WEBVTT - Bloomberg Daybreak: May 6, 2022 - Hour 2 (Radio) 0:00:02.920 --> 0:00:06.680 Live from the Bloomberg Interactive Burger Studios. Is Bloomberg Daybreak 0:00:06.680 --> 0:00:10.480 for a Friday, May six coming up this hour. Markets 0:00:10.480 --> 0:00:13.200 close out of volat whole week following yesterday's three and 0:00:13.240 --> 0:00:16.319 a half percent plunge on Wall Street, Investors brace for 0:00:16.360 --> 0:00:19.400 the April jobs report. A former FED Vice chair says 0:00:19.440 --> 0:00:22.000 short term rates need a triple from current levels and 0:00:22.079 --> 0:00:24.920 the airline industry or does the Biden administration to drop 0:00:24.960 --> 0:00:27.639 the COVID test mandid It would be the largest red 0:00:27.720 --> 0:00:30.319 hike in years for New York City apartments, plus a 0:00:30.400 --> 0:00:33.920 historic higher for the new White House Press Secretary Michael 0:00:34.040 --> 0:00:37.400 are more Alf I'm John Stashtoward sports. Rangers beat the 0:00:37.400 --> 0:00:40.360 Penguins and tie the series, and one an amazing comeback 0:00:40.400 --> 0:00:45.640 win by the Mets in Philadelphia. That's all training ahead 0:00:45.720 --> 0:00:49.280 on Bloomberg Daybreak on Bloomberg eleven, Free on New York, 0:00:49.479 --> 0:00:54.120 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.440 --> 0:00:59.040 Bloomberg nine sixty, San Francisco, Sirius XM one nine team 0:00:59.080 --> 0:01:02.319 and around the world Down Bloomberg Radio Dot Car via 0:01:02.400 --> 0:01:09.560 the Bloomberg Business app. Good morning, I'm Karen Moscown I'm 0:01:09.640 --> 0:01:11.840 Nathan Hagar. Bloomberg Daybreak is brought to you by B 0:01:12.000 --> 0:01:14.840 n y Melon's Pershing Learned why the world's most sophisticated 0:01:14.880 --> 0:01:17.920 wealth management and institutional firms rely on Pershing to help 0:01:17.959 --> 0:01:21.560 them improve profitability, create efficiency, attract talent, and manage risk 0:01:21.840 --> 0:01:25.360 at pershing dot Com. A right, Nathan, and futures are 0:01:25.360 --> 0:01:27.560 lower this morning. We are at six o one on 0:01:27.600 --> 0:01:29.679 Wall Street and we checked the markets every fifteen minutes 0:01:29.720 --> 0:01:32.440 throughout the trading day. On Bloomberg. Guess and P futures 0:01:32.440 --> 0:01:35.080 are down eight points this morning. Down futures down thirty one. 0:01:35.160 --> 0:01:38.559 Nasday Future is down thirty nine. Ten year Treasury down 0:01:38.560 --> 0:01:41.000 ten thirty seconds. You know, three point oh seven percent, 0:01:41.040 --> 0:01:43.040 and they yield on the two year two point seven 0:01:43.120 --> 0:01:46.000 two percent and nine max Screwed oil is up two 0:01:46.040 --> 0:01:48.280 point three percent, up two dollars forty nine cents at 0:01:48.200 --> 0:01:51.440 a hundred ten dollars seventy six cents a barrel. Nathan, Well, Karen. 0:01:51.480 --> 0:01:54.600 We close out this volatile week following two consecutive days 0:01:54.600 --> 0:01:57.400 of three percent moves and markets in the opposite direction, 0:01:57.600 --> 0:02:00.560 A day after stocks surged on a US hawk is 0:02:00.640 --> 0:02:03.559 fed the S and P five hundred fell three point 0:02:03.640 --> 0:02:07.840 six percent yesterday, while the NASTAC plummeted five percent. Jimmy 0:02:07.920 --> 0:02:11.160 Lee is CEO at Wealth Consulting Group. Retail investors are 0:02:11.160 --> 0:02:14.320 starting to get nervous and of course these last two 0:02:14.400 --> 0:02:18.840 days of altility um I think reminding some some people 0:02:19.120 --> 0:02:22.960 of what it was like March and maybe those have 0:02:23.000 --> 0:02:27.079 been around longer, maybe the financial crisis. Wealth Consulting Group 0:02:27.120 --> 0:02:29.880 CEO Jimmy Lee made the comments on Bloomberg Business Week, 0:02:29.919 --> 0:02:31.880 which you can hear weekdays from two to five pm 0:02:31.880 --> 0:02:34.640 Eastern on Bloomberg Radio. We also got reaction on the 0:02:34.680 --> 0:02:38.239 Cell off from Charles Schwab, chief market strategist Lizianne Saunders. 