WEBVTT - Bloomberg Daybreak: May 5, 2022 - Hour 1 (Radio) 0:00:03.080 --> 0:00:06.240 Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg 0:00:06.280 --> 0:00:09.720 day Break for Thursday, May five, two. Coming up this hour. 0:00:10.039 --> 0:00:12.680 US stocks had their best day in two years after J. 0:00:12.800 --> 0:00:15.600 Pale indicates a seventy five basis point hike is not 0:00:15.800 --> 0:00:17.759 in the cards. The Bank of England is expected to 0:00:17.840 --> 0:00:20.920 raise rates to the highest level in thirteen years, and 0:00:21.040 --> 0:00:24.680 Warren Buffett raises his bet on one oil giant. The 0:00:24.760 --> 0:00:28.200 majority of New Yorker's disapprove of Mayor Adams handling on 0:00:28.400 --> 0:00:31.760 prime less seconds. Every year, State Anthony Blincoln tests positive 0:00:31.800 --> 0:00:35.880 for COVID. I'm Michael Barr More Ahead, I'm John Stationward Sports. 0:00:35.880 --> 0:00:38.159 The Yankees eleven game win Street came to an end. 0:00:38.159 --> 0:00:40.839 The Mets also lost the Rangers in Penguins play Game 0:00:40.880 --> 0:00:45.839 two with the Garden. Tonight, that's All's trained. Head on 0:00:45.960 --> 0:00:49.320 Bloomberg day Break on Bloomberg eleven, Free on New York, 0:00:49.520 --> 0:00:54.200 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.480 --> 0:00:59.200 Bloomberg nine sixties, and Francisco Syrius XM one nineteen and 0:00:59.280 --> 0:01:02.080 around the world Old on Bloomberg Radio dot Com and 0:01:02.200 --> 0:01:08.400 via the Bloomberg Business app. Hey, good morning, I'm Nathan 0:01:08.400 --> 0:01:11.759 Hager and I'm Karen Moscow. In US stock index futures 0:01:11.760 --> 0:01:14.160 are following this morning. We're coming up to five out 0:01:14.200 --> 0:01:15.960 one on Wall Street, and we check the markets every 0:01:15.959 --> 0:01:19.720 fifteen minutes throughout the trading day. On Bloomberg SMP futures 0:01:19.760 --> 0:01:22.559 down thirty one points down, futures down a hundred sixty 0:01:22.600 --> 0:01:26.200 six and Nastack futures down one two. The decks in 0:01:26.240 --> 0:01:30.120 Germany is higher up one point four percent. Tenure Treasury 0:01:30.160 --> 0:01:32.880 down five thirty seconds, yield two point nine five percent, 0:01:33.000 --> 0:01:35.400 yield on the two year two point six seven percent, 0:01:35.560 --> 0:01:39.000 Nathan Karen. The pullback in stock futures follows yesterday's FED 0:01:39.080 --> 0:01:42.360 fueled rallying. In his news conference after the FEDS fifty 0:01:42.360 --> 0:01:45.759 basis point rate hike, Chairman J Powell indicated another fifty, 0:01:45.920 --> 0:01:48.919 not seventy five, was on the table for the next meeting. 0:01:49.600 --> 0:01:53.600 Seventy basis point uh it increases not something the Committee 0:01:53.640 --> 0:01:57.120 is actively considering, assuming that economic and financial conditions evolve 0:01:57.600 --> 0:02:00.960 in ways that are consistent with our expectations. There's a 0:02:01.000 --> 0:02:03.840 broad sense on the Committee that additional fifty basis increases 0:02:03.840 --> 0:02:05.920 should be on fifty basis points should be on the 0:02:05.960 --> 0:02:08.120 table for the next couple of meetings. That comment by 0:02:08.160 --> 0:02:11.040 Fed share Powell fueled a huge rally, and markets treasury 0:02:11.080 --> 0:02:14.160 yields dropped. Stocks rally the most in two years, The 0:02:14.280 --> 0:02:17.320 SMP five hundred surge three percent, while the tech heavy 0:02:17.400 --> 0:02:20.919 NASDAC grows three point two percent. Jason Brady is CEO 0:02:20.960 --> 0:02:24.480 of Thornburg Investment Management. I actually expected seventy five to 0:02:24.480 --> 0:02:26.440 be on the table. He took it off the table. 