Speaker 1: Live from the Bloomberg Interacted Burger Studios. This is Bloomberg
Speaker 1: Daybreak for Wednesday, May eleven two. Coming up this hour,
Speaker 1: investors brace for this morning's reading on inflation. President Biden
Speaker 1: plans to announce new measures to combat rising food costs.
Speaker 1: Lisa Cook will be the first black woman on the
Speaker 1: Fed's Board of Governors, and Elon Musk says he would
Speaker 1: reverse Twitter's van of Donald Trump New York City, boost
Speaker 1: police presence on subways as assaults increase. Plus the Senate
Speaker 1: votes today on an abortion rights bill. I'm Michael Blomer.
Speaker 1: More Ahead, I'm John stash Ouron sports, Aaron Judge, the
Speaker 1: ninth Inning Hero and a thrilling Yankee win over the
Speaker 1: Blue Jays the Mets one in Washington. That's all Train
Speaker 1: ahead on Bloomberg Daybreak on Bloomberg eleven three on New York,
Speaker 1: Bloomberg nine one, Washington, d C, Bloomberg one oh six one, Boston,
Speaker 1: Bloomberg nine sixties and Francisco Sirius x M one nine
Speaker 1: team and around the world. Old on Bloomberg Radio dot
Speaker 1: Com and via the Bloomberg Business Up. Good morning. I'm
Speaker 1: Nathan Hagar, and I'm Karen Moscow, and futures are higher
Speaker 1: this morning. We're coming up to five oh one on
Speaker 1: Wall Street, and we check the markets every fifteen minutes
Speaker 1: throughout the trading day. On Bloomberg, Guess and Future is
Speaker 1: up forty four points down futures of two hundred ninety
Speaker 1: seven and NASDAC futures up one hundred fifty five. The
Speaker 1: decks in Germany's up nine tenths of uppercent ten year
Speaker 1: treasury up fourteen thirty seconds, held two point nine three percent,
Speaker 1: They yield them a two year two point five eight percent.
Speaker 1: Nine X Screwed oil is up three and a half
Speaker 1: percent of three dollars forty five cents at a hundred
Speaker 1: three dollars, nineteen cents of barrel comics gold up half
Speaker 1: percent or nine dollars ten cents at eighteen fifty ten
Speaker 1: announced and the euro one point oh five seven zero
Speaker 1: against the dollar. Nathan Well, Karen, the countdown is under
Speaker 1: way for the latest reading on inflation. Less than three
Speaker 1: and a half hours from now, the government issues the
Speaker 1: consumer price index for April, with inflation running its fastest
Speaker 1: pace in decades, and Kate's has a preview from our
Speaker 1: Bloomberg newsroom in Washington. In March, the CPI rose eight
Speaker 1: point five percent year over year, the most nineteen eighty
Speaker 1: and yet Bloomberg Economics says the run up probably slowed
Speaker 1: in April, reflecting a drop and seasonally adjusted gasoline prices,
Speaker 1: but the climb down from the forty year high inflation
Speaker 1: will be stubbornly slow. Bloomberg says the inflation rate won't
Speaker 1: dip below seven percent until late in the year, keeping
Speaker 1: the Federal Reserve committed to higher interest rates. In Washington
Speaker 1: and Kate's Bloomberg Daybreak, all right and thank you well.
Speaker 1: That inflation report could have a major impact on Fed policy,
Speaker 1: but for now, Cleveland FED President Loretta Mester says she
Speaker 1: favors steady fifty basis point rate increases. We don't go
Speaker 1: out forever, right, I mean, what I'm gonna do is
Speaker 1: I think fifty the caves were going now seems about
Speaker 1: right to me. We're going to have to assess weather
Speaker 1: inflation is actually moving down, and then we'll be able
Speaker 1: to get more information after we do a couple of
Speaker 1: those to see and Cleveland Fed President Lorrettamester made the
Speaker 1: comments in an interview with Bloomberg's Michael McKee. O Master
Speaker 1: is soon going to have some help in the battle
Speaker 1: against inflation. Karen. The Fed is now welcoming its first
Speaker 1: black woman to the Board of Governors. We get more
Speaker 1: from Bloomberg's Doug Prisoner economist Lisa Cook. One Senate confirmation
Speaker 1: by the narrowest possible margin vote reflects a tie breaking
Speaker 1: appearance by Vice President Kamala Harris. The vote had been
Speaker 1: delayed by virus cases among Democrats. Cook had faced a
Speaker 1: United Gop campaign against her. The top Republican on the
Speaker 1: Senate Banking Committee, Pat Toomey of Pennsylvania, dismissed her record
Speaker 1: as thin on monetary policy, and he charged her withholding
Speaker 1: far left political views that risk politicizing the Central Bank.
Speaker 1: In New York Time, Doug Prisoner Bloomberg day break. All right, Doug,
Speaker 1: thank you at the White House today. New measures are
Speaker 1: coming today to help cut costs, specifically for farmers and
Speaker 1: Bloomberg's and Amy Morris explains from our newsroom in Washington.
Speaker 1: President Biden wants to undercut the rising cost of food.
Speaker 1: Ukraine has twenty million tons of grain in stories and
Speaker 1: silos right now, but trying to figure out how to
Speaker 1: get out of the country into market, which would reduce
Speaker 1: prices around the world. Among the new initiatives double cropping insurance,
Speaker 1: which gives farmers more coverage if they plant more than
Speaker 1: one crop. The US will double its investment in domestic
Speaker 1: fertilizer production to a half billion dollars, and tools used
Speaker 1: by the USDA to reduce the use of fertilizer will
Speaker 1: be extended to more farms. In Washington, I'm anymore as
Speaker 1: Bloomberg Daybreak, All right, Amy, thank you. Let's turn to
Speaker 1: Asia now, where inflation is also in focus. China's factory
Speaker 1: gate prices rose faster than expected in April, and factory
Speaker 1: prices aren't the only ones on the rise, as we
Speaker 1: hear from Bloomberg gave Break Asia anchor Brian Curtis, and
Speaker 1: consumer prices rose again. The CPI accelerated two point one percent,
Speaker 1: faster than a projected one point eight percent gain. The
Speaker 1: COVID lockdowns drove food and fuel costs higher. In the meantime,
Speaker 1: producer prices gained eight percent from a year earlier, compared
Speaker 1: to eight three in March. It two was a little
Speaker 1: hotter than the estimate. Brian Curtis, Bloomberg Day Break, all right, Brian,
Speaker 1: Thank you all back here in the US. Earnings will
Speaker 1: also be in the spotlight when Disney reports this afternoon,
Speaker 1: and we get a preview from Bloomberg's Tom Busby. Although
Speaker 1: the Entertainment Giants theme park division has been firing on
Speaker 1: all cylinders along with most of its media businesses, analysts
Speaker 1: are a little concerned that the just completed second quarter
Speaker 1: maybe the slowest of the year for subscriber growth at
Speaker 1: the Disney Plus TV streaming service. Still forecast call for
Speaker 1: a solid one hundred thirty four point four million subscribers.
