Speaker 1: Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg
Speaker 1: day Break for Tuesday, June fourteen, two. Coming up this hour,
Speaker 1: US futures rebound after yesterday's massive sell off. Traders bet
Speaker 1: the Fed could turn even more hawkiship this week's policy meeting.
Speaker 1: Oil prices stay high as President Biden prepares to visit
Speaker 1: Saudi Arabia, and Elon Musk addresses Twitter staffers for the
Speaker 1: first time since his takeover. Bed New York State expands
Speaker 1: protections from people seeking abortions. Plus the Republican governor candidates
Speaker 1: debate ahead of New York State primary by Michael Barner.
Speaker 1: More ahead, I'm John stash Our. In sports, the Warriors
Speaker 1: beat the Southeast. They leave the NBA Final three games
Speaker 1: at two. The Mets of Yankees at home games tonight.
Speaker 1: That's all s traded ahead on Bloomberg Daybreak on Bloomberg.
Speaker 1: He Living Free on New York, Bloomberg one, Washington d C,
Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixties and
Speaker 1: Francisco Sirius x M one nineteen and around the world
Speaker 1: Old on Bloomberg Radio dot Com and by the Bloomberg
Speaker 1: Business app. Good morning. I'm Nathan Hagart and I'm John Tucker.
Speaker 1: Bloomberg day Break being brought to you by Informattica in
Speaker 1: the Cloud, your data has the power to do the extraordinary.
Speaker 1: Managed data across any location in the cloud for accurate
Speaker 1: and actionable insights. More at informattica dot com. And futures
Speaker 1: are bouncing back on this Tuesday morning. It's six l
Speaker 1: one on Wall Street and we check the markets every
Speaker 1: fifteen minutes during the trading day on Bloomberg. Right now,
Speaker 1: SNP futures are up sixteen points, Staff futures up, NASTAC
Speaker 1: features higher by eighty points, The tenure Treasury is up
Speaker 1: fourteen thirty seconds. The yield three point three zero percent
Speaker 1: yield on the two year three point to nine nime
Speaker 1: x crew trading at a D one dollar seventy six
Speaker 1: cents of barrel. John. The SNP five hundred finished yesterday's
Speaker 1: trading more than twenty percent below its last record, closed,
Speaker 1: entering a bear market and ending a two year bull
Speaker 1: run defiance. T S Chief investment Officer Sylvia Jablonsky tells
Speaker 1: us she expects more uncertainty moving forward. Has been hot
Speaker 1: for quite some time. It's going to remain hot for
Speaker 1: quite some time, so until that eases up, we're probably
Speaker 1: gonna have this volatility. With US Chief defiance e t
Speaker 1: f c I O Sylvia Jablonsky says inflation headwinds have
Speaker 1: gotten worse since Friday's CPI reading. Well this quarter, John
Speaker 1: is set to deliver the biggest combined loss for global
Speaker 1: bonds and stocks on record. The question for investors now
Speaker 1: is whether the Federal Reserve and other central banks hit
Speaker 1: their economies into recession to curb inflation. Central banks get
Speaker 1: further insight on prices today with the latest reading on
Speaker 1: May Producer prices that day just do out at eight
Speaker 1: thirty am Wall Street time, and also today the Fed
Speaker 1: begins it's today policy meeting, and officials may consider a
Speaker 1: more hawky is she interest rate increase than originally planned.
Speaker 1: Bloomberg's Michael McKee gives us a preview. Surprisingly strong pickups
Speaker 1: in consumer prices and inflation expectations now look likely just
Speaker 1: for the biggest interest rate increase its Fed officials had
Speaker 1: coal used around a fifty basis point hike going into
Speaker 1: their two day meeting, which begins this morning, but a
Speaker 1: big rise in the May consumer Price Index, coupled with
Speaker 1: two surveys showing higher inflation becoming embedded in consumer expectations,
Speaker 1: pushed investors to increase bets on a seventy five basis
Speaker 1: point increase. Those bets hardened following media reports Monday the
Speaker 1: central bankers would consider the larger move. Economists that major
Speaker 1: Wall Street firms were quick to change their calls. Goldman,
Speaker 1: Nomra and JP Morgan Chase joined Barclays and Jeffreys in
Speaker 1: forecasting a three quarters point move. The FED decision will
Speaker 1: be announced at two pm Wall Street time on Wednesday.
Speaker 1: Michael McKee Bloomberg Daybreak. All Right, Thanks Mike, and join
Speaker 1: us for live coverage of that FED decision on a
Speaker 1: special edition of Bloomberg Surveillance that kicks off tomorrow at
Speaker 1: one thirty pm Eastern on Bloomberg Radio and Television. Right
Speaker 1: that Johnson Big US banks are signaling more concerned for
Speaker 1: the economy. Investor fears of stagflation are at their highest
Speaker 1: since the two thousand and eight financial crisis, while global
Speaker 1: growth optim him has sunk to a record low. That's
Speaker 1: according to Bank of America's monthly Fund Manager Survey. Morgan Stanley,
Speaker 1: CEO James Gorman says he sees the risk of US
Speaker 1: recession at about fift likely at this stage to go
Speaker 1: into a deeper, long recession. It's possible we go in
Speaker 1: to recession obviously probably now um, but that's that's okay.
Speaker 1: Morgan Stanley CEO James Gorman's Focusterday at the Morgan Stanley
Speaker 1: US Financials, Payments and cre E Conference at Overseas Stocks
Speaker 1: in Europe treading water, not bouncing back from yesterday's lasses.
Speaker 1: The stocks to Your six hundred index right now is
Speaker 1: down four points overnight. In Asia. What he's followed US stocks,
Speaker 1: Flower Bloombridge. Juliet Sally joins us with the latest from Singapore. Juliet,
Speaker 1: good morning, Good morning, John and Nathan. The m s
Speaker 1: c I Asia Pacific Index film more than one and
Speaker 1: a half percent in a day with busses from Japan
Speaker 1: to Charter in Hong Kong all in the red. Australia underperformed.
Speaker 1: Does that market played catch up? Following a public holiday Monday?
