WEBVTT - Bloomberg Daybreak: June 22, 2022 - Hour 1 (Radio) 0:00:02.040 --> 0:00:05.400 My from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:05.480 --> 0:00:09.680 day Break for Wednesday, June twenty two. Coming up this hour. 0:00:09.960 --> 0:00:13.440 Stocks failed to build on yesterday's rally as recession fears 0:00:13.480 --> 0:00:17.840 resurface on Wall Street. Investors brace for congressional testimony from J. Powell. 0:00:18.239 --> 0:00:21.880 UK inflation surges to a forty year high, and Senators 0:00:21.880 --> 0:00:25.200 reach agreement on a bipartisan gun violence fill. Look for 0:00:25.280 --> 0:00:28.720 rent increases in New York City. Plus, Trump backed Katie 0:00:28.720 --> 0:00:32.040 Britt beats Maga moll Brooks in the Alabama Senate primary. 0:00:32.520 --> 0:00:35.680 Michael barn We're ahead. I'm John stashdown Ford's home runs 0:00:35.720 --> 0:00:37.559 did in the Yankees and a loss at Sampa Bay 0:00:37.560 --> 0:00:40.200 lock studded laws with the medicine euston. The Stanley Cup 0:00:40.240 --> 0:00:46.600 Final continues tonight. That's All's train ahead on Bloomberg day 0:00:46.600 --> 0:00:50.839 Break on Bloomberg eleven three, on New York, Bloomberg nine one, 0:00:50.960 --> 0:00:54.880 Washington d C, Bloomberg one oh six one, Boston, Bloomberg 0:00:55.000 --> 0:00:59.080 nine sixties and Francisco Sirius x M one nineteen and 0:00:59.160 --> 0:01:02.240 around the world on Bloomberg Radio dot com and via 0:01:02.320 --> 0:01:09.760 the Bloomberg Business app. Good morning, I'm Nathan Hager and 0:01:09.800 --> 0:01:13.760 I'm Karen Moscow, and it is currently five out one 0:01:13.800 --> 0:01:17.000 on Wall Street and futures are lower this morning. We 0:01:17.120 --> 0:01:19.520 check the markets every fifteen minutes throughout the trading day. 0:01:19.880 --> 0:01:23.160 On bloomberg SMP futures are down sixty one points down, 0:01:23.160 --> 0:01:25.800 futures down four hundred twenty six and NASDAG futures down. 0:01:25.840 --> 0:01:29.640 Two ten year Treasury up thirteen thirty seconds. You on 0:01:29.720 --> 0:01:31.920 three point to two percent and the yelled on the 0:01:32.000 --> 0:01:34.800 two year three point one four percent, Nathan, Karen. The 0:01:34.800 --> 0:01:38.880 main event today is congressional testimony on the economy from J. Powell. 0:01:38.959 --> 0:01:41.559 Later this morning, the Fed Chairman appears before the Senate 0:01:41.600 --> 0:01:44.959 Banking Committee. We get a preview from Bloomberg's Michael McKee. 0:01:45.280 --> 0:01:48.160 Politics always plays a role in the Fed Chairman's appearances, 0:01:48.240 --> 0:01:50.360 and there will no doubt be efforts to pin the 0:01:50.360 --> 0:01:54.240 blame for inflation on someone. That's a topic Powell will duck. 0:01:54.640 --> 0:01:57.320 He'll also try to avoid expressing an opinion on various 0:01:57.320 --> 0:02:01.120 fiscal responses to inflation now under consider ration on Capitol Hill, 0:02:01.360 --> 0:02:04.559 such as a gas tax suspension. The real key question 0:02:04.600 --> 0:02:07.160 for the Chairman is how high and how fast? The 0:02:07.160 --> 0:02:10.640 FED needs to raise interest rates. The latest FED forecast 0:02:10.760 --> 0:02:12.960 is to just under four percent by the end of 0:02:13.000 --> 0:02:15.840 the year, just over it in two thousand twenty three, 0:02:16.320 --> 0:02:18.639 but there has been pushback from investors in analysts who 0:02:18.680 --> 0:02:21.079 say the central Bank may have to go much higher 0:02:21.080 --> 0:02:25.000 than that. Paul's answer may have a major impact on trading. 0:02:25.160 --> 0:02:27.680 Michael McKee, Bloomberg Daybreak. All right, Mike, thanks, and you 0:02:27.680 --> 0:02:30.680 can catch full coverage of FED Chairman Powell's testimonies starting 0:02:30.680 --> 0:02:35.840 around am Wall Street time on Bloomberg Radio and television. Well, Nathan, 0:02:35.840 --> 0:02:38.160 as investors away a word from Powell. There are more 0:02:38.240 --> 0:02:41.080 cons this morning for the Fan again more aggressive. Richmond 0:02:41.080 --> 0:02:44.120 Fan president Thomas Barkin wants to raise interest rates as 0:02:44.160 --> 0:02:47.000 fast as possible, as long as it doesn't cause undue 0:02:47.040 --> 0:02:50.000 