WEBVTT - Bloomberg Daybreak: May 9, 2022 - Hour 2 (Radio) 0:00:03.480 --> 0:00:06.760 Live from the Bloomberg Interactive Burgers Studios. Is is is Bloomberg 0:00:06.880 --> 0:00:10.280 Daybreak for a Monday, May nine two coming up this hour. 0:00:10.600 --> 0:00:13.399 Stocks fall and the dollar extends its rally as we 0:00:13.440 --> 0:00:16.840 begin a new trading week. Vladimir Putin justifies his invasion 0:00:16.920 --> 0:00:20.200 of Ukraine at the annual Victory Day celebration in Russia, 0:00:20.360 --> 0:00:23.520 and President Biden plants swap for free internet to millions 0:00:23.520 --> 0:00:27.000 of homes. New York Governor Kathy Hocle test positive for 0:00:27.080 --> 0:00:30.400 COVID plus Democrats help to pass legislation to preserve aboartion 0:00:30.520 --> 0:00:34.479 rights protections. I'm Michael barn More Ahead, I'm John stash 0:00:34.479 --> 0:00:37.560 Our in sports Mets and Yankees with doubleheader splits, NBA 0:00:37.600 --> 0:00:40.559 playoff wins for Dallas and Philadelphia, the Rangers at Game 0:00:40.640 --> 0:00:45.839 boor in Pittsburgh tonight. That's all s train ahead on 0:00:45.960 --> 0:00:51.640 Bloomberg Daybreak on Bloomberg eleven three on New York, Bloomberg one, Washington, 0:00:51.760 --> 0:00:55.880 d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, 0:00:55.880 --> 0:01:00.000 San Francisco, Syrius XM one nineteen and around the world 0:01:00.000 --> 0:01:03.120 Old on Bloomberg Radio dot Com and via the Bloomberg 0:01:03.160 --> 0:01:10.240 Business App and good morning. I'm Karen Moscow, I'm Nathan Hagar. 0:01:10.240 --> 0:01:12.520 Bloomberg Daybreak brought to you by B and Y Melon's 0:01:12.520 --> 0:01:15.440 Pershing Learned why the world's most sophisticated wealth management and 0:01:15.520 --> 0:01:19.200 institutional firms rely on Pershing to help them improve profitability, 0:01:19.280 --> 0:01:23.399 create efficiency, attract talent, and manage risk at Pershing dot Com. 0:01:23.440 --> 0:01:26.560 And futures are lower this morning. It is six oh 0:01:26.560 --> 0:01:28.400 one on Wall Street, and we check the markets every 0:01:28.400 --> 0:01:31.200 fifteen minutes throughout the trading day. On Bloomberg Guess and 0:01:31.240 --> 0:01:34.360 P futures down sixty four points down, futures down four 0:01:34.400 --> 0:01:37.360 hundred nine and as day futures down two D three 0:01:37.680 --> 0:01:40.280 ten year Treasury down sixty and thirty seconds. He had 0:01:40.360 --> 0:01:43.120 three point one nine percent and they yield on the 0:01:43.160 --> 0:01:46.360 two year two point seven zero percent and nim Ex 0:01:46.360 --> 0:01:50.520 screwed oil is falling down one point eight percent. Nathan, Yeah, Karen, 0:01:50.560 --> 0:01:52.080 looks like more of the same as we enter this 0:01:52.160 --> 0:01:54.760 new trading week stock slumping in the dollar is trading 0:01:54.760 --> 0:01:58.000 at a two year high as the feds aggressive tightening 0:01:58.000 --> 0:02:02.000 path and China's COVID lockdowns hit the economic outlook. Steve Brown, 0:02:02.120 --> 0:02:06.000 his senior portfolio manager at American Century Investment Management. The 0:02:06.000 --> 0:02:08.520 fan's gonna continue to raise rates untill they get the 0:02:08.560 --> 0:02:11.240 results they want, and I think one of the after 0:02:11.280 --> 0:02:13.639 effects of their rate hikes will be a slowdown in 0:02:13.720 --> 0:02:15.480 GDP in the second half of the year in the 0:02:15.560 --> 0:02:18.560 United States, as well as the reduction and earned mids 0:02:18.600 --> 0:02:21.560 for many companies within the SMP five hundred. American Century. 0:02:21.600 --> 0:02:24.120 Steve Brown notes the SMP five hundreds coming off it's 0:02:24.160 --> 0:02:27.440 fifth straight weekly dropped. That's the longest losing streak since 0:02:28.440 --> 0:02:30.880 Well Nathan. There was heavy selling in Asia over night. 0:02:30.960 --> 0:02:34.200 Japan's NK dropped two and a half percent, while stocks 0:02:34.200 --> 0:02:37.400 in Hong Kong plunged three point eight percent. To get 0:02:37.400 --> 0:02:40.840 the recap from Bloomberg's Juliets Sally and Singapore Good Morning, Juliet, 0:02:40.960 --> 0:02:42.919 Good Morning car and China's on shore you on slid 0:02:42.960 --> 0:02:44.880 past six pot seven to the dollar for the first 0:02:44.919 --> 0:02:48.239 time since twenty twenty a mid data showing stagnating imports 0:02:48.240 --> 0:02:51.480 in the slowest export growth in dollar terms since the pandemic. 