Bloomberg Daybreak: April 25, 2022 - Hour 2 (Radio)

arguments involving the separation of church and state. I'm Michael block More. I'm John Stage. Sports the Mets and Yankees both one NBA playoff wins from Milwaukee, Miami, Denver, and New Orleans. That's all s training ahead on Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg one, Washington, d C, Bloomberg one O six one, Boston, Bloomberg nine sixties and Francisco Syrius Exam one nine team and around the world on Bloomberg Radio dot Com and via The

Bloomberg Business. Good Morning, I'm Nathan Hagart and I'm Karen Moscow, u S stock Index futures are lower this morning. We're coming up to six o one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP Future is down thirty six points and down futures down two hundred seventy one ANNOUNCEDACK Future is down ninety two. Ten year treasury up eighteen thirty seconds,

l two point eight two percent. Have they yield on the two year two point six zero percent, Nathan, Karen. We'll get back to markets in just a minute. But first, a significant diplomatic development in the war in Ukraine. Secretary of State Anthony Blincoln and Defense Secretary Lloyd Austin have met with President Vladimir z Lensky in Kiev. They announced a hundred sixty five million dollars in ammunition sales and said US diplomats will return to Ukraine as soon as

this week. Secretary b Lincoln says Ukraine will prevail on the battlefield. Russia has already failed and Ukraine has already succeeded because the principal a that president who brought to this in his own words, was to fully subsume Ukraine back into Russia to take away its sovereignty and independence, and that has not happened, and fairly will not have. Secretary of State B. Lincoln was joined by Defense Secretary Lloyd Austin, who says the US wants to ensure Russia

remains weakened. It has already lost a lot of military capability and a lot of a lot of its troops quite brightly, and we want to see them not have the capability to very quickly reproduce that capability. Secretaries Austin and b. Lincoln are the highest ranking US officials to visit Ukraine since Russia's invasion began. And Francis Morning Nathan Politics Front and Center. Emmanuel mccrown has won a second term as president and we get more from Bloomberg's Francis Laqua.

In Paris, Emmanuel mccollon defeated far right leader mahind Theban on a pro business, pro European platform. He's the first sitting president to get a second term in twenty years. McCoy is on course to win about fifty eight percent of the vote compared with for been, a narrower victory than the previous contest in tween. The outcome is good news for investors who had predicted that a Loupen victory would deliver shock to markets on the scale of the UK's vote to leave the EU or the election of

Donald Trump in the US. But the rise and support from behind Lupins and nationalist program also reflects a bitterly divided country. Speaking to supporters in front of the Eiffel Tower in Paris, Makon thanked French voters for trusting him after five years of hard times. He acknowledged many people voted for him only to block the far right and vowed to be president of all in Paris. I'm from

s Laqua. Bloomberg Daybreak, Francine Thanks. In Asia, overnight stocks and China plunged almost five percent or worsening COVID outbreak is fueling fears of a bigger slowdown in the world's second largest economy. And we get more from Bloomberg Daybreak Asia anchor Bryan Curtis. Authorities have lockdown some parts of the capitol. Policymakers are racing to prevent a repeat of the Shanghai outbreak that has hobbled the city for weeks.

Shangha reported record daily deaths over the weekend that the lockdowns could hurt growth. Oil and iron ore tumbled in Monday morning trading. Brian Curtis, Bloomberg Daybreak. All right, Brian, thank you all Back here in the US. We're focusing on Twitter. The social media company is growing more receptive to Elon musk forty three billion dollar takeover offer, and we get the latest live from Bloomberg's Rnita Young. Good morning, Rinda,

Good morning, Karen. Bloomberg. Sources say Elon Musk met with Twitter executives on Sunday to discuss his offer. Twitter's board initially countered Musk's proposal with a poison pill, which would make it more expensive for any investor, including Musk, to acquire stock beyond a fiftent steak. Musk currently owns about nine percent of Twitter, but The Wall Street Journal reports Musk says he will not adjust his fifty four dollars and twenty cents a share offer for Twitter that's above

Friday's closing price. The journal also reports a deal could be finalized as soon as this week. Live in New York. I'm Rnita Young, Bloomberg Daybreak. We need to thanks. Corporate earning are also in focus, with more than a third of the companies in the SMP five hundred reporting. This week, we get a preview from Bloomberg's Charlie Pellot, Apple, Amazon, and other technology giants report results, as do major industrial, healthcare,

and consumer goods companies. Sarah Malick is chief investment officer at nouven. Who we're watching for for earnings are with the demand outlook, pricing, power, supply chain issues. So going forward, we're so bullish that earnings will continue to drive this market higher. This week we hear from Alphabet, Microsoft, Intel, and Texas Instruments among tech names. Also this week, three M Boeing, g E, G, m Ford, Caterpillar, Exonmobile, and

