Bloomberg Daybreak: April 19, 2022 - Hour 2 (Radio)

yet to bring back into or mask mandates. Plus there's a rise in migrants attempted to cross in the US Mexico border. I'm Michael bar more ahead, I'm done finished our sports. Yankees are in Detroit, that I'd met them, a double head with the Giants, NBA playoff wins for

Philaelpia Dallas and Golden Speed. That's all straight ahead on Bloomberg day Break on Bloomberg eleven, FREEO, New York, Bloomberg one, Washington, d C, Bloomberg one O 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 At

and good morning. I'm Karen Moscow, I'm Nathan Hagar. Bloomberg Daybreak is brought to you by I b KR Investment Advisors switched to Interactive Brokers for lowest cost global trading and turnkey custody solutions, no ticket charges and no conflicts of your interests at i b k R dot com slash r i A and US futures are lower this morning at six so one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg S and P Future is down about ten

points down. Future is down fifty one. Now's day, Future is down forty four. Ten year Treasury down eight thirty seconds, held two point eight eight percent yield on the two year two point four or five percent. Nathan, all right, Karen, we'll have more on the markets in a minute. First, the latest on the war. Russia's assault on Ukraine's don Boss region has begun. Ukrainian President Vladimir Selinsky says they will not give up without a fight. Amy Morris has

the latest from our Bloomberg newsroom in Washington. 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 they we reintroduced back into their country to train their colleagues. This as the remaining defenders of Mariople are surrounded by Kremlin forces, but they have not surrendered that key port city in Washington. I'm Amy Morris Bloomberg Daybreak, Amy, thank you all. 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 would boycott Group of Twenty meetings this week if Russia takes part. The Treasury Department says Secretary Jannet Yellen will participate in some sessions this week. Well. The war has in part lad the World Bank to cut its economic outlook Karen, and the Bank's chief economist Carmen Reinhardt, 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 UH 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 Banks chief economist Carmen Reinhardt says growth will slow to three point two percent. That's down from a

January prediction of four. Meanwhile, Nathan St. Louis FED President James Bullard said the FED needs to move quickly to raise rates to around three and a half percent this year, and he also says the Central Bank should not rule out rate increases of seventy five basis points to find 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 si many five basis points UH increase at one point UM, so I wouldn't rule it out, but it's not my base case here. Seeing the West. FED President James Bullard also said that talks of the US recession, it's premature. Well Bullard tnk is comments may be piling on to 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 ends trading at point three five against the dollar. Now to the latest on the pandemic Nathan and a major development in the air, the Transportation Security Administration saying it will no longer enforce the COVID mask mandate on public transportation, Bloomberg said 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 the 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, Gay Break all Right and thank you. And Uber also announced this morning that It's riders and drivers will no longer be required to wear masks. Turning new corporate earnings this morning, we hear from more than a dozen companies in the SMP five hundred today. They include IBM, Johnson and Johnson, and Netflix. Here with the

Netflix preview is Bloomberg's Tom Busby. 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 call 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 all new developments this morning. And Elon Musk forty three billion dollar pursuit of Twitter, and we get the latest line from Bloomberg's Ready too Young, good morning, Ready

to 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 Toma Bravo, with equity or debt to support an offer. The participation could come in the form of credit or preferred equity. Of filing from last week shows Morgan Stanley is advising Musk and his unsolicited offer to take Twitter private.

Twitter is enlisting the help of Goldman Sachs and JP Borgan Chase to respond to Musk's hostile bid Live in New York. I'm Ranita Young Bloomberg day Break, Nita, Thanks, and the bullish stock call. Musk's current company, Tesla Cathy Woods Our Investment Management now expects shares of the electric car maker to more than quadruple to forty six hundred dollars by six would has long been an ardent supporter

of Tesla. Andy elon Musk. Tesla is the largest holding in Woods flagship our Connovation et F. You're listening to Bloomberg Daybreak and it's now six o seven on Wall Street forty one degrees in Central Park. We have an accident on the inbound upper level of the George Washington Bridge. Details coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. Now, then an indoor

mask mandate is back in place in Philadelphia. Will New York City do the same? Cope nineteen case numbers arising in several cities. Mayor Eric Adams, who had been quarantining due to having the virus, was asked about mask 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 hospitalizations at a steady level, death side of steady level. Mayor Adams says, we are encouraging New Yorkers to wear the mask if you feel uncomfortable.