Speaker 1: The a SX two hundred was down more than five
Speaker 1: percent during the day's trade. It were a session in
Speaker 1: more than two years. Short dated bonds across the region
Speaker 1: slumped while the Bank of Japan boosted bond purchase operations
Speaker 1: to keep yields in check. In Singapore, Juliet Sally Bloomberg
Speaker 1: Daybreak and Julian has been a wild ride for risk assets.
Speaker 1: Just look at crypto. Bitcoin fell fifteen percent yesterday. Perhaps
Speaker 1: no sector's seen a so off sharper than digital currencies.
Speaker 1: Right now, bitcoins trading at about two dollars and oil
Speaker 1: trading near one hundred two dollars of allars investor's way
Speaker 1: a tight supply outlook. It comes as the White House
Speaker 1: plans for a president buying the visit Saudi Arabia next month.
Speaker 1: The administration won't press the kingdom to increase production, it says,
Speaker 1: But as mp Global Vice Cheer Dan Jurgen says, oil
Speaker 1: will be on the agenda. It's hard to believe that
Speaker 1: he would be going to study if it wasn't for oil.
Speaker 1: I think if he does come, they'll start to put
Speaker 1: more oil to the market. They've done done a little
Speaker 1: bit more. The thing is that there isn't much more
Speaker 1: oil in Saudi Arabia, and the UAE too really significant
Speaker 1: league change the market, s and B Vice chair Dan,
Speaker 1: you're going speaking to David West on Bloomberg's Balance of Power.
Speaker 1: Catch that program Noon Wall Street, Time of Bloomberg Radio
Speaker 1: on TV. All right, let's turn to corporate news now,
Speaker 1: John and talk about Twitter. Elon Musk has set to
Speaker 1: address staff at the social media company directly this week.
Speaker 1: Bloomberg's Rnda Young joins US Live with what we know
Speaker 1: about that so far? Renia, Good morning, Good morning, Nathan Bloomberg.
Speaker 1: Sources say this will be the first time Elon Musk
Speaker 1: addresses Twitter employees since agreeing to buy the company for
Speaker 1: forty four billion dollars, and Musk will take questions as
Speaker 1: the Thursday morning virtual meeting. Now. The company has been
Speaker 1: in a chaotic state since the deal was announced back
Speaker 1: in April, and many employees are not happy with Musk.
Speaker 1: He's been critical of the company and questions the amount
Speaker 1: of spam accounts. Meantime, Twitter CEO has announced a series
Speaker 1: of cost cutting measures since the deal came together. Live
Speaker 1: in New York, I'm Nita Young, Bloomberg Day Break, All Right,
Speaker 1: thanks to Nada and ahead of the cash put on
Speaker 1: Wall Street. Dal futures right now seventy two points higher.
Speaker 1: That's up two tens of percent. The S and P
Speaker 1: future is up twelve and that as the Commany futures
Speaker 1: right now after yesterday's massive sell off sixty three points higher.
Speaker 1: As we look at yields right now, the ten year
Speaker 1: three thirty one that is down four basis points. You're
Speaker 1: listening to Bloomberg day Break pass dound six seven on
Speaker 1: Wall Street Time to bring in Michael Barr to find
Speaker 1: out what else is going on to New York had
Speaker 1: around the world. John, Thank you very much, Sarah. New
Speaker 1: York has expanded legal protections for people seeking and providing
Speaker 1: abortions in the state under legislation signed by Governor Kathy Hokel.
Speaker 1: The Democratic governor pushed for the laws and anticipation of
Speaker 1: the U. S. Supreme Court potentially over ruling it's n
Speaker 1: seventy three Real Vway decision, which established a constitutional right
Speaker 1: to abortion. Must the hard fought battles from my mother's generation,
Speaker 1: my generation, my thirty year old daughters generation have to
Speaker 1: be inherited by my new granddaughter's generation as well. Well.
Speaker 1: Apparently so, Governor Hokel says. One new law protects abortion
Speaker 1: providers from arrest, extradition, and legal proceedings in other states
Speaker 1: by forbidding new York State from cooperating. Most scenarios for
Speaker 1: Republican candidates for New York governor based off last night
Speaker 1: and their first televised debate with two weeks ago before
Speaker 1: the state's primary election. Some of the sharpest exchanges of
Speaker 1: the night came between US Representative Lee Zelden and businessman
Speaker 1: Harry Wilson, who has said he did not vote for
Speaker 1: Donald Trump. In Zelden repeatedly assailed Wilson as a never
Speaker 1: Trumper and a Republican in name only. I believe that
Speaker 1: we're battling for the heart and soul of our country,
Speaker 1: and it's not just the Democrats, but it's the Rhinods
Speaker 1: like Harry Wilson. We're out there making sure that we
Speaker 1: have this moment in time with one party democratic rule
Speaker 1: in Washington. D C. Wilson responded, Now, Mr Zeldon is
Speaker 1: going to go onto a series of attach You saw
Speaker 1: him even before I had a chance to speak, just
Speaker 1: like he started attacking before I ran my campaign, because
Speaker 1: he's scared, because he's a broken candidate. Wilson claimed that
Speaker 1: in January es Elden had asked him to be his
Speaker 1: running mate. The Republican Field Air and on CBS two
Speaker 1: also included former Westchester County executive Rob Astino and Andrew Giuliani,
Speaker 1: the son of former New York City Mayor Rudy Giuliani.
Speaker 1: Attorney General Merritt Garland confirms he is keeping an eye
Speaker 1: on all of the House committees hearings on the January
Speaker 1: sixth Capitol Riot. However, Garland is choosing not to elaborate
Speaker 1: on the current status of a possible investigation against Donald Trump.
Speaker 1: The Justice Department's longstanding position is that we don't commenting
Speaker 1: don't comment an ongoing investigations. During a second day of hearings,
Speaker 1: former Attorney General William Barr said Trump seemed detached from
Speaker 1: reality that he had lost the election. Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than seven hundred journalists and analysts more
Speaker 1: than hundred twenty country Michael barn This is Bloomberg, John, Michael,
Speaker 1: thank you. That's how six ten on Wall Street Bloomberg
Speaker 1: Sports Update. Here's John sent show. Thanks John. Golden State
Speaker 1: Warriors can win the NBA Championship Thursday in Boston. If
Speaker 1: they lose, they'll have another chance with the game seven
Speaker 1: Sunday in San Francisco, where last night the Warriors started
Speaker 1: the fourth quarter with a ten up and running. They
Speaker 1: won Game five by ten one oh four ninety four.