Visa in New York. Charlie Pellet Bloomberg day break. All right, Charlie, thank you. Another impact on earnings employee pay. According to a survey by the National Association for Business Economics, wages increased at a record seventy of US companies in the first quarter. About half of the firm's survey are still reporting shortages of skilled labor. Turning to politics now, Karen a warning to fellow Democrats from Senator Elizabeth Warren. She says her party could be in real trouble in this

year's elections if it doesn't do more about inflation. I think we're going to be in real trouble if we don't get up and deliver. Then I believe that Democrats are going to lose Democrats when when they do what when they work on behalf of working people. Senator Elizabeth Warren tells CNN Democrats must push through legislation to tamp down soaring prices. Oh they think. Christine mcguard is also

speaking out about inflation. The ECB president says both the US and Europe are struggling to contain prices, but the challenges are different. Right now, half of Europe's inflation stems from surging energy costs. I believe that we share the same result, which is to tame inflation, which is to use all the tools that we have to do so,

but we're facing the different beast. ECB President Christine Leguard tells CBS is face the nation that if she raised interest rates today, it would not bring down energy prices. You can catch Face the Nation every Sunday on Bloomberg Radio looking at energy prices right now Karen dim Ex screws down four point four percent or four dollars forty two cents at ninety cents in barrel. Futures are moving lower as well. Straight ahead your latest local headlines, plus

a check of sports. This is Bloomberg. It sounds six oh seven on Wall Street. Were at forty seven degrees in Central Park. Still dealing with an accident investigation on the Garden State Parkway past X at one sixteen. Details coming up in traffic. First, Michael Bars here with more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. Officials say a New York City firefighter and a civilia have died in a

Brooklyn house fire where a ceiling partially collapsed. Acting Fire Department of New York Commissioner Laura kavanas at thirty one year old firefighter Timothy Klein was a six year veteran of the department. The incident commander identified deteriorating conditions and ordered all members out of the building. As they were doing so, there was a partial collapse of the ceiling.

Four members were caught in that collapse. Commissioner kavana says eight other firefighters were also injured and another resident sustained minor injuries. Mayor Eric Adams more inclines death, saying the city had lost one of his bravest. Meanwhile, Mayor Adams also talked about crime in the city. We removed eighteen hundred guns off the streets about city since I've been elected eighteen hundred and so we're put in place the

foundation of dealing with the immediate needs of violence. But we also stopped in the pipeline that caused his children to get involved in violence. Mayor Adams made his comments on CDs IS sixty Minutes, which aired last night. As COVID cases rise in New York City, The new Commissioner of Health in New York City, doctor Ashwin Vessan, is disappointed in learning that some city teachers got fake vaccination

cards to keep their jobs. It really undermines trust. It undermines trust in one another, It undermined trust in public health and undermines trust in government. Dr Pissan also says he disagrees with the federal judges ruling to end the masked mandates for passengers on planes, trains, and buses. Jury selectioned against today and one of the highest profile US capital of riot trials. A former New York City cop is accused of assaulting Washington police on January six. Thomas

Webster is charged with assaulting police at the Capitol. Webster is expected to argue self defense against an officer who was overstepping. The Supreme Court is set to hear arguments today in the case of a former high school football coach in Bremerton, Washington. Joseph Kennedy was fired by the public school district after refusing to stop praying on the field after games. Kennedy says his First Amendment rights were violated.

Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than hundred journalist and analyst more than a hundred twenty countries. Michael Barr, This is Bloomberg, Nathan. Thanks Michael six o nine on Wall Street time for the Bloomberg Sports Update with John Steinshauer. All right, Nathans, some early season struggles, and yet here are the Yankees right now, tied for the best record

in America. Lead they used to have their most lopsided win of the year and their first series sweet Feet the Guardians at the Stadium tended to Anthony Rizzo got him going to run homer first inning and Yanks were up six nothing by the third. Plenty of run support for Garrett Cole got his first win. Get a nice elevation from the craft. Obviously nice. Uh, it's just a

nice day overall. Really well played game. Um, just to get finish to the serious suite Fount hard Um and really just put a cherry on top and played to play a complete three games. Fans and the bleachers behave themselves after what happened Saturday. Yanks are off tonight. The lost Baltimore. Tomorrow Mets with a six to win at Arizona. Tyler McGill improved the three and oh the Mets have now played five series and they've won all five. They're in St. Louis to night battle of National League to

Visian Leaders final week. How the NHL regular season, Carolina just beat the Islanders five to two, and that puts the Hurricanes four points ahead of the Rangers of the two teams fight to win the division. The King's Face the Rangers at the Garden tomorrow night. At Barkley's Tonight, Nets and Celtics gave four with Boston going for the sweep.