The Supreme Court is declining to wait 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 has ruled Amazon must reinstate a former employee who was fired in the early days of the pandemic after leading a protest in Staaten Island calling for the company

to do more to protect workers against COVID. The judge ruled 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 the US would no longer engage in anti satellite missile testing in space. Harris explained the testing causes to breed 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 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. Immigration authorities stopped migrants more than two d one thousand times along the southwest border in March, the highest in nearly two decades. Global News twenty four hours a day on here and on Bloomberg quick Take, powered by more than twenty seven hundred journalists and analysts in more than a hundred twenty countries. I'm Michael bar

This is Bloomberg, Nathan. Thank you, Michael don't know. To six ten on Wall Street. Time for the Bloomberg Sports Update with John Steenshaw. All right, Nathan. First of the game tunes first round of the NBA Playoffs in Philadelphia six or second straight rout of Toronto. On ninety seven, Joe l MB scored thirty one in Dallas. The MAVs were again without their star Luka Dontcheon, but Jalen Brunson poured in a career high forty one points one ten one oh four over Utah to tie that series of one.

Golden State Fights twenty over Denverse Steph Curry off the bench to score thirty four points in just twenty three minutes, and the Warriors go up to zip the Celtics. Mark Is Smart named Defensive Player of the Year, first guard to win the awards, and Gary Peyton six and Peyton, the Hall of Famer, went to Celtics practice in Boston to tell Smart he had won Celtics Nets Game two tomorrow in Boston. Rangers are the Winnipeg Jets tonight that

they guard in Carolina. Won last night to the Keynes lead the Rangers by two points as they battle to win the Metropolitan Division. Mets and Giants reined out single admission doubleheader starts just after three o'clock. Tyler McGill yet to allow a run and two starts. Goes in the opener and Max scherz Or pitches the nightcap his first met start at City Field. Garrett Cole for the Yankees tonight in Detroit. Jake Carrietta, retiring at age thirty six,

struggled in recent years. Arietta won the National League Cy Young Award back in two thousand fifteen while with the Cubs. NFL Draft starts a week from Thursday in Las Vegas been a lot of quarterback movement this offseason. Could be another move before the draft of Carolina still looking for a QB and said to be trying to acquire Baker Mayfield from Cleveland Browns Evenue QB Deshaun Watson. Speaking of quarterbacks, the latest edition of Made for TV Golf would be

June one in Las Vegas. Tom Brady and Aaron Rodgers versus Patrick Mahomes and Josh Allen, John Stash Howard Bloomberg Sports Nathan Okay, John, thank you. SMP future is now down thirteen points, Stout futures down seventy six, DANSAC futures lower by sixty four points. The tenure treasury is down nine thirty seconds. The yield very close to two point eight nine percent. This is Bloomberg Bloomberg eleven three or

whether cill under floodwatch till late this morning. It'll turn mostly sunny this afternoon, breezy, mid fifties for highs upper fifties tomorrow. Clouds returned Thursday with highs in the low sixties. Right now forty one in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com the Bloomberg Business at and at Bloomberg quick Take, This is a Bloomberg business flash and I'm Karin Moscow.

You west Dock Index futures are lower along with European shares, while bonds around the globe slump as investors way the prospect of aggressive policy action to curb inflation. We checked the markets every fifteen minutes throughout the trading day on Bloomberg s and P future is down about nine points and down futures down thirty eight, NASTAG futures down forty two.

The decks in Germany's down one percent. The ten year treasury down eight thirty seconds, yield two point eight eight percent, yield on the two year two point four six percent.

