WEBVTT - Bloomberg Daybreak: April 11, 2022 - Hour 1 (Radio) 0:00:01.520 --> 0:00:04.800 Live from the Bloomberg Interactive Brooker Studios. Is is is Bloomberg 0:00:04.920 --> 0:00:09.320 Daybreak for Monday, April eleventh coming up this hour. Ukraine 0:00:09.360 --> 0:00:12.719 expects Russia to whiten it's offensive this week, and Annuel 0:00:12.800 --> 0:00:15.520 mcrown is set to face his nationalist rival Marine La 0:00:15.600 --> 0:00:18.000 Penn in the final round of the French election. A 0:00:18.120 --> 0:00:22.120 surgeon Treasury yield sends ripples across global markets, and Twitter 0:00:22.200 --> 0:00:24.759 shares line for Elon Musk turns down a spot on 0:00:24.800 --> 0:00:28.440 the company's board. New York Mayor Eric Adams desks positive 0:00:28.480 --> 0:00:31.400 for COVID plus. The Biden administration plans to announce new 0:00:31.520 --> 0:00:35.159 rules today around ghost guns. I'm like La barn Or ahead, 0:00:35.400 --> 0:00:38.080 I'm John Stash toward sports losses for the Yankees and 0:00:38.159 --> 0:00:41.000 Matts wins with the Knicks and Nets, and Scottie Scheffler 0:00:41.080 --> 0:00:46.919 won the Masters. That's alls trendy head on Bloomberg Daybreak 0:00:47.240 --> 0:00:51.560 on Bloomberg eleven three on New York Bloomberg ninety nine one, Washington, 0:00:51.680 --> 0:00:55.280 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:55.320 --> 0:00:59.960 sixties and Francisco Sirius XAM one nineteen and around the world. 0:01:00.040 --> 0:01:03.360 Then Bloomberg Radio dot Com and via the Bloomberg Business. 0:01:07.520 --> 0:01:10.600 Good morning, I'm Nathan Hagar and I'm Karen Moscow, and 0:01:10.680 --> 0:01:13.360 futures are falling to start the week. We're coming up 0:01:13.360 --> 0:01:14.920 to five oh one on Wall Street and we check 0:01:14.959 --> 0:01:18.000 the markets every fifteen minutes throughout the trading day. On Bloomberg. 0:01:18.120 --> 0:01:20.880 SNP futures down twenty five points this morning. Down Future 0:01:20.920 --> 0:01:24.840 is down ninety six Nasdack futures down one four. Ten 0:01:24.920 --> 0:01:28.000 year treasury down thirteen thirty seconds, yield two point seven 0:01:28.080 --> 0:01:30.759 five percent, and the yield on the two year two 0:01:30.840 --> 0:01:34.319 point five seven percent. Nieme X screwed oil is down 0:01:34.360 --> 0:01:37.800 two point four percent and ninety eight cents and barrel. 0:01:37.880 --> 0:01:39.760 Nathan well Karen will have more on the markets in 0:01:39.840 --> 0:01:42.160 a minute, but first the latest on the war in Ukraine. 0:01:42.440 --> 0:01:45.840 Austria's chancellor says he will meet with Russian President Vladimir 0:01:45.840 --> 0:01:49.800 Putin in Moscow today as the fighting intensifies in Ukraine's East. 0:01:50.080 --> 0:01:53.040 Ukraine says Russian missiles destroyed the airport in their fourth 0:01:53.080 --> 0:01:57.240 largest city, Denepro. President Vladimir Zelinski says he expects Russia 0:01:57.280 --> 0:01:59.760 to turn to even more large scale action this week. 0:02:00.080 --> 0:02:03.080 In an interview on CBS is sixty minutes. Correspondent Scott 0:02:03.120 --> 0:02:06.200 Pelly asked Zelenski what Ukraine needs from the US and 0:02:06.280 --> 0:02:12.160 NATO weapons Number One, They need to be very serious 0:02:12.200 --> 0:02:16.760 about it. They definitely understand what I'm talking about. Right now. 0:02:17.360 --> 0:02:20.680 They have to supply weapons to Ukraine as if they 0:02:20.680 --> 0:02:25.160 were defending themselves and their own people. Ukrainian President voladimir's 0:02:25.200 --> 0:02:27.600 Lensky spoke on CBS IS sixty minutes, which can be 0:02:27.639 --> 0:02:32.480 heard every Sunday on Bloomberg in Washington. Meanwhile, Nathan cries 0:02:32.480 --> 0:02:35.360 are growing louder around the world for Russia to face 0:02:35.440 --> 0:02:38.400 a war crimes tribunal. We get the story from Bloomberg's 0:02:38.400 --> 0:02:41.639 head Baxter n s A director Jake Sullivan says, it's 0:02:41.639 --> 0:02:44.800 gone beyond the pale. I think we can all say 0:02:44.840 --> 0:02:48.240 that these are mass atrocities, These are war crimes. These 0:02:48.240 --> 0:02:52.320 are shocking and brutal ax They are completely unacceptable, beyond 0:02:52.360 --> 