WEBVTT - Bloomberg Daybreak: May 11, 2022 - Hour 2 (Radio) 0:00:03.120 --> 0:00:06.439 Live from the Bloomberg Interacted Burger Studios. This is Bloomberg 0:00:06.519 --> 0:00:10.200 Daybreak for Wednesday, May eleven two. Coming up this hour, 0:00:10.480 --> 0:00:14.240 investors brace for this morning's reading on inflation. President Biden 0:00:14.240 --> 0:00:17.640 plans to announce new measures to combat rising food costs. 0:00:17.680 --> 0:00:20.120 Lisa Cook will be the first black woman on the 0:00:20.120 --> 0:00:22.680 Fed's Board of Governors, and Elon Musk says he would 0:00:22.720 --> 0:00:26.360 reverse Twitter's van of Donald Trump New York City, boost 0:00:26.400 --> 0:00:30.320 police presence on subways as assaults increase. Plus the Senate 0:00:30.400 --> 0:00:33.560 votes today on an abortion rights bill. I'm Michael Blarner. 0:00:33.640 --> 0:00:37.159 More ahead, I'm John Stash, Aaron Sports, Aaron Judge, the 0:00:37.280 --> 0:00:39.640 ninth Inning Hero and a thrilling Yankee win over the 0:00:39.640 --> 0:00:45.400 Blue Jays the Mets one in Washington. That's all trended 0:00:45.400 --> 0:00:49.360 ahead on Bloomberg Daybreak on Bloomberg eleven, Free on New York, 0:00:49.520 --> 0:00:54.200 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.480 --> 0:00:59.240 Bloomberg nine sixties, San Francisco, Syrius Exam one nineteen and 0:00:59.320 --> 0:01:02.080 around the world. Old on Bloomberg Radio dot Com and 0:01:02.240 --> 0:01:08.680 via the Bloomberg Business App. Good Morning, I'm Nathan Hager, 0:01:08.959 --> 0:01:11.679 and I'm Karin Moscow. US DOT Index future is on 0:01:11.720 --> 0:01:13.760 the rise this morning. We're coming up to six o 0:01:13.880 --> 0:01:15.640 one on Wall Street, and we check the markets every 0:01:15.680 --> 0:01:18.440 fifteen minutes throughout the trading day. On Bloomberg. Right now, 0:01:18.520 --> 0:01:21.520 SNP futures are at forty four points down futures have 0:01:21.520 --> 0:01:24.080 two hundred eighty eight and Nastack futures have one hundred 0:01:24.120 --> 0:01:27.080 sixty two. The decks in Germany's have one percent. The 0:01:27.120 --> 0:01:30.120 ten year treasury of fourteen thirty seconds held two point 0:01:30.160 --> 0:01:32.320 nine three percent. That yield on a two year two 0:01:32.319 --> 0:01:35.319 point five nine percent. Nine X Screwed oil is up 0:01:35.360 --> 0:01:37.520 three and a quarter percent of three dollars twenty five 0:01:37.520 --> 0:01:39.480 cents at a hundred two dollars ninety six cents a 0:01:39.560 --> 0:01:42.240 barrel call makes gold up half percent or ten dollars 0:01:42.240 --> 0:01:44.880 at eighteen fifty one and ounce. The euro one point 0:01:44.880 --> 0:01:47.160 oh five six one against the dollar, and the British 0:01:47.200 --> 0:01:50.400 pound is at one point to three seven four. Nathan 0:01:50.600 --> 0:01:54.160 Countdown is on Karen for the latest reading on inflation. 0:01:54.280 --> 0:01:56.360 In less than two and a half hours, the government 0:01:56.360 --> 0:02:00.440 issues the consumer price index for April, with inflation running 0:02:00.680 --> 0:02:03.880 at its fastest pace in decades, and Kates has a 0:02:03.920 --> 0:02:07.840 preview from our Bloomberg newsroom in Washington. In March, the 0:02:07.880 --> 0:02:10.960 CPI rose eight point five percent year over year, the 0:02:10.960 --> 0:02:14.000 most since nineteen eighty and yet Bloomberg Economics says the 0:02:14.120 --> 0:02:16.760 run up probably slowed in April, reflecting a drop and 0:02:16.800 --> 0:02:19.920 seasonally adjusted gasoline prices, but the climb down from the 0:02:19.919 --> 0:02:23.240 forty year high inflation will be stubbornly slow. Bloomberg says 0:02:23.280 --> 0:02:26.040 the inflation rate won't dip below seven percent until late 0:02:26.080 --> 0:02:28.560 in the year, keeping the Federal Reserve committed to higher 0:02:28.600 --> 0:02:32.520 interest rates. In Washington and Kate's Bloomberg Daybreak, right and 0:02:32.639 --> 0:02:34.919 thank you all, That inflation report could have a major 0:02:35.040 --> 0:02:38.160 impact on Fed policy, but for now, Cleveland FED President 0:02:38.240 --> 0:02:43.160 Larettamester says she favors steady fifty basis point rate increases. 