Speaker 1: They leave the series three to two. All five games
Speaker 1: in the series have been won by at least ten points.
Speaker 1: Andrew Wiggins led Going State twenty six points. Clay Thompson
Speaker 1: had twenty one. Steph Curry, who scored forty three points
Speaker 1: in Game four, did not make a single three pointer.
Speaker 1: That had not happened since November of two thousand eighteen,
Speaker 1: two hundred and thirty three games ago. Mets back home
Speaker 1: from the road trip. They'll play Milwaukee, who just daded
Speaker 1: in any team losing straight. The Yankees, winners of a
Speaker 1: letter of the last twelve, host Tampa Bay. It's Garrett
Speaker 1: Cole versus the x Yank Corey club. Cole comes off
Speaker 1: the outing where he gave up five home runs. Josh
Speaker 1: Donaldson and I will serve the one game suspension he
Speaker 1: got for comments made to the White Sox Tim Anderson.
Speaker 1: Donaldson's appeal was denied. The US Open t s off Thursday,
Speaker 1: Brookline mass All Eyes. Yesterday on Phil Mickelson asked repeatedly
Speaker 1: about his decision to leave the PGA tour for the
Speaker 1: new Saudi Back Live Tour, and after that doing that
Speaker 1: when most of the nine eleven terrorists were from Saudi Arabia,
Speaker 1: I would say to everyone that his lost loved ones,
Speaker 1: lost friends and nine eleven that I have deep, deep
Speaker 1: empathy for them. Um. I can't emphasize that enough. Well,
Speaker 1: those that have joined the lift to have been suspended
Speaker 1: by the PG the U s g A runs the
Speaker 1: Open is allowing them to play. Michoelson's never won the Open,
Speaker 1: He's been his second six times. John stash Awar, Bloomberg Sports.
Speaker 1: John all right, thanks John, and ahead of the cash
Speaker 1: show with the Wall Street futures right now in the
Speaker 1: green lead down Futures fifty four points, SMP futures up eleven,
Speaker 1: Banzas up sixty one points. This day, Brick and Japery
Speaker 1: being brown to by Hot University's Frank gez Are School
Speaker 1: of Business, Top rank online NBA program with a real
Speaker 1: world foundation. Learn more. Ad Hofster dot e, d U
Speaker 1: slash go, grab markets, headlines and breaking news twenty four
Speaker 1: hours a day at Bloomberg dot Com, the Bloomberg Business
Speaker 1: at and at Bloomberg Quick Take This is a Bloomberg
Speaker 1: business lash. I'm Nathan Hager. Futures are higher, but they're
Speaker 1: pulling back on some of their games this morning in
Speaker 1: a rebound in European stocks is proving short lived, suggesting
Speaker 1: markets might not be out of the woods just yet,
Speaker 1: after a route driven by expectations of sharper Federal Reserve
Speaker 1: interest rate hikes to fight inflation. We checked the markets
Speaker 1: for you every fifteen minutes during the trading day on Bloomberg.
Speaker 1: Right now, SMP futures are up six points, Dow future
Speaker 1: is up twenty five, Nastack futures higher by forty six points.
Speaker 1: Germany's dex is now down eight tenths of one percent.
Speaker 1: The CACK in paris lower by one point four percent.
Speaker 1: The tenure Treasury is up fourteen thirty seconds, the yield
Speaker 1: three point three zero percent two year just behind at
Speaker 1: three point to nine. I'm x screwed is up a
Speaker 1: half percent of sixty four cents at a hundred twenty
Speaker 1: one dollars fifty seven cents of barrel comex golled down
Speaker 1: four tenths per cent, or six dollars eighty cents at
Speaker 1: eighteen ninety announce. The euro one point zero four three
Speaker 1: eight against the dollar, British pound one point to one
Speaker 1: one two the yen one thirty four point one seven
Speaker 1: Quick check a bitcoin twenty two thousand, three hundred dollars.
Speaker 1: That's a Bloomberg business flash. Now here's Michael barr with
Speaker 1: more on what's going on around the world. Michael Nathan,
Speaker 1: thank you very much. Donald Trump's closest campaign advisors were
Speaker 1: dismantling his false claims of twenty twenty election fraud ahead
Speaker 1: of the January six attack on the Capitol. During yesterday's
Speaker 1: House hearing, former Attorney General William Barrs said the defeated
Speaker 1: presidents seemed that attached firm reality. China has released a
Speaker 1: long detained Bloomberg News employee, Hayes Fan, has been released
Speaker 1: on bail after more than a year and the tension.
Speaker 1: She was held on suspicion of national security law violations.
Speaker 1: The case remains under investigation while Fan is on bail
Speaker 1: pending trial. In Game five of the NBA Finals, the
Speaker 1: Celtics are on the brink of elimination. Boston loss to
Speaker 1: the Warriors one oh four ninety four. In baseball, the
Speaker 1: Nationals and Orioles lost the giants one Global News twenty
Speaker 1: four hours a day on here and on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: more than twenty countries. Michael barn this is Bloomberg, John, Michael,
Speaker 1: thank you. It is coming up on six twenty on
Speaker 1: Wall Street. We are live from the Bloomberg Interranta Broker Studios.
Speaker 1: This is Bloomberg Day Break. Well the route. Yesterday I
Speaker 1: raised one point three trillion dollars at market capitalization from
Speaker 1: stocks at this quarter, also set to deliver the biggest
Speaker 1: combined loss for global bonds and stocks on record and
Speaker 1: data going back to With that in mind, let's get
Speaker 1: you set up for the training day ahead with Brian Leavitt,
Speaker 1: Global market Strategists at the Investo. Did you see signs
Speaker 1: of capitulation yesterday? Yeah, we're starting to see signs of capitulation,
Speaker 1: which is of course, um not what you want to see,
Speaker 1: but better news as you're moving through a downturn. Now
Speaker 1: we're probably not all the way there. Usually you see
Speaker 1: the volatility index of VICX up around forty UM. Usually
Speaker 1: see the number of stocks trading above their two day
Speaker 1: moving average down, you know, probably around ten percent, We're
Speaker 1: we're still in the twenties, so we're not all the
Speaker 1: way there, but but certainly moving closer. As you know,
Speaker 1: investors become ever more fearful about rising interest rates amid
Speaker 1: all this insulation. What is the expectation for you from
Speaker 1: the Federal Reserve? My expectation was fifty basis points where
Speaker 1: you're starting to see some rumblings that se could be
Speaker 1: in the offing. So, UM, we'll see. But I the
Speaker 1: more there's smoke around seventy five basis points, I suspect
Speaker 1: that we may be heading there. It could be the center,
Speaker 1: it could be the point that you know, this is
Speaker 1: starting to be leaked out to prepare the markets for it. Um.
