Speaker 1: By from the Bloomberg Interactive Burger Studios. This is Bloomberg
Speaker 1: day Break for Monday May two. Coming up this hour,
Speaker 1: stock futures rise. Following the longest losing streak for the
Speaker 1: SMP five hundred in decades, President Biden said the US
Speaker 1: would intervene to defend Taiwan from China or baby formula
Speaker 1: arrives in the US, and Broadcom isn't talk to buy
Speaker 1: a top cloud computing company. New York City police continued
Speaker 1: to search for the gunman in a deadly random subway shooting.
Speaker 1: Plus Ukraine says up to one hundred of their soldiers
Speaker 1: die every day. I'm Michael Barr. More ahead, I'm Scotts Edinburg,
Speaker 1: Yankey swept in a doubleheader, the Mets pickup wind and
Speaker 1: the Rangers defend the hallmarks of that More coming up
Speaker 1: in sports. That's all Trading ahead on Bloomberg Daybreak on
Speaker 1: Bloomberg eleven three on New York, Bloomberg one, Washington, d C,
Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixty, San Francisco,
Speaker 1: Syrius Exam one nine team and around the world Old
Speaker 1: on Bloomberg Radio dot Com and via the Bloomberg Business app.
Speaker 1: Good morning, I'm John Tucker and I'm Karen Moscow and
Speaker 1: US DOT Index futures are higher this morning, where coming
Speaker 1: up to five out one on Wall Street, and we
Speaker 1: check the markets every fifteen minutes throughout the trading day
Speaker 1: on Bloomberg. Right now, SNP futures are up about nineteen
Speaker 1: points down futures of a hundred thirty NASDAG futures of
Speaker 1: forty eight the decks in Germany's up about six tenths
Speaker 1: of upper cent ten year treasury down eight thirties seconds
Speaker 1: held two point eight one percent. They yield on the
Speaker 1: two year two point six zero percent, and nine X
Speaker 1: screwed oil is up half percent and a hundred ten
Speaker 1: dollars eighty seven cents of barrel. John Currently rise in
Speaker 1: futures comes after the S and P five hundred touched
Speaker 1: bear market territory on Friday and closed lower for a
Speaker 1: seventh straight week. According to Bespoke Investment Group, is just
Speaker 1: the SNPs fourth streak of seven or more weekly losses
Speaker 1: in the post World War two era. Alexafronis on the
Speaker 1: partner and co CEO at i e Q Capital dentament
Speaker 1: is terrible enough so we're we're ready for a bear
Speaker 1: market rally, but it's still probably a bear market rally
Speaker 1: until such time as there's evidence the economy that is
Speaker 1: very close to a bottom. Alexand friend of I e
Speaker 1: Q Capital is not alone in thinking stocks will head lower.
Speaker 1: According to the latest Bloomberg m Live Pulse, pol participants
Speaker 1: see the SMP five hund are falling another ten percent. Well,
Speaker 1: many traders c the U S economy headed for recession.
Speaker 1: John the President of the United States, is not so sure.
Speaker 1: He answered the question at a press conference in Tokyo overnight.
Speaker 1: In your view, is a recession in the United States inevitable? No?
Speaker 1: Why not? Our GDPs are going to grow faster than
Speaker 1: China for the first time in forty years. How does
Speaker 1: that mean we don't have problems? We do. We have
Speaker 1: problems with the rest of the world has, but less
Speaker 1: consequential than the rest of the world has than because
Speaker 1: of our internal growth and trends. At the same press
Speaker 1: briefing in Tokyo, President Biden made headlines so announced that
Speaker 1: the US would defend Taiwan from a China attack. Are
Speaker 1: you willing to get involved militarily to defend Taiwan? If
Speaker 1: it comes to that, you are That's the commitment we made.
Speaker 1: President Biden also announced that a dozen Indo Pacific countries
Speaker 1: will join the US and a sweeping economic initiative designed
Speaker 1: to counter China's influence in the region. And earlier in
Speaker 1: his trip, during a stop in South Korea on Sunday,
Speaker 1: the President also address the growing concern over monkey pox
Speaker 1: cases around the world. Concern in the sense that were
Speaker 1: to spread this consequence, that's all they told. President Budden
Speaker 1: says he's speaking to advisors about monkey pots. The President's
Speaker 1: National Security Advisor, Jake Sullivan, says the U S has
Speaker 1: a relevant vaccine ready to be deployed to treat the
Speaker 1: disease if needed. Well. The U S monitors the monkey
Speaker 1: pods situation. John It is getting some relief this morning
Speaker 1: on the battle against the baby formula shortage, and we
Speaker 1: get the latest live from Bloomberg's Need a Young, Good
Speaker 1: Morning Radio, Good Morning Karen. A plainload of more than
Speaker 1: seventy thousand pounds of baby formula arrived in the US
Speaker 1: on Sunday. It's called Operation Fly Formula, an emergency program
Speaker 1: to alleviate a national shortage that's left some parents scrambling
Speaker 1: to feed their children. President Biden's top economic advisors says
Speaker 1: more formula will start arriving in stores as early as
Speaker 1: this week, and last week the President invoked emergency powers
Speaker 1: under the Defense Protection Act to spur domestic manufacturing of
Speaker 1: baby formula. Live in New York. I'm gonna need a
Speaker 1: young Bloomberg daybreak. Thanks for after a two year hiatus
Speaker 1: because of the pandemic, the annual World Economic form and
Speaker 1: DAMO Switzerland his back, but without the hype of years past,
Speaker 1: and our Tom Keane covering the event from both Bloomberg
Speaker 1: Radio and television. This will be a different Davos, There's
Speaker 1: no question about it. I think the major thing is
Speaker 1: the change of cal under not January but May, and
Speaker 1: much more. It will be compressed pretty much from four
Speaker 1: days down to three days. Travel schedules seem to be
Speaker 1: so tight for so many people attending. The war is
Speaker 1: absolutely front and center. There's no question about that. There
Speaker 1: will be some other themes, some ideas of risks as well,
Speaker 1: but the overarching theme besides the wars my colleague Paul
Speaker 1: Sweeney mentioned is the idea here of what do we
Speaker 1: do about inflation? And that will transcend the dialogue all
Speaker 1: the way, all the way through this uh three days
Speaker 1: in Davos thanks to Bloomberg's time came reporting from Dambo's
Speaker 1: beginning this morning along with Lisa branmo Wits on Bloomberg Savallas.
