Bloomberg Daybreak: April 5, 2022 - Hour 1 (Radio)

The Senate will vote on confirming Supreme Court nominee Jackson. I'm Michael Barr. More ahead, I'm John Stashtoward sports, A big second have come back for Kansas to beat North Carolina at a thrilling national championship game. That's all straight Ahead on Bloomberg day Break on Bloomberg Element Trio, New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nine Team and around the world Old on Bloomberg Radio dot

Com and via The Bloomberg Business or Good Morning. I'm Nathan Hagar and I'm Karen. Moscow and US DOT Index futures are little change 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, again,

futures are little change. The decks in Germany is up to tenths of a percent, pen Your treasury down thirteen thirty seconds, yield two point four or four percent, and the yield on the two year two point four five percent. NIMEX screwed oil is up one point six percent, up a dollar sixty at a hundred four dollars eighty eight cents of barrel. Comex Schoold is little changed at nineteen

thirty five fifty ounce. The euro is at one point oh nine six nine against the dollar, the end at one two point eight two, and Bitcoin at forty six thousand, six hundred fifty dollars. Nathan, Karen, let's begin with the war. Lots of developments to get to this morning. Russia is shifting troops and tactics in Ukraine and the move could point to a change engine Moscow's end goal, Bloomberg said. Baxter has the story National security adviser Jake Sullivan saying,

I pull away from Kiev. Russia's repositioning its forces to concentrate its offensive operations in eastern and parts of southern Ukraine. And that's the area around Don Boss on the east, which is a scene of brutal fighting by Russian separatists and setting up a narrative for Putin to claim victory. This with President Joe Biden calling for Vladimir Putin to be brought to trial. This guy is brutal and what's

happening is outrageous. And the Pentagon says it plans on sending ten of the latest Switchblade drones in San Francisco. I'm at Baxter Bloomberg daybreak. Al Right, thank you all. Videos of streets in the town of Buches strewn with corpses have sparked global outrage. They've also sparked vehement denials from Russia that it was responsible for the deaths. Daniel Froude as former Ambassador to Poland and former Assistant Secretary

of State for Europe. What we know is that the parent massacre of civilians at Buca fits the pattern of Russia's conduct of this war from the beginning, and former Ambassador to Poland Daniel Fried spoke on Bloomberg's sound on Catch the program weekdays at five pm Eastern on Bloomberg Radio. Ukraine's President Vladimir Zelenski will address the United Nations Security Council today, Karen. That speech is scheduled to begin at

ten am New York time. There is also word that EU officials will travel to Ukraine to meet with Zelenski. European Commissioned President Ursula vonder Lyne and High Representative Joseph Barrell are planning a trip to Kiev later this week. Meantime, Nathan, the U S is stepping up actions targeting Moscow. The Treasury is now stopping Russia from its paying debt through US accounts, and we get the story live with Bloomberg's John Tucker John Karen. Dollar debt payments from Russian government

accounts at US banks are now halted. This forces Russia to choose among three pretty unappealing options, training dollar reserves held in its own country, spending new revenue, or going into default. Blabbry. Putin's government has so far as stayed current on its foreign debt obligations. Now the latest US move will intensify scrutiny on payments that are due May twenty seven for interest ode on sovereign dollar and euronoes.

Russia's central Bank says its foreign currency and gold reserves have plunged to the lowest level since last August Live in New York on John Tucker Bloomberg Daybreak. All Right, John, thanks in. Europe is also taking action against Russia, with new sanctions on the way. And that's according to European Commission Vice President Valdis Dombrowski's European Commission is already preparing the next sanctions package and hope of the member states will be able to uh decide on ambitious next steps

of regarding the sanctions. So we must step up pressure against Russia and we must step up out support for Ukrain. European Commission Vice President Valdis Dombrowski says discussions on sanctions will also include the energy sector. We'll turn in the markets now. Nathan Oil continues to rise on where the US and Europe may impose energy sanctions on Russia. This follows a four percent gain for crude yesterday. Checking prices this morning, nine mix Screwed oil up one point seven

percent at a hundred five dollars of barrel. Brent is up one and a half percent at a hundred and nine dollars fifteen cents of barrel, and sticking with commodities, Karen JP Morgan Chase is reviewing its business with some clients after last month's nickel short squeeze. The bank is one of the largest players in global commodity markets and the biggest in medals by far. Twitter front and center

