WEBVTT - Bloomberg Daybreak: May 11, 2022 - Hour 1 (Radio) 0:00:03.120 --> 0:00:06.400 Live from the Bloomberg Interacted Burger Studios. This is Bloomberg 0:00:06.519 --> 0:00:10.200 Daybreak for Wednesday, May eleven two. Coming up this hour, 0:00:10.480 --> 0:00:14.240 investors brace for this morning's reading on inflation. President Biden 0:00:14.240 --> 0:00:17.639 plans to announce new measures to combat rising food costs. 0:00:17.680 --> 0:00:20.079 Lisa Cook will be the first black woman on the 0:00:20.120 --> 0:00:22.680 Fed's Board of Governors, and Elon Musk says he would 0:00:22.720 --> 0:00:26.360 reverse Twitter's van of Donald Trump New York City, boost 0:00:26.400 --> 0:00:30.320 police presence on subways as assaults increase. Plus the Senate 0:00:30.400 --> 0:00:33.520 votes today on an abortion rights bill. I'm Michael Blomer. 0:00:33.640 --> 0:00:37.159 More Ahead, I'm John stash Ouron sports, Aaron Judge, the 0:00:37.280 --> 0:00:39.640 ninth Inning Hero and a thrilling Yankee win over the 0:00:39.640 --> 0:00:45.280 Blue Jays the Mets one in Washington. That's all Train 0:00:45.360 --> 0:00:49.360 ahead on Bloomberg Daybreak on Bloomberg eleven three on New York, 0:00:49.520 --> 0:00:54.200 Bloomberg nine one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.480 --> 0:00:58.640 Bloomberg nine sixties and Francisco Sirius x M one nine 0:00:58.680 --> 0:01:01.600 team and around the world. Old on Bloomberg Radio dot 0:01:01.600 --> 0:01:08.240 Com and via the Bloomberg Business Up. Good morning. I'm 0:01:08.319 --> 0:01:12.240 Nathan Hagar, and I'm Karen Moscow, and futures are higher 0:01:12.280 --> 0:01:14.200 this morning. We're coming up to five oh one on 0:01:14.200 --> 0:01:16.400 Wall Street, and we check the markets every fifteen minutes 0:01:16.440 --> 0:01:19.160 throughout the trading day. On Bloomberg, Guess and Future is 0:01:19.240 --> 0:01:22.000 up forty four points down futures of two hundred ninety 0:01:22.080 --> 0:01:25.360 seven and NASDAC futures up one hundred fifty five. The 0:01:25.400 --> 0:01:28.440 decks in Germany's up nine tenths of uppercent ten year 0:01:28.480 --> 0:01:31.720 treasury up fourteen thirty seconds, held two point nine three percent, 0:01:31.760 --> 0:01:34.160 They yield them a two year two point five eight percent. 0:01:34.600 --> 0:01:36.520 Nine X Screwed oil is up three and a half 0:01:36.520 --> 0:01:38.880 percent of three dollars forty five cents at a hundred 0:01:38.880 --> 0:01:41.800 three dollars, nineteen cents of barrel comics gold up half 0:01:41.840 --> 0:01:44.440 percent or nine dollars ten cents at eighteen fifty ten 0:01:44.440 --> 0:01:47.680 announced and the euro one point oh five seven zero 0:01:47.760 --> 0:01:50.920 against the dollar. Nathan Well, Karen, the countdown is under 0:01:50.960 --> 0:01:54.240 way for the latest reading on inflation. Less than three 0:01:54.240 --> 0:01:56.680 and a half hours from now, the government issues the 0:01:56.720 --> 0:02:00.800 consumer price index for April, with inflation running its fastest 0:02:00.840 --> 0:02:04.160 pace in decades, and Kate's has a preview from our 0:02:04.200 --> 0:02:08.880 Bloomberg newsroom in Washington. In March, the CPI rose eight 0:02:08.919 --> 0:02:12.120 point five percent year over year, the most nineteen eighty 0:02:12.440 --> 0:02:15.120 and yet Bloomberg Economics says the run up probably slowed 0:02:15.160 --> 0:02:18.600 in April, reflecting a drop and seasonally adjusted gasoline prices, 0:02:18.840 --> 0:02:21.040 but the climb down from the forty year high inflation 0:02:21.040 --> 0:02:24.320 will be stubbornly slow. Bloomberg says the inflation rate won't 0:02:24.320 --> 0:02:26.920 dip below seven percent until late in the year, keeping 0:02:26.960 --> 0:02:30.280 the Federal Reserve committed to higher interest rates. In Washington 0:02:30.520 --> 0:02:33.359 and Kate's Bloomberg Daybreak, all right and thank you well. 0:02:33.520 --> 0:02:37.160 That inflation report could have a major impact on Fed policy, 0:02:37.400 --> 0:02:40.240 but for now, Cleveland FED President Loretta Mester says she 0:02:40.320 --> 0:02:43.919 favors steady fifty basis point rate increases. We don't go 0:02:44.040 --> 0:02:47.200 out forever, right, I mean, what I'm gonna do is 