Bloomberg Daybreak: April 19, 2022 - Hour 1 (Radio)

bring back into her mask Man dates. Plus, there's a rise in migrants, excepting across the US Mexico border. I like la bar more ahead, I'm done finished ower sports. Yankees are in Detroit that I've met, have a double lead with the Giants, NBA playoff wins for Philaelpia Dallas

and Golden Space. That's all straight ahead on Bloomberg day Break on Bloomberg E Living three O, New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nineteen and around the world on Bloomberg Radio dot com via The Bloomberg Business. Good morning, I'm Karen Moscow. I'm Nathan Hagar. Bloomberg Daybreak brought to you by hc Waynewright. Register now for the hc W Global Investment Conference, a hybrid event one to six.

Go to hc W Events dot Com. HCW reserves the right in discretion to accept the reject registration or admission. Well. US futures are lower this morning, and we're at five oh one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg SMP Future is down five points. Dal Future is a little change NOWADAY Future is down forty five ten. Your treasury down eleven thirty seconds, YEL two point eight nine per cent.

Nathan Karen will have more on the markets in a minute. First, we need to bring you the latest on the war. Rusha's assault on Ukraine's don Boss region has begun. Ukrainian President Vladimir Zelinski says they will not give up without a fight. Amy Morris has details from our bloombergs room and Wash Shington. Zelinsky said Russian forces have launched a new campaign to conquer the dun Boss region in the east of Ukraine. A significant part of the entire Russian

army is now concentrated on this offensive. No matter how many Russian troops are driven there, we will fight. Meanwhile, the US military will start training Ukrainian troops on how to operate the howitzers that the US is sending Ukraine. Pentagon spokesman John Kirby that training will occur outside of Ukraine and then then we reintroduced back into their country to train their colleagues. This as the remaining defenders of Mariopol are surrounded by Kremlin forces, but they have not

surrendered that keyport city in Washington. I'm Amy Morris Bloomberg daybreak, All right, Amy, thank you about President Joe Biden will hold a call with key allies later today to discuss Ukraine. Meanwhile, the US has backed off any suggestion that its officials with boycott Group of Twenty meetings this week if Russia takes part. The Treasury to Irvin, says Secretary Chanted Yellen,

will participate in some sessions this week well. The war has in part led the World Bank to cut its two economic outlook Karen and the Bank's chief economist Carmen

Reinhart added she would not rule out further downgrades. In an interview with Bloomberg, Reinhart laid out the downside risks facing the global economy, array of disruptions from China's new lockdowns, from the impacts yet to be fully felt of the Russia Ukraine war on on food prices, on global supply chains, and if you know, bad came to worse, Uh, could

there be another episode of financial contagion? The World Bank Chief economist Carmen Reinhart says growth will slow to three point two percent from a January prediction of four point one percent. Meanwhile, Nathan Saying, Louis FED President James Bullard said the FED needs to move quickly to raise rates to around three and a half percent this year. He also says that central bank should not roll out rate

increases of seventy five basis points to fight inflation. I would point out that uh cycle UH where we raised the policy rate three basis points in the year, and in that cycle, UH, there was a seventy five basis points increase at one point UM. So I wouldn't rule it out, but it's not my base case here, saying theist FED president James Bullard also said that talk of a US recession is premature. Well, Bullard's hawk ish comments

maybe piling onto weakness for a traditional haven currency. The Japanese yen is weaker against the dollar for a thirteenth straight day. It's extending its longest losing streak in at least a half century. Right now, the end is trading at one point three four against the dollar. Now. The latest on the pandemic Nathan and a major development in the air, The Transportation Security Administration says it will no longer enforce the COVID mask mandate on public transportation, and

Bloombergette Baxter has the story. This after a Florida judge struck down the remainder of the mandate, saying the CDC went too far. The t s A says for now it will not enforce a masking bandate. White House Folks Women Jimsaki says the ruling is disappointing. We also think the mask commandate should be in place and that it's safer for individuals for flying to continue to wear masks. So the major US air carriers have now made masking

optional for the time being. Delta United Southwest Alaska, American. Some of the international flights will continue to have the mandate for now. In San Francisco, I'm at Baxter Bloomberg Daybreak, All right, and thank you. Turning into corporate earnings, we hear from more than a dozen companies in the SMP five hundred today. They include IBM, Johnson and Johnson, and Netflix.

