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Speaker 1: Live from the Bloomberg Interactive Burger Studios. This is Bloomberg

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Speaker 1: Daybreak for Wednesday two. Coming up this hour, President Biden

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Speaker 1: reacts to another deadly school shooting. We will murd for again.

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Speaker 1: We can do so much more. We have to do more.

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Speaker 1: Plus candidates backed by Donald Trump loose and win primaries

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Speaker 1: in Georgia, and the FED releases minutes from its May

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Speaker 1: policy meeting. The n y p D says there has

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Speaker 1: been an arrest in a deadly subway shooting. Plus the

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Speaker 1: second ship in the baby formula from overseas arrives in

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Speaker 1: the US today. I'm Michael Blar More ahead, I'm Scott Sevomberg.

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Speaker 1: The Rangers even up their playoff series. The Yankee staff

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Speaker 1: they're losing shriek and the Mets lose a wild one

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Speaker 1: out West. I'll have that more coming up in sports.

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Speaker 1: That's all's training ahead on Bloomberg Daybreak on Bloomberg eleven,

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Speaker 1: Free on New York, Bloomberg one, Washington, d C, Bloomberg

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Speaker 1: one oh six one, Boston, Bloomberg nine sixties and Francisco

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Speaker 1: Sirius XAM one nineteen and around the world Old on

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Speaker 1: Bloomberg Radio dot Com and via the Bloomberg Business App.

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Speaker 1: And good morning. I'm Karen Moscow and I'm John Tucker.

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Speaker 1: Bloomberg Daybreak being brought to you by Informatica. In the cloud,

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Speaker 1: your data has the power to do the extraordinary. Managed

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Speaker 1: data across any location of the clown for accurate and

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Speaker 1: actionable insights. More at Informatica dot com and US futures

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Speaker 1: are little change this morning, five oh one on Wall Street,

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Speaker 1: and we checked the markets every fifteen minutes throughout the

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Speaker 1: trading day on Bloomberg Guess and P futures are again

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Speaker 1: little change. Down futures down thirty four and nasday futures

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Speaker 1: are up eleven. The decks in Germany is up almost

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Speaker 1: two tents of a percent. Pen your treasury up to

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Speaker 1: thirty seconds your two point seven four percent, John, Karen.

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Speaker 1: We're gonna have more on the markets in a minute,

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Speaker 1: but first, the latest on the deadliest shooting at a

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Speaker 1: US grade school since Sandy Hook Elementary in Connecticut. At

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Speaker 1: least nineteen children and two adults were killed by an

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Speaker 1: eighteen year old gunman at its Texas elementary school. The

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Speaker 1: shooting is drawn emotional and angry reaction from President Biden

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Speaker 1: Bloomberg's at Baxter has more Biden tapping into the anguish

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Speaker 1: to lose a child. It's like having a piece of

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Speaker 1: you soul and pivoting quickly to gun control. As a nation,

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Speaker 1: we have to ask when in God's name are we're

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Speaker 1: going to stand up to the gun mommy and answers.

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Speaker 1: When we passed his sault weapons ban, mass shootings went down.

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Speaker 1: When the law expired, mass shootings triple, the President saying

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Speaker 1: it's time for Congress to move back. In San Francisco,

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Speaker 1: I'm at Baxter Bloomberg Day Break, thanks said, in the

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Speaker 1: interests of transparency, we should known. Michael Bloomberg, the founder

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Speaker 1: majority owner Bloomberguilt, the parents of Bloomberg Radio, is a

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Speaker 1: donor to groups that support gun control. John The Texas

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Speaker 1: shooting took place just ten days after a gun end

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Speaker 1: up in fire at a Buffalo supermarket in a racist attack.

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Speaker 1: Anger overflowed among Americans who have long demanded legislation to

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Speaker 1: prevent gun violence, and Bloomberg Politics A contributor, Genie she

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Speaker 1: and Zano discussed the issue with Bloomberg's Joe Matthew. It's

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Speaker 1: never too early to start talking solutions, because this is

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Speaker 1: not again an isolated incident. This change of politics good backfire,

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Speaker 1: It can backfire, but you know what that should be

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Speaker 1: nobody's concern, and particularly this president's. This is going on

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Speaker 1: and on. It has to be addressed. The problem is

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Speaker 1: can you move anything like this through the US Congress today?

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Speaker 1: And sadly, the answer is no. Bloomberg Politics contributor Jeanie

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Speaker 1: she han Zano speaking with Joe Matthew on Bloomberg Sound On.

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Speaker 1: Catch the program weekdays at five pm Eastern on Bloomberg Radio.

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Speaker 1: And another major story we're following this morning to keep

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Speaker 1: primary races across the country well, starting to Georgia, where

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Speaker 1: Candida is backed by President Donald Trump, had both won

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Speaker 1: and lost. Amy Morris has details from our Bloomberg News

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Speaker 1: room in Washington. Georgia Governor Brian Camp and Secretary of

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Speaker 1: State Brad Ravensburger, both targets of former President Donald Trump,

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Speaker 1: both won their primaries. Camp beat David Purdue with seventy

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Speaker 1: three point seven percent of the vote, and we'll face

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Speaker 1: off against Democrats Stacy Abrams, who ran unopposed. Ravensburger beat

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Speaker 1: Jodie Hives with fifty two point two percent of the vote.

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Speaker 1: Former football great Herschel Walker, who was also backed by Trump,

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Speaker 1: won the GOP Senate primary with sixty eight point three

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Speaker 1: percent of the vote, and he'll face Democrat incumbent Raphael Warnock,

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Speaker 1: who won with nearly nineties six percent of the vote.

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Speaker 1: Marjorie Taylor Green one her GOP House primary with sixty

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Speaker 1: nine point five percent of the vote in Washington. I'm

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Speaker 1: Amy Morris, Bloomberg Daybreak, Right, Amy, thank you. Let's continue

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Speaker 1: our team coverage of those primary races now with a

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Speaker 1: look at some other results, and Bloomberg's Rnedy Young joins

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Speaker 1: US Live with more. Good morning, Rinda, Good morning Karen.

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Speaker 1: The Republican Senate primary heads into a runoff in Alabama

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Speaker 1: with Katie Britt and U S Representative Moe Brooks. Britt

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Speaker 1: garnered forty percent of the vote to nine percent for Brooks.

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Speaker 1: Former White House Press Secretary Sarah Saunders wins the GOP

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Speaker 1: nomination for governor in Arkansas with eighty three percent of

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Speaker 1: the vote, and Texas Attorney General Kin pas Exton wins

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Speaker 1: the GOP nomination for re election with nearly sixty eight

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Speaker 1: percent of the vote. He was up against a member

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Speaker 1: of the Bush political Dynasty, beating George P. Bush in

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Speaker 1: the contest. Paxton is still under indictment for securities fraud

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Speaker 1: and an FBI investigation. Live in New York, I'm gonna

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Speaker 1: need a young Bloomberg day break, thanks for the attorney

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Speaker 1: to markets US futures Right now, they are mixed following

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Speaker 1: the late day rally on Wall Street, which saw the

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Speaker 1: Dow close higher as well as the SMP five Paris losses.

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Speaker 1: FED policy continues to dominate market moves. Today. We're gonna

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Speaker 1: get more clues on how high interest rates may go

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Speaker 1: and how fast the FED releases minutes from his policy

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Speaker 1: meeting two pm Wall Street time. Let's get a preview

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Speaker 1: from Bloombergs Mike McKee and unusually open. FED has all

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Speaker 1: but promised two consecutive half percentage point rate increases in

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Speaker 1: June and July. What they haven't publicly agreed on is

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Speaker 1: what happens after that. That's why investors in analysts will

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Speaker 1: be parsing the minutes of their main meeting for clues

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Speaker 1: to how far i FED officials think they need to

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Speaker 1: go and how quickly something else to look for a

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Speaker 1: move away from discussing the concept of a neutral rate

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Speaker 1: target in favor of following financial conditions, which have tightened

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Speaker 1: significantly the past two months. If that continues, they may

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Speaker 1: not have to raise rates as much. Michael McKee, Bloomberg Daybreak,

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Speaker 1: All right, Mike, thank you well. The highly anticipated Twitter

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Speaker 1: shareholder meeting also takes place today, and we get a

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Speaker 1: preview from Bloomberg's Tom Busby. Well, you can expect a

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Speaker 1: tumultuous meeting today, and it's all about money. Forty four

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Speaker 1: billion dollars. Twitter's board says Elon Musk's forty four billion

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Speaker 1: dollar agreement to buy the site is a done deal.

