Bloomberg Daybreak: June 1, 2022 - Hour 1 (Radio)

ramps up military support to Ukraine. New York Governor Holcill introduces new gun reform measures, plus the first funerals have again for the victims of the Texas school shooting. Gun I'm Michael blarn More ahelf. I'm trying Stash Sharon. Sports blowout wins at Alton Mets and Yankees Rangers in Lightning

play Game one at the Garden h tonight. That's all stread ahead on Bloomberg day Break on Bloomberg eleven three, on New York Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nineteen and around the world on Bloomberg Radio dot Com and via the Bluebird Business app Index

futures are mixed this morning. We're coming up to funt on one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day on bloomberg S and P futures up four points down, futures of A hundred fifteen, and Nastack futures lower down sixteen. Now the ten year treasury down five thirty seconds. They yield two point eight six percent, and they yield on the two year two point five seven percent, and the euro one

point seven eight against the dollar. Nathan Caring US stocks begin this month of June after coming off a month where the SNP five hundred is basically unchanged, but that does not explain the extreme volatility. During the month of May, the benchmark index surged more than eight percent after falling within points of a twenty pcent dropped from a record,

signifying a bear market. Peter Oppenheimer's chief Global equity strategistic Goldman sacks, if you look at history for markets, at least when you get pea inflation, you do tend to get a recovery in risk assets, and that's generally because it starts to alleviate pressures on on interest rates. By that stage, you've usually had markets ready pricing in an economic downturn. So at the point where people think that things are bad but getting less bad, you tend to

get a recovery. Goldman Sachs. Chief global equity strategist Peter Roppenheimer still says he expects markets to be very volatile over the next few months, hopping left sentiment this morning, Nathan has corporate earning shares a Salesforce up eight percent in early trading, the company raising its annual profit forecast, and we get more from Bloomberg's Dunk Christner. It signals demand for business software is holding up in the face

of macro economic instability. Salesforce said fiscal year earnings excluding some items, will be as much as four dollar seventy six cents. Analyst on average estimated annual profit of four dollar sixty eight cents. Salesforce is the leader in based customer management software now. During the pandemic, the company expanded its products for business productivity with the purchase of the messaging platform Slack at a price of twenty seven point

seven billion dollars. In New York, I'm Doug Christener Bloomberg Gay Break, Okay, Doug Thanks. Crude oil is also on the rise this morning right now trading at a hundred sixteen dollar seventeen cents a barrel on the Nmax. This comes ahead of an OPEC plus routine meeting tomorrow to discuss supply policy. Ed Morris's City Groups global head of commodity Research. He says triple digit oil should be a lot lower. We have to just look at the cost

structure of the industry. You have to look at where new production is coming and where would be coming even if we didn't have a hundred twenty three dollar red and I'd say it's more in the seventy dollar range than it is in the dwy dollar range, the City Groups said. Moore says demand for oil and refined products is falling as the economy starts bracing for a recession. Well, Nathan, Inflation still a major focus for market's in the top

political challenge for the White House. Now, Treasury Secretary Janet Yellen is admitting she got it wrong last year when she said inflation would only be temporary. There have been unanticipated and lord shocks to the economy that have boosted energy and food prices and um supplied bottle knicks that have affected our economy badly that I didn't at the time,

didn't fully understand, but we recognize that now. And an interview as CNN, Secretary Yellen said she's encouraged that core prices have started to come down, but she says she can't rule out future shocks. What Secretary Yellen was at the White House yesterday, Karen for a rare meeting between President Biden and FED chair j Powell. President used it to declare that he respects the Central banks independence while

shifting responsibility for taming decades high inflation. I'm not going to interfere with their critically important work fetal responsibilities one full employment to stable prices. This is President Biden's ward in person session with Chairman Palellson's taking office and the FED will also be in focus today. Nathan. It's set to start shrinking it's eight point nine trillion dollar balance sheet. The Central Bank also releases the Beige Book, and we

