Bloomberg Daybreak: April 20, 2022 - Hour 2 (Radio)

a man has been arrested. Plus Shanghai continues to ease COVID rules. I'm Michael Barr. More ahead, I've done Stagehower in sports. The Mets of the best record in baseball. They swept the double letter from the Giants. They Yankees want of Detroit. The Rangers shut out Whinnipeg. Bloom That's

all straight ahead on Bloomberg day Break. On Bloomberg. You live in Freo New York, Bloomberg N one, Washington, d C, Bloomberg one O six one in Boston, Bloomberg nine fifty San Francisco, Sirius x M one nine team, and around the world on the Bloomberg Radio dot Com and via the Bloomberg Business Set. Good morning, I'm Nathan Hagar and I'm Karen Moscow and US stock index futures are little change this morning. We are coming up to six o one on Wall Street, and we checked the markets every

fifteen minutes throughout the trading day on Bloomberg. Again, futures are a little change. The decks in Germany of one point one percent ten Your treasury of fourteen thirty seconds yield two point eight eight percent. They yield on the

two year two point five five percent. Nivex screwed oil is up three quarters of a percent of seventy eight cents at a hundred three dollars thirty four cents of barrel Covecs gold is down four tenths percent, or seven dollars fifty cents at nineteen fifty one fifty, announced Nathan Karen. We begin this morning with the plunge in Netflix shares. They are down more than twenty six percent following the company's disappointing earnings. Let's get the latest live from Bloomberg's

Grnita Young. Good morning, Grenita, Good morning, Nathan. The streaming giant unexpectedly lost subscribers for the first time in a decade, and it sees another a drop of two million users this quarter. So in an effort to improve results, co CEO Read Hastings says, Netflix will introduce a cheaper advertising supported option for subscribers in the next couple of years.

I'm a bigger fan of consumer choice and allowing consumers who would like to have a lower price and are advertising tolerant um get what they want makes a lot of sense. Netflix co CEO Read Hastings says the company will also start to crack down on people sharing their passwords live in New York. I'm gonna need a young

Bloomberg daybreak, all right, grened to thank you. While we are seeing the Netflix results impact other streaming services, shares A Disney are down more than four percent, while Roku is off by six percent, and one of their stock of note that's moving this morning is IBM shares her up one and a half percent. Of the company's sales toped analysts estimates, and the earnings continue to roll in Karen.

With sixteen companies in the SMP reporting today, including Tesla, Let's get a preview from Bloomberg's on buzby One big focus for first quarter earnings at the world's biggest electric auto maker, how much the COVID nineteen shutdown to the company's Shanghai plant have impacted production. There also of concerned the impact of the global computer chip shortage and the

ongoing supply chain issues that have affected all automakers. But Bloomberg consensus calls for adjusted earnings of two dollars twenty seven cents of share and revenues of seventeen point nine two billion dollars. Tom Busby, Bloomberg Daybreak, All right, Tom, thank you all. Turning to the economy now, US ten year real yields briefly turned positive this morning for the

first time since March. Meanwhile, Chicago FED President Charles Evans said interest rate will probably rise above the neutral level, but how much higher will hange on weather? Inflation cools as expected. Probably we are going beyond neutral. I mean that's my expectation. When I see that, taking out special factors, I'm still left with three to three and a half

percent inflation. That's not what we want. Chicago FED President Charles Evans made the comments, Yes, your day at the Economic Club of New York, and we may get a clear picture behind the Feds thinking Karen when it would say. Regional Economic survey, known as the Beige Book, comes out this afternoon. Bloomberg's Michael McKee has a preview. Americans say they are discouraged by inflation, but are they pulling back

on spending an investment. The Beige Book will offer Fed officials anecdotal evidence on the impact of rising prices and the outlook for the next few months. Activity has been mixed, showing some cooling and goods demand that could ease price pressures, although there's been a greater appetite for services recently. First quarter growth is forecast to slow considerably from the fourth

quarters sizzling six point nine percent annual rate. It's not definitive by any means, but the Beige Book will offer some color on whether that's slow down is going to be temporary or longer lasting. Michael McKee, Bloomberg Daybreak. All right, Michael, thank you. We now want to update you on the latest developments in the war. The port city of Mario pol in, Ukraine is on the brink. Ukrainian defenders say they're surrounded and they're appealing to world leaders for help.

Bloomberg Samy Morris reports. Ukrainian President voladimir's Alinsky posted a video to social media saying that the Russian Army is righting itself into world history as the most barbaric and in humane army in the world, in part because they're blocking efforts to create humanitarian corridors, especially in Mariopol, where the commander of one Ukrainian brigade is pleading for help from other countries to evacuate civilians from the ports city.