again this morning. Nathan, after taking a stake in the company, Elon Musk may be looking for changes at the social media company. We get the latest life from Bloomberg's Randita Young. Good Morning, Rendia, Good morning Karen. Elon Musk is asking users in a Twitter poll if they want an edit button. There's just under sixteen hours left on the poll, and out of two point four million votes, seventy four percent

appear to support the edit button. Twitter's new CEO is urging people to vote carefully, saying the consequences of the poll will be important. Twitter's official account posted a message on April one saying they're working on an edit button. No word on whether it was an April Fool's joke. But it collected more than one point three million likes live in New York. I'm gonned a young Bloomberg day break. All right, we need to thanks Kathy. What is weighing

in on Elon Musk's new Twitter stake. The Arc Investment CEO says Musk's investment may open the door to a management shake up at the company. I do think for the moment it's passive, but he's certainly making a statement, and it's a statement about censorship. He he doesn't agree with censorship. Uh for as smooth functioning democracy as he has tweeted, I believe uh. And so I think he's sending a strong signal to the new ceo our investments.

Kathy Would made the comments in an interview on Bloomberg Business Week. You could catch that program weekdays at two pm Eastern on Bloomberg Radio and hear more of that interview with Kathy Would coming up later in this program and another programming note today, Nathan, please join us this morning for an exclusive interview with Esther Joey Orge, the Kansas City Fed President, talk central bank policy and interest rates at Bloomberg Radio and Television. Coming up at ten am.

Wall Street time again. Futures this morning are little change and the ten year treasuries down twelve thirty seconds two point four or four percent. Straight to head your latest local headlines plus the check of sports, and this is Bloomberg freak. Karen, thank you. It's five oh seven on Wall Street where forty five degrees in Central Park and dealing with a couple problems on the New Jersey Turnpike southbound by exit Tennis where they are Actually we'll get

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. New York is launching a digital billboard campaign to lure Floridians unhappy with their states Don't Say Gay law to the city. Mayor Eric Adams announced the billboards supporting LGBTQ visibility will be displayed in five major markets in Florida for eight weeks.

This political a showmanship of attempting to demonize that particular group or community is unacceptable, and we are going to loudly show our support. Is say to those who are living in Florida, list if we want you here in New York Mayor Adams went on to say New York is the city of Stonewall. The announcement came one week after Florida govern Around Descenter signed a build into law that forbids instruction on sexual orientation and gender identity in

kindergarten through third grade. A sixty one year old New York City woman was shot and killed by a stray bullet in front of a grocery store in the Bronx last night. Police say the innocent bystander was walking when she was struck in the back by the stray bullet. NYPD Commissioner Teaching Seoul another act of senseless violence on the streets of this city, Mindless shootings with no thought

or fear of the consequences. Commissioner Sewell says they will spare no resources to bring those responses both of the violence to justice. Republican Senators Lisa Murkowski and Mitt Romney said they would vote to confirm Judge Katangi Brown Jackson to a seat on the U. S. Supreme Court last week. Republican Senator Susan Collins of Maine also said she would

support Jackson. Yesterday, the Senate Judiciary Committee split eleven eleven on sending Jackson's nomination to the floor that required a separate vote of the full Senate. Senate Majority Leader Chuck Schumer on the Judiciary Committee vote, Sadly, despite the judge's qualifications, not a single Republican on the committee voted to report

her out of committee. Senate Minority Leader Mitch McConnell, Judge Jackson has gone beyond the judicial role to rewrite immigration policy from the bench and make it even more liberal. Senator McConnell. Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than twenty seven hundred journalist, analyist and more than a twenty countries on Michael bar this is Bloomberg. Nathan, alright, Michael, thanks turn up on Wall Street Times for the Blitzenberg

