1 00:00:00,960 --> 00:00:04,439 Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg 2 00:00:04,519 --> 00:00:08,440 Speaker 1: Daybreak for Thursday, June sixteenth, two. Coming up this hour, 3 00:00:08,600 --> 00:00:12,360 Speaker 1: the post fed rally fades as US future slump recession 4 00:00:12,400 --> 00:00:15,360 Speaker 1: fears return following the biggest interest rate increase since n 5 00:00:16,640 --> 00:00:19,599 Speaker 1: It's the Bank of England's turn to increase the indust 6 00:00:19,680 --> 00:00:22,919 Speaker 1: race and Elon Musk is set to address Twitter employees 7 00:00:23,000 --> 00:00:25,520 Speaker 1: for the first time. The gunman who killed black people 8 00:00:25,520 --> 00:00:29,120 Speaker 1: in a racist attack the Buffalo faces federal hate crimes charges, 9 00:00:29,320 --> 00:00:32,560 Speaker 1: plus hearings resumed today on the January sixth Capitol Riot. 10 00:00:32,640 --> 00:00:35,760 Speaker 1: I'm Michael Blar More ahead, I'm John Stash Howard sports 11 00:00:35,760 --> 00:00:37,680 Speaker 1: another win for the Yankees, a loss for the Mets, 12 00:00:37,720 --> 00:00:40,440 Speaker 1: Colorado on the Stanley Cup bottle Opener, and the US 13 00:00:40,520 --> 00:00:46,480 Speaker 1: Open golf agains today. That's all strained ahead on Bloomberg 14 00:00:46,520 --> 00:00:50,319 Speaker 1: Daybreak on Bloomberg Eliving Free on New York Bloomberg nine 15 00:00:50,560 --> 00:00:54,200 Speaker 1: nine one, Washington d C, Bloomberg one O six one, Boston, 16 00:00:54,480 --> 00:00:59,200 Speaker 1: Bloomberg nine sixties and Francisco Syrius XM one nineteen and 17 00:00:59,280 --> 00:01:02,080 Speaker 1: around the world. Old on Bloomberg Radio dot Com and 18 00:01:02,120 --> 00:01:08,679 Speaker 1: by the Bloomberg Business app. Good morning. I'm Nathan Hagar 19 00:01:08,800 --> 00:01:11,040 Speaker 1: and I'm John Tucker. Bloomberg day Break being brought to 20 00:01:11,080 --> 00:01:13,679 Speaker 1: you by Informatica. In the Cloud, your data has the 21 00:01:13,680 --> 00:01:17,320 Speaker 1: power to be extraordinary. Managed data across any location of 22 00:01:17,400 --> 00:01:21,560 Speaker 1: the clouds were accurate and actionable insights more at Informatica 23 00:01:21,760 --> 00:01:25,760 Speaker 1: dot Com. Futures are slumping this morning. We're coming up 24 00:01:25,800 --> 00:01:27,440 Speaker 1: to six o one on Wall Street, and we check 25 00:01:27,480 --> 00:01:29,680 Speaker 1: the markets every fifteen minutes during the trading day. On 26 00:01:29,760 --> 00:01:33,080 Speaker 1: Bloomberg SMP futures are down eighty four point, Staff futures 27 00:01:33,080 --> 00:01:36,080 Speaker 1: down five dred forty six. Nasdaq futures are lower by 28 00:01:36,080 --> 00:01:39,800 Speaker 1: three hundred twelve points. The tenure Treasury is onto decline 29 00:01:39,840 --> 00:01:42,640 Speaker 1: down one in eight thirty seconds. The yield three point 30 00:01:42,640 --> 00:01:45,160 Speaker 1: for three percent yield on the two year three point 31 00:01:45,160 --> 00:01:48,560 Speaker 1: three seven percent John Well, Nathan. The reversal in futures 32 00:01:48,640 --> 00:01:52,040 Speaker 1: comes after a rally yesterday following their latest decision for 33 00:01:52,080 --> 00:01:55,880 Speaker 1: the Fed J. Powell engineering the biggest US interest rate 34 00:01:55,960 --> 00:01:59,840 Speaker 1: increase in twenty eight years to fight inflation. Markets responded 35 00:02:00,080 --> 00:02:03,120 Speaker 1: the rally that halted a five day ten percent rollity 36 00:02:03,160 --> 00:02:06,960 Speaker 1: in the sp We at the FED understand the hardship 37 00:02:07,040 --> 00:02:10,280 Speaker 1: that high inflation is causing. We're strongly committed to bringing 38 00:02:10,320 --> 00:02:13,960 Speaker 1: inflation back down, and we're moving expeditiously to do so. 39 00:02:14,320 --> 00:02:16,160 Speaker 1: We have both the tools we need and the resolve 40 00:02:16,200 --> 00:02:18,800 Speaker 1: that it will take to restore price stability on behalf 41 00:02:18,840 --> 00:02:22,160 Speaker 1: of American families and businesses. J Pal and Company raised 42 00:02:22,240 --> 00:02:25,160 Speaker 1: rates by seventy basis points and lived with the target 43 00:02:25,240 --> 00:02:27,160 Speaker 1: range for the federal funds rate to one and a 44 00:02:27,240 --> 00:02:30,480 Speaker 1: half to one and three quarters percent. Former Richmond Fed 45 00:02:30,520 --> 00:02:34,320 Speaker 1: president Jeffrey Lacker says more is needed. I think it's 46 00:02:34,360 --> 00:02:36,440 Speaker 1: gonna have to go to about five and a half 47 00:02:36,560 --> 00:02:40,799 Speaker 1: or six percent. That's my own sense, and that's based 48 00:02:40,840 --> 00:02:45,680 Speaker 1: on just the historical record. Uh that indicates that real 49 00:02:45,760 --> 00:02:49,600 Speaker 1: interest rates, inflation adjusted short term policy rates have to 50 00:02:49,680 --> 00:02:53,120 Speaker 1: get above zero in order to have any chance of 51 00:02:53,240 --> 00:02:57,360 Speaker 1: frustraining inflation. Former Fed Bank of Richmond president Jeffrey Lacker, 52 00:02:57,360 --> 00:03:00,600 Speaker 1: who says the Fed should have raised rates last year. Well, 53 00:03:00,600 --> 00:03:02,720 Speaker 1: this rate high John now has many on Wall Street 54 00:03:02,720 --> 00:03:05,880 Speaker 1: forecasting a recession for the US economy. We caught up 55 00:03:05,880 --> 00:03:09,960 Speaker 1: with Guggenheim Chief investment officers Scott minored, there's a chance 56 00:03:10,400 --> 00:03:14,560 Speaker 1: that we are already in a recession. And so if 57 00:03:14,600 --> 00:03:16,880 Speaker 1: if we are in a recession or we're close to 58 00:03:16,919 --> 00:03:20,320 Speaker 1: a recession, and the FED pushes on this more and 59 00:03:20,320 --> 00:03:22,360 Speaker 1: then we find that that all of a sudden we 60 00:03:22,400 --> 00:03:25,239 Speaker 1: have a decline in asset prices like stocks did in 61 00:03:25,360 --> 00:03:29,320 Speaker 1: eight seven, then uh, if the Fed reversus course, they're 62 00:03:29,320 --> 00:03:32,880 Speaker 1: gonna look like they're week on inflation. So this this 63 00:03:32,960 --> 00:03:37,120 Speaker 1: is a very very tough situation that we're maneuvering. Googgenheim 64 00:03:37,200 --> 00:03:40,080 Speaker 1: Chief investment Officers Scott Miner says cracks are forming in 65 00:03:40,080 --> 00:03:42,440 Speaker 1: the credit world. He says the worst is probably not 66 00:03:42,600 --> 00:03:45,480 Speaker 1: over and after the Fed, now it's the Bank of 67 00:03:45,640 --> 00:03:49,000 Speaker 1: England's decision. Investors in economists are betting the UK Central 68 00:03:49,000 --> 00:03:52,560 Speaker 1: Bank would deliver a fifth straight hike later this morning, 69 00:03:52,880 --> 00:03:55,800 Speaker 1: raising the base rate by twenty five basis points to 70 00:03:55,920 --> 00:03:58,960 Speaker 1: a thirteen year high of one point to five percent, 71 00:03:59,440 --> 00:04:01,960 Speaker 1: But former Bank of Angland viavnor Mark Garney says that 72 00:04:02,040 --> 00:04:06,680 Speaker 1: he thinks policymakers are folding behind real world events. I 73 00:04:06,680 --> 00:04:08,960 Speaker 1: think what's clear as central bankers need to catch up 74 00:04:09,000 --> 00:04:12,360 Speaker 1: to their economies. They've you know, they've been behind the curves. 