WEBVTT - Bloomberg Daybreak: May 17, 2022 - Hour 2 (Radio) 0:00:03.400 --> 0:00:06.760 Live from the Bloomberg Interacted Berger Studios. This is Bloomberg 0:00:06.840 --> 0:00:10.280 day Break for Tuesday, May seventeen two. Coming up, the 0:00:10.320 --> 0:00:13.640 sour stocks rise, ahead of key retail sales data and 0:00:13.720 --> 0:00:17.320 earnings from Walmart and Home Deep Boom new developments this morning, 0:00:17.320 --> 0:00:20.560 and Elon Musk's pursuit of Twitter where it Buffett changes 0:00:20.640 --> 0:00:23.560 Banks will explain, and the Senate moves to a passage 0:00:23.600 --> 0:00:26.880 of forty billion dollars in aid to Ukraine. President Biden 0:00:26.920 --> 0:00:30.360 heads the Buffalo today following Saturday's deadly mass shooting. Plus 0:00:30.360 --> 0:00:33.720 New York City's health chief urgess people to mask up. 0:00:34.000 --> 0:00:37.320 I'm Michael blarn More ahead, I'm trying Stashdower. And sports, 0:00:37.320 --> 0:00:40.120 The Yankees stay red hot with an easy win in Baltimore. 0:00:40.159 --> 0:00:45.400 The Islanders have hired a new coach. That's all training. 0:00:45.479 --> 0:00:48.720 Head on Bloomberg Daybreak on Bloomberg he Live in Free 0:00:48.720 --> 0:00:53.159 on New York Bloomberg one, Washington d C Bloomberg one 0:00:53.200 --> 0:00:57.680 oh six one, Boston Bloomberg nine sixties and Francisco Sirius 0:00:57.840 --> 0:01:00.920 XAM one nineteen and around the world Old on Bloomberg 0:01:01.000 --> 0:01:07.840 Radio dot Com and via the Bloomberg Business add and 0:01:08.000 --> 0:01:11.240 Good morning, I'm Karen Moscow and Tom John Tucker. Bloomberg 0:01:11.319 --> 0:01:12.920 Day Break being brought to you by B and Y 0:01:12.959 --> 0:01:17.039 Melon Pershing's Insight Conference back in person June fifteenth through 0:01:17.080 --> 0:01:20.480 the seventeenth in Grapevine, Texas of must attend event for 0:01:20.560 --> 0:01:24.520 financial advisors. Register today at Insight dot B and y 0:01:24.640 --> 0:01:28.360 melon dot com. And US futures are higher this morning 0:01:28.440 --> 0:01:30.040 six so went on Wall Street, and we check the 0:01:30.040 --> 0:01:33.000 markets every fifteen minutes throughout the trading day on Bloomberg 0:01:33.120 --> 0:01:35.759 S and P futures up about seventy five points down. 0:01:35.840 --> 0:01:38.640 Futures have four hundred eighty NASDAG features up two hundred 0:01:38.680 --> 0:01:41.920 eighty nine. Tenure Treasury down six thirty seconds, yield two 0:01:41.920 --> 0:01:44.240 point nine zero percent. They yield on the two year 0:01:44.360 --> 0:01:47.119 two point six zero percent. And now I'm ex screwed. 0:01:47.120 --> 0:01:50.200 Oil is up six tenths percent, John and Karen. The 0:01:50.320 --> 0:01:52.840 rising and futures follows a late day sell off on 0:01:52.960 --> 0:01:56.320 Wall Street. The tech heavy NASTAC was hardest hit, following 0:01:56.320 --> 0:01:59.920 more than one percent New York State manufacturing activity onlex 0:02:00.000 --> 0:02:04.160 ethidly contracted in May and that stoked concerns of slowing growth. 0:02:04.440 --> 0:02:08.120 Recession fears are real, according to the voyas senior portfolio 0:02:08.200 --> 0:02:11.519 manager Barbara Reinhardt, we think that the world is going 0:02:11.560 --> 0:02:15.239 to go from worrying about inflation to worrying about the recession, 0:02:16.040 --> 0:02:18.239 probably in just a few months time. So we think 0:02:18.280 --> 0:02:20.960 that this is the very beginning of the worries that 0:02:21.040 --> 0:02:24.880 we see happening for the for the economy. Well Investment 0:02:24.919 --> 0:02:28.360 Management's Barbara Reinhardt made the comments on Bloomberg Business Week 0:02:28.600 --> 0:02:33.120 her weekdays from two to find pm Eastern on Bloomberg Radio. Meantime, 0:02:33.200 --> 0:02:35.919 John Cash is king. That's according to the latest Bank 0:02:35.919 --> 0:02:39.160 of America Fund Managers survey, which shows cash levels among 0:02:39.200 --> 0:02:42.839 investors hit the highest level since September of two thousand one. 0:02:43.160 --> 0:02:46.760 Stegulation fears are the highest and fourteen years investors see 0:02:46.800 --> 0:02:50.280 hawkish central banks as the biggest risk, followed by a 0:02:50.320 --> 0:02:53.239 global