1 00:00:02,640 --> 00:00:06,440 Speaker 1: My from the Bloomberg Interactive Brooker Studios is Bloomberg Daybreak 2 00:00:06,480 --> 00:00:10,079 Speaker 1: for Thursday May nine two, Coming up this hour. The 3 00:00:10,240 --> 00:00:14,040 Speaker 1: some off continues as US futures add to yesterday's losses. 4 00:00:14,440 --> 00:00:17,240 Speaker 1: JP Morgan becomes the latest firm to cut its outlook 5 00:00:17,239 --> 00:00:20,400 Speaker 1: for growth, Melvin Capital calls it quits, becoming the latest 6 00:00:20,400 --> 00:00:22,560 Speaker 1: casualty of the sell off, and the White House takes 7 00:00:22,560 --> 00:00:26,120 Speaker 1: another step to address the Baby formulas shortage. The suspected 8 00:00:26,120 --> 00:00:29,200 Speaker 1: gunman in Buffalo supermarket shooting as a court appearance today, 9 00:00:29,440 --> 00:00:32,599 Speaker 1: plus Supreme Court justices are getting twenty four hour protection. 10 00:00:33,040 --> 00:00:36,800 Speaker 1: Michael barn More Ahead, I'm John Stash Aaron Sports game 11 00:00:36,840 --> 00:00:39,080 Speaker 1: one of the Hurricanes. They tied the Rangers late and 12 00:00:39,120 --> 00:00:44,760 Speaker 1: then one and overtime wins the Yankees and met That's 13 00:00:44,760 --> 00:00:48,760 Speaker 1: all strained. Ahead on Bloomberg Daybreak on Bloomberg eleven, Free 14 00:00:48,760 --> 00:00:53,159 Speaker 1: on New York, Bloomberg one, Washington, d C, Bloomberg one 15 00:00:53,200 --> 00:00:57,720 Speaker 1: oh six one, Boston, Bloomberg nine sixties and Francisco Syrius 16 00:00:57,720 --> 00:01:00,280 Speaker 1: Exam one nine team and around the world. Old on 17 00:01:00,440 --> 00:01:03,720 Speaker 1: Bloomberg Radio dot Com and by other Bloomberg business app 18 00:01:07,400 --> 00:01:10,440 Speaker 1: Good morning, I'm John Tucker and I'm Karen Moscow and 19 00:01:10,480 --> 00:01:13,360 Speaker 1: you must stock Index futures are lower this morning. We're 20 00:01:13,360 --> 00:01:14,959 Speaker 1: coming up to five oh one on Wall Street and 21 00:01:14,959 --> 00:01:17,680 Speaker 1: we check the markets every fifteen minutes throughout the trading day. 22 00:01:17,800 --> 00:01:21,160 Speaker 1: On Bloomberg, SMP future is down fifty nine points this morning. 23 00:01:21,200 --> 00:01:24,480 Speaker 1: Down Future is down four D two and NASDAC futures 24 00:01:24,520 --> 00:01:27,320 Speaker 1: down two hundred five. Ten year Treasury up their team 25 00:01:27,360 --> 00:01:30,040 Speaker 1: thirty seconds held two point eight three percent and they 26 00:01:30,120 --> 00:01:32,600 Speaker 1: yield on the two year two point six one percent. 27 00:01:33,120 --> 00:01:35,840 Speaker 1: Ninemex Scrude oil is down one point one percent on 28 00:01:35,920 --> 00:01:38,280 Speaker 1: a dollar twenty at a hundred eight dollars forty one 29 00:01:38,280 --> 00:01:40,600 Speaker 1: cents of barrel co Max School is at the quarter 30 00:01:40,680 --> 00:01:43,640 Speaker 1: percent or four dollars forty cents at eighteen six eighty 31 00:01:43,720 --> 00:01:47,080 Speaker 1: announced John and Karen futures are down this morning after 32 00:01:47,160 --> 00:01:51,000 Speaker 1: yesterday's big sell off. SMP five had its biggest single 33 00:01:51,080 --> 00:01:54,400 Speaker 1: day drop in nearly two years. Lauren Gilbert's CEO at 34 00:01:54,400 --> 00:01:58,480 Speaker 1: Wealthwise as investors should proceed with caution. We are playing 35 00:01:58,480 --> 00:02:02,240 Speaker 1: it more conservative of lay them more aggressively, both on 36 00:02:02,280 --> 00:02:04,960 Speaker 1: the fixed income as well as on the equity, so 37 00:02:05,280 --> 00:02:09,480 Speaker 1: dialing down areas that are high yield or areas like that. 38 00:02:09,800 --> 00:02:12,920 Speaker 1: Wealth Wise CEO Luring Gilbert says it's unclear when markets 39 00:02:12,960 --> 00:02:17,280 Speaker 1: could stabilize. Barrings chief global strategist Christopher Smart believes, in 40 00:02:17,320 --> 00:02:21,200 Speaker 1: spite of the uncertainty, are still positive signs from the economy. 41 00:02:21,639 --> 00:02:24,200 Speaker 1: We still see the U S economy as fundamentally strong. 42 00:02:24,760 --> 00:02:27,640 Speaker 1: The U S. Consumer is still very strong. Companies are 43 00:02:27,639 --> 00:02:31,160 Speaker 1: ready to you know, have very good balance sheets. Uh, 44 00:02:31,240 --> 00:02:33,520 Speaker 1: and we've just come through an earning session, an earning 45 00:02:33,560 --> 00:02:36,720 Speaker 1: season that has been relatively good. I think it's important 46 00:02:36,760 --> 00:02:38,880 Speaker 1: to understand there we're still a long way from from 47 00:02:38,960 --> 00:02:42,440 Speaker 1: recession in the US. Christopher Smart of Bearing says it's 48 00:02:42,480 --> 00:02:45,079 Speaker 1: a good time to focus on companies with strong business 49 00:02:45,080 --> 00:02:48,160 Speaker 1: models and balance sheets. Well, John to sell off is 50 00:02:48,200 --> 00:02:51,280 Speaker 1: extending overseas and europe equities are falling hard and to 51 00:02:51,440 --> 00:02:54,760 Speaker 1: after Britain posted record inflation numbers and Bloomberg's You and 52 00:02:54,800 --> 00:02:57,120 Speaker 1: Ponts joins us live from London with the latest You 53 00:02:57,160 --> 00:03:00,040 Speaker 1: and good morning, Good morning, count and John plenty of 54 00:03:00,080 --> 00:03:03,280 Speaker 1: read on traders. Bloomberg screens today every major European stock 55 00:03:03,280 --> 00:03:05,280 Speaker 1: market lower this morning, with the foot Sea down two 56 00:03:05,280 --> 00:03:08,400 Speaker 1: point one percent. In Germany's Dacks off two percent, this 57 00:03:08,600 --> 00:03:11,200 Speaker 1: as investors start to worry that high inflation will cut 58 00:03:11,320 --> 00:03:14,639 Speaker 1: into corporate earnings. All twenty industry groups lower on the 59 00:03:14,680 --> 00:03:18,440 Speaker 1: europe Stocks hundred, with personal care and financial services among 60 00:03:18,480 --> 00:03:21,840 Speaker 1: the worst performing sectors. The Susie hundred currently down two percent. 61 00:03:22,240 --> 00:03:24,480 Speaker 1: Live in London, I'm You and part Spinberg, Debreak You 62 00:03:24,560 --> 00:03:27,920 Speaker 1: and Thanks starts in Asia also fell over. Nain, Bloombridge, 63 00:03:27,960 --> 00:03:30,480 Speaker 1: Julie and Sally joins us with the latest from Singapore. 64 00:03:30,760 --> 00:03:33,000 Speaker 1: Uli a good morning, Good Morning, Karen and John. The 65 00:03:33,080 --> 00:03:36,280 Speaker 1: MSCI Asia Pacific Index halted a four day rally, posting 66 00:03:36,320 --> 00:03:39,120 Speaker 1: its biggest one day decline intra day since early March. 67 00:03:39,480 --> 00:03:42,000 Speaker 1: Ten Cent shares plunged in Hong Kong, dragging down the 68 00:03:42,040 --> 00:03:45,320 Speaker 1: Hang Seng Tech Index after it posted its slowest revenue 69 00:03:45,320 --> 00:03:47,360 Speaker 1: growth in the first quarter since it's two thousand and 70 00:03:47,400 --> 00:03:50,400 Speaker 1: four listing. Chinese shares also came under pressure on the 71 00:03:50,400 --> 00:03:53,560 Speaker 1: mainland after stan Chart cut their twenty twenty two GDP 72 00:03:53,720 --> 00:03:56,880 Speaker 1: forecast to four point one percent from five percent, but 73 00:03:56,920 --> 00:03:59,840 Speaker 1: Ozzie bonds and the local currency rallied after Australia's un 74 00:03:59,880 --> 00:04:02,880 Speaker 1: in ployment level plunge to any fifty yellow in April, 75 00:04:03,120 --> 00:04:06,880 Speaker 1: delivering a potential boon to Primnenster Scott Morrison's government as 76 00:04:06,920 --> 00:04:09,720 Speaker 1: it into is the final days of campaigning for Saturday's 77 00:04:09,720 --> 00:04:13,800 Speaker 1: election in Singapore. Juliette Sally Bloomber daybreak. All right, Juliette, 78 00:04:13,840 --> 00:04:15,800 Speaker 1: thank you all. Turning to the Fed now is looking 79 00:04:15,840 --> 00:04:18,120 Speaker 1: more and more likely the Fed will follow through on 80 00:04:18,279 --> 00:04:22,680 Speaker 1: j Powell's recent hawkish comments to address inflation. Philadelphia Fed 81 00:04:22,680 --> 00:04:25,440 Speaker 1: President Patrick Harker plans on a series of rate hikes 82 00:04:25,440 --> 00:04:28,000 Speaker 1: at a measured pace going forward. If there are no 83 00:04:28,120 --> 00:04:32,479 Speaker 1: significant changes in the data in the coming weeks, I 84 00:04:32,560 --> 00:04:35,760 Speaker 1: expect two additional fifty basis point rad of hikes in 85 00:04:35,839 --> 00:04:40,040 Speaker 1: June and July and Philadelphia Fed President Patrick Harker made 86 00:04:40,040 --> 00:04:42,479 Speaker 1: the comments at a virtual event hosted by the Mid 87 00:04:42,600 --> 00:04:46,040 Speaker 1: Sized Bank Coalition of America. He anticipates the economic and 88 00:04:46,080 --> 00:04:50,360 Speaker 1: weather a measured, methodical tightening of monetary policy, and JP 89 00:04:50,480 --> 00:04:54,040 Speaker 1: Morgan warning of declining growth economists of the Bank lowering 90 00:04:54,080 --> 00:04:56,800 Speaker 1: their outlook about half a percent for the second half 91 00:04:56,800 --> 00:04:59,560 Speaker 1: of this year. They now forecast growth of two point 92 00:04:59,600 --> 00:05:02,880 Speaker 1: four per set. The bank sites falling stock prices, higher 93 00:05:02,880 --> 00:05:07,640 Speaker 