Nine x Screwed oil is down one point six percent on a dollar seventy three and a hundred six dollars forty eight cents of barrel comics gold is down four ten percent or eight dollars thirty cents in nineteen seventy eight an ounce, the euro one point oh seven nine one against the dollar, British found one point three zero one eight and the en one eight point three two and bitcoin this morning it's now higher up a tenth of a percent at forty thousand, seven hundred twenty dollars.

And today we are getting reports on housing starts, in building permits at eight thirty Wall Street Time and Netflix among companies scheduled to report earnings today. 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. After days of regrouping and reinforcing, the Russian military began

a new phase of the war in Ukraine. Training and officials said that the Kremlin's forces launched a full scale ground offensive to take control of the country's industrial heart land and down the screen agent. Most major US airlines are no longer requiring travelers or employees to wear face coverings on domestic and some international flights. The decisions came after a US judge overturned the federal mandate for passengers to cover their faces. In MLB, the Red Sox lost

the A's Meat the Orioles five one. In the NBA Playoffs, The Warriors beat the Duggets to leave 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, powered by more than twenty seven hundred journalists and lest more than a hundred twenty countries. Michael Barren, this is Bloomberg. Nay, Okay, Michael, thank you. It is six nineteen on Wall Street Live from the

Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak. We're really pleased to be speaking this morning with liz Anne Saunders, chief investment strategist at Charles Schwab. Great to have you on with us this morning, Liz, and and obviously a lot of attention this morning on the comments we heard yesterday from the President of the St. Louis Fed, James Bullard, obviously a very a vocal hawk, but he's saying, seventy five basis points, you can't rule it out next month.

Is that talk to you? Pay attention to? Um? Yeah, I think you know. This parlor game that's been going on of how many rate hikes to expect the full year, I think miss is what the Fed is attempting to do, which is front end load many of these rate hikes. Now, whether it's seventy five or not, that that I think that's a little bit bold. I don't. I don't do

that as a prediction or forecast on his part. I think fifty is still the base case, but it's probably gonna be fifty at at least two or three meetings, so that they can get closer to the neutral rate in UH in a shorter amount of time, which may give them some breathing room to not have to be as aggressive towards the end of the year. But we'll see. Now, if we do see that kind of front end loading by the FED, those that kind of aggressive move successively,

how does that affect your strategy in this market? Well, uh, you know what the confirmation hearing that all had I think one of the more interesting things that happened was when Richard Shelby asked him whether he'd be willing to accept a recession as Volker did in order to um sort bring down inflation, and he paused and said, very thoughtfully, I think the history will show that the answer to

that question is yes. Now, I don't think that means FETE officials are gunning for a recession, but that may be what it takes in order to reign in aggregate demand sufficient enough to bring inflation down, given that they obviously can't directly target food or energy prices as it ties into the Iraq war. They can't ramp up semiconductor production, but they can ease aggregate demand. And they're starting this this process of more aggressive rate hikes with growth already slowing.

It's you know, Atlanta Fete is accurate. We're only at one in the first quarter. Battling a forty year high in inflation while you're at sub two percent growth. Is a very unique set of socumstances. I think investors have to be somewhat cautious. UM adopt the disciplines around diversification and rebalancing, and UM that's where we are. How do you rebalance? Do you look at different sectors, do you look at different styles? What's the strategy? Well, rebalancing obviously

you're letting your portfolio tell you what to do. In that asset classes move in and out of favor, and they therefore adjust relative to your strategic allocations. So one of the things we've been suggesting is if you are typically if you're rebalancing, is done either by an advisor or yourself on a calendar basis, meaning you might rebalance on a quarterly basis at the end of the year, consider having it be more portfolio based, volatility base, take

advantage of volatility, maybe up the pace of rebalancing. We've also adopted, uh about six weeks ago sector neutrality, feeling like trying to sort of play a short term sector game is going to be a bit trickier. What has been more consistent is factor based investing, So leadership at the factor level and I look at the Bloomberg factors on a day to day basis, that's where there's been more consistency. And this is a time in the cycle

