WEBVTT - Bloomberg Daybreak: May 10, 2022 - Hour 2 (Radio) 0:00:02.960 --> 0:00:06.320 Live from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:06.400 --> 0:00:10.680 Daybreak for Tuesday May two. Coming up this hour. Stocks 0:00:10.760 --> 0:00:14.360 stabilized following the lowest clothes in thirteen months, the FED 0:00:14.400 --> 0:00:18.720 warrant of deteriorating liquidity conditions across key financial markets, and 0:00:18.760 --> 0:00:21.840 as gas prices hit a record, President Biden gets ready 0:00:21.880 --> 0:00:25.720 to deliver a speech on combatic inflation. Connecticut's governors signs 0:00:25.720 --> 0:00:28.480 a budget with hundreds of millions and tax cuts, plus 0:00:28.520 --> 0:00:31.360 the man hunt for a murder suspected and Alabama Corrections 0:00:31.400 --> 0:00:35.000 officer is over. I'm Michael war More ahead, I'm John 0:00:35.080 --> 0:00:37.720 dash Down forwards. Nightmare night for the Rangers. They lost 0:00:37.720 --> 0:00:40.440 Game four in Pittsburgh seven to two. The Yankees top 0:00:40.479 --> 0:00:46.520 Texas one, the nupping that's all's turning ahead on Bloomberg 0:00:46.560 --> 0:00:51.640 Daybreak on Bloomberg Eliving three on New York, Bloomberg one, Washington, 0:00:51.760 --> 0:00:55.360 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:55.440 --> 0:00:59.680 sixties and Francisco Sirius x M one nineteen and around 0:00:59.680 --> 0:01:02.319 the world. Old on Bloomberg Radio dot Com and by 0:01:02.360 --> 0:01:09.800 other Bloomberg Business and Good Morning. I'm Karen Moscow. I'm 0:01:09.880 --> 0:01:12.200 Nathan Hegar Bloomberg Day Break Gronto You by b and 0:01:12.319 --> 0:01:15.160 Y Melons. Pershing learned why the world's most sophisticated wealth 0:01:15.160 --> 0:01:18.480 management and institutional firms rely on Pershing to help them 0:01:18.520 --> 0:01:22.360 improve profitability, create efficiency, attract talent, and mantage risk at 0:01:22.400 --> 0:01:26.760 Pershing dot Com and US futures are higher this morning. 0:01:27.000 --> 0:01:28.679 It is six o one on Wall Street and we 0:01:28.760 --> 0:01:31.200 check the markets every fifteen minutes throughout the trading day. 0:01:31.240 --> 0:01:33.959 On Bloomberg S and P futures at thirty two points down, 0:01:34.040 --> 0:01:37.479 futures up two hundred sixteen. NASDACK futures have one hundred 0:01:37.600 --> 0:01:41.520 sixty ten year treasury of eight thirty seconds yield three percent, 0:01:41.880 --> 0:01:44.720 the yield on the two year two point five eight percent, 0:01:44.800 --> 0:01:47.480 and nine nex screwde oil is down one point six 0:01:47.560 --> 0:01:50.880 percent Nathan mccaren. The rise in futures follows the lowest 0:01:50.960 --> 0:01:54.360 close for US stocks in thirteen months. Hardest hit continues 0:01:54.400 --> 0:01:57.279 to be the tech heavy NASDAC. The index slid another 0:01:57.320 --> 0:02:00.280 four point three percent. The Nasdaq one hundred has a 0:02:00.320 --> 0:02:03.080 three point four trillion dollars since the start of April. 0:02:03.320 --> 0:02:06.520 Aaron Kennon is CEO at Clear Harbor Asset Management, you know, 0:02:06.560 --> 0:02:10.000 we're continuing to see a dramatic sort of leakage of 0:02:10.000 --> 0:02:13.680 liquidity from the capital market system, as the Fed uh 0:02:13.800 --> 0:02:18.440 titans policy and as the fiscal weavers very much close 0:02:18.520 --> 0:02:22.160 off and inflation is a huge concern pure Harbor as said. 0:02:22.160 --> 0:02:25.760 Management Saron Kennon says tomorrow's inflation report, the consumer price 0:02:25.760 --> 0:02:29.040 index will be important for market sentiment. Well, Nathan, before 0:02:29.040 --> 0:02:31.760 we get that data, we're seeing hard evidence of price 0:02:31.800 --> 0:02:34.360 pressures at the gas pump. The average retail price at 0:02:34.360 --> 0:02:37.120 gasoline has hit a record four dollars and thirty seven 0:02:37.200 --> 0:02:40.040 cents per gallon. President Biden will have more to say 0:02:40.040 --> 0:02:42.760 about his efforts to combat rising prices in a speech 0:02:42.840 --> 0:02:45.880 today being a preview from Amy Morris in our Bloomberg 0:02:46.639 --> 0:02:50.280 newsroom in Washington. President Biden is expected to detail the 0:02:50.280 --> 0:02:53.560 differences between his plan and a GOP proposal by Florida 0:02:53.639 --> 0:02:57.160 Senator Rick Scott that would raise taxes while allowing Social 0:02:57.200 --> 0:03:01.119 Security and Medicare to expire. Consume reprises rose in March 0:03:01.160 --> 0:03:04.480 at the fastest pace since nine one, and of Americans 0:03:04.520 --> 0:03:08.960 increasingly pessimistic about their finances despite strong job growth. It's 0:03:09.000 --> 0:03:11.800 the biggest worry for voters ahead of the November midterms. 