0:02:26.480 --> 0:02:29.520 I think the markets were pricing in very hawkish, and 0:02:29.600 --> 0:02:32.400 you could now hawk the market. So obviously, the reaction 0:02:32.440 --> 0:02:34.440 markets has been that this is a little bit more dubbish, 0:02:34.600 --> 0:02:37.560 and Thornburg Investment Management CEO Jason Brady says he thinks 0:02:37.639 --> 0:02:41.520 yesterday's rally is not sustainable. Well, Nathan, reaction is still 0:02:41.520 --> 0:02:44.720 pouring into Powell, pushing back against a larger seventy five 0:02:44.760 --> 0:02:47.040 basis point increase. And we get the very latest line 0:02:47.040 --> 0:02:50.200 from Bloomberg's John Tucker, John and Good Morning Karen at 0:02:50.200 --> 0:02:52.920 Graham Thornton. The chief economists their Diane Swant says the 0:02:52.960 --> 0:02:56.440 FED is operating in a new paradigm. The FED is 0:02:56.480 --> 0:02:59.280 now in the position where they're focused on inflation and 0:02:59.520 --> 0:03:03.480 employee mint is secondary. That is a very different equation 0:03:03.560 --> 0:03:06.240 than we've seen the fit in for a very very 0:03:06.320 --> 0:03:10.440 long time, And Scott Minor, the chief investment officer at Guggenheim, says, 0:03:10.480 --> 0:03:13.160 going back to the nineteen thirties, the FED has never 0:03:13.240 --> 0:03:16.000 been able to reduce inflation but more than two and 0:03:16.000 --> 0:03:20.600 a half percentage points without inducing a recession. So even 0:03:20.680 --> 0:03:23.520 if we don't get close to the two percent target, 0:03:23.880 --> 0:03:26.600 it's very likely that we will have some kind of 0:03:26.600 --> 0:03:30.919 an economic slowdown well before we get to the desired 0:03:30.960 --> 0:03:34.600 inflation target, and further hikes of fifty basis points are 0:03:34.720 --> 0:03:37.360 on the table for June and July. Still, traders interpret 0:03:37.400 --> 0:03:40.320 the day's events as slightly dubbish. Live in New York 0:03:40.320 --> 0:03:43.440 on John Tucker Bloomberg Daybreak. All right, John, thanks up next, 0:03:43.480 --> 0:03:46.560 an important policy decision in Europe this morning. Let's get 0:03:46.560 --> 0:03:48.960 the very latest line from Bloomberg's You and Potts. Good morning, 0:03:49.520 --> 0:03:51.360 Good morning, Nathan and Karen. On the eve of the 0:03:51.360 --> 0:03:54.280 twenty fifth anniversary of the Bank of England's independence, the 0:03:54.360 --> 0:03:57.000 UK Central Bank is sets aways rates today to one, 0:03:57.840 --> 0:04:01.160 it's fourth straight indust rate high. The baway will also 0:04:01.200 --> 0:04:03.680 allow out how it intends to take unschoted steps to 0:04:03.760 --> 0:04:07.480 unwind more than a decade of bond purchases. Governor Andrew 0:04:07.480 --> 0:04:10.080 Baidy will have to balance efforts to contain inflation at 0:04:10.160 --> 0:04:13.000 a thirty year high against the risk of squeezing the 0:04:13.000 --> 0:04:16.600 economy too hard. In London, you and Pott's Bloomberg Radio Europe, 0:04:16.920 --> 0:04:18.880 are you and thank you well? There's also an OPAQUE 0:04:18.880 --> 0:04:21.560 meeting today. OPEC and his allies are expected to ranify 0:04:21.600 --> 0:04:24.280 another their small increase in oil production. Their meeting comes 0:04:24.320 --> 0:04:26.560 just one day after the EU announced its plan for 0:04:26.600 --> 0:04:29.919 a phased ban on Russian crude and checking prices. Right now, 0:04:30.080 --> 0:04:32.400 NIME ex screwde oil is up about two tenths per cent, 0:04:32.480 --> 0:04:35.240 or fifteen cents at a hundred seven dollars ninety six 0:04:35.279 --> 0:04:37.680 cents of barrel, and Brent is up four tens percent 0:04:37.880 --> 0:04:40.520 at a hundred ten dollars fifty six cents. Well, oil 0:04:40.520 --> 0:04:44.919 prices at historic highstcare and have lawmakers appointing anti trust 0:04:45.000 --> 0:04:48.440 laws at OPEC. A key Senate committee is expected to 0:04:48.480 --> 0:04:51.479 approve legislation that would allow the US to sue the 0:04:51.520 --> 0:04:55.279 cartel for manipulating energy markets. The vote by the Senate 0:04:55.320 --> 0:04:58.960 Judiciary Committee today would pave the way for full Senate consideration. 0:04:59.320 --> 0:05:01.200 I was staying in the oil patch, Nathan. We're in 0:05:01.279 --> 0:05:04.840 Buffett increasing his bat on one big energy company. I mean, 0:05:04.839 --> 0:05:07.560 get the latest line from Bloomberg's readied a Young Good morning, 0:05:07.560 --> 0:05:10.520 Ready Town, Good morning, Karen Berkshire. Hathaway had already built 0:05:10.600 --> 0:05:14.120 up a roughly fourteen point six percent holding of Occidental 0:05:14.120 --> 0:05:17.800 Petroleum's common stock, and now Warren Buffett is snapping up 0:05:17.839 --> 0:05:20.760 about five point nine million more shares of the oil giant. 