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Speaker 1: There's no negotiating on the sale price, and it's urging

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Speaker 1: its shareholders to approve the deal. But Musk is balking,

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Speaker 1: saying he'll only move forward if the company is transparent

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Speaker 1: about all the fake bots and spam accounts on the platform.

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Speaker 1: Many think that Musk either has cold feet about the

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Speaker 1: agreement or is merely angling for a sharply lower price.

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Speaker 1: Tom Busby, Bloomberg Daybreak, Thanks Tom. We maybe just a

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Speaker 1: day away from a major deal in Attack, where all

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Speaker 1: Bloomberg News has learned that Broadcom is working towards announcement

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Speaker 1: of an acquisition of VM where tomorrow the stock and

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Speaker 1: cash deal would value the cloud computing company at one

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Speaker 1: dollars this year caused much lower than that yesterday, nearly

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Speaker 1: one hundred sixteen dollars this year. This is Bloomberg Andy.

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Speaker 1: It is now five seven the Odd Wall Street and

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Speaker 1: that's time to bringing Michael Barr with more on what

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Speaker 1: else is going on to New York and around the world. Joanna,

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Speaker 1: thank you very much. Sarah Man, suspected of abruptly pulling

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Speaker 1: a gun and killing a stranger on a New York

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Speaker 1: City subway train, has been arrested. Police say they don't

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Speaker 1: yet know what motivated the apparently unprovoked attack. Andrew Abdulla

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Speaker 1: was taken into custody hours after authorities posted his name

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Speaker 1: and photo on social media and implored the public to

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Speaker 1: help find him. New York Mayor Eric Adams the fact

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Speaker 1: is he is the posted child of many people who

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Speaker 1: believe they can create violence without any repercussion at all.

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Speaker 1: Mayor Adams says the twenty five year old is expected

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Speaker 1: to face a murder charge in the death of forty

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Speaker 1: eight year old Daniel Enriquez. Enriquez was shot to death

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Speaker 1: while heading to brunch Sunday morning. Earlier, Mayor Adams commented

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Speaker 1: on a report from the National Oceanic and Atmospheric Administration

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Speaker 1: NOAH released their predictions for the Atlantic Hurricane Season Outlook,

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Speaker 1: predicting an above normal storm season for a seventh year

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Speaker 1: in a row and up to six major hurricanes impacting

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Speaker 1: the country. Adam says it's essential for New Yorkers to

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Speaker 1: understand their risks and evacuation plans before these kinds of

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Speaker 1: weather events drunk coastal storms, hurricanes and floods. UH preparation

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Speaker 1: is everything, and today this announcement is allowing all of

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Speaker 1: our agencies and New Yorkers to be prepared. Mayor Adams

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Speaker 1: reflected on Hurricane Ida, which killed more than a dozen

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Speaker 1: New Yorkers last fall. With flash floods, l I, Double

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Speaker 1: R and Metro North train ridership is down from pre

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Speaker 1: pandemic levels. In the estimated number of passengers average three

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Speaker 1: D twenty seven thousand per day for the work week

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Speaker 1: ending May. The good news is that ridership is up

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Speaker 1: two point from the previous week. First Lady Jill Biden

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Speaker 1: and Surgeon General Dr vi Vic Murphy will greet the

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Speaker 1: arrival of the second shipment of baby formula through Operation

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Speaker 1: Fly Formula FedEx plane traveling from Germany packed with formula

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Speaker 1: lands today at Dulles Airport outside Washington. The first shipment

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Speaker 1: of specialized formula from Europe arrived Sunday. South Korea says

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Speaker 1: it appears North Korea has test launched and intercontinental ballistic missile.

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Speaker 1: The South says the North also tested two other missiles.

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Speaker 1: Global News twenty four hours a day on air and

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Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred

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Speaker 1: journalists and analysts in more than a hundred twenty countries.

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Speaker 1: I'm Michael bar this Bloomberg. John, Michael, thank you. It's

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Speaker 1: now fine s down on Wall Street. That's time for

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Speaker 1: the Blueberg Sports Update. You're Scott Sidenberg. Good morning, John.

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Speaker 1: The Rangers beat the Hurricanes for once even up their

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Speaker 1: playoff series at two games apiece Frank for trying to

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Speaker 1: open up the scoring on the power play, Adam Fox

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Speaker 1: because a bettage ad and Andrew Copp also scored, while

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Speaker 1: Igor Shisterkin made thirty saves. Here was Gerard Glant competed

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Speaker 1: heard the first payer was about it the best payod

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Speaker 1: of hockey ice statum this year from Bote, not just us.

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Speaker 1: It was death back and forth. It was I thought

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Speaker 1: it could have been forward to that thought last after

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Speaker 1: the first payod goal Davy elsewhere. The Oilers took a

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Speaker 1: three one series lead over the Flames with a five

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Speaker 1: three win. NBA Playoffs last night, the Mavericks avoid elimination,

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Speaker 1: beating the Warriors one nineteen one On nine. Tonight, Eastern

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Speaker 1: Conference Finals Game five, the Heat and Celtics tied at

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Speaker 1: two games apiece. Pose Trevino with a big knight for

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Speaker 1: the Yankees, the solo homer in the third, a game

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Speaker 1: time single in the seven, in the walk off winner

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Speaker 1: in the bottom of the eleven, as the Yankee snapped

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Speaker 1: their season high three game losing streak beating the Orioles

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Speaker 1: seven six. The Mets and Giants playing a back and

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Speaker 1: forth game last night in San Francisco, the Mets scoring

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Speaker 1: ten runs in the seventh, eighth, and ninth innings combined,

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Speaker 1: they erase a six run deficit, but would lose in

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Speaker 1: the bottom of the ninth and when Daz allowing four hits,

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Speaker 1: including the walkoff single to Brandon crawwelve. The final tennis

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Speaker 1: at the French Open, Joe Wilfred Sanga's career comes to

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Speaker 1: an end. He loses in the first round and retires

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Speaker 1: at the age of thirty seven with eighteen career titles. Elsewhere,

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Speaker 1: Americans Madison Keys and Jessica Pegoula advanced on the women's side.

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Speaker 1: I'm Scott Sedinberg with Bloomberg Sports. John alright, thanks Scott,

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Speaker 1: and right now, futures unchanged. The dansdeck features anyway, the

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Speaker 1: SMB futures just four points lower right now, and the

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Speaker 1: DOWN futures down fifty two points. So the benchmark ten

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Speaker 1: year yield in the US two seventy three that is

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Speaker 1: found one basis point. You're listening to Bloomberg day Break

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Speaker 1: and just ahead on Bloomberg Daybreak, another match shooting, also

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Speaker 1: the midterm elections that will be the focus this morning.

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Speaker 1: When we speak to Terry Haines of Pangea Policy. That's

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Speaker 1: straight ahead markets, headlines and breaking news twenty four hours

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Speaker 1: a day at Bloomberg dot Com, the Bloomberg Business and

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Speaker 1: at Bloomberg Quick Take. He's a Bloomberg Business lash and

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Speaker 1: I'm Karon Moscow. All stocks in Europe are higher. US

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Speaker 1: Dock Index futures have turned lower as markets assess the

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Speaker 1: outlook for Federal Reserve monetary tightening. The dollar is pushing higher,

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Speaker 1: and we check the markets every fifteen minutes throughout the

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Speaker 1: trading day. On bloomberg S and P futures are down

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Speaker 1: eight points now futures down seventy four, nastday futures down

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Speaker 1: twenty eight. The decks in Germany is down a tenth

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Speaker 1: of our percent. Year treasury at four thirty seconds, he'll

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Speaker 1: two point seven three percent. The yield on the two

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Speaker 1: year two point four nine percent. Nimex screwed oil is

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Speaker 1: up one percent or at a dollar eight a hundred

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Speaker 1: ten dollars eighty six cents, and barrel comex gold is

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Speaker 1: down half percent or eight dollars seventy cents at eighteen

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Speaker 1: sixty two seventy announced. The euro one point six six

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Speaker 1: five against the dollar, British found one point to five

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Speaker 1: oh seven, the en at one seven point oh six,

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Speaker 1: and Bitcoin this morning it's up nine ten percent at

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Speaker 1: twenty nine thousand, seven hundred dollars. Today we are watching

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Speaker 1: for a report on durable goods orders out a day

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Speaker 1: thirty Wall Street time and at two week at the

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Speaker 1: minutes from the Federal Reserve's most recent meeting. That's a

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Speaker 1: Bloomberg business Flash. Now here's Michael Barr with more on

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Speaker 1: what's going on around the world. Michael, good morning, Good morning, Karen.

