Speaker 1: Live from the Bloomberg Interactive Burger Studios. This is Bloomberg
Speaker 1: day Break for Thursday, June two. Coming up the shower.
Speaker 1: It is day two of congressional testimony for FED Chair J. Powell.
Speaker 1: Reaction pours into President Biden's proposed gas tax holiday. European
Speaker 1: Union leaders plan to grant candidates status to Ukraine, and
Speaker 1: the FED gets set to release the results of its
Speaker 1: bank stress tests. The Uvaldi school police chief has been
Speaker 1: placed on leave after last month's smash shooting. Plus prosecutors
Speaker 1: say Glene Maxwell to get thirty years in prison. On
Speaker 1: Michael blarm More Ahead, I'm John Stas Sharon Sports comeback
Speaker 1: win for the Yankees, loss with the Mats in Colorado,
Speaker 1: be Tampa Bay, and overtime at the Stanley Cup Final.
Speaker 1: That's all s train ahead on Bloomberg Daybreak on Bloomberg
Speaker 1: eleven three, on New York, Bloomberg ninety nine one, Washington
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine
Speaker 1: sixties and Francisco Sirius x M one nine team and
Speaker 1: around the world on Bloomberg Radio dot Com and via
Speaker 1: the Bloomberg Business Up. Good morning, I'm Nathan Haggard and
Speaker 1: I'm Karen Moscow and ust Dock Index futures are mixed
Speaker 1: this morning, coming up to five o one on Wall Street,
Speaker 1: and we check the markets every fifteen minutes throughout the
Speaker 1: trading day. On Bloomberg. SNP futures down six points down,
Speaker 1: futures down a hundred four Nastack futures higher up, twenty
Speaker 1: three ten year Treasury up fifteen thirty seconds the three
Speaker 1: point oh nine percent, and a yield on the two
Speaker 1: year three point oh one per cent. Nathan, Karen, we
Speaker 1: begin this morning with day two of congressional testimony from j. Powell.
Speaker 1: This morning, the Fed Chair appears before the House Financial
Speaker 1: Services Committee, But yesterday was Pal's most explicit acknowledgement yet
Speaker 1: that raising interest rates could lead to a recession. It's
Speaker 1: not our intended outcome at all, but it's certainly a
Speaker 1: possibility and and frankly, the events of the last few
Speaker 1: months around the world have have have made it more
Speaker 1: difficult for us to achieve what we want, which is
Speaker 1: two percent inflation and still a strong labor market. Powell
Speaker 1: told the Senate Banking Committee the economy is well positioned
Speaker 1: to handle tighter monetary policy. Meantime, Former New York Fed
Speaker 1: President and current Bloomberg opinion columnist Bill Dudley says the
Speaker 1: recession is inevitable within the next twelve to eighteen months.
Speaker 1: I would expect a mild recession like or or two
Speaker 1: thousand and one, not the deep recession like seventy three,
Speaker 1: seventy four, or of course the Great Financial Crisis. Former
Speaker 1: New York Fed President Bill Dudley made those comments on
Speaker 1: Bloomberg Surveillance Catch the program weekdays at seven am Wall
Speaker 1: Street Time on Bloomberg Radio and television. Well Nathan Stocks
Speaker 1: gave up early gains on Powell's recession comments. The market
Speaker 1: veteran Abby Joseph Cohen says, the era of everything going
Speaker 1: up is now over. I think we're now back into
Speaker 1: a period in which it does matter where it's the
Speaker 1: fundamentals of earnings, the fundamentals of margins, the fundamentals of inflation,
Speaker 1: interest rates, and putting that all together in terms of
Speaker 1: appropriate valuation models that will make a big difference for
Speaker 1: investors going forward. Abby Joseph Cohen, who was a former
Speaker 1: senior investment strategist at Goldman Sachs, believes a mild recession
Speaker 1: as being priced into markets. Well, crude oil is taking
Speaker 1: a leg lower care and is concern over global economic
Speaker 1: slowdown intensifies, checking prices Downimex crudes down two dollars fifty
Speaker 1: cents at a hundred three dollars sixty nine cents of barrel.
Speaker 1: President Biden's continuing his push to ease gas prices. It's
Speaker 1: got the latest on that life from Bloomberg's rined A Young.
Speaker 1: Good morning, Nita, Nathan, good morning. President Biden is running
Speaker 1: out of options to ease prices at the pump, and
Speaker 1: in his latest action, he proposes a three month gas
Speaker 1: tax holiday. I suspending the eighteen cent gas tax federal
Speaker 1: gas tax for the next ninety days. We can bring
Speaker 1: down the price of gas and give families just a
Speaker 1: little bit of relief. It's a long shot for President Biden,
Speaker 1: as lawmakers, even his fellow Democrats, quickly signaled they have
Speaker 1: little appetite for the move. Senate Majority leader Chuck Schumer
Speaker 1: says Democrats in his chamber had already attempted a gas
Speaker 1: tax suspension and Republicans blocked it. Live in New York,
Speaker 1: I'm Renita Young, Bloomberg Daybreak, Right, Reneeda, thank you and
Speaker 1: like you say, support for a gas tax holiday is
Speaker 1: garnering little support. Bloomberg Politics contributor or Genie shehn Zano
Speaker 1: says it flies in the face of the president's own
Speaker 1: energy policy. Many people, particularly on the left, are asking themselves,
Speaker 1: you know, essentially, who is Joe Biden. He could have
Speaker 1: used the challenge in Ukraine and the challenge with prices
Speaker 1: to push for renewables. You know, the old saying, don't
Speaker 1: let a good crisis go to waste. Why hasn't he
Speaker 1: pushed for something that people on the Democratic side believe in.
Speaker 1: Bloomberg Politics contribute or Genie shehn Zano spoke with Our
Speaker 1: Washington corresponded Joe Matthew on Bloomberg Sound on Catch the
Speaker 1: Show weekdays at five pm Easter and on Bloomberg Radio. Well.