0:05:21.200 --> 0:05:23.760 Filing shows the shares were bought this week at prices 0:05:23.880 --> 0:05:26.440 ranging from about fifty six to fifty eight dollars of peace, 0:05:26.800 --> 0:05:29.920 and it's trading just above sixty one this morning. Now, 0:05:29.960 --> 0:05:32.240 Occidental was the best performing stock in the S and 0:05:32.279 --> 0:05:34.680 P five hundred during the first quarter, and it's seen 0:05:34.760 --> 0:05:38.800 it shares benefit from Buffett's purchases and higher oil prices 0:05:38.920 --> 0:05:42.000 driven by the war in Ukraine. Live in New York. 0:05:42.040 --> 0:05:44.320 I'm ready to Young Bloomberg daybreak. All right, we need 0:05:44.360 --> 0:05:46.039 to thanks. Let's turn to what's happening on the ground 0:05:46.080 --> 0:05:49.240 in Ukraine now. Civilian evacuations continue out of the war 0:05:49.360 --> 0:05:55.120 ravage city of mary Upoul. In his latest video, address, 0:05:55.120 --> 0:05:58.159 President Vladimir Zlenski says three hundred forty four people have 0:05:58.200 --> 0:06:01.039 gotten out, even as heavy fighting continues at a steel 0:06:01.120 --> 0:06:04.080 plant in the city. The Pentagon says Russia is getting 0:06:04.160 --> 0:06:07.719 bogged down in eastern and southern Ukraine, and Swedens feign 0:06:07.760 --> 0:06:10.760 Minister met with Secretary of State Anthony Blincoln. She says 0:06:10.839 --> 0:06:14.279 the US is offering security assurances to Sweden and Finland 0:06:14.520 --> 0:06:17.680 as they apply to join NATO. On the other big 0:06:17.680 --> 0:06:21.159 political story we continue to follow, Nathan is abortion rights 0:06:21.200 --> 0:06:24.400 and the head of a CDC, Dr Rochelle Wilenski, is 0:06:24.440 --> 0:06:26.960 weighing in. She warn't a more deaths if the leaked 0:06:27.000 --> 0:06:29.520 Supreme Court ruling on Roe v. Wade to stands, and 0:06:29.520 --> 0:06:33.159 Bloomberg said Baxter has more. Dr Wilenski says she fears 0:06:33.160 --> 0:06:35.680 that there could be an atmosphere where there's much less 0:06:35.680 --> 0:06:39.360 medical supervision for people taking things into their own hands, 0:06:39.720 --> 0:06:42.719 and she says it will lead to unequal access to 0:06:42.800 --> 0:06:45.599 the procedure because people with less funds will not be 0:06:45.720 --> 0:06:48.720 able to cross state lines. Tied to that, abortion rights 0:06:48.720 --> 0:06:52.240 groups took over twelve million dollars over the twenty four 0:06:52.360 --> 0:06:55.279 hours following the leak of the initial Roe v. Wade 0:06:55.320 --> 0:06:58.920 decision draft and Planned Parenthood says it saw a six 0:06:59.000 --> 0:07:02.960 hundred fifty percent increase in online actions. In San Francisco, 0:07:03.040 --> 0:07:06.679 I'm at Baxter Bloomberg Daybreak, Okay and thanks. SMP futures 0:07:06.680 --> 0:07:10.040 are lower by thirty points after yesterday's rallied OW futures 0:07:10.080 --> 0:07:12.840 down a hundred sixty seven. NASDAC futures on the decline 0:07:13.120 --> 0:07:16.120 by a hundred nineteen points. Stay straight ahead your latest 0:07:16.200 --> 0:07:19.160 local headlines in the check of sports. This is Bloomberg 0:07:23.120 --> 0:07:25.320 past out five oh seven on Wall Street where fifty 0:07:25.320 --> 0:07:27.880 eight degrees in Central Park got an accident in Nassau 0:07:28.000 --> 0:07:31.440 County Old Country roads closed by meadow Brook Parkway. Details 0:07:31.480 --> 0:07:33.800 coming up in traffic. First, Michael Bars here with more 0:07:33.840 --> 0:07:35.680 on what's going on in New York and around the world. 0:07:35.680 --> 0:07:38.160 Go morny Michael, Good morning Nathan. A majority of New 0:07:38.240 --> 0:07:42.120 Yorkers say they disapprove of Mayor Eric adams handling of 0:07:42.200 --> 0:07:45.400 crime in the Five Boroughs, a reversal from three months ago. 0:07:45.880 --> 0:07:49.120 According to a new Quinnipiac University poll, only thirty seven 0:07:49.160 --> 0:07:52.600 percent approve of Adam's handling of crime. Well fifty four 0:07:52.720 --> 0:07:57.720 percent disapprove. In February, forty nine percent approved of Adam's 0:07:57.800 --> 0:08:01.000 performance on crime. The news come as two men were 0:08:01.040 --> 0:08:04.680 