Speaker 1: Bloomberg consensus calls were just at earnings per share of
Speaker 1: a dollar eighteen revenues of just over twenty point one
Speaker 1: billion dollars. Tom Busby, Bloomberg Daybreak. All right, Tom, thanks.
Speaker 1: Let's take a look at some other stocks on the
Speaker 1: move this morning following yesterday's earnings. Shares of coin Base
Speaker 1: are down seventeen percent in early training. Revenue at the
Speaker 1: cryptocurrency exchange missed estimates, and coin Base also warned that
Speaker 1: trading volume in the current quarter will be lower. Roadblocks
Speaker 1: shares are down almost one percent. The video game platform
Speaker 1: aimed at preteens and teenagers that surged during the pandemic,
Speaker 1: reported bookings that missed estimates well. Nathan, Twitter is also
Speaker 1: front end center after comments from Elon Musk, the world's
Speaker 1: richest man, says he would reverse former President Donald Trump's
Speaker 1: permanent ban if he takes control of the company. Ning
Speaker 1: Trump from Twitter didn't end Trump voice, it will amplify
Speaker 1: it among the rights and that is why it is
Speaker 1: morally wrung and flat out stupid. Elon Musk says he
Speaker 1: believes Twitter has overstepped policing a user's speech and wants
Speaker 1: to push it toward a more free speech focused approach.
Speaker 1: And finally, Karen, let's fill you in on the latest
Speaker 1: on the war in Ukraine. The fighting is now starting
Speaker 1: to affect physical gas supplies. Ukraine's gas network operator says
Speaker 1: it will stop receiving fuel at one of its main
Speaker 1: metering stations because it can't control the infrastructure in occupied territories. Meantime,
Speaker 1: in Washington, the House has passed more than forty billion
Speaker 1: dollars in emergency aid to rain. The Senate is likely
Speaker 1: to approve the legislation next week. S and P futures
Speaker 1: right now are higher by forty four points. That's again
Speaker 1: at one point one percent down. Future is up three
Speaker 1: to two points. NASAC features up one fifty nine points
Speaker 1: for a gain of one point three percent. Straight ahead
Speaker 1: your latest local headlines in a check of sports. This
Speaker 1: is Bloomberg. That's South five oh seven on Wall Street.
Speaker 1: We've got construction closing the truck lanes of the south
Speaker 1: end of Jersey Turnpike. And you're inter Change fourteen will
Speaker 1: tell you more. In traffic First, Michael bar is here
Speaker 1: with what's going on in New York and around the world.
Speaker 1: Good morning, Michael, Good morning Nathan. The Senate is expected
Speaker 1: to vote on protecting abortion rights due to elite Supreme
Speaker 1: Court opinion suggesting the justices would overturn Roe v. Wade.
Speaker 1: Senate Majority Leader Chuck Schumer is pushing for a vote
Speaker 1: on abortion this afternoon. The vote is almost certain to fail,
Speaker 1: but Schumer aims to put most Senators on the record
Speaker 1: about it. Senate Minority Leader Mitch McConnell the Supreme Court
Speaker 1: if this becomes the decision, as officers said, this is
Speaker 1: ripe for discussion in democratic bodies. We happen to be
Speaker 1: a democratic body. Schumer is proving that by having his
Speaker 1: vote on it. Senator Mitch McConnell. Governor Kathy Local has
Speaker 1: announced that New York will make thirty five million dollars
Speaker 1: available to help abortion providers boost services and security. The
Speaker 1: governor said the state has to get ready for potential
Speaker 1: influx of all the state patients if the U. S.
Speaker 1: Supreme Courts overturns a row In Connecticut, Governor Ed Lamont
Speaker 1: signed a new abortion bill into law that he says
Speaker 1: expands abortion access. When you're ready to be pregnant, whether
Speaker 1: you're ready to have that baby, we're doing everything we
Speaker 1: can to support you. That means we are providing prenatal
Speaker 1: support and support after birth. Governor Lamont called it a
Speaker 1: fundamental freedom issue that is being challenged by the Supreme Court.
Speaker 1: An NYPD officer was released from the hospital after he
Speaker 1: was shot last night in the Claremont section of the Bronx.
Speaker 1: The suspected gunman is killed. The officer received applause from
Speaker 1: fellow officers when he left the hospital. Overnight, New York
Speaker 1: City subway writers will see more uniform police officers on
Speaker 1: the trains overnight and for longer stretches of time. The
Speaker 1: NYPD is pushing back against a crime spike in the
Speaker 1: transit system, a big victory for Donald Trump backed candidate
Speaker 1: as the mid term season heats up. Representative Alex Mooney
Speaker 1: defeated Representative David McKinley in Tuesday's GOP primary for West
Speaker 1: Virginia's second congressional district. Mooney spoke to his supporters in Charleston,
Speaker 1: donald Trump loves West Virginia, and West Virginia loves Donald
Speaker 1: TRUMPA one tot percent global news twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than twenty seven hundred journalists and analysts more than a
Speaker 1: hundred twenty countries. Michael barn this is Bloomberg. Nathan Okay, Michael,
Speaker 1: thanks five o nine on Wall Streets for the Bloomberg
Speaker 1: Sports Update and Morning John Sessharre give morning, Nathan Hi.