Speaker 1: Stay with us for that coming up at seven am
Speaker 1: All Street Time. And Christine Lagarde is one official who
Speaker 1: will be in Davos this week, John, But ahead of
Speaker 1: her appearance, the European Central Bank president is making some
Speaker 1: critical comments about cryptocurrencies that we had more from Bloomberg's
Speaker 1: Mariette today o in Brussels to give an it ToView
Speaker 1: to Dutch tele Vision, and she said that this thing
Speaker 1: is trash, it carries no value, and it's an investment
Speaker 1: vehicle for some to get very rich, but for other
Speaker 1: very naive people to lose potentially a lot of money.
Speaker 1: But of course you know this is a central banker.
Speaker 1: Bitcoin crypto, everything around it we know essentially tries to
Speaker 1: defy central bankers. So of course what the central banker
Speaker 1: was ahead of these to be good to say that
Speaker 1: it's trash and she doesn't believe in it. And Bloomer's
Speaker 1: Maria today, oh so far. Leguard's comments are not impacting cryptocurrencies.
Speaker 1: Checking Bitcoin right now it is up when in a
Speaker 1: third percent at thirty thousand, three hundred dollars, and we're
Speaker 1: seeing shares a vm Ware up up four and early trading.
Speaker 1: The clown Computing company in talks to be bought by Broadcomp.
Speaker 1: Details from Bloomberg's Doug Prisner. Vm Ware, based in Palo Alto,
Speaker 1: makes virtualization software. It allows a small number of servers
Speaker 1: to do more by enabling each to handle more than
Speaker 1: one program. Broadcom is a Singapore based giant in the
Speaker 1: semiconductor industry. A deal would help it diversified beyond Pewter chips.
Speaker 1: Vm Ware has a market cap of around forty billion
Speaker 1: dollars so far this year. It shares her down in
Speaker 1: New York. I'm Dad Chrisner, Bloomberg Daybreak, All right, thanks Doug,
Speaker 1: right now, dall futures up one points, SMP futures of seventeen,
Speaker 1: the nasday futures of seven. This is daybreak. That's five
Speaker 1: o seven on Wall Street. Time to break in Michael
Speaker 1: Barr with Laura. What else is going on in New York,
Speaker 1: end around the world? John, Thank you very much, Sir,
Speaker 1: An unidentified gunman has shot and killed another passenger on
Speaker 1: a moving New York City subway train. Police officials say
Speaker 1: it appears to have been an unprovoked attack and the
Speaker 1: victim for the eight year old man died in the hospital.
Speaker 1: In my p D Chief of Department Kenneth Corey. At
Speaker 1: this time, there are no arrests. The suspect is described
Speaker 1: as a dark skinned male who is heavy set with
Speaker 1: a beard. Police say the shooting took place yesterday on
Speaker 1: a Q train traveling over the Manhattan Bridge at around
Speaker 1: eleven forty a m. That's the time of day when
Speaker 1: subway cars are often filled with families, tourists, and people
Speaker 1: headed a brunch. Recent subway crime has set New Yorkers
Speaker 1: on edge. Last month, a man opened fire inside a
Speaker 1: Brooklyn subway trains, scattering random shots that wounded ten people.
Speaker 1: Japanese Prime Minister Fumio Kashita told President Joe Biden that
Speaker 1: Russia's aggression cannot be tolerated. The two leaders met in
Speaker 1: Tokyo to discuss regional security and economic cooperation. Speaking through
Speaker 1: a translator, Prime Minister Kashita. Prime Minister Kashida's comments come
Speaker 1: as a United Nations agencies said the war in Ukraine
Speaker 1: has displaced more than a hundred million people from their homes.
Speaker 1: Ukraine's president says up to one hundred of its soldiers
Speaker 1: die every day in battle. Republican Congresswoman Liz Cheney of
Speaker 1: Wyoming was one of five individuals last night to receive
Speaker 1: the two John F. Kennedy Profile and Courage Award. In
Speaker 1: her live streamed a substance speech, Cheney, who serves on
Speaker 1: the Special Committee investigating the January six Capital Riots, spoke
Speaker 1: about the continuous threat to democracy. We face a threat
Speaker 1: we have never faced before, a former president attempting to
Speaker 1: unravel our constitutional republic. The award was also handed to
Speaker 1: Ukrainian President Zalinski and three US officials defending the integrity
Speaker 1: of the presidential election. Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than twenty hundred journalists and analyst more than a hundred
Speaker 1: twenty countries. Michael Barron, this is Bloomberg, John Michael, thank you,
Speaker 1: and it's now find Tim. I'm wall Street this time
Speaker 1: for the Bloomberg Sports Update. Here's Scott Sidenberg. Good morning, Johnny.
Speaker 1: Gorcious Jerkin made forty three saves me because even a
Speaker 1: Jet had a goal and an assist as the Rangers
Speaker 1: beat the Hurricanes three one at the Garden yesterday. Chris
Speaker 1: Critter and Tyler Mott also scored as the Blue Shirts
Speaker 1: to fand home ice now trail two games to one.
Speaker 1: Here's head coach Gerard glen Gower play goal. That's how
Speaker 1: you went hockey games in tight games. So it was
Speaker 1: the battle type battle again tonight. They obviously ego ego
Speaker 1: with an outstanding bust and that was the key. It
Speaker 1: was just the second win for the Blue Shirts over
Speaker 1: Carolina in their last ten meetings Game four at the
Speaker 1: Garden Tomorrow night Baseball, the Yankees dropped both games of
Speaker 1: a double header to the White Sox three one innit
Speaker 1: game one and a five nothing shutout lost in Game two.