0:02:43.680 --> 0:02:46.400 We don't go out seven five forever, right. I mean, 0:02:46.440 --> 0:02:48.799 what I'm gonna do is I think fifty the caves 0:02:48.840 --> 0:02:51.560 were going now seems about right to me. We're going 0:02:51.600 --> 0:02:55.160 to have to assess whether inflation is actually moving down, 0:02:55.600 --> 0:02:57.800 and then we'll be able to get more information after 0:02:57.880 --> 0:03:00.480 we do a couple of those to see. Cleveland Fed 0:03:00.520 --> 0:03:02.840 President Loretta Master made the comments in an interview with 0:03:02.880 --> 0:03:05.840 Bloomberg's Michael McKee and Karen Mester is soon going to 0:03:05.880 --> 0:03:08.359 have help in the battle against inflation. The Fed is 0:03:08.400 --> 0:03:11.200 now welcoming its first black woman to the Board of Governors. 0:03:11.200 --> 0:03:14.080 We get more on that from Bloomberg Stug Prisoner economist 0:03:14.160 --> 0:03:17.880 Lisa Cook. One Senate confirmation by the narrowest possible margin 0:03:19.360 --> 0:03:23.400 vote reflects a tie breaking appearance by Vice President Kamala Harris. 0:03:23.440 --> 0:03:26.559 The vote had been delayed by virus cases among Democrats. 0:03:26.840 --> 0:03:30.400 Cook had faced a United Gop campaign against her. The 0:03:30.440 --> 0:03:34.000 top Republican on the Senate Banking Committee, Pat Toomey of Pennsylvania, 0:03:34.280 --> 0:03:37.680 dismissed her record as thin on monetary policy, and he 0:03:37.760 --> 0:03:41.560 charged her withholding far left political views that risk politicizing 0:03:41.560 --> 0:03:44.280 the Central Bank. In New York Time, Doug Prisoner Bloomberg 0:03:44.360 --> 0:03:46.040 day break. All right, Doug, thank you all at the 0:03:46.040 --> 0:03:49.000 White House today, new measures are coming to help cut costs, 0:03:49.040 --> 0:03:52.640 specifically for farmers and Bloombergs. Amy Morris explains from our 0:03:53.360 --> 0:03:57.320 newsroom in Washington. President Biden wants to undercut the rising 0:03:57.400 --> 0:04:01.960 cost of food. Ukraine has twenty million tons of grain 0:04:02.520 --> 0:04:05.640 in stories and silos right now to try and figure 0:04:05.640 --> 0:04:07.400 out how to get out of the country into market, 0:04:07.440 --> 0:04:10.280 which would reduce prices around the world. Among the new 0:04:10.320 --> 0:04:14.040 initiatives double cropping insurance, which gives farmers more coverage if 0:04:14.080 --> 0:04:16.520 they plant more than one crop. The US will double 0:04:16.560 --> 0:04:20.560 its investment and domestic fertilizer production to a half billion dollars, 0:04:20.600 --> 0:04:23.760 and tools used by the USDA to reduce the use 0:04:23.760 --> 0:04:26.960 of fertilizer will be extended to more farms In Washington, 0:04:27.040 --> 0:04:29.720 I'm anymore as Bloomberg Daybreak, All right, Amy, thanks, Let's 0:04:29.760 --> 0:04:32.480 turn to Asia now. Our inflation is also in focus. 0:04:32.640 --> 0:04:35.839 China's factory gate prices rose faster than expected in April, 0:04:36.040 --> 0:04:38.160 and factory prices aren't the only ones on the rise, 0:04:38.200 --> 0:04:41.080 as we hear from Bloomberg Daybreak Asia anchor Brian Curtis, 0:04:41.320 --> 0:04:45.440 and consumer prices rose again. The CPI accelerated two point 0:04:45.480 --> 0:04:49.160 one percent, faster than a projected one point eight percent gain. 0:04:49.560 --> 0:04:53.240 The COVID lockdowns drove food and fuel costs higher. In 0:04:53.240 --> 0:04:56.599 the meantime, producer prices gained eight percent from a year earlier, 0:04:56.640 --> 0:05:00.360 compared to eight point three percent in March. It two 0:05:00.560 --> 0:05:03.960 was a little hotter than the estimate. Brian Curtis, Bloomberg Daybreak, 0:05:04.160 --> 0:05:06.039 Hey Brian, thank you all back here in the US. 0:05:06.120 --> 0:05:08.880 Earnings will also be in the spotlight when Disney reports 0:05:08.880 --> 0:05:11.800 this afternoon, and we get a preview from Bloombery's Tom Busby. 0:05:12.360 --> 0:05:15.599 Although the Entertainment Giants theme park division has been firing 0:05:15.640 --> 0:05:18.599 on all cylinders, along with most of its media businesses, 0:05:18.800 --> 0:05:21.839 analysts are a little concerned that the just completed second 0:05:21.920 --> 0:05:25.520 quarter maybe the slowest of the year for subscriber growth 0:05:25.560 --> 0:05:29.360 at the Disney Plus TV streaming service. Still forecast call 0:05:29.440 --> 0:05:33.240 for a solid one hundred thirty four point four million subscribers. 