0:02:55.480 the pale for the international community. Sullivan on ABC has 0:02:55.520 --> 0:02:59.240 heard here on Bloomberg, says they lead directly to Vladimir Poot. 0:02:59.320 --> 0:03:03.600 Make no mistake, the larger issue of broad scale war 0:03:03.680 --> 0:03:06.760 crimes and atrocities in Ukraine lies at the feet of 0:03:06.760 --> 0:03:10.640 the Kremlin, this as Ukraine expects a major Russian invasion 0:03:10.680 --> 0:03:14.400 of the East. In San Francisco, I'm at Baxter Bloomberg daybreak. Okay, 0:03:14.639 --> 0:03:17.280 thank you. Turning to politics, a runoff election is coming 0:03:17.280 --> 0:03:20.799 in the presidential race in France, President Emmanuel mccron will 0:03:20.800 --> 0:03:23.919 square off with nationalist Marine Lepan after a tight first 0:03:24.000 --> 0:03:27.160 round vote. We get more from Bloomberg's Francy Laqua in Paris. 0:03:27.480 --> 0:03:31.760 It's a rerun of the contest. According to first projections, 0:03:31.800 --> 0:03:34.720 mccoon got around twenty eight percent of the vote compared 0:03:34.760 --> 0:03:37.720 with about twenty four percent for Lebin in the first round. 0:03:38.040 --> 0:03:41.000 But mccon win is far from certain, as votes from 0:03:41.120 --> 0:03:44.560 trailing candidates such as John Hickman Chen may go to Lepin. 0:03:44.920 --> 0:03:48.280 While the presidents perceived arrogance turned off many voters and 0:03:48.320 --> 0:03:51.240 helped Lupin to frame him as a president for the rich, 0:03:51.600 --> 0:03:54.920 he's made France a favorite destination for foreign investors and 0:03:54.960 --> 0:03:59.000 pushed employment to the highest on record. In Paris, I'm 0:03:59.000 --> 0:04:01.800 Francine Laqua Bird day break. All right, Francy, and thank you. 0:04:01.920 --> 0:04:04.880 Another major story we are following involves the U S economy, 0:04:04.960 --> 0:04:08.280 the relentless rise of treasury yields continues to send waves 0:04:08.320 --> 0:04:12.120 through global markets. Tenure Yells climbed through two point seven 0:04:12.200 --> 0:04:14.640 five percent for the first time in more than three years. 0:04:14.640 --> 0:04:17.240 His investors price in the impact of the federal reserves 0:04:17.240 --> 0:04:21.719 tightening plan and accelerating inflation. Cleveland FED President Loretta Mester 0:04:21.880 --> 0:04:25.040 is confident the US will avoid a recession. I think 0:04:25.080 --> 0:04:27.359 that it will take some time to get inflation now because, 0:04:27.360 --> 0:04:29.120 as you know, there's other things going on in the 0:04:29.120 --> 0:04:33.000 economy that are adding to price pressures, including the commodity 0:04:33.040 --> 0:04:36.080 praise and increases and energy price increases that are happening 0:04:36.680 --> 0:04:39.200 um as well. So I think inflation will remain above 0:04:39.279 --> 0:04:41.880 two percent this year and even next year, but the 0:04:41.920 --> 0:04:45.120 trajectory will be that will be moving down. Cleveland FED 0:04:45.160 --> 0:04:48.080 President Loretta Mester made the comments on CBS is Face 0:04:48.160 --> 0:04:50.960 the Nation, which can be heard Sundays on Bloomberg Radio. 0:04:51.200 --> 0:04:54.039 And a major stories developing on the equity front. Karen 0:04:54.120 --> 0:04:57.840 It has shares of Twitter sliding five percent. Elon Musk 0:04:57.920 --> 0:05:00.279 has decided he's not joining the board of this social 0:05:00.279 --> 0:05:02.880 media company after all. Let's get the latest live from 0:05:02.920 --> 0:05:06.760 Bloomberg's rned A Young quite a turnaround, quite a turnaround, Nathan. 0:05:06.800 --> 0:05:09.560 It was just a week ago that Twitter soared more 0:05:09.560 --> 0:05:13.240 than after Eyolon Musk took his nine point two percent 0:05:13.320 --> 0:05:16.159 steak in the company. Twitter said shortly after that Musk 0:05:16.160 --> 0:05:18.719 would join the board, and the billionaire has been vocal 0:05:18.760 --> 0:05:21.240 about his changes that he'd like to see a Twitter 0:05:21.279 --> 0:05:24.720 in the name of free speech. But Musk's abrupt reversal 0:05:24.800 --> 0:05:28.039 in his decision to join the board ignites renewed speculation 0:05:28.080 --> 0:05:31.800 about his intentions for Twitter as its largest individual shareholder, 