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Speaker 1: An eighteen year old gunman opened fire at a Uvalde,

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Speaker 1: Texas elementary school, killing at least nineteen children and two

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Speaker 1: adults before he was killed by law enforcement. Later of

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Speaker 1: visibly a great President Biden addressed the nation renewing his

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Speaker 1: call for the reform of gun laws. We passed his

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Speaker 1: swallow upon span mass shootings went down when the law expired.

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Speaker 1: Mass shooting Triple president by Georgia Governor Brian Kemp has

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Speaker 1: easily beat Donald Trump's handpick challenger and a Republican primary,

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Speaker 1: former Senator David Purdue. Kemp got seventy eight percent perdue received.

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Speaker 1: Kemp will face Democrats Stacy Abrams in the fall. Georgia

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Speaker 1: Secretary of State Brad Rapinsberger has won the Republican primary

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Speaker 1: and a bid to keep his job. He defeated three challengers,

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Speaker 1: including US Representative Jody Heist, who was endorsed by Trump.

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Speaker 1: NHL playoff the Rangers beat the Hurricanes. Baseball, the Yankees

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Speaker 1: beat the Orioles. The Mets lost to the Giants Red

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Speaker 1: Sox and has won the Nationals lost NBA playoffs. The

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Speaker 1: Mavericks stay alive as they beat the Warriors. After the game,

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Speaker 1: an emotional Warriors head coach Steve Kerr talked about the

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Speaker 1: elementary school shooting in Texas. When are we gonna do something?

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Speaker 1: Kerr his father was fatally shot nearly four decades ago.

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Speaker 1: Global News twenty four hours a day on air and

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Speaker 1: on Bloomberg Quick Take power by more than journalists analysts

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Speaker 1: in more than twenty countries. On Michael bar This is Bloomberg,

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Speaker 1: John Michael five twenty On Well Story. We're live from

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Speaker 1: the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak. Another

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Speaker 1: mass shooting in the midterm elections the focus for us

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Speaker 1: this morning. We're joined now by Terry Hayes, founder of

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Speaker 1: Pangia Policy. Terry, always a pleasure, Thanks for being here.

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Speaker 1: Republicans as I, as far as I can tell, Terry

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Speaker 1: have suffered no electoral consequences for their opposition to even

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Speaker 1: modest restrictions on civilian weaponry. Um, what if anything is next?

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Speaker 1: Good morning, John, and thanks? Uh what's next? I think, unfortunately,

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Speaker 1: is the same kind of mishmash. We've been a political

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Speaker 1: mishmash we've been seeing since Dandy Hook. Uh. You know,

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Speaker 1: there are this is a classic example of of parties

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Speaker 1: where the purest position tends to take over or and

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Speaker 1: there's very little room for for common sense, uh, incremental

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Speaker 1: improvements in the middle. And there's not a lot of

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Speaker 1: leadership in either party. You know, as far back as

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Speaker 1: in the aftermath as Andy Hook. Uh, there there was

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Speaker 1: an attempt bipartisan attempt by senators to me Republican mansion

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Speaker 1: democrat uh on on background checks, to really really tighten

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Speaker 1: all that up. And what you ended up with was

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Speaker 1: with a sixty vote threshold needed, you ended up with

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Speaker 1: a vote where four Republicans crossed the line for a yes,

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Speaker 1: five or five Democrats crossed the line on no. And uh,

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Speaker 1: you know what's going to have to happen is there's

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Speaker 1: going to have to be some leadership. Uh. Frankly, I

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Speaker 1: think that that ought to start at the top. What

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Speaker 1: you you know, for all of the president's uh grief

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Speaker 1: and obviously sincere emotion about this, what you didn't hear

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Speaker 1: yesterday was a al must to lead on this. And

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Speaker 1: you know, I think that uh uh that the leadership

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Speaker 1: is certainly necessary on a bipartisan basis number one. And secondly,

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Speaker 1: from a cold political calculation, Uh, I frankly think that

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Speaker 1: would be a winner. On the President's part. President has favorability. Uh,

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Speaker 1: there's you know, he's not going to get a single

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Speaker 1: vote from somebody who's a Second Amendment absolutist anyway, but

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Speaker 1: you know, the broad middle of the country or is

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Speaker 1: crying out for action and uh, and how to step up. Frankly,

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Speaker 1: the Obama people did not step up before and uh,

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Speaker 1: the president has the opportunity to do so. Now does

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Speaker 1: it make a difference come midterm elections? I think really,

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Speaker 1: you know, I think really not. Um people have this.

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Speaker 1: I think you your observation is correct. People have this

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Speaker 1: largely baked into their their concerns about it. And and

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Speaker 1: you know, frankly, there's a lot of there's there's a

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Speaker 1: lot of pointing in every other direction. Democrats blaming Republicans,

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Speaker 1: Republicans blaming democrats, Uh, politicians blaming lobbyists. You know, And

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Speaker 1: to me, that's always a tell. When you're blaming lobbyists,

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Speaker 1: uh for for failure to act, you're deflecting. No matter

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Speaker 1: who you are and or what the issue is and uh,

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Speaker 1: you know, and clearly somebody needs to to to break

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Speaker 1: out of this, uh, this cycle in order to make

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Speaker 1: some progress. Here's another response, um option volume for shares

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Speaker 1: of Smith and Wesson. Yesterday after this they surged the

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Speaker 1: shares were up over one percent. I mean, I'll spare

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Speaker 1: you the adjectives, but that's where we're at. Yeah, it's uh,

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Speaker 1: you know, I heard of a statistic recently and I'm

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Speaker 1: not going to claim this is this is accurate, but

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Speaker 1: but you know, over the last year, gun purchases have

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Speaker 1: been up a great deal and uh, you know, there

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Speaker 1: has been a sense certainly since uh certainly since and

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Speaker 1: the summer of two years ago where uh, you know,

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Speaker 1: people who get much more active about gun purchases because

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Speaker 1: they fear for their personal security for all kinds of reasons.

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Speaker 1: And uh, you know, regardless of what happened yesterday and

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Speaker 1: not minimizing it, quite the opposite. But you know that

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Speaker 1: that's that's a much bigger problem. UM complicating things, I

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Speaker 1: would imagine with the Supreme Court's current term, they're taking

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Speaker 1: up at this point local gun laws, for example, those

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Speaker 1: that are in New York. There's a real possibility those

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Speaker 1: will be scaled back tremendously. That is a possibility. Yeah,

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Speaker 1: uh it uh, you know, it runs up the you know,

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Speaker 1: the local attempts, local and state attempts UH to push

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Speaker 1: the envelope on issues UH these days is a feature

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Speaker 1: of h is a feature of the federal state relationship

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Speaker 1: and the desire of folks to uh to want to

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Speaker 1: establish positions and uh, you know, guns are no different

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Speaker 1: than uh, you know, than the road debate or you know,

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Speaker 1: a bunch of other things in that regard. I mean

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Speaker 1: you see legislatures and UH and local authorities trying to

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Speaker 1: Karen all right, John, thank you, and good morning. It

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Speaker 1: is five thirty on Wall Street. I'm Karen Moscow along

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Speaker 1: with the John Tucker, and we're just about four hours

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Speaker 1: away from the open of US trading. Let's get you

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Speaker 1: up to date on the news you need to know

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Speaker 1: at this hour. Beginning in Texas, have we've been discussing

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Speaker 1: at least nineteen children and two adults were killed by

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Speaker 1: an eighteen year old gunmen at rang the elementary school.

