WEBVTT - Bloomberg Daybreak: June 23, 2022 - Hour 1 (Radio) 0:00:02.279 --> 0:00:05.640 Live from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:05.720 --> 0:00:09.680 day Break for Thursday, June two. Coming up the shower. 0:00:10.000 --> 0:00:13.480 It is day two of congressional testimony for FED Chair J. Powell. 0:00:13.840 --> 0:00:18.200 Reaction pours into President Biden's proposed gas tax holiday. European 0:00:18.320 --> 0:00:21.759 Union leaders plan to grant candidates status to Ukraine, and 0:00:21.800 --> 0:00:23.880 the FED gets set to release the results of its 0:00:23.960 --> 0:00:27.120 bank stress tests. The Uvaldi school police chief has been 0:00:27.160 --> 0:00:30.840 placed on leave after last month's smash shooting. Plus prosecutors 0:00:30.840 --> 0:00:33.560 say Glene Maxwell to get thirty years in prison. On 0:00:33.720 --> 0:00:36.920 Michael blarm More Ahead, I'm John Stas Sharon Sports comeback 0:00:36.960 --> 0:00:39.360 win for the Yankees, loss with the Mats in Colorado, 0:00:39.440 --> 0:00:41.840 be Tampa Bay, and overtime at the Stanley Cup Final. 0:00:44.360 --> 0:00:47.920 That's all s train ahead on Bloomberg Daybreak on Bloomberg 0:00:47.960 --> 0:00:51.480 eleven three, on New York, Bloomberg ninety nine one, Washington 0:00:51.600 --> 0:00:55.200 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:55.240 --> 0:00:59.080 sixties and Francisco Sirius x M one nine team and 0:00:59.160 --> 0:01:02.240 around the world on Bloomberg Radio dot Com and via 0:01:02.280 --> 0:01:09.319 the Bloomberg Business Up. Good morning, I'm Nathan Haggard and 0:01:09.360 --> 0:01:12.320 I'm Karen Moscow and ust Dock Index futures are mixed 0:01:12.400 --> 0:01:14.600 this morning, coming up to five o one on Wall Street, 0:01:14.600 --> 0:01:16.800 and we check the markets every fifteen minutes throughout the 0:01:16.800 --> 0:01:20.839 trading day. On Bloomberg. SNP futures down six points down, 0:01:20.840 --> 0:01:24.160 futures down a hundred four Nastack futures higher up, twenty 0:01:24.240 --> 0:01:27.800 three ten year Treasury up fifteen thirty seconds the three 0:01:27.800 --> 0:01:30.039 point oh nine percent, and a yield on the two 0:01:30.120 --> 0:01:33.679 year three point oh one per cent. Nathan, Karen, we 0:01:33.760 --> 0:01:37.160 begin this morning with day two of congressional testimony from j. Powell. 0:01:37.280 --> 0:01:39.800 This morning, the Fed Chair appears before the House Financial 0:01:39.840 --> 0:01:44.080 Services Committee, But yesterday was Pal's most explicit acknowledgement yet 0:01:44.280 --> 0:01:47.520 that raising interest rates could lead to a recession. It's 0:01:47.560 --> 0:01:50.600 not our intended outcome at all, but it's certainly a 0:01:50.600 --> 0:01:53.360 possibility and and frankly, the events of the last few 0:01:53.400 --> 0:01:57.920 months around the world have have have made it more 0:01:57.920 --> 0:02:00.440 difficult for us to achieve what we want, which is 0:02:00.440 --> 0:02:03.760 two percent inflation and still a strong labor market. Powell 0:02:03.800 --> 0:02:06.600 told the Senate Banking Committee the economy is well positioned 0:02:06.640 --> 0:02:09.839 to handle tighter monetary policy. Meantime, Former New York Fed 0:02:09.880 --> 0:02:12.959 President and current Bloomberg opinion columnist Bill Dudley says the 0:02:13.040 --> 0:02:16.000 recession is inevitable within the next twelve to eighteen months. 0:02:16.280 --> 0:02:20.119 I would expect a mild recession like or or two 0:02:20.120 --> 0:02:23.400 thousand and one, not the deep recession like seventy three, 0:02:23.520 --> 0:02:26.560 seventy four, or of course the Great Financial Crisis. Former 0:02:26.560 --> 0:02:28.840 New York Fed President Bill Dudley made those comments on 0:02:28.880 --> 0:02:32.440 Bloomberg Surveillance Catch the program weekdays at seven am Wall 0:02:32.480 --> 0:02:35.880 Street Time on Bloomberg Radio and television. Well Nathan Stocks 0:02:35.919 --> 0:02:39.200 gave up early gains on Powell's recession comments. The market 0:02:39.280 --> 0:02:42.600 veteran Abby Joseph Cohen says, the era of everything going 0:02:42.720 --> 0:02:46.760 up is now over. I think we're now back into 0:02:46.800 --> 0:02:49.280 a period in which it does matter where it's