Speaker 1: I think a lot of investors are saying, let's get
Speaker 1: on with it now, Um, you know where we know
Speaker 1: the rate hikes are coming, let's front load them. Let's
Speaker 1: get on with it. We'll see how the markets respond
Speaker 1: to it. But clearly, if you look at where the
Speaker 1: two year rate is, it has priced in a substantial
Speaker 1: amount of tightening already. He's elevated inflation here to stay.
Speaker 1: In some respects, I would say that inflation is going
Speaker 1: the rate of change inflation is going to come down.
Speaker 1: We're already starting to see it a bit in goods prices.
Speaker 1: What investors need to grapple with is whether we have
Speaker 1: a higher sustained environment than we had in the prior cycle.
Speaker 1: Now that of course doesn't mean eight percent inflation, but
Speaker 1: you know, does it settle in somewhere around two and
Speaker 1: a half to three percent versus the prior cycle where
Speaker 1: we were trying to get to two And I would
Speaker 1: suggest that's likely given some of the closer to home
Speaker 1: production that we're going to see. And you know, in
Speaker 1: a two and a half three percent inflation environment, that's
Speaker 1: where value stocks are more interesting. Whereas the prior cycle
Speaker 1: with inflation solo, it was it was all about growth
Speaker 1: because there was never a catalyst to drive value stocks
Speaker 1: higher at a thirty this warning, of course, we're going
Speaker 1: to get the producer price index when trying to determine
Speaker 1: pressure on company margins. How important is this reading going
Speaker 1: to be today? Yeah, it's very important. I mean, anything
Speaker 1: that we're getting right now on inflation is going to
Speaker 1: be watched very closely by the market. Now, the last time,
Speaker 1: excuse me, we got the producer price in X on
Speaker 1: final demand, um, the year over year percent change had
Speaker 1: turned lower. Now we saw that similarly with the headline
Speaker 1: CPI as well, So we want to see signs. I'll
Speaker 1: be watching pp I on final demand. We want to
Speaker 1: see signs that that on your your percent change coming down.
Speaker 1: That would be a positive. We expect goods prices to
Speaker 1: fall in the coming months and the markets will be
Speaker 1: looking for classification on that. Today stocks and bonds have
Speaker 1: been hit. So what's the alternative at this point, Well,
Speaker 1: investors should not be quick to sell government bonds. Now,
Speaker 1: of course you have not seen a very good environment
Speaker 1: with rates going up as rapidly as they have, but
Speaker 1: the concern starts to shift over time from an inflation
Speaker 1: environment to a growth scare, and government bonds in a
Speaker 1: slowdown or dare we even say o recessionary environment should
Speaker 1: perform well, So I would not be moving away from them.
Speaker 1: But you know, investors also want to diversify into other
Speaker 1: parts of the market, particularly those that could hedge inflation
Speaker 1: um assuming that if this were to persist, things like commodities,
Speaker 1: things like real estate investment trusts can do a good
Speaker 1: job of providing some protection against its lation in a portfolio.
Speaker 1: Is it a recession call for you. I think we're
Speaker 1: getting closer. Um. You know, the the odds of a
Speaker 1: recession are elevated. If you think about the the usual
Speaker 1: trappings of a recession, you see high en rising inflation,
Speaker 1: a flat to an inverted heel curve, a strong dollar,
Speaker 1: consumer sentiment weakening. So we have all of that. Of course,
Speaker 1: credit spreads have been holding in, which would be the
Speaker 1: last to go. So I would say that the risks
Speaker 1: to the cycle are elevated. I wouldn't believe that a
Speaker 1: recession is imminent, but the rest of the cycle are
Speaker 1: certainly elevated. Brian olays a pleasure. Brian Levitt, global market strategist,
Speaker 1: to add in, best go with us this morning, and
Speaker 1: we're starting to see the futures deteriorate this morning. The
Speaker 1: DOWN futures now up just twenty one points as and
Speaker 1: b E many futures of just seven points right now
Speaker 1: and after yesterday sell off, the nastac EMNI futures fifty
Speaker 1: five points higher. That's up about half of percent. You're
Speaker 1: listening to Bloomer Daybreak and Bloomberg Daybreak being brought to
Speaker 1: you by the Jewish Community Fund j C M. S.
Speaker 1: Dilner advised flag the smart choice to bandage your philanthropy,
Speaker 1: especially in times of crisis. Make your giving impactful. Visit
Speaker 1: j c f n Y dot or org. Broadcasting live
Speaker 1: from the Bloomberg Interactive Brokers Studio in New York, Bloomberg
Speaker 1: E Living Freedom to Washington, d C, Bloomberg to Boston,
Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg nine
Speaker 1: sixty to the country, Sirius XM to A one nine team,
Speaker 1: and around the globe the Bloomberg Business apt and Bloomberg
Speaker 1: Radio dot com. This is Bloomberg day Break and the
Speaker 1: at six thirty on Wall Street. Good morning, I'm John Tucker,
Speaker 1: I'm Nathan Hager. We're about three hours away from the
Speaker 1: open of US training. It's time for the five Things
Speaker 1: you need to know to start your day, brought to
Speaker 1: you by it are Active Broker's Global Analysts helps you
Speaker 1: find new global investment opportunities to diversify your portfolio and
Speaker 1: discover undervalued companies that may have greater growth potential. Try
Speaker 1: ib KR Global Analysts today at i b k R
Speaker 1: dot com slash g A At first the SMP five
Speaker 1: finished yesterday's trading more than twenty percent below its last
Speaker 1: record close, entering a bear market. Currently, smp futures are
Speaker 1: bouncing back a bit. They're up about ten points right now,
Speaker 1: even with the sell off, define and ct F Chief
Speaker 1: Investment Officer Sylvia Jablonsky tells us there is reason for optimism.