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Speaker 1: President Biden addressed the nation last night, expressing condolences and

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Speaker 1: quickly pivoting to gun legislation where in God's name is

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Speaker 1: our backbone to the courage to do with the stand

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Speaker 1: up to the lobbies. It's time to turn this pain

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Speaker 1: into action. President Biden, addressing the nation after the elementary

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Speaker 1: school shooting and Texas. We should note Michael Bloomberg, the

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Speaker 1: founder and majority owner of Bloomberg LP, the parent of

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Speaker 1: Bloomberg Radio, is a donor to groups that support gun control,

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Speaker 1: including Every Town for Gun Safety. And on the other

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Speaker 1: major story we're following this morning, keep primary races across

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Speaker 1: the country. As we spoke to Terry Haynes about this

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Speaker 1: just a moment ago in Georgia to Canadada, is backed

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Speaker 1: by Donald Trump have lost another one. Bloomberg's Rnita Young

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Speaker 1: joins US Live with more details. Rath in a Good morning, Ton,

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Speaker 1: Good morning Georgia. Governor Brian Kemp and Secretary of State

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Speaker 1: Brad Raefensburger, both targets of former President Trump, both won

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Speaker 1: their primaries. Count beat David Purdue with seventy three point

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Speaker 1: seven percent of the vote. He'll face Democrats Stacy Abrams,

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Speaker 1: who ran unopposed. Raffensburger beat Jodie Heist with fifty two

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Speaker 1: point two percent of the vote. In former football great

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Speaker 1: Herschel Walker, also backed by Trump, won the GOP Senate

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Speaker 1: primary with sixty eight point three percent of the vote.

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Speaker 1: He'll face Democrat and come to a. Raphael Warnock, who

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Speaker 1: secured nearly nineties six percent of the vote, and Marjorie

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Speaker 1: Taylor Green one her GOP House primary with sixty nine

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Speaker 1: point five percent of the vote. Live from New York,

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Speaker 1: I'm gonna need a young Bloomberg day break, all right,

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Speaker 1: we need to thank you well. Elsewhere, the Alabama Republican

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Speaker 1: Senate primary heads into a run off with Katie Britt

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Speaker 1: and US Representative Moe Brooks. Britt garner percent of the

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Speaker 1: vote to Brooks twenty nine percent. Former White House Press

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Speaker 1: Secretary Sarah Sanders won the GOP nomination for governor in

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Speaker 1: Arkansas with eighty three percent of the vote, and Texas

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Speaker 1: Attorney General Ken Paxton took the GOP nomination for re

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Speaker 1: election with nearly sixty eight percent of the vote against

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Speaker 1: George P. Bush And Journey to the market's futures lower

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Speaker 1: this morning following me a late day rally on Wall

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Speaker 1: Street yesterday. Just ahead, we'll get minutes from the FEDS

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Speaker 1: latest meeting that is due to PM Wall Street time

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Speaker 1: and the potential big deal in tech. John Bloomberg News

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Speaker 1: has learned that Broadcom is working towards announcing its acquisition

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Speaker 1: of vm Ware tomorrow. The deal would value of the

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Speaker 1: cloud computing company at onety a share. SMP futures are

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Speaker 1: down four points this morning. Down futures down forty one

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Speaker 1: NASTAGG futures down to twelve ten year treasury up four

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Speaker 1: thirty seconds the two point seven three per cent, and

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Speaker 1: they yield on the two year two point four and

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Speaker 1: nine percent. Nine X Screwed oil is up one and

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Speaker 1: a half percent of a dollar sixty six at a

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Speaker 1: hundred eleven dollars forty one cents of barrel and comex

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Speaker 1: school there is down four ten percent or seven dollars

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Speaker 1: eighty cents at eighteen sixty three sixty announced straight to hand,

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Speaker 1: your latest local headlines plus a check of sports, and

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Speaker 1: this is Bloomberg all right, Thanks Karen thirty three on

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Speaker 1: Wall Street and time to bring in Michael Barr with

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Speaker 1: more on what else is going on to New York

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Speaker 1: and around the world. John, thank you very much, sir.

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Speaker 1: The n y p D says there is an arrest

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Speaker 1: from Sunday's fatal, unprovoked subway shooting that left one man dead.

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Speaker 1: Thirty year old Andrew of Della of Brooklyn turned himself

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Speaker 1: into belize A. Della has more than one he prior

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Speaker 1: arrests on his record, including an outstanding weapons charge from

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Speaker 1: last year and previous charges of assault, robbery, menacing, and

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Speaker 1: grand larsening. New York Mayor Eric Adams says of Dullah

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Speaker 1: is the posted child to show just how easy it

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Speaker 1: is for someone dangerous to get ahold of a weapon

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Speaker 1: in New York City. History of this person, any reasonable

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Speaker 1: thinking New Yorker is going to ask themselves, why is

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Speaker 1: this person still on our streets? Mayor Adam says the

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Speaker 1: city will work to improve the subway safety. More infant

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Speaker 1: formula is arriving from overseas today to ease the US shortage.

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Speaker 1: Nearly a million, eight ounce bottles worth of Nestley's Gerber

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Speaker 1: Baby formula arrives at Dula's airport. First Lady Jill Biden

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Speaker 1: will greet the plane's arrival. The federal government it's being

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Speaker 1: criticized by how it has handled the shortage of formula.

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Speaker 1: Health and Human Services Secretary how do your serra? Says

427
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Speaker 1: the FDA's authority is limited if they're not policing themselves,

428
00:25:00,000 --> 00:25:01,359
Speaker 1: and then we have to do more to make sure

429
00:25:01,720 --> 00:25:04,159
Speaker 1: we are doing the right painful apparance. We need that

430
00:25:04,240 --> 00:25:08,159
Speaker 1: supply Secretary Basra as the formula shipment then heads to

431
00:25:08,320 --> 00:25:12,160
Speaker 1: a Pennsylvania distribution center. South Korea says North Korea test

432
00:25:12,240 --> 00:25:15,680
Speaker 1: launched a series of ballistic missiles this morning, including a

433
00:25:15,760 --> 00:25:19,720
Speaker 1: presumed intercontinental ballistic missile and at least one short range missile.

434
00:25:20,040 --> 00:25:22,720
Speaker 1: South Korea says that it is in violation of you

435
00:25:22,840 --> 00:25:26,960
Speaker 1: and Security Council resolutions and as serious provocation that threatens

436
00:25:27,000 --> 00:25:30,600
Speaker 1: peace on the Korean Peninsula and the international community. The

437
00:25:30,640 --> 00:25:35,280
Speaker 1: World Health Organization has identified about eighty cases of monkeypos globally.

438
00:25:35,720 --> 00:25:38,959
Speaker 1: In the US, there are eight cases under investigation across

439
00:25:39,000 --> 00:25:42,040
Speaker 1: six states. Global News twenty four hours a day on

440
00:25:42,160 --> 00:25:45,679
Speaker 1: air and on Bloomberg Quickdake, powered by more than twenty

441
00:25:45,720 --> 00:25:48,359
Speaker 1: seven hundred journalist and analyst and more than a hundred

442
00:25:48,359 --> 00:25:51,280
Speaker 1: twenty countries. I'm Michael Barr. This is Bloomberg, John Michael,

443
00:25:51,320 --> 00:25:58,040
Speaker 1: thank you, and it's now five thirty five of Wall Street.

444
00:25:58,080 --> 00:26:01,399
Speaker 1: That's time for the Bloomberg Sports Upday. It here's Scott Sudeberg.

445
00:26:01,800 --> 00:26:05,520
Speaker 1: Thanks John. The Rangers defending home ice, beating the Hurricanes

446
00:26:05,560 --> 00:26:09,240
Speaker 1: for one to even up their series at two games apiece.

447
00:26:09,840 --> 00:26:13,520
Speaker 1: Rank Patrono, Mikas Devenna, jad Adam Fox, and Andrew copp

448
00:26:13,560 --> 00:26:17,240
Speaker 1: All scored. Igor Shasturkin made thirty saves as the home

449
00:26:17,280 --> 00:26:20,200
Speaker 1: team has won each of the first four games of

450
00:26:20,280 --> 00:26:23,520
Speaker 1: this series. Here's Gerard Gallant. I mean, really, you look

451
00:26:23,560 --> 00:26:25,280
Speaker 1: at the four games. It's not just a two at home,

452
00:26:25,320 --> 00:26:27,800
Speaker 1: but the four games have been pretty much one goal

453
00:26:27,840 --> 00:26:29,399
Speaker 1: game most of the way through it. And you know,

454
00:26:29,480 --> 00:26:32,359
Speaker 1: we'll two teams that are close in battle, and you know,

455
00:26:32,600 --> 00:26:35,160
Speaker 1: I just think it's been outstanding hockey by Bowl teams elsewhere.