0:05:32.040 --> 0:05:34.240 and if he does not join the board, Musk would 0:05:34.279 --> 0:05:36.719 not be subject to an agreement to keep his steak 0:05:36.960 --> 0:05:40.200 at no more than fourteen point nine percent. Live in 0:05:40.240 --> 0:05:43.480 New York, I'm Ranita Young, Bloomberg day Break. All right, Granita, 0:05:43.560 --> 0:05:45.760 thank you all. Earnings will also be and focus this week, 0:05:45.800 --> 0:05:48.039 with the big banks kicking off reporting season for the 0:05:48.040 --> 0:05:51.840 first quarter. We get more from Bloomberg Shirley Pellad. Investors 0:05:51.880 --> 0:05:54.800 will learn how Wall Street fair last quarter amid heightened 0:05:54.839 --> 0:05:58.200 volatility stemming from the rush of Ukraine conflict and the 0:05:58.279 --> 0:06:01.599 focus saw on the federal reserves lightning path. Tony Dwyer 0:06:01.720 --> 0:06:05.200 is equity strategist at Cancord Genuity. It's gonna be a 0:06:05.240 --> 0:06:08.320 positive earning season. The commentary is going to be sketchy. 0:06:08.360 --> 0:06:11.479 It's going to create this volatility. JP Morgan Chase will 0:06:11.480 --> 0:06:13.719 be first out of the gate with earnings on Wednesday. 0:06:13.800 --> 0:06:18.720 Thursday gets very busy with reports from City Group, Wells Fargo, Goldman, Sacks, 0:06:18.760 --> 0:06:22.880 Morgan Stanley, and p MC in New York. Charlie Pellett 0:06:22.920 --> 0:06:26.400 Bloomberg Daybreak. Thanks Charlie. Turning to the pandemic now, COVID 0:06:26.520 --> 0:06:28.400 is back on the rise, driven by the b A 0:06:28.480 --> 0:06:31.880 two oh maicron subvariant. Infections are at their highest levels 0:06:31.880 --> 0:06:34.840 in about a month. White House Chief Medical Advisory Doctor 0:06:34.839 --> 0:06:37.040 Anthony Found. She says Americans will need to make their 0:06:37.080 --> 0:06:40.080 own risk assessments going forward. There will be a level 0:06:40.120 --> 0:06:42.479 of infection. This is not going to be eradicated and 0:06:42.520 --> 0:06:45.360 it's not going to be eliminated. And what's gonna happen 0:06:45.480 --> 0:06:48.320 is that we're going to see that each individual is 0:06:48.360 --> 0:06:50.880 going to have to make their calculation of the amount 0:06:50.920 --> 0:06:53.880 of risk that they want to take. Anthony Found. She 0:06:54.000 --> 0:06:56.480 made the comments on a VCS this week, which can 0:06:56.520 --> 0:06:59.719 be heard every Sunday right here on Bloomberg Radio. On 0:06:59.800 --> 0:07:02.400 this Monday Morning, Futures are pointing to a lower open 0:07:02.440 --> 0:07:05.680 with SMP futures now down twenty five points, nest DAK 0:07:05.760 --> 0:07:08.960 futures down a hundred forty six down futures lower by 0:07:09.000 --> 0:07:12.200 ninety four points. The tenure treasury is down thirteen thirty seconds, 0:07:12.200 --> 0:07:15.559 with the yield close to two point seven. Straight ahead 0:07:15.560 --> 0:07:18.520 your latest local headlines and a check of sports. This 0:07:18.760 --> 0:07:24.960 is Bloomberg. It's south five oh seven on Wall Street. 0:07:24.960 --> 0:07:27.360 Were forty one degrees in Central Park, starting off this 0:07:27.440 --> 0:07:30.440 morning with a sinkhole to get past, and Franklin Township 0:07:30.480 --> 0:07:33.520 will pitch you around that in traffic. Shortly. First, Michael 0:07:33.560 --> 0:07:35.080 Bars here with what else is going on in New 0:07:35.160 --> 0:07:37.760 York and around the world. Good morning, Michael, Good morning Nathan. 0:07:37.800 --> 0:07:40.800 New York City Mayor Eric Adams as tested positive for 0:07:40.880 --> 0:07:44.280 COVID nineteen. A spokesperson for the mayor says that Adams 0:07:44.320 --> 0:07:47.440 woke up with a raspy voice yesterday. Adams took a 0:07:47.560 --> 0:07:52.040 PCR test that came back positive. Mayor Adams was one 0:07:52.080 --> 0:07:55.960 of dozens of high profile politicians that tested positive after 0:07:56.040 --> 0:08:00.120 attending an elite gala in Washington, d C. Organizers of 0:08:00.160 --> 0:08:04.200 the grid Iron Dinner say that more than seventy cases 0:08:04.240 --> 0:08:06.880 could have been linked to that event. Doctor Eric Ash 0:08:06.880 --> 0:08:10.240 here where the Lenox Hill Hospital says the Mayor's infection 0:08:10.360 --> 