harm to market through the economy. We're in a situation 0:02:50.040 --> 0:02:54.400 where inflation is high, it's broad based, it's persistent, and 0:02:54.480 --> 0:02:57.040 rates are still well below normal. And so I think 0:02:57.160 --> 0:03:00.720 the spirit is you want to get back to where 0:03:00.760 --> 0:03:03.240 you want to go as fast as you can without 0:03:03.240 --> 0:03:06.480 breaking anything. And Richmond Fed President Thomas bark And also 0:03:06.520 --> 0:03:09.280 says he does not expect the economy to swiftly return 0:03:09.360 --> 0:03:13.079 to pre pandemic patterns, a more aggressive fed, weaker demand 0:03:13.120 --> 0:03:15.880 for goods, and supply shocks are leading the way for 0:03:16.000 --> 0:03:19.040 more recession fears. Let's get more on that live from 0:03:19.080 --> 0:03:22.040 Bloomberg's Real Need a Young, Good Morning, Good Morning Nathan. 0:03:22.280 --> 0:03:24.960 City Group says there's a fifty percent chance of the 0:03:25.000 --> 0:03:28.640 world economy falling into a recession. As a result, the 0:03:28.680 --> 0:03:32.200 Bank now sees the global economy growing three percent this 0:03:32.280 --> 0:03:36.560 year and two point eight percent in Economists at City 0:03:36.560 --> 0:03:39.520 Groups say if a recession did occur, it's likely to 0:03:39.560 --> 0:03:44.120 be quote garden variety, in which unemployment rises several percentage 0:03:44.120 --> 0:03:48.280 points and output experiences a couple of week quarters Live 0:03:48.320 --> 0:03:50.800 in New York, I'm ren need a Young Bloomberg day break, 0:03:50.840 --> 0:03:52.880 all right, we need to thank you well. Inflation is 0:03:52.920 --> 0:03:56.280 also a major concern overseas. Today's reading in the UK 0:03:56.400 --> 0:03:59.880 as prices jumping to a new four decade high the 0:04:00.000 --> 0:04:02.960 get the latest live with Bloomberg's EU and pots in London, 0:04:03.000 --> 0:04:06.200 Good Morning You and good morning cardena than UK inflation 0:04:06.280 --> 0:04:09.360 in the etomy ticking up to nine point one. The 0:04:09.400 --> 0:04:12.080 reading reflects broad increases in the cost of everything from 0:04:12.160 --> 0:04:15.640 fuel and electricity to food and beverages. There are also 0:04:15.760 --> 0:04:18.799 more signs of growing price pressures at the wholesale level, 0:04:18.960 --> 0:04:22.000 with raw material costs increasing by the most on records. 0:04:22.160 --> 0:04:24.640 The Bank of England says CPI good hits eleven per 0:04:24.640 --> 0:04:27.920 cents later this year in London, I'm your parts Bloomboo daybreak, 0:04:28.000 --> 0:04:30.080 all right you and thank you. Recession fears, the news 0:04:30.160 --> 0:04:32.320 of the Biden administration is prepared to step up its 0:04:32.360 --> 0:04:35.520 fight against gas prices. Has oil on the decline once again. 0:04:35.839 --> 0:04:38.600 Right now NIMEX screwed is down four point seven per cent, 0:04:38.680 --> 0:04:41.159 or five dollars fourteen cents at a hundred four dollars 0:04:41.240 --> 0:04:44.120 thirty nine cents of barrel. This morning, President Biden is 0:04:44.160 --> 0:04:48.080 asking Congress to enact a gas tax holiday. Bloomberg said, 0:04:48.120 --> 0:04:51.240 Baxter has the story. The President is trying to cool 0:04:51.360 --> 0:04:53.839 the soaring pump prices as we head under the summer 0:04:53.920 --> 0:04:56.960 travel season. It is not clear to this point the 0:04:57.040 --> 0:05:01.160 time frame. Mr Biden says it will not hurt infrastructure. 0:05:01.680 --> 0:05:03.600 Is it going to, in fact make it difficult to 0:05:03.720 --> 0:05:06.440 maintain our roads? The answer is we have plenty of 0:05:06.800 --> 0:05:10.040 capacity to do that. Biden also says in the long run, 0:05:10.160 --> 0:05:13.520 there is plenty of oil to drill nine thousand oil 0:05:13.640 --> 0:05:17.560 fields in San Francisco. I'm at Baxter Bloomberg daybreak, Great 0:05:17.600 --> 0:05:20.040 and thank you. Also in Washington, the Senator has voted 0:05:20.080 --> 0:05:22.680 to advance and by partisan gun safety bill, and a 0:05:22.800 --> 0:05:26.159 vote on final passage is expected later this week. Backer 0:05:26.200 --> 0:05:28.280 has called the measure of the biggest breakthrough on the 0:05:28.440 --> 0:05:32.520 issue in decades. Is designed to improve background checks, secure schools, 0:05:32.800 --> 0:05:36.600 and giving states federal funds to combat gun violence. Isaac 0:05:36.640 --> 0:05:39.800 balt Tanski as director of Policy research at bt i G. 0:05:40.360 --> 0:05:42.760 But as we've learned time and time again, the motivator 0:05:42.880 --> 0:05:46.680 for lawmakers is so often the calendar and the jet 0:05:46.800 --> 0:05:49.640 fumes are also in play here because they're trying to 0:05:49.760 --> 0:05:52.680 leave town for two weeks at the end of this week, 0:05:52.880 --> 0:05:56.839 and that is an undeniable motivator, especially for these lawmakers 0:05:57.160 --> 0:05:59.600 who are running for re election. Bt i G is 0:05:59.640 --> 0:06:03.000 Isaac balt Hanski spoke with their Washington correspondent Joe Matthew 0:06:03.040 --> 0:06:05.840 on Bloomberg Sound on Catch the Program weekdays at five 0:06:05.880 --> 0:06:09.400 pm Eastern on Bloomberg radiomcaring the latest round of hearings 0:06:09.440 --> 0:06:11.880 into the January six attack at the US Capital. He's 0:06:11.920 --> 0:06:14.800 in the books testimony yesterday focused on state and local 0:06:14.880 --> 0:06:18.120 officials and the pressure they faced from former President Donald Trump, 0:06:18.200 --> 0:06:21.760 who overturn the election. Committee Democrat Adam Schiff says the 0:06:21.839 --> 0:06:25.599 system held but barely. Anyone who got in the way 0:06:25.800 --> 0:06:29.200 of Donald Trump's continued hold on power after he lost 0:06:29.279 --> 0:06:32.839 the election was the subject of a dangerous and escalating 0:06:33.240 --> 0:06:37.080 campaign of pressure. Congressman Schiff and other committee members heard 0:06:37.120 --> 0:06:40.120 from Georgia's Secretary of State Brad Raefensburger, who says he 0:06:40.279 --> 0:06:44.000 faced a campaign of intimidation, including threats to his wife, 0:06:44.279 --> 0:06:46.560 and then some people broke into my daughter in laws 0:06:47.080 --> 0:06:50.520 home and h I sent has passed, and she's a 0:06:50.600 --> 0:06:54.240 widow and has two kids, and so we're very concerted 0:06:54.279 --> 0:06:57.520 about her safety. Also, Secretary of State Raffensberger says he 0:06:57.600 --> 0:07:00.599 followed every rabbit hole to make sure George's number were accurate, 0:07:00.680 --> 0:07:03.760 but he says the former president came up short. Right now, 0:07:03.920 --> 0:07:06.720 SMP futures are lower by sixty three point, Staff futures 0:07:06.760 --> 0:07:10.320 down four hundred thirty Nasdaq futures down two hundred seventeen points. 0:07:10.400 --> 0:07:13.600 The tenure treasury is up fourteen thirty seconds. The yield 0:07:13.760 --> 0:07:17.120 three point to two straight ahead, your latest local headlines 0:07:17.160 --> 0:07:23.720 and the check of sports. This is Bloomberg, five oh 0:07:23.800 --> 0:07:26.720 seven on Wall Street, sixty six degrees in Central Park 0:07:26.760 --> 0:07:29.760 of the North Boundary Jersey Turnpike. Truck lanes are closed 0:07:29.920 --> 0:07:33.160 the whole length with overnight road work continuing. More coming 0:07:33.240 --> 0:07:35.400 up in traffic. First Michael Barr with more on what's 0:07:35.440 --> 0:07:37.640 going on in New York and around the world. Good morning, Michael, 0:07:37.720 --> 0:07:40.400 Good morning, Nathan. Rent is going up in New York City. 0:07:40.600 --> 0:07:43.920 Last night, the Rent Guidelines Board voted to increase one 0:07:44.040 --> 0:07:47.280 year and two year leases. On the five four vote, 0:07:47.320 --> 0:07:50.040 the board decided to raise the rent for rent stabilized 0:07:50.080 --> 0:07:53.680 departments to three for one year leases. It will go 0:07:53.840 --> 0:07:57.120 up to five percent for two year leases. New York 0:07:57.160 --> 0:07:59.760 City Mayor Eric Adams said the board's decision will be 0:07:59.840 --> 0:08:02.120 a burden to tenants at a difficul old time. The 0:08:02.240 --> 0:08:05.840 mayor also acknowledged that small landlords are at risk of 0:08:05.880 --> 0:08:09.720 bankruptcy because of years of no increases at all. Katie 0:08:09.800 --> 0:08:13.280 Britt has won the Republican runoff against Representative Moe Brooks 0:08:13.640 --> 0:08:18.400 for retiring Alabama Senator Richard Shelby's seat. Britt, Shelby's former 0:08:18.480 --> 0:08:22.880 chief of staff gained ground after Brooks lost Donald Trump's endorsement. 