75 00:04:12,360 --> 00:04:15,360 Speaker 1: They've acknowledged this um and they need to start to 76 00:04:15,440 --> 00:04:21,280 Speaker 1: get interest rates uh above inflation effectively, or at least 77 00:04:21,520 --> 00:04:25,640 Speaker 1: perspective inflation inflation expectation. Mark Arney stepped down from the 78 00:04:25,760 --> 00:04:28,040 Speaker 1: Central Bank of twenty He is now a vice chair 79 00:04:28,040 --> 00:04:31,120 Speaker 1: at Brookfield Asset Management. We have another interest rate decision 80 00:04:31,120 --> 00:04:33,240 Speaker 1: in Europe to tell you about, John. The Swiss National 81 00:04:33,279 --> 00:04:36,080 Speaker 1: Bank unexpectedly raised its interest rates for the first time 82 00:04:36,120 --> 00:04:39,400 Speaker 1: since two thousand seven. Policymakers ompted to join the global 83 00:04:39,440 --> 00:04:42,560 Speaker 1: bandwagon of monetary tightening, lifting the policy rate by fifty 84 00:04:42,600 --> 00:04:46,320 Speaker 1: basis points to negative zero point to and staying in Europe. 85 00:04:46,400 --> 00:04:49,359 Speaker 1: Natural gas prices jumping after Russia has stepped up a 86 00:04:49,480 --> 00:04:54,080 Speaker 1: new energy war, cutting supplies to Europe's top buyers. Let's 87 00:04:54,120 --> 00:04:57,919 Speaker 1: get more from Bloomberg Energy reporter Stephen Sovsnavsky. This is 88 00:04:57,920 --> 00:04:59,599 Speaker 1: a big deal, and this is like the worst case 89 00:04:59,600 --> 00:05:03,279 Speaker 1: scenario that that traders were expecting in Europe. Absolutely, it 90 00:05:03,440 --> 00:05:06,599 Speaker 1: is um you know, for for weeks, for months, you know, 91 00:05:06,600 --> 00:05:08,760 Speaker 1: when this war broke out, the fear was Russia was 92 00:05:08,800 --> 00:05:11,320 Speaker 1: going to curb supply to customers, and they curb to 93 00:05:11,400 --> 00:05:15,559 Speaker 1: some customers. They curb to Poland, to Bulgaria, they curbed 94 00:05:15,600 --> 00:05:19,040 Speaker 1: to these countries. But they're not major buyers. Germany is 95 00:05:19,080 --> 00:05:22,760 Speaker 1: a major buyer. And this pipeline they've the North Stream 96 00:05:22,760 --> 00:05:27,120 Speaker 1: one that cut supply my well, the European benchmark rose 97 00:05:27,200 --> 00:05:29,960 Speaker 1: as much as twelve percent a day after surging by 98 00:05:31,279 --> 00:05:34,039 Speaker 1: in the previous two sessions. Thank Here in the US, John, 99 00:05:34,080 --> 00:05:36,360 Speaker 1: the White House says President Biden is willing to use 100 00:05:36,400 --> 00:05:40,200 Speaker 1: emergency measures to ramp up gasoline output. Bloomberg said, Baxter 101 00:05:40,320 --> 00:05:42,920 Speaker 1: has the story. This is the same Cold War era 102 00:05:43,000 --> 00:05:45,839 Speaker 1: law he invoked to increase production of baby formula and 103 00:05:45,880 --> 00:05:50,159 Speaker 1: bolster solar manufacturing. Biden saying his administration is prepared to 104 00:05:50,279 --> 00:05:55,479 Speaker 1: use all reasonable government tools to increase refinery capacity. Meanwhile, 105 00:05:55,480 --> 00:05:58,440 Speaker 1: the White House spokesman Karen Jean Pierre says the oil 106 00:05:58,480 --> 00:06:01,480 Speaker 1: companies need to step up, calling on them to do 107 00:06:01,520 --> 00:06:04,360 Speaker 1: the right thing, to be patriots here uh and not 108 00:06:04,440 --> 00:06:08,320 Speaker 1: to use the war as an excuse for higher costs 109 00:06:08,400 --> 00:06:12,119 Speaker 1: leading to higher profits. In San Francisco, I'm at Baxter 110 00:06:12,240 --> 00:06:15,360 Speaker 1: Bloomberg day breaking Thanks that incorporated news, A big day 111 00:06:15,440 --> 00:06:18,440 Speaker 1: for Twitter and Elon Musk. Let's get the latest live 112 00:06:18,520 --> 00:06:23,159 Speaker 1: from Bloomberg's Rena Young Morning. John. Elon Musk is addressing 113 00:06:23,160 --> 00:06:26,279 Speaker 1: Twitter employees for the first time today since agreeing to 114 00:06:26,320 --> 00:06:29,479 Speaker 1: buy the company for forty four billion dollars. At the 115 00:06:29,560 --> 00:06:33,599 Speaker 1: virtual meeting, Musk will take questions directly from employees, many 116 00:06:33,720 --> 00:06:37,080 Speaker 1: of who have not been happy with him lately. Meantime, 117 00:06:37,120 --> 00:06:40,680 Speaker 1: Twitter CEO recently announced a series of cost cutting measures, 118 00:06:40,720 --> 00:06:43,960 Speaker 1: including canceling the company wide retreat that was scheduled to 119 00:06:44,000 --> 00:06:48,560 Speaker 1: happen in January twenty three and a hiring freeze. Live 120 00:06:48,600 --> 00:06:51,480 Speaker 1: in New York, I'm Rernita Young Bloomberg Day Break, Thanks Nita, 121 00:06:51,520 --> 00:06:53,920 Speaker 1: and a big name in the cosmetic style is filing 122 00:06:53,920 --> 00:06:57,960 Speaker 1: for bankruptcy. Revlon is applying for Chapter eleven protection. The company, 123 00:06:57,960 --> 00:07:00,320 Speaker 1: owned by billionaire Ron Perlman, has been unable to manage 124 00:07:00,360 --> 00:07:03,719 Speaker 1: it's heavy debtload. Revlin got its start selling nail Polishy 125 00:07:03,720 --> 00:07:06,200 Speaker 1: in the throes of the Great Depression. Promins Holding Company 126 00:07:06,240 --> 00:07:10,040 Speaker 1: took control in five after a bitter takeover funded with 127 00:07:10,160 --> 00:07:14,360 Speaker 1: junk debt raised by Michael Milken. Futures are falling this morning. 