Bloomberg Daybreak: April 18, 2022 - Hour 2 (Radio)

the city. Plus officials in New Jersey are looking into a link between a high school and brain cancer. Hi, Michael barn More, I have I'm done Stage Sharon Sports Part Break for the Nets. They lost at the Plazza in Boston. The Mets one five en up in the

Yankees lost five to nothing. That's all straight ahead on Bloomberg Daybreak on Bloomberg eleven Trio, New York, Bloomberg one, Washington, d C, Bloomberg one six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one ninete and around the world on Bloomberg Radio dot Com and via the Bloomberg Business App. Good morning, I'm Nathan Hagar and I'm Karen. Moscow and US not Index futures are lower this morning.

We are coming up to six oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg. U S and P future is down twenty three points and down features down one hundred three NASDAG features down nineties seven. Ten year treasury down four thirty seconds, yield two point eight four percent, a yield on the two year two point four eight percent. Nimex crude oil is down a quarter percent, or twenty seven cents at a hundred six dollars sixty eight cents

of barrel. Comex gold is at one point one percent, or twenty one dollar sixty cents at nineteen ninety six sixty announced. And again they yield on the ten year treasury two point eight four percent. Nathan, all right, Karen, we'll have more on the markets in a minute. First, the latest on the war. The Russian military has the ports city of Maripolese surrounded as it prepares for a new offensive in the eastern don Boss region. Meantime, you crate in officials say at least six people have been

killed in Russian strikes on Laviv. It's a western city that's been a haven for people fleeing the war. We get more in this report from Amy Morris in our Bloomberg newsroom in Washington. In his daily address, Ukrainian President vladimir's Olinsky reiterated his country's resolved to fight the Russian forces in the don Bass region, saying that peace talks with Russia have reached a dead end. Ukrainian Prime Minister Dennis Jamail tells ABC's this week their forces remain ready

to defend Ukraine. Quote to the end. We still are fighting and we have bottled in don Bas region right now, but we do not U do not have intention to s Meanwhile, Ukrainian officials will be in Washington for this week's meetings of the International Monetary Fund and the World Bank to look for financial support in Washington. I'm Amy Morris, Bloomberg Daybreak, Amy, thank you. President Zelinski is urging their prey is it into the United States to visit Kiev

and see the devastation for himself. Ukrainian Foreign Minister Dmitro Kuleba says a meeting between the two leaders could pay the way for new supplies and weapons, as well as discussions on ending the war. We would be happy to see him in our country and it would be an important message of support to US and Foreign Minister kuleba s book on CBS Space The Nation, heard Sundays on Bloomberg Radio. White House sates have said they hope to send a senior official to Ukraine in the coming days.

President Biden has said he wants to visit, but the White House says neither he nor Vice President Harris will make the trip. Well. The war in Ukraine is continuing to have an impact on energy markets. Karen us natural gas prices are trading at a thirteen year high this morning. Suppliers are struggling to meet a post pandemic surgeon consumption. Well. Turning to the economy now, Nathan J. Powell may reinforce bets at the Federal Reserve or race interest rates by

fifty basis points next month. The Fed chair will speak at two events on Thursday, including a panel hosted by the International Monetary Fund, aheaded out the fan issues It's Your Port Card in the US Economy. On Wednesday at Bloomberg's Vinidale Judais reports the magnitude of upcoming interest rate increases may well depend on the Fed's economic intelligence. The Beige Book will provide fodder for next month's policy meeting.

Inflation is running at the fastest pace since the early nineteen eighties, and the prior page book reported an elevated degree of uncertainty. Also on this week's economic calendar, variety figures on the property market, builder confidence, housing starts, and existing home sales. Rising mortgage rates are an issue. Ni Del Bloombergday Break. Alright, Vinnie, thank you know. History suggests the Fed will face a difficult task in tightening monitary

policy enough to cool inflation without causing a recession. Let's get more on that line from Bloomberg's Jnina Young. Good morning, Granita, Good morning Nathan. There's about a thirty five risk of a recession over the next two years. That's according to Goldman Sex. Economists there say the fifth main challenge is to reduce used the gap between jobs and workers and slow wage growth to a pace consistent with its two

percent inflation goal. They say the FED would need to do that by tightening financial conditions enough to reduce job openings without sharply raising unemployment, but achieving a so called

soft landing may be tough. Historically, large declines in the gap in the US have only occurred during recessions, and Goldman's Chief Economists says the recession is not inevitable because post COVID normalizations in labor supply and durable goods prices will help the fit live in New York, I'm rened a young Bloomberg day break al right, reneed to thank

