WEBVTT - Bloomberg Daybreak: June 1, 2022 - Hour 1 (Radio) 0:00:03.320 --> 0:00:06.359 Live from the Bloomberg Interacted Berger Studios. This is Bloomberg 0:00:06.400 --> 0:00:09.880 day Break for Wednesday, June one. Coming up this hour, 0:00:10.080 --> 0:00:12.640 Wall Street kicks off a new trading month after May 0:00:12.640 --> 0:00:15.320 saw the SMP five hundreds here on a pair of markets. 0:00:15.480 --> 0:00:18.560 Treasury Secretary Janet Yellen says she got in wrong last 0:00:18.600 --> 0:00:21.480 year on inflation. The FED starts to shrink its eight 0:00:21.520 --> 0:00:24.120 point nine truly the other ballot sheet, and the US 0:00:24.280 --> 0:00:27.680 ramps up military support to Ukraine. New York Governor Holcill 0:00:27.760 --> 0:00:30.800 introduces new gun reform measures, plus the first funerals have 0:00:30.880 --> 0:00:33.319 again for the victims of the Texas school shooting. Gun 0:00:33.400 --> 0:00:36.480 I'm Michael blarn More ahelf. I'm trying Stash Sharon. Sports 0:00:36.479 --> 0:00:39.400 blowout wins at Alton Mets and Yankees Rangers in Lightning 0:00:39.479 --> 0:00:44.680 play Game one at the Garden h tonight. That's all 0:00:44.760 --> 0:00:48.360 stread ahead on Bloomberg day Break on Bloomberg eleven three, 0:00:48.360 --> 0:00:52.599 on New York Bloomberg one, Washington, d C, Bloomberg one 0:00:52.640 --> 0:00:56.840 oh six one, Boston, Bloomberg nine sixties and Francisco Sirius 0:00:57.000 --> 0:01:00.000 x M one nineteen and around the world on Bloomberg 0:01:00.040 --> 0:01:11.160 Radio dot Com and via the Bluebird Business app Index 0:01:11.280 --> 0:01:13.839 futures are mixed this morning. We're coming up to funt 0:01:13.880 --> 0:01:15.559 on one on Wall Street, and we checked the markets 0:01:15.560 --> 0:01:18.720 every fifteen minutes throughout the trading day on bloomberg S 0:01:18.760 --> 0:01:21.399 and P futures up four points down, futures of A 0:01:21.480 --> 0:01:25.360 hundred fifteen, and Nastack futures lower down sixteen. Now the 0:01:25.400 --> 0:01:28.280 ten year treasury down five thirty seconds. They yield two 0:01:28.319 --> 0:01:30.600 point eight six percent, and they yield on the two 0:01:30.680 --> 0:01:33.880 year two point five seven percent, and the euro one 0:01:33.959 --> 0:01:37.520 point seven eight against the dollar. Nathan Caring US stocks 0:01:37.600 --> 0:01:39.800 begin this month of June after coming off a month 0:01:39.840 --> 0:01:43.600 where the SNP five hundred is basically unchanged, but that 0:01:43.680 --> 0:01:47.800 does not explain the extreme volatility. During the month of May, 0:01:47.840 --> 0:01:51.200 the benchmark index surged more than eight percent after falling 0:01:51.240 --> 0:01:53.880 within points of a twenty pcent dropped from a record, 0:01:54.000 --> 0:01:58.160 signifying a bear market. Peter Oppenheimer's chief Global equity strategistic 0:01:58.160 --> 0:02:01.960 Goldman sacks, if you look at history for markets, at 0:02:02.040 --> 0:02:04.320 least when you get pea inflation, you do tend to 0:02:04.360 --> 0:02:08.000 get a recovery in risk assets, and that's generally because 0:02:08.040 --> 0:02:12.320 it starts to alleviate pressures on on interest rates. By 0:02:12.360 --> 0:02:16.280 that stage, you've usually had markets ready pricing in an 0:02:16.280 --> 0:02:20.120 economic downturn. So at the point where people think that 0:02:20.200 --> 0:02:22.959 things are bad but getting less bad, you tend to 0:02:22.960 --> 0:02:26.160 get a recovery. Goldman Sachs. Chief global equity strategist Peter 0:02:26.240 --> 0:02:29.320 Roppenheimer still says he expects markets to be very volatile 0:02:29.360 --> 0:02:32.240 over the next few months, hopping left sentiment this morning, 0:02:32.320 --> 0:02:35.680 Nathan has corporate earning shares a Salesforce up eight percent 0:02:35.760 --> 0:02:39.040 in early trading, the company raising its annual profit forecast, 0:02:39.080 --> 0:02:42.560 and we get more from Bloomberg's Dunk Christner. It signals 0:02:42.560 --> 0:02:45.160 demand for business software is holding up in the face 0:02:45.200 --> 0:02:50.079 of macro economic instability. Salesforce said fiscal year earnings excluding 0:02:50.120 --> 0:02:52.600 some items, will be as much as four dollar seventy 