Sports up taking morning. John Stashown, Good morning, Nathan. You couldn't ask for a better National Championship game with zeros on the cloth. The ball was in the air and you didn't know whether Kansas did one or North Carolina and sent the game to over time. The shot fell well short of The Jayhawks won seventy two sixty nine in New Orleans to win the fourth n c A A title in school history, the second for Bill self,

who thought he was gonna win two years ago. His team was ranked number one when the tournament was canceled to the covert. I always thought the team was better, uh more equipped to do well in the n c Double A tournament. Uh after the ladies kids have played the last month. I think this team can play with

any team. With Kansas served could on the cool Bogy was the most outstanding player, but the big shots down to stretch, the three corner by Remy Martin at snapped the tie, and the two hoops from the lane by the center David McCormack, Kansas had trailed by sixteen. By fifteen and a half time. It's the biggest comeback in championship game history. North Carolina, done in by shooting, only made only five of twenty three nat so's used to tonight and Nets headed for that play in tournament Kevin

durand amtst. Their season was derailed by his knee injury, during which time they went five and seventeen. Nets made the trade of Philadelphia to get Ben Simmons got the injured back as still yet to play for them. The Nets say Simmons won't be able to go in that play in turney. Tiger Woods, on the other hand, played nine practice holes at Augusta National, playing with Justin Thomas and Fred Couples, who said Tiger's play was phenomenal. Nothing definite.

Tiger has called it a game time decision, But Tweeny, the indications are the Tiger fourteen months after that car accident, going to t it up of the Masters to Thursday. John dash Allard Bloomberg's part, of course, saw the coverage of the Masters as always right here on Bloomberg Radio. Thank you for that, John. Right now, SMP futures are little changed, So are down futures down just three points.

Nastack features are higher by one point. The action is in the bond market, with ten year treasuries down thirteen thirty seconds. The yield two point four or four percent. That's the yield on the two year as well. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather mostly cloudy today, chance for an isolated afternoon shower with highs in the mid fifties. Fact we're gonna stay in the mid fifties through the next three days. With rain throughout

right now 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 camera in Moscow. European stocks are rising this morning. US stock index futures are a little changed. Oil gaining as investors evaluate the prospect of tougher sanctions against Russia. Bonds are retreating and then

deepening concern about inflation and the policy response. We checked the markets every fifteen minutes throughout the trading day on Bloomberg Guess and Key futures. Again little change the morning, along with dowin Nasdack futures. The decks in Germany is up about two tenths of upper sent ten. Your Treasury down twelve thirty seconds, yet two point four or four percent. The yield on the two year two point four or

four percent as well. Nine mex scrude oil is up one point eight percent of a dollar eighty five and a hundred five dollars fourteen cents of barrel. Comic Schools isn't ell change at nineteen thirty two eighty announced the euro one point o nine eight two against the dollar, The British found one point three one three nine, the UN at one twenty two point seven two, and Bitcoin this morning is higher, up seven tenths percent at forty

six thous and six thirty dollars. That's a Bloomberg business flash. Now here's Michael Barrow with Moura. What's going on around the world, muncle, Good morning, Good morning, Karen. Ukrainian President voladimir's Lenski will address the United Nations Security Council today. The US said it might impose further sanctions this week on Moscow as the world's attention focused on Ukraine, saying that Russian troops executed civilians in Bucha and other towns.

Russia denies its forces killed civilians. Three Republican senators joined Democrats to force Judge Jackson Supreme Court nomination out of the Senate Judiciary Committee after a vote there ended in a time. Kansas has won the NZ Double, a men's basketball title by engineering the greatest second half comeback in finals history. The Jayhawks turned a sixteen points second half deficit into a seventy two sixty nine victory over North Carolina in the NHL the Bruins one and overtime against

the Blue Jackets three. To Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven under journalist and analysts in more than one twenty countries. I'm Michael Barr and this is Bloomberg. Nathan. Yeah, turn around like that is why they call it March madness. Thank you, Michael. It is five nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Day Break. Let's turn down

to the latest on the war in Ukraine. Were joined once again by Bloomberg News Executive editor for International Government,

Rosalind Mathison. Ros Good morning. We've had some pretty significant developments in just the last a few minutes, including this word from the European Commission that President Ursula vonder Lyine and High Commissioner Joseph Barrell are planning to visit Kiv in the next couple of days here and of course this comes after the horrific images we've seen of apparent mass civilian deaths near Ukraine, in the city of Bucha and other places. What kind of signal does this send

that the European Commission. These high ranking leaders are now going into what is essentially a war zone. Well, certainly, as you say, it would probably be the highest ranking officials to go into Ukraine since the war broke out, and certainly to sit down in person with the Ukrainian