Speaker 1: The Mets meanwild blank the Rockies to nothings. I want
Speaker 1: Walker through seven scoreless innings. NBA Playoffs, the Warriors taken
Speaker 1: commanding three oh series lead over the Mavericks with a
Speaker 1: one on nine win. Golf was an exciting finish at
Speaker 1: the PGA Championship yesterday, and Justin Thomas is walking around
Speaker 1: for the quick top and he's got it. Two time
Speaker 1: major winner of the PGA Championship, Justice Toddis he's your
Speaker 1: hundred four p g A champion here at Southern Hills
Speaker 1: and puls Oklahoma. The call is heard right here on
Speaker 1: Bloomberg Radio. Justin Thomas winning his second one or Maker
Speaker 1: Trophy outlasting Will's Allatorus in a three whole playoff. I'm
Speaker 1: Scott said, urged with Bloomberg Sports. Nathan all right, thanks Scott,
Speaker 1: and ahead of the cash open on Wall Street, we
Speaker 1: have town futures right now off on twenty seven points,
Speaker 1: SMB futures up twenty points, that's about half percent, and
Speaker 1: the ends A futures right now fifty eight points higher.
Speaker 1: As far as treasuries, the benchmark ten year yields to
Speaker 1: eighty one right now, and the vis Wall Streets fear gage,
Speaker 1: the volatility index slightly elevated this morning, right now at
Speaker 1: twenty sixty. As looking at the euro one O six
Speaker 1: fifty eight, that is up slightly against the dollar. You're
Speaker 1: listening the Bloomberg tay break and just ahead, have stocks
Speaker 1: hit the bottom? Where do we go from here? We'll
Speaker 1: put those questions to economist Dennis Gartman. That's straight ahead
Speaker 1: on Bloomberg Tay break markets, headlines and breaking news twenty
Speaker 1: four hours a day at Bloomberg dot com. The Bloomberg
Speaker 1: Business Outland at Bloomberg Quick Tape is a Bloomberg Business
Speaker 1: Flash and I'm Karen Moscow. Songs in the You Wanna
Speaker 1: are advancing after President Joe Biden said Shina tariffs imposed
Speaker 1: by the Trump administration were under consideration. The dollar and
Speaker 1: treasuries are retreating. We checked the markets every fifteen minutes
Speaker 1: throughout the trading day on Bloomberg S and P futures
Speaker 1: up eighteen points down, futures up a hundred fourteen NASDAG
Speaker 1: futures up fifty two The decks in Germany's up four
Speaker 1: tenths of upper ten year treasury down nine thirty seconds,
Speaker 1: yield two point eight one percent, yield on the two
Speaker 1: year two point six zero percent. Nimex Screwede oil is
Speaker 1: up nine ten percent or a dollar one at a
Speaker 1: hundred eleven dollars thirty two cents of arrol Comics gold
Speaker 1: is up more than one percent, or nineteen dollar sixty
Speaker 1: cents at eighteen sixty eight announced. The euro one point
Speaker 1: oh six seven seven against the dollar. British pound one
Speaker 1: point eight seven and the units at one seven point
Speaker 1: four six Bitcoin is higher, up one point three percent
Speaker 1: at thirty thousand, three hundred dollars. That's a Bloomberg business flash.
Speaker 1: Now here's Michael Barr with more on what's going on
Speaker 1: around the world. Michael, good morning, Good morning Karen. President
Speaker 1: Joe Biden sent the U. S Military would intervene to
Speaker 1: defend Taiwan in any attack from China in Tokyo. Biden
Speaker 1: says such a move would dislocate the entire region, be
Speaker 1: an action similar to what Russia has done in Ukraine.
Speaker 1: A military plane carrying enough specialty infant formula for more
Speaker 1: than a half a million baby bottles arrived yesterday in Indianapolis.
Speaker 1: It is the first of several flights expected from Europe,
Speaker 1: aim that we're leaving a formulas shortage. In the NHL playoffs,
Speaker 1: the Rangers beat the Hurricanes three one. Carolina still leads
Speaker 1: that series two games to one. In the NBA playoffs,
Speaker 1: the Warriors beat the Mavericks one on nine one hundred
Speaker 1: to leave the Western Conference Finals three games to zip. Baseball,
Speaker 1: the Yankees lost a double header to the White Sox.
Speaker 1: The MAT's Red Sox Orioles and Nationals won the Giants
Speaker 1: and A's lost. Global News twenty four hours a day
Speaker 1: on air and on Bloomberg Quick Tank, powered by more
Speaker 1: than twenty seven hundred journalists and analysts more than twenty countries.
Speaker 1: Michael Barr, this is Bloomberg, John, Michael, thank you five
Speaker 1: twenty on Wall Street. We are lying for the Bloomberg
Speaker 1: in Tryant Broker Studios. This is Bloomberg Daybreak. Stocks on
Speaker 1: Friday avoided the official bear market label at least the
Speaker 1: SMP five hundred. But what is next. Let's get you
Speaker 1: set up for the trading day ahead with economist Dennis
Speaker 1: Garp and chair of the University of Akron's in Dama.
Speaker 1: Dennis always a pleasure happy Monday. Are we you rebalancing
Speaker 1: back to pre pandemic levels or is something else going on? John?
Speaker 1: I think actually been a bear market for quite some
Speaker 1: period of time. I find it amusing that everybody wants
Speaker 1: to think that you don't owner a bear market U
Speaker 1: till you're down. I have always gone on the end
Speaker 1: of the auspice of the or the notion that anything
Speaker 1: under seven percent is a bear market territory. Uh and
Speaker 1: and you have to be more defensive once we once
Speaker 1: we take things down, seven is pretty far down before
Speaker 1: you start to become bearish. I think the bear market
Speaker 1: started December, actually January, and as the chairman of the
Speaker 1: University of Ackrons in Downland, I I pushed us hard
Speaker 1: and actually got us to move a twelve percent of
Speaker 1: our portfolio out on December thirty one last year, going
Speaker 1: to the sidelines and owning two year and four year
Speaker 1: and five year treasury securities instead. And as I like
Speaker 1: to say, in a bear market, he or she who
Speaker 1: loses the least is the winner. And we saved though
Speaker 1: call it what what are we down? That almost in
Speaker 1: the essence he almost in the nastac one, So we
Speaker 1: saved call it sevent one of the portfolio. We're doing
Speaker 1: a lot better than other people are. So I think
Speaker 1: you have to understand that this is a bear market.
Speaker 1: The FETE is taking away the fuel that had sponsored
Speaker 1: the bull market for such a long period of time.
Speaker 1: As the FETE added to its balance sheet, is the
Speaker 1: FET is now beginning to subtract from its balance sheet.
