1 00:00:00,680 --> 00:00:04,240 Speaker 1: Bloom Line from the Bloomberg Interactive Broker Studios. This is 2 00:00:04,280 --> 00:00:08,880 Speaker 1: Bloomberg Daybreak for Thursday, June sixteen, two. Coming up this hour, 3 00:00:09,039 --> 00:00:12,840 Speaker 1: the post fed rally fades as US future slump recession 4 00:00:12,920 --> 00:00:16,880 Speaker 1: fears return following the biggest increase since nine does the 5 00:00:16,880 --> 00:00:20,360 Speaker 1: Bank of England's turn to increase the interest race and 6 00:00:20,480 --> 00:00:23,200 Speaker 1: Elon Musk is set to address Twitter employees for the 7 00:00:23,280 --> 00:00:25,680 Speaker 1: first time. The gunman who killed black people in a 8 00:00:25,760 --> 00:00:29,640 Speaker 1: racist attack of Buffalo faces federal hate crimes charges. Plus 9 00:00:29,640 --> 00:00:32,800 Speaker 1: hearings resumed today on the January sixth Capitol Riot. I'm 10 00:00:32,800 --> 00:00:35,960 Speaker 1: Michael larn Or Ahead, I'm John Stash Howard Swards. Another 11 00:00:36,000 --> 00:00:38,240 Speaker 1: win for the Yankees, a loss for the meth Colorado 12 00:00:38,280 --> 00:00:40,760 Speaker 1: won the Stanley Cup, Bottle Opener and the US Open 13 00:00:40,800 --> 00:00:46,440 Speaker 1: Gulf agains today. That's all s traded ahead on Bloomberg 14 00:00:46,520 --> 00:00:50,040 Speaker 1: Daybreak on Bloomberg e Live in freon New York, Bloomberg 15 00:00:50,159 --> 00:00:54,160 Speaker 1: nine one, Washington, d C, Bloomberg one oh six one, Boston, 16 00:00:54,480 --> 00:00:58,880 Speaker 1: Bloomberg nine sixties and Francisco Sirius x AM one nineteen 17 00:00:59,120 --> 00:01:01,960 Speaker 1: and around the world Old on Bloomberg Radio dot Com 18 00:01:02,000 --> 00:01:08,720 Speaker 1: and The Bloomberg Business app Good morning. I'm John Tucker, 19 00:01:08,840 --> 00:01:12,679 Speaker 1: I'm Nathan Hagar. US futures are slumping this morning. We're 20 00:01:12,720 --> 00:01:14,800 Speaker 1: coming up to five oh one on Wall Street, and 21 00:01:14,800 --> 00:01:17,000 Speaker 1: we checked the markets every fifteen minutes during the trading 22 00:01:17,080 --> 00:01:20,320 Speaker 1: down Bloomberg. Right now, SMP futures are down two point 23 00:01:20,360 --> 00:01:22,880 Speaker 1: four percent for a drop of ninety points. Staff futures 24 00:01:22,880 --> 00:01:26,560 Speaker 1: down five fifty four. Nasdaq futures leading the declines right 25 00:01:26,600 --> 00:01:29,760 Speaker 1: now down three five points for a drop of two 26 00:01:29,800 --> 00:01:34,120 Speaker 1: point nine percent. The tenure treasuries down twenty five thirty seconds, 27 00:01:34,120 --> 00:01:36,679 Speaker 1: the yield three point three seven percent, yield on the 28 00:01:36,720 --> 00:01:39,520 Speaker 1: two year three point three zero percent. NIMEX screwed right 29 00:01:39,560 --> 00:01:41,720 Speaker 1: now trading at a hundred fifteen dollars ten cents of 30 00:01:41,760 --> 00:01:45,240 Speaker 1: barrel John and Nathan. The reversal in futures comes after 31 00:01:45,319 --> 00:01:48,560 Speaker 1: a rally yesterday following the latest decision from the Fed. 32 00:01:49,040 --> 00:01:52,600 Speaker 1: J Palell engineered the biggest US interest rate increasing in 33 00:01:52,640 --> 00:01:56,160 Speaker 1: twenty eight years to fight inflation. Markets are spotted with 34 00:01:56,200 --> 00:01:59,080 Speaker 1: a rally that halted a five day ten percent route 35 00:01:59,280 --> 00:02:02,680 Speaker 1: in S and P five. We at the Fed understand 36 00:02:02,680 --> 00:02:06,160 Speaker 1: the hardship that high inflation is causing. We're strongly committed 37 00:02:06,160 --> 00:02:09,840 Speaker 1: to bringing inflation back down, and we're moving expeditiously to 38 00:02:09,880 --> 00:02:11,919 Speaker 1: do so. We have both the tools we need and 39 00:02:11,960 --> 00:02:14,440 Speaker 1: the results that it will take to restore price stability 40 00:02:14,520 --> 00:02:18,520 Speaker 1: on behalf of American families and businesses. J Company raising 41 00:02:18,639 --> 00:02:22,120 Speaker 1: rates by seventy five basis points at lifting the target 42 00:02:22,240 --> 00:02:24,280 Speaker 1: range for the federal funds rate to one and a 43 00:02:24,320 --> 00:02:27,720 Speaker 1: half to one and three quarters per cent. Former Richmond 44 00:02:27,720 --> 00:02:31,240 Speaker 1: Fed president Jeffrey Lacker says more is needed. I think 45 00:02:31,240 --> 00:02:33,200 Speaker 1: it's going to have to go to about five and 46 00:02:33,200 --> 00:02:37,280 Speaker 1: a half or six percent. That's my own sense, and 47 00:02:37,320 --> 00:02:42,079 Speaker 1: that's based on just the historical record, uh that indicates 48 00:02:42,120 --> 00:02:46,040 Speaker 1: that real interest rates, inflation adjusted short term policy rates 49 00:02:46,400 --> 00:02:49,400 Speaker 1: have to get above zero in order to have any 50 00:02:49,840 --> 00:02:54,480 Speaker 1: chance of frustraining inflation. Former Bank of Richmond president Jeffrey 51 00:02:54,520 --> 00:02:57,960 Speaker 1: Lacker says the Fed should have raised rates last year. Well, 52 00:02:57,960 --> 00:03:00,600 Speaker 1: the rate hike now has many on Wall Street forecasting 53 00:03:00,600 --> 00:03:03,240 Speaker 1: a recession for the US economy. We caught up with 54 00:03:03,320 --> 00:03:07,959 Speaker 1: Guggenheim Chief investment officer Scott Minored, there's a chance that 55 00:03:08,040 --> 00:03:12,200 Speaker 1: we are already in a recession. And so if if 56 00:03:12,240 --> 00:03:14,320 Speaker 1: we are in a recession or we're close to a 57 00:03:14,360 --> 00:03:17,880 Speaker 1: recession and the FED pushes on this more and then 58 00:03:17,960 --> 00:03:19,880 Speaker 1: we find that that all of a sudden we have 59 00:03:19,919 --> 00:03:23,760 Speaker 1: a decline in asset prices like stocks did in seven. 60 00:03:23,919 --> 00:03:27,120 Speaker 1: Then uh, if the Fed reversus course, they're gonna look 61 00:03:27,160 --> 00:03:30,639 Speaker 1: like they're week on inflation. So this this is a 62 00:03:30,760 --> 00:03:35,200 Speaker 1: very very tough situation that we're maneuvering. Googenheim Chief investment 63 00:03:35,200 --> 00:03:37,920 Speaker 1: officer Scott Minerd says cracks are forming in the credit 64 00:03:37,960 --> 00:03:41,400 Speaker 1: world and the worst is probably not over after the FED. 65 00:03:41,520 --> 00:03:45,080 Speaker 1: Now it's the Bank of England's decision. Their decision comes 66 00:03:45,240 --> 00:03:47,680 Speaker 1: as the Bank of England gets set to deliver a 67 00:03:47,760 --> 00:03:51,480 Speaker 1: fifth straight rate hike later this morning. Investors in accounts 68 00:03:51,560 --> 00:03:54,360 Speaker 1: are betting the UK Central Bank we'll deliver a fifth 69 00:03:54,360 --> 00:03:57,560 Speaker 1: straight hike later this morning, raising the base rate by 70 00:03:57,600 --> 00:04:00,920 Speaker 1: twi bases points to a thirteen year high of one 71 00:04:01,240 --> 00:04:05,080 Speaker 1: and quarter percent. But former Bank of England governor Mark 72 00:04:05,120 --> 00:04:08,760 Speaker 1: Karney says he thinks policy makers are falling behind real 73 00:04:08,800 --> 00:04:11,760 Speaker 1: world events. I think what's clear as central bankers need 74 00:04:11,800 --> 00:04:14,640 Speaker 1: to catch up to their economies. They've you know, they've 75 00:04:14,640 --> 00:04:17,800 Speaker 1: been behind the curves. They've acknowledged this um and they 76 00:04:17,880 --> 00:04:24,040 Speaker 1: need to start to get interest rates uh above inflation effectively, 77 00:04:24,200 --> 00:04:28,120 Speaker 1: or at least perspective inflation inflation expectations. Mark Arney is 78 00:04:28,120 --> 00:04:30,440 Speaker 1: stepping down from the Central Bank of twenty twenty. He's 79 00:04:30,480 --> 00:04:33,719 Speaker 1: now a vice chair at Brookfield Asset Management. Oh, we 80 00:04:33,760 --> 00:04:36,200 Speaker 1: have another interest rate decision in Europe to tell you about, John. 81 00:04:36,240 --> 00:04:39,479 Speaker 1: The Swiss National Bank unexpectedly raised its rates for the 82 00:04:39,480 --> 00:04:43,000 Speaker 1: first time since two thousand seven. Policy makers opted to 83 00:04:43,080 --> 00:04:46,560 Speaker 1: join the global bandwagon of monetary tightening, lifting their policy 84 00:04:46,640 --> 00:04:49,360 Speaker 1: rate by fifty basis points to negative zero point to 85 00:04:50,440 --> 00:04:53,200 Speaker 1: and saying at europe natural anser price is jumping after 86 00:04:53,320 --> 00:04:56,960 Speaker 1: Russia has stepped up an energy war. It's cutting supplies 87 00:04:56,960 --> 00:04:59,840 Speaker 1: to Europe's top buyers. Let's get more from Bloomberg and 88 00:05:00,080 --> 00:05:03,640 Speaker 1: jury reporter Stephen Stephanevsky. This is a big deal, and 89 00:05:03,680 --> 00:05:06,360 Speaker 1: this is like the worst case scenario that that traders 90 00:05:06,360 --> 00:05:09,640 Speaker 1: were expecting in Europe. Absolutely, it is um you know, 91 00:05:09,839 --> 00:05:12,240 Speaker 1: for for weeks, for months, you know, when this war 92 00:05:12,279 --> 00:05:14,400 Speaker 1: broke out, the fear was Russia was going to curb 93 00:05:14,440 --> 00:05:17,360 Speaker 1: supply to customers, and they curbed to some customers. They 94 00:05:17,360 --> 00:05:21,520 Speaker 1: curbed to Poland, to Bulgaria, they curbed to these countries, 95 00:05:21,800 --> 00:05:25,000 Speaker 1: but they're not major buyers. Germany is a major buyer. 