0:03:11.960 --> 0:03:14.440 A CNN poll out last week found eight in ten 0:03:14.480 --> 0:03:18.040 Americans don't believe the government is doing enough to fight inflation. 0:03:18.400 --> 0:03:21.440 In Washington, I maybe Morris Bloomberg Daybreak, Amy, thank you, 0:03:21.480 --> 0:03:24.240 and President Biden will deliver that speech around eleven thirty 0:03:24.240 --> 0:03:26.480 a m. Wall Street Time. Catch it right here on 0:03:26.560 --> 0:03:29.919 Bloomberg Radio. I meantime caring. The Federal Reserve is warning 0:03:29.919 --> 0:03:33.639 a deteriorating liquidity conditions across key financial markets. We get 0:03:33.639 --> 0:03:37.720 the details from Bloomberg's Charlie Pellet. In its semi annual report, 0:03:37.960 --> 0:03:41.200 the FED sites rising risks from the war in Ukraine, 0:03:41.600 --> 0:03:46.000 monetary tightening, and high inflation. The FED said, according to 0:03:46.040 --> 0:03:51.120 some measures, market liquidity has declined since late one in 0:03:51.200 --> 0:03:55.360 the markets for recently issued US cash treasury securities and 0:03:55.480 --> 0:03:59.240 for equity index futures. FED Governor Lyle Brainard said the 0:03:59.240 --> 0:04:02.680 war hast spar large price movements and margin calls in 0:04:02.760 --> 0:04:07.160 commodities markets, and highlights of potential channel through which large 0:04:07.360 --> 0:04:12.480 financial institutions could be exposed to contagion. In New York, 0:04:12.560 --> 0:04:15.920 Charlie Pellett Bloomberg Daybreak, All right, Charlie, thank you, We'll 0:04:15.920 --> 0:04:18.280 have much more from the Fed later this morning. We're 0:04:18.279 --> 0:04:21.840 going to be speaking live with Cleveland Fed President Loretta Master. 0:04:22.279 --> 0:04:24.960 That's coming up at eleven am Wall Street Time on 0:04:25.040 --> 0:04:28.640 Bloomberg Radio and Television. Well, Nathan, we saw selling in 0:04:28.720 --> 0:04:32.680 Asia overnight. Stocks fell for a seventh straight session, but 0:04:32.800 --> 0:04:35.960 did pair earlier losses. We get the recap from Bloomberg's 0:04:36.000 --> 0:04:39.560 Juliette Sally in Singapore. Good morning, Juliette, Good morning, Nathan 0:04:39.560 --> 0:04:41.480 and Karen. The losses on the m c I Asia 0:04:41.520 --> 0:04:45.120 Pacific Index mirrored the longest losing streaks since March twenty twenties, 0:04:45.240 --> 0:04:48.839 stokes remaining at July twenty twenty lows. Hong Kong tech 0:04:48.920 --> 0:04:51.680 shares took a dive on growth concerns and as the 0:04:51.680 --> 0:04:55.960 city resumed trade after a long weekend. Mainland Chinese has rebounded, 0:04:55.960 --> 0:04:59.400 but Black Roake abandoned its bullish stance on China, now 0:04:59.440 --> 0:05:02.840 recommending a neutral stance on Chinese stocks and bonds as 0:05:02.839 --> 0:05:06.360 the country's response to the pandemic takes a home in Singapore. 0:05:06.440 --> 0:05:10.040 Juliet Sally, Bloomberg Daybreak. All right, Juliet, Thanks, Let's head 0:05:10.080 --> 0:05:14.560 over to Europe. Now. We are seeing some stabilization in markets. 0:05:14.640 --> 0:05:17.919 This morning, Bloomberg's Max Ramsey joins us live from London. 0:05:17.960 --> 0:05:21.000 Good morning, Max, morning to you, Nathan and Karen. Yes, 0:05:21.080 --> 0:05:23.760 seeing some gains in Europe. Not catching up with the 0:05:23.880 --> 0:05:26.440 steep losses that we saw yesterday. But right now the 0:05:26.440 --> 0:05:29.240 foot see up six tenths of eight percent, the dacks 0:05:29.320 --> 0:05:32.440 up one point three percent, so really some steady gains. 