president in the capital. And it comes amid real pressure on Europe to do more, um than it's already doing to support Ukraine in the face of what appears to be on the Ukrainian side, war crimes committed by Russian troops in the north, and a lot of pressure on Europe to agree to further moves on sanctions, particularly embargoes on the energy side. So the visit is really symbolic in some ways, is designed just to show you it

really does stand with Ukraine in this moment. You wouldn't imagine that she is in a position to promise him particular things on the ground, although we do know that NATO nations are considering further weapons packages to go in and there's a lot of discussion going on this week

in Brussels about possible embargoes on energy. Is probably too soon for her to be able to promise him anything, but at the least a symbolic effort to show that Europe is still they're supporting Ukraine in this moment, and you have to thank rise that as President Zelinski prepares to address the U N Security Council later this morning, that there's going to be even more pressure brought to bear, not just on the European Union, but on the US to do more on the sanctions front and on the

military aid front as well. Well. That's right because aside from action on sanctions, Ukraine is also called for a full ban on Russian ship stocking at ports in Europe and any goods from Russia being unloaded at all, and some in the European Unit calling even for any Russian citizen and to not be able to get an EU visa,

which is unlikely of course to happen. But aside from those things, Ukraine is also still pushing for military equipment to come in beyond the missiles that have that have gone so far, particularly fighter jets UM and that's something that NATO including the US has balked out UM sending fighter jets in to Ukraine. Are also agreeing, particularly to

a no fly zone over Ukraine. So you can imagine that the President will raise those points again in his U N. Security Council addressed today, particularly anchored around the events of the past few days in those northern towns and calling on Europe in the US and saying you cannot just sit there and watch these things unfold in these towns, because of course, what happened in one town is very likely to have happened in others, So we can expect more distressing reports to come out in the

coming days. So you're probably getting extremely heartfelt appeal by the Ukrainian President to the U N. Security Council later today. And we heard from President Biden yesterday as well as National Security Advisor Jake Sullivan hinting at eva more sanctions against Russia, including some targeted at the energy sector, beyond a full band on oil and gas purchases from Russia.

What could energy related sanctions against Russia look like at this point, Well, it's really those big three things, which is gas, oil, and coal, um and Europe's really on the hook for all three of those. The US has moved further than Europe so far on the energy front, and it's been the big economies of in Europe, particularly Germany, which is so reliant on Russian gas, saying, if we do this all of a sudden, it's going to be too much of a shock for our economy and therefore

an economic shock for Europe as well. So those three things, can we get movement at least on one of them? Potentially coal for example, would they be willing to discuss that, maybe coal and oil and you leave gas for later, but something you would expect that they have to sort of signal that they're going to move faster to wean themselves off Russian gas than they've said, which is really the end of the year. So possibly actually non cole in particular, we should look for that, but gas is

really the big one, and that's the hardest one. Of course, very quickly rise only about thirty seconds left here. But have we seen any further movement in the latest negotiations by video between Russia and Ukraine. Well, we only know that Russia says that talks ongoing. There's been no clarity about video talks yesterday, if they were even held, and if anything was resolved, certainly talks will probably continue towards the cease fire. But you imagine what we're seeing in

the north of Ukraine. Makes it even more complicated to get to a broader peace deal because the Ukrainian president isn't a position where he cannot be seen to be giving any territory away, So complicating that that broader conversation put down the track. Yeah, certainly feels that way, as always, Rose, Thank you for keeping us up to speed. Rosalind Matheson,

our executive editor for International Government at Bloomberg News. Right now, SMP futures are down two points, Staff futures down sixteen, Nasdaq futures down seven, so a little change as far as equity futures go. The tenure treasury though, down fourteen thirty seconds. The yield two point four four percent. Yield on the two you're now just a touch higher than the ten year at two point four five Bloomberg eleven three oh Weather mostly cloudy today, an isolated afternoon shower

possible with highstear fifty five degrees. The rain will end by tomorrow afternoon with high stear fifty five. Rain returns Thursday. Right now forty five in Central Park. Broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg e Living Freedom to Washington, d C, Bloomberg one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixteen to the country Sirius XM total one nine ten 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 Karin Moscow. We're just about four hours away from the open of US trading. Let's get you have to day on the news. You need to know went this hour. Ukrainian President Vladimir Zlenski will address the UN Security Council this morning. As remarks come as the world reacts to graphic images of civilian deaths in the city of Bootsha.