96 00:05:25,160 --> 00:05:28,520 Speaker 1: And this pipeline they've the North Stream one, they've cut 97 00:05:28,520 --> 00:05:33,960 Speaker 1: supply my Dutch front month gas futures the European benchmark 98 00:05:34,360 --> 00:05:36,760 Speaker 1: rising as much as twelve percent a day after rising 99 00:05:36,800 --> 00:05:40,479 Speaker 1: by forty four percent in the previous two sessions. Back 100 00:05:40,480 --> 00:05:42,720 Speaker 1: here in the US, John the White House says President 101 00:05:42,720 --> 00:05:45,600 Speaker 1: Biden is willing to use emergency measures to ramp up 102 00:05:45,600 --> 00:05:49,320 Speaker 1: gasoline output. Bloomberg's Ed Baxter has the story. This is 103 00:05:49,360 --> 00:05:51,839 Speaker 1: the same Cold War era law he invoked to increase 104 00:05:51,920 --> 00:05:56,280 Speaker 1: production of baby formula and bolster solar manufacturing. Biden saying 105 00:05:56,320 --> 00:05:59,960 Speaker 1: his administration is prepared to use all reasonable government tools 106 00:06:00,240 --> 00:06:04,320 Speaker 1: to increase refinery capacity. Meanwhile, the White House spokesman Karen 107 00:06:04,440 --> 00:06:07,400 Speaker 1: Jean Pierre says the oil companies need to step up. 108 00:06:07,440 --> 00:06:09,720 Speaker 1: We are calling on them to do the right thing, 109 00:06:09,839 --> 00:06:12,640 Speaker 1: to be patriots here, uh and not to use the 110 00:06:12,680 --> 00:06:17,600 Speaker 1: war as an excuse for higher costs leading to higher profits. 111 00:06:18,120 --> 00:06:20,880 Speaker 1: In San Francisco, I'm at bachetor Bloomberg day Break and 112 00:06:20,880 --> 00:06:23,000 Speaker 1: thanks Ed incorporating it was a big day for Twitter 113 00:06:23,040 --> 00:06:26,160 Speaker 1: and Elon Musk. Let's get the latest line from Bloomberg's 114 00:06:26,160 --> 00:06:28,719 Speaker 1: we need a young Good Morning reneaving Good Morningtown. Elon 115 00:06:28,800 --> 00:06:31,920 Speaker 1: Musk is addressing Twitter employees for the first time today 116 00:06:31,960 --> 00:06:35,040 Speaker 1: since agreeing to buy the company for forty four billion dollars. 117 00:06:35,400 --> 00:06:39,280 Speaker 1: At the virtual meeting, Musk will take questions directly from employees, 118 00:06:39,600 --> 00:06:43,159 Speaker 1: many of who have not been happy with him lately. Meantime, 119 00:06:43,200 --> 00:06:46,680 Speaker 1: Twitter CEO recently announced a series of cost cutting measures, 120 00:06:46,920 --> 00:06:50,520 Speaker 1: including canceling the company wide retreat that was scheduled to 121 00:06:50,560 --> 00:06:55,400 Speaker 1: happen in January and a hiring freeze live in New York, 122 00:06:55,440 --> 00:06:57,600 Speaker 1: I'm gonna need a young Bloomberg day break. We need 123 00:06:57,640 --> 00:06:59,440 Speaker 1: to thank you in A big name in the cosmetic 124 00:06:59,520 --> 00:07:03,640 Speaker 1: style is filing for bankruptcy. Revlon is applying for Chapter eleven. 125 00:07:03,839 --> 00:07:06,320 Speaker 1: The company owned by billionaire Ron Perlman, has been unable 126 00:07:06,360 --> 00:07:09,480 Speaker 1: to manage its heavy deathload. Revlon got it start selling 127 00:07:09,560 --> 00:07:12,120 Speaker 1: nail polish and the throws of the Great Depression. Proman's 128 00:07:12,160 --> 00:07:16,280 Speaker 1: holding company could took control in a bitter takeover funded 129 00:07:16,320 --> 00:07:19,440 Speaker 1: with junk debt raised by Michael Milken. This is Bloomberg, 130 00:07:23,960 --> 00:07:26,480 Speaker 1: Thanks Nathan five of seven on Wall Street. Fantime to 131 00:07:26,560 --> 00:07:28,880 Speaker 1: bring in Michael Barr with more on what else is 132 00:07:28,880 --> 00:07:31,559 Speaker 1: going on in New York had around the world. John, 133 00:07:31,600 --> 00:07:34,000 Speaker 1: Thank you, Sarah. The gunman who killed ten black people 134 00:07:34,040 --> 00:07:36,920 Speaker 1: in a racist attack at a Buffalo supermarket has been 135 00:07:37,000 --> 00:07:40,760 Speaker 1: charged with federal hate crimes that could potentially carry a 136 00:07:40,880 --> 00:07:44,160 Speaker 1: death penalty the Department of Justice. As eighteen year old 137 00:07:44,160 --> 00:07:47,760 Speaker 1: Peyton Gendren told investigators as gold was to kill as 138 00:07:47,800 --> 00:07:51,720 Speaker 1: many black people as possible. Attorney General Merrick Girland visited 139 00:07:51,760 --> 00:07:55,200 Speaker 1: at the Top supermarket where the shooting happened. Hate fueled 140 00:07:55,280 --> 00:07:59,000 Speaker 1: acts of violence terrorized not only the individuals who are 141 00:07:59,040 --> 00:08:06,360 Speaker 1: all attacked, but entire communities. Hate brings immediate devastation and 142 00:08:06,640 --> 00:08:11,720 Speaker 1: it inflicts lasting fear. Attorney General Garland places flowers at 143 00:08:11,720 --> 00:08:15,880 Speaker 1: a memorial and met with families. Lawyers for British socialite 144 00:08:15,920 --> 00:08:18,720 Speaker 1: Galaine Maxwell, saying she should face no more than four 145 00:08:18,760 --> 00:08:21,880 Speaker 1: to five years in prison at sentencing later this month 146 00:08:21,960 --> 00:08:25,800 Speaker 1: for her role in financier Jeffrey Epstein's sex abuse of 147 00:08:25,880 --> 00:08:28,880 Speaker 1: teenage girls. Epstein took his own life in August of 148 00:08:28,920 --> 00:08:32,439 Speaker 1: twenty nineteen while awaiting a sex trafficking trial in Manhattan. 149 00:08:32,920 --> 00:08:35,840 Speaker 1: The role of former Vice President Mike Pence will be 150 00:08:35,880 --> 00:08:39,200 Speaker 1: a major focus of today's congressional hearing on last year's 151 00:08:39,200 --> 00:08:42,800 Speaker 1: Capitol riot. The January six committee will focus on the 152 00:08:42,840 --> 00:08:45,959 Speaker 1: pressure put on Pence that day and includes efforts to 153 00:08:46,040 --> 00:08:50,200 Speaker 1: keep PINNs some certifying President Biden's election victory. The House 154 00:08:50,280 --> 00:08:54,920 Speaker 1: January six Select Committee released videos showing Republican Georgia Representative 155 00:08:55,200 --> 00:08:59,240 Speaker 1: Barry Loudermilk leading constituents on a tour around the Capitol 156 00:08:59,280 --> 00:09:02,840 Speaker 1: complex on January five. The committee claim one of the 157 00:09:02,880 --> 00:09:05,720 Speaker 1: participants in the tour marched the Capitol the next day 158 00:09:06,080 --> 00:09:09,680 Speaker 1: and made detailed threats against members of Congress. New York 159 00:09:09,679 --> 00:09:13,840 Speaker 1: Democratic Congress Member Alexandria Ocassio Cortez. The fact that he 160 00:09:13,920 --> 00:09:16,920 Speaker 1: was inviting and letting people in, that he did not 161 00:09:17,080 --> 00:09:20,440 Speaker 1: know when the capital was quotes to the public. The 162 00:09:20,480 --> 00:09:22,679 Speaker 1: fact that he was giving a tour at all is 163 00:09:23,240 --> 00:09:30,080 Speaker 1: extremely concerning, Representative Ocassio Cortez spoke to ABC. Congressman louder 164 00:09:30,120 --> 00:09:33,640 Speaker 1: Milk has denied any wrongdoing. COVID vaccines for infants and 165 00:09:33,679 --> 00:09:36,640 Speaker 1: toddlers from Moderna and Fiser one support from a panel 166 00:09:36,880 --> 00:09:40,800 Speaker 1: of US regulatory advisors. The Committee advising the FDA voted 167 00:09:40,920 --> 00:09:45,520 Speaker 1: unanimously in favor of visors three dose vaccine for youngsters 168 00:09:45,760 --> 00:09:48,360 Speaker 1: ages six months through four years, and gave a strong 169 00:09:48,440 --> 00:09:52,680 Speaker 1: endorsement to Moderna's two dose for children six months through 170 00:09:52,760 --> 00:09:55,440 Speaker 1: five years. Global News twenty four hours a day on 171 00:09:55,520 --> 00:09:59,319 Speaker 1: air and on Bloomberg Quicktake, powered by more than journalists, 172 00:09:59,320 --> 00:10:02,040 Speaker 1: analysts and more in a hundred twenty countries. Michael Bard, 173 00:10:02,080 --> 00:10:09,760 Speaker 1: this is Bloomberg, John Michael, thank you, Roll Street time 174 00:10:09,800 --> 00:10:13,240 Speaker 1: for the Bloomberg Sports Update. And here's John Stes. Thanks Jad. 175 00:10:13,280 --> 00:10:15,600 Speaker 1: It's not offen. You see a TV thirty games over 176 00:10:15,679 --> 00:10:18,600 Speaker 1: five hundred in mid June. But the Yankees are forty 177 00:10:18,720 --> 00:10:21,240 Speaker 1: six and sixteen at the stadium and Aaron Judge home 178 00:10:21,320 --> 00:10:23,840 Speaker 1: run first any this twenty five. That's seven more than 179 00:10:23,880 --> 00:10:26,480 Speaker 1: anyone else in the majors. Fifth, that ain't three run 180 00:10:26,559 --> 00:10:29,679 Speaker 1: shot for Kyle Agashioka, who had not homer all year 181 00:10:30,160 --> 00:10:32,440 Speaker 1: until he hit two just this past Sunday, and now 182 00:10:32,480 --> 00:10:34,720 Speaker 1: he's got a third. Yanks pe Tampa Bay four to three, 183 00:10:35,040 --> 00:10:37,559 Speaker 1: Nestor Cortez the win of the Safe for Clay Homes 184 00:10:37,559 --> 00:10:39,840 Speaker 1: at City Field. A night to forget for the Mets, 185 00:10:39,880 --> 00:10:42,679 Speaker 1: who lost in Milwaukee ten to two. In Atlanta one again, 186 00:10:42,720 --> 00:10:44,960 Speaker 1: the Braves are fourteen and oh in June, and they're 187 00:10:45,000 --> 00:10:47,559 Speaker 1: now just four games behind the Mets. Second night in 188 00:10:47,559 --> 00:10:50,120 Speaker 1: the row and near no hit her the Dodgers, Tyler 189 00:10:50,200 --> 00:10:53,120 