Russia has given the fighters until two pm in Moscow, that's seven am Eastern, to lay down their arms and surrender. In Washington, I maybe Morris Bloomberg daybreak, Okay, thank you, turning to the pandemic, The Justice Department says it's prepared to appeal the mask mandate ruling if necessary. Bloomberg said, Baxter has the story. The d o J says it will appeal if the CDC decides that the mandate should remain in place after May three, when the current one expires. Currently,

the recommendations remain in place but not mandated. Under the ruling, The White House is keeping its mandate in Forest spokeswoman Jen Saki says. The administration says it is a smart thing to do. We're continuing to encourage people to wear masks in public transit. They'll make that decision because it's obviously not being implemented at this moment time, but will continue to abide by CDC guidance for now. It is a personal decision. In San Francisco, I'm at Baxter Bloomberg daybreak,

all right, and thank you Ellen wall Street. The days of free lunch at Goldman Sachs are over, marking the end of a pandemic office perk. We get the story from Bloomberg's Charlie Pellett. The investment bank says it will transition back to paid for meal service for breakfast and lunch on April twenty five. Goldman also says it will boost the stipend for meals out of hours to thirty

dollars from twenty five dollars. Wall Street firms have been using free food as part of the push to bring employees back to their desks during a pandemic that has fueled the rise of hybrid schedules and remote work. Goldman has been one of the most aggressive financial firms in pushing for a return to the office. In New York Charlie Pellett Bloomberg day Break. All right, Charlie, thanks and

sticking with the banking fame. Join us later Tay when we speak live with Bank of America's CEO, Brian moynihan. That's coming up at noon, Wall Street time on Balance of Power on both Bloomberg Radio and Bloomberg Television, Local headlines in the check of sports. Next on Bloomberg Daybreak. It's now six oh seven on Wall Street. We're forty three degrees in Central Park scene, light volume on the bridges and tunnels. Will check in with Peter Vancy if

that's holding up. First, Michael Barr with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. The New Jersey Catholic Diocese of Camden has agreed to pay eighties seven point five million dollars of several claims involving clergy sex abuse, with about three hundred alleged victims. It is one of the largest cash settlements involving the Catholic Church in the US. Mark Crawford is with the State Chapter of the Survivors Network of

Those Abused by priests. I'm glad it's come to fruition. UM. I hope and believe that lead to some small level of closure and hopefully some validation for the victims of cludge abuse within the Diocese of Camden, New Jersey. Mark Crawford with the Survivors Network says the settlement carries a unique agreement, including turning over documents. Connecticut State Police, a trooper who fired seven gunshots into a car and killed a man in twenty twenty after a high speed chase

has been arrested in connection with the shooting. Authority. State Trooper Brian North turned himself into the State Inspector General last evening. North fatally shot Mubarick Solomine in January twenty as Solomine sat in the driver's seat of a car in West Haven, where the chase ended and police boxed in the car. The State Police union says North risked his life and it is defending his actions. It looks

like New York City dorman won't go on strike after all. Yesterday, attendative deal was reached to a vert of potential walkout a day ahead of the deadline. The agreement reached the union and the Realty Advisory Board everts what would have been the first strike of residential building service workers in New York City in thirty one years. A Chinese health official says four million people in Shanghai have been allowed to leave their homes as the coronavirus quarantine rules ease.

That brings the total to almost twelve million people who have been allowed to leave their homes as China's largest city tries to contain the virus outbreaks. New Jersey's governor has some thoughts as the state prepares to legalize recreational pot sales. Governor Phil Murphy won't be partaking in pot, but he does have a preference. It's never been an animating thing for me. If we were legalizing Scotch, I would show up with a shopping cart. Governor Murphy says,

recreational pots sales begin tomorrow. By the way, today's date is four twenty. You know Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven under journalists and analyists more than a hundred twenty countries. Michael Barr and this is Bloomberg name some know. Thank you Michael. Almost six ten on Wall Street time for the Bloomberg Sports update here John all right, Nathan, look now, but the Mets at

nine and three of the best record. The major things a double header sweep with the Giants and City Field. I begin with a big comeback Mets field four to one time the game, then won it in the tenth inning. Two strikes on Lindor Darcia's pitch swing a lot rot towards center field, that's gonna get down. That makes it. Then roll for the wall the right center, no scores pet Francisco Indoor comes through, Mets win it tend five