where you absolutely want to focus on quality. Defensive areas have been doing well, but there's a way to play defense even in segments of the market that are generally considered more offensive. You just want to stay focused on those quality characteristic strong balance sheets, strong cash flow yield um, strong dividend yield, and positive earnings revisions in an environment where those are are harder to find these days. Got about a minute left here, Lizie, and does an inflation

fighting fed have an impact on the earnings outlook for corporations? Well, we have seen a little bit of a rolling over in the forward profit margins. I don't think we'll end this season of the serious dent to profit margins, but I think that will be the bigger story going forward. Uh. You know, a lot of there's a misperception out there that a strong pp I is negative for a profit margins.

Actually more US companies benefit from a higher p p I. But the labor cost component is such a large part of the input costs that I think the story going into next quarter earning season will probably be more about a compression coming in profit margins, unless there's an eating in some of these labor cost pressures. Thanks for this, Liz, and again great having you on with us. Liz Anne Saunders, chief investment strategist at Charles Schwab. Looking ahead to this market,

open futures are moving lower. We have SMP futures down almost six points down, down futures down twenty two, NASTAC futures lower by twenty seven points. The ten your treasury is down eight thirty seconds, the yield two eight percent, and the yield on the two year right now two point four six per cent. You're listening to Bloomberg Daybreak Bloomberg eleventh three oh. Weather is still under the flood

watch too late this morning. It'll turn mostly sunny and breezy this afternoon, with a hind in the mid fifties, sunshine upper fifties tomorrow, low sixties, mostly cloudy by Thursday. Right now forty degrees. Broadcasting live from the Bloomberg Interactive

Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C, Bloomberg nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg NUN sixty to the country, Sirius XM to the one nine team, and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak, six thirty on Wall Street. Good morning, I'm Nathan Hager and I'm Karen Moscow, and we're just about three hours away from the open of US trading.

It's time for the five things you need to notice start your day. Ought to you by Interactive Broker Simple ib k are Global Trader app. Deposit in your local currency and trade stocks in the US, Europe and Asia. Start your free trial at ibkr dot com, Slash Global Trader at First, Russia's military shells, Southern and eastern Ukraine

as its invasion continues. President vladimir's Lensky says Moscow is focused on conquering the eastern don Bus region that 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 Lensky says his nation will continue to defend the region, and US President Joe Biden

behold a call with key allies today to discuss the war. Meantime, car in the US is expected to participate a Group of twenty meetings this week even if Russia attends. Treasury Secretary Janet Yellen had previously said the US made 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 G twenty. Well admit the fallout from the war, Nathan World Bank chief economist Carmen Reinhart tells Bloomberg gets cutting it's two economic outlook. Will it be cut again? Certainly? Wouldn't rule it out. But the point I'm making is we are living a period of receptional and certain World Bank Chief economist Carmen Reinhart says it's lowering estimates for global growth from a four point one percent in January eight to three point two percent and back in the US.

New guidance on masks from the nation's biggest airlines and rides sharing Giant Uber. Let's get the details life from Bloomberg's You needed Young, We need a good morning. Good morning, Nathan. Most major airlines are dropping mask mandates on domestic and

some international flights. It comes after a US judge overturns of federal mask mandate for passengers, so the five largest US carriers say the use of masks will be optional for both passengers and staff and just this morning rides here Giant Uber says it will no longer require drivers or riders to wear masks in the US, but if you feel uncomfortable, Uber as you can cancel a ride, and asks riders and drivers to be respectful if people

prefer wearing a mask. Live in New York, I'm Nita Young, Bloomberg Day Break a right, Nita, Thank you and tech Giant Netflix reporting earnings today. Analysts will look at how a recent price increase in suspension of service in Russia impacts first quarter results. We did watch earnings from Johnson, and Johnson crossed the Bloomberg first quarter profit, beating analysts estimates, but it lowered its outlook for the year and said