you all. Turning to the equity markets, Much of Europe, along with Australia and Hong Kong, remains shut for Easter, but earnings remain in focus for nearly seventy companies in the SNP five hundred reporting this week, as Bloomberg Channelly Bosti reports, banks will once again be front and center this morning as Bank of America reports earnings today. Investors will keep an eye on whether or not interest income will continue to rise as interest rates rise, or will

interest rates start to pack consumer demands for loans. Trading has also held up that most of the major banks, despite investor's fears of a major slowdown well Bank of America also be able to keep steady and equities trading and fixed income in commodities as some of the other banks have started to benefit more than investors expected. In New York, I'm Shnali Bassik Bloomberg Daybreak, All right, Shinali, thank you. Shares of Twitter are higher in early trading.

Is the Elon Musk saga continues over the weekend, must said the economic interests of Twitter's board are not aligned with shareholders. Musk tweeted those comments after the social media company took steps to ward off his takeover attempt. Well Nathan. Shares of China's d D Global are down more than twenty percent of the company said it will hold an extraordinary general meeting next month to vote on delisting its

shares from the New York Stock Exchange. Is to sign the right Handling Giant is heating Beijing's call to address concerns about how it's data is handled abroad, and turning to the pandemic Karen Shanghai has reported its first deaths in the midst of China's biggest COVID flare up, tens

of millions of barred from leaving their homes. That's led to criticism that China's zero COVID policy is inflicting too heavy a social and economic toll SMP futures now down twenty one points down, futures down ninety four danced deck futures lower by points. Straight ahead, your latest local headlines and a check of sports. This is Bloomberg six oh seven on Wall Street where forty one degrees in Central Park. We've gotta crash on the southbound Iconic by Peekskill Hollow Road.

Details coming up in Traffic First. Michael Barr with more on what's going on in New York and around the world. Michael, thank you very much. Nathan. New York City residents are still recovering from the terrifying shooting of ten people inside the New York City subway and a subsequent thirty man hunt. It comes as many New Yorkers are sharing their fears of rising crimes in the city. New York Mayor Eric Adams says that people should stay vigilant when the encounter violence,

both on the street and on the web. I think social media must step up. There's a corporate responsibility. When we are watching hate brew online, we could identify using artificial intelligence and other methods to identify those who are talking about violence. New York City Police Commissioner Teaching Sewell agrees with the Mayor Adams and praised the work of the entire city last week. We had a number of people looking for him, hundreds of detectors looking for him.

But I think one of the key factors also is our false force multiplayer, which are the eyes and ears of our incredible New Yorkers, and we were able to bring him into custody. Commissioners Sewell and Mayor Adams spoke on ABC's This Week, which can be heard Sundays on Bloomberg. New Jersey officials are investigating a possible alarming link between cases of brain cancer and students and staff at Colonia High School in the town of Woodbridge. Spanning about three decades.

So far, a hundred five people have contracted brain tumors, about half of them cancerous. Environmental engineers are now testing the grounds for contamination. Dr Rief Kamal is the Chief Patient officer for the American Cancer Society. To see any number in the dozens in any particular area, even over a period of twenty five years, is highly unusual and requires some investigation. Dr Reef Kamal says the results are

expected at the end of the month. Philadelphia is bringing back the indoor mask mandate today due to a rise in COVID infections of the mandates are returning. Mask mandates are returning today to the University of Connecticut. A man hunt is underway for the gunman in another mass shooting, this one claiming two teenage boys in Pittsburgh at the crowded party in an Airbnb rented house. Eight others were wounded. Police believe a fight led to the drawing of multiple weapons.

Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael var And this is Bloomberg Natham. Thanks Michael almost six tent on Walster time for the Bloomberg Sports Update with John Show. Thank Nathan. A lot of hype for this first round playoff series that began in Boston. Game one did not disappoint for excitement. The Nets went from down

fifteen to up five. They're up one when a Kevin Durant miss led to the final possession. Here's how it sounded w b Z in Boston not seconds ago. Taylor turns the corner on Drucket eight seconds kick out. Let's not smart, I'll pick find the cutter. Tatums up the buser e's ober eber the Sunda one fifteen one fourteen. Jayson Tatum played at all but three minutes, score thirty one points. Kyrie Irving pored in thirty nine. He had eighteen in the fourth quarter. Each shot he made seemingly

was harder than the last one. Durant held the twenty three shots, just nine of twenty four. It's just an epic. Game one and Game two is Wednesday in Boston. The home teams all won. Miami easily over Atlanta, Milwaukee meet Chicago, Phoenix beeat New Orleans. The Mets have now played three series.