0:05:33.800 --> 0:05:36.159 Bloomberg consensus goals were just at earnings per share of 0:05:36.160 --> 0:05:39.400 a dollar eighteen revenues of just over twenty point one 0:05:39.440 --> 0:05:43.360 billion dollars. Tom Busby, Bloomberg Daybreak, All right, Tom, Thanks. 0:05:43.440 --> 0:05:44.960 Let's take a look at some stocks on the move 0:05:45.000 --> 0:05:48.599 following yesterday's earning. Shares of coin Base are down seventeen 0:05:48.680 --> 0:05:52.640 percent in early trading. Revenue at the cryptocurrency exchange missed estimates, 0:05:52.640 --> 0:05:55.119 and coin Bases also warning trading volume in the current 0:05:55.160 --> 0:05:58.040 quarter will be lower. Roadblocks shares are now a little changed. 0:05:58.080 --> 0:06:00.599 They did fall as much as four percent earlier. The 0:06:00.680 --> 0:06:03.480 video game platform aimed at preteens and teenagers that surged 0:06:03.560 --> 0:06:07.240 during the pandemic reported bookings that missed estimates well. Twitter 0:06:07.320 --> 0:06:10.440 also front and center Nathan Afer comments from Elon Musk, 0:06:10.520 --> 0:06:13.359 the world's richest man, says he would reverse former President 0:06:13.400 --> 0:06:16.720 Donald Trump's permanent ban if he takes control of the company. 0:06:16.920 --> 0:06:21.599 Panning Trump from Twitter didn't end Trump Voice, it will 0:06:21.640 --> 0:06:25.240 amplify it among the rights and this is why it 0:06:25.360 --> 0:06:28.680 is morally wrung and flat out stupid, Elon Musk said, 0:06:28.720 --> 0:06:32.200 as he believes Twitter has overstepped policing users speech and 0:06:32.240 --> 0:06:34.880 wants to push it toward a more free speech focused approach. 0:06:35.240 --> 0:06:37.120 And finally, Karen, let's fill you in on the latest 0:06:37.160 --> 0:06:39.480 on the war in Ukraine. The fighting is now starting 0:06:39.480 --> 0:06:43.599 to affect physical gas supplies. Ukraine's gas network operator says 0:06:43.640 --> 0:06:45.720 it will stop receiving fuel at one of its main 0:06:45.760 --> 0:06:49.200 metering stations because it can't control the infrastructure and territories 0:06:49.240 --> 0:06:52.480 occupied by Russia. Meantime, in Washington, the House has passed 0:06:52.480 --> 0:06:55.280 more than forty billion dollars in emergency aid to Ukraine. 0:06:55.320 --> 0:06:58.120 The Senate is likely to approve the measure next week. 0:06:58.480 --> 0:07:01.039 Looking ahead to the market. Open futures are moving higher, 0:07:01.040 --> 0:07:03.680 with SMP futures up thirty eight points, Staff futures up 0:07:03.680 --> 0:07:06.640 tun in fifty five, NASTAC futures higher by a hundred 0:07:06.720 --> 0:07:09.080 forty points again at one point one percent. The tenure 0:07:09.120 --> 0:07:12.120 Treasury is up fourteen thirty seconds. Yield on the tenure 0:07:12.240 --> 0:07:16.320 two point nine Straight ahead your latest local headlines, plus 0:07:16.320 --> 0:07:23.880 a check of sports. This is Bloomberg. That's now six 0:07:23.880 --> 0:07:26.080 oh seven on Wall Street. Were fifty five degrees in 0:07:26.160 --> 0:07:28.520 Central Park. Got an accident on the eastbound belt Parkway 0:07:28.560 --> 0:07:30.760 at Springfield Road. To keep that in mind if you're 0:07:30.760 --> 0:07:33.400 headed to Kennedy Airport. Michael Barr has more on what's 0:07:33.400 --> 0:07:35.640 going on in New York and around the world. Good morning, Michael, 0:07:35.720 --> 0:07:38.360 Good morning Nathan. The Senate is expected to vote on 0:07:38.480 --> 0:07:41.160 protecting abortion rights. It comes in the wake of elite 0:07:41.280 --> 0:07:45.360 Supreme Court opinion suggesting the majority would overturn Roe v. Wade. 0:07:45.640 --> 0:07:48.760 Today's vote is almost certain to fail, but Majority Leader 0:07:48.840 --> 0:07:52.400 Chuck Schumer wants to put senators on the record about it. 0:07:52.680 --> 0:07:56.280 Senate Minority Leader Mitch McConnell, Mr. Preme Court. If this 0:07:56.520 --> 0:07:59.840 becomes the decision, as obviously said, this is ripe for 0:08:00.040 --> 0:08:04.880 