WEBVTT - Bloomberg Daybreak: April 20, 2022 - Hour 2 (Radio) 0:00:02.360 --> 0:00:05.519 Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:05.600 --> 0:00:09.200 day Break for Wednesday. A two coming up this hour. 0:00:09.440 --> 0:00:12.920 Shares of Netflix plunge after its first subscriber loss in 0:00:13.000 --> 0:00:16.239 a decade. The port city of Mariopol and Ukraine is 0:00:16.280 --> 0:00:19.040 in jeopardy. Will have the very latest and the Justice 0:00:19.079 --> 0:00:21.919 Department may appeal the Public Transit NAS schooling if the 0:00:21.960 --> 0:00:25.079 Centers for Disease Control says so. A Connecticut state police 0:00:25.079 --> 0:00:27.720 trooper who fired seven gun shots into a car, killing 0:00:27.720 --> 0:00:31.160 a man has been arrested. Plus Shanghai continues to ease 0:00:31.240 --> 0:00:34.760 COVID rules. I'm Michael Barr. More ahead, I've done Stagehower 0:00:34.760 --> 0:00:36.960 in sports. The Mets of the best record in baseball. 0:00:37.000 --> 0:00:39.040 They swept the double letter from the Giants. They Yankees 0:00:39.040 --> 0:00:42.840 want of Detroit. The Rangers shut out Whinnipeg. Bloom That's 0:00:42.840 --> 0:00:46.479 all straight ahead on Bloomberg day Break. On Bloomberg. You 0:00:46.560 --> 0:00:50.360 live in Freo New York, Bloomberg N one, Washington, d C, 0:00:50.760 --> 0:00:54.160 Bloomberg one O six one in Boston, Bloomberg nine fifty 0:00:54.240 --> 0:00:58.160 San Francisco, Sirius x M one nine team, and around 0:00:58.200 --> 0:01:00.920 the world on the Bloomberg Radio dot Com and via 0:01:01.000 --> 0:01:08.880 the Bloomberg Business Set. Good morning, I'm Nathan Hagar and 0:01:08.920 --> 0:01:11.920 I'm Karen Moscow and US stock index futures are little 0:01:12.040 --> 0:01:14.000 change this morning. We are coming up to six o 0:01:14.120 --> 0:01:15.920 one on Wall Street, and we checked the markets every 0:01:15.920 --> 0:01:19.520 fifteen minutes throughout the trading day on Bloomberg. Again, futures 0:01:19.560 --> 0:01:21.920 are a little change. The decks in Germany of one 0:01:21.959 --> 0:01:25.240 point one percent ten Your treasury of fourteen thirty seconds 0:01:25.319 --> 0:01:27.720 yield two point eight eight percent. They yield on the 0:01:27.800 --> 0:01:31.240 two year two point five five percent. Nivex screwed oil 0:01:31.480 --> 0:01:33.520 is up three quarters of a percent of seventy eight 0:01:33.520 --> 0:01:35.600 cents at a hundred three dollars thirty four cents of 0:01:35.640 --> 0:01:38.960 barrel Covecs gold is down four tenths percent, or seven 0:01:39.000 --> 0:01:43.280 dollars fifty cents at nineteen fifty one fifty, announced Nathan Karen. 0:01:43.319 --> 0:01:45.800 We begin this morning with the plunge in Netflix shares. 0:01:45.840 --> 0:01:48.640 They are down more than twenty six percent following the 0:01:48.680 --> 0:01:52.240 company's disappointing earnings. Let's get the latest live from Bloomberg's 0:01:52.240 --> 0:01:55.160 Grnita Young. Good morning, Grenita, Good morning, Nathan. The streaming 0:01:55.200 --> 0:01:59.000 giant unexpectedly lost subscribers for the first time in a decade, 0:01:59.240 --> 0:02:01.720 and it sees another a drop of two million users 0:02:01.760 --> 0:02:04.680 this quarter. So in an effort to improve results, co 0:02:04.920 --> 0:02:09.200 CEO Read Hastings says, Netflix will introduce a cheaper advertising 0:02:09.200 --> 0:02:12.040 supported option for subscribers in the next couple of years. 0:02:12.320 --> 0:02:16.200 I'm a bigger fan of consumer choice and allowing consumers 0:02:16.240 --> 0:02:18.640 who would like to have a lower price and are 0:02:18.760 --> 0:02:22.880 advertising tolerant um get what they want makes a lot 0:02:22.919 --> 0:02:26.400 of sense. Netflix co CEO Read Hastings says the company 0:02:26.400 --> 0:02:29.359 will also start to crack down on people sharing their 0:02:29.400 --> 0:02:32.240 passwords live in New York. I'm gonna need a young 0:02:32.280 --> 0:02:34.560 Bloomberg daybreak, all right, grened to thank you. While we 0:02:34.600 --> 0:02:38.760 are seeing the Netflix results impact other streaming services, shares 0:02:38.760 --> 0:02:41.440 A Disney are down more than four percent, while Roku 0:02:41.560 --> 0:02:44.040 is off by six percent, and one of their stock 0:02:44.120 --> 0:02:47.280 of note that's moving this morning is IBM shares her 0:02:47.320 --> 0:02:49.800 up one and a half percent. Of the company's sales 0:02:49.880 --> 0:02:53.519 toped analysts estimates, and the earnings continue to roll in Karen. 