0:02:51.760 --> 0:02:54.520 Premier Li Ka Chung warned about the employment situation as 0:02:54.560 --> 0:02:58.040 Beijing and Shanghai tiight and virus curbs, sending Stokes lo 0:02:58.200 --> 0:03:02.200 Um Australia's dollar slaw against the green back, testing seventy 0:03:02.320 --> 0:03:05.400 US since. Indonesian stocks felm the most since in November 0:03:05.400 --> 0:03:08.600 twenty twenty as markets reopened after the week long id 0:03:08.680 --> 0:03:13.079 holiday in Singapore. Juliette Sally Bloomberg Daybreak, All right, Juliette, 0:03:13.080 --> 0:03:14.840 thank you. We now turned to the war in Europe. 0:03:14.919 --> 0:03:17.840 As Russia's invasion of Ukraine enters its tenth week, President 0:03:17.880 --> 0:03:21.040 Vladimir Putin is presiding over his annual display of military 0:03:21.120 --> 0:03:24.080 mate on Moscow's Red Square. Let's get the very latest 0:03:24.080 --> 0:03:27.240 from Bloomberg's un Parts. Good morning, Good morning, cond Nathan, 0:03:27.280 --> 0:03:29.920 Russia's president has justified his war in Ukraine as a 0:03:29.960 --> 0:03:33.799 battle comparable to the fight against Nazi Germany. As Putin's 0:03:33.840 --> 0:03:36.960 faltering ten week old military action rumbles on, He's been 0:03:37.000 --> 0:03:41.640 speaking at Russia's annual Victory Day celebration on Moscow's Red Square. 0:03:41.960 --> 0:03:45.960 This year's display included eleven thousand troops and weaponry, including tanks, 0:03:46.040 --> 0:03:49.240 air defense systems, and nuclear missile launches, but this year 0:03:49.360 --> 0:03:52.240 foreign leaders were not invited. In London, I'm you and 0:03:52.240 --> 0:03:54.480 Parts Bloomberg Daybreak, All right, new and thank you all 0:03:54.480 --> 0:03:56.640 back here, in the UN, the government is adding more 0:03:56.800 --> 0:03:59.840 sanctions on Russia, including a band at American accounting and 0:04:00.040 --> 0:04:03.160 consulting firms, and Bloomberg states Baxter has the story. The 0:04:03.160 --> 0:04:07.080 measures also include new export controls on industrial goods, limits 0:04:07.080 --> 0:04:10.160 on three of Russia's top state controlled TV stations, and 0:04:10.240 --> 0:04:14.640 additional visa restrictions. Now, the accounting part imposes the first 0:04:14.800 --> 0:04:20.159 sanctions on gas Prom Bank, encompassing twenty seven sanctions. It 0:04:20.279 --> 0:04:22.480 is a first there because the US was afraid of 0:04:22.520 --> 0:04:25.200 disrupting oil shipments, but now that the G seven has 0:04:25.200 --> 0:04:28.760 approved cutting those shipments, it decided to go ahead. In 0:04:28.880 --> 0:04:31.720 San Francisco, I'm at Baxter Bloomberg, Gay break all right, 0:04:31.760 --> 0:04:34.080 and thank you. President Biden is also working on his 0:04:34.080 --> 0:04:36.440 political agenda back home. He is about to make high 0:04:36.480 --> 0:04:39.479 speed internet more widely available across the United States, even 0:04:39.520 --> 0:04:42.400 for households that normally can't afford it. Amy Morris has 0:04:42.440 --> 0:04:46.120 details from our Bloomberg newsroom in Washington. It is part 0:04:46.120 --> 0:04:49.960 of the infrastructure law that passed last year. Twenty internet providers, 0:04:49.960 --> 0:04:53.039 including A T and T, Comcast, and Verizon, agreed to 0:04:53.080 --> 0:04:56.520 offer high speed connections at essentially no cost to millions 0:04:56.520 --> 0:05:00.000 of low income households. Sources tell Bloomberg News some company 0:05:00.000 --> 0:05:02.840 these will drop the prices of existing plans, others will 0:05:02.960 --> 0:05:05.720 raise their speed. The companies word offered anything, and they 0:05:05.720 --> 0:05:09.040 won't get additional government funding. The government is also launching 0:05:09.040 --> 0:05:11.880 a website called get Internet dot gov to get more 0:05:11.880 --> 0:05:15.320 people involved in the program. President Biden will formally announce 0:05:15.360 --> 0:05:18.520 the plan today in Washington. I maybe more as Bloomberg Daybreak. 