Speaker 1: We're in the first half of the year. It's not
Speaker 1: even over yet, although it feels like a decade, and
Speaker 1: earnings are still looking strong. Consumers strong, corbor balance sheets
Speaker 1: are strong. I know there's a lot of you know,
Speaker 1: debate about that, but the numbers and the big large,
Speaker 1: you know, the larger macroeconomic factors are still fairly positive.
Speaker 1: Sylvia Jablonski, with Chief Definance CTF, says investors could see
Speaker 1: higher returns this year if inflation and supply chain bottlenext ease.
Speaker 1: And still for traders, it's all about the Fed right now.
Speaker 1: The Central Bank begins. It's to the policy meeting today
Speaker 1: and reports in the cave the Fed could raise rates
Speaker 1: by sevent basis points, the highest hike since turning to
Speaker 1: oil cruise holding steady around a hundred twenty two dollars
Speaker 1: of bare old. Now we're learning the White House plans
Speaker 1: for President Biden to visit Saudi Arabia next month. SP
Speaker 1: Global Vice Chair Dan Jurgen says, even if the Kingdom
Speaker 1: increases production, it may not have much of an effect
Speaker 1: on prices. The markets are very tight, and so even
Speaker 1: though you would expect that with what's happened to the overall,
Speaker 1: it seems to be happening to the overall economy is slowing,
Speaker 1: it's not showing up and yet in demand for oil.
Speaker 1: Sp Vice Chair Dan Jurgen spoke with David Weston on
Speaker 1: Bloomberg's Balance of Power weekdays at noon Eastern on Bloomberg
Speaker 1: Radio and Television and turning the corporate news Let's Talk Twitter.
Speaker 1: Elon muss set to address staff at the company directly
Speaker 1: this week Bloomberg's would need a young joins us Live
Speaker 1: with more real even good morning, Good morning John. Bloomberg.
Speaker 1: Sources say this will be the first time Elon Musk
Speaker 1: addresses Twitter employees since agreeing to buy the company for
Speaker 1: forty four billion dollars, and Musk will take questions at
Speaker 1: the Thursday morning virtual meeting. Now, the company has been
Speaker 1: in a chaotic state since the deal was announced in April.
Speaker 1: Musk has been critical of the company and questions the
Speaker 1: amount of spam accounts. Meantime, Twitter CEO has announced a
Speaker 1: series of cost cutting measures since the deal came together.
Speaker 1: Live in New York. I'm gonna need a young Bloomberg
Speaker 1: day break, all right, we need to thank you again.
Speaker 1: SMP futures up about eleven points now down, futures up
Speaker 1: fifty one, Nastact futures up seventy points ten. Your treasury
Speaker 1: yield three point to nine percent. That's the five things
Speaker 1: you need to know to start your day. Brought to
Speaker 1: you by Interactive Brokers. This is Bloomberg, all right, thanks
Speaker 1: Nathan three on Well Street. Time to bring in Michael
Speaker 1: Barr to tell us what else is going on in
Speaker 1: New York and around the world. Yeah, thank you very much, sir.
Speaker 1: New York has expanded legal protections for people seeking and
Speaker 1: providing abortions in the state. Governor Kathy Local signed legislation
Speaker 1: and anticipation of the U. S. Supreme Court, potentially overruling
Speaker 1: its nineteen seventy three Roe v. Way Each decision, which
Speaker 1: established a constitutional rights to abortion. This is the right
Speaker 1: to control our own bodies was supposed to be well
Speaker 1: settled president by now, or so we thought. Governor Hokel
Speaker 1: says the new laws planned to give abortion providers thirty
Speaker 1: five million dollars to expand services and boost security and
Speaker 1: anticipation of an influx of out those state people seeking
Speaker 1: abortions in New York. Attorney General Merrick Garland confirmed he
Speaker 1: watched the committee's hearings closely on the January sixth Capital riot,
Speaker 1: even as he faces increased pressure to investigate former President
Speaker 1: Donald Trump. Garland didn't comment on the current status of
Speaker 1: a possible investigation against Trump, but at this point this
Speaker 1: investigation is proceeding, acquiring effects and the law a g
Speaker 1: Garland as Trump's top government officials and even his family
Speaker 1: were dismantling his false claims of twenty election fraud ahead
Speaker 1: of the January six attack on the Capitol. The four
Speaker 1: GOP candidates run for New York governor debated topics last
Speaker 1: night from crime, the economy, and former President Trump. During
Speaker 1: the debate aired on CBS two, Andrew Giuliani, the son
Speaker 1: of the former New York mayor, was asked about the hearings.
Speaker 1: You know, the media has been fixated on January six
Speaker 1: for the better part of a year and a half now,
Speaker 1: and I would like to see a congressional hearing on
Speaker 1: the two hundred and seventy four riots that happened between
Speaker 1: May and June of January five one rather than just
Speaker 1: a one day where the video is completely focused on
Speaker 1: Giuliani is a former advisor to Trump. Other candidates at
Speaker 1: the debate included US Representative Lee Zelden, businessman Harry Wilson,
Speaker 1: and former Westchester County executive Rob Estino. Millionaires are planning
Speaker 1: to get out of Russia. New analysis of migration data
Speaker 1: from Henley and Partners shows about fift of Russians with
Speaker 1: more than one million dollars in assets are expected to
Speaker 1: immigrate to other countries by the end of the year.
Speaker 1: It comes as wealthy citizens are turning their back on
Speaker 1: Vladimir Putin's regime after the invasion of Ukraine. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg
Speaker 1: quick Take, powered by more than twenty seven hundred journalists
Speaker 1: and analysts, are more than a hundred twenty countries. Michael
Speaker 1: Barr and this is Bloomberg, John, Michael, thank you. That's
Speaker 1: how six thirty six on the Wall Street. That's time
Speaker 1: for the Bloomberg Sports Update. Here's John step Shower thanks
Speaker 1: John Golden State Warriors, of course, led by Steph Curry.