Bloomberg's Tom Busby joins us with a Netflix preview. Shares of the streaming leader have taken a real beating since its last earnings report in January, down about thirty three percent. That follows a disappointing outlook for subscriber growth amid a flood of competition, but key to its first quarter results out later today the impact of a recent price increase and the suspension of service in Russia, and both could

have a negative impact on results. Still, forecast goal for two point eight million subscriber ads for a total of nearly two hundred twenty five million worldwide. Look for earnings per share of two dollars cents and revenue of seven point nine five billion dollars. Tom Busby, Bloomberg Daybreak, All right, Tom, thank you on new developments this morning on Elon Musk's

forty three billion dollar pursuit of Twitter. We get the latest line from Bloomberg's renied a Young, good Morning Ready down, Good Morning Care, and Bloomberg sources say Apollo Global Management is considering backing a potential deal for Twitter and could provide Elon Musk or another bidder like private equity firm Tomo Bravo, with equity or debt to support an offer. The participation would come in the form of credit or

preferred equity. Of filing from last week shows Morgan Stanley as advising Musk in his unsolicited offer to take over Twitter and to take it private, and Twitter is enlisting the help of Goldman, Saxon, JP, Morgan Chase to respond to Musk's hostile bid Live in New York, I'm rened a young Bloomberg day Break, Okay, Nita, thank you. On a bullish stock call on Musk's company, Tesla, cathy Woods Our Investment Management now expects shares of the electric carmaker

to more than quadruple to forty dollars by six. Cathy Wood has long been an ardent supporter of Tesla and CEO Elon Musk. Tesla is the largest solding in woods flagship our Connovation ETF. This is Bloomberg and it's now five oh seven on Wall Street where a forty five degrees in Central Park. We are under a flood watch. It's got the hutch close from Cross County Parkway to Lincoln Avenue. Tails on all the closures coming up in traffic. First Michael Barr with more on what's going on in

New York and around the world. Good morning, Michael, Good morning Nathan. Now that an indoor mask mandate is back and plays in Philadelphia, will New York City do the same? COVID nineteen case numbers are rising in several cities. Mayor Eric Adams, who had been quarantining due to having the virus, was asked about mass rules in the city. We are advising New Yorker is uh to wear a mask, but we're not at the point of mandate right now. We

are hospitalizations at a steady level. Depthside of steady level, Mayor Adam says, we are encouraging New Yorkers to wear the mask if you feel uncomfortable. The Supreme Court is declining to wade into a lawsuit filed by four New York City public school employees it's over a policy that

they'd be vaccinated against COVID. Nineteen Judge's ruled Amazon must reinstate a former employee who was fired in the early days of the pandemic after leading a protest in Statn Island calling for the company to do more to protect workers against COVID. The judge rule that Amazon must offer the former worker, Gerald Bryson, his job back, as well as lost wages and benefits. The Biden administration is pledging

not to litter in space. Vice President Harris said that the US no longer engage in anti satellite missile testing in space. Harris explained the testing causes debris and it's dangerous to research and facilities like the International Space Station. A piece of space debris the size of a basketball, which travels at thousands of miles per hour, would destroy a satellite. Even a piece of debris as small as

a grain of sand could cause serious damage. Vice President Harris says we are the first nation to make such a commitment and called on other nations to follow. The number of migrants attempted to cross the US Mexico border has surged in recent weeks. It comes as the US prepares for even larger numbers with the expected lifting of

a pandemic era order that turned away asylum seekers. Immigration authorities stopped migrants more than two hundred twenty one thousand times along the Southwest border in March, the highest in nearly two decades. 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 tw countries.

Michael Barr, This is Bloomberg, Nathan, Michael, thank you. Count up to five ten on Wall Street time for the Bloomberg Sports Updake, Good morning, John stonsho Your morning, Nathan. First of the game two, his first round of the NBA playoffs in Philadelphia, six years a second straight route of Toronto on ninety seven, Joe l m being scored

thirty one in Dallas. The MAVs were again without their star Luca Donston, but Jalen Brunson pot in a career I forty one point one one oh four over Utah to tie that series at one, Golden State by twenty over Denver. Steph Curry off the bench thirty four points in just twenty three minutes, and the Warriors go up to Zip the Celtics. Marcus Smart named Defensive Player of the Year, first guard to win since Gary Payton and Peyton went to Celtics practice in Boston to tell Smart

he had won. Celtics Nets Game two tomorrow. Ian Boston Rangers on the Winnipeg Jets tonight at the Garden, Carolina one last night. So the Keynes lead the Rangers by two points as they battled the win. The Metropolitan Division Mets and Giants reigned out. Single admission doubleheader starts at three o'clock. Tyler mcguil. You have to allow a run and two starts goes in the opener Max Scherz or the nightcap his first met start at City Field. Garrett

