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Speaker 1: Live from the Bloomberg Interactive Burger Studios. This is Bloomberg

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Speaker 1: Daybreak for a Friday, May six two. Coming up this hour,

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Speaker 1: markets close out of Vola whole week following yesterday's three

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Speaker 1: and a half percent plunch. On Wall Street Investor's race

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Speaker 1: for the April jobs report, a former FED vice chair

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Speaker 1: says short term rates need a triple from current levels

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Speaker 1: and the airline industry or does the Biden administration to

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Speaker 1: drop the COVID test Man daid it would be the

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Speaker 1: largest red hike in years for New York City apartments,

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Speaker 1: plus a historic higher for the new White House Press

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Speaker 1: Secretary On Michael are more ahead, I'm John Stashtown Sports

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Speaker 1: Rangers beat the Penguins and five the series and one

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Speaker 1: an amazing comeback win by the Mets in Philadelphia. That's

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Speaker 1: all strading ahead on Bloomberg Daybreak on Bloomberg Eliving Free

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Speaker 1: on New York, Bloomberg one, Washington, d C, Bloomberg one

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Speaker 1: oh six one, Boston, Bloomberg nine sixties and Francisco Sirius

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Speaker 1: XM one nineteen and around the world. Old on Bloomberg

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Speaker 1: Radio dot Com and via the Bloomberg Business app. And

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Speaker 1: Good Friday, morning. I'm Nathan Hagar and I'm Karen Mostow.

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Speaker 1: US DOT index futures are lower this morning. We are

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Speaker 1: coming up to five oh one on Wall Street, and

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Speaker 1: we check the markets every fifteen minutes. Thro while the

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Speaker 1: trading day on Bloomberg right now, SMP future is down

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Speaker 1: fourteen points, DAL future is down ninety five and NASDAG

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Speaker 1: futures down sixty two. The decks in Germany is down

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Speaker 1: one percent. Ten year Treasury down eight thirty seconds. He

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Speaker 1: yield three point oh seven percent. That yield on the

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Speaker 1: two year two point seven two percent. Nim X Screwed

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Speaker 1: oil is at one point six percent, up a dollar

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Speaker 1: seventy six at a hundred ten dollars three cents of barrel, Nathan, Karen,

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Speaker 1: we close out this vaulted a week following two consecutive

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Speaker 1: days of three percent moves in the markets. A day

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Speaker 1: after stocks surged on a less hawk ish FED, the

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Speaker 1: SMP five hundred fell three point six percent in the

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Speaker 1: NASDAC plummeted five percent. Jimmy Lee, a CEO at Wealth

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Speaker 1: Consulting Group retaw investors are starting to get nervous, and

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Speaker 1: of course, these last two days of altility. Um I

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Speaker 1: think reminding some some people of what it was like March,

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Speaker 1: and maybe those have been around longer, maybe the financial crisis.

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Speaker 1: Wealth Consulting Group CEO Jimmy Lee made the comments on

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Speaker 1: Bloomberg Business Week. You can hear that show weekdays from

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Speaker 1: two to five pm Eastern on Bloomberg Radio. We also

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Speaker 1: got reaction on the sell off from Charles Schwab, chief

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Speaker 1: market strategist Liz an Saunders. I don't think the market

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Speaker 1: is yet priced in recession risk. I think the market

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Speaker 1: is still making an assumption that we have a soft landing.

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Speaker 1: I just think the needle has pointed a bit more

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Speaker 1: toward recession than soft landing, and we may not be

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Speaker 1: through that rerating process yet. Liz and Saunders with Charles

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Speaker 1: Schwab says yesterday's economic data showing labor cost surging and

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Speaker 1: productivity dropping contributed to the sell off, and Nathan, we

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Speaker 1: get another key economic rating later this morning. The April

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Speaker 1: jobs are poor. An economist forecast off for a end

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Speaker 1: of three hundred eighty thousand non farm pay rolls and

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Speaker 1: at an employment rate of three point five percent. Begin

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Speaker 1: More from Bloomberg's Michael McKee. One key question the April

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Speaker 1: Jobs report may answer, are we running out of people

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Speaker 1: to hire? After months of luring sidelined workers back into

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Speaker 1: the labor force, companies are beginning to suggest the post

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Speaker 1: pandemic hiring spree is waning. This week's I s M

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Speaker 1: manufacturing and services employment indexes both slowed. The ADP payroll

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Speaker 1: report Wednesday was surprisingly soft. If employment growth starts to ease,

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Speaker 1: that may push unemployment down and wages up, which sets

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Speaker 1: up an interesting situation for the Fed. Rising wages suggest

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Speaker 1: an inflation problem continues, but low unemployment, coupled with record

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Speaker 1: levels of job openings gives the Fed the opportunity to

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Speaker 1: raise interest rates without doing as much damage to the

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Speaker 1: overall economy. Michael McKee, Bloomberg, Gabriak. All right, Michael, thank you.

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Speaker 1: Stay with Bloomberg throughout the morning for complete analysis of

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Speaker 1: the Job's report. Do we speak live with Labor Secretary

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Speaker 1: Murty Walsh coming up at am Wall Street time on

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Speaker 1: Bloomberg Radio and television. Well ahead of that, Karen, we're

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Speaker 1: hearing from another former Fed official on policy. Former Vice

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Speaker 1: Chair Richard Claradas says the Central Bank will need to

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Speaker 1: raise short term interest rates to at least three and

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Speaker 1: a half percent to bring inflation under control. We get

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Speaker 1: the details on that from Bloomberg's Charlie Pellett. Clarada's remarks

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Speaker 1: came in a speech to a Hoover Institute conference. He

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Speaker 1: said the funds rate will ultimately need to be raised

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Speaker 1: well into restrictive territory by at least a percentage point

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Speaker 1: above the estimated nominal neutral rate of two and a

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Speaker 1: half percent. Clarida left the Fed in January. On Wednesday,

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Speaker 1: the Fed raised its target range for the federal funds

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Speaker 1: rate by a half percentage point. It also said ongoing

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Speaker 1: increases are likely, and it announced a plan to start

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Speaker 1: reducing its big bound sheet next month in New York.

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Speaker 1: Charlie Pellett Bloomberg Tay break Ry, Charlie, thank you now

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Speaker 1: to the latest on the war in Ukraine. More civilian

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Speaker 1: evacuations are expected from Mario Pole, but Ukrainian defenders are

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Speaker 1: refusing to surrender the giant and steel plant that's been

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Speaker 1: under relentless attack from Russia for weeks. Pentagon spokesman John Kirby.

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Speaker 1: We would still assess that the Ukrainians are putting up

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Speaker 1: a very stiff resistance and that the Russians have not

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Speaker 1: made the progress that we believe they expected to make

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Speaker 1: by this point. Pentagon spokesman John Kirby says the battle

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Speaker 1: is far from over. Meantime, speculation grows that Vladimir Putin

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Speaker 1: wants a major battlefield victory in time for World War

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Speaker 1: two era Victory Day commemorations. First, Lady Joe Biden is

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Speaker 1: headed to Eastern Europe. She'll meet with US troops and

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Speaker 1: Ukrainian mothers and children in Romania and spend Mother's Day

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Speaker 1: with displaced families in Slovakia training to the pandemic. Now, Karen,

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Speaker 1: we're seeing the travel industry put new pressure on COVID

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Speaker 1: policies and wants the Biden administration to modify testing mandates

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Speaker 1: for international flyers. Bloomberg's Ed Baxter has the story. Airlines,

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Speaker 1: along with travel groups, want to begin allowing vaccinated people

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Speaker 1: to fly into the US without first testing negative for COVID.

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Speaker 1: This coalition includes more than two hundred fifty travel groups

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Speaker 1: and businesses, including airports. They say the recovery and the

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Speaker 1: international travel market is down about seventy eight percent from

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Speaker 1: twenty nineteen, and say medical advancements can support it. Other countries,

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Speaker 1: including the UK, Germany and Canada have already dropped that mandate.

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Speaker 1: In San Francisco, I'm at Baxter Bloomberg Daybreak. All right

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Speaker 1: and thank you. Meantime, Johnson and Johnson's COVID vaccine is

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Speaker 1: under scrutiny. U S regulators are placing limits on the shot,

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Speaker 1: and we get the latest live with Bloomberg's re need

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Speaker 1: a young, good morning, Ready down, Good morning, Karen. The

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Speaker 1: f d A is limiting the use of the J

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Speaker 1: and J shot two adults for who mother shots are

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Speaker 1: not medically appropriate or available. The agency is also allowing

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Speaker 1: those who would otherwise not get immunized against the virus

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Speaker 1: to take Jane J's single shot vaccine. The FDA made

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Speaker 1: the decision to limit the authorized use of Jane J

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Speaker 1: Shot after investigating reported cases of blood clots and people

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Speaker 1: who have taken the vaccine. Live in New York, I'm

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Speaker 1: renaed a Young Bloomberg Daybreak. Okay, need to thank you

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Speaker 1: right now. SMP futures are down twelve point, staff futures

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Speaker 1: down seventy one, dance SECT futures are lower by fifty

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Speaker 1: eight points, and the ten year treasuries down ten thirty seconds.