the 0:02:49.320 --> 0:02:54.040 fundamentals of earnings, the fundamentals of margins, the fundamentals of inflation, 0:02:54.200 --> 0:02:57.640 interest rates, and putting that all together in terms of 0:02:57.639 --> 0:03:01.680 appropriate valuation models that will make a big difference for 0:03:01.720 --> 0:03:05.160 investors going forward. Abby Joseph Cohen, who was a former 0:03:05.240 --> 0:03:09.119 senior investment strategist at Goldman Sachs, believes a mild recession 0:03:09.160 --> 0:03:11.960 as being priced into markets. Well, crude oil is taking 0:03:11.960 --> 0:03:14.520 a leg lower care and is concern over global economic 0:03:14.600 --> 0:03:18.800 slowdown intensifies, checking prices Downimex crudes down two dollars fifty 0:03:18.840 --> 0:03:21.200 cents at a hundred three dollars sixty nine cents of barrel. 0:03:21.440 --> 0:03:25.000 President Biden's continuing his push to ease gas prices. It's 0:03:25.000 --> 0:03:27.280 got the latest on that life from Bloomberg's rined A Young. 0:03:27.320 --> 0:03:30.600 Good morning, Nita, Nathan, good morning. President Biden is running 0:03:30.600 --> 0:03:33.240 out of options to ease prices at the pump, and 0:03:33.280 --> 0:03:36.360 in his latest action, he proposes a three month gas 0:03:36.400 --> 0:03:40.760 tax holiday. I suspending the eighteen cent gas tax federal 0:03:40.760 --> 0:03:43.640 gas tax for the next ninety days. We can bring 0:03:43.680 --> 0:03:46.680 down the price of gas and give families just a 0:03:46.720 --> 0:03:49.840 little bit of relief. It's a long shot for President Biden, 0:03:49.880 --> 0:03:53.680 as lawmakers, even his fellow Democrats, quickly signaled they have 0:03:53.840 --> 0:03:57.520 little appetite for the move. Senate Majority leader Chuck Schumer 0:03:57.600 --> 0:04:01.000 says Democrats in his chamber had already attempted a gas 0:04:01.040 --> 0:04:05.080 tax suspension and Republicans blocked it. Live in New York, 0:04:05.120 --> 0:04:08.040 I'm Renita Young, Bloomberg Daybreak, Right, Reneeda, thank you and 0:04:08.080 --> 0:04:10.600 like you say, support for a gas tax holiday is 0:04:10.640 --> 0:04:15.000 garnering little support. Bloomberg Politics contributor or Genie shehn Zano 0:04:15.120 --> 0:04:17.360 says it flies in the face of the president's own 0:04:17.480 --> 0:04:22.000 energy policy. Many people, particularly on the left, are asking themselves, 0:04:22.040 --> 0:04:25.479 you know, essentially, who is Joe Biden. He could have 0:04:25.680 --> 0:04:29.520 used the challenge in Ukraine and the challenge with prices 0:04:29.560 --> 0:04:32.200 to push for renewables. You know, the old saying, don't 0:04:32.279 --> 0:04:34.640 let a good crisis go to waste. Why hasn't he 0:04:34.920 --> 0:04:38.839 pushed for something that people on the Democratic side believe in. 0:04:39.200 --> 0:04:42.520 Bloomberg Politics contribute or Genie shehn Zano spoke with Our 0:04:42.560 --> 0:04:46.000 Washington corresponded Joe Matthew on Bloomberg Sound on Catch the 0:04:46.000 --> 0:04:49.240 Show weekdays at five pm Easter and on Bloomberg Radio. Well. 0:04:49.240 --> 0:04:52.039 Another major story in Washington were following this morning. Karen 0:04:52.040 --> 0:04:54.080 has talked from both sides of the aisle that a 0:04:54.120 --> 0:04:57.400 gun safety bill could soon pass the Senate. Bloomberg said, 0:04:57.440 --> 0:05:01.320 Baxter has the story. Senate my noority leader Mitch McConnell 0:05:01.360 --> 0:05:04.000 seems to be on board. But I'm mainly concerned about 0:05:04.600 --> 0:05:07.599 is dealing with the issues that have been brought to 0:05:07.640 --> 0:05:10.840 the fore by these mass shutings, which are directly related 0:05:10.880 --> 0:05:15.000 to school safety and mental health, and Senate Majority Leader 0:05:15.080 --> 0:05:18.400 Chuck Schumer says passage should be soon. The bill is 0:05:18.440 --> 0:05:22.159 real progress, it will save lives, and it is my 0:05:22.240 --> 0:05:26.760 intention to make sure the Senate passes this bill before 0:05:26.800 --> 0:05:28.800 the end of the week. They hope to beat their 0:05:28.839 --> 0:05:32.520 summer recess. In San Francisco, I'm at Baxter Bloomberg Gay 0:05:32.560 --> 0:05:36.040 break and thank you for turning. Overseas. European Union leader 0:05:36.040 --> 0:05:38.760 has planned a grant candidates status to Ukraine. The move 0:05:38.800 --> 0:05:41.599 will come at the EU summit that's beginning today in Brussels. 