128 00:07:14,400 --> 00:07:16,760 Speaker 1: Straight ahead, we have your latest local headlines and a 129 00:07:16,840 --> 00:07:24,040 Speaker 1: check of sports. This is Bloomberg all right, Thanks Nathan 130 00:07:24,080 --> 00:07:26,080 Speaker 1: six Oh settled on Wall Street time to bring in 131 00:07:26,160 --> 00:07:28,360 Speaker 1: Michael Barr to find out what else is going on 132 00:07:28,440 --> 00:07:31,040 Speaker 1: in New York and around the world. John, thank you 133 00:07:31,120 --> 00:07:33,440 Speaker 1: very much, sir. The gunman who killed ten black people 134 00:07:33,520 --> 00:07:36,320 Speaker 1: in a racist attack at a Buffalo supermarket has been 135 00:07:36,400 --> 00:07:40,080 Speaker 1: charged with federal hate crimes that could potentially carry a 136 00:07:40,200 --> 00:07:43,440 Speaker 1: death penalty the Department of Justice, as eighteen year old 137 00:07:43,480 --> 00:07:47,240 Speaker 1: Peyton Gendren told investigators his goal was to kill as 138 00:07:47,280 --> 00:07:51,239 Speaker 1: many black people as possible. Attorney General Merritt Garland visited 139 00:07:51,240 --> 00:07:54,560 Speaker 1: at the Top supermarket where the shooting happened. Hate fueled 140 00:07:54,600 --> 00:07:58,320 Speaker 1: acts of violence terrorized not only the individuals who are 141 00:07:58,360 --> 00:08:05,680 Speaker 1: all attacked, but entire communities. Hate brings media devastation, and 142 00:08:06,000 --> 00:08:11,120 Speaker 1: it inflicts lasting fear. Attorney General Garland placed flowers at 143 00:08:11,160 --> 00:08:15,280 Speaker 1: a memorial and men with families. Lawyers for British socialite 144 00:08:15,320 --> 00:08:18,200 Speaker 1: Galaine Maxwell say she should face no more than four 145 00:08:18,280 --> 00:08:21,400 Speaker 1: to five years in prison at sentencing later this month 146 00:08:21,640 --> 00:08:25,000 Speaker 1: for her role in financier Jeffrey Epstein's sex abuse of 147 00:08:25,080 --> 00:08:28,560 Speaker 1: teenage girls. Epstein took his own life in August of 148 00:08:28,920 --> 00:08:32,920 Speaker 1: nineteen while awaiting a sex trafficking trial in Manhattan. The 149 00:08:33,040 --> 00:08:35,560 Speaker 1: role of former Vice President Mike Pence will be a 150 00:08:35,600 --> 00:08:39,760 Speaker 1: major focus of Today's congressional hearing on last year's Capital riot, 151 00:08:40,000 --> 00:08:42,840 Speaker 1: the January six committee will focus on the pressure put 152 00:08:42,880 --> 00:08:45,720 Speaker 1: on Pence that day and includes efforts to keep Pence 153 00:08:45,760 --> 00:08:49,960 Speaker 1: from certifying President Biden's election victory. The House January six 154 00:08:50,040 --> 00:08:55,160 Speaker 1: elect Committee released video showing Republican Georgia Representative Buried louder 155 00:08:55,200 --> 00:08:58,559 Speaker 1: Milk leading constituents on a tour around the Capitol complex 156 00:08:58,840 --> 00:09:02,640 Speaker 1: on January f The committee claimed one of the participants 157 00:09:02,640 --> 00:09:04,720 Speaker 1: in the two were marched to the Capitol the next 158 00:09:04,800 --> 00:09:08,760 Speaker 1: day and may detail threats against members of Congress. New 159 00:09:08,840 --> 00:09:13,960 Speaker 1: York Democratic Congress Remember Alexandria Ocassio Cortez and the fact 160 00:09:13,960 --> 00:09:16,880 Speaker 1: that he was inviting and letting people in that he 161 00:09:17,000 --> 00:09:19,360 Speaker 1: did not know when the capital was close to the public. 162 00:09:20,720 --> 00:09:22,160 Speaker 1: The fact that he was giving a tour at all 163 00:09:22,920 --> 00:09:29,600 Speaker 1: is extremely concerned. Representative Occassio Cortez spoke to ABC. Congressman 164 00:09:29,640 --> 00:09:33,360 Speaker 1: Loudermulk has denied any wrongdoing. COVID vaccines for infants and 165 00:09:33,400 --> 00:09:36,199 Speaker 1: Toddler's from MODERNA and Visor one support from a panel 166 00:09:36,240 --> 00:09:39,920 Speaker 1: of US regulatory advisors. The Committee advising the FDA voted 167 00:09:40,000 --> 00:09:43,720 Speaker 1: unanimously in favor of Viser's three dose vaccine for youngsters 168 00:09:43,760 --> 00:09:46,120 Speaker 1: ages six months through four years. It also gave a 169 00:09:46,160 --> 00:09:50,480 Speaker 1: strong endorsement to Moderna's two Dose for children six months 170 00:09:50,600 --> 00:09:53,560 Speaker 1: through five years. Global News twenty four hours a day 171 00:09:53,600 --> 00:09:56,120 Speaker 1: on air end on Bloomberg Quick Tank, powered by more 172 00:09:56,320 --> 00:09:58,880 Speaker 1: than twenty seven hundred journalists analysts more than a hundred 173 00:09:58,880 --> 00:10:01,800 Speaker 1: twenty countries. I'm like Labar, this is Bloomberg, John Michael, 174 00:10:01,800 --> 00:10:08,280 Speaker 1: thank you. Sound sixteen of walls free, best time for 175 00:10:08,320 --> 00:10:11,800 Speaker 1: the Bloomberg Sports Update. Here's John Stasher, All right, John Scott. 176 00:10:11,800 --> 00:10:14,240 Speaker 1: Often you see a team be thirty games over five 177 00:10:14,360 --> 00:10:17,080 Speaker 1: hundred and mid June. But the Yankees are forty six 178 00:10:17,160 --> 00:10:19,559 Speaker 1: and sixteen at stadium and Aaron Judge Holmes run first, 179 00:10:19,600 --> 00:10:22,040 Speaker 1: hitting the twenty five. That's seven more than anyone else 180 00:10:22,040 --> 00:10:25,160 Speaker 1: in the majors. Three run shot for Kyle Agashi Yoka 181 00:10:25,240 --> 00:10:27,920 Speaker 1: fifth and he hadn't homer all year until he hit 182 00:10:27,960 --> 00:10:29,839 Speaker 1: two just this past Sunday, and now he's got a third. 183 00:10:29,880 --> 00:10:32,480 Speaker 1: Yanks be Table Bay four to three. Nest Court has 184 00:10:32,480 --> 00:10:34,319 Speaker 1: to win the other's safe for Clay Homes in City 185 00:10:34,360 --> 00:10:37,000 Speaker 1: Field night to forget for the Mets, who lost in Milwaukee, 186 00:10:37,040 --> 00:10:39,440 Speaker 1: tend to two in Atlanta one again. The Braves are 187 00:10:39,440 --> 00:10:42,000 Speaker 1: at fourteen and oh in June and they're now four 188 00:10:42,040 --> 00:10:44,079 Speaker 1: games behind the Mets. Second straight night of near no 189 00:10:44,240 --> 00:10:48,240 Speaker 1: hitter that Dodgers Tyler Anderson lost it when Shoeotani hit 190 00:10:48,280 --> 00:10:50,800 Speaker 1: a triple with one out in the ninth inning overtime 191 00:10:50,800 --> 00:10:53,320 Speaker 1: to start Stanley Cup Final. Colorado Blue a three one league, 192 00:10:53,320 --> 00:10:56,640 Speaker 1: but got a goal from Andre Barakowski minute twenty three 193 00:10:56,640 --> 00:10:59,240 Speaker 1: and oh t for a four three game one victory 194 00:10:59,400 --> 00:11:01,360 Speaker 1: over tamp of May. To night in Boston, it's Game 195 00:11:01,440 --> 00:11:03,800 Speaker 1: six of the NBA Finals. Either Golden State wins the 196 00:11:03,880 --> 00:11:06,960 Speaker 1: championship or it's back to San Francisco for a game seven. 197 00:11:07,000 --> 00:11:09,480 Speaker 1: And what a sports day in Boston because this morning 198 00:11:09,920 --> 00:11:12,720 Speaker 1: they too off to begin the US Open Country Club 199 00:11:12,720 --> 00:11:15,360 Speaker 1: of Brookline, of course, that first hosted they open in 200 00:11:15,480 --> 00:11:19,040 Speaker 1: nineteen thirteen with a victory by Brookline native Francis. We 201 00:11:19,200 --> 00:11:22,760 Speaker 1: met Roy McElroy looking forward to plane in historic court. 