0:02:47.280 --> 0:02:49.960 I think fifty the caves were going now seems about 0:02:50.040 --> 0:02:52.680 right to me. We're going to have to assess weather 0:02:52.919 --> 0:02:56.359 inflation is actually moving down, and then we'll be able 0:02:56.400 --> 0:02:58.520 to get more information after we do a couple of 0:02:58.520 --> 0:03:01.960 those to see and Cleveland Fed President Lorrettamester made the 0:03:01.960 --> 0:03:04.960 comments in an interview with Bloomberg's Michael McKee. O Master 0:03:05.040 --> 0:03:06.840 is soon going to have some help in the battle 0:03:06.840 --> 0:03:10.000 against inflation. Karen. The Fed is now welcoming its first 0:03:10.080 --> 0:03:12.400 black woman to the Board of Governors. We get more 0:03:12.440 --> 0:03:16.639 from Bloomberg's Doug Prisoner economist Lisa Cook. One Senate confirmation 0:03:16.680 --> 0:03:21.440 by the narrowest possible margin vote reflects a tie breaking 0:03:21.480 --> 0:03:24.720 appearance by Vice President Kamala Harris. The vote had been 0:03:24.720 --> 0:03:28.359 delayed by virus cases among Democrats. Cook had faced a 0:03:28.480 --> 0:03:32.040 United Gop campaign against her. The top Republican on the 0:03:32.080 --> 0:03:35.840 Senate Banking Committee, Pat Toomey of Pennsylvania, dismissed her record 0:03:35.920 --> 0:03:39.400 as thin on monetary policy, and he charged her withholding 0:03:39.440 --> 0:03:42.920 far left political views that risk politicizing the Central Bank. 0:03:43.280 --> 0:03:45.880 In New York Time, Doug Prisoner Bloomberg day break. All right, Doug, 0:03:45.920 --> 0:03:48.040 thank you at the White House today. New measures are 0:03:48.080 --> 0:03:51.240 coming today to help cut costs, specifically for farmers and 0:03:51.240 --> 0:03:56.000 Bloomberg's and Amy Morris explains from our newsroom in Washington. 0:03:56.360 --> 0:03:59.880 President Biden wants to undercut the rising cost of food. 0:04:00.320 --> 0:04:04.800 Ukraine has twenty million tons of grain in stories and 0:04:04.880 --> 0:04:07.560 silos right now, but trying to figure out how to 0:04:07.600 --> 0:04:09.840 get out of the country into market, which would reduce 0:04:09.960 --> 0:04:14.000 prices around the world. Among the new initiatives double cropping insurance, 0:04:14.040 --> 0:04:16.360 which gives farmers more coverage if they plant more than 0:04:16.400 --> 0:04:19.400 one crop. The US will double its investment in domestic 0:04:19.400 --> 0:04:23.280 fertilizer production to a half billion dollars, and tools used 0:04:23.279 --> 0:04:26.320 by the USDA to reduce the use of fertilizer will 0:04:26.320 --> 0:04:29.279 be extended to more farms. In Washington, I'm anymore as 0:04:29.320 --> 0:04:31.720 Bloomberg Daybreak, All right, Amy, thank you. Let's turn to 0:04:31.800 --> 0:04:35.239 Asia now, where inflation is also in focus. China's factory 0:04:35.240 --> 0:04:38.400 gate prices rose faster than expected in April, and factory 0:04:38.400 --> 0:04:40.640 prices aren't the only ones on the rise, as we 0:04:40.680 --> 0:04:43.719 hear from Bloomberg gave Break Asia anchor Brian Curtis, and 0:04:43.920 --> 0:04:48.520 consumer prices rose again. The CPI accelerated two point one percent, 0:04:48.680 --> 0:04:52.000 faster than a projected one point eight percent gain. The 0:04:52.080 --> 0:04:56.120 COVID lockdowns drove food and fuel costs higher. In the meantime, 0:04:56.160 --> 0:04:59.360 producer prices gained eight percent from a year earlier, compared 0:04:59.400 --> 0:05:03.359 to eight three in March. It two was a little 0:05:03.360 --> 0:05:07.000 hotter than the estimate. Brian Curtis, Bloomberg Day Break, all right, Brian, 0:05:07.040 --> 0:05:09.040 Thank you all back here in the US. Earnings will 0:05:09.080 --> 0:05:11.839 also be in the spotlight when Disney reports this afternoon, 0:05:11.839 --> 0:05:15.040 and we get a preview from Bloomberg's Tom Busby. Although 0:05:15.040 --> 0:05:18.080 the Entertainment Giants theme park division has been firing on 0:05:18.160 --> 0:05:21.720 all cylinders along with most of its media businesses, analysts 0:05:21.800 --> 0:05:24.520 are a little concerned that the just completed second quarter 0:05:24.600 --> 0:05:28.080 maybe the slowest of the year for subscriber growth at 0:05:28.080 --> 0:05:31.840 the Disney Plus TV streaming service. Still forecast call for 0:05:31.880 --> 0:05:35.560 a solid one hundred thirty four point four million subscribers. 