0:05:32.600 --> 0:05:36.040 Energy has been one of the worst performing sectors this morning, 0:05:36.080 --> 0:05:39.200 though still holding steady or just about gaining. And of 0:05:39.200 --> 0:05:42.240 course we have had wrangling over energy to do with 0:05:42.320 --> 0:05:45.480 the U sanctions on Russia, and so that has been 0:05:45.760 --> 0:05:48.279 bouncing up and down, but still managing to eke out 0:05:48.400 --> 0:05:51.839 some gains. Live in London, Max Ramsey, boom Bag daybreak. 0:05:51.920 --> 0:05:54.360 All right, Max, thank you well. Bitcoin trading higher this 0:05:54.400 --> 0:05:57.400 morning after briefly falling below the thirty thousand level. The 0:05:57.440 --> 0:06:00.560 recent plunges taken the digital token to of us last 0:06:00.600 --> 0:06:03.280 seen in the middle of last year. Mcnova Grass is 0:06:03.320 --> 0:06:06.599 founder and CEO of Galaxy Digital. I still think thirty 0:06:06.640 --> 0:06:09.720 thousand should hold, right, We'll see if twelve thousand holds 0:06:09.760 --> 0:06:13.200 the NASDAC and we bounce in the next few days, um, 0:06:13.400 --> 0:06:17.000 then I think you'll see bitcoin thirty thirty thousand. Hold, 0:06:17.279 --> 0:06:20.440 if the NASDAC falls and we head towards eleven thousand, 0:06:20.920 --> 0:06:23.680 you know there's a shot that thirty thousand goes. Galaxy 0:06:23.720 --> 0:06:26.600 Digital founder mcnova Grat says trading will be volatile for 0:06:26.680 --> 0:06:29.279 at least the next few quarters. And turning to the 0:06:29.279 --> 0:06:31.880 war in Europe, now, Karen president invited meets with Italian 0:06:31.920 --> 0:06:35.000 Prime Minister Mario Draggy today as aid to Ukraine moves 0:06:35.000 --> 0:06:37.920 forward on a couple of fronts. Bloomberg's Ed Baxter has 0:06:38.000 --> 0:06:41.640 the story Congressional Democrats have drafted an aid package worth 0:06:41.680 --> 0:06:44.960 almost forty billion dollars and plan on voting this week 0:06:45.240 --> 0:06:49.560 without attaching COVID pandemic funding. This tops the president's ask 0:06:49.640 --> 0:06:52.880 of thirty three billion. Biden meanwhile signed a World War 0:06:52.920 --> 0:06:56.560 two era provision sending money to Ukraine across to the 0:06:56.600 --> 0:07:02.480 fight is not chief but caving aggression. Even this provision 0:07:02.560 --> 0:07:06.080 was enacted in one to help Europe fight off Hitler. 0:07:06.600 --> 0:07:10.680 Congress could act as early as today. In San Francisco, 0:07:10.720 --> 0:07:14.320 I'm at backster Bloomberg Daybreak. Alright, Ed, thank you, straight ahead, 0:07:14.360 --> 0:07:17.120 we'll bring you your latest local headlines plus a check 0:07:17.160 --> 0:07:24.559 of sports. This is Bloomberg. It sounds six oh seven 0:07:24.560 --> 0:07:26.720 on Wall Street where fifty three degrees in Central Park. 0:07:26.800 --> 0:07:29.000 Still dealing with an accident on the northbound FDR Drive 0:07:29.000 --> 0:07:31.720 at ninety six. More coming up in traffic. First Michael 0:07:31.720 --> 0:07:33.520 Barr with what else is going on in New York 0:07:33.560 --> 0:07:35.680 and around the world. Michael, thank you very much. Nathan. 0:07:35.720 --> 0:07:38.720 Connecticut tax payers, we'll see six hundred million dollars in 0:07:38.800 --> 0:07:42.560 tax relief following the signing of the fiscal year twenty 0:07:42.640 --> 0:07:46.520 three budget. Democratic Governor Need Lamont. The law extends a 0:07:46.560 --> 0:07:50.000 gas tax holiday and child tax credit, as well as 0:07:50.040 --> 0:07:53.320 increasing a property tax credit. Lamont described it as the 0:07:53.400 --> 0:07:57.600 largest tax cut in state history. Voters in Newark, New Jersey, 0:07:57.600 --> 0:08:00.960 are choosing a mayor today. Incumbent ros Baraka will face 0:08:01.000 --> 0:08:05.400 a challenge from Sheila Montage. The Alabama corrections employee who 0:08:05.440 --> 0:08:08.000 was on the run with an escaped inmate, is now dead. 0:08:08.440 --> 0:08:12.280 Authorities in Indiana's say Vicky White shot herself as U 0:08:12.400 --> 0:08:16.240 S Marshals closed in. Officers rammed the vehicle Vicky White 0:08:16.320 --> 0:08:20.120 and Casey White were in, which then crashed. Alabama Sheriff 0:08:20.200 --> 0:08:23.560 Rick Singleton says that Casey White is never getting out again. 0:08:23.880 --> 0:08:27.040 We've got a dangerous man off the streak today. Uh 0:08:27.160 --> 0:08:29.440 he is never going to see the lot of day again. 