0:05:41.600 --> 0:05:44.440 We get more from Bloomberg's Maria today. Oh, even though 0:05:44.480 --> 0:05:47.000 it is seen as a given and there's no surprise 0:05:47.040 --> 0:05:50.920 it will happen by tomorrow, Ukraine being granted this candidate 0:05:51.080 --> 0:05:53.480 status it is pretty historic. The question is how much 0:05:53.480 --> 0:05:56.760 will it change for the country overnight. Probably not a lot. 0:05:56.800 --> 0:05:59.560 And we should also notice that even if you're a 0:05:59.600 --> 0:06:02.760 country you had given this prdusy status, it doesn't mean 0:06:02.800 --> 0:06:05.920 the accession talks are going to happen quickly or swiftly. 0:06:06.279 --> 0:06:08.640 You know, there's many countries in Europe that have applied 0:06:08.640 --> 0:06:11.600 for it. Granted the canory status and then of course 0:06:11.640 --> 0:06:14.520 get stuck in the process for years before they get 0:06:14.560 --> 0:06:18.080 the membership. And Bloomberg's Maria TODAYO and Brussels says Ukraine 0:06:18.080 --> 0:06:19.719 will be told it has to meet a set of 0:06:19.760 --> 0:06:22.560 conditions related to the rule of law, justice and anti 0:06:22.600 --> 0:06:25.960 corruption before joining the EU. In the US, care and 0:06:25.960 --> 0:06:28.599 the Fed releases results from its yearly bank stress tests 0:06:28.640 --> 0:06:31.520 this afternoon. We get more from Bloomberg's Tom Busby. All 0:06:31.560 --> 0:06:34.320 thirty four banks monitored by the Federal Reserve, which I 0:06:34.320 --> 0:06:36.520 have a hundred billion dollars in assets, are part of 0:06:36.520 --> 0:06:38.880 this year's stress test to see if they can withstand 0:06:38.880 --> 0:06:42.640 a hypothetical economic downturn, a crash and the commercial real 0:06:42.760 --> 0:06:46.520 estate market and a surge in unemployment. That number up 0:06:46.560 --> 0:06:49.400 from twenty three lenders last year after some larger regional 0:06:49.400 --> 0:06:52.159 banks like Fifth Third Bank Corp. And Ally Financial got 0:06:52.240 --> 0:06:55.039 to pass. The results will dictate how much capital those 0:06:55.040 --> 0:06:57.200 banks will need to have on hand and how much 0:06:57.240 --> 0:06:59.880 they can return to shareholders in the form of share 0:07:00.040 --> 0:07:03.039 buy backs and dividends. But they'll have to wait until 0:07:03.120 --> 0:07:07.440 Monday to announce any of those Tom Busby Bloomberg Daybreak. 0:07:07.520 --> 0:07:10.200 Thank you, Tom SMP futures down one point right now, 0:07:10.320 --> 0:07:15.040 dal futures down seventy two, NASTAC futures up thirty eight points. 0:07:15.080 --> 0:07:17.920 Straight ahead your latest local headlines in the Check of Sports. 0:07:17.960 --> 0:07:24.640 This is Bloomberg five oh seven on Wall Street where 0:07:24.600 --> 0:07:26.800 at sixty one degrees in Central Park. It's still dealing 0:07:26.800 --> 0:07:28.960 with some roadwork on the New Jersey Turnpike car lanes. 0:07:28.960 --> 0:07:31.320 We'll get to the details on that Shortland traffic first. 0:07:31.360 --> 0:07:33.400 Michael Barr has more on what's going on in New 0:07:33.480 --> 0:07:36.160 York and around the world. Good morning, Michaul, Good morning. 0:07:36.240 --> 0:07:39.800 Nathan Pete Redondo, the chief of the school District Force 0:07:40.120 --> 0:07:44.920 in Uvalde, Texas, has been placed on administrative leave for 0:07:45.160 --> 0:07:48.520 his delayed response the last month's mass shooting at around 0:07:48.600 --> 0:07:52.080 elementary school. A gun been killed, nineteen students and two 0:07:52.120 --> 0:07:55.480 teachers in the attack as police officers stood by for 0:07:55.560 --> 0:07:59.640 more than an hour. Meanwhile, Democratic State Senator Roland Guterres 0:08:00.000 --> 0:08:03.320 as he filed a freedom of information request against the 0:08:03.360 --> 0:08:06.560 Texas Department of Public Safety, but has yet to hear 0:08:06.560 --> 0:08:09.760 back from the agency. We're frustrating because we're getting half 0:08:09.800 --> 0:08:12.920 truce in you Windo, a lot of finger pointing, UH 0:08:12.960 --> 0:08:15.600 and that's