Speaker 1: It's going to take years before it gets the balance
Speaker 1: sheet back to something more amenable. We've we've taken the
Speaker 1: balance sheet from what nine billion to nine trillion in
Speaker 1: the course of a decade. Taking taking away dollars a
Speaker 1: month for the next several years is going to is
Speaker 1: going to weaken the stock market for a protracted period
Speaker 1: of time. So I think it's a bear market, and
Speaker 1: I think people have to understand that fact, and I
Speaker 1: think people need to adjust their trading perspectives and adjust
Speaker 1: their investment perspectives accordingly. Well, when does dip by become
Speaker 1: a viable strategy? Not for a long period of time
Speaker 1: into the future. I think alley selling is the viable strategy.
Speaker 1: Buying the dip was a nice strategy for almost a decade,
Speaker 1: but I think that that's behind us now. I think
Speaker 1: buying the dip is an ill advised decision. I think
Speaker 1: selling rallies is the advised decision, and I think that
Speaker 1: that's going to maintain for a long period of time.
Speaker 1: We We've had a good solid bounce from Friday's low
Speaker 1: until in the futures market, until the highs made last night.
Speaker 1: I think that those highs made last night maybe taken
Speaker 1: out when we opened for trading in reality at at
Speaker 1: nine dirty this morning. But I think that what we
Speaker 1: what we need to understand is the rallies have been
Speaker 1: on very unlimited volume, that been on aggressive volume, and
Speaker 1: that's I think that's the hallmark of a bear market.
Speaker 1: So I think selling rallies the is the proper course
Speaker 1: of action. Buying dips was the proper course of action,
Speaker 1: it is no longer the proper course of action. You
Speaker 1: mentioned treasuries. Is cash a better alternative at this point
Speaker 1: when stocks are down? Cash is not a bad place
Speaker 1: to be. Uh And and as I said that the
Speaker 1: University of Acron we've gone to two year, three year,
Speaker 1: four year, five year treasury notes, which I consider to
Speaker 1: be essentially cash. Cash holding cash is a is a
Speaker 1: great place to be. In my own portfolio, I've got
Speaker 1: about twenty cash and the only major positions I have
Speaker 1: are in gold and coude oil and commodities. It's been
Speaker 1: I've had a nice period of time here for myself
Speaker 1: for the last several weeks, and I'm going to continue.
Speaker 1: So cash is I think the upper course of action,
Speaker 1: or at least a good course of action, where for
Speaker 1: the past decade it hasn't been. Now it is. I
Speaker 1: would imagine growth is really really off the table for
Speaker 1: you at this point. Growth has been off the table.
Speaker 1: Growth will remain off the table, and the growth it
Speaker 1: is probably not going to be on the table for
Speaker 1: at least another six months, maybe a year more. Uh.
Speaker 1: The damage that has been wrought in the growth of
Speaker 1: portfolios of the of the country by in in in
Speaker 1: in individual accounts has been extraordinary, and I think that
Speaker 1: damage is going to get warm, not better. So again,
Speaker 1: I think buying the dip is not the course of action.
Speaker 1: Selling the rally is the proper course of action. Getting
Speaker 1: less long is the proper way to be. I hate
Speaker 1: to say that much more fun having bull markets. The
Speaker 1: women are prettier, the clothing is nicer, to the music
Speaker 1: is is pleasant to dance is lovely. And in the
Speaker 1: bear markets music becomes a tonal and people become ugly
Speaker 1: and nasty. And I'd much prefer a bowl market. But
Speaker 1: and I hate to be bearish, but I think that's
Speaker 1: the proper course, never nasty or ugly. Dennis Garman, Dennis,
Speaker 1: you're actually gonna come back if he would, uh in
Speaker 1: the next half hour to continue our conversation. Maybe we'll
Speaker 1: pick up the commodities at that point. Account of as
Speaker 1: Dennis Gartment appreciate that and ahead of the cash of
Speaker 1: them on Wall Street right now futures in the green,
Speaker 1: the down futures of one and thirty seven points, that's
Speaker 1: a rise of four tenths of a percent, the SMP
Speaker 1: five futures of twenty one points a rise of half
Speaker 1: a percent, and the futures right now fifty nine points higher.
Speaker 1: That's up half a percent. Dennis mentioned treasuries the benchmark
Speaker 1: ten year yield two eighty one of three basis points.
Speaker 1: You're listening to Bloomberg day Break out of Bloomberg Weather
Speaker 1: for Rob Carolin. Partly sunny, cooler today and a lot
Speaker 1: less hum of the heights amperture topic out at about
Speaker 1: seventy five cloudy tonight blows fifty five to sixty degrees.
Speaker 1: Broadcasting wide from the Bloomberg Interactive Broker Studio in New York,
Speaker 1: Bloomberg E Living Free to Washington, d C, Bloomberg to Boston,
Speaker 1: Bloomberg one O six one, to San Francisco, Bloomberg nine
Speaker 1: sixteen to the country Sirius XM D A one nineteen
Speaker 1: and around the globe the Bloomberg Business app and Bloomberg
Speaker 1: Radio dot Com. This is Bloomberg day Break. It's five
Speaker 1: thirty on Wall Street. Good morning, I'm John Tucker and
Speaker 1: I'm Karen Moscow. We're just about four hours away from
Speaker 1: the open of US trading. Let's get you have to
Speaker 1: date on the news. You need to know what this
Speaker 1: show were with futures higher amid expectations traders will help
Speaker 1: lift the S and P five after a touch bearer
Speaker 1: market Territory Friday. Despite talks of a US recession, Credit
Speaker 1: Sweet CEO Thomas scotch Stein said he doesn't see what happening.
Speaker 1: People are someone insecured in risk off mode. But our house,
Speaker 1: he was still, is that there won't be a recession
Speaker 1: neither this year the next year. There won't be slowed
Speaker 1: down Credit See CEO Thomas Gonstein was speaking in Davos
Speaker 1: with Bloomberg's Francie Lagua. Behind Weldavos World Economic Forum is
Speaker 1: bank this year tuned into Bloomberg Television and Radio for
Speaker 1: full coverage this week. Karen Stocks also jumped this morning
Speaker 1: after President but they indicated China tariffs imposed by the
Speaker 1: Trump administration or under consideration. Speaking in Tokyo, the presidents
Speaker 1: that he believes the US will avoid a recession. He
Speaker 1: also declared the U S would defend Taiwan. Should China attack.