0:05:36.120 --> 0:05:38.520 Bloomberg consensus calls were just at earnings per share of 0:05:38.520 --> 0:05:41.720 a dollar eighteen revenues of just over twenty point one 0:05:41.800 --> 0:05:45.760 billion dollars. Tom Busby, Bloomberg Daybreak. All right, Tom, thanks. 0:05:45.839 --> 0:05:47.400 Let's take a look at some other stocks on the 0:05:47.400 --> 0:05:50.520 move this morning following yesterday's earnings. Shares of coin Base 0:05:50.600 --> 0:05:54.000 are down seventeen percent in early training. Revenue at the 0:05:54.040 --> 0:05:57.720 cryptocurrency exchange missed estimates, and coin Base also warned that 0:05:57.800 --> 0:06:00.960 trading volume in the current quarter will be lower. Roadblocks 0:06:01.000 --> 0:06:04.120 shares are down almost one percent. The video game platform 0:06:04.120 --> 0:06:07.040 aimed at preteens and teenagers that surged during the pandemic, 0:06:07.240 --> 0:06:10.800 reported bookings that missed estimates well. Nathan, Twitter is also 0:06:10.920 --> 0:06:14.000 front end center after comments from Elon Musk, the world's 0:06:14.040 --> 0:06:17.360 richest man, says he would reverse former President Donald Trump's 0:06:17.360 --> 0:06:20.839 permanent ban if he takes control of the company. Ning 0:06:21.120 --> 0:06:25.840 Trump from Twitter didn't end Trump voice, it will amplify 0:06:25.920 --> 0:06:29.000 it among the rights and that is why it is 0:06:29.080 --> 0:06:32.560 morally wrung and flat out stupid. Elon Musk says he 0:06:32.600 --> 0:06:36.440 believes Twitter has overstepped policing a user's speech and wants 0:06:36.440 --> 0:06:39.440 to push it toward a more free speech focused approach. 0:06:39.640 --> 0:06:41.520 And finally, Karen, let's fill you in on the latest 0:06:41.560 --> 0:06:43.839 on the war in Ukraine. The fighting is now starting 0:06:43.880 --> 0:06:47.960 to affect physical gas supplies. Ukraine's gas network operator says 0:06:47.960 --> 0:06:50.080 it will stop receiving fuel at one of its main 0:06:50.120 --> 0:06:55.359 metering stations because it can't control the infrastructure in occupied territories. Meantime, 0:06:55.360 --> 0:06:58.400 in Washington, the House has passed more than forty billion 0:06:58.400 --> 0:07:01.480 dollars in emergency aid to rain. The Senate is likely 0:07:01.560 --> 0:07:05.159 to approve the legislation next week. S and P futures 0:07:05.240 --> 0:07:07.560 right now are higher by forty four points. That's again 0:07:07.600 --> 0:07:09.440 at one point one percent down. Future is up three 0:07:09.520 --> 0:07:13.000 to two points. NASAC features up one fifty nine points 0:07:13.040 --> 0:07:15.480 for a gain of one point three percent. Straight ahead 0:07:15.480 --> 0:07:18.040 your latest local headlines in a check of sports. This 0:07:18.320 --> 0:07:25.480 is Bloomberg. That's South five oh seven on Wall Street. 0:07:25.520 --> 0:07:29.160 We've got construction closing the truck lanes of the south 0:07:29.280 --> 0:07:31.920 end of Jersey Turnpike. And you're inter Change fourteen will 0:07:31.920 --> 0:07:33.720 tell you more. In traffic First, Michael bar is here 0:07:33.720 --> 0:07:35.640 with what's going on in New York and around the world. 0:07:35.680 --> 0:07:38.760 Good morning, Michael, Good morning Nathan. The Senate is expected 0:07:38.800 --> 0:07:42.160 to vote on protecting abortion rights due to elite Supreme 0:07:42.200 --> 0:07:45.480 Court opinion suggesting the justices would overturn Roe v. Wade. 0:07:45.760 --> 0:07:48.480 Senate Majority Leader Chuck Schumer is pushing for a vote 0:07:48.480 --> 0:07:51.720 on abortion this afternoon. The vote is almost certain to fail, 0:07:51.760 --> 0:07:54.960 but Schumer aims to put most Senators on the record 0:07:55.000 --> 0:07:58.440 about it. Senate Minority Leader Mitch McConnell the Supreme Court 0:07:58.480 --> 0:08:01.920 if this becomes the decision, as officers said, this is 0:08:02.000 --> 0:08:06.320 ripe for discussion in democratic bodies. We happen to be 0:08:06.360 --> 0:08:09.440 a democratic body. Schumer is proving that by having his 0:08:09.600 --> 0:08:13.840 vote on