Cole for the Yankees in Detroit. Jake Garrietta retiring at age thirty six. He struggled in recent years. Arietta won the nls I Young Award and they in two thousand fifteen. But the Cubs NFL Draft starts awake from Thursday in Las Vegas. Been a lot of quarterback movement this offseason. Will there be another move before the draft? Carolina said to be trying to acquire Baker Mayfield from Cleveland, Who's

gonna do? QB and Deshaun Watson speaking of QB's latest edition of Made for TV Golf June one in Las Vegas. Tom Brady and Aaron Rodgers versus Patrick Mahomes and Josh Allen. All four are single digit handicapped golfers. Johns Dashar Bloomberg Sports David, is there nothing they can't do? Thank you? John SMP futures down six point, staff features down seventeen, nastic futures down forty five points. The tenure treasury right now down eleven thirty seconds, the old two point eight

nine per cent. This is Sploomberg Bloomber eleven three oh weather flood watch till eight this morning. It'll turn mostly sunny this afternoon, breezy with highs in the mid fifties near sixty, and sunny tomorrow low sixties, mostly cloudy on Thursday. Right now rain and forty five degrees. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quick Tape. He's a Bloomberg Business Flash and I'm Cameron Moscow. Stocks in

Europe are lower. Bond yields are climbing as markets reopened after a holiday amid hawkish comments by Federal Reserve officials and Russia's renewed campaign in eastern Ukraine. Um Stocked index futures are lower, and we checked the markets every fifteen minutes throughout the trading day. On bloomberg S and p futures are done about eight points down. Futures down twenties seven nasdack future years down fifty two the decks in

Germany's down one percent. Ten year treasury down ten thirty seconds, yield two point eight nine percent. That yield on a two year two point four six percent. NIMEX screwed oil is down one and a half percent on a dollar fifty nine at a hundred six dollars sixty two cents of barrel. Comics gold is down three ten percent or

six dollars twenty cents a nine thirty announced. The euro one point o eight o two against the dollar, British pound one point three zero three five, the yen at one twenty eight point three two, and bitcoin is it'll changed at forty thousand and six d eighty dollars. Today. We are watching for reports on housing starts and building permits at at eight thirty Wall Street time, and Netflix is among companies scheduled to report earnings today. That's a

Bloomberg business flash. Now here's Muckle Bar with Moore and what's going on around the world, muncle, Good morning, Good morning Karen. After days of regrouping and reinforcing, the Russian military began it in phase of the war in Ukraine. Ukrainian officials said that the Kremlin's forces launched a full scale ground offensive to take control of the country's industrial heartland,

the Dunbass region. Most major US airlines are no longer requiring travelers or employees where face coverings on domestic in some international flights. The decisions came after a US judge overturned to federal mandate for passengers to cover their faces. In MLB, the Red Sox lost The A's beat the Orioles five one in the NBA Playoffs. The Warriors beat the Nuggets to lead the series two games to zip.

In the NHL, the Devil's and Capitals one Global News twenty four hours a day on air and on Bloomberg Quick Take power by more than twenty seven hundred journalists analysts more than a hundred twenty countries. Michael Barron, this is Bloomberg Nain. Okay, Michael, thank you. It's five nineteen on Wall Street Line from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak on a morning that seems like new phases is turning out to be a theme this morning.