0:02:53.560 --> 0:02:58.200 With sixteen companies in the SMP reporting today, including Tesla, 0:02:58.480 --> 0:03:01.119 Let's get a preview from Bloomberg's on buzby One big 0:03:01.160 --> 0:03:03.800 focus for first quarter earnings at the world's biggest electric 0:03:03.840 --> 0:03:07.440 auto maker, how much the COVID nineteen shutdown to the 0:03:07.440 --> 0:03:11.560 company's Shanghai plant have impacted production. There also of concerned 0:03:11.600 --> 0:03:14.000 the impact of the global computer chip shortage and the 0:03:14.040 --> 0:03:18.359 ongoing supply chain issues that have affected all automakers. But 0:03:18.480 --> 0:03:21.680 Bloomberg consensus calls for adjusted earnings of two dollars twenty 0:03:21.720 --> 0:03:25.360 seven cents of share and revenues of seventeen point nine 0:03:25.400 --> 0:03:29.320 two billion dollars. Tom Busby, Bloomberg Daybreak, All right, Tom, 0:03:29.320 --> 0:03:31.720 thank you all. Turning to the economy now, US ten 0:03:31.840 --> 0:03:35.200 year real yields briefly turned positive this morning for the 0:03:35.240 --> 0:03:39.400 first time since March. Meanwhile, Chicago FED President Charles Evans 0:03:39.440 --> 0:03:42.360 said interest rate will probably rise above the neutral level, 0:03:42.640 --> 0:03:45.400 but how much higher will hange on weather? Inflation cools 0:03:45.440 --> 0:03:48.880 as expected. Probably we are going beyond neutral. I mean 0:03:48.920 --> 0:03:52.960 that's my expectation. When I see that, taking out special factors, 0:03:53.000 --> 0:03:54.600 I'm still left with three to three and a half 0:03:54.600 --> 0:03:58.480 percent inflation. That's not what we want. Chicago FED President 0:03:58.560 --> 0:04:00.480 Charles Evans made the comments, Yes, your day at the 0:04:00.480 --> 0:04:02.640 Economic Club of New York, and we may get a 0:04:02.640 --> 0:04:05.119 clear picture behind the Feds thinking Karen when it would say. 0:04:05.360 --> 0:04:08.080 Regional Economic survey, known as the Beige Book, comes out 0:04:08.160 --> 0:04:12.080 this afternoon. Bloomberg's Michael McKee has a preview. Americans say 0:04:12.080 --> 0:04:14.960 they are discouraged by inflation, but are they pulling back 0:04:15.000 --> 0:04:17.640 on spending an investment. The Beige Book will offer Fed 0:04:17.680 --> 0:04:21.120 officials anecdotal evidence on the impact of rising prices and 0:04:21.320 --> 0:04:24.480 the outlook for the next few months. Activity has been mixed, 0:04:24.520 --> 0:04:28.560 showing some cooling and goods demand that could ease price pressures, 0:04:28.600 --> 0:04:31.680 although there's been a greater appetite for services recently. First 0:04:31.720 --> 0:04:34.440 quarter growth is forecast to slow considerably from the fourth 0:04:34.480 --> 0:04:37.560 quarters sizzling six point nine percent annual rate. It's not 0:04:37.640 --> 0:04:40.080 definitive by any means, but the Beige Book will offer 0:04:40.120 --> 0:04:42.240 some color on whether that's slow down is going to 0:04:42.279 --> 0:04:46.839 be temporary or longer lasting. Michael McKee, Bloomberg Daybreak. All right, Michael, 0:04:46.920 --> 0:04:48.360 thank you. We now want to update you on the 0:04:48.440 --> 0:04:51.039 latest developments in the war. The port city of Mario 0:04:51.160 --> 0:04:54.520 pol in, Ukraine is on the brink. Ukrainian defenders say 0:04:54.640 --> 0:04:57.640 they're surrounded and they're appealing to world leaders for help. 0:04:57.839 --> 0:05:02.520 Bloomberg Samy Morris reports. Ukrainian President voladimir's Alinsky posted a 0:05:02.640 --> 0:05:08.719 video to social media saying that the Russian Army is 0:05:08.800 --> 0:05:11.599 righting itself into world history as the most barbaric and 0:05:11.680 --> 0:05:14.520 in humane army in the world, in part because they're 0:05:14.560 --> 0:05:18.920 blocking efforts to create humanitarian corridors, especially in Mariopol, where 0:05:18.920 --> 0:05:21.800 the commander of one Ukrainian brigade is pleading for help 0:05:21.839 --> 0:05:25.440 from other countries to evacuate civilians from the ports city. 0:05:25.720 --> 0:05:28.760 Russia has given the fighters until two pm in Moscow, 0:05:28.880 --> 0:05:32.320 that's seven am Eastern, to lay down their arms and surrender. 