1: mortgage rates at a stronger dollar has reasons for the revision. Well, John, 94 00:05:07,640 --> 00:05:10,480 Speaker 1: It's been over a year since Melvin Capital Management suffered 95 00:05:10,520 --> 00:05:13,159 Speaker 1: severe losses in the Meme stock frenzy, and now gave 96 00:05:13,200 --> 00:05:15,960 Speaker 1: Plotkin's firm is calling it quits. Some Bloomberg is your need. 97 00:05:15,960 --> 00:05:18,159 Speaker 1: A Young is here alive with more. Good morning, Ranida, 98 00:05:18,200 --> 00:05:21,360 Speaker 1: Good morning Karen. Gabe. Plotkin is shutting down his seven 99 00:05:21,360 --> 00:05:25,120 Speaker 1: point eight billion dollar hedge fund. Melvin Capital Management was 100 00:05:25,160 --> 00:05:27,840 Speaker 1: the most prominent victim of the Meme stock frenzy of 101 00:05:27,920 --> 00:05:32,520 Speaker 1: January one, losing billions. The fund posted a fifty five 102 00:05:32,560 --> 00:05:36,040 Speaker 1: percent loss that month alone, and since then, Plotkin has 103 00:05:36,080 --> 00:05:38,360 Speaker 1: been trying to claw his way back with funding from 104 00:05:38,360 --> 00:05:41,679 Speaker 1: some of Wall Street's biggest players. Now, although the funds 105 00:05:41,680 --> 00:05:45,400 Speaker 1: showed some promise last year, a plan to reimpose fees 106 00:05:45,440 --> 00:05:50,279 Speaker 1: frustrated backers and failed. Now Melvin Capital's outlining plans to 107 00:05:50,400 --> 00:05:55,080 Speaker 1: eliminate fees and return investor cash live in New York. 108 00:05:55,120 --> 00:05:58,320 Speaker 1: I'm Randa Young Bloomberg daybreak, All right, Na, Thanks. Turning 109 00:05:58,360 --> 00:06:01,640 Speaker 1: to the nation's capital. Now, the House remains laser focused 110 00:06:01,680 --> 00:06:05,080 Speaker 1: on easing the baby formula shortage. Is taking new measures 111 00:06:05,120 --> 00:06:08,440 Speaker 1: in Tanta with Congress to address the crisis. Bloomberg's Amy 112 00:06:08,480 --> 00:06:11,719 Speaker 1: Morris has the latest from our ninety one newsroom in Washington. 113 00:06:12,320 --> 00:06:16,200 Speaker 1: President Biden invoked emergency powers under the Defense Production Act 114 00:06:16,320 --> 00:06:19,880 Speaker 1: to try to boost production of baby formula while ordering 115 00:06:19,880 --> 00:06:23,880 Speaker 1: the use of government planes for imports called Operation Fly 116 00:06:24,120 --> 00:06:26,880 Speaker 1: Formula best to be able to speed up the import 117 00:06:26,880 --> 00:06:30,560 Speaker 1: of infant formula and start getting more formulat in stories 118 00:06:30,600 --> 00:06:33,159 Speaker 1: as soon as possible. Meanwhile, the House passed the twenty 119 00:06:33,160 --> 00:06:35,960 Speaker 1: eight million dollar emergency funding bill for the FDA to 120 00:06:36,000 --> 00:06:39,680 Speaker 1: address the baby formula shortage. Republicans oppose the measure, and 121 00:06:39,720 --> 00:06:43,160 Speaker 1: its future in the Senate is uncertain. In Washington, I'm 122 00:06:43,160 --> 00:06:45,599 Speaker 1: Aymy Morris, Bloomberg daybreak, all right, Amy, thank you, and 123 00:06:45,600 --> 00:06:49,120 Speaker 1: President Biden meets today with Finland's president and Sweden's prime 124 00:06:49,160 --> 00:06:52,680 Speaker 1: minister to discuss the nation's bids to join NATO. Turkey's 125 00:06:52,720 --> 00:06:55,280 Speaker 1: president has blunt the Alliance from starting the process for 126 00:06:55,400 --> 00:06:58,360 Speaker 1: both countries. He cites Finland and Sweden's approach to Kurdish 127 00:06:58,360 --> 00:07:02,159 Speaker 1: groups that he considers terror. US futures this morning again 128 00:07:02,200 --> 00:07:05,960 Speaker 1: moving lower s and P futures down fifty six points down. 129 00:07:06,000 --> 00:07:09,640 Speaker 1: Futures down four hundred and nastack futures down one hundred 130 00:07:09,680 --> 00:07:13,240 Speaker 1: and ninety three and the euro is at one point 131 00:07:13,240 --> 00:07:15,560 Speaker 1: oh four nine two against the dollar. Straight to head 132 00:07:15,560 --> 00:07:18,280 Speaker 1: your latest local headlines, plus a check of sports. This 133 00:07:18,520 --> 00:07:25,640 Speaker 1: is Bloomberg Alight, count next of Wall Street and time 134 00:07:25,680 --> 00:07:28,000 Speaker 1: to bring in Michael Barr with more on one of 135 00:07:28,000 --> 00:07:31,320 Speaker 1: else is going on to New York end around the world, John, 136 00:07:31,400 --> 00:07:34,360 Speaker 1: Thank you, sir. The white eighteen year old gunmen accused 137 00:07:34,400 --> 00:07:37,080 Speaker 1: of killing ten black people at a Buffalo supermarket is 138 00:07:37,120 --> 00:07:40,800 Speaker 1: scheduled to appear in court today, authorities say. Shortly before 139 00:07:40,800 --> 00:07:45,000 Speaker 1: the attack last Saturday, Peyton Gendron posted hundreds of pages 140 00:07:45,000 --> 00:07:48,480 Speaker 1: of writings to online discussion groups where he detailed his 141 00:07:48,600 --> 00:07:52,240 Speaker 1: plans for the assault and his racist motivation. It prompted 142 00:07:52,240 --> 00:07:55,440 Speaker 1: New York Governor Kathy Hokel to sign an executive order 143 00:07:55,480 --> 00:07:58,679 Speaker 1: to create a Domestic Terrobrism Unit to address the rise 144 00:07:58,760 --> 00:08:03,000 Speaker 1: in home grown extremism. Hocal says, among other things, that 145 00:08:03,040 --> 00:08:07,120 Speaker 1: will alert authorities to anyone who could become violent, requiring 146 00:08:07,880 --> 00:08:11,440 Speaker 1: the state police to file an extreme risk order of 147 00:08:11,440 --> 00:08:14,800 Speaker 1: protection under New York's Red Flag Law when they believe 148 00:08:14,840 --> 00:08:18,600 Speaker 1: that an individual is a threat to himself, herself or 149 00:08:18,640 --> 00:08:23,720 Speaker 1: others previously current law, it's an option to do so. 150 00:08:24,560 --> 00:08:27,520 Speaker 1: According to Governor Hoco, let Buffalo be the city where 151 00:08:27,520 --> 00:08:30,880 Speaker 1: people said enough is enough. Meanwhile, the US House pass 152 00:08:31,000 --> 00:08:34,680 Speaker 1: legislation last night that would bolster federal resources to prevent 153 00:08:34,760 --> 00:08:39,560 Speaker 1: domestic terrorism in response to the Buffalo shooting. Coronavirus variants 154 00:08:39,559 --> 00:08:43,040 Speaker 1: are spreading in the US and worldwide. At the White House, 155 00:08:43,080 --> 00:08:48,320 Speaker 1: COVID Response Team briefing, CDC Director Dr Rochelle Wilenski urging 156 00:08:48,400 --> 00:08:52,560 Speaker 1: new precautions in areas where community levels are high, everyone 157 00:08:52,679 --> 00:08:55,520 Speaker 1: should be using prevention measures and wearing a mask in 158 00:08:55,559 --> 00:08:58,960 Speaker 1: public indoor settings. Dr Wilensky says there is an uptick 159 00:08:59,000 --> 00:09:03,000 Speaker 1: in COVID deaths two d Day, New York Mayor Eric 160 00:09:03,040 --> 00:09:05,720 Speaker 1: Adams said he has no plans to reinstate a mask 161 00:09:05,800 --> 00:09:09,160 Speaker 1: mandate in public schools, even after health officials this week 162 00:09:09,280 --> 00:09:12,160 Speaker 1: raised the city's COVID alert level to high. During the 163 00:09:12,160 --> 00:09:15,199 Speaker 1: news conference, Adams says, we are not allowing COVID to 164 00:09:15,320 --> 00:09:19,920 Speaker 1: outsmart us, and so I'm just really impressed with how 165 00:09:20,280 --> 00:09:24,000 Speaker 1: we are operating as a city. Various are going to 166 00:09:24,040 --> 00:09:27,160 Speaker 1: continue to come many or. Adams went on to say, 167 00:09:27,240 --> 00:09:30,880 Speaker 1: we're staying prepared and not panicking. The federal government is 168 00:09:30,920 --> 00:09:34,000 Speaker 1: warning law enforcement agencies around the nation of the increased 169 00:09:34,040 --> 00:09:37,840 Speaker 1: potential for extremist violence after the League of a draft 170 00:09:37,960 --> 00:09:42,160 Speaker 1: Supreme Court opinion striking down the constitutional right to an abortion. 171 00:09:42,559 --> 00:09:45,400 Speaker 1: The U. S. Marshals Service has the Supreme Court justices 172 00:09:45,640 --> 00:09:48,960 Speaker 1: under twenty four hour security. Global News twenty four hours 173 00:09:48,960 --> 00:09:51,760 Speaker 1: a day on air and on Bloomberg Quick Tank, powered 174 00:09:51,760 --> 00:09:54,360 Speaker 1: by more than twenty seven hundred journalists and analysts more 175 00:09:54,400 --> 00:09:58,280 Speaker 1: than a hundred twenty countries. Michael Barr and this is Bloomberg, John, Michael, 176 00:09:58,280 --> 00:10:04,400 Speaker 1: thank you. He had a fine ten on Wall Street. 177 00:10:04,440 --> 00:10:07,200 Speaker 1: Time down for the Bloomberg Sports Update. And good morning, 178 00:10:07,280 --> 00:10:09,680 Speaker 1: John Stash, Good morning John. The Rangers. You know all 179 00:10:09,720 --> 00:10:12,840 Speaker 1: about losing a series opener and overtime. It happened against Pittsburgh. 180 00:10:12,840 --> 00:10:14,920 Speaker 1: That was triple overtime at the Garden. This one was 181 00:10:14,960 --> 00:10:17,199 Speaker 1: in a Raleigh and it ended just three minutes in 182 00:10:21,160 --> 00:10:36,880 Speaker 1: the Smith get through calf drew the cmc ID they 183 00:10:36,880 --> 00:10:38,640 Speaker 1: call the Rangers for most of the night at a 184 00:10:38,720 --> 00:10:40,959 Speaker 1: one nothing lead on a Philip Hido goal, where they 185 00:10:40,960 --> 00:10:44,000 Speaker 1: failed to score again and Carolina dominated the third period. 