomes the latest firm to cut its outlook for growth,
Speaker 1: Melvin Capital calls it quits, becoming the latest casualty of
Speaker 1: the sell off, and the White House takes another step
Speaker 1: to address the Baby formulas shortage. The suspected gunman in
Speaker 1: Buffalo supermarket shooting as a court appearance today, plus Supreme
Speaker 1: Court justices are getting twenty four hour protection by Michael Barne.
Speaker 1: More ahead, I'm John Stash, Aaron Swards. Game one to
Speaker 1: the Hurricanes, they tied the Rangers late and then one
Speaker 1: in overtime win to the Yankees and Mets. That's all
Speaker 1: trended ahead on Bloomberg Daybreak on Bloomberg eleven three on
Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh
Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Sirius XM
Speaker 1: one nineteen and around the world. Old on Bloomberg Radio
Speaker 1: dot Com and via the Bloomberg Business app And good Morning,
Speaker 1: I'm Karen Moscow and I'm John Tucker. Bloomberg Day Rank
Speaker 1: being brought to you by B and B and Y
Speaker 1: Melon Pershing's Inside Conference back in person June fifteen through
Speaker 1: the seventh team in Grapevine, Texas. Must attend event for
Speaker 1: financial advisors. Register today at Insight dot B and Y
Speaker 1: Melon dot com. And futures this morning are lower. We're
Speaker 1: coming up to six o one on Wall Street. We
Speaker 1: checked the markets every fifteen minutes throughout the trading day.
Speaker 1: On Bloomberg, SNP future is down sixty two points down.
Speaker 1: Futures down four hundred fifty seven. At NAST day features
Speaker 1: down two hundred. Ten year Treasury up eighteen thirty seconds,
Speaker 1: Ye two point eight one percent. They yield on the
Speaker 1: two year two point six one percent. And I make
Speaker 1: screwed oil is down two point three percent, John, and
Speaker 1: futures are down this morning, Karen. After yesterday's big sell off,
Speaker 1: the S and P five hundred had its biggest single
Speaker 1: day drop in nearly two years. Laurens, you know it
Speaker 1: wealthwise as investors should proceed with caution. We are playing
Speaker 1: it more conservatively than more aggressively, both on the fixed
Speaker 1: income as well as on the equity, so dialing down
Speaker 1: areas that are high yield or areas like that. Wealthwise
Speaker 1: CEO Lauren Gilbert Stands say it's unclear when markets could stabilize.
Speaker 1: Bearings chief global strategist Christopher Smart believes that in spite
Speaker 1: of the uncertainty, there's still positive signs from the economy.
Speaker 1: We still see the US economy is fundamentally strong. The
Speaker 1: U S consumer is still very strong. Companies are ready
Speaker 1: to you know, have very good balance sheets. Uh, and
Speaker 1: we've just come through an earning session, an earning season
Speaker 1: that has been relatively good. I think it's important to
Speaker 1: understand that we're still a long way from a recession
Speaker 1: in the US. Christopher Smart of Bearings is it's a
Speaker 1: good time to focus on companies with strong business models
Speaker 1: and balance sheets. The sell office extending overseas, John and
Speaker 1: europe equities are falling hard a day after Britain posted
Speaker 1: record inflation. On Burgh and Bloomberg's Max Ranty joins US
Speaker 1: live from Brussels with the latest next Good morning, Good morning,
Speaker 1: Karen and John ys to sell off gathering pace as
Speaker 1: we get through the European equities session this morning, the
Speaker 1: stock six hundred down two point two percent. Right now,
Speaker 1: it's in the UK that we see the worst losses,
Speaker 1: down two point six percent for the foot seat one hundred,
Speaker 1: but it is still the best performing of the major
Speaker 1: European indussees year to date, despite the challenges post from inflation,
Speaker 1: which hit a forty year high in those CPI figures yesterday.
Speaker 1: Live in Brussels, Max Ramsey bloom back daybreak thanks Max
Speaker 1: starts in Asia also all overnight and Bloombridge. Juliet Sally
Speaker 1: joins us with the latest from Singapore. Juliet, good morning,
Speaker 1: Good morning, Karen and John. The MSCI Asia Pacific Index
Speaker 1: halted a four day rally, posting its biggest one day
Speaker 1: decline in to day since early March. Ten Cent shares
Speaker 1: plunged in Hong Kong, dragging down the hang Sing Tech
Speaker 1: Index after it posted its slowest revenue growth in the
Speaker 1: first quarter since it's two thousand and four listing. Chinese
Speaker 1: shares also came under pressure on the mainland after stan
Speaker 1: Chart cut their twenty twenty two GDP forecast to four
Speaker 1: point one from five percent, but OSSI bones in the
Speaker 1: local currency rallied after Australia's unemployment level plunge to any
Speaker 1: fifty year low in April, delivering a potential boon to
Speaker 1: Prime Minister Scott Morrison's government as it into is the
Speaker 1: final days of campaigning for Saturday's election in Singapore. Juliette
Speaker 1: Sally Bloomberg Daybreak, Juliet thank you. Turning the Fed now
Speaker 1: is looking more and more likely the Fed will follow
Speaker 1: through on j Powell's recent hawkish comments to address inflation.
Speaker 1: Philadelphia Fed President Patrick Harker plans on a series of
Speaker 1: rate hikes at a measured pace going forward if there
Speaker 1: are no significant changes in the data in the coming weeks.
Speaker 1: I expect two additional fifty basis point rate hikes in
Speaker 1: June and July. And Philadelphia Fed President Patrick Harker made
Speaker 1: the comments at a virtual event hosted by the Mid
Speaker 1: Sized Bank Coalition of America. He anticipates the economy and
Speaker 1: whether a measured methodical tightening of monetary policy and JP
Speaker 1: Morgan warning of declining growth economists sound the Bank lowering
Speaker 1: their outlook of half up percent for the second half
Speaker 1: of this year, but now forecast growth of two point
Speaker 1: four percent. The bank science falling stock prices, hire mortgage
Speaker 1: rates on a strong dollar has reasons for the revision. John.