0:08:13.920 is a reminder that the virus does not discriminate. Anybody 0:08:14.040 --> 0:08:16.960 is eligible to get COVID, and we just hope that 0:08:17.040 --> 0:08:20.000 the more folks that are vaccinated and boosted will have 0:08:20.080 --> 0:08:23.680 my older cases. Doctor Eric Asher Mayor Adams has no 0:08:23.760 --> 0:08:26.520 other symptoms, but has canceled all public events for the 0:08:26.520 --> 0:08:30.560 week and we'll be taking anti viral medications. The virus 0:08:30.720 --> 0:08:34.000 is also affecting Broadway again, with some shows having to 0:08:34.040 --> 0:08:38.920 cancel performances due to positive cases. The Marquee Stars a 0:08:39.040 --> 0:08:42.520 Plaza Suite tested positive for COVID, making it the third 0:08:42.559 --> 0:08:46.800 production to temporarily shut down because of new infections. People 0:08:46.800 --> 0:08:49.439 in Times Square had a scary moment last evening and 0:08:49.520 --> 0:08:53.040 started fleeing after a series of explosions. This first responder 0:08:53.160 --> 0:09:02.720 on broadcastify officials. It turns out a cable failure caused 0:09:02.760 --> 0:09:05.560 one man hole to erupt and a second man hole 0:09:05.760 --> 0:09:08.320 was smoking. No one was hurt in there was no 0:09:08.440 --> 0:09:12.080 property damage. Today, the Biden administration will announce changing for 0:09:12.120 --> 0:09:15.000 the first time since the Gun Control locked of nineteen 0:09:15.160 --> 0:09:19.160 sixty eight the definition of firearm. It comes as Senate 0:09:19.200 --> 0:09:22.920 Majority Leader Chuck Schumer says the Biden administration must immediately 0:09:23.080 --> 0:09:26.160 rein in ghost gun sales. The New York senators says 0:09:26.200 --> 0:09:30.160 ghost gun kids must be treated as firearms. The preference 0:09:30.160 --> 0:09:32.800 would be for Congress to pass a law, but we've 0:09:32.840 --> 0:09:36.200 tried and it's been blocked by our Republican colleagues. So 0:09:36.240 --> 0:09:38.959 we're now asking the administration to do this on its 0:09:38.960 --> 0:09:42.400 own through regulation. Someone will challenge it in court, but 0:09:42.520 --> 0:09:45.280 I think the law will stand. Schumer says. Sales of 0:09:45.280 --> 0:09:48.640 ghost guns are rising around the country. Global News twenty 0:09:48.640 --> 0:09:51.560 four hours a day on air and on Bloomberg Quick Take, 0:09:51.600 --> 0:09:55.079 powered by more than twenty seven hundred journalist and analyst 0:09:55.200 --> 0:09:58.760 more than a hundred twenty countries. Michael Barn This is Bloomberg. Nathan, 0:09:58.800 --> 0:10:05.559 Thanks Michael. Almost five ten on Wall Street time for 0:10:05.559 --> 0:10:08.400 the Bloomberg Sports Update and Morning John Shown, Good morning, Nathan. 0:10:08.480 --> 0:10:12.160 Scotty Scheffler began the year having never won a PGA tournament. 0:10:12.240 --> 0:10:14.400 For what a year he is having? For a three 0:10:14.440 --> 0:10:19.520 shot with Schef behind it, puts it and it's it 0:10:20.679 --> 0:10:25.120 and Scotty Scheffler hats one off the great starts to 0:10:25.280 --> 0:10:30.840 a year in Gulf history with his first major championship, 0:10:31.640 --> 0:10:34.840 but number one player in the world's won four times. 0:10:35.600 --> 0:10:40.880 It's three months and he's won the two Masters tournament 0:10:40.880 --> 0:10:43.640 at Master's Radio. Heard here on Bloomberg Radio. Rory mclroy 0:10:43.679 --> 0:10:46.200 started the day ten shots behind. He ended up second 0:10:46.280 --> 0:10:48.960 with a sixty four that tied the record for a 0:10:48.960 --> 0:10:51.840 Master's final around. McIlroy finished his round by holding out 0:10:51.840 --> 0:10:54.360 of the bunker for a birdie, and then his playing partner, 0:10:54.600 --> 0:10:57.600 Colin Morrikala did the same thing. Yankees and Matt's going 0:10:57.640 --> 0:11:00.600 for season opening sweeps, both lost. Yanks to leven on 0:11:00.640 --> 0:11:02.760 base with Bobby doll back homer to the sixth inning 0:11:02.800 --> 0:11:04.880 the Red stops one four to three. Amphorty Rizzo and 0:11:04.920 --> 0:11:07.880 Giant Carlos Kanton drove in the Yankee runs. Together, they've 0:11:07.960 --> 0:11:10.840 driven in ten of the yanks thirteen runs. Matts at 0:11:10.840 --> 0:11:13.400 