The war in Ukraine potentially entering a second phase in the Don Boss region, and the US response to COVID nineteen entering a new phase on public transportation. Let's get into all this this morning, Bloomberg Washington correspondent Joe Matthews with US host of Sound on here on Bloomberg Radio. Joe,

let's start with the war in Ukraine. As we've been mentioning, the President, Vladimir z Olinski is saying that the new phase is under way now in the Don Boss and we understand President Biden is going to be holding another call with allies to weigh the response. A lot of these calls. The latest one will happen this afternoon with the leaders of France, Germany, Italy, Japan, Canada, Poland, Romania, the UK. They're gonna be talking about the war effort

and specifically coordinating the delivery of weapons. You know, we've been sending weapons to Ukraine, not just the US but our European allies now for a couple of months, Nathan, and and the repeated refrain that we hear from Kiev is we need more, better, faster. A lot of this stuff is taking time to get there. And now that, as you point out, President Zelenski is calling this, uh the new phase, the battle for done Boss has begun. There is a new urgency to get some of the

heavier equipment in the hands of Ukrainian forces. What kind of equipment show are we talking about here? We've heard the talk in the past about fighter jets. It seemed like that was off the table. What what, what sort of equipment could we be looking at? Those fighter jets appear to still be off the table, by the way, the big twenty nines from Poland that never got to Ukraine. Although we have been apparently clearing helicopters m I seven teams,

which are Russian helicopters. We already gave several earlier this year. More on the way. But the idea with these weapons, Nathan, is to create some distance. This is gonna be a slightly different strategy now as we head into open warfare in rural country sort of areas as opposed to the street to street city fighting. Howitzer's are a major component of this. The big field cannons that can shoot projectiles

at very long trajectors twenty five miles away. These are the types of weapons that we want to get over there now that are actually in transit, along with missiles ground to air missiles that can take out Russian jets and could in fact be more effective than the big according to the Pentagon, is there still a concern Joe, that more heavy weaponry could draw the US and NATO more directly into the war. We saw that attack apparently just yesterday in Leviv, very close to the border of Poland,

only about forty miles away. That's a big deal. That's been a base for refugees, for government officials, uh and for news media, the reporters all over Laviv, crossing back and forth. Of course, the president was along the border of Poland not that far from there. And so yes, there are a lot of concerns about this widening sort

of conflict here. And it was just on Sunday morning that Senator Chris Coons, the Democrat from Delaware who now sits in the seat once held by Joe Biden, a very close ally to to Biden, and this White House suggested openly on Sunday Morning television that we start having the conversation about American ground troops potentially being in Ukraine. It's something that the President has drawn the line on, says he won't do it. But this conversation for being

started by a Democrat is remarkable. At this time with atrocities just building up on one on top of the other, and and horrifying images coming from Ukraine, the pressure on this White House when it comes to troops could escalate in the coming weeks. And on the last minute, we have here Joe speaking of pressure on the White House. It looks like it's buckled, perhaps on the mask mandate

in the air about it. This is following, of course, the Supreme Court knocking down the Biden administrations vax or mask mandate for the workplace. Uh. The CDC came out last night said the mandate is over. Before that, Press Secretary Jensaki said the dj was refewing reviewing the decision that there may or may not be a legal answer to this. She called it a disappointing decision, but it may be out of the hands of the White House now.

So is there a possibility in just the last couple of seconds here that there could be uh, some pushback from the White House. There absolutely is a possibility. Once we hear from the d o J and they decide whether there's a legal option here, we'll know a little bit more about it. But this story could be over as of now. Once you once you put that mask mandate down, it's pretty hard to reinstate at Nathan. A lot of people were cheering on flights last night and

some say they'll wear a mask no matter what. It's kind of like trying to put a genie back in the bottle right now, that's right. Joe Matthew, host of Bloomberg Sound On here on Bloomberg Radio, will have much more on all these stories. Then at five pm Wall Street time, you can catch Joe on sound On, and we're gonna be checking back with him later on this morning on Bloomberg Daybreak. So stick around for that. SMP futures right now down ten points down, futures down forty five,

Nasdaq futures down sixty four points. The tenure Treasury is down ten thirty seconds. The yield right now on the tenure note two point eight nine percent. You're listening to Bloomberg Day Brady Bloomberg eleventh three oh weather flood watch till eight am. It will turn mostly sunny this afternoon, breezy with a high in the mid fifties, upper fifties. Sunny Tomorrow, mostly cloudy, low sixties on Thursday. Right now, rain and forty five degrees. Broadcasting live from the Bloomberg

Interactive Broker Studio in New York. Bloomberg E Living free to Washington, d C. Bloomberg nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nome sixt to the country, Sirius XM chand A one nine and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow, and we are just about four hours away from the

open of US trading. Let's get you have to date of the news you need to know at this hour. We begin with the war in Ukraine, where Russia's military shell in the southern and eastern Ukraine. Overnight, President Vladimir z Lensky says Moscow is focusing its efforts on conquering the eastern the don Bus region. Russian troops begun the battle for the dome Bus for which they have been preparing for a long time. A significant part of the

entire Russian army is now concentrated on this offensive. Ukrainian President vladimir's Lenski says his nation will continue to defend the region. The US President Joe Biden will hold a call with key allies Tuesday to discuss the war. The meantime, here in the US is still expected to participate a group of twenty meetings this week even if Russia attends.