0:02:38.280 --> 0:02:41.799 I don't think the market is yet priced in recession risk. 0:02:41.919 --> 0:02:44.040 I think the market is still making an assumption that 0:02:44.080 --> 0:02:45.960 we have a soft landing. I just think the needle 0:02:46.600 --> 0:02:49.840 is pointed a bit more toward recession and soft landing, 0:02:49.880 --> 0:02:52.919 and we may not be through that rerating process yet. 0:02:53.160 --> 0:02:56.600 Lizzie Saunders with Charles Schwab says yesterday's economic data showing 0:02:56.680 --> 0:02:59.919 labor cost surging and productivity dropping contributed to the Cell 0:03:00.000 --> 0:03:03.880 off and we get another key economic rating later this morning. Nathan. 0:03:03.880 --> 0:03:07.320 The April jobs report, economists forecast call for a gain 0:03:07.400 --> 0:03:10.240 of three hundred eighty thousand non farm pay rolls at 0:03:10.240 --> 0:03:13.000 an employment rate of three point five percent. We get 0:03:13.040 --> 0:03:15.880 more from Bloomberg s Michael McKee. One key question the 0:03:15.919 --> 0:03:18.400 April jobs report may answer, are we running out of 0:03:18.440 --> 0:03:21.560 people to hire? After months of luring sidelined workers back 0:03:21.560 --> 0:03:24.320 into the labor force, companies are beginning to suggest the 0:03:24.360 --> 0:03:27.799 post pandemic hiring spree is waning. This week's I S 0:03:27.960 --> 0:03:32.240 M manufacturing and services employment indexes both slowed. The ADP 0:03:32.360 --> 0:03:36.600 payroll report Wednesday was surprisingly soft. If employment growth starts 0:03:36.640 --> 0:03:39.880 to ease, that may push unemployment down and wages up, 0:03:39.920 --> 0:03:43.120 which sets up an interesting situation for the Fed. Rising 0:03:43.160 --> 0:03:47.760 wages suggest an inflation problem continues, but low unemployment, coupled 0:03:47.800 --> 0:03:50.320 with record levels of job openings gives the Fed the 0:03:50.320 --> 0:03:53.520 opportunity to raise interest rates without doing as much damage 0:03:53.560 --> 0:03:57.440 to the overall economy. Michael McKee, Bloomberg gabriak. All right, Michael, 0:03:57.480 --> 0:03:59.560 thank you. I'll stay with Bloomberg throughout the morning for 0:03:59.600 --> 0:04:02.200 complete analysis of the Johns report. Do we speak live 0:04:02.240 --> 0:04:05.760 with Labor Secretary Marty Walsh coming up at am Wall 0:04:05.800 --> 0:04:08.920 Street time on Bloomberg Radio and television. Well, we wait 0:04:08.960 --> 0:04:11.360 for that, Karen and other former FED officials weighing in 0:04:11.440 --> 0:04:14.680 on policy. Former Vice chair Richard Clarenda says the Fed 0:04:14.720 --> 0:04:16.760 will need to raise short term interest rates to at 0:04:16.800 --> 0:04:19.599 least three and a half percent to bring inflation under control. 0:04:19.880 --> 0:04:23.680 We get the details from Bloomberg's Charlie Pellett. Clarada's remarks 0:04:23.760 --> 0:04:26.919 came in a speech to a Hoover Institute conference. He 0:04:27.000 --> 0:04:30.000 said the funds rate will ultimately need to be raised 0:04:30.080 --> 0:04:34.320 well into restrictive territory by at least a percentage point 0:04:34.320 --> 0:04:37.040 above the estimated nominal neutral rate of two and a 0:04:37.120 --> 0:04:41.160 half percent. Clarida left the Fed in January. On Wednesday, 0:04:41.200 --> 0:04:44.279 the Fed raised its target range for the federal funds 0:04:44.320 --> 0:04:47.600 rate by a half percentage point. It also said ongoing 0:04:47.680 --> 0:04:51.200 increases are likely, and it announced a plan to start 0:04:51.279 --> 0:04:55.000 reducing its big balance sheet next month. In New York. 0:04:55.080 --> 0:04:57.880 Charlie Pellet Bloomberg Day Break, Right, Charlie, thank you now 0:04:57.880 --> 0:05:00.440 to the latest on the war in Ukraine. More civilian 0:05:00.480 --> 0:05:04.080 evacuations are expected from Maria Pole, but Ukrainian defenders are 0:05:04.120 --> 0:05:07.200 refusing to surrender. The giant steel plant that's been under 0:05:07.240 --> 0:05:11.600 relentless attack from Russia for weeks. Pentagon's spokesman John Kirby, 0:05:11.880 --> 0:05:14.480 we would still assess that the Ukrainians are putting up 0:05:14.480 --> 0:05:17.240 a very stiff resistance and that the Russians have not 0:05:17.400 --> 0:05:20.240 made the progress that we believe they expected to make 0:05:20.240 --> 0:05:23.440 by this point. Pentagon spokesman John Kirby said, the battle 0:05:23.600 --> 0:05:27.040 is far from over. Meantime, speculation grows that Vladimir Plutin 0:05:27.120 --> 0:05:30.200 wants a major battlefield victory in time for World War 0:05:30.240 --> 0:05:33.800 Two era Victory Day commemorations. First, Lady Joe Biden is 0:05:33.800 --> 0:05:36.040 headed to Eastern Europe. Sh'll meet with US troops and 0:05:36.120 --> 0:05:39.440 Ukrainian mothers and children in Romania, and spend Mother's Day 0:05:39.440 --> 0:05:43.080 with displaced families in Slovakia. Let's turn to the pandemic now, Karen. 