0:05:32.720 --> 0:05:36.160 In Washington, I maybe Morris Bloomberg daybreak, Okay, thank you, 0:05:36.160 --> 0:05:39.120 turning to the pandemic, The Justice Department says it's prepared 0:05:39.160 --> 0:05:43.159 to appeal the mask mandate ruling if necessary. Bloomberg said, 0:05:43.160 --> 0:05:45.800 Baxter has the story. The d o J says it 0:05:45.839 --> 0:05:48.960 will appeal if the CDC decides that the mandate should 0:05:48.960 --> 0:05:53.120 remain in place after May three, when the current one expires. Currently, 0:05:53.200 --> 0:05:57.239 the recommendations remain in place but not mandated. Under the ruling, 0:05:57.680 --> 0:06:00.600 The White House is keeping its mandate in Forest spokeswoman 0:06:00.640 --> 0:06:03.719 Jen Saki says. The administration says it is a smart 0:06:03.800 --> 0:06:06.160 thing to do. We're continuing to encourage people to wear 0:06:06.240 --> 0:06:09.320 masks in public transit. They'll make that decision because it's 0:06:09.320 --> 0:06:12.560 obviously not being implemented at this moment time, but will 0:06:12.560 --> 0:06:15.240 continue to abide by CDC guidance for now. It is 0:06:15.279 --> 0:06:19.320 a personal decision. In San Francisco, I'm at Baxter Bloomberg daybreak, 0:06:19.440 --> 0:06:21.440 all right, and thank you Ellen wall Street. The days 0:06:21.480 --> 0:06:24.080 of free lunch at Goldman Sachs are over, marking the 0:06:24.160 --> 0:06:26.160 end of a pandemic office perk. We get the story 0:06:26.200 --> 0:06:30.040 from Bloomberg's Charlie Pellett. The investment bank says it will 0:06:30.120 --> 0:06:34.120 transition back to paid for meal service for breakfast and 0:06:34.279 --> 0:06:37.840 lunch on April twenty five. Goldman also says it will 0:06:37.880 --> 0:06:40.960 boost the stipend for meals out of hours to thirty 0:06:41.000 --> 0:06:44.400 dollars from twenty five dollars. Wall Street firms have been 0:06:44.480 --> 0:06:47.000 using free food as part of the push to bring 0:06:47.080 --> 0:06:50.479 employees back to their desks during a pandemic that has 0:06:50.520 --> 0:06:54.760 fueled the rise of hybrid schedules and remote work. Goldman 0:06:54.839 --> 0:06:57.960 has been one of the most aggressive financial firms in 0:06:58.040 --> 0:07:01.440 pushing for a return to the office. In New York 0:07:01.520 --> 0:07:04.040 Charlie Pellett Bloomberg day Break. All right, Charlie, thanks and 0:07:04.120 --> 0:07:06.640 sticking with the banking fame. Join us later Tay when 0:07:06.760 --> 0:07:10.000 we speak live with Bank of America's CEO, Brian moynihan. 0:07:10.080 --> 0:07:12.320 That's coming up at noon, Wall Street time on Balance 0:07:12.400 --> 0:07:16.120 of Power on both Bloomberg Radio and Bloomberg Television, Local 0:07:16.120 --> 0:07:19.280 headlines in the check of sports. Next on Bloomberg Daybreak. 0:07:22.840 --> 0:07:24.880 It's now six oh seven on Wall Street. We're forty 0:07:24.880 --> 0:07:27.120 three degrees in Central Park scene, light volume on the 0:07:27.120 --> 0:07:29.520 bridges and tunnels. Will check in with Peter Vancy if 0:07:29.560 --> 0:07:32.000 that's holding up. First, Michael Barr with what else is 0:07:32.040 --> 0:07:34.080 going on in New York and around the world. Good morning, Michael, 0:07:34.120 --> 0:07:37.800 Good morning Nathan. The New Jersey Catholic Diocese of Camden 0:07:38.080 --> 0:07:41.440 has agreed to pay eighties seven point five million dollars 0:07:41.440 --> 0:07:45.000 of several claims involving clergy sex abuse, with about three 0:07:45.040 --> 0:07:47.840 hundred alleged victims. It is one of the largest cash 0:07:47.880 --> 0:07:51.440 settlements involving the Catholic Church in the US. Mark Crawford 0:07:51.520 --> 0:07:54.000 is with the State Chapter of the Survivors Network of 0:07:54.000 --> 0:07:58.120 Those Abused by priests. I'm glad it's come to fruition. UM. 0:07:58.160 --> 0:08:02.320 I hope and believe that lead to some small level 0:08:02.360 --> 0:08:07.520 of closure and hopefully some validation for the victims