Speaker 1: Another major story in Washington were following this morning. Karen
Speaker 1: has talked from both sides of the aisle that a
Speaker 1: gun safety bill could soon pass the Senate. Bloomberg said,
Speaker 1: Baxter has the story. Senate my noority leader Mitch McConnell
Speaker 1: seems to be on board. But I'm mainly concerned about
Speaker 1: is dealing with the issues that have been brought to
Speaker 1: the fore by these mass shutings, which are directly related
Speaker 1: to school safety and mental health, and Senate Majority Leader
Speaker 1: Chuck Schumer says passage should be soon. The bill is
Speaker 1: real progress, it will save lives, and it is my
Speaker 1: intention to make sure the Senate passes this bill before
Speaker 1: the end of the week. They hope to beat their
Speaker 1: summer recess. In San Francisco, I'm at Baxter Bloomberg Gay
Speaker 1: break and thank you for turning. Overseas. European Union leader
Speaker 1: has planned a grant candidates status to Ukraine. The move
Speaker 1: will come at the EU summit that's beginning today in Brussels.
Speaker 1: We get more from Bloomberg's Maria today. Oh, even though
Speaker 1: it is seen as a given and there's no surprise
Speaker 1: it will happen by tomorrow, Ukraine being granted this candidate
Speaker 1: status it is pretty historic. The question is how much
Speaker 1: will it change for the country overnight. Probably not a lot.
Speaker 1: And we should also notice that even if you're a
Speaker 1: country you had given this prdusy status, it doesn't mean
Speaker 1: the accession talks are going to happen quickly or swiftly.
Speaker 1: You know, there's many countries in Europe that have applied
Speaker 1: for it. Granted the canory status and then of course
Speaker 1: get stuck in the process for years before they get
Speaker 1: the membership. And Bloomberg's Maria TODAYO and Brussels says Ukraine
Speaker 1: will be told it has to meet a set of
Speaker 1: conditions related to the rule of law, justice and anti
Speaker 1: corruption before joining the EU. In the US, care and
Speaker 1: the Fed releases results from its yearly bank stress tests
Speaker 1: this afternoon. We get more from Bloomberg's Tom Busby. All
Speaker 1: thirty four banks monitored by the Federal Reserve, which I
Speaker 1: have a hundred billion dollars in assets, are part of
Speaker 1: this year's stress test to see if they can withstand
Speaker 1: a hypothetical economic downturn, a crash and the commercial real
Speaker 1: estate market and a surge in unemployment. That number up
Speaker 1: from twenty three lenders last year after some larger regional
Speaker 1: banks like Fifth Third Bank Corp. And Ally Financial got
Speaker 1: to pass. The results will dictate how much capital those
Speaker 1: banks will need to have on hand and how much
Speaker 1: they can return to shareholders in the form of share
Speaker 1: buy backs and dividends. But they'll have to wait until
Speaker 1: Monday to announce any of those Tom Busby Bloomberg Daybreak.
Speaker 1: Thank you, Tom SMP futures down one point right now,
Speaker 1: dal futures down seventy two, NASTAC futures up thirty eight points.
Speaker 1: Straight ahead your latest local headlines in the Check of Sports.
Speaker 1: This is Bloomberg five oh seven on Wall Street where
Speaker 1: at sixty one degrees in Central Park. It's still dealing
Speaker 1: with some roadwork on the New Jersey Turnpike car lanes.
Speaker 1: We'll get to the details on that Shortland traffic first.
Speaker 1: Michael Barr has more on what's going on in New
Speaker 1: York and around the world. Good morning, Michaul, Good morning.
Speaker 1: Nathan Pete Redondo, the chief of the school District Force
Speaker 1: in Uvalde, Texas, has been placed on administrative leave for
Speaker 1: his delayed response the last month's mass shooting at around
Speaker 1: elementary school. A gun been killed, nineteen students and two
Speaker 1: teachers in the attack as police officers stood by for
Speaker 1: more than an hour. Meanwhile, Democratic State Senator Roland Guterres
Speaker 1: as he filed a freedom of information request against the
Speaker 1: Texas Department of Public Safety, but has yet to hear
Speaker 1: back from the agency. We're frustrating because we're getting half
Speaker 1: truce in you Windo, a lot of finger pointing, UH
Speaker 1: and that's been the case in day one with DPS.
Speaker 1: Senator gu Terriss spoke to kat r K. The January
Speaker 1: six Committee holds its fifth hearing today. The focus will
Speaker 1: be on the pressure former President Trump exerted on the
Speaker 1: Justice Department to overturn the presidential election results. Federal prosecutors
Speaker 1: say Galine Maxwell, the British socialite convicted of engaging in
Speaker 1: a ten year sex trafficking scheme with former boyfriend Jeffrey Epstein,
Speaker 1: deserved to spend thirty to fifty five years in prison.
Speaker 1: Maxwell will be sentenced on June. New York City's subway
Speaker 1: system may only reach about a pre pandemic writership by
Speaker 1: the end of twenty two, lower than the eight percent
Speaker 1: forecast the m t A had been anticipating. Meanwhile, authority
Speaker 1: he's planned to place cameras on subway cars in an
Speaker 1: effort to increase safety. A train shooting in San Francisco
Speaker 1: has left one person dead at another injured. Authorities say
Speaker 1: they are still looking for a suspect behind the shooting
Speaker 1: near the city's Castro neighborhood. Officer Katherine Winters is with
Speaker 1: the San Francisco Police. We are working together information which
Speaker 1: will include surveillance footage in any other footage front of
Speaker 1: any Trent officer. Winders says it happened during the Heart
Speaker 1: a Pride week with police say the attack does not
Speaker 1: appear to be related to events in the area. FDA
Speaker 1: officials are investigating the death of another infant who was
Speaker 1: given formula made by Abbot laboratories. The infant died in
Speaker 1: January and the FDA was notified. June tenth, Global News
Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven journalists and analysts more
Speaker 1: than a hundred twenty countries. I Michael Barr, and this
Speaker 1: is Bloomberg. Nathan Alright, Michael, thank you five o nine
Speaker 1: on Wall Street. Time for the Bloomberg Sports Uptake. In Morning,
Speaker 1: John Stashun Morning, Ephan Yankees. We're looking at a rare
Speaker 1: two game losing streak. East Soak Paridis, who hit three
Speaker 1: home runs Tuesday, had another than the first any Tampa
Speaker 1: Bay led four to one, back came the Yankees to
Speaker 1: home runs for Aaron Judge, now up to seven at
Speaker 1: Jose Travino where he yet another huge hit, game winning
Speaker 1: two on over eighth inning. The Yanks one, five to four.