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Speaker 1: Now they yield three point zero seven percent on the

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Speaker 1: ten year note. Straight ahead, your latest local headlines plus

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Speaker 1: the check of sports. This is Bloomberg. It's now five

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Speaker 1: oh seven on Wall Street, where fifty eight degrees in

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Speaker 1: Central Park. Lots of problems on the roads this morning,

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Speaker 1: including an overturned vehicle on the northbound Deagan by Van

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Speaker 1: Cortland Park South. We'll get more for you in traffic shortly. First,

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Speaker 1: Michael Bars here with more on what's going on in

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Speaker 1: New York and around the world. Michael, good morning, Good morning, Nathan.

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Speaker 1: It would be the largest rent increase for New York

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Speaker 1: City apartments in about ten years. A preliminary vote by

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Speaker 1: the New York City Rent Guidelines Board last night I

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Speaker 1: proposed the hike for rent stabilized departments. It proposed a

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Speaker 1: rent increase of two to four percent for one year

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Speaker 1: leases and four to six percent, and an increase for

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Speaker 1: two year leases. A final vote is expected at the

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Speaker 1: end of May. Connecticut Democratic Governor Net LaMotte signed a

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Speaker 1: law designed to protect people who provide an abortion and

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Speaker 1: are then sued in another state you know twitter message.

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Speaker 1: Lamont says it was a bill he was eager to sign.

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Speaker 1: I think you've heard a lot about what's coming out

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Speaker 1: of the Supreme Court and a preliminary ruling that looks

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Speaker 1: like they may be on the edge of a ending

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Speaker 1: a woman's right to choose and ending a Roe v. Wade.

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Speaker 1: That's not going to happen the state of Connecticut. Not

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Speaker 1: as long as I'm here. No politicians are going to

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Speaker 1: get between you and your doctor. You make the choice.

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Speaker 1: Governor Lamott says. The law is set to take effect

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Speaker 1: on July one. The measure was prompted by a law

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Speaker 1: in Texas that allows private citizens to take civil action

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Speaker 1: to enforce its ban on abortion. US Chief Justice John

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Speaker 1: Roberts called the leak of a draft of a Supreme

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Speaker 1: Court abortion opinion this week absolutely appalling. Roberts told a

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Speaker 1: judicial conference in Atlanta. The person responsible will be foolish

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Speaker 1: to think that the disclosure will affect the Court's handling

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Speaker 1: of the case. Karine Jean Pierre will replace Jens Saki

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Speaker 1: as White House Press Secretary. Jean Pierre is the first

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Speaker 1: black person, an openly l g d t Q person

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Speaker 1: to hold the position. It is an honor and a

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Speaker 1: privilege to be behind this podium. In about a week

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Speaker 1: or so, when Jen is ready, UM and that that

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Speaker 1: is something that I will honor UH and UM and

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Speaker 1: do my best to represent UH, this President and this

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Speaker 1: first lady the best that I can, but also the

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Speaker 1: American people. Incoming Press Secretary Jean Pierre will take over

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Speaker 1: after Sake leaves on May thirteenth. Space Acts as we

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Speaker 1: returned with four astronauts from the International Space Station, Dragon

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Speaker 1: Endurance flashed down just after midnight off the Florida Coast.

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Speaker 1: Global News twenty four hours a day on air and

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Speaker 1: on Bloomberg Quick Take, powered by more than twenty journalists

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Speaker 1: an analysts in more than a countries. Michael Barr, this

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Speaker 1: is Bloomberg, Nathan. Thank you. Michael five O nine on

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Speaker 1: Mall Street time for the Bloomberg Sports Uptake. Morrey John

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Speaker 1: Stanhow give order Nathan. Rangers and Penguins back at the Garden.

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Speaker 1: After the marathon game one like that one, Rangers scored first,

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Speaker 1: unlike that one day kept the lead, beat Pittsburgh five

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Speaker 1: to two. Five different goal scorers. Andrew cop Off and

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Speaker 1: r Timmy Panerin passed, Ryan Strom deflected it in, and

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Speaker 1: Adam Fox shot on the powerplay. Chris Cryder deflected in

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Speaker 1: a Frank Patrono shot in the third jury, Panerin and

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Speaker 1: Patrono stored themselves, Regor says turk In after seventy nine scenes.

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Speaker 1: The other night, thirty nine more. Game three tomorrow night

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Speaker 1: in Pittsburgh. The other game so wins for Florida, Dallas,

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Speaker 1: and Colorado. The Mets in Philadelphia and a lot of fans,

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Speaker 1: no doubt, turned this game off. Philly's led seven to

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Speaker 1: upping seven to one in the ninth inning. Here is

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Speaker 1: Marte now demo good lead at first the pitch, swinging

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Speaker 1: a high fly ball left center field, pretty deep. It

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Speaker 1: stop some lats back near the wallets. It for a head,

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Speaker 1: took it a take the lead, demo a round third,

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Speaker 1: coming home, he scores standing double for parte, eight to seven.

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Speaker 1: New Yard Holy sh nts the Mets with US seven

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Speaker 1: run night night at sent Us It's back part w

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Speaker 1: CBS seven runs on eight hands. They scored four times

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Speaker 1: with two outs, third time in franchise history they'd won

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Speaker 1: when trailing by six In the ninth NBA playoffs resumed tonight,

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Speaker 1: Philadelphia trails Miami to nothing, hoping to get Joe l

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Speaker 1: m b at a concussion protocol. Phoenix up to nothing.

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Speaker 1: Game three in Dallas The Celtics hope to have Marcus

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Speaker 1: Smart back for their Game three tomorrow in Milwaukee. Memphis

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Speaker 1: will be without its second leading scored tomorrow, like Golden State,

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Speaker 1: Dylan Brooks suspended for his hit of Gary Peyton resulted

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Speaker 1: in Peyton's broken elbow. John Skash that we're Bloombrook Sports,

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Speaker 1: Nathan all right, John, thank you. Right now, SMP futures

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Speaker 1: are down fourteen points, Stown futures down eighty three, Nastack

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Speaker 1: futures down sixty one points, adding to the declines for

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Speaker 1: at these volatile markets next with Ben Laidler of each Horo.

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Speaker 1: This is Bloomberg Bloomberg eleven three oh weather. Occasional rain

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Speaker 1: today with highs in the low sixties. The rain continues tomorrow,

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Speaker 1: Mother's Day upper fifties. Right now fifty eight in Central

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Speaker 1: Park markets. Headlines and breaking news twenty four hours a

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Speaker 1: day at Bloomberg dot com. The Bloomberg Business out and

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Speaker 1: at Bloomberg quick tape, this is a Bloomberg business lash

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Speaker 1: and I'm Karen Moscow. And stocks are sliding with bonds

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Speaker 1: China's COVID lockdown, suppressed sentiment. European stocks are extending their

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Speaker 1: for the worst weekly drop in two months. US Dock

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Speaker 1: then I was deck lost five percent. We check the

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Speaker 1: markets every fifteen minutes throughout the trading day on Bloomberg

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Speaker 1: Guess and p Future is down nineteen points this morning.

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Speaker 1: Town features down a hundred fourteen, NASDAG features down the

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Speaker 1: seventy seven the decks in Germany's down one point three percent.

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Speaker 1: The Tenuere Treasury down ten thirty seconds three point oh

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Speaker 1: point nine percent, up two dollars at a hundred ten

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Speaker 1: dollars twenty four cents of barrel comics gold is up

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Speaker 1: five and Bitcoin this morning lower down eight tens percent

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Speaker 1: at thirty six thousand, one hundred seventy five dollars. That's

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Speaker 1: a Bloomberg business flash. Now here's Michael Barr with more

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Speaker 1: on what's going on around the world. Munchale, Good morning,

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Speaker 1: Good morning, Karen, Ukrainian five. Here's battling. Russian forces in

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Speaker 1: the tunnels beneath Maryuple's steel plant are refusing to surrender.

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Speaker 1: The battle is unfolding in the last Ukrainian stronghold of

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Speaker 1: the strategic ports city. The FDA has limited the use

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Speaker 1: of the Johnson and Johnson COVID vaccine to people eighteen

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Speaker 1: and older. It comes after an investigation of rare and

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Speaker 1: potentially deadly blood clots related to the J and J

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Speaker 1: single shot vaccine. In the NHL Playoffs, the Rangers beat

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Speaker 1: the Penguins five two to even their series at a

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Speaker 1: game of piece. The Capital's lost to the Panthers five one.

