Bloomberg Daybreak: April 29, 2022 - Hour 1 (Radio)

rules that are meant to close the gender gap. Plus the days of flavored cigarettes and cigars may be numbered. I'm Michael barr more a hand. I'm John Dash Hour and sports. The Jets and Giants with two top ten draft picks. Both went defense, then offfense the Yankees when

there's sixth in their own that's all trendy. Head on Bloomberg Daybreak on Bloomberg Eliving Free on New York, Bloomberg nine one, Washington d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius XAM one nine Team and around the World Old on Bloomberg Radio dot Com and via the Bloomberg Business App. Good Friday Morning, I'm Nathan Hagar and I'm Karen Moscow. US DOT Index futures

are lower this morning. We're coming up to five oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP futures down twenty three points this morning, Down futures downs eighty and NASDAD futures down one twelve. The ten year treasury down six thirty seconds. He had two point eight four percent, and they yield on the two year two point six

four percent, and NIMEX screwed oil is up eight ten percent. Nathan, Karen, we begin this morning with market reaction to the latest slew of earnings. Apple shares are down more than two percent in early trading, records setting earnings are being overshadowed by the iphonemaker's forecast. Apple predicts supply constraints will cost four to eight billion dollars in revenue during the current quarter. CEO Tim Cook addressed the issue on the company's conference call.

I want to acknowledge the challenges we're seeing from apply chain disruptions driven by both COVID and silicon shortages, to the devastation from the war in Ukraine. We are not immune to these challenges. Apple CEO Tim Cooke also announced ninety billion dollars in new stock buybacks. Well Shares of Amazon are down eight and a half percent this morning. Nathan the Eight Commerce Giants says it lost money during the first quarter and may see another loss in the

current period. Amazon's clown Services division a w S continue to impress, but a hiring and warehouse building binge during the pandemic weight on the bottom line. Punham Goyle covers Amazon for Bloomberg Intelligence. For a long time, a WS has been able to offset the weaker retail business, but it's not enough. With growth slowing on the top line across the online business ACROST, the rising just too fast

for them to herb those higher costs. Bloomberg Intelligence analysts Punham Goyle says, for the first time ever, US on recording back to back quarters of less than ten percent revenue growth. Let's check out some other stocks on the move this morning. Karen shares of Inteller down three percent. The chipmaker gave disappointing sales and profit forecasts, indicating weaker demand, and robin Hood shares are down nearly eleven percent. The

financial upstart says first quarter revenue tumbled. We wrap up a busy week for earnings with big oil and focus. Nathan x on Mobile reports this morning a preview from Bloomberg's Tom Busby. After Russia's invasion of Ukraine sent crude prices surging over the past two months along with global demand, It's boom times right now for the nation's biggest oil producers, and because of that, x on Mobile is expected to post its biggest quarterly profit in more than a decade.

Investors will be looking for guidance on increased crewde production and possibly more shared by backs and higher dividends. I'm Tom Busby, Bloomberg Daybreak. All right, Tom, thank you. Earning so far have not turned around market sentiment. In fact, the SMP five enters the final trading day of AP on track for the worst month since the pandemic bear market. More from Bloomberg's Charlie Pellett. The SMP is showing a

month to day loss of five point four percent. By comparison, this month, Nasdaq is down nine and a half percent, while the Dow is down two point two percent. Volatility has been eight persistent feature in markets all year, with investors on edge over China's struggle to suppress COVID, Russia's war in Ukraine, and warries that central bank tightening may tip the US economy into a recession. In New York, Charlie Pellett Bloomberg Daybreak, Right, turnly, thank you Well. In Asia,

it's a different story for stocks today. Chinese technology shares jumped after new policy promises from the country's top leaders to bolster the economy. And Marcus. Let's get the recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, Good

morning Karen. The MCI Asia Pacific Index rose for a third time this week, with ten Cent and Ali Barbara among the biggest gain is the Hank Sang Take Index, sort more than ten percent and rebounding from earlier losses as the country bound to support healthy growth of platform companies.