Speaker 1: Drama in the Bronx, Yankees had to come from behind
Speaker 1: twice trail the Blue Jays three uphing in the sixth
Speaker 1: in John Carlos Standard tied the game with a three
Speaker 1: run homer down the line in right field. Toronto went
Speaker 1: back ahead five to three. Yanks had two on one
Speaker 1: out bottom of the ninth. Here's the one. She was
Speaker 1: out hill there to deep left field, that goes high.
Speaker 1: That is fun. That is gone. It's a game winning
Speaker 1: wook up three run home run by Aaron Judge. He
Speaker 1: hitted a mile and a half in the left field seats,
Speaker 1: so Judge a Judgeon bloss f an. Yanks won six five,
Speaker 1: So they go to twenty one and eight. On the
Speaker 1: same night, the Mets improved in one and ten. They
Speaker 1: trailed six, then in Washington scored three times, beat the
Speaker 1: National sport to the Angels with their twenty one winning
Speaker 1: It was a no hitter thrown by twenty two year
Speaker 1: old rookie Read Debtors against Tampa Bay just as eleventh
Speaker 1: career started. His career e r A entering the game
Speaker 1: was over six blowout to the BA. Phoenix beat Dallas
Speaker 1: by thirty. Miami been Philadelphia by thirty five. Both teams
Speaker 1: go up three to Both series has seen the home
Speaker 1: team win every game. NBA Hall of Famer Bob Lanier
Speaker 1: has died at seventy three and eight time All Star
Speaker 1: with the Detroit Pistons. Igor says dark and yesterday named
Speaker 1: a finalist for the Vezna Trophy that goes to the
Speaker 1: NHL's best goalie. He may very well win the award,
Speaker 1: but will he play like a Vesana winner tonight at
Speaker 1: the Garden. Just played three periods in Pittsburgh and gave
Speaker 1: up ten goals. Just darking in the Rangers face elimination,
Speaker 1: trailing the Penguins three to one. Game five wins last
Speaker 1: night for Carolina, Toronto, St. Louis, and Los Angeles. John Stashower,
Speaker 1: Bloomberg Sports, Nathan John stas Shower, thanks for that. SMP
Speaker 1: futures right now are higher by forty six points, a
Speaker 1: gain of one point two percent. Death futures up one
Speaker 1: percent or three to sixteen points. Nasdaq futures leading the
Speaker 1: gains this morning, up a hundred seventy three points for
Speaker 1: a gain of one point four percent. Ten. Your treasury
Speaker 1: is up fifteen thirty seconds, the yield two point nine
Speaker 1: three percent as we await April cp I stay with us.
Speaker 1: You're listening to Bloomberg Day right Bloomer eleven three oh
Speaker 1: other sunny, upper sixties today, sunny with a high year
Speaker 1: seventy tomorrow. Chance for showers on Friday with a high
Speaker 1: year seventy degrees. Right now, clear sky fifty five degrees
Speaker 1: in Central Park. Markets. Headlines and breaking news twenty four
Speaker 1: hours a day at Bloomberg dot Com, the Bloomberg Business Out,
Speaker 1: and at Bloomberg Quick Tape. He's a Bloomberg Business Flash,
Speaker 1: but I'm kerin Moscow. US Knock index futures and European
Speaker 1: shares are advancing as investors away to key inflation or
Speaker 1: port to gauge whether the federal reserves efforts detainment inflation
Speaker 1: in the world's largest economy are working. We checked the
Speaker 1: markets every fifteen minutes throughout the trading day. On Bloomberg
Speaker 1: Guess and P futures up forty three points and Down
Speaker 1: futures up two d eighty eight and Nashdack futures up
Speaker 1: one fifty three. The decks in Germany's up one percent,
Speaker 1: the ten year treasury up seventeen thirty seconds yield two
Speaker 1: point nine two percent, the yield on the two year
Speaker 1: two point five six percent. Nimex screwed oil is up
Speaker 1: three percent of two dollars ninety nine cents at a
Speaker 1: hundred two dollars seventy eight cents of barrel comics gold
Speaker 1: up six tents percent or ten dollars forty cents at
Speaker 1: eighteen fifty one fifty announced. The euro one point oh
Speaker 1: five six eight against the dollar, British pound one point
Speaker 1: to three HQ, the n is at one twenty nine
Speaker 1: point six five, and Bitcoin this morning higher up a
Speaker 1: third of a percent at thirty one thousand, one hundred dollars.
Speaker 1: And again today we're watching for the Consumer Price Index
Speaker 1: at at eight thirty Wall Street Time and Disney as
Speaker 1: among companies scheduled to report earnings today. As a Bloomberg
Speaker 1: Business Flash, now here's Michael Barr with more on what's
Speaker 1: going on around the world. Michael, good morning, Good morning Karen.
Speaker 1: In a rare bipartisan moment, the House has passed a
Speaker 1: nearly forty billion dollar military and you manage during an
Speaker 1: aid package for Ukraine. The money will go to everything
Speaker 1: from weapons to refugee aide to money that will help
Speaker 1: rebuild Ukraine. Senate majority leader Chuck Schumer plans to hold
Speaker 1: a vote on a bill that would write abortion protections
Speaker 1: into federal law. There will likely not be enough support
Speaker 1: to move that legislation forward. In baseball, the Yankees, Red Sox,
Speaker 1: Orioles and Giants one. The Mets beat the Nationals four
Speaker 1: to the a split a double header with the Tigers Angels.
Speaker 1: Rookie read Detmar's pitched the major's second no hitter this season.
Speaker 1: In the NHL Playoffs, the Bruins lost to the Hurricanes
Speaker 1: five one. Boston is now behind in that series three
Speaker 1: games to two. Global News twenty four hours a day
Speaker 1: on air and on Bloomberg Quick Take, powered by more
Speaker 1: than twenty seven hundred journalists and analysts more than a
Speaker 1: hundred twenty countries. Michael barn this is Bloomberg. Nathan alright, Michael. Thanks,
Speaker 1: It's five nineteen on Wall Street Live from the Bloomberg
Speaker 1: Interactive Broker Studios. This is Bloomberg Daybreak and Mark Ostwald
Speaker 1: is with us this morning, chief economist and global strategist
Speaker 1: at a d M I s I in London. As
Speaker 1: we await the April CPI data, we are watching markets
Speaker 1: on the rise this morning, Mark, what do you think
Speaker 1: is driving the sentiment this morning? I think that this
Speaker 1: is really just what looks for me like a corrective
Speaker 1: rally after and fairly sharp sell offs that we've had.