0:05:18.560 --> 0:05:20.960 All right, Amy, thank you Abhout staying in Washington. Now. 0:05:21.000 --> 0:05:23.320 It looks like the US government had a record tax 0:05:23.360 --> 0:05:25.200 hall of this spring. Some of the credit goes to 0:05:25.240 --> 0:05:28.719 the surge in individual stock trading by Americans. According to 0:05:28.760 --> 0:05:31.360 Treasury Department data, tax collections since the start of the 0:05:31.400 --> 0:05:34.080 fiscal year in October are running at a record high 0:05:34.400 --> 0:05:38.719 up some of this same period in nat Star past 0:05:38.760 --> 0:05:41.920 Wall Street and is helping to shrink the budget deficit. Well, 0:05:41.960 --> 0:05:44.960 tax collections go up, Karen, so does the price of gas. 0:05:45.080 --> 0:05:47.760 In fact, the average price of regular grade gasoline jumped 0:05:47.760 --> 0:05:50.760 fifteen cents over the past two weeks to four dollars 0:05:50.760 --> 0:05:53.840 and thirty eight cents per gallon. Industry analyst Trophy Lendbergh 0:05:53.880 --> 0:05:55.839 says that's a dollar thirty six higher than it was 0:05:55.839 --> 0:05:59.520 a year ago. Nationwide, the average the highest average price 0:05:59.560 --> 0:06:02.159 for regular grade is in the San Francisco Bay area 0:06:02.279 --> 0:06:05.479 five eight five a gallon. Alright, Nathan Well, another former 0:06:05.520 --> 0:06:08.880 Trump administration official, is telling all about the inner workings 0:06:08.920 --> 0:06:12.000 of the wine house. Former Defense Secretary Mark Esper said 0:06:12.240 --> 0:06:15.280 he prevented dangerous things from happening during his time at 0:06:15.279 --> 0:06:20.080 the Pentagon, like attacking Venezuela and blockading Cuba Aspersa. As President, 0:06:20.080 --> 0:06:23.880 Trump even suggested military action closer to home. The President 0:06:24.480 --> 0:06:26.800 pulls me aside on at least a couple occasions and 0:06:26.839 --> 0:06:30.800 suggests that maybe we have the US military shoot missiles 0:06:30.839 --> 0:06:34.320 into Mexico, shoot missiles into Mexico. For what he would 0:06:34.360 --> 0:06:37.560 say to go after the cartel's. Former Defense Secretary Mark 0:06:37.680 --> 0:06:40.760 Esper tells CBS is sixty minutes. The former president told 0:06:40.839 --> 0:06:43.279 him no one would know the attack came from the US. 0:06:43.560 --> 0:06:46.480 Trump responded to Esper's claim and a statement, writing, quote 0:06:46.520 --> 0:06:49.680 no comment. Listeners in the Washington area can hear sixty 0:06:49.720 --> 0:06:53.200 minutes every Sunday night at ten on Bloomberg and the 0:06:53.279 --> 0:06:56.080 programming not this morning, Karen, please join us on Bloomberg 0:06:56.160 --> 0:06:59.880 Surveillance when we speak live with Atlanta Fed President Raphael Bost. 0:07:00.200 --> 0:07:02.440 That's coming up at eight am Wall Street time on 0:07:02.480 --> 0:07:06.599 both Bloomberg Radio and Bloomberg Television. Right now, SMP futures 0:07:06.600 --> 0:07:09.760 are down sixty three points, STOW futures down fourdered four, 0:07:10.120 --> 0:07:13.160 NASTAC futures are lower by two un A thirty seven points. 0:07:13.200 --> 0:07:16.800 Straight ahead, your latest local headlines plus a check of sports. 0:07:17.320 --> 0:07:24.520 This is Bloomberg and it's now six oh seven on 0:07:24.520 --> 0:07:27.080 Wall Street where forty seven degrees in Central Park got 0:07:27.120 --> 0:07:30.840 an accident investigation in Nassau County. Westbound Southern States closed 0:07:30.880 --> 0:07:33.840 at Central Avenue. More coming up in traffic. First Michael 0:07:33.840 --> 0:07:35.720 Barr with more on what's going on in New York 0:07:35.760 --> 0:07:38.040 and around the world. Good morning, Michael, Good morning Nathan. 0:07:38.080 --> 0:07:41.480 New York Governor Kathy Hokel has tested positive for COVID nineteen. 0:07:41.920 --> 0:07:44.760 The governor made the announcement in a tweet yesterday afternoon. 