0:08:22.920 --> 0:08:27.680 In March. Britt got while Brooks received The head of 0:08:27.760 --> 0:08:30.360 the Texas Department of Public Safety is now calling the 0:08:30.440 --> 0:08:34.240 law enforcement response to the massacre at the rob Elementary 0:08:34.360 --> 0:08:39.000 School and abject failure. Testifying at a Texas Senate hearing, 0:08:39.280 --> 0:08:43.800 Colonel Steve mccrawl says that there were enough police officers 0:08:43.880 --> 0:08:46.680 on hand that could have stopped the gunman quickly after 0:08:46.800 --> 0:08:50.280 he entered the building. Yet, police officers armed with rifles 0:08:50.320 --> 0:08:53.400 stood and waited in a school hallway for nearly an 0:08:53.440 --> 0:08:56.600 hour while the gunman carried out the massacre, killing nineteen 0:08:56.679 --> 0:09:00.599 elementary students and two teachers. Not enough trainings done in 0:09:00.679 --> 0:09:04.559 the situation, playing simple because of bad decision and terrible decisions. 0:09:04.640 --> 0:09:07.280 Terrible decisions were made by the unseen commander and should 0:09:07.280 --> 0:09:10.839 have never happened. Playing the simple, Colonel Cross laid out 0:09:11.040 --> 0:09:15.120 multiple times police failed to engage sooner. Three minutes into 0:09:15.240 --> 0:09:18.079 the attack. A jury in California signed it with a 0:09:18.120 --> 0:09:21.640 woman who filed a sex abuse lawsuit against comedian Bill Cosby. 0:09:22.000 --> 0:09:25.560 Jurors found Cosby sexually abused that then sixteen year old 0:09:25.600 --> 0:09:28.679 girl at the Playboy mansion. In nineteen seventy five, the 0:09:28.840 --> 0:09:31.880 jury awarded Judy Huff, now sixty four, a half a 0:09:31.920 --> 0:09:35.840 million dollars. Gloria Allread is one of Huff's attorneys. Today, 0:09:35.920 --> 0:09:41.160 our client Judy Huff one real change because she fought 0:09:41.240 --> 0:09:45.880 Bill Cosby one step at a time for over seven 0:09:45.960 --> 0:09:48.920 and a half years. Attorney Gloria all Read Cosby has 0:09:48.920 --> 0:09:52.079 denied the allegations. Global News twenty four hours a day 0:09:52.240 --> 0:09:54.760 on air and on Bloomberg Quick Tank, powered by more 0:09:54.840 --> 0:09:57.440 than twenty seven hun journalist and analyst in more than 0:09:57.440 --> 0:10:00.720 a hundred twenty countries. Michael Barren, this is Bloomberg, Nathan. 0:10:00.800 --> 0:10:07.800 Thank you, Michael. Coming up to five ten on Wall Street. 0:10:07.800 --> 0:10:10.680 Time for the Bloomberg Sports Update Morning, John Stessch After Morning, 0:10:10.760 --> 0:10:13.560 Athan Esther. Cortez has been a revelation for the Yankees. 0:10:13.640 --> 0:10:15.560 Eight of his first nine starts he didn't allow more 0:10:15.600 --> 0:10:17.720 than two runs, but he has come back to earth 0:10:17.800 --> 0:10:20.080 of it. At Tampa Bay, Cortes served up two whole 0:10:20.120 --> 0:10:24.160 runs first inning, Paradis two innings later about this second 0:10:24.200 --> 0:10:26.760 of the game and not wanting Cortez to face Paradis 0:10:26.800 --> 0:10:29.720 the third time, he was removed in the fifth inning 0:10:29.800 --> 0:10:32.840 and this was Clark Schmidt's first pick. Here is Paradies 0:10:32.880 --> 0:10:35.000 already with two homers and says one way up into 0:10:35.000 --> 0:10:36.559 the air and the lift, but did he get another? 0:10:36.760 --> 0:10:42.160 Gon tell Us back back to the wall number three 0:10:42.480 --> 0:10:47.079 Tonight Paradies and the race of a five two league 0:10:47.120 --> 0:10:49.600 and won the game five four rays Radio called cortez 0:10:49.679 --> 0:10:51.559 is e r A has gone from one point three 0:10:51.600 --> 0:10:54.760 a month ago to two point Mets started Trevor Williams 0:10:54.840 --> 0:10:56.880 and Houston he would not be in the rotation if 0:10:56.920 --> 0:10:58.720 not for the next yus or injury, and Williams felt 0:10:58.760 --> 0:11:01.360 the one and four astro's at three home runs. They 0:11:01.360 --> 0:11:05.320 wanted to Toronto's Austin Matthews and scored sixty gold named 0:11:05.440 --> 0:11:08.040 n h L M V P Gorsches. Durkin was third. 