of 0:08:07.600 --> 0:08:12.000 cludge abuse within the Diocese of Camden, New Jersey. Mark 0:08:12.040 --> 0:08:15.080 Crawford with the Survivors Network says the settlement carries a 0:08:15.200 --> 0:08:19.240 unique agreement, including turning over documents. Connecticut State Police, a 0:08:19.360 --> 0:08:22.240 trooper who fired seven gunshots into a car and killed 0:08:22.240 --> 0:08:25.119 a man in twenty twenty after a high speed chase 0:08:25.200 --> 0:08:28.240 has been arrested in connection with the shooting. Authority. State 0:08:28.240 --> 0:08:32.080 Trooper Brian North turned himself into the State Inspector General 0:08:32.200 --> 0:08:36.920 last evening. North fatally shot Mubarick Solomine in January twenty 0:08:37.120 --> 0:08:39.360 as Solomine sat in the driver's seat of a car 0:08:39.400 --> 0:08:42.520 in West Haven, where the chase ended and police boxed 0:08:42.600 --> 0:08:45.800 in the car. The State Police union says North risked 0:08:45.960 --> 0:08:49.040 his life and it is defending his actions. It looks 0:08:49.080 --> 0:08:53.200 like New York City dorman won't go on strike after all. Yesterday, 0:08:53.240 --> 0:08:56.000 attendative deal was reached to a vert of potential walkout 0:08:56.080 --> 0:08:59.480 a day ahead of the deadline. The agreement reached the 0:08:59.600 --> 0:09:03.760 union and the Realty Advisory Board everts what would have 0:09:03.800 --> 0:09:07.240 been the first strike of residential building service workers in 0:09:07.280 --> 0:09:10.360 New York City in thirty one years. A Chinese health 0:09:10.400 --> 0:09:13.920 official says four million people in Shanghai have been allowed 0:09:13.960 --> 0:09:17.199 to leave their homes as the coronavirus quarantine rules ease. 0:09:17.480 --> 0:09:20.240 That brings the total to almost twelve million people who 0:09:20.280 --> 0:09:22.839 have been allowed to leave their homes as China's largest 0:09:22.840 --> 0:09:26.360 city tries to contain the virus outbreaks. New Jersey's governor 0:09:26.400 --> 0:09:29.400 has some thoughts as the state prepares to legalize recreational 0:09:29.440 --> 0:09:32.880 pot sales. Governor Phil Murphy won't be partaking in pot, 0:09:32.960 --> 0:09:35.520 but he does have a preference. It's never been an 0:09:35.559 --> 0:09:38.360 animating thing for me. If we were legalizing Scotch, I 0:09:38.400 --> 0:09:41.280 would show up with a shopping cart. Governor Murphy says, 0:09:41.320 --> 0:09:44.840 recreational pots sales begin tomorrow. By the way, today's date 0:09:44.960 --> 0:09:48.559 is four twenty. You know Global News twenty four hours 0:09:48.559 --> 0:09:51.440 a day on air and on Bloomberg Quick Take, powered 0:09:51.440 --> 0:09:54.120 by more than twenty seven under journalists and analyists more 0:09:54.120 --> 0:09:56.520 than a hundred twenty countries. Michael Barr and this is 0:09:56.520 --> 0:10:04.800 Bloomberg name some know. Thank you Michael. Almost six ten 0:10:04.840 --> 0:10:07.040 on Wall Street time for the Bloomberg Sports update here 0:10:07.120 --> 0:10:09.800 John all right, Nathan, look now, but the Mets at 0:10:09.920 --> 0:10:12.240 nine and three of the best record. The major things 0:10:12.240 --> 0:10:14.560 a double header sweep with the Giants and City Field. 0:10:14.559 --> 0:10:16.599 I begin with a big comeback Mets field four to 0:10:16.679 --> 0:10:19.240 one time the game, then won it in the tenth inning. 0:10:19.720 --> 0:10:23.880 Two strikes on Lindor Darcia's pitch swing a lot rot 0:10:23.920 --> 0:10:26.920 towards center field, that's gonna get down. That makes it. 0:10:27.160 --> 0:10:30.480 Then roll for the wall the right center, no scores 0:10:30.720 --> 0:10:35.760 pet Francisco Indoor comes through, Mets win it tend five 0:10:36.000 --> 0:10:39.200 poor the final. We should be. Francisco into a rough 0:10:39.240 --> 0:10:40.920 first season in New York, but off to a hot 0:10:40.920 --> 0:10:43.040 start this year. He had two more hits in the nightcap, 0:10:43.160 --> 0:10:45.240 won by the Mets three to one, thanks to match 0:10:45.320 --> 0:10:48.080 sers Or, his first home start. Sers Are flirted with 0:10:48.120 --> 0:10:50.320 a no Hitterer lost it in the sixth that even 0:10:50.360 --> 0:10:52.440 gave up just the one hit Struck Aft ten