Speaker 1: My from the Bloomberg Interactive Brooker Studios. This is Bloomberg
Speaker 1: day Break for Wednesday, June twenty two. Coming up this hour.
Speaker 1: Stocks failed to build on yesterday's rally as recession fears
Speaker 1: resurface on Wall Street. Investors brace for congressional testimony from J. Powell.
Speaker 1: UK inflation surges to a forty year high, and Senators
Speaker 1: reach agreement on a bipartisan gun violence fill. Look for
Speaker 1: rent increases in New York City. Plus, Trump backed Katie
Speaker 1: Britt beats Maga moll Brooks in the Alabama Senate primary.
Speaker 1: Michael barn We're ahead. I'm John stashdown Ford's home runs
Speaker 1: did in the Yankees and a loss at Sampa Bay
Speaker 1: lock studded laws with the medicine euston. The Stanley Cup
Speaker 1: Final continues tonight. That's All's train ahead on Bloomberg day
Speaker 1: Break on Bloomberg eleven three, on New York, Bloomberg nine one,
Speaker 1: Washington d C, Bloomberg one oh six one, Boston, Bloomberg
Speaker 1: nine sixties and Francisco Sirius x M one nineteen and
Speaker 1: around the world on Bloomberg Radio dot com and via
Speaker 1: the Bloomberg Business app. Good morning, I'm Nathan Hager and
Speaker 1: I'm Karen Moscow, and it is currently five out one
Speaker 1: on Wall Street and futures are lower this morning. We
Speaker 1: check the markets every fifteen minutes throughout the trading day.
Speaker 1: On bloomberg SMP futures are down sixty one points down,
Speaker 1: futures down four hundred twenty six and NASDAG futures down.
Speaker 1: Two ten year Treasury up thirteen thirty seconds. You on
Speaker 1: three point to two percent and the yelled on the
Speaker 1: two year three point one four percent, Nathan, Karen. The
Speaker 1: main event today is congressional testimony on the economy from J. Powell.
Speaker 1: Later this morning, the Fed Chairman appears before the Senate
Speaker 1: Banking Committee. We get a preview from Bloomberg's Michael McKee.
Speaker 1: Politics always plays a role in the Fed Chairman's appearances,
Speaker 1: and there will no doubt be efforts to pin the
Speaker 1: blame for inflation on someone. That's a topic Powell will duck.
Speaker 1: He'll also try to avoid expressing an opinion on various
Speaker 1: fiscal responses to inflation now under consider ration on Capitol Hill,
Speaker 1: such as a gas tax suspension. The real key question
Speaker 1: for the Chairman is how high and how fast? The
Speaker 1: FED needs to raise interest rates. The latest FED forecast
Speaker 1: is to just under four percent by the end of
Speaker 1: the year, just over it in two thousand twenty three,
Speaker 1: but there has been pushback from investors in analysts who
Speaker 1: say the central Bank may have to go much higher
Speaker 1: than that. Paul's answer may have a major impact on trading.
Speaker 1: Michael McKee, Bloomberg Daybreak. All right, Mike, thanks, and you
Speaker 1: can catch full coverage of FED Chairman Powell's testimonies starting
Speaker 1: around am Wall Street time on Bloomberg Radio and television. Well, Nathan,
Speaker 1: as investors away a word from Powell. There are more
Speaker 1: cons this morning for the Fan again more aggressive. Richmond
Speaker 1: Fan president Thomas Barkin wants to raise interest rates as
Speaker 1: fast as possible, as long as it doesn't cause undue
Speaker 1: harm to market through the economy. We're in a situation
Speaker 1: where inflation is high, it's broad based, it's persistent, and
Speaker 1: rates are still well below normal. And so I think
Speaker 1: the spirit is you want to get back to where
Speaker 1: you want to go as fast as you can without
Speaker 1: breaking anything. And Richmond Fed President Thomas bark And also
Speaker 1: says he does not expect the economy to swiftly return
Speaker 1: to pre pandemic patterns, a more aggressive fed, weaker demand
Speaker 1: for goods, and supply shocks are leading the way for
Speaker 1: more recession fears. Let's get more on that live from
Speaker 1: Bloomberg's Real Need a Young, Good Morning, Good Morning Nathan.
Speaker 1: City Group says there's a fifty percent chance of the
Speaker 1: world economy falling into a recession. As a result, the
Speaker 1: Bank now sees the global economy growing three percent this
Speaker 1: year and two point eight percent in Economists at City
Speaker 1: Groups say if a recession did occur, it's likely to
Speaker 1: be quote garden variety, in which unemployment rises several percentage
Speaker 1: points and output experiences a couple of week quarters Live
Speaker 1: in New York, I'm ren need a Young Bloomberg day break,
Speaker 1: all right, we need to thank you well. Inflation is
Speaker 1: also a major concern overseas. Today's reading in the UK
Speaker 1: as prices jumping to a new four decade high the
Speaker 1: get the latest live with Bloomberg's EU and pots in London,
Speaker 1: Good Morning You and good morning cardena than UK inflation
Speaker 1: in the etomy ticking up to nine point one. The
Speaker 1: reading reflects broad increases in the cost of everything from
Speaker 1: fuel and electricity to food and beverages. There are also
Speaker 1: more signs of growing price pressures at the wholesale level,
Speaker 1: with raw material costs increasing by the most on records.
Speaker 1: The Bank of England says CPI good hits eleven per
Speaker 1: cents later this year in London, I'm your parts Bloomboo daybreak,
Speaker 1: all right you and thank you. Recession fears, the news
Speaker 1: of the Biden administration is prepared to step up its
Speaker 1: fight against gas prices. Has oil on the decline once again.
Speaker 1: Right now NIMEX screwed is down four point seven per cent,
Speaker 1: or five dollars fourteen cents at a hundred four dollars
Speaker 1: thirty nine cents of barrel. This morning, President Biden is
Speaker 1: asking Congress to enact a gas tax holiday. Bloomberg said,
Speaker 1: Baxter has the story. The President is trying to cool
Speaker 1: the soaring pump prices as we head under the summer
Speaker 1: travel season. It is not clear to this point the
Speaker 1: time frame. Mr Biden says it will not hurt infrastructure.