Shortly before the measures were unveiled, Chinese tex Stalks reversed earlier losses, has tried has speculated about a possible relaxation of the yearlong regulatory clampdown, and China's You unstrengthened a little during the day's trade, but is poised for a record monthly drop as the economy suffers from lockdowns resulting

from the nation's COVID zero policy. In Sydney, Juliette Sally Bloomberg Daybreak, Juliet thanks for finding out more details this morning on how Elon Musk is financing his Twitter takeover. Let's get the latest live from Bloomberg Runita Young, Good morning, Granita, Good morning. Nathan wall Street suspected Elon Musk would have to sell some stock to cover the twenty one billion

dollar equity portion of his deal to buy Twitter. Now, a filing shows Musk offloaded about four billion dollars worth of Tesla stock. Shortly after those filings were made public, Musk tweeted that no further Tesla cells were planned. Meantime, Bloomberg sources say before the deal was announced, Musk floated the idea of cutting jobs at costs at Twitter. On calls with bankers. Must also discussed ideas to monetize the platform to boost cash flow, including a potential subscription service

to drive recurring revenue. Live in New York, I'm goned a Young Bloomberg Daybreak. All right, we need it, thank you, But let's shift years now and get to the latest on Ukraine. Russian missile struck Kiev overnight, but the battle for don Boss is still Russia's strategic focus. Meantime, here in the US, President Biden is asking Congress for thirty three billion dollars in aid to Ukraine, but the road to approval won't be easy. Bloomberg's said Bacheter has the story.

The Ukraine part has broad support across Congress, but at risks getting snarled in his ask for COVID funding and immigration. The Senate could vote on the emergency spending next week, but the House will be on recess, so Congress could finish by the week of May nine and send it to the President. But if Democrats insist on attaching long stalled funding for vaccinations and immigration costs, it could be delayed indefinitely. Eight. Biden did urge them a crash to

pass them together in San Francisco. I'm at Baxter Bloomberg Daybreak. All right, thanks, SMP futures down down twenty five point, staff futures down ninety five, nastack futures lower by a hundred twelve, The ten year treasury yield to eight four. Straight ahead your latest local headlines in the check of Sports. This is Bloomberg at five oh seven on Wall Street Ward forty two degrees in Central Park. They're still picking up some roadwork overnight on the northbound Merritt Parkway between

Norwalk and Westport. Just keep an eye on that. Michael Barr has more on what's going on in New York and around the world. Happy Friday, Michael, Happy Friday to you, Nathan. New York City has postponed one of the nation's most far reaching requirements for employers to tell job seekers what they can make. Such pay transparency laws aren't championed as giving applicants, particularly women and people of color, a better

shot at fair pay. The law was supposed to take effect in May, but the City Council voted yesterday to delay it for five months after your employers waved red flags. The law says employers with four or more workers must include a minimum and maximum salary in any job at New York State is setting aside more than thirty one

billion dollars in this year's budget for schools. Governor Kathy Oakeles has more than three hundred sixty million dollars in this fiscal year will help students and teachers and younkers bounce back from the pandemic. They have just signed a budget, supported a budget they had the highest investment and education in our state's history. Governor hokel says, every penny it is worth it. Funeral services are set for today for falling FDN wifire fighter Timothy Klein. Klein died Sunday while

fighting ablaze in Brooklyn. Services will take place for the thirty one year old in Bell Harbor. Eight other firefighters were hurt in that blaze. A twenty one year old man who had autism also died in the fire. In the Southwest, thousands of firefighters have continued to slow the advance of destructive wildfires, but high winds return today that sparked the spread of the blazes a week ago. More than a hundred sixty homes have been destroyed in one

rural county in northeast New Mexico. The FDA wants to ban menthol cigarettes and flavored cigars. FDA Commissioner Robert Callips says studies that show the minty taste and cooling effects of menthol and cigar flavors like strawberry and grape increase the appeal for adults and young smokers alike. I really want to emphasize this. It's not just UM we want to take away mental in cigarettes as we want to help people UM stop this uh um smoking which is

causing so much stealth and disability. FDA Commissioner Callips says menthol cigarettes account for more than a third of all cigarettes sales in the US. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven hundred journalists and analysts in more than a hundred twenty reeves. I'm Michael bar this is Bloomberg Nathing. Thank you, Michael. Coming up to five ten on ball Street time for the Bloomberg Sports Updated. Morn