recession. And speaking of central banks, we could get 0:02:53.240 --> 0:02:56.400 more clues on the path of interest rate hikes. Six 0:02:56.520 --> 0:03:00.000 FED officials speaking events today. The highlight comes this after 0:03:00.080 --> 0:03:02.839 do and when FED Share J Pale's interviewed for a 0:03:02.880 --> 0:03:06.000 live Wall Street Journal event. Well in Hia. Overnight, John 0:03:06.080 --> 0:03:10.440 starkshare Winners technology shares climbed as investors assessed China's efforts 0:03:10.480 --> 0:03:13.560 to stamp out COVID. We get the recab from Bloomberg's 0:03:13.600 --> 0:03:17.240 Juliette Sally in Singapore. Good morning, Juliette, Good morning, Karen. 0:03:17.280 --> 0:03:19.240 The m s c I Asia Pacific Index gained for 0:03:19.240 --> 0:03:22.000 a third session, its longest winning streaks since mid March. 0:03:22.200 --> 0:03:26.040 China's tech companies jumped on optimism. Beijing may ease up 0:03:26.120 --> 0:03:29.280 on a year long clampdown following a meeting between regulators 0:03:29.280 --> 0:03:32.800 and corporate giants. Adding to the positive time, Shanghai reporting 0:03:32.840 --> 0:03:36.200 three days of zero community transmission. This is a milestone 0:03:36.200 --> 0:03:39.280 that could lead officials to start unwinding the punishing lockdown 0:03:39.640 --> 0:03:42.400 and reopening. Stocks also rose in Japan after the nation 0:03:42.400 --> 0:03:45.560 announced it will allow small tourist groups on package tours 0:03:45.560 --> 0:03:49.480 into the country this month on an experimental basis. In Singapore, 0:03:49.520 --> 0:03:53.280 Juliette Sally, Bloomberg Daybreak, Thanks Juliet. Turning to corporate news, 0:03:53.680 --> 0:03:56.880 Fresh developments this morning and whether Elon Boss will pursue 0:03:56.880 --> 0:04:01.120 he's takeover of Twitter. Let's get the latest from Bloomberg's 0:04:01.800 --> 0:04:05.200 Good Morning, Good morning John. Elon Musk says he'll proceed 0:04:05.280 --> 0:04:08.520 with his forty four billion dollar Twitter takeover only if 0:04:08.560 --> 0:04:11.360 the social media giant proves that less than five percent 0:04:11.400 --> 0:04:14.040 of its accounts are fake. He shared even more of 0:04:14.080 --> 0:04:18.080 his skepticism yesterday at a Miami tech conference, estimating that 0:04:18.160 --> 0:04:22.360 bots make up at least twenty of all Twitter accounts. Now. 0:04:22.440 --> 0:04:24.839 Musk shocked the market last week when he tweeted that 0:04:24.880 --> 0:04:28.080 his offer was temporarily on hold and doubts are growing 0:04:28.120 --> 0:04:30.240 that he would be able to pull off his acquisition 0:04:30.560 --> 0:04:33.960 and that he may consider dropping his bidding price. Right now, 0:04:34.000 --> 0:04:37.239 shares of Twitter are down about two percent in early trading. 0:04:37.720 --> 0:04:40.320 Live in New York, I'm reneed a young Bloomberg day break. 0:04:40.760 --> 0:04:42.560 All right, Renita, thank you, while we move from one 0:04:42.560 --> 0:04:45.440 billionaire to another. Now with news from Lauren Buffett, the 0:04:45.440 --> 0:04:48.520 Berkshire Hathaway chairman, said goodbye to one a long time 0:04:48.640 --> 0:04:52.039 bank misteake and and if they bet on another one. 0:04:52.400 --> 0:04:54.960 Filing shows that Buffett ended his long running investment in 0:04:55.040 --> 0:04:57.679 Wells Fargo in the first quarter and has now invested 0:04:57.760 --> 0:05:00.440 roughly two point nine billion dollars in s A group 0:05:00.640 --> 0:05:02.720 shares a city. You're up more than four percent this 0:05:02.800 --> 0:05:05.120 morning and car big day on the retail front just 0:05:05.160 --> 0:05:08.320 a few minutes ago. Home Depot reported first quarter sales 0:05:08.400 --> 0:05:12.440 above estimates. We're also gonna hear later this morning from Walmart. 