There was some hope that facing elimination, the Nets would have Ben Simmons in the line up for the first time ever, but sighting his sore backs, Simmons will not play to stay alive, and Nets clearly need a better game from Kevin Rant. He has been decisively outplayed in the series by the Celtics star Jason Fatum. Milwaukee and Miami easy wins on the road for three one. Series leads in the East and the West. Denver State alive still fills Golden State three one. New Orleans beat Phoenix.

That series tied at two. John Stash went Bloomberg Sports. All right, John, thank you. Right now, SMP futures are down thirty eight points down, futures down two nastack futures are lower by a hundred six points. The ten your treasury is up seventeen thirty seconds. The yield two point three percent. Yield on the two year right now two

point six zero per cent. You're listening to Bloomberg Daybreak, Bloomberg eleven three oh Weather partly sunny today with highs in the low sixties, mid sixties tomorrow, with a chance for a few showers. We'll be back in the upper fifties by Wednesday. Attorney partly sunny right now forty seven 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 Quick Tape. This is a Bloomberg Business lash and I'm Karen Moscow stocks and commodities are tumbling this morning as China's worsening COVID outbreak compounds fear sparked by faster federal reserve tightening. Bonds are rising. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg Guess and P Future is down thirty seven points down Future is down to D eighty one. NAS Day Futures down ninety eight. The decks in Germany is

down one point seven per cent. Ten year treasury of seventeen thirty seconds yield two point eight three percent. That

yield on the two year two points zero percent. Nine X Screwed oil is down four point one percent on four dollars twenty three cents at ninety seven dollars eighty four cents of barrel Collmic school is down nine ten percent or seventeen dollars ten cents in nineteen seventeen twenty announced the euro one point oh seven three five against the dollar British pound one point two seven to four the end at one eight point one nine bitcoin this morning lower down too and a half percent at thirty

eight thousand, five hundred twenty dollars. 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. Ukrainian officials say the U S Secretaries of State and Defense have met with President Volodamir z Lensky in Kiev. The two American officials said the US would be providing more than seven hundred million dollars in new military assistance for Ukraine.

French President Emmanuel mccrawl has secured another term in office, handily defeating his far right opponent Marine n The Chrome won the second term with roughly fifty eight percent of the vote. The pen got about forty two percent. In MLB, the Yankees and Mets one, the Red Sox and Orioles lost. The Giants beat the Nationals twelve three, the A's one in the NBA playoffs, It is due or die tonight for the Nets. They have to beat the Celtics in

game for their series to avoid being eliminated. The Warriors lost to the Nuggets. Golden State still has a three games one lead in that series. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barren, this is Bloomberg. Nathan Alright, Michael. Thanks at six nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak.

Let's turn out to what's happening in Asia. We did see a major selloff in Chinese stocks overnight. It's having reverberations throughout the market this morning, with a surge of COVID cases in Beijing, raising figures of the kinds of lockdowns the sent Shanghai into a panic earlier this month. For more, we're joined from Hong Kong this morning by Bloomberg Chief Asia Economics correspondent and the Current and good morning. Just how bad is the COVID situation in Beijing from

how we can see it right now? So the total caseload Nathan is very low. I think it's officially below thirty. But that's not the real story. The concern is that Beijing has a converse stealth spread on their way of MCRON and we all know how transmissive of that is. And a concern is that that Chola will be heading for two of its most important cities being under lockdown.

Shanghai's lockdown continues to grind on there as contained because cases remains someone elevated and the authorities remain committed to COVID zero. That Beijing is not yet under lockdown. What's

going on. What's going on is that one part of the cha Yang district, which is home to about three and a half million people, which is kind of an ex patty part of town, banking part of town, they are forcing through a lot of mandatory testing, and there are some communities, maybe fourteen communities that have been described as being sealed up by the authorities, but a citywide

lockdown is not yet in place. To concern though, is if that the authorities deemed that the cases aren't under control at some point soon that of course you'll see a broader lockdown. And that's why we've seen reports of conic shopping in the supermarkets, and of course that big reaction on markets where you have the U won't sell off down to it's to be unsure, you won't felt it was weakest than seventeen months. Stock slumped and arn or came off. Because of course, another lockdown will be

very bad for the economic story. Yeah, we certainly saw how bad it was for Shanghai when that lockdown was underway, But we have started to see some of those restrictions get lifted in Shanghai. Does that give us any indication of how things could play out in Beijing? It's a modest easy according to her our reporting from there. You know, they're lifting it in the piece meal basis where there is where they believe there isn't examples of community spread.