0:05:43.080 --> 0:05:46.359 We're seeing the travel industry put new pressure on COVID policies. 0:05:46.400 --> 0:05:50.920 Wants the Biden administration to modify testing mandates for international flyers. 0:05:51.080 --> 0:05:55.159 Bloombergs that Baxter has the story. Airlines, along with travel groups, 0:05:55.160 --> 0:05:58.320 want to begin allowing vaccinated people to fly into the 0:05:58.440 --> 0:06:02.880 US without first testing negative for COVID. This coalition includes 0:06:02.920 --> 0:06:07.160 more than two hundred fifty travel groups and businesses, including airports. 0:06:07.200 --> 0:06:10.440 They say the recovery and the international travel market is 0:06:10.480 --> 0:06:14.400 down about seventy eight percent from twenty nineteen, and say 0:06:14.440 --> 0:06:19.120 medical advancements can support it. Other countries, including the UK, Germany, 0:06:19.120 --> 0:06:23.479 and Canada have already dropped that mandate. In San Francisco, 0:06:23.520 --> 0:06:26.679 I'm at Baxter Bloomberg Daybreak, right and thank you. Meantime, 0:06:26.800 --> 0:06:30.720 Johnson and Johnson's COVID vaccine is under scrutiny. US regulators 0:06:30.720 --> 0:06:32.680 are placing limits on this shot, and we get the 0:06:32.760 --> 0:06:35.480 latest lie from Bloomberg's nit a Young Good Morning Rity 0:06:35.520 --> 0:06:37.839 to Good morning Karen. The f d A is limiting 0:06:37.880 --> 0:06:40.120 the use of the J and J shot to adults 0:06:40.120 --> 0:06:43.560 for whom other shots are not medically appropriate or accessible. 0:06:43.920 --> 0:06:46.560 The agency is also allowing those who would otherwise not 0:06:46.680 --> 0:06:50.360 get immunized against the virus take JJ and j's shot. 0:06:51.240 --> 0:06:54.039 And the FDA made the decision to limit the authorized 0:06:54.160 --> 0:06:57.440 use of J and J shot after investigating reported cases 0:06:57.480 --> 0:06:59.920 of blood clots and people who have taken the vex 0:07:00.040 --> 0:07:02.480 seen live in New York. I'm gonna need a Young 0:07:02.520 --> 0:07:05.040 Bloomberg daybreak, all right. We need to thank you. Right now, 0:07:05.160 --> 0:07:08.160 SMP futures are down seven point staff futures down twenty four. 0:07:08.240 --> 0:07:11.920 NASTACT futures lower by thirty five points. The tenure treasury 0:07:12.000 --> 0:07:15.080 yield right now three point zero seven percent. Straight ahead, 0:07:15.120 --> 0:07:17.920 your latest local headlines and a check of sports. This 0:07:18.480 --> 0:07:25.000 is Bloomberg and it's now six so seven on Wall Street. 0:07:25.000 --> 0:07:27.400 We're at fifty eight degrees in Central Park dealing with 0:07:27.440 --> 0:07:29.800 an accident on westbound Route three. We'll get the details 0:07:29.880 --> 0:07:32.200 coming up in traffic first, Michael bar with more on 0:07:32.280 --> 0:07:34.480 what's going on in New York and around the world. Michael, 0:07:34.520 --> 0:07:36.520 thank you very much. Nathan. It would be the largest 0:07:36.520 --> 0:07:39.600 rent increase for New York City apartments in about ten years. 0:07:40.040 --> 0:07:42.920 A preliminary vote by the New York City Rent Guidelines 0:07:43.000 --> 0:07:47.120 Board last night I proposed the hike for rent stabilized apartments. 