poor the final. We should be. Francisco into a rough first season in New York, but off to a hot start this year. He had two more hits in the nightcap, won by the Mets three to one, thanks to match sers Or, his first home start. Sers Are flirted with a no Hitterer lost it in the sixth that even gave up just the one hit Struck Aft ten and Seniti Instruser is already three and oh. In Detroit, the Garrett Cole struggles continue. These supposed Yankee eights couldn't finish

the second and then he got only five outs. He issued five walks, but Clark Schmidt followed Cole with three the third scoreless release six strikeouts, and the Yankees beat the Tigers four to two. Fifty win for the Rangers three nothing over Winnipeg at the Garden. Ryan Strome scored twice and Igors just Thirk And with thirty one saves the Rangers of one of their last three games by

a combined eleven th nothing. First time the Rangers have had three strange shutouts since the Eddie Jacobin days in nineteen seventy three. NBA playoff wins from Miami, Memphis and New Orleans and upset win at Phoenix, Nets and Celtics tonight Game two in Boston. Kyrie Irving find fifty thousand dollars by the NBA for his middle finger salutes to Celtic fans on Sunday. John stash Award Bloomberg Sports, Nathan Okay, John, Thanks. Futures turning flat now. S and P futures are little changed.

Own futures up twenty seven points, Dan stack futures are lower by eighteen points ten. Your treasury is up seventeen thirty seconds. The yield two point eight seven percent, and the yield on the two year right now two point five four percent. You're listening to Bloomberg Daybreak. Bloomberg day Break brought to you by the Jewish Communal Fund j c F. Stoner Advised Fund is the smart choice to manage your philanthropy, especially in times of crisis. Make your

giving impactful. Visit j c F n y dot org, markets headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Quick Tape. This is a Bloomberg business lash, but I'm Karen Moscow. US dock index Future is trimming losses. European stocks extending gains is a rally, and treasury signals

calming nerves over inflation. We checked the markets every fifteen minutes to while the trading day on Bloomberg right now isn't The futures are a little changed down Future is higher up forty two and ASDAG futures they're down eleven. The dacks in Germany is at one point two percent, the ten year treasury up seventeen thirty seconds. He'll two point eight six percent yield on a two year two

point five four percent. NIMEX screwed oil is up seven ten percent or seventy five cents at a hundred three dollars thirty one cents, and barrel comics golled down to tenths per cent or three dollars ninety cents at nineteen fifty five ounce. The euro one point eight six five against the dollar, British found one point three zero five zero, the yen at one twenty seven point six two, and Bitcoin this morning higher at forty one thousand five dollars.

That's a bloomberg business flash. Now here's Michael Barrow with more on what's going on around the world. Michael Karen, thank you very much. Russia is pouring more troops into Ukrainian cities and towns. The fighting in the east seeks to slice the country into and a potentially pivotal battle for control of Ukraine's industrial heartland of pole mines and factories. Winds kicked up a towering wall of flames in rural northern Arizona, tearing through two dozen structures and forcing the

evacuation of more than seven hundred homes. In MLB, the Yankees one, the Mets swept a doubleheader against the Giants. The Nationals swept a double header against the Diamondbacks. The Red Sox one. The A's beat the Orioles to one, but the game was played before the smallest Oakland crowd in forty two years, almost thirty seven hundred fifty fans. In the NHL, the Rangers and Bruins one. The Islanders

lost in o t to the Panthers. Three. To Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analyist are more than a hundred twenty countries. Michael Barr and this is Bloomberg. N Okay, Michael, thank you At six nineteen on Wall Street Live from the Bloomberg

Interactive Broker Studios. This is Bloomberg Daybreak, and we're very pleased to have Joe Quinlan on with us this morning, Head of ce I O Market Strategy at Maryland Bank of America Private Bank. Joe, it's great to speak with you this morning. Obviously, earnings in focus right now with the big miss for Netflix, does that have implications for the earning season more broadly? It could, Nathan, but remember

you know the myths from Netflix. I mean it, They'll stay at home stocks, they're gonna you know, downside pressure because we're now we're looking at reopening, so kind of the opposite of the airline. So I mean, I think it's it's healthy what we're seeing in terms of earnings, good top line growth working through the pricing pressures, and the economy is opening up. So the stay at home plays that we saw two years ago to work well, now we're shifting the growth and composition of us growth

is shifting and we're going outbound. Of course, the reopening has led to these inflation pressures we're seeing and a tightening FED. How do your you advising your clients to navigate a more restrictive, potentially central bank. Yeah, it's it's kind of an education process for a lot of our clients because they haven't experienced this type of inflation and ever in some cases. But we're looking at more like using say equities, pacificals, the dividend players is inflation hedges.