Speaker 1: It's been over a year since Melvin Capital Management suffered
Speaker 1: severe losses and the Memes stock frenzy, and now Gabe
Speaker 1: Plotkins firm is calling it quits. Bloomberg's We Need a
Speaker 1: Young is here alive with more We need a good
Speaker 1: morning and good morning Karen. Gabe Plotkin is shutting down
Speaker 1: his seven point eight billion dollar hedge fund. Melvin Capital
Speaker 1: Management was the most prominent victim of the Meme stock
Speaker 1: frenzy of January one, losing billions. Now. The fund posted
Speaker 1: a fifty five percent loss that month alone, and since then,
Speaker 1: Plotkin has been trying to claw his way back with
Speaker 1: funding from some of Wall Street's biggest players. Although the
Speaker 1: fund showed some promise last year, a plan to reimpose
Speaker 1: fees frustrated backers and failed. Now Melvin Capitals outlining plans
Speaker 1: to eliminate fees and return investor cash. I've in New York.
Speaker 1: I'm gonned a young Bloomberg daybreak thanks for Rena. Turning
Speaker 1: to the nation's capital, the White House remains laser focused
Speaker 1: on easing the baby formula shortage, taking new measures in
Speaker 1: tanda with Congress to address the crisis. Bloomberg's Amy Morris,
Speaker 1: as the latest from our ninety one newsroom in Washington.
Speaker 1: President Biden invoked emergency powers under the Defense Production Act
Speaker 1: to try to boost production of baby formula while ordering
Speaker 1: the use of government planes for imports called Operation Fly.
Speaker 1: Formula has to be able to speed up the import
Speaker 1: of infant formula and start getting more formula in stories
Speaker 1: as soon as possible. Meanwhile, the House path the twenty
Speaker 1: eight million dollar emergency funding bill for the FDA to
Speaker 1: address the baby formula shortage. Republicans oppose the measure, and
Speaker 1: its future in the Senate is uncertain. In Washington, I'm
Speaker 1: maybe Morris Bloomberg daybreak, all right, Amy, thank you, and
Speaker 1: President Biden meets today with Finland's president and Sweden's Prime
Speaker 1: minister to discust the nations bids to join NATO. Turkey's
Speaker 1: president has blocked the Alliance from starting the process for
Speaker 1: both countries. He cites Finland and Sweden's approach to Kurdish
Speaker 1: groups that he considers terrorists. Futures this morning lower SMP
Speaker 1: futures down fifty five points and Down futures down four
Speaker 1: hundred twelve, NASTAG futures down a hundred seventies seven straight,
Speaker 1: A hand your latest local headlines, plus a check of sports,
Speaker 1: and this is Bloomberg. He has six so settled on
Speaker 1: wolfs for it. Let's bring in Michael Varne now to
Speaker 1: find out what else is going on in New York
Speaker 1: and around the world. Thank you very much. The white
Speaker 1: eighteen year old gunmen accused of killing ten black people
Speaker 1: at a Buffalo supermarket is scheduled to appear in court today,
Speaker 1: authorities say. Shortly before the attack last Saturday, Peyton Gendrin
Speaker 1: posted hundreds of pages of writings to online discussion groups
Speaker 1: where he detailed his plans for the assault and his
Speaker 1: racist motivation. It prompted New York Governor Kathy Hockle to
Speaker 1: sign an executive order to create a domestic terrorism unit
Speaker 1: to address the rise the home grown extremism. Hocal says,
Speaker 1: among other things, it will alert authorities to anyone who
Speaker 1: could become violent, requiring the state police to file an
Speaker 1: extreme risk order of protection under New York's Red Flag
Speaker 1: Law when they believe that an individual is a threat
Speaker 1: to himself, herself or others. Previously current law, it's an
Speaker 1: option to do so. According to Governor hocol Let, Buffalo
Speaker 1: be the city where people said enough is enough. Meanwhile,
Speaker 1: the U. S House passed legislation last night that would
Speaker 1: bolster federal resources to prevent domestic terrorism in response to
Speaker 1: the Buffalo shooting. Coronavirus variants are spreading in the US
Speaker 1: and worldwide. At the Lighthouse COVID Response Team briefing, CDC
Speaker 1: Director Dr Rochelle Wilenski, urging new precautions in areas where
Speaker 1: community levels are high, everyone should be using prevention measures
Speaker 1: and wearing a mask in public indoor setting. Dr Wilensky
Speaker 1: says there is an uptick in COVID deaths about two
Speaker 1: seventy day. New York Mayor Eric Adams said he has
Speaker 1: no plans to reinstate a mask mandate in public schools,
Speaker 1: even after health officials this week raised the city's COVID
Speaker 1: alert level too high. During a news conference, Adam says,
Speaker 1: we are not allowing COVID to out smartest, and so
Speaker 1: I'm just really impressed with how we are operating as
Speaker 1: a city. Various are going to continue to come. Mayor
Speaker 1: Adams went on to say we're staying prepared and not panicking.
Speaker 1: The federal government is warning law enforcement agencies around the
Speaker 1: nation of the increased potential for extremist violence after the
Speaker 1: leak of a draft Supreme Court opinion striking down the
Speaker 1: constitutional right to abortion, The U. S. Marshals Service has
Speaker 1: the Supreme Court justices under twenty four hour security. Global
Speaker 1: News twenty four hours a day on air and on
Speaker 1: Bloomberg Quick Take, powered by more than twenty seven hundred
Speaker 1: journalists and analysts more than a hundred twenty countries. Michael
Speaker 1: barn This is Bloomberg, John, Michael, thank you, Hey. It's
Speaker 1: now six till on Wall Street. That's time for the
Speaker 1: Bloomberg Sports Update. He's John Stehower. Thanks John. The Rangers
Speaker 1: know all about losing a series opener in overtime. It
Speaker 1: happened against Pittsburgh that was triple overtime at the Garden.