John Sire, Good morning, Nathan. Second year in a row the NFL Draft again with Jacksonville. The Jacks took Georgia pass rush for Trayvon Walker that allowed Michigan's defensive end Aidan Hutchinson to stay home with Detroit. Houston took l s U quarterback Derek Stingley, and the Jets, picking fourth, took Cincinnati cornerback I'm odd Sauce Gardener. Not once in Gardner's college career did he allow the receiver he was

defending to score a touchdown. The Giants were next. They're pick announced not Fight Commissioner Roger Gadell, but by nineteen year old New Jersey residence Sam Prince, who has a heart and lung condition as part of them make a Wish program. With the fifth pick and it's fight to NFL Draft, the New York Football Giants select Cavon Tibodel Tibido Launch, projected to be the first pick of the draft. He should help a Giants pass rush that was virtually

non existing last season. They're offensive line also struggles. With two picks later, the Giants took Alabama tackle Evan Neil top ten, ended with another Jets pick, Ohio statewide out Garrett Wilson. So Zach Wilson will profasses to Garrett Wilson. Rounds two of the two and three of the draft. Tonight in Last Days White a home stand for the Yankees six games. They won them all ten five over Baltimore, three run over for Aaron Judge. Yanks were held by

five Oriel airs. That's one more than the Yankees have had all season. Yanks play tonight in Kansas City NBA Playoffs three Game six is all were serious. Clinton wins on the road, Philadelphia up by one at half time, Sixers one by thirty five in Toronto, Dallas one by two in Utah, and Phoenix one in New Orleans. The Son's Chris Paul took fourteen shots. He made all four teams.

John stash Llanto, al right, John, thank you. SFP futures sound twenty seven points down at down futures down a hundred eight nastack futures down a hundred twenty three points. We'll get more on the earnings disappointments from Apple and Amazon. Next will be speaking live with Gene Munster, co founder of Luke Venture's This is Bloomberg Bloomberg eleven three oh weather mostly sunny, breezy, low sixties. Today, will be in the low sixties and mainly sunny Tomorrow. Clouds increased Sunday,

so does the temperature. We'll get up to near seventy right now forty two in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quick Tape. He's a Bloomberg Business Flash and I'm Karen Moscow, US not Index futures lower this morning following earnings from Amazon and Apple, and we checked the markets every fifteen minutes throughout the

trading day on Bloomberg. Right now, S and P futures are down thirty points down, futures down one, and NASTAG futures down one. Four ten year treasury down nine thirty seconds two eight five percent. They yield on the two year two point six six for cent. And I'm ex screwed. Oil is up one and a quarter percent, up a dollar thirty one at a hundred six dollars sixty eight cents of barrel. That's a Bloomberg business flash. Now here's

Michael Barr with more on what's going on around the world. Michael, thank you very much. Karen, and Russia found it targets from practically one end of Ukraine to the other, including Kiev. The bombardment of the city took place while the head of the United Nations was visiting Ukraine's capitol. Round one of the NFL draft is in the books. The first five picks were all defensive players. The Jaguars took Trayvon Walker with the top pick. The Jets at number four.

Pick cornerback Ahmad Gardner. The Giants at five took another edge Russia Cavan Thibadeaux. In baseball, the Yankees beat the Orioles ten five. The Red Sox Nationals lost NHL. The Islanders beat the Capitol's five one, the Bruins one. Global news twenty four hours a day on air end on Bloomberg Quicktake power by more than twenty seven hundred journalists analysts in more than a hundred twenty countries. Michael bar this is Bloomberg. Nathan all right, Michael, thanks for coming

up to five nineteen on Wall Street. I from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and we are wrapping up a very busy week for tech earnings with souring sentiment. This morning. Shares of Apple are down about two and a half percent. The iPhone maker reported record sales in the latest quarter, but the outlook is what's causing concern. And Amazon is plunging by nearly nine percent, with spending maybe catching up on that e commerce giants profits.

Let's get more insights now. Gene Munster is with us this morning. Co founder of Loop Ventures. Gene it's good to speak with you this morning, and want to start with Apple because CEO Tim Cook was pretty explicit in the call after the record sales that the drag from the supply chain is a big concern for him. Is it a concern for you? It's not. I think it really hides the bigger picture here, which is the supply chain constraint topic has been part of the Apple story

for the past twenty years. Apple comes out with a new product, consumers have to wait two to four months to get the new products. What happened a year ago, in actually a year ago to the date AP one is notable because that was the first quarter that their CFO talked about more broader supply constraints. They had never mentioned that before. We had a one time mentioned in that quarter. Since that time, they've been averaging nine times

talking about these supply constraints. And the reason why I mentioned that is that each time they have proven not just over the last four quarters, but the last twenty years, that that consumers are willing to wait when Apple products aren't available. And so when we get we as investors in Apple kind of the broader investor in Apple community gets their heads wrapped around the vortex of what does it mean with these supply constraints the impact on the quarter.