discussion in democratic bodies. We happen to be a democratic body. 0:08:05.480 --> 0:08:07.640 Shumer is proving that by having us quote on it. 0:08:08.080 --> 0:08:11.480 Senator Mitch McConnell. Governor Kathy Local has announced that New 0:08:11.560 --> 0:08:14.960 York will make thirty five million dollars available to help 0:08:15.000 --> 0:08:19.800 abortion providers boost services and security. In Connecticut, Governor Ed 0:08:19.880 --> 0:08:23.000 Lamont signed a new abortion bill into law that he 0:08:23.040 --> 0:08:27.440 says expands abortion access. When you're ready to be pregnant, 0:08:27.600 --> 0:08:31.240 whether you're ready to have that baby, we're doing everything 0:08:31.320 --> 0:08:34.600 we can to support you. That means we're providing pre 0:08:34.760 --> 0:08:39.120 natal support and support after birth. Governor Lamont called it 0:08:39.160 --> 0:08:42.120 a fundamental freedom issue that is being challenged by the 0:08:42.160 --> 0:08:45.440 Supreme Court. It's a split for Donald Trump. Back to 0:08:45.480 --> 0:08:50.120 candidates and yesterday's primaries, Representative Alex Mooney, endorsed by Trump, 0:08:50.160 --> 0:08:54.600 defeated Representative David McKinley in the GLP primary for West 0:08:54.679 --> 0:08:58.319 Virginia's second congressional district. When he spoke to his supporters 0:08:58.320 --> 0:09:03.000 in Charleston, Donald trumps West Virginia and West Virginia loves 0:09:04.520 --> 0:09:09.360 Mooney one to thirty eight percent. Republican voters in Nebraska 0:09:09.440 --> 0:09:12.520 picked Jim Pillen as their nominee for governor. Pilling beat 0:09:12.600 --> 0:09:16.760 eight other rivals, including businessman Charles Herbster, who faced groping 0:09:16.760 --> 0:09:20.400 allegations from several women. An NYPD officer was released from 0:09:20.440 --> 0:09:22.520 the hospital after he was shot last night in the 0:09:22.520 --> 0:09:25.800 Claremont section of the Bronx. The suspected gunman was killed. 0:09:26.120 --> 0:09:29.319 New York City subway writers will see more uniform police 0:09:29.320 --> 0:09:32.880 officers on the trains overnight and for longer stretches of 0:09:32.920 --> 0:09:35.959 time to find an increase in crime. Police say seventy 0:09:36.240 --> 0:09:39.600 percent of subway crimes are happening on trains and platforms. 0:09:39.960 --> 0:09:42.599 Global News twenty four hours a day on air and 0:09:42.800 --> 0:09:46.120 on Bloomberg Quicktake, powered by more than twenty seven hundred 0:09:46.200 --> 0:09:49.040 journalists and analysts and more than one hundred twenty countries. 0:09:49.080 --> 0:09:56.960 I'm Michael Barren. This is Bloomberg, Nathan. Thanks Michael. Six 0:09:57.000 --> 0:09:59.040 o nine on Wall Street. Time for the Bloomberg Sports 0:09:59.080 --> 0:10:01.640 Update with Johns A shower, All right, Nathan, High drama 0:10:01.679 --> 0:10:03.800 and the Bronx. Yankees had to come from behind twice. 0:10:03.840 --> 0:10:05.760 They trailed the Blue Jay's three nothing. In the sixth 0:10:05.760 --> 0:10:08.199 Todaint John Carlos Stanton tied the game of the three 0:10:08.240 --> 0:10:10.720 run homer down the line in right field, Toronto went 0:10:10.760 --> 0:10:14.280 back ahead five three Yanks had two on one out. 0:10:14.360 --> 0:10:18.839 Bottom of the night. Here's a hit here to deep glintfield. 0:10:19.000 --> 0:10:23.120 C goes high. It is far, it is gone. It's 0:10:23.160 --> 0:10:27.040 a game. Winnings book up three run home run by 0:10:27.160 --> 0:10:30.520 Aaron Judge. He hitted a mile and a half in 0:10:30.600 --> 0:10:32.880 the look field seat on w f A n Yanks 0:10:32.880 --> 0:10:34.960 one six spots and they go to twenty one and eight, 0:10:35.280 --> 0:10:37.199 just as the Mets and proved of twenty one and ten. 0:10:37.360 --> 0:10:40.360 They trailed sixty. The Washington scored three times, beat the 0:10:40.440 --> 0:10:42.720 Nationals for to two, the Angels with their twenty one 0:10:42.880 --> 0:10:44.959 when there was a no hitter by twenty two year 0:10:44.960 --> 0:10:48.000 old rookie Read Debtoner's against Tampa Bay just is eleventh 0:10:48.000 --> 0:10:50.880 career start his career e r A entry. The game 0:10:50.880 --> 0:10:53.400 was over six and a near no hitter for thirty 0:10:53.480 --> 