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

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Speaker 1: day Break for Monday, May second two. Coming up this hour,

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Speaker 1: US stocks begin the new trading month, coming off the

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Speaker 1: worst April in more than fifty years. Investors brace for

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Speaker 1: this week's Fed decision. Warren Buffett goes on a buying

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Speaker 1: spree in the first quarter, and Nancy Pelosi makes a

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Speaker 1: surprize visit to Ukraine. A new crime fighting strategy begins

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Speaker 1: today in New York City, Plus senators are calling on

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Speaker 1: President By to fight disruptions in the solar industry. I'm

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Speaker 1: Michael blarn More and I'm John stash Own sports ninth

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Speaker 1: straight win for the Yankees, that met to one another

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Speaker 1: series NBA playoff Road winds from Milwaukee and Golden State.

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Speaker 1: That's all's training ahead on Bloomberg Daybreak on Bloomberg eleven

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

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

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Speaker 1: Sirius x M one nineteen and around the world Old

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Speaker 1: on Bloomberg Radio dot Com and via the Bloomberg Business App.

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Speaker 1: Good morning, I'm Nathan Hagart and I'm Karen Moscow. US

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Speaker 1: Dock Index futures are rising this morning. We're coming up

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Speaker 1: to five o one on Wall Street, and we check

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Speaker 1: the markets every fifteen minutes throughout the trading day. On

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Speaker 1: Bloomberg SMP Future is up ten points down Future is

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Speaker 1: up ninety three and NASDAG futures up forty. Ten year

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Speaker 1: Treasury down one thirty second yield two point nine three percent,

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Speaker 1: and the yield on the two year two point seven

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Speaker 1: two percent, and NIMEX screwed oil is down two point

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Speaker 1: six percent. Nathan Well Karen investors begin this month of

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Speaker 1: May after coming off a historically bad April. The SNP

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Speaker 1: five hundred fell eight point eight percent for the worst

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Speaker 1: April performance since nineteen seventy. Tech investors haven't taken a

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Speaker 1: beating like this in nearly fourteen years. The NASDAC plunged

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Speaker 1: more than thirteen percent in April, it's worst performance since

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Speaker 1: October of two thousand eight. Katie Nixon, his chief investment

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Speaker 1: officer at Northern Trust. I mean, I think valuation is

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Speaker 1: very fragile in this rising rate environment here, and then

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Speaker 1: at the same time, you've got some fundamentals that you

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Speaker 1: know at best are sort of flattening out and at

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Speaker 1: worst are showing some declining trends and nets such is

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Speaker 1: sort of the poster child joined now by Amazon, that's

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Speaker 1: really showing the weakening of demand. Northern Trust Chief investment

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Speaker 1: Officer Katie Nixon notes the SNP and the NASTACK have

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Speaker 1: each fallen for four consecutive weeks. Well, bonds have also

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Speaker 1: been taking up pounding this year. Nathan and one of

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Speaker 1: the biggest investors outside America, things there may be more

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Speaker 1: pain ahead. We get the latest live with the Bloombirds,

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Speaker 1: John Tucker, John, Good morning, Good morning, Karen. Typically investors

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Speaker 1: can take refuge in bonds, especially U S treasuries, and

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Speaker 1: for years they've been supported by Japanese buyers, but that

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Speaker 1: is no longer the case. Japanese institutional managers are now

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Speaker 1: fueling a great bond sell off. The largest overseas holder

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Speaker 1: of treasuries has offloaded almost sixty billion dollars over the

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Speaker 1: past three months. That's a warding to data from BEMO

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Speaker 1: Capital Markets. There are several reasons market volatility, divergent monetary policy,

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Speaker 1: and a weaker yen, and Japanese investors may wait for

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Speaker 1: higher and higher rates before ever jumping back in live

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Speaker 1: in New York on John Tucker Bloomberg Daybreak. John. Thanks.

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Speaker 1: Of course, both bond and equity investors will be paying

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Speaker 1: close attention to this week's policy decision from the Fed.

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Speaker 1: It is one of the most anticipated in years. We

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Speaker 1: get a preview from Bloomberg's Michael McKay. The government reported

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Speaker 1: Friday that employment costs rose the most since nine in

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Speaker 1: the first quarter, while the Fed's favorite inflation gauge rose

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Speaker 1: to the highest since nine two. And let's say that

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Speaker 1: more than seals a fifty basis point grade increase from

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Speaker 1: the Fed on Wednesday. It raises the question of whether

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Speaker 1: the FED needs to keep raising by fifty or even

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Speaker 1: seventy five going forward. They won't say, but Chairman j

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Speaker 1: Powe will be asked about it at his news conference.

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Speaker 1: The Fed will also be detailing how and when it

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Speaker 1: will start reducing the balance sheet and trying to reassure

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Speaker 1: Americans inflation is their top priority. Michael McKie Bloomberg Daybreak. Alright, Mike,

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Speaker 1: thanks and well, of course, we'll have full coverage and

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Speaker 1: analysis of Wednesday's FED decision beginning at one pm Wall

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Speaker 1: Street time on both Bloomberg Radio and television care. All right, Nathan,

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Speaker 1: thank you. And it's also another busy week for earnings,

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Speaker 1: with more than a hundred sixty companies in the S

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Speaker 1: and P five hundred reporting. We get a preview from

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Speaker 1: Bloomberg s Charlie Pellett. Big technology firms and banks are

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Speaker 1: behind us, but we'll be hearing from a broad swath

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Speaker 1: of companies as investors assess the ongoing themes of inflation,

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Speaker 1: consumer demand, and geopolitics. Sarah Malick is chief investment officer

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Speaker 1: at Nouven. Earnings looked strong. Three quarters of companies are

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Speaker 1: beating Arnis double digit revenue growth overall and about five

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Speaker 1: to six percent Arnis Group. Among some of the names

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Speaker 1: reporting this week Airbnb, A, I, G, A M D, Conico, Phillips,

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Speaker 1: Uber Lifts, Starbucks, young brands and travel names Expedia, Hilton

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Speaker 1: and Marriott in New York. Charlie pet Bloomberg day break.

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Speaker 1: All right, Charlie, thanks and why. Company that already reported

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Speaker 1: over the weekend was Berkshire Hathaway. The Warren Buffett conglomerate

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Speaker 1: eked out a profit gain, but perhaps more importantly, the

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Speaker 1: billionaire went on a buying spree in the first quarter

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Speaker 1: Let's get the latest line from bloombergs Greneda Young, Good morning, Grenita,

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Speaker 1: Good morning. Nathan Warren Buffett made forty one billion dollars

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Speaker 1: in net stock purchases during the first quarter. It was

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Speaker 1: his biggest buying spree in at least a decade, and

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Speaker 1: a war in a soaring US inflation did not deter

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Speaker 1: him from doubling down on a tried and tested strategy

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Speaker 1: to navigate the fallout. Now, among the purchases, Berkshire raises

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Speaker 1: its Chevron holdings and Buffett discloses that the company now

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Speaker 1: owns an expanded nine point five percent stake in Activision Blizzard.

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Speaker 1: And at the annual shareholder meeting, the nine year old

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Speaker 1: Buffett and his business partner, year old Charlie Munger, gave

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Speaker 1: no indication that they planned to step back from their

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Speaker 1: roles anytime soon. Live in New York. I'm Rennita Young,

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Speaker 1: Bloomberg day break. All right, rened to thank you and

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Speaker 1: a Let's get to the latest on the war in Ukraine.

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Speaker 1: After waits, the Russian bamar men civilians are starting to

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Speaker 1: leave a besiege steel plant in Mario Pole. President Zelenski

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Speaker 1: says about a hundred men, women, and children will arrive

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Speaker 1: in Ukrainian Control Territory this morning. And now sticker Nancy

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Speaker 1: Pelosi plans to meet with Poland's president today after surprise

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Speaker 1: visit to Kiev. We get that story from Bloomberg's and Baxter.

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Speaker 1: This was a well kept secret. Pelosi leading a congressional

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Speaker 1: delegation pledging continued support, Thank you, and says continued usaid.

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Speaker 1: Pelosi then traveled back to Poland in San Francisco, I'm

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Speaker 1: at Baxter Bloomberg daybreak. All right, at thanks, Let's turn

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Speaker 1: to the pandemic now, where our focus remains in China

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Speaker 1: coronavirus lockdowns. They're taking a significant toll on the economy

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Speaker 1: over the weekend. Data showed both manufacturing and services activity

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Speaker 1: plunged last month to their worst levels in more than

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Speaker 1: two years. And in Australia, Nathan Quantas has revived a

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Speaker 1: plan for the world's longest NonStop flights. They would connect

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Speaker 1: Australia's East coast with New York in London. The airline

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Speaker 1: says it's buying twelve Airbus jets that can make the

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Speaker 1: twenty hour journeys. Quantis will begin the service from Sydney

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Speaker 1: and hen straight ahead We have your latest local headlines,

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Speaker 1: plus the check of sports, and this is Bloomberg. All right, Karen. Thanks.