it's suspending. It's COVID nineteen vaccine sales guidance. That's the five things you need to notice start your day. Brought to you by Interactive Brokers, and this is Bloomberg. Thank you. Karen six thirty three on Wall Street, forty degrees in Central Park and we have got big delays on the g w B. Details coming up in traffic. First, Michael bar with more on what's going on in New York

and around the world. Michael, thank you very much. Nathan, 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 York is, you know, with a mask if you feel uncomfortable, if you don't know the satisfy Presson's vaccine if yet gatherments. So there is an encouragement we put out to New York is we just not have

to place a mandate right now. Mayor Adams says hospitalizations and deaths are at steady levels in the city. U S Customs says the number of migrants attempting to cross the US Mexico borders 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 that there was a thirty four percent increase in stop migrants at the Southwest border in

March compared to the previous month. The US will not test some anti satellite weapons in space. The move comes as Moscow blew up a dead satellite last November with a ground launched missile. Vice President come Alla Harris says that space debris could endanger the International Space Station or spacecraft debris presents a risk to the safety of our astronauts, our satellites, and our growing commercial presence. Vice President Harris says fast moving debris the size of a basketball could

destroy a satellite. The fiancee of former President Donald Trump's eldest son, Kimberly Gilfoyle, is said to have met with the House Committee yesterday investigating the US Capitol 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 to challenge corruption charges brought against

Benjamin last week. The charges include bribery, fraud, and conspiracy. The Supreme Court has rejected a challenge from New York, New Jersey, Connecticut, and Maryland to the twenties seventeen tax law that cap federal tax deductions for state and local taxes. The stud argued that the Republican led tax law, signed by then President Donald Trump unfairly singled out high tax states in which Democrats predominant. The law caps a deduction for state and local taxes known as salt, at ten

thousand dollars. In sports, the Yankees they will visit Detroit Tangle tonight. Meanwhile, the Mets will host the Giants. Yesterday 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, powered by more than twenty seven under journalist

analyst in more than twenty countries. Michael Barr And this is Bloomberg. Nathan. Okay, Michael, thank you. It is six thirty six on Wall Street Time. Now to take a look at stuck, some of the names moving in the pre market it and for that we're joined by Bloomberg Radio and TV Markets correspondent Pretty Gupta. Already getting off to a busy start, creaty with earnings crossing the Bloomberg. I know, I'm still rubbing the sleep out of my eyes. NATS. Sorry,

Here we are with a lot of breaking news. Let's start off with Johnson Johnson J and Jay's your taker down three and a half percent this morning. This comes after Johnson Johnson suspends its COVID nineteen vaccine sales guidance due to a global supply surplus and demand uncertainty. Now

the forecast is going to be everything excluding vaccines. Now it is worth noting that Johnson Johnson does not have the majority share of vaccines of course, still falls behind Maderna and Fiser Fiser, which which does have the majority of a vaccine distribution at least here in the United States. So this might not necessarily that material as opposed to another one of its competitors, but still we're going to keep an eye on these shares. J and J down

three and a half percent. And in that kind of COVID related news, the mask mandate, you've had several reports

on it this morning. You are seeing a little bit of a read through into the stock market as well, now that there is no requirement for masks to be worn on public transportation that includes airlines, that even includes Uber, So you are seeing a little bit of movement, especially for the airlines where you did see a lot of hesitancy four passengers to be wearing masks on the planes of the likes of American Airlines A L as your taker, up three tents of a percent, United U A L

up three tents of a percent as well, and Delta D a L also up about half a percent. This is significant on a risk off morning. You're seeing airlines post a little bit of green, So that's interesting in Uber as well. Um in the same vein, saying it's no longer going to ask riders and drivers in the United States to wear masks, joining a growing number of

major transport providers shifting their policy. Uber shares are about flat, but anything can happen, Nathan, Yeah, it'll be interesting to see whether there's a pop or even a divergence between Uber and Lift. We haven't heard a similar announcement from Uber's competitor. How about a Twitter update created a Twitter update, So much update I can do, Nathan W. T R