Speaker 1: Is it going to, in fact make it difficult to
Speaker 1: maintain our roads? The answer is we have plenty of
Speaker 1: capacity to do that. Biden also says in the long run,
Speaker 1: there is plenty of oil to drill nine thousand oil
Speaker 1: fields in San Francisco. I'm at Baxter Bloomberg daybreak, Great
Speaker 1: and thank you. Also in Washington, the Senator has voted
Speaker 1: to advance and by partisan gun safety bill, and a
Speaker 1: vote on final passage is expected later this week. Backer
Speaker 1: has called the measure of the biggest breakthrough on the
Speaker 1: issue in decades. Is designed to improve background checks, secure schools,
Speaker 1: and giving states federal funds to combat gun violence. Isaac
Speaker 1: balt Tanski as director of Policy research at bt i G.
Speaker 1: But as we've learned time and time again, the motivator
Speaker 1: for lawmakers is so often the calendar and the jet
Speaker 1: fumes are also in play here because they're trying to
Speaker 1: leave town for two weeks at the end of this week,
Speaker 1: and that is an undeniable motivator, especially for these lawmakers
Speaker 1: who are running for re election. Bt i G is
Speaker 1: Isaac balt Hanski spoke with their Washington correspondent Joe Matthew
Speaker 1: on Bloomberg Sound on Catch the Program weekdays at five
Speaker 1: pm Eastern on Bloomberg radiomcaring the latest round of hearings
Speaker 1: into the January six attack at the US Capital. He's
Speaker 1: in the books testimony yesterday focused on state and local
Speaker 1: officials and the pressure they faced from former President Donald Trump,
Speaker 1: who overturn the election. Committee Democrat Adam Schiff says the
Speaker 1: system held but barely. Anyone who got in the way
Speaker 1: of Donald Trump's continued hold on power after he lost
Speaker 1: the election was the subject of a dangerous and escalating
Speaker 1: campaign of pressure. Congressman Schiff and other committee members heard
Speaker 1: from Georgia's Secretary of State Brad Raefensburger, who says he
Speaker 1: faced a campaign of intimidation, including threats to his wife,
Speaker 1: and then some people broke into my daughter in laws
Speaker 1: home and h I sent has passed, and she's a
Speaker 1: widow and has two kids, and so we're very concerted
Speaker 1: about her safety. Also, Secretary of State Raffensberger says he
Speaker 1: followed every rabbit hole to make sure George's number were accurate,
Speaker 1: but he says the former president came up short. Right now,
Speaker 1: SMP futures are lower by sixty three point, Staff futures
Speaker 1: down four hundred thirty Nasdaq futures down two hundred seventeen points.
Speaker 1: The tenure treasury is up fourteen thirty seconds. The yield
Speaker 1: three point to two straight ahead, your latest local headlines
Speaker 1: and the check of sports. This is Bloomberg, five oh
Speaker 1: seven on Wall Street, sixty six degrees in Central Park
Speaker 1: of the North Boundary Jersey Turnpike. Truck lanes are closed
Speaker 1: the whole length with overnight road work continuing. More coming
Speaker 1: up in traffic. First Michael Barr with more on what's
Speaker 1: going on in New York and around the world. Good morning, Michael,
Speaker 1: Good morning, Nathan. Rent is going up in New York City.
Speaker 1: Last night, the Rent Guidelines Board voted to increase one
Speaker 1: year and two year leases. On the five four vote,
Speaker 1: the board decided to raise the rent for rent stabilized
Speaker 1: departments to three for one year leases. It will go
Speaker 1: up to five percent for two year leases. New York
Speaker 1: City Mayor Eric Adams said the board's decision will be
Speaker 1: a burden to tenants at a difficul old time. The
Speaker 1: mayor also acknowledged that small landlords are at risk of
Speaker 1: bankruptcy because of years of no increases at all. Katie
Speaker 1: Britt has won the Republican runoff against Representative Moe Brooks
Speaker 1: for retiring Alabama Senator Richard Shelby's seat. Britt, Shelby's former
Speaker 1: chief of staff gained ground after Brooks lost Donald Trump's endorsement.
Speaker 1: In March. Britt got while Brooks received The head of
Speaker 1: the Texas Department of Public Safety is now calling the
Speaker 1: law enforcement response to the massacre at the rob Elementary
Speaker 1: School and abject failure. Testifying at a Texas Senate hearing,
Speaker 1: Colonel Steve mccrawl says that there were enough police officers
Speaker 1: on hand that could have stopped the gunman quickly after
Speaker 1: he entered the building. Yet, police officers armed with rifles
Speaker 1: stood and waited in a school hallway for nearly an
Speaker 1: hour while the gunman carried out the massacre, killing nineteen
Speaker 1: elementary students and two teachers. Not enough trainings done in
Speaker 1: the situation, playing simple because of bad decision and terrible decisions.
Speaker 1: Terrible decisions were made by the unseen commander and should
Speaker 1: have never happened. Playing the simple, Colonel Cross laid out
Speaker 1: multiple times police failed to engage sooner. Three minutes into
Speaker 1: the attack. A jury in California signed it with a
Speaker 1: woman who filed a sex abuse lawsuit against comedian Bill Cosby.
Speaker 1: Jurors found Cosby sexually abused that then sixteen year old
Speaker 1: girl at the Playboy mansion. In nineteen seventy five, the
Speaker 1: jury awarded Judy Huff, now sixty four, a half a
Speaker 1: million dollars. Gloria Allread is one of Huff's attorneys. Today,
Speaker 1: our client Judy Huff one real change because she fought
Speaker 1: Bill Cosby one step at a time for over seven
Speaker 1: and a half years. Attorney Gloria all Read Cosby has
Speaker 1: denied the allegations. Global News twenty four hours a day
Speaker 1: on air and on Bloomberg Quick Tank, powered by more
Speaker 1: than twenty seven hun journalist and analyst in more than
Speaker 1: a hundred twenty countries. Michael Barren, this is Bloomberg, Nathan.
Speaker 1: Thank you, Michael. Coming up to five ten on Wall Street.
Speaker 1: Time for the Bloomberg Sports Update Morning, John Stessch After Morning,
Speaker 1: Athan Esther. Cortez has been a revelation for the Yankees.
Speaker 1: Eight of his first nine starts he didn't allow more
Speaker 1: than two runs, but he has come back to earth
Speaker 1: of it. At Tampa Bay, Cortes served up two whole
Speaker 1: runs first inning, Paradis two innings later about this second
Speaker 1: of the game and not wanting Cortez to face Paradis
Speaker 1: the third time, he was removed in the fifth inning
Speaker 1: and this was Clark Schmidt's first pick. Here is Paradies
Speaker 1: already with two homers and says one way up into
Speaker 1: the air and the lift, but did he get another?