get more from Bloomberg's Michael McKee. The question is what will investors learn from the Beige Book that they don't already know. Are there hints in the anecdotal reports suggesting some goods or services are seeing prices level offer decline. Will there be any indications the labor market is loosening? Overall? The Beige Book is likely to assess the economy continues to expand at a moderate pace. That's the phrase the Fed usually uses. Consumers are still spending and manufacturers are

trying to keep up. The survey is one input into FED policy decisions, but the Central Bank has already suggested it's made up his mind to raise rates at the next two meetings. Michael McKee, Bloomberg Daybreak. All right, Mike, thanks now the latest developments on the war. President Biden says he will give Ukraine advanced rocket systems and other weaponry to help in its battle with Russia. Amy Morris

has details from our Bloomberg room in Washington. The President made the announcement in a New York Times article published last night. A senior US official hotels Bloomberg News. The package includes missiles that will allow Ukraine to strike locations as far as eighty kilometers away, and while world leaders have publicly called for such a move, one concern is whether Ukraine would use them to strike targets inside Russia that would risk expanding the war and pulling in NATO countries.

The White House plans to formally announce the new seven hundred million dollar security assistance package today in Washington. I'm Amy Morris, Bloomberg Daybreak, Right, Amy, thank you. While President Biden will also be addressing the baby formulas shortage in the country. The White House said the President will meet virtually with infant formula manufacturers this afternoon. We'll finally careen. The world's richest man appears to have had it with

this whole working from home thing. Testla CEO Elon Musk weighed in on the debate on Twitter by elaborating on an email he apparently sent to the Electric Carmakers executive staff under the subject line m work is no longer acceptable. Must grote that anyone who wishes to do remote work must be in the office for a minimum of forty hours per week or depart Tesla S ANDP. Future is right now up six points as we get ready to kick off the month of June. Straight ahead your latest

local headlines and the check sports. This is Bloomberg. It's now five oh seven on Wall Street, where it's sixty degrees in Central Park. Still dealing with a little overnight construction on the south end of Jersey Turnpike truck lanes. Details coming up in traffic. First Michael Bark with more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. Governor Kathy Oakle introduced a new package of gun reformed bills for New York

State and after mass shootings in Buffalo and Uvaldi. It's a total of ten bills that would tighten New York's gun laws and close loopholes. Huncle says New York already has some of the toughest gun laws in the country, but clearly we need to make them even stronger. Among the proposed legislation is increased in the minimum age required to buy a semi automatic rifle from eighteen to twenty one. The victims of last week's mass shooting in a Texas grade school are being laid to rest in New Valley.

The first funerals were held yesterday. A gunman killed nineteen children and two teachers. One of those teachers was Ava Morrellus. Her sister, Maggie Morrellus. Thomas says she told Governor abbot. If he wants to help, he could change the state's gun laws. There's no reason why this type of weapon should be among us people here. These things belong in the war. There's no war in the classroom. There's no war out here. Maggie morrellus Thomas says she does not

want anyone to forget her sister's name. Seventeen other people were injured in the shooting. A woman wounded, and in April New York City subway shooting is filed a lawsuit against gun manufacturer Glock. In her lawsuit, Eileen Stewart says Glock endangered the public health and say the for the marketing, distribution, and sales of its guns. Ten people were shot and wounded as a man fire, dozens of bullets and the subway train full of morning commuters. New York was suspending

its gas tax for the rest of the year. It would save sixteen cents per gallant. Joining Connecticut and suspending the gas tax. Governor hoc announced the new l I Double R terminal in midtown Manhattan will be named Grand Central Madison. You're talking about a place as iconic as Grand Central. You can't change that. And this conjures up the images of glory in a time early nine hundred nineteen nineteen twelve, when when the world was stunned by

the magistrate of this building itself. Governor Hokel says it will be completed by the end of this year. Global News twenty four hours a day on air and on Bloomberg Quittake, powered by more than journalists analysts more than a hundred twenty countries. I'm Michael Barrn. This is Bloomberg Nathan. Alright, Michael, thank you. We're coming up to five ten on Wall Street. Time for the Bloomberg Sports Update, comporting John stash Our Morning, Nathan. Mets and Yankees both at home. They won by a