So we still like kind of that value to energy come modities in that space. We're not giving up on that. We still think they're rooming to run metals materials, so we're really using equities as an inflation hedge and hard assets, whether it's real estate as well, fits into that bucket. Is that because there's just no other alternative to equities

in terms of getting a return at this juncture? Because yes, yes, Because at this juncture the FED is moving, going to have to move very aggressively, not just raising rates, quantity of tightening. So from our point of view, there's a lot of work to be done by the FED higher yield curve, and we suggest inflation has not peaped just yet, so there's a lot to work to be done in the credit markets that we think augurs for more cyclical growth and commodities. How aggressive do you think the Fed

is gonna go, Joe? We heard from Charles Evans from the Chicago FED saying rates might need to go above neutral to fight inflation. Do you think they get that aggressive? What'll It'll depend on the next couple of months, the readings, how type of labor market is, how much way to pressure May June and July. Our call from the top of the house is fifty basis points and then twenty five basis points from there on, So it's a pretty

aggressive call all things considered. So how worse the terminal rate? No one really knows, and that's really you know anything, we kind of we haven't thought about this, but the supply chain problems aren't over. They're getting worse. In fact, from Visa Beach China. So these inflationary pressures, supply related, demand related, they're not going away anytime soon. So we could see the terminal rate above the rate of inflation

for sure. That brings to the question about whether a tightening FED can bring this economy in for a soft landing. What's your outlook for recession given the pressures we're still seeing the supply chains well, we see the odds of recession rising for twenty three. It's not our call, no doubt about it. We're not worried about this year. There's a good head of steam with the consumer monetary policy works in the lag so these great heights will be

felt next year. In terms of recessionary risk, it's not a foregone conclusion that we have to have a recession a slowdown. We're looking for less than two percent growth in twenty three. That's being baked into the cake with earnings, so it doesn't have to end badly i e. Recession, but definitely a slowdown. There's no doubt about that. No, we did have real yields briefly turned positive overnight for

the first time in two years. What's that say about inflation expectations and the potential market impact with real yields moving higher potentially, Well, there's some parts of the market now looking to say, you know, kind of when do we move into the fixed income space? I mean, when the equity start looking less attractive relatively fixed income. So that's something that's I think could be part of the

narrative for the second half of this year. I don't think we're there just yet, but I think the key, Nathan, is that we came into this slowdown this year in the US at least, not China and Europe with a good head of steam led by the consumer, and I think that's going to surprise people to the upside in terms of overall growth and the overall level of earnings

and why you want to still stick with equities. About thirty seconds left here in terms of equity hedges, Are there certain sectors you like particularly, Yeah, we're like the reefs, we like the Monty complex, agriculture. You know, some of these issues are pretty acute right now, but to me, they're secular in terms of the food price pressures. Energy. We still like in metals, minerals. You know, when you talk about e V solar renewables, very metal intensive. Everyone

knows that. And to create the supply that it's gonna take years, not quarters of six stepts. So we still And it's the infrastructure, right, it's the infrastructure around natural gas, it's the infrastructure around oil arount mining. That's where I think there's gonna be some value in more site earning surprises. Thanks for this, Joe, great having on with us this morning. Joe Quinlan, head of CEO Market Strategy at Meryl and

Bank of America Private Bank. Right now, SMP futures are little changed, up just one point down, features up thirty nine points, NASTACT futures lower still by seventeen points, the tenure treasury up eighteen thirty seconds, the yield two point eight six on the tenure yield on the two year two point five four percent. Just to add more U S weapons heavy weapons going to Ukraine, and the Biden

administration says it may appeal the Mask ruling. Five things you need to notice start your day just ahead Bloomberg eleven three oh weather, early clouds. Good by to sunshine today with behind your sixty degrees more clouds than sun Tomorrow near sixty. We'll get up near seventy partly sunny

by Friday. Currently forty three degrees in Central Park. Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg Elving free to Washington, d C, Bloomberg nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg Home sixty to the country, sirius XM to A one nine and around the globe, the Bloomberg Business app and Bloomberg Radio dot com. This is Bloomberg Daybreak Hit six thirty on Wall Street. Good morning, I'm Nathan Hager

and I'm Karen Moscow. We are just about three hours away from the open of US trading. Time to the five things you need to notice start your day. Brought to you by I b k R Investment Advisers switched to interact your brokers for lowest cost global trading and turnkey custody solutions, no ticket charges and no conflicts of your interests at IBKR dot com. Slash r I, a first streaming giant Netflix slumping after yesterday's shocking earnings report.