Speaker 1: Anderson lost it when Shoheyo Tani hit a triple with 190 00:10:53,280 --> 00:10:55,160 Speaker 1: one out in the ninth inning overtime to start the 191 00:10:55,160 --> 00:10:57,719 Speaker 1: Stanley Cup Final in Denver, Colorado. Blew at three one, 192 00:10:57,720 --> 00:11:00,480 Speaker 1: wim We got a goal from Andre burakoff game minute 193 00:11:00,480 --> 00:11:03,040 Speaker 1: twenty three and ot for a four three game one 194 00:11:03,160 --> 00:11:06,320 Speaker 1: victory over Tampa Bay. Tonight in Boston, it's Game six 195 00:11:06,360 --> 00:11:09,280 Speaker 1: of the NBA Finals. Either Golden State wins the championship 196 00:11:09,400 --> 00:11:11,040 Speaker 1: or they go back to the Bay area for a 197 00:11:11,080 --> 00:11:13,640 Speaker 1: Game seven with Red Sunday and what a sports day 198 00:11:13,920 --> 00:11:16,480 Speaker 1: in Boston because this morning they tee off to start 199 00:11:16,520 --> 00:11:19,199 Speaker 1: the US Open golf at the country Club of Brookline, 200 00:11:19,520 --> 00:11:22,440 Speaker 1: of course, that first hosted the Open in nineteen thirteen, 201 00:11:22,520 --> 00:11:25,439 Speaker 1: with a victory by Brooklyn native Francis Weamanton in a 202 00:11:25,520 --> 00:11:28,640 Speaker 1: movie about that, Rory Makaroy looking forward to playing in 203 00:11:28,840 --> 00:11:31,720 Speaker 1: historic of course. That is what's so good about golf 204 00:11:32,040 --> 00:11:35,559 Speaker 1: is the history in the tradition and these stories. Um, 205 00:11:35,600 --> 00:11:37,319 Speaker 1: you know the fact that you know he grew up 206 00:11:37,320 --> 00:11:41,160 Speaker 1: just off the seventeen pole here um and we're still 207 00:11:41,200 --> 00:11:43,439 Speaker 1: talking about it to this day, over a hundred years old. 208 00:11:43,559 --> 00:11:45,800 Speaker 1: Like that's so cool. That's the great thing about this sport. 209 00:11:45,840 --> 00:11:47,880 Speaker 1: Hawkeroy won last week. He's the betting favorite to win 210 00:11:47,960 --> 00:11:49,959 Speaker 1: the Open. Has an early tea time today, so does 211 00:11:49,960 --> 00:11:54,120 Speaker 1: defending champ John Ron Johns Dashaward Bloomberg Sports. John, all right, 212 00:11:54,160 --> 00:11:56,120 Speaker 1: thanks John, Ahead of the cans show up and down. 213 00:11:56,120 --> 00:12:00,199 Speaker 1: Futures down five hundred seventy seven points as futures they're 214 00:12:00,240 --> 00:12:03,480 Speaker 1: down blind the nasdack futures down three hundred seven. This 215 00:12:03,559 --> 00:12:08,439 Speaker 1: is Bloomberg. Just to get a Bloomberg day break, We'll 216 00:12:08,440 --> 00:12:11,199 Speaker 1: be joined by Dan Bors, chief market strategist at B 217 00:12:11,520 --> 00:12:14,880 Speaker 1: and P. Whill got his stud the investing landscape in 218 00:12:14,920 --> 00:12:24,839 Speaker 1: this new regime. Markets headlines and breaking news twenty four 219 00:12:24,880 --> 00:12:27,960 Speaker 1: hours a day at Bloomberg dot Com, the Bloomberg Business 220 00:12:27,960 --> 00:12:37,480 Speaker 1: apt and at Bloomberg Quick Take. He's a Bloomberg Business Flash. 221 00:12:38,000 --> 00:12:40,720 Speaker 1: Nathan Hagar, Well, so much for the post Fed rally 222 00:12:40,800 --> 00:12:44,000 Speaker 1: futures this morning. You're signaling a route in stocks today 223 00:12:44,040 --> 00:12:47,080 Speaker 1: after the Fed signaled a willingness to accept the recession. 224 00:12:47,600 --> 00:12:52,400 Speaker 1: And arise in unemployment. In its resolve to contain elevated inflation, 225 00:12:52,679 --> 00:12:55,320 Speaker 1: we checked the markets every fifteen minutes during the trading day. 226 00:12:55,320 --> 00:12:58,240 Speaker 1: On bloomberg SMP futures now or down eighty six points 227 00:12:58,320 --> 00:13:01,760 Speaker 1: or two point three percent, futures down five forty six. 228 00:13:01,840 --> 00:13:04,320 Speaker 1: Nastat future is lowered by three n eighteen points, that 229 00:13:04,400 --> 00:13:07,680 Speaker 1: is a drop of two point seven percent. The tenure 230 00:13:07,720 --> 00:13:10,240 Speaker 1: Treasury is down twenty eight thirty seconds, the yield three 231 00:13:10,240 --> 00:13:13,040 Speaker 1: point nine percent yield on the two year three point 232 00:13:13,120 --> 00:13:16,040 Speaker 1: three one percent Nimex screws down two tenths per cent, 233 00:13:16,120 --> 00:13:18,280 Speaker 1: or twenty six cents at a hundred fifteen dollars eight 234 00:13:18,280 --> 00:13:21,040 Speaker 1: cents of barrel comes. Gold is up nine tenths per 235 00:13:21,040 --> 00:13:23,440 Speaker 1: cent or fifteen dollars forty cents. At eighteen thirty five, 236 00:13:23,480 --> 00:13:26,360 Speaker 1: Even announced the euro one point zero four one one 237 00:13:26,400 --> 00:13:29,320 Speaker 1: against the dollar British pound one point zero six ahead 238 00:13:29,320 --> 00:13:31,560 Speaker 1: of a Bank of England decision later this morning. The 239 00:13:31,640 --> 00:13:34,400 Speaker 1: yen is at one thirty two point eight seven. At 240 00:13:34,400 --> 00:13:36,680 Speaker 1: eight thirty Wall Street time, we get weekly jobless claims, 241 00:13:36,679 --> 00:13:39,000 Speaker 1: along with reports on housing starts and building permits, and 242 00:13:39,040 --> 00:13:42,840 Speaker 1: the Philadelphia FEDS business outlook Kroger reports earnings before the 243 00:13:42,840 --> 00:13:45,720 Speaker 1: opening bell and will get results from Adobe after the close. 244 00:13:46,080 --> 00:13:48,800 Speaker 1: That's a Bloomberg Business Flash. Now here's Michael Barr with 245 00:13:48,880 --> 00:13:51,280 Speaker 1: Forum What's going on around the world. Michael, good morning, 246 00:13:51,360 --> 00:13:54,640 Speaker 1: Good morning, Nathan. The January six Committee is plunging into 247 00:13:54,679 --> 00:13:57,920 Speaker 1: Donald Trump's efforts to pressure your Vice president Mike Benz 248 00:13:58,080 --> 00:14:02,360 Speaker 1: to reject the electoral held. At today's hearing, testimony is 249 00:14:02,400 --> 00:14:06,040 Speaker 1: expected from the Vice President's Council Greg Jacob and a 250 00:14:06,120 --> 00:14:10,600 Speaker 1: retired federal judge, Michael Luddig, who called the plan incorrect 251 00:14:10,640 --> 00:14:14,640 Speaker 1: at every turn, COVID vaccines for infants, hand toddlers from 252 00:14:14,640 --> 00:14:17,480 Speaker 1: MODERNA and finds her one support from a panel of 253 00:14:17,600 --> 00:14:21,560 Speaker 1: US regulatory advisors. In baseball, the red Hot Yankees one again. 254 00:14:21,640 --> 00:14:24,760 Speaker 1: The Mets lost along with the Nationals, Orioles and Giants. 255 00:14:24,960 --> 00:14:27,360 Speaker 1: The Red Sox beat the A's in Game one of 256 00:14:27,400 --> 00:14:30,520 Speaker 1: the NHL Final. The Avalanche beat the Lightning and overtime. 257 00:14:30,560 --> 00:14:33,560 Speaker 1: For three Global News twenty four hours a day on 258 00:14:33,760 --> 00:14:37,320 Speaker 1: air and on Bloomberg Quicktake, powered by more than twenty 259 00:14:37,400 --> 00:14:40,000 Speaker 1: seven hundred journalists and analysts in more than one d 260 00:14:40,120 --> 00:14:43,680 Speaker 1: twenty countries. I'm Michael Barr, and this is Bloomberg, John Michael, 261 00:14:43,720 --> 00:14:46,080 Speaker 1: thank you. Find twenty on Wall Street. We are live 262 00:14:46,080 --> 00:14:50,080 Speaker 1: from the Bloomberg in Trantbroker Studios. This is Bloomberg Daybreak. 263 00:14:50,560 --> 00:14:53,760 Speaker 1: Traders seem to be giving at their initial optimism over 264 00:14:53,840 --> 00:14:57,360 Speaker 1: FED share trum pal's comments that super sized rate hikes 265 00:14:57,360 --> 00:14:59,720 Speaker 1: won't be the norm. Let's get you set up for 266 00:14:59,760 --> 00:15:02,400 Speaker 1: the trading day ahead. Now we're joined by Dan Morris, 267 00:15:02,440 --> 00:15:06,920 Speaker 1: chief market strategist at B and B. Parabout asset management. Dan, 268 00:15:07,040 --> 00:15:10,840 Speaker 1: why do you change in sentiment from yesterday to the 269 00:15:10,880 --> 00:15:14,960 Speaker 1: futures this morning? Firmly in the rent? Yeah? Well, I 270 00:15:14,960 --> 00:15:17,440 Speaker 1: guess you could always find a bit of news to 271 00:15:17,640 --> 00:15:20,400 Speaker 1: focus on, be a positive or negative. And I think 272 00:15:20,720 --> 00:15:22,840 Speaker 1: at this point at least people seem to be picking 273 00:15:22,920 --> 00:15:24,480 Speaker 1: up on the on the recession. Even if you're not 274 00:15:24,480 --> 00:15:27,280 Speaker 1: going to get a hundred basis point hikes, Um, we're 275 00:15:27,280 --> 00:15:30,560 Speaker 1: actually still modestly constructive. So I think the key question 276 00:15:30,680 --> 00:15:33,840 Speaker 1: is you know now that the FED maybe has caught 277 00:15:33,880 --> 00:15:36,480 Speaker 1: up to where it needs to be after having been 278 00:15:36,520 --> 00:15:38,920 Speaker 1: behind the curve up to now, you know, is that enough? 279 00:15:38,960 --> 00:15:42,240 Speaker 1: Are they at the right level? Is the trajectory the 280 00:15:42,360 --> 00:15:45,400 Speaker 1: right one to get inflation? Down or contrarily, do you 281 00:15:45,400 --> 00:15:47,600 Speaker 1: think it's not enough they're going to have to go higher? 