it. Senator Mitch McConnell. Governor Kathy Local has 0:08:13.880 --> 0:08:16.920 announced that New York will make thirty five million dollars 0:08:16.960 --> 0:08:21.200 available to help abortion providers boost services and security. The 0:08:21.240 --> 0:08:24.040 governor said the state has to get ready for potential 0:08:24.040 --> 0:08:26.640 influx of all the state patients if the U. S. 0:08:26.640 --> 0:08:30.560 Supreme Courts overturns a row In Connecticut, Governor Ed Lamont 0:08:30.600 --> 0:08:33.239 signed a new abortion bill into law that he says 0:08:33.240 --> 0:08:37.240 expands abortion access. When you're ready to be pregnant, whether 0:08:37.240 --> 0:08:40.840 you're ready to have that baby, we're doing everything we 0:08:41.000 --> 0:08:44.479 can to support you. That means we are providing prenatal 0:08:44.559 --> 0:08:48.720 support and support after birth. Governor Lamont called it a 0:08:48.720 --> 0:08:52.319 fundamental freedom issue that is being challenged by the Supreme Court. 0:08:52.679 --> 0:08:55.679 An NYPD officer was released from the hospital after he 0:08:55.760 --> 0:08:58.360 was shot last night in the Claremont section of the Bronx. 0:08:58.760 --> 0:09:02.400 The suspected gunman is killed. The officer received applause from 0:09:02.400 --> 0:09:05.719 fellow officers when he left the hospital. Overnight, New York 0:09:05.800 --> 0:09:09.360 City subway writers will see more uniform police officers on 0:09:09.480 --> 0:09:13.200 the trains overnight and for longer stretches of time. The 0:09:13.280 --> 0:09:16.560 NYPD is pushing back against a crime spike in the 0:09:16.600 --> 0:09:21.200 transit system, a big victory for Donald Trump backed candidate 0:09:21.320 --> 0:09:25.240 as the mid term season heats up. Representative Alex Mooney 0:09:25.280 --> 0:09:30.080 defeated Representative David McKinley in Tuesday's GOP primary for West 0:09:30.160 --> 0:09:34.480 Virginia's second congressional district. Mooney spoke to his supporters in Charleston, 0:09:34.559 --> 0:09:37.720 donald Trump loves West Virginia, and West Virginia loves Donald 0:09:37.760 --> 0:09:44.240 TRUMPA one tot percent global news twenty four hours a 0:09:44.320 --> 0:09:47.199 day on air and on Bloomberg Quicktake, powered by more 0:09:47.240 --> 0:09:49.640 than twenty seven hundred journalists and analysts more than a 0:09:49.679 --> 0:09:53.600 hundred twenty countries. Michael barn this is Bloomberg. Nathan Okay, Michael, 0:09:53.640 --> 0:10:00.640 thanks five o nine on Wall Streets for the Bloomberg 0:10:00.679 --> 0:10:03.280 Sports Update and Morning John Sessharre give morning, Nathan Hi. 0:10:03.440 --> 0:10:05.800 Drama in the Bronx, Yankees had to come from behind 0:10:05.880 --> 0:10:08.240 twice trail the Blue Jays three uphing in the sixth 0:10:08.360 --> 0:10:10.839 in John Carlos Standard tied the game with a three 0:10:10.920 --> 0:10:13.360 run homer down the line in right field. Toronto went 0:10:13.360 --> 0:10:16.520 back ahead five to three. Yanks had two on one 0:10:16.559 --> 0:10:19.719 out bottom of the ninth. Here's the one. She was 0:10:19.960 --> 0:10:22.840 out hill there to deep left field, that goes high. 0:10:22.920 --> 0:10:26.960 That is fun. That is gone. It's a game winning 0:10:27.160 --> 0:10:31.280 wook up three run home run by Aaron Judge. He 0:10:31.480 --> 0:10:35.240 hitted a mile and a half in the left field seats, 0:10:35.240 --> 0:10:39.920 so Judge a Judgeon bloss f an. Yanks won six five, 0:10:39.960 --> 0:10:41.960 So they go to twenty one and eight. On the 0:10:42.000 --> 0:10:44.480 same night, the Mets improved in one and ten. They 0:10:44.559 --> 0:10:47.120 trailed six, then in Washington scored three times, beat the 0:10:47.160 --> 0:10:50.360 National sport to the Angels with their twenty one winning 0:10:50.400 --> 0:10:52.520 It was a no hitter thrown by twenty two year 0:10:52.559 --> 0:10:55.920 old rookie Read Debtors against Tampa Bay just as eleventh 0:10:55.920 --> 0:10:58.199 career started. His career e r A entering the game 0:10:58.280 --> 0:11:01.240 was over six blowout to the BA. Phoenix beat Dallas 0:11:01.240 --> 0:11:04.600 by thirty. Miami been Philadelphia by thirty five. Both teams 0:11:04.640 --> 0:11:07.079 go up three to Both series has seen