They've won them all, five not being over Arizona City field is David Peterston and four relievers helped the be back to the five hits to run over for Peter Lons always already got the fourteen RBIs to lead the league. That tost the Giants. Tonight, Yankee bats again quiet in Baltimore. The Oriols won five nothing, scoring all five in the eighth inning Yanks that only four hits all singles. They

struck out ten times in two losses. Of the lowly Oriols, they scored one run in twenty in It's Golf at Hilton had Jordan speed at along late bunker shot with an inches of the whole, not ting him to a playoff. Smith won the playoff over Patrick Camley, John stashually were Bloomberg Sports Snathan Okay, John, thanks right now. SMP futures are down twenty points, Stown futures down ninety, NASTAC futures down eighty six. Most European markets are closed for this

day after Easter ten. Your treasury is down five thirty seconds. The yield two point four percent, yield on the two year two point four six percent. The very latest on the war in Ukraine will be checking in next with Bloomberg Exact Getive editor for International Fairs Rosalind Matheson. This is Bloomberg Bloomberg eleven three or whether we got frost wire, friseries and freeze warnings for the Northwest suburbs and parts

of Long Island mid fifties today. Sunshine returns tomorrow will be in the mid fifties then as well, currently forty one in Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot com Blo Bloomberg Business Out and at Bloomberg Quicktape, She's a Bloomberg Business Flash and I'm Karen Moscow US Knock Index futures are lower and treasury yields are rising as investors way the

prospects of faster policy tiening by the Fed. We checked the markets every fifteen minutes throughout the trading day on Bloomberg s and P futures down twenty one point and down futures down ninety five. Nasday futures down eight ten, Your treasury down five thirties seconds. You're two point eight four percent. The yield on a two year two point

four seven percent. NIMEX screwed oils down a quarter percent or twenty six cents and a hundred six dollars sixty nine cents of barrel COMEXS Gold is up one point one percent or twenty one dollars announced. The euro one point oh seven nine four against the dollar, British found one point three zero one one and again is at one twenty six point six one Bitcoin down three point two percent at thirty eight thousand, nine hundred eighty dollars.

That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karn. Ukrainian officials say Russian missile strikes on the western Ukrainian city of Leviv have killed six people. Lviv's regional governors said there were four strikes today. US Treasury officials blame the i r s IS outsized number of audits on low income households on severe underfunding of the agency by Congress.

They were responding to a study from Syracuse University showing households making less than twenty five thousand dollars were almost three times as likely to get audited into Acts AR one and those making two hundred thousand to a million dollars. Meanwhile, don't forget for most of us, today is the tax deadline unless you file for an extension. Game one of their NBA playoff series, the Celtics beat the Nets one

fifteen one fourteen in the NHL. The Islanders lost Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists analyist in more than a hundred twenty countries. That Michael Barr, and this is Bloomberg. Nathan Okay, Michael. Thanks at six nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg day Break. Let's get more now on

what's happening in the war in Ukraine. We're joined live once again by Bloomberg News Executive editor for International Government Rosalind Matheson. Ros. Good morning, Michael Barr. Just mentioned in the news reports of Russian missile strikes on the western city of Leviv. This is just about fifty miles from the Polish border. What does this say about where the war is going? Is Russia becoming more indiscriminated or is

this a strategy potentially? Well, that's right. We had a bit of a pause in some of the missile attacks in the far western part of Ukraine, which is, as you say, very close to the Polish border, but a resumption in the last forty eight hours of missile attacks in and around the Viev and also renewed missile and bombing attempts in and around so the greater Kyev area and it seems like they're doing two things with that.

One is all trying to target infrastructure, particularly to weaken sort of access to field depots and so on be the Ukrainian military, and it's possibly also just a symbolic thing to remind the Ukrainian people of the reach of

the Russian military across the breadth of Ukraine. And that's after the Russians, of course have suffered severe setbacks in the northern part of Ukraine, and then of course most recently with the loss of the flagsheep black flagship black Feet carrier the Moscow, which I sank last week, perhaps just to sort of to say to the Ukrainian people, even though we're concentrating our campaign in the eastern part of Ukraine, if we want to, we can still reach

you anywhere. And we're also hearing and seeing the reports of continued bombardment in the port city of Mariopol. We heard over the weekend from a number of Ukrainian officials saying that the city is all but destroyed. What could that mean for where this war goes from here? Well,

that's right. The city has been basically on its knees for weeks and now fully encircled by Russian troops and yet hanging on are still not fall into completely into Russian control, and in victory there for Moscow would be a big one for Lami Putin in his war so far. It would be the biggest city by far that they've

captured it. It's a major port city in the east, and we give them a base there to really launch their Dombas offensive more broadly, and would give them access to some big ports they can control some of the grain, create trade and so on, and really it would be symbolic at this point as well, on top of all the losses that they've suffered at the run. It's a huge one if they can actually gain control of that city.