Russia denies responsibility for the deaths. Meantime, President Biden is calling on President Vladimir Putin a war criminal. We have to gather of inpromation. We have to continue to provide Ukraine with the weapons they need to continue to fight, and we have together all the detail so just to be a actually have a war crime trial. President Biden is also promising more sanctions and National Security Advisor Jake Sullivan says they'll be announced this week and will include

economic pressure on Russia. The U. S. Treasury is also ramping up pressure on Moscow. Karen Now, it's stomping Russia from paying debt through its US accounts. It's got that storyline from Bloomberg's John Tucker, John Nathan. The move will force Russia to drain its dollar reserves, spend new revenue, or go into default. It further ratchetes up pressure on Vladimir Putina and his invasion of Ukraine. The latest oval intensify scrutiny on payments that are due May twenty seven

for interest to olde on sovereign dollar and euronoes. Russia's foreign currency and gold reserves have plunged to the lowest level since last August, Live in New York. I'm John Tucker, Bloomberg Daybreak. All right, John, thank you about turning to the markets. Now. Oil continues to rise on word the U S and Europe may impose energy sanctions on Russia. That follows a four percent game for crewe to yesterday.

Checking prices right now, nimex screwed oil is up one and a half percent of but all our fifty five and a hundred four dollars eighty three cents of barrel brent is at one point four percent and a hundred nine dollars seven cents. And another commodity related news this morning, Karen JP Morgan Chase is reviewing its business with some clients after last month's Nichols short squeeze. The bank is one of the largest players in global commodity markets and

the biggest in metals by far well. Twitter is front and center again this morning. Nathan after taking a stake in the company, Elon Musk may be looking for changes at the social media company. They get the latest line from Bloomberg's right, I need a young good morning, Ready to good morning, Karen. Elon Musk is asking users in a Twitter poll if they want an edit button now. There's about fifteen hours left on the pole and out of almost two point five million votes, seventy three percent

appear to support the edit button. Twitter's new CEO says the consequences of the poll will be important and urges people to vote carefully. Live in New York. I'm gonna need a young Bloomberg daybreak, right, we need to thank you. In futures this morning, they're little change to lower the ten year treasury down thirteen thirty seconds here two point four or four percent. Try to head your latest local

headlines plus a check of sports. This is Bloomberg. Okay, Karen. Thanks, It's five thirty three on Wall Street, forty six degrees in Central Park. We've got an accent on the southbound FDR drive at a hundred six Details coming up in traffic First. Michael Barr with more on what's going on in New York and around the world. Michael, thank you very much. Nathan. New York City is launching a digital billboard campaign to lure people in Florida who are unhappy

with their states. Don't say gay law to the Big Apple. Mayor Eric Adams says the billboards supporting lgbt Q visibility will be displayed in five major markets in Florida for eight weeks. We are in unitsies with you, and you're right to have self identification. You're right to be lived the lifestyle and live the lives that you choose to

live without any form of harassment. Last week, Florida Governor Around the Santis signed a bill into law that forbids instruction on sexual orientation and gender identity in kindergarten through third grade. LGBTQ groups have condemned the legislation, saying it

will marginalize lgbt Q children and families. As Democrats move towards confirming Judge Katangi Brown Jackson to the U. S Supreme Court by the end of the week, three Republican senators have announced they planned to join Democrats to confirm

her to the nation's highest court. Susan Collins, Mitt Romney, and Lisa Murkowski joined Democrats to force Judge Jackson's nomination and out of the Senate Judiciary Committee after a vote there yesterday ended in a time The House panel investigating the capital attack is backing away from a bid for the testimony of the former Vice president. Select Committee chair Benny Thompson says the panel will not subpoena Mike Pence for his testimony. There's no effort on the part of

the committee uh to get him to come in. Pence's chief of staff, his national security advisor, and his Chief council of all sat for lengthy interviews before the panel. Senate bargainers have reached an agreement on a slim down ten billion dollar package for countering COVID nineteen with treatments, vaccines, and other steps, but the compromise ended up dropping all

funding to help nations abroad combat the pandemic. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analyst in more than a hundred twenty countries. On Michael Barr This is Bloomberg Naked Okay, Michael, Thanks five On Wall Street Time for the Bloomberg Sports Update with John stash Our. Thanks Nathan. Biggest Championship game come back at n C