0:02:52.639 --> 0:02:56.320 six cents. Analyst on average estimated annual profit of four 0:02:56.360 --> 0:03:00.400 dollar sixty eight cents. Salesforce is the leader in based 0:03:00.440 --> 0:03:04.280 customer management software now. During the pandemic, the company expanded 0:03:04.280 --> 0:03:07.560 its products for business productivity with the purchase of the 0:03:07.600 --> 0:03:11.160 messaging platform Slack at a price of twenty seven point 0:03:11.280 --> 0:03:14.280 seven billion dollars. In New York, I'm Doug Christener Bloomberg 0:03:14.320 --> 0:03:16.880 Gay Break, Okay, Doug Thanks. Crude oil is also on 0:03:16.919 --> 0:03:18.960 the rise this morning right now trading at a hundred 0:03:19.040 --> 0:03:22.200 sixteen dollar seventeen cents a barrel on the Nmax. This 0:03:22.280 --> 0:03:25.480 comes ahead of an OPEC plus routine meeting tomorrow to 0:03:25.560 --> 0:03:29.160 discuss supply policy. Ed Morris's City Groups global head of 0:03:29.160 --> 0:03:31.880 commodity Research. He says triple digit oil should be a 0:03:31.960 --> 0:03:35.160 lot lower. We have to just look at the cost 0:03:35.200 --> 0:03:37.560 structure of the industry. You have to look at where 0:03:37.640 --> 0:03:40.839 new production is coming and where would be coming even 0:03:40.880 --> 0:03:43.520 if we didn't have a hundred twenty three dollar red 0:03:43.760 --> 0:03:46.400 and I'd say it's more in the seventy dollar range 0:03:46.440 --> 0:03:48.920 than it is in the dwy dollar range, the City 0:03:48.920 --> 0:03:51.640 Groups said. Moore says demand for oil and refined products 0:03:51.640 --> 0:03:55.480 is falling as the economy starts bracing for a recession. Well, Nathan, 0:03:55.480 --> 0:03:58.280 Inflation still a major focus for market's in the top 0:03:58.280 --> 0:04:01.520 political challenge for the White House. Now, Treasury Secretary Janet 0:04:01.600 --> 0:04:04.520 Yellen is admitting she got it wrong last year when 0:04:04.520 --> 0:04:08.240 she said inflation would only be temporary. There have been 0:04:08.400 --> 0:04:13.800 unanticipated and lord shocks to the economy that have boosted 0:04:14.520 --> 0:04:20.000 energy and food prices and um supplied bottle knicks that 0:04:20.120 --> 0:04:24.240 have affected our economy badly that I didn't at the time, 0:04:24.360 --> 0:04:29.160 didn't fully understand, but we recognize that now. And an 0:04:29.160 --> 0:04:32.400 interview as CNN, Secretary Yellen said she's encouraged that core 0:04:32.520 --> 0:04:34.680 prices have started to come down, but she says she 0:04:34.760 --> 0:04:37.760 can't rule out future shocks. What Secretary Yellen was at 0:04:37.760 --> 0:04:40.200 the White House yesterday, Karen for a rare meeting between 0:04:40.200 --> 0:04:43.960 President Biden and FED chair j Powell. President used it 0:04:44.000 --> 0:04:46.800 to declare that he respects the Central banks independence while 0:04:46.920 --> 0:04:50.680 shifting responsibility for taming decades high inflation. I'm not going 0:04:50.720 --> 0:04:55.800 to interfere with their critically important work fetal responsibilities one 0:04:55.920 --> 0:05:00.200 full employment to stable prices. This is President Biden's ward 0:05:00.279 --> 0:05:03.880 in person session with Chairman Palellson's taking office and the 0:05:03.880 --> 0:05:06.159 FED will also be in focus today. Nathan. It's set 0:05:06.200 --> 0:05:09.520 to start shrinking it's eight point nine trillion dollar balance sheet. 0:05:09.600 --> 0:05:11.800 The Central Bank also releases the Beige Book, and we 0:05:11.880 --> 0:05:15.039 get more from Bloomberg's Michael McKee. The question is what 0:05:15.080 --> 0:05:17.719 will investors learn from the Beige Book that they don't 0:05:17.760 --> 0:05:21.120 already know. Are there hints in the anecdotal reports suggesting 0:05:21.360 --> 0:05:24.480 some goods or services are seeing prices level offer decline. 0:05:24.880 --> 0:05:29.000 Will there be any indications the labor market is loosening? Overall? 