shot and killed in midtown Manhattan overnight. Police was searching 0:08:04.720 --> 0:08:07.520 for three suspects for the shooting at thirty seven and 0:08:07.600 --> 0:08:11.120 ninth Avenue. Meanwhile, Mayor Adams is urging New Yorkers to 0:08:11.200 --> 0:08:15.480 trade the pajamas for lunch near their workplaces. Adams says 0:08:15.680 --> 0:08:19.559 that's the way metropolitan economy is functioned properly. He spoke 0:08:19.640 --> 0:08:22.280 during a panel discussion at the Milk and Institute Global 0:08:22.320 --> 0:08:26.360 Conference in Beverly Hills, California. State Department spokesman Dead Price 0:08:26.400 --> 0:08:30.640 as Secretary of State Antony Blanket is quarantining. Secretary Blinken 0:08:31.120 --> 0:08:34.800 has tested positive for COVID. The good news is that 0:08:34.840 --> 0:08:39.760 he is fully vaccinated, he is boosted. He is experiencing 0:08:39.960 --> 0:08:44.000 only mild symptoms. Spokesman that Price says Blincoln will work 0:08:44.080 --> 0:08:46.680 from home in the coming days. Blincoln had the postpone 0:08:46.720 --> 0:08:50.240 a key China policy speech that had been scheduled for today. 0:08:50.559 --> 0:08:54.319 He attended the White House Correspondence Association dinner on Saturday. 0:08:54.520 --> 0:08:57.440 No word yet on who leaked the Supreme Court draft 0:08:57.480 --> 0:09:01.360 opinion on abortion Rights Chief Justice John Roberts has called 0:09:01.400 --> 0:09:05.679 for an internal investigation. Meanwhile, President Biden is not mincing 0:09:05.679 --> 0:09:09.120 words about a draft document with the majority voting to 0:09:09.200 --> 0:09:12.400 overturn Roe v. Wade. What are the next things that 0:09:12.440 --> 0:09:15.720 are going to be attacked? Because this MAGA crowd is 0:09:15.880 --> 0:09:20.440 really the most extreme political organization that's existed in American history, 0:09:21.520 --> 0:09:24.920 in recent American history. The President's spoke to reporters at 0:09:24.960 --> 0:09:27.880 an events on the economy and the deficit. We're learning 0:09:27.920 --> 0:09:30.679 Donald Trump Jr. Was interviewed as part of a House 0:09:30.679 --> 0:09:34.160 Select committee's investigation of last year's ryan at the US Capitol. 0:09:34.679 --> 0:09:38.640 He's the latest member of former President Trump's family to 0:09:38.679 --> 0:09:41.920 be questioned. Global News twenty four hours a day on 0:09:42.080 --> 0:09:45.080 air and on Bloomberg Quick Take, powered by more than 0:09:45.160 --> 0:09:47.560 twenty seven hundred journalist and analysts more than a hundred 0:09:47.600 --> 0:09:51.720 twenty countries. Michael barn This is Bloomberg. Okay, Michael, thanks 0:09:56.320 --> 0:09:58.400 five o nine on Wall Street. Time for the Bloomberg 0:09:58.480 --> 0:10:01.440 Sports Update. Good morning, Johnstone, The morning, Nathan. The Yankees 0:10:01.480 --> 0:10:04.400 first loss in April twenty one in Toronto. They got 0:10:04.400 --> 0:10:06.680 an early home run from Joey Gallo. Nothing after that 0:10:06.760 --> 0:10:09.199 in the eleven game winning streak ended two to one. 0:10:09.440 --> 0:10:11.839 Esther Cortes gave him Matt Chapman home run, took his 0:10:11.920 --> 0:10:15.480 first loss. Michael King and Play Holmes followed Cortez and 0:10:15.520 --> 0:10:17.720 through four hit listenings of at least both those guys 0:10:17.720 --> 0:10:20.360 have the r A s under one day off today. 0:10:20.400 --> 0:10:23.440 Yankspect come tomorrow play Texas Mets. Tonight in Philadelphia. They 0:10:23.440 --> 0:10:25.880 lost to Atlanta nine to two, a scoreless game going 0:10:25.920 --> 0:10:29.000 to the sixth inning when the Braves erupted for seven runs. 0:10:29.000 --> 0:10:30.880 Tyler McGill at his first start since he got the 0:10:30.880 --> 0:10:32.960 win and the Mets no hitter suffered his first loss. 0:10:33.040 --> 0:10:35.760 They split the four game series, the first series this 0:10:35.920 --> 0:10:38.680 season that the Mets have failed to win. NBA Playoffs 0:10:38.720 --> 0:10:41.400 Miami and Phoenix, of the top seeds, they both wanted home. 0:10:41.440 --> 0:10:44.000 They both need their series two zip Stanley Cup Playoffs 0:10:44.040 --> 0:10:46.760 three series were now tied to one after wins by 0:10:46.800 --> 0:10:50.600 