0:10:55.559 nine year old Justin Verland if he lost it with 0:10:55.640 --> 0:10:58.120 one out. In the eighth blowout to the NBA, Phoenix 0:10:58.120 --> 0:11:01.640 beat Dallas by thirty Miami be in Philadelphia by thirty five. 0:11:01.760 --> 0:11:04.400 Both teams go up three to Both series has seen 0:11:04.440 --> 0:11:06.360 the home team win every game NBA Hall of Famer 0:11:06.480 --> 0:11:09.120 Bob Lanier has died at seventy three and eight time 0:11:09.120 --> 0:11:12.240 All Star with the Detroit Pistons goors. Just Durkin named 0:11:12.240 --> 0:11:14.439 a finalist for the Vesana Trophy that goes to the 0:11:14.520 --> 0:11:17.680 NHL's best goalie. He may very well win the award, 0:11:17.760 --> 0:11:20.600 but will he play like a Bezana winner tonight at 0:11:20.640 --> 0:11:23.120 the Garden. Just played three periods in Pittsburgh and gave 0:11:23.240 --> 0:11:26.880 up ten goals as Durkin and the Rangers now faced elimination, 0:11:26.960 --> 0:11:29.360 trailing the Penguins three to one. Gave five wins last 0:11:29.440 --> 0:11:33.400 night for Carolina, Toronto, St. Louis and Los Angeles. John 0:11:33.400 --> 0:11:37.000 stash Award Bloomberg Sports, Nathan all Right, John Thanks p 0:11:37.160 --> 0:11:39.360 future is now up thirty eight points, Staff futures up 0:11:39.360 --> 0:11:42.880 two undred fifty seven, nastack futures higher by one thirty 0:11:42.880 --> 0:11:45.839 seven points. The tenure Treasury's up fourteen thirty seconds, the 0:11:45.920 --> 0:11:49.439 yield two point nine three per cent. As we await 0:11:49.480 --> 0:11:52.760 the release of the April Consumer Price Index, it's expected 0:11:52.800 --> 0:11:55.120 to show us slow down in inflation. We have a 0:11:55.160 --> 0:11:57.880 Bloomberg big take coming up on the city in the 0:11:58.040 --> 0:12:01.400 US that is dealing with double agent inflation. Right now, 0:12:01.520 --> 0:12:08.320 you're listening to Bloomberg day Break Bloomberg eleven three oh 0:12:08.320 --> 0:12:11.040 weather sunny, upper sixties today, mostly sunny with a high 0:12:11.080 --> 0:12:13.720 near seventy tomorrow will be near seventy by Friday with 0:12:13.760 --> 0:12:16.680 a chance for showers. Right now fifty five degrees in 0:12:16.840 --> 0:12:24.559 Central Park. Markets, headlines and breaking news twenty four hours 0:12:24.559 --> 0:12:27.560 a day at Bloomberg dot Com, the Bloomberg Business apt 0:12:27.640 --> 0:12:36.640 and at Bloomberg Quick Take. He's a Bloomberg Business Flash 0:12:37.120 --> 0:12:40.160 and I'm Karen Moscow. US stock index futures and European 0:12:40.240 --> 0:12:42.880 shares are rising as investors a way to key inflation 0:12:43.000 --> 0:12:45.920 or for engage whether the Fed's efforts attainment inflation and 0:12:45.960 --> 0:12:48.800 the world's largest economy are working. We check the markets 0:12:48.800 --> 0:12:52.160 every fifteen minutes throughout the trading day. On Bloomberg SMP 0:12:52.320 --> 0:12:54.800 future is up thirty eight points down futures of two 0:12:54.840 --> 0:12:58.160 hundred forty seven nodsday futures of one forty one The 0:12:58.240 --> 0:13:00.800 decks in Germany's up eight tenths of percent. To tend 0:13:00.800 --> 0:13:03.520 your treasury up thirteen thirty seconds, yield two point nine 0:13:03.559 --> 0:13:06.280 three percent. Yield on a two year two point five 0:13:06.360 --> 0:13:09.120 nine percent, nine x screwed oil is up three point 0:13:09.160 --> 0:13:11.439 one percent of three dollars thirteen cents and a hundred 0:13:11.480 --> 0:13:14.080 two dollars eighty nine cents of barrel callmics gold up 0:13:14.080 --> 0:13:16.200 six cents per cent or ten dollars fifty cents at 0:13:16.240 --> 0:13:19.600 eighteen fifty one fifty announced. The Euro one point five 0:13:19.920 --> 0:13:22.360 seven against the dollar, British pound one point to three 0:13:22.440 --> 0:13:25.400 six five, the n is at one point eight five, 0:13:25.800 --> 0:13:29.040 and Bigcoin this morning of three percent at thirty one thousand, 0:13:29.160 --> 0:13:31.800 nine hundred dollars. Today we are watching for the consumer 0:13:31.840 --> 0:13:33.839 press and nex is at eight thirty Wall Street time, 0:13:33.880 --> 0:13:36.920 and disease among companies go to report earnings today. That's 0:13:36.920 --> 0:13:39.480 a Bloomberg business flash. Now here's Michael Barrow with more 0:13:39.520 --> 0:13:42.440 on what's going on around the world. Michael Karen, thank 0:13:42.440 --> 0:13:45.200 you very much. It's a split decision for Trump backed 0:13:45.240 --> 0:13:50.960 candidates and two GOP primaries. Yesterday, Representative Alex Mooney, endorsed 0:13:50.960 --> 0:13:54.199 by the former president, won the primary to represent West 0:13:54.280 --> 0:13:57.839 Virginia's second district for Congress. In Nebraska, Jim pill And 0:13:57.920 --> 0:14:00.840 beat eight other candidates in the Republican Mary for governor. 