Shares are currently down twenties seven percent in early trading, we get the latest line from Bloomberg's re need a young good morning, Ready to good morning, Karen. Netflix unexpectedly lost subscribers for the first time in a decade, and the streaming giant seas another drop of two million users this quarter. So in an effort to improve results, co CEO Read Hastings says Netflix will introduce a cheaper, advertising supported option for subscribers in the next couple of years.

He also says the company will start to crack down on people sharing their passwords. Live in New York. I'm gonna need a young Bloomberg daybreak. We need to thank you in sixteen. More companies in the SMP report earnings today, including Tesla, Bloomberg Intelligence analists You're watching how competition and global supply disruptions are testing the electric vehicle giants ambitious

annual delivery goals well. Nathan overseas the key Ukrainian port city of Mario Polis in jeopardy as defenders say they're outnumbered by Russia. Ukraine is appealing to world leaders for help them, and Russia is offensive in the country's southern and eastern regions. Democratic Congressman and Ruben Diego of Arizona tells Bloomberg's Joe Matthew the US is continuing to supply Ukraine with military aid, which should help in their fight

in the Don Boss region. By US of trying them, Jeff and and their own artillery as well as radars to actually counter the artillery. Is that in contracts you know where it's coming from. Ukraine is going to be able to have some levels of the evening of the plain field. Democratic Congressman Reuben Diego speaking with Joe and Matthew on Bloomberg Sound on Fetch the program weekdays at

five pm Eastern on Bloomberg Radio. Turning to the economy, care in the Federal Reserve releases it's beige book today, and Chicago Fed President Charles Evans says interest rates will probably rise above the neutral level, depending off depending on if inflation cools as expected. Nathan in the nation's capital, the Justice Department says it's ready to appeal a ruling by a judge who struck down the body administrations in nationwide mask mandate on planes, trains and other public transport.

The Department may appeal if the CDC decides mass should remain in place past the current assessment period. And that's the five things you need to notice start your day. Brought to you by Interactive Brokers, S and P futures are little change this morning and straight ahead your latest local headlines plus the check of sports. And this is Bloomberg. Thanks sixty three on Wall Street, forty three degrees in central parking delays building through the Holland Tunnel. We get

the details and traffic shortly. First Michael Barr with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. It's one of the largest cash settlements involving the Catholic Church in the US. The Catholic Diocese of Camden, New Jersey has agreed to pay eighty seven point five million dollars to settle claims involving clergy sex abuse with about three hundred alleged victims. Mark Crawford is with the State Chapter of the Survivor's

Network of Those abused by priests. The victims you know who are in their sixties, seventies and eighties, have come forward, So these allegations, I know the rant fifties, sixties, seventies, you know, throughout several decades. Crawford says he's glad it has come to fruition. The Justice Department is threatening to take over Rikers Island unless sweeping changers are made At the jail facility, sixteen people died there last year, and so far three inmates have died this year. Staff shortages

have also been a big problem. A spokesperson says the DC is committed to improving conditions. Connecticut State Police a trooper who fired seven gunshots into a car and killed a man in twenty twenty after a high speed chase has been arrested in connection with the shooting. Authority State Trooper Brian North turned himself into the State Inspector General. A Chinese health officials says four million more people in Shanghai have been allowed to leave their homes as coronavirus

quarantine rules ease. That brings to almost twelve million people who now have been allowed to leave their homes. The tunnel fire is ravaging the flag Staff Arizona area. Officials say it has consumed more than six thousand acres. Patrese Horsemen is chair of the Board of Supervisors for Coconino County. The tunnel fire has been fueled by high winds and derive conditions, and the county has deployed all available resources. We have requested assistance from the State of Arizona and

the federal government. Patrese Horsemen with the Coconino County says thousands have had to flee their homes. Triple A says Americans are putting aside their concerns about gas prices, inflation, and even the pandemic and hitting the road for Memorial Day. Reservations for things like flight's, rental cars, cruises, and hotels for the holiday are up one percent over last year. The Triple As Ellen Edmund says the data was collected before the matter Man date was struck down. Even with

that still an effect, we were seeing strong reservations. I don't know that that will impact it one way or the other. The Triple As Ellen Edmonds Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than twenty seven hundred journalist and analysts in more than a hundred twenty countries. I'm Michael Bard. This is Bloomberg NA. Thank you Michael. Coming up to six thirty six on Wall Street. Time for the Bloomberg

Sports update. Here against john Stown Shower even nineteen innings of baseball played at City Field and two wins for the Mets, who are a major league best nine and three. A double utter sweep for the Giants. Mets won the opener five to four in ten innings. They had trailed four to one Francisco Lindora at the game, tying and winning hits. They finished the sweep winning three to one. Max Jerzer has been as advertised, he's already three and oh.