0:05:29.040 --> 0:05:31.880 The Beige Book is likely to assess the economy continues 0:05:31.920 --> 0:05:34.520 to expand at a moderate pace. That's the phrase the 0:05:34.520 --> 0:05:38.680 Fed usually uses. Consumers are still spending and manufacturers are 0:05:38.720 --> 0:05:41.839 trying to keep up. The survey is one input into 0:05:41.960 --> 0:05:45.440 FED policy decisions, but the Central Bank has already suggested 0:05:45.480 --> 0:05:47.760 it's made up his mind to raise rates at the 0:05:47.800 --> 0:05:50.880 next two meetings. Michael McKee, Bloomberg Daybreak. All right, Mike, 0:05:50.920 --> 0:05:53.920 thanks now the latest developments on the war. President Biden 0:05:53.960 --> 0:05:57.240 says he will give Ukraine advanced rocket systems and other 0:05:57.320 --> 0:06:00.320 weaponry to help in its battle with Russia. Amy Morris 0:06:00.320 --> 0:06:04.200 has details from our Bloomberg room in Washington. The President 0:06:04.200 --> 0:06:06.840 made the announcement in a New York Times article published 0:06:06.920 --> 0:06:10.080 last night. A senior US official hotels Bloomberg News. The 0:06:10.120 --> 0:06:13.599 package includes missiles that will allow Ukraine to strike locations 0:06:13.600 --> 0:06:16.800 as far as eighty kilometers away, and while world leaders 0:06:16.800 --> 0:06:19.480 have publicly called for such a move, one concern is 0:06:19.520 --> 0:06:23.039 whether Ukraine would use them to strike targets inside Russia 0:06:23.360 --> 0:06:26.480 that would risk expanding the war and pulling in NATO countries. 0:06:26.760 --> 0:06:29.160 The White House plans to formally announce the new seven 0:06:29.240 --> 0:06:33.320 hundred million dollar security assistance package today in Washington. I'm 0:06:33.360 --> 0:06:36.560 Amy Morris, Bloomberg Daybreak, Right, Amy, thank you. While President 0:06:36.640 --> 0:06:39.520 Biden will also be addressing the baby formulas shortage in 0:06:39.560 --> 0:06:41.680 the country. The White House said the President will meet 0:06:41.760 --> 0:06:46.040 virtually with infant formula manufacturers this afternoon. We'll finally careen. 0:06:46.120 --> 0:06:48.640 The world's richest man appears to have had it with 0:06:48.680 --> 0:06:52.240 this whole working from home thing. Testla CEO Elon Musk 0:06:52.360 --> 0:06:55.120 weighed in on the debate on Twitter by elaborating on 0:06:55.160 --> 0:06:58.200 an email he apparently sent to the Electric Carmakers executive 0:06:58.200 --> 0:07:01.880 staff under the subject line m work is no longer acceptable. 0:07:02.320 --> 0:07:04.880 Must grote that anyone who wishes to do remote work 0:07:04.960 --> 0:07:07.040 must be in the office for a minimum of forty 0:07:07.040 --> 0:07:11.680 hours per week or depart Tesla S ANDP. Future is 0:07:11.760 --> 0:07:14.040 right now up six points as we get ready to 0:07:14.120 --> 0:07:16.120 kick off the month of June. Straight ahead your latest 0:07:16.160 --> 0:07:23.360 local headlines and the check sports. This is Bloomberg. It's 0:07:23.360 --> 0:07:25.360 now five oh seven on Wall Street, where it's sixty 0:07:25.400 --> 0:07:27.720 degrees in Central Park. Still dealing with a little overnight 0:07:27.760 --> 0:07:30.440 construction on the south end of Jersey Turnpike truck lanes. 0:07:30.920 --> 0:07:33.720 Details coming up in traffic. First Michael Bark with more 0:07:33.760 --> 0:07:35.560 on what's going on in New York and around the world. 0:07:35.640 --> 0:07:39.000 Good morning, Michael, Good morning Nathan. Governor Kathy Oakle introduced 0:07:39.000 --> 0:07:41.720 a new package of gun reformed bills for New York 0:07:41.800 --> 0:07:45.680 State and after mass shootings in Buffalo and Uvaldi. It's 0:07:45.680 --> 0:07:48.480 a total of ten bills that would tighten New York's 0:07:48.520 --> 0:07:52.520 gun laws and close loopholes. Huncle says New York already 0:07:52.560 --> 0:07:54.520 has some of the toughest gun laws in the country, 0:07:54.520 --> 0:07:57.800 but clearly we need to make them even stronger. Among 0:07:57.880 --> 0:08:01.880 the proposed legislation is increased in the minimum age required 0:08:01.880 --> 0:08:05.480 to buy a semi automatic rifle from eighteen to twenty one. 0:08:05.640 --> 0:08:08.240 The victims of last week's mass shooting in a Texas 0:08:08.240 --> 0:08:10.560 grade school are being laid to rest in New Valley. 0:08:10.800 --> 0:08:14.520 The first funerals were held yesterday. A gunman killed nineteen 0:08:14.600 --> 0:08:19.080 children and two teachers. One of those teachers was Ava Morrellus. 