0:11:08.200 --> 0:11:11.760 He did, as expected, win the Vesana Trophy, third Ranger 0:11:11.800 --> 0:11:14.439 goalie to ever win that awards. Stanley Cup Finald's tonight 0:11:14.559 --> 0:11:18.160 in Tampa, Colorado. Leads two games one while Brooks Kepta 0:11:18.640 --> 0:11:21.120 not having a good year. He has won four majors. 0:11:21.200 --> 0:11:23.559 He's a big name and now Kepta the latest of 0:11:23.640 --> 0:11:26.480 Bolt the PGA Tour for the new Live Tour. Keptr 0:11:26.559 --> 0:11:29.160 said just last week he hadn't given the live tour 0:11:29.360 --> 0:11:33.199 much thought. Rob Gronkowski, having retired once before, now doing 0:11:33.200 --> 0:11:35.160 it again. Played nine years in New England, came out 0:11:35.200 --> 0:11:37.240 of retirement to play two more with Tom Brady at 0:11:37.280 --> 0:11:40.959 Tampa Bay. Together they won four Super Bowls. Bron certain 0:11:41.440 --> 0:11:43.720 to someday go into the Crow Football Hall of Fame. 0:11:44.080 --> 0:11:48.040 John Stashward, Bloomberg Sports Nathan and potentially certain to retire. 0:11:48.440 --> 0:11:51.600 Thank you, John SMP futures down sixty three point, Staff 0:11:51.600 --> 0:11:54.120 futures down for a thirty nine, NASTAC futures down two 0:11:54.240 --> 0:11:58.040 hundred twenty two points, NIMEX crew down four point six percent, 0:11:58.160 --> 0:12:01.400 down five oh five at a hundred four dollars forty 0:12:01.480 --> 0:12:04.160 seven cents for a barrel, West Texas Intermediate. This is 0:12:04.240 --> 0:12:10.480 Bloomberg Bloomberg eleven three oh Weather mostly cloudy, scattered showers, 0:12:10.559 --> 0:12:14.600 especially along Long Island in Connecticut. Lost seventies today turned 0:12:14.600 --> 0:12:18.120 probably mostly cloudy, upper seventies Tomorrow, low eighties Friday right 0:12:18.160 --> 0:12:23.760 now sixty six in Central Park Markets. Headlines and breaking 0:12:23.840 --> 0:12:26.680 news twenty four hours a day at Bloomberg dot Com, 0:12:26.840 --> 0:12:29.920 the Bloomberg Business apt and at Bloomberg Quick Take. This 0:12:30.360 --> 0:12:39.400 is a Bloomberg business lash when I'm camerin Moscow. Stocks 0:12:39.440 --> 0:12:42.840 in Europe falling along with US stock index, futures and commodities, 0:12:42.880 --> 0:12:46.160 and made ever louder warnings that the FEDS monetary tightening 0:12:46.240 --> 0:12:48.880 may lead to an economic downturn, which at the markets 0:12:48.920 --> 0:12:52.080 every fifteen minutes throughout the trading day on Bloomberg. Right now, 0:12:52.120 --> 0:12:54.880 we SNP futures are down sixty one points down, futures 0:12:54.920 --> 0:12:58.200 down four hundred seventeen and NASDAG futures down two hundred nine. 0:12:58.520 --> 0:13:01.679 The decks in Germany's down you point one percent ten 0:13:01.760 --> 0:13:04.360 your treasury of fifteen thirty seconds here three point to 0:13:04.480 --> 0:13:06.760 one percent, the yield in the two year three point 0:13:06.840 --> 0:13:10.240 one three percent. NIMEX screwed oil is down four point 0:13:10.320 --> 0:13:13.079 six percent on five dollars seven cents at a hundred 0:13:13.160 --> 0:13:15.920 four dollars forty four cents of barrel co mix school 0:13:15.960 --> 0:13:18.520 down six tenths percent or eleven dollars twenty cents at 0:13:18.559 --> 0:13:21.640 eighteen twenty seven sixty an ounce. The euro one point 0:13:21.679 --> 0:13:24.080 oh five one five against the dollar, British bound one 0:13:24.120 --> 0:13:26.880 point to to to seven and the ends at one 0:13:26.960 --> 0:13:30.319 thirty six point to two. And watching bitcoin this morning 0:13:30.400 --> 0:13:33.319 down two point eight percent at twenty thousand, two hundred 0:13:33.400 --> 0:13:36.520 fifty dollars. That's a Bloomberg Business flash. Now here's Michael 0:13:36.559 --> 0:13:39.120 Barr with more on what's going on around the world. Muncle, 0:13:39.160 --> 0:13:42.040 Good morning, Good morning, Karen. President Joe Biden will call 0:13:42.120 --> 0:13:45.079 on Congress to enact a gasoline tax holiday as he 0:13:45.120 --> 0:13:49.000 looks to cool soaring pump prices in the summer. According 0:13:49.160 --> 0:13:51.720 to a person familiar with the plan, Biden will make 0:13:51.760 --> 0:13:54.480 a statement today calling on Congress to enact the pause. 