This quarter it's a negative seven percent. I think what misses the point is that those sales just get pushed into subsequent quarters. And uh. The reason, the final piece that's most important, and this was a spectacular quarter, The piece that's most important around that and evidence that consumers are willing to wait is Apple just grew their business at nine percent. The street was looking for four percent.

That was in the face of a fifty three percent comp just a staggeringly difficult comp and they still grew off that along with shutting down Russia for a month and the slowing Macero and I think what that speaks to is that all of this handwringing around what's going on in the supply chain really misses the bigger point

that Apple has products that people want. To that point, though, Gene, are Apple consumers willing to wait if the products don't show big changes in upgrade I'm thinking about iPhone thirteen compared to iPhone twelve or even the iPad. The sales and been kind of sluggish on some of the newest lines. Well, I think that year and year. Consumers do wait and part of the reasons that we're just increasingly dependent upon these products. Um, and so I think, yes, people do

wait for him. And I think the results were impressive. They grew the US at eighteen percent this quarter and these were lights out good numbers. And so I would disagree. I think they're doing a great job of growing the products. So um, yeah, I think China grew at four percent. Tough comp there too. Let's turn to Amazon. The spend seems to be a focus for investors. Has the spending on personnel warehouses caught up with grove? It has? Well, that's the key. They have one point four million workers

and inflations hate them. That's the vortex at Amazon's facing, much more than Apple and other tech companys. And I think what you're seeing is slowing growth. Their retail business is down three percent this quarter. They had a difficult comp They were not able to power through that comp This is different than what happened to Apples. I mentioned Apple continue to grow uh nicely against the difficult comp

Amazon did not have that benefit. And so when you think about the expense question related to Amazon, you have to put it in the context of what's going on with their broader business, and so you have this dipping retail business. It's likely going to do that dip is likely going to accelerate in the June quarter, probably gonna be down six percent from down three percent in March. And then you have these rising costs, and so you have this mix and uh, an Apple's case have felt

like this actually was really a phenomenal quarter. In Amazon's case, I'm more concerned because they are a brominter for broader consumer spending. We're starting to see that slow and you throw on top of that that cost equation that you mentioned, Nathan, and I think you get to a point where this stock can be range bound here for the next three to six months. In our last thirty seconds here, Gene,

can Amazon web services make up the difference? Uh? The simple answer is no. It's web services are about twelve percent of total revenue, and at the end of the day, this is still a retail business. And so uh, Amazon needs to Essentially, what what has to happen is they

need to just spend this year resetting growth expectations. And I'll leave you with on a on a shining note, not only for Amazon, for Broader Tech two thousand twenty three is going to be a great year because I think that the comps are gonna get easier, and I expect these stocks to do well at that period. We'll put that on tape, see if it holds up. Gene Monster, Great, have you gone with us this morning? Gene Monster, co

founder of Loop Ventures. As we watch stocks fall to wrap up this trading month, SMP futures are down twenty five point, staff futures down ninety four, NASTACK futures leading the clients down a hundred twenty three points at ten your treasure yield two six. This is Bloomberg Bloomberg eleven three oh weather mostly sunny, breezy, low sixties today, will stay in the sunshine tomorrow with low sixties For Saturday.

Highs could hit seventy with increasing cloud Sunday. Right now forty two in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C. Bloomberg ninety nine one to Boston, Bloomberg what oh six one to San Francisco, Bloomberg sixty to the country. Sirius XM Chad A one nine team, and around the globe, the Bloomberg Business app and Bloomberg Radio dot com. This is Bloomberg Daybreak. It's five thirty

on Wall Street. Good morning. I'm Nathan Hager and I'm Parard Moscow. We're just about four hours away from the open of US trading. Let's get you up to date on the news you need to know at this hour. Apple shares down about two and a half percent in early trading despite posting record earnings. In a conference call yesterday, the company said it could lose up to eight billion dollars in the current quarter due to supply constraints, and shares of Amazon are lower as well, caring down nearly