282 00:15:47,680 --> 00:15:50,760 Speaker 1: It is going to take a recession to get inflation down. 283 00:15:50,840 --> 00:15:53,880 Speaker 1: So that that's really the judgment. And I guess on 284 00:15:53,920 --> 00:15:55,720 Speaker 1: the minute, on the hour of the market seems to 285 00:15:55,720 --> 00:15:58,560 Speaker 1: to change which view it has. Okay, with a recession, 286 00:15:58,840 --> 00:16:01,040 Speaker 1: the first question we have to ask how deep and 287 00:16:01,080 --> 00:16:05,120 Speaker 1: how long? Well, if you look at the components, you 288 00:16:05,240 --> 00:16:08,920 Speaker 1: basically what's driving core inflation? Uh? And the assessment has 289 00:16:08,960 --> 00:16:10,920 Speaker 1: got to be, you know, how much of those really 290 00:16:11,440 --> 00:16:13,560 Speaker 1: could should turn out to be temporary? I mean, the 291 00:16:13,840 --> 00:16:15,920 Speaker 1: goods inflation should turn out to be temporary, but we 292 00:16:15,960 --> 00:16:18,400 Speaker 1: know there's some of these more persistent factors in particularly 293 00:16:18,640 --> 00:16:21,240 Speaker 1: and also it seemed to have spooked the Fed last 294 00:16:21,240 --> 00:16:24,360 Speaker 1: week was the increase in shelter Uh So how much 295 00:16:24,920 --> 00:16:26,600 Speaker 1: you know, how big of a recession do you need 296 00:16:26,640 --> 00:16:29,720 Speaker 1: to do to get the shelter prices to fall and 297 00:16:29,800 --> 00:16:33,800 Speaker 1: that component, the rent component of core PC to fall. 298 00:16:33,960 --> 00:16:35,680 Speaker 1: And you know, I think that's going to be the 299 00:16:36,120 --> 00:16:38,160 Speaker 1: key assessment. But you know, just to be clear, we're 300 00:16:38,200 --> 00:16:42,480 Speaker 1: not expecting a recession. Okay, Now, how does this change 301 00:16:42,520 --> 00:16:46,400 Speaker 1: the investment landscape? With a more aggressive typing policy from 302 00:16:46,400 --> 00:16:49,120 Speaker 1: the Fed, you say, avoiding a recession at this point, 303 00:16:51,560 --> 00:16:54,400 Speaker 1: if again, if you think that this is enough, and 304 00:16:54,480 --> 00:16:56,680 Speaker 1: really what we've seen so far really over the course 305 00:16:56,680 --> 00:16:59,320 Speaker 1: of the year with this reset, you know, in policy 306 00:16:59,400 --> 00:17:01,960 Speaker 1: rates and particul the increasing real rates, you know, that's 307 00:17:02,000 --> 00:17:05,200 Speaker 1: had primarily an impact on valuations and on on growth 308 00:17:05,240 --> 00:17:08,199 Speaker 1: stock valuations which have fallen dramatically, But now they're at 309 00:17:08,400 --> 00:17:11,400 Speaker 1: at reasonable levels. So if you think real rates aren't 310 00:17:11,400 --> 00:17:12,879 Speaker 1: going to go up any further, that the Fed is 311 00:17:12,880 --> 00:17:16,280 Speaker 1: not going to hike anymore, you're actually pretty good valuations. 312 00:17:16,320 --> 00:17:19,639 Speaker 1: The earnings outlook from that point of view is still fine. 313 00:17:19,960 --> 00:17:22,080 Speaker 1: So I think you can have a modestly constructive view 314 00:17:22,080 --> 00:17:24,320 Speaker 1: on equities, which which we do. It's only in the 315 00:17:24,400 --> 00:17:27,760 Speaker 1: contrary scenario that either you think you need more rate hikes, 316 00:17:27,760 --> 00:17:29,920 Speaker 1: in which valuations would be at risk again, and then 317 00:17:30,040 --> 00:17:32,639 Speaker 1: it would get arguably even worse, because at that point 318 00:17:32,920 --> 00:17:35,360 Speaker 1: you're earnings estaments would start to follow worse. So far, 319 00:17:35,400 --> 00:17:38,199 Speaker 1: they've actually continued to rise despite everything that's happened so 320 00:17:38,240 --> 00:17:40,560 Speaker 1: far this year. So what sectors are you looking to 321 00:17:40,760 --> 00:17:45,440 Speaker 1: right now? We don't have any specific sector allocations and 322 00:17:45,560 --> 00:17:49,879 Speaker 1: more geographics that we're overweight in Japan and China, and 323 00:17:49,960 --> 00:17:54,040 Speaker 1: that's based on one UH and absolute terms attractive valuations. 324 00:17:54,080 --> 00:17:56,040 Speaker 1: You know, if if the US and Europe about average, 325 00:17:56,080 --> 00:17:59,560 Speaker 1: you can argue that Japan, e M China are below average. 326 00:17:59,600 --> 00:18:02,359 Speaker 1: So that's a clear advantage. And also just the difference 327 00:18:02,359 --> 00:18:04,960 Speaker 1: in monetary policy outlook. You know, it said clearly hiking 328 00:18:04,960 --> 00:18:07,840 Speaker 1: the e CBS, you know, ramping up, whereas in Japan 329 00:18:07,840 --> 00:18:10,679 Speaker 1: and China they've they've got a bit more room, they 330 00:18:10,680 --> 00:18:12,800 Speaker 1: can be more patient, and so that's going to be 331 00:18:12,800 --> 00:18:15,320 Speaker 1: more supportive for equity markets. Do you have a view 332 00:18:15,359 --> 00:18:19,639 Speaker 1: for the dollar? Is it higher dollar for the foreseeable future? 333 00:18:19,760 --> 00:18:24,159 Speaker 1: Given those great differentials, it really shouldn't from here. I 334 00:18:24,160 --> 00:18:26,320 Speaker 1: mean clearly, the dollar over the course of you know, 335 00:18:26,400 --> 00:18:29,680 Speaker 1: the last year has continually had to price in these 336 00:18:29,680 --> 00:18:32,639 Speaker 1: writing expectations. But that's actually your historical pattern. As you 337 00:18:32,720 --> 00:18:35,200 Speaker 1: go into your first hike, you know, the dollar tends 338 00:18:35,240 --> 00:18:37,680 Speaker 1: to strengthen. Once the cycle actually starts, it tends to weaken. 339 00:18:37,760 --> 00:18:40,639 Speaker 1: And I think there's two reasons that hasn't exactly happened 340 00:18:40,720 --> 00:18:44,200 Speaker 1: this time. One, we kept or keep having to reset 341 00:18:44,200 --> 00:18:47,240 Speaker 1: our expectations higher. But once we're at that final point 342 00:18:47,960 --> 00:18:50,000 Speaker 1: that should be over. And then also we've had you 343 00:18:50,040 --> 00:18:52,520 Speaker 1: know a bit of risk off just because of the geopolitics, 344 00:18:52,520 --> 00:18:55,160 Speaker 1: and you know dollar tends to strengthening those environments. So 345 00:18:55,280 --> 00:18:59,160 Speaker 1: on the assumption the geopolitics at least doesn't get worse, uh, 346 00:18:59,200 --> 00:19:02,080 Speaker 1: and also the assumption we don't have yet more increases 347 00:19:02,119 --> 00:19:04,880 Speaker 1: and expectations for FED funds. You know, historically the dollar 348 00:19:04,960 --> 00:19:08,159 Speaker 1: does weaken. Let's switch the volatility with the VIX, the 349 00:19:08,200 --> 00:19:12,800 Speaker 1: Wall Street fear gage this morning. How much more elevated 350 00:19:12,840 --> 00:19:16,240 Speaker 1: do you think it it will be? Well, I think 351 00:19:16,640 --> 00:19:19,800 Speaker 1: that really reflects kind of the surprise that we've had 352 00:19:19,800 --> 00:19:22,040 Speaker 1: over the last week with with this last FED meeting. 353 00:19:22,080 --> 00:19:24,919 Speaker 1: I mean historically that I think they tend from the 354 00:19:24,960 --> 00:19:27,600 Speaker 1: central banks is to communicate well ahead of time so 355 00:19:27,640 --> 00:19:30,520 Speaker 1: you don't surprise the markets with with a move that 356 00:19:30,560 --> 00:19:33,320 Speaker 1: they hadn't anticipated, and that clearly wasn't the case this time, 357 00:19:33,359 --> 00:19:36,600 Speaker 1: and so that surprise feeds through into your volatility and 358 00:19:36,720 --> 00:19:39,960 Speaker 1: create indicators pretty much across the board. If at this 359 00:19:40,040 --> 00:19:44,200 Speaker 1: point hopefully no more surprises, volatility really should come back 360 00:19:44,240 --> 00:19:47,960 Speaker 1: to Dan Morris, chief market strategist at Big MP parabout 361 00:19:48,000 --> 00:19:50,639 Speaker 1: asset management. Thanks they had appreciate it ahead of the 362 00:19:50,680 --> 00:19:54,720 Speaker 1: over Wall Street down futures five hundred sixties six points lower, 363 00:19:54,920 --> 00:19:57,760 Speaker 1: s and B futures down that has their futures right 364 00:19:57,800 --> 00:20:06,200 Speaker 1: now points lower. You're listening the Bloomberg Daybreak and the 365 00:20:06,200 --> 00:20:09,840 Speaker 1: Bloomberg Weather from Rob Caroline privately. Mostly cloudy today, chance 366 00:20:09,920 --> 00:20:13,840 Speaker 1: of a shower or a thunderstorm. High temperature today seventy 367 00:20:13,920 --> 00:20:26,240 Speaker 1: five in eighty cloudy tonight blows around seventy. Broadcasting live 368 00:20:26,440 --> 00:20:30,399 Speaker 1: from the Bloomberg Interactive Broker Studio in New York, Bloomberg 369 00:20:30,400 --> 00:20:34,480 Speaker 1: E Living Freedom to Washington, d C, Bloomberg to Boston, 370 00:20:34,600 --> 00:20:37,960 Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg nine 371 00:20:38,080 --> 00:20:41,320 Speaker 1: sixty to the Country Sirius XM Chad one nine and 372 00:20:41,400 --> 00:20:44,720 Speaker 1: around the globe to Bloomberg Business app and Bloomberg Radio 373 00:20:44,880 --> 00:20:54,040 Speaker 1: dot Com. This is Bloomberg Daybreak. It's five thirty on 374 00:20:54,119 --> 00:20:57,000 Speaker 1: Wall Street. Good morning. I'm John Tucker, I'm Nathan Hager. 375 00:20:57,040 --> 00:20:59,280 Speaker 1: We're about four hours away from the open of US trading. 