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Speaker 1: It's five oh seven on Wall Street, fifty four degrees

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Speaker 1: in Central Park. Big problems on the rails this morning.

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Speaker 1: New Jersey Transit is suspended from Trent and De Penn station.

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Speaker 1: Details coming up in traffic. First. Michael bar with more

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Speaker 1: on what's going on in New York and around the world.

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Speaker 1: Good morning, Michael, Good morning Nathan. A new crime fighting

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Speaker 1: initiative begins today in New York City. Mayor Eric Adams

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Speaker 1: says in the most forty most violent precincts, authorities will

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Speaker 1: move neighborhood coordinating officers into evening patrols. Other plans include

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Speaker 1: sending field intelligence officers to the street. Overall crime is

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Speaker 1: up last month compared to April of last year. Violence

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Speaker 1: is also on the rise. Mayor Adams also says they

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Speaker 1: will fight people who cheat on paying subway fares in

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Speaker 1: the city. Broadway theaters are ending the policy of requiring

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Speaker 1: customers to show proof of vaccination. The Broadway League says

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Speaker 1: in a statement that the owners and operators of all

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Speaker 1: forty one Broadway theaters are extending the mass requirement at

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Speaker 1: least through the end of May, but many would no

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Speaker 1: longer check for vaccination status. President Biden spoke in Minneapolis

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Speaker 1: at a memorial service for former Vice President Walter Mondale.

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Speaker 1: Mondale died in April of last year at age ninety three.

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Speaker 1: President Biden said he and Mondale, who was known as Fritz,

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Speaker 1: were close friends. I'm I moved to be with you

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Speaker 1: here today as an honor one of the great giants

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Speaker 1: in American history. And that's not hyperboway. Fritz was a

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Speaker 1: giant in American clinical history. President Biden described Mondale as

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Speaker 1: a dedicated to patriot and public servant. The judge Joy

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Speaker 1: the Country Music Hall of Fame last night, just today,

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Speaker 1: after Naomi Judd died unexpectedly. Naomi's daughters, Winona and Ashley Judd,

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Speaker 1: accepted the honor. Wenona Judd, this is the first time

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Speaker 1: I've talked since saying goodbye to twenty A kistra on

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Speaker 1: the forehead and I walked away, and this is the

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Speaker 1: first place I've been. Wenona and Ashley Judd said their

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Speaker 1: mother died at the age of seventy six due to

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Speaker 1: the disease of mental illness. Nearly two dozen senators today

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Speaker 1: called on President Biden to swiftly advance a trade probe

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Speaker 1: that they said was already causing massive disruption in the

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Speaker 1: U S. Solar industry. According to the letter from twenty

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Speaker 1: two senators, the investigation into whether Chinese companies are circumventing

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Speaker 1: decades old tariffs by assembling solar cells modules in Southeast

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Speaker 1: Asia will severely harm American businesses and workers. Global News

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Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake,

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

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Speaker 1: for more than a hundred twenty country He's Michael bar

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Speaker 1: This is Bloomberg, Nathan. Thanks Michael. Coming up to five

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Speaker 1: ten on Wall Street. Time for the Bloomberg Sports Uptake.

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Speaker 1: Come morning, John s Morton, Nathan. The Mets weekend, of course,

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Speaker 1: began with the no hitter. It ended last night with

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Speaker 1: Max scherz Are giving up three home runs, but the

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Speaker 1: Mets batch produced fifteen hits and a ten six win

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Speaker 1: over the Phillies at City Field. Jeff McNeil had four

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Speaker 1: of those hits, raising his average to three sixty one.

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Speaker 1: Dom Smith had four hits. He drove in three runs,

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Speaker 1: so did Starling Marte. The Mets have now playing seven series,

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Speaker 1: they have not had a sweep that they've won all seven.

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Speaker 1: The Yankees have had three straight series sweeps, nine wins

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Speaker 1: in a row. In Kansas City, they trailed four to one,

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Speaker 1: took to leave in a seventh inning, scoring two runs

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Speaker 1: without a hit, and they went on to win six

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Speaker 1: to four. Aaron Judge homer with one out in the

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Speaker 1: first inning and hit another with two outs to the night.

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Speaker 1: Judge had no homer's over his first thirteen games. He's

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Speaker 1: hit seven in his last eight games, and the Yanks

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Speaker 1: take this nine game win, streaking tonight's game in Toronto.

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Speaker 1: NBA playoffs of Brown two Milwaukee one in Boston one

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Speaker 1: oh one to eighty nine on the Son to the

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Speaker 1: Compo had a triple double. Golden State in Memphis lost

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Speaker 1: Dray Bond Green of the second quarter of objected for

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Speaker 1: a flagrant foul. They held at one point lead at

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Speaker 1: the end. They will throw it in fine eight Clark

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Speaker 1: Clark bounced pass over to Moran. He'll drive in Scooper's

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Speaker 1: no good greebout wagers the Warriors win. The Warriors win Memphis.

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Speaker 1: Scott the look the Morean couldn't finish it head Golden

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Speaker 1: State captures State one with Tree Bond grade in the

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Speaker 1: locker room game, and they called two more series openers tonight.

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Speaker 1: It's also opening night in the Stanley Cup Playoffs, a

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Speaker 1: quartet of games, including the Bruins at Carolina. The Hurricanes

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Speaker 1: won the three regular season meetings by Combined Sports sixteen

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Speaker 1: to one. Rangers and Penguins Game one at the Garden Tomorrow.

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Speaker 1: John stash Award Bloomberg Sports Okay, John, thanks SMP futures

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Speaker 1: right now up twelve point, Staff futures up a hundred,

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Speaker 1: twenty nastack futures up forty five points. The ten Your

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Speaker 1: treasury down one thirty second, the yield two point nine

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Speaker 1: three percent. Insights on this market next with Brian Levitt

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Speaker 1: of Investco. This is Bloomberg Bloomberg eleven three oh Weather

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Speaker 1: turning cloudy today with the high in near sixty degrees,

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Speaker 1: will be in the mid sixties partly to mostly cloudy tomorrow.

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Speaker 1: Showers Wednesday with the high in near sixty Right now

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Speaker 1: fifty four degrees in Central Park Markets. Headlines and breaking

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Speaker 1: news twenty four hours a day at Bloomberg dot Com,

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Speaker 1: The Bloomberg Business Outland at Bloomberg Quicktape. This is a

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Speaker 1: Bloomberg Business flash and I'm Karen Moscow. The dollar is

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Speaker 1: steady this morning. US DOT Index futures, meanwhile, are higher.

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Speaker 1: There are worries over high inflation, tightening monetary policy in

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Speaker 1: China's COVID lockdowns that are contributing to some investor caution

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Speaker 1: this morning. But again treasuries are moving higher, and this

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Speaker 1: was after April's slump, which is among the worst since

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Speaker 1: the pen demic. Royal markets right now it's in p

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Speaker 1: futures are up about sixteen points down, futures up one

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Speaker 1: two and ASDAK futures up forty eight. We checked the

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

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Speaker 1: and the Dacks in Germany is down one percent. Ten

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Speaker 1: year treasury down one thirty second deal two point on

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Speaker 1: three percent. The yield on the two year two point

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Speaker 1: seven two percent. Nine X screwed oil is downward than

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Speaker 1: three percent on three dollars twenty five cents and one

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Speaker 1: dollar four cents of beryl. As a Bloomberg business flash,

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Speaker 1: now here's Michael Barr with more on what's going on

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Speaker 1: around the world. Muchel, Good morning, Good morning, Karen. The

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Speaker 1: evacuation has begun for civilians hold up at a steel

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Speaker 1: plan in the Ukrainian city of Mariopol after nearly two

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Speaker 1: months under siege by Russian forces. Local officials said people

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Speaker 1: sheltering elsewhere in the city would also be allowed out. Today.

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Speaker 1: In a surprise visit to Ukraine, how speaker Nancy Pelosi

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Speaker 1: promised continued support. Today, Pelosi met with Poland's president. In

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Speaker 1: the NBA layoffs, the Celtics lost to the Bucks one

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Speaker 1: oh one eighty nine in their opening game of their series.

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Speaker 1: The Warriors beat the Grizzlies one seventeen one sixteen in

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Speaker 1: their game one. In baseball, the Yankees and Mets one.