Tampa Bay, Minnesota and Edmonton. Carolina again beat Boston, now 0:10:50.640 --> 0:10:53.280 up to nothing. The Hurricanes have outscored the Bruins in 0:10:53.320 --> 0:10:56.800 their five games this season, six to four. Two nights 0:10:56.840 --> 0:10:59.480 after the first triple overtime game played at Madison Square, 0:10:59.480 --> 0:11:02.560 Garden in fifty one year's Rangers and Penguins will be 0:11:02.600 --> 0:11:04.720 back at it tonight for Game two. NGOs coach Gerard 0:11:04.760 --> 0:11:09.440 Gallant asked about losing a game one heartbreaker would be 0:11:09.520 --> 0:11:14.240 heard we're playing Colorado, who's the best game in the league, 0:11:14.240 --> 0:11:16.840 and you lose five nothing. But games like that where 0:11:17.160 --> 0:11:18.559 you know you're saying to your team, how are we 0:11:18.559 --> 0:11:20.360 going to get back from this? We play that, we're 0:11:20.400 --> 0:11:22.920 playing a very good team who I think anybody can 0:11:22.960 --> 0:11:24.959 win this series. Of better team's gonna win this series 0:11:25.000 --> 0:11:27.000 and it's gonna be a battle. So you know what, 0:11:27.160 --> 0:11:28.920 it's one game to get over it and you move 0:11:29.000 --> 0:11:31.600 on up. Here's the Pittsburgh goalie tonight will be Louis Domingue, 0:11:31.679 --> 0:11:33.480 who has never started a playoff game before he came 0:11:33.480 --> 0:11:35.400 off the bench the other night when the starter Casey 0:11:35.520 --> 0:11:39.120 Smith Johnson. Actually we're bloom Broog sports name, Okay john 0:11:39.160 --> 0:11:42.400 Thanks for looking at SMP futures this morning after the 0:11:42.679 --> 0:11:45.679 fed fueld rally. Bit of pull back this morning, with 0:11:45.840 --> 0:11:48.719 SMP futures now down twenty seven points down, futures down 0:11:48.720 --> 0:11:52.480 a hundred fifty four nastack futures higher by nineties seven points, 0:11:52.600 --> 0:11:55.480 but European stocks continue to surge with the Bank of 0:11:55.640 --> 0:11:59.679 England getting ready for a bank decision and less than 0:11:59.760 --> 0:12:03.360 two hours. Stay with us, you're listening to Bloomberg Daybreak 0:12:07.320 --> 0:12:09.880 Bloomberg eleven three oh Weather partly mostly sunny today with 0:12:09.960 --> 0:12:12.880 highs in the low seventies, Scattered showers possible Tomorrow with 0:12:13.040 --> 0:12:15.319 highs and below sixties. Will be in the mid fifties, 0:12:15.480 --> 0:12:23.760 with rain ending Saturday afternoon. Currently, markets headlines and breaking 0:12:23.800 --> 0:12:26.680 news twenty four hours a day at Bloomberg dot com. 0:12:26.800 --> 0:12:31.040 The Bloomberg Business Outland at Bloomberg Quicktape is a Bloomberg 0:12:31.120 --> 0:12:40.680 Business Flash and I'm Karen Moscow. And US stock index 0:12:40.720 --> 0:12:45.240 futures are lower this morning at European stocks are climbing 0:12:45.320 --> 0:12:48.160 this emit about of investor relief after the Federal Reserve 0:12:48.280 --> 0:12:51.960 rased interest rates has expected to tackle high inflation, encountering 0:12:52.040 --> 0:12:55.040 fears of super sized hikes. But again, futures this morning 0:12:55.080 --> 0:12:58.400 are moving lower. SMP futures down about twenty six points 0:12:58.440 --> 0:13:00.720 and DOWN futures down a hundred forties even and NASDAC 0:13:00.760 --> 0:13:03.959 features down at ninety three. The decks in Germany is 0:13:04.040 --> 0:13:06.160 up one and a half percent. The ten year treasury 0:13:06.200 --> 0:13:08.600 down five thirty seconds, held two point nine five percent 0:13:09.000 --> 0:13:11.400 yield on the two year two point six seven percent. 