Speaker 1: My expectation is it will not happen, it will not
Speaker 1: be attempted. My expectation is a lot of it depends
Speaker 1: upon just how strong in the world makes clear that
Speaker 1: that kind of action is going to result in long
Speaker 1: term disapprobation by the rest of the community. President Biden
Speaker 1: also announced that a dozen Into Pacific countries will join
Speaker 1: the US and an economic initiative designed to counter China's
Speaker 1: influence in the region. Well before boarding Air Force One
Speaker 1: in South Korea yesterday, John the President addressed the growing
Speaker 1: monkey pox outbreak. Well, heaven't told me the level of
Speaker 1: exposure yet, but it is something that everybody should be
Speaker 1: concerned about. We're working out of art figure out what
Speaker 1: we do. President Biden said he spoke to advisors about
Speaker 1: the monkeypox virus and while the US monitors monkey pox
Speaker 1: is getting relief on the battle against the baby formula
Speaker 1: shortage and Bloomberg's we need a young joins this life
Speaker 1: with more. We need a good morning, Good morning John.
Speaker 1: A plainload of more than seventy thousand pounds of baby
Speaker 1: formula arrived in the U S Sunday. It's called Operation
Speaker 1: Fly formula, an emergency program to alleviate a national shortage
Speaker 1: that's left some parents grambling to feed their children. President
Speaker 1: Biden's top economic advisor says more formula will arrive in
Speaker 1: stores as early as this week. Last week, the President
Speaker 1: invoked emergency powers to spur domestic manufacturing of baby formula.
Speaker 1: Live in New York. I'm re need a young Bloomberg daybreak,
Speaker 1: A right re need to thank you. Turning back to
Speaker 1: equity shares, a vm Ware up in early trading. The
Speaker 1: cloud computing company isn't asked to be bought by Broncom again.
Speaker 1: Futures are moving higher and straight ahead your latest local
Speaker 1: headlines plus the check of sports. This is Bloomberg. Thanks
Speaker 1: Wall Street. Hand signed to bring in Michael Barr with
Speaker 1: more on what else is going on to New York
Speaker 1: end around the world, John, Thank you, sir. The search
Speaker 1: is on for a gunman who shot a man on
Speaker 1: the subway train in Manhattan Sunday morning. The suspect flat
Speaker 1: The forty eight year old victim died later at a hospital.
Speaker 1: In my p D. Chief of Department Kenneth Corey's says
Speaker 1: the victim was shot in the chest. According to witnesses
Speaker 1: the suspect was walking back and forth in the same
Speaker 1: train car and without provocation, pulled out a gun and
Speaker 1: fired it at the victim at close range. In my
Speaker 1: p D Chief of Department Kenneth Corey says there was
Speaker 1: apparently no prior contact between the victim and the suspect. Meanwhile,
Speaker 1: the chief executive of Goldman Sachs says the forty eight
Speaker 1: year old man shot and killed was an employee of
Speaker 1: the firm. David Soloman says Daniel Enriquez was a beloved
Speaker 1: member of the company for nine years. Solomon says the
Speaker 1: firm was devastated by this senseless tragedy and our deepest
Speaker 1: sympathies there with Dan's family. At this difficult time, Russia
Speaker 1: is intensifying its attacks in eastern Ukraine as President Volodimir
Speaker 1: z Lensky calls for even more powerful weapons to come
Speaker 1: to the Russian invasion. Zelenski says between fifty two hundred
Speaker 1: Ukrainian soldiers die every day on the battlefield. Meanwhile, the
Speaker 1: threat of possible nuclear attacks can nues from President Putin.
Speaker 1: Former Chairman of the Joint Chiefs Admiral Mike Mullin says
Speaker 1: while he doesn't believe Putin will actually use nuclear weapons.
Speaker 1: It's a possible action they have to consider. It's very
Speaker 1: difficult to know what Footing is thinking on any particular time.
Speaker 1: He's obviously spoken to this. I think we need to
Speaker 1: make sure that we consider it. Former Chairman of the
Speaker 1: Joint Chiefs Mullen spoke on a d c S this week,
Speaker 1: which can be heard Sundays on Bloomberg. Mask requirements and
Speaker 1: advisories are back in cities with rise in COVID nineteen cases.
Speaker 1: Philadelphia is one of them. Starting today, face coverings. There
Speaker 1: will be mandatory indoors and on school buses. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg
Speaker 1: Quick Take, powered by more than twenty seven hundred journalists
Speaker 1: and analysts in more than a hundred twenty countries. And
Speaker 1: Michael Barr and this is Bloomberg, John, Michael, thank you.
Speaker 1: Find thirty six on the wall. Stree toned down for
Speaker 1: the Bloomberg Sports up Day and here Scots, I thanks John.
Speaker 1: The Rangers desperately needed a win yesterday to avoid falling
Speaker 1: down three games to none against the Hurricanes. The Goorcius
Speaker 1: Turkey was up for the task. Stopping forty three shots
Speaker 1: as the Blue Shirts defeated the King's three to one
Speaker 1: Game four at the Garden. Tomorrow night else Where, the
Speaker 1: Lightning take a three games to then lead over the
Speaker 1: Panthers with a five one win. Edmonton goes up two
Speaker 1: games to one over the Flames with a four one victory.
Speaker 1: Baseball Rolta Shapman surrendered a tie breaking home run to
Speaker 1: aj Pollock in the top of the ninth inning as
Speaker 1: the Yankees dropped Game one of a double header to
Speaker 1: the White Sox three to one. They would also lose
Speaker 1: Game two, being shut out five nothing despite Luis Severino
Speaker 1: going seven scoreless innings, the Yankees losing two straight, but
Speaker 1: just the second time this sees it, it mets me.
Speaker 1: While blank the Rockies to nothing, Taiwan Walker throwing seven
Speaker 1: scoreless innings NBA Playoffs, the Warriors take a three oh
Speaker 1: series lead over the Mavericks with a one on nine
Speaker 1: in at Dallas, Game four of the Eastern Conference Finals
Speaker 1: tonight in ball in Miami, Leeds two games to one.