202 00:11:22,800 --> 00:11:25,280 Speaker 1: That is what's so good about golf is the history, 203 00:11:25,280 --> 00:11:28,600 Speaker 1: in the tradition and these stories. Um. You know the 204 00:11:28,640 --> 00:11:33,160 Speaker 1: fact that he grew up just off the seventeen goal here, um, 205 00:11:33,200 --> 00:11:35,160 Speaker 1: and we're still talking about it to this day. Over 206 00:11:35,200 --> 00:11:37,360 Speaker 1: a hundred years old, Like that's so cool. That's the 207 00:11:37,400 --> 00:11:39,640 Speaker 1: great thing about this sport. McIlroy has got an early 208 00:11:39,640 --> 00:11:42,679 Speaker 1: tea time, so does Defenny Champ. John Ram updates throughout 209 00:11:42,679 --> 00:11:45,520 Speaker 1: the attorney here on Bloombrig Radio. John Stanshard bloom Brig Sports, 210 00:11:45,600 --> 00:11:47,880 Speaker 1: John all right, Thanks John. Ahead of the cash open 211 00:11:47,920 --> 00:11:52,000 Speaker 1: on Wall Street. After yesterday's rally, Futures this morning firmly 212 00:11:52,080 --> 00:11:55,840 Speaker 1: in the red Dalla futures down four hundred nineties seven points, 213 00:11:56,240 --> 00:12:00,400 Speaker 1: SMP eveny futures seventy six points. Lower futures down two 214 00:12:00,520 --> 00:12:07,320 Speaker 1: hundred seventy seven points. This is Daybreak, Bloomberg Daybreak Bronck 215 00:12:07,360 --> 00:12:10,760 Speaker 1: you by Hofstra University's Frank gez Arm School of Business, 216 00:12:11,040 --> 00:12:14,880 Speaker 1: top running to online NBA program with a real world foundation. 217 00:12:15,200 --> 00:12:17,959 Speaker 1: Learn more at Hofster dot e d u slash go 218 00:12:18,240 --> 00:12:25,760 Speaker 1: grad Markets, headlines and breaking news twenty four hours a day, 219 00:12:25,920 --> 00:12:28,880 Speaker 1: at Bloomberg dot Com, The Bloomberg Business at and at 220 00:12:28,880 --> 00:12:38,839 Speaker 1: Bloomberg Quick Tape. He's a Bloomberg Business Lash. I'm Nathan Hager. 221 00:12:38,920 --> 00:12:41,400 Speaker 1: The stock rally that followed the FED supersized rate high 222 00:12:41,480 --> 00:12:45,560 Speaker 1: yesterday has evaporated as recession fears take over This market. 223 00:12:45,600 --> 00:12:48,000 Speaker 1: We check the numbers every fifteen minutes during the trading day. 224 00:12:48,000 --> 00:12:51,160 Speaker 1: On Bloomberg, STP futures down down seventy eight point. STOUT 225 00:12:51,200 --> 00:12:54,560 Speaker 1: futures down five eleven. Nasdaq futures are lower by two 226 00:12:54,840 --> 00:12:57,640 Speaker 1: d ninety points. The tenure Treasury is down one in 227 00:12:57,760 --> 00:13:00,840 Speaker 1: eight thirty seconds. The yield three point or three percent 228 00:13:00,920 --> 00:13:04,280 Speaker 1: of fifteen basis points two year yield three point pree 229 00:13:04,360 --> 00:13:07,600 Speaker 1: five percent. Dimex screwed is down two tenths percent at 230 00:13:07,600 --> 00:13:10,440 Speaker 1: a hundred fifteens a barrel. Comex called up two tenths 231 00:13:10,440 --> 00:13:13,720 Speaker 1: percent at eighteen seventy announced. The euro one point zero 232 00:13:13,720 --> 00:13:16,040 Speaker 1: four zero six against the dollar in agin is at 233 00:13:16,040 --> 00:13:19,120 Speaker 1: one thirty three point one five. That's a Bloomberg business flash. 234 00:13:19,160 --> 00:13:21,079 Speaker 1: Now here's Michael Barr with more on what's going on 235 00:13:21,200 --> 00:13:23,680 Speaker 1: around the world. Michael Nathan, thank you very much. The 236 00:13:23,760 --> 00:13:26,960 Speaker 1: January six Committee is plunging into Donald Trump's efforts to 237 00:13:26,960 --> 00:13:30,640 Speaker 1: pressure Vice President Mike Pence to reject the electoral count. 238 00:13:30,920 --> 00:13:34,520 Speaker 1: At today's hearing, testimony is expected from retired federal judge 239 00:13:34,559 --> 00:13:37,560 Speaker 1: Michael Luddick, who called the plan incorrect at every turn. 240 00:13:38,000 --> 00:13:40,439 Speaker 1: In baseball, the red hot Yankees one again. The Mats 241 00:13:40,520 --> 00:13:43,560 Speaker 1: lost along with the Nationals, Orioles and Giants. The Red 242 00:13:43,600 --> 00:13:46,280 Speaker 1: Sox beat the A's Game one in the NHL Final. 243 00:13:46,600 --> 00:13:50,079 Speaker 1: The Avalanche beat the Lightning in overtime. Global News twenty 244 00:13:50,080 --> 00:13:52,920 Speaker 1: four hours a day on air and on Bloomberg Quick Take, 245 00:13:53,160 --> 00:13:55,720 Speaker 1: powered by more than twenty seven hundred journalists and analyst 246 00:13:55,840 --> 00:13:58,000 Speaker 1: more than a hundred twenty countries. I'm Michael Barr. This 247 00:13:58,040 --> 00:14:01,160 Speaker 1: is Bloomberg, John Michael, thank you, six Ena Wall Street. 248 00:14:01,240 --> 00:14:04,120 Speaker 1: We are live from the Bloomberg INTERACTI Broker's Studios. This 249 00:14:04,520 --> 00:14:08,480 Speaker 1: is Bloomberg daybreak Feed. Reserved chair Jerome Powell seems to 250 00:14:08,520 --> 00:14:13,160 Speaker 1: have acknowledged that reigning and inflation may result in a recession. 251 00:14:13,800 --> 00:14:16,920 Speaker 1: Let's get more now against today's Fed meaning. Allen Sander Mortgang, 252 00:14:17,120 --> 00:14:20,080 Speaker 1: Stanley's chief of U S E Commerce, joins us this morning. 253 00:14:20,520 --> 00:14:23,520 Speaker 1: A pleasure, good to talk to Allen. Um, how far 254 00:14:23,600 --> 00:14:27,520 Speaker 1: into restrictive territory is the FED willing to go at 255 00:14:27,520 --> 00:14:38,120 Speaker 1: this point? Ellen Sender, can you hear us? Can? All right? 256 00:14:38,160 --> 00:14:41,520 Speaker 1: Sorry having I have a little trouble with the line there, Ellen, 257 00:14:41,600 --> 00:14:44,200 Speaker 1: But let me just repeat the question for you. How 258 00:14:44,240 --> 00:14:48,440 Speaker 1: far into a restrictive territory. Is this FED willing to 259 00:14:48,480 --> 00:14:52,320 Speaker 1: go at this point? Yes, I think the message from 260 00:14:52,320 --> 00:14:55,360 Speaker 1: Pale yesterday was not quite the will do whatever it 261 00:14:55,400 --> 00:15:00,760 Speaker 1: takes message that we were expecting. But to acknowledge that 262 00:15:00,840 --> 00:15:05,440 Speaker 1: recession could be an outcome is really realistic. I mean, 263 00:15:05,800 --> 00:15:08,080 Speaker 1: you know, we've not had to deal with accelerating inflation 264 00:15:08,120 --> 00:15:12,080 Speaker 1: in a very long time. Before the Great Moderation, it 265 00:15:12,200 --> 00:15:15,880 Speaker 1: was pretty standard that an acceleration inflation led recessions because 266 00:15:15,920 --> 00:15:18,360 Speaker 1: of the FED response. And if that's what it takes 267 00:15:18,360 --> 00:15:20,280 Speaker 1: to get inflation down. If the Dead's not able to 268 00:15:20,280 --> 00:15:23,640 Speaker 1: slow the economy enough or overdoes it, it can't course 269 00:15:23,640 --> 00:15:29,680 Speaker 1: correct fast enough, well, then recession is the obvious uh 270 00:15:29,840 --> 00:15:32,320 Speaker 1: in game there. I don't think investors should be that 271 00:15:32,400 --> 00:15:36,320 Speaker 1: scared of it though. Okay, but the upper bound somewhere 272 00:15:36,360 --> 00:15:40,800 Speaker 1: three and a quarter to three fifty. Uh, that has moved. 