Speaker 1: They're home tonight for Houston. Astros just beat the Mets
Speaker 1: five three. Is Yourdan Alvarez homer twice he's had twenty one.
Speaker 1: Colos Carrasco roughed up left from the parent injury. Only
Speaker 1: a two game series, but the first time the season
Speaker 1: the Mets have been swept over time at the Stanley
Speaker 1: Cup Finals, quickly ahead, Now a Cadrey inside the circle? Catrey,
Speaker 1: where's the fuck? How did that not go in? It?
Speaker 1: Did it did go in? It? Did it? Did? We
Speaker 1: were the Scars? No the CATRAI Getchadre. Cad I didn't
Speaker 1: said okay, yes he Tampa Bay thought Colorado has been
Speaker 1: called for too many men on the ice penalty. With
Speaker 1: the adds one three tow they leave the series three
Speaker 1: one and they can win the Cup in Denver tomorrow night.
Speaker 1: NBA Draft takes place tonight. The Nets host the draft,
Speaker 1: but they don't have a pick. They could have used
Speaker 1: Philadelphia's first round or they elected to save it until
Speaker 1: next year. Nick's have the eleventh pick. Reports they're trying
Speaker 1: to move up Orlando as the first pick, expected to
Speaker 1: take Auburn's Javari Smith. There's golf today near Hartford is
Speaker 1: the PGA Tour announces changed as if they claim they
Speaker 1: were gonna make anyway, but they admit they may be
Speaker 1: moving them up to the competition they're now facing from
Speaker 1: the Live Tour, more prize money. Several tournaments will no
Speaker 1: longer have the field cut midway through. John Stashar Bloomberg
Speaker 1: Sports all right. John thinks SMP future is now down
Speaker 1: one point down, futures down sixty eight. NASSECT futures are
Speaker 1: higher by thirty five points. As we await day two
Speaker 1: of FED Chair J. Powell testimony on Capitol Hill. The
Speaker 1: tenure Treasury is up fifteen thirty seconds. The yield three
Speaker 1: point zero nine percent on the benchmark tenure note and
Speaker 1: the yield on the two year right now three points
Speaker 1: zero one per cent. You're listening to Bloomberg Dave Bred
Speaker 1: Bloomberg eleven three oh weather cloudy through the morning. High's
Speaker 1: cool in the low seventies. Will be in the low
Speaker 1: eighties tomorrow with a mix of sun in cloud Saturday,
Speaker 1: mostly sunny, might hit ninety degrees right now sixty one
Speaker 1: in cloudy in Central Park. Markets, headlines and breaking news
Speaker 1: twenty four hours a day at Bloomberg dot Com. The
Speaker 1: Bloomberg Business atand at Bloomberg Quick Tape is a Bloomberg
Speaker 1: Business Flash and I'm Karen Moscow and European stocks retreating
Speaker 1: this morning. Bon yields tumbling is comments by Federal Reserve
Speaker 1: Chair Jerome Powell, and growth data in Europe stoke fear
Speaker 1: about a global downturn. Oil is extending losses, and the
Speaker 1: yield on German tenure bond Sinc seventeen basis points after
Speaker 1: an indicator of Euro Area economic activity count to a
Speaker 1: sixteen month low. Wh check the market every fifteen minutes
Speaker 1: throughout the trading day on Bloomberg. Taking a look at
Speaker 1: futures this morning, they are mixed. SMP futures up six
Speaker 1: points down, futures down the sixteen and nasday futures are
Speaker 1: up sixty eight. The decks in Germany is down nine
Speaker 1: tenths of upper cent. The ten year treasury up thirteen
Speaker 1: thirty seconds. You'll three point one zero percent yield on
Speaker 1: the two year three point oh one percent. Nine max
Speaker 1: Screwed oil is down two percent or two dollars fifteen
Speaker 1: cents at a hundred four dollars four cents of barrel
Speaker 1: co mexs go down to ten percent or three dollars
Speaker 1: fifty cents. At eighteen thirty four and ninety announced the
Speaker 1: euro is at one point oh five oh nine against
Speaker 1: the dollar, British ground one point one eight, the n
Speaker 1: one thirty five point four. It too, And this data
Speaker 1: check brought to you by Informatica and the Cloud. Your
Speaker 1: data has the power to do the extraordinary. Managed data
Speaker 1: across any location in the cloud for accurate and actionable insights.
Speaker 1: More at Informatica dot com. That's a Bloomberg business flash.
Speaker 1: Now here's Michael bar with more. I'm must going on
Speaker 1: around the world. Michael, good morning, Good morning Karen. Facing
Speaker 1: stubbornly high gas prices, President Joe Biden has urged Congress
Speaker 1: to to spend federal gas and diesel taxes for three months.
Speaker 1: The p g A Tour is countering the Saladi mag
Speaker 1: liv Golf Series. Tour Commissioner j Monahan unveiled his plan
Speaker 1: to increase purse sizes and revamped the schedule in an
Speaker 1: effort to keep players from leaving the tour. In baseball,
Speaker 1: the Yankees one, the Mets lost, the Orioles shut out,
Speaker 1: the National seven zip, the Red Sox won the Giants
Speaker 1: and A's lost in the NHL. After Game four, the
Speaker 1: Avalanche are a game away from winning the Stanley Cup.
Speaker 1: Colorado beat the Lightning in overtime. Three two. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than journalist and analyst more than a
Speaker 1: hundred twenty countries. Michael bar this is Bloomberg. Nathan alright, Michael. Thanks,
Speaker 1: It's five nineteen on Wall Street Live from the Bloomberg
Speaker 1: Interactive Brokers Studios. This is the Bloomberg day Break. Let's
Speaker 1: get more now in President Biden's call for a three
Speaker 1: month gas tax holiday and progress in the Senate on
Speaker 1: a bipartisan gun safety bill. Lots happening in the nation's
Speaker 1: capitol this morning, so we're pleased to be joined by
Speaker 1: bloombergvern At Congressional reporter Jack Fitzpatrick. He's in our Bloomberg
Speaker 1: studios in Washington, d C. Jack, Good morning. This call
Speaker 1: from President Biden for a three month gas tax pause
Speaker 1: doesn't sound like it's getting the warmest of receptions on
Speaker 1: Capitol Hill or Am I wrong? No, you're You're right.