0:05:12.640 --> 0:05:15.719 That's gonna preview on that from Bloomberg's Tom Buzby. The 0:05:15.760 --> 0:05:19.000 focus for investors is whether sales continued to grow at 0:05:19.040 --> 0:05:23.279 the nation's biggest retailer and largest grocery seller amidst stubbornly 0:05:23.360 --> 0:05:26.480 high inflation, or whether consumers were forced to pull back 0:05:26.520 --> 0:05:30.400 a bit last quarter. Bloomberg consensus calls for adjusted earnings 0:05:30.400 --> 0:05:32.800 per share of a dollar forty eight on revenues of 0:05:32.880 --> 0:05:37.920 just over nine million dollars and comp usales forecast rise 0:05:37.920 --> 0:05:41.839 two and a quarter percent. Tom Busby, Bloomberg Daybreak, Great Tom, 0:05:41.839 --> 0:05:44.280 thank you. Also, this morning, before the market opens, the 0:05:44.360 --> 0:05:47.359 government issues economic data on retail sales, we get a 0:05:47.360 --> 0:05:51.440 preview from Bloomberg's Lisa Mateo. The median forecast calls for 0:05:51.520 --> 0:05:55.520 a game, but Bloomberg Economics anticipates slower growth in April 0:05:55.560 --> 0:05:59.760 retail sales. The reason signs of stress as inflation chips 0:05:59.800 --> 0:06:03.279 away at household finances. Consumers are turning to credit to 0:06:03.279 --> 0:06:06.640 pay for essentials such as food and gasoline. That doesn't 0:06:06.640 --> 0:06:11.560 bode well for discretionary spending. Lisa Matteo Bloomberg Daybreak. Thanks Luca, 0:06:11.600 --> 0:06:14.200 we now turn to developments involving the war in Europe. 0:06:14.240 --> 0:06:18.000 Senators have advanced a Ukrainian aid bill with wide support, 0:06:18.440 --> 0:06:22.640 Amy Morris since DeSales from our Bloomberg room in Washington. 0:06:23.000 --> 0:06:25.800 The Senate overwhelmingly moved the bill forward with a vote 0:06:25.800 --> 0:06:28.560 of eighty one to eleven. The measure would give forty 0:06:28.560 --> 0:06:31.799 billion dollars an aid to Ukraine, including money for weapons 0:06:31.880 --> 0:06:35.839 training and humanitarian aid. Now this was a procedural vote. 0:06:35.839 --> 0:06:38.279 A final vote on the measure is expected as early 0:06:38.360 --> 0:06:42.120 as tomorrow if all lawmakers waive rules on debate, and 0:06:42.120 --> 0:06:44.080 then from there it would go to the President's desk. 0:06:44.640 --> 0:06:47.560 Last week, Senator Rand Fall of Kentucky held up the 0:06:47.600 --> 0:06:50.480 bill over concerns about the cost and how the money 0:06:50.480 --> 0:06:54.600 would be spent in Washington. I'm anymore as Bloomberg Daybreak right, Amy, 0:06:54.640 --> 0:06:57.400 thank you. And it appears that Finland and Sweden's bid 0:06:57.480 --> 0:07:00.560 to join NATO is hitting a roadblock. Turkey's President er 0:07:00.640 --> 0:07:03.240 Towan has put the brakes on the move, saying he 0:07:03.320 --> 0:07:05.840 won't allow the countries to join the alliance because of 0:07:05.880 --> 0:07:09.480 their stances on Kurdish militants. Erdman calls Sweden a nesting 0:07:09.520 --> 0:07:12.440 ground for terrorists. Even if he doesn't end up locking 0:07:12.480 --> 0:07:15.960 membership are Towan could extract concessions from NATO to allow it. 0:07:16.480 --> 0:07:24.120 And this is Bloomberg. Thanks Karen's six oh sipol of 0:07:24.160 --> 0:07:26.160 Wall Street, and let's bring in Michael Barne now to 0:07:26.200 --> 0:07:28.120 find out what else is going on in New York 0:07:28.160 --> 0:07:31.680 and around the world. John, thank you kindly, Sarah. President 0:07:31.720 --> 0:07:35.040 Biden heads the Buffalo, New York today after Saturday's deadly 0:07:35.120 --> 0:07:38.040 mass shooting at a supermarket. Authorities say the gunman is 0:07:38.040 --> 0:07:42.080 an eighteen year old white supremacist. Buffalo Mayor Byron Brown. 0:07:42.600 --> 0:07:50.040 It's been hard. Uh, it's shocking, it's painful, and um, 0:07:50.080 --> 0:07:54.559 I've worked hard to hold this community together. Mayor Brown 0:07:54.600 --> 0:07:57.440 says he will also talk with President Biden about federal 0:07:57.480 --> 0:08:00.480 gun laws in New York. Of vigils held the Harlem 0:08:00.560 --> 0:08:03.600 Church last night for the victims in Buffalo. Among those 0:08:03.600 --> 0:08:07.160 in attendance at Bethelo Gospel Assembly, New York Attorney General 0:08:07.240 --> 0:08:11.960 Letitia James. We are in pain for the thirteen individuals 0:08:12.000 --> 0:08:14.760 who were shot, in the ten beautiful lives that were lost, 0:08:15.560 --> 0:08:18.760 and for their families. That are suffering and for the 0:08:18.760 --> 0:08:24.000 Buffalo community that is in so much pain, so much anger. 