0:14:01.240 --> 0:14:04.640 Pilling beat Trump candidate Charles Herbster who is accused of 0:14:04.640 --> 0:14:08.480 groping several women. In a rare bipartisan moment, the House 0:14:08.520 --> 0:14:12.479 has passed a nearly forty billion dollar military and humanitarian 0:14:12.520 --> 0:14:15.720 aid package for Ukraine. In baseball, the Yankees, Red Sox, 0:14:15.760 --> 0:14:18.720 Orioles and Giants won. The Mets beat the Nationals. The 0:14:18.840 --> 0:14:21.960 A split a double header with the Tigers. Angels. Rookie 0:14:22.000 --> 0:14:25.360 Read Detmer's pitched a no hitter. In the NHL Playoffs, 0:14:25.360 --> 0:14:28.120 the Bruins lost to the Hurricanes. Now Boston is behind 0:14:28.120 --> 0:14:30.960 in that series three games to two. Global News twenty 0:14:30.960 --> 0:14:33.400 four hours a day on airand on Bloomberg Quick Take 0:14:33.440 --> 0:14:36.320 Power by more than twenty seven hundred journalists and analysts 0:14:36.360 --> 0:14:39.320 more than a hundred twenty countries. Michael bar this is Bloomberg. 0:14:40.200 --> 0:14:43.520 This is the Big Take, the best of Bloomberg's in 0:14:43.640 --> 0:14:46.520 depth original reporting from around the globe. This is a 0:14:46.560 --> 0:14:49.960 really fascinating story that has caused a lot of outrage 0:14:49.960 --> 0:14:53.600 among investors. This is so fascinating. A market shutdown in 0:14:53.600 --> 0:14:56.400 a way it's never done before. That's gonna have consequences 0:14:56.480 --> 0:14:59.960 for years to come. The Big Take on Bloomberg Radio, 0:15:00.000 --> 0:15:03.240 Oh It's next twenty On Wall Street Life from the 0:15:03.240 --> 0:15:06.160 Bloomberg Interacted Broker Studios. This is Bloomberg Daybreak, and our 0:15:06.200 --> 0:15:08.880 big Take story this morning is on inflation, not just 0:15:08.960 --> 0:15:12.320 the Consumer Price Index coming out in just about two hours. 0:15:12.360 --> 0:15:15.680 But even if cp I falls, it's going to be 0:15:15.760 --> 0:15:18.560 cold comfort for the residents of the city with the 0:15:18.640 --> 0:15:24.360 highest inflation in the country, Midland, Texas. Catcha. Dmitrieva is 0:15:24.400 --> 0:15:26.360 with us now for more on this big Take story. 0:15:26.440 --> 0:15:29.280 She wrote it on the Bloomberg Terminal, US economics reporter 0:15:29.600 --> 0:15:32.440 for Bloomberg News. Catchya, good morning. I think a lot 0:15:32.480 --> 0:15:35.480 of listeners might remember Midland, Texas best as a former 0:15:35.520 --> 0:15:38.520 president George W. Bush's hometown, but the people who live 0:15:38.600 --> 0:15:41.000 there now are dealing with price pressures the likes of 0:15:41.040 --> 0:15:44.600 which the rest of the country doesn't even know why. 0:15:45.240 --> 0:15:48.440 That's right. I think the big takeaway here is that 0:15:49.160 --> 0:15:52.520 Midland is quite remote, so it's about a four hour 0:15:52.640 --> 0:15:56.800 drive to Dallas, for example, or the next major city, 0:15:56.840 --> 0:15:59.520 and so because of them more remote nature, it's just 0:15:59.600 --> 0:16:02.440 harder to get stuff. It's harder to get goods, there 0:16:02.480 --> 0:16:05.320 are fewer options to get those goods, and so all 0:16:05.360 --> 0:16:08.240 of these issues that you know across the country, and 0:16:08.320 --> 0:16:14.360 really the globe have contributed to inflation. Supply chain shortages, UH, 0:16:14.440 --> 0:16:18.160 factory closures and just um a kind of shortage of 0:16:18.160 --> 0:16:21.160 workers and key industries. All of those things are just 0:16:21.200 --> 0:16:25.880 exacerbated in Midland. And so you have situation where Midland 0:16:25.920 --> 0:16:30.360 