But as you can see, Ukrainian troops have been holding on and fiercely resisting uh and at some point that it's probably just a matter of time before that city does fall. And they have been reporting as well that the Russians haven't taken any major cities even nearly two

months into this war. Is the sense that the concentration by the Russian forces is going to remain in the eastern Donbas region and in the port city of Marapole or is there still a concern that Russia could still try to take over all of the country, even with all the losses that they've suffered. At this point, I take over the whole country seems very difficult because, of course,

even the western part of Ukraine is particularly European. You could argue in certain parts of the East that there are sort of a strong sentiment still is sort of somewhat support for Russia in Dombas and elsewhere. So full take I will be difficult none at least because Russian troops have been so deplete it that reinforcement still would

need to come. And they probably need to get a victory at least initially for the Russian president in the East in the next couple of weeks, and they run up to May nine, which is their anniversary of their victory day, and world will twosa he's got something to show for it, So it's probably best if they really focus their efforts there and then regroup after that. But at this point it's it's it's hard to see how they can extend much further beyond the areas in the

east and the southeast that they seek to control. As an initial step, yeah, we are looking to May nine as a potential pivot point in this war rise in our last minute here, where could things be going in terms of negotiations? Obviously we've heard from both leaders saying that negotiations are at a dead end. Here is there anything happening behind the scenes that our teams have been

reporting in terms of talks between Russia and Ukraine. We do know that the video talks have been going on regardless as have been a more negotiator level than anything too serious. But we also that the Russian billionaire Roman Abramovich has been in Ukraine and he's been something of a mediator, self styed mid stealth style mediator perhaps so far in this conflict, but certainly attempting to sort of

support greater talks between Russian and Ukraine. And he's been back in Ukraine again the past few days, which is perhaps just a glimmer of hope that that that we might get to a point where we can get to the table again, at least at the foreign minister level sometimes seen but certainly really big obstacles to a fully fledged peace agreement happening anytime soon. Thanks as always, ros good having you on with us. Roslyn Mathis and Executive

editor for International Government for Bloomberg News. SFP futures right now down twenty points down, futures down ninety three, Dancedack futures down eighty six points, and the tenure Treasury is down five thirty seconds yield two point eight four percent. Just ahead, pressure on President Biden to visit Ukraine, and

Bank of America wraps up big bank earnings. Five things you need to know to start your day Just to head on Bloomberg Day Brain Bloomberg eleven three oh weather frost advisors and freeze warnings for the far Northwest suburbs and parts of Long Island will have a late rain possible with highs in the mid fifties. Sunshine returns tomorrow Right now forty one in Central Park, broadcasting live from

the Bloomberg Interacted Broker's studio in New York. Bloomberg E Looming Freedom to Washington, d C, Bloomberg ninety nine one to Boston, Bloomberg What Old six one to San Francisco, Bloomberg n sixt to the Country, Sirius XM Gento one nineteen and around the globe, The Bloomberg Business APT and Bloomberg Radio dot Com This is Bloomberg Daybreak mid sixty on Wall Street. Good morning, I'm Nathan Hagar and I'm Karen Moscow. We are about three hours away from the

open of US trading. It's time for the five things you need to notice start your day. Brought to you buy Interactive Brokers Global Analysts. It helps you find you global investment opportunities to diversify your portfolio and discover undervalued companies that may have greater growth potential. Try i v k R Global Analysts today at ibkr dot com slash g at First. The war in Ukraine. Russian forces have encircled the port city of Mariopol, but defenders have yet

to surrender. Ukrainian President Vladimir z Lenski says talks to the Russian president Vladimir Putin are at a dead end, and tell CNN he hopes for a visit from US President Joe Biden. I think and I think he's it's his decision, of course, and and about the safety situation depends. Ukrainian President vladimir's Lenski wants Boughten to visit, but m House Press Secretary Jen Saki says not if the president nor Vice President Kamala Harris will make the trip I