the home 0:11:07.120 --> 0:11:09.400 team win every game. NBA Hall of Famer Bob Lanier 0:11:09.480 --> 0:11:11.760 has died at seventy three and eight time All Star 0:11:12.160 --> 0:11:15.320 with the Detroit Pistons. Igor says dark and yesterday named 0:11:15.320 --> 0:11:17.600 a finalist for the Vezna Trophy that goes to the 0:11:17.679 --> 0:11:20.600 NHL's best goalie. He may very well win the award, 0:11:20.640 --> 0:11:23.000 but will he play like a Vesana winner tonight at 0:11:23.000 --> 0:11:25.760 the Garden. Just played three periods in Pittsburgh and gave 0:11:25.840 --> 0:11:28.960 up ten goals. Just darking in the Rangers face elimination, 0:11:29.080 --> 0:11:32.079 trailing the Penguins three to one. Game five wins last 0:11:32.200 --> 0:11:36.400 night for Carolina, Toronto, St. Louis, and Los Angeles. John Stashower, 0:11:36.440 --> 0:11:39.520 Bloomberg Sports, Nathan John stas Shower, thanks for that. SMP 0:11:39.640 --> 0:11:42.559 futures right now are higher by forty six points, a 0:11:42.600 --> 0:11:44.640 gain of one point two percent. Death futures up one 0:11:44.640 --> 0:11:48.160 percent or three to sixteen points. Nasdaq futures leading the 0:11:48.200 --> 0:11:50.439 gains this morning, up a hundred seventy three points for 0:11:50.480 --> 0:11:53.160 a gain of one point four percent. Ten. Your treasury 0:11:53.200 --> 0:11:56.040 is up fifteen thirty seconds, the yield two point nine 0:11:56.080 --> 0:12:00.520 three percent as we await April cp I stay with us. 0:12:00.960 --> 0:12:08.600 You're listening to Bloomberg Day right Bloomer eleven three oh 0:12:08.600 --> 0:12:11.160 other sunny, upper sixties today, sunny with a high year 0:12:11.240 --> 0:12:14.360 seventy tomorrow. Chance for showers on Friday with a high 0:12:14.400 --> 0:12:17.560 year seventy degrees. Right now, clear sky fifty five degrees 0:12:17.600 --> 0:12:24.959 in Central Park. Markets. Headlines and breaking news twenty four 0:12:24.960 --> 0:12:28.199 hours a day at Bloomberg dot Com, the Bloomberg Business Out, 0:12:28.320 --> 0:12:37.680 and at Bloomberg Quick Tape. He's a Bloomberg Business Flash, 0:12:38.320 --> 0:12:41.560 but I'm kerin Moscow. US Knock index futures and European 0:12:41.640 --> 0:12:44.679 shares are advancing as investors away to key inflation or 0:12:44.760 --> 0:12:47.760 port to gauge whether the federal reserves efforts detainment inflation 0:12:47.800 --> 0:12:50.319 in the world's largest economy are working. We checked the 0:12:50.360 --> 0:12:53.280 markets every fifteen minutes throughout the trading day. On Bloomberg 0:12:53.280 --> 0:12:55.800 Guess and P futures up forty three points and Down 0:12:55.800 --> 0:12:58.320 futures up two d eighty eight and Nashdack futures up 0:12:58.400 --> 0:13:02.160 one fifty three. The decks in Germany's up one percent, 0:13:02.240 --> 0:13:05.240 the ten year treasury up seventeen thirty seconds yield two 0:13:05.280 --> 0:13:07.280 point nine two percent, the yield on the two year 0:13:07.320 --> 0:13:10.600 two point five six percent. Nimex screwed oil is up 0:13:10.600 --> 0:13:12.599 three percent of two dollars ninety nine cents at a 0:13:12.679 --> 0:13:15.520 hundred two dollars seventy eight cents of barrel comics gold 0:13:15.559 --> 0:13:17.840 up six tents percent or ten dollars forty cents at 0:13:17.880 --> 0:13:21.240 eighteen fifty one fifty announced. The euro one point oh 0:13:21.280 --> 0:13:23.760 five six eight against the dollar, British pound one point 0:13:23.760 --> 0:13:26.520 to three HQ, the n is at one twenty nine 0:13:26.520 --> 0:13:29.240 point six five, and Bitcoin this morning higher up a 0:13:29.280 --> 0:13:33.319 third of a percent at thirty one thousand, one hundred dollars. 0:13:33.559 --> 0:13:36.000 And again today we're watching for the Consumer Price Index 0:13:36.040 --> 0:13:38.080 at at eight thirty Wall Street Time and Disney as 0:13:38.120 --> 0:13:41.439 among companies scheduled to report earnings today. As a Bloomberg 0:13:41.440 --> 0:13:43.920 Business Flash, now here's Michael Barr with more on what's 0:13:43.960 --> 0:13:46.800 going on around the world. Michael, good morning, Good morning Karen. 