nine percent. That company announced the lost money in the first quarter and could see another loss in this period. Bloomberg Intelligence senior e commerce and retail analysts Punum Goyle says it's due to rising costs. Aws continues let's pace, So that's great to hear on the online business, clearly in line with expectations. But the margin week you could

say that that's surprising, but it's really not. I mean, from everything that we've been seeing all year, the supply chain crunch is only getting worse, it's not getting better, so they are getting hit from higher costs across the board. Bloomberg intelligence analyst Punam Coyle says Amazon's cloud service a WS has always been able to offset higher retail costs

until now, well elsewhere. Nathan Shares of Intail down more than three percent after second quarter four US raised concerns and later today but your results from oil giants Exxon and Chevron. Let's turn to Twitter now, Karen, were are finding out more about how Elon Musk is financing his takeover, and let's get the latest live from Bloomberg. Need a young,

Good morning, Rnita, Good morning, Nathan. Of filing shows Elon Musk offloaded about four billion dollars worth of Tesla stock to cover the twenty one billion dollar equity portion of his deal to buy Twitter. After those filings were made public, he tweeted that no further Tesla sales were planned, Bloomberg sources say before the deal was announced, Musk floated the idea of cutting jobs and costs at Twitter, you know,

on calls with bankers. He also discussed ideas to monetize the platform to boost cash flow, including a potential subscription service to drive recurring revenue. Live in New York. I'm rened a young Bloomberg day Break, Nita, thank you. Overseas, stocks and China are rebounding. The Hanksang Tech Index searched eleven percent and Chinese equities rallied after the country announced economic stimulus plans and a commitment to curbing the spread

of Cove and Ukraine. Karen, Russian missiles poured over the capital key of overnight, and Secretary of State Antony B. Lincoln says Russia is continuing it's offensive in the Don Boss region. There is a ferocious battle taking place right now across hundreds of miles in eastern and southern Ukraine, and the Russians bring a lot of firepower to that. Secretary of State Antony Lincoln says the US and other

nations continue to arm Ukraine to defend those regions. And SMP futures are lower this morning, down thirty one points down, Features down a hundred twenty nastack futures down a hundred thirty nine. Straight ahead, your latest local headlines, plus a check of sports. This is Bloomberg, all right, Karen, thank you. It's five thirty three on Wall Street forty two degrees in Central Park and we've got an accident on the westbound belt Parkway nap Street. Details coming up in traffic.

Michael Barr has more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. New York City postpone enforcement of salary transparency until November after advocates and business leaders clashed on whether pay disclosure is the best way to close the persistent gender gap. The city Council, who voted for the delay also exempted companies from being charged a monetary fine for the first violation and limited lawsuits related to the pay information to

current employees. The approved amendments represent a partial win for businesses that had lobbied against the law, which was originally sent to take effect by May fifteen. Funeral services take place today for falling New York City fire fighter Timothy Kline, he died Sunday while battling ablaze in Brooklyn. Services for Klein, who was thirty one, take place today in Belle Harbor, a twenty one year old man also died in that blaze.

President Biden confirmed that there are ongoing discussions in his administration about reducing student loan debt, though not for proposed fifty dollars. White House Press Secretary Jen Psaki says, despite these talks, the President remains eager to sign anything that comes to his desk from Congress on this issue. Congress sends in the bill tomorrow, he could sign it, and he would sign it to to give ten thousand dollars a student that relief. We've also he has not hesitated.

President Biden's spokesperson says that the President has not ruled out the possibility of executive action to get the ball rolling. The FDA says it will be moving ahead with a proposed ban on menthol cigarettes and flavored cigars nationwide. FDA Commissioner Dr Robert Califf says it could save thousands of lives. An estimate show it meant that it menthol is no longer an option in combustible tobacco products, up to six thousand deaths would be avoided over the course of forty years.

Dr Califf says menthol cigarettes account for more than a third of all cigarettes sales in the US. Global News twenty four hours a day on air and on Bloomberg Quick Take powered by more than twenty seven hundred journalists and analysts in more than a hundred twenty countries. On Michael bar this is Bloomberg, Nathan, Thank you, Michael, five thirty five on Wall Street. John Stash I was here

at the Bloomberg Sports Update. All right, Nathan. The draft was in Las Vegas, but New York dominated the early going with four of the first ten picks. The Jets at four took Cincinnati cornerback Sauce Gardner came back at ten to select Ohio state wide out Garrett Wilson's to the Jets filled two definite needs, as do the Giants, taking Oregon. Pass rusher came on Thibodeau at five Alabama tackle Evan Neal two picks later. Giants g M. Joe