0:13:55.040 --> 0:13:58.040 Senate bargainers have reached an agreement on a bipartisan gun 0:13:58.200 --> 0:14:02.000 violence built would make gun background checks tougher for the 0:14:02.120 --> 0:14:06.160 youngest buyers and bolsters spending for school safety and mental 0:14:06.200 --> 0:14:09.959 health programs. In baseball, the Yankees and Mets lost the 0:14:10.040 --> 0:14:12.720 Red Sox one. The Nationals beat the Orioles three zip. 0:14:13.120 --> 0:14:16.120 The Giants won the A's lost. Global News twenty four 0:14:16.200 --> 0:14:18.800 hours a day on air and on Bloomberg Quick Take, 0:14:19.000 --> 0:14:21.840 powered by more than journalist and analysts more than a 0:14:21.920 --> 0:14:25.120 hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nick. 0:14:25.200 --> 0:14:27.120 All right, Michael, thank you. It's five nineteen on Wall 0:14:27.160 --> 0:14:30.320 Street Live from the Bloomberg Interactive Brokers Studios. This is 0:14:30.400 --> 0:14:32.600 Bloomberg day Break. Let's get more now and all these 0:14:32.680 --> 0:14:36.080 developments in Washington that Michael bar just reported on. Terry 0:14:36.160 --> 0:14:39.520 Haynes joins us this morning, the founder of Pangea Policy. Terry, 0:14:39.600 --> 0:14:41.520 it's good to speak with you. And we just got 0:14:41.640 --> 0:14:44.280 word from the White House moments ago that President Biden 0:14:44.400 --> 0:14:47.040 is going to call for a three month suspension to 0:14:47.280 --> 0:14:51.680 the federal gas and diesel tax. First off, is it's 0:14:51.720 --> 0:14:55.120 something that's going to pass muster in Congress? And is 0:14:55.160 --> 0:14:57.760 it something that's actually going to have an impact on 0:14:58.000 --> 0:15:02.160 what we've paid at the pump? Good morning, Nathan. A 0:15:02.280 --> 0:15:05.120 couple of things on that. One. I think the basic 0:15:05.280 --> 0:15:11.160 politics of the Biden proposal, UH, make certain that it's 0:15:11.200 --> 0:15:16.200 probably not going to pass. Uh. The three months gas 0:15:16.320 --> 0:15:20.680 tax moratorium, if I may, is UH is designed to 0:15:20.800 --> 0:15:23.240 get it is designed to get everybody through, you know, 0:15:23.400 --> 0:15:26.760 until just before the election. So therefore Republicans probably won't 0:15:26.800 --> 0:15:30.000 react to it positively. Uh. Secondly, you know, I think 0:15:30.000 --> 0:15:31.960 it's a drop in the bucket for the public. Uh. 0:15:32.080 --> 0:15:37.000 There's a deep senator deep and entrenched cynicism about um 0:15:37.440 --> 0:15:41.400 about the steps that the White House wants to take 0:15:42.280 --> 0:15:45.920 on inflation overall, and you know, eighteen cents out of 0:15:46.040 --> 0:15:49.680 a out of a five dollar per gallon trip to 0:15:49.720 --> 0:15:53.960 the pump, UH isn't gonna make anybody warmer and fuzzier 0:15:54.680 --> 0:15:57.200 towards Biden or the Democrats. And frankly is gonna make 0:15:57.280 --> 0:15:59.920 much of a difference at the pump generally. I'll be 0:16:00.280 --> 0:16:02.960 back and forth about whether anybody even sees the eighteen 0:16:03.040 --> 0:16:07.560 cents to economists and UH experts and uh oil. But 0:16:08.480 --> 0:16:10.960 you know, I think this is you know, very much 0:16:11.000 --> 0:16:14.160 a drop in the bucket at best, UH and something 0:16:14.240 --> 0:16:16.720 that is very unlikely to happen on its own. I 0:16:16.800 --> 0:16:20.680 think there's a likelihood that you see a some version 0:16:20.800 --> 0:16:22.920 of what used to be called the Build Back Better 0:16:23.080 --> 0:16:27.080 Bill that includes uh, some prescription drug relief and cent 0:16:27.120 --> 0:16:29.400 a variety of you know, maybe some tax rises all 0:16:29.440 --> 0:16:32.480 the rest. I've been for a while at non consensus 0:16:33.240 --> 0:16:36.480 that something like that happens. It wouldn't be beyond the 0:16:37.040 --> 0:16:41.320 belief to have something on gas tax eventually in there 0:16:41.360 --> 0:16:44.560 as part of a package of inflation fighting measures. UH. 0:16:44.800 --> 0:16:47.320 So if you see it, it will be part of 0:16:47.360 --> 0:16:50.040 that package, and that will probably