376 00:20:59,359 --> 00:21:00,879 Speaker 1: Let's get you up to date on the news you 377 00:21:00,920 --> 00:21:03,160 Speaker 1: need to know. At this hour, the post fed rate 378 00:21:03,240 --> 00:21:06,919 Speaker 1: hike rally appears. Over US features are sliding Following US 379 00:21:06,920 --> 00:21:09,600 Speaker 1: Today's games, which halted a five day ten percent route 380 00:21:09,600 --> 00:21:12,960 Speaker 1: in the smp J palen, the fedlifted rate seventy basis 381 00:21:13,000 --> 00:21:17,360 Speaker 1: points of the biggest increase since Former Richmond FED president 382 00:21:17,400 --> 00:21:20,800 Speaker 1: Jeffrey Lanker says policymakers now face the real reality of 383 00:21:20,800 --> 00:21:25,359 Speaker 1: a recession. They dropped a critical sentence indicating they're not 384 00:21:25,480 --> 00:21:28,640 Speaker 1: certain they can do this soft landing that that's an 385 00:21:28,640 --> 00:21:31,439 Speaker 1: indication that they think they they're running the risk of 386 00:21:31,520 --> 00:21:35,879 Speaker 1: a recession. Former Richmond FED President Jeffrey Lanker says rates 387 00:21:35,920 --> 00:21:38,200 Speaker 1: need to go up to six percent to have any 388 00:21:38,280 --> 00:21:41,960 Speaker 1: chance of restraining inflation and Google him. Chief Investment Officers 389 00:21:41,960 --> 00:21:46,320 Speaker 1: Scott Miners says the market is obsessed with inflation. Every 390 00:21:46,320 --> 00:21:50,080 Speaker 1: time we get another bad piece of news on inflation 391 00:21:50,240 --> 00:21:54,840 Speaker 1: which is higher than expectation than we're we're forcing the 392 00:21:54,880 --> 00:21:58,879 Speaker 1: Fed to ratchet up uh their pace or the degree 393 00:21:58,920 --> 00:22:02,520 Speaker 1: of tightening the they're doing. Google him. Chief Investment Officers 394 00:22:02,560 --> 00:22:05,560 Speaker 1: Scott Miners says there are cracks appearing in the credit 395 00:22:05,600 --> 00:22:08,639 Speaker 1: world and the worst is probably not over. The Swiss 396 00:22:08,720 --> 00:22:11,480 Speaker 1: National Bank unexpectedly raised interest rates john for the first 397 00:22:11,480 --> 00:22:14,720 Speaker 1: time since two thousand seven. Policymakers opted to join the 398 00:22:14,720 --> 00:22:18,040 Speaker 1: global bandwagon of monetary tightening, lifting the rate by fifty 399 00:22:18,080 --> 00:22:21,480 Speaker 1: basis points to the policy rate to zero negative zero 400 00:22:21,520 --> 00:22:23,800 Speaker 1: points to five percent. And we'll hear from the Bank 401 00:22:23,840 --> 00:22:26,280 Speaker 1: of England and about ninety minutes from now, accounamis for 402 00:22:26,359 --> 00:22:29,120 Speaker 1: a canceling the b o E will deliver a fifth 403 00:22:29,200 --> 00:22:32,040 Speaker 1: straight rate hike. In corporate news, and it's a big 404 00:22:32,119 --> 00:22:34,920 Speaker 1: day for Twitter and Elon Musk. Let's get more line 405 00:22:34,920 --> 00:22:37,720 Speaker 1: from Bloomberg's Vernita Young. Good morning, Rinita, Good morning. Nathan. 406 00:22:37,800 --> 00:22:40,880 Speaker 1: Elon Musk is addressing Twitter employees for the first time 407 00:22:40,920 --> 00:22:43,600 Speaker 1: today since agreeing to buy the company for forty four 408 00:22:43,640 --> 00:22:46,920 Speaker 1: billion dollars. At the virtual meeting, Musk will take questions 409 00:22:46,960 --> 00:22:50,679 Speaker 1: directly from employees, many of who have not been happy 410 00:22:50,720 --> 00:22:54,479 Speaker 1: with him lately. Meantime, Twitter CEO recently announced a series 411 00:22:54,520 --> 00:22:58,240 Speaker 1: of cost cutting measures, including canceling the company wide retreat 412 00:22:58,320 --> 00:23:01,240 Speaker 1: that was scheduled to happen in January twenty three and 413 00:23:01,560 --> 00:23:04,320 Speaker 1: a hiring freeze. Live in New York, I'm ready to 414 00:23:04,400 --> 00:23:07,359 Speaker 1: Young Bloomberg day Break, Thanks for day to the cosmetics giant. 415 00:23:07,359 --> 00:23:11,280 Speaker 1: Revlon has five Chapter eleven bankruptcy protection. The company owned 416 00:23:11,280 --> 00:23:14,640 Speaker 1: by billionaire Ron Perlman, has been unable to manage its 417 00:23:14,680 --> 00:23:18,760 Speaker 1: heavy deadload. SMP futures down down eighty nine points, down 418 00:23:18,800 --> 00:23:22,000 Speaker 1: futures down five D seventy five. Danstack futures are lower 419 00:23:22,040 --> 00:23:24,920 Speaker 1: by three twenty six points. The tenure treasury is down 420 00:23:25,000 --> 00:23:27,920 Speaker 1: one and six thirty seconds. The yield three point four 421 00:23:28,080 --> 00:23:30,400 Speaker 1: three percent yield on the two year three point three 422 00:23:30,480 --> 00:23:33,359 Speaker 1: five local headlines and a check of sports up next. 423 00:23:33,560 --> 00:23:41,720 Speaker 1: This is Bloomberg. All right, thanks Nathan, and it's time 424 00:23:41,760 --> 00:23:44,320 Speaker 1: to bring in Michael Barr with Moura. What else is 425 00:23:44,359 --> 00:23:47,119 Speaker 1: going out of New York end around the world, John, 426 00:23:47,160 --> 00:23:49,880 Speaker 1: Thank you very much, sir. Federal hate crime charges were 427 00:23:49,880 --> 00:23:54,560 Speaker 1: officially filed and last months shooting at the Buffalo supermarket yesterday, 428 00:23:54,600 --> 00:23:57,520 Speaker 1: Attorney General Merrick Garland placed flowers at the scene at 429 00:23:57,520 --> 00:24:00,760 Speaker 1: the Buffalo grocery store massacre. Garl and declared it an 430 00:24:00,800 --> 00:24:05,320 Speaker 1: unmitigated intentional act of hate based murder. No one in 431 00:24:05,359 --> 00:24:08,680 Speaker 1: this country should have to live in fear that they 432 00:24:08,680 --> 00:24:12,399 Speaker 1: will go to work or shop at a grocery store 433 00:24:12,480 --> 00:24:16,800 Speaker 1: and will be attacked by someone who hates them because 434 00:24:17,000 --> 00:24:20,040 Speaker 1: of the color of their skin. A g Mary Garland 435 00:24:20,119 --> 00:24:23,560 Speaker 1: as prosecutors say, eighteen year old Peyton Gendren's goal was 436 00:24:23,600 --> 00:24:26,600 Speaker 1: to kill as many blacks as possible. Ten black people 437 00:24:26,600 --> 00:24:29,480 Speaker 1: were killed and three others were wounded. The House committee 438 00:24:29,480 --> 00:24:33,600 Speaker 1: investigating the attack on the US Capitol will resume hearings today. 439 00:24:34,040 --> 00:24:37,320 Speaker 1: They will hear from former Vice President Mike Pence's top 440 00:24:37,440 --> 00:24:40,840 Speaker 1: lawyer as it focuses on Donald Trump's pressure on Pence 441 00:24:40,880 --> 00:24:44,880 Speaker 1: to block certifying Joe Biden's presidential election. The panel will 442 00:24:44,920 --> 00:24:48,520 Speaker 1: also show testimony by Pence's chief of staff. Two US 443 00:24:48,560 --> 00:24:51,800 Speaker 1: military veterans have been captured in Ukraine. The two men 444 00:24:51,920 --> 00:24:55,320 Speaker 1: were serving as volunteers with the Ukrainian Army Unit. The 445 00:24:55,400 --> 00:24:59,919 Speaker 1: man Alexander dru Ki and Andy Heynen were reportedly captured 446 00:25:00,080 --> 00:25:04,400 Speaker 1: by Russian forces near Kharkiev. Druki's mother, Lois Druki, said 447 00:25:04,440 --> 00:25:07,159 Speaker 1: her son felt compelled to go to Ukraine to assist 448 00:25:07,240 --> 00:25:10,639 Speaker 1: in the war against Russia. He felt very strongly that 449 00:25:11,000 --> 00:25:14,800 Speaker 1: he needed to help fight for democracy wherever it was 450 00:25:14,920 --> 00:25:18,320 Speaker 1: in the world. Other Westerners have been taken prisoner during 451 00:25:18,359 --> 00:25:21,200 Speaker 1: the war, including two from the UK were sentenced to 452 00:25:21,280 --> 00:25:25,520 Speaker 1: death by Russian back separatists. COVID vaccines for infants and 453 00:25:25,680 --> 00:25:29,240 Speaker 1: toddlers from Moderna and Fiser one support from a panel 454 00:25:29,320 --> 00:25:33,240 Speaker 1: of US regulatory advisors. Meanwhile, Anthony Fauci, the chief medical 455 00:25:33,280 --> 00:25:37,200 Speaker 1: adviser to President Joe Biden, tested positive for COVID. Fauci, 456 00:25:37,320 --> 00:25:40,280 Speaker 1: who was fully vaccinated and boosted twice, is said to 457 00:25:40,320 --> 00:25:44,040 Speaker 1: be experiencing my old symptoms. Global News twenty four hours 458 00:25:44,080 --> 00:25:47,199 Speaker 1: a day on air and on Bloomberg Quicktake, powered by 459 00:25:47,240 --> 00:25:49,719 Speaker 1: more than twenty seven hundred journalists and analysts more than 460 00:25:49,720 --> 00:25:54,399 Speaker 1: a hundred twenty countries. Michael Barr and this is Bloomberg, John, Michael. Thanks, 461 00:25:58,000 --> 00:25:59,800 Speaker 1: and it is now five thirty five on the walls 462 00:25:59,840 --> 00:26:02,879 Speaker 1: for fits. Sorry for the Bloomberg Sports update, hears John Stash, 463 00:26:03,240 --> 00:26:05,800 Speaker 1: all right, John, Yankees having this amazing season, even with 464 00:26:05,920 --> 00:26:09,280 Speaker 1: some players struggling like Kyle Hegashi Yoka, who has of 465 00:26:09,400 --> 00:26:12,000 Speaker 1: justice past. Sunday was batting under one fifty without a 466 00:26:12,040 --> 00:26:14,480 Speaker 1: home run, and then three home runs in the span 467 00:26:14,560 --> 00:26:16,639 Speaker 1: of six at bats had the big glow fifth in 468 00:26:16,680 --> 00:26:20,360 Speaker 1: into the stadium after Tampa Bay woffed Isaiah Kinner Felfa 469 00:26:20,480 --> 00:26:23,680 Speaker 1: intentionally to face Iggy three run homer put the Yanks 470 00:26:23,760 --> 00:26:25,680 Speaker 1: up for nothing. They held on beat the Rays four 471 00:26:25,760 --> 00:26:28,240 Speaker 1: to three, Iron Judge with a homer, and the Yanks 472 00:26:28,640 --> 00:26:30,920 Speaker 1: have won six in a row, thirteen of fourteen their 473 00:26:31,040 --> 00:26:34,160 Speaker 1: thirty games over five hundred. Mets lost in Milwaukee ten 474 00:26:34,280 --> 00:26:37,199 Speaker 1: to two, while Atlanta won its fourteenth in a row, 475 00:26:37,359 --> 00:26:40,200 Speaker 1: moved within four games to the Mets Tuesday the Cardinals 476 00:26:40,520 --> 00:26:43,040 Speaker 1: Miles Nicholas was one out from a no hitter. Last night, 477 00:26:43,119 --> 00:26:46,520 Speaker 1: the Dodgers Tylan Anderson two outs away, lost to milhad 478 00:26:46,600 --> 00:26:49,720 Speaker 1: win Shiotani hit a triple. Stanley Cup Finals Tampa Bay 479 00:26:50,040 --> 00:26:52,280 Speaker 1: going for the three peat, Colorado's first Cup final in 480 00:26:52,359 --> 00:26:57,760 Speaker 1: twenty one years. In Denver, Game one went to overtime. GT. 481 00:26:57,880 --> 00:27:12,680 Speaker 1: Coffer down the middle, Copper Hole shoots, It's flock become 482 00:27:13,560 --> 00:27:18,200 Speaker 1: party is okay, k SC and Denver as one four three, 483 00:27:18,200 --> 00:27:20,520 Speaker 1: They're thirty and two in the playoffs. Golden State Warriors 484 00:27:20,560 --> 00:27:22,760 Speaker 1: can win the NBA Championship tonight, games six to the 485 00:27:22,800 --> 00:27:26,160 Speaker 1: finals in Boston, where this morning in the US Open begins. 