Treasury Secretary Janet Yellen had previously said the US may boycott some meetings should Russia participate, but a senior Treasury official says Yellen does not want Russia to stop the US and allies from the work it needs to do. At the well I mid fallout from the war, Nathan World Bank chief economist Carmen Reinhardt tells Bloomberg it's cutting its econom outlook. Will it be cut again. Certainly, wouldn't

rule it out. But the point I'm making is we are living a period conceptional uncertain and World Bank Chief economist Carmen Reinhardt says it's lowering estimates for global growth from four point one percent in January to three point two percent. I Here in the US, Karen A judge has overturned the federal mandate for passengers to cover their faces on flights, and the five largest US carriers say they have dropped mask mandates on domestic and some international flights. Well.

Nathan moving to tech new developments in Elon musk forty three billion dollar pursuit of Twitter. If we get the latest line from Bloomberg's Randy too Young, Good Morning ny Down, Good Morning Karen. Bloomberg. Sources say Apollo Global Management is considering backing a potential deal for Twitter and could provide Elon Musk or another bidder like private equity firm Tomo Bravo, with equity or debt to support an offer. The participation

could come in the form of credit or preferred equity. Finally, from last week shows Morgan Stanley is advising Musk and is offered to take Twitter private, and Twitter is enlisting the help of Goldman Sax and JP Morgan Chase to respond to Musk's hostile bid. Live in New York, I'm goned a young Bloomberg daybreak. I need to thank you

tech giant. Netflix reports earnings today, Annalyst, we'll look at how a recent price increase in suspension of service in Russia impacts first quarter results and futures are lower this morning. S and P Future is down twelve points down, futures down sixty two. Straight ahead your latest local headlines plus a check of sports, and this is Bloomberg. All right, Karen, thank you. It's five thirty three on Wall Street where

forty five degrees in central Parking. This flooding as the southbound Deigan closed between the Cross Bronx through Yankees Stadium. Details coming up in traffic. First. Michael Barr with more on what's going on in New York and around the world. Michael Nathan, thank you very much. Will New York City bring back an indoor mask mandate like Philadelphia COVID nineteen case numbers are rising and filling in other cities. Mayor Eric Adams says New York is not at the point

of mandating right now. We are encouraging New Yorker is you know, with a mask, if you feel uncomfortable, if you don't know the satisfy persons vaccine, if you had gatherings. So there is an encouragement we're putting out to New York Is. We're just not have to place a mandate right now. Mayor Adams has hospitalizations and deaths are at a steady level in the city. U S Customs says the number of migrants attempting to cross the US Mexico

border has surged in recent weeks. It comes as the US prepares for even larger numbers with the expected lifting of a pandemic era order that turned away asylum seekers. Authorities say there was a thirty four percent increase and stopped migrants at the southwest border in March compared to the previous month. The US won't test some anti satellite weapons in space. The move comes after Moscow blew up a dead satellite last November, where the ground launched Whistle.

Vice President Kamala Harris says that space debris could endanger the International Space Station or spacecraft. This debris presents a risk to the safety of our astronauts, our satellites, and our growing commercial presence. Vice President Harris says fast moving to breed like the size of a basketball, could destroy a satellite. The fiancee a former President Donald Trump's eldest son, Kimberly Gilfoyle, is said to have met with the House

committee yesterday investigating the US Capital riot. Lawmakers say she raised funds for the rally and was in direct contact with its key participants. A lawyer for recently resigned New York Lieutenant Governor Brian Benjamin told Manhattan judge yesterday that he expects a lively challenge to corruption charges brought against Benjamin last week. The charges include bribery, fraud, and conspiracy.