186 00:10:44,000 --> 00:10:46,720 Speaker 1: They had a breakaway shot go off the crossbar, another 187 00:10:46,760 --> 00:10:49,560 Speaker 1: shot caramed off the post. Was under three minutes to go. 188 00:10:49,679 --> 00:10:52,959 Speaker 1: Sebastian Ajo scored the tying goal. Cole's game winner actually 189 00:10:52,960 --> 00:10:55,640 Speaker 1: winning off the stick of Ranger defenseman Ryan Lindry. What 190 00:10:55,760 --> 00:10:58,920 Speaker 1: a wild start to the Battle of Alberta. Calgary led 191 00:10:58,920 --> 00:11:01,079 Speaker 1: five to one, Edmonton came back to tie the game 192 00:11:01,120 --> 00:11:04,360 Speaker 1: at six. The Flames won nine to six. NBA West 193 00:11:04,360 --> 00:11:07,080 Speaker 1: Finals Game one, Golden State blew out Dallas by five. 194 00:11:07,360 --> 00:11:09,640 Speaker 1: Yankees won again in Baltimore three runs in the first 195 00:11:09,640 --> 00:11:11,559 Speaker 1: any of They didn't score again, but one three to two. 196 00:11:11,640 --> 00:11:14,400 Speaker 1: Is Derek Cole went seven inns and Clay Holmes the 197 00:11:14,520 --> 00:11:18,680 Speaker 1: last two. Holmes is now thrown almost twenty consecutive scoreless 198 00:11:18,679 --> 00:11:20,559 Speaker 1: in inns and the Yankster for the four games suite. 199 00:11:20,840 --> 00:11:23,320 Speaker 1: This afternoon, a City Field Let's pulled away after four 200 00:11:23,400 --> 00:11:25,560 Speaker 1: runs in the fifth inning five more in the eighth, 201 00:11:25,559 --> 00:11:28,360 Speaker 1: including the Peterlanzo three run homer. Mets beat the Cardinals 202 00:11:28,400 --> 00:11:30,640 Speaker 1: eleven to four. Max jers Are improved to five and 203 00:11:30,640 --> 00:11:32,840 Speaker 1: one took himself out of the game sixth inning with 204 00:11:33,240 --> 00:11:35,840 Speaker 1: discomfort and his left side headed for an m r I, 205 00:11:35,880 --> 00:11:39,400 Speaker 1: but Jergan said he doubts it's anything serious. PG Championship 206 00:11:39,400 --> 00:11:42,720 Speaker 1: against this morning in Tulsa. Tiger Woods is an early teatime. 207 00:11:43,080 --> 00:11:46,040 Speaker 1: John Stasu were Bloomberg Sports. John all Right, John, thanks 208 00:11:46,040 --> 00:11:49,440 Speaker 1: a lot after yesterday sell off. Futures right now indicates 209 00:11:49,559 --> 00:11:52,280 Speaker 1: a lower open of Wall Street this morning. DALN futures 210 00:11:52,559 --> 00:11:56,720 Speaker 1: four hundred points, Flower smp EMNY futures, they're down fifty 211 00:11:56,720 --> 00:11:59,680 Speaker 1: six points. At the damsday futures down one hundred and 212 00:12:00,120 --> 00:12:06,719 Speaker 1: the points. You're listening to the Bloomberg day Break and 213 00:12:06,840 --> 00:12:10,120 Speaker 1: just ahead lessons from the carnage of yesterday's sell off. 214 00:12:10,160 --> 00:12:14,280 Speaker 1: We'll speak with Michael Gusson from CMC Markets right here 215 00:12:14,320 --> 00:12:24,560 Speaker 1: on Bloomberg day Break, Markets, headlines and breaking news twenty 216 00:12:24,559 --> 00:12:27,439 Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg 217 00:12:27,440 --> 00:12:30,400 Speaker 1: Business at and at Bloomberg Quick Tape. This is a 218 00:12:30,440 --> 00:12:40,160 Speaker 1: Bloomberg Business lash, and I'm Karen Moscow and European shares 219 00:12:40,200 --> 00:12:43,120 Speaker 1: are tumbling and US knock index futures are signaling that 220 00:12:43,160 --> 00:12:45,960 Speaker 1: more losses are ahead and the growing concern that high 221 00:12:46,000 --> 00:12:49,160 Speaker 1: inflation is cutting into corporate performance. We checked the markets 222 00:12:49,160 --> 00:12:51,920 Speaker 1: every fifteen minutes throughout the trading day on Bloomberg guess 223 00:12:51,960 --> 00:12:54,880 Speaker 1: and P futures down about sixty points this morning down 224 00:12:54,880 --> 00:12:57,559 Speaker 1: futures down four hundred thirty one and nasday features down 225 00:12:57,600 --> 00:13:00,360 Speaker 1: two d one. The decks in Germany's down more than 226 00:13:00,400 --> 00:13:02,920 Speaker 1: two percent. The ten year treasury of twelve thirty seconds 227 00:13:03,000 --> 00:13:05,000 Speaker 1: yield two point eight three percent, a yield on a 228 00:13:05,080 --> 00:13:08,439 Speaker 1: two year two point six two percent. Nimex scret oil 229 00:13:08,559 --> 00:13:10,880 Speaker 1: is down one point six percent out of dollars seventy 230 00:13:10,880 --> 00:13:13,280 Speaker 1: four and a hundred seven dollars eighty five cents at barrel. 231 00:13:13,520 --> 00:13:16,160 Speaker 1: Comex schooled that four tenths percent or seven dollars thirty 232 00:13:16,200 --> 00:13:19,319 Speaker 1: cents at eighteen twenty nine seventy announced, the Euro one 233 00:13:19,320 --> 00:13:21,559 Speaker 1: point oh four and nine three against the dollar, British 234 00:13:21,559 --> 00:13:23,920 Speaker 1: pound one point to three eight five the end at 235 00:13:23,920 --> 00:13:27,080 Speaker 1: one twenty seven point eight nine, and Bitcoin this morning 236 00:13:27,120 --> 00:13:30,480 Speaker 1: is down eight tenths percent at twenty eight thousand, nine 237 00:13:30,520 --> 00:13:33,480 Speaker 1: hundred sixty dollars. Today, we are watching for report on 238 00:13:33,559 --> 00:13:36,240 Speaker 1: initial jobless claims at at eight thirty walls Street time 239 00:13:36,320 --> 00:13:38,880 Speaker 1: that's the weekly report, and attend its existing home sales 240 00:13:38,880 --> 00:13:41,719 Speaker 1: and leading indicators, and Coals is among companies schedule to 241 00:13:41,800 --> 00:13:44,960 Speaker 1: report earnings today that's a Bloomberg Business Flash. Now here's 242 00:13:44,960 --> 00:13:47,600 Speaker 1: Michael Barr with more on what's going on around the world. Munchael, 243 00:13:47,600 --> 00:13:51,800 Speaker 1: good morning, Good morning to you, Karen. The CDC's Independent 244 00:13:51,840 --> 00:13:55,520 Speaker 1: Advisory Committee meets today to discuss whether to authorize Fiser's 245 00:13:55,600 --> 00:13:59,520 Speaker 1: COVID nineteen boost is shot for children ages five to eleven. 246 00:14:00,000 --> 00:14:03,240 Speaker 1: It's happening as the nation's COVID resurgence reaches its highest 247 00:14:03,280 --> 00:14:07,040 Speaker 1: point since mid February. The suspected eighteen year old gunman 248 00:14:07,080 --> 00:14:10,640 Speaker 1: in the deadly Buffalo supermarket shooting has a court appearance today. 249 00:14:10,920 --> 00:14:15,160 Speaker 1: Authorities continued to investigate the possibility of a hate crime 250 00:14:15,400 --> 00:14:19,720 Speaker 1: or terrorism charges against Peyton Gendron. In the NHL Playoffs, 251 00:14:19,720 --> 00:14:22,120 Speaker 1: the Rangers lost to the Hurricanes to one in overtime 252 00:14:22,120 --> 00:14:25,360 Speaker 1: in game one of their series. NBA Playoffs, the Warriors 253 00:14:25,560 --> 00:14:29,600 Speaker 1: one game one of their Western Finals over the Mavericks. Baseball, 254 00:14:29,640 --> 00:14:32,400 Speaker 1: the Yankees beat the Orioles three to the Mets, Red Sox, 255 00:14:32,520 --> 00:14:35,400 Speaker 1: Nationals one the Giants, and a has lost. Global News 256 00:14:35,440 --> 00:14:38,600 Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake, 257 00:14:38,840 --> 00:14:41,640 Speaker 1: powered by more than twenty seven hundred journalists and analysts, 258 00:14:41,680 --> 00:14:44,080 Speaker 1: more than a hundred twenty countries. Michael Barr and this 259 00:14:44,240 --> 00:14:46,560 Speaker 1: is Bloomberg. John. All right, Michael, thank you. It is 260 00:14:46,600 --> 00:14:49,520 Speaker 1: now five twenty on Wall Street. We are live from 261 00:14:49,520 --> 00:14:53,400 Speaker 1: the Bloomberg Interact of Brokers Studios. This is Bloomberg Daybreak, 262 00:14:53,840 --> 00:14:56,680 Speaker 1: following yesterday's four percent sell off for the n S 263 00:14:56,760 --> 00:14:59,120 Speaker 1: and P five hundred. Let's try to get you set 264 00:14:59,160 --> 00:15:01,120 Speaker 1: up for the trading. Are your heead. We are joined 265 00:15:01,120 --> 00:15:05,600 Speaker 1: now by Michael Houston, the chief market analyst at CMC Markets. Michael, 266 00:15:05,600 --> 00:15:07,920 Speaker 1: are big part of the latest market narrative seems to 267 00:15:07,960 --> 00:15:13,120 Speaker 1: be margin compression, high cost and eating into profits. Is 268 00:15:13,160 --> 00:15:17,000 Speaker 1: this the correct takeaway? I think yeah, Good morning John. 269 00:15:17,040 --> 00:15:20,120 Speaker 1: I think that is part of the story. Certainly, those 270 00:15:20,160 --> 00:15:24,320 Speaker 1: warnings from Target and Walmart. I think a focus the 271 00:15:24,360 --> 00:15:30,680 Speaker 1: market's attention on the fact that costs are increasing, inventories 272 00:15:31,200 --> 00:15:33,720 Speaker 1: are a term relatively high levels. But also I think 273 00:15:33,720 --> 00:15:39,440 Speaker 1: we've seen a significant shift from FEDE officials, particularly in 274 00:15:39,560 --> 00:15:42,720 Speaker 1: light of the recent inflation numbers. Is starting to look 275 00:15:42,760 --> 00:15:47,280 Speaker 1: increasingly sticky. How appears to be softening the market up 276 00:15:47,920 --> 00:15:52,760 Speaker 1: for potentially two more fifty basis point great hikes in 277 00:15:52,880 --> 00:15:56,160 Speaker 1: June and July. And I think that's a that's a 278 00:15:56,320 --> 00:15:58,720 Speaker 1: contrast to what we were sort of being led to 279 00:15:58,760 --> 00:16:02,080 Speaker 1: believe at the asked FED meeting, where we were talking 280 00:16:02,120 --> 00:16:06,840 Speaker 1: about fifty in May, fifty in June, and then possibly thereafter. 