meantime in Washington, Karen. Federal Reserve Chair Jerome Palace set to speak Thursday out of the U S Central Banks quiet period. He may reinforce sentiment the federals interest rates by a half percentage point next month. The Fed's next meeting begins May three, well as the Federal Reserved titans

monetary policy. Nathan one major Bank says there's more than a one in three chance the US will enter a recession, and again more alive from Bloomberg's renied to Young, Good Morning Nida, Good morning Karen, there's about a thirty five percent risk of a recession over the next two years. That's according to Goldman Sex. Economists there say the Fed's main challenge is to reduce the gap between jobs and workers and slow wage growth to a pace consistent with

its two percent inflation goal. They say the FED would need to do that by tightening financial conditions enough to reduce job openings without sharply raising unemployment, but achieving a so called soft landing may be tough. Historically, large declines in the gap in the US have only occurred during recessions, and Goldman's chief economists says the recession is not inevitable because post COVID normalizations in labor supply and endurable goods prices will help the Fed. Live in New York, I'm

reneed a young Bloombirth day break. All right, we need a thanks. Turning to Wall Street, it's a busy week of earnings. Bank of America leads the way as nearly seventy companies in the SNP five report this week, and Equity Marcus in much of Europe, along with Australia and Hong Kong remains shot. For Eastern Nathan Natural Gas search to a thirteen year high, raising concerns about a global fuel crunch and long term inflation. Oil reversed earlier gains.

And that's the five things you need to know to start your day, brought to you by Interactive Brokers and straight Ahead your latest local headlines, plus a check of sports. And this is Bloomberg. Thanks Karen sixty three On Wall Street, forty two degrees in Central Park, we have an accident on the inbound lower level of the fifty ninth Street bridge that Peter Van will tell you about in just a few minutes. First, Michael Barr with more on what's

going on in New York and around the world. Good morning, Michael, Good morning Nathan. Many New Yorkers are sharing their fears about crime after last week's terrifying shooting of ten people inside the New York Cities subway and a subsequent thirty hour manhunt. New York City Police Commissioner Teaching Sewells says that after the subway shooting, the NYPD will be putting a new emphasis on building greater ties with the community.

We keep saying that public safety has shared responsibility. This recent case illustrates just that, and everyone came together. So we need to build strength in our communities with the police. Mayor Eric Adams agrees with Commissioners Sewell and says crime is hurting big cities all across America. Now, I say, over and over again, there are many rivers that feed the sea of violence. This is a national issue. That's not a rest state. Blue state and fat rest states

experienced a higher murder murder rate then Blue states. Mayor Adams and Commissioners Sewell spoke on ABC's This Week We Can be Heard Sundays on Bloomberg. Two teams are dead and eight other people are wounded after a shooting an house party in Pittsburgh. Police say it happened at a rented Airbnb. Investigators say they were roughly two hundred people inside the home when the gunfire erupted. Police are still

looking for the shooter. New Jersey officials in Woodbridge are investigating a possible alarming link between cases of brain cancer and students and staff at Colonia High School. In the past three decades, one people have contracted brain tumors, about half of them cancerous. Environmental engineers are now testing the grounds for contamination. Doctor a Reef Kamal is the Chief

Patient Officer for the American Cancer Society. I'm pretty concerned, and if I were a parent or a community member, I would want to know a little bit more about what's happening. Brain tumors are relatively rare. Dr Kamal says the results are expected at the end of the month. Philadelphia is bringing back mask mandates today. It comes as there's a steady increase in cases for the b a

T subvariant of COVID nineteen noted in many states. White House COVID nineteen Response Coordinator Dr ashi's Jah says, just because this strain appears to be minor doesn't mean the threat from COVID as a whole disappears. The pandemic is not over as much as we all wish it were. Um, we've were in much much better shape than we were,

but we've got to keep plugging away. Dr John spoke on ABC's This Week, which can't be here at Sundays on Bloomberg Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalist and analysts more than a d twenty countries. Michael Barrn, this is Bloomberg. Nathan. All right, Michael, thank you. Almost six thirty six on Wall Street time for the Bloomberg Sports Update with John says, Thanks Nathan, it's only

game one, it's only a first round series. You had a classic yesterday in Boston between the Celtics and Nets,

a taste of what could be a long series. The Celtics were up fifteen and the third quarter, and then the Nets went up by five and the fourth Boston pulled it out one fourteen on a Jason Tatum lay up at the buzz or you set up a Marcus smart pass and Tatum able to twist away from Kyrie Irving, who in defeat, put on a show for the Nets in the fourth quarter eighteen fourth quarter points, many of Kyrie shots with a high degree of difficulty the playoffs,

So there there's a level of efficiency that you want to have throughout the possessions that you're able to play uh in a game like this. So I was just really zeroed in on what the mission was, what the goal was, and it was just to play our best basketball, weather the storm, deal with the ups and downs. Know that they're gonna make runs. We're gonna make run every finished with thirty nine the Excel. They heard it from Boston fans and he responded a couple of middle finger salutes.