Speaker 1: That was obvious in Game four in Boston when Curry
Speaker 1: stored forty three points, but last night, Game five, Curry
Speaker 1: did not make a single three point. We shot oh
Speaker 1: for nine. It ends the streak of two hundred and
Speaker 1: thirty three games in a row with at least one
Speaker 1: dating back to November of two thousand eighteen, and the
Speaker 1: Warriors still one. They got twenty six points to ma
Speaker 1: Andrew Wiggins. They began the fourth quarter with a tend
Speaker 1: nothing run. They beat the Celtics one oh four ninety
Speaker 1: four first time in the playoffs. The Celtics have lost
Speaker 1: two in a row. Warriors made the NBA Finals three
Speaker 1: two game six Thursday in Boston. Golden State chance to
Speaker 1: win a fourth championship in the last eight years. If so,
Speaker 1: we'll see if NBA Commissioner Adam Silver can hand out
Speaker 1: the trophy. He missed last night's game. COVID Protocols Yankees
Speaker 1: and Matt's both home Tonight, Red Hot Yanks host Tampa Basins.
Speaker 1: Losing a couple of games with the Rays, the Yanks
Speaker 1: is going eleven and one. The Mets take on Milwaukee
Speaker 1: the Braves one again. They hit five home runs and
Speaker 1: won nine five in Washington, although they lost AlSi Albis
Speaker 1: to a broken fit Atlanta twelve and oh in June
Speaker 1: and then have five games behind the Mets. Bill Michelson
Speaker 1: met the media in Boston as he gets ready to
Speaker 1: play the US Open and starts Thursday, and of course
Speaker 1: asked repeatedly about his decision to play the new live tour.
Speaker 1: Phil did mention the money, incredible financial commitment. But more
Speaker 1: than that, uh, for for all the players involved and
Speaker 1: everyone involved. But more than that, there are other factors
Speaker 1: that with fewer tournaments, it allows me to have more
Speaker 1: balance in my life. Nicholson City understands the criticism, including
Speaker 1: that from fellow player, as we were sticking with the
Speaker 1: p John Stashberg Sports John John, thanks very much. It
Speaker 1: is now six thirty seven on Wall Street. Time to
Speaker 1: take a look at stocks and some of the names
Speaker 1: that are moving in the pre market, and for that
Speaker 1: we're joined by Bloomberg Radio and TV Markets, corresponded Crinny Gupta.
Speaker 1: On the broader tech front, just remind everybody that rates
Speaker 1: matter because with technology especially you're you're paying as an
Speaker 1: investor for future growth and with the rate trajectory higher,
Speaker 1: that future growth is going to be worth less. So
Speaker 1: with that in mind, can we take a look at
Speaker 1: the broad tech space? What a what a novel idea?
Speaker 1: John Ticker? Um, we go over this before she got
Speaker 1: thirty seconds ago, I said, John Tucker, let's talk about
Speaker 1: broad tech secret. I'm sorry, this is how the sausages made.
Speaker 1: As they say, this is important as we talk about
Speaker 1: the rebound today, which by the way, is already fading
Speaker 1: features down four tents of one percent. They wore up
Speaker 1: significantly more earlier in the session. Remember it's only six
Speaker 1: thirty eight in the morning. But to your point, a
Speaker 1: lot of this is going to be the tech story,
Speaker 1: because remember what performed the worst yesterday. It was, of course,
Speaker 1: those big tech names, essentially the stocks leading you to
Speaker 1: those record tis. Those are the same ones that are
Speaker 1: also going to lead you to some pretty scary lows here.
Speaker 1: And so today you're seeing a little bit of a rebound,
Speaker 1: but how much of it is sustainable. Let's let go
Speaker 1: through some of these numbers. Some of these movers Apple,
Speaker 1: for example, A A p LS, your taker up seven
Speaker 1: tenths of one percent. We like to look at us,
Speaker 1: look at that as a broad proxy for some of
Speaker 1: these tech names, and look yields down about six basis points,
Speaker 1: almost seven basis points three twenty nine on the tenure yield.
Speaker 1: Still nothing um to really reverse the I believe nineteen
Speaker 1: basis point move we had in the tenure yesterday. So huge,
Speaker 1: huge moves. But once again tech um is a little
Speaker 1: bit higher today. Tesla as well, t s l A
Speaker 1: up at one per cent. But John, it's not the
Speaker 1: high fancy megacap tech names I want to talk about.
Speaker 1: It's Oracle. I know, I know, gasp I said that
Speaker 1: their oracle isn't fancy. It is, but this kind is
Speaker 1: known as the it's known as like the old ared
Speaker 1: of tech. If you were looking to kind of invest
Speaker 1: from a business point of view, in terms of business investment,
Speaker 1: what companies are looking to kind of broaden their base,
Speaker 1: Oracle comes to mind, IBM, Microsoft, Those are the kind
Speaker 1: of names that you want to keep an eye on.
Speaker 1: And Oracle actually came out with some pretty strong earnings.
Speaker 1: Oh r c L is your ticker. Jeffreys coming out
Speaker 1: and saying the beat was driven by large license upside
Speaker 1: and strengthen the database business. Remember Oracles trying to climb
Speaker 1: and get more market share when it comes to the
Speaker 1: cloud business, which a lot of companies are still have
Speaker 1: yet to fully convert to. And right now those shares
Speaker 1: up thirteen percent in the pre market. I'm gonna give
Speaker 1: you a quick one, last fifteen seconds. I have AMC
Speaker 1: Entertainment is the other one you want to keep an
Speaker 1: eye on. We know of this as kind of well,
Speaker 1: we know of this as a meme stock, but today
Speaker 1: the move is actually coming after they said that last
Speaker 1: weekend's admission revenues beat that of the same weekend in
Speaker 1: twenty nineteen. I wonder how much of that had to
Speaker 1: do with Top Gun two, Top Gun two or Jurassic Park.
Speaker 1: The movie is so bad that um I was rooting
Speaker 1: for the dinosaurs to kill the bullock or kill the actors. Anyway,
Speaker 1: we're rooting for top one two. It better be Tom Cruise.
Speaker 1: I'm not I'm not gonna do. You're gonna get me
Speaker 1: in trouble SMP futures, So right now twelve points higher.
Speaker 1: Radio TV Markets corresponded, Critty, good to thanks for joining us.