0:08:19.080 --> 0:08:22.760 Her sister, Maggie Morrellus. Thomas says she told Governor abbot. 0:08:22.960 --> 0:08:25.600 If he wants to help, he could change the state's 0:08:25.640 --> 0:08:29.800 gun laws. There's no reason why this type of weapon 0:08:31.040 --> 0:08:35.560 should be among us people here. These things belong in 0:08:35.600 --> 0:08:39.560 the war. There's no war in the classroom. There's no 0:08:39.640 --> 0:08:43.880 war out here. Maggie morrellus Thomas says she does not 0:08:44.040 --> 0:08:47.439 want anyone to forget her sister's name. Seventeen other people 0:08:47.480 --> 0:08:50.120 were injured in the shooting. A woman wounded, and in 0:08:50.280 --> 0:08:53.079 April New York City subway shooting is filed a lawsuit 0:08:53.120 --> 0:08:57.560 against gun manufacturer Glock. In her lawsuit, Eileen Stewart says 0:08:57.640 --> 0:09:01.920 Glock endangered the public health and say the for the marketing, distribution, 0:09:02.040 --> 0:09:05.120 and sales of its guns. Ten people were shot and 0:09:05.160 --> 0:09:07.599 wounded as a man fire, dozens of bullets and the 0:09:07.679 --> 0:09:11.479 subway train full of morning commuters. New York was suspending 0:09:11.559 --> 0:09:13.839 its gas tax for the rest of the year. It 0:09:13.880 --> 0:09:17.160 would save sixteen cents per gallant. Joining Connecticut and suspending 0:09:17.160 --> 0:09:20.400 the gas tax. Governor hoc announced the new l I 0:09:20.520 --> 0:09:23.800 Double R terminal in midtown Manhattan will be named Grand 0:09:23.880 --> 0:09:27.320 Central Madison. You're talking about a place as iconic as 0:09:27.360 --> 0:09:31.520 Grand Central. You can't change that. And this conjures up 0:09:31.559 --> 0:09:34.920 the images of glory in a time early nine hundred 0:09:35.040 --> 0:09:39.800 nineteen nineteen twelve, when when the world was stunned by 0:09:39.960 --> 0:09:44.599 the magistrate of this building itself. Governor Hokel says it 0:09:44.679 --> 0:09:47.160 will be completed by the end of this year. Global 0:09:47.200 --> 0:09:49.520 News twenty four hours a day on air and on 0:09:49.559 --> 0:09:53.320 Bloomberg Quittake, powered by more than journalists analysts more than 0:09:53.360 --> 0:09:58.120 a hundred twenty countries. I'm Michael Barrn. This is Bloomberg Nathan. Alright, Michael, 0:09:58.160 --> 0:10:05.720 thank you. We're coming up to five ten on Wall Street. 0:10:05.720 --> 0:10:09.160 Time for the Bloomberg Sports Update, comporting John stash Our Morning, Nathan. 0:10:09.200 --> 0:10:10.920 Mets and Yankees both at home. They won by a 0:10:11.000 --> 0:10:14.000 combined score of nineteen o one. It was ten nothing 0:10:14.040 --> 0:10:17.040 for the Mats over Washington had seventeen hits, Mark Canna 0:10:17.120 --> 0:10:19.920 had four, jeff Rick Meal three home run for Starling 0:10:19.960 --> 0:10:22.200 Marte and edwardo Escobar, and the Mets have won five 0:10:22.200 --> 0:10:25.720 in rows, scoring forty four runs in those five games, 0:10:25.800 --> 0:10:28.000 twenty three runs in the two games so far with 0:10:28.080 --> 0:10:30.280 the Nationals. At day games today at City Fields at 0:10:30.280 --> 0:10:33.120 the Stadium, Yanks over the Angels nine to one, four 0:10:33.240 --> 0:10:35.160 run first inning with the two run over by the 0:10:35.160 --> 0:10:37.800 newest Yank Matt Carpenter, whose a Trevino later with a 0:10:37.840 --> 0:10:41.040 two run shot and twenty of run support for Jordan Montgomery, 0:10:41.080 --> 0:10:43.160 who normally does not get it. He got his first 0:10:43.160 --> 0:10:46.120 win wild start to the Stanley Cup West Finals as 0:10:46.160 --> 0:10:48.960 and Oilers in Denver. They combined for five goals in 0:10:49.000 --> 0:10:51.760 the first period, six more in the second. He has 0:10:51.840 --> 0:10:54.040 led seven to three. It was cut to seven six 0:10:54.400 --> 0:10:57.160 Colorado held on eight six. Don't expect the game like 0:10:57.200 --> 0:10:59.280 that tonight at the Gardeners. The Rangers and Lightning begin 0:10:59.679 --> 0:11:02.680 the East Finals. Two terrific goalies in this series. The 0:11:02.760 --> 0:11:06.760 Rangers igors Just Turkin Tampa Bays Andre Vassilevski. The Ranger 0:11:06.800 --> 0:11:10.040 defenseman is Adam Fox, two of the top goalies obviously 0:11:10.200 --> 0:11:16.080 uh as his traft record speak for itself, but kind 0:11:16.080 --> 0:11:18.240 of does to what he's done this year has been 0:11:19.160 --> 0:11:23.160 Stanley impressive, So definitely two good goal is uh you know, 0:11:23.360 --> 0:11:28.240 coming together and a lot of the Lightning, two time 0:11:28.280 --> 0:11:31.440 defending Stanley Cup champs. They just won their tenth straight series. 