486 00:27:26,200 --> 00:27:29,159 Speaker 1: Country Club of Brookline Defenny Champ, John Rahm as an 487 00:27:29,200 --> 00:27:32,320 Speaker 1: early tea time, So does Rory McElroy and Jordan's Speak. 488 00:27:32,640 --> 00:27:35,960 Speaker 1: John Stashward Bloomberg Sports, John John, thank you five thirty 489 00:27:36,000 --> 00:27:38,360 Speaker 1: seven on Wall Street Campus time for the Bloomberg Try 490 00:27:38,400 --> 00:27:41,639 Speaker 1: State Business Report. For that we're joined by Ed Quarry. 491 00:27:42,000 --> 00:27:45,440 Speaker 1: New Jersey will expand its planned property tax relief program, 492 00:27:45,600 --> 00:27:48,040 Speaker 1: providing more than two billion dollars to more than two 493 00:27:48,080 --> 00:27:51,280 Speaker 1: million households. Residents with income of up to two hundred 494 00:27:51,320 --> 00:27:54,639 Speaker 1: fifty thousand dollars will be eligible. Homeowners will get as 495 00:27:54,760 --> 00:27:57,439 Speaker 1: much as fifteen hundred bucks, Renters will get as much 496 00:27:57,480 --> 00:28:00,959 Speaker 1: as four hundred fifteen Golden Tree as That management has 497 00:28:01,000 --> 00:28:03,280 Speaker 1: been ordered to pay a one point two million dollar 498 00:28:03,400 --> 00:28:06,879 Speaker 1: bonus to a former chief operating officer. He was fired 499 00:28:06,960 --> 00:28:10,360 Speaker 1: for lying about an affair with a subordinate, making lewd comments, 500 00:28:10,480 --> 00:28:14,600 Speaker 1: and exposing himself. A Manhattan Supreme Court judges sided with 501 00:28:14,720 --> 00:28:18,240 Speaker 1: an arbitrator who said Christians work for the company entitled 502 00:28:18,320 --> 00:28:20,200 Speaker 1: him to the bonus. But the gauge of New York 503 00:28:20,240 --> 00:28:23,639 Speaker 1: state manufacturing activity shrank for a second month in a row. 504 00:28:23,720 --> 00:28:27,719 Speaker 1: In June, a measure of inflationary pressure at producers picked up. 505 00:28:27,800 --> 00:28:30,960 Speaker 1: The Federal Reserve Bank of New York's General Business Conditions 506 00:28:31,080 --> 00:28:34,880 Speaker 1: Index improved the minus one point two from minus eleven 507 00:28:35,000 --> 00:28:38,680 Speaker 1: point six. That your Bloomberg Try State Business report. I'm 508 00:28:38,880 --> 00:28:41,480 Speaker 1: Ed Corey, thanks A five thirty eight on Wall Street. 509 00:28:41,680 --> 00:28:44,680 Speaker 1: Bloomberg Radio is on the air from San Francisco to 510 00:28:44,800 --> 00:28:47,560 Speaker 1: New York, London to Hong Kong, and let's check in 511 00:28:47,640 --> 00:28:49,560 Speaker 1: out with our global insteam for some of the top 512 00:28:49,600 --> 00:28:53,480 Speaker 1: stories heard on our three hundred affiliate radio stations around 513 00:28:53,560 --> 00:28:59,080 Speaker 1: the world. I'm Steve Potus, Scott K and X in 514 00:28:59,160 --> 00:29:02,720 Speaker 1: Los Angeles. We're talking about Twitter canceling a company wide 515 00:29:02,760 --> 00:29:05,760 Speaker 1: trip to disney Land as it looks to save money. 516 00:29:06,000 --> 00:29:09,560 Speaker 1: I'm Corney Danahoe on wh S and Louisville Forwards profit 517 00:29:09,640 --> 00:29:12,280 Speaker 1: on its electric cars is being wiped out by rising 518 00:29:12,320 --> 00:29:16,040 Speaker 1: commodity costs. I'm Gina Servetti and for k CBS and 519 00:29:16,080 --> 00:29:19,840 Speaker 1: San Francisco, I'm reporting that block the payments company formerly 520 00:29:19,960 --> 00:29:23,680 Speaker 1: known as Square plans to give up it's San Francisco headquarters. 521 00:29:24,040 --> 00:29:26,480 Speaker 1: I'm Lisa Mateo and on w b Z in Boston, 522 00:29:26,640 --> 00:29:29,760 Speaker 1: I'll be reporting on why the next Tesla could cost 523 00:29:29,840 --> 00:29:32,920 Speaker 1: you even more. Tim Ed Corey on w t A 524 00:29:33,080 --> 00:29:37,280 Speaker 1: M in Cleveland, I'm reporting several midsized evans boosted Cleveland's 525 00:29:37,480 --> 00:29:42,480 Speaker 1: sports tourism industry this spring, and those are some of 526 00:29:42,520 --> 00:29:45,440 Speaker 1: The stories are Twitter. Seven hundred Bloomberg journalists and analyst 527 00:29:45,440 --> 00:29:48,520 Speaker 1: are working on this morning around the world. It is 528 00:29:49,080 --> 00:29:52,400 Speaker 1: thirty nine on Wall Street. The following is an editorial 529 00:29:52,560 --> 00:29:56,120 Speaker 1: from Bloomberg Opinion. The effort to revive the Iranian nuclear 530 00:29:56,200 --> 00:29:59,520 Speaker 1: Deal of fifteen maybe on life support after tear Round 531 00:29:59,600 --> 00:30:03,840 Speaker 1: recent removed nearly half of the cameras monitoring its nuclear facilities. 532 00:30:04,040 --> 00:30:06,920 Speaker 1: The head of the International Atomic Energy Agency said that 533 00:30:07,120 --> 00:30:10,240 Speaker 1: decision could prove a fatal blow to the pack. Well, 534 00:30:10,320 --> 00:30:13,200 Speaker 1: diplomacy shouldn't be abandoned. The U s should be using 535 00:30:13,280 --> 00:30:16,160 Speaker 1: this time to show around what the alternative to a 536 00:30:16,280 --> 00:30:20,280 Speaker 1: deal would look like without setting any redlines Publicly, President 537 00:30:20,360 --> 00:30:23,320 Speaker 1: Biden should make it clear to the Iranians that any 538 00:30:23,360 --> 00:30:26,600 Speaker 1: attempt to enrich uranium to weapons grade or to kick 539 00:30:26,640 --> 00:30:30,680 Speaker 1: out inspectors could trigger military action. Showing that it's prepared 540 00:30:30,760 --> 00:30:33,280 Speaker 1: to defend its interests in the absence of a deal 541 00:30:33,600 --> 00:30:35,960 Speaker 1: maybe the best way for the US to convince Iran 542 00:30:36,160 --> 00:30:38,800 Speaker 1: to sign one. This editorial was written by the Bloomberg 543 00:30:38,840 --> 00:30:41,960 Speaker 1: Opinion Editorial Board. For more Bloomberg Opinion, please go to 544 00:30:42,000 --> 00:30:45,480 Speaker 1: Bloomberg dot com, Slash Opinion or opean go on the 545 00:30:45,520 --> 00:30:50,240 Speaker 1: Bloomberg Terminal. This has been Bloomberg Opinion. Bloomberg Opinion editorial 546 00:30:50,320 --> 00:30:53,400 Speaker 1: is could be heard every weekly, this time terminal customers. 547 00:30:53,800 --> 00:30:55,880 Speaker 1: You can read more at O, P I N go 548 00:30:56,960 --> 00:30:59,920 Speaker 1: ahead of the open of Wall Street. After yesterday's rally, 549 00:31:00,280 --> 00:31:04,200 Speaker 1: down futures right now five hundred eighty five points lower, 550 00:31:04,760 --> 00:31:07,840 Speaker 1: the S and P futures down ninety points, and thans 551 00:31:07,920 --> 00:31:11,040 Speaker 1: that futures they're down three hundred and twenty nine points. 552 00:31:11,440 --> 00:31:14,600 Speaker 1: Tedier yielding in the US three point four three percent. 553 00:31:15,320 --> 00:31:23,480 Speaker 1: You're listening to Bloomberg Daybreak just ahead. How far into 554 00:31:23,560 --> 00:31:26,840 Speaker 1: restrictive territory does the Fed go? Will be joined by 555 00:31:26,920 --> 00:31:37,600 Speaker 1: Sarah House, senior economists at Wells Fargo. This is Daybreak, Markets, 556 00:31:37,720 --> 00:31:40,760 Speaker 1: headlines and breaking news twenty four hours a day at 557 00:31:40,800 --> 00:31:44,200 Speaker 1: Bloomberg dot com, the Bloomberg Business at and at Bloomberg 558 00:31:44,280 --> 00:31:53,640 Speaker 1: Quick Tape is a Bloomberg Business lash and Nathan Hagar. 