281 00:16:07,480 --> 00:16:09,800 Speaker 1: So I think we're getting a much more hawkish pivot 282 00:16:10,440 --> 00:16:16,200 Speaker 1: from the Fed. We're seeing inflationary pressures continuing to remain sticky. Yesterday, 283 00:16:16,320 --> 00:16:19,120 Speaker 1: UK inflation searched to a record high on the CPI measure. 284 00:16:19,560 --> 00:16:23,280 Speaker 1: Canadian CPI jumped to a thirty two year I and 285 00:16:23,360 --> 00:16:26,720 Speaker 1: I think it's becoming much more apparent the prices will 286 00:16:26,720 --> 00:16:30,160 Speaker 1: stay elevated for a lot longer than was originally thought 287 00:16:30,200 --> 00:16:32,080 Speaker 1: at the beginning of this year, and that will have 288 00:16:32,280 --> 00:16:37,400 Speaker 1: significant effects on consumption patterns and potentially growth. And I 289 00:16:37,400 --> 00:16:40,520 Speaker 1: think that's why you're seeing US treasury yields come back 290 00:16:40,520 --> 00:16:42,600 Speaker 1: off that three percent level. I think there is a 291 00:16:42,640 --> 00:16:45,480 Speaker 1: concern on my part looking at that yield chart, that 292 00:16:45,560 --> 00:16:47,640 Speaker 1: we've topped out on yields, and it's not because the 293 00:16:47,640 --> 00:16:50,400 Speaker 1: Fed is going to soften up on rape rises. I 294 00:16:50,480 --> 00:16:52,840 Speaker 1: think it's growth is going to slow down as a 295 00:16:52,880 --> 00:16:56,400 Speaker 1: consequence of a FED that thinks it's got enough wriggle 296 00:16:56,840 --> 00:16:59,760 Speaker 1: briggle room on the unemployment level to push a lot 297 00:16:59,800 --> 00:17:03,440 Speaker 1: harder than we thought that it would be doing five 298 00:17:03,520 --> 00:17:06,640 Speaker 1: or six weeks ago. Is the cure for the higher prices? 299 00:17:06,840 --> 00:17:09,280 Speaker 1: Higher prices are we're going to see a shift away 300 00:17:09,280 --> 00:17:13,679 Speaker 1: from spending on stuff, just spending on things like services 301 00:17:13,720 --> 00:17:16,480 Speaker 1: at this point. And does that do the Fed's job 302 00:17:16,600 --> 00:17:19,080 Speaker 1: for it? I think there's going to be an element 303 00:17:19,080 --> 00:17:23,040 Speaker 1: of demand destruction. I think that's what you're essentially laying 304 00:17:23,040 --> 00:17:25,640 Speaker 1: the case out for, and we've certainly seen some evidence 305 00:17:25,680 --> 00:17:28,400 Speaker 1: of that in the numbers that we saw from Target 306 00:17:28,480 --> 00:17:31,800 Speaker 1: and Walmart. The thought off of the higher margin stuff, 307 00:17:32,240 --> 00:17:35,920 Speaker 1: it's tending to get left on the shelves, and consumers 308 00:17:36,160 --> 00:17:42,080 Speaker 1: are putting food and energy and essentials quite rightly, in 309 00:17:42,119 --> 00:17:45,399 Speaker 1: my view, on the more essential stuff, and that is 310 00:17:45,440 --> 00:17:49,400 Speaker 1: going to evote the disposable income. I think one one 311 00:17:49,440 --> 00:17:52,960 Speaker 1: particular item that did catch my eye and has caught 312 00:17:52,960 --> 00:17:54,840 Speaker 1: my eye in the last two months is even though 313 00:17:54,840 --> 00:17:58,600 Speaker 1: the US WE TELL sales have been fairly resilient, if 314 00:17:58,640 --> 00:18:02,240 Speaker 1: you actually look at FED cans humor credit for February 315 00:18:02,240 --> 00:18:05,560 Speaker 1: and March, that has sought. Now I don't see how 316 00:18:05,640 --> 00:18:09,560 Speaker 1: that is any way sustainable in a rising interest rate environment. 317 00:18:09,600 --> 00:18:10,960 Speaker 1: And I think that for me is a bit of 318 00:18:11,000 --> 00:18:14,320 Speaker 1: a warning sign for retail spending over the course of 319 00:18:14,359 --> 00:18:17,000 Speaker 1: the next two or three months. Michael, is it fools 320 00:18:17,040 --> 00:18:20,320 Speaker 1: are and to buy the depths? I think in these 321 00:18:20,359 --> 00:18:22,800 Speaker 1: sorts of levels it is yes. I think much will 322 00:18:22,840 --> 00:18:25,879 Speaker 1: depend on where we or where the SMP and the 323 00:18:25,960 --> 00:18:29,879 Speaker 1: NASDAK react. At last week's lows were just above them 324 00:18:29,920 --> 00:18:32,840 Speaker 1: in the pre market eleven thousand, seven hundred and six 325 00:18:32,880 --> 00:18:36,000 Speaker 1: on the NASDAK, three thousand, eight hundred and forty on 326 00:18:36,080 --> 00:18:38,880 Speaker 1: the SMP. I still think we've got downside in this, John, 327 00:18:39,119 --> 00:18:40,560 Speaker 1: I think we can go to ten and a half 328 00:18:40,600 --> 00:18:42,560 Speaker 1: thousand on the NASDAC, and I think we can go 329 00:18:42,640 --> 00:18:44,560 Speaker 1: to three and a half thousand on the SMP. Five 330 00:18:45,400 --> 00:18:48,320 Speaker 1: you want to gauge for me the risk of, well, 331 00:18:48,440 --> 00:18:51,879 Speaker 1: let's turn off with stagflation and then move on to recession. 332 00:18:52,640 --> 00:18:55,240 Speaker 1: I think we're already there in the stagflation. I think 333 00:18:55,280 --> 00:18:58,720 Speaker 1: the big question is, you know how we avoid a recession? 334 00:18:58,840 --> 00:19:01,879 Speaker 1: And I think the FED is really going to have 335 00:19:01,960 --> 00:19:06,160 Speaker 1: an incredibly hard job to stop the US economy falling 336 00:19:06,200 --> 00:19:10,560 Speaker 1: into at least subpar or stagnation when it comes towards 337 00:19:10,600 --> 00:19:13,040 Speaker 1: the end of this year, we've got us first call 338 00:19:13,080 --> 00:19:16,280 Speaker 1: to GDP that was down one four percent or contracted 339 00:19:16,320 --> 00:19:19,080 Speaker 1: one point four per The bigger question for me is 340 00:19:19,200 --> 00:19:21,440 Speaker 1: for Q two is whether or not we managed to 341 00:19:21,480 --> 00:19:24,640 Speaker 1: wake out any kind of growth at all. I mean, 342 00:19:24,720 --> 00:19:27,600 Speaker 1: it's a difficult task ahead for the FED with any 343 00:19:27,600 --> 00:19:31,280 Speaker 1: sort of saft landing, and is that I think it's impossible. 344 00:19:31,320 --> 00:19:33,679 Speaker 1: I think it's impossible. I think if the Fed is 345 00:19:33,720 --> 00:19:37,520 Speaker 1: determined to squeeze inflation out of the system, the consequences 346 00:19:37,600 --> 00:19:40,760 Speaker 1: of that will be higher unemployment. Now the Fed seems 347 00:19:40,800 --> 00:19:43,600 Speaker 1: to think it's got wriggle room because there's eleven million 348 00:19:43,680 --> 00:19:46,720 Speaker 1: vacancies and the unemployment rate is at multi year lows. 349 00:19:46,920 --> 00:19:50,560 Speaker 1: The bigger question for me is how quickly those vacancies disappear, 350 00:19:50,960 --> 00:19:53,800 Speaker 1: and then how far the unemployment rate is allowed to 351 00:19:53,800 --> 00:19:56,679 Speaker 1: go before the Fed decides is going to have to 352 00:19:56,680 --> 00:20:00,000 Speaker 1: start dialing back. Michael Hughes and the chief market analyze 353 00:20:00,040 --> 00:20:03,040 Speaker 1: to the the CMC markets as always, thank you very much. 354 00:20:03,400 --> 00:20:08,320 Speaker 1: This is Bloomberg. And after yesterday's four percents sell off 355 00:20:08,320 --> 00:20:11,480 Speaker 1: for the SMP, five hundred futures now in the rad down, 356 00:20:11,480 --> 00:20:14,919 Speaker 1: FATS down four hundred thirty four, SMP five hundred futures 357 00:20:14,960 --> 00:20:18,879 Speaker 1: down fifty nine nastack theatres two hundred three points lower. 358 00:20:22,160 --> 00:20:26,720 Speaker 1: Broadcasting live from the Bloomberg Interactive Broker Studio in New York, 359 00:20:26,800 --> 00:20:30,760 Speaker 1: Bloomberg E Living Freedom to Washington, d C, Bloomberg one 360 00:20:30,880 --> 00:20:34,119 Speaker 1: to Boston, Bloomberg one O six one to San Francisco, 361 00:20:34,200 --> 00:20:37,640 Speaker 1: Bloomberg nine sixty to the Country, Sirius XM to one 362 00:20:37,720 --> 00:20:41,440 Speaker 1: ninet and around the globe the Bloomberg Business and Bloomberg 363 00:20:41,520 --> 00:20:50,640 Speaker 1: Radio dot Com. This is Bloomberg Daybreak, and it's five 364 00:20:50,680 --> 00:20:53,159 Speaker 1: thirty on Wall Street. Good morning. I'm John Tucker and 365 00:20:53,200 --> 00:20:56,000 Speaker 1: I'm Karen Moscow, and we're just about four hours away 366 00:20:56,000 --> 00:20:57,959 Speaker 1: from the open of US trading. Let's get you up 367 00:20:57,960 --> 00:20:59,399 Speaker 1: to date on the news you need to know. At 368 00:20:59,400 --> 00:21:02,600 Speaker 1: this hour, US future is falling again. That's as stocks 369 00:21:02,600 --> 00:21:05,080 Speaker 1: come off their worst day in nearly two years. Week 370 00:21:05,160 --> 00:21:08,840 Speaker 1: retail earnings are stoking concerns about the consumer sector. Mark 371 00:21:08,880 --> 00:21:12,040 Speaker 1: hun Moore is a macro strategist for Bloomberg News. The 372 00:21:12,160 --> 00:21:15,480 Speaker 1: weakness for the consumer sector was related, in my point 373 00:21:15,480 --> 00:21:17,360 Speaker 1: of view, and it makes sense that it's finally come. 374 00:21:17,400 --> 00:21:19,520 Speaker 1: We kind of seem to be denying reality there the 375 00:21:19,600 --> 00:21:22,720 Speaker 1: bit that I'm really confused about is how fragile is 376 00:21:22,760 --> 00:21:25,520 Speaker 1: the consumer overall. Because our session is definitely coming, by 377 00:21:25,520 --> 00:21:27,440 Speaker 1: the way, there's no chance of avoiding a hard landing, 378 00:21:27,480 --> 00:21:29,560 Speaker 1: so we're just talking about when it comes. And Bloomberg 379 00:21:29,560 --> 00:21:33,160 Speaker 1: macro strategist Mark hud Moore says the most optimistic view 380 00:21:33,320 --> 00:21:36,119 Speaker 1: has the US entering recession next year. So where do 381 00:21:36,280 --> 00:21:39,119 Speaker 1: investors put their money? There's no good answer. According to 382 00:21:39,200 --> 00:21:42,919 Speaker 1: David D's he's senior portfolio strategist of Pepack Private Wealth. 