shares are down about half a percent. This is interesting because they were down by much more earlier in the session, so you are clearly seeing a lot of movement here. Remember this morning that this uh stock has the most pre market volume out of all the other stocks in the SNP five hundred, so keep an eye on it. Naturally comes after headlines from Apollo Global saying it's potentially

interested in helping finance a bid for Twitter. This course follows elon Must forty billion dollar unsolicited offer to take the company private, all according to people familiar with the matter. Apollo has not yet commented But this is significant because we've talked a lot about the potential of Elon Musk to bring on another bidder like private equity firm tom

A Bravo, or use debt to kind of support their offer. Remember, as I'm gonna use Ed Ludlow's phrasing here, Elon Musk is certainly the richest man in the world, but he is cash poor. So to make this investment happen, um sometimes you have to kind of leverage Tesla shares, or leverage other properties or etcetera, other holdings. So that's going to be the concern here. Now a Polo Global allegedly interested in helping finance that bed. We'll keep an eye

on that for you. T w t R down about half percent, but it's not the only story this morning that's moving. I want to introduce a plug power p l u G is your taker up four and a half percent, once again, on the background of a risk off day. Four and a half percent is nothing to scoff at. Announcing an agreement with Walmart for an option to deliver up to twenty tons per day of liquid green hydrogen to power material handling lift trucks across distribution

and fulfillment centers in the United States. Now, remember plug Powers, one of those TV companies that soared with likes of Tesla, with likes of Ribban because they provide that clean energy. And you can see getting a very strong contract from Walmart this morning. Nathan Yeah, from one of the biggest retailers in the world. Bloomberg Radio on TV Markets correspondent Crety Gupta, as always, thanks for keeping us up to

speed on what's happening in the pre market. Looking ahead to the open, it is a down session with SMP futures down seven points right now, DAL futures down forty six and NASTAC future is lower by thirty points ten. Your treasuries down nine thirty seconds. The yield two point eight eight percent yield on the two year two point four six nim X cruds down one and a half percent. Down a dollar fifty seven hundred six dollars sixty four

cents gets your barrel of West Texas Intermediate. You're listening to Bloomberg Daybreak Bloomber eleven three oh weather flood watch for about another hour or so. Will turn mostly sunny this afternoon with a high in the mid fifties. Upper fifties tomorrow, low sixties on Thursday right now forty degrees in Central Park 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 Flash. Hey, good morning, I'm Cameron Moscow, and futures are lower this morning. It's another busy morning for corporate earnings, and we go to the first word breaking news dance for today's morning call. Here's Bill Maloney, Bill, good morning, Good morning, Karen. That's right. Modest losses in the futures right now. DEAF futures down at forty eight point sysme drops seven. Nastick futures are

off by twenty eight. The US ten yield at two point eight eight percent, Gold is down three, Oil trading lower and bitcoin is little changed. Hong Kong fell two point three percent overnight, while Europan markets are also in the red this morning, and back in the US. On the economic front, at a thirty, Housing starts Regarding earnings, Jane j caught its forecast and suspended its code vaccine

guidance and hasbroke EPs missestimates. In deal news, people familiar so that Apollo is considering backing Elon Musk and his bid for Twitter, and Zendesk is said to be working on a potential sale. In other news, Fedsboard says a semi five basis point Hi could be an option if needed, and wrapping things up, app love and was rated a new by over at Goldman Sachs Live from the First Breaking news desk on Bill Maloney, Karen, very Bill, thank

you and yeah. Watching john S and Johnson stock this morning, down two point six percent in early trading, and to hear live breaking news over your Bloomberg type swalk on your termin I'll sk you a w K. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, Karen, thank you very much. Russia's military targeted regions in Ukraine's south and

east overnight for shilling. Ukrainian President Volodimir z Lenski says Moscow has been on a new campaign to conquer the don Bs area in the east of the country. The fiance a former President Donald Trump's eldest son, Kimberly Gilfoyle, met with the House committee investigating the US Capitol Riot and attorney representing Gilfoyle has previously stated that she has done nothing wrong. And 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 two games to zip. In the NHL. The Devil's and Capitol's One Global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundreds and journalists and analysts more than a hundred twenty countries. I'm Michael Barn. This is Bloomberg. Caren alright, Michael Barr, thank you. At A six forty nine on Wall Street. We turned to news and science and technology now.