Double a tournament history in New Orleans. Kansas and North Carolina were tied at twenty two and then Carolina had a sixteen nothing wrong led by fifteen and a half time. Midway to the second half, that lead was gone. Jayops actually went up by six at one point. Game was tied with three minutes left, tiebreaking three pointer by Remy Martin. Carolina reclaimed the lead. David McCormack had a shot to put Kansas back on top, and then he hit another to put him ahead by three. Carolina had a chance

after a Kansas turnover. Caleb Loves Game signed three fell short. That Jayhawks one thriller seventy two sixty nine fourth title in school history. They also won a nineteen fifty eight and two thousands and eight. Bill self coached that team, also to a comeback victory. Before the the half was over, I said, which would be harder? Being down nine with two minutes left or being down fifteen? Works winner? And they all sit being down nine with two minutes left,

I said, Sol, we can do this. And because that's the way it was in the way, Carolina denied a seventh title, feeling heartbreak much like six years ago, and they lost to Villanova. At the Carolina was plus twenty rebounding, but love R. J. Davis and Armando Bocock together shot thirteen fifty Pool and Samfa Yankees for the Phillies, Aaron Judge at a three one homer. He's had four four team this spring with four homers. Dom Smith the three on shot. The Mets and Astro had finished at a

tie the grape Fruit Lea against Today. The Mets then had to Washington and Yankees head home opening day weather permitting. Thursday of English was at the Devil's Tonight, Nets host Houston.

John Stashoward Bloomberg Sports Anything Okay, John Thanks thirty seven on Wall Street time for the Tri State Business Report, Heres, Bloomberg said Corey Manhattan apartment sales continued their hot streak in the first quarter, with rising demand clashing up against an inventory crunch to stoke bidding wars in a growing share of deals. Purchases completed above the asking price made up nine point three percent of all transactions, the highest

worship in four years. Residents of high rise luxury apartments might have to take out their own trash if the dorman and staff for three thousand New York buildings go on strike. The union contract for more than thirty thousand workers from buildings owned by companies like Mornado Realty Trust and related companies runs out April. New Jersey's first company to take bets on competitive video games begins full operations

this week after completing a trial run. London based E Sports Entertainment Group was approved for operations after a period of soft play while regulators evaluated its product. Begrew Bloomberg Try State Business Report. I'm in Corey on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world.

I'm Steve Podask and on ten ten Wins in New York, We're talking about Holman An apartment buyers are still dealing with bidding wards um Corney's Donahoe on k l D in Dallas. Exxon is signaling its highest profits since two thousand eight. On upending commodity markets. I made gory on w T A M in Cleveland. I'm reporting Kroger plans

to build a grocery delivery hub in Oakwood. And those are some of the stories that are hundred Bloomberg journalists and analysts are working on this morning around the world. We're coming up to five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. The U. S. Government has long offered enticements to get Americans to save for retirement. Why, some might ask, should it be involved

at all? There are two answers. First, people turn out to be pretty bad at thinking about the distant future. It seems our brains aren't wired for it. Second, of the financial choices involved in retirement are uniquely complicate. Aided Encouraging people to save more and helping them do it wisely would make a lot of Americans better off. But in recent decades, the U S system of retirement savings, such as it is, has shifted sharply toward an ethos

of personal responsibility. As a result, nearly half of workers nearing retirement age lack retirement savings. The government should be doing more to steer Americans toward better choices, both for their own financial security and for the public good. The sedatorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or O P I n go on the Bloomberg terminal. This has been Bloomberg opinion. You can hear Bloomberg opinion

editorials every weekday at this time. Terminal customers can read more at O P I n go. Looking ahead to the market, open futures are moving just a little bit lower, with SMP futures down down sick points now futures down forty six. Nastack futures down eighteen that's a drop across the board of about a ten percent le bond sell off continues with the ten year Treasury down fourteen thirty seconds, the yield two point four or four percent yield on

the two year two point four five. You're listening to Bloomberg Day Bloomberg eleven three oh Weather mostly cloudy today in isolated afternoon shower possible with highs in the mid fifties. The rain will end by tomorrow afternoon in your fifty five once again and mid fifties with brain returning Thursday right now forty six in Central Park. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business at and at Bloomberg Quick Take. He's

a Bloomberg Business Flash and I'm Cameron. Moscow and European stocks are rising this morning. US Dock Index futures half turned the lower, while oil is gaining as investors evaluate the prospect of comfort sanctions against Russia, bonds retreating amid deefending,