Speaker 1: This one was in a Raleigh and it ended just
Speaker 1: three minutes in. She gets at the Smith's luck to
Speaker 1: get through as the c MC of the call. Rangers
Speaker 1: for most of the night had a one nothing leading
Speaker 1: a Philippino goal, where they didn't score again and Carolina
Speaker 1: dominated the third period. They had a breakaway shot go
Speaker 1: up the crossbar and another shot caramed off the post
Speaker 1: and then with under threw to go Sebaston Ajo Scord
Speaker 1: the time goal. Cole's game winner actually went in off
Speaker 1: the stick a Ranger defenseman Ryan Lingren wild Star to
Speaker 1: the Battle of Alberta. Calgary led five to one. Edmonton
Speaker 1: tied the game at six, then the Flames won nine
Speaker 1: to six. NBA West Finals Game one, Golden State throughout
Speaker 1: Dallas by twenty five. Yankees won again in Baltimore, three
Speaker 1: runs in the first an. They didn't score again, but
Speaker 1: they won three two is. Garrett Cole went seven inings,
Speaker 1: and Clay Homes the last two Homes has now thrown
Speaker 1: almost twenty consecutive scoreless innings. The Yanks go for the
Speaker 1: four game suite this afternoon at City Field. Mets pulled
Speaker 1: away after four runs in the fifth inning, five more
Speaker 1: in the eighth, including a Petlnzo three run homer. Max
Speaker 1: Scherzer got the winners. The Mets meet the Cardinals eleven
Speaker 1: to four, but Scherzer took himself out in the sixth
Speaker 1: inning discomfort and his left side headed for an m
Speaker 1: r I, but Scherzer said he doubts that it's anything serious.
Speaker 1: P g H Championship begins this morning in Tulsa Tiger
Speaker 1: Woods as an early tea time. John stash Award Bloomberg Sports.
Speaker 1: John all right, John, thanks a lot. After yesterday's four
Speaker 1: percent sell off for the SMP five hundred SMP futures
Speaker 1: this morning, the point lower right now down fifty four points,
Speaker 1: the DALLA futures four hundred eleven points, Flower Canada Asta
Speaker 1: futures are down right now one at seventy five points.
Speaker 1: You're listening the Bloomberg day Break and just to have
Speaker 1: lessons from Wednesday's sell off, our own Joe Wisenthal stops
Speaker 1: by to look at the bullwhip effect. We'll explain. This
Speaker 1: is Bloomberg day Break, Markets, headlines and breaking news twenty
Speaker 1: four hours a day at Bloomberg dot com, the Bloomberg
Speaker 1: Business Out, and at Bloomberg Quick Tape. This is a
Speaker 1: Bloomberg Business flash and I'm kring Moscow. The global stocks
Speaker 1: are out deepening, European shares tumbling, and US Stock Index
Speaker 1: Future is signaling more losses ahead. After yesterday's sell off
Speaker 1: that ere raised one and a half trillion dollars of
Speaker 1: market value from US equities. We checked the markets every
Speaker 1: fifteen minutes throughout the trading day. On Bloomberg guess and
Speaker 1: P futures down five points this morning, Down futures down
Speaker 1: four and NASDAG futures down a hundred seven six. The
Speaker 1: decks in Germany is down more than two percent. The
Speaker 1: ten year treasury up eighteen thirty seconds, held two point
Speaker 1: eight one percent yield on the two year two point
Speaker 1: six one percent. No max Screwde oil is down one
Speaker 1: point six percent out a dollar seventy one and a a
Speaker 1: hundred seven dollars eighty eight cents of barrel COMEXS Gold
Speaker 1: up six tenths percent or eleven dollars twenty cents at
Speaker 1: eighteen thirty three sixty an ounce. The euro one point
Speaker 1: oh five oh two against the dollar British bound one
Speaker 1: point two four oh nine again is at one twenty
Speaker 1: seven point six eight, and Bitcoin this morning is down
Speaker 1: half percent at twenty nine thousand dollars. And shall me
Speaker 1: posting his first quarterly revenue decline on record this after
Speaker 1: beijing strict COVID containment policies crippled smartphone sales. We are
Speaker 1: watching for some earnings today from companies including coals. That's
Speaker 1: a Bloomberg business flash. Now here's Michael Barr with more
Speaker 1: on what's going on around the world. Michael, thank you
Speaker 1: very much, Jarren. The CDC's Independent Advisory Committee meets today
Speaker 1: to discuss whether to authorize Fiser's COVID nineteen booster shot
Speaker 1: children ages five to eleven. It's happening as the nation's
Speaker 1: COVID resurgence reaches its highest point since mid February. The
Speaker 1: suspected eighteen year old gunman in the deadly Buffalo supermarket
Speaker 1: shooting has a court appearance today. Authorities continue to investigate
Speaker 1: the possibility of a hate crime or terrorism charges against
Speaker 1: Peyton Gendrin. In the NHL playoffs, the Rangers lost to
Speaker 1: the Hurricanes to one in overtime in Game one of
Speaker 1: their series. In the NBA playoffs, the Warriors won Game
Speaker 1: one of their Western Conference Finals over the Mavericks. In baseball,
Speaker 1: the Yankees beat the Orioles three to the Mets, Red
Speaker 1: Sox and Nationals won the Giants, and A's lost. Global
Speaker 1: news twenty four hours a day on air and on
Speaker 1: Bloomberg quick Take, powered by more than twenty seven hundred
Speaker 1: journalists and analysts more than a hundred twenty countries. I'm
Speaker 1: like Labar, this is Bloomberg. Michael Thank you. Six twenty
Speaker 1: on Wall Street. We are live from the Bloomberg Interactive
Speaker 1: Broker Studios. This is Bloomberg Daybreak. The big story of
Speaker 1: this week seems to be the absolute implosion of some
Speaker 1: huge retail name sames like Walmart, Target, Costco. Join. I
Speaker 1: guess now, Joe Wisenhal, Bloomberg News Managing editor and host
Speaker 1: of the Odd Lots podcast, who just happened to write
Speaker 1: a story with that exact headline, Joe, there's a shift
Speaker 1: taking place? What is it? Yeah? I mean, look, you
Speaker 1: know what people have expected for a long time is
Speaker 1: that at some point there would be this big shift
Speaker 1: away from the type of sort of durable goods household
Speaker 1: goods consumption that we saw for the pandemic, because we
Speaker 1: know there was this big durable goods boom, but nobody
Speaker 1: really knew when. And if you think about it, you know,
Speaker 1: like remember what the story was last fall. Would there
Speaker 1: be empty shelves on the on the stores for Christmas?