happen by the end 0:16:50.080 --> 0:16:52.600 of July or it won't happen at all. We also 0:16:52.760 --> 0:16:56.360 got progress in the Senate on a gun safety bill. 0:16:56.480 --> 0:17:01.440 We've seen that advance. Uh, what's your feel on where 0:17:01.560 --> 0:17:03.360 that's going to go from here? Are we're gonna see 0:17:03.400 --> 0:17:08.080 a vote to pass that before the July fourth break? Oh? 0:17:08.160 --> 0:17:10.359 I think so. You know, you and I talked about 0:17:10.440 --> 0:17:13.920 this on June the third, and I had it as 0:17:13.960 --> 0:17:18.760 a non consensus six that that pretty much what's happening 0:17:18.960 --> 0:17:23.280 is six likely to happen. I'd raised that to seventy. 0:17:23.800 --> 0:17:27.080 Now I think it's it gets certainly much more likely. 0:17:27.520 --> 0:17:31.240 And you've got uh, yeah, you had a pretty comfortable 0:17:31.280 --> 0:17:34.440 margin yesterday and a procedural vote. Uh, you know, well 0:17:34.520 --> 0:17:39.600 over sixty voted to advance the legislation. Doesn't it doesn't 0:17:39.640 --> 0:17:42.280 mean they're in favor of every bit of it, but 0:17:42.560 --> 0:17:44.800 that was an important vote to to be able to 0:17:44.920 --> 0:17:48.080 have the Senate debate it. Um. I do think something 0:17:48.200 --> 0:17:52.000 like this happens. You've got some very common sense, uh, 0:17:52.359 --> 0:17:55.920 background check improvements, you've got some very common sense red 0:17:56.000 --> 0:17:59.440 flag improvements, and of course you've got Washington doing with 0:17:59.560 --> 0:18:01.919 Washington and does best, which is splashing around a lot 0:18:02.000 --> 0:18:04.639 of money on things that I I don't mean to 0:18:04.720 --> 0:18:07.159 sound too cynical on that. The money certainly needs to 0:18:07.240 --> 0:18:09.439 be splashed in a lot of ways, but that's uh 0:18:10.080 --> 0:18:14.080 these days increasingly how Washington deals with things, splashing money 0:18:14.119 --> 0:18:17.720 at it. So uh, you know, you've got all those things. 0:18:18.200 --> 0:18:21.879 They're very hard to argue against, and uh so I 0:18:22.240 --> 0:18:26.240 look for something positive to happen here. Uh it is 0:18:26.359 --> 0:18:30.119 for the political terms. It is both an incumbent protection 0:18:30.280 --> 0:18:33.960 program in the sense that incumbents want to have something 0:18:34.080 --> 0:18:37.520 substantial done on guns before the November election, and a 0:18:37.680 --> 0:18:40.359 testament to what I always to tell people, which is 0:18:40.400 --> 0:18:42.919 that you've got the centrists in both parties. I mean 0:18:43.200 --> 0:18:47.320 this political environment, the centrist in both political parties, combined 0:18:47.400 --> 0:18:50.600 with the president frankly staying out of it by request 0:18:50.680 --> 0:18:53.800 of those centrists. In order to get something done. Uh, 0:18:54.160 --> 0:18:57.280 you know, something will happen. And that's pretty much where 0:18:57.320 --> 0:19:01.080 we are today. As always, Terry Haynes with us this morning, 0:19:01.160 --> 0:19:05.000 founder of Pangea Policy, some insights on all the developments 0:19:05.040 --> 0:19:07.640 happening in the nation's capital, including this word we got 0:19:07.760 --> 0:19:11.120 from the White House just this morning that President Biden 0:19:11.240 --> 0:19:13.840 is going to be calling for a three month suspension 0:19:14.240 --> 0:19:18.080 to the federal gas taxes. We see nationwide average gas 0:19:18.200 --> 0:19:22.320 prices close to five dollars a gallon. Plus progress on 0:19:23.359 --> 0:19:28.160 gun safety legislation, with the Senate advancing a compromise bill 0:19:28.240 --> 0:19:30.640 on that front. Terry, as always, thanks for your insights. 0:19:30.880 --> 0:19:33.800 Looking ahead to the market, open futures are moving lower 0:19:33.840 --> 0:19:36.800 ahead of Chairman Powell's testimony on Capitol Hill today. All 0:19:36.840 --> 0:19:39.880 right now, SMP futures are down fifty seven points, DAL 0:19:40.000 --> 0:19:43.399 futures down three nine. Nasdaq futures are lower by a 0:19:43.480 --> 0:19:46.399 hundred ninety seven points. The tenure Treasury is up fifteen 0:19:46.480 --> 0:19:49.840 thirty seconds, the yield three point to one per cent. 0:19:50.400 --> 0:19:54.080 Just ahead on Bloomberg day Break, Chairman Powell perhaps for 0:19:54.280 --> 0:19:57.800 two days of testimony on Capitol Hill, and now City 0:19:57.840 --> 0:20:02.800 Group joining the calls for higher risk for a global recession. 