0:07:45.040 --> 0:07:48.200 Governor Hokel says she is vaccinated and boosted against the 0:07:48.240 --> 0:07:51.840 virus and is feeling a symptomatic due to the positive 0:07:51.840 --> 0:07:54.960 test results. You will isolate and work remotely this week. 0:07:55.480 --> 0:07:58.840 Democrats are working to force a vote codify abortion rights 0:07:58.840 --> 0:08:02.200 for women, but X it's believed that vote will likely 0:08:02.360 --> 0:08:06.040 be blocked and the court's ruling will stand. Senator Amy 0:08:06.040 --> 0:08:09.560 Clobachar Minnesota says that if the Democrats are unable to 0:08:09.600 --> 0:08:13.680 successfully pass this legislation, the voters will respond. If we 0:08:13.760 --> 0:08:16.840 are not successful, then we go to the ballot box. 0:08:17.080 --> 0:08:19.560 We march straight to the ballot box, and the women 0:08:19.680 --> 0:08:22.520 of this country and the men who stand with them 0:08:22.680 --> 0:08:26.360 will vote like they've never voted before. Lawmakers in several 0:08:26.400 --> 0:08:29.680 states are already beginning to put in place their legislations 0:08:29.720 --> 0:08:34.120 restricting abortions. In Arkansas, Governor Asa Hutchinson signed a bill 0:08:34.240 --> 0:08:37.440 last year that prohibits abortion in all cases except to 0:08:37.480 --> 0:08:40.559 save the life of the mother. We wanted the reversus 0:08:40.600 --> 0:08:43.480 wade reversed and the authority to return to the states, 0:08:44.040 --> 0:08:47.680 and and so as a matter of principle, that's where 0:08:47.679 --> 0:08:51.880 it should be. Governor Hutchinson and Senator Clobachar spoke on 0:08:51.960 --> 0:08:55.040 ABC's This Week, which can be here at Sundays on Bloomberg. 0:08:55.520 --> 0:08:59.839 Dangerous gusty winds are expected to continue across northeast New 0:08:59.880 --> 0:09:04.360 Mexico today. That's likely to complicate the flight against wildfires 0:09:04.400 --> 0:09:08.440 that threatened thousands of homes in mountainous rural communities. A 0:09:08.480 --> 0:09:12.080 growing number of parents nationwide face a shortage of baby 0:09:12.200 --> 0:09:16.000 formula due to supply chain issues, and a February recall 0:09:16.160 --> 0:09:19.160 of three popular brands made by Abbot. Dr A Lock 0:09:19.240 --> 0:09:22.839 Betel is with Stanford Children's Health. For parents out there 0:09:22.920 --> 0:09:24.960 right now who are struggling to find a formula, one 0:09:25.000 --> 0:09:27.400 easy thing you can do is trying to switch formulas. 0:09:27.440 --> 0:09:30.439 See if your child can tolerate that. Dr Patel spoke 0:09:30.480 --> 0:09:34.439 to ABC. An earthquake centered northeast of South Carolina's capital 0:09:34.440 --> 0:09:38.920 city jolted large numbers of state residents awake. Authorities say 0:09:38.960 --> 0:09:42.080 the quake overnight had a preliminary three point three magnitude. 0:09:42.440 --> 0:09:45.080 Global News twenty four hours a day on air and 0:09:45.320 --> 0:09:48.760 on Bloomberg Quicktake, powered by more than twenty seven hundred 0:09:48.800 --> 0:09:52.040 journalists and analyst more than a hundred twenty countries. Michael 0:09:52.040 --> 0:09:59.319 Barr and this is Bloomberg, Nathan, Thank you, Michael six 0:09:59.400 --> 0:10:01.320 o nine on Wall Street Time for the Bloomberg Sports 0:10:01.400 --> 0:10:04.199 Update with john Sen shown all right, Athan, Yankees and Mets, 0:10:04.280 --> 0:10:06.240 Let's play to do all the rain at the stadium. 0:10:06.320 --> 0:10:08.319 Yankees won the opener with Texas to one on the 0:10:08.400 --> 0:10:10.400 Labor Toria his home run leading off the bottle of 0:10:10.480 --> 0:10:13.199 ninth and it went to right center field. Chris Woodward, 0:10:13.240 --> 0:10:15.360 the Rangers manager, said it would not have been a 0:10:15.360 --> 0:10:18.079 homer in any other ballpark, and he called Yankee Stadium 0:10:18.440 --> 0:10:21.320 a little league ballpark. Tore As was asked about that, 0:10:23.040 --> 0:10:26.360 I feel like both team play in the symbol par 0:10:26.840 --> 0:10:30.880 and he's a sentimation. Uh. I think I feel good 0:10:31.240 --> 0:10:34.760 to to his walk off homer in the little liberal 0:10:34.840 --> 0:10:39.720 par and I mean happy to one first tour as 0:10:39.760 --> 0:10:41.760 the second welk off head of the season, Yanks denied 0:10:41.800 --> 0:10:43.920 the sweet They led to nothing with a John Carlos 0:10:43.920 --> 0:10:46.400 Stanton home run, but Brad Miller to run shot off 0:10:46.440 --> 0:10:48.840 Michael Kings seventh and the Rangers went four to two. 0:10:49.200 --> 0:10:51.280 King took the loss. He came in having not allowed 0:10:51.280 --> 0:10:54.320 to run in thirteen straight