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Speaker 1: The Orioles beat the Red Sox nine five. The Nationals

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Speaker 1: beat the Giants eleven five. The A's lost. Global News

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Speaker 1: twenty four hours a day on the airand on Bloomberg Quicktake,

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Speaker 1: powered by more than twenty seven hundred journalists and analyst

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Speaker 1: are more than a hundred twenty countries. Michael Barr and

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Speaker 1: this is Bloomberg. Nathan Alright, Michael, Thanks, It's five nineteen

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Speaker 1: on Wall Street Live from the Bloomberg Interactive Broker Studios.

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Speaker 1: This is Bloomberg Daybreak. As we get ready to kick

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Speaker 1: off a new trading month. We are joined by Brian Levitt,

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Speaker 1: global market strategist at invest Go. Brian, it's great to

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Speaker 1: speak with you this morning. And you know the old

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Speaker 1: saying selling may go away, but investors already took care

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Speaker 1: of that in April. So where now, Brian? Yeah, you know,

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Speaker 1: and actually historically selling may and go away hasn't been

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Speaker 1: as good as a strategy as as people as people

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Speaker 1: think that it's been. Um. Yeah, Look, it's gonna be challenging.

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Speaker 1: We're still in an environment where the Federal Reserve needs

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Speaker 1: the tightened policy pretty significantly. We we know that we've

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Speaker 1: got pretty strong demand, which is good for the economy,

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Speaker 1: but we've also got supply challenges and so for the

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Speaker 1: Fed to bring down inflationary pressure, they're gonna have to

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Speaker 1: work on the demand side, which is tightening of financial conditions,

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Speaker 1: which means, you know, equities and credit are still likely

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Speaker 1: to be volatile. The good news is, um, a lot

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Speaker 1: of pain has has already been brought to these markets.

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Speaker 1: We don't think a recession is in the off things,

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Speaker 1: so you know, we should start to see some signs

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Speaker 1: of of equity markets of bottoming. But but again it's

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Speaker 1: gonna be a challenging process. Ultimately, I think we'll we'll

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Speaker 1: find our way through it, but but investors should expect

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Speaker 1: more volatility along the way. So you don't think this

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Speaker 1: market has found bottom yet. I think we're certainly getting closer. Typically,

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Speaker 1: what you see is a a larger capitulation amongst tail

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Speaker 1: investors um, you know, and I think we're starting to

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Speaker 1: get closer. We're starting to see some signs of a

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Speaker 1: pretty extreme barishness. We've got a lot of names within

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Speaker 1: the embassy is trading well below um, you know, fifty

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Speaker 1: and two D day moving averages. So so we're starting

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Speaker 1: to get there. I think the challenges that financial conditions

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Speaker 1: have tightened, but perhaps have not tightened as as much

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Speaker 1: as they need to in order to start bringing inflationary

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Speaker 1: pressures down. So you know that, as always, we don't

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Speaker 1: want to fight the Fed. The Fed is going to

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Speaker 1: have to to tighten financial conditions further, which which could

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Speaker 1: put some pressure in markets. But ultimately our view is

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Speaker 1: that inflationary pressures will start to trend in the right direction,

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Speaker 1: the FED will front load those interest rate hikes UM

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Speaker 1: and then the hope is and our belief is is

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Speaker 1: that as inflationary pressures moderate, the FED will be able

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Speaker 1: to back off their tightening stands and thus not causing

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Speaker 1: over I should in the economy, which should provide a

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Speaker 1: better backdrop for markets. When you say front loading interest

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Speaker 1: rate hikes, are you thinking multiple fifty basis point moves? Uh?

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Speaker 1: And how many? Yeah, that's what we're hearing. That's what

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Speaker 1: the market is already pricing in. So you know, the

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Speaker 1: market is already expecting fifty basis point hikes at the

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Speaker 1: next three meetings, which I believe is the right way

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Speaker 1: to go. Look, the bond market has already priced in

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Speaker 1: a lot of the move. Um. Yes, equities have sold

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Speaker 1: off as you would expect when policy starts to shift. Um,

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Speaker 1: we might as well go ahead and and start to

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Speaker 1: deliver on those rate hikes so we can start to

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Speaker 1: tighten financial conditions further and and start to bring down

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Speaker 1: inflationary pressures. So where do you advise your clients to

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Speaker 1: adjust their portfolios in this kind of rate hiking cycle

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Speaker 1: with a front loading FED over the next few months. Yeah,

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Speaker 1: you start to prepare for the slow down in economic activity.

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Speaker 1: Now people think of a slowdown and economic activity is ominous.

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Speaker 1: Usually equities performed well in a slowdown in economic activity.

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Speaker 1: You want to shift towards higher quality, more defensive, cash

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Speaker 1: flow generating businesses, away from the speculative type names that

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Speaker 1: drove a lot of the market in in one I

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Speaker 1: think is government bonds tend to provide nice ballot in

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Speaker 1: a slowdown, and everybody's fleeing government bonds as interest rates

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Speaker 1: move up, but an equity government bond bar bell tends

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Speaker 1: to do well in a slowdown. The bigger question there, Nathan,

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Speaker 1: is due is the next move from there a contraction

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Speaker 1: or our inflationary pressure is gonna come down, allowing the

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Speaker 1: consumer to start to feel better and we move back

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Speaker 1: into a more expansionary environment. The latter would be my view,

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Speaker 1: but for now it's a slowdown. Higher quality investments tend

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Speaker 1: to do well in a slowdown. So in our last

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Speaker 1: thirty seconds here, Brian, you're still expecting that the S

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Speaker 1: and P is gonna end this year higher than than

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Speaker 1: it did last year. Well, I mean, we've we've certainly

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Speaker 1: got a lot to dig out of, so I think

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Speaker 1: that'll be a challenge. The question is whether you know

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Speaker 1: where we go from here again? I expect some near

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Speaker 1: term volatility, but ultimately I think the markets will start

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Speaker 1: to to grind higher from where we are now. Now,

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Speaker 1: does that mean a positive year for markets? That's gonna

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Speaker 1: be tough, right, That would that would envision a pretty

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Speaker 1: significant move from where we are now, given how much

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Speaker 1: damage has already been done. But can we move higher

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Speaker 1: from here? Yeah? Again, it's gonna be volatile, but typically

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Speaker 1: markets tend to perform well in a slow down phase

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Speaker 1: so long as the FED doesn't have to tighten the

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Speaker 1: screws so significantly. Thanks for this, Brian, great having you

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Speaker 1: on with us. Brian Levitt, global market strategists at invest

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Speaker 1: Right now, SMP futures are moving a little bit higher,

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Speaker 1: with OU up seventeen points, Staff futures up a hundred

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Speaker 1: sixty three, NASTAC future is higher by sixty points, and

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Speaker 1: the tenure Treasury is down one thirty second, the yield

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Speaker 1: to point nine three percent. You're listening to Bloomberg Daybreak

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Speaker 1: Bloomberg eleven three oh Weather turning cloudy today with a

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Speaker 1: high near sixty degrees mid sixties, partly to mostly cloudy tomorrow,

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Speaker 1: showers in the high near sixty on Wednesday. Right now,

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Speaker 1: clouds and fifty four degrees in Central Park. Broadcasting live

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Speaker 1: from the Bloomberg Interactive Broker Studio in New York, Bloomberg

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Speaker 1: Eloving Free to Washington, d C, Bloomberg to Boston, Bloomberg

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Speaker 1: one O six one to San Francisco, Bloomberg nine sixty

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Speaker 1: to the country, Sirius XM to one nine, and around

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Speaker 1: the globe the Bloomberg Business apt and Bloomberg Radio dot Com.

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Speaker 1: This is Bloomberg Daybreak. It's five thirty on Wall Street.

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Speaker 1: Good morning. I'm Nathan Hager and I'm Karen Moskwer. Just

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Speaker 1: about four hours away from the open of US trading.

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Speaker 1: Let's get you up to date on the news you

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Speaker 1: need to know it issh our traders entering May after

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Speaker 1: historically poor April than NASDAK had its worst months since

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Speaker 1: October at two eight, and the SMP had its worst

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Speaker 1: April since nineteen And it comes, Karen is the Federal

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Speaker 1: Reserve is expected to raise interest rates fifty basis points

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Speaker 1: at this Wednesday's meetings. Miller Tayback Chief market strategist Matt

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Speaker 1: Mayley says, if inflation persists, the FEDS path forward becomes murkier.