Speaker 1: And so what you have is this effect where it's
Speaker 1: like everybody wanted to load up, everybody wanted to have inventories,
Speaker 1: everybody wanted to make sure that there was no um,
Speaker 1: you know, empty shelves. And what we're seeing now is
Speaker 1: that the consumption shift has happened in a big way
Speaker 1: really in the last two months, this sort of normalization
Speaker 1: of consumption. And now we see these huge piles of
Speaker 1: unsold inventories places like Target and Walmart, and that's a
Speaker 1: pretty sort of like to costly. It's a costly shift
Speaker 1: for them. What am I spending my money on? Now?
Speaker 1: What if I shifted to? You know what? Target said
Speaker 1: yesterday that they're seeing a huge surge in luggage sales.
Speaker 1: So one category that is doing extremely well for Target
Speaker 1: is luggage. But it's pretty obvious like what that means.
Speaker 1: It's like the things that we put off for two
Speaker 1: years are coming back in a big way, and one
Speaker 1: of them is travel in BacT I know myself, you know,
Speaker 1: I'm not even typically a big traveler. I think I've
Speaker 1: been on like twelve flights in the last month and
Speaker 1: a half, which is like a record for me. It's
Speaker 1: like different work things, some vacations, some other traveling. And
Speaker 1: so this big shift is happening from the type of
Speaker 1: things that a lot of people simply did not do
Speaker 1: for essentially two straight years. Okay, so we've we're going
Speaker 1: from buying stuff to services. Services the biggest part of
Speaker 1: the economy. Um that gets a boost. Maybe the prices
Speaker 1: coming down on the stuff, Joe, the problem solved, Well,
Speaker 1: you look, it is the big hope, right. I don't
Speaker 1: know if the problem is solved, but the hope would
Speaker 1: be at least that when we have normalized consumption, where
Speaker 1: we when we're our lifestyle but our purchasing petits are
Speaker 1: roughly what they were in twenty nineteen, that mixtures returned,
Speaker 1: that then supply chains and offices and all that can
Speaker 1: more or less work is intended, and that that's that
Speaker 1: the FED would love that, investors would love it. We
Speaker 1: don't know if that will happen, especially on the price side,
Speaker 1: because look, we know that rents are picking up. That's
Speaker 1: not something that you know, it is like looks like
Speaker 1: it's going to go away imminently. We know that services
Speaker 1: prices are saying firming inflation. So I think the jury
Speaker 1: is still out on whether the sort of inflation will
Speaker 1: normalize just when our consumption normalizes, but I think that
Speaker 1: will be part of it. And look, we know like
Speaker 1: there is an element of the current inflation that sort
Speaker 1: of related to the pandemic, and so the big question
Speaker 1: is how much we'll probably find out soon what's sort
Speaker 1: of like real underlying inflation looks like, and that will
Speaker 1: tell us how much more work the FED has to
Speaker 1: do to get back to target. What's the bull whip effect? Yeah,
Speaker 1: I mean, it's this phenomenon that supply chain professionals have
Speaker 1: talked about for a long time, long before the pandemic.
Speaker 1: But it basically is this phenomenon in which it becomes
Speaker 1: extremely hard in a shock to accurately gauge um uh
Speaker 1: proper level of inventory and buying, and people don't have
Speaker 1: much visibility into what the end consumer is going to
Speaker 1: look like. So companies change their whole patterns. You see, okay,
Speaker 1: we're getting a big pickup in demand for are toast
Speaker 1: offens or new refrigerators or the you know, furniture, and
Speaker 1: so then everybody starts cranking up uh you know, production
Speaker 1: of furniture and orders of furniture, and then people over
Speaker 1: order because again, remember we had these shortages, and so
Speaker 1: if you're facing shortages, when you do, you're like, well,
Speaker 1: I'm going to order even more just to make sure
Speaker 1: I don't run out. But then it sort of whips
Speaker 1: in the other direction, and then you have these really
Speaker 1: magnified errors in both directions where you go from shortages
Speaker 1: to gluts very fast because of the compensation in either direction.
Speaker 1: It sounds like they're parallels. Also to FED Policy, Joel
Speaker 1: thanks a lot, appreciate it. Joey isn't thought, the Bloomberg
Speaker 1: News Managing editor, also the host of the Odd Lots podcast.
Speaker 1: And I had the cash of about Wall Street futures
Speaker 1: after yesday four percent sell off for the SMP five hundred.
Speaker 1: We have futures lower this morning. SMP futures down fifty
Speaker 1: two down future is four hundred two points lower than
Speaker 1: AMSDACK futures down one utter day and seventy points. You're
Speaker 1: listening to Bloomberg Day Prey and the Bloomberg Weather from
Speaker 1: meteorologist Rob Carolin. They have some real heavy rain this
Speaker 1: morning for rain will end this morning becoming party site
Speaker 1: the Heights Aptude today seventy to seventy five degrees broadcasting
Speaker 1: live from the Bloomberg Interactive Broker Studio in New York.
Speaker 1: Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston,
Speaker 1: Bloomberg one six one to San Francisco, Bloomberg nine sixty
Speaker 1: to the country, Sirius XM Chad A one nineteen and
Speaker 1: around the globe, the Bloomberg Business apt and Bloomberg Radio
Speaker 1: dot com. This is Bloomberg Daybreak. He's six thirty on
Speaker 1: blow Street. Good morning, I'm John Tucker and I'm Karen
Speaker 1: Moscow or just about three hours away from the open
Speaker 1: of US trading time for the five things you need
Speaker 1: to notice start your brought to you by Interactive Brokers.
Speaker 1: Interactive Brokers charges margin loan rates from one point three
Speaker 1: three to two point three three percent, rates subject to change.
Speaker 1: Learn more at ibk R dot com. Slash compare up first.
Speaker 1: US future is falling again as stocks come off their
Speaker 1: worst day in nearly two years. Weak retail earnings are
Speaker 1: stoking concerns about the consumer sector, and Mark Cudmore is
Speaker 1: a macro strategist for Bloomberg News. The weakness for the
Speaker 1: consumer sector was related in my point of view, and
Speaker 1: it makes sense that it's finally come. We kind of
Speaker 1: seem to be denying reality there. The bit that I'm
Speaker 1: really confused about is how fragile is the consumer overall?