0:08:30.160 --> 0:08:32.480 And uh, you know, that's a good thing for not 0:08:32.640 --> 0:08:35.160 just our community, but that's a good thing for this country. 0:08:35.840 --> 0:08:39.560 Sheriff Singleton says this has ended a very stressful week 0:08:39.640 --> 0:08:42.600 and a half. New York's Attorney General says her state 0:08:42.640 --> 0:08:45.800 will safeguard the right to abortion if the Supreme Court 0:08:45.840 --> 0:08:49.560 overturns Roe v. Wade. Flatisia James says about thirty thousand 0:08:49.600 --> 0:08:53.400 women just from Pennsylvania and Ohio alone could come to 0:08:53.440 --> 0:08:56.360 New York seeking reproductive care. So a fund will be 0:08:56.480 --> 0:08:59.840 established that James says, will help those women. James also 0:09:00.040 --> 0:09:04.200 asked doubt on why anti abortion activists support bans on abortion. 0:09:04.480 --> 0:09:06.920 What they should do is expand the childcare tax credit. 0:09:07.080 --> 0:09:09.720 What they should do is expand universal school lunch. What 0:09:09.800 --> 0:09:12.560 they should do is provide more funding for education and 0:09:12.640 --> 0:09:16.040 childcare and daycare and prenatal care, and the list goes 0:09:16.160 --> 0:09:20.240 on and on. If you truly care about children, A. G. 0:09:20.440 --> 0:09:25.079 Latitia James, Andy Warhol's shot Sage Blue Maryland is sold 0:09:25.080 --> 0:09:28.800 for a million dollars. That makes the iconic portrait of 0:09:28.800 --> 0:09:31.880 actors Marilyn Monroe, the most expensive artwork by a US 0:09:32.000 --> 0:09:35.679 artist ever sold at auction. Christie's Auction House in New 0:09:35.760 --> 0:09:40.160 York held the sale. Alex rotteri's chairman of Christie's Century 0:09:40.200 --> 0:09:45.000 Art Department, century Um Works of Art, American Works of Art. 0:09:45.120 --> 0:09:48.640 It's the highest price ever paid, close to two hundred 0:09:48.640 --> 0:09:52.320 million dollars. Uh, let it sink in. It's quite something, 0:09:52.640 --> 0:09:55.559 Ruder says. The buyer is unknown. Global News twenty four 0:09:55.600 --> 0:09:58.120 hours a day on airand on Bloomberg Quick Take, powered 0:09:58.120 --> 0:10:01.640 by more than journalists. The list more than twenty countries. 0:10:02.000 --> 0:10:09.280 Michael Barr, this is Bloomberg Naked. Thank you, Michael Kind 0:10:09.360 --> 0:10:10.800 up to the six ten on Wall Street. Time for 0:10:10.800 --> 0:10:13.280 the Bloomberg Sports that date with John Share. Thanks dayan. 0:10:13.320 --> 0:10:15.920 The Rangers in Pittsburgh with hopes of winning Game four 0:10:15.960 --> 0:10:17.960 to tie the series of two, instead of the Penguins 0:10:17.960 --> 0:10:20.160 with a five goal on slaught in the second period. 0:10:20.480 --> 0:10:23.920 They scored goals twenty four seconds apart. Later scored goals 0:10:23.920 --> 0:10:26.679 thirty five seconds apart. They won seven to two. They 0:10:26.800 --> 0:10:28.800 leave the series three to one. Game five tomorrow at 0:10:28.800 --> 0:10:31.720 the Garden. Rangers coach Gerard Galanta has already said. Igor 0:10:31.800 --> 0:10:34.560 says Durkin will stay in the Ranger goal A little 0:10:34.600 --> 0:10:37.640 surprise he considering how poorly, says Durkin played in the 0:10:37.679 --> 0:10:40.080 two games in Pittsburgh and three periods he gave up 0:10:40.120 --> 0:10:43.160 ten goals. Alex Gorgi have relieved him in both games 0:10:43.160 --> 0:10:45.400 and three periods he allowed two goals. But Galans last 0:10:45.440 --> 0:10:48.040 night to Surkin is the best goalie in the NHL. 0:10:48.200 --> 0:10:51.800 Colorado won at Nashville to complete a sweep Florida be Washington, 0:10:51.800 --> 0:10:54.320 and overtime Calgary be Dallas. Those series are tied at two. 0:10:54.679 --> 0:10:57.360 The Islander is in a surprise fired coach Barry Trot's 0:10:57.440 --> 0:11:00.640 NBA Playoffs Boston rally to win. In Milwaukee, Golden State 0:11:01.000 --> 0:11:03.160 beat Memphis. Far as crowd at the stadium for a 0:11:03.200 --> 0:11:05.679 Yankee Mattenee makeup of a rain ap. Those that were 0:11:05.720 --> 0:11:08.880 there saw near no hit or Esther Cortez lost it 0:11:08.960 --> 0:11:11.400 with one out the eighth inning, kind of like fifth 0:11:11.440 --> 0:11:15.679 going into six. I kept la Gampus scoreboard, Uh, I 0:11:15.760 --> 0:11:17.680 see where my pitchcount was and stuff like that. So 0:11:18.240 --> 0:11:20.240 and he was in a good spot, and and you know, 0:11:20.360 --> 0:11:23.360 noticed that I hadn't get up at his so uh 0:11:23.559 --> 0:11:25.200 you know it was. It was special Equal scored the 0:11:25.200 --> 0:11:27.080 game's only run bottom of the eighth and ain't driven 0:11:27.080 --> 0:11:29.079 in by Anthony Rizzo. They top text has one d 0:11:29.240 --> 0:11:31.520 up and they had not one thirteen their last fifteen. 