innings. In Philadelphia, the Mets 0:10:54.320 --> 0:10:56.480 lost three to two. Max Jerger struck out ten but 0:10:56.520 --> 0:10:58.640 suffered his first Met loss. He's now four and one. 0:10:58.720 --> 0:11:01.280 Chris Bassett then got his fourth win and the Mets 0:11:01.320 --> 0:11:03.559 took the nightcap six to one, thanks to Pete Alonso 0:11:03.640 --> 0:11:05.680 to run over in the first to name three run 0:11:05.720 --> 0:11:08.439 shot in the fifth NBA and NHL Playoffs. There were 0:11:08.440 --> 0:11:11.800 six games played Sunday and all were Game four's, and 0:11:11.880 --> 0:11:14.319 all six or one by the home team, and all 0:11:14.360 --> 0:11:16.880 six series and outside to two. That's after Dallas beat 0:11:16.920 --> 0:11:19.840 Phoenix in the NBA and Philadelphia top Miami and Stanley 0:11:19.840 --> 0:11:23.200 Cup playoff wins for Boston, Tampa, Bay St. Louis in 0:11:23.360 --> 0:11:25.240 l A. The Rangers hoping to be too two with 0:11:25.320 --> 0:11:28.760 the Penguins after tonight's Game four in Pittsburgh. The Rangers 0:11:28.760 --> 0:11:31.680 two losses have been tough ones, first to triple overtime 0:11:32.000 --> 0:11:34.120 loss in Game one of them Saturday. They fell after 0:11:34.280 --> 0:11:37.360 coming from three goals down to tie things up. John Stash, 0:11:37.360 --> 0:11:40.120 they were Bloomberg Sports Nathan all Right, John, thank you. 0:11:40.320 --> 0:11:43.080 SMP futures down down sixty seven points, a drop of 0:11:43.160 --> 0:11:46.439 one point six percent. Now, DOWT futures down four thirty one. 0:11:46.840 --> 0:11:50.040 NASCAC futures are lower by nearly two percent, down two 0:11:50.200 --> 0:11:53.920 hundred forty five points. The dollar training at at two 0:11:54.040 --> 0:11:57.840 year high. Talk about dollar strength. Next to Jane Foley, 0:11:58.320 --> 0:12:01.320 head of f X strategy at Robbo Bank. You're listening 0:12:01.679 --> 0:12:09.160 to Bloomberg Daybreak, Bloomberg Day break brought to you by 0:12:09.160 --> 0:12:11.559 the Jewish Communal Fund j c F S don'tor advised 0:12:11.600 --> 0:12:14.120 fund is the smart choice to manage a philanthropy, especially 0:12:14.120 --> 0:12:16.880 in times of crisis. Make your giving impactful. Visit j 0:12:17.000 --> 0:12:23.960 c F n Y dot org, markets headlines and breaking 0:12:23.960 --> 0:12:26.880 news twenty four hours a day at Bloomberg dot Com, 0:12:27.000 --> 0:12:30.559 the Bloomberg Business app, and at Bloomberg Quicktake. He's a 0:12:30.640 --> 0:12:40.199 Bloomberg Business lash and I'm Karen Moscow. Investors rushing to 0:12:40.240 --> 0:12:43.079 the safety of the US dollar about global stock slide 0:12:43.080 --> 0:12:45.600 every closer to a bear market as the Federal Reserve's 0:12:45.600 --> 0:12:48.720 aggressive tightening path in China's COVID mockdowns worse in the 0:12:48.720 --> 0:12:51.960 outlook for economic growth, the dollar extending a two year high, 0:12:52.080 --> 0:12:54.440 rising against all of its major peers. We checked the 0:12:54.440 --> 0:12:57.719 markets every fifteen minutes throughout the trading day. On Bloomberg 0:12:57.720 --> 0:13:00.160 Guess and P Future is down sixty eight points. Out 0:13:00.200 --> 0:13:03.240 futures down four hundred forty three and as DAG futures 0:13:03.240 --> 0:13:06.080 down two hundred fifty one. That's down two percent. The 0:13:06.160 --> 0:13:09.320 decks in Germany is down one percent. The tend your 0:13:09.360 --> 0:13:12.560 treasury down eighteen thirty seconds. You'll three point zero percent. 0:13:12.640 --> 0:13:15.240 They yield on a two year two point seven one percent. 0:13:15.720 --> 0:13:18.439 Nimex Screude oil is down one point seven percent on 0:13:18.520 --> 0:13:20.840 a dollar eighties six and a hundred seven dollars eighty 0:13:20.920 --> 0:13:23.480 nine cents of barrel Comic schoold is down one point 0:13:23.480 --> 0:13:25.920 two percent or twenty two dollars nineties cents at eighteen 0:13:25.960 --> 0:13:29.080 fifty nine ninety announce. The euro one point oh five 0:13:29.120 --> 0:13:31.360 three eight against the dollar British found one point to 0:13:31.559 --> 0:13:33.760 three one eight and the end is at one thirty 0:13:33.800 --> 0:13:36.920 one point one seven. Bitcoin this morning lower down two 0:13:36.920 --> 