0:13:11.840 --> 0:13:14.079 Nine X screwed oil, It's little change in a hundred 0:13:14.120 --> 0:13:16.720 seven dollars seventy eight cents of barrel comex gold up 0:13:16.760 --> 0:13:19.200 one point four percent of twenty six dollars thirty cents 0:13:19.440 --> 0:13:22.800 at eight ten announced. The Euro one point oh five 0:13:22.880 --> 0:13:26.040 nine eight against the dollar, British pound one point seven 0:13:26.480 --> 0:13:28.880 and the yet is at one nine point seven one. 0:13:29.120 --> 0:13:32.600 Checking bitcoin this morning, it's moving lower, down about seven 0:13:32.679 --> 0:13:35.560 tenths percent at thirty nine thousand, five hundred fifty dollars 0:13:35.840 --> 0:13:38.280 and as a Bloomberg business flash. Now here's Michael Barr 0:13:38.400 --> 0:13:40.520 with more on what's going on around the world. Muncle, 0:13:40.559 --> 0:13:44.199 Good morning, Good morning Karen. Ukrainian forces say they repelled 0:13:44.320 --> 0:13:48.280 Russian attacks in the east and recaptured some territory, even 0:13:48.320 --> 0:13:51.360 as Moscow moved to obstruct the flow of Western weapons 0:13:51.400 --> 0:13:55.240 the Ukraine by bombarding rail stations and other supply line 0:13:55.280 --> 0:13:59.079 targets across the country. Heavy fighting also raged at the 0:13:59.160 --> 0:14:02.679 steel mill in Merry Yuple that represented the last stronghold 0:14:02.760 --> 0:14:06.920 of Ukrainian resistance in the ruined Southern Port City. In baseball, 0:14:07.000 --> 0:14:09.520 the Yankees eleven game winning street came to an end. 0:14:09.760 --> 0:14:11.920 The pin Strives lost to the Blue Jays too one. 0:14:12.320 --> 0:14:15.439 The Mets lost along with the Red Sox, Nationals, A's, 0:14:15.559 --> 0:14:19.200 and Giants. The Orioles won. In the NHL Playoff, the 0:14:19.320 --> 0:14:22.120 Rangers play game two of their series against the Penguins. 0:14:22.360 --> 0:14:25.640 New York Is coming off a Game one triple overtime loss. 0:14:25.840 --> 0:14:28.720 The Bruins lost to the Hurricanes five to Carolina now 0:14:28.840 --> 0:14:32.920 leads the series two games to ZIP. Global News twenty 0:14:32.960 --> 0:14:35.920 four hours a day on air and on Bloomberg Quick Tank, 0:14:36.160 --> 0:14:39.120 powered by more than twenty seven hundred journalists and analysts 0:14:39.200 --> 0:14:42.720 more than a hundred twenty countries. Michael barn this is Bloomberg. 0:14:43.000 --> 0:14:46.120 Nathan helped that Rangers goalie is arrested. Thank you, Michael. 0:14:46.200 --> 0:14:48.280 It is coming up to five twenty on Wall Street 0:14:48.320 --> 0:14:51.000 Live from the Bloomberg Interactive Broker Studios. This is a 0:14:51.000 --> 0:14:54.360 Bloomberg daybreak. No rest for the markets after digesting the 0:14:54.440 --> 0:14:59.200 feds fifty basis point move and plans for more. Let's 0:14:59.240 --> 0:15:02.200 bring in Jennifer Lee, senior economists at Demo Capital Markets. 0:15:02.240 --> 0:15:06.040 As we continue to get reaction to the FED decision. Jennifer, 0:15:06.160 --> 0:15:10.160 good morning. The Fed delivered what the market was looking for, 0:15:10.520 --> 0:15:16.840 but will multiple fifty basis points be what inflation needs? Um? 0:15:16.920 --> 0:15:20.120 Good morning. I think you know, I think what he said, 0:15:20.160 --> 0:15:22.880 which was, you know, fifty basis points on the table 0:15:23.400 --> 0:15:26.440 over the next couple of meetings. UM. My favorite word 0:15:26.480 --> 0:15:29.600 is this reasonable. Um. I can't see a semi five 0:15:29.600 --> 0:15:31.480 basis point breed hike right now. I don't think I 0:15:31.480 --> 0:15:35.000 ever took one seriously as definitely not for yesterday. And 0:15:35.040 --> 0:15:36.920 if I may, if I may, by the way, just 0:15:37.040 --> 0:15:41.680 tell you what my conspiracy theorists is. Yesterday I was thinking, well, 0:15:41.720 --> 0:15:44.680 first I thought, oh, unanimous, even Mr James, let's not 0:15:44.760 --> 0:15:46.640 rule out of semi five basis point right hike because 0:15:46.640 --> 0:15:48.600 it's not my base case at this point of the board. 0:15:49.200 --> 0:15:51.480 So the conspiracy theoristsm ME was thinking, you know, did 0:15:51.560 --> 0:15:54.160 they parade them out recently over the last week and 0:15:54.640 --> 0:15:56.720 sort of planted the idea of semi five basis points 0:15:56.760 --> 0:15:58.400 into the market's head and then go ahead and only 0:15:58.440 --> 0:16:00.320 and I say only using my air cole it's here 0:16:00.920 --> 0:16:04.240 only raised fifty basis points and sort of beating expectations 0:16:04.280 --> 0:16:06.280 and thus sparking the rally when you saw on the 0:16:06.280 --> 0:16:08.720 stop markets. So that's what I was thinking about. I 0:16:08.720 --> 0:16:11.560 think fifty basis points over the next couple of meetings UM. 0:16:11.640 --> 0:16:15.320 I think at you know, UM, at