456
00:26:35,240 --> 00:26:37,720
Speaker 1: The Oilers take a three one series lead over the

457
00:26:37,760 --> 00:26:42,080
Speaker 1: Flames thanks to a five three win. Baseball Jose Trevino

458
00:26:42,160 --> 00:26:45,000
Speaker 1: with a big night for the Yankees, solo homer in

459
00:26:45,040 --> 00:26:47,560
Speaker 1: the third, a game time single in the seventh, and

460
00:26:47,680 --> 00:26:49,960
Speaker 1: the walk off winner in the bottom of the eleventh

461
00:26:50,200 --> 00:26:53,520
Speaker 1: as the Yankees beat the Orioles seven six, snapping their

462
00:26:53,600 --> 00:26:57,600
Speaker 1: season high three game losing streak. The Mets, meanwhile, played

463
00:26:57,640 --> 00:27:01,399
Speaker 1: a wild game in San Francisco, rallying from eight to

464
00:27:01,760 --> 00:27:04,840
Speaker 1: down the Mets, scoring ten runs in the seventh, eighth,

465
00:27:04,880 --> 00:27:08,000
Speaker 1: and ninth combined, but they would fall in the bottom

466
00:27:08,040 --> 00:27:11,400
Speaker 1: of the ninth as Edwin Diaz allowed four hits, including

467
00:27:11,400 --> 00:27:16,639
Speaker 1: the walkoff single to Brandon Crawford. Twelve your final NBA Playoffs,

468
00:27:16,680 --> 00:27:19,880
Speaker 1: the Mavericks avoid the sweet beating the Warriors one nineteen

469
00:27:20,000 --> 00:27:23,480
Speaker 1: one oh nine. And tonight Eastern Conference Finals Game five

470
00:27:23,560 --> 00:27:26,680
Speaker 1: from Miami, the Heat and Celtics tied at two games apiece.

471
00:27:27,040 --> 00:27:30,119
Speaker 1: I'm Scott s Edinburg with Bloomberg Sports. John all Right,

472
00:27:30,160 --> 00:27:32,520
Speaker 1: Thanks Scott seven on Wall Street Time down for the

473
00:27:32,680 --> 00:27:35,160
Speaker 1: trying to say business report. For that, We're joined by

474
00:27:35,400 --> 00:27:40,080
Speaker 1: Bloomberg's ed Quarry. The US East Coast's busiest sport complex

475
00:27:40,160 --> 00:27:42,720
Speaker 1: is getting ready for a summer of delays in congestion

476
00:27:43,000 --> 00:27:46,399
Speaker 1: as container ships avoid the clogged West Coast gateways the

477
00:27:46,440 --> 00:27:49,200
Speaker 1: traffic picks up from Asia. The Board of New York

478
00:27:49,200 --> 00:27:52,200
Speaker 1: and New Jersey moved nearly eight hundred three thousand, twenty

479
00:27:52,200 --> 00:27:55,359
Speaker 1: ft equivalent units in April, the second busiest month in

480
00:27:55,400 --> 00:27:58,600
Speaker 1: the port's history. New York State's biggest mall has reached

481
00:27:58,600 --> 00:28:02,280
Speaker 1: a new low, and lends could get hurt. Destiny, USA

482
00:28:02,359 --> 00:28:05,399
Speaker 1: and Syracuse was valued at one hundred forty seven million

483
00:28:05,400 --> 00:28:08,399
Speaker 1: dollars last year according to an appraisal. That's about a

484
00:28:08,920 --> 00:28:13,240
Speaker 1: percent drop from its valuation and a nearly decline from

485
00:28:14,440 --> 00:28:17,320
Speaker 1: Gas prices hit record highs in New Jersey this month,

486
00:28:17,400 --> 00:28:21,040
Speaker 1: but not for New Jersey Transit, statewide mass transit agency

487
00:28:21,119 --> 00:28:24,880
Speaker 1: and a major fuel consumer, and J Transit executive director

488
00:28:25,000 --> 00:28:28,359
Speaker 1: Kevin Corbett says the service hedged diesel prices for the

489
00:28:28,400 --> 00:28:30,840
Speaker 1: fleet and so far, he says, they're in good shape.

490
00:28:30,880 --> 00:28:33,919
Speaker 1: That your Bloomberg Trying State Business Report, my med Cory.

491
00:28:34,040 --> 00:28:36,720
Speaker 1: All right, thanks that it's five thirty eight on Wall Street,

492
00:28:36,720 --> 00:28:39,880
Speaker 1: timed out for the tri State Business Report, and uh

493
00:28:40,160 --> 00:28:42,600
Speaker 1: time for a look at some of the stories were

494
00:28:42,600 --> 00:28:46,840
Speaker 1: following around the world right now, and let's check in

495
00:28:46,880 --> 00:28:48,480
Speaker 1: with our global news team for some of the top

496
00:28:48,520 --> 00:28:52,080
Speaker 1: stories heard on our three hundred affiliate radio stations around

497
00:28:52,160 --> 00:28:57,640
Speaker 1: the world. I'm Steve photos Kan ten ten Wins in

498
00:28:57,680 --> 00:29:00,640
Speaker 1: New York. We're talking about Fiser slashing the prices of

499
00:29:00,800 --> 00:29:04,160
Speaker 1: charges for its medications and some of the poorest countries.

500
00:29:04,800 --> 00:29:07,520
Speaker 1: I'm Lisa Matteo and I'm w BZ in Boston. I'll

501
00:29:07,560 --> 00:29:10,840
Speaker 1: be reporting on tech stocks taking up beating and early trading.

502
00:29:11,200 --> 00:29:14,400
Speaker 1: I'm Stephen carl on Bloomberg DAB Digital Radio in London.

503
00:29:14,440 --> 00:29:17,560
Speaker 1: We've been hearing from the EASE Economy Commissioner Paalo Gentiloni,

504
00:29:17,600 --> 00:29:19,520
Speaker 1: who's been telling us he's helpful of a deal in

505
00:29:19,560 --> 00:29:22,440
Speaker 1: the coming days on an EU embargo on Russian oil.

506
00:29:22,960 --> 00:29:26,440
Speaker 1: I'm Gina Servetti and for w c c O in Minneapolis,

507
00:29:26,560 --> 00:29:30,840
Speaker 1: I'm reporting that Minneapolis area residents saw their power bills

508
00:29:31,000 --> 00:29:34,640
Speaker 1: surge almost twenty seven percent last month from last year.

509
00:29:35,280 --> 00:29:38,440
Speaker 1: I'm ed Gory on w w J in Detroit. I'm

510
00:29:38,520 --> 00:29:42,719
Speaker 1: reporting Abvit Labs is reopening a Michigan baby formula plant

511
00:29:42,760 --> 00:29:46,040
Speaker 1: in June. And those are some of the stories are

512
00:29:46,080 --> 00:29:48,840
Speaker 1: twenty seven hundred Bloomberg journalists and analysts are working on

513
00:29:48,920 --> 00:29:51,720
Speaker 1: this morning around the world. It's five thirty nine on

514
00:29:51,800 --> 00:29:55,720
Speaker 1: Wall Street. The following is an editorial from Bloomberg Opinion.

515
00:29:56,040 --> 00:30:00,920
Speaker 1: This editorial was written by the Bloomberg Editorial Board. From

516
00:30:01,000 --> 00:30:04,520
Speaker 1: inflation to the war in Ukraine, the US faces an

517
00:30:04,640 --> 00:30:09,120
Speaker 1: array of crises that demand the government's full attention. Yet,

518
00:30:09,200 --> 00:30:12,600
Speaker 1: on any given day, large numbers of the two point

519
00:30:12,680 --> 00:30:17,080
Speaker 1: one million person federal workforce don't come into the office.