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Speaker 1: That series also even at a game of piece. In baseball,

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Speaker 1: the Mets one, scoring seven runs in the ninth against

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Speaker 1: the Phillies to win it. The Orioles one, the Red Sox,

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Speaker 1: Nationals and Giants lost. Global News twenty four hours a

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Speaker 1: day on here and on Bloomberg Quick Take Power by

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Speaker 1: more than twenty seven hundred journalists and analysts more than

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Speaker 1: a hundred twenty countries. Michael bar this is Bloomberg. Nathan

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Speaker 1: all right, Michael, thank you. It is five nineteen on

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Speaker 1: Wall Street Live from the Bloomberg Interactive Brokers studios. This

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Speaker 1: is Bloomberg Daybreak as we get ready to close out

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Speaker 1: a very volatile week for markets. Were joined this morning

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Speaker 1: by Ben Laidler, global market strategist at E Toro. Ben,

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Speaker 1: good morning. Of course, the old saying is it goes up,

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Speaker 1: must come down. But the down just doesn't show a

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Speaker 1: sign of stopping at least this morning. Where do you

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Speaker 1: see bottom? The risk of tempting providence. I don't think

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Speaker 1: we're far away. I mean so the market that fate

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Speaker 1: has markets and I really tight vice here by pushing

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Speaker 1: up interest rates, they're pushing down equity valuations, and they're

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Speaker 1: raising recession risks, and clearly that's a pretty toxic mix

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Speaker 1: for markets. But I think we're pretty close to sort

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Speaker 1: of peak fear here. We've got inflation running at eight

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Speaker 1: and a half percent, and we've got an inflation report

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Speaker 1: next week which I think is going to show a

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Speaker 1: fairly sharp deceleration inflation, and markets already expecting um interest

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Speaker 1: rates to go all the way up to three and

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Speaker 1: a half percent, which is very very aggressive. Um. And

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Speaker 1: we've got the job's report today which is probably going

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Speaker 1: to show the smallest number of new jobs in a year.

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Speaker 1: So I think the recipe or the way out of

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Speaker 1: this is but um, it all becomes sweetness and light overnight.

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Speaker 1: I think it just becomes a little bit less bad

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Speaker 1: because I think markets priced an awful lot in here.

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Speaker 1: So I'll be looking for the Job's report, I'll be

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Speaker 1: looking for inflation next week to be a little bit

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Speaker 1: less bad and to begin to show us some of

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Speaker 1: this relief from from markets are already very stressed. So

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Speaker 1: what do you make of the volatility that we've seen

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Speaker 1: just this week? Ben? As you mentioned, a lot of

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Speaker 1: the pricing had been placed in in terms of aggressive

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Speaker 1: rate hikes from the Fed. What do you make of

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Speaker 1: the reaction? I think it tells you how nervous markets are.

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Speaker 1: I think it tells you that we are in this

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Speaker 1: new investing world which people are still sort of grappling

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Speaker 1: with sort of higher interest rates, higher volatility, and lower

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Speaker 1: growth and and lower returns. This is very, very different

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Speaker 1: from the last few years. And I think to navigate

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Speaker 1: that investors need to own very different things from what

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Speaker 1: they've owned over the over the last few years. Um

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Speaker 1: and um. I think the rally on Wednesday was overdone. Uh.

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Speaker 1: And I would also just maybe look overseas in the

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Speaker 1: UK yesterday, I think, you know, by saying um, but

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Speaker 1: explicitly forecasting a stagflation regime of a recession by the

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Speaker 1: end of the year, and ten percent inflation is a

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Speaker 1: little bit the sort of everyone's worst nightmare. Uh. And

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Speaker 1: I think, um, you know, I had a disproportionate impact

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Speaker 1: for for worried investors. Well, let's stick into that a

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Speaker 1: little bit in terms of different things investors should own.

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Speaker 1: What are those different things? Is the Voltina era of

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Speaker 1: there is no alternative vistas over now, right, So what's

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Speaker 1: going on here? This is all about valuations. Earnings are

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Speaker 1: absolutely fine. We're seeing first quarter earnings right now. They're

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Speaker 1: up ten percent in the US, they're up thirty five

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Speaker 1: percent in Europe. That every single sector is beating expectations.

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Speaker 1: You know, we all know that a couple of big

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Speaker 1: stocks that have missed, but overall earnings are absolutely fine.

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Speaker 1: This is all about valuations. The higher interest rates go,

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Speaker 1: the higher bond yields go, the lower valuation become. So

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Speaker 1: you need to go where valuations are the lowest. That

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Speaker 1: protects you from these valuations falling. So that is energy,

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Speaker 1: financials defensives. It's not tech, and you need to go

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Speaker 1: where the earnings growth visibility is the highest. Who can

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Speaker 1: best navigate this environment of slowing growth and high inflation.

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Speaker 1: And that is a lot of these sort of traditional defensives,

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Speaker 1: the utilities, the consumer stables, the healthcare names. Again it's

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Speaker 1: it's probably not the tech names where you've made all

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Speaker 1: your money over the last few years. You got about

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Speaker 1: a minute left here. Ven. If we have tighter financial

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Speaker 1: conditions persisting, like we're seeing at least in this session,

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Speaker 1: how does that affect the FED going forward? Do we

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Speaker 1: continue with frontloaded interest rate hikes? So as I say

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Speaker 1: two things, One, the FED is is trying to catch up,

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Speaker 1: which is why we're seeing fifty basis points are you

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Speaker 1: know a meeting, But the tighter financial conditions are now

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Speaker 1: and they are tightening with the equity corre action with UM,

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Speaker 1: you know, positive real yields with five percent mortgage rights UM,

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Speaker 1: it means that the feed needs to do less of

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Speaker 1: the heavy lifting going forward. So painful as it, maybe

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Speaker 1: we should actually probably be welcoming tighter financial conditions now

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Speaker 1: rather than later. Great to get your thoughts this morning, Ben,

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Speaker 1: thanks for being with us. Ben Laidler, Global market strategist

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Speaker 1: at e Toro, looking ahead to the market open after

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Speaker 1: the big sell off yesterday, more selling expected today with

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Speaker 1: SMP futures down down twenty two points, Dow futures down

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Speaker 1: a hundred forty one, NASTAC futures are lowered by eighty

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Speaker 1: four points. The tenure Treasury is down ninety seconds now

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Speaker 1: with the yield three point zero seven percent, the yield

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Speaker 1: on the two year two point seven to straight ahead.

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Speaker 1: More on this market volatility, and we look ahead to

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Speaker 1: the April jobs report as we check your top stories

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Speaker 1: of the morning. On this Friday, you're listening to Bloomberg

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Speaker 1: Daybreak Bloomberg eleven three oh weather. Occasional rain with highs

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Speaker 1: in the low sixties today, will be in the low

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Speaker 1: fifties tomorrow, with rain continuing and more showers possible for

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Speaker 1: Mother's Day highs in the upper fifties. Right now fifty

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Speaker 1: eight in Central Park, broadcasting live from the Bloomberg Interactive

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Speaker 1: Broker Studio in New York. Bloomberg E Living Freelance to Washington,

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Speaker 1: d C, Bloomberg on to Boston, Bloomberg one O six

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Speaker 1: one to San Francisco, Bloomberg nine sixty to the Country,

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Speaker 1: Sirius XM, and around the go the Bloomberg Business and

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Speaker 1: Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five

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Speaker 1: thirty on Wall Street. Good morning. I'm Nathan Hager and

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Speaker 1: I'm Karen Moss. Guy are just about four hours away

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Speaker 1: from the open of US trading. Let's get you after

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Speaker 1: date on the news. You need to know what the

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Speaker 1: sour futures are lower this morning. After back to back

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Speaker 1: days of volatile trading, the market surged Wednesday after Chair J.

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Speaker 1: Powell said the Fed was not considering a seventy five

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Speaker 1: basis point hike. Then came yesterday sell off. The NASDAK

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Speaker 1: dropped five percent and the SMP five hundred slipped more

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Speaker 1: than three and a half percent, and investors today will

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Speaker 1: react to the April jobs report, Karen. The median forecast

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Speaker 1: is a gain of three and to eighty thousand non

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Speaker 1: farm payrolls into three and a half percent unemployment rate.

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Speaker 1: Megan Green is Global chief Economist at Kroll Or Importantly,

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Speaker 1: unemployment is probably going to take down even further, and crucially,

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Speaker 1: I think the participation rate will take up as workers

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Speaker 1: jumped back into the labor fourth. Kroll Global Chief Economist

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Speaker 1: Megan Green spoke with our Washington correspondent Joe Matthew on

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Speaker 1: Bloomberg Sound On. Catch the show weekdays at five pm

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Speaker 1: Eastern on Bloomberg Radio, and stick with the Bloomberg throughout

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Speaker 1: the morning for complete analysis of the job's reboard. Labor

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Speaker 1: Secretary Marty Walsh joins us at nine five am Wall

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Speaker 1: Street Time on both the Bloomberg Radio and television, turning

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Speaker 1: to the White Snow, Karen. President Biden met with a

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Speaker 1: group of labor organizers yesterday, including a former Amazon worker

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Speaker 1: who let it drive for a union on Staten Island.