0:11:31.880 --> 0:11:34.280 The Giants had to release one of their best players, 0:11:34.360 --> 0:11:37.800 cornerback James Bradberry. Had to do it for salary cap reasons. 0:11:37.800 --> 0:11:40.480 Tried to trade him, couldn't find a trade partner. John 0:11:40.520 --> 0:11:43.640 stash Award Bloomberg Sports. Nathan, all right, John, thank you. 0:11:43.720 --> 0:11:46.679 Right now, S and P futures are moving higher, up 0:11:46.720 --> 0:11:50.160 thirty two points, Dow futures up two SIS that features 0:11:50.200 --> 0:11:52.320 up a hundred sixty one points, the tenuere treasury up 0:11:52.360 --> 0:11:55.520 seven thirty seconds, the yield three per cent more on 0:11:55.559 --> 0:11:58.760 this market. Next, we'll be speaking with Patrick Armstrong of 0:11:58.880 --> 0:12:08.319 Plurimi Wealth. You're listening to Bloomberg Day Brin Bloomberg eleven 0:12:08.320 --> 0:12:10.679 three oh weather sunny, breezy, up for sixties today. We'll 0:12:10.679 --> 0:12:12.760 get up to your seventy on a rossly sunny sky 0:12:12.800 --> 0:12:15.240 tomorrow to be mostly sunny. Him in your seventy five 0:12:15.520 --> 0:12:22.320 on Thursday. Our current temperature is fifty three degrees Markets, 0:12:22.400 --> 0:12:25.440 headlines and breaking news twenty four hours a day at 0:12:25.520 --> 0:12:28.920 Bloomberg dot Com, the Bloomberg Business a and at Bloomberg 0:12:28.960 --> 0:12:37.839 Quick Tape This is a Bloomberg Business flash and I'm 0:12:37.880 --> 0:12:41.360 camerin Moscow. US Dock Index futures are rising. They are 0:12:41.440 --> 0:12:44.640 rallying along with European shares as if buyers emerged following 0:12:44.720 --> 0:12:48.240 yesterday's sell off, although sentiment does remain fragile over concerns 0:12:48.240 --> 0:12:51.240 about inflation and economic growth. We check the markets every 0:12:51.280 --> 0:12:53.920 fifteen minutes throughout the trading day on Bloomberg Guess and 0:12:53.960 --> 0:12:57.160 P futures up thirty points now futures up two hundred 0:12:57.200 --> 0:13:00.400 eight and nasday futures have one five. The decks in 0:13:00.400 --> 0:13:03.000 Germany's at one point to percent, the ten year treasury 0:13:03.040 --> 0:13:05.920 of seven thirty seconds yell three percent. They yelled at 0:13:05.960 --> 0:13:08.880 a two year two point five nine percent. Dimex Screwed 0:13:08.920 --> 0:13:11.079 oil is down two per cent or two dollars eight 0:13:11.120 --> 0:13:13.240 cents at a hundred one dollars three cents of barrel 0:13:13.480 --> 0:13:15.719 comics gold is down a tenth of a percent or 0:13:15.720 --> 0:13:18.560 two dollars fifty cents at eighteen fifty six ten announce. 0:13:18.920 --> 0:13:21.480 The euro one point oh five four one against the dollar. 0:13:21.559 --> 0:13:24.160 British found one point to three to three, the unit 0:13:24.200 --> 0:13:27.400 one thirty point oh nine and bitcoin this morning. I've 0:13:27.400 --> 0:13:30.000 wanted a half percent at thirty one thousand, four hundred 0:13:30.040 --> 0:13:33.120 thirty dollars. That's a Bloomberg business flash. Now here's Michael 0:13:33.120 --> 0:13:35.640 Barr with more on what's going on around the world. Michael, 0:13:36.040 --> 0:13:39.080 thank you very much. Karen. Ukrainian officials say Russia is 0:13:39.120 --> 0:13:43.440 founding the way at Ukraine's vital southern port of Odessa. Meanwhile, 0:13:43.480 --> 0:13:47.320 President Biden says he's worried that Russian President Putin does 0:13:47.400 --> 0:13:49.560 not have a way out right now of his war 0:13:49.600 --> 0:13:52.640 in Ukraine. Biden signed a measure making it easier for 0:13:52.679 --> 0:13:56.040 Washington to send weapons to keep. In the NBA playoffs, 0:13:56.040 --> 0:13:58.440 the Celtics beat the Bucks to even their series at 0:13:58.440 --> 0:14:01.520 two games apiece. The war Years beat the