Shane then asked about how it all shook out. We went to these scenarios a million times than we had seven or eight cards, and we just kept switching them back and forth based on different scenarios. And this was a scenario we went over and if there were two tackles on the board in the pass rusher, we're gonna go pass rusher, knowing we can get a tackle at seven so we were were static when that that scenario came up. The first overall was Georgia Edge Russia, Trebon

walcome to Jacksonville. Only one quarterback taken, Kenny Pickett played college football in Pittsburgh. He'll stay there. Drafted by the Steelers there a long time TV Ben Roethlisberger just retired. Draft continues tonight rounds two and three, and Giants yesterday made official that they will not pick up the fifth year option on QV Daniel Jones that would have assured him twenty two million dollars in twenty three. Giants want to first see how Jones does and if he can

stay healthy this upcoming season. Yankees tonight bring their six game win streak and the best record in American League to Kansas City. Yanked the Orioles ten to five. Baltimore had five airs Aaron judge of the three on Homer Nolan Arronado caused the benches to empty and St. Louis Wednesday got hit with a one game suspension. NBA Playoffs top set Phoenix trailed by ten at the half, but one in New Orleans as Chris Paul made all fourteen of his shots, Sons win the series four two. Dallas

wonted series with Utah. Philadelphia did likewise with Toronto, John Stash Bloomberg's Right John, Thank you, It's seven on Wall Street Time Now for the Tri State Business Report. For that we turned to Bloomberg's ed Corey. Home sales in the Hampton's sagged in the first quarter, weighed down by

a lack of listings. There were six hundred and seventy one homes for sale in the area at the end of March, the fewest on record in the seventeen years that appraiser Miller Samuel and brokerage Douglas Eleman Real Estate have been tracking data. Inventory was down from the first quarter of twenty one. A seventeen room New York City mansion formerly owned by Italian designer Johnny Versaci is coming

on the market for seventy million dollars. Versaci started the Versace Fashion House in night bought the town House through seven and a half million dollars. In Connecticut's on track to become the fifth U S state with comprehensive consumer privacy legislation. Both chambers of the General Assembly have approved a bill. It would give people the right to opt out of the process against sale of their personal data and ask that it be deleted. That your Bloomberg trying

state business report. I'm Ed Corey. Thanks that It's five eight on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three D at affiliate radio stations around the world. I'm Steve potaskan k X in Los Angeles. We're talking about Netflix cutting jobs

after its disappointing subscriber growths. I'm John Donnetor telling k CDs listeners in San Francisco that Apple expects it and bruised by another round of COVID restrictions in China. Orni Donahoe on ktr H in Houston, oil heading for its fifth monthly game effort, another tumultuous period of trading. I'm Jeff Fullinger and on w io D in Miami. I'm reporting Frontier Airlines just cutting flights at some Florida airports because of congestion. I Made Cory on w w J

in Detroit. I'm reporting a buyer has emerged. You redeveloped the Buick City site in Flynn, and those are some of the stories our hundred Bloomberg journalists and analysts are working on this morning around the world. It's nine on Wall Street. The following is an editorial from Bloomberg Opinion. With Brazil's presidential election list and six months away, the

state of the economy is the country's biggest priority. Unfortunately, neither incumbent jay Or Bolsonaro nor his main rival, former President Louise and Nacio Lula de Silva, have shown signs they intend to prioritize the economic reforms the country needs to return to sustainable growth. Brazilians deserve better. With many voters still undecided, a third way candidate with a credible

economic record could conceivably seize the middle ground. After all, centrist parties have fared well in recent municipal elections, but so far moderates have failed to unite behind a single presidential standard bearer. Unless a viable alternative emergence soon, Brazilians will be left with a choice between two populists neither likely to make the changes needed to unlock Brazil's potential. That would be a shame. This editorial was written by

the Bloomberg Opinion editorial Board. I'm David Shipley. For more Bloomberg opinion, please go to Bloomberg dot com, Slash Opinion or opian go on the Bloomberg Terminal. This has been Bloomberg Opinion and you can hear Bloomberg opinion editorials every weekday. At this time, terminal customers can read more at O p I nd go SP futures down thirty points now Town futures down a hundred nineteen. Nasdaq futures lower by