Speaker 1: Golf was an exciting finish at the PGA Championship yesterday,
Speaker 1: and Justin Thomas is walking around for the quick tap
Speaker 1: and he's got it. A two time major winner of
Speaker 1: the PGA Championship. Justin Thomas, He's your hundred fort PGA
Speaker 1: champion here at Southern Hills and Pulsa, Oklahoma. The call
Speaker 1: is heard right here on Bloomberg Radio. Justin Thomas winning
Speaker 1: his second one or Maker Trophy, outlasting Will's Salatorus in
Speaker 1: a three whole playoff, Tom Scott said, Bloomberg Sports All
Speaker 1: Thanks Scott, five thirty seven on Wall Street time out
Speaker 1: for the Tri State Business Report. For that, we're joined
Speaker 1: by Bloomberg's and Query. Supply chain snarls and labor shortages
Speaker 1: threatened to impede the rebounded Manhattan's retail market. Some tenants
Speaker 1: have delayed opening spaces because of challenges and obtaining equipment
Speaker 1: and staff. Others had to wait for inspections and permits
Speaker 1: into the real estate part of New York. You know,
Speaker 1: New Jersey could be the cheapest state in the country
Speaker 1: to own a n e V. The head of a
Speaker 1: report from Energy Innovation, Policy and Technology says the state
Speaker 1: offers a five thousand dollar rebate when you buy or
Speaker 1: lease in e V. There's no purchase tax on those vehicles,
Speaker 1: and there are other offers that make owning electric vehicles
Speaker 1: more affordable. A two month initiative to promote cultural programs
Speaker 1: in Ridgefield, Westport and Wilton, Connecticut, attracted more than one
Speaker 1: hundred people of theaters, restaurants and businesses in the three towns.
Speaker 1: This is according to a new survey following the inaugural
Speaker 1: Culture Crawl. That's your Bloomberg Trying State Business Report. IMD
Speaker 1: Corey Dank said it is five thirty eight on the
Speaker 1: Wall Street. Bloomberg Radio is on the air from San
Speaker 1: Francisco to New York, London to Hong Kong. And let's
Speaker 1: sent in now with our global news team for some
Speaker 1: of the top stories heard on our three hundred affiliate
Speaker 1: radio stations around the world. I Ve Potas go on
Speaker 1: Ted Ted Winds in New York. We're talking about how
Speaker 1: a lot of stock market participants expect still more pay
Speaker 1: get to come this year. Um Corney Donahoe on w
Speaker 1: h A s and Louisville. American car shoppers are least
Speaker 1: likely to buy an electric vehicle compared to overseas. I'm
Speaker 1: Gina Servetti in for w c CEO in Minneapolis. I'm
Speaker 1: reporting that many states, including Minnesota, have unemployment rates well
Speaker 1: below three point six percent the national average. I'm Stephen
Speaker 1: Caroll and Bloomberg DAB Digital Radio and London. We've been
Speaker 1: reporting on the new Economic Park for the Asia Pacific,
Speaker 1: danced by Pastor Joe Biden visiting Japan. I'm Ed Cory
Speaker 1: on w p A M in Cleveland. I'm reporting Peter
Speaker 1: point his unveiled new hotel property and new dining option.
Speaker 1: And those are some of the stories. There are twenty
Speaker 1: seven hundred Bloomberg journalists and analysts are working on this
Speaker 1: morning around the world. It is fine thirty nine on
Speaker 1: Wall Street. The following is an editorial from Bloomberg Opinion.
Speaker 1: By threatened into block the enlargement of NATO to include
Speaker 1: Finland and Sweden, Turkish President retch up type Urdawan has
Speaker 1: revived doubts about Turkey's reliability as a member of the Alliance.
Speaker 1: US and European leaders should make clear that air to
Speaker 1: Wan's behavior undermines NATO's collective security and should be willing
Speaker 1: to impose consequences if it continues. After all, this isn't
Speaker 1: the first time aer Towan has threatened to disrupt NATO's
Speaker 1: broad plans unless Turkey's narrow interests are served, NATO can
Speaker 1: afford to subject itself to repeated brinksmanship until Aardwan changes
Speaker 1: his behavior. Turkish participation in NATO planning and exercises should
Speaker 1: be reduced to the bare minimum, and if mild rebukes fail,
Speaker 1: harsher punishments should be considered. NATO's message should be simple.
Speaker 1: The security of the group must not be held hostage
Speaker 1: by one repeat offender. This editor was written by the
Speaker 1: Bloomberg Opinion Editorial Board. I'm David Shipley. For more Bloomberg opinion,
Speaker 1: please go to Bloomberg dot com, slash opinion or opiango
Speaker 1: on the Bloomberg terminal base has been Bloomberg Opinion. Bloomberg
Speaker 1: Opinion editorials can be heard every weekday. At this time,
Speaker 1: terminal customers can read more at O P I N
Speaker 1: go Right now down theaters up two D five points,
Speaker 1: SMP theaters up thirty at the Bloomberg weather forts today
Speaker 1: becoming partly sunny, cooler less you than the high temperature
Speaker 1: than its seventies to like mostly cloudy, low tempo of
Speaker 1: years fifty five to sixty degrees. Markets, headlines and breaking
Speaker 1: news twenty four hours a day at Bloomberg dot Com,
Speaker 1: the Bloomberg Business at and at Bloomberg Quick tape. This
Speaker 1: is a Bloomberg business flash and I'm kmeron Moscal stocks
Speaker 1: and that you want advancing. After President Joe Biden said
Speaker 1: China tariffs imposed by the Trump adminish station. We're under consideration.
Speaker 1: The dollar and treasuries are retreating. US dock index futures
Speaker 1: are rising him at expectations market hunters will help full
Speaker 1: the S and P five hundred back from bear market levels.
Speaker 1: We check the markets every fifteen minutes throughout the trading
Speaker 1: day on Bloomberg S and P futures up about twenty
Speaker 1: seven points down, futures of A hundred eighty four NAS
Speaker 1: day futures up seventy two. The decks in Germany is
Speaker 1: up half percent. Foot See one hundred up nine ten
Speaker 1: percent in the CAC in Paris little change. The nat
Speaker 1: K to twenty five in Japan gained one percent well.