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Speaker 1: Christian Small's spoke about the meeting with Bloomberg's Emily Chang.

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Speaker 1: You know it's great to see that he still recognizes that,

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Speaker 1: you know, we have to have some regulations with the

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Speaker 1: company and spars unionizing Former Amazon worker Christian Small speaking

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Speaker 1: with Emily Chang on Bloomberg Technology. That show airs weekdays

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Speaker 1: at five pm Eastern on Bloomberg Television, and it's available

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Speaker 1: as a podcast on Apple, Spotify and other platforms. Well.

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Speaker 1: Politics also in focus overseas, Nathan, First Lady Jill Biden.

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Speaker 1: We'll meet with US troops and displaced Ukrainian families in

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Speaker 1: Eastern Europe this weekend. In Ukraine, civilian evacuations or planned

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Speaker 1: from Mario pol As hold out fighters battle Russian forces

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Speaker 1: in the steel plant. And did covid news Karen. Another

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Speaker 1: blow to Johnson and Johnson's vaccine, US regulators are placing

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Speaker 1: limits on it. Bloomberg's Young joins US Live with that.

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Speaker 1: Good morning Gridita, Good morning Nathan. The f d A

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Speaker 1: is limiting the use of the J and J shots

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Speaker 1: to adults who for whom other vaccines are not medically

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Speaker 1: appropriate or available. The agency is also allowing those who

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Speaker 1: would otherwise not get immunized against the virus to take

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Speaker 1: the J and J single shot vaccine. The FDA made

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Speaker 1: the decision after investigating reported cases of blood clots and

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Speaker 1: people who had taken the shot live in New York.

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Speaker 1: I'm Renita Young, Bloomberg Daybreak, al right, Reneda, thank you,

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Speaker 1: and again futures are lower with SNP Future is down

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Speaker 1: about eighteen points down, Futures down a hundred seven and

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Speaker 1: downsday Future is down sixty eight. Sure to had your

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Speaker 1: latest local headlines plus a check of sports. And this

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Speaker 1: is Bloomberg. Thank you, Caring. It's three on Wall Street

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Speaker 1: or fifty eight degrees in Central Parking. Got multiple accidents

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Speaker 1: in the Bronx. Peter Van will have the details on

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Speaker 1: those for you. First. Michael Barr is here with what

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Speaker 1: else is going on in New York and around the world. Michael,

430
00:23:50,240 --> 00:23:52,360
Speaker 1: thank you very much. Nathan. It would be the largest

431
00:23:52,359 --> 00:23:55,399
Speaker 1: rent increase for New York City apartments in about ten years.

432
00:23:55,680 --> 00:23:58,879
Speaker 1: A preliminary vote by the New York City Rent Guidelines

433
00:23:58,960 --> 00:24:02,520
Speaker 1: Board last night for posed the hike for rent stabilized departments.

434
00:24:02,840 --> 00:24:05,960
Speaker 1: It proposed a rent increase of two to four percent

435
00:24:06,119 --> 00:24:09,480
Speaker 1: for one year leases and a four to six percent

436
00:24:09,600 --> 00:24:13,119
Speaker 1: increase for two year leases. Neither tenants nor landlords were

437
00:24:13,119 --> 00:24:16,040
Speaker 1: satisfied with the outcome. Tenants say it's too much. Landlords

438
00:24:16,080 --> 00:24:18,880
Speaker 1: say the heikes not enough. The final vote is expected

439
00:24:18,920 --> 00:24:22,119
Speaker 1: at the end of May. Connecticut Democratic Governor Net Lamot

440
00:24:22,200 --> 00:24:24,480
Speaker 1: signed a law designed to protect people who provide an

441
00:24:24,480 --> 00:24:27,960
Speaker 1: abortion and are then sued in another state. In the

442
00:24:28,040 --> 00:24:30,680
Speaker 1: Twitter message, Lamont says it was a bill he was

443
00:24:30,720 --> 00:24:32,840
Speaker 1: eager to sign. I think you've heard a lot about

444
00:24:32,840 --> 00:24:35,359
Speaker 1: what's coming out of the Supreme Court and a preliminary

445
00:24:35,480 --> 00:24:37,520
Speaker 1: ruling that looks like they may be on the edge

446
00:24:37,520 --> 00:24:40,800
Speaker 1: of a ending a woman's right to choose and ending

447
00:24:40,840 --> 00:24:43,159
Speaker 1: a Roe v. Wade. That's not going to happen the

448
00:24:43,200 --> 00:24:45,399
Speaker 1: state of Connecticut, not as long as I'm here. No

449
00:24:45,600 --> 00:24:48,520
Speaker 1: politicians are going to get between you and your doctor.

450
00:24:48,840 --> 00:24:51,240
Speaker 1: You make the choice. The law is set to take

451
00:24:51,280 --> 00:24:54,320
Speaker 1: effect on July one. The measure was prompted by a

452
00:24:54,400 --> 00:24:57,560
Speaker 1: law in Texas that allows private citizens to take civil

453
00:24:57,600 --> 00:25:01,480
Speaker 1: action to enforce its ban on a board. Karine Jean

454
00:25:01,520 --> 00:25:05,320
Speaker 1: Pierre will replace Jens Saki as White House Press Secretary,

455
00:25:05,520 --> 00:25:09,639
Speaker 1: becoming both the first black person and openly LGBTQ person

456
00:25:09,720 --> 00:25:13,960
Speaker 1: to hold the position. Jeanpierre currently is Saki's principal deputy.

457
00:25:14,280 --> 00:25:16,440
Speaker 1: Saki spoke at the top of the White House Press

458
00:25:16,480 --> 00:25:19,800
Speaker 1: briefing on Jean Pierre. I'm just so grateful to have

459
00:25:19,840 --> 00:25:22,560
Speaker 1: had Karin by my side um for this over the

460
00:25:22,640 --> 00:25:24,840
Speaker 1: last fifteen months, and I just can't wait to see

461
00:25:24,840 --> 00:25:29,000
Speaker 1: her shine at the podium. Jen Saki's last day is

462
00:25:29,040 --> 00:25:32,080
Speaker 1: May thirteenth. It is home, sweet home for the four

463
00:25:32,119 --> 00:25:35,679
Speaker 1: astronauts who spent six months orbiting the International Space Station.

464
00:25:36,080 --> 00:25:38,000
Speaker 1: It's been an absolute honor to support you on your

465
00:25:38,000 --> 00:25:41,639
Speaker 1: mission and durance crew, and thanks for flying SpaceX. The

466
00:25:41,720 --> 00:25:44,800
Speaker 1: crew aboard the SpaceX Dragon capsule splashed down in the

467
00:25:44,800 --> 00:25:48,040
Speaker 1: Gulf of Mexico, just off the Florida coast shortly after

468
00:25:48,080 --> 00:25:51,320
Speaker 1: midnight Eastern time. Global News twenty four hours a day

469
00:25:51,400 --> 00:25:54,479
Speaker 1: on air and on Bloomberg Quicktake, powered by more than

470
00:25:55,520 --> 00:25:58,600
Speaker 1: journalists and analysts more than a hundred twenty countries. Michael Barr,

471
00:25:58,680 --> 00:26:06,480
Speaker 1: this is Bloomberg NA. Thank you, Michael on Wall Street.

472
00:26:06,520 --> 00:26:08,919
Speaker 1: Here's John Stashower at the Bloomberg Sports Update. Thanks day.

473
00:26:09,080 --> 00:26:11,159
Speaker 1: And the Rangers were already having a strong season when

474
00:26:11,160 --> 00:26:13,440
Speaker 1: they acquired two players before the trade deadline, and last

475
00:26:13,520 --> 00:26:16,480
Speaker 1: night Andrew Cops scored the first goal. Frank Patronto the

476
00:26:16,560 --> 00:26:19,440
Speaker 1: last one. In between goals by Ryan Strom, Chris Cryder

477
00:26:19,480 --> 00:26:22,080
Speaker 1: and r Temi Panarin. Rangers came back from that triple

478
00:26:22,119 --> 00:26:24,800
Speaker 1: overtime loss in Game one, they beat the Penguins at

479
00:26:24,800 --> 00:26:27,320
Speaker 1: the Garden, five to two. The game was three periods,

480
00:26:27,359 --> 00:26:31,040
Speaker 1: not six, So Igor's hissterkan made thirty nine says, not

481
00:26:31,400 --> 00:26:33,280
Speaker 1: seventy nine like you had the other night. Game three

482
00:26:33,359 --> 00:26:36,280
Speaker 1: Tomorrow night in Pittsburgh, Colorado won in overtime for a

483
00:26:36,320 --> 00:26:40,280
Speaker 1: two nothing lead. On Nashville, Florida beat Washington. Dallas shutout Calgary.