a minimum, what's 0:16:15.320 --> 0:16:18.640 it gonna do for growth to have front loaded hikes 0:16:18.720 --> 0:16:23.200 like this? It is going to have it already is 0:16:23.280 --> 0:16:26.280 starting to have that UM wanted effect that aimed that 0:16:26.440 --> 0:16:29.440 that goal, which is to curb demand. You know, he's 0:16:29.440 --> 0:16:33.720 already said in in in previous UM Press conferences and 0:16:33.960 --> 0:16:37.000 interviews that you know, raising rates is not going to 0:16:37.160 --> 0:16:41.280 make UM supply chains clear up, it won't make h 0:16:41.360 --> 0:16:44.320 you know, widgets being produced any faster or being shipped 0:16:44.320 --> 0:16:47.400 across the sea even faster, but it will be able 0:16:47.480 --> 0:16:50.960 to cool demand down enough to ease the pressure on 0:16:51.000 --> 0:16:53.280 supply chain. So I think that's what the that that 0:16:53.400 --> 0:16:58.880 intended effect will be. Chairman Powell said that basis points 0:16:58.920 --> 0:17:01.640 is something they're not act of Lee considering. Just to 0:17:01.680 --> 0:17:03.560 bring it back to that, do we need to pars 0:17:03.760 --> 0:17:09.359 what actively means? I think he is not um UM ignored. 0:17:09.400 --> 0:17:11.840 He's he's keeping all of his options open. I think 0:17:11.960 --> 0:17:15.120 every single central maker out there is these days, they're 0:17:15.119 --> 0:17:16.840 gonna have to because you know, no one knows what, 0:17:16.920 --> 0:17:19.560 you know, what lies around the corner, especially with you know, 0:17:19.640 --> 0:17:22.800 inflation is still remaining very very high. Um, you know 0:17:23.320 --> 0:17:27.520 it's um supply chains again, no signs of of easing 0:17:28.280 --> 0:17:30.760 meaningfully anytime soon. He's already brought up the fact that, 0:17:30.840 --> 0:17:33.800 you know, the Ukraine war and the China lockdowns are 0:17:33.840 --> 0:17:37.440 going to add to that inflation um pressure. And by 0:17:37.680 --> 0:17:41.520 using those two um um factors, UM, I think that 0:17:41.640 --> 0:17:44.440 sort of head to suspectimy basically that it is possible. 0:17:45.040 --> 0:17:47.840 Wouldn't read it off but or so I wouldn't completely 0:17:47.840 --> 0:17:50.440 ignore it, but um, you know, it's it's something that's 0:17:50.920 --> 0:17:52.399 not on the radar, but it could be, you know, 0:17:52.480 --> 0:17:54.760 beeping around on the background. Is there some debate for 0:17:54.840 --> 0:17:58.439 you about whether FED policy is part of what's feeding 0:17:58.560 --> 0:18:01.479 into the inflationary pressure? Is besides supply chains, the war 0:18:01.560 --> 0:18:06.120 in Ukraine and other exogenous factors, Is FED policy itself 0:18:06.280 --> 0:18:10.240 part of what's happening here? That's a good question. I think, 0:18:10.560 --> 0:18:13.119 you know, I think it probably was, just given the 0:18:13.200 --> 0:18:16.720 fact that they took a little while longer to move. 0:18:16.840 --> 0:18:20.160 I'll put it up politely to raise rates by continuing 0:18:20.280 --> 0:18:22.840 last year to call it transitory, and you know, and 0:18:22.920 --> 0:18:25.000 he's admitted, you know, um, and I give him kudos 0:18:25.040 --> 0:18:26.960 for that. He's admitted that, you know, if if we 0:18:27.080 --> 0:18:29.399 knew now, or we knew then what we knew now, 0:18:30.160 --> 0:18:31.800 you know, they would have gone a lot earlier. So 0:18:31.880 --> 0:18:35.480 I think that probably contributed somewhat to this higher rate 0:18:35.520 --> 0:18:38.600 of inflation. So now they're working to sort of you know, 0:18:38.760 --> 0:18:40.639 rate that wrong or make up for lost time, and 0:18:41.200 --> 0:18:43.800 and sort of set up for more aggressive moves, you know, 0:18:43.960 --> 0:18:46.280 like the two at least the two fifty basis point 0:18:46.320 --> 0:18:49.280 moves in the next couple of meetings. About thirty seconds 0:18:49.400 --> 0:18:51.840 left here. What's a tighter FED going to mean for 0:18:51.920 --> 0:18:54.240 the job market? We have, of course the April jobs 0:18:54.240 --> 0:18:56.840 report coming out tomorrow. Does it have any impact the 0:18:57.160 --> 0:18:59.680 April report on what the FED does from here? I 0:18:59.760 --> 0:19:02.960 think