and 0:10:52.520 --> 0:10:55.640 Seniti Instruser is already three and oh. In Detroit, the 0:10:55.720 --> 0:10:59.880 Garrett Cole struggles continue. These supposed Yankee eights couldn't finish 0:10:59.920 --> 0:11:02.160 the second and then he got only five outs. He 0:11:02.240 --> 0:11:05.920 issued five walks, but Clark Schmidt followed Cole with three 0:11:06.000 --> 0:11:08.800 the third scoreless release six strikeouts, and the Yankees beat 0:11:08.840 --> 0:11:11.559 the Tigers four to two. Fifty win for the Rangers 0:11:11.559 --> 0:11:14.120 three nothing over Winnipeg at the Garden. Ryan Strome scored 0:11:14.160 --> 0:11:17.120 twice and Igors just Thirk And with thirty one saves 0:11:17.160 --> 0:11:18.760 the Rangers of one of their last three games by 0:11:18.800 --> 0:11:22.080 a combined eleven th nothing. First time the Rangers have 0:11:22.120 --> 0:11:24.599 had three strange shutouts since the Eddie Jacobin days in 0:11:24.720 --> 0:11:29.040 nineteen seventy three. NBA playoff wins from Miami, Memphis and 0:11:29.160 --> 0:11:31.800 New Orleans and upset win at Phoenix, Nets and Celtics 0:11:31.800 --> 0:11:35.600 tonight Game two in Boston. Kyrie Irving find fifty thousand 0:11:35.600 --> 0:11:38.360 dollars by the NBA for his middle finger salutes to 0:11:38.400 --> 0:11:43.040 Celtic fans on Sunday. John stash Award Bloomberg Sports, Nathan Okay, John, Thanks. 0:11:43.080 --> 0:11:46.720 Futures turning flat now. S and P futures are little changed. 0:11:46.720 --> 0:11:49.800 Own futures up twenty seven points, Dan stack futures are 0:11:49.840 --> 0:11:53.920 lower by eighteen points ten. Your treasury is up seventeen 0:11:54.000 --> 0:11:57.200 thirty seconds. The yield two point eight seven percent, and 0:11:57.280 --> 0:11:59.280 the yield on the two year right now two point 0:11:59.360 --> 0:12:07.600 five four percent. You're listening to Bloomberg Daybreak. Bloomberg day 0:12:07.640 --> 0:12:09.440 Break brought to you by the Jewish Communal Fund j 0:12:09.520 --> 0:12:11.719 c F. Stoner Advised Fund is the smart choice to 0:12:11.760 --> 0:12:14.719 manage your philanthropy, especially in times of crisis. Make your 0:12:14.760 --> 0:12:18.360 giving impactful. Visit j c F n y dot org, 0:12:23.000 --> 0:12:26.400 markets headlines and breaking news twenty four hours a day 0:12:26.480 --> 0:12:29.480 at Bloomberg dot com, the Bloomberg Business at and at 0:12:29.480 --> 0:12:38.880 Bloomberg Quick Tape. This is a Bloomberg business lash, but 0:12:39.000 --> 0:12:42.400 I'm Karen Moscow. US dock index Future is trimming losses. 0:12:42.480 --> 0:12:46.400 European stocks extending gains is a rally, and treasury signals 0:12:46.440 --> 0:12:49.800 calming nerves over inflation. We checked the markets every fifteen 0:12:49.800 --> 0:12:52.000 minutes to while the trading day on Bloomberg right now 0:12:52.120 --> 0:12:54.760 isn't The futures are a little changed down Future is 0:12:54.840 --> 0:12:57.920 higher up forty two and ASDAG futures they're down eleven. 0:12:58.200 --> 0:13:00.640 The dacks in Germany is at one point two percent, 0:13:00.679 --> 0:13:03.199 the ten year treasury up seventeen thirty seconds. He'll two 0:13:03.200 --> 0:13:05.800 point eight six percent yield on a two year two 0:13:05.800 --> 0:13:08.800 point five four percent. NIMEX screwed oil is up seven 0:13:08.800 --> 0:13:11.000 ten percent or seventy five cents at a hundred three 0:13:11.040 --> 0:13:13.559 dollars thirty one cents, and barrel comics golled down to 0:13:13.679 --> 0:13:16.080 tenths per cent or three dollars ninety cents at nineteen 0:13:16.160 --> 0:13:19.160 fifty five ounce. The euro one point eight six five 0:13:19.200 --> 0:13:21.959 against the dollar, British found one point three zero five zero, 0:13:22.080 --> 0:13:24.600 the yen at one twenty seven point six two, and 0:13:24.800 --> 0:13:29.240 Bitcoin this morning higher at forty one thousand five dollars. 0:13:29.520 --> 0:13:32.040 That's a bloomberg business flash. Now here's Michael Barrow with 0:13:32.080 --> 0:13:34.480 more on what's going on around the world. Michael Karen, 0:13:34.520 --> 0:13:36.960 thank you very much. Russia is pouring more troops into 0:13:37.040 --> 0:13:41.080 Ukrainian cities and towns. The fighting in the east seeks 0:13:41.120 --> 0:13:44.120 to slice the country into and a potentially pivotal battle 0:13:44.200 --> 0:13:48.760 for control of Ukraine's industrial heartland of pole mines and factories. 