Speaker 1: There are are you when we get into these situations
Speaker 1: with sharp sell offs, there are always bargains to be had. Um,
Speaker 1: it doesn't necessarily mean that the worst is over for
Speaker 1: Wall Street. I sort of think um, particularly on the
Speaker 1: growth side of the economy, which is probably more important
Speaker 1: to some extent than either the FED or the inflation outlook.
Speaker 1: We're probably still looking at the US economy with slightly
Speaker 1: roast tinted glasses, as is the FED. Yes, the labor
Speaker 1: market is very, very tight, but with the sort of
Speaker 1: pressures that are there, and a lot of them not
Speaker 1: likely to resolve themselves in any great hurry, particularly all
Speaker 1: the price pressures that people have got. You we only
Speaker 1: have to look at the corporate earning season to see
Speaker 1: how many people are talking about price pressures and and
Speaker 1: now starting to mention um demand demands at weakness, and
Speaker 1: that really doesn't start surprise me, and that I think
Speaker 1: in the longer run will be key for US equities.
Speaker 1: Of course, in the short run, in the next few hours,
Speaker 1: we are going to get that CPI data for the
Speaker 1: month of April. Are we looking for signs of peak inflation?
Speaker 1: Is that your view? Um? Well, to a certain extent,
Speaker 1: we've got base effects in here now, which should basically
Speaker 1: suggest that we've reached the peak. I think the more
Speaker 1: important thing is not necessarily whether we've reached the peak,
Speaker 1: but how fast are we going to fall. We were
Speaker 1: predicted to fall quite rapidly in the second half of
Speaker 1: the year. I rather think that headline CPI may not
Speaker 1: get much below seven percent by the end of the year.
Speaker 1: And as long as that's the case, we can talk
Speaker 1: about inflation. That the pace of inflation growth as slowing,
Speaker 1: but it doesn't take the pressure, it doesn't take the
Speaker 1: pressure off the FED to basically tighten policy and tighten
Speaker 1: policy quite quickly. M Hey, you know, it's a it's
Speaker 1: a delicate balance here. But the biggest problem of all
Speaker 1: is the loss of productive capacity, which we've not really
Speaker 1: got round to enumerating. The only area which we can
Speaker 1: get a clear side of it is in the US
Speaker 1: well in the global oil refining sector, where we can
Speaker 1: see that huge amounts of productive capacity have been lost
Speaker 1: and that keeps on the pressure on oil products, and
Speaker 1: oil products are basically what they're driving inflation, along with
Speaker 1: other parts of the energy sector, most noticeably natural gas.
Speaker 1: Do those kinds of pressures put more pressure on the
Speaker 1: FED to move even more aggressively on rates? Could we
Speaker 1: be looking at a seventy five basis point move somewhere
Speaker 1: down the line? Um? I don't think, I said well,
Speaker 1: I think the more important point. You know, they've not
Speaker 1: taken it off the table completely, but I think they
Speaker 1: will be very low to do that unless they see
Speaker 1: some very sharp second round effects coming through, particularly in wages,
Speaker 1: UM and in services. That's not ruled out, but it
Speaker 1: would it take that that would be an absolute requirement.
Speaker 1: The more important point is what can the FED do
Speaker 1: do about oil and energy prices? And the answer is
Speaker 1: just the same as all other central banks. They can
Speaker 1: do actually precious little. And this is sort of you know,
Speaker 1: weak coordinated fiscal and legislative and monetary policy wells during
Speaker 1: the pandemic, but we're now sort of seeming to everyone's
Speaker 1: going off in different directions. And it's probably needed now
Speaker 1: more than during the pandemic, because there's a lot here
Speaker 1: which really would be better dealt with by better spending
Speaker 1: on infrastructure, fiscal measures, through support the weakest parts, weaker
Speaker 1: parts of the economy, be that at the corporate or
Speaker 1: personal level UM, and that needs to be a lot
Speaker 1: better coordination on that front. Now, those are some long
Speaker 1: term possibilities that we could talk about for much longer,
Speaker 1: but unfortunately we've run out of time here. But thanks
Speaker 1: so much for these insights this morning, Mark Ostwald, chief
Speaker 1: economist and global strategist at a d m I s I.
Speaker 1: As we await those April CPI numbers do out at
Speaker 1: eight thirty am Wall Street time, we'll have them for
Speaker 1: you live here on Bloomberg Radio, along with the kind
Speaker 1: of analysis you have come to expect from Bloomberg Radio.
Speaker 1: Right now, SMP futures are higher by forty two point
Speaker 1: Staff futures up two d seventy eight, Nasdaq futures up
Speaker 1: one hundred fifty four points ahead of the inflation data.
Speaker 1: Tenure Treasury is up sixteen thirty seconds now with the
Speaker 1: yield two point nine and the yield on the two
Speaker 1: year two point five seven percent. Looking at nim X crude,
Speaker 1: it's higher by two point nine percent of two dollars
Speaker 1: eighty seven cents at a hundred two dollars sixty three
Speaker 1: cents for a barrel of West Texas Intermediate. This is Bloomberg.
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Speaker 1: around the globe the Bloomberg Business app and Bloomberg Radio
Speaker 1: dot Com. This is Bloomberg Daybreak. It's five thirty on
Speaker 1: Wall Street. Good morning. I'm Nathan Hager and I'm Cameron Moscower.
Speaker 1: Just about four hours away from the open of US trading.
Speaker 1: Let's get you have to date in the news you
Speaker 1: need to know at this hour the this morning, we
Speaker 1: at the latest reading on inflation. The April Consumer Price
Speaker 1: Index will be released at eight thirty Wall Street time.
Speaker 1: Nathan Sheets, chief, a global economists with City, says high
Speaker 1: commodity prices and supply chain pressures could lead to more
Speaker 1: persistent inflation. Looking under the hood is going to be critical.
Speaker 1: We're expecting a zero point four percent month to month
Speaker 1: read for core, somewhat lower for headline, but when I
Speaker 1: look at underlying components, I just have a hard time
Speaker 1: being too optimistic about the inflation outlook. That City Group
Speaker 1: chief Global economist Nathan Sheets, and he expects inflation to
Speaker 1: gradually decline this year, even if it hasn't peaked yet. Well.