Speaker 1: Because our session is definitely coming by the way, there's
Speaker 1: no chance of avoiding a hard landings we're just talking
Speaker 1: about when it comes. Bloomberg macro strategist Mark cud Morris
Speaker 1: as the most optimistic view has the US entering recession
Speaker 1: next year. So where do investors put their money? There's
Speaker 1: no good answer. According to David Dits, he's seen your
Speaker 1: portfolio strategist at Pepak Private Wealth. The alternatives like bitcoin
Speaker 1: have crash show there's only cash. But you know, with
Speaker 1: close to eight percent cash doesn't look very good for
Speaker 1: the long haul either. So it's a real hand reading
Speaker 1: time for investors. The facts Davids was against on Bloomberg
Speaker 1: Business Week heard Weekday Afternoons from two to five and
Speaker 1: Bloomberg Radio five hundred four percent yesterday. This morning, SMP
Speaker 1: futures are down one point four percent. Well, the latest
Speaker 1: casualty of the sell off John Melvin Capital, Gabe Plotkin's
Speaker 1: hedge fund as calling it quests and bloombergerny to Young
Speaker 1: joins us live at the very latest. Good morning, Nina,
Speaker 1: Good morning Karen. Gabe Plotkin is shutting down his seven
Speaker 1: point eight billion dollar hedge fund. Melvin Capital Management was
Speaker 1: the most prominent victim of last year's memestock frenzy, losing billions.
Speaker 1: The fund posted of fifty five percent lost that month alone,
Speaker 1: and since then, Plotkin has been trying to claw his
Speaker 1: way back with funding from some of Wall Street's biggest players.
Speaker 1: Now the fund showed some promise last year, but a
Speaker 1: plan to reimpose fees frustrated backers and failed. Now Melvin
Speaker 1: Capital is outlining plans to elimit eight fees and return
Speaker 1: investor cash. Live in New York. I'm gonna need a
Speaker 1: young Bloomberg payperreak. Thanks for the earnings from Cisco. Also
Speaker 1: wing on sentiment, the tech combody warning that lockdowns in
Speaker 1: China and supply chain disruptions could white bound sales growth
Speaker 1: this quarter. Cisco shares down more than ten percent and
Speaker 1: early trading and some big names on Wall Street are
Speaker 1: slashing their forecast. Economist at JP Morgan are cutting their
Speaker 1: US growth outlook for the year to two point four percent,
Speaker 1: and most Fargo is cutting its view on the SNP
Speaker 1: five hundred. It's year on target now hovers around. That's
Speaker 1: the five things you need to notice start your day.
Speaker 1: Brought to you by Interactor Brokers. All right, thanks Karen,
Speaker 1: it is now six thirty three. Yeah, it's time now
Speaker 1: the bringing Michael bar for what else is going on
Speaker 1: in New York end around the world. Thank you, John.
Speaker 1: The white eighteen year old gunmen accused of killing ten
Speaker 1: black people at a Buffalo supermarket is scheduled to appear
Speaker 1: in court today. Authorities continue to investigate the possibility of
Speaker 1: hate crime or terrorism riges against Peyton Gendrin. Meanwhile, the
Speaker 1: district attorney prosecuting the case says the authorities correctly followed
Speaker 1: protocol when investigating the threat the shooter made a year ago.
Speaker 1: Broome County d A. Mike Corteck, New York State Police
Speaker 1: followed up appropriately on what the school district advised them
Speaker 1: off They properly transported the individual to Bingaton General Hospital
Speaker 1: for a mental health evaluation. DA Cortchack says everyone involved
Speaker 1: will be reevaluating their procedures. New York Governor Kathy Hoco
Speaker 1: authorized the state's Attorney General to investigate social media platforms
Speaker 1: used by the suspected gunmen to determine whether they were
Speaker 1: liable for providing the platform to plan and promote violence.
Speaker 1: Local said social media companies have to take responsibility for
Speaker 1: incendiary content on their platforms. That's the intersection of two
Speaker 1: crises right now. They're unfolding in our country, the mainstreaming
Speaker 1: of hate speech, of racism, nationalism, white supremacy, and the
Speaker 1: easy access to military style weapons and magazines. Governor Uncle
Speaker 1: also says she signed an executive order that requires state
Speaker 1: police to flying people who might be deemed the danger
Speaker 1: to themselves or others. New York Mayor Eric Adams said
Speaker 1: he has no plans to reinstate a mask mandate in
Speaker 1: public schools, even after health officials this week raised the
Speaker 1: city's COVID alert level too high and advised wearing face coverings. Indoors,
Speaker 1: we are being extremely strategic, and we are fighting COVID
Speaker 1: with not only the twols that we didn't have before,
Speaker 1: but we're also fighting COVID using the intelligence we need
Speaker 1: to win. Mayor Adams says we're staying prepared and not panicking.
Speaker 1: Former New York City Mayor Bill de Blasio says he's
Speaker 1: considering it run for Congress after a legal battle over
Speaker 1: the state's political maps opened up a seat in Brooklyn.
Speaker 1: The two term Democrat, who left office at the end
Speaker 1: of one said that he is formed an exploratory committee
Speaker 1: the Justice Department announced u S Supreme Court justices will
Speaker 1: receive around the clock security at home, among other protections.