0:13:39.320 and a half percent at thirty three thousand and three 0:13:39.400 --> 0:13:42.480 hundred sixty dollars. And that's at Bloomberg Business Flash. Now 0:13:42.520 --> 0:13:44.800 here's Michael Barr with more on what's going on around 0:13:44.800 --> 0:13:48.560 the world. Michael, thank you very much, Cameron. Russia commemorated 0:13:48.679 --> 0:13:52.160 Victory Day with a military parade. Russia's Victory Day marks 0:13:52.200 --> 0:13:55.640 the end of World War Two. President Vladimir Putin addressed 0:13:55.640 --> 0:13:59.520 the parade in Red Square as Ukraine's military warns of 0:13:59.559 --> 0:14:03.000 a high probability of missile strikes ahead of the expected 0:14:03.040 --> 0:14:06.320 Senate vote this week on an abortion rights bill. Catholic 0:14:06.440 --> 0:14:10.840 churches in cities across the country are increasing security. In baseball, 0:14:10.880 --> 0:14:13.199 the Yankees split a double header with the Rangers. The 0:14:13.280 --> 0:14:15.839 Mets split a double header with the Phillies. The Orioles 0:14:16.040 --> 0:14:18.880 swept a double header against the Royals. The Red Sox, 0:14:18.960 --> 0:14:22.320 Nationals and A's lost. The Giants won n NHL Playoffs. 0:14:22.360 --> 0:14:24.840 The Bruins beat the Hurricanes that even the series at 0:14:24.840 --> 0:14:28.400 two games. Apiece Global News twenty four hours a day 0:14:28.440 --> 0:14:31.320 on air and on Bloomberg Quick Take, powered by more 0:14:31.360 --> 0:14:33.640 than twenty seven hundred journalists, and that list for more 0:14:33.680 --> 0:14:36.200 than a hundred twenty countries. I'm Michael Barr, and this 0:14:36.360 --> 0:14:39.400 is Bloomberg. Nathan, Okay, Michael, thank you, at six nineteen 0:14:39.400 --> 0:14:42.360 on Wall Street Live from the Bloomberg Interactive Broker Studios. 0:14:42.360 --> 0:14:45.320 This is Bloomberg Daybreak, and let's talk more now about 0:14:45.400 --> 0:14:48.520 this strengthening dollar, the greenbacks about the only thing in 0:14:48.640 --> 0:14:52.120 the green this morning, as US stocks look poised for 0:14:52.200 --> 0:14:57.240 a sixth straight week of losses. For more, We're joined 0:14:57.240 --> 0:15:01.040 by Jane Foley, head of f X Strategy at Bravo Bank. Jane, 0:15:01.080 --> 0:15:03.440 it's good to have you back with us this morning. 0:15:03.880 --> 0:15:07.360 Is this a case of there is no alternative when 0:15:07.400 --> 0:15:11.000 it comes to safety the US dollar. Yeah, you know what, 0:15:11.080 --> 0:15:12.640 I think that's what it is. I mean, we could 0:15:12.640 --> 0:15:15.440 talk about the FED, but certainly I think this is 0:15:15.440 --> 0:15:17.840 part of a bigger picture. So we have an environment 0:15:17.880 --> 0:15:21.840 here where China is slowing. Certainly, we have an environment 0:15:21.840 --> 0:15:25.440 where there's lots of concerns about energy security in the Eurozone, 0:15:25.480 --> 0:15:28.960 and certainly if the EU do go ahead and have 0:15:29.080 --> 0:15:32.440 an oil embargo on Russia, that will not be without 0:15:32.440 --> 0:15:36.960 paying for big industrialized economies such as Germany. And so 0:15:37.000 --> 0:15:39.600 we are now talking about the possibility of of no 0:15:39.760 --> 0:15:42.400 growth maybe next year in the Eurozone. Some people talking 0:15:42.400 --> 0:15:45.640 about the possibility of a recession, and that is very 0:15:45.720 --> 0:15:49.200 much linked to the energy story. So slower growth certainly 0:15:49.200 --> 0:15:52.440 in Neurozone, slow growth now in in China, link with 0:15:52.440 --> 0:15:56.360 the COVID stories. We have an environment where emerging markets 0:15:56.600 --> 0:16:01.360 are looking pretty risky, perhaps unless they are big exporters 0:16:01.440 --> 0:16:06.440 of energy. Certainly in emerging markets don't look too good. 0:16:06.480 --> 0:16:10.040 And certainly when you have a backdrop of higher US 0:16:10.080 --> 0:16:13.200 interest rates, well that's something which generally speaking will be 0:16:13.360 --> 0:16:16.440 detrimental to quite a fair view of emerging markets. So 0:16:16.760 --> 0:16:19.040 in that environment, what do you buy or you buy 0:16:19.040 --> 0:16:21.920 safe haven. But the end right now is not really 0:16:21.960 --> 0:16:25.200 a safe haven. It's it's current account