Speaker 1: Gon tell Us back back to the wall number three
Speaker 1: Tonight Paradies and the race of a five two league
Speaker 1: and won the game five four rays Radio called cortez
Speaker 1: is e r A has gone from one point three
Speaker 1: a month ago to two point Mets started Trevor Williams
Speaker 1: and Houston he would not be in the rotation if
Speaker 1: not for the next yus or injury, and Williams felt
Speaker 1: the one and four astro's at three home runs. They
Speaker 1: wanted to Toronto's Austin Matthews and scored sixty gold named
Speaker 1: n h L M V P Gorsches. Durkin was third.
Speaker 1: He did, as expected, win the Vesana Trophy, third Ranger
Speaker 1: goalie to ever win that awards. Stanley Cup Finald's tonight
Speaker 1: in Tampa, Colorado. Leads two games one while Brooks Kepta
Speaker 1: not having a good year. He has won four majors.
Speaker 1: He's a big name and now Kepta the latest of
Speaker 1: Bolt the PGA Tour for the new Live Tour. Keptr
Speaker 1: said just last week he hadn't given the live tour
Speaker 1: much thought. Rob Gronkowski, having retired once before, now doing
Speaker 1: it again. Played nine years in New England, came out
Speaker 1: of retirement to play two more with Tom Brady at
Speaker 1: Tampa Bay. Together they won four Super Bowls. Bron certain
Speaker 1: to someday go into the Crow Football Hall of Fame.
Speaker 1: John Stashward, Bloomberg Sports Nathan and potentially certain to retire.
Speaker 1: Thank you, John SMP futures down sixty three point, Staff
Speaker 1: futures down for a thirty nine, NASTAC futures down two
Speaker 1: hundred twenty two points, NIMEX crew down four point six percent,
Speaker 1: down five oh five at a hundred four dollars forty
Speaker 1: seven cents for a barrel, West Texas Intermediate. This is
Speaker 1: Bloomberg Bloomberg eleven three oh Weather mostly cloudy, scattered showers,
Speaker 1: especially along Long Island in Connecticut. Lost seventies today turned
Speaker 1: probably mostly cloudy, upper seventies Tomorrow, low eighties Friday right
Speaker 1: now sixty six in Central Park Markets. Headlines and breaking
Speaker 1: news twenty four hours a day at Bloomberg dot Com,
Speaker 1: the Bloomberg Business apt and at Bloomberg Quick Take. This
Speaker 1: is a Bloomberg business lash when I'm camerin Moscow. Stocks
Speaker 1: in Europe falling along with US stock index, futures and commodities,
Speaker 1: and made ever louder warnings that the FEDS monetary tightening
Speaker 1: may lead to an economic downturn, which at the markets
Speaker 1: every fifteen minutes throughout the trading day on Bloomberg. Right now,
Speaker 1: we SNP futures are down sixty one points down, futures
Speaker 1: down four hundred seventeen and NASDAG futures down two hundred nine.
Speaker 1: The decks in Germany's down you point one percent ten
Speaker 1: your treasury of fifteen thirty seconds here three point to
Speaker 1: one percent, the yield in the two year three point
Speaker 1: one three percent. NIMEX screwed oil is down four point
Speaker 1: six percent on five dollars seven cents at a hundred
Speaker 1: four dollars forty four cents of barrel co mix school
Speaker 1: down six tenths percent or eleven dollars twenty cents at
Speaker 1: eighteen twenty seven sixty an ounce. The euro one point
Speaker 1: oh five one five against the dollar, British bound one
Speaker 1: point to to to seven and the ends at one
Speaker 1: thirty six point to two. And watching bitcoin this morning
Speaker 1: down two point eight percent at twenty thousand, two hundred
Speaker 1: fifty dollars. That's a Bloomberg Business flash. Now here's Michael
Speaker 1: Barr with more on what's going on around the world. Muncle,
Speaker 1: Good morning, Good morning, Karen. President Joe Biden will call
Speaker 1: on Congress to enact a gasoline tax holiday as he
Speaker 1: looks to cool soaring pump prices in the summer. According
Speaker 1: to a person familiar with the plan, Biden will make
Speaker 1: a statement today calling on Congress to enact the pause.
Speaker 1: Senate bargainers have reached an agreement on a bipartisan gun
Speaker 1: violence built would make gun background checks tougher for the
Speaker 1: youngest buyers and bolsters spending for school safety and mental
Speaker 1: health programs. In baseball, the Yankees and Mets lost the
Speaker 1: Red Sox one. The Nationals beat the Orioles three zip.
Speaker 1: The Giants won the A's lost. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quick Take,
Speaker 1: powered by more than journalist and analysts more than a
Speaker 1: hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nick.
Speaker 1: All right, Michael, thank you. It's five nineteen on Wall
Speaker 1: Street Live from the Bloomberg Interactive Brokers Studios. This is
Speaker 1: Bloomberg day Break. Let's get more now and all these
Speaker 1: developments in Washington that Michael bar just reported on. Terry
Speaker 1: Haynes joins us this morning, the founder of Pangea Policy. Terry,
Speaker 1: it's good to speak with you. And we just got
Speaker 1: word from the White House moments ago that President Biden
Speaker 1: is going to call for a three month suspension to
Speaker 1: the federal gas and diesel tax. First off, is it's
Speaker 1: something that's going to pass muster in Congress? And is
Speaker 1: it something that's actually going to have an impact on
Speaker 1: what we've paid at the pump? Good morning, Nathan. A
Speaker 1: couple of things on that. One. I think the basic
Speaker 1: politics of the Biden proposal, UH, make certain that it's
Speaker 1: probably not going to pass. Uh. The three months gas
Speaker 1: tax moratorium, if I may, is UH is designed to
Speaker 1: get it is designed to get everybody through, you know,
Speaker 1: until just before the election. So therefore Republicans probably won't
Speaker 1: react to it positively. Uh. Secondly, you know, I think
Speaker 1: it's a drop in the bucket for the public. Uh.