0:07:47.520 --> 0:07:50.720 It proposed a rent increase of two to four percent 0:07:50.840 --> 0:07:54.240 for one year leases and a four to six percent 0:07:54.320 --> 0:07:57.560 increase for two year leases. A final vote is expected 0:07:57.600 --> 0:08:00.280 at the end of May. Connecticut Democratic govern Or Ned 0:08:00.360 --> 0:08:03.440 Lamot signed a law designed to protect people who provide 0:08:03.440 --> 0:08:06.880 an abortion and are then sued in another state. You know, 0:08:06.960 --> 0:08:09.400 Twitter message Lamont says it was a bill he was 0:08:09.440 --> 0:08:11.680 eager to sign. I think you've heard a lot about 0:08:11.680 --> 0:08:14.200 what's coming out of the Supreme Court and a preliminary 0:08:14.280 --> 0:08:16.360 ruling that looks like they may be on the edge 0:08:16.360 --> 0:08:19.640 of a ending a woman's right to choose and ending 0:08:19.680 --> 0:08:22.040 a Roe v. Wade. That's not going to happen the 0:08:22.040 --> 0:08:24.240 state of Connecticut, not as long as I'm here. No 0:08:24.440 --> 0:08:27.360 politicians are going to get between you and your doctor. 0:08:27.680 --> 0:08:30.240 You make the choice. The law is set to take 0:08:30.240 --> 0:08:34.360 effect on July first. Meanwhile, Governor Kathy Hokel, who says 0:08:34.480 --> 0:08:37.440 anyone who needs access to care will be welcome with 0:08:37.480 --> 0:08:39.960 open arms in New York. I want to have this 0:08:40.160 --> 0:08:43.200 enshrined not just in state law, but in our constitution, 0:08:43.760 --> 0:08:46.800 just in case there ever is a situation we lose 0:08:46.840 --> 0:08:48.760 the House, to lose the Senate. Heaven for Midnight. Dun't 0:08:48.760 --> 0:08:52.479 believe that will happen. Governor Hokel told ABC the reality 0:08:52.760 --> 0:08:56.560 rolling Back wrote is just like a punch in the nose. 0:08:57.200 --> 0:08:59.719 US Chief Justice John Roberts called the League of a 0:08:59.760 --> 0:09:02.960 draft out of the Supreme Court abortion opinion this week 0:09:03.280 --> 0:09:07.480 absolutely appalling. Roberts told the Judicial Conference in Atlanta, the 0:09:07.520 --> 0:09:10.679 person responsible would be foolish to think the disclosure will 0:09:10.679 --> 0:09:14.240 affect the court's handling of the case. Some Ukrainian refugees 0:09:14.280 --> 0:09:17.280 are making a new life in Rochester, New York, even 0:09:17.360 --> 0:09:21.120 behind their homeland torn apart by the Russian invasion. Ghana. 0:09:21.360 --> 0:09:26.320 India says she never wanted to leave it so nice. 0:09:26.360 --> 0:09:30.120 I never want to go out for my content because 0:09:30.280 --> 0:09:34.800 I love the family. Will be meeting with their host 0:09:34.840 --> 0:09:38.840 family later today. Karine Jean Pierre will replace Jen Sakis 0:09:38.840 --> 0:09:41.960 White House Press Secretary. Jean Pilierre is the first black 0:09:42.000 --> 0:09:45.520 person and openly LGBTQ person to hold the position. It 0:09:45.679 --> 0:09:49.760 is an honor and a privilege to be behind this podium. 0:09:49.800 --> 0:09:51.760 In about a week or so, when Jen is ready, 0:09:52.600 --> 0:09:55.920 Zaki leaves on thirteenth Global News twenty four hours a 0:09:56.040 --> 0:09:58.560 day on air and on Bloomberg Quick Take, powered by 0:09:58.559 --> 0:10:02.440 more than journalist analysts more than twenty countries. Michael Barr, 0:10:02.480 --> 0:10:09.920 this is Bloomberg. Nathan, Thanks Michael. Up to six ten 0:10:09.960 --> 0:10:12.160 on Wall Street Time for the Bloomberg Sports Up Daviews, 0:10:12.240 --> 0:10:14.959 John Stashower, Thanks Nathan. Rangers and Penguins back at the 0:10:15.000 --> 0:10:18.000 Garden after that marathon three overtime game one, like that one, 0:10:18.040 --> 0:10:20.839 the Rangers scored first. Unlike that when they kept the lead, 0:10:20.880 --> 0:10:23.960 beat Pittsburgh five to two, five different goal scorers. Andrew 0:10:24.040 --> 0:10:27.640 cop Off at Artemi Panairin passed, Ryan Strom deflected in 0:10:28.000 --> 0:10:30.360 Adam Fox shot on the power play. Chris Crowder deflected 0:10:30.400 --> 0:10:32.760 in the Frank Patronto shotting in the third period. Pannerin 0:10:33.160 --> 0:10:36.760 and Patronto scored themselves for Igor Cisterkin. After seventy nine 0:10:36.800 --> 0:10:39.040 stains the other night, he had thirty nine more. Game 0:10:39.080 --> 0:10:42.560 three tomorrow night in Pittsburgh also wins for Florida, Dallas 0:10:42.640 --> 0:10:45.520 and Colorado. The Mets in Philadelphia and a lot of 0:10:45.520 --> 0:10:48.080 their fans, no doubt, turned this game off. The Phillies 0:10:48.160 --> 0:10:51.280 landed seventh and nothing seven one in the ninth inning. 