But you know, we've also read reports of restrictions being easy and restrictions being reinforced at the same time. And by the way, over the weekend we reported the offenses were being installed around Shanghai to steal off buildings or positive cases had been found. So you know, Shanghai remains under quite restrictive circumstances, I think, and there is no

sense of an end game to it yet. But what I would say, Nathan, is that for all of the economic hit, there are those who say, if China can get these infections under control, that they will then reopen pretty quickly and allow the factories and production and industry production to get motoring again pretty soon, and to allow of course consumers to get shopping again. So that would obviously negate the hit to the economy. But that's obviously

the big question. When will trying to get these cases under control and when will they be confident enough to allow people to move around freely again. And that's a

serious question right now. But you have to think, and there's some political considerations as well, with President shi jin Ping of trying to keep support among not just polit bureau but the Chinese people themselves, or has he consolidated power enough that he can weather this No matter how the COVID situation plays out, well, you'd have to say it's a big test because you know, Chinese facing its biggest pandemic outbreak now since all of this began way back in early So this is a big test of

the whole COVID zero approach. And and if you take social media as as a metric as one gauge of popular sentiment in Shanghai. We know people have been naturally very upset by what's going on, So the authorities are definitely under pressure, there's no doubt about it. In if Beijing went into a big lockdown, then you would have to say it will surely be a test of the

whole overall COVID zero strategy. And that's happening at a time when the economy is already under some pressure from external forces like the Russia invasion of Ukraine, which is royal commodity markets, and of course signs of slowing demand for Chinese exports. So there's definitely a lot of egle on pressure on the authorities. But that's said Nathan, there hasn't been any real signal of a rich East from COVID zero just yet. In fact, all the signaling has

been quite adamant about it. Last week we had President Shooting Pinion Hainan. He spoke, he spoke virtually to the Boao Forum there and he made the point that you know, primacy, people's lives has to be put above all else. He's used previous forms to make the point that COVID zero has got to be maintained in order to protect the people. And of course the state press make the point that living with COVID as as as we'll say to broad westward as justus too, is not the model and not

the way for for China. One picular weekness I would say, Nathan is, vaccination made for the elderly in China is off the pace, and that's been seen as a vulnerability. All right, Boomberg chief as your economics correspondent, and occurring with us this morning from Hong Kong. As those concerns about potential lockdowns in Beijing are reverberating through markets right now.

We have SMP futures down thirty three points down, futures down two fifty four, Nasdaq futures lowered by eighty eight points.

Just ahead, Biden's cabinet visits Kiev, and Twitter gives el and Musk's takeover all for a second look, the five things you need to notice start your day just ahead Bloomberg eleven three oh weather partly sunny, low sixties today, a few showers possible tomorrow behind your sixty five, upper fifties for Wednesday, turning partly sunny right now forty seven degrees in Central Park, broadcasting live from the Bloomberg Interactive

Broker's studio in New York. Bloomberg E Living Free to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixteen to the country, Sirius XM to the one nine and around the globe the Bloomberg Business at and Bloomberg Radio dot com. This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm Nathan Hagar and I'm Karen Moscow, and we're just about

three hours away from the open of US training. It's time for the five things you need to notice start your day. Brought to you by Interactor Brokers. Interactor Brokers charges margin loan rates from zero point eight three percent to one point three percent rate subject to change. Learn more at ibk R dot com slash compare. The first U S Secretary of State Anthony B. Lincoln and Defense Secretary Lloyd Austin visited Ukraine yesterday to me with the

country's President, vladimir's Lensky. It's the highest level US visit to Ukraine since Russia began its invasion Austin said he wants to see Russia continue to lose its military capability. You want to see Rosia weakened to the degree that it can't do the kinds of things that it has done in invading Ukraine. U S Secretary of Defense Lloyd Austin and Secretary of State Anthony Blinkin met with a