Grizzlies. However, 0:14:01.600 --> 0:14:05.120 Warriors coach Steve Kerr tested positive for COVID before tip off. 0:14:05.520 --> 0:14:08.120 In the NHL playoffs, the Rangers lost to the Penguins 0:14:08.120 --> 0:14:11.120 to fall behind three games the one. The Capital's lost 0:14:11.160 --> 0:14:14.320 to the Panthers. In baseball, the Yankees Orioles Giants and 0:14:14.360 --> 0:14:17.320 A's all one. Global News twenty four hours a day 0:14:17.320 --> 0:14:19.920 on air and on Bloomberg Quick Take Power by more 0:14:20.200 --> 0:14:22.920 than twenty seven hundred journalists analysts more than a hundred 0:14:22.960 --> 0:14:26.760 twenty countries. Michael Barr and this is Bloomberg, Nathan, Thanks Michael. 0:14:26.800 --> 0:14:29.240 At six nineteen on Wall Street Live from the Bloomberg 0:14:29.240 --> 0:14:32.720 Interactive Broker Studios. This is Bloomberg Daybreak and we're joined 0:14:32.760 --> 0:14:36.400 now by Patrick Armstrong, chief investment officer at Plurimi Wealth, 0:14:36.520 --> 0:14:40.320 with a relief rally underway on this Tuesday morning, Patrick, 0:14:40.560 --> 0:14:44.480 are you buying this dept um? I'm sticking with what 0:14:44.520 --> 0:14:47.720 I've got, so I'm pretty neutral equities right now. I'm 0:14:47.720 --> 0:14:49.640 comfortable with the ones I've got to. I owned the 0:14:49.640 --> 0:14:52.840 companies that are producing earnings in castle today, where I've 0:14:52.840 --> 0:14:55.480 got my short swilled with those because I'm short the 0:14:55.520 --> 0:14:57.680 kind of companies that don't have earnings jets and have 0:14:58.400 --> 0:15:01.120 business models that I don't think have a path to profitability. 0:15:01.200 --> 0:15:04.360 But it's a day. If you've not been overleveraged, you 0:15:04.360 --> 0:15:07.960 can sit back and enjoy the recovery. But if you've 0:15:07.960 --> 0:15:10.960 been leveraged, it's been a pretty couple of painful days 0:15:10.960 --> 0:15:14.880 for markets. So where do you see markets. Going from here, 0:15:14.960 --> 0:15:20.480 is there further for the stocks to fall? I think 0:15:20.520 --> 0:15:23.400 there's further for stocks to fall because we've still not 0:15:23.480 --> 0:15:27.120 got rid of the speculative excesses at the extreme end 0:15:27.120 --> 0:15:29.360 of things. So the naz back one hunt came into 0:15:29.400 --> 0:15:33.080 the year trading at five point six times price to sales. 0:15:33.720 --> 0:15:35.720 That's fallen all the way down to three point eight 0:15:35.720 --> 0:15:37.640 times priced to sales, which is a big move in 0:15:37.680 --> 0:15:42.480 a multiple. But prior to twenty when multiples really started 0:15:42.480 --> 0:15:45.920 shooting higher, the nasacs never traded at that multiple, so 0:15:46.160 --> 0:15:49.360 we're still in elevated territory. UM. I think there's still 0:15:49.400 --> 0:15:53.040 excesses in some of the the no earnings types of companies. 0:15:53.560 --> 0:15:56.200 But if you're buying companies that are producing cash flow today, 0:15:56.880 --> 0:15:59.800 I do think there's a If you do have dry powder, 0:16:00.000 --> 0:16:03.400 you're in a good position because everything got thorn out yesterday. 0:16:03.560 --> 0:16:07.080 UM energy stocks, where the worst performing sector, actually would 0:16:07.080 --> 0:16:09.240 be adding to some oil stocks if I was buying 0:16:09.240 --> 0:16:14.520 equities today. So uh, In terms of what we could 0:16:14.560 --> 0:16:19.440 get from the inflation data coming out tomorrow, obviously inflation 0:16:19.560 --> 0:16:25.000 has been a serious point of worry for investors. Are 0:16:25.040 --> 0:16:28.440 we looking for signs of peak inflation? Do you see 0:16:28.480 --> 0:16:31.960 that in the offing? It makes sense. Yeah, So the 0:16:31.960 --> 0:16:36.200 consensus is expecting about eight point one percent inflation UM, 0:16:36.400 --> 0:16:38.600 and that's down from where it was the previous month 0:16:38.600 --> 0:16:40.880 a d eight and a half percent, So inflation is 0:16:40.960 --> 0:16:44.320 rolling over. And see lower oil prices, lower commodity prices 0:16:44.360 --> 0:16:48.360 in recent days, and the market's gone from a stagflationary 0:16:48.360 --> 0:16:51.880 backdrop to pricing in more risks of recession. So there 0:16:51.880 --> 0:16:55.480 has