383 00:21:43,280 --> 00:21:47,040 Speaker 1: The alternatives like Bitcoin of crash show there's only cash, 384 00:21:47,400 --> 00:21:50,600 Speaker 1: but you know, with inflation close to eight percent, cash 385 00:21:50,640 --> 00:21:52,560 Speaker 1: doesn't look very good for the long haul either. So 386 00:21:52,680 --> 00:21:55,160 Speaker 1: it's a real hand reading time for investors. P Banks. 387 00:21:55,240 --> 00:21:58,680 Speaker 1: Davids was against on Bloomberg Business Week heard Weekday antonows 388 00:21:58,760 --> 00:22:01,600 Speaker 1: from two to five on bloom Burg Radio. SP five 389 00:22:01,680 --> 00:22:05,800 Speaker 1: hundred fell four percent yesterday this morning and SMP futures 390 00:22:05,840 --> 00:22:09,440 Speaker 1: down sixty one points and the latest casualty of the 391 00:22:09,560 --> 00:22:13,760 Speaker 1: sell off. John Melvin Capital, Gabe Plotkins Hedge Fund is 392 00:22:13,760 --> 00:22:16,040 Speaker 1: calling it quit and Bloomberg's We Need a Young joins 393 00:22:16,119 --> 00:22:18,680 Speaker 1: us live at the very latest. Good Morning Radio, Good Morning, 394 00:22:18,760 --> 00:22:21,880 Speaker 1: Karen Gabe Plotkin is shutting down his seven point eight 395 00:22:21,920 --> 00:22:25,600 Speaker 1: billion dollar hedge fund. Melvin Capital Management was the most 396 00:22:25,640 --> 00:22:29,520 Speaker 1: prominent victim of last year's mean stock frenzy, losing billions. 397 00:22:29,800 --> 00:22:33,879 Speaker 1: The fund posted oftent lost that month alone, and since 398 00:22:33,920 --> 00:22:36,400 Speaker 1: then Plotkin has been trying to claw his way back 399 00:22:36,440 --> 00:22:39,840 Speaker 1: with funding from some of Wall Street's biggest players. Now 400 00:22:39,840 --> 00:22:42,600 Speaker 1: the fund showed some promise last year, but a plan 401 00:22:42,720 --> 00:22:47,320 Speaker 1: to reimpose fees frustrated backers and failed. Now Melvin Capital 402 00:22:47,359 --> 00:22:51,359 Speaker 1: is outlining plans to eliminate fees and return investor cash. 403 00:22:51,960 --> 00:22:54,199 Speaker 1: Live in New York, I'm rened a young Bloomberg day 404 00:22:54,200 --> 00:22:58,200 Speaker 1: breaking thanks earnings from Cisco also weighing on sentiment this morning, 405 00:22:58,480 --> 00:23:01,520 Speaker 1: the Taket company warns that lockdowns in China and supply 406 00:23:01,640 --> 00:23:05,679 Speaker 1: chain disruptions good whiteound sales growth this quarter. Cisco shares 407 00:23:05,720 --> 00:23:09,000 Speaker 1: down more than ten percent in early trading, and Johnson. 408 00:23:09,000 --> 00:23:11,800 Speaker 1: Big names on Wall Street are slashing their forecast. Economists 409 00:23:11,800 --> 00:23:14,359 Speaker 1: at JP Morgan are cutting their US growth outlook for 410 00:23:14,400 --> 00:23:17,560 Speaker 1: the year at two point four percent. They're also lowering 411 00:23:17,600 --> 00:23:20,320 Speaker 1: forecast for next year. At the same time, well S 412 00:23:20,359 --> 00:23:22,159 Speaker 1: Fargo is cutting its view on the S and p. 413 00:23:22,320 --> 00:23:25,160 Speaker 1: Five hundred. It's here on target now hovers about forty 414 00:23:25,200 --> 00:23:29,520 Speaker 1: two hundred. Will Spargo also sees a mild recession as 415 00:23:29,560 --> 00:23:32,359 Speaker 1: its base case. View straight ahead, your latest local headlines, 416 00:23:32,440 --> 00:23:39,040 Speaker 1: plus a check of sports. This is Bloomberg. Thanks Karen. 417 00:23:39,080 --> 00:23:41,240 Speaker 1: Find thirty three on wall Streets. Time to bring in 418 00:23:41,280 --> 00:23:43,680 Speaker 1: Blanco bar with Bora. What else is going on in 419 00:23:43,760 --> 00:23:46,600 Speaker 1: New York and around the world? John, Thank you, sir. 420 00:23:46,720 --> 00:23:49,320 Speaker 1: The white, eighteen year old gunman accused of killing ten 421 00:23:49,400 --> 00:23:52,359 Speaker 1: black people at a Buffalo supermarket is scheduled to appear 422 00:23:52,400 --> 00:23:56,199 Speaker 1: in court today. Authorities continue to investigate the possibility of 423 00:23:56,400 --> 00:24:00,760 Speaker 1: hate crime or terrorism charges against Peyton Gendren. New York 424 00:24:00,760 --> 00:24:04,600 Speaker 1: Governor Kathy Local authorized the state's attorney general to investigate 425 00:24:04,680 --> 00:24:08,720 Speaker 1: social media platforms used by Gendron to determine if they 426 00:24:08,760 --> 00:24:13,120 Speaker 1: were liable for providing a platform to plan and promote violence. 427 00:24:13,440 --> 00:24:17,080 Speaker 1: Locals said social media companies have to take responsibility for 428 00:24:17,240 --> 00:24:21,200 Speaker 1: incendiary content on their platforms. That's the intersection of two 429 00:24:21,240 --> 00:24:26,280 Speaker 1: crises right now. They're unfolding in our country, the mainstreaming 430 00:24:26,320 --> 00:24:32,560 Speaker 1: of hate speech, of racism, nationalism, white supremacy, and the 431 00:24:32,680 --> 00:24:38,439 Speaker 1: easy access to military style weapons and magazines. Governor Hokill 432 00:24:38,480 --> 00:24:41,600 Speaker 1: also says she signed an executive order that required state 433 00:24:41,640 --> 00:24:45,040 Speaker 1: police to flag people who might be deemed the danger 434 00:24:45,080 --> 00:24:48,080 Speaker 1: to themselves or others. New York Mayor Eric Adam said 435 00:24:48,119 --> 00:24:50,639 Speaker 1: he has no plans to reinstate a mask mandated in 436 00:24:50,680 --> 00:24:53,960 Speaker 1: public schools, even after health officials this week raised the 437 00:24:53,960 --> 00:24:57,720 Speaker 1: city's COVID alert level too high and advised wearing face 438 00:24:57,800 --> 00:25:02,400 Speaker 1: coverings indoors, we are and extremely strategic, and we are 439 00:25:02,560 --> 00:25:05,919 Speaker 1: fighting COVID with not only the twobs that we didn't 440 00:25:05,920 --> 00:25:11,000 Speaker 1: have before, but we're also fighting COVID using the intelligence 441 00:25:11,040 --> 00:25:14,320 Speaker 1: we need to win. Mayor Adams says we're staying prepared 442 00:25:14,359 --> 00:25:18,280 Speaker 1: and not panicking. President Biden's top health official tested positive 443 00:25:18,280 --> 00:25:20,600 Speaker 1: for COVID nineteen, the latest member of his cabinet to 444 00:25:20,640 --> 00:25:24,080 Speaker 1: be infected with the virus. According to a spokeswoman US 445 00:25:24,119 --> 00:25:27,399 Speaker 1: Health Secretary, However, your b Sarah has mild symptoms and 446 00:25:27,560 --> 00:25:31,680 Speaker 1: is fully vaccinated and boosted. The Justice Department announced US 447 00:25:31,720 --> 00:25:36,320 Speaker 1: Supreme Court justices will receive around the clock security at home, 448 00:25:36,359 --> 00:25:40,679 Speaker 1: among other protections. It follows the leaked draft opinion advocating 449 00:25:40,760 --> 00:25:44,359 Speaker 1: overturning abortion rights. Global News twenty four hours a day 450 00:25:44,440 --> 00:25:47,400 Speaker 1: on air and on Bloomberg Quicktake, powered by more than 451 00:25:47,840 --> 00:25:49,960 Speaker 1: seven hundred journalists and analysts, are more than a hundred 452 00:25:50,000 --> 00:25:53,240 Speaker 1: twenty countries. I'm Michael barn This is Bloomberg, John, Michael, 453 00:25:53,280 --> 00:26:00,320 Speaker 1: thank you, he's fine. Thirty times on Wall Street. Handle. 454 00:26:00,320 --> 00:26:03,800 Speaker 1: That's type for the Bloomberg Sports Update. Here's thanks John. 455 00:26:03,840 --> 00:26:06,400 Speaker 1: The Rangers in the first round one a series where 456 00:26:06,400 --> 00:26:08,960 Speaker 1: they never led Pittsburgh until the overtime goal in game seven, 457 00:26:08,960 --> 00:26:11,359 Speaker 1: now round two. Looking at take Game one at Carolina, 458 00:26:11,600 --> 00:26:14,600 Speaker 1: Philip Hadals scored seven minutes and it stayed one nothing 459 00:26:14,680 --> 00:26:18,119 Speaker 1: for the next fifty minutes. The Hurricanes were out playing 460 00:26:18,119 --> 00:26:20,359 Speaker 1: in the first two periods, but they dominated the third. 