Speaker 1: You're listening to Bloomberg and the Bloomberg Weather for meteorologist
Speaker 1: Ron Carolins the morning clowns with a chance of a
Speaker 1: straight sprinkle or isolated shower, otherwise partly sunny today in
Speaker 1: the mid of the eighties, markets, headlines and breaking news
Speaker 1: twenty four hours a day at Bloomberg dot Com, the
Speaker 1: Bloomberg Business and at Bloomberg Quick Tape. He's a Bloomberg
Speaker 1: Business Flash. I'm Nathan Hagar. Futures are bouncing back a
Speaker 1: bit ahead of the FEDS today policy meeting. Let's head
Speaker 1: right over the first We're breaking new desk for today's
Speaker 1: morning call. Here's Bill Maloney. Good morning, Bill, Hey, Good
Speaker 1: morning Nathan. A modest bounce in the US futures after
Speaker 1: yesterday's plunge. Who down Futures up a hundred and five
Speaker 1: points as he's gained twenty one nast deck Futures are
Speaker 1: up by nineties six the US ten year that three
Speaker 1: point three percent, Gold is up to oil is in
Speaker 1: the red, and Bigcoin is pairing losses to two point
Speaker 1: six percent after dropping ten percent last night. Shanghai rose
Speaker 1: one percent overnight, while up and markets are in the
Speaker 1: red this morning and back in the US on the
Speaker 1: economic Frinday thirty. The Producer Price Index after de bellis
Speaker 1: Oracle bat Smith shares are up thirteen percent in the
Speaker 1: pre market. And another news Elon Musk to address Twitter
Speaker 1: staff for the first time since the deal, wrapping things up.
Speaker 1: Best By was cut to neutral over at Bank for America,
Speaker 1: HP Enterprise cut the whole day, Deutsche Bank and Benchmark
Speaker 1: cutting Netflix to sell live on the first breaking news
Speaker 1: descm Bill Maloney, Nathan Okay, Bill, thank you to hear
Speaker 1: live breaking news over your Bloomberg type squawk on the
Speaker 1: terminal s q u A go to Bloomberg Business Flash.
Speaker 1: Now here's Michael barv with Moura. What's going on around
Speaker 1: the world. Michael, thank you very much, Nathan. Ukrainian President
Speaker 1: vladimir's Lensky says the battle over the Donbas region will
Speaker 1: be one of the most brutal in European history. Ukrainian
Speaker 1: military officials say their troops have been pushed out of
Speaker 1: a key city in the east and are in desperate
Speaker 1: need of additional military aid. China has released a long
Speaker 1: detained Bloomberg News employee, Hayes Fan, has been released on
Speaker 1: bail after more than a year in detention. She was
Speaker 1: held on suspicion of national security law violations. The case
Speaker 1: remains under investigation while Fan is on bail pending trial.
Speaker 1: In Game five of the NBA Finals, the Celtics are
Speaker 1: on the brink of elimination. Boston lost to the Warriors
Speaker 1: one oh four ninety four. In baseball, the Nationals and
Speaker 1: Orioles lost the Giants. One Global News twenty four hours
Speaker 1: a day on air and on Bloomberg Quicktake, powered by
Speaker 1: more than twenty seven under journalist analyst in more than
Speaker 1: a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan, Okay, Michael,
Speaker 1: thank you. It's sixty nine on Wall Street. Let's turn
Speaker 1: out to news in science and technology. The Bloomberg n
Speaker 1: j i T STEM Report is brought to you by
Speaker 1: New Jersey Institute of Technology, offering New Jersey's first undergraduate
Speaker 1: degree in fintech. N g i T is Future in
Speaker 1: the Making, tech driven, finance focused. Learn more at n
Speaker 1: j I T dot edu, slash fintech and now Here's
Speaker 1: what's making news in science, Technology, engineering and math. Amazon
Speaker 1: has been quietly buying land across the US to use
Speaker 1: for new multi story warehouses. Over the past three years,
Speaker 1: Amazon has tripled the amount of built industrial space it
Speaker 1: owns in North America. According to company filings, company has
Speaker 1: now saddled with excess warehouse space as online shopping has decelerated.
Speaker 1: China's semiconductor industries showing signs of flourishing even as the
Speaker 1: Biden administration tries to counter its growth. Chinese orders for
Speaker 1: chip manufacturing equipment from overseas suppliers rose fifty eight percent
Speaker 1: in making it the biggest market for those products for
Speaker 1: a second year running. That's a co to data provided
Speaker 1: by industry body Semi and NASA's Inspector General says poor
Speaker 1: performance by its primary contractor on a new rocket launch
Speaker 1: tower has more than doubled its cost. The new mobile
Speaker 1: launch tower is for a larger version of the Space
Speaker 1: Launch System rocket. It's now expected to cost about one
Speaker 1: and a half billion dollars and take another two years
Speaker 1: to finish. And that's the Bloomberg n j I t
Speaker 1: STEM report. John, all right, thanks to Nathan and ahead
Speaker 1: of the cash oven on Wall Street. We're seeing futures
Speaker 1: pair or some of the earlier gains right now, the
Speaker 1: down to futures of one hundred six points. That's a
Speaker 1: rise of four tenths of eight percent. SUP EMNY futures
Speaker 1: they're up twenty that's a half of percent. And that
Speaker 1: as the futures right now that you're up ninety eight points,
Speaker 1: that's up nine tenths of a percent. Also the VIX
Speaker 1: looking to the VIX for elevated volatility with the Wall
Speaker 1: Streets fear of gauge. If we are to see a
Speaker 1: bottom right now, it is in fact lower just a
Speaker 1: of thirty three points. As far as yields go, the
Speaker 1: tenure yield at three twenty nine, that's down six basis
Speaker 1: points and a time right now six fifty two on
Speaker 1: Wall Street, we're live from the Bloomberg Interactor Broker Studios
Speaker 1: and time to check what's going on and d C.
Speaker 1: Some of the top stories in the nation's capital include
Speaker 1: a second round the Jenrys six hearings, and Donald Trump
Speaker 1: raised millions of dollars setting fraud that AIDS told him
Speaker 1: was false, High level US China talks raised prospects for
Speaker 1: a Biden she call, and President Biden reportedly visiting Saudi
Speaker 1: Arabia is to meet with the Crown Prince. Let's take
Speaker 1: a deeper dive into some of these stories this morning.