a two one lead eighth then in Washington scored three times, 0:11:13.400 --> 0:11:16.160 one four to two, Nelson Cruise a first inning homer 0:11:16.200 --> 0:11:18.240 and later at two one single. Nick's closed out the 0:11:18.280 --> 0:11:21.360 season meeting Toronto at the Garden one oh five ninety 0:11:21.440 --> 0:11:24.480 four and I opening weekend for the Knicks. Obi Topping, 0:11:24.520 --> 0:11:28.240 always a fan favorite. Topping scored thirty five points on Friday, 0:11:28.320 --> 0:11:31.959 had forty two points last night. Nanuel quickly added thirty four. 0:11:32.040 --> 0:11:35.080 Nick finished the year thirty seven and forty five. That's 0:11:35.080 --> 0:11:37.640 got thirty five from Kyrie Irving been Indiana one thirty four, 0:11:37.720 --> 0:11:39.840 one twenty six. They went forty four and thirty eight. 0:11:39.880 --> 0:11:42.840 They'll host Cleveland tomorrow if the Nets win. They advanced 0:11:42.840 --> 0:11:44.840 to play Boston in the first round of the playoffs. 0:11:45.040 --> 0:11:47.920 John stash Allard Bloomberg Sports, didn't you thanks shown SMP 0:11:48.080 --> 0:11:50.240 future is lower by twenty five points right now toal 0:11:50.320 --> 0:11:53.160 futures down ninety four dance Stack futures leading the declines 0:11:53.200 --> 0:11:56.000 down a hundred seventy hundred forty four points. That's the 0:11:56.080 --> 0:11:59.200 drop of one percent ten your treasury yield two point 0:11:59.320 --> 0:12:03.160 seven four percent. Insights on the markets next with former 0:12:03.160 --> 0:12:08.679 Gartment letter publisher Dennis Gartman and Bloomberg. Day Break is 0:12:08.679 --> 0:12:11.000 brought to you by New Jersey Institute of Technology, ranked 0:12:11.000 --> 0:12:13.679 the top fifty national public university by US News and 0:12:13.760 --> 0:12:15.920 World Report, in top ten for best career placement among 0:12:16.000 --> 0:12:18.400 public schools by The Princeton Review. More at n j 0:12:18.559 --> 0:12:23.840 I T dot E d U markets headlines and breaking 0:12:23.840 --> 0:12:26.720 news twenty four hours a day at Bloomberg dot com, 0:12:26.840 --> 0:12:30.400 the Bloomberg Business at and at Bloomberg Quick Tape. He's 0:12:30.400 --> 0:12:39.760 a Bloomberg business lash and I'm caered. Moscow stocks and 0:12:39.840 --> 0:12:43.600 bonds falling as political and economic ranks away on sentiment. 0:12:43.679 --> 0:12:46.040 We checked the markets every fifteen minutes throughout the trading 0:12:46.120 --> 0:12:49.000 day on Bloomberg s and P futures down route twenty 0:12:49.000 --> 0:12:52.439 four points down, futures down eight ASDAG futures down on 0:12:53.679 --> 0:12:56.160 the decks in Germany's down three quarters of a percent. 0:12:56.480 --> 0:12:59.000 Ten year treasury down ten thirty seconds you two point 0:12:59.080 --> 0:13:01.240 seven four percent. They yield on the two year two 0:13:01.280 --> 0:13:04.480 point five six percent. Nimex crude oil is down two 0:13:04.520 --> 0:13:06.680 and a half percent on two dollars forty eight cents 0:13:06.679 --> 0:13:10.120 and nine seventy seven cents of barrel comic schools of 0:13:10.320 --> 0:13:13.040 nine ten percent or sixteen dollars ninety cents in nineteen 0:13:13.120 --> 0:13:16.360 sixty two. Twenty announced the euro one pot nine oh 0:13:16.360 --> 0:13:18.839 eight against the dollar, British bound one point three zero 0:13:18.880 --> 0:13:21.880 two six, the yen at one five point three nine, 0:13:21.920 --> 0:13:24.559 and Bitcoin this morning down two and a half percent 0:13:24.920 --> 0:13:28.319 at forty two thousand thirty dollars. And that's a Bloomberg 0:13:28.320 --> 0:13:30.960 Business flash. Now here's Michael Barr with Moore on what's 0:13:31.000 --> 0:13:34.120 going on around the world. Michael, good morning, Good morning, Karen. 