0:11:31.679 --> 0:11:33.720 They swept Florida, who was the top seed in the 0:11:33.760 --> 0:11:36.720 East fifty ninth match between Raphael and Ala Novak Djokovic, 0:11:36.720 --> 0:11:40.000 who Natalie leads thirty to twenty nine the Dow one 0:11:40.000 --> 0:11:41.920 in four sets. He's into the semi finals of the 0:11:41.920 --> 0:11:45.280 French Open. John stash Or Bloomberg Sports Nathan all Right, John, 0:11:45.320 --> 0:11:48.240 thanks right now. SMP futures are higher by five points, 0:11:48.240 --> 0:11:50.319 Stole futures up a hundred twenty eight. That's again of 0:11:50.360 --> 0:11:53.480 four tenths percent for the Dow. NASAC features are lower, 0:11:53.600 --> 0:11:57.920 down twelve points. Tenure treasuries down five thirty seconds, the 0:11:58.000 --> 0:12:02.280 yield two point eight six percent. Stay with us. You 0:12:02.320 --> 0:12:07.720 are listening to Bloomberg Daybreak one and three adults, and 0:12:07.760 --> 0:12:10.800 Bloomberg Daybreak is brought to you by p Pack Gladstone Bank. 0:12:11.360 --> 0:12:13.920 At p Pack Gladstone Bank, they believe that all banking 0:12:13.960 --> 0:12:17.400 should be private banking. To learn more, visit pg bank 0:12:17.720 --> 0:12:23.480 dot com. Today, Markets headlines and breaking news twenty four 0:12:23.520 --> 0:12:26.520 hours a day at Bloomberg dot Com, the Bloomberg Business 0:12:26.559 --> 0:12:36.120 Outland at Bloomberg Quicktape. This is a Bloomberg Business Flash. 0:12:36.600 --> 0:12:39.480 And I'm Karen Moscow and stocks in Europe and US 0:12:39.520 --> 0:12:42.480 stock index futures have been struggling for direction. I'm at 0:12:42.480 --> 0:12:45.440 a debate over the scale of central bank monetary policy 0:12:45.480 --> 0:12:48.240 tightening needed to find inflation. We checked the markets every 0:12:48.240 --> 0:12:51.839 fifteen minutes throughout the trading day on Bloomberg and the futures. 0:12:51.840 --> 0:12:54.320 They're mixed. This morning. S and P futures are up 0:12:54.320 --> 0:12:56.640 six points down, futures of a hundred thirty three and 0:12:56.720 --> 0:12:59.960 nasdec futures down nine. The decks in Germany's up three 0:13:00.080 --> 0:13:03.240 tens of upper sent ten. Your treasury down five thirty seconds, 0:13:03.320 --> 0:13:05.320 YELD two point eight six percent. They yield on a 0:13:05.360 --> 0:13:08.400 two year two point five seven percent nine Max Screwed 0:13:08.400 --> 0:13:10.520 oil is up one point six percent, up a dollar 0:13:10.640 --> 0:13:13.680 eighty three and a hundred sixteen dollars forty nine cents 0:13:13.679 --> 0:13:16.600 of barrel comics. Gold is down one percent, or seventeen 0:13:16.600 --> 0:13:19.960 dollars seventy cents at eighteen thirty seventy announced. The Euro 0:13:20.040 --> 0:13:22.320 one point oh seven one nine against the dollar, British 0:13:22.320 --> 0:13:24.560 pound one point to five eight one, the yen at 0:13:24.559 --> 0:13:27.680 one nine point four zero, and Bitcoin this morning down 0:13:27.679 --> 0:13:31.679 six ten percent at thirty one five nine dollars. Today 0:13:31.720 --> 0:13:35.000 we are watching for reports on construction spending and manufacturing 0:13:35.000 --> 0:13:36.839 at at ten o'clock Wall Street time, along with the 0:13:36.920 --> 0:13:39.920 Jolts jobs report, and the Federal Reserve releases its BIGE 0:13:40.000 --> 0:13:43.040 book at h That's a Bloomberg Business Flash. Now here's 0:13:43.040 --> 0:13:45.839 Michael Barr with more on what's going on around the world. Michael, 0:13:45.840 --> 0:13:49.120 good morning, Good morning, Karen. President Joe Biden said he'll 0:13:49.200 --> 0:13:53.800 give Ukraine advanced rocket systems, another US weaponry to better 0:13:53.880 --> 0:13:56.720 hit targets and its war with Russia. The White House 0:13:56.760 --> 0:13:59.559 plans to announce the new seven hundred million dollar Security 0:13:59.559 --> 0:14:02.680 Assist Its Package today. Since the war began, the US 0:14:02.760 --> 0:14:05.520 has supplied more than four point five billion dollars in 0:14:05.600 --> 0:14:09.320 military aid. The first funerals for victims of last week's 0:14:09.320 --> 0:14:13.520 mass shooting at rob Elementary School began yesterday in Yuvaldi, Texas. 