been demand destruction already on the higher prices UM. 0:16:55.560 --> 0:16:59.520 China's policies are also creating recessionary forces as well. So 0:17:00.080 --> 0:17:02.280 I do think we're at a local peak and inflation 0:17:02.400 --> 0:17:05.879 where we're going to have extended period of many months 0:17:05.920 --> 0:17:08.560 ahead of us with very high inflation, but we may 0:17:08.560 --> 0:17:10.200 have seen the peak in it for this year now. 0:17:10.560 --> 0:17:12.879 So are you thinking that that leaves room for even 0:17:12.920 --> 0:17:17.159 more of a defensive trade. Do you see defensive names 0:17:17.240 --> 0:17:22.520 moving higher in this environment? They could be an attraction 0:17:23.119 --> 0:17:27.399 out of some of the more expensive steglative names. People 0:17:27.440 --> 0:17:30.880 aren't looking for massive returns, they're looking for a relative safety. 0:17:31.000 --> 0:17:35.359 So the consumer staples utilities were strong performers yesterday. The 0:17:35.480 --> 0:17:39.000 valuation still don't excite me there, So the consumer stocks 0:17:39.000 --> 0:17:42.040 are still trading at twenty eight times earnings, which isn't 0:17:42.119 --> 0:17:44.359 cheap by any measure. But as you do get the 0:17:44.359 --> 0:17:46.439 stability of the castles and the earnings there, I can 0:17:46.480 --> 0:17:50.560 see those sectors attracting some capital while markets are sooballs out. 0:17:51.000 --> 0:17:53.359 So where are you looking for opportunity at this point? 0:17:53.400 --> 0:17:59.000 Is there opportunity in stocks? I would be buying semiconductors 0:17:59.080 --> 0:18:04.480 in tech, so they've been hit double digits yesterday. Um. 0:18:04.560 --> 0:18:06.720 Those are companies that are going to have pricing power 0:18:06.720 --> 0:18:11.560 and revenue growth and traded understandable valuations to MEUM, So 0:18:11.640 --> 0:18:14.159 within there, I think that makes sense. Energy stocks were 0:18:14.200 --> 0:18:18.440 down seven to twelve percent yesterday. I think EU does 0:18:18.520 --> 0:18:21.520 get to the point where they're putting restrictions on Russian 0:18:21.600 --> 0:18:23.959 oil and that's going to be a support for all prices. 0:18:24.000 --> 0:18:26.400 So those would the sectors I've been looking at today. 0:18:26.440 --> 0:18:30.280 Are you on the outlook for a recession this year? 0:18:30.359 --> 0:18:32.919 Do you see that happening and is there anything the 0:18:32.960 --> 0:18:36.960 FED can do about it? Um? In Europe, I expect 0:18:37.040 --> 0:18:39.400 a recession. I don't think the US will fall into 0:18:39.400 --> 0:18:41.800 a recession. So the Fed's gonna keep hiking, but I 0:18:41.840 --> 0:18:44.040 don't think they're going to want to provoke the recession. 0:18:44.080 --> 0:18:48.440 And while unemployments so low wage, built is still feast 0:18:48.520 --> 0:18:52.760 strong US consumers of the U S economy, and while 0:18:52.760 --> 0:18:55.640 people have jobs and earnings growth, um, I think that 0:18:56.119 --> 0:18:59.080 will prevent the recession of the United States. All right, 0:18:59.160 --> 0:19:02.359 as always, drink good to get your thoughts. Patrick Armstrong 0:19:02.920 --> 0:19:06.760 is the chief investment officer at Plurimi Wealth. As we 0:19:06.880 --> 0:19:09.480 take a look at a market that is of seeing 0:19:09.680 --> 0:19:13.159 some relief this morning after all the losses over the 0:19:13.240 --> 0:19:16.280 last several weeks. We have a pick up in futures, 0:19:16.280 --> 0:19:19.719 with SMP futures higher by thirty seven points right now, 0:19:19.880 --> 0:19:23.440 DAL futures a two undred fifty five, Nasdaq futures on 0:19:23.480 --> 0:19:26.040 the rise by a hundred seventy five points. The docks 0:19:26.040 --> 0:19:28.480 in Germany is up one point four percent, while the 0:19:28.480 --> 0:19:31.240 CAC in Paris is higher by almost nine tenths of 0:19:31.320 --> 0:19:34.560 one percent. Looking at treasuries, the ten year is higher 0:19:34.640 --> 0:19:37.280 by six thirty seconds now with the yield right at 0:19:37.320 --> 0:19:40.760 three percent. Yield on the two year is two point 0:19:40.840 --> 0:19:44.359 five nine percent. NIMEX Screwed is following by two percent, 0:19:44.440 --> 0:19:47.160 down two dollars nine cents at a hundred one dollars 0:19:47.160 --> 0:19:49.680 even a barrel and comics gold right now down a 0:19:49.760 --> 0:19:53.119 tenth percent, down two dollars forty cents at eighteen fifty 0:19:53.200 --> 0:19:56.160 six twenty for the ounce. Just ahead, we'll have more 0:19:56.280 --> 0:20:00.560 on the recent stock volatility and President Biden's focus on inflation. 