0:13:34.120 --> 0:13:38.120 Austria's chancellor said he'll meet Russian President of Vladimir Putin 0:13:38.120 --> 0:13:42.360 in Moscow today. Meanwhile, Ukraine expects Russia widen it's offensive 0:13:42.360 --> 0:13:45.800 in the East this week as the war continues. U 0:13:45.960 --> 0:13:49.240 S Attorney in the Obama administration is being nominated by 0:13:49.320 --> 0:13:52.559 President Joe Biden to run the Bureau of Alcohol, Tobacco, 0:13:52.679 --> 0:13:56.760 Firearms and Explosives. That's according to several people familiar with 0:13:56.760 --> 0:13:59.880 the matter who spoke to the Associated Press. Today is 0:13:59.880 --> 0:14:03.720 anouncement of the nomination of Steve Develbach is expected as 0:14:03.760 --> 0:14:06.880 the Biden administration and aveils its formal rule to rain 0:14:06.960 --> 0:14:10.400 in ghost guns in golf. Scottie Scheffler has one of 0:14:10.400 --> 0:14:13.920 the masters. On the final day of the regular NBA season, 0:14:14.000 --> 0:14:17.640 the Nets nick Celtics and Warriors one. The Wizards lost 0:14:17.840 --> 0:14:20.360 in the NHL, The Capitol's Meat, the Bruins four two 0:14:20.840 --> 0:14:23.680 Global News twenty four hours a day on air and 0:14:23.880 --> 0:14:26.920 on Bloomberg Quick take powered by more than twenty seven 0:14:27.280 --> 0:14:29.920 journalists and analysts more than a hundred twenty countries. I'm 0:14:30.000 --> 0:14:32.960 Michael Barr, and this is Bloomberg. Nathan Okay, Michael. Thanks, 0:14:33.040 --> 0:14:35.600 It's five nineteen on Wall Street Live from the Bloomberg 0:14:35.640 --> 0:14:39.680 Interacted Broker Studios. This is Bloomberg Daybreak as we get 0:14:39.760 --> 0:14:43.200 set for a short but busy trading week. We're joined 0:14:43.240 --> 0:14:45.880 by Dennis Gartman, former publisher of the Gartman Letter, now 0:14:45.960 --> 0:14:49.680 Chairman of the University of Akron Endowment Investment Committee. Dennis, 0:14:49.800 --> 0:14:52.600 good morning. Seems like we're seeing some jitters in the market, 0:14:52.600 --> 0:14:55.960 with futures pointing lower and the ten year the benchmark 0:14:56.400 --> 0:14:59.880 flirting with the two point seven five percent handle. That's 0:15:00.040 --> 0:15:03.400 the highest and more than three years. What kind of 0:15:03.440 --> 0:15:06.280 ripple effect does that have on the market. Well, first 0:15:06.280 --> 0:15:08.520 of all, we have the markets are under pressure and 0:15:08.520 --> 0:15:10.680 are going to remain under pressure. I've embarrassed with stock 0:15:10.720 --> 0:15:14.160 since January five, when the previous minutes of the f 0:15:14.400 --> 0:15:16.680 MC meeting at the end of last year came out 0:15:16.720 --> 0:15:21.320 indicating higher rates were certainly a likelihood. The fact that 0:15:21.360 --> 0:15:23.840 the minutes last week were as barish as any i've seen. 0:15:24.320 --> 0:15:26.680 Mr Bill Dudley, the former of Vice chairman of the 0:15:26.680 --> 0:15:31.360 FED and former New York FED President, was kind of 0:15:31.520 --> 0:15:35.160 was overtly bearish of of share prices, saying that the 0:15:35.160 --> 0:15:40.040 FED has to become far more hawkish on monetary policy 0:15:40.120 --> 0:15:43.720 and needs to, in his term, inflict pain on stock prices, 0:15:43.760 --> 0:15:46.680 which was a stunning statement. He's even more embarrassed than 0:15:46.960 --> 0:15:50.440 Mrs George and uh M Smester, the presidents of the 0:15:50.720 --> 0:15:53.960 Cleveland and Kansas City Feds, even more embarrassed than Mr 0:15:53.960 --> 0:15:56.360 Bullard has been. So it is really quite the extraordinary 0:15:56.360 --> 0:15:59.000 to have that many members of the voting members of 0:15:59.040 --> 0:16:02.480 the f MC come overly barrash of share prices. So 0:16:02.520 --> 0:16:04.880 I think that the bounce that we've seen as run 0:16:04.880 --> 0:16:06.680 its course. It was it was a nice bounce, It 0:16:06.760 --> 0:16:10.000 was a pleasant bounce. It was a satisfactory bounce for many. 0:16:10.040 --> 0:16:11.640 But it was a bouncing one the less, and that's 0:16:11.640 --> 0:16:13.840 all it has been. And I think share prices are 0:16:13.840 --> 0:16:16.800 headed rather demonstrably lower over the course the next several months. 