Lensky in Kiev. The US promised over seven hundred million dollars in financial assistance for Ukraine and its allies, and Lincoln also announced diplomats will soon be returning to the country, and US Secretary of State Anthony B. Lincoln was speaking after his visit. Well meantime, in France, Kareny Manuel Macron security victory over Marine Lapin in the country's presidential election yesterday. Mccron is the first incumbent to win a second term

in France in two decades. And China stocks are slumping. Is a COVID outbreak is stoking fears of a lockdown in Beijing. US futures and European stocks also dropped. Right now. S and P futures are down thirty six points at nasday. Futures are down a hundred on the earnings front. This week, Karen, Apple, Amazon, Alphabet, and Microsoft all report as too many major industrial, healthcare,

and consumer goods companies. Well A Big Tech reports earnings at Twitter is growing more receptive to Elon musk forty three billion dollar takeover offer. And we get the latest line from Bloomberg's or need a young good morning Ready to Good morning, Karen. Bloomberg. Sources say Elon Musk met with Twitter executives on Sunday to discuss his offer. Twitter's board initially countered Musk's proposal with a poison pill, which would make it more expensive for any investor, including Musk,

to acquire stock beyond a fifteen percent stake. Musk currently owns about nine of Twitter, but the Wall Street Journal reports must said he will not adjust his fifty four twenty cents a share offer for Twitter that's above Friday's closing price. The journal also reports a deal could be finalized as soon as this week. Life in New York. I'm gonna need a young Bloomberg daybreak. All right, we need to thank you. And that's the five things you

need to notice start your day. Brought to you by Interactive Brokers and Futures Again moving lower this morning Straight Ahead, your latest local headlines, plus a check of sports. And this is Bloomberg. All right, Karen, thank you. Six thirty three on Wall Street, degrees in Central Park. Still dealing with that accident investigation on the southbound Garden State Parkway. We'll get you the details 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. A New York City firefighter was killed and others injured after a house fire in Brooklyn. More than a hundred firefighters where at the scene the three alarmed blaze. Mayor Eric Adams says thirty one year old Timothy Kline was one of four firefighters caught in a partial ceiling collapse. It gives us great pain is sorrow to announce that

New York City has lost one of the bravest. Mayor Adams also says a civilian apparently died in the blaze. The Supreme Court is taking on a dispute between public school officials and a former high school football coach who wanted to kneel and pray on the field after games. The case before the Justices involves Joseph Kennedy. He is a former football coach at Bremerton High School in Bremerton, Washington.

Rachel Lizer, President and CEO of Americans United for Separation of Church and State, representing the school district, says Kennedy was asked to stop because there's a thin line between church and state. When you're acting as an agent of the state, you can't impose or religious views or practices on school children, and this has been clearly established law for decades. Rachel Liser, President and CEO of Americans United

for Separation of Church and State. Kennedy's lawyers say the Constitution's freedom of speech and freedom of religion guarantees him to pray on the field. The Biden administration is appealing of federal judges ruling to end the mask mandate for passengers on planes, trains, and buses. The termination of those c d C travel restrictions come as COVID cases are rising in places like New York City. The new Commissioner of Health in New York City, Dr Ashwin Vassan, says

he's disappointed. Number One, from a public health standpoint, wearing masks in indoor settings is is safe it's a safety issue. Um and planes, trains and automobiles and public transport is are really important higher risk locations because of the duration of exposure. Talked Son also says it really undermines trust when some city teachers got fake vaccination cards to keep

their jobs. Global News twenty four hours a day on air end on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts in more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg NA. Thanks Michael. Just about six thirty six on Wall Street time for the Bloomberg Sports Update. Good morning, John Stash,

Morning Nathan. Strong start to the Mets season kntinues. They won six two at Arizona's Tyler and McGill improved to three and oh a home run for J. D. Davis. The Mets have now played five series and they've lost once and only once in each series. For a little better team now Cardinals first place in the n L Central match Chers or St. Louis Native on the Mountain St. Louis for the Mets. Tonight, Yankees first wait for the season ended with our most lopsided wind ten to two

over the Guardians at the Stadium. The Yanks were up six nothing by the third, editing home runs three Anthony Rizzo, d J. The Mayhew and the seldom used Tim Locasto and Garrett Cole. They will get his first and able to lower his e r A down to four. Yankees are off tonight, Barkleys tonight, and Nets face elimination. Celtics go for the series sweep. Nets coach Steve Nash after the Game three loss, asked if Kevin Durant's quiet series is the biggest problem the unforced turners. I don't think