0:10:51.520 --> 0:10:54.160 Here is Marte now dim Mo good lead at first. 0:10:54.200 --> 0:10:57.560 The pitch swing on a high fly ball left center field, 0:10:57.760 --> 0:11:00.160 pretty deep. It's got some legs back near to all. 0:11:00.160 --> 0:11:02.959 Its good for Ahad taking a tape the lead, Nebo 0:11:03.080 --> 0:11:06.640 a round third coming home pa score standing double for 0:11:06.800 --> 0:11:12.199 Farte eight because seven they are holy Stikey's but Mets 0:11:12.240 --> 0:11:15.200 with a seven run night tenday, that's sent us. It's 0:11:15.240 --> 0:11:19.000 back part w CVS seven runs on eight hits. Mark 0:11:19.080 --> 0:11:20.880 they had two and then they scored four times with 0:11:20.960 --> 0:11:23.800 two outs. Third time in Mets history they've won a 0:11:23.800 --> 0:11:26.520 game one trailing by six. In the ninth NBA playoffs 0:11:26.559 --> 0:11:29.160 resumed tonight, Philadelphia trails Miami to nothing. They're open to 0:11:29.200 --> 0:11:31.880 get Joe l m bed at a concussion protocol. Phoenix 0:11:31.960 --> 0:11:34.319 up to not being Game three in Dallas. The Celtics 0:11:34.559 --> 0:11:36.840 hope to have Marcus Smart back for their Game three 0:11:36.840 --> 0:11:39.400 tomorrow and Milwaukee. Memphis will be without a second leading 0:11:39.480 --> 0:11:42.800 score tomorrow at Golden State. Dylan Brooks suspended for his 0:11:42.960 --> 0:11:47.719 hit of Gary Payton, John Stashward, Bloomberg Sports, Nay, Holy Shnikeys, 0:11:48.160 --> 0:11:51.240 thank you, John sp features down twelve points, staff features 0:11:51.280 --> 0:11:55.000 down fifty six standstack futures down fifty five ten, Your 0:11:55.040 --> 0:11:57.959 treasury down twelve thirty seconds. The yield now three point 0:11:58.040 --> 0:12:08.120 zero eight per cent. You're listening to Bloomberg Daybreak Bloomberg 0:12:08.160 --> 0:12:11.800 eleven three oh weather rain and low sixties today, rain 0:12:11.880 --> 0:12:15.920 and low fifties tomorrow, more showers for Mother's Day, upper 0:12:15.960 --> 0:12:22.559 fifties by Sunday. Right now fifty eight in Central Park Markets, 0:12:22.640 --> 0:12:25.719 headlines and breaking news twenty four hours a day at 0:12:25.720 --> 0:12:29.119 Bloomberg dot com, the Bloomberg Business App, and at Bloomberg 0:12:29.200 --> 0:12:38.079 Quick Tape. This is a Bloomberg Business flash, and I'm 0:12:38.160 --> 0:12:41.360 Karen Moscow stocks are sliding with bonds, a dollar rising, 0:12:41.360 --> 0:12:45.720 as inflation rising, burrowing costs, and China's COVID lockdown's depressed sentiment. 0:12:45.800 --> 0:12:49.120 European stocks extending their losses this morning. They're falling more 0:12:49.160 --> 0:12:51.480 than one percent and are set for the worst weekly 0:12:51.559 --> 0:12:54.160 drop in two months. U S stock indise futures lower. 0:12:54.440 --> 0:12:56.760 It's after the SMP five dred fold more than three 0:12:56.760 --> 0:12:59.640 and a half percent yesterday in the nasdack lost five percent. 0:13:00.040 --> 0:13:02.040 Let we check the markets every fifteen minutes throughout the 0:13:02.040 --> 0:13:05.360 trading day. On Bloomberg s and P futures down fifteen 0:13:05.400 --> 0:13:08.080 points this morning, down features down seventy nine and nowsday 0:13:08.160 --> 0:13:11.200 features down seventy two. The decks in Germany's down one 0:13:11.240 --> 0:13:14.679 point two percent. Ten year treasury down eleven thirty seconds. 0:13:14.760 --> 0:13:17.200 They yield is at three point eight percent. They yield 0:13:17.240 --> 0:13:20.040 on the two year two point seven three percent. Nine 0:13:20.040 --> 0:13:22.120 max screwed oil up to in a quarter percent of 0:13:22.200 --> 0:13:24.480 two dollars forty three cents at a hundred ten dollars 0:13:24.480 --> 0:13:26.959 seventy one cents a barrel call, make school the third 0:13:26.960 --> 0:13:29.240 of a percent, or five dollars eighty cents at eighteen 0:13:29.240 --> 0:13:32.199 eighty one fifty announced the euro one point oh five 0:13:32.280 --> 0:13:34.439 eight one against the dollar, British pound one point to 0:13:34.640 --> 0:13:36.840 three three nine and the end at one thirty point 0:13:36.960 --> 0:13:40.240 three six and Bitcoin this morning down six tenths percent 0:13:40.280 --> 0:13:43.360 at thirty six thousand, two hundred thirty dollars. I mean, 0:13:43.480 --> 0:13:45.560 of course, watching for the April jobs report at an 0:13:45.559 --> 0:13:48.800 eight thirty Wall Street time. That's a Bloomberg business flash. 