Global Names twenty four hours a day on airand on Bloomberg Quick Take, powered by more than twenty of a hundred journalists and analysts in more than twenty countries. Michael Barr, this is Bloomberg NA. Thank you, Michael five on Wall Street time for the Bloomberg Sports Update with John Stshow. Right date. Then, after playing ten straight days, perhaps the day off with the Yankees needed. They're in Detroit tonight. They just had two losses to the lowly Orioles in

those losses. In twenty innings, they scored one run, struck out twenty three times. The team batting averages under two thirty, same problems as last year. The manager Aaron We got a few guys that are swinging it pretty well, uh, and off the pretty good starts. Um, but I'm gonna bet on the track record of a few other guys that are gonna, you know, have the kind of seasons

we're used to provided health. Uh. I believe that, Um, there's good reason to think that a couple of guys that, um, you know, had down years maybe by their standards are and will you know, kind return to what week stag nets are seven and three Giants or seven and two doubleheader today in tonight's city field, making up last night's rainowt NBA playoffs, Golden States hopes arrested and getting Steph Curry back from the injured foot that sidelined in the

last month of the regular season. He's back. They're using him off the bench, so Curry only played twenty three minutes. He scored thirty four points. Warriors beat Denver by twenty lead the series tune up in Philadelphia, another easy win over Toronto Dallas Speed Utah Jalen Brunson forty one points for the MAVs. That series tied to won three more game twos Tonight Nets Celtics team to in Boston tomorrow

NHL Carolina one. So the Rangers need to beat Winnipeg tonight at the Garden to get back into a tie for first in the Metropolitan Division. Down Stash Howard Bloomberg, Sports, Nathan right John, Thank you seven on Wall Street time for the Tri State Business Report. Here's Bloomberg's head Cory. The Supreme Court has declined to review a New York led constitutional challenge to the ten thousand dollar camp on

state and local tax deductions. The High Court issued in order Monday nawing a request from New York, New Jersey, Connecticut, and Maryland to review a decision of the US Court of Appeals for the second circuit. Amazon dot Com workers at a facility in New Jersey have met the threshold the Holy Union election. The development comes just weeks after employees at a Staten Island warehouse became the first to

unionis in the company's US history. Local seven thirteen International Brotherhood of Trade Unions is hoping to unionize two hundred workers at an Amazon facility in Bayon, New Jersey. Meanwhile, some baristas in West Hartford, Connecticut want to unionize the Corbins Corner Starbucks. That would be the first Starbucks in Connecticut to unionies. And only what of a handful nationwide? That your Bloomberg Trying State Business report. I'md Corey, Thank

you at five thirty eight on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve Potos, got on ten ten Wins in New York. We're talking about Abercromby and Fish starring as the latest corporate villain in a Netflix film. M Cornita hold on ktr H in Houston. More than half of college grads

don't work in the field they study. I'm John Tucker for w BBM in Chicago. I'm reporting the fertilizer cross are threatening to make a food crisis even worse. I made gory on w A t AM in Cleveland, I'm reporting lawmakers are joining the Pentagon and pushing for trans time to pay millions in refunds for the contst of military spare park. And those are some of the stories our twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine

on Wall Street. The following is an editorial from Bloomberg Opinion. As I am f negotiators try to agree on a bailout for Sri Lanka this week, they'll no doubt push for economic reforms, but any such rescue will fail without political change. An earlier government, led by then President Mahinda Rajapaksa, saddled Sri Lanka with unsustainable debts when his brother got to buy a Rajapaksa swept to power in twenty nineteen. He packed the government with cronies and relatives and made

still more economic blunders. Now, with less than two billion dollars in foreign exchange reserves left, the country is running out of money to pay for essential imports. Consumer prices rose nearly nineteen percent in March from a year earlier, and protesters have filled the streets the US, India and other partners should ease Sri Lancan's pain with much needed food aid while pressing for political reforms. Sri Lancans shouldn't have to pay such a high price for their leader's mistakes.