Speaker 1: We're joined by Bloomberg's Amrie her Durn in Washington, every
Speaker 1: thanks for meting with us. Let's start with the last
Speaker 1: story here, the Biden visit to Saudi Arabia. I can't
Speaker 1: believe he's not going to talk about oil, but that's
Speaker 1: what we're hearing, right, Like we should make it clear obviously,
Speaker 1: energy will be on the table um it has been that.
Speaker 1: That's the administration has been having lots of discussions with
Speaker 1: Saudi Arabia about energy. You saw the last OPEC deal.
Speaker 1: Saudi Arabia is the facto leader of the group and
Speaker 1: they made this olive branch, raising production more than the
Speaker 1: deal would have required. They also were able to keep
Speaker 1: Russia on board, so they're really walking this diplomatic tight
Speaker 1: rope for them. But it is true that outside of energy,
Speaker 1: there are other issues Riad and Washington will be discussing
Speaker 1: and that will culminate in this meeting. Defense, regional security,
Speaker 1: economic issues, climate view, a number of factors that are
Speaker 1: going to go into what would be discussed on this trip.
Speaker 1: And also we should know it's not just with Saudi Arabia.
Speaker 1: They're the head of the g c C, so that
Speaker 1: means other GCC countries would also likely be an attendant
Speaker 1: you could think of like kuwait Oman Cutter, so some
Speaker 1: other allies of the United States. All right, this morning
Speaker 1: we'll was hearings the continue. What do we see from
Speaker 1: the second round? So the second round was really a
Speaker 1: lot more detail about what the former president Donald Trump
Speaker 1: knew and what his closest political and legal advisors were
Speaker 1: telling him. You have everyone from our former Attorney General
Speaker 1: Bill Barr to even the president's son in law Jared
Speaker 1: Kushner sang in the videotape testimony they gave to the committee,
Speaker 1: to the panel that they were the ones that they
Speaker 1: told and advised the former president against pursuing that this
Speaker 1: election of claim was stolen. Um. I believe it was
Speaker 1: Bill Stepian, Yes, it was him. His campaign manager had
Speaker 1: said I was on quote team Normal, that people called
Speaker 1: it the normal team, and the president former president rejected
Speaker 1: those advances and that advice from those individuals and instead
Speaker 1: went in the direction of the likes of Rudy Giuliani
Speaker 1: was also heard testimony actually that many believed he was
Speaker 1: drunk when he actually told the president that he should
Speaker 1: say he won the election and the claimed fraud and
Speaker 1: continue this. So that was what the second hearing was
Speaker 1: about that was yesterday. There'll be a third one tomorrow,
Speaker 1: and their seven in total, So there's going to be
Speaker 1: a lot more details on who knew what and when,
Speaker 1: and what they want to really do in the committee
Speaker 1: is either directly or indirectly show that that led to
Speaker 1: what happened we saw in the capital in January six.
Speaker 1: There's also this other story related to it more than
Speaker 1: tan Gentile, but the Trump raised millions of dollars from
Speaker 1: supporters citing the fraud uh that Paids told him was false. Now,
Speaker 1: when you solicit money from somebody on a false claim,
Speaker 1: I mean that sounds like I'm not a lawyer, but
Speaker 1: it could be fraud. Right, So I guess the big
Speaker 1: question is what comes out after this, Right, will there
Speaker 1: be more charge is against the president in a court
Speaker 1: of law? But they did talk about that about raising
Speaker 1: I believe the figure two fifty million dollar certain supporters
Speaker 1: in these appeals that the election was stolen from the
Speaker 1: former president. What is Merrick Garland saying or not saying
Speaker 1: at all of this? The current attorney general? Yeah, I
Speaker 1: think I think he's the one that we're going to
Speaker 1: want to wait to hear from after we get through
Speaker 1: these seven hearings, Um, you can almost see the committee
Speaker 1: setting up these witnesses and building out a case. But
Speaker 1: then what happens with that information? Okay, uh, next story.
Speaker 1: We talked about Saudi Arabia to visit. There also high
Speaker 1: level US China talks that's raising the prospects for call
Speaker 1: be between the President She and the President Biden. What
Speaker 1: do we know on that front? So there's no readout
Speaker 1: yet in any talks between She and Jjan Pain, But
Speaker 1: of course there's speculation because you had Jake Sullivan meeting
Speaker 1: with the top Chinese diplomat, Um wangji Sha Monday in Luxembourg,
Speaker 1: and there's been a few instances where those two would
Speaker 1: meet and then that would open a door for their
Speaker 1: principles for the President in Shijing Ping to have some
Speaker 1: sort of phone conversation. But right now there's nothing yet
Speaker 1: but lots of speculation and probably what would be discussed
Speaker 1: is similar to what we know that Sullivan discussed with
Speaker 1: his counterpart, which is of course Taiwan, South China see
Speaker 1: war in Ukraine Ukraine as well as um North Korea's
Speaker 1: nuclear program. That's what that's what the Chinese readout was
Speaker 1: very similar to what the White House readout said was discussed, um.
Speaker 1: But you can imagine that these are the issues that
Speaker 1: if the two were going to meet, and that kind
Speaker 1: of sets the past for potentially of that meeting. Even
Speaker 1: you had this high level meeting, which Sullivan's counterpart, emory
Speaker 1: always a pleasure. Thanks appreciated Bloomberg's Amory horde during and
Speaker 1: of course you could read more about these stories on
Speaker 1: Bloomberg dot com or at the Boomberg terminal. At a reminder,
Speaker 1: you can follow all the latest on Bloomberg Radio in Washington,
Speaker 1: d C. That's Bloomberg and one oh five point seven FM.
Speaker 1: HD two had ahead of the cash opened on Wall
Speaker 1: Street futures pairing so many earlier gains we had European
Speaker 1: stocks they were retreating right now that AL futures eighty
Speaker 1: nine points higher, that's a three tenths of a percent,
Speaker 1: and after the huge sell off yesterday, SMP futures seventeen
Speaker 1: points higher half a percent. Of course, the SMP five
Speaker 1: hundred entering a bear market after yesterday's close on Wall
Speaker 1: Street and Nasdaq futures right now ninety three points higher.
Speaker 1: That is about the eight tenths of the percent. But
Speaker 1: Nathan Hager. I'm John Tucker. Stayed with us just again
Speaker 1: Bloomberg surveillance. You're listening to Bloomberg take