combined score of nineteen o one. It was ten nothing for the Mats over Washington had seventeen hits, Mark Canna had four, jeff Rick Meal three home run for Starling Marte and edwardo Escobar, and the Mets have won five in rows, scoring forty four runs in those five games, twenty three runs in the two games so far with

the Nationals. At day games today at City Fields at the Stadium, Yanks over the Angels nine to one, four run first inning with the two run over by the newest Yank Matt Carpenter, whose a Trevino later with a two run shot and twenty of run support for Jordan Montgomery, who normally does not get it. He got his first win wild start to the Stanley Cup West Finals as and Oilers in Denver. They combined for five goals in the first period, six more in the second. He has

led seven to three. It was cut to seven six Colorado held on eight six. Don't expect the game like that tonight at the Gardeners. The Rangers and Lightning begin the East Finals. Two terrific goalies in this series. The

Rangers igors Just Turkin Tampa Bays Andre Vassilevski. The Ranger defenseman is Adam Fox, two of the top goalies obviously uh as his traft record speak for itself, but kind of does to what he's done this year has been Stanley impressive, So definitely two good goal is uh you know, coming together and a lot of the Lightning, two time defending Stanley Cup champs. They just won their tenth straight series.

They swept Florida, who was the top seed in the East fifty ninth match between Raphael and Ala Novak Djokovic, who Natalie leads thirty to twenty nine the Dow one in four sets. He's into the semi finals of the French Open. John stash Or Bloomberg Sports Nathan all Right, John, thanks right now. SMP futures are higher by five points, Stole futures up a hundred twenty eight. That's again of four tenths percent for the Dow. NASAC features are lower,

down twelve points. Tenure treasuries down five thirty seconds, the yield two point eight six percent. Stay with us. You are listening to Bloomberg Daybreak one and three adults, and Bloomberg Daybreak is brought to you by p Pack Gladstone Bank. At p Pack Gladstone Bank, they believe that all banking should be private banking. To learn more, visit pg bank dot com. Today, Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business

Outland at Bloomberg Quicktape. This is a Bloomberg Business Flash. And I'm Karen Moscow and stocks in Europe and US stock index futures have been struggling for direction. I'm at a debate over the scale of central bank monetary policy tightening needed to find inflation. We checked the markets every fifteen minutes throughout the trading day on Bloomberg and the futures. They're mixed. This morning. S and P futures are up six points down, futures of a hundred thirty three and

nasdec futures down nine. The decks in Germany's up three tens of upper sent ten. Your treasury down five thirty seconds, YELD two point eight six percent. They yield on a two year two point five seven percent nine Max Screwed oil is up one point six percent, up a dollar eighty three and a hundred sixteen dollars forty nine cents of barrel comics. Gold is down one percent, or seventeen

dollars seventy cents at eighteen thirty seventy announced. The Euro one point oh seven one nine against the dollar, British pound one point to five eight one, the yen at one nine point four zero, and Bitcoin this morning down six ten percent at thirty one five nine dollars. Today we are watching for reports on construction spending and manufacturing at at ten o'clock Wall Street time, along with the Jolts jobs report, and the Federal Reserve releases its BIGE

book at h That's a Bloomberg Business Flash. Now here's Michael Barr with more on what's going on around the world. Michael, good morning, Good morning, Karen. President Joe Biden said he'll give Ukraine advanced rocket systems, another US weaponry to better hit targets and its war with Russia. The White House plans to announce the new seven hundred million dollar Security Assist Its Package today. Since the war began, the US has supplied more than four point five billion dollars in

military aid. The first funerals for victims of last week's mass shooting at rob Elementary School began yesterday in Yuvaldi, Texas. In baseball, the Yankees one, the met shut out the Nationals ten zip the Red Sox Orioles, and A's lost

the Giants one. In the NHL Eastern Conference Finals, two night is Game one as the Rangers host The Lightning Global News twenty four hours a day on air and on Bloomberg Quicktake, 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. Nathan. All right, Michael, thank you. It's five nineteen on Wall Street Line from the Bloomberg Interactive Brokers Studios. This is Bloomberg day Break.