0:08:24.480 --> 0:08:27.440 Along with a G James, New York Mayor Eric Adams 0:08:27.480 --> 0:08:31.560 also spoke. Adams talked about Buffalo and an eleven year 0:08:31.600 --> 0:08:34.120 old girl who was shot and killed by a gunman 0:08:34.600 --> 0:08:37.360 riding a scooter in the Longwood section of the Bronx 0:08:37.480 --> 0:08:41.520 last night. We have to be consistent because if you 0:08:41.600 --> 0:08:44.920 take the life of young Kiera merely because of which 0:08:45.000 --> 0:08:49.000 she lived, you no more less demoniiced than a person 0:08:49.040 --> 0:08:52.120 that took the life of those ten innocent people in Buffalo. 0:08:52.200 --> 0:08:55.760 Mayor Adams also slam social media. New York City health 0:08:55.760 --> 0:08:58.800 officials urging New Yorkers to wear masks in all indoor 0:08:58.840 --> 0:09:02.720 public settings as the city approaches high risk COVID nineteen 0:09:02.760 --> 0:09:05.840 alert status. New York City has been averaging around thirty 0:09:06.520 --> 0:09:09.520 reported new cases of COVID nineteen per day over the 0:09:09.520 --> 0:09:13.280 past week. Five states old primary elections today ahead of 0:09:13.320 --> 0:09:16.559 the November mid terms. In Pennsylvania, both parties hope to 0:09:16.559 --> 0:09:19.560 pick up an open Senate seat. In the Republican primary. 0:09:19.600 --> 0:09:23.600 TV star Dr Memon Oz has former President Trump's endorsement. 0:09:23.800 --> 0:09:27.480 Oz is running against former Bridgewater CEO Dave McCormick. But 0:09:27.960 --> 0:09:31.800 conservative commentator Kathy Barnett is surging in the polls Bloomberg 0:09:31.800 --> 0:09:35.600 Government Elections, reported Greg Darrow. Sometimes when we have races 0:09:35.600 --> 0:09:38.400 where we have two front runners beating up on each other, 0:09:38.440 --> 0:09:41.079 sometimes a third candic can kind of steak up there 0:09:41.120 --> 0:09:44.560 by surprise. And but Barnett did rise in the polls 0:09:44.559 --> 0:09:48.079 in the last seven or ten days bloombergs. Greg Darrow says, 0:09:48.200 --> 0:09:51.200 as for the Democrats, Lieutenant Governor John Fetterman, who had 0:09:51.240 --> 0:09:53.959 a health scare, probably has enough of a lead to 0:09:54.000 --> 0:09:56.720 still win the primary Global news twenty four hours a 0:09:56.800 --> 0:09:59.760 day on air and on Bloomberg Quick Tank, powered by 0:09:59.760 --> 0:10:02.160 more are than seven hundred journalists and analysts, are more 0:10:02.160 --> 0:10:05.360 than a hundred twenty countries. Michael bar this is Bloomberg, John, Michael, 0:10:05.400 --> 0:10:11.839 thank you. He had six ten on the walls free 0:10:12.000 --> 0:10:14.760 time down for the Bloomberg Sports update. He was John Stesshower. 0:10:14.840 --> 0:10:17.360 Thanks John. Here in mid May, the Yankee still yet 0:10:17.400 --> 0:10:19.559 to reach double figures in the lost called another way 0:10:19.559 --> 0:10:21.440 and this one in Baltimore, with the big hit coming 0:10:21.480 --> 0:10:25.960 from an unlikely source is hiding there down the right 0:10:26.000 --> 0:10:29.800 field line, a long number cent and there and it 0:10:29.920 --> 0:10:35.200 is it is a home run. Wow. He hit one 0:10:35.400 --> 0:10:38.200 right down the line and it just got over the 0:10:38.280 --> 0:10:42.200 high wall near the pole. Well, that is really something. 0:10:42.200 --> 0:10:45.160 A three run home run for Travino, w f A 0:10:45.200 --> 0:10:47.360 and the Yankees first home run hit by a catcher 0:10:47.440 --> 0:10:50.960 Jose Trevino Kyle Hagas Yoka, both batting under two hundred. 0:10:51.000 --> 0:10:53.240 It's hardly hurt the Yankees. They are announced twenty six 0:10:53.280 --> 0:10:55.959 and nine nineteen wins the last twenty two games to 0:10:56.000 --> 0:10:58.400 beat the Oriel six to two. Josh Donaldson Anthony Rizzo 0:10:58.440 --> 0:11:00.000 with back to back homers of the ninth that ain't 0:11:00.240 --> 0:11:02.760 Luis Severino allowed only one hit. The out hit the 0:11:02.840 --> 0:11:04.920 Orls eleven to three the Yanks and only allowed seven 0:11:05.000 --> 0:11:07.760 hits over the last two games. Mets and Cardinals reined 0:11:07.760 --> 0:11:10.839 out City Field straight doubleheader today for the weekend F 0:11:11.200 --> 0:11:14.199 seven Game seven's. The NBA and NHL playoffs took the 0:11:14.280 --> 0:11:15.920 night off, but back tonight with the start of the 0:11:16.040 --> 0:11:20.120 NBA's Eastern Conference Finals Celtics and Heat in Miami. They 0:11:20.120 --> 0:11:22.000 met in the East Finals two years ago in Miami 0:11:22.040 --> 0:11:25.040 won that series. Stanley Cup second round starts tonight with 0:11:25.040 --> 0:11:27.600 an in state battle Tampa Bay and Ford. Also St. 0:11:27.640 --> 0:11:31.640 Louis at Colorado Rangers and Hurricanes Game one in Raleigh tomorrow. 