0:13:48.800 --> 0:13:50.880 Now here's Michael Barr with more on what's going on 0:13:50.960 --> 0:13:53.800 around the world. Michael Karen, thank you very much. Training 0:13:53.880 --> 0:13:57.680 and fighters battling Russian forces in the tunnels beneath Maryuple's 0:13:57.720 --> 0:14:01.160 steel plant are refusing to surve render. The battle is 0:14:01.240 --> 0:14:05.000 unfolding in the last Ukrainian stronghold of the Strategic Ports city. 0:14:05.400 --> 0:14:09.680 The FDA has limited use of the Johnson and Johnson 0:14:09.720 --> 0:14:13.480 COVID vaccine to adults. It comes after an investigation of 0:14:13.559 --> 0:14:16.960 rare and potentially deadly blood clots related to the J 0:14:17.120 --> 0:14:20.720 and J single shot vaccine. NHL playoff the Rangers beat 0:14:20.760 --> 0:14:22.880 the Penguins five two to even their series. At a 0:14:22.920 --> 0:14:26.200 game of peace. The Capitols lost to the Panthers that series. 0:14:26.240 --> 0:14:28.720 Now even at a game of peace. In baseball, the 0:14:28.720 --> 0:14:31.080 Mets one, scoring seven runds of the ninth against the 0:14:31.120 --> 0:14:33.800 Phillies to win it. The Orioles won, the Red Sox, 0:14:33.880 --> 0:14:37.120 Nationals and Giants lost. Global News twenty four hours a 0:14:37.200 --> 0:14:40.520 day on air and on Bloomberg Quittake, powered by more 0:14:40.560 --> 0:14:44.160 than twenty seven hundred journalists and analysts more than twenty countries. 0:14:44.440 --> 0:14:47.840 Michael Bart, this is Bloomberg. Nathan alright, Michael, thank you. 0:14:47.840 --> 0:14:49.880 We're coming up to six twenty on Wall Street line 0:14:49.880 --> 0:14:53.440 from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. 0:14:53.520 --> 0:14:57.000 Let's get more on these markets now. Bloomberg Television anchor 0:14:57.040 --> 0:15:00.760 and markets correspondent Danny Burger joins me as we get 0:15:00.760 --> 0:15:05.000 ready to close out a week of extreme volatility. Danny, 0:15:05.080 --> 0:15:08.400 good morning. It has been watching the bouncing ball, and 0:15:08.440 --> 0:15:12.520 the bounces have been insane this week. You know. The 0:15:12.560 --> 0:15:14.600 crazy thing is is that actually if you look on 0:15:14.880 --> 0:15:18.040 a week basis, just you know, this week up to today, 0:15:18.080 --> 0:15:20.440 the NASA is actually flat. So if you were an 0:15:20.480 --> 0:15:23.600 alien just dropped down onto the earth, you wouldn't think 0:15:23.640 --> 0:15:26.160 anything happened. But I mean, certainly it did not trade 0:15:26.200 --> 0:15:31.320 flat most days. No, Yeah, I mean something happened. Obviously 0:15:31.480 --> 0:15:35.960 we had we had the FED taking seventy five basis 0:15:36.000 --> 0:15:39.320 points off the table. I mean, now with the action 0:15:39.400 --> 0:15:42.120 we're seeing this morning, it looks like the surge following 0:15:42.200 --> 0:15:45.360 that was a sugar rush. Yeah. I mean I I 0:15:45.440 --> 0:15:49.640 kind of had this feeling that yesterday a lot of 0:15:49.640 --> 0:15:52.200 the moves had to do with positioning, because you had 0:15:52.200 --> 0:15:56.600 hedge funds going in to the FED meeting, very short treasuries, 0:15:56.600 --> 0:15:58.320 and I think a lot of them were short treasuries 0:15:58.360 --> 0:16:01.320 with this idea that they talk out seventy five basis points, 0:16:01.320 --> 0:16:03.800 so they don't talk about seventy five basis points, so 0:16:03.920 --> 0:16:06.960 you get the short covering of bonds as allows them 0:16:07.080 --> 0:16:09.840 to rally. That makes equity sentiment a little bit better. 0:16:10.200 --> 0:16:12.520 But I think when you step back and you say, okay, 0:16:12.600 --> 0:16:16.120 he said they weren't actively discussing seventy five basis point hikes, 0:16:16.160 --> 0:16:18.800 I mean they still hiked fifty basis points. They're still 0:16:18.800 --> 0:16:21.600 expected to hike two hundred more basis points. I mean 0:16:21.600 --> 0:16:25.080 the expectation is still there for them to be hawkish. 