Speaker 1: There's a deep senator deep and entrenched cynicism about um
Speaker 1: about the steps that the White House wants to take
Speaker 1: on inflation overall, and you know, eighteen cents out of
Speaker 1: a out of a five dollar per gallon trip to
Speaker 1: the pump, UH isn't gonna make anybody warmer and fuzzier
Speaker 1: towards Biden or the Democrats. And frankly is gonna make
Speaker 1: much of a difference at the pump generally. I'll be
Speaker 1: back and forth about whether anybody even sees the eighteen
Speaker 1: cents to economists and UH experts and uh oil. But
Speaker 1: you know, I think this is you know, very much
Speaker 1: a drop in the bucket at best, UH and something
Speaker 1: that is very unlikely to happen on its own. I
Speaker 1: think there's a likelihood that you see a some version
Speaker 1: of what used to be called the Build Back Better
Speaker 1: Bill that includes uh, some prescription drug relief and cent
Speaker 1: a variety of you know, maybe some tax rises all
Speaker 1: the rest. I've been for a while at non consensus
Speaker 1: that something like that happens. It wouldn't be beyond the
Speaker 1: belief to have something on gas tax eventually in there
Speaker 1: as part of a package of inflation fighting measures. UH.
Speaker 1: So if you see it, it will be part of
Speaker 1: that package, and that will probably happen by the end
Speaker 1: of July or it won't happen at all. We also
Speaker 1: got progress in the Senate on a gun safety bill.
Speaker 1: We've seen that advance. Uh, what's your feel on where
Speaker 1: that's going to go from here? Are we're gonna see
Speaker 1: a vote to pass that before the July fourth break? Oh?
Speaker 1: I think so. You know, you and I talked about
Speaker 1: this on June the third, and I had it as
Speaker 1: a non consensus six that that pretty much what's happening
Speaker 1: is six likely to happen. I'd raised that to seventy.
Speaker 1: Now I think it's it gets certainly much more likely.
Speaker 1: And you've got uh, yeah, you had a pretty comfortable
Speaker 1: margin yesterday and a procedural vote. Uh, you know, well
Speaker 1: over sixty voted to advance the legislation. Doesn't it doesn't
Speaker 1: mean they're in favor of every bit of it, but
Speaker 1: that was an important vote to to be able to
Speaker 1: have the Senate debate it. Um. I do think something
Speaker 1: like this happens. You've got some very common sense, uh,
Speaker 1: background check improvements, you've got some very common sense red
Speaker 1: flag improvements, and of course you've got Washington doing with
Speaker 1: Washington and does best, which is splashing around a lot
Speaker 1: of money on things that I I don't mean to
Speaker 1: sound too cynical on that. The money certainly needs to
Speaker 1: be splashed in a lot of ways, but that's uh
Speaker 1: these days increasingly how Washington deals with things, splashing money
Speaker 1: at it. So uh, you know, you've got all those things.
Speaker 1: They're very hard to argue against, and uh so I
Speaker 1: look for something positive to happen here. Uh it is
Speaker 1: for the political terms. It is both an incumbent protection
Speaker 1: program in the sense that incumbents want to have something
Speaker 1: substantial done on guns before the November election, and a
Speaker 1: testament to what I always to tell people, which is
Speaker 1: that you've got the centrists in both parties. I mean
Speaker 1: this political environment, the centrist in both political parties, combined
Speaker 1: with the president frankly staying out of it by request
Speaker 1: of those centrists. In order to get something done. Uh,
Speaker 1: you know, something will happen. And that's pretty much where
Speaker 1: we are today. As always, Terry Haynes with us this morning,
Speaker 1: founder of Pangea Policy, some insights on all the developments
Speaker 1: happening in the nation's capital, including this word we got
Speaker 1: from the White House just this morning that President Biden
Speaker 1: is going to be calling for a three month suspension
Speaker 1: to the federal gas taxes. We see nationwide average gas
Speaker 1: prices close to five dollars a gallon. Plus progress on
Speaker 1: gun safety legislation, with the Senate advancing a compromise bill
Speaker 1: on that front. Terry, as always, thanks for your insights.
Speaker 1: Looking ahead to the market, open futures are moving lower
Speaker 1: ahead of Chairman Powell's testimony on Capitol Hill today. All
Speaker 1: right now, SMP futures are down fifty seven points, DAL
Speaker 1: futures down three nine. Nasdaq futures are lower by a
Speaker 1: hundred ninety seven points. The tenure Treasury is up fifteen
Speaker 1: thirty seconds, the yield three point to one per cent.
Speaker 1: Just ahead on Bloomberg day Break, Chairman Powell perhaps for
Speaker 1: two days of testimony on Capitol Hill, and now City
Speaker 1: Group joining the calls for higher risk for a global recession.
Speaker 1: This is Bloomberg Bloomberg eleven three oh weather. Mostly cloudy,
Speaker 1: scattered showers, especially across Long Island in Connecticut today with
Speaker 1: highs and the low seventies will be near eighty tomorrow,
Speaker 1: turning partly to mostly cloudy, low eightiest Friday. Right now
Speaker 1: sixty six degrees. Broadcasting live from the Bloomberg Interactive broker
Speaker 1: studio in New York. Bloomberg E Living Free to Washington,
Speaker 1: d C, Bloomberg on to Boston, Bloomberg one O six
Speaker 1: one to San Francisco, Bloomberg sixty to the country, Sirius
Speaker 1: XM Chado one nine te and around the globe the
Speaker 1: Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak.
Speaker 1: It's five thirty on Wall Street. Good morning. I'm Nathan
Speaker 1: Hagar and I'm Karen Moscow. We are just about four
Speaker 1: hours away from the in the US trading. Let's get
Speaker 1: you have to date on the news you need to
Speaker 1: know at this hour. We begin with the Federal Reserve
Speaker 1: as share J. Powell prepares to appear before the Senate
Speaker 1: Banking Committee this morning. Powell's expected to feel questions about
Speaker 1: how high and fast he needs to raise interest rates
Speaker 1: to slow inflation. At the same time, there are calls
Speaker 1: for the Central Bank to be more aggressive. Richmond Fed
Speaker 1: President Thomas Barkin wants to raise rates as fast as possible,
Speaker 1: but avoid causing undue harm to market thor the economy.