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Speaker 1: That's the fear that the Fed is going to have

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Speaker 1: no choice but to tighten further and and call, you know,

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Speaker 1: because of the spears inflation, and that's going to cause

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Speaker 1: the market to fall further than it has Matt Malie

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Speaker 1: and Miller. Taback says traders should take advantage of the

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Speaker 1: recent sell off. And it's not just stocks, Nathan, the

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Speaker 1: bond market. It's also coming off a historically bad month

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Speaker 1: and there could be more pain ahead. Bloomberry's John Tucker

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Speaker 1: tells US that's being fueled by Japanese investors John go

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Speaker 1: Mortay Karen Japanese institutional managers known for their legendary US

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Speaker 1: step buying sprees and now fueling the Great Bomb sell off.

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Speaker 1: The largest overseas holder of view US treasuries as offloaded

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Speaker 1: almost sixty billion dollars over the past three months. Currently

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Speaker 1: heading costs of off sat the appeal of higher US yields,

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Speaker 1: Japanese investors may not return until the benchmark tenure yield

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Speaker 1: trades firmly above three percent. Live to New York on

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Speaker 1: John Tucker Bloomberg Day Break. All right, John, Thanks over

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Speaker 1: the weekend. Warren Buffett conglomerate Burkeshire Hathaway reported earnings, and

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Speaker 1: it revealed the billionaire was very active in the first quarter.

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Speaker 1: Bloomberg Trinita Young joins us Live with that story. Good morning, Granina,

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Speaker 1: Good morning. Nathan Warren Buffett made forty one billion dollars

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Speaker 1: in net stock purchases during the first quarter, his biggest

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Speaker 1: buying spree in at least a decade, and a warrant

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Speaker 1: soaring US inflation did not deter him from doubling down

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Speaker 1: on a tried entrusted strategy to navigate the fallout among

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Speaker 1: the purchases. Berkshire raises it's Chevron Holdings, and the company

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Speaker 1: now owns an expanded nine point five percent stake in

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Speaker 1: act division Blizzards, and at the annual shareholders meeting, the

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Speaker 1: nine year old Buffett and his business partner, at ninety

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Speaker 1: eight year old Charlie Munger, gave no indication that they

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Speaker 1: plan to step back from their roles anytime soon. Live

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Speaker 1: in New York. I'm Nita Young, Bloomberg Daybreak al right,

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Speaker 1: rened to thank you. While overseas in Ukraine, about a

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Speaker 1: hundred civilians were evacuated from the besieged steel plant in

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Speaker 1: the port city of Mario pol Ukrainian President Vladimir's Lenski

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Speaker 1: met with the US House Speaker and Anti Pelosi during

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Speaker 1: a surprise visit this weekend, and keep the House Speaker

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Speaker 1: plans to meet with Poland's president today and again. Futures

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Speaker 1: are higher. Straight ahead your latest local headlines, plus a

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Speaker 1: check of sports. And this is Bloomberg. Thanks Caring. It's

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Speaker 1: five thirty three on Wall Street, trifty three degrees in

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Speaker 1: Central Park, New Jersey. Transit is suspended between Prenton and

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Speaker 1: Penn Station. It's because of overhead wire problems. Will tell

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Speaker 1: you more in traffic shortly. First, Michael Bars here with

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Speaker 1: more on what's going on in New York and around

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Speaker 1: the world. Michael, thank you very much. Nathan. New anti

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Speaker 1: crime efforts begin today in New York City. Mayor Eric

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Speaker 1: Adams says in the forty most violent precincts, authorities will

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Speaker 1: move neighborhood coordinating officers into evening patrols. Other plans include

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Speaker 1: sending field intelligence officers to the street. Overall crime is

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Speaker 1: up thirty percent last month compared to April of last year.

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Speaker 1: There Adams also says they will crack down on fair

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Speaker 1: cheaters in the subways. Nearly two dozen senators today implored

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Speaker 1: President Joe Biden to swiftly advance a trade probe that

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Speaker 1: they said was already causing massive disruption in the U

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Speaker 1: S solar industry. The senators said the investigation involves whether

427
00:24:32,920 --> 00:24:38,200
Speaker 1: Chinese companies are circumventing decades old tariffs by assembling solar

428
00:24:38,280 --> 00:24:41,680
Speaker 1: cells and modules in Southeast Asia. Hearing is set for

429
00:24:41,840 --> 00:24:45,080
Speaker 1: today to determine if the remaining three survivors of the

430
00:24:45,160 --> 00:24:48,240
Speaker 1: Tulsa race massacre will be able to take their case

431
00:24:48,359 --> 00:24:51,679
Speaker 1: to trial. All three remaining survivors are over one hundred

432
00:24:51,800 --> 00:24:54,720
Speaker 1: years old, and their lawyers will argue that the city

433
00:24:54,760 --> 00:24:57,879
Speaker 1: should be held accountable for the public nuisance created by

434
00:24:57,920 --> 00:25:02,000
Speaker 1: the massacre. How of her City council member, Vanessa Hall

435
00:25:02,080 --> 00:25:05,200
Speaker 1: Harper says, the City of Tulsa's lawyers are using the

436
00:25:05,280 --> 00:25:08,359
Speaker 1: courts to get around the community led planned to compensate

437
00:25:08,440 --> 00:25:12,320
Speaker 1: them to use Beyond Apology to discredit this case is

438
00:25:12,400 --> 00:25:14,919
Speaker 1: nothing but one of the tricks played by white supremacy

439
00:25:15,520 --> 00:25:18,760
Speaker 1: and I'm not calling forth. The so called Beyond Apology

440
00:25:18,840 --> 00:25:22,119
Speaker 1: project was passed to examine how to repair damage caused

441
00:25:22,160 --> 00:25:25,600
Speaker 1: by the massacre. The Judds were inducted in the country

442
00:25:25,680 --> 00:25:28,360
Speaker 1: music Hall of Fame. Last night, just to day after

443
00:25:28,480 --> 00:25:31,920
Speaker 1: singer Naomi Judd died, her daughter Wenona, who was the

444
00:25:32,040 --> 00:25:35,200
Speaker 1: other half of the singing duo, spoke and accepting the

445
00:25:35,280 --> 00:25:38,480
Speaker 1: award alongside her sister Ashley. I'm gonna make this fast

446
00:25:38,560 --> 00:25:43,200
Speaker 1: because my heart's broken and I feel so blessed, and

447
00:25:43,280 --> 00:25:46,520
Speaker 1: it's a very strange dynamic to be this broken in

448
00:25:46,600 --> 00:25:50,160
Speaker 1: this blessed Wenona and the family said. Naomi Judd died

449
00:25:50,280 --> 00:25:52,640
Speaker 1: at the age of seventy six due to the disease

450
00:25:52,720 --> 00:25:55,720
Speaker 1: of mental illness. Global News twenty four hours a day

451
00:25:55,760 --> 00:25:58,640
Speaker 1: on air and on Bloomberg Quicktake, powered by more than

452
00:25:59,400 --> 00:26:02,359
Speaker 1: under journals to analists more than twenty countries. Him Michael

453
00:26:02,400 --> 00:26:10,760
Speaker 1: Barrn this is Bloomberg NAC. Thanks Michael wall Street. Time

454
00:26:10,760 --> 00:26:13,600
Speaker 1: for the Bloomberg Sports Update with John Stenshi. Thanks Nathan

455
00:26:13,720 --> 00:26:16,560
Speaker 1: Yankees and Mets. Two best records in baseball Mets in

456
00:26:16,640 --> 00:26:18,760
Speaker 1: Phillies last night in City Field. Next year's who did

457
00:26:18,840 --> 00:26:21,080
Speaker 1: not have his best stuff, gave up three home runs,

458
00:26:21,160 --> 00:26:23,639
Speaker 1: one to his former teammate Brice Harper, two more to

459
00:26:23,720 --> 00:26:26,719
Speaker 1: the Met killer from last year, Kyle Schwarber. The Phillies

460
00:26:26,800 --> 00:26:28,399
Speaker 1: hit four home runs and all the Mets did not

461
00:26:28,600 --> 00:26:31,240
Speaker 1: hit any and yet the Mets won ten the six

462
00:26:31,720 --> 00:26:34,040
Speaker 1: with a fifteen hit attack and surges are able to

463
00:26:34,080 --> 00:26:37,080
Speaker 1: improve the four and oh. Before the Mets one another series,

464
00:26:37,520 --> 00:26:40,119
Speaker 1: their seventh in a row, the Yankees one another game

465
00:26:40,520 --> 00:26:42,560
Speaker 1: and their ninth in a row, finished to sweep in

466
00:26:42,680 --> 00:26:45,000
Speaker 1: Kansas City, six to four. Aaron Judge a long home

467
00:26:45,080 --> 00:26:47,080
Speaker 1: run in the first inning, but the Royals had a