520
00:30:17,480 --> 00:30:21,760
Speaker 1: That's a problem. Remote work hobbles the ability of government

521
00:30:21,800 --> 00:30:26,920
Speaker 1: officials to collaborate, respond nimbly to crises, and forge consensus

522
00:30:27,000 --> 00:30:31,200
Speaker 1: on policy goals because taxpayer funds will be spent maintaining

523
00:30:31,240 --> 00:30:36,200
Speaker 1: federal buildings. Regardless, it also wastes money. Many cities and

524
00:30:36,280 --> 00:30:39,160
Speaker 1: states are far ahead of the federal government in bringing

525
00:30:39,200 --> 00:30:44,640
Speaker 1: back workers to offices. The reason is simple. Addressing today's

526
00:30:44,760 --> 00:30:49,760
Speaker 1: challenges requires all hands on deck. If local governments can

527
00:30:49,800 --> 00:30:53,680
Speaker 1: manage that, so can the federal government, and it should

528
00:30:53,920 --> 00:30:58,000
Speaker 1: without further delay. This editorial was written by the Bloomberg

529
00:30:58,200 --> 00:31:01,200
Speaker 1: Editorial Board. For more bloom Our opinion, please go to

530
00:31:01,200 --> 00:31:05,160
Speaker 1: Bloomberg dot com, slash Opinion or ope I n go

531
00:31:05,520 --> 00:31:09,400
Speaker 1: on the Bloomberg terminal. This has been Bloomberg Opinion and

532
00:31:09,480 --> 00:31:13,160
Speaker 1: Bloomberg Opinion editorials can be heard every weekday at this time.

533
00:31:13,280 --> 00:31:16,320
Speaker 1: Terminal customers can read more at opie I am go.

534
00:31:17,440 --> 00:31:23,880
Speaker 1: This is day break. The Bloomberg weather from meteorologist Rod

535
00:31:23,920 --> 00:31:26,440
Speaker 1: Caroline makes the son of clouds today. The high temperature

536
00:31:26,720 --> 00:31:29,280
Speaker 1: in the mid seventies that I partly a mostly qloudy

537
00:31:29,720 --> 00:31:38,320
Speaker 1: low temperature dipping down to the mid fifties, Markets, headlines

538
00:31:38,360 --> 00:31:41,320
Speaker 1: and breaking news twenty four hours a day at Bloomberg

539
00:31:41,400 --> 00:31:45,040
Speaker 1: dot com, the Bloomberg Business Outland at Bloomberg Quicktap. This

540
00:31:45,440 --> 00:31:54,160
Speaker 1: is a Bloomberg Business Flash and I'm Karen Moscow and

541
00:31:54,200 --> 00:31:56,840
Speaker 1: this updates brought to you by Informatica. In the Cloud.

542
00:31:56,880 --> 00:31:59,640
Speaker 1: Your data has the power to do the extraordinary. Managed

543
00:31:59,680 --> 00:32:02,360
Speaker 1: data across any location in the cloud for accurate and

544
00:32:02,400 --> 00:32:07,440
Speaker 1: actionable insights. More at informatica dot com. US Dock Index

545
00:32:07,520 --> 00:32:11,680
Speaker 1: Futures are little change this morning. Investors awaiting minutes from

546
00:32:11,720 --> 00:32:14,400
Speaker 1: the Federal Reserve's latest policy meeting to gauge the pace

547
00:32:14,440 --> 00:32:17,160
Speaker 1: of monetary tightening, and we checked the markets every fifteen

548
00:32:17,160 --> 00:32:20,239
Speaker 1: minutes throughout the trading day on Bloomberg. Again, futures are

549
00:32:20,320 --> 00:32:22,920
Speaker 1: little change. The ten year Treasury is up three thirty seconds.

550
00:32:22,960 --> 00:32:25,080
Speaker 1: He'll two point seven three percent. That yield on the

551
00:32:25,160 --> 00:32:28,520
Speaker 1: two year two point five percent. Nimex screwed oil is

552
00:32:28,560 --> 00:32:30,720
Speaker 1: up one point six percent of a dollar seventy six

553
00:32:30,720 --> 00:32:33,080
Speaker 1: and a hundred eleven dollars fifty three cents of barrel.

554
00:32:33,360 --> 00:32:36,520
Speaker 1: Comex gold is down half percent on eight dollars fifty

555
00:32:36,520 --> 00:32:39,720
Speaker 1: cents at eighteen sixty two ninety announce the era one

556
00:32:39,720 --> 00:32:42,440
Speaker 1: point six seven zero against the dollar, British found one

557
00:32:42,440 --> 00:32:45,400
Speaker 1: point to five oh nine the seven point oh four

558
00:32:45,880 --> 00:32:48,560
Speaker 1: and bitcoin this morning up more than one percent at

559
00:32:48,600 --> 00:32:51,920
Speaker 1: twenty nine thousand and seven dty dollars. That's a Bloomberg

560
00:32:51,920 --> 00:32:54,480
Speaker 1: business flash. Now here's Michael Barr with more unless going

561
00:32:54,480 --> 00:32:56,960
Speaker 1: on around the world. Michael Karen, thank you very much.

562
00:32:56,960 --> 00:33:00,520
Speaker 1: A visibly angry president bit and addressed the nation, renewing

563
00:33:00,560 --> 00:33:03,440
Speaker 1: his call for the reform of gun laws. It's in

564
00:33:03,520 --> 00:33:07,120
Speaker 1: response to the deadly mass shooting at a school in Yuvaldi, Texas,

565
00:33:07,360 --> 00:33:10,520
Speaker 1: killing nineteen children and two adults. It's time for those

566
00:33:10,560 --> 00:33:14,600
Speaker 1: who obstruct or delay or blocked the common sense gun laws.

567
00:33:14,680 --> 00:33:17,880
Speaker 1: We need to let you know that we will not forget.

568
00:33:19,280 --> 00:33:22,600
Speaker 1: We can do so much more. We have to do more.

569
00:33:23,240 --> 00:33:25,560
Speaker 1: The eighteen year old gunman in the school shooting was

570
00:33:25,640 --> 00:33:29,840
Speaker 1: killed by authorities. Georgia Governor Brian Kemp has easily beat

571
00:33:29,920 --> 00:33:33,959
Speaker 1: Donald Trump's handpick challenger and a Republican primary, former Senator

572
00:33:34,040 --> 00:33:38,960
Speaker 1: David Perdue. Kemp had seventy eight percent Perdue received. Kemp

573
00:33:39,080 --> 00:33:43,280
Speaker 1: will face Democrats Stacy Abrams this fall. Republican Herschel. Walker

574
00:33:43,320 --> 00:33:47,480
Speaker 1: will face Democratic incumbent Senator Raphael Warnock to represent George

575
00:33:47,520 --> 00:33:50,680
Speaker 1: A in the November general election. Walker received sixty eight

576
00:33:50,680 --> 00:33:54,560
Speaker 1: percent of the vote. In the NHL playoffs, the Rangers

577
00:33:54,600 --> 00:33:57,719
Speaker 1: beat the Hurricanes, the series now tied at two games apiece.

578
00:33:58,120 --> 00:34:00,560
Speaker 1: In baseball, the Yankees beat the Orioles. The Mets lost

579
00:34:00,600 --> 00:34:02,360
Speaker 1: to the Giants, The Red Sox and A's one. The

580
00:34:02,480 --> 00:34:06,320
Speaker 1: Nationals lost NBA playoffs. The Mavericks stay alive as they

581
00:34:06,440 --> 00:34:09,560
Speaker 1: beat the Warriors. Global News twenty four hours a day

582
00:34:09,600 --> 00:34:12,279
Speaker 1: on air and on Bloomberg Quick Take, powered by more

583
00:34:12,320 --> 00:34:16,120
Speaker 1: than journalists, analysts more than a d twenty countries. Michael Barr,

584
00:34:16,200 --> 00:34:19,080
Speaker 1: this is Bloomberg, Karen Ry, Michael, thank you well. It's

585
00:34:19,719 --> 00:34:22,359
Speaker 1: nine Hot Wall Street. This is Bloomberg Daybreak. And now

586
00:34:22,360 --> 00:34:24,200
Speaker 1: we want to bring you part of our interview with

587
00:34:24,280 --> 00:34:27,560
Speaker 1: Bank of America's CEO Brian moynihan at the World Economic

588
00:34:27,560 --> 00:34:31,240
Speaker 1: Forum and Delvos. Moynahan told Bloomberg's Tom Keene and Lisa

589
00:34:31,239 --> 00:34:35,279
Speaker 1: Abramowitz that US consumers are holding up well against inflation.