0:16:17.040 --> 0:16:19.000 What kind of levels are you looking at for the SMP. 0:16:20.800 --> 0:16:22.680 The best I can say, I've been in this business 0:16:22.680 --> 0:16:24.920 for almost forty five years and and trying to get 0:16:24.920 --> 0:16:26.640 the direction right is the best that one can do, 0:16:26.680 --> 0:16:28.520 and I think the direction is down. So let's just 0:16:28.520 --> 0:16:32.160 simply say we'll go past the normal threshold for the 0:16:32.200 --> 0:16:35.680 start of a bear market, which is I've always found 0:16:35.720 --> 0:16:37.760 that laughable to me. Anything that lose more than seven 0:16:37.800 --> 0:16:41.560 percent is consequent. So the fact that the I think 0:16:41.600 --> 0:16:45.520 will be below down before this is done from the 0:16:45.600 --> 0:16:49.160 highs made January five. So the market, I think is 0:16:49.200 --> 0:16:50.720 the best that one can say, is the markets moving 0:16:50.760 --> 0:16:52.560 from the upper left to the lower right, and that's 0:16:52.600 --> 0:16:54.640 the That's the best that one is able to ascertain. 0:16:55.400 --> 0:16:58.160 You mentioned Cleveland, said President Lauretta Master. We did fear 0:16:58.240 --> 0:17:00.960 from her again yesterday on CBS. Has faced the nation 0:17:01.160 --> 0:17:04.359 saying that she thinks that inflation could peak soon but 0:17:04.440 --> 0:17:08.240 will remain elevated, perhaps into the end of next year. 0:17:08.640 --> 0:17:11.679 At the same time, she says she's confident that the 0:17:11.800 --> 0:17:15.560 US can avoid a recession. What's your view. I think 0:17:15.600 --> 0:17:17.679 the US well, first of all, I think she's correct 0:17:17.680 --> 0:17:20.359 on inflation. There's no question that inflationary problems are are 0:17:20.560 --> 0:17:24.240 extent everywhere. Food prices are going higher, energy prices had 0:17:24.280 --> 0:17:26.480 been higher. They're coming off of it at this point. 0:17:26.560 --> 0:17:30.480 With the crude oil tumbling down below nine dollars a 0:17:30.520 --> 0:17:34.119 barrel fort nearby near term w T w T I. 0:17:34.800 --> 0:17:37.360 But the livestock prices are higher, Cotton prices are higher, 0:17:37.359 --> 0:17:40.280 sugar prices are higher, Commodity prices generally are are higher, 0:17:40.640 --> 0:17:43.560 and they're not going to to weekend anytime soon. I 0:17:43.920 --> 0:17:46.119 think wage rates are are headed higher from they're going 0:17:46.160 --> 0:17:47.600 to go from the lower left of the upper right. 0:17:47.640 --> 0:17:50.240 So she's right about inflation. I think she's wrong about 0:17:50.280 --> 0:17:52.320 the recession. I think the fact that we've had the 0:17:52.920 --> 0:17:55.320 Yeld curve inverting in the in the middle of the curve, 0:17:55.720 --> 0:17:57.479 and the inversion, I think it's going to become more 0:17:57.480 --> 0:17:59.440 pronounced over the course of next several months, which is 0:17:59.480 --> 0:18:02.320 always that always indicative of the recession. So I think 0:18:02.320 --> 0:18:05.359 the semester probably is wrong about the recessionary call, but 0:18:05.400 --> 0:18:07.760 she's right about the inflationary call. When do you think 0:18:07.760 --> 0:18:09.880 we get a recession? Do you think it happens this year? 0:18:10.840 --> 0:18:12.879 I think it happens this year. We won't market. The 0:18:13.040 --> 0:18:15.479 National Bureau Economic Research, the n d e R as 0:18:15.560 --> 0:18:19.080 the is the official data of when we go to 0:18:19.359 --> 0:18:21.479 go into recession, when we come out, and they're always 0:18:21.520 --> 0:18:24.359 laid on both sides. I think they won't say that 0:18:24.400 --> 0:18:27.760 we've been in a recession until sometime early in three, 0:18:27.840 --> 0:18:30.280 but they'll market is the end of two. So I 0:18:30.280 --> 0:18:32.680 think sometimes in the third quarter the numbers will start 0:18:32.720 --> 0:18:36.399 to be manifestly bearish and manifestly recessionary. But will we 0:18:36.480 --> 0:18:40.560 market as a recession until probably sometime in the n 0:18:40.600 --> 0:18:42.760 b R will be very slow to do. So. I'm 0:18:42.800 --> 0:18:45.560 curious whether you think we'll see any inflationary impact on 0:18:45.640 --> 0:18:48.720 the earnings as we start to get into the really 0:18:48.760 --> 0:18:51.159 the kickoff of earning season this week, we've only got 0:18:51.200 --> 0:18:53.840 about a minute left. Well, that's a good question, and 0:18:53.880 --> 0:18:56.400 I wish I was capable of answering that. I'll leave 0:18:56.400 --> 0:18:58.360 it to wiser heads than I am. When it comes 0:18:58.400 --> 0:19:03.120 to announcing and forecasts to earnings for individual companies, all 0:19:03.160 --> 