461 00:26:20,400 --> 00:26:23,560 Speaker 1: They tied the game on a Sebastianajo goal with two 462 00:26:23,560 --> 00:26:26,879 Speaker 1: twenty three remaining, and then three twelve and overtime. Ian 463 00:26:27,040 --> 00:26:29,760 Speaker 1: Coles scored on rebound. The Canes won to the one. 464 00:26:29,800 --> 00:26:32,640 Speaker 1: They're now five and now at home. There's postseason. Calgary 465 00:26:32,680 --> 00:26:34,960 Speaker 1: won a wild Game one with Edmonton nine to six. 466 00:26:35,080 --> 00:26:38,360 Speaker 1: NBA Golden State prop out Dallas by the Mets. Great 467 00:26:38,400 --> 00:26:40,680 Speaker 1: start has been without the still injour Jacob de Graham, 468 00:26:40,720 --> 00:26:42,920 Speaker 1: and now there's concerned about Max Scherz, and he got 469 00:26:42,920 --> 00:26:44,800 Speaker 1: the winned City field and proved to five and one. 470 00:26:45,080 --> 00:26:47,680 Speaker 1: Mets met the Cardinals eleven to four, but Scherzer took 471 00:26:47,760 --> 00:26:51,359 Speaker 1: himself out sixth inning discomfort in his left side. I 472 00:26:51,359 --> 00:26:54,679 Speaker 1: don't think this is a major string, um, you know, 473 00:26:54,760 --> 00:26:56,320 Speaker 1: Like I said, that was kind of tightened and all 474 00:26:56,320 --> 00:26:59,960 Speaker 1: of a sudden when you know, but I don't feel 475 00:27:00,040 --> 00:27:03,680 Speaker 1: guy really ripped it, you know, you know, kind of 476 00:27:03,720 --> 00:27:06,200 Speaker 1: said and I felt like it just got got worse. 477 00:27:06,200 --> 00:27:08,520 Speaker 1: Sers will have an m R I today. Yankees made 478 00:27:08,520 --> 00:27:11,000 Speaker 1: a one of the last twenty four three to win 479 00:27:11,040 --> 00:27:12,960 Speaker 1: at Baltimore, got all three runs in the first inning. 480 00:27:13,000 --> 00:27:15,800 Speaker 1: Garrett Cole got to win Clay Homes the same The 481 00:27:15,840 --> 00:27:18,359 Speaker 1: Giants with salary cap issues, had to release one of 482 00:27:18,359 --> 00:27:22,040 Speaker 1: their best players, and now they'll see cornerback James Bradberry twice. 483 00:27:22,440 --> 00:27:26,000 Speaker 1: He signed with Philadelphia PGH championship Short Hills and Tulsa 484 00:27:26,400 --> 00:27:29,400 Speaker 1: without the defending champion Phil Nicholson and bracing the Shambo 485 00:27:29,520 --> 00:27:32,359 Speaker 1: just Withdrew with an injured hand, but a Marquee three 486 00:27:32,400 --> 00:27:35,280 Speaker 1: simp teas off this morning just after nine o'clock. Jordan's speech, 487 00:27:35,560 --> 00:27:39,280 Speaker 1: Rory McElroy and Tiger Woods, John stash Ellart, Bloomberg Sports, 488 00:27:39,359 --> 00:27:42,280 Speaker 1: JOHMP thanks John seven on Wall Street and signed up 489 00:27:42,320 --> 00:27:45,280 Speaker 1: for the Tri State Business Report. For that We're joined 490 00:27:45,320 --> 00:27:49,800 Speaker 1: by Bloomberg's Ed Quarry. Amazon discriminates against pregnant women and 491 00:27:49,840 --> 00:27:53,919 Speaker 1: workers with disabilities, according to New York's Division of Human Rights. 492 00:27:54,359 --> 00:27:57,800 Speaker 1: New York wants the company deceased discriminatory conduct and pay 493 00:27:57,920 --> 00:28:01,959 Speaker 1: civil finds and penalties, and Amazon spokesperson says the company 494 00:28:02,000 --> 00:28:06,240 Speaker 1: has been cooperating with an investigation. Life sciences in New 495 00:28:06,320 --> 00:28:09,160 Speaker 1: York City are poised for growth, but some leaders say 496 00:28:09,160 --> 00:28:12,800 Speaker 1: the city needs space for startups of all sizes unless 497 00:28:12,920 --> 00:28:15,880 Speaker 1: can accommodate companies in their earlier years when they need 498 00:28:16,000 --> 00:28:19,680 Speaker 1: less space. Experts tell bisnow New York City could lose 499 00:28:19,720 --> 00:28:23,679 Speaker 1: talent arrival life science hubs. Swimming pool craze in the 500 00:28:23,720 --> 00:28:28,280 Speaker 1: Hampton's has some homeowners waiting until three for construction to begin. 501 00:28:28,920 --> 00:28:33,840 Speaker 1: Hampton's based builders and contractors are having trouble filling current contracts. 502 00:28:34,240 --> 00:28:37,600 Speaker 1: Since last October. Dealers of pool pumps around the country 503 00:28:37,800 --> 00:28:40,719 Speaker 1: have been booked well into the third quarter. At your 504 00:28:40,760 --> 00:28:43,920 Speaker 1: Bloomberg Dry State Business Report, I ed Corey, all right, thanks, 505 00:28:43,920 --> 00:28:47,240 Speaker 1: said It's five thirty eight on Wall Street. Bloomberg Radio 506 00:28:47,440 --> 00:28:49,760 Speaker 1: is on the air from San Francisco to New York, 507 00:28:49,920 --> 00:28:52,560 Speaker 1: London to Hong Kong. And let's check in now with 508 00:28:52,600 --> 00:28:55,080 Speaker 1: our global news team for some of the top stories 509 00:28:55,080 --> 00:28:58,960 Speaker 1: heard on our three hundred affiliate radio stations around the world. 510 00:29:02,200 --> 00:29:04,840 Speaker 1: I'm Steve Potask on ten Chen Wins in New York. 511 00:29:04,880 --> 00:29:07,480 Speaker 1: We're talking about how AIRB and B baby to blame 512 00:29:07,560 --> 00:29:10,480 Speaker 1: for a lack of long term apartment rentals in this city. 513 00:29:10,840 --> 00:29:14,120 Speaker 1: Corney's Anaho on CAFABI and Omaha farmers are buying up 514 00:29:14,160 --> 00:29:17,960 Speaker 1: expensive weed killer despite or in costs. Tim Gina Servetti 515 00:29:18,040 --> 00:29:20,720 Speaker 1: And for w w BBM in Chicago, I'm reporting that 516 00:29:20,800 --> 00:29:23,440 Speaker 1: the owner of British Airways has agreed to buy fifty 517 00:29:23,560 --> 00:29:26,880 Speaker 1: Boeing seven thirty seven match yet. I'm Stephen Carroll on 518 00:29:27,040 --> 00:29:29,560 Speaker 1: DAB Digital Radio in London. We've been reporting on the 519 00:29:29,640 --> 00:29:32,400 Speaker 1: G seven finance ministers meeting in Germany, where they're working 520 00:29:32,440 --> 00:29:35,360 Speaker 1: on a new financial aid packets for Ukraine. I'm Ed 521 00:29:35,400 --> 00:29:38,560 Speaker 1: Corey on w t a M in Cleveland. I'm recording 522 00:29:38,600 --> 00:29:42,000 Speaker 1: Phoenix investors paid five billion dollars for Neil of Park, 523 00:29:42,200 --> 00:29:46,160 Speaker 1: best known as the home of ge lightning and those 524 00:29:46,200 --> 00:29:48,840 Speaker 1: are some of the stories are twenty seven hund Bloomberg 525 00:29:48,920 --> 00:29:52,080 Speaker 1: journalists and analysts are working on this morning around the world. 526 00:29:52,520 --> 00:29:56,160 Speaker 1: It is five thirty five on Wall Street. The following 527 00:29:56,240 --> 00:29:59,680 Speaker 1: is an editorial from Bloomberg Opinion. To refer to worst 528 00:29:59,680 --> 00:30:02,880 Speaker 1: case climate scenario, the world may have to remove huge 529 00:30:02,960 --> 00:30:06,760 Speaker 1: quantities of carbon from the atmosphere, some twenty one five 530 00:30:06,800 --> 00:30:10,440 Speaker 1: billion tons over three decades by one estimate. Carbon removal 531 00:30:10,560 --> 00:30:14,560 Speaker 1: is costly and inefficient now, but promising new technologies provide 532 00:30:14,600 --> 00:30:18,560 Speaker 1: reason for optimism. The question is how to encourage them. 533 00:30:18,760 --> 00:30:23,160 Speaker 1: Philanthropists have long offered prizes for new carbon removal solutions, 534 00:30:23,200 --> 00:30:26,320 Speaker 1: and efforts are underway to turn stored carbon dioxide into 535 00:30:26,360 --> 00:30:30,280 Speaker 1: something economically useful. Governments should do more to help this 536 00:30:30,360 --> 00:30:35,000 Speaker 1: push succeed. Specifically, making advance market commitments could have a 537 00:30:35,040 --> 00:30:39,880 Speaker 1: major impact. A similar model worked Wonders for vaccines. In 538 00:30:39,920 --> 00:30:43,040 Speaker 1: two thousand and seven, several governments joined with the Gates 539 00:30:43,080 --> 00:30:46,960 Speaker 1: Foundation and pledged one point five billion in advanced commitments 540 00:30:46,960 --> 00:30:50,600 Speaker 1: for vaccines. By establishing a market, the effort led to 541 00:30:50,680 --> 00:30:54,320 Speaker 1: three new vaccines and saved some seven hundred thousand lives. 542 00:30:54,560 --> 00:30:58,040 Speaker 1: The carbon conundrum is no less urgent. This editorial was 543 00:30:58,080 --> 00:31:01,560 Speaker 1: written by the Bloomberg Opinion Editorial Board. I'm David Shipley. 544 00:31:01,600 --> 00:31:04,120 Speaker 1: For more Bloomberg opinion, please cut to Bloomberg dot Com, 545 00:31:04,160 --> 00:31:07,960 Speaker 1: Slash Opinion or Opian. Go on the Bloomberg terminal. This 546 00:31:08,240 --> 00:31:12,080 Speaker 1: has been Bloomberg Opinion and Bloomberg Opinion editorials can be 547 00:31:12,120 --> 00:31:15,320 Speaker 1: heard every weekday at this time, and terminal customers can 548 00:31:15,360 --> 00:31:19,480 Speaker 1: read more at Ope. I am go. This is Bloomberg 549 00:31:21,120 --> 00:31:23,640 Speaker 1: at the Bloomberg Weather for it today for a meatyrologist, 550 00:31:23,800 --> 00:31:26,960 Speaker 1: Rob Carolin. The showers will end this spring, then it 551 00:31:27,000 --> 00:31:30,440 Speaker 1: will become partly Sunday. Today the high temperature seventy is 552 00:31:30,440 --> 00:31:34,040 Speaker 1: seventy five degrees tonight partly cloudy. Loads of the mid fifties, 553 00:31:37,320 --> 00:31:40,720 Speaker 1: markets headlines and breaking news twenty four hours a day 554 00:31:40,840 --> 00:31:44,920 Speaker 1: at Bloomberg dot Com, The Bloomberg Business allan at Bloomberg Quicktap. 