0:14:13.840 --> 0:14:16.280 In baseball, the Yankees one, the met shut out the 0:14:16.360 --> 0:14:19.760 Nationals ten zip the Red Sox Orioles, and A's lost 0:14:19.800 --> 0:14:24.120 the Giants one. In the NHL Eastern Conference Finals, two 0:14:24.240 --> 0:14:27.720 night is Game one as the Rangers host The Lightning 0:14:28.000 --> 0:14:30.800 Global News twenty four hours a day on air and 0:14:31.000 --> 0:14:34.440 on Bloomberg Quicktake, powered by more than twenty seven hundred 0:14:34.480 --> 0:14:37.360 journalists and analysts in more than a hundred twenty countries. 0:14:37.440 --> 0:14:40.360 I'm Michael Barr and this is Bloomberg. Nathan. All right, Michael, 0:14:40.400 --> 0:14:42.600 thank you. It's five nineteen on Wall Street Line from 0:14:42.640 --> 0:14:45.960 the Bloomberg Interactive Brokers Studios. This is Bloomberg day Break. 0:14:46.000 --> 0:14:47.920 Let's get more now. In that top story, Michael Barr 0:14:48.000 --> 0:14:50.960 just mentioned in the news there President Biden saying he 0:14:51.040 --> 0:14:56.160 will give Ukraine advanced rocket systems seven hundred million dollars 0:14:56.200 --> 0:14:58.840 in new military assistance on top of the more than 0:14:58.920 --> 0:15:02.040 four billion that's all ready been committed. Now the the 0:15:02.160 --> 0:15:06.360 Ukraine War is into its fourth month. Julie Norman joins 0:15:06.440 --> 0:15:08.880 US now co director of the Center for US Politics 0:15:09.200 --> 0:15:12.800 at University College London, Professor, It's always good to speak 0:15:12.840 --> 0:15:15.520 with you. Thanks for being with us. This new assistance 0:15:15.680 --> 0:15:18.560 that President Biden is promising, will it be enough to 0:15:18.600 --> 0:15:21.960 turn the tide in this war? Well, good morning, Nathan. 0:15:22.120 --> 0:15:26.600 And obviously Zelinski has been pushing the West for higher 0:15:26.680 --> 0:15:29.880 level of weapons systems from the beginning. This is a 0:15:29.960 --> 0:15:33.560 weapon system that should help, especially in the offenses in 0:15:33.640 --> 0:15:36.520 the East where there's been kind of the ongoing slug 0:15:36.560 --> 0:15:40.240 of artillery battles. And essentially what this a package essentially 0:15:40.240 --> 0:15:43.560 will offer is long range rocket systems that can hit 0:15:43.560 --> 0:15:46.560 targets like forty pretty much forty to fifty miles away, 0:15:46.600 --> 0:15:49.640 compared to the howitzers that we currently supply that can 0:15:49.720 --> 0:15:52.280 hit targets out eighteen miles away. So it does give 0:15:52.360 --> 0:15:55.240 a bit more power in that regard. It's not the 0:15:55.280 --> 0:15:57.600 longest weapon systems the US has, what's kind of the 0:15:57.680 --> 0:16:02.560 mid range one. Biden was really explicit in his comments 0:16:02.560 --> 0:16:04.640 on this and writing about it, saying that this is 0:16:04.680 --> 0:16:08.520 for use for defense within Ukraine's borders, not to target 0:16:08.600 --> 0:16:12.920 Russia over the border. So very explicit language from Biden 0:16:13.000 --> 0:16:16.000 how he sees or wants these weapon systems to be used. 0:16:16.240 --> 0:16:19.320 Given how much range these weapons systems do have forty 0:16:19.360 --> 0:16:21.400 to fifty miles, as you say, and given where the 0:16:21.400 --> 0:16:24.440 war is centered at the moment in eastern Ukraine and 0:16:24.480 --> 0:16:28.600 the disputed uh Don Boss region, is there a risk 0:16:29.000 --> 0:16:32.960 that providing these sorts of mid range weapons systems could 0:16:33.080 --> 0:16:36.960 widen the war further? Well, it's certainly a concern, and 0:16:37.000 --> 0:16:40.320 it's one reason why the administration has been i would 0:16:40.320 --> 0:16:43.160 say a little bit uh you know, hesitant to reluctant 0:16:43.160 --> 0:16:45.840 in the past to supply them. Your Russia has signaled 0:16:45.960 --> 0:16:48.920 very strongly that they wouldn't see this as an escalation. 