Speaker 1: The April CPI will likely affect how the Fed titans
Speaker 1: monetary policy Karen Cleveland FED President Loretta Mester says the
Speaker 1: path to two percent inflation will be painful. The unemployer
Speaker 1: may have to rise, we make it another quarter of
Speaker 1: or two of negative growth, but that's has to happen
Speaker 1: in order to get inflation down. So we are tightening
Speaker 1: financial conditions and we've got to continue doing that until
Speaker 1: we see inflation moving back down. Cleveland FED President Loretta
Speaker 1: Master tells Bloomberg's Michael mckeesh would not rule out a
Speaker 1: hike of seventy five basis points this year. In Asia,
Speaker 1: inflation also in focus, Nathan China's factory gave prices rising
Speaker 1: faster than expected in April and CPI exceeded projections. COVID
Speaker 1: lockdowns are blamed for higher food and fuel prices. So
Speaker 1: watching earning season, Karen Disney is going to report this afternoon,
Speaker 1: and Bloomberg Intelligence expects streaming subscriber growth will slow, but
Speaker 1: it also expects strong performance from domestic parks. Molly now
Speaker 1: turned to Twitter and Elon Musk. Nathan, speaking at a
Speaker 1: conference yesterday, the world's richest man, said he would reverse
Speaker 1: former President Donald Trump's permanent ban if he takes control
Speaker 1: of the company. Musk also says he is not sure
Speaker 1: Trump would even return to the platform. He has publicly
Speaker 1: stated that he will not be coming back to Twitter
Speaker 1: um and that he will leave you on true social
Speaker 1: Elon Musk called Trump's van morally wrong and flat out stupid.
Speaker 1: Turning to the war in Ukraine, Karen Russia and Ukraine
Speaker 1: are clashing over natural gas that's raising a threat to
Speaker 1: europe supply. Russian gas flowing into Europe for one of
Speaker 1: two key entry points was stopped as occupying forces disrupted operations.
Speaker 1: It's the first time since the invasion that gas transitting
Speaker 1: through Ukraine into Europe has been disrupted. S and P
Speaker 1: future is higher, up forty three points this morning, down
Speaker 1: futures of two D eighty four NASDAG futures have one
Speaker 1: hundred fifty seven straight and hand your latest local headlines
Speaker 1: plus a check of sports and this is Bloomberg thanks.
Speaker 1: Karen from Wall Street. Fifty five degrees in Central Park.
Speaker 1: Got an accident in Rockland County. It's northbound A nine
Speaker 1: W at Lakewood Drive. More coming up in traffic. First
Speaker 1: Michael bar with more on what's going on in New
Speaker 1: York and around the world. Michael, thank you very much. Nathan.
Speaker 1: The Senate is expected to vote today on a bill
Speaker 1: that would codify abortion rights into federal law. Bloomberg's At
Speaker 1: Baxter has the story. Passage is a long shot, but
Speaker 1: sent up. Majority Leader Chuck Schumer says he wants every
Speaker 1: Senator on the record for all to see. Senate Minority
Speaker 1: Leader Mitch McConnell says, actually, that's exactly what the leak
Speaker 1: Supreme Court opinion suggested a vote. But historically there have
Speaker 1: been abortion votes on the floor of the Senate, none
Speaker 1: of them have achieved six vote. McConnell says, go ahead,
Speaker 1: take the vote. Schumer says, if by some chance Republicans
Speaker 1: take control of the Congress, it could mean a total
Speaker 1: federal ban. On the table in San Francisco, I'm at
Speaker 1: Baxter Bloomberg Daybreak. New York Governor Kathy Hokel has announced
Speaker 1: that the state will make thirty five million dollars available
Speaker 1: to help abortion providers boost services and security. In Connecticut,
Speaker 1: Governor Ned Lamont signed a new abortion bill into law
Speaker 1: that he says expands abortion access. Everybody talking about freedom.
Speaker 1: This is a fundamental freedom issue that is being challenged
Speaker 1: by the Supreme Court. Fundamental. Governor Lamont also says the
Speaker 1: state is providing pre Na will support and support afterbirth.
Speaker 1: Look for more police officers in New York City subways
Speaker 1: overnight and for longer stretches of time. In a new
Speaker 1: strategy on fighting crime in my p D, Transit chief
Speaker 1: Jason Wilcox says, we need to be where the crime
Speaker 1: is and where people can see us. Representative Alex Mooney,
Speaker 1: endorsed by Donald Trump, won over fellow Representative David McKinley
Speaker 1: in a reapportionment forced Republican primary. It is now poised
Speaker 1: to represent West Virginia Second District in the next Congress. Meanwhile,
Speaker 1: Republican voters in Nebraska picked Jim Pilling as their nominee
Speaker 1: for governor the University of Nebraska. Regent was backed by
Speaker 1: the state's outgoing governor. Pilling beat eight rivals, including Charles Herbster,
Speaker 1: who was supported by a former President Trump and accused
Speaker 1: of groping multiple women. Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than seven hundred journalists analysts more than a hundred twenty countries.
Speaker 1: Michael barn this is Bloomberg. Thank you, Michael ball Street.
Speaker 1: Time for the Bloomberg Sports Something with John stash Ower. Hey,
Speaker 1: if you're the Yankees cape winning. They made it fourteen
Speaker 1: in the last sixteen, even when trailing by two runs
Speaker 1: and down to their last two outs. Aaron Judge with
Speaker 1: a game winning w walk off three run homer bottom
Speaker 1: of the ninth and a thrilling six five win over
Speaker 1: the Blue Jays at the Stadium. John Carlos Stanton had
Speaker 1: hit a three run shot in the sixth inning. The
Speaker 1: Yanks are a Major league best twenty one and eight.
Speaker 1: They've got a twelve thirty start with the Blue Jays today.
Speaker 1: The Mets are a National League best one and ten.
Speaker 1: They trailed in Washington rally to win four two behind
Speaker 1: Carlos Carrasco. The Mets may have needed five pitchers for
Speaker 1: their no hitter, and Angels rookie that did it all
Speaker 1: by himself. It's chapter short. This should do it to
Speaker 1: throw the first. It's a no hitter. It's a no hitter.