0:13:46.840 --> 0:13:49.599 In a rare bipartisan moment, the House has passed a 0:13:49.679 --> 0:13:53.200 nearly forty billion dollar military and you manage during an 0:13:53.200 --> 0:13:56.400 aid package for Ukraine. The money will go to everything 0:13:56.480 --> 0:13:59.960 from weapons to refugee aide to money that will help 0:14:00.080 --> 0:14:04.320 rebuild Ukraine. Senate majority leader Chuck Schumer plans to hold 0:14:04.320 --> 0:14:06.640 a vote on a bill that would write abortion protections 0:14:06.640 --> 0:14:10.000 into federal law. There will likely not be enough support 0:14:10.040 --> 0:14:13.840 to move that legislation forward. In baseball, the Yankees, Red Sox, 0:14:13.880 --> 0:14:16.960 Orioles and Giants one. The Mets beat the Nationals four 0:14:17.000 --> 0:14:20.200 to the a split a double header with the Tigers Angels. 0:14:20.240 --> 0:14:23.760 Rookie read Detmar's pitched the major's second no hitter this season. 0:14:24.120 --> 0:14:27.239 In the NHL Playoffs, the Bruins lost to the Hurricanes 0:14:27.320 --> 0:14:30.120 five one. Boston is now behind in that series three 0:14:30.120 --> 0:14:32.960 games to two. Global News twenty four hours a day 0:14:32.960 --> 0:14:35.680 on air and on Bloomberg Quick Take, powered by more 0:14:35.960 --> 0:14:38.400 than twenty seven hundred journalists and analysts more than a 0:14:38.440 --> 0:14:42.800 hundred twenty countries. Michael barn this is Bloomberg. Nathan alright, Michael. Thanks, 0:14:42.800 --> 0:14:45.280 It's five nineteen on Wall Street Live from the Bloomberg 0:14:45.320 --> 0:14:49.359 Interactive Broker Studios. This is Bloomberg Daybreak and Mark Ostwald 0:14:49.440 --> 0:14:52.080 is with us this morning, chief economist and global strategist 0:14:52.160 --> 0:14:54.880 at a d M I s I in London. As 0:14:54.920 --> 0:14:58.600 we await the April CPI data, we are watching markets 0:14:58.680 --> 0:15:00.800 on the rise this morning, Mark, what do you think 0:15:00.880 --> 0:15:05.040 is driving the sentiment this morning? I think that this 0:15:05.120 --> 0:15:08.000 is really just what looks for me like a corrective 0:15:08.120 --> 0:15:11.400 rally after and fairly sharp sell offs that we've had. 0:15:11.720 --> 0:15:15.280 There are are you when we get into these situations 0:15:15.280 --> 0:15:19.640 with sharp sell offs, there are always bargains to be had. Um, 0:15:19.880 --> 0:15:23.160 it doesn't necessarily mean that the worst is over for 0:15:23.280 --> 0:15:27.160 Wall Street. I sort of think um, particularly on the 0:15:27.160 --> 0:15:30.000 growth side of the economy, which is probably more important 0:15:30.040 --> 0:15:33.600 to some extent than either the FED or the inflation outlook. 0:15:34.200 --> 0:15:37.280 We're probably still looking at the US economy with slightly 0:15:37.360 --> 0:15:41.640 roast tinted glasses, as is the FED. Yes, the labor 0:15:41.680 --> 0:15:45.600 market is very, very tight, but with the sort of 0:15:45.640 --> 0:15:48.240 pressures that are there, and a lot of them not 0:15:48.400 --> 0:15:52.000 likely to resolve themselves in any great hurry, particularly all 0:15:52.040 --> 0:15:54.520 the price pressures that people have got. You we only 0:15:54.520 --> 0:15:56.800 have to look at the corporate earning season to see 0:15:56.800 --> 0:16:00.160 how many people are talking about price pressures and and 0:16:00.280 --> 0:16:05.680 now starting to mention um demand demands at weakness, and 0:16:05.800 --> 0:16:09.080 that really doesn't start surprise me, and that I think 0:16:09.120 --> 0:16:12.480 in the longer run will be key for US equities. 0:16:12.920 --> 0:16:15.280 Of course, in the short run, in the next few hours, 0:16:15.320 --> 0:16:18.080 we are going to get that CPI data for the 0:16:18.120 --> 0:16:22.239 month of April. Are we looking for signs of peak inflation? 