been the case in day one with DPS. 0:08:15.880 --> 0:08:20.040 Senator gu Terriss spoke to kat r K. The January 0:08:20.080 --> 0:08:22.760 six Committee holds its fifth hearing today. The focus will 0:08:22.800 --> 0:08:25.760 be on the pressure former President Trump exerted on the 0:08:25.880 --> 0:08:31.120 Justice Department to overturn the presidential election results. Federal prosecutors 0:08:31.120 --> 0:08:35.240 say Galine Maxwell, the British socialite convicted of engaging in 0:08:35.280 --> 0:08:39.400 a ten year sex trafficking scheme with former boyfriend Jeffrey Epstein, 0:08:39.440 --> 0:08:43.520 deserved to spend thirty to fifty five years in prison. 0:08:43.960 --> 0:08:48.200 Maxwell will be sentenced on June. New York City's subway 0:08:48.200 --> 0:08:52.800 system may only reach about a pre pandemic writership by 0:08:52.880 --> 0:08:55.960 the end of twenty two, lower than the eight percent 0:08:56.080 --> 0:08:59.960 forecast the m t A had been anticipating. Meanwhile, authority 0:09:00.000 --> 0:09:02.520 he's planned to place cameras on subway cars in an 0:09:02.520 --> 0:09:06.199 effort to increase safety. A train shooting in San Francisco 0:09:06.280 --> 0:09:09.400 has left one person dead at another injured. Authorities say 0:09:09.440 --> 0:09:11.840 they are still looking for a suspect behind the shooting 0:09:12.080 --> 0:09:15.840 near the city's Castro neighborhood. Officer Katherine Winters is with 0:09:15.880 --> 0:09:19.559 the San Francisco Police. We are working together information which 0:09:19.600 --> 0:09:22.599 will include surveillance footage in any other footage front of 0:09:22.679 --> 0:09:25.640 any Trent officer. Winders says it happened during the Heart 0:09:25.679 --> 0:09:28.160 a Pride week with police say the attack does not 0:09:28.280 --> 0:09:31.559 appear to be related to events in the area. FDA 0:09:31.679 --> 0:09:34.400 officials are investigating the death of another infant who was 0:09:34.440 --> 0:09:38.240 given formula made by Abbot laboratories. The infant died in 0:09:38.320 --> 0:09:42.079 January and the FDA was notified. June tenth, Global News 0:09:42.120 --> 0:09:45.319 twenty four hours a day on air and on Bloomberg Quicktake, 0:09:45.600 --> 0:09:48.520 powered by more than twenty seven journalists and analysts more 0:09:48.559 --> 0:09:51.040 than a hundred twenty countries. I Michael Barr, and this 0:09:51.160 --> 0:09:58.559 is Bloomberg. Nathan Alright, Michael, thank you five o nine 0:09:58.559 --> 0:10:01.080 on Wall Street. Time for the Bloomberg Sports Uptake. In Morning, 0:10:01.160 --> 0:10:03.920 John Stashun Morning, Ephan Yankees. We're looking at a rare 0:10:04.000 --> 0:10:07.120 two game losing streak. East Soak Paridis, who hit three 0:10:07.120 --> 0:10:09.240 home runs Tuesday, had another than the first any Tampa 0:10:09.240 --> 0:10:11.559 Bay led four to one, back came the Yankees to 0:10:11.720 --> 0:10:14.600 home runs for Aaron Judge, now up to seven at 0:10:14.679 --> 0:10:17.800 Jose Travino where he yet another huge hit, game winning 0:10:17.840 --> 0:10:20.000 two on over eighth inning. The Yanks one, five to four. 0:10:20.400 --> 0:10:23.120 They're home tonight for Houston. Astros just beat the Mets 0:10:23.160 --> 0:10:26.120 five three. Is Yourdan Alvarez homer twice he's had twenty one. 0:10:26.160 --> 0:10:29.360 Colos Carrasco roughed up left from the parent injury. Only 0:10:29.360 --> 0:10:31.439 a two game series, but the first time the season 0:10:31.480 --> 0:10:34.120 the Mets have been swept over time at the Stanley 0:10:34.120 --> 0:10:37.199 Cup Finals, quickly ahead, Now a Cadrey inside the circle? Catrey, 0:10:38.360 --> 0:10:42.800 where's the fuck? How did that not go in? It? 0:10:42.960 --> 0:10:46.480 Did it did go in? It? Did it? Did? We 0:10:46.440 --> 0:10:52.920 were the Scars? No the CATRAI Getchadre. Cad I didn't 0:10:53.000 --> 0:10:57.440 said okay, yes he Tampa Bay thought Colorado has been 0:10:57.440 --> 0:10:59.719 called for too many men on the ice penalty. With 0:10:59.840 --> 0:11:01.600 the adds one three tow they leave the series three 0:11:01.600 --> 0:11:04.439 one and they can win the Cup in Denver tomorrow night. 