0:11:31.640 --> 0:11:34.880 The Islanders, who just fired their coach, Barry Trots, promoted 0:11:35.280 --> 0:11:38.760 his assistant Lee Lambert. Pg H Championship teas off Thursday 0:11:38.760 --> 0:11:41.280 in Tulsa. Def Enny Champ. Phil Mickelson not playing, but 0:11:41.360 --> 0:11:44.680 Tiger woods Is says his legs, nearly injured in that 0:11:44.760 --> 0:11:48.160 car accident last year, was feeling better. John Stash Atward 0:11:48.160 --> 0:11:50.800 Bloomberg Sports, John alright, thanks John, ahead of the Cans 0:11:50.800 --> 0:11:52.520 show for the the Lord Walls freed right now, the DAL 0:11:52.679 --> 0:11:56.760 futures of five under three points, smp E Mini futures 0:11:56.840 --> 0:12:00.679 up seventy four points, and the nasdack futures are up 0:12:00.679 --> 0:12:04.079 two D seventy six. You're listening to Bloomberg Day Break 0:12:05.920 --> 0:12:08.400 Day Preak, brought you by the Jewish Communal Thought j 0:12:08.480 --> 0:12:11.080 c f' donor advised thought is the smart choice to 0:12:11.120 --> 0:12:14.760 manage your philanthropy, especially in times of crisis. Make your 0:12:14.800 --> 0:12:18.840 giving impactful. Visit j c F and Y dot org 0:12:21.960 --> 0:12:25.360 markets headlines and breaking news twenty four hours a day 0:12:25.480 --> 0:12:28.480 at Bloomberg dot com, the Bloomberg Business Apt and at 0:12:28.480 --> 0:12:38.520 Bloomberg quicktape is a Bloomberg business lash and I'm Karen 0:12:38.600 --> 0:12:42.160 Moscow and we continue to watch shares of Twitter this 0:12:42.320 --> 0:12:44.959 morning after Elon must declared he won't proceed with his 0:12:45.120 --> 0:12:48.360 forty four billion dollar takeover unless the social media giant 0:12:48.400 --> 0:12:51.360 can prove both make up fewer than five percent of 0:12:51.440 --> 0:12:54.560 its users, and Twitter shares are down more than two 0:12:54.559 --> 0:12:59.280 percent this morning. Meanwhile, futures are on the rise. Stocks 0:12:59.280 --> 0:13:02.920 in Europe gay meaning as well, and risk appetite is 0:13:02.960 --> 0:13:05.640 returning to markets that have been hurt by concerns about 0:13:05.679 --> 0:13:09.400 global economic growth and searching prices as well as policy tightening. 0:13:09.600 --> 0:13:11.880 We check the markets every fifteen minutes throughout the trading 0:13:11.960 --> 0:13:14.360 day on Bloomberg. Right now, is in P futures up 0:13:14.440 --> 0:13:19.199 seventy one points, Dow futures are up four hundred ninety 0:13:19.200 --> 0:13:21.480 one and NASDAC futures have two hundred sixty eight The 0:13:21.559 --> 0:13:24.120 decks in Germany's up one point six percent. At ten 0:13:24.200 --> 0:13:27.040 year treasury down eight thirty seconds, the Yale two point 0:13:27.080 --> 0:13:29.959 nine one percent yield on the two year two point 0:13:30.040 --> 0:13:34.080 six one percent. NIMEX crude oil is up seven tenths percent, 0:13:34.160 --> 0:13:36.240 or eighty five cents and a hundred fifteen dollars five 0:13:36.240 --> 0:13:39.199 cents a barrel, and comic schools have seven tenths percent 0:13:39.280 --> 0:13:41.920 or twelve dollar sixty cents at eighteen twenty six sixty 0:13:41.960 --> 0:13:44.480 an ounce, the Euro one point oh four nine six 0:13:44.480 --> 0:13:46.840 against the dollar, British found one point two four six 0:13:46.880 --> 0:13:49.280 four the end at one twenty nine point two four 0:13:49.360 --> 0:13:52.920 and Bitcoin this morning higher up to percent at thirty thousand, 0:13:53.000 --> 0:13:55.920 five hundred dollars and as a Bloomberg business flaves. Now 0:13:55.960 --> 0:13:58.120 here's Michael bar with more on what's going on around 0:13:58.120 --> 0:14:01.080 the world. Muchael Karen, thank you for much. President Biden 0:14:01.120 --> 0:14:03.599 travels to Buffalo, New York this morning to meet with 0:14:03.640 --> 