Speaker 1: And I think the most interesting part of that is
Speaker 1: not the Republican pushback, which is unsurprising, but also that
Speaker 1: there there are key Democrats who don't seem impressed by this.
Speaker 1: You know, there's a statement out by Speaker Pelosi that
Speaker 1: didn't endorse the deal, almost just acknowledged it, but sidestepping
Speaker 1: the substance of it. Uh. And then meanwhile, we heard
Speaker 1: from Peter DeFazio, the Transportation and Infrastructure Chairman in the House,
Speaker 1: who argued that, you know, this would do more to
Speaker 1: take funds away from the Highway Trust Fund than it
Speaker 1: would to make a noticeable difference for individual consumers. Uh.
Speaker 1: There's also no guarantee or or nothing that would presumably
Speaker 1: be in a bill that would in or that all
Speaker 1: the savings go to consumers. You can't tell exactly how
Speaker 1: much of this would go to the owners of gas stations,
Speaker 1: for example. Uh. So there's there seemed to be some
Speaker 1: key Democrats who are not really hot on the idea. Uh.
Speaker 1: Expecting cooperation from Republicans right now on an idea like
Speaker 1: this is uh not realistic, But it's an example of
Speaker 1: the President feeling the need to have a plan, have
Speaker 1: a proposal, make it clear that he's trying to do something.
Speaker 1: Is there a sense Jack that this is almost like
Speaker 1: a desperation move from President Biden to put out something
Speaker 1: like this when other ideas that he's put out there
Speaker 1: so far, like releases from the strategic reserve, haven't worked
Speaker 1: so far. Yes, a sense of desperation has been pretty palpable. Uh.
Speaker 1: You hear it when the President talks publicly about gas
Speaker 1: prices and inflation in general, because he has he has
Speaker 1: made the case that there's only so much he can
Speaker 1: do and putting it in the global person active of
Speaker 1: broader price increases, the war in Ukraine. Uh, things that
Speaker 1: are beyond not only the President's control, but that even
Speaker 1: Congress can only do so much in the short term.
Speaker 1: There can be a longer term debate over energy policy,
Speaker 1: over oil and natural gas production and exports, but when
Speaker 1: it comes to addressing the high prices today, his hands
Speaker 1: are tied to some significant extent, and he has gone
Speaker 1: around making the case that that that's the that that's
Speaker 1: where he is. Uh, And he can pitch some ideas,
Speaker 1: but yes, a sense of desperation is pretty significant. Well,
Speaker 1: it is interesting that we are seeing, on the other hand,
Speaker 1: progress on something that we haven't seen progress on literally
Speaker 1: in decades in Washington, and that is a gun safety
Speaker 1: package on Capitol Hill. Yeah, they're still moving along. Despite
Speaker 1: some negative talk a few days ago. They did come
Speaker 1: to a led agislative agreement. They worked out, UH, their
Speaker 1: their concerns about taking that framework that they announced and
Speaker 1: actually figuring out the details. They're trying to move through
Speaker 1: the procedural votes as quickly as possible in the Senate. UH.
Speaker 1: They did a little bit of a maneuver by holding
Speaker 1: the first procedural vote on another issue and then amending
Speaker 1: that with this bill. But they're they're they're past the
Speaker 1: sixty vote threshold already in that initial procedural vote, and
Speaker 1: there are enough Republicans on board UH to try to
Speaker 1: move this along. And unless there's some significant surprise or
Speaker 1: a group of lawmakers change their mind. Is there a
Speaker 1: sense among Democrats Jack, that this is something that they
Speaker 1: can capitalize on in the November elections or is the
Speaker 1: economy and inflation the overriding concern we have about a
Speaker 1: minute left here. I think both are true. The economy
Speaker 1: is the overriding concern, But I don't think you'd want
Speaker 1: to be a Democrat running for reelection UH and have
Speaker 1: no real response to mass shootings. Uh, Democrats are trying
Speaker 1: to show people that they can accomplish things, and they
Speaker 1: can go campaign on a variety of things. They can
Speaker 1: talk about the infrastructure bill, they can talk about this.
Speaker 1: It doesn't change the underlying fact that families are seeing
Speaker 1: a lot of those savings that they've built up dissipate.
Speaker 1: The price rises have been much more persistent than a
Speaker 1: lot of people thought. Uh, it doesn't undo the frustration
Speaker 1: with the economy, but it's something that Democrats have wanted
Speaker 1: to do for a long time, and an ability to
Speaker 1: have a bipartisan accomplishment is definitely not a bad thing.
Speaker 1: Thanks for this, Jack, and having on with us. Jack Fitzpatrick,
Speaker 1: congressional reporter for Bloomberg Government. With all the developments happening
Speaker 1: in the nation's capital, will have Jack back on later
Speaker 1: in the program to talk more about these stories, as
Speaker 1: well as the latest on the January six hearings. They'll
Speaker 1: be going into a pause as the committee members look
Speaker 1: at yet more evidence into the attack at the capital.
Speaker 1: Right now, SMP futures are up two points now, futures
Speaker 1: down forty five, NASTAC futures are higher by fifty points now.
Speaker 1: This is Bloomberg. Bloomberg eleventh three oh weather cloudy this
Speaker 1: morning with a high in the low seventies. Today will
Speaker 1: be in the low eighties under a mix of sun
Speaker 1: and clouds. Tomorrow could see ninety by Saturday. Right now
Speaker 1: sixty one in Central Park, broadcasting live from the Bloomberg
Speaker 1: Interactive Broker Studio in New York, Bloomberg in Living freon
Speaker 1: to Washington, d C. Bloomberg on to Boston, Bloomberg one
Speaker 1: O six one to San Francisco, Bloomberg N sixteen to
Speaker 1: the country Sirius XM Chado one nineteen and around the
Speaker 1: globe the Bloomberg Business app in Bloomberg Radio dot Com.