concern about inflation and the policy response. You checked the markets every fifteen minutes throughout the trading day on bloomberg S and P futures down eat points down, futures down fifty eight, NASDA futures down twenty seven, the tenure treasury down thirteen thirty seconds, YEL two point four or four percent, and the yield in a two year or two point

four or five percent. And nim Ex screwed oil is a one and a half percent or at dollar fifty three at a hundred four dollars eighty cents of barrel. That's a Bloomberg busins flom. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. Ukrainian President boldmir Zelinski prepares to talk to the UN Security Council today and mid outrage

overgrowing evidence of Moscow soldiers deliberately killed civilians. Katanji Brown Jackson is set to become the first black woman on the Supreme Court. The Senate voted fifty seven to discharge Jackson's nomination from the Senate Judiciary Committee, a procedural step made necessary after the panel deadlocked on its vote. Kansas has won the n c Double A men's basketball title by engineering the greatest second half comeback in finals history.

The Jayhawks turned a sixteen points second half deficit in to a six nine victory over North Carolina in the NHL, the Bruins one in ot against the Blue Jackets three to Global News twenty four hours a day on here and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analyst in more than a twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan. Okay, Michael,

thank you. We're coming up to five forty nine on Wall Street Now live from the Bloomberg Interacted Broker Studios. This is Bloomberg Daybreak. And Brian Levitt is with us this morning, global market strategist at Investco. As we watched this slight turn to the down side in equities this morning, particularly in Europe now with both the DACKX and CAC turning lower in futures, appointing to losses this morning. Of course, the bond sell off continues. Of course, what do you

think is driving the sentiment? Is it just Ukraine? Is it the Fed? What's your view? I think it's all of it. I mean, you know, we're we're seeing oil prices back up again. We know that inflation continues to remain an issue, and we know that there's going to be meaningful policy tightening over the next year, so you know, the markets are still trying to navigate all this. Ultimately, I think it's still is a better backdrop for stocks than it is for bonds. Uh, stocks tend to be

a better inflation hedge. And when you're buying stocks, you're buying nominal growth, and so a nominal growth continues to be strong in the United States. So I would expect equities to continue to move higher. But we're in the part of the cycle where it tends to be more volatile and returns tend to be more compressed than they are during better recovery or expansion parts of the cycle. When you say stocks are a better hedge against inflation right now, is that does that just point to the

whole idea of Tina. There is no alternative, Yeah, there's not. There's not a lot of alternatives. I mean, the olenges with bonds is that you know, inflation erodes any income that you can generate, and you know, for investors, they need to look to things right now because inflation is not going to peak for a bit. So if they need to look at things right now that can hedge against inflation. I wouldn't say there's not any other alternative,

and equities do quite well. Real Estate investment trusts are good hedge against inflation. Commodities tend to be a very good hedge against inflation. So it's not that there aren't any alternatives, it's that equities just are managing this better than bonds, as you would expect with inflation as elevated as it is. How much of an indicator do you put in the inverted yield curve when it comes to stock performance? I think we ignore it at our own perils.

So we know that when the twos tends spread inverts, it tends to be a harbinger of future economic lows. The time period between the inversion of the yield curve and a recession tends to be about eighteen months now. The challenge that investors are appling with right now is that while the twos tens is inverted, the three month tenure is actually quite wide. And that's because the Fed is behind the curve, and so we've got a lot

of policy tightening still to go. So I would tend to view the twos tens as a harba or a future economic woes, but focus more on the Fed and where the three month tenure is going to be. The reality is, though, if you look at the last eight decades, when the twos tens inverts, the median return of the SMP five hundred between the day that the twos tends inverts until the recession, the median return is So it's not a good timing tool for equity investors. But again,

I know it's the third time I'll say it. It's a harbinger, a future economic woes, not a timing tool for equity investors. Now, we've heard from a lot of analysts and uh folks like you say that the Fed he is behind the curve. Do you expect that the Central Bank is going to try to get ahead somewhat by being more aggressive on rate hikes, doing something like a fifty basis point move next month or even more like that in subsequent meetings. Yeah, I suspect they will.