468
00:26:47,200 --> 00:26:49,680
Speaker 1: four to one lead and the Yanks team back. Judge

469
00:26:49,720 --> 00:26:52,520
Speaker 1: hit another homer in the nineties at seven homers in

470
00:26:52,600 --> 00:26:55,080
Speaker 1: his last eight games. Yanks played tonight in Toronto, top

471
00:26:55,200 --> 00:26:58,200
Speaker 1: two teams in the Al East. The Yankee manager Aaron Brune, Obviously,

472
00:26:58,240 --> 00:27:00,320
Speaker 1: they're a really good team off to a good start

473
00:27:00,400 --> 00:27:03,640
Speaker 1: as well. Um, you know, a team I'm sure we're

474
00:27:03,640 --> 00:27:06,119
Speaker 1: gonna have to battle with all year, uh if we

475
00:27:06,240 --> 00:27:07,600
Speaker 1: want to get to where we want to go. So

476
00:27:08,560 --> 00:27:11,159
Speaker 1: looking forward to going up there and playing against one

477
00:27:11,200 --> 00:27:13,240
Speaker 1: of the games best night start the series, game and

478
00:27:13,320 --> 00:27:15,400
Speaker 1: a half ahead of the Blue Jays. Mets Tonight play

479
00:27:15,440 --> 00:27:18,600
Speaker 1: the Atlanta Braves at City Field. NBA playoffs started Round two,

480
00:27:18,720 --> 00:27:21,879
Speaker 1: two wins by the road teams Milwaukee in Boston one

481
00:27:21,920 --> 00:27:24,480
Speaker 1: O one nine. Jana's Sons of the compo a triple

482
00:27:24,520 --> 00:27:28,240
Speaker 1: double Golden State A one seventeen won sixteen winning Memphis.

483
00:27:28,280 --> 00:27:30,840
Speaker 1: The other two series start tonight. Also started the Stanley

484
00:27:30,880 --> 00:27:33,600
Speaker 1: Cup playoffs from four games the Rangers in Pittsburgh Penguins

485
00:27:33,680 --> 00:27:36,760
Speaker 1: begin their series tomorrow at the Garden. Rangers top scorer

486
00:27:36,880 --> 00:27:39,200
Speaker 1: Rtemmy Panerain injured at the end of the regular season,

487
00:27:39,240 --> 00:27:41,680
Speaker 1: but he has been cleared to play a series. Open

488
00:27:41,760 --> 00:27:44,680
Speaker 1: at Golf in Mexico went for John ROMs versus last

489
00:27:44,760 --> 00:27:48,280
Speaker 1: year's US Open. John stash ellin Bloomberg Sports. Maybe thanks

490
00:27:48,280 --> 00:27:50,520
Speaker 1: Sean thirty seven on Wall Street time for the Tri

491
00:27:50,680 --> 00:27:54,600
Speaker 1: State Business Report. Here's Bloomberg's head, Cory Quantas Airways has

492
00:27:54,640 --> 00:27:57,960
Speaker 1: revived a plan to start direg flights connecting Australia's East

493
00:27:58,040 --> 00:28:01,040
Speaker 1: coast with New York and London, as it finally has

494
00:28:01,160 --> 00:28:04,680
Speaker 1: ordered Airbus jets for the ultra long services. The airline

495
00:28:04,720 --> 00:28:08,159
Speaker 1: says it'll buy twelve A three fifty one thousands they

496
00:28:08,200 --> 00:28:10,800
Speaker 1: can fly downs Town from Australia to any city in

497
00:28:10,840 --> 00:28:13,920
Speaker 1: the world. Union workers at to Pratt and Whitney jet

498
00:28:14,000 --> 00:28:16,560
Speaker 1: engine plants in Connecticut have proved a new labor pack

499
00:28:16,680 --> 00:28:21,120
Speaker 1: for an important raytheon unit three year agreement, insurers continued

500
00:28:21,160 --> 00:28:25,879
Speaker 1: production at facilities manufacturing and supporting jet engines, Powering Locking,

501
00:28:26,000 --> 00:28:30,760
Speaker 1: Martin Boeing, and Airbus aircraft. Jersey City has been named

502
00:28:30,800 --> 00:28:33,840
Speaker 1: one of America's Next Great Food Cities by Food and

503
00:28:34,000 --> 00:28:38,240
Speaker 1: Wine magazine. The city's Indian and Asian eateries are highlighted

504
00:28:38,280 --> 00:28:41,400
Speaker 1: by the publication Your up to Date on Business. From

505
00:28:41,400 --> 00:28:45,000
Speaker 1: the Beltway to Baltimore. I'm d Corey Bloomberg ninety nine

506
00:28:45,080 --> 00:28:48,680
Speaker 1: one and one oh five point seven FM HD two. Okay,

507
00:28:48,920 --> 00:28:51,760
Speaker 1: thank you on Wall Street Bloomberg Radios on the air

508
00:28:51,800 --> 00:28:54,240
Speaker 1: from San Francisco to New York, London to Hong Kong.

509
00:28:54,440 --> 00:28:56,280
Speaker 1: Let's check in with our global news team for some

510
00:28:56,400 --> 00:28:58,680
Speaker 1: of the top stories heard on our three hundred affiliate

511
00:28:58,840 --> 00:29:04,160
Speaker 1: radio stations around the world. I'm Ginas Servetti in for

512
00:29:04,400 --> 00:29:07,400
Speaker 1: w c CEO in Minneapolis. I'm reporting that a proposed

513
00:29:07,440 --> 00:29:10,360
Speaker 1: class action against Google SA, the Fitbit maker, did not

514
00:29:10,480 --> 00:29:12,800
Speaker 1: go far enough and recalling a single model of the

515
00:29:12,880 --> 00:29:17,120
Speaker 1: device over burne risk. I'm Corney tanahoan Kopabian Omaha a

516
00:29:17,200 --> 00:29:21,480
Speaker 1: fertilizer crunches wrecking crops all around the globe. I'm Caroline Hetko.

517
00:29:21,560 --> 00:29:23,240
Speaker 1: We get a great decision from the r b A.

518
00:29:23,400 --> 00:29:26,120
Speaker 1: We look at the e USE discussions on further Russia

519
00:29:26,200 --> 00:29:30,920
Speaker 1: sanctions and energy restrictions, plus BP and BNP Parry about earnings.

520
00:29:31,240 --> 00:29:35,400
Speaker 1: My guests includes Skyler Montgomery, Coning of ts Lombard. I'm

521
00:29:35,440 --> 00:29:38,760
Speaker 1: at Corey on w w J in Detroit. I'm reporting

522
00:29:38,840 --> 00:29:42,440
Speaker 1: the United States needs to grow a domestic battery business

523
00:29:42,520 --> 00:29:45,520
Speaker 1: to meet the demands of electric vehicle. And those are

524
00:29:45,600 --> 00:29:48,320
Speaker 1: some of the stories our twenty seven hundred Bloomberg journalists

525
00:29:48,320 --> 00:29:50,400
Speaker 1: and analysts you're working on this morning around the world.

526
00:29:50,680 --> 00:29:53,320
Speaker 1: It's five thirty nine on Wall Street. The following is

527
00:29:53,360 --> 00:29:57,360
Speaker 1: an editorial from Bloomberg Opinion. The US Centers for Disease

528
00:29:57,440 --> 00:29:59,960
Speaker 1: Control and Prevention has long been known as the world

529
00:30:00,120 --> 00:30:03,640
Speaker 1: top public health agency, but throughout the pandemic, the CDC

530
00:30:03,960 --> 00:30:07,520
Speaker 1: has stumbled repeatedly. To be sure, some of the agency's

531
00:30:07,560 --> 00:30:10,680
Speaker 1: troubles have stemmed from political interference as well as the

532
00:30:10,760 --> 00:30:14,200
Speaker 1: inherent challenges of dealing with a new virus, but the

533
00:30:14,320 --> 00:30:18,680
Speaker 1: CDC also made needless errors, such as distributing faulty COVID

534
00:30:18,760 --> 00:30:21,560
Speaker 1: tests in the early days of the outbreak. To prevent

535
00:30:21,720 --> 00:30:24,360
Speaker 1: such mistakes in the future, a thorough a review of

536
00:30:24,480 --> 00:30:28,640
Speaker 1: laboratory operations and improvements to data collection and reporting are needed.