Kevin has to go off. You know, we we we shot a good percentage. Who of the balls that we just gave up, you know, poor decision making, you know, connecting simple passes and they're going the other way. That's to me is in the difference in all three games, and that's of course made the big trade. Philadelphia shipped out James Harden. The key player that got in returns Ben Simmons. But Simmons didn't play at all for the Sixers, had mental issues and then he heard his back while

getting ready to play for the Nets. He was said to be set to make his Nets debut tonight. It would be his first game in nearly a year, but Simmons woke up yesterday with the back still store. He will not play Milwaukee in Miami. With wins at Chicago and Atlanta, the Bucks and Heat have three one series leads Denver one still trails Golden State three and one New Orleans beat Max. That's you're surprisingly John sports. All right, John, thank you. It is six thirty seven on Wall Street Time.

Now to take a look at stocks, some of the names moving in the pre market, with Bloomberg Radio and TV Markets correspondent creating Gupta created if you look at the index level, looks like everything's moving lower everything, which is kind of important here. To take a step back before we do that, let's talk about the handful of stocks and I reary meet. I really mean a handful, Nathan. Only four stocks in the green this morning, and that's

I'm just gonna read them to you here. The biggest one, I think is Twitter that everyone cares about this, of course, coming after a report is from the Wall Street Journal that Elon Musk and the board have come to some sort of agreement. Now, of course, we do know that there has been that kind of poison pill talk. How the board wanted to prevent elon Musk or at least get maybe a higher offer. Now reports suggests that forty three billion dollar offered that's really or million four billion,

I'm sorry, billion dollars. It's Monday, Nathan. Billion dollar offer still is on the able. They're going to work out how the financing works out, though, so whether or not that reporting can be confirmed can be backed up. That's, of course we're gonna be waiting here, but for now, investors kind of bullished on Twitter, especially on a risk off day today, t w t R up zero point eight percent. The other one that's getting quite a bit

of attention is PEN National Gaming. This comes after a mortgage Stanley analyst raised the recommendation to an overweight from an equal weight. The price target set to fifty one dollars at increase from the last that's a kind of a recommendation that's boosting PEN shares p e n N up two point nine percent. Nathan. Obviously, the morning seems to be dominated by what's happening in China, the growth concerns there with the worry about COVID lockdowns. Could things

turn around low. Later on this week, when we start to hear from a lot of companies in the SMP reporting earnings, well, this is such a make or break week, Nathan, because it's tech earnings and it comes down to the waitings essentially. I mean, if you look at some of the pre market movers this morning, your biggest decliners in the S and P five, they're not your tech names, which is what you would think on to trying to

sell off. They're actually your commodity names, which is really a direct result of this idea that if Beijing goes under lockdown, which is perhaps the fear here, a lockdown similar to the likes of Shanghai a capital imagine Washington, d C. The entire city going under lyingdown. That would as kind of scale that they're talking about in a much more populated region, I should say. So that's really

the concern here. Names like Freeport mcmaran fc X as you're taking down four point four percent in just the pre market trading oil names as well, Occidental o x Y down three point seven percent, and then of course you have likes of Devon Energy TV and UP down three point six percent, and of course some of those tech names following and really dragging the rest of the market down with it, all right, Bloomberg Radio on TV Markets correspondent Creedy Gupta, We know the market will be

open no matter what happens later on this morning, and as we take a look at stocks as a whole ahead of that, as we say, they are moving lower, with SMP futures now down forty points, South futures down three seven, Nasdaq futures on the decline by a hundred nineteen points. Ten year Treasury is up twenty two thirty seconds, the yield two point eight one and the yield on the two year right now two point five nine percent. More on the cabinet visit to Kiev and Elizabeth Warren's

warning to Democrats. Emily Wilkins Bloomberg Government joins us next from Washington. This is Bloomberg Bloomberg eleven three oh Weather partly sunny, low sixties today. We could see a few showers tomorrow at the high near sixty five, upper fifties to your sixty Wednesday, as we turned partly sunny right now in Central Park, Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com. The Bloomberg