Speaker 1: I think you have to be flexible to what happens
Speaker 1: the faster inflation comes down, the less you're gonna have
Speaker 1: to do in terms of restrictive montery policy. But the
Speaker 1: more difficult the external forces are, the more you'll have
Speaker 1: to do. Richmond FED President Thomas Barkin says he supported
Speaker 1: the decision to raise rates seventy five basis points earlier
Speaker 1: this month. You can catch full coverage of FED Chairman
Speaker 1: Powell Senate testimony today around am Wall Street time on
Speaker 1: Bloomberg Radio and television. Well ahead of that, Karen, a
Speaker 1: more aggressive FED, Weaker demand and supply shocks are leading
Speaker 1: the way for more recession fears. Blue bergs we need
Speaker 1: a young joins us Live with more on that Good morning,
Speaker 1: Good Morning, Nathan. City Groups says there's a fifty percent
Speaker 1: chance of the world economy falling into a recession. As
Speaker 1: a result, the Bank now sees the global economy growing
Speaker 1: three percent this year and two point eight percent economy sets.
Speaker 1: City Groups say if a recession did occur, it's likely
Speaker 1: to be quote garden variety in which unemployment rises several
Speaker 1: percentage points and output experiences a couple of week quarters
Speaker 1: live in New York. I'm gonna need a young Bloomberg
Speaker 1: daybreak all right, Reneed to thank you recession fears and news.
Speaker 1: President Biden is calling for a gas tax holiday as
Speaker 1: oil declining once again. Later today, President bought in Molask
Speaker 1: Congress to enact in gasoline tax holiday for three months
Speaker 1: and checking prices now nine ex screwde oil is down
Speaker 1: four point seven percent on five dollars nineteen cents and
Speaker 1: a hundred four dollars thirty two cents of barrel Brent
Speaker 1: is down more than four percent, as well as a
Speaker 1: hundred nine dollars one cents. Also in Washington, Karen, the
Speaker 1: Senate has voted to advance of bypartisan gun safety bill.
Speaker 1: A vote on final passages expected later this week. Isaac Boltanski,
Speaker 1: Managing director of Policy Research at bt i G, says
Speaker 1: there are a couple key points in the bill. The
Speaker 1: one is the boyfriend louphole and the other is very important.
Speaker 1: It's how are they going to structure federal grants to
Speaker 1: states in relation to h state level the imposition of
Speaker 1: state level red flag walls. Bt i G. Isaac Boltanski
Speaker 1: spoke with our Washington correspondent Joe Matthew on Bloomberg sound
Speaker 1: on Catch the Show weekdays at five pm Eastern on
Speaker 1: Bloomberg Radio. This is Bloomberg Daybreak and it's now five
Speaker 1: thirty three on Wall Street. We're sixty six degrees in
Speaker 1: Central Park. Got an accident on the eastbound Jackie Robinson
Speaker 1: Parkway at Cypress Hill Street. More on that coming up
Speaker 1: in traffic First Michael Barr with more on what's going
Speaker 1: on in New York and around the world. Michael, thank
Speaker 1: you very much. Nathan. It's going to cost more to
Speaker 1: live in New York City. Last night, the Rent Guidelines
Speaker 1: Board voted to increased rents for those who live in
Speaker 1: rent stables departments by a five four margin. The Rent
Speaker 1: Board gave the green light to a three point increase
Speaker 1: on one year leases. For two year leases, it will
Speaker 1: be a five percent increase. The January six Committees hearing
Speaker 1: focused on election officials in Arizona and Georgia. Former President
Speaker 1: Trump and his allies are accused of pressuring those officials
Speaker 1: to overturn the results of the election. To Georgia, election
Speaker 1: workers Ruby Freeman and her daughter testified yesterday. Investigators say
Speaker 1: they were falsely accused of election tampering by Trump and
Speaker 1: Rudy Giuliani. The President of the United States is supposed
Speaker 1: to represent every American not to target one, but he
Speaker 1: targeted me. Freeman's daughters says there were a lot of
Speaker 1: people wishing death on her. Katie Britt won the Republican
Speaker 1: nomination for Senate in Alabama, defeating six term Congressman Moe
Speaker 1: Brooks and the primary runoff, former President Trump endorsed and
Speaker 1: then unendorsed Brooks, who had run under the banner Maga mob.
Speaker 1: Trump eventually endorsed Britt, who received forty five percent, while
Speaker 1: brook Scott d C. Mayor Muriel Bowser has won the
Speaker 1: Democratic primary, putting her on track for a third term
Speaker 1: to leave the nation's capital. Bowser received fifty percent of
Speaker 1: the vote compared to second place Robert White. At thirty
Speaker 1: civil trial juror's rule that Bill Cosby sexually abdused a
Speaker 1: sixteen year old girl at the Playboy Mansion in the
Speaker 1: Los Angeles County jury delivered the verdict in favor of
Speaker 1: Judy Huff, now sixty four, and awarded her five hundred
Speaker 1: thousand dollars. Nathan Goldberg is one of Huff's attorneys. It
Speaker 1: proves that you know you can run, but you can't
Speaker 1: hide that, no matter what he did so many years ago,
Speaker 1: thinking that you know he could just get away with it.
Speaker 1: We brought him here to this court to have justice
Speaker 1: and we won. Cosby has repeatedly denied Huff's allegations. Global
Speaker 1: News twenty four hours a day on air and on
Speaker 1: Bloomberg Quick Take Howard by more than twenty seven under
Speaker 1: journalists and analysts in more than a hundred twenty countries.
Speaker 1: I'm Michael bar This is Bloomberg Naked. Thank you, Michael.
Speaker 1: On Wall Street, time for the Bloomberg Sports Update with
Speaker 1: John stash Our right faith in. The Tampa Bay Rays
Speaker 1: made a trade just for the season started. They sent
Speaker 1: Austin Meadows to Detroit for East Sank Parades. Yank, He's
Speaker 1: probably happy to hear about that trade, Meadows with someone
Speaker 1: of a Yankee killer. But last night Parades hit three
Speaker 1: home run solo shots in the first and third innings
Speaker 1: off Nestor Cortez and then a two one blast and
Speaker 1: the fifth first pitch served up by reliever Clark Schmidt.
Speaker 1: Paradis had one more at fat got hit by a pitch,
Speaker 1: raised beat the Yanks five to four. Mets lost in
Speaker 1: Houston eight to two. Jose Altuve homer for the Astros.