a hundred forty points or one percent. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather mostly sunny, breezy, low sixties. To wrap up this week, it will be mainly sunny, low sixties. Tomorrow, clouds increase Sunday high near seventy right now forty two in Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com a Bloomberg Business apt and at Bloomberg Quicktape

is a Bloomberg Business Flash and I'm Karen Moscow. And stocks in Europe are rising as China's pledged to ramp up stimulus lifts Optimus Shimen. Strong earnings continue to roll in, while US stock index futures are lower following earnings from Amazon dot Com and Apple, with Amazon shares down about eight points seven percent this morning and Apple down two and a half percent. We checked the markets every fifteen

minutes throughout the trading day. On Bloomberg and NASDAC futures are lowered down a hundred to forty three points or one point one percent, with technology dragging. SMP futures down about thirty two points and DOWN futures down one d thirty one. The decks in Germany higher up nine tenths of a percent. Ten year Treasury down thirteen thirty seconds, yield two point eight seven percent. The yield on the

two year two point six eight percent. Nine X Screwed oil is up when at a third percent of a dollar forty one at a hundred six dollars seventy seven cents of barrel comics gold is up one point three percent or twenty four dollars ninety cents at nineteen sixteen twenty announced. The euro one point oh five seven two against the dollar, British bound one point two five six five. The yen is at one thirty point four five and bitcoin this morning and down one point eight percent at

thirty nine thousand, one hundred ft dollars. That's a Bloomberg business flashow here' smuckle bar with Moore on what's going on around the world. Michael Karen, thank you very much. Hukraine's leader has accused Russia of trying to humiliate the United Nations by reigning missiles on Kiev during a visit by Secretary General Antonio gu Terrace. One Russian target struck

a residential high rise and another building. Former Minneapolis police officer Derek Chauvin is appealing his conviction for murder George Floyd, arguing that jurors were intimidated by protests. Round one of the NFL draft is in the books. The first five picks were all defensive players. The Jaguars took Trayvon Walker with the top pick. The Jets at number four pick quarterback a mods Sauce Gardner. And with a nickname like Sauce, you know he's good. The Giants have five. It's like

another edge running Saucy Kavan Thibodeaux. Baseball Yankees beat the Orioles ten five. Red Sox Nationals lost NHL, the Islanders beat the Capital's five one bruins one Global news twenty four hours a day. I'm Michael are Uh and you can hear it on Quick Take and powered by more than seven hundred journalists analysts more than a hundred twenty countries and now here saw us himself. Thank you for that much. Appreciate it. It's five forty nine on Wall

Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Day Break. Let's take a look at these markets now, Jeffrey you is with us this morning. Senior strategists at b n Y Melon. Well, you know what they say about April, jeff the cruelest month, and it certainly looks that way, at least for US stocks. Do you see any signs for optimism for risk investors heading into May? Um? So, at this point it's balanced. I would say it's all

going to be quite defensive. And if you look at the how yields are performing, still the sets leaving the way fifty basis point of highs and really being priced in with the chances. More so, as long as as we still have uncertainty over the past time, I don't think the markets are going to be on the risk on note, and that's all top of you the other resties such a supply such as the war for example. Obviously, though we are seeing risk on at least in European

markets this morning on the promise of Chinese stimulus. Why isn't that necessarily playing out in the US market? Um, So, US is more of the closed than economy, and it's a trade to GDP ratio is much lower and compared to Europe, and the Europe will see a lot more

demand for cattle kids. For example. Of China ramps up investment, I'll just be a bit cautious on whatever China does, right, It's kind of a double edged sword, um, because if it's incremental investment, if I look at a Bloomberghum headline from this morning, um, it's along those lines that may not actually be sufficiency do much of the time being. But on the other hand, if it's full blown infrastructure investment, you know, for example, then you have the risk of

um exacerbating the current supply issues. So be careful what you wish for now. We're seeing obviously a damp and sentiment this morning on the earnings, particularly from Apple and Amazon. How much for their pressure do you think we could see on stocks as the broader earnings picture plays out in the weeks to come. Um, it's still going to be based on whatever is going to happen, you know, on the SAID side, I think that that's going to be the predominant driver. So I would pick focus on

on that. You know, stocks will react to overall financial conditions on the said and the dollar wants to some of those things that have more clarity than I think we will be able to see some better performance of at this point. Yet, let's wait for the Fed. Are you looking for further rises in treasury yields on the Feds moves? Um? So for now, I think we're going to be in a high range. But heading into the next decision now probably be up with news will be

a bit more contained and for the time being. But net nets, we still think that that the pressure is going to be to the upside, and we're seeing that in the dollar and the impact of dollar strength on stocks.