Let's get more now. In that top story, Michael Barr just mentioned in the news there President Biden saying he will give Ukraine advanced rocket systems seven hundred million dollars in new military assistance on top of the more than four billion that's all ready been committed. Now the the Ukraine War is into its fourth month. Julie Norman joins US now co director of the Center for US Politics at University College London, Professor, It's always good to speak

with you. Thanks for being with us. This new assistance that President Biden is promising, will it be enough to turn the tide in this war? Well, good morning, Nathan. And obviously Zelinski has been pushing the West for higher level of weapons systems from the beginning. This is a weapon system that should help, especially in the offenses in the East where there's been kind of the ongoing slug

of artillery battles. And essentially what this a package essentially will offer is long range rocket systems that can hit targets like forty pretty much forty to fifty miles away, compared to the howitzers that we currently supply that can hit targets out eighteen miles away. So it does give a bit more power in that regard. It's not the longest weapon systems the US has, what's kind of the

mid range one. Biden was really explicit in his comments on this and writing about it, saying that this is for use for defense within Ukraine's borders, not to target Russia over the border. So very explicit language from Biden how he sees or wants these weapon systems to be used.

Given how much range these weapons systems do have forty to fifty miles, as you say, and given where the war is centered at the moment in eastern Ukraine and the disputed uh Don Boss region, is there a risk that providing these sorts of mid range weapons systems could widen the war further? Well, it's certainly a concern, and it's one reason why the administration has been i would say a little bit uh you know, hesitant to reluctant

in the past to supply them. Your Russia has signaled very strongly that they wouldn't see this as an escalation. They do see this as increased US involvement. And again that's why we see these weapons, coupled with the very strong messaging from the US that they don't want these to be used offensively over the order, and even more explicit language also from Biden saying that he doesn't want this war to drag on simply to cause pain for Russia. Their goal is simply to try and you establish a

sovereign Ukraine with the needs to defend itself. So a bit more clarifying of messaging from Biden and how and why he sees these weapons being necessary, and perhaps we've seen in some of the past weapons releases. I want to shift from the war in Ukraine to the war on inflation, something that President Biden is being pretty explicit about wanting to focus on now over the next month.

Here we got that meeting yesterday with a FED chair J. Powell, and now this admission on CNN from Treasury Secretary yelling that she got it wrong when she says when she said that inflation was transitory. What does this say about where the White House is in the fight against inflation. Yeah, well, I think there's a couple of things here. So the White House is struggling obviously on the policy side of reigning in inflation, but also on the messaging and the

narrow off side. And we've seen this shift not only from yelling but really from you know, Biden, across the administration. This time last year, everyone pretty much saying and that inflation was transitory, temporary. That shifted a bit in the fall, with a bit more emphasis on build back better as being the thing that would kind of calm some of

the passion families that obviously didn't go anywhere. A shift in the spring to blaming Putin's war, And so now it's really kind of the rubber hitting the road in terms of being to really confront this as an ongoing issue, something that the White House needs to take control over in terms of the policy and messaging. So I think we'll see some different attempts here. Biden, you wrote a pretty um direct off ed and the Wall Street Journal this week kind of laying out some of his his

thoughts on it. But in reality, it's going to be tough for the administrations to have a positive message on this, like prices are hurting Americans over people are feeling the pain right now and are expressing concern, and there's just not a lot that the Biden administration is going to be able to do about it, especially going into mid terms. Only about thirty seconds left here, Professor, what's the political impact is the White House plant catch up here? Oh?