0:16:25.120 --> 0:16:28.280 So I think, save for the sort of positioning reaction, 0:16:28.400 --> 0:16:31.880 I would say what we're saw yesterday was perhaps more 0:16:31.960 --> 0:16:34.520 what you'd spect in line with the Fed that decided 0:16:34.560 --> 0:16:38.480 to hike fifty basis points and talked about coming QT. Yeah, 0:16:38.560 --> 0:16:41.040 potentially coming a day later. But you know, a lot 0:16:41.080 --> 0:16:43.680 of the talk going into the FED meeting, Danny, as 0:16:43.680 --> 0:16:47.720 you know, was that multiple fifty basis point rate hikes 0:16:47.760 --> 0:16:51.360 were getting baked in. Is there further baking in to go? 0:16:52.680 --> 0:16:55.320 I I think that it's not even just baking in 0:16:55.680 --> 0:16:59.160 more rate hikes, because perhaps that is all baked in, 0:16:59.360 --> 0:17:01.920 which would mean that the two year yield has peaked. 0:17:02.440 --> 0:17:04.600 We saw that in the market action yesterday. Even as 0:17:04.720 --> 0:17:06.880 yields are moving higher, the two year yield wasn't doing 0:17:06.880 --> 0:17:09.080 too much. So I think perhaps just in terms of 0:17:09.160 --> 0:17:11.879 rate rises, perhaps that's baked in. But there's more to 0:17:11.960 --> 0:17:14.760 this talkish picture. Again, there's a balance sheet runoff. That's 0:17:14.760 --> 0:17:16.600 something you'd see on the long end, and indeed we 0:17:16.640 --> 0:17:19.680 saw long end yields go up. And there's this question 0:17:20.119 --> 0:17:23.439 that Andrew Bailey said yesterday the BOE Governor Bank of 0:17:23.720 --> 0:17:27.560 uh England governor saying that, look, there is this concern 0:17:27.720 --> 0:17:30.639 about the economy. The economy might slow. It's kind of 0:17:30.680 --> 0:17:33.399 the quiet thing that not many central bankers are saying 0:17:33.400 --> 0:17:35.680 out loud. So you know, while they're on this project 0:17:35.720 --> 0:17:39.560 of dialing back and and easing, getting rid of the 0:17:39.560 --> 0:17:41.679 easing that they had done over the pandemic, I mean, 0:17:41.680 --> 0:17:43.959 there's a chance that hurts the economy and that's not 0:17:43.960 --> 0:17:46.960 good for risk assets. Yeah, certainly that was a sentiment 0:17:47.000 --> 0:17:51.159 we heard from Lisa Ange Saunders, from Charles Schwab that 0:17:51.240 --> 0:17:53.280 the market might not be fully pricing in the risk 0:17:53.320 --> 0:17:55.720 of recession at this point. We're speaking with Ben Laidler 0:17:55.880 --> 0:17:58.800 last hour. He's looking ahead to the jobs report later 0:17:58.800 --> 0:18:02.160 this morning, the piece the data coming out next week. 0:18:02.840 --> 0:18:05.440 Are we in line for more volatility on economic data? 0:18:05.960 --> 0:18:08.320 I think so. I I think honestly it's just going 0:18:08.359 --> 0:18:11.359 to be volatile from here. One. Liquidity is is pretty low, 0:18:11.480 --> 0:18:15.080 and I don't think we really have a great grasp 0:18:15.240 --> 0:18:18.000 of central banks right now. Economists have really struggled to 0:18:18.040 --> 0:18:21.120 get a lot of these data points right um. Too 0:18:21.400 --> 0:18:23.919 much criticism over the past two years, and if we 0:18:23.960 --> 0:18:26.639 can't really grasp what the common data is going to be. 0:18:26.680 --> 0:18:29.640 We're struggling to kind of understand how central banks are 0:18:29.640 --> 0:18:31.560 doing this, and I think we've gone into this period 0:18:31.640 --> 0:18:35.480 underestimating the power that the FED, that the b o E, 0:18:35.560 --> 0:18:38.399 that central banks around the world have in terms of 0:18:38.440 --> 0:18:40.679 moving these markets. So I think that's only going to 0:18:40.720 --> 0:18:44.240 continue as we get data releases. Bloomberg's Danny Burger on 0:18:44.280 --> 0:18:47.840 this flat market on a week basis. Danny, always great 0:18:47.840 --> 0:18:51.680 talking with you, Bloomberg television anchor and markets correspondent, Danny Burger, 0:18:51.720 --> 0:18:55.639 Thank you, Danny. This is the Big Take, the best 0:18:55.720 --> 0:18:59.320 of Boomberg's in depth, original reporting from around the globe. 