273 00:15:40,800 --> 00:15:45,280 Speaker 1: But is that enough at this point? Do you think? Yeah, 274 00:15:45,360 --> 00:15:47,440 Speaker 1: you know, we'll see. I mean, the market was pricing 275 00:15:47,440 --> 00:15:49,720 Speaker 1: an even higher peak rate and the SAD funds rate 276 00:15:50,520 --> 00:15:53,600 Speaker 1: before this meeting, but some of that is the investors 277 00:15:53,600 --> 00:15:55,800 Speaker 1: have had to put a greater weight on the possibility 278 00:15:55,800 --> 00:15:58,120 Speaker 1: of procession so the FED can go it high as 279 00:15:58,160 --> 00:16:01,040 Speaker 1: the FED wants to go, but it preaches the ecmmune 280 00:16:01,080 --> 00:16:05,000 Speaker 1: recession and has to back out some of those rate hikes. 281 00:16:05,000 --> 00:16:08,120 Speaker 1: And I think that's what we're seeing in terms of investors. 282 00:16:08,120 --> 00:16:09,960 Speaker 1: Assuming the Feds may be able to only go as 283 00:16:10,080 --> 00:16:12,680 Speaker 1: high as three and a half percent, I think with 284 00:16:13,080 --> 00:16:15,240 Speaker 1: the path of inflation that we envisioned, the FED is 285 00:16:15,240 --> 00:16:17,760 Speaker 1: going to have to go higher than that. UH and 286 00:16:17,920 --> 00:16:20,920 Speaker 1: Charepel is very confident that he is the leader to 287 00:16:20,960 --> 00:16:24,040 Speaker 1: be nimble enough to do that course correction, similar as 288 00:16:24,080 --> 00:16:26,440 Speaker 1: something that they did in Twinning eight team. They pivoted 289 00:16:26,520 --> 00:16:29,240 Speaker 1: very quickly when they saw liquidity troubles and the global 290 00:16:29,280 --> 00:16:35,160 Speaker 1: slowdown UM, and they were able to UH stabilize economic conditions. Unfortunately, 291 00:16:35,680 --> 00:16:38,720 Speaker 1: COVID hit, but you can't test how long those conditions 292 00:16:38,800 --> 00:16:41,520 Speaker 1: might have been stable. But what we like to call, 293 00:16:41,960 --> 00:16:48,040 Speaker 1: you know, UM recession is really opportunistic disinflation because when 294 00:16:48,040 --> 00:16:50,480 Speaker 1: the economy is in a downturn, it tends to take 295 00:16:50,560 --> 00:16:53,480 Speaker 1: steam off of inflation. It has that gravitational pool, and 296 00:16:53,520 --> 00:16:56,040 Speaker 1: so if the FED can't do it alone from taking 297 00:16:56,120 --> 00:16:59,760 Speaker 1: rates into restricted territory, they'll have to go even further UM. 298 00:16:59,760 --> 00:17:03,640 Speaker 1: And a recession is a risk they're willing to take. Right, 299 00:17:03,960 --> 00:17:09,679 Speaker 1: Is this the inflation simply demand driven? How complicated is 300 00:17:09,720 --> 00:17:15,240 Speaker 1: the fix and doesn't really test UH of FED policy? Yeah? 301 00:17:15,240 --> 00:17:17,959 Speaker 1: So I think John, we're past the point of of 302 00:17:18,000 --> 00:17:20,680 Speaker 1: worrying if it's demand or supply driven. I mean, I'm 303 00:17:20,760 --> 00:17:23,560 Speaker 1: I'm in the camp that it's both. That You've got 304 00:17:23,720 --> 00:17:28,200 Speaker 1: UH in even more acute lack of goods and availability 305 00:17:28,200 --> 00:17:30,640 Speaker 1: of labor at a time when we have a lot 306 00:17:30,680 --> 00:17:33,200 Speaker 1: of tip of demand in the in the country now 307 00:17:33,240 --> 00:17:36,439 Speaker 1: it's pink of demand for services and travel and leisure 308 00:17:36,440 --> 00:17:41,080 Speaker 1: and hospitality and enjoying ourselves. Um. But but you know, 309 00:17:41,119 --> 00:17:42,840 Speaker 1: we have to get past that and just say, look, 310 00:17:42,920 --> 00:17:47,440 Speaker 1: whatever the supplied destructions are, whatever is creating higher inflation, 311 00:17:47,800 --> 00:17:51,240 Speaker 1: the FED needs to force demands lower in the economy 312 00:17:51,480 --> 00:17:55,160 Speaker 1: to align with that, to align with tighter supply and 313 00:17:55,240 --> 00:17:57,159 Speaker 1: bring demand down. So it just means that they have 314 00:17:57,160 --> 00:18:00,520 Speaker 1: a bigger job to do, UH to do here. So 315 00:18:00,680 --> 00:18:05,040 Speaker 1: what's going to happen on the employment front? Well, on 316 00:18:05,080 --> 00:18:08,199 Speaker 1: the employment for jobs have to slow, I mean not 317 00:18:08,280 --> 00:18:10,640 Speaker 1: in the near term. I think all the indicators are 318 00:18:10,640 --> 00:18:13,880 Speaker 1: that employers are still hiring. My concern is that what 319 00:18:13,920 --> 00:18:18,159 Speaker 1: we're hearing from our companies is that we have filled 320 00:18:18,200 --> 00:18:21,679 Speaker 1: the need to have jobs and we're going to close 321 00:18:21,720 --> 00:18:23,960 Speaker 1: out the nice to have jobs. And I think we're 322 00:18:24,000 --> 00:18:25,960 Speaker 1: really going to see that in the fourth quarter. It's 323 00:18:25,960 --> 00:18:29,280 Speaker 1: gonna look like the job market has much more slack 324 00:18:29,320 --> 00:18:33,160 Speaker 1: in it um than the SAID has assumed. UM. If 325 00:18:33,200 --> 00:18:36,080 Speaker 1: that is the case, then the SAID may recognize that 326 00:18:36,160 --> 00:18:39,000 Speaker 1: and not have to take rates um as far because 327 00:18:39,040 --> 00:18:40,960 Speaker 1: it's really that slack in the labor markets that they're 328 00:18:41,000 --> 00:18:44,280 Speaker 1: looking for. We need to slow the economy to take 329 00:18:44,359 --> 00:18:46,399 Speaker 1: some pressure off of the labor market and raise the 330 00:18:46,440 --> 00:18:49,520 Speaker 1: unemployment rate. That's that's the ugly truth of it. I've 331 00:18:49,560 --> 00:18:53,000 Speaker 1: seen a number of comparisons to the vulgar era. Are 332 00:18:53,000 --> 00:18:58,080 Speaker 1: those comparisons valid? I think in terms of the message 333 00:18:58,080 --> 00:19:01,240 Speaker 1: of doing whatever it takes. In terms of the urgency 334 00:19:01,480 --> 00:19:05,760 Speaker 1: UH and UH the intolerance for sustain higher levels of 335 00:19:05,800 --> 00:19:10,720 Speaker 1: inflation that is absolutely bulker like area UM having to 336 00:19:10,760 --> 00:19:13,760 Speaker 1: take rates high enough to get the economy into deep 337 00:19:13,800 --> 00:19:17,280 Speaker 1: de profession I don't believe that's the case. We also 338 00:19:17,359 --> 00:19:20,320 Speaker 1: don't have a wage price spiral. We're actually seeing things 339 00:19:20,320 --> 00:19:22,960 Speaker 1: in liked market work like they should. Retail. We've seen 340 00:19:22,960 --> 00:19:27,480 Speaker 1: a surgeon restaurants. We've seen the surgeon applications. Wage pressures 341 00:19:27,280 --> 00:19:29,760 Speaker 1: are coming off in that sector. As we get more 342 00:19:29,760 --> 00:19:32,639 Speaker 1: people back to work. Things are working like they should, 343 00:19:33,080 --> 00:19:36,880 Speaker 1: They're just not working quickly. Allen always a pleasure. Ellen 344 00:19:36,920 --> 00:19:40,040 Speaker 1: Center Market, Stanley's chief US economists with us this morning. 