Speaker 1: This is Bloomberg Daybreak. It's five thirty on Wall Street.
Speaker 1: Good morning. I'm Nathan Hagar and I'm Karen Moscow or
Speaker 1: just about four hours away from the open of you
Speaker 1: US trading. Let's get you up to date in the
Speaker 1: news you need to know at this hour. We begin
Speaker 1: with day two of congressional testimony from J Powell this morning.
Speaker 1: The fence here appears before the House Financial Services Committee
Speaker 1: Yesterday was his most explicit acknowledgement yet that raising interest
Speaker 1: rates quid lead to a recession. You're seeing growth slow
Speaker 1: from the very elevated levels of last year associated with
Speaker 1: the reopening. You're seeing the beginnings of job growth slowing
Speaker 1: to more sustainable levels, and you know there's risk in that.
Speaker 1: There's obviously risk in that we monetary policy is famously
Speaker 1: a blunt tool, and there's risk that weaker outcomes are
Speaker 1: certainly possible, but they're not our intent. Fans here, j
Speaker 1: Powell to lawmakers the economy is strong and well positioned
Speaker 1: to handle tighter monetary policy. Markets gave up early gains
Speaker 1: Karen on Powell's recession comments, Jeanette Garritty, E chief economist
Speaker 1: with Robertson Stephen, says, as recession talk grows, we could
Speaker 1: see inflations start to come down. I don't think it's
Speaker 1: firmly rooted, and there are awful lot of people who
Speaker 1: are now beginning to think about recession, and in thinking
Speaker 1: about recession, actually do believe that that will take the
Speaker 1: pressure off prices. Jeanette Garritty with Robertson Stephen says she
Speaker 1: believes j Pal's credibility is no longer an issue. Well,
Speaker 1: let's turned to oil now, Nathan, which is lower once
Speaker 1: again as concerns over a global economic slowdown intensify. Meantime,
Speaker 1: President Biden is continuing his push to ease gas prices.
Speaker 1: Bloomberg's Nia Young joins US Live with more Good Morning
Speaker 1: nied Down, Good Morning Care and President Biden is running
Speaker 1: out of options to eat prices at the pump, and
Speaker 1: in his latest action, he proposes a three month gas
Speaker 1: tax holiday, urging gas stations to play their part. I
Speaker 1: call on the company's to pass this along every penny
Speaker 1: of this eighteenth cent reduction to the consumers. This is
Speaker 1: there's no time now for profiteering. It's a long shot
Speaker 1: for President Biden, as lawmakers on both sides of the
Speaker 1: aisle quickly signaled they have little appetite for the move.
Speaker 1: Live in New York, I'm rened a Young Bloomberg Day Break.
Speaker 1: All right, we need to thank you. Another major story
Speaker 1: we're watching in Washington in this morning. A gun safety
Speaker 1: bill could soon pass the Senate Majority leader Chuck Schumer
Speaker 1: hopes for approval by the end of the week, and
Speaker 1: Nathan turning overseas, European Union leaders planned a grant candidate
Speaker 1: status to Ukraine. The move will come at the EU summit.
Speaker 1: That's beginning today in Brussels, Ukraine will have to meet
Speaker 1: a set of conditions before joining the EU, and S
Speaker 1: ANDP futures are now little change, down futures down forty three,
Speaker 1: nasday futures up forty and the tenure Treasury at fifteen
Speaker 1: thirty seconds yeld three point nine percent. Straight ahead your
Speaker 1: latest local headlines plus a check of sports. This is
Speaker 1: Bloomberge on Wall Street, sixty one degrees in Central Park
Speaker 1: scenes and work on the northbound Van Wick and Michael
Speaker 1: Barr has more on what's going on in New York
Speaker 1: and around the world. Michael, thank you very much. Nathan.
Speaker 1: If you're not getting Internet, it's not the fault of
Speaker 1: your set. There are reports of a widespread internet outage
Speaker 1: with Verizon, according to down Detector. User reports indicate problems
Speaker 1: at Verizon this morning. Today was on the nature of
Speaker 1: the outage are limited at the moment. In Texas, the
Speaker 1: Uvaldi School District has placed police chief Pete Rodondo on
Speaker 1: administrative leave. Nineteen students and two teachers were killed as
Speaker 1: police officers stood by for more than an hour at
Speaker 1: rob Elementary School. Meanwhile, the state Senator filed a lawsuit
Speaker 1: against the Texas Department of Public Safety to access records
Speaker 1: on the investigation into last month shooting Democratic State Senator
Speaker 1: rolland to terrace. This was a failure at every level. Uh,
Speaker 1: not just the local cops, shriff, the police, DPS. We
Speaker 1: all had people in there. Texas State Senator gu terrorists
Speaker 1: told k t RK he flowled the lawsuit on A
Speaker 1: thirty one, but has not heard anything yet. The January
Speaker 1: six committee will hear from former Justice Department officials who
Speaker 1: faced down a relentless pressure campaign from Donald Trump over
Speaker 1: the presidential election results. Today's hearing aims to show how
Speaker 1: Trump tried to leverage the authorities of federal ex Ecutive
Speaker 1: Branch agencies in pursuing his false claims of election fraud.
Speaker 1: The FAA is investigating a helicopter crash in Logan County,
Speaker 1: West Virginia that killed six people. Officials say that Huey
Speaker 1: helicopter went down on the rural roadway last evening. Logan
Speaker 1: Mayor Safino no Letting very heart ranching. Why not we
Speaker 1: heard what happened? Yeah, there's people in they called Megan.
Speaker 1: One of us was a mayor. Serafino no Letty says
Speaker 1: the chopper was based out of Logan County Airport and
Speaker 1: was apparently used for tourist flights. Federal prosecutors say Glane Maxwell,
Speaker 1: the British socialite convicted of engaging in a ten years
Speaker 1: sex trafficking scheme with former boyfriend Jeffrey Epstein, deserved to
Speaker 1: spend at least thirty years in prison. Maxwell will be
Speaker 1: sentenced to Global News twenty four hours a day on
Speaker 1: airand on Bloomberg Quick Take, powered by more than twenty
Speaker 1: seven hundred journalists and analyst more than a hundred twenty countries. MICHAELA.