Speaker 1: The Hang Sing in Hong Kong was down one point
Speaker 1: two percent ten. Your treasury down eleven thirty seconds yield
Speaker 1: two point two percent. They yield on the two year
Speaker 1: two point six zero percent. Nine max screwed oil of
Speaker 1: one percent up a dollar thirteen and a hundred eleven
Speaker 1: dollars forty one cents of barrel comes. Gold is up
Speaker 1: one point one percent, or twenty dollars nineties cents and
Speaker 1: one thousand, eight hundred sixty nine dollars thirty cents and ounce.
Speaker 1: The euro one point oh six eight two against the
Speaker 1: dollar British found one point to five seven seven, and
Speaker 1: the yen at one seven point five five. Bitcoin is
Speaker 1: moving higher, up one and a half percent at thirty
Speaker 1: thousand and three hundred fifty dollars. That's a Bloomberg business flash.
Speaker 1: Now here's Michael bar with more on what's going on
Speaker 1: around the world. Michael Karen, thank you very much. President
Speaker 1: Joe Biden says the US would intervene militarily of China
Speaker 1: where to invade Taiwan. Speaking in Tokyo, President Biden's as
Speaker 1: such a move would dislocate the entire region. China has
Speaker 1: reacted to the comments angering Beijing. Chinese Foreign Ministry spokesperson said,
Speaker 1: don't underestimate the resolve for China to protect its territorial integrity.
Speaker 1: It considers Taiwan to break away province C seventeen military
Speaker 1: cargo plane carrying about seventy eight thousand pounds of specialized
Speaker 1: baby formula from overseas landed in Indiana yesterday to help
Speaker 1: ease the shortage. Government officials say this shipment has enough
Speaker 1: product to make five hundred thousand, eight ounce bottles of formula.
Speaker 1: In the NHL Playoffs, the Rangers beat the Hurricanes three one.
Speaker 1: Carolina's still leads the series three games to two games
Speaker 1: to one. In the NBA Playoffs, the Warriors beat the
Speaker 1: Mavericks one O nine one hundred to lead the Western
Speaker 1: Conference Finals three games to zip. Baseball, the Yankees lost
Speaker 1: a doubleheader. The Matt's Red Sox Orioles and Nationals won
Speaker 1: the Giants and A's lost. Global news twenty four hours
Speaker 1: a day on air and on Bloomberg Quick Take, powered
Speaker 1: by more than twenty hundred journalist and analysts more than
Speaker 1: a hundred twenty countries and Michael barn This is Bloomberg, John, Michael,
Speaker 1: thank you. It is five forty nine on Wall Street.
Speaker 1: We are live for the Bloomberg Interhantbroker Studios. Let's continue
Speaker 1: our markets coverage this morning. Bring back our guest economists.
Speaker 1: Dennis Gartman, share of the University of ancoradi down the
Speaker 1: former publisher of The Garment Letter Dennis. For those that
Speaker 1: didn't catch the first part of our conversation, can you
Speaker 1: just reiterate your stance that we are firmly in the
Speaker 1: grip of a bear market. There's no question in my
Speaker 1: mind that where it's firmly in the grip of a
Speaker 1: bear market. I find it amusing John that people want
Speaker 1: to think that we don't enter a bear market tour
Speaker 1: down twenty percent. To my mind, anytime we're down more
Speaker 1: than seven, you should at least be respectful. And I
Speaker 1: think anything under ten more than ten is a bear market,
Speaker 1: is a I think a comical UH threshold number two
Speaker 1: to be concerned about. I think we're in a bear market.
Speaker 1: I think we began the bear market January fifth of
Speaker 1: this year. Bear markets begin at the peak of of
Speaker 1: of stock market. In January fifth was the peak. I
Speaker 1: think we're in a bear market that may last for
Speaker 1: quite some period of time as the FED takes away
Speaker 1: the fuel that has sponsored the bull market for the
Speaker 1: past several years. The fact that the Fed is has
Speaker 1: taken its balance sheet from nine billion dollars I'm almost
Speaker 1: a decade ago to nine trillion dollars as of a
Speaker 1: couple of weeks ago that has been the fuel that
Speaker 1: sponsored the bull market. The ft is to take away
Speaker 1: billion dollars a month, actually beginning in two months. That
Speaker 1: they're going to take sixty five billion for the next
Speaker 1: two months, and then after that billion dollars out of
Speaker 1: the balance sheet to the course of the next several years.
Speaker 1: The fuel that had sponsor the bull market is being
Speaker 1: taken away, and you have to be careful. So as
Speaker 1: I like to say, in a bear market, one who
Speaker 1: loses is the winner. As the chairman of the University
Speaker 1: of Akrons Endowment, I got us to move almost twelve
Speaker 1: of our portfolio out December thirty one of last year.
Speaker 1: We're still going to be down for the year thus far,
Speaker 1: but we're gonna be down a lot less than everybody
Speaker 1: else is, simply because we're losing less. We we moved
Speaker 1: to the sidelines about two year, three year, four year,
Speaker 1: five year treasury security instead, and we I think we've
Speaker 1: done a good job of of mitigating the losses that
Speaker 1: other people are having to experience. So I think the
Speaker 1: spare market lasts for a period of time, probably at
Speaker 1: least several more months, maybe even a year or more.
Speaker 1: And you have to be careful. So I say that
Speaker 1: this is not the time to buy a weakness, This
Speaker 1: is the time to sell into rallies. There was hope
Speaker 1: that the bargain hunters will step in at least for
Speaker 1: the S and P five where the PE overall is
Speaker 1: somewhere around nineteen. Is that a bargain now, yeah, PE
Speaker 1: is when they get to fourteen or fifteen, may well
Speaker 1: be a bargain. P's and nineteen or I think normal,
Speaker 1: uh not not terribly cheap by any history tendency. The
Speaker 1: fact that we got over what price learning is multiple
Speaker 1: six months ago, to me that was extremely high. So again,
Speaker 1: selling to strength is the proper course of action. Buying
Speaker 1: weaknesses not the proper course of action. And I hope
Speaker 1: that I'm clear. We contracted the last quarter. What does
Speaker 1: your betting in terms of recession at this point? I
Speaker 1: think that we're gonna have as as we know, the
Speaker 1: first quarter was down to at one point four percent
Speaker 1: g d P. We're probably gonna have a slight positive
Speaker 1: second quarter GDP, but I think by the third quarter
Speaker 1: will have negative GDP. Again, it won't be the material
Speaker 1: maybe reflective of what happened in the first quarter. The
Speaker 1: definition of a recession is two consecutive quarters of GDP growth.