position has really 0:16:25.240 --> 0:16:29.080 been quashed by the higher commodity prices. And you've got 0:16:29.120 --> 0:16:32.440 that intrastrate differential issue going on in Japan. Two. So 0:16:32.920 --> 0:16:36.600 it is the dollar and in our view the factors 0:16:36.640 --> 0:16:39.080 that are coming together right now. Do you suggest that 0:16:39.160 --> 0:16:43.240 we could have a stronger, for longer US dollar? So 0:16:43.360 --> 0:16:45.360 do you think that we could be headed to a 0:16:45.440 --> 0:16:48.600 point where the euro reaches parody with the dollar? Is 0:16:49.040 --> 0:16:51.880 that where we could be headed? Yeah? You know what, 0:16:51.960 --> 0:16:53.440 how do you ask me that a couple of months ago, 0:16:53.520 --> 0:16:55.880 I just said, you know, I hope not, because if 0:16:55.920 --> 0:16:59.560 we see parity for the euro dollar, then it suggests 0:17:00.120 --> 0:17:03.440 a combination of some nasty fundamentals for the Eurozone. But 0:17:03.560 --> 0:17:07.240 that that combination of nasty fundamentals does seem a little 0:17:07.240 --> 0:17:09.600 bit more realistic now. And again this comes back to 0:17:09.680 --> 0:17:13.119 this energy security issue. A couple of months ago that 0:17:13.160 --> 0:17:15.480 the market knew that this was a risk, but it 0:17:15.560 --> 0:17:18.639 wasn't so focused on it. And and now it seems 0:17:18.960 --> 0:17:21.720 there's a lot of pressure, of course on Germany to 0:17:21.720 --> 0:17:24.760 to sign up for this embargo against Russian or we 0:17:24.800 --> 0:17:27.800 all understand the reasons why. But nearly we know that 0:17:27.840 --> 0:17:32.359 this will be very painful for Germany's large and industrialized economy, 0:17:32.400 --> 0:17:36.919 and and that does mean lower growth possibility and therefore 0:17:36.880 --> 0:17:40.080 a week of Europe potentially. If we do see a 0:17:40.119 --> 0:17:43.399 stronger dollar for longer, what does that mean for the Fed? 0:17:43.800 --> 0:17:46.960 Does that have an impact on financial conditions that could 0:17:47.040 --> 0:17:52.040 affect the Fed's policy path going forward? Well, it fits 0:17:52.119 --> 0:17:54.560 in quite nicely with the Fed's policy path. And now 0:17:54.560 --> 0:17:56.800 if we go back a couple of years, when everybody 0:17:56.960 --> 0:17:59.920 was in a weak inflationary backtop, we were then talk 0:18:00.160 --> 0:18:03.199 about the the race to the bottom. Everybody wanted a 0:18:03.240 --> 0:18:05.320 weak exchange rate, and that was the case when you 0:18:05.359 --> 0:18:07.720 want when you have weak when you have soft inflation. 0:18:08.240 --> 0:18:10.560 Now the coin has flipped when an environment where it 0:18:10.600 --> 0:18:12.920 is a strong inflation and of course see the opposite 0:18:13.000 --> 0:18:16.960 is true. A stronger currency will help you with your 0:18:17.400 --> 0:18:21.640 imported prices. So if commodities or other imports go I comprice, 0:18:21.680 --> 0:18:24.600 if you've got a strong currency, it helps negate some 0:18:24.760 --> 0:18:28.399 of those price increases. And so now people want a 0:18:28.480 --> 0:18:32.280 stronger currency. The higher interest rates of a course conducive 0:18:32.359 --> 0:18:37.359 to a stronger currency. And again we have this interstructor 0:18:37.400 --> 0:18:40.879 frencial pulling towards the dollar. At the same time, we 0:18:40.920 --> 0:18:45.440 have higher interest rates pushing against economies that, for instance, 0:18:45.440 --> 0:18:49.080 have emerging market economies that have a high level of 0:18:49.119 --> 0:18:52.560 dollar denominated debts, and when emerging markets are out of favor, 0:18:52.960 --> 0:18:57.000 we generally see that the dollar doing well about thirty seconds, Jane, 0:18:57.040 --> 0:19:00.840 do you see a dollar strengthening as a recession risk indicator? 0:19:02.440 --> 0:19:04.919 Quite possibly, and again it would be very concur in 0:19:04.920 --> 0:19:06.920 the US. There is a possibility for a session in 0:19:06.960 --> 0:19:08.879 the US in the second half of next year that 0:19:08.920 --> 0:19:12.320 certainly we see that, but for now the safe haven 0:19:12.359 --> 0:19:17.120 element of dollar demand could certainly outweigh that for the US. 0:19:17.480 --> 0:19:19.600 Thank you as always, Jane, great having you back on 0:19:19.640 --> 0:19:23.600 with us. Jane Foley, head of FX Strategy at Robbo Bank. 0:19:23.800 --> 0:19:27.159 And just looking at the Bloomberg Dollar Spot Index on 0:19:27.240 --> 0:19:30.880 this session, it is higher by four tenths of one percent. 