484
00:26:40,280 --> 00:26:42,960
Speaker 1: Both those trees are now tighed at one. The last

485
00:26:43,040 --> 00:26:45,800
Speaker 1: eight hundred and fifty seven times in a Major League

486
00:26:45,800 --> 00:26:47,800
Speaker 1: team went to the ninth that am trailing by six

487
00:26:47,920 --> 00:26:50,840
Speaker 1: runs or more, their record was oh and eight hundred

488
00:26:50,880 --> 00:26:53,560
Speaker 1: and fifty seven. But the Mets did something they've done

489
00:26:53,560 --> 00:26:57,080
Speaker 1: only twice before, never since nineteen seven. They went to

490
00:26:57,119 --> 00:27:00,000
Speaker 1: the ninth trailing the Phillies seven to one, and they

491
00:27:00,000 --> 00:27:02,440
Speaker 1: towards seven runs on eight hits, and they want eight

492
00:27:02,480 --> 00:27:05,560
Speaker 1: to seven. Francisco Lindoor got things going with a two

493
00:27:05,640 --> 00:27:12,520
Speaker 1: run homer. Thank creat team win. Extremely special. UM the

494
00:27:12,600 --> 00:27:15,880
Speaker 1: way everybody believe in each other, UM push each other,

495
00:27:16,240 --> 00:27:20,080
Speaker 1: content on each other special for sure. Um, you know,

496
00:27:20,280 --> 00:27:22,720
Speaker 1: seeing wins like this, they out up throughout the course

497
00:27:22,720 --> 00:27:25,040
Speaker 1: of the year, and they're the huge and the huge

498
00:27:25,040 --> 00:27:27,720
Speaker 1: for World Club. Brandon Nimmos to run double tied the game.

499
00:27:27,840 --> 00:27:30,679
Speaker 1: Dimiodon scored the go ahead run on Starling Marte's second

500
00:27:30,720 --> 00:27:33,680
Speaker 1: hit of the inning. Fields manager Joe Girardi said later,

501
00:27:33,680 --> 00:27:35,840
Speaker 1: this is as tough as a kat Yankees winners of

502
00:27:35,880 --> 00:27:38,560
Speaker 1: eleven last twelve back home tonight they'll have Garrett Cole

503
00:27:38,600 --> 00:27:41,160
Speaker 1: on the mound against the Texas ring John Stash, However,

504
00:27:41,200 --> 00:27:44,480
Speaker 1: Bird Sports thanks John thirty seven on Wall Street Time

505
00:27:44,520 --> 00:27:47,679
Speaker 1: for the Tri State Business Report. Here's Bloomberg's at Corey

506
00:27:48,240 --> 00:27:51,280
Speaker 1: Jenna Bush Hagar, Today's show host and daughter of former

507
00:27:51,359 --> 00:27:54,520
Speaker 1: President George W. Bush is listing her New York City

508
00:27:54,560 --> 00:27:58,399
Speaker 1: apartment for five point four million dollars. The Tribeca condo,

509
00:27:58,520 --> 00:28:01,359
Speaker 1: in a boutique building with interior years designed by Annabel

510
00:28:01,480 --> 00:28:05,800
Speaker 1: Seldorff's firm, expands about hundred square feet with four bedrooms.

511
00:28:05,960 --> 00:28:08,840
Speaker 1: A beach front home in Southampton appraised at sixty three

512
00:28:08,840 --> 00:28:13,160
Speaker 1: million dollars. Half of the state marketed is Ludoon has

513
00:28:13,240 --> 00:28:16,880
Speaker 1: landed in bankruptcy court just days before a foreclosure auction.

514
00:28:17,240 --> 00:28:19,960
Speaker 1: The house at three sixties six Gin Lane is in

515
00:28:20,080 --> 00:28:23,800
Speaker 1: proceedings from an unpaid twenty six million dollar mortgage that

516
00:28:23,880 --> 00:28:27,680
Speaker 1: has ballooned to about forty million. City bikes next generation

517
00:28:27,760 --> 00:28:30,720
Speaker 1: electric models will start appearing in docks across the bike

518
00:28:30,760 --> 00:28:34,160
Speaker 1: sharing network this week, with a silver frame and an

519
00:28:34,280 --> 00:28:37,560
Speaker 1: LCD screen on the handlebars. The new bikes are a

520
00:28:37,600 --> 00:28:41,120
Speaker 1: noticeable upgrade from the standard cobalt blue two wheelers seen

521
00:28:41,160 --> 00:28:44,680
Speaker 1: on the city streets. That your Bloomberg Drying State Business Report.

522
00:28:44,800 --> 00:28:48,600
Speaker 1: My did Corey, Thanks on Wall Street. Bloomberg Radio is

523
00:28:48,640 --> 00:28:51,000
Speaker 1: on the air from San Francisco to New York, London

524
00:28:51,040 --> 00:28:53,480
Speaker 1: to Hong Kong. Let's check in with our global news

525
00:28:53,480 --> 00:28:55,160
Speaker 1: team for some of the top stories heard on our

526
00:28:55,200 --> 00:29:01,520
Speaker 1: three hundred affiliate radio stations around the world. I'm Steve

527
00:29:01,600 --> 00:29:05,200
Speaker 1: Potas Contenson Wins in New York. We're talking about how

528
00:29:05,240 --> 00:29:08,240
Speaker 1: many new hires simply never show up for the first

529
00:29:08,280 --> 00:29:12,840
Speaker 1: day of work. I'm Cornitannahoe on Cafeabian Omaha Global Food Prices,

530
00:29:12,880 --> 00:29:15,760
Speaker 1: holding your record on the war new Grand One. Gina

531
00:29:15,840 --> 00:29:19,160
Speaker 1: Servettian for Double New BB. I'm in Chicago. I'm reporting

532
00:29:19,160 --> 00:29:22,640
Speaker 1: the Boeing plans to relocate its headquarters from Chicago to

533
00:29:22,680 --> 00:29:26,120
Speaker 1: the Washington, D C. Area. I'm callin head Comboe mcdaby

534
00:29:26,200 --> 00:29:29,600
Speaker 1: Digital Radio in London. We're reporting all Conservatives losing key

535
00:29:29,680 --> 00:29:33,560
Speaker 1: council's in Wodsworth and Bonnet in local elections after the

536
00:29:33,600 --> 00:29:37,040
Speaker 1: toy scandal of a party gate the cossive Living Cross.

537
00:29:37,440 --> 00:29:40,520
Speaker 1: I'm in Gory on w w J in Detroit. I'm

538
00:29:40,560 --> 00:29:42,840
Speaker 1: reporting Michigan is still in the running for a new

539
00:29:42,880 --> 00:29:46,840
Speaker 1: Stonlands electric vehicle battery plan. And those are some of

540
00:29:46,840 --> 00:29:49,880
Speaker 1: the stories our twenty seven hundred Bloomberg journalists and analysts

541
00:29:49,880 --> 00:29:52,200
Speaker 1: are working on this morning around the world. It's five

542
00:29:52,280 --> 00:29:55,480
Speaker 1: thirty nine on Wall Street. The following is an editorial

543
00:29:55,600 --> 00:29:59,920
Speaker 1: from Bloomberg Opinion. Much as expected, the Federal Reserve recently

544
00:30:00,080 --> 00:30:03,000
Speaker 1: raised its policy interest rate by half a percentage point.

545
00:30:03,080 --> 00:30:06,520
Speaker 1: With inflation high, the move makes sense. However, the Fed

546
00:30:06,640 --> 00:30:10,560
Speaker 1: needs to improve its messaging. Specifically, it should clarify its

547
00:30:10,560 --> 00:30:14,200
Speaker 1: position on the neutral rate of interest, which is rapidly

548
00:30:14,240 --> 00:30:18,520
Speaker 1: becoming investors new fixation. The Central Bank's current ambiguous approach

549
00:30:18,600 --> 00:30:22,040
Speaker 1: has invited confusion and led some observers to believe the

550
00:30:22,040 --> 00:30:26,320
Speaker 1: Fed has an arbitrary endpoint for interest rates. It doesn't

551
00:30:26,760 --> 00:30:30,080
Speaker 1: or anyway shouldn't. Rates should be adjusted to keep demand

552
00:30:30,120 --> 00:30:34,560
Speaker 1: on track. Changing conditions will dictate what that requires. The

553
00:30:34,640 --> 00:30:37,520
Speaker 1: FED will need luck as well as skill to engineer

554
00:30:37,560 --> 00:30:39,760
Speaker 1: a soft landing, but its job would be a bit

555
00:30:39,800 --> 00:30:44,520
Speaker 1: easier if it directed investors attention away from imaginary targets

556
00:30:44,560 --> 00:30:47,920
Speaker 1: and towards what's actually happening to the economy. This editorial

557
00:30:47,920 --> 00:30:51,400
Speaker 1: was written by the Bloomberg Opinion Editorial Board. I'm David Shipley.