0:11:04.800 --> 0:11:07.800 NBA Draft takes place tonight. The Nets host the draft, 0:11:07.840 --> 0:11:09.320 but they don't have a pick. They could have used 0:11:09.280 --> 0:11:11.920 Philadelphia's first round or they elected to save it until 0:11:12.000 --> 0:11:14.440 next year. Nick's have the eleventh pick. Reports they're trying 0:11:14.440 --> 0:11:17.400 to move up Orlando as the first pick, expected to 0:11:17.400 --> 0:11:20.640 take Auburn's Javari Smith. There's golf today near Hartford is 0:11:20.679 --> 0:11:23.839 the PGA Tour announces changed as if they claim they 0:11:23.840 --> 0:11:25.960 were gonna make anyway, but they admit they may be 0:11:26.040 --> 0:11:28.360 moving them up to the competition they're now facing from 0:11:28.360 --> 0:11:31.800 the Live Tour, more prize money. Several tournaments will no 0:11:31.880 --> 0:11:35.920 longer have the field cut midway through. John Stashar Bloomberg 0:11:35.920 --> 0:11:39.000 Sports all right. John thinks SMP future is now down 0:11:39.040 --> 0:11:41.840 one point down, futures down sixty eight. NASSECT futures are 0:11:41.920 --> 0:11:45.480 higher by thirty five points. As we await day two 0:11:45.559 --> 0:11:49.560 of FED Chair J. Powell testimony on Capitol Hill. The 0:11:49.559 --> 0:11:53.120 tenure Treasury is up fifteen thirty seconds. The yield three 0:11:53.160 --> 0:11:55.960 point zero nine percent on the benchmark tenure note and 0:11:56.000 --> 0:11:57.960 the yield on the two year right now three points 0:11:58.040 --> 0:12:02.160 zero one per cent. You're listening to Bloomberg Dave Bred 0:12:07.520 --> 0:12:10.040 Bloomberg eleven three oh weather cloudy through the morning. High's 0:12:10.200 --> 0:12:12.040 cool in the low seventies. Will be in the low 0:12:12.080 --> 0:12:14.480 eighties tomorrow with a mix of sun in cloud Saturday, 0:12:14.520 --> 0:12:17.959 mostly sunny, might hit ninety degrees right now sixty one 0:12:17.960 --> 0:12:24.160 in cloudy in Central Park. Markets, headlines and breaking news 0:12:24.240 --> 0:12:26.839 twenty four hours a day at Bloomberg dot Com. The 0:12:26.920 --> 0:12:31.040 Bloomberg Business atand at Bloomberg Quick Tape is a Bloomberg 0:12:31.120 --> 0:12:41.199 Business Flash and I'm Karen Moscow and European stocks retreating 0:12:41.280 --> 0:12:44.840 this morning. Bon yields tumbling is comments by Federal Reserve 0:12:44.920 --> 0:12:48.120 Chair Jerome Powell, and growth data in Europe stoke fear 0:12:48.160 --> 0:12:51.800 about a global downturn. Oil is extending losses, and the 0:12:51.920 --> 0:12:55.200 yield on German tenure bond Sinc seventeen basis points after 0:12:55.240 --> 0:12:58.439 an indicator of Euro Area economic activity count to a 0:12:58.520 --> 0:13:00.840 sixteen month low. Wh check the market every fifteen minutes 0:13:00.880 --> 0:13:03.440 throughout the trading day on Bloomberg. Taking a look at 0:13:03.520 --> 0:13:06.720 futures this morning, they are mixed. SMP futures up six 0:13:06.720 --> 0:13:10.400 points down, futures down the sixteen and nasday futures are 0:13:10.480 --> 0:13:13.400 up sixty eight. The decks in Germany is down nine 0:13:13.440 --> 0:13:15.720 tenths of upper cent. The ten year treasury up thirteen 0:13:15.720 --> 0:13:18.679 thirty seconds. You'll three point one zero percent yield on 0:13:18.720 --> 0:13:21.640 the two year three point oh one percent. Nine max 0:13:21.679 --> 0:13:24.200 Screwed oil is down two percent or two dollars fifteen 0:13:24.240 --> 0:13:26.360 cents at a hundred four dollars four cents of barrel 0:13:26.600 --> 0:13:28.720 co mexs go down to ten percent or three dollars 0:13:28.720 --> 0:13:31.480 fifty cents. At eighteen thirty four and ninety announced the 0:13:31.559 --> 0:13:33.839 euro is at one point oh five oh nine against 0:13:33.880 --> 0:13:36.480 the dollar, British ground one point one eight, the n 0:13:36.559 --> 0:13:39.000 one thirty five point four. It too, And this data 0:13:39.080 --> 0:13:41.480 check brought to you by Informatica and the Cloud. Your 0:13:41.520 --> 0:13:44.320 data has the power to do the extraordinary. Managed data 0:13:44.360 --> 0:13:47.520 across any location in the cloud for accurate and actionable insights. 0:13:47.520 --> 0:13:50.880 More at Informatica dot com. That's a Bloomberg business flash. 