0:16:49.040 --> 0:16:52.160 They do see this as increased US involvement. And again 0:16:52.200 --> 0:16:55.640 that's why we see these weapons, coupled with the very 0:16:55.640 --> 0:16:58.560 strong messaging from the US that they don't want these 0:16:58.600 --> 0:17:01.280 to be used offensively over the order, and even more 0:17:01.320 --> 0:17:04.680 explicit language also from Biden saying that he doesn't want 0:17:04.680 --> 0:17:08.240 this war to drag on simply to cause pain for Russia. 0:17:08.480 --> 0:17:11.240 Their goal is simply to try and you establish a 0:17:11.280 --> 0:17:13.959 sovereign Ukraine with the needs to defend itself. So a 0:17:14.000 --> 0:17:17.720 bit more clarifying of messaging from Biden and how and 0:17:17.760 --> 0:17:20.600 why he sees these weapons being necessary, and perhaps we've 0:17:20.600 --> 0:17:23.600 seen in some of the past weapons releases. I want 0:17:23.600 --> 0:17:25.680 to shift from the war in Ukraine to the war 0:17:25.880 --> 0:17:30.160 on inflation, something that President Biden is being pretty explicit 0:17:30.160 --> 0:17:32.720 about wanting to focus on now over the next month. 0:17:32.880 --> 0:17:36.800 Here we got that meeting yesterday with a FED chair J. Powell, 0:17:36.960 --> 0:17:40.600 and now this admission on CNN from Treasury Secretary yelling 0:17:41.040 --> 0:17:43.480 that she got it wrong when she says when she 0:17:43.480 --> 0:17:47.280 said that inflation was transitory. What does this say about 0:17:48.040 --> 0:17:52.280 where the White House is in the fight against inflation. Yeah, well, 0:17:52.320 --> 0:17:54.080 I think there's a couple of things here. So the 0:17:54.080 --> 0:17:56.919 White House is struggling obviously on the policy side of 0:17:56.960 --> 0:17:59.560 reigning in inflation, but also on the messaging and the 0:17:59.640 --> 0:18:02.480 narrow off side. And we've seen this shift not only 0:18:02.600 --> 0:18:05.880 from yelling but really from you know, Biden, across the administration. 0:18:06.520 --> 0:18:10.080 This time last year, everyone pretty much saying and that 0:18:10.280 --> 0:18:14.320 inflation was transitory, temporary. That shifted a bit in the fall, 0:18:14.400 --> 0:18:16.439 with a bit more emphasis on build back better as 0:18:16.480 --> 0:18:18.560 being the thing that would kind of calm some of 0:18:18.600 --> 0:18:22.040 the passion families that obviously didn't go anywhere. A shift 0:18:22.040 --> 0:18:24.480 in the spring to blaming Putin's war, And so now 0:18:24.480 --> 0:18:27.240 it's really kind of the rubber hitting the road in 0:18:27.320 --> 0:18:30.480 terms of being to really confront this as an ongoing issue, 0:18:30.560 --> 0:18:32.840 something that the White House needs to take control over 0:18:32.880 --> 0:18:35.360 in terms of the policy and messaging. So I think 0:18:35.400 --> 0:18:38.720 we'll see some different attempts here. Biden, you wrote a 0:18:38.920 --> 0:18:42.080 pretty um direct off ed and the Wall Street Journal 0:18:42.119 --> 0:18:44.159 this week kind of laying out some of his his 0:18:44.280 --> 0:18:46.760 thoughts on it. But in reality, it's going to be 0:18:46.800 --> 0:18:49.800 tough for the administrations to have a positive message on this, 0:18:49.920 --> 0:18:53.879 like prices are hurting Americans over people are feeling the 0:18:53.920 --> 0:18:56.960 pain right now and are expressing concern, and there's just 0:18:57.040 --> 0:18:59.000 not a lot that the Biden administration is going to 0:18:59.000 --> 0:19:01.760 be able to do about it, especially going into mid terms. 0:19:01.880 --> 0:19:04.640 Only about thirty seconds left here, Professor, what's the political 0:19:04.680 --> 0:19:07.840 impact is the White House plant catch up here? Oh? 0:19:07.960 --> 0:19:10.440 I think they definitely are. And it's just it's unfortunate. 