0:13:49.120 --> 0:13:52.840 Winds kicked up a towering wall of flames in rural 0:13:52.960 --> 0:13:56.400 northern Arizona, tearing through two dozen structures and forcing the 0:13:56.440 --> 0:14:00.160 evacuation of more than seven hundred homes. In MLB, the 0:14:00.240 --> 0:14:03.720 Yankees one, the Mets swept a doubleheader against the Giants. 0:14:03.920 --> 0:14:07.080 The Nationals swept a double header against the Diamondbacks. The 0:14:07.120 --> 0:14:09.960 Red Sox one. The A's beat the Orioles to one, 0:14:10.360 --> 0:14:13.240 but the game was played before the smallest Oakland crowd 0:14:13.360 --> 0:14:16.920 in forty two years, almost thirty seven hundred fifty fans. 0:14:17.400 --> 0:14:20.320 In the NHL, the Rangers and Bruins one. The Islanders 0:14:20.360 --> 0:14:23.120 lost in o t to the Panthers. Three. To Global 0:14:23.160 --> 0:14:25.360 News twenty four hours a day on air and on 0:14:25.400 --> 0:14:29.080 Bloomberg Quicktake, powered by more than twenty seven hundred journalists 0:14:29.080 --> 0:14:31.600 and analyist are more than a hundred twenty countries. Michael 0:14:31.600 --> 0:14:34.320 Barr and this is Bloomberg. N Okay, Michael, thank you 0:14:34.320 --> 0:14:37.200 At six nineteen on Wall Street Live from the Bloomberg 0:14:37.240 --> 0:14:41.040 Interactive Broker Studios. This is Bloomberg Daybreak, and we're very 0:14:41.080 --> 0:14:43.440 pleased to have Joe Quinlan on with us this morning, 0:14:43.480 --> 0:14:46.160 Head of ce I O Market Strategy at Maryland Bank 0:14:46.160 --> 0:14:48.800 of America Private Bank. Joe, it's great to speak with 0:14:48.880 --> 0:14:52.240 you this morning. Obviously, earnings in focus right now with 0:14:52.360 --> 0:14:57.320 the big miss for Netflix, does that have implications for 0:14:57.440 --> 0:15:02.080 the earning season more broadly? It could, Nathan, but remember 0:15:02.160 --> 0:15:04.240 you know the myths from Netflix. I mean it, They'll 0:15:04.280 --> 0:15:07.680 stay at home stocks, they're gonna you know, downside pressure 0:15:07.960 --> 0:15:10.320 because we're now we're looking at reopening, so kind of 0:15:10.360 --> 0:15:12.000 the opposite of the airline. So I mean, I think 0:15:12.040 --> 0:15:14.360 it's it's healthy what we're seeing in terms of earnings, 0:15:14.400 --> 0:15:17.240 good top line growth working through the pricing pressures, and 0:15:17.320 --> 0:15:19.880 the economy is opening up. So the stay at home 0:15:20.200 --> 0:15:22.280 plays that we saw two years ago to work well, 0:15:22.560 --> 0:15:25.160 now we're shifting the growth and composition of us growth 0:15:25.160 --> 0:15:29.120 is shifting and we're going outbound. Of course, the reopening 0:15:29.560 --> 0:15:33.880 has led to these inflation pressures we're seeing and a 0:15:34.040 --> 0:15:37.760 tightening FED. How do your you advising your clients to 0:15:38.400 --> 0:15:44.200 navigate a more restrictive, potentially central bank. Yeah, it's it's 0:15:44.240 --> 0:15:46.080 kind of an education process for a lot of our 0:15:46.120 --> 0:15:48.560 clients because they haven't experienced this type of inflation and 0:15:48.880 --> 0:15:51.480 ever in some cases. But we're looking at more like 0:15:51.760 --> 0:15:56.280 using say equities, pacificals, the dividend players is inflation hedges. 0:15:56.320 --> 0:15:59.680 So we still like kind of that value to energy 0:15:59.800 --> 0:16:02.360 come modities in that space. We're not giving up on that. 0:16:02.400 --> 0:16:05.320 We still think they're rooming to run metals materials, so 0:16:05.440 --> 0:16:09.280 we're really using equities as an inflation hedge and hard assets, 0:16:09.320 --> 0:16:11.320 whether it's real estate as well, fits into that bucket. 