Game too Wednesday in Boston, the Mets won five nothing while the Yankees lost five nothing. Mets in Diamondbacks scoreless until the sixth day. The Mets one of the combined five hits shutout and they're off to a seven and three start. Yankees and Orioles scoreless until the eighth nester Cortes terrific on the mountain for the yankt struck out twelve in five innings. He had an immaculate inning in the fourth, three strikeouts on nine pitchers and Cortes and

two starts yet to lower run. But Orioles broke the scoreless tie in a pinch single by x yank rougnet O Door Jonathan Elisa got so good last year out of the bulk and he's got an eight and a half e R. This going to Yankees loves the series.

The lowly Orios. John spractually are bloombird Sports. John thanks sixty seven on Wall Street Time once again to take a look at stocks and some of the names moving in the pre market with Bloomberg Radio and TV Markets correspondent Creety gooped up on a down start to the week, crety, but some sucks you're moving thanks to one Elon Musk. Yes, he's certainly moving the market. Twitter Tesla. They're all moving to the upside for two separate reasons. So ill les dig into a Twitter shares t w t R up

two point three percent. They were up as much as about four percent earlier in the session, so you do see a little bit about that momentum. Losing but still up two percent. Not too shabby. This comes after Elon must said the economic interests of the board are not

aligned with shareholders. Meanwhile, Twitter the board on Friday set up a shareholder rights plan in which if an investor requires fifteen percent of the stock without prior approval, it ensures that anyone can take control of Twitter through open market accumulation, and it pays shareholders in a pro brit control premium. Nathan, that's a lot of fancy talk for just saying people can actively buy Twitter on the open market. If they accumulate over then they have a little bit

more control. What it does for Elon Musk is it means that it can potentially thwart its hostile acquisition bits instead of buying the company out directly up for a big amount. They say, well, you have to do this through the market and through what the stock market is offering. So you do see Twitter shares twt R once again seeing a little bit of a bid off of that

up about over two percent. Tesla on the other hand, t s l a is your taker, up seven tenths of one percent, says it may restart production at a Shanghai factory as soon as late afternoon Monday. Now we know that officials in Shanghai have been encouraging companies to restart production after halting due to the city strict lockdown. Now, of course, they also use closed loop systems, which means that workers live on site at their factories and then

leave the next day. Um and now more than six firms have restarted operations, including Quantic Computers, which makes laptop for apples. So we have to see if Tesla follows through on that plan. The expectation is late afternoon today, so in a couple of hours we'll know if that

deadline holds true. T s l A up seven tents of one percent, Nathan, and speaking what's going on in China, creaty look at a d r S this morning and right on top and the early trading is Steed Global d d Global d I d I S, your taker down almost twenty percent. It was sound as much as

twenty percent earlier in the session. This comes after they agree to hold an extra extraordinary general meeting on May twenty three to vote on d listing its shares from the New York Stock Exchange, so that saga also continues. Speaking of soccer, as we're talking about activist investors, Nathan,

I'll give you one last one Southwest Gas. S w X is your taker, up seven tenths of a percent after saying it's board his authorized review of a full range of strategical turn is, including a potential sale, saying that Carl Icon is invited to participate. We know he's been very local, vocal, excuse me about how they're going to spend their money and how they're going to raise it, So now he's very much a part of that process. S w X up seven tents of one percent and

always an activist investor to why watch all right? Bloomberg Radio and TV Markets correspondent Crety Gupta with us this morning. SMP futures now down eighteen points down, futures down eighty six, dance Deck futures down seventies seven points as we await earnings spenty minute now from Bank of America. Stay with us. This is Bloomberg. Bloomberg Day Break, brought to you by

ancient accountants and advisors. Challenging times call for proactive advisors who helped minimize taxes, increase cash flow, and create opportunities for the future of your business. Visit Ancient dot com Markets, Headlines and Breaking News twenty four hours a day at Bloomberg dot com, The Bloomberg Business at and at Bloomberg Quicktape is a Bloomberg Business lash. And I'm Karen Moscow and we've been watching Bank of America earnings crossing the Bloomberg.