345 00:19:40,320 --> 00:19:44,320 Speaker 1: Jaffy yesterday's rally. It is a risk off for the moments. 346 00:19:44,600 --> 00:19:47,520 Speaker 1: Dalla futures right now five hundred forty three points lower, 347 00:19:48,040 --> 00:19:50,360 Speaker 1: the S and B in many futures down to eighty five. 348 00:19:50,480 --> 00:19:54,760 Speaker 1: Nasday features three hundred and fifteen points lower ten year 349 00:19:54,840 --> 00:19:58,160 Speaker 1: yield right now three forty three. That is a fourteen 350 00:19:58,480 --> 00:20:01,560 Speaker 1: basis points of the This morning, you're listening to the 351 00:20:01,600 --> 00:20:09,359 Speaker 1: Bloomberg day Break Bloomberg Weather from mediologists Rob Carolin Partlet 352 00:20:09,520 --> 00:20:14,560 Speaker 1: mostly cloudy, chance of a showering thunderstorm behind today, Mostly 353 00:20:14,560 --> 00:20:18,280 Speaker 1: cloudy tonight, lows dipping to around seventy degrees. This is 354 00:20:18,320 --> 00:20:25,200 Speaker 1: Bloomberg Markets, headlines and breaking news twenty four hours a 355 00:20:25,280 --> 00:20:28,120 Speaker 1: day at Bloomberg dot com for the Bloomberg Business at 356 00:20:28,240 --> 00:20:38,640 Speaker 1: and at Bloomberg Quick Tape is a Bloomberg Business lash. 357 00:20:39,080 --> 00:20:41,960 Speaker 1: I'm Nathan Hagar. Well, so much for the Post fed 358 00:20:42,119 --> 00:20:45,320 Speaker 1: rally futures are diving this morning. We go live to 359 00:20:45,400 --> 00:20:47,880 Speaker 1: the First Word Breaking news desk for today's morning call. 360 00:20:47,960 --> 00:20:51,440 Speaker 1: Here's Bill Maloney. Good morning, Bill, Hey, good morning Nathan. 361 00:20:51,480 --> 00:20:54,360 Speaker 1: That's right. US futures are plunging right now, with DOWN 362 00:20:54,359 --> 00:20:58,000 Speaker 1: futures down six hundred points says He's drop, and nasdeck 363 00:20:58,040 --> 00:21:02,000 Speaker 1: futures are lower by three huntrewy four the US ten 364 00:21:02,160 --> 00:21:04,720 Speaker 1: Ye know that three point for three percent, Gold is 365 00:21:04,760 --> 00:21:07,240 Speaker 1: down eleven, oil is in the red, and Bitcoin is 366 00:21:07,280 --> 00:21:10,640 Speaker 1: down by another two point seven percent. Hong Kong fell 367 00:21:10,680 --> 00:21:13,440 Speaker 1: two point two percent overnight, while Europe markets are also 368 00:21:13,480 --> 00:21:16,159 Speaker 1: in the red, led by three percent losses in Italy 369 00:21:16,480 --> 00:21:19,840 Speaker 1: and note the Swiss National Bank surprise markets with its 370 00:21:19,880 --> 00:21:23,320 Speaker 1: first interest rate hike in fifteen years. Back in the US, 371 00:21:23,400 --> 00:21:26,520 Speaker 1: on the economic Frinday thirty initial jobs claims, Housing starts, 372 00:21:26,800 --> 00:21:30,560 Speaker 1: and Philly fed Regarding earnings, look for Kroger and Jabil 373 00:21:30,600 --> 00:21:33,520 Speaker 1: to report in the pre market. In other news, Tessela 374 00:21:33,640 --> 00:21:37,200 Speaker 1: increased prices across its lineup and Revlon filed for chapter 375 00:21:37,280 --> 00:21:40,320 Speaker 1: eleven wrapping things up. Auto Zonner was raised to overweight 376 00:21:40,359 --> 00:21:44,280 Speaker 1: at Morgan Stanley. Boeing was upgraded rats City Group Live 377 00:21:44,359 --> 00:21:47,400 Speaker 1: from the first Breaking News Daskam Bill Maloney, Nathan Okay, Bill, 378 00:21:47,400 --> 00:21:50,159 Speaker 1: thanks you get live breaking news over your Bloomberg type 379 00:21:50,200 --> 00:21:52,960 Speaker 1: squawk on the terminal. S qu a go is how 380 00:21:53,000 --> 00:21:55,359 Speaker 1: you do it? That's the Bloomberg Business Flash. Now here's 381 00:21:55,400 --> 00:21:58,040 Speaker 1: Michael Barr with more on what's going on around the world. Michael, 382 00:21:58,160 --> 00:22:00,560 Speaker 1: thank you very much. Nathan. The House Committee and investigating 383 00:22:00,600 --> 00:22:04,960 Speaker 1: the January Riot is holding its third public hearing today. 384 00:22:05,080 --> 00:22:07,840 Speaker 1: The panel is expected to focus on threats against former 385 00:22:07,960 --> 00:22:11,720 Speaker 1: Vice President Pence. Less than two weeks after restarting production, 386 00:22:12,119 --> 00:22:15,440 Speaker 1: Abbot's troubled infant formula plan in Michigan is now being 387 00:22:15,480 --> 00:22:19,160 Speaker 1: forced to shut back down again. Torrential storms cause power 388 00:22:19,240 --> 00:22:22,840 Speaker 1: outages and flooded parts of their facility. In baseball, the 389 00:22:22,880 --> 00:22:25,760 Speaker 1: Yankees one, the Mets lost, along with the Nationals, Orioles 390 00:22:25,760 --> 00:22:28,480 Speaker 1: and Giants. The Red Sox beat the A's in Game 391 00:22:28,520 --> 00:22:31,280 Speaker 1: one of the NHL Final. The Avalanche beat the Lightning 392 00:22:31,280 --> 00:22:34,480 Speaker 1: and overtime. Thus Celtics will try to stay alive tonight 393 00:22:34,520 --> 00:22:37,600 Speaker 1: in Game six of the NBA Finals. The Warriors could 394 00:22:37,640 --> 00:22:40,360 Speaker 1: win it all tonight. In Boston, Global News twenty four 395 00:22:40,400 --> 00:22:43,840 Speaker 1: hours a day on air and on Bloomberg Quicktake, powered 396 00:22:43,840 --> 00:22:46,680 Speaker 1: by more than journalists and analysts and more than a 397 00:22:46,760 --> 00:22:50,720 Speaker 1: hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, 398 00:22:50,800 --> 00:22:53,359 Speaker 1: Thank you, Michael. It is sixty nine on Wall Street. 