0:16:11.960 --> 0:16:15.600 Is that because there's just no other alternative to equities 0:16:15.640 --> 0:16:20.800 in terms of getting a return at this juncture? Because yes, yes, 0:16:21.000 --> 0:16:23.400 Because at this juncture the FED is moving, going to 0:16:23.480 --> 0:16:26.120 have to move very aggressively, not just raising rates, quantity 0:16:26.120 --> 0:16:28.760 of tightening. So from our point of view, there's a 0:16:28.800 --> 0:16:30.840 lot of work to be done by the FED higher 0:16:30.880 --> 0:16:34.880 yield curve, and we suggest inflation has not peaped just yet, 0:16:34.920 --> 0:16:36.960 so there's a lot to work to be done in 0:16:36.960 --> 0:16:40.440 the credit markets that we think augurs for more cyclical 0:16:40.480 --> 0:16:43.800 growth and commodities. How aggressive do you think the Fed 0:16:44.040 --> 0:16:47.440 is gonna go, Joe? We heard from Charles Evans from 0:16:47.440 --> 0:16:50.280 the Chicago FED saying rates might need to go above 0:16:50.400 --> 0:16:53.600 neutral to fight inflation. Do you think they get that aggressive? 0:16:54.840 --> 0:16:57.360 What'll It'll depend on the next couple of months, the readings, 0:16:57.360 --> 0:16:59.600 how type of labor market is, how much way to 0:16:59.640 --> 0:17:02.880 pressure May June and July. Our call from the top 0:17:02.920 --> 0:17:05.119 of the house is fifty basis points and then twenty 0:17:05.160 --> 0:17:07.680 five basis points from there on, So it's a pretty 0:17:07.680 --> 0:17:11.200 aggressive call all things considered. So how worse the terminal rate? 0:17:11.240 --> 0:17:13.600 No one really knows, and that's really you know anything, 0:17:13.760 --> 0:17:15.639 we kind of we haven't thought about this, but the 0:17:15.680 --> 0:17:18.120 supply chain problems aren't over. They're getting worse. In fact, 0:17:18.160 --> 0:17:22.440 from Visa Beach China. So these inflationary pressures, supply related, 0:17:22.480 --> 0:17:24.760 demand related, they're not going away anytime soon. So we 0:17:24.800 --> 0:17:27.040 could see the terminal rate above the rate of inflation 0:17:27.119 --> 0:17:30.119 for sure. That brings to the question about whether a 0:17:30.280 --> 0:17:34.240 tightening FED can bring this economy in for a soft landing. 0:17:34.280 --> 0:17:37.280 What's your outlook for recession given the pressures we're still 0:17:37.280 --> 0:17:40.600 seeing the supply chains well, we see the odds of 0:17:40.640 --> 0:17:43.800 recession rising for twenty three. It's not our call, no 0:17:43.840 --> 0:17:45.640 doubt about it. We're not worried about this year. There's 0:17:45.640 --> 0:17:48.359 a good head of steam with the consumer monetary policy 0:17:48.440 --> 0:17:51.159 works in the lag so these great heights will be 0:17:51.240 --> 0:17:54.159 felt next year. In terms of recessionary risk, it's not 0:17:54.200 --> 0:17:56.400 a foregone conclusion that we have to have a recession 0:17:56.440 --> 0:17:58.920 a slowdown. We're looking for less than two percent growth 0:17:58.960 --> 0:18:01.800 in twenty three. That's being baked into the cake with earnings, 0:18:01.800 --> 0:18:04.639 so it doesn't have to end badly i e. Recession, 0:18:04.720 --> 0:18:07.240 but definitely a slowdown. There's no doubt about that. No, 0:18:07.359 --> 0:18:10.560 we did have real yields briefly turned positive overnight for 0:18:10.600 --> 0:18:13.000 the first time in two years. What's that say about 0:18:13.119 --> 0:18:17.720 inflation expectations and the potential market impact with real yields 0:18:17.760 --> 0:18:21.439 moving higher potentially, Well, there's some parts of the market 0:18:21.480 --> 0:18:23.159 now looking to say, you know, kind of when do 0:18:23.200 --> 0:18:25.439 we move into the fixed income space? I mean, when 0:18:25.640 --> 0:18:29.600 the equity start looking less attractive relatively fixed income. So 0:18:29.640 --> 0:18:31.280 that's something that's I think could be part of the 0:18:31.359 --> 0:18:33.560 narrative for the second half of this year. I don't 0:18:33.600 --> 0:18:36.919 think we're there just yet, but I think the key, Nathan, 0:18:37.000 --> 0:18:39.560 is that we came into this slowdown this year in 0:18:39.600 --> 0:18:41.840 the US at least, not China and Europe with a 0:18:41.840 --> 0:18:43.840 good head of steam led by the consumer, and I 0:18:43.840 --> 0:18:46.040 think that's going to surprise people to the upside in 0:18:46.119 --> 0:18:49.240 terms of overall growth and the overall level of earnings 0:18:49.240 --> 0:18:51.760 and why you want to still stick with equities. About 0:18:51.800 --> 0:18:54.760 thirty seconds left here in terms of equity hedges, Are 0:18:54.760 --> 0:18:59.159 there certain sectors you like particularly, Yeah, we're like the reefs, 0:18:59.359 --> 0:19:02.560 we like the Monty complex, agriculture. You know, some of 0:19:02.560 --> 0:19:04.879 these issues are pretty acute right now, but to me, 0:19:04.920 --> 0:19:08.520 they're secular in terms of the food price pressures. Energy. 