Speaker 1: So did Jordan Alvarez is nineteenth. The year three one
Speaker 1: double for Kyle Tucker Stanley Cuff final resumes tonight in Tampa, Colorado,
Speaker 1: leads to one. They handed out postseason awards last night,
Speaker 1: the m v P to Toronto's Austin Matthews after a
Speaker 1: sixty gold season. Rangers goaliegor says Turkin was a finalist
Speaker 1: for the Hard Trophy. He did win the Vezzana for
Speaker 1: Best goal. He led the league with the goals against
Speaker 1: just over to only previous Ranger winners Mike Richter and
Speaker 1: John Van Peasbrook a settlement between the Shawn Watson and
Speaker 1: twenty of the twenty four plaintiffs suing Watson for sexual misconduct.
Speaker 1: Watson has denied any wrongdoing. He's now with the Cleveland Browns.
Speaker 1: He is awaiting discipline from the NFL. Rob Gronkowski said
Speaker 1: in a statement he walks away with his head held high.
Speaker 1: This is Gronk's second retirement announcement. That's one more than
Speaker 1: his long time teammate before still active, Tom Brady. Together
Speaker 1: they won four Super Bowls, three with New England and
Speaker 1: one in Tampa Brooks. Keepka said last week he had
Speaker 1: hardly heard of the New Live Tour. Now he's joining it.
Speaker 1: A winner of four majors, although he struggled this year.
Speaker 1: Keepki becomes the latest big name. Golford of Bolt the
Speaker 1: p g A Ton Statue Want Bloomberg Sports Nay? Thanks
Speaker 1: John seven on Wall Street Time for the Tri State
Speaker 1: Business Report. Here s Bloomberg's head Cory. The owners and
Speaker 1: operators of all forty one Broadway theater is in New
Speaker 1: York City have agreed to adopt an optional masking policy
Speaker 1: for the month of July. The new policy ends a
Speaker 1: near year long policy of requiring masks and theaters at
Speaker 1: all times, but it stopped short of a complete removal
Speaker 1: of the mandate. New Jersey, Illinois, and Inland California had
Speaker 1: the highest concentrations of the housing markets that faced the
Speaker 1: most risk of declining markets in the first quarter of two.
Speaker 1: Report says the biggest clusters of vulnerable markets are in
Speaker 1: the New York City and Chicago areas. The New Jersey
Speaker 1: Assembly has passed legislation that would ease the burden of
Speaker 1: tax increases on small businesses. Now, business leaders want to
Speaker 1: build a past the state Senate. The State Business and
Speaker 1: Industry Association tells The Star Ledger businesses are confronting about
Speaker 1: two hundred fifty million dollars and added taxes this fiscal year.
Speaker 1: And your Bloomberg Try State Business Report. I did Corey,
Speaker 1: thank you at It's five thirty eight on Wall Street.
Speaker 1: Bloomberg Radio is on the air from San Francisco to
Speaker 1: New York, London to Hong Kong. Let's check in with
Speaker 1: our global news team for some of the top stories
Speaker 1: heard on our three hundred Aphilia radio stations around the world.
Speaker 1: I'm Steve potas content and Wins in New York. We're
Speaker 1: talking about how some vacant Wall Street office spaces are
Speaker 1: being converted into places to live. M Corney Donahoe on
Speaker 1: ktr H in Houston. Target is calling the July fourth
Speaker 1: weekend a big test for consumer demand, and Lisa Matteo
Speaker 1: and on km OX and St. Louis, I'll be reporting
Speaker 1: on why the fourth of July holiday will be a
Speaker 1: big test for consumers. I'm Gina Servetti in for Double
Speaker 1: BBM in Chicago. I'm reporting that Boeimes at CEO says
Speaker 1: air travel demand appears to be sustainable, but Dave Calhoun
Speaker 1: offered a bleak view of the supply problems hitting the
Speaker 1: aviation industry. I'm ad Cory on w A t AM
Speaker 1: in Cleveland. I'm reporting Walgreen Cower's announced the new alliance
Speaker 1: with Buckeye Health Plan. Those are some of the stories
Speaker 1: our twenty seven hundred Bloomberg journalists and analysts are working
Speaker 1: on this morning around the world. It's five thirty nine
Speaker 1: on Wall Street. The following is an editorial from Bloomberg Opinion.
Speaker 1: In agreeing to visit Saudi Arabia next month, President Joe
Speaker 1: Biden has stepped back from his vow to treat the
Speaker 1: country as a pariah. Critics have blasted him for overlooking
Speaker 1: Saudi human rights violations. Even so, Biden's trip conserve a
Speaker 1: valuable purpose. Healthy U s Saudi ties are critical to
Speaker 1: call me in a volatile part of the world and
Speaker 1: stabilizing global energy markets. When he meets with Crown Prince
Speaker 1: Mohammed Bin Salomon, Biden should make clear that improved relations
Speaker 1: require both nations to respect each other's core interests. For example,
Speaker 1: if the US is to reaffirm its commitment to Saudi security,
Speaker 1: then Saudi leaders must pull back from their flirtation with
Speaker 1: the Russians and Chinese Biden's trip should be seen not
Speaker 1: as a concession, but as an investment in a relationship
Speaker 1: that both states need to work. If Biden can restore
Speaker 1: that freight understanding, his visit will have been worth it.
Speaker 1: This editorial was written by the Bloomberg Opinion in the
Speaker 1: editorial Board. I'm David Shipley. For more Bloomberg opinion, please
Speaker 1: go to Bloomberg dot com, Slash Opinion or Opian. Go
Speaker 1: on the Bloomberg terminal. This has been Bloomberg opinion and
Speaker 1: you can hear Bloomberg opinion editorials every weekday at this time.
Speaker 1: Terminal customers can read more at opie I n go.
Speaker 1: This is Bloomberg Bloomberg eleven three oh weather. Scattered showers,
Speaker 1: especially across Long Island in Connecticut, otherwise mostly cloudy, low
Speaker 1: seventies today, will turn partably mostly cloudy tomorrow, upper seventies,
Speaker 1: low eighties Friday. Right now sixty six in Central Park Markets.
Speaker 1: Headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quick Take.
Speaker 1: This is a Bloomberg business clash and I'm Karen Moscow.
Speaker 1: And stocks in Europe are falling along with US stock index,
Speaker 1: futures and commodities, and at ever louder warnings at the
Speaker 1: Federal Reserve monetary tightening may lead to an economic downturn.