But the Bloomberg and j I T. STEM Report brought to you buy New Jersey Institute of Technology, ranked top fifty national public university by US News and World Report, in the top ten for best career placement among public schools by the Princeton Review. Learned more at n J I T DOT E d U and now here's this

making news in science, Technology, engineering, and math. Most major US airlines are no longer requiring travelers or employees to wear masks on domestic and some international flights that came hours after a federal judge overturned a mandate for passengers to cover their faces. Uber has also lifted the mask mandate, and Shanghai authorities reported seven more deaths from the coronavirus.

China's financial hub is grappling with a record outbreak that's brought unprecedented disruptions to residents and threatens the countries he can have a growth that only five million people living in Shanghai have been locked down for weeks, and the flight debut of NASA's Mega Moon rocket faces additional delays following a string of failed fueling test Officials say it'll be challenging to meet a launch window in early to

mid June. The next opportunity to send an empty capsule to the Moon on a test flight would be at the end of June or July. The thirties store thirty story Space launch System or rocket, has been on the padded Kennedy Space Center for the past month. It will return to the hangar next week for valve and fuel leak repairs and as the Bloomberg n j I t

stem reboard. Nathan Okay, Karen thank you. We are live from the Bloomberg Interactor Broker Studios, where it's coming up to six fifty one on Wall Street Time Now to check what's going on in DC. Some of the top stories in our nation's capital include the US halting the mask mandate on planes, trains, and buses, President Biden hosting a call this morning with allies on the war in Ukraine, and Treasury Secretary Yelling backing away from boycotting some G

twenty sessions. Bloomberg Washington correspondent Joe Matthew is back with us to breakdown more on all these stories. Of course, the host of sound on here on Bloomberg Radio. Let's start off with what's happening in Ukraine, Joe. Obviously we've heard the dawn Boss offensive has begun. What are we expecting as the President gets ready for this virtual call later this morning, A pretty stark statement to hear that

from President Zelenski the battle has begun. It's a little earlier than some had expected, Nathan, And when we talked to military analysts, Russia seemed to have regrouped a bit more quickly, and there was a thought that that Moscow might wait for Mariuple to fall, so it could bring those Russian troops into the dun Boss fight. So they're going into this with a slightly smaller force than some expected.

To your point, the President will meet this morning with our European allies and partners on a couple of matters. There's gonna be talk about another layer of sanctions, and that seems to be the case every time they meet.

This could uh specifically be looking at banking and more specifically Sure Bank, possible European oil band as well, though that could be weeks off depending on how many feels about that, but also delivering weaponry, and there were four airplanes that arrived in Europe on Sunday that we we heard about yesterday from Jensaki, the White House Press secretary.

They are full of the heavy artillery, the howitzers, the armored troop carriers, and some of the other equipment cleared in that recent eight hundred million dollar tronche of weapons that's on its way to Ukraine. The question is, Nathan, can we get it there quickly enough into Ukraine and stage that in the areas in the east where they are most needed in time for the Ukrainian forces to

meet the Russians. I'll add that we're gonna be apparently providing how it's her training to Ukrainian forces outside of Ukraine that could start as soon as they arrive, as soon as today, and pretty interesting to consider what we've heard from Vladimir Putin that he's open to attacking supply lines from the US from NATO that are going into Ukraine. I'm sure they're going to be keeping a very tight lit on where that training is going to take place.