0:16:22.400 --> 0:16:26.680 Is that your view? Um? Well, to a certain extent, 0:16:26.760 --> 0:16:30.560 we've got base effects in here now, which should basically 0:16:31.080 --> 0:16:33.680 suggest that we've reached the peak. I think the more 0:16:33.760 --> 0:16:37.720 important thing is not necessarily whether we've reached the peak, 0:16:37.800 --> 0:16:41.160 but how fast are we going to fall. We were 0:16:41.240 --> 0:16:44.040 predicted to fall quite rapidly in the second half of 0:16:44.040 --> 0:16:47.720 the year. I rather think that headline CPI may not 0:16:47.840 --> 0:16:50.600 get much below seven percent by the end of the year. 0:16:50.960 --> 0:16:53.200 And as long as that's the case, we can talk 0:16:53.240 --> 0:16:58.000 about inflation. That the pace of inflation growth as slowing, 0:16:58.600 --> 0:17:01.320 but it doesn't take the pressure, it doesn't take the 0:17:01.360 --> 0:17:05.160 pressure off the FED to basically tighten policy and tighten 0:17:05.240 --> 0:17:08.480 policy quite quickly. M Hey, you know, it's a it's 0:17:08.520 --> 0:17:11.480 a delicate balance here. But the biggest problem of all 0:17:11.960 --> 0:17:15.680 is the loss of productive capacity, which we've not really 0:17:15.720 --> 0:17:18.320 got round to enumerating. The only area which we can 0:17:18.359 --> 0:17:20.800 get a clear side of it is in the US 0:17:21.440 --> 0:17:24.640 well in the global oil refining sector, where we can 0:17:24.680 --> 0:17:27.720 see that huge amounts of productive capacity have been lost 0:17:28.000 --> 0:17:30.560 and that keeps on the pressure on oil products, and 0:17:30.600 --> 0:17:35.119 oil products are basically what they're driving inflation, along with 0:17:35.520 --> 0:17:38.760 other parts of the energy sector, most noticeably natural gas. 0:17:39.200 --> 0:17:42.200 Do those kinds of pressures put more pressure on the 0:17:42.240 --> 0:17:45.320 FED to move even more aggressively on rates? Could we 0:17:45.400 --> 0:17:48.640 be looking at a seventy five basis point move somewhere 0:17:48.680 --> 0:17:52.240 down the line? Um? I don't think, I said well, 0:17:52.720 --> 0:17:56.280 I think the more important point. You know, they've not 0:17:56.400 --> 0:17:59.080 taken it off the table completely, but I think they 0:17:59.080 --> 0:18:01.560 will be very low to do that unless they see 0:18:01.600 --> 0:18:06.960 some very sharp second round effects coming through, particularly in wages, 0:18:07.280 --> 0:18:12.040 UM and in services. That's not ruled out, but it 0:18:12.119 --> 0:18:15.199 would it take that that would be an absolute requirement. 0:18:15.920 --> 0:18:18.879 The more important point is what can the FED do 0:18:18.880 --> 0:18:22.719 do about oil and energy prices? And the answer is 0:18:23.000 --> 0:18:25.120 just the same as all other central banks. They can 0:18:25.119 --> 0:18:28.960 do actually precious little. And this is sort of you know, 0:18:29.080 --> 0:18:33.880 weak coordinated fiscal and legislative and monetary policy wells during 0:18:33.880 --> 0:18:37.760 the pandemic, but we're now sort of seeming to everyone's 0:18:37.760 --> 0:18:41.720 going off in different directions. And it's probably needed now 0:18:42.000 --> 0:18:45.879 more than during the pandemic, because there's a lot here 0:18:46.240 --> 0:18:49.959 which really would be better dealt with by better spending 0:18:49.960 --> 0:18:55.520 on infrastructure, fiscal measures, through support the weakest parts, weaker 0:18:55.560 --> 0:18:57.840 parts of the economy, be that at the corporate or 0:18:58.000 --> 0:19:01.640 personal level UM, and that needs to be a lot 0:19:01.720 --> 0:19:05.280 better coordination on that front. Now, those are some long 0:19:05.520 --> 0:19:10.680 term possibilities that we could talk about for much longer, 0:19:10.720 --> 0:19:13.240 but unfortunately we've run out of time here. But thanks 0:19:13.280 --> 0:19:16.840 so much for these insights this morning, Mark Ostwald, chief 0:19:16.840 --> 0:19:20.439 economist and global strategist at a d m I s I. 0:19:20.680 --> 0:19:23.919 As we await those April CPI numbers do out at 0:19:24.000 --> 0:19:26.679 eight thirty am Wall Street time, we'll have them for 0:19:26.760 --> 0:19:29.680 you live here on Bloomberg Radio, along with the kind 0:19:29.680 --> 0:19:33.280 of analysis you have come to expect from Bloomberg Radio. 0:19:33.760 --> 0:19:36.960 Right now, SMP futures are higher by forty two point 0:19:37.000 --> 0:19:39.960 Staff futures up two d seventy eight, Nasdaq futures up 0:19:40.000 --> 0:19:43.040 one hundred fifty four points ahead of the inflation data. 0:19:43.440 --> 0:19:46.280 Tenure Treasury is up sixteen thirty seconds now with the 0:19:46.359 --> 0:19:49.560 yield two point nine and the yield on the two 0:19:49.640 --> 0:19:54.439 year two point five seven percent. Looking at nim X crude, 0:19:54.440 --> 0:19:56.800 it's higher by two point nine percent of two dollars 0:19:56.840 --> 0:19:59.760 eighty seven cents at a hundred two dollars sixty three 0:19:59.760 --> 0:20:03.520 cents for a barrel of West Texas Intermediate. This is Bloomberg. 