Speaker 1: Three Geppers in just eleven major league start gets a
Speaker 1: new hitter. That's the first Angels history lay they called twelve.
Speaker 1: Nothing went over Tampa Bay Deckers is twenty two. He's
Speaker 1: the youngest to throw a no hitters in two thousand six.
Speaker 1: Home cooking continuous in the NBA playoffs two series where
Speaker 1: the home teams won every game in the game fives
Speaker 1: were blowouts. Phoenix beat Dallas by thirty Miami met Philadelphia
Speaker 1: by thirty five. Both go up three to four game fives.
Speaker 1: In the NHL, Carolina beat Boston, the home teams won
Speaker 1: every game there. Toronto on a late Austin Matthews goal
Speaker 1: rally past Tampa Bay St. Louis with three in the
Speaker 1: third to win in Minnesota, and l a one in
Speaker 1: overtime at Edmonton. All four winning teams now have free
Speaker 1: two leagues. The Penguins lead the Rangers three one, game
Speaker 1: five tonight at the Garden. Does the Ranger season end?
Speaker 1: Where can they at least force the game six back
Speaker 1: in Pittsburgh? John stash Award, Bloomberg Sports, Nathan Plot seconds.
Speaker 1: Thank you, John. Five thirty seven on Wall Street. Time
Speaker 1: for the tri State Business Report. Here's Bloomberg's head Cory.
Speaker 1: The Partnership for New York City says some seventy eight
Speaker 1: percent of businesses were adopting a hybrid workplace model on
Speaker 1: the eight percent of Manhattan office workers are back in
Speaker 1: the office five days a week, twenty eight percent are
Speaker 1: still fully remote, according to a survey of more than
Speaker 1: one hundred sixty major employers in New York, Connecticut is
Speaker 1: the fifth U S state with comprehensive consumer privacy legislation,
Speaker 1: and the second so far this year after Utah to
Speaker 1: enact such a measure. The Connecticut law requires companies to
Speaker 1: limit the collection of personal data to that which is adequate, relevant,
Speaker 1: and reasonably necessary. Circumstances have improved for a lot of
Speaker 1: nonprofits in New Jersey, they say. Overall, conditions are more
Speaker 1: positive compared to the same time a year ago, according
Speaker 1: to the New Jersey Center for Nonprofits. Some though, are
Speaker 1: wrestling with funding gaps, the impact of COVID and racial inequities.
Speaker 1: That your Bloomberg Trying State Business Report. I'm in Corey, alright,
Speaker 1: thank you. It's five eight on Wall Street. Bloomberg Radio
Speaker 1: is on the air from San Francisco to New York,
Speaker 1: London to Hong Kong. Let's check in with our global
Speaker 1: news team for some of the top stories heard on
Speaker 1: our three hundred affiliate radio stations around the world. I'm
Speaker 1: Jeff Bullinger and on w tv N in Columbus. I'm
Speaker 1: reporting that Ohio was among the states for the highest
Speaker 1: home foreclosure rates last month. I'm Caroline Head going Bloombay
Speaker 1: d a B Digital Radio in London. We're reporting on
Speaker 1: the risk to European gas supplies as Ukraine's grid operators
Speaker 1: says flows to a key Ukrainian pipeline face disue option.
Speaker 1: On bernits Anahuan Carol Dan Dallas Airport summer traffic may
Speaker 1: hit a record three million flyers day. I'm in Corey
Speaker 1: on w W James Detroit. I'm talking about Toyota forecasting
Speaker 1: a lower operating profit outlook for the year. And those
Speaker 1: are some of the stories our twenty hundred Bloomberg journalists
Speaker 1: and analysts are working on this morning around the world.
Speaker 1: It's five thirty nine on Wall Street. The following is
Speaker 1: an editorial from Bloomberg Opinion. Learning the right lessons from
Speaker 1: the pandemic is essential, but jumping to the wrong conclusions
Speaker 1: will only add to its costs. In trade policy, this
Speaker 1: is no hypothetical danger. It's happening. Even before COVID nineteen
Speaker 1: struck port for liberal trade was faltering in many countries.
Speaker 1: Two years of virus related disruptions have further highlighted the
Speaker 1: risks of relying on extended supply chains. Now some suggest
Speaker 1: the world has entered a post globalization era. This kind
Speaker 1: of thinking threatened slower growth, lowers real incomes, and diminishes
Speaker 1: prospects for every kind of international cooperation. The risks and
Speaker 1: downsides of trade aren't imaginary. Policies are needed to mitigate them,
Speaker 1: and governments have too often neglected this task. But it
Speaker 1: would be hard to exaggerate how misguided it would be
Speaker 1: to turn trade against itself. Globalization still works, and the
Speaker 1: world needs it more than ever. This editorial was written
Speaker 1: by the Bloomberg Opinion Editorial Board. I'm David Chipley. For
Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash
Speaker 1: opinion or opi and go on the Bloomberg terminal. This
Speaker 1: has been Bloomberg opinion, and you can hear Bloomberg opinion
Speaker 1: editorials every weekday. At this time, terminal customers can read
Speaker 1: more at alp I and go looking ahead to the
Speaker 1: April CPI futures are moving higher. We have SMP futures
Speaker 1: right now up forty two points. Staff futures up two
Speaker 1: seventy four. Nastac Future is leading the way this morning
Speaker 1: with a hundred fifty nine point game that has a
Speaker 1: rise of one point ten. Your treasury is up fifteen
Speaker 1: thirty seconds, the yield two point nine three. This is
Speaker 1: Bloomberg Bloomberg eleven three oh other sunny upper sixties today,
Speaker 1: mostly sunny tomorrow with a high near seventy. By Friday
Speaker 1: will turn most of the cloudy with a chance for
Speaker 1: showers in a high still near seventy degrees, currently fifty
Speaker 1: five in Central Park markets. Headlines and breaking news twenty
Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg
Speaker 1: Business apt and at Bloomberg Quicktape. This is a Bloomberg
Speaker 1: Business Flash and I'm Cameron Moscow. US index futures are
Speaker 1: on the rise, along with European shares. Investors awaiting a
Speaker 1: key inflation report to get whether the Federal Reserve's efforts
Speaker 1: detain inflation and the world's largest economy are working. We
Speaker 1: checked the markets every fifteen minutes throughout the trading day.