I think they definitely are. And it's just it's unfortunate. There's not really a good answer here because you either own that you got it wrong or you keep trying to peddle a optimistic message that just doesn't align with what people are feeling right now. So it's going to be a challenge for them. They're obviously going to be

trying to do what they can. Biden is really emphasizing the independence of the FED and underscoring that as kind of his political um posturing on this is just respecting the Fed and Powell to do their best to handle this. As always, great to get your thoughts, Thanks so much, Julie Norman, co director of the Center for US Politics at University College London. Right now, SMP futures are up eight points, STOWN futures up a hundred forty seven, NASTAC

futures are lower by two points. Basically unchanged. Tend your treasuries down six thirty seconds, the yield two point eight six percent, just ahead, stocks back where they started to kick off June, and sales force surging on boosted profit or outlook. This is Bloomberg Bloomberg day Break, brought to you by p Pack Gladstone Bank. At p Pack Gladstone Bank, they believe that all banking should be private banking. To

learn more, visit pg bank dot com. Today broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg in Freedon to Washington, d C, Bloomberg to Bomston, Bloomberg one O six one to San Francisco, Bloomberg N sixty to the country Sirius XM to A one nine team, and around the globe the Bloomberg Business app in Bloomberg Radio dot com. This is Bloomberg Daybreak. It's five thirty

on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow, and we're just about four hours away from the open of US tray day. Let's get you have to date in the news you need to know at this hour. U S docks begin June coming off a volatile month that left the SNP five hundred basically unchanged. During the month of May, the benchmark index surged more than eight percent after falling within points of a drop

from her record. John Stulpis, chief investment strategist with Oppenheimer Asset Management, says he could see the index begin to rise again. The last time we saw a market that was in the process of coming out of the prices, which was two thousand and nine, the SNP declined percent from January to March oh nine. It then rallied sixty

four percent to the end of the year. Oppenheimer Asset Management chief investment strategist John Stolfi says it's possible the SNP makes a similar climb, but he admits he may have to adjust his projections well. Inflation is still a major focus for market scaring at the top political challenge for the White House. Now, Treasury Secretary Janet Yellt is admitting she got it wrong last year when she said

inflation would be temporary. There have been on anticipated and lord shocks to the economy that have boosted energy and food prices and supply bottle knicks that have affected our economy badly. That I didn't at the time, didn't fully understand the Treasury Secretary Janet Yellen told CNN she's encouraged prices are coming down, but you can't rule out future shocks. We Secretary Yellen was at the White House yesterday Nathan for a rare meeting between President Biden and Fed share

J Powell. Jean Spurling, senior adviser to the President, said the President used the meeting to make clear he respects the fans independence as it looks to cool inflation. We understand that our Federal Reserve is independent, has while they have a dual mandate, at times where inflation becomes the highest concern that they're going to take steps to dampen that inflation, and that's going to be raising interest rates,

and the President is going to respect that independent. Senior Adviser to President Biden, Jane Spirling, speaking with Joe Matthew on Bloomberg's Sound on airing Leekday said five pm Eastern on Bloomberg Radio, Well, the federal being focus again today, Karen is it's set to start shrinking at eight point

nine trillion dollar balance sheet. The Central Bank also releases its bage book today and turning to corporate earning, Nathan shares a salesforce more than eight percent in early training after the company raised its annual profit forecast yesterday at Crude Oils on the rise of this morning, Karen trading at a hundred sixteen dollars fifty two cents a barrel for West Texas Intermediate. That comes before an OPEC plus routine meeting tomorrow to discuss supply policy. Straight ahead, your

latest local headlines and a check of sports. This is Bloomberg. That's sound five thirty three on Wall Street, sixty degrees in Central Park. We've got accident clean up. It's got George Street closed in Rider Lane and New Brunswick details coming up. A traffic first Michael Barr with War on what's going on in New York and around the world. Michael, thank you very much, Nathan. New York Governor Kathy hok Will introduced a new package of gun reform bills after

mass shootings in Buffalo and Valdi. It as a total of ten bills that would tighten New York's gun laws and close loopholes. Among the proposed legislation is increasing the minimum age requirement to buy a semi automatic rifle from eighteen to twenty one. The first funerals for victims of last week's mass shooting at rob Elementary School began yesterday. In Your Vality Texas, Texas State Democratic Senator Roland Gautierrez, who represents you valdis as he is calling on Governor