0:19:08.560 --> 0:19:10.960 We still like in metals, minerals. You know, when you 0:19:11.000 --> 0:19:14.359 talk about e V solar renewables, very metal intensive. Everyone 0:19:14.400 --> 0:19:18.120 knows that. And to create the supply that it's gonna 0:19:18.200 --> 0:19:20.639 take years, not quarters of six stepts. So we still 0:19:20.720 --> 0:19:23.920 And it's the infrastructure, right, it's the infrastructure around natural gas, 0:19:24.000 --> 0:19:27.800 it's the infrastructure around oil arount mining. That's where I 0:19:27.800 --> 0:19:30.639 think there's gonna be some value in more site earning surprises. 0:19:31.200 --> 0:19:33.280 Thanks for this, Joe, great having on with us this morning. 0:19:33.320 --> 0:19:35.920 Joe Quinlan, head of CEO Market Strategy at Meryl and 0:19:35.960 --> 0:19:39.720 Bank of America Private Bank. Right now, SMP futures are 0:19:39.760 --> 0:19:42.200 little changed, up just one point down, features up thirty 0:19:42.240 --> 0:19:45.840 nine points, NASTACT futures lower still by seventeen points, the 0:19:45.880 --> 0:19:49.160 tenure treasury up eighteen thirty seconds, the yield two point 0:19:49.240 --> 0:19:52.120 eight six on the tenure yield on the two year 0:19:52.160 --> 0:19:55.159 two point five four percent. Just to add more U 0:19:55.280 --> 0:19:58.399 S weapons heavy weapons going to Ukraine, and the Biden 0:19:58.400 --> 0:20:02.320 administration says it may appeal the Mask ruling. Five things 0:20:02.359 --> 0:20:08.040 you need to notice start your day just ahead Bloomberg 0:20:08.040 --> 0:20:10.400 eleven three oh weather, early clouds. Good by to sunshine 0:20:10.440 --> 0:20:12.840 today with behind your sixty degrees more clouds than sun 0:20:12.880 --> 0:20:16.199 Tomorrow near sixty. We'll get up near seventy partly sunny 0:20:16.200 --> 0:20:23.080 by Friday. Currently forty three degrees in Central Park. Broadcasting 0:20:23.119 --> 0:20:26.879 live from the Bloomberg Interactive Broker Studio in New York, 0:20:26.960 --> 0:20:30.960 Bloomberg Elving free to Washington, d C, Bloomberg nine one 0:20:31.040 --> 0:20:34.280 to Boston, Bloomberg one O six one to San Francisco, 0:20:34.359 --> 0:20:37.560 Bloomberg Home sixty to the country, sirius XM to A 0:20:37.640 --> 0:20:40.800 one nine and around the globe, the Bloomberg Business app 0:20:40.920 --> 0:20:50.199 and Bloomberg Radio dot com. This is Bloomberg Daybreak Hit 0:20:50.240 --> 0:20:52.480 six thirty on Wall Street. Good morning, I'm Nathan Hager 0:20:52.720 --> 0:20:55.240 and I'm Karen Moscow. We are just about three hours 0:20:55.280 --> 0:20:57.320 away from the open of US trading. Time to the 0:20:57.359 --> 0:20:59.560 five things you need to notice start your day. Brought 0:20:59.640 --> 0:21:02.600 to you by I b k R Investment Advisers switched 0:21:02.600 --> 0:21:05.320 to interact your brokers for lowest cost global trading and 0:21:05.359 --> 0:21:09.119 turnkey custody solutions, no ticket charges and no conflicts of 0:21:09.160 --> 0:21:12.720 your interests at IBKR dot com. Slash r I, a 0:21:12.880 --> 0:21:17.479 first streaming giant Netflix slumping after yesterday's shocking earnings report. 0:21:17.800 --> 0:21:21.200 Shares are currently down twenties seven percent in early trading, 0:21:21.240 --> 0:21:23.440 we get the latest line from Bloomberg's re need a 0:21:23.560 --> 0:21:26.840 young good morning, Ready to good morning, Karen. Netflix unexpectedly 0:21:26.920 --> 0:21:29.879 lost subscribers for the first time in a decade, and 0:21:29.920 --> 0:21:33.080 the streaming giant seas another drop of two million users 0:21:33.119 --> 0:21:36.040 this quarter. So in an effort to improve results, co 0:21:36.280 --> 0:21:40.480 CEO Read Hastings says Netflix will introduce a cheaper, advertising 0:21:40.520 --> 0:21:43.679 supported option for subscribers in the next couple of years. 0:21:43.760 --> 0:21:46.320