559 00:31:53,760 --> 00:31:58,040 Speaker 1: Stocks rallied after the Fed's decision yesterday, but this morning 560 00:31:58,120 --> 00:32:02,200 Speaker 1: futures are pointing to a route with the FED signaling 561 00:32:02,240 --> 00:32:05,880 Speaker 1: willingness to accept the recession to rain in inflation. We 562 00:32:06,000 --> 00:32:08,360 Speaker 1: check the markets every fifteen minutes during the trading day 563 00:32:08,400 --> 00:32:11,480 Speaker 1: on Bloomberg. Right now, SMP futures are down eighty nine 564 00:32:11,520 --> 00:32:14,520 Speaker 1: points down, futures down five eighty DASTACK futures are lower 565 00:32:14,520 --> 00:32:17,440 Speaker 1: by three twenty five points. The tenure treasury is down 566 00:32:17,520 --> 00:32:19,880 Speaker 1: one in six thirty seconds. The yield three point four 567 00:32:20,040 --> 00:32:22,400 Speaker 1: three percent. Yield on the two year is at three 568 00:32:22,440 --> 00:32:25,200 Speaker 1: point three six percent. Nime X screwed is down four 569 00:32:25,240 --> 00:32:27,840 Speaker 1: tenths per center, forty five cents at a hundred fourteen dollars, 570 00:32:27,920 --> 00:32:30,600 Speaker 1: eighty five cents a barrel comes Gold up seven tenths 571 00:32:30,640 --> 00:32:33,480 Speaker 1: per center, thirteen dollars at eighteen thirty two eight ten 572 00:32:33,600 --> 00:32:35,960 Speaker 1: and ounce. The euro is at one point zero four 573 00:32:36,040 --> 00:32:38,680 Speaker 1: one six against the dollar, British pound one point two 574 00:32:38,720 --> 00:32:41,320 Speaker 1: one three two and again is at one thirty two 575 00:32:41,440 --> 00:32:44,560 Speaker 1: point eight five. That's a Bloomberg business flash. Now here's 576 00:32:44,560 --> 00:32:46,760 Speaker 1: Michael Barr with more on what's going on around the world. 577 00:32:46,840 --> 00:32:50,320 Speaker 1: Michael Pathan, thank you very much. The House Committee investigating 578 00:32:50,360 --> 00:32:53,880 Speaker 1: the January six month riot is holding its third public 579 00:32:53,960 --> 00:32:57,160 Speaker 1: hearing today. The panel is expected to focus on former 580 00:32:57,280 --> 00:33:01,040 Speaker 1: Vice President Pence, who faced threats by Trump's orders less 581 00:33:01,040 --> 00:33:05,280 Speaker 1: than two weeks after restarting production abbots troubled infant Formula 582 00:33:05,360 --> 00:33:08,440 Speaker 1: Plan and Sturgis, Michigan. It's now being forced to shut 583 00:33:08,520 --> 00:33:12,000 Speaker 1: it all back down again. The company says torrential storms 584 00:33:12,080 --> 00:33:16,160 Speaker 1: cause power outages and flooded parts of their facility. In baseball, 585 00:33:16,240 --> 00:33:18,920 Speaker 1: the Yankees one, the Mets lost along with the Nationals, 586 00:33:18,960 --> 00:33:22,400 Speaker 1: Orioles and Giants. The Red Sox beat the A's Game 587 00:33:22,480 --> 00:33:25,320 Speaker 1: one in the NHL Final. The Avalanche beat the Lightning 588 00:33:25,360 --> 00:33:28,400 Speaker 1: and overtime. Four three Global News twenty four hours a 589 00:33:28,520 --> 00:33:31,680 Speaker 1: day on air and on Bloomberg Quick Take, powered by 590 00:33:31,760 --> 00:33:34,760 Speaker 1: more than hundred journalists and analysts more than a hundred 591 00:33:34,800 --> 00:33:38,480 Speaker 1: twenty countries. Michael bar this is Bloomberg, John, Michael, thank you. 592 00:33:38,640 --> 00:33:41,360 Speaker 1: We are live for the Bloomberg Interact, a Broker's studios 593 00:33:41,440 --> 00:33:45,200 Speaker 1: where it is nine on Wall Street. But the Fed 594 00:33:45,240 --> 00:33:48,720 Speaker 1: shair Jerome Powell now has engineered the Central Bank's biggest 595 00:33:48,880 --> 00:33:52,920 Speaker 1: interest rate to increase since And let's take a deeper 596 00:33:53,000 --> 00:33:56,240 Speaker 1: dive into the Fed move now with Sarah House, senior 597 00:33:56,240 --> 00:33:59,479 Speaker 1: economist at Wells Fargo. Sarah, thanks for being with us 598 00:33:59,640 --> 00:34:02,560 Speaker 1: this morning. What are your major takeaways from the meeting 599 00:34:02,640 --> 00:34:05,880 Speaker 1: that we had yesterday? So I think what we saw 600 00:34:05,960 --> 00:34:09,200 Speaker 1: of the meeting was a more realistic take on what 601 00:34:09,400 --> 00:34:12,200 Speaker 1: it would take to bring down inflation, where we're going 602 00:34:12,280 --> 00:34:16,480 Speaker 1: to have to bring policy well into restrictive territory and 603 00:34:16,880 --> 00:34:20,000 Speaker 1: at least some recognition that's going to bring some pain 604 00:34:20,080 --> 00:34:22,040 Speaker 1: along the way. So if you look at the summary 605 00:34:22,080 --> 00:34:26,040 Speaker 1: of Economic projections, you had the unemployment rate beginning to 606 00:34:26,280 --> 00:34:28,440 Speaker 1: to pick up, and in the statement that SID removed 607 00:34:28,480 --> 00:34:30,880 Speaker 1: the line about they expect the labor markets to to 608 00:34:31,080 --> 00:34:33,640 Speaker 1: remain strong. So I think we saw the Fed overall 609 00:34:34,000 --> 00:34:37,879 Speaker 1: get more serious about the inflation problem ahead and recognize 610 00:34:37,920 --> 00:34:41,480 Speaker 1: that we're not going to have a painless escape, how restrictive. 611 00:34:43,400 --> 00:34:46,200 Speaker 1: So the Fed move their media estimates where RACHEL will 612 00:34:46,239 --> 00:34:48,360 Speaker 1: be at the end of this year up to a 613 00:34:48,560 --> 00:34:51,080 Speaker 1: range of three and a quarter three and a half percent. 614 00:34:51,280 --> 00:34:53,800 Speaker 1: We think that they'll go even higher. So we're estimating 615 00:34:53,880 --> 00:34:56,080 Speaker 1: that the upper bound of the said funds rate we'll 616 00:34:56,120 --> 00:34:57,960 Speaker 1: reach four percent by the end of the year, and 617 00:34:58,040 --> 00:35:00,239 Speaker 1: it will climb to four and a half per sent 618 00:35:00,360 --> 00:35:03,960 Speaker 1: by the first quarter of next year. So the Feds 619 00:35:04,000 --> 00:35:07,640 Speaker 1: looking for rates by the end of to be a 620 00:35:07,719 --> 00:35:11,320 Speaker 1: little under four percent. So not quite as aggressive on this, 621 00:35:11,600 --> 00:35:13,800 Speaker 1: but I think certainly signaling that it is going to 622 00:35:13,920 --> 00:35:17,480 Speaker 1: take that restrictive policy stamp to bring down inflation. Does 623 00:35:17,520 --> 00:35:19,800 Speaker 1: the economy really have to go through the ring or 624 00:35:19,920 --> 00:35:24,680 Speaker 1: to break the back of inflation? And is unemployment inevitable 625 00:35:24,680 --> 00:35:28,359 Speaker 1: You're gonna have to go higher, I think, given how 626 00:35:28,480 --> 00:35:31,520 Speaker 1: much of this inflation is driven by demand. So yes, 627 00:35:31,600 --> 00:35:34,880 Speaker 1: you do have some supply chain issues, particularly things like 628 00:35:34,960 --> 00:35:38,400 Speaker 1: the auto sectors, but overwhelmingly to stems from just the 629 00:35:38,520 --> 00:35:41,920 Speaker 1: robust recovery that we've seen and the inability of supply 630 00:35:42,120 --> 00:35:44,200 Speaker 1: to keep up. I think you do have to to 631 00:35:44,280 --> 00:35:47,680 Speaker 1: put policy in restrictive territory, try to slow it below 632 00:35:47,800 --> 00:35:52,200 Speaker 1: trend trend growth. So I think it is a necessary step, 633 00:35:52,400 --> 00:35:55,600 Speaker 1: and unfortunately you can't slow demand in a meaningful way, 634 00:35:56,000 --> 00:35:59,960 Speaker 1: I think without seeing that translate into softer, softer demand 635 00:36:00,080 --> 00:36:04,279 Speaker 1: for workers, which is likely to lead to higher unemployment. Yeah, 636 00:36:04,360 --> 00:36:07,800 Speaker 1: there have been some inevitable comparisons to the era of 637 00:36:08,400 --> 00:36:12,440 Speaker 1: FED share Paul Volker um are are they valid or 638 00:36:12,520 --> 00:36:16,840 Speaker 1: we really going back to those types of rights? So 639 00:36:17,080 --> 00:36:20,200 Speaker 1: I think there's a lot different in today's environment. So 640 00:36:20,600 --> 00:36:22,400 Speaker 1: one is that I think the FED has learned the 641 00:36:22,480 --> 00:36:26,399 Speaker 1: lessons of the Volca era seem similar inflation I think 642 00:36:26,520 --> 00:36:29,560 Speaker 1: that they are more eager to to quash it than 643 00:36:29,760 --> 00:36:32,399 Speaker 1: what we were seeing in the late nineteen seventies, which 644 00:36:32,400 --> 00:36:35,160 Speaker 1: allowed inflation to get so entrenched. One of the big 645 00:36:35,239 --> 00:36:38,400 Speaker 1: catalysts for the shift from what was a very well 646 00:36:38,480 --> 00:36:41,160 Speaker 1: telegraph fifty basis point move coming into this meeting to 647 00:36:41,719 --> 00:36:44,960 Speaker 1: a last minute signal for seventy five basis points was 648 00:36:45,080 --> 00:36:48,320 Speaker 1: the fact that we saw long term inflation expectations shoot 649 00:36:48,360 --> 00:36:51,640 Speaker 1: to a fourteen year high in Friday's University of Michigan 650 00:36:51,719 --> 00:36:55,480 Speaker 1: consumer sentiment survey. So that along with inflation, caused the 651 00:36:55,560 --> 00:36:58,360 Speaker 1: FED to react and shift very quickly. And so I 652 00:36:58,480 --> 00:37:01,759 Speaker 1: think that even the they are behind the curve and 653 00:37:02,000 --> 00:37:04,839 Speaker 1: they've allowed inflation to get to a forty year high, 654 00:37:05,239 --> 00:37:07,360 Speaker 1: I think they are are rapidly making up for that, 655 00:37:07,520 --> 00:37:10,520 Speaker 1: and so that should limit how far rates ultimately have 656 00:37:10,719 --> 00:37:13,040 Speaker 1: to to go. So how do you suppose this is 657 00:37:13,080 --> 00:37:15,360 Speaker 1: going to impact in the long term, at least the 658 00:37:15,560 --> 00:37:21,480 Speaker 1: the appetite for risk. Well, I think that overall we're 659 00:37:21,520 --> 00:37:25,359 Speaker 1: going to see some some some risk shifting, and we're 660 00:37:25,400 --> 00:37:28,080 Speaker 1: going to see it cool as as it does become 661 00:37:28,120 --> 00:37:30,279 Speaker 1: more apparent that the FED is going to have to 662 00:37:30,920 --> 00:37:32,640 Speaker 1: have to raise rates. So we've already seen that to 663 00:37:32,719 --> 00:37:35,000 Speaker 1: some extent that they're they're very well could be more 664 00:37:35,040 --> 00:37:37,920 Speaker 1: to come. Okay, I also wanted to answ you real 665 00:37:38,040 --> 00:37:41,240 Speaker 1: quickly if you could are cracks appearing in the treasury market. 