537
00:30:29,080 --> 00:30:32,840
Speaker 1: Although the CDC lacks the regulatory powers that its counterparts

538
00:30:32,880 --> 00:30:35,680
Speaker 1: in other countries have, it can still provide crucial data

539
00:30:35,920 --> 00:30:40,560
Speaker 1: expertise and advice to health officials and the public alike. First, though,

540
00:30:40,800 --> 00:30:43,320
Speaker 1: it needs to rebuild the trust that it had long

541
00:30:43,440 --> 00:30:46,800
Speaker 1: taken for granted. This editorial was written by the Bloomberg

542
00:30:46,840 --> 00:30:50,520
Speaker 1: Opinion Editorial Board. I'm David Shipley. For more Bloomberg opinion,

543
00:30:50,560 --> 00:30:53,800
Speaker 1: please go to Bloomberg dot com, slash Opinion or Opango

544
00:30:54,200 --> 00:30:58,000
Speaker 1: on the Bloomberg terminal. This has been Bloomberg Opinion. Listen

545
00:30:58,080 --> 00:31:01,040
Speaker 1: for Bloomberg opinion editorials every week day. At this time,

546
00:31:01,160 --> 00:31:04,080
Speaker 1: terminal customers can read more at O, P I, n GO,

547
00:31:04,880 --> 00:31:08,080
Speaker 1: SMP futures up twenty one point, staff futures up eighty

548
00:31:08,120 --> 00:31:11,560
Speaker 1: one NASTACK futures up seventy four points. The ten year

549
00:31:11,640 --> 00:31:15,160
Speaker 1: treasury is down one thirty second, the yield two point

550
00:31:15,320 --> 00:31:23,400
Speaker 1: nine three percent. You're listening to Bloomberg Daybreak Bloomberg eleven

551
00:31:23,440 --> 00:31:25,240
Speaker 1: three oh weather cloudy with a high in the upper

552
00:31:25,320 --> 00:31:29,120
Speaker 1: fifties today, mid sixties tomorrow under clouds, showers in the

553
00:31:29,160 --> 00:31:31,920
Speaker 1: high year sixty on Wednesday right now cloudy in fifty

554
00:31:32,000 --> 00:31:39,160
Speaker 1: three degrees in Central Park Markets. Headlines and breaking news

555
00:31:39,320 --> 00:31:41,880
Speaker 1: twenty four hours a day at Bloomberg dot Com, the

556
00:31:41,960 --> 00:31:45,480
Speaker 1: Bloomberg Business Atland at Bloomberg Quick Tape. This is a

557
00:31:45,520 --> 00:31:54,880
Speaker 1: Bloomberg Business flash and I'm Karen Moscow. US stock Index

558
00:31:54,960 --> 00:31:58,400
Speaker 1: Future is rebounding from Friday's bruising sell off, which was

559
00:31:58,440 --> 00:32:01,320
Speaker 1: Wall Street's worst day and almost two years outside of

560
00:32:01,360 --> 00:32:04,400
Speaker 1: the U S stocks are declining. Is disappointing economic data

561
00:32:04,480 --> 00:32:07,440
Speaker 1: from China and the prospect of sanctions on Russian oil

562
00:32:07,520 --> 00:32:10,240
Speaker 1: weighs heavily on risk appetite, but checked the markets every

563
00:32:10,280 --> 00:32:12,920
Speaker 1: fifteen minutes throughout the trading day on Bloomberg s and

564
00:32:12,960 --> 00:32:15,280
Speaker 1: P futures up seventeen points and down features up a

565
00:32:15,360 --> 00:32:18,240
Speaker 1: hundred fifty three Nasdack Future is up sixty two the

566
00:32:18,320 --> 00:32:21,000
Speaker 1: decks in Germany's down nine tenths of a percent. Ten

567
00:32:21,080 --> 00:32:23,600
Speaker 1: year treasury down one thirty second yeal two point nine

568
00:32:23,680 --> 00:32:25,800
Speaker 1: three percent. They yield on the two year two point

569
00:32:25,880 --> 00:32:29,080
Speaker 1: seven two percent. NIMEX Screwed oil is down three point

570
00:32:29,160 --> 00:32:31,200
Speaker 1: one percent on three dollars twenty six cents at a

571
00:32:31,280 --> 00:32:34,200
Speaker 1: hundred one dollars forty three cents of barrel. Comics goal

572
00:32:34,240 --> 00:32:36,480
Speaker 1: down one point seven percent or thirty two dollars at

573
00:32:36,520 --> 00:32:39,760
Speaker 1: eighteen seventy nine eighty announced the euro one point oh

574
00:32:39,840 --> 00:32:42,120
Speaker 1: five to two against the dollar, British bound one point

575
00:32:42,200 --> 00:32:44,680
Speaker 1: to five six six, The yen is at one twenty

576
00:32:44,760 --> 00:32:49,200
Speaker 1: nine point nine one, and bitcoin this morning is at

577
00:32:49,480 --> 00:32:52,200
Speaker 1: thirty eight thousand, eight hundred forty dollars. That's up one

578
00:32:52,240 --> 00:32:55,160
Speaker 1: and a third percent as of Bloomberg Business Flash. Now

579
00:32:55,200 --> 00:32:57,520
Speaker 1: here's Michael Barr with more on what's going on around

580
00:32:57,520 --> 00:33:00,320
Speaker 1: the world. Uncle Karen, thank you very much, and you Krane.

581
00:33:00,360 --> 00:33:03,920
Speaker 1: The United Nations and Red Cross were able to successfully

582
00:33:04,000 --> 00:33:08,160
Speaker 1: evacuate about a hundred civilians from a besieged steel plant

583
00:33:08,200 --> 00:33:13,840
Speaker 1: in Maruple. However, many more remained there alongside Ukrainian fighters. Meanwhile,

584
00:33:13,920 --> 00:33:17,120
Speaker 1: how Speaker Nancy Pelosi and other lawmakers are continuing their

585
00:33:17,200 --> 00:33:21,960
Speaker 1: overseas trip after meeting with Ukrainian President Zelinski and Kiev. Yesterday,

586
00:33:22,360 --> 00:33:25,760
Speaker 1: Pelosi and other U S lawmakers met with Polish President

587
00:33:25,920 --> 00:33:30,120
Speaker 1: Dutah among other Polish officials in Warsaw Today. In the

588
00:33:30,360 --> 00:33:33,840
Speaker 1: NBA Playoffs, the Celtics lost to the Bucks nine in

589
00:33:33,880 --> 00:33:36,480
Speaker 1: the opening game of their series. The Warriors beat the

590
00:33:36,480 --> 00:33:40,400
Speaker 1: Grizzlies one, seventeen one sixteen in their Game one. In baseball,

591
00:33:40,480 --> 00:33:43,160
Speaker 1: the Yankees and Mets one. The Orioles beat the Red

592
00:33:43,240 --> 00:33:46,640
Speaker 1: Sox nine five. The Nationals beat the Giants eleven five.

593
00:33:46,760 --> 00:33:49,920
Speaker 1: The A's lost. Global news twenty four hours a day

594
00:33:50,080 --> 00:33:53,440
Speaker 1: on air and on Bloomberg Quicktake, powered by more than

595
00:33:53,560 --> 00:33:56,240
Speaker 1: twenty seven hundred journalists and analysts more than a hundred

596
00:33:56,240 --> 00:33:59,960
Speaker 1: twenty countries. Him Michael Barr, and this is Bloomberg, Nathan, Michael,

597
00:34:00,120 --> 00:34:03,000
Speaker 1: thank you. It is on Wall Street Live from the

598
00:34:03,040 --> 00:34:07,320
Speaker 1: Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and this

599
00:34:07,720 --> 00:34:10,480
Speaker 1: is the week when the FED is expected to kick

600
00:34:10,520 --> 00:34:13,120
Speaker 1: off an aggressive hiking cycle to get a handle on

601
00:34:13,680 --> 00:34:17,360
Speaker 1: forty year inflation. For more, we're joined by Matthew Lozzette,

602
00:34:17,480 --> 00:34:21,120
Speaker 1: chief US economist at Deutsche Bank Securities. Matt, it's good

603
00:34:21,160 --> 00:34:24,000
Speaker 1: to speak with you this morning. Does the FED deliver

604
00:34:24,239 --> 00:34:27,600
Speaker 1: what the market is expecting in front load multiple fifty

605
00:34:27,600 --> 00:34:31,120
Speaker 1: basis point modes? Sure, Thanks so much for having me.