0:19:10.480 --> 0:19:13.200 There's not really a good answer here because you either 0:19:13.720 --> 0:19:16.480 own that you got it wrong or you keep trying 0:19:16.520 --> 0:19:19.280 to peddle a optimistic message that just doesn't align with 0:19:19.320 --> 0:19:21.399 what people are feeling right now. So it's going to 0:19:21.440 --> 0:19:23.639 be a challenge for them. They're obviously going to be 0:19:23.680 --> 0:19:26.400 trying to do what they can. Biden is really emphasizing 0:19:26.400 --> 0:19:29.600 the independence of the FED and underscoring that as kind 0:19:29.600 --> 0:19:33.080 of his political um posturing on this is just respecting 0:19:33.080 --> 0:19:35.240 the Fed and Powell to do their best to handle this. 0:19:35.760 --> 0:19:37.879 As always, great to get your thoughts, Thanks so much, 0:19:37.960 --> 0:19:40.480 Julie Norman, co director of the Center for US Politics 0:19:40.800 --> 0:19:44.199 at University College London. Right now, SMP futures are up 0:19:44.240 --> 0:19:46.840 eight points, STOWN futures up a hundred forty seven, NASTAC 0:19:46.920 --> 0:19:50.320 futures are lower by two points. Basically unchanged. Tend your 0:19:50.359 --> 0:19:53.840 treasuries down six thirty seconds, the yield two point eight 0:19:53.920 --> 0:19:57.520 six percent, just ahead, stocks back where they started to 0:19:57.600 --> 0:20:03.400 kick off June, and sales force surging on boosted profit 0:20:03.680 --> 0:20:08.800 or outlook. This is Bloomberg Bloomberg day Break, brought to 0:20:08.800 --> 0:20:12.320 you by p Pack Gladstone Bank. At p Pack Gladstone Bank, 0:20:12.400 --> 0:20:15.320 they believe that all banking should be private banking. To 0:20:15.440 --> 0:20:26.160 learn more, visit pg bank dot com. Today broadcasting live 0:20:26.359 --> 0:20:30.320 from the Bloomberg Interactive Broker Studio in New York, Bloomberg 0:20:30.320 --> 0:20:35.120 in Freedon to Washington, d C, Bloomberg to Bomston, Bloomberg 0:20:35.160 --> 0:20:38.280 one O six one to San Francisco, Bloomberg N sixty 0:20:38.440 --> 0:20:41.080 to the country Sirius XM to A one nine team, 0:20:41.200 --> 0:20:44.359 and around the globe the Bloomberg Business app in Bloomberg 0:20:44.400 --> 0:20:53.960 Radio dot com. This is Bloomberg Daybreak. It's five thirty 0:20:53.960 --> 0:20:56.240 on Wall Street. Good morning. I'm Nathan Hagar and I'm 0:20:56.280 --> 0:20:59.000 Karen Moscow, and we're just about four hours away from 0:20:59.040 --> 0:21:00.720 the open of US tray day. Let's get you have 0:21:00.720 --> 0:21:02.160 to date in the news you need to know at 0:21:02.160 --> 0:21:04.560 this hour. U S docks begin June coming off a 0:21:04.600 --> 0:21:08.240 volatile month that left the SNP five hundred basically unchanged. 0:21:08.440 --> 0:21:10.639 During the month of May, the benchmark index surged more 0:21:10.680 --> 0:21:14.400 than eight percent after falling within points of a drop 0:21:14.440 --> 0:21:18.560 from her record. John Stulpis, chief investment strategist with Oppenheimer 0:21:18.640 --> 0:21:21.879 Asset Management, says he could see the index begin to 0:21:22.000 --> 0:21:24.639 rise again. The last time we saw a market that 0:21:24.760 --> 0:21:26.920 was in the process of coming out of the prices, 0:21:27.080 --> 0:21:30.959 which was two thousand and nine, the SNP declined percent 0:21:31.160 --> 0:21:35.040 from January to March oh nine. It then rallied sixty 0:21:35.080 --> 0:21:38.119 four percent to the end of the year. Oppenheimer Asset 0:21:38.160 --> 0:21:41.560 Management chief investment strategist John Stolfi says it's possible the 0:21:41.680 --> 0:21:44.760 SNP makes a similar climb, but he admits he may 0:21:44.800 --> 0:21:47.600 have to adjust his projections well. Inflation is still a 0:21:47.640 --> 0:21:50.560 major focus for market scaring at the top political challenge 0:21:50.600 --> 0:21:53.720 for the White House. Now, Treasury Secretary Janet Yellt is 0:21:53.720 --> 0:21:56.120 admitting she got it wrong last year when she said 0:21:56.160 --> 0:22:00.639 inflation would be temporary. There have been on anticipated and 0:22:00.840 --> 0:22:05.639 lord shocks to the economy that have boosted energy and 0:22:05.840 --> 0:22:10.880 food prices and supply bottle knicks that have affected our 0:22:10.920 --> 0:22:14.960 economy badly. That I didn't at the time, didn't fully 0:22:15.080 --> 0:22:18.880 understand the Treasury Secretary Janet Yellen told CNN she's encouraged 0:22:18.920 --> 0:22:21.800 prices are coming down, but you can't rule out future shocks. 0:22:22.000 --> 0:22:24.919