590
00:34:35,400 --> 00:34:38,840
Speaker 1: That says he doesn't expect consumers spending to slow anytime soon.

591
00:34:39,320 --> 00:34:42,400
Speaker 1: Let's listen into that conversation. Now the account balance of

592
00:34:42,440 --> 00:34:45,840
Speaker 1: the consumer pre pandemic to now our multiples bigger. So

593
00:34:45,840 --> 00:34:49,160
Speaker 1: a person had uh two to three thousand average collective

594
00:34:49,160 --> 00:34:52,080
Speaker 1: balance on accounts now has and that would have been

595
00:34:52,120 --> 00:34:55,440
Speaker 1: about fourteen hundred. Actually if h one to two thousand,

596
00:34:55,440 --> 00:34:58,839
Speaker 1: what about is now almost four thousand bucks. A person

597
00:34:58,920 --> 00:35:02,359
Speaker 1: had two to five thousand but about average. It now

598
00:35:02,400 --> 00:35:05,799
Speaker 1: has thirty and thousand dollars. So just step back and

599
00:35:05,800 --> 00:35:07,680
Speaker 1: think about it grew five percent in the month of

600
00:35:07,680 --> 00:35:09,960
Speaker 1: April from March. So what you're seeing is consumers have

601
00:35:10,040 --> 00:35:12,879
Speaker 1: more money in the accounts. The idea that they spent

602
00:35:12,920 --> 00:35:15,200
Speaker 1: the pandemic money that came in January March last year

603
00:35:15,239 --> 00:35:18,040
Speaker 1: just not true. Now the second question is they paid

604
00:35:18,080 --> 00:35:19,920
Speaker 1: down the credit card bounces from a hundred billion, we

605
00:35:19,920 --> 00:35:22,840
Speaker 1: were down the seventy backup dighty lots of our capacity.

606
00:35:22,920 --> 00:35:25,160
Speaker 1: The third point is are they spending? And that's what's interesting.

607
00:35:25,200 --> 00:35:27,160
Speaker 1: In the first two weeks of May, the consumers spent

608
00:35:27,239 --> 00:35:29,839
Speaker 1: ten percent more than they did last May. That's over

609
00:35:29,920 --> 00:35:32,000
Speaker 1: top of the payments that went out to pay taxes.

610
00:35:32,080 --> 00:35:35,280
Speaker 1: So the consumers spending and people say, well, it's inflation

611
00:35:35,560 --> 00:35:39,080
Speaker 1: eight percent more transactions. Somebody doesn't just I just I

612
00:35:39,120 --> 00:35:41,120
Speaker 1: don't want to interrupt, because we're gonna extend this to

613
00:35:41,200 --> 00:35:44,080
Speaker 1: forty five minutes. This is the real morning, guys. This

614
00:35:44,120 --> 00:35:47,680
Speaker 1: is the bank nerd giving us the operational stuff here.

615
00:35:47,840 --> 00:35:49,680
Speaker 1: This actually goes the heart of a lot of the

616
00:35:49,719 --> 00:35:53,040
Speaker 1: economic questions of the moment, right because everyone's talking recession

617
00:35:53,080 --> 00:35:56,360
Speaker 1: here and stagflation. We were speaking with Bob Prince of Bridgewater.

618
00:35:56,480 --> 00:35:59,400
Speaker 1: What you're saying does not scream of stagflation or recession.

619
00:35:59,680 --> 00:36:01,400
Speaker 1: So that's this is that's why I said this we

620
00:36:01,400 --> 00:36:03,279
Speaker 1: were talking earlier. This will make the job, you know,

621
00:36:03,360 --> 00:36:06,160
Speaker 1: the Fed's job hard and easy, hard, hard, easy, and

622
00:36:06,200 --> 00:36:08,520
Speaker 1: that you have consumers in good shade, you know, not

623
00:36:08,640 --> 00:36:12,440
Speaker 1: over leverage. The home values went up, but frankly that

624
00:36:12,600 --> 00:36:15,000
Speaker 1: our LTV and our portfolios in the fifties, so to

625
00:36:15,040 --> 00:36:17,560
Speaker 1: give you sense, so you know that the prices went

626
00:36:17,640 --> 00:36:19,279
Speaker 1: up and people didn't borrow it out and stuff. So

627
00:36:19,560 --> 00:36:21,640
Speaker 1: that's the good news. The bad news is what's going

628
00:36:21,719 --> 00:36:23,239
Speaker 1: to slow him down. So if you look at t

629
00:36:23,400 --> 00:36:26,080
Speaker 1: S a travel Sunday, it was over top of nineteen

630
00:36:26,120 --> 00:36:30,439
Speaker 1: by that's a number of people went through the airport. Yeah,

631
00:36:30,520 --> 00:36:32,360
Speaker 1: so what's gonna slow him down? Nothing right now? And

632
00:36:32,400 --> 00:36:34,879
Speaker 1: so the question is, you know, so the FED has

633
00:36:34,880 --> 00:36:38,520
Speaker 1: this typically this very difficult thing of getting to slow

634
00:36:38,520 --> 00:36:40,960
Speaker 1: down without slowing him down too much. And the second

635
00:36:41,000 --> 00:36:43,440
Speaker 1: thing is the unemployment rate is really low. And so

636
00:36:43,480 --> 00:36:45,920
Speaker 1: if you look at our Michael Harton, it's a great economist.

637
00:36:46,000 --> 00:36:49,359
Speaker 1: He know he's got he's got you know, he's got

638
00:36:49,400 --> 00:36:51,520
Speaker 1: this year. You know the mid to high too. You

639
00:36:51,560 --> 00:36:54,640
Speaker 1: know he's got next year mid ones. Uh but it's

640
00:36:54,680 --> 00:36:56,520
Speaker 1: slowing down. The next year. You look at his quarters

641
00:36:56,600 --> 00:36:59,000
Speaker 1: is slowing down. So the idea is the Feds, the

642
00:36:59,040 --> 00:37:01,160
Speaker 1: FEDS work slows you. Uh no. The problem is he

643
00:37:01,200 --> 00:37:03,759
Speaker 1: still has an appoyment three and a fourth percent. You're saying, wait,

644
00:37:04,280 --> 00:37:07,160
Speaker 1: that can't you can't slow consumer down is working because

645
00:37:07,160 --> 00:37:10,439
Speaker 1: they have money spent. So that's a difficulty. I believe, Yeah,

646
00:37:10,800 --> 00:37:12,839
Speaker 1: I believe it's I believe that they're gonna be able

647
00:37:12,880 --> 00:37:15,520
Speaker 1: to manage this flow. But it's gonna be a tricky execution.

648
00:37:15,560 --> 00:37:18,560
Speaker 1: And there's things outside to control the pandemic resurgences. Something

649
00:37:18,560 --> 00:37:21,160
Speaker 1: going different, no more. But America is much different than

650
00:37:21,200 --> 00:37:23,600
Speaker 1: Europe and other places because this dynamic of the envirobrancy

651
00:37:23,640 --> 00:37:26,320
Speaker 1: of the US Consumer and as Bank of America CEO

652
00:37:26,400 --> 00:37:29,440
Speaker 1: Brian moynahan speaking at the Bloomberg's Tom Keane and Lisa

653
00:37:29,440 --> 00:37:32,520
Speaker 1: Abramowitz and Davos. Continue to tune into Bloomberg Radio and

654
00:37:32,560 --> 00:37:35,840
Speaker 1: Television today for full coverage of the World Economic Forum.

655
00:37:35,960 --> 00:37:40,239
Speaker 1: John all right, thanks, Karen is now five three Wall

656
00:37:40,239 --> 00:37:44,480
Speaker 1: Street Market's assessing the outlook for Felder Reserve monetary tightening,

657
00:37:44,520 --> 00:37:48,200
Speaker 1: among other things. Futures right now in the green, Let's

658
00:37:48,200 --> 00:37:50,680
Speaker 1: get you set up for the trading day ahead. Tracy

659
00:37:50,760 --> 00:37:54,080
Speaker 1: mc melanie has had a global asset allocations strategy at

660
00:37:54,080 --> 00:37:58,440
Speaker 1: Wells Fargo Investment Institute, joining us this morning. What is

661
00:37:58,480 --> 00:38:03,960
Speaker 1: your base case on an outlook for the United States?