0:14:06.920 the families of the victims of saturday supermarket shooting had 0:14:07.000 --> 0:14:09.640 left ten people dead, all of them black. This as 0:14:09.640 --> 0:14:12.640 we learned the eighteen year old suspected shooter was allegedly 0:14:12.679 --> 0:14:17.080 inspired by the Races Great Replacement theory. Five states will 0:14:17.120 --> 0:14:20.760 hold primary elections today. Pennsylvania is trying to decide and 0:14:20.960 --> 0:14:23.760 open Senate seat ahead of the mid terms. Other states 0:14:23.760 --> 0:14:29.000 holding primaries are Idaho, Kentucky, North Carolina, and Oregon. In baseball, 0:14:29.040 --> 0:14:31.680 the Yankees beat the Orioles six to the Mets Games 0:14:31.680 --> 0:14:34.640 reigned out, the Red Sox and Giants won the Nationals, 0:14:34.640 --> 0:14:37.920 and A's lost. Global news twenty four hours a day 0:14:38.040 --> 0:14:41.200 on air and on Bloomberg Quicktake, powered by more than 0:14:41.280 --> 0:14:43.800 twenty seven hundred journalists and analysts more than a hundred 0:14:43.840 --> 0:14:46.920 twenty countries. Michael bar this is Bloomberg, John, Thank you, sir. 0:14:47.200 --> 0:14:50.040 It is six twenty on Wall Street. We were lying 0:14:50.080 --> 0:14:54.960 for the Bloomberg into Antibroker's studios. This is Bloomberg Daybreak. Well, 0:14:54.960 --> 0:14:57.520 the parade of earnings continuing this morning. Some of the 0:14:57.560 --> 0:15:00.840 retailers we heard a few minutes ago. For Home Depot, 0:15:01.360 --> 0:15:03.560 they're boosting the outlook for the year. They had a 0:15:03.640 --> 0:15:08.080 surprise increase in first quarter revenue, continued strong demand for 0:15:08.320 --> 0:15:12.760 home improvements supplies. And also this morning when you get 0:15:12.800 --> 0:15:17.000 the fiscal first quarter results before the market open from Walmart, 0:15:17.120 --> 0:15:20.320 let's get a preview now from Jen Bartashes, senior analysts 0:15:20.600 --> 0:15:25.200 with Bloomberg Intelligence. Every time I count out the American consumer, 0:15:25.480 --> 0:15:30.280 I'm dead wrong. Jan Good morning, John. What are the 0:15:30.320 --> 0:15:33.960 results gonna tell us from Walmart? Abount the American consumer 0:15:34.080 --> 0:15:37.800 in the midst of roaring inflation. Well, it's a it's 0:15:37.840 --> 0:15:39.920 an interesting thing because I think a lot of people 0:15:39.920 --> 0:15:42.440 are looking to Walmart to understand the state of the 0:15:42.520 --> 0:15:45.160 average consumer in the United States, and so it will 0:15:45.200 --> 0:15:48.160 be really a read through for other retailers in terms 0:15:48.160 --> 0:15:51.600 of how that person is performing. But all indicators show 0:15:51.680 --> 0:15:54.520 that people are still spending. Um. It may not be 0:15:54.600 --> 0:15:56.960 as aggressively as it was last year when people had 0:15:57.000 --> 0:16:01.120 stimulus funds in their pocket, but they are still they're spending. Okay, 0:16:01.160 --> 0:16:03.000 So the top line, let's what are sales going to 0:16:03.080 --> 0:16:07.360 look like for Walmart? Well, revenue is estimated to commanded 0:16:07.360 --> 0:16:09.560 about a hundred and thirty nine billion dollars for the 0:16:09.640 --> 0:16:12.200 quarter UM, and that translates to an adjusted DPS of 0:16:12.200 --> 0:16:15.120 a dollar forty eight um in terms of same store sales. 0:16:15.640 --> 0:16:18.160 Right now, consensus is expecting something that's at the high 0:16:18.280 --> 0:16:20.760 end of the range that Walmart gave in terms of 0:16:20.800 --> 0:16:23.520 what they were expecting UM. But what we see when 0:16:23.560 --> 0:16:26.080 we go to stores or that people are in the stores, 0:16:26.240 --> 0:16:28.440 and so it does seem that you know, there's a 0:16:28.480 --> 0:16:30.080 good chance that they could come in at that top 0:16:30.200 --> 0:16:32.280 end of that range. What are the comps? Is It 0:16:32.360 --> 0:16:34.080 going to be a difficult one because that you have 0:16:34.120 --> 0:16:37.359 the stimulus checks last year. It is a difficult comparison 0:16:37.360 --> 0:16:40.880 to last year. Last year, people had expended unemployment, they 0:16:40.880 --> 0:16:44.760 had stimulus funding, um. And at the same time they 0:16:44.760 --> 0:16:49.000 were also