558
00:30:51,440 --> 00:30:53,920
Speaker 1: For more Bloomberg opinion, please go to Bloomberg dot com,

559
00:30:54,040 --> 00:30:57,520
Speaker 1: slash Opinion or opian. Go on the Bloomberg terminal. This

560
00:30:57,760 --> 00:31:00,600
Speaker 1: has been Bloomberg Opinion. You can hear the Boberg opinion

561
00:31:00,680 --> 00:31:03,720
Speaker 1: editorials every weekday. At this time, terminal customers can read

562
00:31:03,760 --> 00:31:07,080
Speaker 1: more at O P I n GO. Futures moving lower

563
00:31:07,120 --> 00:31:10,440
Speaker 1: with SMP futures down fifteen points, now Town futures down

564
00:31:10,440 --> 00:31:13,080
Speaker 1: eighty four, NAST deck futures lower by sixty points. The

565
00:31:13,120 --> 00:31:16,480
Speaker 1: tenure treasury is down ten thirty seconds, the yield three

566
00:31:16,560 --> 00:31:23,840
Speaker 1: point zero seven percent. This is Bloomberg Bloomberg eleven three

567
00:31:23,840 --> 00:31:26,320
Speaker 1: oh weather. Occasional rain today with highs in the low sixties.

568
00:31:26,360 --> 00:31:29,280
Speaker 1: The rain continues tomorrow low fifties for highs will be

569
00:31:29,320 --> 00:31:32,040
Speaker 1: in the upper fifties from Mother's Day with more showers

570
00:31:32,880 --> 00:31:38,400
Speaker 1: Right now fifty eight in Central Park Markets, headlines and

571
00:31:38,560 --> 00:31:41,840
Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com,

572
00:31:41,960 --> 00:31:45,560
Speaker 1: the Bloomberg Business at and at Bloomberg Quick Takes a

573
00:31:45,600 --> 00:31:54,760
Speaker 1: Bloomberg Business Flash and I'm Karen Moscow. And stocks are

574
00:31:54,760 --> 00:31:58,840
Speaker 1: sliding with bonds and the dollar is rising as inflation rising,

575
00:31:58,880 --> 00:32:03,640
Speaker 1: Borrowing costs in China's COVID lockdown suppress sentiment. European stocks

576
00:32:03,680 --> 00:32:06,800
Speaker 1: extending their losses. They're falling more than one percent and

577
00:32:06,840 --> 00:32:09,560
Speaker 1: set for the worst weekly drop in two months. US

578
00:32:09,640 --> 00:32:11,880
Speaker 1: futures are lower this after the S and P five

579
00:32:11,960 --> 00:32:14,360
Speaker 1: hundred fould more than three and a half percent yesterday

580
00:32:14,360 --> 00:32:17,080
Speaker 1: and the NAVSDAC lost five percent. We checked the markets

581
00:32:17,080 --> 00:32:20,360
Speaker 1: every fifteen minutes throughout the trading day. On Bloomberg, SMP

582
00:32:20,520 --> 00:32:23,240
Speaker 1: future is down about ten points down, futures down forty nine,

583
00:32:23,320 --> 00:32:26,080
Speaker 1: NAS day futures down forty three. The decks in Germany's

584
00:32:26,120 --> 00:32:29,280
Speaker 1: down one percent, ten year treasury down ten thirty seconds,

585
00:32:29,280 --> 00:32:31,560
Speaker 1: held three point oh seven percent yield on the two

586
00:32:31,640 --> 00:32:34,800
Speaker 1: year two point seven three percent. Nine X screwed oil

587
00:32:34,960 --> 00:32:37,280
Speaker 1: is up two percent of two dollars nineteen cents at

588
00:32:37,280 --> 00:32:40,040
Speaker 1: a hundred ten dollars, forty six cents of Barrel Comic

589
00:32:40,040 --> 00:32:41,600
Speaker 1: School at the third of e per cent, or six

590
00:32:41,640 --> 00:32:44,480
Speaker 1: dollars thirty cents at eighteen eighty two an ounce. The

591
00:32:44,560 --> 00:32:47,160
Speaker 1: Euro one point five six eight against the dollar, British

592
00:32:47,160 --> 00:32:49,520
Speaker 1: found one point two three three five, the UN at

593
00:32:49,520 --> 00:32:53,960
Speaker 1: one thirty point five four and Bitcoin this morning it's lower,

594
00:32:54,080 --> 00:32:56,960
Speaker 1: down about a quarter percent at thirty six thousand, three

595
00:32:57,000 --> 00:33:00,200
Speaker 1: hundred sixty dollars. That's a Bloomberg business flash. Now there's

596
00:33:00,240 --> 00:33:02,520
Speaker 1: Michael Barr with more on what's going on around the world.

597
00:33:02,640 --> 00:33:06,360
Speaker 1: Michael Karen, thank you very much. The nine Supreme Court

598
00:33:06,480 --> 00:33:09,959
Speaker 1: justices have been given extra security as general threats against

599
00:33:10,000 --> 00:33:13,080
Speaker 1: them have increased. It comes just a few days after

600
00:33:13,120 --> 00:33:17,760
Speaker 1: political reported elite draft opinion showing the Conservative majority is

601
00:33:17,880 --> 00:33:21,080
Speaker 1: likely going to overturn Roe v. Wade. The office of

602
00:33:21,200 --> 00:33:25,040
Speaker 1: Ukraine's president says about five hundred civilians from Maruple were

603
00:33:25,080 --> 00:33:28,360
Speaker 1: evacuated in the most recent operations organized by the u

604
00:33:28,520 --> 00:33:31,800
Speaker 1: N and Red Cross. In the NHL playoffs, the Rangers

605
00:33:31,840 --> 00:33:34,320
Speaker 1: beat the Penguins five two to even their series. At

606
00:33:34,360 --> 00:33:36,960
Speaker 1: the Game of Peace. The Capital's lost to the Panthers.

607
00:33:37,000 --> 00:33:40,000
Speaker 1: That series also even at a Game of peace. In baseball,

608
00:33:40,280 --> 00:33:43,680
Speaker 1: the met Scenarios won, the Red Sox, Nationals and Giants lost.

609
00:33:43,920 --> 00:33:46,600
Speaker 1: Global News twenty four hours a day on air and

610
00:33:46,800 --> 00:33:50,280
Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred

611
00:33:50,320 --> 00:33:53,000
Speaker 1: journalists and analyst and more than a hundred twenty countries

612
00:33:53,040 --> 00:33:55,560
Speaker 1: on Michael Barr, This is Bloomberg. Nathan alright, Michael, Thanks,

613
00:33:55,560 --> 00:33:58,560
Speaker 1: It's nine on Wall Street. Line from the Bloomberg Interacted

614
00:33:58,600 --> 00:34:02,880
Speaker 1: Broker Studios. This is Bloomberg Daybreak on this Jobs Friday.

615
00:34:03,000 --> 00:34:05,240
Speaker 1: We are less than three hours away from getting the

616
00:34:05,240 --> 00:34:08,440
Speaker 1: April payrolls report. It's got a preview now. Sarah House

617
00:34:08,600 --> 00:34:12,000
Speaker 1: is with us this morning, senior economist at Wells Fargo. Sarah,

618
00:34:12,000 --> 00:34:14,719
Speaker 1: good to speak with you. The median estimate is three

619
00:34:15,040 --> 00:34:17,520
Speaker 1: eight thousand new payrolls and a three and a half

620
00:34:17,600 --> 00:34:21,080
Speaker 1: percent unemployment rate. The FEDS called this an ultra tight

621
00:34:21,160 --> 00:34:24,359
Speaker 1: labor market. How do you see it? I think every

622
00:34:24,360 --> 00:34:27,399
Speaker 1: way you look at it, this labor market is exceptionally tight,

623
00:34:27,440 --> 00:34:30,000
Speaker 1: and I think we'll see further evidence of that in

624
00:34:30,080 --> 00:34:34,239
Speaker 1: today's payroll report, so we're expecting a below consensus gain

625
00:34:34,239 --> 00:34:36,560
Speaker 1: in terms in terms of non borne payroll, so just

626
00:34:36,600 --> 00:34:38,960
Speaker 1: three dred thousand, but I think that's still gonna be

627
00:34:39,120 --> 00:34:42,359
Speaker 1: enough to see the unemployment rate ticked down to three

628
00:34:42,360 --> 00:34:45,600
Speaker 1: point five percent. And then I think probably most importantly

629
00:34:45,719 --> 00:34:48,880
Speaker 1: is what happens with wages, just given the inflation pressures

630
00:34:48,920 --> 00:34:51,720
Speaker 1: that we're seen in the economy, and there we expect

631
00:34:52,040 --> 00:34:54,520
Speaker 1: another decent gain of zero point four percent, which is

632
00:34:54,560 --> 00:34:57,080
Speaker 1: going to keep the pressure on for for the FED

633
00:34:57,320 --> 00:34:59,720
Speaker 1: UM when it looks at how tight that labor market

634
00:34:59,800 --> 00:35:02,640
Speaker 1: is in what it means for its price stability mandate, Well,

635
00:35:02,680 --> 00:35:05,479
Speaker 1: where do you see the unemployment rate going from here?