555 00:31:45,200 --> 00:31:54,120 Speaker 1: This is a Bloomberg Business flash and I'm Karen Moscow 556 00:31:54,160 --> 00:31:57,560 Speaker 1: and European stocks are tumbling. US stock indise futures are 557 00:31:57,600 --> 00:32:00,920 Speaker 1: signaling more losses ahead after yesterday's lf that are raised 558 00:32:00,960 --> 00:32:03,520 Speaker 1: one and a half trillion dollars of market value from 559 00:32:03,600 --> 00:32:06,520 Speaker 1: US equities. We checked the markets every fifteen minutes throughout 560 00:32:06,520 --> 00:32:09,120 Speaker 1: the trading day. On Bloomberg s and P Future is 561 00:32:09,160 --> 00:32:11,600 Speaker 1: down about sixty four points down. Future is down four 562 00:32:11,680 --> 00:32:14,840 Speaker 1: hundred sixty six and NASTAG futures down two hundred twenty one. 563 00:32:15,160 --> 00:32:17,560 Speaker 1: The decks in Germany's down to in a quarter percent. 564 00:32:17,600 --> 00:32:20,520 Speaker 1: The ten year treasury of seventeen thirty seconds yield two 565 00:32:20,520 --> 00:32:22,560 Speaker 1: point eight two percent. That yield on the two year 566 00:32:22,640 --> 00:32:25,840 Speaker 1: two point six one percent. Nine x Scrude oil is 567 00:32:25,920 --> 00:32:28,160 Speaker 1: down more than two percent on two dollars twenty seven 568 00:32:28,160 --> 00:32:30,240 Speaker 1: cents at a hundred seven dollars thirty six cents of 569 00:32:30,280 --> 00:32:33,240 Speaker 1: barrel comics gold up half percent or eight dollars twenty 570 00:32:33,280 --> 00:32:36,480 Speaker 1: cents at eighteen thirty sixty announced. The euro one point 571 00:32:36,560 --> 00:32:39,160 Speaker 1: oh four nine four against the dollar, British found one 572 00:32:39,160 --> 00:32:41,600 Speaker 1: point to three eight nine. The end is at one 573 00:32:41,640 --> 00:32:44,800 Speaker 1: twenty seven point eight three. And looking at a bitcoin 574 00:32:44,880 --> 00:32:48,280 Speaker 1: this morning, down more than one percent at well, it's 575 00:32:48,280 --> 00:32:50,320 Speaker 1: down a court well, down more than one percent, and 576 00:32:50,400 --> 00:32:53,920 Speaker 1: take that back at twenty eight thousand, eight hundred eighty dollars, 577 00:32:53,920 --> 00:32:56,320 Speaker 1: and that's a Bloomberg business flash. Now here's Michael Barr 578 00:32:56,360 --> 00:32:58,880 Speaker 1: with more on what's going on around the world. Michael Karen, 579 00:32:58,920 --> 00:33:02,040 Speaker 1: thank you very much. More. Cranian soldiers were evacuated from 580 00:33:02,040 --> 00:33:06,160 Speaker 1: a steel plan in mariupl. Several buses accompanied by Russian 581 00:33:06,200 --> 00:33:10,040 Speaker 1: military vehicles were seen pulling away from the plan. President 582 00:33:10,080 --> 00:33:13,320 Speaker 1: Joe Biden invoke emergency powers under the Defense Production Act 583 00:33:13,320 --> 00:33:17,920 Speaker 1: to try and boost production of baby formula to alleviate shortages. 584 00:33:18,240 --> 00:33:22,080 Speaker 1: The suspect in the Buffalo killings will be in court today. Meanwhile, 585 00:33:22,160 --> 00:33:25,440 Speaker 1: players on the Buffalo Bills visited the memorial outside the 586 00:33:25,440 --> 00:33:29,160 Speaker 1: supermarket shooting. In the NHL Playoffs, the Rangers lost to 587 00:33:29,160 --> 00:33:31,400 Speaker 1: the Hurricanes to one in overtime in Game one of 588 00:33:31,400 --> 00:33:34,960 Speaker 1: their series. In the NBA Playoffs, the Warriors won Game 589 00:33:35,000 --> 00:33:38,120 Speaker 1: one of their Western Finals over the Mavericks. In baseball, 590 00:33:38,280 --> 00:33:40,920 Speaker 1: the Yankees beat the Orioles three two, the Mets, Red 591 00:33:40,920 --> 00:33:44,160 Speaker 1: Sox Nationals one the Giant to A has lost. Global 592 00:33:44,160 --> 00:33:46,640 Speaker 1: news twenty four hours a day on air and on 593 00:33:46,680 --> 00:33:50,520 Speaker 1: Bloomberg Quicktake, powered by more than journalists and analysts more 594 00:33:50,560 --> 00:33:53,080 Speaker 1: than a hundred twenty countries. I'm Michael Barr, and this 595 00:33:53,320 --> 00:33:56,000 Speaker 1: is Bloomberg. John Michael, Thank you, five forty nine. On 596 00:33:56,080 --> 00:33:59,680 Speaker 1: Wall Street we are live for the Bloomberg Interactive Brokers studios. 597 00:34:00,200 --> 00:34:03,840 Speaker 1: The latest market narrative seems to be margin compression, higher 598 00:34:03,880 --> 00:34:08,440 Speaker 1: costs eating into company profits, in particular at retailers like 599 00:34:08,520 --> 00:34:11,960 Speaker 1: Walmart and Target. That's not the SMP five hundred plunging four. 600 00:34:12,760 --> 00:34:15,080 Speaker 1: What does this tell us about where the U S 601 00:34:15,120 --> 00:34:17,960 Speaker 1: economy is set? It? Time to bring in our next gas, 602 00:34:18,000 --> 00:34:22,400 Speaker 1: John Sylvia, founder of Dynamic Economic Strategy. John, thanks for 603 00:34:22,440 --> 00:34:25,200 Speaker 1: being with us. Your firmer, a former firm, Wells Fargo 604 00:34:25,840 --> 00:34:29,160 Speaker 1: slashing its SMP five hundred view for the second time 605 00:34:29,160 --> 00:34:33,680 Speaker 1: of three weeks with a mild recession. Now the base case, 606 00:34:33,960 --> 00:34:39,120 Speaker 1: what do you say, Well, in terms of earnings, the 607 00:34:39,200 --> 00:34:43,080 Speaker 1: employment costs index, which doesn't get a lot of press, 608 00:34:43,200 --> 00:34:47,560 Speaker 1: but it is a leading economic indicator for the profits 609 00:34:47,640 --> 00:34:51,759 Speaker 1: and profits themselves eluding the economic indicator of the economy. 610 00:34:52,200 --> 00:34:55,640 Speaker 1: The employment costs index has risen pretty dramatically in the 611 00:34:55,719 --> 00:34:58,440 Speaker 1: last year or so, and so you've got a sense 612 00:34:58,520 --> 00:35:03,040 Speaker 1: that the employe cost for rising. You've also seen a 613 00:35:03,080 --> 00:35:09,319 Speaker 1: different commodity price benchmarks uh rising in price. So the 614 00:35:09,400 --> 00:35:14,000 Speaker 1: combination not surprising that earnings are getting hit. And when 615 00:35:14,000 --> 00:35:17,480 Speaker 1: the earnings are getting hit, the economy weakens overall. So 616 00:35:17,800 --> 00:35:20,320 Speaker 1: the leading indicators are just saying that the economy is 617 00:35:20,320 --> 00:35:24,080 Speaker 1: slowing down. Doesn't really guarantee your recession doesn't genuan too. 618 00:35:24,120 --> 00:35:27,160 Speaker 1: We don't have a recession, but there's definitely enough evidence 619 00:35:27,680 --> 00:35:31,319 Speaker 1: is a significant slowdown here. Is there evidence that we're 620 00:35:31,440 --> 00:35:36,280 Speaker 1: shifting our spending as consumers from stuff to other things 621 00:35:36,320 --> 00:35:41,360 Speaker 1: like services? You know, that was a thesis for the 622 00:35:41,440 --> 00:35:45,760 Speaker 1: last couple of months, John, But the evidence doesn't really 623 00:35:45,840 --> 00:35:49,520 Speaker 1: show that there's a big shift going on. Rather, it's 624 00:35:49,560 --> 00:35:54,840 Speaker 1: a down shifting of both spending on goods and on services. 625 00:35:54,880 --> 00:35:59,200 Speaker 1: So the crunches on what you've seen I think most 626 00:35:59,640 --> 00:36:06,040 Speaker 1: and understand this is that real household income disposable income 627 00:36:06,360 --> 00:36:09,839 Speaker 1: has been declining for the last year. The month over 628 00:36:09,960 --> 00:36:12,120 Speaker 1: month numbers that we see that are published by the 629 00:36:12,160 --> 00:36:15,719 Speaker 1: federal government. Uh, those numbers have been coming down. Meanwhile, 630 00:36:16,280 --> 00:36:20,200 Speaker 1: consumer credit card usage has gone up. You know, those 631 00:36:20,560 --> 00:36:23,400 Speaker 1: are two signals. One of the income constraint is there, 632 00:36:23,760 --> 00:36:26,959 Speaker 1: and to a lot of households are making up their 633 00:36:27,000 --> 00:36:31,480 Speaker 1: budget by taking credit card debt. Um not a good combination. 634 00:36:31,640 --> 00:36:35,040 Speaker 1: So definitely, when you look at the consumer numbers, they're 635 00:36:35,120 --> 00:36:38,680 Speaker 1: just not as strong as people would have expected three 636 00:36:38,719 --> 00:36:43,000 Speaker 1: months ago was six months ago, stagnating growth, higher prices. 