many people were getting much higher salaries in 0:16:49.080 --> 0:16:51.520 terms of hourly pay than they had been before. So 0:16:51.600 --> 0:16:53.600 there was a lot of spending that was happening, and 0:16:53.600 --> 0:16:55.680 a lot of it was on discretionary items. So thanks 0:16:55.680 --> 0:16:58.440 for entertainment or for your home. Um. This year, there's 0:16:58.440 --> 0:17:02.400 still a lot of spending. It's maybe shifting categories however, UM. 0:17:02.440 --> 0:17:04.480 So people may be spending a little bit more on food, 0:17:04.480 --> 0:17:07.640 a little bit less on decorations. Um. But the net 0:17:07.680 --> 0:17:10.760 effect is that the comparisons are difficult, but we're still 0:17:10.760 --> 0:17:13.680 expecting to see positive growth over last year. Okay. In 0:17:13.760 --> 0:17:17.919 terms of inflation, can Walmart pass along price increases or 0:17:17.960 --> 0:17:21.360 does that eat into their their margins that they swallow 0:17:21.400 --> 0:17:25.359 that they have the ability to swallow some, which which 0:17:25.560 --> 0:17:27.800 you know is part of why we think that gross 0:17:27.800 --> 0:17:30.119 margin is going to stay, you know, fairly flat or 0:17:30.119 --> 0:17:32.320 contract a little bit just because of the higher cost. 0:17:32.680 --> 0:17:35.080 But because Walmart is such a large company, they have 0:17:35.119 --> 0:17:38.239 so much scale that they do have negotiating power with 0:17:38.359 --> 0:17:42.600 their suppliers to really keep prices under control, and where possible, 0:17:42.600 --> 0:17:44.639 they try to pass that through to their customers and 0:17:44.680 --> 0:17:47.639 not raise prices until they absolutely have to. Does Walmart 0:17:47.680 --> 0:17:49.600 have a credit card? I'm trying to engage whether or 0:17:49.600 --> 0:17:51.840 not people are spending more on credit or is it 0:17:52.240 --> 0:17:55.560 cash right up front? Um? Well, they certainly a lot 0:17:55.560 --> 0:17:58.480 of people in stores they spend with with with credit 0:17:58.480 --> 0:18:02.200 cards at Walmart. Our first of five serve credit card 0:18:02.280 --> 0:18:04.480 data that we have that we look at shows that 0:18:04.640 --> 0:18:07.640 spending for the mass merchants UM started to tail off 0:18:07.680 --> 0:18:09.400 a little bit in April, and that's when we saw 0:18:09.440 --> 0:18:13.160 the height of the comparison to stimulus funding last year. UM. 0:18:13.200 --> 0:18:17.080 So that is happening, um. But um, it's it seems 0:18:17.119 --> 0:18:19.760 that at the beginning of the quarter was stronger we 0:18:19.800 --> 0:18:22.680 had to think a very solid Easter UM, and then 0:18:22.920 --> 0:18:26.360 the difficult comparisons for stimulus really kicked in. We get 0:18:26.359 --> 0:18:29.320 the retail sales numbers from the government. I'm curious, do 0:18:29.359 --> 0:18:34.160 you is Walmart a better indicator than government figures? Well, 0:18:34.200 --> 0:18:37.080 it's hard to say. I think the benefit the benefit 0:18:37.080 --> 0:18:39.520 of looking at a company like Walmart is that a 0:18:39.680 --> 0:18:42.960 huge number of people across the country shop there, um, 0:18:43.000 --> 0:18:45.400 and so it really does tell you kind of what 0:18:45.480 --> 0:18:49.160 your average consumer is, how they're how they're behaving, um. 0:18:49.320 --> 0:18:51.680 And you know, people buy food at Walmart, they also 0:18:51.720 --> 0:18:54.399 buy non food items at Walmart, so they get a 0:18:54.480 --> 0:18:59.320 very good idea of how people are behaving. But when 0:18:59.359 --> 0:19:01.680 you look at a reach killer that's that big, what's 0:19:02.000 --> 0:19:04.040 the one thing that you're going to really latch on 0:19:04.080 --> 0:19:07.160 as soon as the earnings come across and uh more 0:19:07.200 --> 0:19:10.840 details later in the morning. Well, you know, everybody looks 0:19:10.880 --> 0:19:13.160 at the comps, which are important, but I'm also very 0:19:13.600 --> 0:19:16.280 looking very closely at where e commerce is because that 0:19:16.440 --> 0:19:18.640 is a business they've invested heavily in, so we want 0:19:18.680 --> 0:19:20.920 to make sure that it's still growing, although the growth 0:19:21.000 --> 0:19:23.199 rate is probably going to be a little lower. And 0:19:23.240 --> 0:19:27.760 then breaking down that comparison um sales number into how 0:19:27.840 --> 0:19:31.240 the traffic meaning how many people are going into the stores, 0:19:31.280 --> 0:19:33.320 and then the ticket is how much are people spending 0:19:33.359 --> 0:19:35.600 each time they're in the store. So that will give 0:19:35.640 --> 0:19:38.280 us a lot more insight into how the consumer is behaving. 