And that brings back the is concern that has been expressed by the US and NATO allies about being drawn more directly into the war. What is the level of concern at this point as those weapons start to move even more quickly into your You know, it's interesting, it depends when you talked to you raised a lot of eyebrows. On Sunday, UH Senator Chris Coon's, the Democrat from Delaware, what I was considering the most underreported story of the weekend.

This is the man who sits in Joe Biden's old Senate seat, a close confident of the White House calling on national television to open the conversation about considering the addition of American ground troops in Ukraine. The level of pressure that lawmakers are hearing as these horrifying images come from places like Mariopolambucha is going to only increase the pressure to do more. His line was, Vladimir Putin will not stop unless we stop him. The White House reacted

to that yesterday. Press Secretary Saki was asked about it. They say, quote, we respectfully disagree unquote. Wow. Very interesting to hear that kind of line drawn between the president and, as you say, a senator who is very close concident to President Biden. We're also watching the World Bank I MF meetings, of course, the G twenty meeting on the sidelines, and now there's a little bit of pullback from Treasury Secretary yelling on this stance of if Russia is going

to take part in these meetings, we're not going to go. Yeah, this is an interesting wrinkle. At one point that the Secretary was going to avoid these meetings altogether, uh as Russia was planning to attend G twenty, remembering that China and India are in the G twenty. They are not prepared to kick Russia out or do anything about Russia's status here. But it looks like Yellen will attend some sessions.

There are questions about whether it would be more effective though, because by the way, Ukraine has representatives here they need to get some work done with the US, and she'll be there for that. Questions about whether it would be effective for Yelling to show up at meetings one in particular and economic architecture where we know the Russians will be there and stand up, face off with them, call

them out on a global level. At the G twenty meeting, it would it would provide some monster headlines for this administration, though it is not expected to have them. Got a couple of minutes left here, Joe got to talk about the end potentially of the mask mandate in public transportation. At least it's not gonna be enforced at the moment. Well, that's true. Uh. They again, the White House not too happy about this. They say they're disappointed in the decision.

It emerged just before yesterday's White House briefing. The CDC has since weighed in to say, you know, the mandate is down, certainly for now. And this follows the Supreme Court knocking down President Biden's workplace vax or mask mandate. It's gonna be very now that airlines have acted in Uber to your point, you were just talking about that a little while ago on the program. Uber is following as well. The mandates are down, it's gonna be essentially

impossible to get the toothpaste back into tube here. If that is what comes from this, the d o J is looking at it. Nathan. We don't know if there will be a legal answer to this. Will wait to hear more today. Well. Is there a possibility though that there could be legal points back as you say, the dominoes have fallen, that's when it's gonna be tough to set a back up. Well, and there was no legal answer to the workplace mandate. The d o J says it is reviewing the decision. Will let you know if

we hear more. And finally in our last minute here, uh, the January six committee still working, still talking to people very close to former President Trump. Yeah, that's right, Kimberly Gilfoyle was the most recent to sit down. There are questions about, you know exactly how and when this is gonna end, Nathan. We're in the middle of a mid term election year and and Democrats would like to get the work done before voters hit the polls and not.

Of course, Republicans would prefer this not drag out throughout the year as well. There are questions and some suggesting that they hold prime time televised hearings to bring Americans in on what they have learned. We simply don't know exactly what they're sitting on. At some point here, this needs to go public. We need to report out there so the country can move on. Now. You got to think that that report, at least for the Democrats, they'd

like to get it done before the midterms. Joe Matthew always good to speak with you, Bloomberg Washington, corresponded Joe Matthew, host of Sound on which you could hear this afternoon in every afternoon five pm Wall Street time weekdays on Bloomberg Radio. Read more on Bloomberg dot Com or on the Bloomberg terminal, and listen to Bloomberg Radio in Washington A Bloomberg and one oh five point seven FM HD two. Look at your Head to the market Open futures are

moving lower. Bloomberg Surveillance Straight Ahead with Tom Keene, Jonathan Faroll, and Lisa Bramowitz for Karen Moscow I'm Nathan Hagar. This is Bloomberg