0:20:00.960 --> 0:20:02.960 Five things you need to know to start your day 0:20:03.080 --> 0:20:09.639 On Bloomberg Game Bloomberg eleven three oh weather sunny, breezy, 0:20:09.680 --> 0:20:12.080 upper sixties Today, will be mostly sunny with a high 0:20:12.080 --> 0:20:15.520 in year seventy tomorrow and mid seventies. Mostly sunny sky 0:20:15.600 --> 0:20:18.520 by Thursday. Right now fifty three degrees in Central Park. 0:20:22.240 --> 0:20:26.760 Broadcasting live from the Bloomberg Interactive Broker Studio in New York. 0:20:26.880 --> 0:20:29.960 Bloomberg E Living Free on to Washington, d C. Bloomberg 0:20:30.920 --> 0:20:34.160 to Boston, Bloomberg one oh six one to San Francisco, 0:20:34.240 --> 0:20:37.920 Bloomberg sixt to the country, Sirius XM chandle one nine 0:20:38.320 --> 0:20:41.480 and around the globe the Bloomberg Business APT and Bloomberg 0:20:41.560 --> 0:20:50.879 Radio dot Com. This is Bloomberg Daybreak. It's six thirty 0:20:50.880 --> 0:20:53.440 on Wall Street. Good morning. I'm Nathan Hagar and I'm 0:20:53.480 --> 0:20:56.200 Karen Moscow, and we're just about three hours away from 0:20:56.200 --> 0:20:58.440 the open of US trading time for the five things 0:20:58.520 --> 0:21:00.560 you need to notice start your day. Brought to you 0:21:00.640 --> 0:21:03.720 by Interactive Brokers Global Analysts. It helps you find you 0:21:03.800 --> 0:21:08.639 global investment opportunities to diversify your portfolio and discover undervalued 0:21:08.680 --> 0:21:11.639 companies then they have greater growth potential. Try i v 0:21:11.760 --> 0:21:15.000 k our Global analysts today at ibkr dot com. Slash 0:21:15.040 --> 0:21:18.959 g a first, US futures higher a day after songs 0:21:18.960 --> 0:21:21.359 closed at their lowest level and over a year. Then 0:21:21.400 --> 0:21:24.040 as DAK slumped yesterday and as E raised over three 0:21:24.160 --> 0:21:27.320 trillion dollars since the start of April. Dan I've, senior 0:21:27.359 --> 0:21:30.760 equity analysts at Wedbush Securities, believes the Tech Heavy index 0:21:30.840 --> 0:21:34.280 is adjusting as we move past the pandemic. Long term, 0:21:34.320 --> 0:21:37.560 it's healthy, it's painful in the near term. You guys 0:21:37.640 --> 0:21:42.120 separate the work from home Thomas profit lists tact that's 0:21:42.160 --> 0:21:47.480 down se versus rid view is more the high quality stalwarts. 0:21:47.480 --> 0:21:51.440 Where we continue in terms of cloud software cyber security 0:21:51.480 --> 0:21:54.800 exposed means, Dan I've said. Wedbush Security says there could 0:21:54.840 --> 0:21:57.680 be more pain ahead for tech despite a strong long 0:21:57.800 --> 0:22:00.639 term outlook. Well meantime, carrying the federal serve as warning 0:22:00.640 --> 0:22:03.920 of deteriorating liquidity conditions across several markets. For more in 0:22:03.960 --> 0:22:06.200 the central banks, stay tuned for an interview with Cleveland 0:22:06.240 --> 0:22:09.240 Fed President Lauretta Mester live at eleven am Wall Street 0:22:09.280 --> 0:22:12.080 Time on Bloomberg Radio and Television. Well, Nathan, turning to 0:22:12.080 --> 0:22:14.680 the pump Now, the average retail price at gasoline hitting 0:22:14.680 --> 0:22:17.479 a record high four dollars and thirty seven cents a gallon. 0:22:17.560 --> 0:22:20.719 President Biden will address a rising prices later this morning. 0:22:20.920 --> 0:22:23.600 Tune into Bloomberg Radio at eleven thirty Wall Street Time 0:22:23.640 --> 0:22:26.960 to hear the president's full speech. Overseas, Karen, European stocks 0:22:26.960 --> 0:22:29.320 are higher, will shares in Hong Kong, Japan, and South 0:22:29.400 --> 0:22:33.400 Korea slumped. Mainland Chinese shares rebounded, but black Rock abandoned 0:22:33.400 --> 0:22:36.240 its bullish China coll a mid COVID lockdowns and as 0:22:36.280 --> 0:22:39.640 a dollar halts three day rally. This morning, Nathan. Bitcoin 0:22:39.760 --> 0:22:43.040