0:13:50.880 --> 0:13:52.839 Now here's Michael bar with more. I'm must going on 0:13:53.000 --> 0:13:56.120 around the world. Michael, good morning, Good morning Karen. Facing 0:13:56.200 --> 0:13:59.800 stubbornly high gas prices, President Joe Biden has urged Congress 0:13:59.880 --> 0:14:03.400 to to spend federal gas and diesel taxes for three months. 0:14:03.760 --> 0:14:06.160 The p g A Tour is countering the Saladi mag 0:14:06.160 --> 0:14:10.520 liv Golf Series. Tour Commissioner j Monahan unveiled his plan 0:14:10.679 --> 0:14:13.960 to increase purse sizes and revamped the schedule in an 0:14:13.960 --> 0:14:16.720 effort to keep players from leaving the tour. In baseball, 0:14:16.760 --> 0:14:19.400 the Yankees one, the Mets lost, the Orioles shut out, 0:14:19.440 --> 0:14:22.280 the National seven zip, the Red Sox won the Giants 0:14:22.280 --> 0:14:25.240 and A's lost in the NHL. After Game four, the 0:14:25.280 --> 0:14:28.120 Avalanche are a game away from winning the Stanley Cup. 0:14:28.400 --> 0:14:31.720 Colorado beat the Lightning in overtime. Three two. Global News 0:14:31.720 --> 0:14:34.520 twenty four hours a day on air and on Bloomberg Quicktake, 0:14:34.560 --> 0:14:37.880 powered by more than journalist and analyst more than a 0:14:37.920 --> 0:14:41.640 hundred twenty countries. Michael bar this is Bloomberg. Nathan alright, Michael. Thanks, 0:14:41.640 --> 0:14:44.280 It's five nineteen on Wall Street Live from the Bloomberg 0:14:44.280 --> 0:14:47.600 Interactive Brokers Studios. This is the Bloomberg day Break. Let's 0:14:47.640 --> 0:14:50.200 get more now in President Biden's call for a three 0:14:50.200 --> 0:14:54.000 month gas tax holiday and progress in the Senate on 0:14:54.040 --> 0:14:57.120 a bipartisan gun safety bill. Lots happening in the nation's 0:14:57.160 --> 0:14:59.200 capitol this morning, so we're pleased to be joined by 0:14:59.360 --> 0:15:02.520 bloombergvern At Congressional reporter Jack Fitzpatrick. He's in our Bloomberg 0:15:03.240 --> 0:15:07.440 studios in Washington, d C. Jack, Good morning. This call 0:15:07.520 --> 0:15:10.720 from President Biden for a three month gas tax pause 0:15:11.200 --> 0:15:14.200 doesn't sound like it's getting the warmest of receptions on 0:15:14.240 --> 0:15:16.800 Capitol Hill or Am I wrong? No, you're You're right. 0:15:16.840 --> 0:15:19.320 And I think the most interesting part of that is 0:15:19.360 --> 0:15:23.200 not the Republican pushback, which is unsurprising, but also that 0:15:23.280 --> 0:15:26.760 there there are key Democrats who don't seem impressed by this. 0:15:27.040 --> 0:15:29.960 You know, there's a statement out by Speaker Pelosi that 0:15:30.200 --> 0:15:34.240 didn't endorse the deal, almost just acknowledged it, but sidestepping 0:15:34.280 --> 0:15:37.160 the substance of it. Uh. And then meanwhile, we heard 0:15:37.160 --> 0:15:40.760 from Peter DeFazio, the Transportation and Infrastructure Chairman in the House, 0:15:41.400 --> 0:15:43.720 who argued that, you know, this would do more to 0:15:43.920 --> 0:15:47.600 take funds away from the Highway Trust Fund than it 0:15:47.680 --> 0:15:52.080 would to make a noticeable difference for individual consumers. Uh. 0:15:52.080 --> 0:15:56.960 There's also no guarantee or or nothing that would presumably 0:15:57.040 --> 0:16:00.720 be in a bill that would in or that all 0:16:00.760 --> 0:16:04.280 the savings go to consumers. You can't tell exactly how 0:16:04.400 --> 0:16:08.200 much of this would go to the owners of gas stations, 0:16:08.240 --> 0:16:11.520 for example. Uh. So there's there seemed to be some 0:16:11.600 --> 0:16:14.960 key Democrats who are not really hot on the idea. Uh. 0:16:15.280 --> 0:16:18.520 Expecting cooperation from Republicans right now on an idea like 0:16:18.560 --> 0:16:22.600 this is uh not realistic, But it's an example of 0:16:22.640 --> 0:16:25.600 the President feeling the need to have a plan, have 0:16:25.680 --> 0:16:28.840 a proposal, make it clear that he's trying to do something. 