This editorial was written by the Bloomberg Opinion Editorial Board. I'm David Shipley. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or OPA and go on the Bloomberg terminal. These has been Bloomberg opinion and you can hear Bloomberg opinion editorials every weekday. At this time, terminal customers can read more at O, P I n GO. SMP future is down down eleven points, stout futures down

sixty two, nastack futures down fifty seven points ten. Your treasury yield two point eight nine the end at one point four zero against the dollar. We'll talk about the slide in the haven currency with Stephen Gallo of Bank of Montreal. This is Bloomberg Bloomberg eleven three oh weather flood watch until eight am. It will turn mostly sunny, mid fifties this afternoon, upper fifties maybe sixty in the sunshine. Tomorrow, clouds and low sixties Thursday right now, rain and forty

five degrees. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business at and at Bloomberg Quicktake. This is a Bloomberg Business Flash and I'm Karen Moscow. Stop seeing. Europe are moving lower. Bond yields are climbing as markets reopened after a holiday, a med hawk ish com ments by Federal Reserve officials and Russia's renewed campaign in eastern Ukraine. US dock index futures are moving lower, and we checked the markets every

fifteen minutes throughout the trading day. On Bloomberg s and P futures down eleven points this morning. Down Future is down fifty two. NASDACK futures down fifty three. The decks in Germany's down one percent. Ten year treasury down nine thirty seconds two point eight eight percent. They yield on the two year two point four or five percent. Nine max Screwed oil is down one point seven percent on a dollar eighty four at a hundred six dollars thirty

seven cents a barrel. Comc school down a third of percent, or seven dollars twenty cents at nineteen seventy nine. Ten announced the euro one point eight oh six against the dollar, British pound one point three zero three seven, the yen at one twenty eight point three six, and bitcoin this morning is little changed at forty thousand, six hundred to sixty dollars. That's a Bloomberg business flash. Now here's Michael bar with Moore on what's going on around the world.

Michael Karen, thank you very much. Russia has a military targeted regions in Ukraine, South and East still overnight for showing. Ukrainian President volodimirz Lensky says Moscow has we've got a new campaign to conquer the Donbas area in the east of the country. The fiance of former President Donald Trump's eldest son, Kimberly Gilfoyle, met with the House committee investigating the US Capitol Riot and attorney representing Gilfoyle and has

previously stated that she has done nothing wrong. In MLB, the Red Sox lost the A's beat the Orioles five one. In the NBA playoffs, The Warriors beat the Nuggets to leave the series now two games to zip. In the NHL, Devil's and Capitals one 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 twenty countries. Michael bar this is Bloomberg. Nathan Okay, Michael, thank you.

It is nine on Wall Street Line from the Bloomberg Interractor Broker Studios. This is Bloomberg Daybreak. We want to turn now to what's happening in currency markets, and the big mover this morning is the Japanese yen. That currency is weaker against the dollar for a thirteen straight session, extending the longest losing streak for the end and at least a half century. Joining us for more on this is Stephen Gallo, FX strategist at Bank of Montreal Capital Markets. Steven,

it's good to speak with you this morning. What's behind the short bets for the end? Well, I think the fear factors here. Um. The short end position in G ten has been the FX markets preferred short. One reason for this is that unlike Europe, the event risk is pretty low. Um. The b o J basically gave the green light for a weaker yen and its last policy decision, and then you've got the flows picture of kind current

account in FDI flows i've generally been trending weaker. There also seemed to be splits between the Ministry of Finance and the b o J over which direct UM. So the FX market I think is feeding off this policy uncertainty. I think there is also a segment of the market UH that is front umming UH potential again weakness in anticipation of unheaged UH flows from Japanese accounts into US debt.

But UM, so far we don't have clear evidence yet that's real flow from Japanese investors are showing up the weekly data that we track UM on UM flow on Japanese flows UM, it's generally shown Japanese investors as net sellers of our inn debts UM. So we have to wait and see if that if that flow, that perhaps portion of the blow to back up this move and agend But so far we're gonna have it. So what we've been saying is like we're a bit more skeptical,

more cautious about chasing the move. We prefer to be a buyer on on dips in doll Again, apologies for the quality of the line here. Will hope to keep connected with Stephen Gallo. But I want to ask you, Stephen, about the divergence potentially that we're seeing in central banks, the accommodation still the Bank of Japan and the policy

tightening that we're anticipating from the Federal Reserve. And of course we got those comments yesterday from St. Louis President James Bullard saying you can't take a seventy five basis

point hike off the table. Could that be adding to this, It's it's possible, it's the divergence theme is certainly something that has said a portion of the selling of the end of the accumulation of of short position in terms of in terms of what are Yeah, Fortunately the quality of the line is is just too difficult to discern what we're hearing here from Stephen Gallo. But I hope we can connect with you soon, Stephen. Great to get