His first met started home was a near no hit or he lost it in the sixth inning, but gave up just the one hit struck AFT's hand in seven innies. As for Garrett Cole, his struggles continue. Though the Yankees wanted to try right four to two, it was due to their bullpen, especially Clark Schmid. Cole couldn't finish the second and then he had five walks and three starts. Cole making thirties six million dollars, yet to win as

the r A is over six. As manager Aaron Boone really believe he's Collis for a big gear for us, and uh, you know he's gonna, you know, carry us for a long stretch. Uh, you know, it just hasn't gone his way so far. But um I do feel like he's close. He's just gotta, you know, get locked in with his rhythm and and they'll take it from there. Although the Yanks won, some hitting woes continued. Kyle he

Gasa Yoka is betting one oh three. Joey Gallo, who went over four with four strikeouts, betting one twenty one, no rbs. Another set out win for the Rangers. That's three in a row first time since nineteen seventy three. At the Garden, thirty one staves for Igors. Historican Rangers got their fiftieth win, three nothing over Winnipeg. NBA Playoffs, Miami got forty five points from Jimmy Butler and went out to nothing in Atlanta. Memphis beat Minnesota, New Orleans

upset Phoenix. Those series both tied a one nets Celtics game to tonight in Boston for the one of the opener at the Buzzard. John Stashar Bloomberg Sports, All right, John, thank you. At six thirty seven on Wall Street time to take a look at stock some of the names moving in the pre market. Bloomberg Markets correspondent Danny Berger is with us this morning. Danny, obviously the big mover of the morning continues to be Netflix after those rough earnings.

I mean, this was a real shocker. Have to say. The quote that stood out for me Michael Nathanson Nathanson saying, it's just shocking. So they lost about two hundred thousand customers in the first quarter, and it is the first time, um since two thousand eleven that they lost subscribers. It's notable because they've been on this really big upper trajectory of continuing to add subscribers quarter after quarter, year after years.

So this is a pretty big about face into some degree, just shows that, you know, we're not all locked up in our homes anymore. We're going out, We're doing more than just watching Netflix. And are we seeing any uh, similar moves playing out with other companies that have streaming exposure, think of like Disney or Roku, companies like that. Yeah, I mean, certainly this this isn't just confined to Netflix.

I mean Netflix itself is down about twenty six percent pre market you compare that to Disney for example, it's down five percent, so not down as drastically. UM. Some of the other companies again they're declining, but not as much. I think there's perhaps a hope with some of these other streaming services UM that they're more diversified. You think of a Disney for example, which has more UH than just Disney Plus. Of course they've really put their eggs

in that basket. But you know, you look at a Disney for example, they really started out as sort of this value stock and then added on this growthy component of Disney Plus. Now what Netflix has to do is the opposite. They were really growthy stock, and now they have to convince the market that they can pivot to be a more of a value stock. So it's a harder proposition now for Netflix and some of their rivals. In our last minute here, Danny, we're starting to see

the broader mark could move a little bit higher. Now, is there a little bit of an expectation that the overall earnings picture might not be so bad as the Netflix story. Look, we have started to see more earnings downgrades than we have in the past. But again and again you have people pointing to the fact, yes we have how yield the earnings picture would support it. I wouldn't be doing my job if I didn't give you the other side of that. Banks of America says that

we are overesting overestimating margins. Q one is as good as it gets. So for now people are happy about equities. But doesn't last is the big question. And we know you'll be watching, of course, because that is your job. Bloomberg Markets correspond to Danny Burger again, thanks for being with us in this pre market and as we look at stocks as a whole ahead of the Wednesday morning open, we have SMP futures moving just a bit higher, up four points, or about a tenth percent. Down futures are

higher by sixty nine points. That's again two tenths percent. NASAC future is still lower, but little change to the downside, down nine points the ten Your treasury is up sixteen thirty seconds. YELD two point eight seven percent yield on the two year two point five five nim X screwed up seven tenths per center, seventy three cents a hundred three dollars twenty nine cents of barrel. The latest from Washington up next, including the sort of waffling stance on