0:19:38.680 --> 0:19:41.320 All right, Jen always applies to appreciated. Jen Bartash is 0:19:41.400 --> 0:19:45.960 from Bloomberg Intelligence. Bloomberg Intelligence providing unique real time research 0:19:46.119 --> 0:19:49.439 and context on the industries at all the market and 0:19:49.560 --> 0:19:53.240 government factors that impact business terminal customers. You can access 0:19:53.280 --> 0:19:57.640 this function at b I go. Right now the dalphiachs 0:19:57.760 --> 0:20:02.280 op four hundred eighty seven points SMP futures up sixty nine. 0:20:02.359 --> 0:20:07.560 You're listening to Bloomberg day Break, the Bloomberg Weather from 0:20:07.680 --> 0:20:11.760 Rob carollin sunny and breezy. The high temperature seventy five today, 0:20:12.080 --> 0:20:14.680 clear and breezeat tonight, glows in the mid fifties. Tomorrow 0:20:14.680 --> 0:20:23.080 Morris sunshine breezy seventy to seventy five degrees. Broadcasting live 0:20:23.240 --> 0:20:27.159 from the Bloomberg Interactive Broker Studio in New York, Bloomberg 0:20:27.200 --> 0:20:31.280 Eleving creon to Washington, d C, Bloomberg on to Boston, 0:20:31.400 --> 0:20:34.760 Bloomberg one oh six one to San Francisco, Bloomberg NOME 0:20:34.880 --> 0:20:37.760 sixty to the Country Sirius XM to A one ninet 0:20:38.080 --> 0:20:41.240 and around the globe the Bloomberg Business at and Bloomberg 0:20:41.320 --> 0:20:50.440 Radio dot Com. This is Bloomberg day Break. So it's 0:20:50.480 --> 0:20:53.000 thirty on Wall Street. Good morning. I'm John Tucker and 0:20:53.040 --> 0:20:55.879 I'm Karen Moscow. We are just about three hours away 0:20:55.920 --> 0:20:57.840 from the open of US Trading. It's time for the 0:20:57.880 --> 0:21:00.200 five things you need to Notice start your day. Brought 0:21:00.240 --> 0:21:03.960 to you by Interacted Brokers Simple ib k are Global 0:21:04.000 --> 0:21:07.320 Trader app depositing your local currency and trade stocks in 0:21:07.320 --> 0:21:10.120 the US, Europe and Asia. Start your free trial at 0:21:10.160 --> 0:21:13.840 ib k r dot com Slash Global Trader up. First 0:21:13.920 --> 0:21:17.159 fresh developments this morning on Elon musk pursuit of Twitter, 0:21:17.359 --> 0:21:20.000 Bloomberg's or Need a Young joins US Live with more. 0:21:20.119 --> 0:21:23.080 Good Morning Nina, Good morning Karen. Elon Musk says he'll 0:21:23.080 --> 0:21:26.760 proceed with his forty four billion dollar Twitter takeover only 0:21:26.800 --> 0:21:29.520 if the social media giant proves that less than five 0:21:29.560 --> 0:21:33.000 percent of its accounts are fake. Dan I'ves, Managing director 0:21:33.040 --> 0:21:37.040 of Web Bush Securities, beliefs Musk has other intentions. I 0:21:37.119 --> 0:21:39.800 believe this is really ultimately must getting cold feet with 0:21:39.840 --> 0:21:43.440 the deal, looking for a scapegoat. It's really turned into 0:21:43.880 --> 0:21:46.360 what I said it was the Twilight Zone situation. He's 0:21:46.359 --> 0:21:50.320 trying to ballot the deal, billion dollar breakup or drive 0:21:50.400 --> 0:21:54.000 a much significantly lower priced Twitter's back into the wall. 0:21:54.760 --> 0:21:57.920 Dan I's of what Bush Securities made the comments earlier 0:21:58.000 --> 0:22:01.200 on Bloomberg Daybreak, Twitter relief used to statement saying it's 0:22:01.240 --> 0:22:04.919 committed to completing the transaction when the agreed price in terms. 0:22:05.359 --> 0:22:07.480 Live in New York, I'm really need a Young Bloomberg 0:22:07.520 --> 0:22:09.800 day break, all right, we need to thank you. Shares 0:22:10.000 --> 0:22:12.880 of Twitter right now, they are down about three percent 0:22:13.359 --> 0:22:16.560 in early treating the US futures are on the rise, 0:22:16.640 --> 0:22:20.320 bonds are falling after yesterday's late sell off. Nancy Davy, 0:22:20.359 --> 0:22:23.600