0:19:04.960 I can say is the economy seems to be slowing 0:19:05.000 --> 0:19:06.760 down or shall be slowing down, and not do this 0:19:06.920 --> 0:19:09.840 in future. Uh. And the recession is on the is 0:19:09.880 --> 0:19:12.879 on the horizon, so that that should be delictorious to 0:19:13.000 --> 0:19:15.760 earnings six months into the future. But for the next 0:19:15.800 --> 0:19:18.480 two or three months, the earnings numbers were probably quite good, 0:19:19.080 --> 0:19:21.159 all right, Dennis, as always good to have you on 0:19:21.200 --> 0:19:23.720 with us? Dennis Gartman, former publisher of the Gartment Letter, 0:19:23.760 --> 0:19:27.720 now the chairman of the University of Akron Endowment Investment Committee. 0:19:27.880 --> 0:19:30.119 As we look ahead to the market open, it is 0:19:30.359 --> 0:19:34.119 pointing two losses on this Monday morning. SMP futures are 0:19:34.119 --> 0:19:36.480 down twenty two points right now. Down Future is down 0:19:36.480 --> 0:19:39.959 eighty NASDAC Future is down a hundred thirty six and 0:19:40.040 --> 0:19:42.800 the tenure Treasury is down ten thirty seconds now with 0:19:42.840 --> 0:19:45.800 a yield of two point seven three percent yield on 0:19:45.840 --> 0:19:48.720 the two year two point five five nime X crewed 0:19:48.720 --> 0:19:51.280 down two point six percent right now down to fifty 0:19:51.320 --> 0:19:55.399 three dollars seventy three cents of barrel. Just ahead, Ukraine 0:19:55.400 --> 0:19:58.040 braces for a tougher fight to the east, and Elon 0:19:58.119 --> 0:20:01.520 Musk's on again, off again with Twitter. So check your 0:20:01.560 --> 0:20:08.200 top stories of the morning on Bloomberg Daybreak Bloomberg eleven 0:20:08.240 --> 0:20:10.479 three oh weather. Sunshine today with a high near sixty. 0:20:10.760 --> 0:20:13.359 Morning showers tomorrow will claire out during the afternoon tomorrow 0:20:13.359 --> 0:20:16.119 with a high in the low seventies, upper sixties, partly 0:20:16.160 --> 0:20:22.840 sunny by Wednesday. Right now one in Central Park broadcasting 0:20:22.880 --> 0:20:26.600 live from the Bloomberg Interactive Broker Studio in New York, 0:20:26.720 --> 0:20:30.560 Bloomberg E Living Freedom to Washington, d C, Bloomberg, On 0:20:30.840 --> 0:20:34.040 to Boston, Bloomberg, what a six, one to San Francisco, 0:20:34.119 --> 0:20:37.800 Bloomberg sixty to the country, Sirius XM Chad one nine, 0:20:38.200 --> 0:20:41.359 and around the globe the Bloomberg Business app and Bloomberg 0:20:41.440 --> 0:20:50.720 Radio dot Com. This is Bloomberg Daybreak. It's five thirty 0:20:50.760 --> 0:20:53.280 on Wall Street. Good morning. I'm Nathan Hagar and I'm 0:20:53.359 --> 0:20:56.280 Karen Moscow. We are just about four hours away from 0:20:56.280 --> 0:20:58.119 the open of US trading. Let's get you up to 0:20:58.200 --> 0:20:59.920 date of the news you need to know at this show. 0:21:00.320 --> 0:21:03.760 Ukraine says Russian air strikes destroy the airport in Ukraine's 0:21:03.800 --> 0:21:07.439 fourth largest city, to Nipro. As the war continues, a 0:21:07.440 --> 0:21:11.080 new Russian military commander is drawing alarm among US officials. 0:21:11.280 --> 0:21:13.800 As European officials meant to discuss the next phase of 0:21:13.840 --> 0:21:17.960 the war. Austrian's chancellor is heading to Moscow today to 0:21:18.040 --> 0:21:21.760 meet with Vladimir Putin, two days after visiting Kiev. The meantime, Karen, 0:21:21.840 --> 0:21:24.639 Russia is expected to mount an offensive for control of 0:21:24.720 --> 0:21:28.600 parts of eastern Ukraine. President Vladimir's Lensky tells CBS IS 0:21:28.640 --> 0:21:31.399 Scott Kelly he has no plans to leave his nation. 0:21:31.720 --> 0:21:35.320 I'm the president of our people, and even if I 0:21:35.400 --> 0:21:40.560 wasn't president, I would have stayed here. My family understood, 0:21:40.840 --> 0:21:46.760 not only understood, but fully supported my decision fully. Ukrainian 0:21:46.760 --> 0:21:49.879 President Voladimir z Lensky spoke on CBS IS sixty minutes, 0:21:49.880 --> 0:21:54.080 which can be heard every Sunday on Bloomberg in Washington. Well, 0:21:54.200 --> 0:21:57.280 Nathan to the markets. Now are shares or Twitter are sliding? There? 0:21:57.280 --> 0:21:59.840