0:16:29.360 --> 0:16:32.000 Is there a sense Jack that this is almost like 0:16:32.040 --> 0:16:35.920 a desperation move from President Biden to put out something 0:16:35.960 --> 0:16:39.200 like this when other ideas that he's put out there 0:16:39.280 --> 0:16:43.000 so far, like releases from the strategic reserve, haven't worked 0:16:43.040 --> 0:16:48.480 so far. Yes, a sense of desperation has been pretty palpable. Uh. 0:16:48.560 --> 0:16:52.200 You hear it when the President talks publicly about gas 0:16:52.200 --> 0:16:55.520 prices and inflation in general, because he has he has 0:16:55.560 --> 0:16:57.880 made the case that there's only so much he can 0:16:57.920 --> 0:17:00.840 do and putting it in the global person active of 0:17:01.280 --> 0:17:05.879 broader price increases, the war in Ukraine. Uh, things that 0:17:05.960 --> 0:17:09.800 are beyond not only the President's control, but that even 0:17:09.880 --> 0:17:12.640 Congress can only do so much in the short term. 0:17:12.720 --> 0:17:16.240 There can be a longer term debate over energy policy, 0:17:16.680 --> 0:17:20.920 over oil and natural gas production and exports, but when 0:17:20.920 --> 0:17:25.720 it comes to addressing the high prices today, his hands 0:17:25.760 --> 0:17:29.160 are tied to some significant extent, and he has gone 0:17:29.160 --> 0:17:32.080 around making the case that that that's the that that's 0:17:32.240 --> 0:17:35.280 where he is. Uh, And he can pitch some ideas, 0:17:35.560 --> 0:17:39.720 but yes, a sense of desperation is pretty significant. Well, 0:17:39.760 --> 0:17:42.800 it is interesting that we are seeing, on the other hand, 0:17:43.240 --> 0:17:47.360 progress on something that we haven't seen progress on literally 0:17:47.440 --> 0:17:51.440 in decades in Washington, and that is a gun safety 0:17:51.480 --> 0:17:55.760 package on Capitol Hill. Yeah, they're still moving along. Despite 0:17:55.840 --> 0:17:59.119 some negative talk a few days ago. They did come 0:17:59.160 --> 0:18:02.840 to a led agislative agreement. They worked out, UH, their 0:18:02.920 --> 0:18:06.720 their concerns about taking that framework that they announced and 0:18:06.760 --> 0:18:10.240 actually figuring out the details. They're trying to move through 0:18:10.280 --> 0:18:13.800 the procedural votes as quickly as possible in the Senate. UH. 0:18:13.840 --> 0:18:15.960 They did a little bit of a maneuver by holding 0:18:16.000 --> 0:18:18.880 the first procedural vote on another issue and then amending 0:18:18.920 --> 0:18:22.200 that with this bill. But they're they're they're past the 0:18:22.320 --> 0:18:25.480 sixty vote threshold already in that initial procedural vote, and 0:18:25.720 --> 0:18:28.720 there are enough Republicans on board UH to try to 0:18:28.760 --> 0:18:32.080 move this along. And unless there's some significant surprise or 0:18:32.480 --> 0:18:35.119 a group of lawmakers change their mind. Is there a 0:18:35.119 --> 0:18:37.920 sense among Democrats Jack, that this is something that they 0:18:37.960 --> 0:18:42.119 can capitalize on in the November elections or is the 0:18:42.200 --> 0:18:45.800 economy and inflation the overriding concern we have about a 0:18:45.800 --> 0:18:48.720 minute left here. I think both are true. The economy 0:18:48.800 --> 0:18:52.000 is the overriding concern, But I don't think you'd want 0:18:52.000 --> 0:18:55.119 to be a Democrat running for reelection UH and have 0:18:55.320 --> 0:18:59.800 no real response to mass shootings. Uh, Democrats are trying 0:18:59.800 --> 0:19:02.840 to show people that they can accomplish things, and they 0:19:02.840 --> 0:19:05.040 can go campaign on a variety of things. They can 0:19:05.040 --> 0:19:07.680 talk about the infrastructure bill, they can talk about this. 0:19:08.000 --> 0:19:11.399 It doesn't change the underlying fact that families are seeing 0:19:11.800 --> 0:19:14.760 a lot of those savings that they've built up dissipate. 0:19:15.440 --> 0:19:18.679 The price rises have been much more persistent than a 0:19:18.680 --> 0:19:21.840 lot of people thought. Uh, it doesn't undo the frustration 0:19:21.880 --> 0:19:25.480 with the economy, but it's something that Democrats have wanted 0:19:25.480 --> 0:19:27.320 to do for a long time, and an ability to 0:19:27.440 --> 0:19:30.920 have a bipartisan accomplishment is definitely not a bad thing. 