606
00:34:31,320 --> 00:34:33,400
Speaker 1: I think no doubt, for the SET has been sending

607
00:34:33,440 --> 00:34:35,839
Speaker 1: pretty strong signals this week that they will kick off

608
00:34:36,520 --> 00:34:39,680
Speaker 1: with a fifty basis point rate hike move in addition

609
00:34:39,719 --> 00:34:42,080
Speaker 1: to that that they will announce QT the draw down

610
00:34:42,160 --> 00:34:44,320
Speaker 1: of their balance sheet. We think most likely that that

611
00:34:44,480 --> 00:34:48,000
Speaker 1: begins in June. But I think the most more uncertainty

612
00:34:48,080 --> 00:34:50,080
Speaker 1: is around what signals do we get from chair Pal

613
00:34:50,160 --> 00:34:53,120
Speaker 1: about the path from here. I think that they won't

614
00:34:53,160 --> 00:34:55,600
Speaker 1: tell you about any specific sequence, but that he will

615
00:34:55,640 --> 00:34:59,719
Speaker 1: affirm further fifty basis point moves at least one UH,

616
00:35:00,040 --> 00:35:02,479
Speaker 1: and that he will continue to talk about expeditiously quote

617
00:35:02,560 --> 00:35:04,960
Speaker 1: unquote getting back to a neutral policy setting by the

618
00:35:05,040 --> 00:35:07,399
Speaker 1: end of this year. Ultimately, we think that will high

619
00:35:07,400 --> 00:35:10,319
Speaker 1: grates again by fifty basis points in June and July

620
00:35:11,200 --> 00:35:13,680
Speaker 1: UH and that the that at that funds rate will

621
00:35:13,680 --> 00:35:15,759
Speaker 1: peak eventually around three and a half percent next year.

622
00:35:16,480 --> 00:35:19,479
Speaker 1: Do the signs of contraction that we got last week

623
00:35:19,719 --> 00:35:23,840
Speaker 1: the one point four percent negative move in GDP have

624
00:35:23,960 --> 00:35:27,440
Speaker 1: any impact on the on the FEDS path going forward,

625
00:35:28,760 --> 00:35:31,960
Speaker 1: not yet. The composition of that was one that the

626
00:35:32,200 --> 00:35:34,919
Speaker 1: underlying economy still has pretty good momentum. We had strong

627
00:35:35,000 --> 00:35:39,240
Speaker 1: consumer spending growth, strong capex growth, residential investment actually added,

628
00:35:39,880 --> 00:35:42,440
Speaker 1: and what was actually a driver of the court of

629
00:35:42,560 --> 00:35:46,600
Speaker 1: the downturn was some courts in the trade data, inventories,

630
00:35:46,640 --> 00:35:49,680
Speaker 1: and government spending. So I think the SET is looking

631
00:35:49,680 --> 00:35:52,400
Speaker 1: at the economy that's still has very meaningful momentum in

632
00:35:52,440 --> 00:35:54,359
Speaker 1: the labor market. I think we'll see that this week,

633
00:35:54,719 --> 00:35:57,680
Speaker 1: probably with the job openings data and jolts tomorrow, and

634
00:35:57,760 --> 00:36:00,840
Speaker 1: then this Friday with the labor report, and that that

635
00:36:01,000 --> 00:36:04,279
Speaker 1: labor market momentum is feeding an inflationary economy, both from

636
00:36:04,320 --> 00:36:07,480
Speaker 1: price inflation and wage inflation. Certainly as we saw with

637
00:36:07,560 --> 00:36:10,320
Speaker 1: the e c I data on Friday. One that is,

638
00:36:10,880 --> 00:36:13,719
Speaker 1: Chapel called it tight to an unhealthy level and one

639
00:36:13,800 --> 00:36:16,520
Speaker 1: that requires the Fed to hike aggressively in the near

640
00:36:16,600 --> 00:36:18,839
Speaker 1: term and likely to get to a restrictive stance next year.

641
00:36:19,719 --> 00:36:22,040
Speaker 1: What would it take, Matt for the Fed to consider

642
00:36:22,120 --> 00:36:25,400
Speaker 1: a seventy five basis point move. We've got fifty fifty

643
00:36:25,440 --> 00:36:27,359
Speaker 1: odds in the market that that's going to happen at

644
00:36:27,400 --> 00:36:30,560
Speaker 1: some point. Yeah. We we saw Jim Buller, the St.

645
00:36:30,640 --> 00:36:32,759
Speaker 1: Louis FED President, a few weeks ago, begin to at

646
00:36:32,800 --> 00:36:36,279
Speaker 1: least float the notion of of considering it, although some

647
00:36:36,400 --> 00:36:39,239
Speaker 1: of his colleagues then you rather quickly suggested that it

648
00:36:39,280 --> 00:36:42,000
Speaker 1: wasn't a desirable outcome. I think the way that we're

649
00:36:42,040 --> 00:36:45,800
Speaker 1: seeing the FEDS response now is is upfront a sequence

650
00:36:45,800 --> 00:36:49,040
Speaker 1: of fifty basis point moves, and as long as inflation

651
00:36:49,160 --> 00:36:53,239
Speaker 1: begins to show or continues to show some evidence of dissipation,

652
00:36:53,320 --> 00:36:55,520
Speaker 1: as long as you see the labor market begin to

653
00:36:55,600 --> 00:36:58,640
Speaker 1: cool in some ways with labor demand come down, that

654
00:36:58,800 --> 00:37:00,480
Speaker 1: that will be the sequence that they take and then

655
00:37:00,560 --> 00:37:03,000
Speaker 1: can ease into a five basis point wage high cycle

656
00:37:03,080 --> 00:37:05,719
Speaker 1: from there. I think the risk scenario is one in

657
00:37:05,760 --> 00:37:10,239
Speaker 1: which inflation re accelerate and perhaps inflation expectations begin to

658
00:37:10,280 --> 00:37:13,279
Speaker 1: show some updrift and moving higher. That would be one

659
00:37:13,320 --> 00:37:16,560
Speaker 1: that the febry becomes very worried about. Um the inflation

660
00:37:16,640 --> 00:37:19,880
Speaker 1: expectations have been the one remaining elements of the inflation

661
00:37:19,960 --> 00:37:22,400
Speaker 1: picture that has looked positive, So if those were to

662
00:37:22,520 --> 00:37:24,560
Speaker 1: turn did be more worried, And that's where I think

663
00:37:24,719 --> 00:37:26,880
Speaker 1: the seventy five basiness point moves could come into the picture.

664
00:37:27,239 --> 00:37:29,520
Speaker 1: Are you expecting that we're going to see any signs

665
00:37:29,560 --> 00:37:33,239
Speaker 1: of cooling to labor market demand when we get the

666
00:37:33,520 --> 00:37:36,920
Speaker 1: jobs report on Friday, so I think you could see

667
00:37:37,000 --> 00:37:39,239
Speaker 1: some evidence tomorrow and the JOLTS, and I think the

668
00:37:39,320 --> 00:37:41,839
Speaker 1: JOLTS is just taking on a lot more importance these

669
00:37:41,920 --> 00:37:44,200
Speaker 1: days because Chairpal has talked about the fact that labor

670
00:37:44,280 --> 00:37:47,960
Speaker 1: demand has to come down. We've seen evidence from the NFIB,

671
00:37:48,120 --> 00:37:51,280
Speaker 1: the Small Business survey of job openings coming off. Also

672
00:37:51,360 --> 00:37:54,359
Speaker 1: the indeed private market data has rolled over a little bit,

673
00:37:54,440 --> 00:37:57,120
Speaker 1: so we could see some evidence there on Friday. Though,

674
00:37:57,160 --> 00:37:59,479
Speaker 1: we continue to expect to see a strong labor market

675
00:37:59,560 --> 00:38:02,320
Speaker 1: works by seeing four sixty five thousand jobs to be added,

676
00:38:02,760 --> 00:38:04,759
Speaker 1: the unemployment rate to take down further to three and

677
00:38:04,800 --> 00:38:07,279
Speaker 1: a half percent. We'll have to see what happens with

678
00:38:07,320 --> 00:38:10,120
Speaker 1: wage growth. We're expecting some moderation in the year of

679
00:38:10,160 --> 00:38:12,719
Speaker 1: the year terms. That would be an important data point

680
00:38:12,760 --> 00:38:15,640
Speaker 1: to watch, But for the time being, all the data

681
00:38:15,680 --> 00:38:20,120
Speaker 1: we see jobless claims remaining near decade the levels what

682
00:38:20,200 --> 00:38:22,160
Speaker 1: we're seeing in the labor market also, just at least

683
00:38:22,200 --> 00:38:24,360
Speaker 1: in the near term, the labor market has a lot

684
00:38:24,400 --> 00:38:27,080
Speaker 1: of momentum. Thanks for this, Matt, great having you on

685
00:38:27,160 --> 00:38:29,880
Speaker 1: with us. Matthew Lozzettie chief you as economist at Deutsche

686
00:38:29,920 --> 00:38:33,240
Speaker 1: Bank Securities. Karen Verry Nathan. Thank you at five fifty

687
00:38:33,320 --> 00:38:35,720
Speaker 1: three on Wall Street. Time for the Bloomberg The Law Report.