662
00:38:03,960 --> 00:38:06,560
Speaker 1: Good morning, done, and thank you for having me so

663
00:38:06,719 --> 00:38:11,640
Speaker 1: our These cases not quite as as UM positive as

664
00:38:11,719 --> 00:38:15,120
Speaker 1: Brian moyna Hans is. In fact, um, you know, we

665
00:38:15,200 --> 00:38:18,880
Speaker 1: think that we are starting to see high frequency economic

666
00:38:19,080 --> 00:38:23,480
Speaker 1: data starting to roll over. We think that a lot

667
00:38:23,520 --> 00:38:26,879
Speaker 1: of the positive data that we've seen has been more

668
00:38:27,000 --> 00:38:32,000
Speaker 1: backward looking, that the forward looking data is more negative

669
00:38:32,320 --> 00:38:36,000
Speaker 1: UM in terms of looking at things like consumer purchasing

670
00:38:36,120 --> 00:38:41,799
Speaker 1: power UM deteriorating the inflation adjusted wages are starting to

671
00:38:41,920 --> 00:38:48,520
Speaker 1: decline UM and layoff really are just beginning. Manufacturing resilience,

672
00:38:48,600 --> 00:38:51,120
Speaker 1: we think is also going to be tested in the

673
00:38:51,200 --> 00:38:55,640
Speaker 1: coming months as consumers start to rotate. So it's our

674
00:38:56,040 --> 00:38:59,040
Speaker 1: space case at this point that we are probably going

675
00:38:59,080 --> 00:39:02,120
Speaker 1: to see a mild recession towards the end of this

676
00:39:02,200 --> 00:39:06,759
Speaker 1: year and into early Margin compression has been a theme

677
00:39:06,800 --> 00:39:10,600
Speaker 1: as we've got results from the retailers. Have we seen

678
00:39:10,600 --> 00:39:16,720
Speaker 1: peak inflation? Well, it's very possible that we have seen

679
00:39:16,920 --> 00:39:21,120
Speaker 1: peak inflation, but we do think that more important than

680
00:39:21,200 --> 00:39:23,960
Speaker 1: whether or not it was a peak is how persistent

681
00:39:24,080 --> 00:39:27,120
Speaker 1: that inflation is going to be. And we think that

682
00:39:27,200 --> 00:39:32,880
Speaker 1: inflation could persist at really uncomfortably high levels UM even

683
00:39:32,920 --> 00:39:36,640
Speaker 1: as the economy starts to weaken here, and you know

684
00:39:36,719 --> 00:39:39,719
Speaker 1: that's going to be because the labor market will probably

685
00:39:39,800 --> 00:39:44,040
Speaker 1: remain tight. UM. We still have some supply chain disruptions

686
00:39:44,200 --> 00:39:48,000
Speaker 1: and they're sticky components of cp I like rents that

687
00:39:48,120 --> 00:39:51,879
Speaker 1: will likely remain high UM. So you know, what we're

688
00:39:51,880 --> 00:39:56,280
Speaker 1: starting to see is UM some inventory building, some supply

689
00:39:56,440 --> 00:40:00,880
Speaker 1: chain relief, and that could start to bring inflation down

690
00:40:01,000 --> 00:40:03,719
Speaker 1: later in the year. But you know, at the same time,

691
00:40:03,800 --> 00:40:07,439
Speaker 1: we think wage pressures remain, and that's not a good

692
00:40:07,480 --> 00:40:10,560
Speaker 1: combination for earning. As far as FED policy, is it

693
00:40:10,640 --> 00:40:13,799
Speaker 1: written in stone for the June and July meetings that

694
00:40:14,320 --> 00:40:19,120
Speaker 1: receive fifty basis points, probably not written in stone, But

695
00:40:19,200 --> 00:40:21,839
Speaker 1: the markets are pricing for that, and the FED has

696
00:40:21,880 --> 00:40:26,200
Speaker 1: indicated that that is the past that they're going to take. Um.

697
00:40:26,280 --> 00:40:30,000
Speaker 1: So their primary focus at the moment is to slow inflation.

698
00:40:30,200 --> 00:40:32,680
Speaker 1: But you know, we think they're seeing some of the

699
00:40:32,800 --> 00:40:37,439
Speaker 1: same deteriorating data that we're seeing, and you know, one

700
00:40:37,520 --> 00:40:40,920
Speaker 1: has to think that it's starting to concern them. But

701
00:40:41,440 --> 00:40:45,160
Speaker 1: we don't think they'll pull back on their aggressive policy

702
00:40:45,400 --> 00:40:49,319
Speaker 1: really unless there's some kind of market disruptions, you know,

703
00:40:49,520 --> 00:40:53,120
Speaker 1: maybe a liquidity event. Um. We don't think they'll step

704
00:40:53,200 --> 00:40:56,239
Speaker 1: in as long as markets are orderly um. But we

705
00:40:56,280 --> 00:40:59,080
Speaker 1: will be reading the minutes today to see if they

706
00:40:59,120 --> 00:41:02,279
Speaker 1: mentioned an each triggers that might cause them to take

707
00:41:02,320 --> 00:41:05,960
Speaker 1: a pause. Given all what you've said there, Tracy, what

708
00:41:06,040 --> 00:41:10,359
Speaker 1: do you pay for future growth at this point? Yeah,

709
00:41:10,440 --> 00:41:15,839
Speaker 1: So we do see the likelihood of a pe compression,

710
00:41:16,360 --> 00:41:20,680
Speaker 1: and we do think that it is um likely that

711
00:41:20,800 --> 00:41:25,120
Speaker 1: earnings are going to grow, possibly at a lower rate

712
00:41:25,239 --> 00:41:28,080
Speaker 1: this year than most of Wall Street is pricing in

713
00:41:28,320 --> 00:41:32,799
Speaker 1: we have a two twenty earnings by year ends, and

714
00:41:33,400 --> 00:41:37,960
Speaker 1: you know that to us, UH says that there's probably

715
00:41:38,120 --> 00:41:42,360
Speaker 1: some upside potential in equity markets from where we are today,

716
00:41:42,440 --> 00:41:45,600
Speaker 1: but it's not a straight line to that upside, and

717
00:41:45,640 --> 00:41:48,719
Speaker 1: we do think will end the year um probably in

718
00:41:49,000 --> 00:41:52,840
Speaker 1: negative territory. We see about a ten percent decline in

719
00:41:52,920 --> 00:41:55,399
Speaker 1: the S and P five by the end of the year.

720
00:41:55,920 --> 00:41:58,680
Speaker 1: That's the overall ten percent decline from the start of

721
00:41:58,680 --> 00:42:01,840
Speaker 1: the year a year today. Door from where we levels,

722
00:42:01,880 --> 00:42:05,399
Speaker 1: where we are now, Okay, from this right now, that's

723
00:42:05,400 --> 00:42:09,680
Speaker 1: exactly right, all right, Tracy, A pleasure to appreciated. Tracy McMillan,

724
00:42:09,800 --> 00:42:14,600
Speaker 1: head of Global Asset Allocations Strategy at Wells Fargo Investment Institute.

725
00:42:15,040 --> 00:42:16,960
Speaker 1: Ahead of the cash open on Wall story. Right now,

726
00:42:17,000 --> 00:42:21,000
Speaker 1: the futures are in the green too little change now,

727
00:42:21,120 --> 00:42:25,200
Speaker 1: futures of eight points smp emni, theatures just four points

728
00:42:25,239 --> 00:42:29,200
Speaker 1: higher in the NASDACK futures are up seventeen points. As

729
00:42:29,200 --> 00:42:32,040
Speaker 1: far as treasuries, the benchmark ten year yield right now

730
00:42:32,160 --> 00:42:36,200
Speaker 1: at two seventy four, that is pretty much un changed.

731
00:42:36,320 --> 00:42:40,399
Speaker 1: The euro one O six seventy six down about half

732
00:42:40,400 --> 00:42:44,120
Speaker 1: a percent against the US dollar, and you're listening to

733
00:42:44,200 --> 00:42:45,200
Speaker 1: Bloomberg Daybreak