Business at Hand at Bloomberg Quicktape. He's a Bloomberg Business Flash and I'm Karen Moscow and US DOT index futures are falling this morning. We had the first word of Breaking News desk for today's morning call. Here's Bill Maloney. Bill, good morning and good morning, Karen. That's right. US futures are under pressure after Friday's plunge. Without futures down three undred points, says to be dropped thirty nine, while NASZAC

futures are down by a hundred and ten. The US ten year that two point eight two percent, Gold is down sixteen. Oil is also falling, and bitcoin is down by two point six percent. Shanghai dropped five point one percent overnight, while up and markets are also in the red, led by two percent losses in the UK and France back in the US. On the economic Frinday thirty, Chicago fed Indian News. Twitter is growing more open towards Musk's

takeover offer and regarding earnings. This morning, look for Coca Cola's report in the pre market. Rapid things up. Newmont was cut to market perform at Bernstein. Verizon was cut to neutral over at Goldman Sachs live from the first to Breaking News desk on Bill Maloney Cara Verry, Bill, thank you to hear live breaking news over her. Bloomberg types walk on your terminal, I'll scu you a w

u K and that's a Bloomberg business flaction. Now here's Michael bar with more on what's going on in the world. Michael Karen, thank you very much. After a secrecy shrouded visit to Kiev, US Secretary of State Anthony Blincoln said Russia is failing in its war and aims to have Ukraine succeeding. The trip by Blincoln and Defense Secretary Lloyd Austin was the highest level American visit to the Capitol since Russia invaded in late February. Crews are fighting a

fast moving wild fire in New Mexico. Firefighters in Colfax County near Las Vegas are battling the Cook's Peak Fire. The flames have expanded to more than forty eight thousand acres. In MLB, the Yankees and Mets won the Red Sox Scenariols lost. The Giants beat the Nationals twelve three. The A's one in the NBA playoffs. It's do or die tonight for the Nets, they have to beat the Celtics and game four of their series to avoid being eliminated.

The Warriors lost. For the Nuggets, Golden State still has the three games to one lead in that series. Global News twenty four hours a day on air and on Bloomberg Quick Day, powered by more than twenty seven hundred journalists nantolists more than twenty countries. Michael bar this is Bloomberg. The following commentary is from Bloomberg Opinion. America may have eaten its fill of take out chicken wings. I'm justin Fox,

a columnist for Bloomberg Opinion. When Americans were confronted with the worst pandemic and more than a century, they reacted in some surprising ways. One of them was to order lots of chicken wings. Same store sales at restaurant chain wing Stop rose thirty two percent in the second quarter of as other fast food brands and new style ghost kitchens got in on in the wings action. Wholesale chicken

wing price is more than doubled in twelve months. Wings are easy to prepare and stand up well to delivery, making them a great choice for idle restaurant kitchens and hungry consumers during lockdowns. Now that things have returned kind of sort of to normal, wholesale wing prices and wing stops stock are down. Both are still higher than before the pandemic. Wings aren't over, just taking a break. I'm justin Fox. For more opinion, please go to Bloomberg dot com, Slash Opinion or O P I n go on the

Bloomberg terminal. This has been Bloomberg Opinion and Bloomberg Opinion commentaries can be heard every weekday at this time at terminal. Customers can read more at O P I n go. It is six fifty on Wall Street. Returned to news and science and technology now with a Bloomberg and j I T. Stam report brought to you Buy New Jersey Institute of Technology and j I T offers New Jersey's first undergraduate degree in fintech. Take driven to Finance Focus.

Learn more at n j I T dot E d U Slash Fintech and now Here's its making News and science, Technology, engineering and math. And China, the coronavirus outbreak has gone worse. A rising number of cases in Beijing is sparked jitterous about an unprecedented lockdown to the capitol. Policymakers are trying to avert at Shanghai style crisis that has already reached havoc on that city. There's another risk of global food inflation.

The top producer of palm oil Indonesia says it'll banas words until the government is certain a domestic shortage is resolved. Palm Oil is used in packaged foods and as cooking oil. It's also used in non food items such as detergents and cosmetics. And Netflix earnings disappointment is still rippling through the markets, and AZDAC A hundred index or one hundred index has ere raised about one trillion dollars in market

values since the streaming company's report. The stock is the worst performer in the SNP five hundred this year, down sixty percent. On the bright side, Netflix has surged about twenty thousand percent since going public in two thousand two. And as the Bloomberg n j I t Stem report Nathan,

all right, Karen, thank you. We are live from the Bloomberg Interactive Brokers studios, where it's coming up to six fifty two 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 Secretary of State Anthony Lincoln and Defense Secretary Lloyd Austin promising more weapons and the return of diplomats in a visit to Kiev, Ukrainian Prime

Minister Dennis schmil tells CBS S face the Nation. The visit with President Vladimir's Lensky is as important for the US as it is for Ukraine to see by their own eyes what's happened, which atrocities and war crimes Russian Army and Russian Federation made in Ukraine. U N Secretary General Antonio Guterres plans to meet with Russian President Vladimir Putin in Moscow tomorrow. Ukrainian Deputy Chief of Staff e Or Jovka tells NBCs meet the press. That's not a

good idea and the result. I really doubt if those fee stalks organized by Secretary General will the UN will end up with any results. Also making news, Democratic Senator Elizabeth Warren warning her party is in trouble going into the mid terms unless it does more about inflation. Democrats ran and always run on trying to make government work for working people. We've got nearly two hundred days left.