Speaker 1: On Bloomberg SMP Future is at forty three points this morning,
Speaker 1: down Future is up two hundred eighty three, NASTAG futures
Speaker 1: up one hundred sixty three. The decks in Germany's of
Speaker 1: one percent and your treasury of fourteen thirty seconds held
Speaker 1: two point nine three percent yield on a two year
Speaker 1: two point five nine percent NIMEX screwed oil is a
Speaker 1: two point eight percent of two dollars eighty two cents
Speaker 1: and a hundred two dollars fifty eight cents of Barrel
Speaker 1: Comics called up half percent or nine dollars fifty cents
Speaker 1: and eighteen fifty fifty announced. The Euro one point five
Speaker 1: nine against the dollar, British found one point to three
Speaker 1: six nine, the En one twenty nine point eight one,
Speaker 1: and bitcoy this morning higher up one point nine percent
Speaker 1: at thirty one thousand, five hundred fifty dollars. That's of
Speaker 1: Bloomberg Business Flash. Now here's Michael bar with more on
Speaker 1: what's going on around the world. Michael, thank you very much.
Speaker 1: Karen It was a split primary decision yesterday for former
Speaker 1: President Trump supported candidates in West Virginia, represent Alex Mooney,
Speaker 1: endorsed by Trump, one over fellow Representative David McKinley. In
Speaker 1: a reapportionment forced Republican primary. Republican voters in Nebraska picked
Speaker 1: Jim Pillen as their nominee for governor. He beat eight rivals,
Speaker 1: including Trump supported Charles Herbster, who was accused of groping
Speaker 1: multiple women. In baseball. The Yankees, Red Sox, Orioles, and
Speaker 1: Giants one the Mets to be the Nationals for to
Speaker 1: the A split a double header with the Tigers. Angels,
Speaker 1: Rookie Read Dettmar's pitched the major's second no hitter this season.
Speaker 1: In the NHL Playoffs, the Bruined lost to the Hurricanes
Speaker 1: that are now behind in the series three games to two.
Speaker 1: Global News twenty four hours a day on a or
Speaker 1: end on Bloomberg Quicktake, powered by more than twenty seven
Speaker 1: d journalists and analysts more than a hundred twenty countries.
Speaker 1: I'm Michael Barr, and this is Bloomberg. Nathan, Okay, Michael. Thanks,
Speaker 1: It's five forty nine on Wall Street Live from the
Speaker 1: Bloomberg intract and broker studios. This is Bloomberg Daybreak as
Speaker 1: we relate the April Consumer Price Index, now due out
Speaker 1: in just a little more than two and a half
Speaker 1: hours time. We're joining it now by Jennifer Lee, senior
Speaker 1: economist at Demo Capital Markets. Jennifer, it's always great to
Speaker 1: speak with you. Looking at the ECO screen on the
Speaker 1: Bloomberg terminal, economists are calling for eight point one percent
Speaker 1: year over year, but that's lower than the prior month.
Speaker 1: Have we reached peak inflation in your view? UM? Good morning. UM.
Speaker 1: Let's hope we are at peak inflation. UM, but I
Speaker 1: don't think we're quite there yet. These are most basically
Speaker 1: more technical improvements. I think, you know, we're looking for, Um,
Speaker 1: you know, the past number of months have seen some
Speaker 1: sizeable month to month increases, so we're looking for like
Speaker 1: a more modest point three point increase in the headline
Speaker 1: this morning, but just due to you know, um, a
Speaker 1: drop in car prices in April a lot less than
Speaker 1: what we saw in March as an example. But this
Speaker 1: is just this is will be just the beginning, and
Speaker 1: you know, it's like fed share. Powill said during his
Speaker 1: press conference last week that he'll need a lot more
Speaker 1: evidence to see that inflation has either peaked or button vote,
Speaker 1: um Cleveland said semester. I think she was on the
Speaker 1: wires yesterday also saying that she needs to see some
Speaker 1: quote compelling moves unquote before she considers, you know, taking arrest. Yeah,
Speaker 1: and she was speaking with us yesterday on Bloomberg Radio
Speaker 1: and television saying that she wouldn't take a seventy five
Speaker 1: basis point rate hike off the table sometime this year.
Speaker 1: Is that what it's going to take, something like an
Speaker 1: even more aggressive move from the FED to rein in
Speaker 1: these price pressures. Just looking at what's happening now, I
Speaker 1: think they might have to. Um, it's not our it's
Speaker 1: not our base case. I mean we've got you know,
Speaker 1: I mean FED youre Powell basically said, and most of
Speaker 1: the other FLMC members have also said that it makes
Speaker 1: sense that to fifty basis point rate hikes over the
Speaker 1: next two meetings. UM would would hopefully, you know, do
Speaker 1: something to to curb inflation. But just the way it's
Speaker 1: going right now with JG girls still very very strong, UM,
Speaker 1: it's it's very I think we cannot write off the
Speaker 1: possibility that a seventy five basis point rate hike might
Speaker 1: be needed. Just looking into it feeds a cp I.
Speaker 1: What do you see as causing the sharpest price pressures
Speaker 1: that we could see in the headline number. It's still
Speaker 1: going to be cars and energy, but food is also
Speaker 1: ranking up there as well, and that's the sort of
Speaker 1: you know, the scary part of all of this is
Speaker 1: that it's not just one component. It's not you can't
Speaker 1: just strip out the food and energy and say, well,
Speaker 1: at least cores is rising moderately. It's it's it's almost everything, clothing,
Speaker 1: medical care, recreational stuff, um, all sorts of things that
Speaker 1: are causing the entire spectrum I think of prices to
Speaker 1: to rise, and that's what we've got corse c t
Speaker 1: I s also you know heading up there, you know,
Speaker 1: joined the headline at the highest level in decades. And
Speaker 1: this is what causes this is what makes defends job
Speaker 1: even more challenging. And you can't just knock one peg
Speaker 1: down and and everything will fall will fall along with it.
Speaker 1: It has to be broad based hits too. I think
Speaker 1: to inflation to get inflation towards back down towards two percent.