0:19:31.240 --> 0:19:33.800 Thanks for this, Jack, and having on with us. Jack Fitzpatrick, 0:19:33.840 --> 0:19:37.800 congressional reporter for Bloomberg Government. With all the developments happening 0:19:37.800 --> 0:19:40.480 in the nation's capital, will have Jack back on later 0:19:40.520 --> 0:19:42.840 in the program to talk more about these stories, as 0:19:42.840 --> 0:19:46.120 well as the latest on the January six hearings. They'll 0:19:46.160 --> 0:19:49.400 be going into a pause as the committee members look 0:19:49.400 --> 0:19:52.760 at yet more evidence into the attack at the capital. 0:19:53.240 --> 0:19:57.560 Right now, SMP futures are up two points now, futures 0:19:57.600 --> 0:20:01.480 down forty five, NASTAC futures are higher by fifty points now. 0:20:01.720 --> 0:20:09.399 This is Bloomberg. Bloomberg eleventh three oh weather cloudy this 0:20:09.440 --> 0:20:11.960 morning with a high in the low seventies. Today will 0:20:12.000 --> 0:20:14.280 be in the low eighties under a mix of sun 0:20:14.280 --> 0:20:17.520 and clouds. Tomorrow could see ninety by Saturday. Right now 0:20:17.680 --> 0:20:27.359 sixty one in Central Park, broadcasting live from the Bloomberg 0:20:27.400 --> 0:20:31.080 Interactive Broker Studio in New York, Bloomberg in Living freon 0:20:31.280 --> 0:20:35.360 to Washington, d C. Bloomberg on to Boston, Bloomberg one 0:20:35.359 --> 0:20:38.560 O six one to San Francisco, Bloomberg N sixteen to 0:20:38.600 --> 0:20:41.800 the country Sirius XM Chado one nineteen and around the 0:20:41.840 --> 0:20:45.679 globe the Bloomberg Business app in Bloomberg Radio dot Com. 0:20:45.680 --> 0:20:54.720 This is Bloomberg Daybreak. It's five thirty on Wall Street. 0:20:54.760 --> 0:20:57.680 Good morning. I'm Nathan Hagar and I'm Karen Moscow or 0:20:57.800 --> 0:20:59.840 just about four hours away from the open of you 0:21:00.040 --> 0:21:01.600 US trading. Let's get you up to date in the 0:21:01.600 --> 0:21:03.560 news you need to know at this hour. We begin 0:21:03.600 --> 0:21:07.280 with day two of congressional testimony from J Powell this morning. 0:21:07.280 --> 0:21:10.359 The fence here appears before the House Financial Services Committee 0:21:10.600 --> 0:21:14.639 Yesterday was his most explicit acknowledgement yet that raising interest 0:21:14.720 --> 0:21:17.960 rates quid lead to a recession. You're seeing growth slow 0:21:18.119 --> 0:21:21.280 from the very elevated levels of last year associated with 0:21:21.320 --> 0:21:24.639 the reopening. You're seeing the beginnings of job growth slowing 0:21:24.720 --> 0:21:27.679 to more sustainable levels, and you know there's risk in that. 0:21:28.000 --> 0:21:31.760 There's obviously risk in that we monetary policy is famously 0:21:31.840 --> 0:21:35.480 a blunt tool, and there's risk that weaker outcomes are 0:21:35.520 --> 0:21:38.359 certainly possible, but they're not our intent. Fans here, j 0:21:38.520 --> 0:21:42.160 Powell to lawmakers the economy is strong and well positioned 0:21:42.200 --> 0:21:46.040 to handle tighter monetary policy. Markets gave up early gains 0:21:46.080 --> 0:21:49.400 Karen on Powell's recession comments, Jeanette Garritty, E chief economist 0:21:49.400 --> 0:21:52.520 with Robertson Stephen, says, as recession talk grows, we could 0:21:52.520 --> 0:21:55.640 see inflations start to come down. I don't think it's 0:21:55.760 --> 0:21:58.400 firmly rooted, and there are awful lot of people who 0:21:58.400 --> 0:22:01.080 are now beginning to think about recession, and in thinking 0:22:01.080 --> 0:22:04.159 about recession, actually do believe that that will take the 0:22:04.280 --> 0:22:07.760 pressure off prices. Jeanette Garritty with Robertson Stephen says she 0:22:07.800 --> 0:22:11.000 believes j Pal's credibility is no longer an issue. Well, 0:22:11.040 --> 0:22:13.320 let's turned to oil now, Nathan, which is lower once 0:22:13.359 --> 0:22:17.880 again as concerns over a global economic slowdown intensify. Meantime, 0:22:17.920 --> 0:22:21.160 President Biden is continuing his push to ease gas prices. 0:22:21.280 --> 0:22:24.000 Bloomberg's Nia Young joins US Live with more Good Morning 0:22:24.160 --> 0:22:26.680 nied Down, Good Morning Care and President Biden is running 0:22:26.680 --> 0:22:29.399 out of options to eat prices at the pump, and 0:22:29.440 --> 0:22:32.359 in his latest action, he proposes a three month gas 0:22:32.359 --> 0:22:35.879 tax holiday, urging gas stations to play their part. I 0:22:36.000 --> 0:22:40.320