Speaker 1: Bar This is Bloomberg, Nickel. Thanks Michael on Wall Street
Speaker 1: on Sinshrist. The Bloomberg Sports Update anks Nathan more surprising
Speaker 1: than Aaron Judge having hit twenty seven home run six
Speaker 1: more than anyone else in baseball, is that Jose Trevino
Speaker 1: has hit six and only had five last season with Texas.
Speaker 1: Travino acquired just before the season began, far exceeded expectations,
Speaker 1: and he won the game for the Yankees with a
Speaker 1: two run homer eighth dinning and a night where Judge
Speaker 1: homer twice. Yankees came from four one down beat Tampa
Speaker 1: Bay five to four. Mets in Houston, trailed four nothing
Speaker 1: first and even lost five to three of The Astros
Speaker 1: started four game series with the Yanks tonight at the
Speaker 1: Stadium for Hacks. The playoff preview the Yankees in the
Speaker 1: East by twelve games in the Astros in the West
Speaker 1: by ten overtime and controversy at the Stanley Cup Final,
Speaker 1: where Tampa Bay scored the opening minute, never trailed Game
Speaker 1: four until Colorado's Nazeem Cadre's goal twelve minutes into ot
Speaker 1: The Lightning felt a too many men on the ice
Speaker 1: penalty should have been called, but the As one three two.
Speaker 1: As Cadre gets the game winner in his first games
Speaker 1: was breaking his thumb a few weeks ago, and the
Speaker 1: As now lead the series three one. They can win
Speaker 1: the Cup at home tomorrow night. NBA draft tonight in Brooklyn, Orlando,
Speaker 1: as the first pick, the NIXT pick eleven, and Nets
Speaker 1: do not have any picks. NFL Commissioner Roger Goodell testified
Speaker 1: virtually before a congressional committee looking into workplace violations by
Speaker 1: the Washington Commander's. Goodell insisted owner Dan Snyder is not
Speaker 1: involved in running the team. He said he does not
Speaker 1: have the power to remove Snyder, who has refused to testify,
Speaker 1: may now be subpoened. Tragic day for the Baltimore Ravens
Speaker 1: the death of linebacker Jalen Ferguson only twenty six no
Speaker 1: cause of death, val play ruled out, and the passing
Speaker 1: of former defensive lineman Tony Saragosa he was fifty five. Goose,
Speaker 1: also played for the Colts, was now a Fox analyst.
Speaker 1: John Stashower Bloomberg Sports Nathan all Right. John thanks High
Speaker 1: thirty seven on Wall Street Time for the Tri State
Speaker 1: Business Report with Bloomberg's head Corey. It's getting harder to
Speaker 1: find an affordable apartment in New York City. You need
Speaker 1: to make at least one hundred ten thousand dollars a
Speaker 1: year to afford the median asking rent of twenty seven
Speaker 1: hundred and fifty dollars median rent in Manhattan sward to
Speaker 1: an eye popping four thousand dollars for market rate apartments.
Speaker 1: In May, New Jersey will suspend sales tax collection for
Speaker 1: ten days on back to school purchases, saving buyers about
Speaker 1: seventy five million dollars. The discount will be in effect
Speaker 1: from August to September five. It will apply to basic goods,
Speaker 1: as well as higher priced items like computers. Although it
Speaker 1: doesn't have a store in the Hamptons, Sacks Fifth Avenue
Speaker 1: is making its presence known out East throughout the summer.
Speaker 1: It's hosting a series of dinners with designers, influencers and media.
Speaker 1: It'll throw a celebratory dinner July fourteenth at the new
Speaker 1: Southampton location of the Lobster Roll. That's your Bloomberg Dry
Speaker 1: State Business Report. I'm ind Corey. Thanks on Wall Street
Speaker 1: Bloomberg Radios 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: Steve Poliskan on ten ten Wins in New York. We're
Speaker 1: talking about big job cuts at JP Morgan's home lending business.
Speaker 1: I'm Jeff Pollinger and on w k D and in Columbus,
Speaker 1: I'm talking about how inflation has eaten away in American's
Speaker 1: emergency saving I'm cal I head killed Bloombeg DAB Digital
Speaker 1: Radio in Onto waverporting on Germany, triggering the next stage
Speaker 1: of its emergency gas plan which could see consumers paying
Speaker 1: moved I made Gory on ww J and Detroit reporting
Speaker 1: Auto Executives one, Lawmakers with Strength, and semiconductors of blind change.
Speaker 1: And those are some of the stories our twenty hundred
Speaker 1: Bloomberg journalists and analysts are working on this morning around
Speaker 1: the world. It's five thirty nine on Wall Street. The
Speaker 1: following is an editorial from Bloomberg Opinion. In the chaos
Speaker 1: of Latin American politics, Columbia has in recent years looked
Speaker 1: like an island of stab building now changes certain. On Sunday,
Speaker 1: voters elected leftist Gustavo Petro, a former guerrilla, as their
Speaker 1: next president. Petro should learn from the experience of other
Speaker 1: anti establishment leaders in the region. Without broad support and
Speaker 1: an I on public finances, he won't be able to
Speaker 1: deliver the improved living conditions that voters demand. In Colombia,
Speaker 1: which lost its investment grade status last year, has little
Speaker 1: room for air. Although its economy has made a good
Speaker 1: recovery from COVID nineteen, deep seated problems remain. A botched
Speaker 1: tax reform last year led to weeks of violent protests,
Speaker 1: and inequality is pronounced even by the standards of the region.
Speaker 1: Petro would do well to seek out experience, technocratic advisors
Speaker 1: who are prepared to meet the country's challenges. Populism alone
Speaker 1: is no remedy for Columbia's hills. This editorial was written
Speaker 1: by the Bloomberg Opinion Editorial Board. I'm David Shipley. For
Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash
Speaker 1: Opinion or Opango on the Bloomberg terminal. This has been
Speaker 1: Bloomberg Opinion, and you can hear Bloomberg opinion editorials every weekday.
Speaker 1: At this time, terminal customers can read more at OPI
Speaker 1: end go. Futures little changed as we wait day two
Speaker 1: of testimony from Fed Chairman Jerome Powell on Capitol Hill.