That's what we need to put our energy off. Senator Warren spoke there on Meet the Press, which you can hear every Sunday on Bloomberg Radio along with Face the Nation. Let's get more now from Bloomberg Government reporter Emily Wilkins starting off with the visit of Secretaries Blincoln and Austin to Kiev. Emily, this was much more than just about symbolism.

There was news made in Kiev. Yes, Um, the US has pledged more than seventy seven hundred million dollars in continued aid to Ukraine, and that came with this visit by Secretary Blincoln and Secretary Austin. And they're saying also that starting next week other U s supplements are diplomats are going to be able to return to Ukraine as well, and that the embassy is going to open soon after. So really showing that the US is now at the

point where they are starting to really come back to Ukraine. Uh. This is going on even as there is a continued battle UH in Maryouple over the steel plant, and while Russian forces are really concentrating on the eastern part of the country. UM. At the same point, there's a sense that that Kiev is slightly safer than that I guess it has been in the past, or there's simply an ability now for the US to be there after it

initially evacuated all of diplomats several months ago. Now I know Congress is heading back from its recess back to Capitol Hill. When do we expect debate to resume on even further aid to Ukraine? So we know that there's going to be legislation this week that's going to make that's going to go through the House. It's already passed the Senate, and basically it's just going to make it easier for President Biden to send defense systems over to Ukraine.

It's going to take down some of the waivers and what not that would need to be done initially. We're also expecting an additional funding request from the White House to Congress. We don't know exactly how much that's going to be. Congress still hasn't gotten that request from the White House, but leaders in Congress say that once they get that request, they're going to be moving very quickly on it. Uh, it could be as soon as this week.

Might might need to wait for a little bit um, just kind on when when the White House gets the requests there, but it's something there's a lot of bipartisan support on. I think the big question though, is if a bill like that is introduced, will lawmakers try to add other items to it. I'm thinking perhaps in regards with immigration, that Title forty two that's about to be lifted that would end certain restrictions on migrants crossing at

the southern border. Yeah, it's interesting you mentioned that potentially coming into play because as Congress returns, we're going to have the return of politics and the battle for the mid terms, and we certainly heard from Senator Warren sort of laying down the stakes for what could be coming for Democrats. Yeah. Warren tolds that over the weekend that our party could be in real trouble if the party

doesn't do more to address high inflation. And one of the things that Warren is suggesting doing at this point is really going after large, large companies, which she says have been price gouging aid because of inflation, they felt like they can go ahead continue to raise their prices. She called on the Federal Trade Commission to investigate and to prosecute and Nathan this is something we've already seen

the Congress begin on. We've seen hearings about whether or not companies are raising their prices more than they need to be at this point in time. Um, and if there are things going on that that really these companies can be held accountable. Forum. On the other point, there

really are you know, trade backups. UM, there's definitely deals still an impact from the pandemic at a global level, and so there are supply chain issues that are impacting inflation that that really are going to be difficult for Democrats to try and control in any way, shape or form. Now just a few months until that midterm election. Bloomberg Government reporter Emily Wilkins joining us this morning from Washington, d C. And you can read more about these stories

on Bloomberg dot com or on the Bloomberg terminal. Listen to Bloomberg Radio in Washington at Bloomberg and one oh five point seven FM h D two. Karen, Herry, Nathan, thank you for watching. Coca Cola earnings crossing the Bloomberg so first quarter comparable UH profit coming in beating analysts estimate sixty four cents a share and also organic revenue in the quarter up eighteen percent. Analysts were looking for a rise of nine and a half percent, so that

easily beat as well. And also they talked about the Russia impact here with that situation, it's estimated to be one percent to unit case volume. Now, I've been watching shares in the early trade. Uh they were weighed down right after those earnings crossed, but then they they trimmed some of those losses and in the early trade they were down about four tens of a percent at last check. Futures this morning are also moving lower, and Bloomberg Surveillance

is straight ahead for Nathan Hagar. I'm Karen Moscow and this is Bloomberg