399 00:22:53,440 --> 00:22:56,000 Speaker 1: Let's turn out to news in science and technology. The 400 00:22:56,000 --> 00:22:58,600 Speaker 1: Bloomberg n j I T STEM Report is brought to 401 00:22:58,640 --> 00:23:01,320 Speaker 1: you by New Jersey institut To to Technology, offering New 402 00:23:01,400 --> 00:23:04,800 Speaker 1: Jersey's first undergraduate degree in fintech and j I T 403 00:23:05,040 --> 00:23:07,880 Speaker 1: is Future in the Making, tech driven, finance focused. Learn 404 00:23:07,880 --> 00:23:10,320 Speaker 1: more at n j I T dot E d U 405 00:23:10,440 --> 00:23:14,679 Speaker 1: slash Fintech and now Here's what's making news and science, technology, engineering, 406 00:23:14,680 --> 00:23:17,919 Speaker 1: and math. Shanghai will conduct mass COVID testing throughout the 407 00:23:18,080 --> 00:23:21,199 Speaker 1: entire city every weekend through the end of July. A 408 00:23:21,240 --> 00:23:24,920 Speaker 1: temporary lockdown will also be imposed on any residential complex 409 00:23:24,960 --> 00:23:29,359 Speaker 1: where COVID cases detected. Workers at supermarkets, small's, restaurants, and 410 00:23:29,440 --> 00:23:32,800 Speaker 1: other public facing businesses in Shanghai will be tested now 411 00:23:32,880 --> 00:23:36,240 Speaker 1: every day. The California Supreme Court has left intact a 412 00:23:36,359 --> 00:23:39,520 Speaker 1: ruling that allows customers to sue Amazon for failing to 413 00:23:39,560 --> 00:23:43,600 Speaker 1: warn buyers that some products itsels may contain hazardous substances. 414 00:23:43,600 --> 00:23:46,840 Speaker 1: Such as mercury. The court denied a request by Amazon's 415 00:23:46,880 --> 00:23:49,560 Speaker 1: lawyers to review a lower ruling that said Amazon violated 416 00:23:49,560 --> 00:23:53,680 Speaker 1: the state's Proposition sixty five, that the law requires companies 417 00:23:53,720 --> 00:23:56,119 Speaker 1: to warn consumers about products they make or sell that 418 00:23:56,160 --> 00:23:59,640 Speaker 1: contain chemicals known to cause cancer, reproductive harm, or birth 419 00:23:59,680 --> 00:24:03,959 Speaker 1: defa and Tesla is raising prices across its line up. 420 00:24:04,160 --> 00:24:08,320 Speaker 1: The electric car maker and other global vehicle makers continue 421 00:24:08,359 --> 00:24:11,639 Speaker 1: to grapple with surging costs for raw materials. Electrac is 422 00:24:11,680 --> 00:24:14,400 Speaker 1: reporting that Tesla lifted the price of the long range 423 00:24:14,400 --> 00:24:17,840 Speaker 1: Model three by dollars to just under fifty eight grand. 424 00:24:18,280 --> 00:24:20,880 Speaker 1: The longer range Model X dual motor all wheel drive 425 00:24:21,280 --> 00:24:24,400 Speaker 1: was bumped up six thousand dollars to a sticker price 426 00:24:24,440 --> 00:24:27,680 Speaker 1: of almost one one thousand dollars. And that is the 427 00:24:27,680 --> 00:24:31,080 Speaker 1: Bloomberg and j I T Stem report John Nathan tex 428 00:24:31,200 --> 00:24:34,000 Speaker 1: A Lot, we are live for the Bloomberg Interactor Brokers 429 00:24:34,040 --> 00:24:38,160 Speaker 1: Studios where it's sixty one Wall Street. That means it's 430 00:24:38,160 --> 00:24:40,359 Speaker 1: time to check what's going on at d C. And 431 00:24:40,480 --> 00:24:43,760 Speaker 1: some of the top stories in our nation's capital include 432 00:24:44,200 --> 00:24:48,480 Speaker 1: the FED triggered recession may cost President by the second term, 433 00:24:49,200 --> 00:24:52,280 Speaker 1: President by the open it using Cold War era laws 434 00:24:52,359 --> 00:24:57,000 Speaker 1: to ramp up gasoline output, and former Vice President Pants 435 00:24:57,080 --> 00:25:01,160 Speaker 1: aids to testify the false electors. And as the January 436 00:25:01,200 --> 00:25:05,720 Speaker 1: six hearings they continue. Key Republican senator says gun safety 437 00:25:05,800 --> 00:25:09,040 Speaker 1: talks of hit bumps in the road. Let's take a 438 00:25:09,080 --> 00:25:11,760 Speaker 1: deeper dive ahead of these stories. This morning, we're joined 439 00:25:11,760 --> 00:25:15,240 Speaker 1: by Bloomberg government reporter Jack Fitzpatrick. Jack, thanks a lot, 440 00:25:15,359 --> 00:25:17,960 Speaker 1: and let start with the first story. I guess I 441 00:25:18,280 --> 00:25:23,560 Speaker 1: have to ask the question who owns inflation? Oh boy, 442 00:25:23,680 --> 00:25:27,600 Speaker 1: that is a debate that is raging in Washington, and 443 00:25:28,119 --> 00:25:30,400 Speaker 1: they may be spinning their wheels a little bit at 444 00:25:30,520 --> 00:25:34,920 Speaker 1: A lot of the conversation about inflation on Capitol here 445 00:25:34,920 --> 00:25:37,520 Speaker 1: and Hill, and when you hear from the president has 446 00:25:37,600 --> 00:25:41,640 Speaker 1: really gone into mid term mode. It weighs on Democrats 447 00:25:41,880 --> 00:25:45,320 Speaker 1: much more than Republicans, obviously, because Democrats are in control. 448 00:25:45,720 --> 00:25:49,399 Speaker 1: As for the actual causes, you know, it's difficult for 449 00:25:49,520 --> 00:25:52,199 Speaker 1: the president to make the argument that there's only so 450 00:25:52,280 --> 00:25:55,919 Speaker 1: much he can do. He has put the weight on 451 00:25:55,960 --> 00:25:59,359 Speaker 1: the Fed. He has mentioned that there are this is 452 00:25:59,400 --> 00:26:02,679 Speaker 1: a global issue, but a lot of that is just 453 00:26:03,240 --> 00:26:06,680 Speaker 1: sort of it's difficult for the president to to sweep 454 00:26:06,720 --> 00:26:09,240 Speaker 1: away that and say well, other countries are experiencing it 455 00:26:09,320 --> 00:26:11,960 Speaker 1: as well. And it's an issue that is weighing very 456 00:26:12,000 --> 00:26:14,800 Speaker 1: heavily on Democrats heading towards the mid terms, because it's 457 00:26:14,800 --> 00:26:18,400 Speaker 1: safe to say it's issue number one for voters heading 458 00:26:18,440 --> 00:26:23,919 Speaker 1: into November. Yes, absolutely, inflation is clearly dominating the political 459 00:26:24,320 --> 00:26:27,359 Speaker 1: conversation in the country right now. Uh. And you know, 460 00:26:27,800 --> 00:26:31,119 Speaker 1: the idea of a recession is tied to that. I 461 00:26:31,119 --> 00:26:34,320 Speaker 1: thought it was very interesting that a majority of Americans, 462 00:26:34,560 --> 00:26:37,359 Speaker 1: according to a Yugov Economist poll, think that the US 463 00:26:37,480 --> 00:26:40,359 Speaker 1: is either already in a recession or will be in 464 00:26:40,400 --> 00:26:45,399 Speaker 1: the next twelve months. That's across a number of demographic groups. Uh. 465 00:26:45,520 --> 00:26:49,719 Speaker 1: That that gets to independence. It's it's weighing on Democrats 466 00:26:49,800 --> 00:26:52,880 Speaker 1: very heavily, and it's really an issue where inflation has 467 00:26:52,960 --> 00:26:57,920 Speaker 1: helped turn into recession concerns. Five bucks a gallata Philip 468 00:26:58,160 --> 00:27:01,159 Speaker 1: car early this morning. What's the President going to do 469 00:27:01,200 --> 00:27:03,879 Speaker 1: about it? If he can do anything? Uh, you know 470 00:27:04,040 --> 00:27:07,720 Speaker 1: he has mentioned, or rather the Press Secretary of the 471 00:27:07,720 --> 00:27:11,200 Speaker 1: White House, Koreem Jean