Speaker 1: Right now, SMP futures are up four points down, futures
Speaker 1: down thirty five NASTACK futures up fifty four points. You're
Speaker 1: listening to Bloomberg Daybreak Bloomberg eleven three oh. Weather cloudie
Speaker 1: through the morning with highs in the low seventies today.
Speaker 1: We'll get into the low eighties tomorrow under a mix
Speaker 1: of sun and clouds, mostly sunny, warmer for Saturday, oper eighties.
Speaker 1: Right now sixty one in Central Park markets, headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot com,
Speaker 1: the Bloomberg Business Out and at Bloomberg Quick Tape. This
Speaker 1: is a Bloomberg Business Flash and I'm Karen Moscow and
Speaker 1: European stocks are rich. Treating bond yields are tumbling is
Speaker 1: commenced by Federal Reserve Chair J. Powell and growth data
Speaker 1: in Europe. Stoke fear about a global downturn, oil extending
Speaker 1: losses and US stock index futures They're mostly higher. We
Speaker 1: check the markets every fifteen minutes throughout the trading day
Speaker 1: on bloomberg s and P futures up eight points now,
Speaker 1: futures that will change downs day futures up sixty eight
Speaker 1: The decks in Germany's down one percent, the ten year
Speaker 1: treasury up thirteen thirty seconds. He'll three point one zero
Speaker 1: percent yield on the two year two point nine nine percent.
Speaker 1: Nine max screwed oil is down one point six percent
Speaker 1: on a dollar sixty six at a hundred four dollars
Speaker 1: fifty two cents of barrel comex schooled at a third
Speaker 1: of percent, or six dollars thirty cents at eighteen thirty
Speaker 1: two fifty announced the euro one point oh five oh
Speaker 1: three against the dollar British found one point to one
Speaker 1: nine nine and the ends at one thirty five point
Speaker 1: four to. And look at a bitcoin this morning, moving
Speaker 1: higher up three point four percent at twenty thousand, five
Speaker 1: hundred dollars. That's at Bloomberg Business Flash. Now here's Michael
Speaker 1: bar with more on what's going on around the world.
Speaker 1: Michael Karen, thank you very much. There are reports of
Speaker 1: a wide spread Internet out. It's with Verizon, that's according
Speaker 1: to down detector. The January six Committee will hear from
Speaker 1: former Justice Department officials today. The panelst says they face
Speaker 1: relentless pressure from Donald Trump over the presidential election results.
Speaker 1: The PG eight tour plans to increase purse sizes and
Speaker 1: revamp the schedule, and an effort to keep players from
Speaker 1: heading to the Saudi Back liv golf Series. In baseball,
Speaker 1: the Yankees one, the Mets lost, the Orioles shut out,
Speaker 1: the Nationals, the Red Sox one, the Giants and as lost.
Speaker 1: In the NHL, the Avalanche or a game away from
Speaker 1: winning the Stanley Cup after beating the Lightning. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg
Speaker 1: Quicktake powered by more than twenty seven hundred journalist and
Speaker 1: analysts more than a hundred twenty countries. Michael barn this
Speaker 1: is Bloomberg. Nathan. Hi, Michael, thank you. We're coming up
Speaker 1: to five forty nine on Wall Street Live from the
Speaker 1: Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak. And the
Speaker 1: words that have been reverberating in markets over the last
Speaker 1: several hours certainly a possibility. That's what FED chaired Jerome
Speaker 1: Powell told the Senate Banking Committee when it comes to
Speaker 1: the risk of recession, as the FED is strongly focused
Speaker 1: on getting inflation down to a two target. Let's get
Speaker 1: more on this. Brett Ryan is with US now senior
Speaker 1: US economist at Deutsche Bank Securities. Brett, good morning to
Speaker 1: the FED chairman's comments about the risk of recession. Have
Speaker 1: you changing your forecast? Uh? No, good morning, and thank
Speaker 1: you for having me on the program. We've actually been
Speaker 1: calling for a recession since really the beginning of April,
Speaker 1: when the inflation data, you know, showed certainly more persistence
Speaker 1: and we we thought that the FED would have to
Speaker 1: tighten more aggressively. Uh. And that's exactly what's played out
Speaker 1: thus far. So I think I think the fed's latest
Speaker 1: forecast hinted that this is going to be a difficult
Speaker 1: and more difficult landing, And I think you're seeing more
Speaker 1: admittance on the part of federals or officials that recession
Speaker 1: is certainly a higher probability given the amount of titaning
Speaker 1: they need to do. Do you think we're in for
Speaker 1: a mild recession, a moderate recession, something more prolonged. Yeah,
Speaker 1: So we think it's more of a mild recession similar
Speaker 1: to something like because there aren't really large imbalances that
Speaker 1: you can identify in the economy right now other than
Speaker 1: really elevated good spending relative disservices, and that's good spit.
Speaker 1: That elevated good spending is part of what's causing such
Speaker 1: high inflation right now. There is an imbalance, though, isn't
Speaker 1: there when it comes to UH, supply versus demand? Isn't
Speaker 1: that a lot of what's feeding into the inflation right now,
Speaker 1: particularly in the energy market. Sure, And that's something that
Speaker 1: share Powell was quizzed upon by by Liz Warren and
Speaker 1: the other Senate officials UH yesterday in that you know,
Speaker 1: can interest rates impact supply side? Is the FED raising
Speaker 1: interest rates doesn't help in terms of bringing more oil
Speaker 1: onto the market. Whoever, the FED does a control over
Speaker 1: services inflation, things like rent, and that is directly impacted
Speaker 1: by the growth and income growth and a strong job market.
Speaker 1: So the FET is trying to cool a very hot
Speaker 1: labor market in order to bring that that side of
Speaker 1: the equation down because services inflation has been picking up
Speaker 1: just as strongly as good inflation. Well, what's it going
Speaker 1: to take, Brett for the FED to cool down the
Speaker 1: hot labor market? He's the FED Sherman Palell says he's
Speaker 1: strongly focused on getting inflation down to the two target.