637 00:36:43,040 --> 00:36:46,600 Speaker 1: How likely is stag inflation at this point? No, I 638 00:36:46,640 --> 00:36:51,440 Speaker 1: think it's very likely, John, Traditionally stagflations the combinational inflation 639 00:36:51,560 --> 00:36:55,799 Speaker 1: and a rising unemployment rate. Again, when you look at 640 00:36:55,840 --> 00:37:00,520 Speaker 1: the jobless claims as a leading economic indicator, those numbers 641 00:37:00,520 --> 00:37:02,879 Speaker 1: are kicking up just a little bit. And he kind 642 00:37:02,920 --> 00:37:05,200 Speaker 1: of got a sense, Uh, uh, you and I all 643 00:37:05,200 --> 00:37:06,719 Speaker 1: talk about it in a couple of months that the 644 00:37:06,800 --> 00:37:10,560 Speaker 1: unemployer rate's gonna be rising. Uh. May not be dramatic, 645 00:37:11,000 --> 00:37:13,200 Speaker 1: but it will be probably a little bit here, a 646 00:37:13,200 --> 00:37:15,120 Speaker 1: little bit there. So yes, I think you go ahead 647 00:37:15,120 --> 00:37:18,799 Speaker 1: and have stagulation. The second quarter of this year will 648 00:37:18,840 --> 00:37:22,759 Speaker 1: probably be characterized by stagpulation. Is a soft landing by 649 00:37:22,800 --> 00:37:25,880 Speaker 1: the Fed out of the question right now? Yeah? I 650 00:37:25,920 --> 00:37:28,520 Speaker 1: think it's too difficult quite frankly, John, I know we'd 651 00:37:28,600 --> 00:37:31,359 Speaker 1: we'd like to talk about it. The FED likes to 652 00:37:31,400 --> 00:37:36,120 Speaker 1: talk about a softish landing. But I think for households 653 00:37:36,160 --> 00:37:40,000 Speaker 1: there is no soft landing. Their real income is down. Uh. 654 00:37:40,239 --> 00:37:44,600 Speaker 1: For those that are you know, newly unemployed with jobless claims, Uh, 655 00:37:44,680 --> 00:37:48,719 Speaker 1: there's no soft landing there. They're unemployed, so it's it's 656 00:37:48,760 --> 00:37:51,360 Speaker 1: not a good combination. John, always a pleasure. Good to 657 00:37:51,360 --> 00:37:54,960 Speaker 1: talk to you again, John Sylvia, Founder of Dynamic Economic Strategy. 658 00:37:55,120 --> 00:37:58,160 Speaker 1: Karen and John, it is five three on Wall Street. 659 00:37:58,239 --> 00:38:00,640 Speaker 1: Time for the Bloomberg The Law Report, altoe you buy 660 00:38:00,680 --> 00:38:05,319 Speaker 1: American Arbitration Association Business disputes are inevitable, resolve faster with 661 00:38:05,360 --> 00:38:09,440 Speaker 1: the American Arbitration Association, the global leader in alternative dispute 662 00:38:09,440 --> 00:38:12,759 Speaker 1: resolution for over ninety years. More at a dr dot org. 663 00:38:13,040 --> 00:38:15,440 Speaker 1: Let's get to the legal stories we're watching this morning 664 00:38:15,600 --> 00:38:22,759 Speaker 1: from Bloomberg Jeff Bellinger. The Energy Department's new energy conservation 665 00:38:22,840 --> 00:38:27,200 Speaker 1: standard for manufactured homes doesn't go far enough for some advocates, 666 00:38:27,239 --> 00:38:31,160 Speaker 1: while industry officials say it will worsen the affordable housing crisis. 667 00:38:31,600 --> 00:38:36,239 Speaker 1: The Environmental Protection Agency specified levels of five forever chemicals 668 00:38:36,280 --> 00:38:40,680 Speaker 1: that should trigger contaminated site investigations. Within weeks, the e 669 00:38:40,800 --> 00:38:44,440 Speaker 1: p A will release an updated roadmap detailing the legal 670 00:38:44,480 --> 00:38:49,200 Speaker 1: tools that can use to promote environmental equity in marginalized communities. 671 00:38:49,600 --> 00:38:54,440 Speaker 1: Bloomberg Law Everything you need, all on one legal research platform, 672 00:38:54,600 --> 00:38:59,239 Speaker 1: including guidance analysis and Bloomberg Market Intelligence. Find out more. 673 00:38:59,280 --> 00:39:03,640 Speaker 1: At Bloomberg Law dot com. Ry Jeff, thank you. Now 674 00:39:03,680 --> 00:39:07,160 Speaker 1: another legal story we're watching this week, A sharply divided 675 00:39:07,160 --> 00:39:11,640 Speaker 1: Supreme Court ruled that federal courts cannot review factual decisions 676 00:39:11,680 --> 00:39:15,440 Speaker 1: made by immigration officials, even if there are mistakes. A 677 00:39:15,480 --> 00:39:18,359 Speaker 1: Georgia resident who enter the country illegally thirty years ago 678 00:39:18,520 --> 00:39:21,360 Speaker 1: wanted to appeal a deportation order, which was based on 679 00:39:21,480 --> 00:39:24,360 Speaker 1: his checking a box indicating he was a US citizen 680 00:39:24,400 --> 00:39:27,319 Speaker 1: on a driver's license renewal. The court ruled five to 681 00:39:27,440 --> 00:39:31,080 Speaker 1: four that he could not appeal the immigration officials decision, 682 00:39:31,400 --> 00:39:34,560 Speaker 1: but Justice Neil gor Such joining the liberal justices in 683 00:39:34,640 --> 00:39:37,840 Speaker 1: discent for more in the case, Bloomberg Jim Grasso speacially 684 00:39:37,880 --> 00:39:41,080 Speaker 1: on Fresco, a partner at Holland to night, this decision 685 00:39:41,120 --> 00:39:44,440 Speaker 1: could mean the difference between a person staying in the 686 00:39:44,480 --> 00:39:48,359 Speaker 1: country or being deported. So this is actually a significant 687 00:39:48,360 --> 00:39:53,200 Speaker 1: limitation in the future on judicial review in the green 688 00:39:53,239 --> 00:39:58,240 Speaker 1: card application context. That basically makes it that almost any 689 00:39:58,280 --> 00:40:01,760 Speaker 1: decision that is being made, even if it's completely wrong. 690 00:40:01,840 --> 00:40:05,640 Speaker 1: So if the government says you are a polygamist, and 691 00:40:05,760 --> 00:40:08,120 Speaker 1: you say, what are you talking about? Where are there 692 00:40:08,120 --> 00:40:11,920 Speaker 1: two marriage certificates? That show I'm a polygamist, you could 693 00:40:11,920 --> 00:40:15,600 Speaker 1: not actually get that reviewed in the Supreme Court or 694 00:40:15,600 --> 00:40:18,439 Speaker 1: in any other federal court because now none of that's 695 00:40:18,480 --> 00:40:22,560 Speaker 1: going to be reviewable under the logic that the green 696 00:40:22,600 --> 00:40:27,839 Speaker 1: card application itself is discretionary. So then under this decision, 697 00:40:28,440 --> 00:40:33,359 Speaker 1: a federal judge can't review the determination made by an 698 00:40:33,400 --> 00:40:38,280 Speaker 1: immigration official. So the decision by this one immigration official 699 00:40:38,719 --> 00:40:41,200 Speaker 1: is the be all and end all correct as part 700 00:40:41,200 --> 00:40:45,319 Speaker 1: of a green card application. That's correct, meaning that if 701 00:40:45,360 --> 00:40:47,839 Speaker 1: anybody is making a decision as part of a green 702 00:40:47,880 --> 00:40:51,880 Speaker 1: card application, not just as to the discretionary decision at 703 00:40:51,920 --> 00:40:55,120 Speaker 1: the end, give it or not based on discretion, but 704 00:40:55,239 --> 00:40:57,839 Speaker 1: also on any of the facts. Are you a polygamist, 705 00:40:57,920 --> 00:41:00,960 Speaker 1: Are you an a legal gambler, are you a drug dealer? 706 00:41:01,000 --> 00:41:03,000 Speaker 1: Are you any of these things? You will have no 707 00:41:03,080 --> 00:41:06,920 Speaker 1: opportunity to go in and review any of those facts, 708 00:41:07,000 --> 00:41:09,919 Speaker 1: even if they're completely wrong, because of the Free Court 709 00:41:09,960 --> 00:41:14,279 Speaker 1: has said, well, because the larger determination is discretionary, that 710 00:41:14,400 --> 00:41:20,200 Speaker 1: covers everything, even the factual determination, and Justice Corsets split 711 00:41:20,680 --> 00:41:25,000 Speaker 1: from his conservative colleagues and sided with the liberals here. 712 00:41:27,040 --> 00:41:30,440 Speaker 1: So Justice Corset has actually now in a trend of 713 00:41:30,480 --> 00:41:33,200 Speaker 1: two cases, one is called nis Javis and one is 714 00:41:33,239 --> 00:41:35,759 Speaker 1: this case, said that he is going to hold the 715 00:41:35,800 --> 00:41:40,640 Speaker 1: government to a very strict standard on deportation cases because 716 00:41:40,640 --> 00:41:44,640 Speaker 1: deportation is such a drastic penalty that's being given to immigrants. 717 00:41:44,640 --> 00:41:48,560 Speaker 1: He wants the government to follow every detail perfectly, and 718 00:41:48,600 --> 00:41:51,399 Speaker 1: he wants there to be judicial review and reopened your 719 00:41:51,440 --> 00:41:54,960 Speaker 1: case to get discretionary release. There he ruled. Yet you 720 00:41:55,040 --> 00:41:58,600 Speaker 1: have to give the exact notice, the date and time perfectly. 721 00:41:58,960 --> 00:42:02,120 Speaker 1: You can't sup point Le six said later, and so 722 00:42:02,320 --> 00:42:04,719 Speaker 1: here he's doing the same thing. He's saying, Look, when 723 00:42:04,760 --> 00:42:07,560 Speaker 1: the government gets back throng, the court should be able 724 00:42:07,560 --> 00:42:11,720 Speaker 1: to review it. That's a consistent trend, and that's Leon Fresco, 725 00:42:11,800 --> 00:42:13,960 Speaker 1: a partner at Holland and nice figure at the Bloomberg 726 00:42:14,000 --> 00:42:16,880 Speaker 1: s jun Grosso. Catch more of that interview, plus analysis 727 00:42:16,880 --> 00:42:19,520 Speaker 1: of the latest legal news, by subscribing to the Bloomberg 728 00:42:19,600 --> 00:42:22,839 Speaker 1: Law Podcast or downloading the show at Bloomberg dot com 729 00:42:22,880 --> 00:42:26,280 Speaker 1: slash podcast. Attorneys can find exceptional legal research and business 730 00:42:26,320 --> 00:42:29,120 Speaker 1: development tools at Bloomberg Law dot com and on the 731 00:42:29,120 --> 00:42:33,640 Speaker 1: Bloomberg terminal at b Law Go and futures This morning 732 00:42:33,760 --> 00:42:38,000 Speaker 1: following SMP Futures down sixty one points and Nasday features 733 00:42:38,040 --> 00:42:40,680 Speaker 1: down two hundred two. Still ahead on Bloomberg day Break, 734 00:42:40,680 --> 00:42:42,600 Speaker 1: a check on the business headlines and all the news 735 00:42:42,640 --> 00:42:46,120 Speaker 1: you need to start your day. And this is Bloomberg.