Speaker 1: It follows the leaked draft opinion advocating overturning abortion rights.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quick Take, powered by more than twenty seven
Speaker 1: hundred journalists analysts more than a hundred twenty countries. On
Speaker 1: Michael Barr, this is Bloomberg, John, Michael, thank you. He
Speaker 1: is now six thirty six on the Wall Street. Yeah,
Speaker 1: that's sign for the Bloomberg Sports Update. Heves John staff Shower,
Speaker 1: all right, John. The Rangers in the first round one
Speaker 1: a series where they never led Pittsburg until the overtime
Speaker 1: goal in game seven. Now round two. Game one at Carolina,
Speaker 1: Filipino scored seven minutes and it stayed one nothing for
Speaker 1: the next fifty minutes. Hurricanes were out of played in
Speaker 1: the first two periods, but they dominated the third. They
Speaker 1: tied the game on a Sebastian Oaho goal to twenty
Speaker 1: remaining and then three twelve and overtime. I Cole scored
Speaker 1: on a rebound of the Kings one two to one
Speaker 1: and now five and oh at home this postseason Calgary
Speaker 1: on a wild one with Edmonton nine to six. NBA
Speaker 1: Golden State blew out Dallas by twenty five. The mets
Speaker 1: great start has been without the still injured Jacob Graham,
Speaker 1: and now there's concerned about Max Scherzer got the winn
Speaker 1: A City field and proved five and one met Pete
Speaker 1: the Cardinals eleven to four, but Scherzer took himself out
Speaker 1: six inning discomfort in his left side. I don't think
Speaker 1: this is a major string um, you know, Like I said,
Speaker 1: I was kind of heightened and all of a sudden
Speaker 1: when you know, but I don't feel like I really ripped,
Speaker 1: you know, you know, kind of say it, you know,
Speaker 1: I felt like it just kind of got worse. We'll
Speaker 1: have an m r R today. Yankees made a twenty
Speaker 1: one of the last twenty four three two in Baltimore,
Speaker 1: all three runs in the first inning. Garrett Cole got
Speaker 1: the wind Clay Homes to say, the Giants with salary
Speaker 1: cap issues, I had to release one of their best
Speaker 1: players and now they'll see cornerback James Bradbury twice. He
Speaker 1: signed with Philadelphia p H Championship short Hills in Tulsa
Speaker 1: without the defending jam Phil Mickelson, Bryson de Shambo Withdrew
Speaker 1: injured hand, but a marquee threesome this morning. Jordan's Feed,
Speaker 1: Rory math Leroy Tiger a Wolds Live, PGA covered Don
Speaker 1: Bloomberg Radio Today Stinging at four and the PGA Championship
Speaker 1: wrap up show at eleven New Ones. Actually I wanted
Speaker 1: Bloomberg's Worst Dome. All right, Jonath, thanks very much. Sixty
Speaker 1: seven on Wall Street and it is time now to
Speaker 1: take a look at stocks and some of the names
Speaker 1: that are moving into the pre market, and for that
Speaker 1: we're joined by Bloomberg Radio and TV Markets. Corresponded critic Gupta.
Speaker 1: I'm looking for a broader theme for the markets, the
Speaker 1: narrative that they're latching onto, and I guess it's margin compression.
Speaker 1: Higher costs are squeezing profits pretty much. That and if
Speaker 1: you have any kind of exposure to China, anything COVID
Speaker 1: lockdown related, your stock is going to crash. And I
Speaker 1: think a great case study of it is one of
Speaker 1: the worst performing stocks this morning, which of course the
Speaker 1: Cisco CUS CEO is your ticker down about thirteen percent.
Speaker 1: They came out and they said, I believe the report
Speaker 1: earnings last night, and they came out and said that
Speaker 1: their warning that Chinese lockdowns and other supply disruptions would
Speaker 1: wipe out sales growth in the current quarter, not eat
Speaker 1: into margins, but wipe it out completely. UM and then
Speaker 1: of course adds onto the broader concerns about tech, which
Speaker 1: has been dragging the entire market down. Remember these were
Speaker 1: the big names that we're dragging UM or pulling the
Speaker 1: market up to record highs. I should say, um, But
Speaker 1: there is some green on the screen. If you want
Speaker 1: to think, I've got one for you, really yeah, uh,
Speaker 1: if you are worried about China lockdowns, if you're worried
Speaker 1: about supply shortages, thinking about the companies that are benefiting
Speaker 1: from supply shortages or benefit from a supply shortage and
Speaker 1: a lockdown in China. We'll have about energy chip company Synopsis,
Speaker 1: for example, it's a chip software designer, and they're saying
Speaker 1: they reported extremely strong demand. It's actually one of the
Speaker 1: only five stocks that are in the green this morning.
Speaker 1: S NPS is your taker. It's up just shy of
Speaker 1: four percent. But then to your point, you said energy,
Speaker 1: you said food as well. If you look some of
Speaker 1: the other four names in the green. See if Industries
Speaker 1: is a fertilizer company, it's about seven tenths of one percent.
Speaker 1: Newmont higher with gold prices this morning, an e M
Speaker 1: is your taker up six tenths of one percent. N
Speaker 1: r G, your energy companies right there up five tenths
Speaker 1: of one percent, and even album Marle a LB, which
Speaker 1: is a it makes lithium that helps kind of feed
Speaker 1: E V batteries for example, a l B is the
Speaker 1: taker up two tenths of one percent. So really anything
Speaker 1: commodities related at least in that pocket is doing well.
Speaker 1: But then if you look into the majors like a
Speaker 1: Chevron or an Xon for example, those are down as well.
Speaker 1: So there are very very small pockets of green, okay,
Speaker 1: and that we'll recap retail. For me, that's not the
Speaker 1: place for investors to be right now, I guess it's
Speaker 1: not the place for investors to be, and arguably it's
Speaker 1: what sparked this whole entire thing. You actually look at
Speaker 1: just follow up from the earnings we heard this week.
Speaker 1: Walmart w MT down eight tenths of one percent this morning,
Speaker 1: Costco as well, c o S T down one percent,
Speaker 1: t GT for Target down one percent as well. But
Speaker 1: remember we do get coals earnings a little bit k SS,
Speaker 1: so keep an eye on those shapes. Be very interesting.
Speaker 1: Thank you, Boomberg Radio on TV. Markets corresponded Critty Gupta
Speaker 1: and look, you get stocks as a whole ahead of
Speaker 1: the open. SMP futures right now they are down fifty
Speaker 1: three points. That's a decline at one point four percent
Speaker 1: empty yesterday's four percent sell off. Down futures four hundred
Speaker 1: four points lower but hasaking many futures are down one
Speaker 1: hundred and seventy four. You're listening to Bloomberg Daybreak, the
Speaker 1: Bloomberg Weather for a meteor roulogist Rob Karen and rain
Speaker 1: ending this morning then becoming partly Sunday today. The high
Speaker 1: temperature seventy to seventy five degrees, hardly cloudy tonight blows
Speaker 1: fifty five to sixty Markets headlines and breaking news twenty
Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg
Speaker 1: Business apt and at Bloomberg Quick Take. This is a
Speaker 1: Bloomberg Business Flash and I'm Karen Moscow and futures are
Speaker 1: lower this morning. We go to the First Word Breaking
Speaker 1: news desk for today's morning call. Here's Bill Maloney, Bill
Speaker 1: good more, Hang, Hey, good morning, Karen. That's right. US
Speaker 1: futures are sinking again after yesterday's plunge with doubt. Futures
Speaker 1: down three forty two points. Sv s drop forty five.