Where could that go? So the impact of the dollars stocks you know right now, sorry, the a dollar on on stocks there is twofold you know one it does reducing the overseas earnings, but not on the second part of it um it Actually it does prove in the U S purchasing power as well, so for those within put costs that exposed overseas, that helps margins. So it's a double edged source. But again, as I mentioned earlier, the overall senses, the US is a bit more of

a closed economy. It's not too exposed to international conditions and that means deaf X so compared to the Eurozone, to said, will be less worried about the currency coming out of the major or the major decision from the Fed. We're going to get the April jobs report. What's your expectation there and what kind of a driver could that be for FED policy going past May? Um So we don't have a curly on that yet, you know, heading

into the jobs report that net net. I do think it's also important to a focus I know where the earnings are, sorry, well, where where average ouity earnings go if that continues to rise, not just on absolute basis on the reddist basis abut placion levels of the Falk today for example, a cycle point four percent as long as the gap versus that is now against that's the inflation risk of is going to be strong, and the

risks and to growth will be strong. Of demand will be firm, and policy risk and will be to the upside, and that will impact the sentiment. Thanks for this, jeff great having go on with us this morning. Jeffrey, you senior strategist at b n Y Mellen Karen A right, Nathan, thank you, and it's five fifty three on Wall Street. Time Now for a legal story we're watching this morning.

It has brought to you by American Arbitration Association. Business dis utes are inevitable, resolve faster with the American Arbitration Association, the global leader in alternative disviewed resolution for over ninety years. More at a d R dot org. A year after the sudden collapse of Artigo sent shock waves through global finance, Manhattan federal prosecutors arrested and criminally charged the owner, Bill Long, and his former top lieutenant, and one of the highest

profile Wall Street prosecutions in years. Prosecutors said the two men had engaged in a criminal scheme to manipulate the markets and mislead banks, in a scheme they called staggering in his size and brazen in its execution for Moura Bloomberg's during Grosso speaks to James Park, a professor had u ce l A law school. This is being called one of the highest profile white collar prosecutions in recent memory.

Do you agree with that? And why I agree? Simply because of the size of the alleged market manipulation, something that I think the extent of which in my mind seemed unimaginable until it actually happened. And it's also a very ambitious case. In my view, market manipulation is very difficult to identify and define, and so the case in my view, is forging ahead in new areas and not only affect the individual defendants in the case, but it can also create law and expectations for the way that

trading happens on Wall Street. I get what his lying to the banks was about, but why is it illegal to buy a lot of stock, to buy it at different times of the day when what's illegal about that? It's a very high standard to meet you and I

think you've really hit the nail on the head. The standard for market manipulation, which was discussed in the criminal context about thirty years ago in a case of the Second Circuits decided called the Moharan case, basically says the sole purpose of the stock purchases has to be manipulation, that you are buying the stock prices solely to artificially inflate the stock price, and it's really a question of intent.

Low is the intent of Archegoshong and the other participants in the scheme was the sole intend to artificially inflate the stock price? And I think that's a very tough standard to meet, although I think it's very specific, and I think that the key thing the government has going for it maybe the sheer size of the transaction and what may be a complete lack of any connection to any economic fundamentals or you know, analysis that the stock

was under priced and so further investment was warranted. But it is going to be a challenging legal theory to win that trial, and also who knows what the second Circuit will do if the case goes up on appeal.

On the other hand, this is an area of law that has not been developed all that much, and sometimes court will adjust the law to some extent based upon a particularly egregious set of fact, and so I would not rule out the viability of this legal theory and as James Park, a professor at u c l A Law Schools, at the Bloomberg Student Garasso. Catch more of that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or downloading the show

at Bloomberg dot com slash podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b Law. Go s and P Futures down thirty two points this morning. Down Future is down at hundred thirty four NASDAG Futures down one dty nine ten. Your treasury down twelve thirty seconds, yield two point eight seven percent, and they yield on the two year two point six eight percent and nine

back Screwed oil is up one point three percent. Still my heead on Bloomberg day Break and check on the business headlines and all the news you need to start your day. And this is Bloomberg