688
00:38:35,840 --> 00:38:38,160
Speaker 1: Let's get to the legal stories we're watching this morning.

689
00:38:38,239 --> 00:38:45,120
Speaker 1: From Bloomberg's Jeff Bellinger, people who qualify for both Medicare

690
00:38:45,239 --> 00:38:49,279
Speaker 1: and Medicaid can expect more transparency and lower out of

691
00:38:49,360 --> 00:38:52,320
Speaker 1: pocket costs for medications under a final rule by the

692
00:38:52,400 --> 00:38:56,239
Speaker 1: Biden administration. A lawsuit against Walmart was filed in a

693
00:38:56,320 --> 00:38:59,920
Speaker 1: Michigan federal court. The giant retailer is accused of improv

694
00:39:00,040 --> 00:39:02,680
Speaker 1: early firing more than one hundred em boys who were

695
00:39:02,760 --> 00:39:06,279
Speaker 1: out on medical leave. Google signed a seven million dollar

696
00:39:06,320 --> 00:39:10,400
Speaker 1: settlement with advertisers in a California federal court. The plaintiffs

697
00:39:10,480 --> 00:39:13,840
Speaker 1: had claimed they did not get full refunds for invalid

698
00:39:13,960 --> 00:39:18,520
Speaker 1: head traffic. Bloomberg Law everything you need, all on one

699
00:39:18,640 --> 00:39:23,799
Speaker 1: legal research platform, including guidance analysis and Bloomberg Market Intelligence.

700
00:39:24,040 --> 00:39:27,520
Speaker 1: Find out more at Bloomberg Law dot com. All right, Jeff,

701
00:39:27,560 --> 00:39:30,200
Speaker 1: thank you. Now another legal story we're watching. What will

702
00:39:30,400 --> 00:39:34,520
Speaker 1: happen when free speech absolutist elon must takes control of Twitter,

703
00:39:34,680 --> 00:39:38,480
Speaker 1: one of the most influential social media platforms. Must idealized

704
00:39:38,520 --> 00:39:41,439
Speaker 1: view of Twitter as a haven for unfederate speech will

705
00:39:41,760 --> 00:39:44,640
Speaker 1: face trade offs and inevitably have to be made for

706
00:39:44,719 --> 00:39:47,160
Speaker 1: more a bloomberg s June Grosso speaks to First Amendment

707
00:39:47,280 --> 00:39:50,200
Speaker 1: law expert Eugene Veloka, professor at u c l A

708
00:39:50,280 --> 00:39:54,080
Speaker 1: Law School, in trying to explain his position on freedom

709
00:39:54,120 --> 00:39:57,120
Speaker 1: of speech, he tweeted, quote, I simply mean that which

710
00:39:57,239 --> 00:40:02,319
Speaker 1: matches the law? Is he showing in thinking that it's

711
00:40:02,480 --> 00:40:05,799
Speaker 1: a simple concept like that? Well, I think you said,

712
00:40:05,840 --> 00:40:09,920
Speaker 1: He tweeted that, Well, you can't capture even First Amendment

713
00:40:10,040 --> 00:40:13,360
Speaker 1: rules in two eight characters or less, and you certainly

714
00:40:13,440 --> 00:40:17,960
Speaker 1: can't capture the possible differences between free speech and First

715
00:40:18,000 --> 00:40:20,880
Speaker 1: Amendment rules in Twitter naty characters or less. You know,

716
00:40:21,000 --> 00:40:23,839
Speaker 1: if you want to kind of take a first cut,

717
00:40:24,200 --> 00:40:28,600
Speaker 1: admittedly oversimplified view, you might say, yes, our view should

718
00:40:28,600 --> 00:40:32,120
Speaker 1: be the Twitter should generally speaking, protect free speech at

719
00:40:32,200 --> 00:40:34,600
Speaker 1: least so long as it's not illegal speech. So, no,

720
00:40:34,840 --> 00:40:38,640
Speaker 1: we won't host child pornography. No, we won't host things

721
00:40:38,719 --> 00:40:42,160
Speaker 1: that are clearly conspiracy to commit crimes or kind of

722
00:40:42,320 --> 00:40:45,640
Speaker 1: accounts that are being used for criminal conspiracy. Let's say

723
00:40:45,880 --> 00:40:49,600
Speaker 1: we won't host copyright infringement because that's illegal. But pretty

724
00:40:49,680 --> 00:40:53,000
Speaker 1: much all other things. Generally speaking, we're going to host

725
00:40:53,080 --> 00:40:55,319
Speaker 1: maybe there'll be a few exceptions, but they really should

726
00:40:55,360 --> 00:40:58,160
Speaker 1: be very narrow exceptions. It's a plausible way of thinking

727
00:40:58,200 --> 00:41:02,279
Speaker 1: about these. Some civil rights advocates have said that minimizing

728
00:41:02,480 --> 00:41:07,680
Speaker 1: content moderation would disproportionately harm women and minorities. Does a

729
00:41:07,800 --> 00:41:12,799
Speaker 1: kind of minimally moderated Twitter posed dangers well, of course,

730
00:41:12,920 --> 00:41:16,120
Speaker 1: free speech poses dangerous. Free speech is always posed dangerous.

731
00:41:16,239 --> 00:41:19,440
Speaker 1: That's one reason why governments do, indeed try to restrict

732
00:41:19,719 --> 00:41:22,520
Speaker 1: and there's nothing special about those dangers for the women,

733
00:41:22,719 --> 00:41:24,800
Speaker 1: or as the minorities, or as to others. Just to

734
00:41:24,840 --> 00:41:27,239
Speaker 1: give an example, there's been a lot of attacks on

735
00:41:27,400 --> 00:41:30,400
Speaker 1: police officers recently, and some of them seem to be

736
00:41:30,840 --> 00:41:34,000
Speaker 1: prompted by kind of very harsh criticism and kind of

737
00:41:34,040 --> 00:41:38,440
Speaker 1: dehumanizing criticisms of police officers, and that's something that is

738
00:41:38,520 --> 00:41:42,000
Speaker 1: a downside of speech. Of course, speech is potentially harmful,

739
00:41:42,120 --> 00:41:45,480
Speaker 1: but generally speaking, when it comes to the First Amendment,

740
00:41:45,920 --> 00:41:49,680
Speaker 1: we take the view that on balance, it's better for everyone.

741
00:41:49,800 --> 00:41:53,640
Speaker 1: And historically this has been especially important for various out

742
00:41:53,680 --> 00:41:57,719
Speaker 1: of favor minority groups that speech be protected, because when

743
00:41:57,760 --> 00:42:00,920
Speaker 1: speech is restricted that keeps be book from being able

744
00:42:01,000 --> 00:42:04,160
Speaker 1: to argue about what they think are genuine wrongs and

745
00:42:04,280 --> 00:42:08,320
Speaker 1: to advocate for for change and as Eugene Vallaka, professor

746
00:42:08,360 --> 00:42:10,040
Speaker 1: at u c l A Law School, speaking with the

747
00:42:10,080 --> 00:42:13,200
Speaker 1: Bloomberg jere In Grasso, catch more of that interview plus

748
00:42:13,200 --> 00:42:16,360
Speaker 1: analysis of the latest legal news by subscribing to the

749
00:42:16,360 --> 00:42:19,719
Speaker 1: Bloomberg Law Podcast or downloading this show at Bloomberg dot

750
00:42:19,800 --> 00:42:23,520
Speaker 1: com slash podcast. Attorneys can find exceptional legal research and

751
00:42:23,560 --> 00:42:26,200
Speaker 1: business development tools at Bloomberg Law dot com and on

752
00:42:26,239 --> 00:42:29,880
Speaker 1: the Bloomberg terminal at b Longo, S ANDP. Future is

753
00:42:29,960 --> 00:42:32,320
Speaker 1: up about eighteen points this morning, down futures up a

754
00:42:32,400 --> 00:42:35,600
Speaker 1: hundred fifty three NAS day futures of sixty one. The

755
00:42:35,680 --> 00:42:38,480
Speaker 1: tenure Treasury down one thirties second yeal two point nine

756
00:42:38,560 --> 00:42:41,200
Speaker 1: three percent, and they yield on a two year at

757
00:42:41,280 --> 00:42:44,840
Speaker 1: two point seven two percent. And our top story is

758
00:42:44,920 --> 00:42:46,840
Speaker 1: straight ahead. This is Bloomberg