Pierre, just mentioned recently that the 472 00:27:11,240 --> 00:27:14,560 Speaker 1: Defense Production Act is on the table to try to 473 00:27:14,920 --> 00:27:21,159 Speaker 1: increase the refining capacity of of oil to increase the 474 00:27:21,200 --> 00:27:24,440 Speaker 1: supply of gasoline. They haven't put out a specific plan. 475 00:27:24,880 --> 00:27:28,960 Speaker 1: A lot of the legislative back and forth has has 476 00:27:29,040 --> 00:27:32,600 Speaker 1: not really gone anywhere for a short term solution on 477 00:27:32,720 --> 00:27:37,240 Speaker 1: gas prices. So that's another facet of the inflation conversation 478 00:27:37,400 --> 00:27:41,760 Speaker 1: that has shifted away from anything that you'd call productive 479 00:27:41,800 --> 00:27:45,800 Speaker 1: and more toward the campaign debate. But at least we 480 00:27:45,880 --> 00:27:48,359 Speaker 1: now know that the Defense Production Act, even though there 481 00:27:48,359 --> 00:27:50,960 Speaker 1: are not details, is something they're they're at least looking at. 482 00:27:51,800 --> 00:27:54,480 Speaker 1: This is sort of an unfair question, but I think 483 00:27:54,520 --> 00:27:57,520 Speaker 1: you can handle it. Do we have a cohesive energy 484 00:27:57,640 --> 00:28:01,919 Speaker 1: policy here in the United States is not particularly no. 485 00:28:02,480 --> 00:28:06,159 Speaker 1: There are debates, you know, within this debate over inflation, 486 00:28:06,640 --> 00:28:10,159 Speaker 1: a lot of Republicans will point to shortcomings that they 487 00:28:10,240 --> 00:28:16,760 Speaker 1: see in Democratic policy on pipelines, on leasing for oil production. 488 00:28:17,119 --> 00:28:22,040 Speaker 1: Those are much longer term issues rather than today's inflation debate. 489 00:28:22,280 --> 00:28:24,920 Speaker 1: But even if you if you get into the legislative 490 00:28:24,920 --> 00:28:28,840 Speaker 1: conversation about broader energy proposals, uh, it's not as if 491 00:28:28,840 --> 00:28:32,560 Speaker 1: they're moving forward on a carbon tax or something like 492 00:28:32,600 --> 00:28:36,679 Speaker 1: that that's cohesive on climate change, And much of the 493 00:28:36,680 --> 00:28:40,160 Speaker 1: conversation is, you know, can you can the federal government 494 00:28:40,280 --> 00:28:43,720 Speaker 1: spend more on this program or that program to encourage 495 00:28:43,760 --> 00:28:47,080 Speaker 1: research and development on cleaner energy, but it's not exactly 496 00:28:47,720 --> 00:28:52,480 Speaker 1: a clearly authorized energy policy at the federal level. UH. 497 00:28:52,600 --> 00:28:55,800 Speaker 1: The next story the well, the January six hearings continue 498 00:28:55,920 --> 00:28:58,840 Speaker 1: on Capitol Hill. Give us the update. Yes, so they're 499 00:28:58,840 --> 00:29:03,640 Speaker 1: gonna be meet today at one pm. This one focuses 500 00:29:04,040 --> 00:29:07,600 Speaker 1: on the amount of pressure and how Donald Trump pressured 501 00:29:07,880 --> 00:29:11,120 Speaker 1: Mike Pence to overturn the results of the election. So 502 00:29:11,120 --> 00:29:14,800 Speaker 1: they're gonna have testimony from Greg Jacob, who is the 503 00:29:14,840 --> 00:29:18,560 Speaker 1: council to Pence, Michael Luddig, who is a more informal 504 00:29:18,640 --> 00:29:21,680 Speaker 1: legal advisor to Pence. We also understand there's going to 505 00:29:21,760 --> 00:29:25,560 Speaker 1: be video testimony shown from Mark Short, who was Pence's 506 00:29:25,640 --> 00:29:29,840 Speaker 1: chief of staff. On one hand, there will be an 507 00:29:29,920 --> 00:29:34,160 Speaker 1: argument that that UH, the president at the time, UH 508 00:29:34,240 --> 00:29:39,480 Speaker 1: inappropriately pressured Prince Pence to in many people's eyes, illegally 509 00:29:39,600 --> 00:29:43,920 Speaker 1: overturned the election. That's the core argument that this panel 510 00:29:44,000 --> 00:29:46,560 Speaker 1: is making. But also there may be some information on 511 00:29:46,880 --> 00:29:50,240 Speaker 1: the danger that might have been presented to Pence and 512 00:29:50,520 --> 00:29:53,560 Speaker 1: the idea that people were going to potentially harm him, 513 00:29:53,600 --> 00:29:56,320 Speaker 1: and what the White House knew and what Pence himself 514 00:29:56,400 --> 00:29:58,600 Speaker 1: knew about that at that time. So the Trump Pence 515 00:29:58,760 --> 00:30:01,640 Speaker 1: relationship is getting this late today. All right, Jack, thanks 516 00:30:01,720 --> 00:30:05,800 Speaker 1: very much. We appreciate it. Bloomberg Government reporter Jack Fitzpatrick. 517 00:30:06,040 --> 00:30:07,880 Speaker 1: And of course you can read more about these stories 518 00:30:07,880 --> 00:30:11,240 Speaker 1: on Bloomberg dot com or on the Bloomberg terminal. And 519 00:30:11,440 --> 00:30:14,280 Speaker 1: also a reminder, you can follow all the latest on 520 00:30:14,360 --> 00:30:18,680 Speaker 1: Bloomberg Radio in Washington's Bloomberg one at one oh five 521 00:30:18,680 --> 00:30:23,320 Speaker 1: point seven FM HD two. Well after the rally that 522 00:30:23,400 --> 00:30:27,920 Speaker 1: we saw yesterday after the Fed decision, it's risk off 523 00:30:28,040 --> 00:30:30,840 Speaker 1: this morning. Down futures right now they are down five 524 00:30:30,920 --> 00:30:33,560 Speaker 1: hundred seventy seven points, that's a decline of one point 525 00:30:33,640 --> 00:30:37,600 Speaker 1: nine percent. SMPE many futures down to eighty seven points, 526 00:30:37,640 --> 00:30:39,880 Speaker 1: that's a decline of two point three percent. At the 527 00:30:39,960 --> 00:30:43,440 Speaker 1: N day futures right now three hundred and fifteen points, lower, 528 00:30:43,880 --> 00:30:48,760 Speaker 1: decline of two points seven percent. This as a recession. 529 00:30:48,840 --> 00:30:52,520 Speaker 1: Fears returned to the markets as far as Yale's gale 530 00:30:52,600 --> 00:30:55,440 Speaker 1: tenure yield right now three forty four. That is a 531 00:30:55,560 --> 00:30:59,920 Speaker 1: rise this morning fifteen basis points. As we see US 532 00:31:00,000 --> 00:31:03,760 Speaker 1: fell off in treasuries continuing compare that to two year 533 00:31:03,840 --> 00:31:07,560 Speaker 1: yield that is at three five that is up sixteen 534 00:31:07,640 --> 00:31:11,600 Speaker 1: basis points this morning, and the vix Wall Streets fear 535 00:31:11,640 --> 00:31:16,880 Speaker 1: gauge that is slightly elevated this morning. Thirty one nine 536 00:31:17,560 --> 00:31:21,000 Speaker 1: and just ahead Bloomberg Savanllance with Tom Keane and Lisa 537 00:31:21,040 --> 00:31:24,920 Speaker 1: Bramboits and John Farrell and for Nathan Hager. I'm John Tucker, 538 00:31:25,160 --> 00:31:30,560 Speaker 1: and you've been listening the Boomberg Daybreak