your insights. Stephen Gallo with us this morning, FX strategist at Bank of Montreal Capital Markets and just looking at the end against the dollar right now, Karen, it's weaker by one point one percent on this session at one twenty eight point three six. Some analysts are thinking that one thirty against the dollar isn't out of the question. All right, Nathan, it is five fifty two on Wall Street. Now it's time for our Bloomberg Law Report and we

get to the illegal stories we're watching this morning. From Bloomberg's Jeff Bellinger, the Biden administration is proposing that the Medicare Agency pay acute care hospitals three point two percent more for in patient services in fiscal twenty three. The top Republican tax writers in Congress want the Treasury to explain how a news outletcot private tax information on some

of the wealthiest Americans. The California Attorney General announced a settlement for the city of Fontana, which was accused of violating the state's Environmental Quality Act. It's going to mean more pollution restrictions for warehouse projects of the city. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg market Intelligence. Find out more at Bloomberg Law dot com. All right, Jeff, thank you.

Another legal story we're watching. Twitter has made a move to thwart elon Must's effort to take over the company. It's launched a poison pill defense to move by the social media company's board would allow existing shareholders to buy more Twitter stock at a discount. Should anyone gain control a fifteen percent of a company without the board's approval for more Bloomberg June Grosso speaks to a Laine Kapin, a partner at Ferrell Fritz. How much of a deterrent

is a poison pill? In the history of pison pills, and it stretches back about forty years, I'm only aware of one documented case in which someone deliberately crossed the threshold without board approval, so it does serve as a deterrent. I will say that poison pills have fallen out of favor. It's received enormous criticism. The main criticisms of poison pills or that they entrenched the board and management. They could

prevent an offer at a premium. They could limit a stockholder's ability to increase his ownership as a means to influence or challenge management. That, by the way, could be what must either is planning on doing or what he may end up doing. You know, if he can't pull off an acquisition of the entire company, he would sort of be a player, perhaps not the largest stockholder, but currently he's the second largest stockholder, and with that position

of influence he can put pressure on management. The sense is that the greater ownership position he has, the greater influence he can exert on management. But if the because of this plan, he will not be able to surpass that fifteen percent threshold. And the criticism is that, you know, sometimes management needs that outside criticism. So even though it's dangerous to try to read into Elon Musk's tweets, let's

try it. Over the weekend he tweeted love Me Tender, the Elvis Prasley song, and people are looking at this as, oh, is he going to make a tender offer? So tell us what maybe the next phase here. It's unclear that he'll be able to launch tender offer, which is typically the next step when an acquirer is trying to deal directly with the board and that offer is rejected, then the next step typically is to go straight to the shareholders and go hostile in the form of a tender offer.

After Friday, with the adoption of the poison pill, it's unclear that he'd be able to do that. The announcement of a tender offer in and of itself would trigger the pill. So that's an avenue that has seemingly didn't cut off from Elon Musk. Now he could try and challenge the pill and court he's not likely to succeed.

He could also try to negotiate with the board. If he has the funding, then the board would be willing to negotiate with him, But presumably the Twitter board would want a better price, but that would contradict his earlier positions that his offer was the best and final offer. So it's unclear that a negotiation with the board is something that would be productive here. And that's a law on tape in a partner at Ferrell Fritz speaking at

the Bloomberg's Jim Grosso. Catch more of that interview, plus analysis of the latest legal news by listening to the Bloomberg Law Show at en pm Eastern Time, or subscribing to the Bloomberg Law Podcast and Attorneys Confined exceptional legal research and business development tools at Bloomberg Law dot com. Nathan, all right, Karen, thank you, it's seven on Wall Street.

We have some breaking news crossing the Bloomberg terminal on the heels of the Transportation Security Administration no longer enforcing the ASK mandate on public transportation Uber says it's riders and drivers in the US will no longer be required to wear masks on rides either. That's according to an

update on Uber's website. It says many people do still feel safer wearing masks because of personal or family health situations, so Uber says please be respectful of their preferences, and if you ever feel uncomfortable, you can always cancel the trip. But again, Uber says, as of this morning, the mask policy for riders and drivers is no longer in effect for the rides sharing service. Right now, SMP futures are down twelve points, stuff features down sixty four, nast at

features down fifty eight points. The tenure treasury is down eight thirty seconds, with the yield two point eight eight percent. Bloomberg day break continues. This is Bloomberg