Speaker 1: Is it going to mean even more aggressive rate hikes
Speaker 1: than the fet is signaled at this point? Uh? And
Speaker 1: our view, um, yes, we are. They are going to
Speaker 1: be need to be more aggressive. Um, we expect the
Speaker 1: FED to reach four point one percent, so between four
Speaker 1: and by the by March of next year. Now, the
Speaker 1: fet IS signaled of the medium dot at least of
Speaker 1: the dub plot is three point eight percent, So we
Speaker 1: do think they need to be a little bit more aggressive,
Speaker 1: But they certainly have come at a relative to where
Speaker 1: the FED was at the March. The March meeting in
Speaker 1: terms of tightening, they've come a long way and you've
Speaker 1: really seen it's sort of it's a uniform consensus, you know,
Speaker 1: across the hawk dove spectrum. Um they want to get
Speaker 1: they're going to need to be in the restrictive territory.
Speaker 1: So you know, they haven't decided yet how restrictive that
Speaker 1: they need to be, but they all agree that that's
Speaker 1: where where they're going at this point. In our last
Speaker 1: minute here Brett, the chairman is going before the House
Speaker 1: Financial Services Committee this morning. What message are you going
Speaker 1: to be looking for from Chairman Powell today? Anything different? Uh? Actually,
Speaker 1: the one thing I will look for is any reaction
Speaker 1: to the latest European data. So the European poms missed
Speaker 1: fairly broadly this this morning, and you know, I think
Speaker 1: there's both services and manufacturings that so there wasn't a
Speaker 1: really a clear identifier there in covid um and so
Speaker 1: I'm curious to see if there's any reaction to that.
Speaker 1: The latest data data that's changed between yesterday and today,
Speaker 1: and that's you know, another twenty basis point rally in
Speaker 1: the tenure German Bund, which is pretty aggressive, and so
Speaker 1: we've had these these three large pawn market moves. The
Speaker 1: two year yield has moved moved seventy basis points in
Speaker 1: five trading sessions last week, and that's the largest. And
Speaker 1: Lehman Brothers um and we've pretty much unwounded about half
Speaker 1: of that. At the same time, the ten year yield
Speaker 1: went from three forty seven last week to you know,
Speaker 1: now pressing close to three. So you know, I think
Speaker 1: the volatility, the volatility in the bond market, um shaff
Speaker 1: how may get a few more questions about that today.
Speaker 1: Thanks for this bred good having gone with us. Fred Ryan,
Speaker 1: senior US economist at Deutsche Bank, Karen and Nathan, thank you.
Speaker 1: It is at four on Wall Street. Now to a
Speaker 1: legal story where following this morning this week, the Supreme
Speaker 1: Court once again ruled in favor of religious rights over
Speaker 1: a robust separation of church and state. In a six
Speaker 1: or three decision down ideological lines, the Justice is ruled
Speaker 1: that man cannot exclude religious schools from a program that
Speaker 1: pays for private instruction in rural areas that lack public schools,
Speaker 1: opening the door to more use of public dollars for
Speaker 1: religious schools. In a case with implications beyond that state
Speaker 1: for more Bloomberg. June Grosso speaks to Richard Garnett, a
Speaker 1: professor at Notre Dame Law School. What does this ruling
Speaker 1: stand for? Well, this decision reaffirms the principle that the
Speaker 1: Justices have applied in several recent cases, and that is
Speaker 1: that the free exercise clause of the Constitution does not
Speaker 1: permit governments to exclude or to discriminate against religious entities
Speaker 1: or in the jules, when they're operating a benefit program
Speaker 1: or a funding program. So a simpler way of putting that,
Speaker 1: I suppose might be that the free exercise clause of
Speaker 1: the First Amendment doesn't permit governments to discriminate against religion.
Speaker 1: And in the Carson case, the Justices applied that principle
Speaker 1: to conclude that the state of Mainz policy, which is
Speaker 1: to allow parents in rural school districts to get public
Speaker 1: support to send their kids to some private schools, was
Speaker 1: unconstitutional because Maine denied similar benefits to parents if they
Speaker 1: chose a religious school. And the Court said, relying on
Speaker 1: these recent precedents, that discrimination simply on the basis of
Speaker 1: the school's religious character violate the free exercise guarantee of
Speaker 1: the First amendment, is this making taxpayers fund religious education? Well, uh,
Speaker 1: soul no, because the Court was very careful to say
Speaker 1: that states don't have to fund religious schools if they
Speaker 1: don't want to. But once the state decides that it
Speaker 1: wants to fund some private education, then it can't discriminate
Speaker 1: against religious schools. Now, the upshot of that is that indirectly,
Speaker 1: because you know, the stable assist parents to choose to
Speaker 1: send kids to school where they will receive religious instruction, Indirectly,
Speaker 1: the parents decision to seek out religious instruction is being supported.
Speaker 1: But of course the states indirectly pay for some religious
Speaker 1: education all the time. You know, the g I Bill
Speaker 1: for more than seventy years has been paying for people
Speaker 1: to attend Boston College and the Game. So I think
Speaker 1: the language of forcing overlooks the point that it's it's
Speaker 1: the state's choice whether or not to create a program
Speaker 1: that's open to some private schools but not others. And
Speaker 1: as Richard Garnett, a professor at Notre Dame Law School,
Speaker 1: speaking with Bloomberg to Juan Grosso. Catch more in that
Speaker 1: interview plus analysis of the latest legal news by subscribing
Speaker 1: to the Bloomberg Law Podcast or downloading the show at
Speaker 1: Bloomberg dot com slash podcast. Attorneys can find exception on
Speaker 1: legal research and business development tools at Bloomberg Law dot
Speaker 1: com and on the Bloomberg terminal at b law Go.
Speaker 1: And futures this morning are starting to strengthen. US and
Speaker 1: P futures up about twelve points, down features up twenty
Speaker 1: six and nastday futures up seventy eight. The ten year
Speaker 1: treasury up eleven thirty seconds. You have three point one
Speaker 1: one percent and the yield on the two year three
Speaker 1: point o percent. Nine Max Scrude oil is down one
Speaker 1: point one percent out of dollar twelve and a hundred
Speaker 1: five dollars seven cents of barrel co mix school down
Speaker 1: a third of a percent, or six dollars thirty cents
Speaker 1: at eighteen thirty two. Ten announce and Bloomberg Daybreak continues.
Speaker 1: This is Bloomberg