has had around ten percent sometimes higher UH consumer price 0:16:30.440 --> 0:16:34.600 index locally every month. That's compared to about eight percent 0:16:35.120 --> 0:16:37.480 and eight point one percent according to the data we're 0:16:37.480 --> 0:16:41.320 going to get today UM for April. So this is UH. 0:16:41.360 --> 0:16:44.520 This is a town that has really been living with 0:16:44.760 --> 0:16:47.440 this high inflation for the past two years. UM, not 0:16:47.560 --> 0:16:49.400 just the past two months, not just the past year 0:16:49.520 --> 0:16:52.840 or since the economy starts to reopen post pandemic UM. 0:16:52.880 --> 0:16:55.800 It really has experienced it for the past two years. 0:16:55.880 --> 0:17:00.640 And that everything from groceries to UM electricity bills. I 0:17:00.680 --> 0:17:04.200 spoke with some folks who had their uptrust see bill 0:17:04.240 --> 0:17:08.440 either double or triple. Grocery bills are are more expensive 0:17:08.520 --> 0:17:11.680 no matter where you go, no matter the grocery store, UM, 0:17:11.720 --> 0:17:14.639 you know, at the gas station. Things are more expensive. 0:17:14.720 --> 0:17:17.600 So it really hits them in all all all parts 0:17:17.600 --> 0:17:20.479 of their lives. Yeah, it really hits home. In the story. 0:17:20.560 --> 0:17:24.040 When you talk about sticky notes getting put up at 0:17:24.119 --> 0:17:29.240 grocery store aisles because the prices changed seemingly from day 0:17:29.240 --> 0:17:31.280 to day. I mean, what is it like for the people, 0:17:31.400 --> 0:17:34.160 not just who are living under these kind of price pressures, 0:17:34.160 --> 0:17:35.879 but the businesses that have to deal with it. I 0:17:35.880 --> 0:17:39.159 know you talked with some business owners as well. Yeah, 0:17:39.480 --> 0:17:41.920 it's um, it's sort of like the sticky note in 0:17:41.960 --> 0:17:44.440 the menu, but just with a lot more zeros out 0:17:44.440 --> 0:17:48.000 of do it Jesus. So you know, I spoke with 0:17:48.080 --> 0:17:51.560 one UM one business owner, Bo Garrison, who owns the 0:17:51.640 --> 0:17:56.800 dirt works companies, so he basically relies on big equipment trucks. UM, 0:17:56.920 --> 0:18:01.320 and he talked to his representative from Caterpillar. They said, listen, 0:18:01.359 --> 0:18:03.600 this one type of equipment you need, we're not going 0:18:03.640 --> 0:18:05.680 to have it. We can put you on a waiting list, 0:18:05.760 --> 0:18:08.040 and we're making a wish list for our top clients, 0:18:08.040 --> 0:18:10.880 but we're sorry, we just can't get to you. UM. 0:18:11.000 --> 0:18:13.000 And then you talked to another rep and at a 0:18:13.040 --> 0:18:16.440 Mexican restaurant, of course, and you know they were talking 0:18:16.480 --> 0:18:19.360 about how they don't have any four DUP two fifties 0:18:19.400 --> 0:18:23.440 for him until three So these are things that will 0:18:23.520 --> 0:18:26.960 contribute to higher costs, you know. Now he has to 0:18:27.440 --> 0:18:30.639 rent equipment. If it breaks down, he needs to maybe 0:18:30.640 --> 0:18:32.880 buy a second hand somewhere else and get it, get 0:18:32.920 --> 0:18:35.399 it trucked in or something like. These are things that 0:18:35.520 --> 0:18:39.840 businesses are dealing with on a constant, moving daily basis, 0:18:39.880 --> 0:18:44.200 having these conversations, and that sometimes means passing on contract. 0:18:44.400 --> 0:18:47.399 So you're presented with a piece of work and if 0:18:47.400 --> 0:18:50.040 a tall Ot oil company or the company you're working with, no, 0:18:50.119 --> 0:18:52.840 I'm sorry, I can't because you know what, either don't 0:18:52.840 --> 0:18:54.760 have the people, no matter how high my wages are, 0:18:54.920 --> 0:18:56.760 or I just don't have the equipment to do it. 0:18:57.119 --> 0:18:58.960 We only were about thirty seconds left here caught you. 0:18:59.040 --> 0:19:01.080 But I guess this points to the limitations of FED 0:19:01.200 --> 0:19:05.320 policy to turn these kinds of pressures around. And that's 0:19:05.359 --> 0:19:07.880 exactly it. There's a there's a huge disconnect. I mean, 0:19:08.400 --> 0:19:11.840 the FED has high interest rates, they are planning on 0:19:12.000 --> 0:19:16.000 continuing on that pace