Greg Abbott to take action. We need a special session to fix gun laws, but we also need a special session for this legislature to go and investigate woment wrong here. State Senator Gautier has told ABC he is hearing voters demand for reform to gun laws. The Supreme Court has put on hold of Texas law that would stop social media platforms from the leading posts and accounts. Bloomberg said, Baxter has the story. The hold will allow a constitutional

challenge to go forward in a lower cord. The tech groups Meta, Twitter and Google I'll argue the law would stop them from barring hate speech, including neo Nazi and ku klux Klan, or Russian propaganda, or just plainly misinformation and untruths. The authors of the legislation say they are just trying to protect free speech. The High Court vote was split in this decision and did not explain its decision at all in San Francisco. I'm at Baxter Bloomberg Gay Break. It's a new name for a new ELI

Double R terminal. Governor Kathy Hokel says it will be called Grand Central Medicine. For twenties four years now, we've been hearing about this project, and everyone always just thought, so it'll get done someday in the future. The future, the future, the future is, Governor Okeles says. The East Side Access Terminal aims to bring more traffic into Manhattan

from Long Island at peak times. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven under journalist mentalist more than twenty countries. I'm Michael Barr, and this is Bloomberg. Name him Michael. Thanks on Wall Street, Jo Stashiris The Bloomberg Sports Update, Thanks Nathan. June begins with the Yankees best record baseball, Mets the third best and owners of the biggest lead. Yanks improved a thirty four and fifteen

beat the Angels at the Stadium nine to one. Finally scored runs for Jordan Montgomery. Every Yank had a hit except Aaron Judge. Joey Gallo actually had two hits. Mets also at home, being Washington ten up in their thirty four and seventeen They've got a ten and a half team lead in the n L e seventeen met hits in their fifth one in the row. The Mets have sent the struggling Dom Smith to triple A Syracuse. He

was batting just one eight six. He hit three sixteen two years ago Stanley Cup Plaoffs Game one in the West and it wasn't decided until the fourteenth goal of

the night. Trying to get it out, he does the center rice through the likes of dry Citle, intercepted by Landiskog feet from Barry Landiskogle for net Yewshaw, Oh Captain, my captain make fit eight for the avalach with twenty one point four seconds to go in the third of this place has a rup day See Denver, Colorado peed Edmonton eight the six Rangers in lightning tonight at the

Garden to start the eighth finals. Tampa Bay winners of ten consecutive playoff series, two time defending Stanley Cup champs, last NHL three feet the Islanders. In the early nineteen eighties, Rangers did sweep the regular season series of Tampa. They won all three games. Thirteen time French Chopa Jeff Raffield Island. In the semifinals in Paris, he beat Novak Djokovic and four sets. The match went over four hours. It ended past one am. Nadad will now play Alex Zaverev took

out the nineteen year old Spaniard Carlos Alcarez. John Stashtward Bloomberg Sports, Nathan gotta rest up, Thank you, John. It's five thirty seven on Wall Street time for the Tri State Business Report with Bloomberg Scott Carr. Italian company penaf Arena, maker of the Ferrari, is opening an office in New York City, hits second in the U S as part of plans to expand in North America. They'll open a satellite office June one and Manhattan's Chelsea neighborhood. They'll be

joined by creative partner Born Group. Shareholders of Spirit Airlines are being urged to vote no on the proposed merger deal with Frontier Airlines by proxy Advisory Group i s s New York City based Jet Blue Airways, however, which countered with a higher bid in April applauds the report. Jet Blue chief Robin Hayes says their bid offers superior value, though officials at Spirit have expressed concern about getting regulatory

approval if they were to merge with Jet Blue. New Jersey's largest health insurer, Horizon, has just been named by j D Power as the state's number one health insurer and top provider for the third year in a row. That's the Bloomberg Tri State Business Report. I'm Scott Carr. Scott, It's thirty 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