636
00:35:05,640 --> 00:35:08,640
Speaker 1: Is their further room for this unemployment rate to fall

637
00:35:08,760 --> 00:35:13,000
Speaker 1: even more. There's absolutely further room for it to fall further.

638
00:35:13,440 --> 00:35:15,120
Speaker 1: So we're expecting at the end of the year it

639
00:35:15,120 --> 00:35:18,279
Speaker 1: will probably be roughly three point three percent, and there's

640
00:35:18,280 --> 00:35:21,319
Speaker 1: potentially even some downside risk to that depending on what

641
00:35:21,480 --> 00:35:25,040
Speaker 1: happens on on the supply side. So we've seen the

642
00:35:25,120 --> 00:35:29,360
Speaker 1: labor force exxits retirement age workers have proved very sticky.

643
00:35:29,760 --> 00:35:31,680
Speaker 1: Now some of those have been pulled forward, so that

644
00:35:31,760 --> 00:35:34,680
Speaker 1: should help participation for for that age group. But when

645
00:35:34,719 --> 00:35:37,560
Speaker 1: you couple that with just this year demographics of the US,

646
00:35:37,640 --> 00:35:41,480
Speaker 1: the fact that primate labor force growth is substantially slower.

647
00:35:41,960 --> 00:35:44,400
Speaker 1: Given this level of demand for workers, we think that

648
00:35:44,440 --> 00:35:48,040
Speaker 1: the unemployment rate can certainly move lower and hit UH

649
00:35:48,080 --> 00:35:50,680
Speaker 1: and hit levels that we haven't seen in more than

650
00:35:50,719 --> 00:35:54,800
Speaker 1: fifty years, which potentially feeds into the case for higher

651
00:35:54,800 --> 00:35:57,960
Speaker 1: wage pressures. Where do you see those going and what

652
00:35:58,080 --> 00:36:00,440
Speaker 1: does it mean for the FEDS fight against in plation.

653
00:36:01,480 --> 00:36:03,959
Speaker 1: So we think wage pressures are going to remain very

654
00:36:04,000 --> 00:36:08,239
Speaker 1: strong overall, continuing to pressure the Fed on on its

655
00:36:08,280 --> 00:36:12,160
Speaker 1: inflation mandate. But we do see some signs of maybe

656
00:36:12,520 --> 00:36:14,920
Speaker 1: wages starting to moderate a little bit. So if you

657
00:36:14,920 --> 00:36:16,960
Speaker 1: look at the n f i B Small Business High

658
00:36:17,200 --> 00:36:21,160
Speaker 1: Small Business Survey, we've seen compensation plans have have come

659
00:36:21,200 --> 00:36:24,640
Speaker 1: down over the past few months. And when you look

660
00:36:24,719 --> 00:36:27,759
Speaker 1: at even some of the indicators of job demands or

661
00:36:27,800 --> 00:36:31,799
Speaker 1: things like the job openings rate, indeed job postings, we

662
00:36:31,920 --> 00:36:35,359
Speaker 1: have seen those flattened out of it. So still exceptionally high,

663
00:36:35,520 --> 00:36:38,359
Speaker 1: but no longer rising as quickly as it was at

664
00:36:38,360 --> 00:36:40,120
Speaker 1: the end of last year. And so I think that

665
00:36:40,200 --> 00:36:42,839
Speaker 1: does suggest that we are seeing a little bit better

666
00:36:42,880 --> 00:36:45,520
Speaker 1: balance between supply and demand in the labor market, and

667
00:36:45,600 --> 00:36:47,319
Speaker 1: we think that's going to take a little bit of

668
00:36:47,360 --> 00:36:50,560
Speaker 1: the heat off of wages. But you know, don't confuse

669
00:36:50,640 --> 00:36:53,680
Speaker 1: that with wage growth getting back down two levels that

670
00:36:53,760 --> 00:36:57,000
Speaker 1: are consistent with two percent inflation anytime soon. Is that

671
00:36:57,080 --> 00:36:59,719
Speaker 1: case going to take the heat off the FEDS tightening path.

672
00:37:01,239 --> 00:37:04,359
Speaker 1: I don't think so. I think it will maybe help

673
00:37:04,440 --> 00:37:07,640
Speaker 1: them um from having to go even more hawkish in

674
00:37:07,760 --> 00:37:11,000
Speaker 1: terms of their outlook and their tight name plans, but

675
00:37:11,160 --> 00:37:13,720
Speaker 1: I think it still keeps them on this very hawkish

676
00:37:13,719 --> 00:37:17,080
Speaker 1: path where we're not done seeing fifty basis point rate

677
00:37:17,120 --> 00:37:20,600
Speaker 1: height anytime soon. So do you think the Fed is

678
00:37:20,960 --> 00:37:24,879
Speaker 1: sacrificing the backsman of employment mandate to tackle inflation or two?

679
00:37:24,880 --> 00:37:28,640
Speaker 1: The two go together, and you absolutely go together. Given

680
00:37:28,680 --> 00:37:32,000
Speaker 1: that we again we have this very tight labor market

681
00:37:32,200 --> 00:37:36,520
Speaker 1: and we are seeing very strong wage pressures coming from

682
00:37:36,640 --> 00:37:39,840
Speaker 1: the labor market that is feeding inflation and is and

683
00:37:40,000 --> 00:37:43,239
Speaker 1: is bringing a more persistent source of inflation beyond just

684
00:37:43,280 --> 00:37:46,360
Speaker 1: the supply shocks and some of the pandemic distortions related

685
00:37:46,640 --> 00:37:49,759
Speaker 1: to just spending patterns, and so you know, pals in

686
00:37:49,840 --> 00:37:53,120
Speaker 1: some ways he's tiptoed around it a little bit, but

687
00:37:53,200 --> 00:37:56,120
Speaker 1: they do need to see I think the labor market

688
00:37:56,239 --> 00:37:58,880
Speaker 1: and job growth weaken to an extent to relieve some

689
00:37:58,920 --> 00:38:01,800
Speaker 1: of those wage pressures to help on its price stability mandate.

690
00:38:02,400 --> 00:38:05,520
Speaker 1: So in the last thirty seconds here, where do you

691
00:38:05,560 --> 00:38:09,080
Speaker 1: see this April jobs report having any impact on what

692
00:38:09,200 --> 00:38:11,520
Speaker 1: the Fed does? From here? Does this one report have

693
00:38:11,760 --> 00:38:16,719
Speaker 1: any impact? So? I think overall it will determine the

694
00:38:16,760 --> 00:38:20,040
Speaker 1: direction and help in with health fast the Fed has

695
00:38:20,080 --> 00:38:22,840
Speaker 1: to go. But I don't think that this really knocks

696
00:38:22,920 --> 00:38:26,200
Speaker 1: them off course of what they've telegraphed for the near term.

697
00:38:26,320 --> 00:38:28,319
Speaker 1: So I think it's one piece, but I think we're

698
00:38:28,320 --> 00:38:31,160
Speaker 1: still looking at another fifty basis point hike at the

699
00:38:31,239 --> 00:38:34,560
Speaker 1: June meeting, and quite possibly another one in July as well.