for future meetings, but that is 0:19:16.080 --> 0:19:18.440 not going to do very much for supply chain shortages 0:19:18.800 --> 0:19:21.680 um And it's really enough to address the underlying causes 0:19:22.440 --> 0:19:25.840 UM and it's not going to change prices, most likely 0:19:25.920 --> 0:19:29.159 for places like Midlands. Well, it's good to have you 0:19:29.200 --> 0:19:31.239 on to talk more about this thanks for coming on 0:19:31.280 --> 0:19:35.480 with us. Cotta Dmitrieva, us economics reporter for Bloomberg News, 0:19:35.480 --> 0:19:38.840 with the Big Take story on Midland, Texas, the hardest 0:19:38.920 --> 0:19:42.520 hit town when it comes to inflation, dealing with nearly 0:19:42.680 --> 0:19:46.080 ten percent. You're over your inflation over the last six months. 0:19:46.119 --> 0:19:50.120 Read much more about it at Bloomberg Big Take. It's 0:19:50.119 --> 0:19:53.360 a Bloomberg dot Com slash, Big Take Online or NI 0:19:53.480 --> 0:19:57.119 Big Take go on the Bloomberg terminal. S ANDP futures 0:19:57.200 --> 0:19:59.119 right now are up thirty eight points, Staff futures up 0:19:59.119 --> 0:20:01.520 two forty four and nastac features highed by a hundred 0:20:01.560 --> 0:20:09.080 forty points. This is Bloomberg. Bloomberg eleven three oh weather sunny, 0:20:09.160 --> 0:20:12.240 upper sixties today, mostly sunny with a high near seventy tomorrow, 0:20:12.440 --> 0:20:14.960 will be near seventy on Friday with a chance for showers. 0:20:15.359 --> 0:20:17.720 Right now, it's fifty five and clear in Central Park. 0:20:22.119 --> 0:20:26.640 Broadcasting live from the Bloomberg Interactive Broker Studio in New York. 0:20:26.760 --> 0:20:30.240 Bloomberg E Living Freedom to Washington, d C. Bloomberg ninety 0:20:30.320 --> 0:20:33.240 nine one to Boston, Bloomberg one O six one to 0:20:33.320 --> 0:20:37.080 San Francisco, Bloomberg nine sixteen to the Country, Sirius XM 0:20:37.119 --> 0:20:40.359 Chento one nineteen and around the globe, the Bloomberg Business 0:20:40.720 --> 0:20:50.240 and Bloomberg Radio dot com. This is Bloomberg Daybreak. It's 0:20:50.240 --> 0:20:52.440 six thirty on Wall Street. Good morning. I'm Nathan Hager 0:20:52.760 --> 0:20:55.679 and I'm Karen Moscow, and we are about three hours 0:20:55.720 --> 0:20:57.879 away from the open of US trading time for the 0:20:57.880 --> 0:20:59.840 five things you need to know to start your day. 0:21:00.000 --> 0:21:03.359 Out to you by Interactive Brokers. Global Analysts helps you 0:21:03.440 --> 0:21:07.240 find you global investment opportunities to diversify your portfolio and 0:21:07.280 --> 0:21:11.160 discover undervalued companies that they have greater growth potential. Try 0:21:11.160 --> 0:21:14.439 ibk our Global Analysts today at ibkr dot com slash 0:21:14.480 --> 0:21:17.920 g A. First, we soon get the latest reading on inflation. 0:21:18.000 --> 0:21:20.280 The April Consumer Price Index will be released at eight 0:21:20.280 --> 0:21:24.000 thirty Wall Street time. Nathan Sheets, chief Global Economists with 0:21:24.040 --> 0:21:27.360 City Group, says high commodity prices and supply chain pressures 0:21:27.640 --> 0:21:30.800 could lead to more persistent inflation. Looking under the hood 0:21:31.080 --> 0:21:35.000 is going to be critical. We're expecting a zero point 0:21:35.080 --> 0:21:40.199 four percent month to month read for core, somewhat lower 0:21:40.280 --> 0:21:45.399 for headline, but when I look at underlying components, I 0:21:45.480 --> 0:21:48.800 just have a hard time being too optimistic about the 0:21:48.840 --> 0:21:52.800 inflation outlook. City Group Chief Global Economists Nathan Sheets expects 0:21:52.840 --> 0:21:56.520 inflation to gradually decline this year, even if it hasn't 0:21:56.560 --> 0:21:59.399 peaked yet. Well April CPI numbers caring to likely to 0:21:59.440 --> 0:22:03.200 affect how the Fed titans monetary policy. Cleveland FED President 0:22:03.240 --> 0:22:06.360 Loretta Mester says the path to two percent inflation will 0:22:06.400 --> 0:22:09.320 be painful, that unemploying may have to rise. We make 0:22:09.359 --> 0:22:13.320 it another quarter of or two of negative growth, but 0:22:13.480 --> 0:22:16.800 that has to happen in order to get inflation down. 0:22:16.880 --> 0:22:20.720