the masked man date. Bloomberg Government reporter Emily Wilkins will be with us next. This is Bloomberg Bloomberg eleven three oh weather clouds your way to sunshine today with a hind your sixty. More clouds and sun tomorrow with a high in your sixty Once again. We'll be here seventy partly sunny by Friday, currently forty three degrees at Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and

at Bloomberg Quicktape. He's a Bloomberg Business Flash and I'm Karen Moscow. SMP futures are higher this morning. Let's go to the first Word breaking news desk for today's morning call. And here's Bill Maloney. Bill, good morning, Good morning, Karen. Us features somewhat quiet right now with down features up seventy six point sesames game four nastic features are down by eleven. The US ten ual that two point eight seven percent in gold is a little change, Oil trading higher,

and bitcoin is rising by one point one percent. Shanghai dropped one point four percent overnight, while European markets are in the green, led by games in France and Germany. Back in the US on the economic front, at ten o'clock, existing home sales and after the bell. Last night, Netflix reported its first subscriber loss in a decade, shares a plunging percent pre market regarding earnings, A smart on Co

America EPs was in line and wrapping things up. Netflix was downgraded by at least five firms this morning, and Palatiner was raised a sector perform over at RBC Live from the first Baking News discom Bill Maloney, Karen Grey, Bill, thank you, and here live breaking news over your Bloomberg Times. Squawk on your terminal SCU A w K. That's a Bloomberg business flash. Now here's Michael Are with more on what's going on around the world. Michael, Karen, thank you

very much. A British judge has formally approved the expedition of Julian Assage to the United States, who faced spying charges. The case will now go to Britain's Interior Minister for a decision. The US wants to try a Sage on seventeen charges of espionage and one charge of computer misuse related to wiki leaks publication of classified documents. Russia is launching an offensive in Ukraine and an attempt to slice the country into and isolate part of the Dundas region.

In MLB, the Yankees one, the Mets swept a doubleheader against the Giants. The Nationals swept a doubleheader against the Diamondbacks. The Red Sox one, the A's beat the Orioles to one. The game was played before the smallest Oakland crowd of just more than thirty seven hundred fans in decades. In the NHL, the Rangers and Bruins one. The Islanders lost

in O t to the Panthers. Three. To Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than hundred journalists and analysts more than countries. Michael Barn, this is Bloomberg hereon RRY. Michael bar thank you.

It is a six forty nine on Wall Street. We turned to news now in science and technology with the Bloomberg and J. I. T. Stam Report, brought to you by New Jersey Institute of Technology, Frankie 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, d U and now Here's what's making news and science, technology, engineering,

and math. Health officials say they have detected more cases of a mysterious liver disease in children that was first identified in Britain, with new infections spreading to Europe. In the US last week, British officials reported seventy four cases of hepatitis or liver inflammation found in children since January. The usual viruses that cause infectious hepatitis we're not seen in the cases, and scientists and doctors are considering other

possible sources. The centers were as these Control and Preventions say almost u s children hospitalized for COVID during the omicron wave this winter were unvaccinated, though only Crown has generally been considered milder than prior variants. Peak intensive care unit admission rates for children where one point seven times is high during January when omicron reigned than when delta peaked in October, and the global smartphone market has had

its worst drop since the COVID outbreaks. Smartphones shipments fell eleven percent in the first quarter. Inflation fears Russia's invasion of Ukraine and the Omicron variant are being blamed for an unsteady recovery for the sector, and as the Bloomberg and j I. T Stem report Nathan, all right, Karen, thanks, We're live from the Bloomberg Interactive Brokers studios, where it's

just about six fifty one on Wall Street. Time now to check what's going on in d C. Some of the top stories in our nation's capital include President Biden wavering on the fight over masks in public transit, President promising more artillery to Ukraine after a meeting with al Lines, and the President Biden touting infrastructure on a trip to New Hampshire. Bloomberg Government reporter Emily Wilkins joins this now

for more on all these stories. Emily, good morning. Can you help us sort out how the Biden administration is responding to the federal judges ruling that lifted the masks in planes and trains. Yeah, it's a little confusing at this point, Nathan, because we saw the Justice Department yesterday saying publicly that it stood ready to appeal the ruling that was issued on Monday by a trumpet point in federal judge in Florida, but they were waiting for the