hundred affiliate radio stags around the world. I'm Steves podascon ten ten Wins in New York. We're talking about the planned change for the stock ticker symbol for Facebook, fair A, Meta Platforms, andrace Matteo, And on KMOX and St. Louis. I'll be reporting on billions and funding being dedicated to strength in the US food supply chain. I'm Scott Carr, I w D c H in Washington. I'm reporting on Virginia's further steps to stifle plans for a casino and

the state's capitol. M Corney's not all on ktr h M Tuesday, climbing gas crisis fell, no relief for drivers, and those are some of the stories our twenty seven hundred Bloomberg journalists and analysts are working on this morning. Around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. The slaughter at an elementary school in Texas, soon after a similar atrocy at a grocery store in New York State, has

stunned the country, tragically accustomed to mass shootings. This time, though, long makers might actually do something about it. Across the nation, so called red flag laws, which allow police or family members to ask a court temporarily ss spend an individual's access to guns when he poses a threat to himself or others, are commanding renewed bipartisan support. Such laws are now in the books in nineteen states, and the research

on their effectiveness is encouraging. In Connecticut, for example, researchers estimate that one life has been saved for every ten to twenty protection orders issued under the law. Red flag laws may not be perfect, but they are useful, especially since many mass shooters give advance warning before committing their crimes, and after the horrors of recent days, there's no excuse for failing to act. This editorial was written by the

Bloomberg Opinion Editorial Board. I'm David Shipley. For more Bloomberg Opinion place, go to Bloomberg dot com, slash opinion or opan go on the Bloomberg terminal. These has been Bloomberg Opinion. You can listen to Bloomberg Got opinion editorials every weekday. At this time, terminal customers can read more at O P I n GO SMP futures right now up seven points. Staff futures of a hundred forty three. NASTACK futures are lower by three points. Matt Mailey of Miller Taybeck joins

us next. As we get ready to kick off the month of June. This is Bloomberg Cloober eleven, three oh weather. Chance for showers and thunderstorms this afternoon, low seventies for highs more showers likely tomorrow afternoon, low eighties, clearing upper seventies for Friday, currently sixty in central Park markets headlines and breaking news four hours a day at Bloomberg dot Com, the Bloomberg Business app, and at Bloomberg Quick Take. This

is a Bloomberg Business lash, and I'm Cameron Moscow. Stong's in Europe and US stock index futures have been struggling for direction this morning. I'm med a debate over the scale of central bank monetary policy tightening that's needed to

fight inflation. We checked the markets every fifteen minutes throughout the trading day on Bloomberg with SMP futures up seven points this morning, down futures up a hundred thirty five nastack futures that will change the decks in Germany's up for tens of upper cent and the tenure treasury down four thirty seconds. You have two point eight six percent nine max screwed oil up one point six percent at a hundred sixteen dollars forty nine cents and barrel. That's

a Bloomberg Business Flash. Now here's Michael Barr with more. I'm what's going on around the world, Michael Karen, thank you very much. As the victims in the Texas schools shooting are ladies arrest, President Dyden is promising to meet with members of Congress on gun reform. Yesterday, the President's meeting with New Zealand Prime Minister just Into ardor and praised her success in passing a ban on military style semi automatic weapons after a white supremacist killed fifty one

Muslim worshippers. In baseball, the Yankees won the met shout out, the Nationals, ten zep, the Red Sox, Orioles, and an He's lost. The Giants won two nights in the NHL Eastern Conference Finals, Game one as the Rangers host the Lightning Global News twenty four hours a day on air rand on Bloomberg Quick Take, powered by more than journalists antalyists more than twenty countries. Michael Barr and this is Bloomberg. Nathan all right, Michael, Thanks, It's on Wall Street Live

from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak end. As we get ready to kick off the trading month of June. We are joined this morning by Matt Maylee, Chief market strategistic builder. Tape back, Matt, it's always great to speak with you. So we've ended the month of