700
00:38:34,880 --> 00:38:37,160
Speaker 1: Thanks for the Sarah, good having you on with a Sarehouse,

701
00:38:37,600 --> 00:38:42,319
Speaker 1: senior economist at Wells Fargo, Karen ry Nathan, thank you,

702
00:38:42,480 --> 00:38:45,319
Speaker 1: And on just five fifty three on Wall Street, it's

703
00:38:45,360 --> 00:38:48,720
Speaker 1: time for another legal story. We're launching this morning elite

704
00:38:48,800 --> 00:38:52,040
Speaker 1: first draft of a majority Supreme Court at pinion overturning

705
00:38:52,120 --> 00:38:54,839
Speaker 1: Roe v. Wade and a women's constitutional right to an

706
00:38:54,840 --> 00:38:59,719
Speaker 1: abortion has progressives fearing the conservative majority could use the

707
00:38:59,760 --> 00:39:04,040
Speaker 1: same reasoning to target LGBTQ contraceptive in other rights. The

708
00:39:04,080 --> 00:39:07,239
Speaker 1: opinion's disapproval of a broad understanding of a constitutional right

709
00:39:07,320 --> 00:39:10,880
Speaker 1: to privacy makes a host of other rights, from sexual relations,

710
00:39:10,880 --> 00:39:14,880
Speaker 1: to marriage to procreation vulnerable. For more, Bloombergh and Grasso

711
00:39:15,000 --> 00:39:18,120
Speaker 1: speaks to Stephen Vadeka, professor at the University of Texas

712
00:39:18,200 --> 00:39:22,279
Speaker 1: Law School. A leader attempts to distinguish abortion from other

713
00:39:22,400 --> 00:39:26,160
Speaker 1: rights grounded in the constitutional right to privacy, but does

714
00:39:26,239 --> 00:39:31,240
Speaker 1: his reasoning jeopardize other protections that are not quote, deeply

715
00:39:31,360 --> 00:39:34,880
Speaker 1: rooted in this nation's history and tradition. Yeah, this is

716
00:39:34,880 --> 00:39:37,360
Speaker 1: the problem. Yes, the leader says, I'm only talking about abortion,

717
00:39:37,480 --> 00:39:41,000
Speaker 1: But the grounds that he deploys for justifying the overruling

718
00:39:41,160 --> 00:39:44,240
Speaker 1: rowing Casey are grounds that are not limited to abortion.

719
00:39:44,400 --> 00:39:46,160
Speaker 1: And this notion that you know, rights have to be

720
00:39:46,239 --> 00:39:48,760
Speaker 1: deeply rooted in our history and tradition to be recognized

721
00:39:48,760 --> 00:39:51,160
Speaker 1: by the Supreme Court would call into question a whole

722
00:39:51,200 --> 00:39:53,840
Speaker 1: lot of things that Aldo says he's not calling into question,

723
00:39:53,960 --> 00:39:57,680
Speaker 1: things like bands on interracial marriage, bands on same sex marriage,

724
00:39:57,680 --> 00:40:00,800
Speaker 1: bands on homosexual ptodomy. I mean, there's a lot June

725
00:40:00,880 --> 00:40:04,080
Speaker 1: here that if you take the reasoning seriously as opposed

726
00:40:04,120 --> 00:40:07,000
Speaker 1: to the rhetoric, could be vulnerable. Now that doesn't mean that,

727
00:40:07,080 --> 00:40:09,000
Speaker 1: like overnight, you know, the Supreme Court is going to

728
00:40:09,080 --> 00:40:11,560
Speaker 1: start overruling those cases too. You'd have to have first

729
00:40:11,680 --> 00:40:15,200
Speaker 1: states tried to scale back these protections that try to

730
00:40:15,239 --> 00:40:18,200
Speaker 1: sort of restore bans on certain kinds of intimate conduct

731
00:40:18,360 --> 00:40:22,200
Speaker 1: or gay marriage. But you know, June, I live in Texas, UM,

732
00:40:22,320 --> 00:40:25,759
Speaker 1: it's not hard to imagine elected officials in states like

733
00:40:25,880 --> 00:40:27,920
Speaker 1: mine that are going to be pretty aggressive. I mean,

734
00:40:28,000 --> 00:40:31,000
Speaker 1: just the other day Governor Abbott, right, Texas As Governor,

735
00:40:31,360 --> 00:40:33,560
Speaker 1: talked about trying to push the Supreme Court to revisit

736
00:40:33,600 --> 00:40:36,920
Speaker 1: the N two decision recognize them the right of the

737
00:40:37,040 --> 00:40:39,960
Speaker 1: children of undocumented immigrants to go to public school. So

738
00:40:40,280 --> 00:40:44,360
Speaker 1: it's really hard to take seriously the protestations in the

739
00:40:44,440 --> 00:40:47,239
Speaker 1: draft opinion and then by by some who are defending it,

740
00:40:47,360 --> 00:40:49,920
Speaker 1: that this is only going to be about abortion. Once

741
00:40:50,000 --> 00:40:52,600
Speaker 1: you've crossed the rubicon, once you've shown that you're willing

742
00:40:52,680 --> 00:40:56,759
Speaker 1: to overrule cases like Rowan Casey simply because you don't

743
00:40:56,800 --> 00:40:59,760
Speaker 1: believe those rights are deeply rooted in our country's history.

744
00:40:59,840 --> 00:41:02,000
Speaker 1: I don't know what the stocking point is other June

745
00:41:02,000 --> 00:41:05,759
Speaker 1: than politics. What's the next battle line. Some are saying

746
00:41:05,800 --> 00:41:09,759
Speaker 1: that medication abortion would be the next battleground. Well, I mean,

747
00:41:09,800 --> 00:41:11,719
Speaker 1: I think we're going to see multiple battlegrounds at once.

748
00:41:11,840 --> 00:41:14,279
Speaker 1: Medication abortion is going to be one front in the war.

749
00:41:14,400 --> 00:41:16,520
Speaker 1: I think we're gonna see states try to make it

750
00:41:16,640 --> 00:41:19,640
Speaker 1: unlawful for their residents to travel out of states to

751
00:41:19,719 --> 00:41:21,919
Speaker 1: obtain abortion, so that we're going to have a fight

752
00:41:21,960 --> 00:41:25,200
Speaker 1: over whether states can limit their own residents from leaving

753
00:41:25,239 --> 00:41:27,120
Speaker 1: the state to go to states that will still have

754
00:41:27,160 --> 00:41:29,799
Speaker 1: abortions after this decision, and so on the abortion front,

755
00:41:29,800 --> 00:41:32,000
Speaker 1: I think that's where the fight will be joined. But

756
00:41:32,040 --> 00:41:33,520
Speaker 1: I also think, because you know we talked about with

757
00:41:33,520 --> 00:41:35,719
Speaker 1: regards the Governor Abbott, we're going to see efforts by

758
00:41:35,760 --> 00:41:38,680
Speaker 1: other especially red states, to push the envelope and to

759
00:41:38,760 --> 00:41:41,080
Speaker 1: see what other rights the Court is willing to reconsider.

760
00:41:41,320 --> 00:41:45,239
Speaker 1: Because the one undeniable thing about a ruling like the

761
00:41:45,320 --> 00:41:47,359
Speaker 1: draft opinion, if that becomes the law of the land,

762
00:41:47,560 --> 00:41:50,000
Speaker 1: is it's basically an invitation to court and to state

763
00:41:50,080 --> 00:41:53,080
Speaker 1: to be cynical and to be political and to push

764
00:41:53,160 --> 00:41:55,239
Speaker 1: the court to actually revisit these rights one at a

765
00:41:55,320 --> 00:41:57,279
Speaker 1: time in a way that would not have been true

766
00:41:57,280 --> 00:42:00,400
Speaker 1: without this kind of decision, and that Stephen Vladdoup, professor

767
00:42:00,400 --> 00:42:02,759
Speaker 1: at the University of Texas Law School, speaking with the

768
00:42:02,760 --> 00:42:06,480
Speaker 1: Bloomberg student Grosso. Catch more of that interview, plus analysis

769
00:42:06,480 --> 00:42:09,080
Speaker 1: of the latest legal news, by subscribing to the Bloomberg

770
00:42:09,120 --> 00:42:12,399
Speaker 1: Law Podcast or downloading the show at Bloomberg dot com

771
00:42:12,440 --> 00:42:16,160
Speaker 1: slash podcasts. Attorneys can find exceptional legal research and business

772
00:42:16,200 --> 00:42:18,680
Speaker 1: development tools at Bloomberg Law dot com and on the

773
00:42:18,680 --> 00:42:22,640
Speaker 1: Bloomberg terminal at b Law. Go again. Future is lower

774
00:42:22,719 --> 00:42:25,000
Speaker 1: this morning. S and P Future is down about ten

775
00:42:25,040 --> 00:42:28,160
Speaker 1: points and down. Futures down forty five, nowsday futures down

776
00:42:28,200 --> 00:42:31,320
Speaker 1: forty six and the ten year treasury down nineties seconds.

777
00:42:31,320 --> 00:42:33,680
Speaker 1: You three point oh seven percent. They yield on the

778
00:42:33,719 --> 00:42:38,800
Speaker 1: two year two point seven to two percent and still ahead.

779
00:42:38,880 --> 00:42:41,080
Speaker 1: On Bloomberg day Break, we have a check on the

780
00:42:41,080 --> 00:42:43,760
Speaker 1: business headlines and all the news you need to start

781
00:42:43,840 --> 00:42:46,200
Speaker 1: your day, and this is Bloomberg