CDC's conclusion that the order remained necessary. And then the CDC an hour later released its own statement and really did not clearly say whether the Health agency wanted the Justice Department to even appeal. And there's a risk here, Nathan, for the Biden administration. I mean, if they did wind up appealing and then they wound up losing, that could impact how the CDC could take some basic public health precautions this in case we see a surge of cases

in the fall or in the winter. And so at this point, it's not clear that a ruling it is going to be appealed. At this point. You kind of heard yesterday Biden talk about this message about, you know that everyone's got to kind of take responsibility to figure out what's best for them. Um, it seems like this is something that those though that the CDC is still talking about, still considering, so we might say future action

on it. Uh, it's just good to know that there is a risk here should the Biden administration pursue an appeal. I guess there's a little bit of confusion as well, Emily about the idea of the Centers for Disease Control, a health agency making a decision on a legal matters. The idea of appealing a case something that you would

think would be the Justice Department's final decision. Yeah, Nathan, definitely, this is something I think a little a few people were kind of surprised by the fact that they were

turning to the CDC on this. But remember, the CDC was actually in the process of investigating whether or not the mask mandate to continue on public transportation setting, and it was supposed to end around April eight teens on Monday, and then the CDC said, we're going to extend this for fifteen days because we just need more time to review it. So it did seem like they were seriously considering perhaps ending the order on their own, uh, just

given how short see the extension was. But they really had not yet come to a conclusion on whether or not to end that mass mandate. And there's political considerations here as well, right, I mean, a lot of Americans, a lot of voters are pretty weary about wearing masks, and you've got to think that there's a lot of pressure in the White House to accommodate that to some extent.

Particularly this close to a midterm election. Absolutely, Nathan. I mean, you saw Biden really coming as president and say that he was going to be the one to sort of get good country past COVID. You saw, you know, his administration have all those early benchmarks getting various percents of the population vaccinated, and then Delta came, and then Omicron came, and things have really uh, you know, knock on the

way that Biden initially anticipated they would. You still have a large percent, are significant percent rather of the country that's unvaccinated, and that's really complicated. Biden's pushed to say that this virus is over. I mean, yes, you do have people who are wearing of wearing masks, but you also have people who are still very concerned. You still have parents of kids who are under five who can't get them vaccinated, and you still have the millions of

the mutile compromised individuals. So I think there's really a wide range at this point of views on the masks. But the Biden administration, they are at least trying to show that since they came into office two years ago, that they have made progress and the American people should trust that they're doing the right thing. All right, let's turn to another major issue facing the president. Of course, that's the war in Ukraine. We had that virtual meeting

with allies. What more do we know that came out of that. So one thing that we're really starting to understand now this sort of the work that needs to be done in regards to making sure that Ukraine is can be rebuilt when all this is over, that they have the finances to do so. And you are seeing a coalition of European groups come together and say, yes, we do expect to pay UH and really help Ukraine UH come back after they have been absolutely shattered by

the war. UM. The European Commission to all diplomats they're working on and UH instruments to focus on the long term needs of the country. UH. This is kind of coming as their additional discussions about what weapons should be provided to Ukraine, what Ukraine needs in terms of humanitarian assistance. At this point, I mean, right now, the war is

not going in Ukraine's favor. UM. In the city of mariouopl Ukrainian defenders are really making their last stand at the steel plant, and Russia's demanding that they lay down there are and surrender. President Vladimir's Lensky is making a last pitch for for effort and for help here. But you're still seeing that. You know, all all countries like the US are willing to provide more all artillery, more weapons.

They're not willing to send in soldiers, and they're not willing to institute a no fly zone last minute here, Emily. We know the President was in New Hampshire yesterday touting his infrastructure plan. But political headwinds are pretty tough for the president right now. They're incredibly tough for the president. But at this point we really haven't seen that impact his standing within the Democratic Party. It still seems like a lot of those who are campaigning want to be

seen with him. We've seen House members and difficult races go ahead and embrace him and in ship to New Hampshire. This is going to be a really politically important state come November. He's got Senator Maggie Hatton who's running again. She's considered one of the more vulnerable Democratic senators could potentially lose her seat. You've also got a couple of house race up there that's going to be very competitive with congressating Chris Pappas and so going up there touting infrastructure.

I mean, this is kind of sticking to the White Houses playbook at this time to really get out there and try and tell the American people what they've done, what they've passed, and how it's going to benefit them. Um. And they need to have that message because some of these infrastructure projects that are going that's going to be funded by this legislation, they're not going to start for us for some time and they're certainly not going to be completed for years. So right now the messaging on

this bill is very important. Bloomberg Government reporter Emily Wilkins with us from Washington. Emily, thank you. SFP futures up three point, staff futures up sixty four, NANTEX futures down thirteen. Bloomberg. Surveillance is next for Karen Moscow. I'm Nathan Hagar, and this is Bloomberg