Speaker 1: Now it's like futures are lower by a hundred forty
Speaker 1: He was a ten year old at two point eight
Speaker 1: two percent. Gold is up twelve, oil is down and
Speaker 1: bitcoin is falling by point eight percent. Hong Kong drop
Speaker 1: two and a half percent overnight, while up markets are
Speaker 1: also in the red, that by two percent losses in
Speaker 1: the UK, France and Germany. Back in the US. On
Speaker 1: the economic frontday thirty initial jobs claims and the Philly
Speaker 1: Fed and at ten o'clock existing home sales. After the
Speaker 1: bellas night Cisco report, it shares it down twelve percent
Speaker 1: in the pre market, and the under Arms CEO stepped
Speaker 1: down regarding earnings this morning, look for a coolest report
Speaker 1: in the pre market and wrapping things up, under Armour
Speaker 1: was cut to equate over at Morgan Stanley Live from
Speaker 1: the first Breaking news Deskom Maloney, Karen, Hey, Bill, thank
Speaker 1: you to hear live breaking news of your bloombergy type
Speaker 1: squawk on your terminal SCU you a w K and
Speaker 1: we do have this headline that just crossed the Bloomberg
Speaker 1: sphere at airline's board is urging shareholders to reject the
Speaker 1: Jet Blue offer. Again at just crossing the Bloomberg and
Speaker 1: that's a Bloomberg business flash. Now here's Michael Barr with
Speaker 1: more on what's going on around the world. Plunk off, Karen,
Speaker 1: thank you very much more. Ukrainian soldiers were evacuated from
Speaker 1: a steel plant in Mariuple. Several buses accompanied by Russian
Speaker 1: military vehicles were seen pulling away from the plant. President
Speaker 1: Joe Biden invoked emergency powers under the Defense Production Act
Speaker 1: to try and boost production of baby formula to alleviate shortages.
Speaker 1: The suspect in the Buffalo killings will be in court today. Meanwhile,
Speaker 1: players on the Buffalo Bills visited the memorial outside the
Speaker 1: supermarket shouting. In the NHL Playoffs, the Rangers lost to
Speaker 1: the Hurricanes to one in overtime in game one of
Speaker 1: their series. In the NBA Playoffs, the Warriors one game
Speaker 1: one of their Western Finals over the Mavericks. In baseball,
Speaker 1: the Yankees beat the Orioles three to the Mets, Red
Speaker 1: Sox and Nationals won the Giants and A's lost Global
Speaker 1: News twenty four hours a day on air, and don
Speaker 1: Bloomberg Quick Tank powered by more than seven hundred journalists
Speaker 1: and analysts more than a D twenty countries. I'm Michael Barr.
Speaker 1: This is Bloomberg. The following commentary is from Bloomberg Opinion, Buffalo.
Speaker 1: I'm Jonathan Bernstein, a columnist for Bloomberg Opinion. Joe Biden's
Speaker 1: Buffalo speech on Tuesday, hitting on the necessary themes of
Speaker 1: combating hatred and defending democracy, was a good one. The
Speaker 1: speech was extremely by nesque, combining all of his leading
Speaker 1: traits as a public figure. Biden displayed the empathy that
Speaker 1: was a central part of his campaign. He also deployed,
Speaker 1: as usual, his scrantonius, not as a contrast to other
Speaker 1: places or backgrounds, but as an inclusive form of one
Speaker 1: of US representation. But Biden isn't just an empathy president
Speaker 1: or one of US president. He's also the guy who
Speaker 1: shoots off his mouth too often, and he used blunt
Speaker 1: words in Buffalo. Domestic terrorism, racism, white supremacy. For Biden,
Speaker 1: empathy and Scrantonness set the stage for the bluntness needed
Speaker 1: to make clear that attacks like the Buffalo massacre are
Speaker 1: t connected to bigger than speech in the public sphere
Speaker 1: and two broader attacks on US democracy. That doesn't mean
Speaker 1: that the speech is going to solve everything. Speeches don't
Speaker 1: have that power. Presidents don't have that power. But every
Speaker 1: little bit helps. I'm Jonathan Bernstein. For more opinion, please
Speaker 1: go to Bloomberg dot com, slash Opinion or opi and
Speaker 1: go on the Bloomberg terminal. These has been Bloomberg Opinion
Speaker 1: and Bloomberg Opinion commentaries can be heard every weekday at
Speaker 1: this time and terminal customers can read more at O
Speaker 1: P I N go. It is six fifty on Wall Street.
Speaker 1: We turned to news and science and technology now at
Speaker 1: the Bloomberg and J I. T. Stem Report, and here's
Speaker 1: what's making news and science, technology, engineering, and math. Spain
Speaker 1: is experiencing unusually high temperature levels amid a heat wave
Speaker 1: that's expected to take thermometers above a hundred and four
Speaker 1: degrees fahrenheit this weekend. It adds to a long list
Speaker 1: of extreme weather events in recent weeks showing the impact
Speaker 1: of climate change. A new study finds a micro plastics
Speaker 1: are widely present in the drinking water of Nigeria's large
Speaker 1: largest city, Logos. It's unclear how the tiny particles found
Speaker 1: in the environment and ingested by humans impacted health. A
Speaker 1: World Health Organization official warrants is urgent to learn about
Speaker 1: the health impact of microplastics on human health and its
Speaker 1: SpaceX looks to launch its newest rocket from Boca Chica, Texas.
Speaker 1: Government wildlife officials say several conservation measures need to be
Speaker 1: taken to minimize its impact on local species. Suggested mitigation
Speaker 1: efforts including contracting with a qualified biologist to monitor vegetation
Speaker 1: and birds, producing vehicle traffic, and adjusting lights to minimize
Speaker 1: the impact on sea turtles. That's a Bloomberg and j
Speaker 1: I t Stem report. John all right, thanks Karen, and
Speaker 1: we are live from the Bloomberg interhad to Broker Studios
Speaker 1: where it is now six fifty two on Wall Street.