Speaker 1: We check the markets every fifteen minutes throughout the trading
Speaker 1: day on Bloomberg s and P future is down fifty
Speaker 1: eight points now, futures down four hundred and NASDAG futures
Speaker 1: down two hundred one. The decks in Germany's down two
Speaker 1: point one percent, the ten year treasury up seventeen thirty seconds.
Speaker 1: You have three point zero percent yield on the two
Speaker 1: year three point one zero percent. NIMEX screwed oil is
Speaker 1: down about five percent on five dollars twenty two cents,
Speaker 1: and a hundred four dollars thirty cents of barrel comex
Speaker 1: s goold is down half percent or nine dollars forty cents.
Speaker 1: In eighteen twenty nine, fifty announced the euro one point
Speaker 1: oh five on three against the dollar, British found one
Speaker 1: point to two to six and the yen one thirty
Speaker 1: five point eight six and bitcoin this morning down two
Speaker 1: percent at twenty thousand, four hundred twenty dollars. And that's
Speaker 1: a Bloomberg business flash now here's Michael Barr with more
Speaker 1: on what's going on around the world. Michael Karen, thank
Speaker 1: you very much. The Senate voted on gun legislation last
Speaker 1: night after weeks of negotiations. The biopartisan deal had ten
Speaker 1: Republican senators on board. Some of the provisions include tougher
Speaker 1: background checks for firearms buyers under twenty one. An earthquake
Speaker 1: and Afghanistan has killed at least nine twenty people. The
Speaker 1: magnitude six point one earthquake struck in the remote parts
Speaker 1: of eastern Afghanistan, with officials saying hundreds were injured. In baseball,
Speaker 1: the Yankees and Mets lost the Red Sox one. The
Speaker 1: Nationals beat the Orioles three zip. The Giants won the
Speaker 1: A's lost. Global news twenty more hours a day on
Speaker 1: air and on Bloomberg Quicktake, powered by more than twenty
Speaker 1: seven d journalists and analyists more than a hundred twenty countries.
Speaker 1: I'm Michael Barn. This is Bloomberg. Nathan all right, Michael,
Speaker 1: thank you. We're coming up to five forty nine on
Speaker 1: Wall Street Line from the Bloomberg Interactive Brokers Studios. This
Speaker 1: is Bloomberg Daybreak, and investors eyes will be on Capitol
Speaker 1: Hill later this morning, as Federal Reserve Chairman Jerome Powell
Speaker 1: begins two days of testimony on monetary policy, markets will
Speaker 1: be looking for clues on what the Fed plans to
Speaker 1: do to rain in forty year inflation. Ahead of that,
Speaker 1: we're joined by David Rosenberg, Founder, chief economist and strategist
Speaker 1: at Rosenberg Research. David, good morning, It's always great to
Speaker 1: speak with you, and we just heard from the White
Speaker 1: House this morning that President Biden is going to be
Speaker 1: making a call to try to rain in inflation in
Speaker 1: gas prices by calling for a three month suspension of
Speaker 1: the federal gas tax. Do you see that having any
Speaker 1: kind of impact if Congress goes along with it. Well, look,
Speaker 1: if it does happen, we're talking about eighteen cents for
Speaker 1: a short period of time, So it's nothing more than
Speaker 1: a gimmick, um politically motivated to show that the White
Speaker 1: House is trying to do something about inflation. But I mean,
Speaker 1: I say, come on, eighteen cents. That takes gasoline prices
Speaker 1: back to where they were three weeks ago and would
Speaker 1: still leave them up more than fifty percent year of
Speaker 1: the year. So it's really, um a nothing more than
Speaker 1: a very small move to make it seem as though
Speaker 1: the White House is doing something and the economic impact
Speaker 1: is going to be in phantismal. Interesting though, that the
Speaker 1: President up to now has said that in order to
Speaker 1: get a handle on inflation, the Federal Reserve needs room
Speaker 1: to work, to have its independence to make the decisions
Speaker 1: that it's going to make. We are going to hear
Speaker 1: from Chairman Powell later this morning. He's been talking about
Speaker 1: a couple of seventy five basis point moves. Are you
Speaker 1: expecting that we're going to get any more clarity from
Speaker 1: Chairman Powell today when he goes before the Senate Banking Committee? Well,
Speaker 1: how much more clarity can we possibly get that we
Speaker 1: didn't get exactly a week ago at his press conference
Speaker 1: following the Effluenc meeting. So a week has gone by,
Speaker 1: what really has changed all that much? And what he
Speaker 1: continued to stress over and over again was the FED
Speaker 1: primary focus on headline inflation. Uh, back in the day
Speaker 1: used to be that core inflation was really the driving
Speaker 1: force for the Fed. UM, but now they think they
Speaker 1: can somehow control food and energy prices. UM. So I
Speaker 1: would say that he's going to continue to beat the
Speaker 1: drum of the necessity again from a political standpoint for
Speaker 1: the lower middle class being hit by headline inflation. Uh
Speaker 1: that um, it's uh damn, the torpedoes full steam ahead.
Speaker 1: That the FED is going to continue to raise interest
Speaker 1: rates here until something breaks. So do you think that
Speaker 1: Chairman Palace swayed by the likes of Richmond fred President
Speaker 1: Thomas Barkin, who just came out and said the FED
Speaker 1: should go as aggressively as it can, as fast as
Speaker 1: it can, as long as it doesn't do damage to
Speaker 1: the economy. Well, I don't know, is that I could
Speaker 1: flip the question around, is it Powell gonna follow a
Speaker 1: Barkin or is Barkin following Powell? Or basically maybe outside
Speaker 1: of esther George and that was a surprise descent from
Speaker 1: a traditional hawk. I think most people at the FED
Speaker 1: are thinking fifty or seventy five. A lot are still
Speaker 1: tilted towards seventy five basis point. They know full well
Speaker 1: that we're in a bear market and equities the FED
Speaker 1: is never tightened policy into this sort of a bear
Speaker 1: market before. But like I said, they believe their mandate
Speaker 1: now is headline inflation. It's over eight percent, and they're
Speaker 1: going to continue to tighten policy and probably will hope
Speaker 1: that we don't fall into recession. But look, we've had
Speaker 1: fourteen FED tightening cycle since nineteen fifty eleven of them
Speaker 1: most of them unintended lemit economy and recession. So when
Speaker 1: you're taking a look right now with the stock market
Speaker 1: is telling you, the stock market is telling you both
Speaker 1: the headline and all the cyclical components beneath the veneer,
Speaker 1: is that a recession is staring us in the face.