I mean, the reality is that we've seen the two year price in a lot of tightening, and the Federal Reserve views the market. While it's been volatile, the broad indices have held up quite fine. Um emerging markets have held up quite fine. The dollar hasn't strengthened meaningfully. So for the Fed, it's a sign that they are able that the economy can handle this type of tightening. So we expect the Fed to to move towards the neutral rate somewhere around two two and a half percent UM.

You know, how they get there, whether it's twenty five or fifty remains to be seen. But the policy tightening is happening, and and they will ultimately get there, and they'll get there in a reasonably short period of time. So the way investors should view that is the risks to the cycle are elevated cycles and with inflation and policy tightening. But but this economy is still sound. In the end to this cycle is not imminent. What we'll need to see as inflationary pressures moderate, So the Fed

could perhaps back off their tightening cycle. But but it's going to be a challenge. Just about thirty seconds left here, Brian, what's your target for the SMP this year? I think the SMP is going to be higher from here um, but but not um. You know, it's not going to be a robust year clearly. I mean, we still have to navigate out of the whole that that we've started this year's but I think the SMP five hundred will be higher from here um and and and that this

this as this cycle continues. UM. But but again it's it's it's certainly going to be a challenging polical environment. As always, Brian, thanks for your insights. Really appreciate it. Brian Levitt, Global market strategist at invest Go with us this morning, Karen, Well, Nathan. We're coming up to five fifty four on Wall Street at this time for the Bloomberg Law Report, brought to you by American Arbitration Association.

Business dis views are Inevitable, Resolve Faster with the American Arbitration Association, the global leader and alternative dispute resolution for over ninety years. More at a d R dot org. Now, a legal story we're watching this morning brings us to the Supreme Court Judge Katangie Brown and Jackson is on the brink of making history as the first black woman

to sit on the High Court. Republican Senator's Lisa Murkowski and mid Romney joined Republican Senator Susan Collins and saying they'll vote for Jackson, but the Senate Judiciary Committee remains deadlocked eleven eleven down party lines on whether to send Jackson's nomination to the floor. It's the first time the committee has deadlocked in his Supreme Court nominee in three decades.

From More in the matter of Bloomberg's June Grassos speaks to Carl Toubias, a professor at the University of Richmond Law School. What did you hear from the senators each of them? Really, it seemed like we're reviewing what they had already talked about and asked her about during the hearing, and so there was virtually no new information that was trained admitted. I think there was pretty substantial agreement that the process is broken, but that wasn't why they were there.

So the Republicans continued to criticize her the way they had before. They all were relatively careful to say that she is a very nice person, that they liked her family, that she was well qualified, they didn't have questions about her qualifications, but that they disagreed with her on certain issues. A number of them criticized her as someone who would be an activist judge, though there isn't a lot of

evidence of that. On the Lower courts where she served, but also they were concerned that she might be soft on crime, though that's hard to discern from her record. The Democrats were saying she's extremely well qualified, in reminding everyone that this would be an historic appointment, and that she clerked at all three levels of the federal judiciary, including for Justice Bryor, and that was all ground that had already been plowed. For the first time in three decades,

the committee was deadlocked on a Supreme Court nomination. How significant is it that the Senate majority leader had to put the measure on the Senate floor, discharging Jackson's nomination from the committee. The history is a little checkered because if you remember back fairly recently, both Bork and Clarence Thomas. Clarence Thomas had a tie vote in Judiciary Committee. Bourke was voted down, but at that point the Democrats agreed. I think they had the majority to send them to

the floor anyway and have a vote. And that is another sign that this is all changed, because that's the relevant precedent, the most recent relevant president, So why not then go ahead and have the final vote? But I think because there's a tie and that custom has gone out the window. Apparently, it means that you must discharge the person from committee. It really is just a procedural hurdle,

easily resolved, but it just takes more time. You have to have another vote on the floor to discharge her from committee, and you need a majority. And that's University of Richmond law professor Carl Tobias speaking with Bloomberg, Shore

and Grasso. Catch more of that interview, plus analysis of the latest legal news by listening to the Bloomberg Law Show at en PM Eastern or subscribing to the Bloomberg Law Podcast, and attorney's can find exceptional legal research and business development tools at Bloomberg Law dot com, and sources tell Bloomberg the EU is planning to propose a mandatory phase out on coal imports from Russia in a direct response to apports at Russian forces committed a parent war

crimes in Ukraine. Not just crossing the Bloomberg top stories straight ahead, this is Bloomberg