Speaker 1: So are you seeing as in an inflation spiral right now,
Speaker 1: and what's behind it. I don't want to see spiral
Speaker 1: because he you know, the FED chair also said that
Speaker 1: you know, he's he hasn't seen a way to price
Speaker 1: spiral yet. Um So this week, I think it's yesterday
Speaker 1: that the dock workers at the Western Ports they started
Speaker 1: their talks. That's going to be very interesting to see
Speaker 1: how how that pans out, because you know, obviously deal
Speaker 1: more they want to unspend new contract with with higher
Speaker 1: wages and that's something that is going to also feed
Speaker 1: into higher um, higher inflation as well. So but right
Speaker 1: now we haven't seen it completely. But you know, obviously
Speaker 1: everyone has just given the plant labor market a lot
Speaker 1: of the the the the the employees are asking for
Speaker 1: more um and at least the companies can't afford to
Speaker 1: give it to to parson out. But you know it's
Speaker 1: also going to come out in a different forms like
Speaker 1: can benefits as well more vacations. UM So, I don't
Speaker 1: think right now we are going to see we are
Speaker 1: seeing a price spiral, but again it's something that wouldn't
Speaker 1: completely rule out. But this is why the FED has
Speaker 1: to act more aggressively now rather than later would get
Speaker 1: those numbers coming out. Eight thirty am. Wall Street Time.
Speaker 1: Jennifer Leeves, Senior Economists BEMO Capital Market's good to get
Speaker 1: your insights ahead of the release of that data. Thank you,
Speaker 1: Karen ry Nathan. Thank you three on Wall Street Time
Speaker 1: for the Bloomberg Law rapport. Unlet's get to the legal
Speaker 1: stories we are watching this morning from Bloomberg's Jeff Bellinger,
Speaker 1: Connecticut became the fifth state with a comprehensive consumer privacy law.
Speaker 1: Governor Ned Lamont signed the measure that gives consumers the
Speaker 1: right to ask that their personal data and not be
Speaker 1: sold and that it be deleted. The Biden administration is
Speaker 1: considering its next steps after federal judge in Montana pause
Speaker 1: development on oil and gas leases in Wyoming and Nevada.
Speaker 1: A Texas Court of Appeals ruled the Pasadena Refinery System
Speaker 1: must face a lawsuit brought by a contractor's employee who
Speaker 1: was injured in a fall at a Pasadena facility. Bloomberg
Speaker 1: Law everything you need, all on one legal research platform,
Speaker 1: including guidance analysis and Bloomberg Market Intelligence. Find up more
Speaker 1: at Bloomberg Law dot com. All right, Jeff, thank you.
Speaker 1: Now another legal story we're watching. A former Nomura Holding
Speaker 1: senior bond trader was found not liable for defrauding the
Speaker 1: bank's clients by lying to them about the prices of
Speaker 1: commercial mortgage backed securities. James Emily, led the firm CMBs
Speaker 1: desk for five years. Was accused by the Securities and
Speaker 1: Exchange Commission of Securities fraud in aiding and abetting securities fraud.
Speaker 1: The jury verdict is another blow to the government's attempts
Speaker 1: to reign in questionable practices by bond traders. For more,
Speaker 1: Bloomberg's doing grossos FISA. James Park, a professor at u
Speaker 1: c l A Law School, he took the stand in
Speaker 1: his own defense and he admitted to lyne to clients,
Speaker 1: but he said that everyone did it. It is remarkable
Speaker 1: that he did not deny that he was lying. And
Speaker 1: the thing that's interesting about the case and the result
Speaker 1: here is that even if you lie about a securities
Speaker 1: transaction doesn't necessarily mean you violated the security these laws,
Speaker 1: there's a requirement that the lie has to be about
Speaker 1: a material matter, something that's important to the investors decision
Speaker 1: making process. And I believe his argument was that because
Speaker 1: of the industry practice the investors who bought the bond
Speaker 1: from him would have known not to believe him, and
Speaker 1: therefore those statements were not material and could not constitute
Speaker 1: securities frauds. And the defense was successful. Number agreed to
Speaker 1: repay customers million dollars to resolve claims that it failed
Speaker 1: to supervise traders. It seems striking that the government in
Speaker 1: these cases has basically been unable to get convictions or
Speaker 1: convictions that stick true. I think that the defense might
Speaker 1: say a corporation like Nomura has incentive to settle cases
Speaker 1: with the SEC, which is regulating it in a out
Speaker 1: of different areas, whereas individuals have more of an incentive
Speaker 1: to fight charges. And you know, there have been some losses,
Speaker 1: but there have also been a few wins to a
Speaker 1: lot of individuals have also pre bargained or settled cases
Speaker 1: by and large, And you know, I think um B
Speaker 1: SEC should take cases to trial when it has to.
Speaker 1: Um One of the criticisms of the SEC is that
Speaker 1: it just settles cases, whether the defendants do not admit
Speaker 1: or deny wrongdoing, and they just pay a penalty. And
Speaker 1: I think that there should be cases where you go
Speaker 1: to court and go in front of a jury, you
Speaker 1: might have to defend a decision in front of it
Speaker 1: appellate court. And you know when a court weighs in
Speaker 1: on a legal theory that provides valuable clarity to the
Speaker 1: sec and the industry as to what the law is.
Speaker 1: And as James Park, a professor at u c l
Speaker 1: A Law Schools, being at Bloomberg's June grow So catch
Speaker 1: more in that interview plus analysis of the latest legal
Speaker 1: news by subscribing to the Bloomberg Law Podcast or downloading
Speaker 1: the show at Bloomberg dot com slash podcast. Attorneys can
Speaker 1: find exceptional legal research and business development tools at Bloomberg
Speaker 1: Law dot com and on the Bloomberg terminal at b
Speaker 1: law Go. Futures this morning are on the rise SNP
Speaker 1: Future is up forty three points down Future is up
Speaker 1: two six nasdack futures have one hundred sixty six the
Speaker 1: ten year treasury of fourteen thirty seconds yield two point
Speaker 1: nine three percent. They yield on the two year two
Speaker 1: point five eight percent. And I make screwed oil is
Speaker 1: a three and a third percent of three dollars thirty
Speaker 1: four cents at a hundred three dollars ten cents of
Speaker 1: barrel still ahead on Bloomberg day Break and check on
Speaker 1: the business headlines and all the news you need to
Speaker 1: start your day. This is Bloomberg.