is already started starting to we are we're looking 0:19:03.000 --> 0:19:06.359 forward about three and eighty thousand for April, possibly if 0:19:06.400 --> 0:19:09.000 some down fliver has just given from what we saw. Um. 0:19:09.160 --> 0:19:11.040 ADP is always kind of wonky, but you know, even 0:19:11.119 --> 0:19:14.320 the other ones, like the the base. So I think, 0:19:14.640 --> 0:19:16.040 you know, I've been saying this for months now, all 0:19:16.080 --> 0:19:19.399 this strong demand for jobs. It's just not sustainable. You know, 0:19:19.480 --> 0:19:21.520 he was talking about nearly two jobs for every unemployed 0:19:21.560 --> 0:19:25.160 person yesterday. But I think as the economy slows, demand 0:19:25.280 --> 0:19:26.840 is going to cool, which is again the point of 0:19:26.880 --> 0:19:29.840 tighter monetary policy, You're going to start seeing that pullback 0:19:29.880 --> 0:19:31.800 in job demand. So I hope that anyone who's out 0:19:31.840 --> 0:19:35.440 in the sidelines, you know, um and have multiple job offers, 0:19:35.480 --> 0:19:36.719 you know, I think they should. They've got to get 0:19:36.720 --> 0:19:38.680 back into that game. So great to have you with 0:19:38.760 --> 0:19:41.240 us this morning, Jennifer, Thanks so much. Jennifer Lee, senior 0:19:41.280 --> 0:19:44.919 economists at BMO Capital Markets. With reaction after the feds 0:19:45.240 --> 0:19:49.520 fifty basis point increase keeping seventy five off the table 0:19:49.640 --> 0:19:52.480 sparked a rally. Now futures are pulling back. Son. We 0:19:52.560 --> 0:19:55.959 have SMP futures down thirty points down, futures down three 0:19:56.040 --> 0:19:59.760 NASTACK futures are lower by a hundred eight points. You're 0:20:00.040 --> 0:20:09.280 sning to Bloomberg daybreak, Bloomberg eleven three oh weather. Sunshine 0:20:09.280 --> 0:20:12.600 today with him. The low seventies, Scattered showers return tomorrow, 0:20:12.720 --> 0:20:15.479 low sixties for highs. The rain of end Saturday afternoon. 0:20:15.480 --> 0:20:17.040 It'll be breezy and cool with a high in your 0:20:17.080 --> 0:20:25.560 fifty five right now, broadcasting live from the Bloomberg Interactive 0:20:25.600 --> 0:20:29.480 Broker Studio in New York, Bloomberg E Living Freedom to Washington, 0:20:29.560 --> 0:20:33.400 d C, Bloomberg On to Boston, Bloomberg one O six 0:20:33.480 --> 0:20:36.639 one does San Francisco, Bloomberg nine sixty to the Country, 0:20:36.800 --> 0:20:39.359 Sirius XM Chad A one nine team, and around the 0:20:39.440 --> 0:20:42.800 globe the Bloomberg Business app and Bloomberg Radio dot Com. 0:20:43.280 --> 0:20:52.280 This is Bloomberg Daybreak. It's five thirty on Wall Street. 0:20:52.320 --> 0:20:55.480 Good morning. I'm Nathan Hagar and I'm Karen Moscower. Just 0:20:55.600 --> 0:20:57.920 about four hours away from the open of US trading. 0:20:58.000 --> 0:20:59.320 Let's get you up to date on the news. You 0:20:59.400 --> 0:21:01.240 need to know what this hour we're seeing as like 0:21:01.400 --> 0:21:05.040 pullback in futures this morning. After yesterday's rally that followed 0:21:05.080 --> 0:21:08.399 a press conference from Federal Reserve Chair J Powell, Powell 0:21:08.440 --> 0:21:11.560 indicated a seventy five point basis hike was not being 0:21:11.640 --> 0:21:14.800 considered for meetings in June and said he's committed to 0:21:14.840 --> 0:21:19.080 bringing down inflation. Inflation is much too high, and we 0:21:19.200 --> 0:21:22.800 understand the hardship it is causing, and we're moving expeditiously 0:21:22.920 --> 0:21:25.920 to bring it back down. We have both the tools 0:21:26.000 --> 0:21:27.840 we need and the resolve that it will take to 0:21:27.960 --> 0:21:31.200 restore price stability on behalf of American families and businesses 0:21:31.640 --> 0:21:34.120 and Chair J. Powell's comments came as the FED hiked 0:21:34.200 --> 0:21:37.400 interest rates fifty basis points and reaction is still coming 0:21:37.440 --> 0:21:39.680 in from many quarters. Karen more on that in this 0:21:39.880 --> 0:21:43.520 live report from Bloomberg's John Tucker. John Nathan Former Philadelphia 0:21:43.560 --> 0:21:46.639 Fed President Charles Plosser said Fed Chare Powell yesterday was 0:21:46.760 --> 0:21:50.600