We're gonna break those down in just two moments from now. Futures this morning are moving lower, and we want to get the first word breaking news desk for today's morning call. Here's Bell Maloney, Bell, good morning, and good morning, Karen. That's right. US features are in the red right now at down, Futures down eighty points, SUPs dropped seventeen. Will

Nez that futures decline by seventy two. The US ten years at two point eight five percent, Gold is up eleven, oil is a little changed, and bitcoin is down by three percent. Japan fell one point one percent overnight, while up markets are closed today and back in the US on the economic front, it's ten o'clock the NHB Housing

Market Index. Regarding earnings this morning, you mentioned Bank of America Q and trading revenue x d V eight beat estimates, and another news Goldman Sachs that the odds of US recession are about thirty five per cent over the next

two years, wrapping things up. Gap raised to equate over at Morgan Stanley, Wendy's was cut to market reform over at BMO Live from the first Breaking News destcom Bell Maloney care all right, Bill, thank you, and here lie breaking news over your Bloomberg tie squawk on your terminal s q U A w K and again more on those Bank of America earnings in just minutes from now. But first you want to see what's going on around the world, and here's Michael bar Michael Karen, thank you

very much. The Russian military says about Ukrainian fighters are still hold up inside a steel plan in the Ukrainian port city of Maryupol. Ukrainian forces there to find Russian demands to surrender the plant. Officials say even though Maryuple remains under Ukrainian control, its residents are suffering unbearable conditions. North Korea says it has successfully test launched a newly developed tactical guided weapon. South Korea's military says it detected

two launches. They are the latest in a series of tests by North Korea that outside experts say is meant to expand the country's nuclear arsenal. In Game one of their NBA playoff series, the Celtics beat the Nets one fifteen one fourteen. In the NHL, the Islanders launst global news, running four hours a day on air and on Bloomberg Quick Take Power bout more than the twenty seven hundred journalists and analysts in more than countries. I Michael Barr,

and this is Bloomberg Naker. All right, Michael, thank you. We are live from the Bloomberg Interactive Broker studios where it's six forty nine on Wall Street, and we are watching shares of Bank of America with first quarter earnings crossing the Bloomberg terminal. They are up about one percent in the pre market. Let's break down some of these numbers. Now. Alison Williams is with US senior analysts for Global Investment

Banks at Bloomberg Intelligence. Allison, we heard the headline from Karen and from Bill Maloney, first quarter trading revenue with a about a four hundred million dollar beat. What else stands out to you? So they did beat in trading on both thick and equities. So that's a positive, I think. Um, there's also a little bit of a relief, perhaps related

to their capital ratio UM. You know, that's an area where we've seen some unexpected negative surprises UM this quarter, just in terms of most people expecting those ratios, expecting book value to come down a little bit with UM some of the move that we've had in long term interest rates, so that's UM. That's a little bit of

a relief. On the net interest income side, UM looks about in line, but I think that you know, for the net interest income, it's really going to be what we hear on the call in terms of the outlook. So I talked a little bit about long term rates are negative for capital, but short term rates are very good for the earnings, So we'll hear a little bit about that. UM. The other area of focus is UM credit. They actually had a little bit of a net reserve release,

so we've seen mixed trends there across the banks. I think part of that just depends on what their loan book looks like and what their expectations were in the quarter. But Bank of America did say that they did build reserves related to Russia UM, but despite that, they had a net reserve release. So that is similar to what we saw at City Group. UM both of those in contrast to the build that we saw at JP Morgan.

It is interesting to hear Baker America say that they did put some in reserve due to exposure to Russia. Is that something of a surprise given where Bank of America's stands in terms of its overseas exposure. No, I think that you know where where they have so they basically talked about the fact that they have no material direct exposure to Russia. UM, they did note about seven

dred million in Russia lending and counterparty exposure. Where you're having the banks I think where you're seeing some of the reserves building are UM, you know, potentially the large corporate UM, large multinational corporations that somehow have an exposure and it's more just un sort of single name by name, and I think that is UM where we're seeing, UM the exposure or Bank America. I haven't seen all the details. UM. I gave you kind of a couple of the numbers

that we saw in terms of the lending and counterparty exposure. UM. But but UM, I think this really relates to some of the large corporates and it's small. I mean, despite the fact that they had some build. They still had a three hundred and sixty two million net reserve release, So that tells you certainly that the exposures are manageable.