0:20:03.040 --> 0:20:09.520 This is Bloomberg Bloomberg eleven three oh weather. Mostly cloudy, 0:20:09.560 --> 0:20:12.720 scattered showers, especially across Long Island in Connecticut today with 0:20:12.800 --> 0:20:15.400 highs and the low seventies will be near eighty tomorrow, 0:20:15.600 --> 0:20:18.639 turning partly to mostly cloudy, low eightiest Friday. Right now 0:20:18.800 --> 0:20:28.159 sixty six degrees. Broadcasting live from the Bloomberg Interactive broker 0:20:28.320 --> 0:20:31.720 studio in New York. Bloomberg E Living Free to Washington, 0:20:31.800 --> 0:20:35.640 d C, Bloomberg on to Boston, Bloomberg one O six 0:20:35.720 --> 0:20:39.440 one to San Francisco, Bloomberg sixty to the country, Sirius 0:20:39.600 --> 0:20:42.159 XM Chado one nine te and around the globe the 0:20:42.240 --> 0:20:47.240 Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. 0:20:53.240 --> 0:20:55.680 It's five thirty on Wall Street. Good morning. I'm Nathan 0:20:55.760 --> 0:20:58.720 Hagar and I'm Karen Moscow. We are just about four 0:20:58.840 --> 0:21:01.240 hours away from the in the US trading. Let's get 0:21:01.320 --> 0:21:02.600 you have to date on the news you need to 0:21:02.640 --> 0:21:04.719 know at this hour. We begin with the Federal Reserve 0:21:05.119 --> 0:21:07.800 as share J. Powell prepares to appear before the Senate 0:21:07.840 --> 0:21:11.280 Banking Committee this morning. Powell's expected to feel questions about 0:21:11.320 --> 0:21:13.840 how high and fast he needs to raise interest rates 0:21:13.920 --> 0:21:16.840 to slow inflation. At the same time, there are calls 0:21:16.920 --> 0:21:19.840 for the Central Bank to be more aggressive. Richmond Fed 0:21:19.920 --> 0:21:23.440 President Thomas Barkin wants to raise rates as fast as possible, 0:21:23.560 --> 0:21:26.800 but avoid causing undue harm to market thor the economy. 0:21:27.080 --> 0:21:28.840 I think you have to be flexible to what happens 0:21:28.920 --> 0:21:31.280 the faster inflation comes down, the less you're gonna have 0:21:31.320 --> 0:21:34.800 to do in terms of restrictive montery policy. But the 0:21:34.880 --> 0:21:38.080 more difficult the external forces are, the more you'll have 0:21:38.200 --> 0:21:41.800 to do. Richmond FED President Thomas Barkin says he supported 0:21:41.800 --> 0:21:44.679 the decision to raise rates seventy five basis points earlier 0:21:44.760 --> 0:21:47.439 this month. You can catch full coverage of FED Chairman 0:21:47.560 --> 0:21:51.680 Powell Senate testimony today around am Wall Street time on 0:21:51.800 --> 0:21:54.480 Bloomberg Radio and television. Well ahead of that, Karen, a 0:21:54.520 --> 0:21:57.640 more aggressive FED, Weaker demand and supply shocks are leading 0:21:57.680 --> 0:22:00.520 the way for more recession fears. Blue bergs we need 0:22:00.600 --> 0:22:02.760 a young joins us Live with more on that Good morning, 0:22:03.200 --> 0:22:06.240 Good Morning, Nathan. City Groups says there's a fifty percent 0:22:06.440 --> 0:22:09.840 chance of the world economy falling into a recession. As 0:22:09.880 --> 0:22:12.959 a result, the Bank now sees the global economy growing 0:22:13.119 --> 0:22:18.120 three percent this year and two point eight percent economy sets. 0:22:18.160 --> 0:22:21.280 City Groups say if a recession did occur, it's likely 0:22:21.320 --> 0:22:25.520 to be quote garden variety in which unemployment rises several 0:22:25.600 --> 0:22:29.600 percentage points and output experiences a couple of week quarters 0:22:30.200 --> 0:22:32.440 live in New York. I'm gonna need a young Bloomberg 0:22:32.520 --> 0:22:35.280 daybreak all right, Reneed to thank you recession fears and news. 0:22:35.359 --> 0:22:38.080 President Biden is calling for a gas tax holiday as 0:22:38.119 --> 0:22:41.760 oil declining once again. Later today, President bought in Molask 0:22:41.840 --> 0:22:45.040 Congress to enact in gasoline tax holiday for three months 0:22:45.320 --> 0:22:48.080