0:19:31.400 --> 0:19:34.959 Futures moving sharply lower now with SMP future is now 0:19:35.040 --> 0:19:38.280 down sixty seven points, the decline of one point six percent. 0:19:38.400 --> 0:19:41.320 Down futures down forty four that's a drop of one 0:19:41.359 --> 0:19:44.320 point four percent, and NASTAC futures are lower by two percent, 0:19:44.400 --> 0:19:48.000 now down two hundred fifty points, and the tenure Treasury 0:19:48.080 --> 0:19:51.080 is down sixteen thirty seconds with a yield three point 0:19:51.160 --> 0:19:54.760 one nine percent. Just ahead. More on the global stock 0:19:54.880 --> 0:19:58.600 slide and Vladimir Putin justifies war in Ukraine on Russia's 0:19:58.720 --> 0:20:01.280 victory day. Five things you need to notice start your day. 0:20:01.640 --> 0:20:08.240 Coming up on Bloomberg day Break Bloomberg eleven three oh 0:20:08.280 --> 0:20:10.360 weather partly the mostly sunny, breezy with a high near 0:20:10.400 --> 0:20:12.920 sixty five today, sunshine in a breeze tomorrow with a 0:20:13.000 --> 0:20:15.960 high near seventy. We'll keep it sunny with a high 0:20:15.960 --> 0:20:18.920 near seventy on Wednesday. Right now forty seven in Central Park. 0:20:22.080 --> 0:20:26.640 Broadcasting live from the Bloomberg Interactive Broker Studio in New York. 0:20:26.760 --> 0:20:31.400 Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, 0:20:31.520 --> 0:20:34.920 Bloomberg one O six one does San Francisco, Bloomberg nine 0:20:35.000 --> 0:20:37.840 sixty to the country, Sirius XM to the one nine 0:20:38.200 --> 0:20:41.359 and around the globe the Bloomberg Business app in Bloomberg 0:20:41.440 --> 0:20:50.879 Radio dot com. This is Bloomberg Daybreak six thirty on 0:20:50.880 --> 0:20:53.920 Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow. 0:20:54.000 --> 0:20:56.240 We're just about three hours away from the open of 0:20:56.359 --> 0:20:58.639 US trading time for the five things you need to 0:20:58.680 --> 0:21:03.000 Notice start your day to you by Interactive Brokers. Interactive 0:21:03.040 --> 0:21:06.040 Brokers charges margin loan rates from zero point eight three 0:21:06.080 --> 0:21:09.119 percent to one point three percent rate centject to change. 0:21:09.200 --> 0:21:12.879 Learn more at ib k R dot com slash compare First. 0:21:12.880 --> 0:21:15.200 Stocks are down as the dollar trades at a two 0:21:15.280 --> 0:21:17.040 year high to begin the week. The S and P 0:21:17.240 --> 0:21:20.280 has dropped for five a straight weeks, and global stocks 0:21:20.359 --> 0:21:23.760 continue their downward trend. It's all comes as rising interest 0:21:23.840 --> 0:21:27.480 rates in China's COVID to lockdowns pressure markets. Katrina L, 0:21:27.600 --> 0:21:32.119 senior economists with Moody's Analytics, says lockdowns are significantly impacting 0:21:32.119 --> 0:21:35.840 exports from China and economies across the globe. It is 0:21:35.880 --> 0:21:40.240 disrupting the pots, it is disrupting manufacturing it and more broadly, 0:21:40.280 --> 0:21:44.800 it's really hurting China's economic recovery because consumers and businesses, 0:21:45.359 --> 0:21:48.160 you know, a force basically back into hibernation, and that's 0:21:48.160 --> 0:21:51.040 in stock contrast to the rest of the world. Moody's 0:21:51.040 --> 0:21:55.159 Analytics senior economist Katrina L says economic prospects for China 0:21:55.200 --> 0:21:58.479 are dim due to lockdowns. Quick programming out Karen will 0:21:58.520 --> 0:22:00.840 speak live this morning with it n A FED President 0:22:00.920 --> 0:22:03.719 Raphael Bostick about the economy. So please join us at 0:22:03.760 --> 0:22:05.960 eight am all Street time for that on both Bloomberg 0:22:06.040 --> 0:22:08.560 Radio and television. Well at turning to Russia now, Nathan, 0:22:08.560 --> 0:22:12.000 where President Vladimir Putin is attempting to justify his invasion 0:22:12.040 --> 0:22:14.960 of Ukraine. He spoke of the country's annual victory de 0:22:15.080 --> 0:22:20.879