Speaker 1: So but my sense is that that's if the Fed
Speaker 1: is determined to get this sort of inflation principally not
Speaker 1: exclusively principally supply induced. They want to get inflation back
Speaker 1: down towards two percent, you will only achieve it in
Speaker 1: this sort of environment by generating a contraction and accurate demand.
Speaker 1: The GDP is accurate demand, and it means a recession
Speaker 1: is coming sooner rather than later. That's your call then,
Speaker 1: that we're going to see a recession, perhaps as soon
Speaker 1: as this year. I think it's probably steering us in
Speaker 1: the face. I don't know why people think it's next
Speaker 1: year's story. The stock market tends to lead by roughly
Speaker 1: six months. Attorney points not once have we entered into
Speaker 1: a bear market where the lead time was twelve months.
Speaker 1: It's never happened before. So yeah, I think that it's
Speaker 1: most likely starting in the second half of the year,
Speaker 1: And it could have already started when you consider we
Speaker 1: had negative one five Q one real GDP. Of course,
Speaker 1: all the economists say, oh, we'll just ignore inventories and
Speaker 1: exports as if they don't matter. And Atlanta fat is
Speaker 1: down to zero for Q two. So I think that
Speaker 1: we're uh, you know, we the k the de k
Speaker 1: in the numbers are clearly evident that we're heading into
Speaker 1: a contraction in real GDP. I think it will come
Speaker 1: more forcefully in the second half of the year. Uh.
Speaker 1: And the leading indicators are telling you that. I mean,
Speaker 1: how often in the past have we had three months
Speaker 1: in a row of negative readings and the conference boards
Speaker 1: leading economic indicator, nobody talks about this, down three months
Speaker 1: in a row and down four the five past months,
Speaker 1: and all people are focused on his inflation inflations. By
Speaker 1: the way, he does kill heal g DT on its own,
Speaker 1: but nobody talks about these things that basically the conference
Speaker 1: sports meeting indicators telling you, by the way that the
Speaker 1: odds of recession are nine if you live with the
Speaker 1: historical record. Thanks for this, David, good having you on
Speaker 1: with a David Rosenberg of Rosenberg Research, Karen Nathan. It
Speaker 1: is five fifty four on Wall Street. Now to a
Speaker 1: legal story we're watching. The Supreme Court will issue opinions
Speaker 1: again on Thursday, with only thirteen cases left to decide
Speaker 1: before the summer recess. The most highly anticipated is a
Speaker 1: decision on Mississippi's ban on abortions, which could mean the
Speaker 1: end of Roe v. Wade, according to a Elite draft opinion.
Speaker 1: President Biden has said he is considering executive actions to
Speaker 1: protect abortion rights for more Bloomberg's doing grossos Vic. To
Speaker 1: Mary Ziegler, professor at u C. Davis Law School, there's
Speaker 1: also a suggestion of using federal funds to help pay
Speaker 1: travel and lodging costs for poor women who are crossing
Speaker 1: state lines to get an abortion, assuming that states allow
Speaker 1: people to travel out of state for abortion without effectively
Speaker 1: shutting down abortion providers. Assuming that happens, then it would
Speaker 1: be important for people have the ability to pay right.
Speaker 1: There will again probably be legal challenges, primarily based on
Speaker 1: the High Amendment, so some people will say the High
Speaker 1: amendment is narrow, it's just about Medicaid reimbursement for abortion.
Speaker 1: Others will point to language and the affordable character the
Speaker 1: heighamanman essentially saying, you know, differing the cost of abortion
Speaker 1: is kind amount to pay for abortion, and that various
Speaker 1: aspects of federal law make that impossible. Again, I don't
Speaker 1: know how that kind of federal challenge will go, but
Speaker 1: we would again expect to see litigation about that. We've
Speaker 1: talked before about abortion pills and how that may be
Speaker 1: the new frontier for abortion. Right now, the FDA requires
Speaker 1: any pharmacy that distributes a drug to obtain a special license.
Speaker 1: So another proposal is just to make it easier to
Speaker 1: obtain abortion pills. Is that an easy fix? I'm that's
Speaker 1: certainly an easier fixed. It won't obviously address all of
Speaker 1: the kinds of things that we see Red States planning
Speaker 1: to do in the aftermath of Rugby Wad being overturned.
Speaker 1: But I think for many supporters of abortion rights, the
Speaker 1: additional restrictions on access to abortion medication are not warranted
Speaker 1: based on existing evidence, and they do make abortion medication
Speaker 1: harder to get. I think, obviously in states that will
Speaker 1: seek to criminalize abortion medication. That's only a piece of
Speaker 1: a bigger picture, but I think it's certainly something that
Speaker 1: abortion rights supporters will see it to be overdue. The
Speaker 1: states that want to criminalize abortion pills, how do you
Speaker 1: think they'll go about that? More likely, what we're going
Speaker 1: to see um is some combination of kind of bounty
Speaker 1: schemes like we've seen with Texas spate, or states incentivized
Speaker 1: people or potentially even require people to report when they
Speaker 1: have evidence of an abortion taking place, or we're likely
Speaker 1: to see lots of cyber surveillance. There are lots of
Speaker 1: ways that government can access your online data, whether that's
Speaker 1: someone who's searched on Google for abortion, or someone's cell
Speaker 1: phone location data if they've traveled for an abortion period,
Speaker 1: tracker apps, and so on, which is why you've seen
Speaker 1: some proposals from Democrats to focus on digital privacy, because
Speaker 1: of course digital privacy concerns would affect those speaking abortions,
Speaker 1: but potentially many others as well as states are trying
Speaker 1: to figure out who's having abortions. They may be surveying
Speaker 1: people of reproductive age or even just people who are
Speaker 1: researching abortion, and that's very Ziggler professor at You See
Speaker 1: David's Law school speaking at Bloomberg Student Grass So catch
Speaker 1: more of that interview, plus analysis of the latest legal
Speaker 1: news my subscribing to the Bloomberg Law Podcast or downloading
Speaker 1: this show at Bloomberg dot com slash podcast, and our
Speaker 1: top stories are straight ahead as Bloomberg day Break continues.
Speaker 1: This is Bloomberg