666 00:37:41,600 --> 00:37:46,560 Speaker 1: There have been some liquidity concerns as well, so I'm 667 00:37:46,600 --> 00:37:49,399 Speaker 1: not sure about whether there are cracks being there. Of course, 668 00:37:49,480 --> 00:37:53,239 Speaker 1: we had the start of QT this month, and so 669 00:37:53,400 --> 00:37:55,800 Speaker 1: we are beginning to see to see that transition. I 670 00:37:55,880 --> 00:37:58,600 Speaker 1: think overall, you know, we are seeing a rapid shift 671 00:37:58,680 --> 00:38:01,239 Speaker 1: in policy. So the FEDS see not the most aggressive 672 00:38:01,320 --> 00:38:03,960 Speaker 1: paths of policy titan that they have seen since the 673 00:38:04,000 --> 00:38:07,359 Speaker 1: early nineteen eighties, and I think that's going to come 674 00:38:07,440 --> 00:38:11,320 Speaker 1: with some pain and some bumpsa along along the way. Yes, Sarah, 675 00:38:11,360 --> 00:38:15,200 Speaker 1: thanks very much. Appreciated. Sara House, senior economists at Wells Fargo. 676 00:38:15,600 --> 00:38:17,960 Speaker 1: Nathan all right, John, thank you. It's five fifty three 677 00:38:18,000 --> 00:38:20,360 Speaker 1: on Wall Street. It's time for our Bloomberg Law Report. 678 00:38:20,480 --> 00:38:22,719 Speaker 1: Let's get to the legal stories we're watching this morning. 679 00:38:22,760 --> 00:38:29,960 Speaker 1: From Bloomberg's Jeff Bellinger, Amazon, Uber, and Meta Platforms are 680 00:38:29,960 --> 00:38:33,960 Speaker 1: among several technology companies calling on Congress to pass permanent 681 00:38:34,080 --> 00:38:38,279 Speaker 1: protections for so called dreamers, undocumented immigrants brought to the 682 00:38:38,440 --> 00:38:42,320 Speaker 1: US as children. The Occupational Safety and Health Administration is 683 00:38:42,360 --> 00:38:47,120 Speaker 1: developing an enforcement program directed at preventing falls in all industries, 684 00:38:47,600 --> 00:38:50,719 Speaker 1: and CROCS issuing a Japan based dollar store chain for 685 00:38:50,840 --> 00:38:54,920 Speaker 1: trademark infringement. CROCS accuses the store of selling knockoffs of 686 00:38:55,000 --> 00:38:59,839 Speaker 1: its popular rubber clocks. Bloomberg Law everything you need, all 687 00:39:00,040 --> 00:39:04,640 Speaker 1: on one legal research platform, including guidance analysis and Bloomberg 688 00:39:04,719 --> 00:39:08,279 Speaker 1: Market Intelligence. Find out more at Bloomberg Law dot com. 689 00:39:09,760 --> 00:39:12,640 Speaker 1: Now another legal story we're watching. The January sixth Committee 690 00:39:12,640 --> 00:39:15,440 Speaker 1: holds its third public hearing this afternoon, laying out the 691 00:39:15,520 --> 00:39:18,880 Speaker 1: case for holding former President Donald Trump and others responsible 692 00:39:18,960 --> 00:39:22,120 Speaker 1: for instigating the violence at the Capitol. There's reportedly a 693 00:39:22,280 --> 00:39:25,080 Speaker 1: rift among committee members about whether to make a criminal 694 00:39:25,160 --> 00:39:28,280 Speaker 1: referral of Trump to the Justice Department. But a referral 695 00:39:28,440 --> 00:39:31,000 Speaker 1: is it actually needed for d o J to bring charges, 696 00:39:31,200 --> 00:39:34,320 Speaker 1: and the members are clearly united in presenting their strongest 697 00:39:34,440 --> 00:39:37,760 Speaker 1: case against the former president. For more, Bloomberg's June Grosso 698 00:39:37,840 --> 00:39:40,759 Speaker 1: speaks to Jordan Strauss, a fellow at the Croll Institute. 699 00:39:41,280 --> 00:39:44,520 Speaker 1: Regardless of whether the Committee makes a criminal referral to 700 00:39:44,600 --> 00:39:48,320 Speaker 1: the Justice Department or not. Is it pretty obvious that 701 00:39:48,520 --> 00:39:51,239 Speaker 1: what the committee is doing is trying to lay out 702 00:39:51,280 --> 00:39:54,760 Speaker 1: a roadmap for d o J to prosecute Trump. Treaty 703 00:39:54,880 --> 00:39:57,640 Speaker 1: is absolutely trying to lay out the roadmap to prosecute 704 00:39:58,040 --> 00:40:01,320 Speaker 1: the president and others in the pres its orbit. I 705 00:40:01,400 --> 00:40:04,640 Speaker 1: think it's hard to stay until they've closed their case 706 00:40:04,880 --> 00:40:08,880 Speaker 1: and until they've finished presenting information who could be charged 707 00:40:08,960 --> 00:40:11,560 Speaker 1: with what? And I think it's also very important to 708 00:40:11,640 --> 00:40:15,239 Speaker 1: remember that the standard of proof in a criminal case 709 00:40:15,560 --> 00:40:17,440 Speaker 1: is beyond a reasonable doubt. You know, when I was 710 00:40:17,480 --> 00:40:20,080 Speaker 1: at the Justice Department, I can say that the level 711 00:40:20,160 --> 00:40:24,520 Speaker 1: of certainty not just of guilt, but also that guilt 712 00:40:24,600 --> 00:40:27,359 Speaker 1: could be proven to a jury beyond a reasonable doubt 713 00:40:27,480 --> 00:40:29,960 Speaker 1: for a prosecutor before they move forward, needed to be 714 00:40:31,200 --> 00:40:32,840 Speaker 1: in the minds of the prosecutor, even though that's not 715 00:40:32,880 --> 00:40:34,959 Speaker 1: the legal standard, right, it needed to be that high 716 00:40:35,120 --> 00:40:38,080 Speaker 1: before they move forward. So there's a lot of nuanced here. 717 00:40:38,400 --> 00:40:41,440 Speaker 1: And I think that the Department thus far has taken 718 00:40:41,560 --> 00:40:45,960 Speaker 1: a very careful approach to charging and charging decisions, and 719 00:40:46,000 --> 00:40:47,520 Speaker 1: I think that's going to continue. And I think that 720 00:40:47,640 --> 00:40:53,480 Speaker 1: unless there is really really incredibly incredibly strong evidence, I 721 00:40:53,560 --> 00:40:56,279 Speaker 1: think it's unlikely the Department would elect to move forward 722 00:40:56,320 --> 00:40:59,960 Speaker 1: with charges that are that novel against someone that senior. 723 00:41:00,520 --> 00:41:03,279 Speaker 1: So then do you think that the Justice Department is 724 00:41:03,400 --> 00:41:07,440 Speaker 1: looking for more then they would normally look for in 725 00:41:07,560 --> 00:41:11,320 Speaker 1: a case, more than just you know, being convinced that 726 00:41:11,520 --> 00:41:14,120 Speaker 1: someone is guilty and that you can prove it because 727 00:41:14,200 --> 00:41:17,439 Speaker 1: they know what's at stake. So when they are high 728 00:41:17,520 --> 00:41:22,680 Speaker 1: profile or high consequence criminal defendants, they always receive more attention. 729 00:41:23,200 --> 00:41:25,960 Speaker 1: So be it a high profile of terrorism case or 730 00:41:25,960 --> 00:41:29,160 Speaker 1: a high profile securities broad case, it's always going to 731 00:41:29,560 --> 00:41:32,600 Speaker 1: receive extra layers. One of the reasons that it receives 732 00:41:32,680 --> 00:41:35,719 Speaker 1: extra layers is when you're doing something high consequence, you 733 00:41:35,760 --> 00:41:37,800 Speaker 1: want to make sure that senior leadership knows. You know, 734 00:41:37,880 --> 00:41:39,719 Speaker 1: you might want to stress test the theory of the 735 00:41:39,760 --> 00:41:41,759 Speaker 1: case a little bit more than usuals. One of the 736 00:41:41,800 --> 00:41:45,200 Speaker 1: reasons might be that you're making a novel application of 737 00:41:45,560 --> 00:41:48,040 Speaker 1: the law, or you're using a law like the dedicious 738 00:41:48,040 --> 00:41:51,120 Speaker 1: conspiracy that's just not used very often, so you know, 739 00:41:51,200 --> 00:41:54,160 Speaker 1: you combine that with the complexity of the fact finding. Yes, 740 00:41:54,440 --> 00:41:58,120 Speaker 1: I do think that they're probably receiving additional attention. That said, 741 00:41:58,360 --> 00:42:02,200 Speaker 1: Judge Garland has head that the approach of the Department 742 00:42:02,320 --> 00:42:04,239 Speaker 1: is going to be to work its way up and 743 00:42:04,360 --> 00:42:07,880 Speaker 1: to bring more complex and more meaningful cases as the 744 00:42:07,960 --> 00:42:11,919 Speaker 1: more complex and more meaningful facts submerge. And they've they've 745 00:42:11,960 --> 00:42:15,480 Speaker 1: done just that so far. Nice Jordan Krause of the 746 00:42:15,560 --> 00:42:18,799 Speaker 1: Cral Institute speaking with Bloomberg June Grosso. You can catch 747 00:42:18,880 --> 00:42:21,319 Speaker 1: more of that interview, plus analysis of the latest legal 748 00:42:21,360 --> 00:42:23,759 Speaker 1: news by listening to the Bloomberg Law Show. There's a 749 00:42:23,840 --> 00:42:26,680 Speaker 1: ten pm Eastern time on Bloomberg Radio. You can listen 750 00:42:26,760 --> 00:42:30,200 Speaker 1: anytime by subscribing to the Bloomberg Law podcast s. Andp 751 00:42:30,320 --> 00:42:33,719 Speaker 1: Futures down down eighty three point, Stole futures down five seven, 752 00:42:33,800 --> 00:42:37,040 Speaker 1: Dance Deck futures are lower by three nine points. The 753 00:42:37,120 --> 00:42:39,960 Speaker 1: tenure Treasury is down down one and nine thirty seconds. 754 00:42:40,040 --> 00:42:42,080 Speaker 1: The yield three point four or four percent yield on 755 00:42:42,120 --> 00:42:45,960 Speaker 1: the two year three point three six percent. Bloomberg Dave 756 00:42:46,000 --> 00:42:48,880 Speaker 1: break continues. This is Bloomberg