All right. Bloomberg Intelligence senior banks analyst Allison Williams with us this morning as we continue to watch those headlines on Bank of America's earnings crossed the terminal shares right now up about three tenths of one percent. Right now, we want to check what's going on in d C with some of the top stories they're including the Ukraine seeking financial support at the spring meetings of the World

Bank and International Monetary Fund in Washington. On a VC's this week, Ukrainian Prime Minister Denis smil said the war with Russia has his country running a deficit of about five billion dollars a month. We need more sanctions from our West partners. We need more ammunition to protect our country and European borders. We need more finances to uh support our people. Our refugees are internally displaced persons. Also making news, Ukrainian President vladimir's Lensky urging President Biden to

come to Kiev. Foreign Minister Dmitro Kuleva tells CVS S

face the nation. It would be more than symbolic. The personal meeting between two presidents could also pay for the way for new supplies and of weapons of American web US weapons to Ukraine and also for discussions on the political possible political settlement of this conflict, Face the Nation and this we can both be heard every Sunday right here on Bloomberg Radio and Bloomberg Government Reporter Emily Wilkins is with us now from studios in Washington, d C.

Looking ahead to these spring meetings of the World Bank. In I M. F Emily, we know Ukrainian foreign ministers are in Washington. What kind of support are they looking for? What kind of support could they get? So, as you mentioned, Nathan, they're currently running a budget deficit of about five billion dollars a month according to Ukrainians finance ministers, and they're seeking funding they say is needed for humanitarian as well

as social obligations. Oh, we have her seeing reporting from the Wall Street Journal that the World Bank is planning a one point five billion dollar funding package to support Ukraine. And certainly we've also seen the White House and and other government's pledge additional monetary support to Ukraine as the war is at the point where it seems like it's

going to be continuing for quite some time. And we've heard from a number of Ukrainian officials, including President Zelenski, looking for physical support for them from President Joe Biden. They're urging him to come to Kiev. What is the openness from the White House to that possibility. Well, Biden has said that he would like to go, but the reality is is to pull off a trip of that magnitude, to have the security in place to make sure that Biden is safe, to make sure that this doesn't wind

up escalating things with Russia. It's very complex right now. So US National Security Advisor Jake Sullivan, he told NBC this weekend they don't have any current plans, but we are hearing that the White House is planning to send another senior administration official. It won't be Vice President Kamala Harris. Jensaki batted that down last week, but it could be a cabinet secretary or another top military official that winds

up blowing to Ukraine. On the US's behalf all right, Bloomberg Government reporter Emily Wilkins with the update from Washington, d C. Emily Thank you as always. Read more about these stories on Bloomberg dot com or on the Bloomberg terminal, and you can follow all the latest on Bloomberg Radio in Washington at Bloomberg and one oh five point seven FM HD two. Karen Aliy Nathan thank you. Six fifty six on Wall Straight, we turned to news and science and technology now with a Bloomberg and j I T.

Stam repool art. It is brought to you buy New Jersey Institute of Technology, ranked to top fifty national public university by US News and World Report and at top ten for best career placement among public schools by the Princeton Review. More at n j I T dot E DU now Here's just making news and science, technology, engineering, and math. Shanghai has reported its first depths in the midst of China's biggest COVID flare up. Tens of millions of people have been barred from leaving their homes as

part of lockdowns. That's lead to criticism that China's COVID zero policy is inflicting too heavy a social and economic toll. Pakistan is cutting electricity to households and industry as the cash trap country can no longer afford to buy coal or natural gas from overseas to fuel it's power plants.

The South Asian nation is struggling to procure fuel from the spot market after prices of liquefied natural gas and coals searched to records last month as the war in Ukraine exacerbated supply shortfalls and it classified out of light. For the U s National Reconnaissance Office has been launched into space from California. It was the first mission by the n r ROW to reuse a space X rocket booster.

The n r RO is the government agency and charge developing, building, launching, and maintaining US satellites that provide intelligence data to senior policymakers, the intelligence community and the Defense Department, and as the Bloomberg nj I t STEM report, futures this morning are moving lower. SNP futures down about eighteen points, Dow futures down eight three, NASDAG futures are down seventy three, and

the tenure Treasury down five thirty seconds. The l two point eight four percent, and the yield on the two year two point four six percent. Bloomberg Surveillance straight Ahead for Nathan Hagar on Karen Moscow, and this is Bloomberg