Speaker 1: And that's time to take a look at what's going
Speaker 1: on in d C. Some of the top stories making
Speaker 1: news in the nation's capital include President Biden invoking emergency
Speaker 1: powers to try to ease the baby formula shortage, of
Speaker 1: the House also taking action passing it have to get
Speaker 1: baby formula bill, Democrats pressing the White House to go
Speaker 1: big on forgiving student loan debt. Let's take a deeper
Speaker 1: dive into these stories this morning. We're joined by Bloomberg
Speaker 1: government reporter Jack Fitzpatrick. Jack, thanks for being here. Appreciate it. Um.
Speaker 1: What action is the White House taking on the baby
Speaker 1: formula front in the immediate term? The President announced a
Speaker 1: couple of things. One, he's using the Defense Production Act
Speaker 1: to try to boost production of baby formula. That is
Speaker 1: the measure that allows the government to force companies to
Speaker 1: either produce or or prioritize the production of certain things.
Speaker 1: That could address if there are any shortcomings in the
Speaker 1: supply chain leading up to the production of baby formula,
Speaker 1: shortcomings in terms of an ingredient making it down the line.
Speaker 1: If government officials can find any instances when they can
Speaker 1: compel or in a greater way prioritize the movement of
Speaker 1: that to increase the production of baby formula, they'll do that.
Speaker 1: The other was allowing the use of government planes for imports.
Speaker 1: The import issue is going to be a significant measure
Speaker 1: that's getting a lot of attention on Capitol Hill as well,
Speaker 1: UH to try to alleviate the shortage and and probably
Speaker 1: has a significant amount of potential. In the short term.
Speaker 1: It takes a little while to increase production domestically, but
Speaker 1: there is a significant focus of of imports and the
Speaker 1: use of government planes. The president beliefs could speed that up.
Speaker 1: The House also pushing a measure. What is that and
Speaker 1: what's the likelihood of passage? It's a fairly small measure.
Speaker 1: It's twenty eight million dollars for the Food and Drug
Speaker 1: Administration UH. The House Appropriations Chair Rosa Deloro has said
Speaker 1: she she views them as being short staffed in terms
Speaker 1: of having inspectors, which is important because if they're looking
Speaker 1: for other ways to get to get baby formula other
Speaker 1: than the Abbot facility that had to close, then they
Speaker 1: need more inspectors to ensure that places that aren't on
Speaker 1: the f d a's lists already can be added to
Speaker 1: the list. So they need to go to more potential
Speaker 1: sources of production. UH. That was not negotiated with Senate Democrats,
Speaker 1: let alone any Republicans. The House passed it with a majority.
Speaker 1: It's it's path in the Senate is not entirely clear.
Speaker 1: Doloro's counterpart, the Appropriations Chair in the Senate, Patrick Leahy,
Speaker 1: said he may work on his own bill. It might
Speaker 1: end up being the same bill, but the fact that
Speaker 1: it doesn't have an entirely clear path and really is
Speaker 1: a House Democratic bill means we can't necessarily expect it
Speaker 1: to fly through the Senate immediately. There's some chatter from
Speaker 1: Democrats that a big, big measure to forgive student loan dead.
Speaker 1: What's the update, Yeah, Chuck Schumer. Very importantly, the Senate
Speaker 1: Majority Leader joined with Senators Elizabeth Warren and Raphael Warnock
Speaker 1: to try to pitch President Biden to go up to
Speaker 1: fifty dollars in student debt really relief. The President previously
Speaker 1: has indicated more looking like ten thousand dollars, So this
Speaker 1: is trying to really maximize whatever relief he may consider.
Speaker 1: To get the Senate Majority Leader on board with that
Speaker 1: pitch is significant. Obviously, Senator Elizabeth Warren campaigned very aggressively
Speaker 1: for the presidency on that issue, So there's pressure from
Speaker 1: Senate Democrats to try to get get it up to
Speaker 1: the biggest number possible. Uh. And obviously they're looking to
Speaker 1: the White House because the legislative path forward for this
Speaker 1: with Republican opposition would be very, very difficult. So there's
Speaker 1: a lot of focus on trying to negotiate with Biden
Speaker 1: directly to see what he can do unilaterally. Hey, finally,
Speaker 1: in the about a minute left, what was the big
Speaker 1: takeaway from yesterday's primary results? I would look to Pennsylvania
Speaker 1: and the Senate race. John Fetterman, the or progressive Democratic candidate,
Speaker 1: really beat Connor Lamb, the House moderate, quite easily by
Speaker 1: more than thirty percentage points. That's a pretty big victory
Speaker 1: for progressives. Very close race still being counted on the
Speaker 1: Republican side, uh me met Oz of dr oz fame.
Speaker 1: Is it a very narrow lead over Dave McCormick. It
Speaker 1: is within the realm of possibility that there will be
Speaker 1: an automatic recount, so that one could drag on for
Speaker 1: a little bit. Does the former President Trump still holds
Speaker 1: way of the Republican Party? Is Is that a takeaway
Speaker 1: or not? He would like a victory here. Oz was
Speaker 1: his picked candidate, and interestingly enough, the closeness of this
Speaker 1: race prompted former President Trump to say that his candidates
Speaker 1: should declare victory now before, in his words, they find
Speaker 1: more votes. So we're we're getting a revert where we're
Speaker 1: reverting back to the drama of due to the closeness
Speaker 1: of that Republican primary. Alright, Jack, thanks very much. We
Speaker 1: pretty appreciate that. Bloomberg Government reporter, Jack Fitzpatrick, you can
Speaker 1: more about these stories on Bloomberg dot com or on
Speaker 1: the Bloomberg churmnal. Also a reminder, you can follow all
Speaker 1: the latest on Bloomberg Radio in Washington. That's Bloomberg at
Speaker 1: one oh five point seven f m HD two. After
Speaker 1: yesterday's sell off in the markets, in turn in part
Speaker 1: triggered by the results that we saw from Target. The
Speaker 1: Dow futures right now down three hundred eighteen points, that's
Speaker 1: a one percent decline in the futures, the S and
Speaker 1: P five hundred futures after four four percent sell off yesterday,
Speaker 1: down forty two points right now, that's down another one
Speaker 1: percent of the pre market, and the futures down one
Speaker 1: hundred and forty two points, down one point two percent.
Speaker 1: Just ahead Bloomberg Surveillance after Karen Boscown, I'm John Tucker.
Speaker 1: This is Bloomberg day Break.