0:20:07.640 --> 0:20:09.360 Bloomberg Daybreak has brought to you by the New York 0:20:09.359 --> 0:20:11.479 Community Trust. Your name will live on as a champion 0:20:11.480 --> 0:20:13.440 of the causes you care about for years to come 0:20:13.440 --> 0:20:15.960 through a charitable bequest to the New York Community Trust. 0:20:16.040 --> 0:20:23.680 Learn more at Philanthropist dot n YC broadcasting live from 0:20:23.680 --> 0:20:27.520 the Bloomberg Interactive Broker Studio in New York, Bloomberg E 0:20:27.560 --> 0:20:32.240 Living Freedom to Washington, d C, Bloomberg to Boston, Bloomberg 0:20:32.280 --> 0:20:35.320 one O six one to San Francisco, Bloomberg nine six 0:20:35.600 --> 0:20:38.359 to the Country, Sirius XM Chile one nine team, and 0:20:38.480 --> 0:20:41.800 around the globe the Bloomberg Business app and Bloomberg Radio 0:20:41.920 --> 0:20:51.240 dot Com. This is Bloomberg Daybreak. It's five thirty on 0:20:51.280 --> 0:20:54.439 Wall Street. Good morning. I'm Nathan Hager and I'm Cameron Moscower. 0:20:54.600 --> 0:20:57.240 Just about four hours away from the open of US trading. 0:20:57.280 --> 0:20:58.639 Let's get you have to date in the news you 0:20:58.680 --> 0:21:00.440 need to know at this hour the this morning, we 0:21:00.480 --> 0:21:03.359 at the latest reading on inflation. The April Consumer Price 0:21:03.400 --> 0:21:05.920 Index will be released at eight thirty Wall Street time. 0:21:06.400 --> 0:21:10.120 Nathan Sheets, chief, a global economists with City, says high 0:21:10.160 --> 0:21:13.280 commodity prices and supply chain pressures could lead to more 0:21:13.400 --> 0:21:17.440 persistent inflation. Looking under the hood is going to be critical. 0:21:18.359 --> 0:21:22.600 We're expecting a zero point four percent month to month 0:21:22.680 --> 0:21:27.520 read for core, somewhat lower for headline, but when I 0:21:27.680 --> 0:21:32.199 look at underlying components, I just have a hard time 0:21:32.359 --> 0:21:36.240 being too optimistic about the inflation outlook. That City Group 0:21:36.320 --> 0:21:39.560 chief Global economist Nathan Sheets, and he expects inflation to 0:21:39.600 --> 0:21:43.320 gradually decline this year, even if it hasn't peaked yet. Well. 0:21:43.320 --> 0:21:46.280 The April CPI will likely affect how the Fed titans 0:21:46.320 --> 0:21:49.760 monetary policy Karen Cleveland FED President Loretta Mester says the 0:21:49.800 --> 0:21:53.240 path to two percent inflation will be painful. The unemployer 0:21:53.480 --> 0:21:55.959 may have to rise, we make it another quarter of 0:21:56.920 --> 0:22:00.320 or two of negative growth, but that's has to happen 0:22:00.520 --> 0:22:03.720 in order to get inflation down. So we are tightening 0:22:03.880 --> 0:22:07.399 financial conditions and we've got to continue doing that until 0:22:07.440 --> 0:22:11.240 we see inflation moving back down. Cleveland FED President Loretta 0:22:11.280 --> 0:22:13.840 Master tells Bloomberg's Michael mckeesh would not rule out a 0:22:13.920 --> 0:22:17.240 hike of seventy five basis points this year. In Asia, 0:22:17.400 --> 0:22:21.800 inflation also in focus, Nathan China's factory gave prices rising 0:22:21.840 --> 0:22:26.119 faster than expected in April and CPI exceeded projections. COVID 0:22:26.160 --> 0:22:29.080 lockdowns are blamed for higher food and fuel prices. So 0:22:29.160 --> 0:22:32.160 watching earning season, Karen Disney is going to report this afternoon, 0:22:32.160 --> 0:22:36.240 and Bloomberg Intelligence expects streaming subscriber growth will slow, but 0:22:36.320 --> 0:22:39.640 it also expects strong performance from domestic parks. Molly now 0:22:39.680 --> 0:22:42.040 turned to Twitter and Elon Musk. Nathan, speaking at a 0:22:42.119 --> 0:22:45.480 conference yesterday, the world's richest man, said he would reverse 0:22:45.560 --> 0:22:49.280 former President Donald Trump's permanent ban if he takes control 0:22:49.320 --> 0:22:52.000