Speaker 1: That's not going to happen for quite some period of
Speaker 1: time yet, simply because the second quarter numbers will be
Speaker 1: slightly positive, but I think will be in a reasonably
Speaker 1: evident recession by the third quarter of this year, lasting
Speaker 1: until the early part of next year. It will not
Speaker 1: be as ugly as we went through. It will not
Speaker 1: be as ugly as we went through in nineteen seventy
Speaker 1: two to seventy four. It will not be as ugly
Speaker 1: as we went through in the nineteen eighties. But nonetheless
Speaker 1: it's going to be negative GDP growth, and the unemployment
Speaker 1: rate will probably start ticking back up above four maybe
Speaker 1: get back to a more manageable five percent by the
Speaker 1: course of the mid year next year. You brought up
Speaker 1: the seventies. Um, I'm looking at the personal consumption expended,
Speaker 1: your core price index at this point nowhere near replicating
Speaker 1: the nineteen seventies. Does that offer salace? That there is
Speaker 1: marginal solace to be to be gained by that, U
Speaker 1: you and I have We've been around for a long
Speaker 1: period of time. I can remember when I remember when
Speaker 1: the thirty year bond had had a fourteen and a
Speaker 1: quarter percent coupon and you couldn't give it away in
Speaker 1: the early nineteen eighties. That was that was what the
Speaker 1: result of the inflation of the nineteen seventies still being
Speaker 1: linked about are we going to have inflation of about
Speaker 1: five and six percent for protected period of time? Yes?
Speaker 1: Are we going to have inflation numbers that were evident
Speaker 1: back in the nineteen seventies and early eighties, And no,
Speaker 1: we're not going to go back there again. All right,
Speaker 1: broad commodities, they've been in a rally. Is that going
Speaker 1: to persist probably for some period of time. The grain markets,
Speaker 1: I think are still extremely strong. Corn looks like go
Speaker 1: a lot higher. Weed looks like it wants to go
Speaker 1: a lot higher. The only commodity that I'm really not
Speaker 1: terribly bullish of is the bean a soybeans, simply because
Speaker 1: we've delayed the planning of the corn market rather dramatically
Speaker 1: because of the old weather that has persists across the Midwest,
Speaker 1: and at the margin, the last percent of acreage that
Speaker 1: didn't get into corn may go into beans. So the
Speaker 1: only commodity that I'm really not terribly bullish of is
Speaker 1: is soybeans. I'm still bullish of the grain of the
Speaker 1: crude oil. Always remember that markets predated where the front
Speaker 1: months are gaining upon the back months on up on
Speaker 1: updates and down days is a bowl market, and the
Speaker 1: front month is now trading over two dollars and fifty
Speaker 1: cents premium of the second future back that the market
Speaker 1: and crude oil continues to be backquidated and baquidated, markets
Speaker 1: go higher, not lower. Yeah, You've always told us to
Speaker 1: look for the term structure and the indications that that offers.
Speaker 1: Right now, Yes, it needs to be quite bullish that
Speaker 1: the term structure continues to be inverted in crude oil.
Speaker 1: As long as the term structure remains inverted, you cannot
Speaker 1: be short. You have to be long if you're going
Speaker 1: to trade crude oil at all. So they it wants
Speaker 1: to go higher, and I'm I'm still the only positions
Speaker 1: that I have in my own retirement account. I'm long
Speaker 1: of gold, and I'm long of crude oil purveyors stocks
Speaker 1: and that that pay large dividends xx on that sort
Speaker 1: of thing. It's been I've been very fortunate the markets
Speaker 1: moving from the lower left to the upper right in
Speaker 1: that instance, and I'm going to continue to hold them.
Speaker 1: Commodities are settled in dollars, So what's the dynamic is
Speaker 1: the dollar strengthens crude, it makes commodity prices for foreign
Speaker 1: countries a lot more expensive, and it's going to make
Speaker 1: that it's I think supportive of crude of commodity prices generally,
Speaker 1: So be careful if you're a third world country, if
Speaker 1: you're a developing nation, you've got a real problem because
Speaker 1: you've got rising commodity prices and a rising dollar. You're
Speaker 1: getting hurt and both direct and gold. I know you're
Speaker 1: not a gold bud, but how is gold acting as
Speaker 1: a hedge right now or beyond. It's acting quite well,
Speaker 1: to be quite honest, I think the fact that we're
Speaker 1: training above eighteen fifty is very impressive. The fact that
Speaker 1: it's doing so even as the bond market wants to
Speaker 1: try to make some loads. Of the bond market wants
Speaker 1: to try to to go a little bit higher. Rates
Speaker 1: want to come down just a tad, and it's impressive
Speaker 1: that the gold market is holding its rally and doing
Speaker 1: reasonably well. So again, at the University of Akron, I
Speaker 1: moved this out of a year ago almost February last Well,
Speaker 1: actually it's over a year, fourteen months ago. I moved
Speaker 1: three percent of the portfolio out of out of stocks
Speaker 1: into three percent into gold. And I'm trying to convince
Speaker 1: my compatriots on the on the to buy a little
Speaker 1: bit more gold because it's been it's been working. So
Speaker 1: I think of all the of all the hedges that
Speaker 1: you want to have on in place of the inflationary
Speaker 1: circumstances to prevail. You want to own the gold market.
Speaker 1: You want to avoid, if at all possible, cryptocurrencies. Okay, well,
Speaker 1: we heard from Christine Leguards saying and as it's this garbage,
Speaker 1: So you're you're in good company on that front. Economist, dentist,
Speaker 1: government share of the University of acron endowmod and former
Speaker 1: publisher of the Garment Letter as always a pleasure of dentist,
Speaker 1: appreciated head of the cash open on Wall Street in
Speaker 1: the green the down futures right now forty six points.
Speaker 1: That's a rise of half a percent, smp E many
Speaker 1: futures they're up twenty they're up half a percent. And
Speaker 1: then as their futures right now up forty five points
Speaker 1: of four ten percent ten year yield at eighty two.
Speaker 1: That's of four basis points you're listening to Bloomberg Daybreak