0:18:59.800 --> 0:19:03.200 Really fast moving story that's caused a lot of outrage 0:19:03.240 --> 0:19:06.840 among investors. This is so fascinating. The market shutdown in 0:19:06.840 --> 0:19:09.639 a way it's never done before. That's gonna have consequences 0:19:09.720 --> 0:19:12.920 for years to come. The Big Take on bloom Bird 0:19:13.040 --> 0:19:16.800 Radio to the six and Wall Street now in our 0:19:16.840 --> 0:19:19.480 Big Take story this morning is about the right hand 0:19:19.600 --> 0:19:23.160 man next to the world's richest man, the fixer who 0:19:23.200 --> 0:19:28.120 handles Elon Musk's fortune and in many cases, his dirty work. 0:19:28.359 --> 0:19:31.880 Bloomberg's Ben Stubbles is with us now from more on 0:19:32.040 --> 0:19:35.400 this Big Take story, Ben, good morning, tell us more 0:19:35.440 --> 0:19:40.199 about Jared Birchall and I think, yeah, Jared Burchell, he's 0:19:40.200 --> 0:19:43.240 an interesting individual. He's forty seven year old man foreman, 0:19:43.280 --> 0:19:46.359 Morgan Stanley banker. And yeah, as you say, he deals 0:19:46.400 --> 0:19:50.360 with everything the personal affairs of the world's richest man 0:19:50.480 --> 0:19:53.119 that that has ranged from it as he sort of 0:19:53.200 --> 0:19:56.880 hinted too earlier, hiring a private investigator over the lawsuit 0:19:57.000 --> 0:19:59.000 that even must faced and one I have to say, 0:19:59.320 --> 0:20:02.040 and recording it, which is scuba expert, a pedo guy. 0:20:02.400 --> 0:20:05.639 And it also includes the dealing with Wall Street Banks, 0:20:05.640 --> 0:20:09.000 for example, over the Twitter takeover and actually helping to 0:20:09.080 --> 0:20:13.240 actually get extra individual investors such as Oracle Corps Larry 0:20:13.280 --> 0:20:16.040 Ellison to help finance that deal as well. So you 0:20:16.040 --> 0:20:19.679 can sort of see the scope of the affairs. That's 0:20:19.720 --> 0:20:22.159 this thing. The thing. I'm Karen Moscow along with in 0:20:22.280 --> 0:20:24.760 Nathan Hagar, and we're just about three hours away from 0:20:24.760 --> 0:20:27.160 the open of US trading. Time for the five things 0:20:27.160 --> 0:20:29.080 you need to notice start your day. Brought to you 0:20:29.200 --> 0:20:33.600 by Interactive Brokers. Interactive Brokers charges Martin loan rates from 0:20:33.640 --> 0:20:36.280 zero point a three percent to one point three percent 0:20:36.560 --> 0:20:38.840 rates subject to change. Learn more at ib k R 0:20:38.920 --> 0:20:42.880 dot Com slash compare. The first futures are lower after 0:20:43.000 --> 0:20:45.960 back to back days of volatile trading. The market surged 0:20:46.040 --> 0:20:49.320 Wednesday and then came yesterday sell off. The NASDAG dropped 0:20:49.359 --> 0:20:51.560 five percent and the S and P slipped more than 0:20:51.600 --> 0:20:54.440 three and a half percent. And investors today will react 0:20:54.480 --> 0:20:57.359 to the April jobs report media and forecasts for a 0:20:57.480 --> 0:21:01.040 gain of three hundred eighty thousand non jobs in a 0:21:01.080 --> 0:21:03.879 three and a half percent unemployment rate. Megan Green is 0:21:03.880 --> 0:21:07.639 Global chief Economist at Kroll Or. Importantly, unemployment is probably 0:21:07.720 --> 0:21:10.440 going to take down even further, and crucially, I think 0:21:10.440 --> 0:21:13.960 the participation rate will take up as workers jumped back 0:21:14.000 --> 0:21:17.960 into the labor force and Kroll Global Chief Economist Megan 0:21:18.000 --> 0:21:20.880 Green spoke with Joe Matthew on Bloomberg Sound on Catch 0:21:20.920 --> 0:21:23.520 the show weekdays at five pm Easter and on Bloomberg 0:21:23.600 --> 0:21:25.919 Radio and stick with the Bloomberg throughout the morning for 0:21:25.960 --> 0:21:29.000 complete analysis of the job's your poor to Labor. Secretary 0:21:29.040 --> 0:21:31.920 Marty Walsh joins us at five am Wall Street Time 0:21:32.160 --> 0:21:35.200 on both Bloomberg Radio and television. All right, Karen turned 0:21:35.240 --> 0:21:38.199 into the White House. Now. President Biden met with a 0:21:38.200 --> 0:21:42.240 group of labor organizers yesterday, including a former Amazon worker 0:21:42.280 --> 0:21:45.040 who led a drive for a union on Staten Island. 0:21:45.040 --> 0:21:48.240 That worker, Christian Smalls, spoke about the meeting with Bloomberg's 0:21:48.240 --> 0:21:51.119