May pretty much right where we started. Where do you see the boom for stocks now, well, I mean after this uh, you know, obviously great rautity we saw last week, Nathan, we the things are looking a little bit better and um, you know it looks like the the you know, the internals from the market last week and the tentacles look pretty good. So there are there's some upside possibilities here, but um, you know, intermediate term and even longer term,

I just think that you know, nothing's really changed. The FED is the going to continue to be aggressive. I mean that they're now going to start shrinking their balance sheet and you know this month and this is the type of thing that's gonna make it that was always gonna make it tough for the for the market rally much and uh and I think that's going to create headwinds as we move through the rest of the year, especially uh as we get close to this next earning season,

which starts in July. And as we get close to that, I think we're gonna see some people start to uh lower those earnings expectations and that could be a catalyst for for a for a tough second half of the month. Oh what do you see as the market impact as the Fed begins to start unwinding it's balance sheet. Here, has the market fully priced in, uh, the end of the quantitative easing or could we still see more room for this market to fall. Yeah, I don't think it's

fully priced it in yet. Number one, because the market, you know, they pushed through their liquidity, their massive liquidity program. They pushed the stock market well above the underlying fundamentals. And I think at seventeen times earlies, it's still above those underlying fundamentals, given you know, the interest rates have moved up. At least that tells us on a historical basis.

But more importantly, we've also seen how the economy is starting too slow and uh to a degree that was always always gonna happen because when the fit you know, the stock mark has been such important part of the of the UH of the economies ever since the bernankey really you know, started using it as a tool a dozen years ago. And and so now that you know that fair value has got to come down a little bit because because the economy is starting to weaken, so

I think it's got further to fall. And uh, I still think people need to play from the defensive side and take any bounces as an opportunity to get defensive. So where do you see those opportunities? Then? Well, it's kind of interesting because one of the things I still see is the the energy stocks. Uh, the one thing I'm a little worried. On a near term basis, I think investors don't have to chase those stocks right now because they're getting overbought, kind of like the way they

did back in March. So let the stocks come to you a little bit. But one three stocks that I really like here on a longer term basis, and these are the ones you want to buy very gradually are big cap tech names. And it's like, oh wait a minute, if you're paish, how could you like some big cap tech names? And I'm just saying some of them have gotten hit hard. And the three I like our our Amazon, Google,

or Alphabet and Meta the old Facebook. And the reason those stocks have already gotten knocked down they've gotten much cheaper than a lot of other tech names. And the thing is we're not gonna know where that where they're gonna bottom. If the broad market falls further like I think it will, Uh, these stocks will also follow the two.

But if you buy them, every single month for really for the rest of the year, and you'll get a nice you know, you'll be able to get a nice little uh base of of of shares by the end of the year, a nice average price on those uh that you'll be really be sitting really nicely uh for

next year and beyond. So in our last minute here, Matt, does that mean that names that aren't big cap tech stocks are more vulnerable to moves from the Fed, the UH, the unwinded the balance sheet and the possibility of more aggressive rate hikes for the rest of this year. Yes, yes, I do, and I do And if there are other big cap tech names that are still vulnerable and and like I mentioned, those three I just highlighted are more

vulnerable as well, but just nowhere near as much. And on a long term basis, they're great, great companies UH and they've become a much more reasonably priced UH and and they're gonna be the better play. But I do, yes, I do think that you'll see more downside. We just said again, the FED pushed the things too uh too far. You know, they left their emergency level of liquidity on long past the emergency sort of the emergency had had ended for the economy, and so we have to go

through the pain of the reset of that process. It's gonna be painful, but it's normal, it's healthy, and if you kind of pick your spots here and there, you can come out of the other side very very strongly. All Right, as always, Thanks Matt Mayley, Chief market strategist at Miller tay Back. Karen, all right, thanks Nathan. It is five three on Wall Street. Time for the Bloomberg Law Report. We get to the legal stories we're watching

this morning from Bloomberg's Jeff Bellinger. Apple lost its bid for a new trial and a patent dispute. A jury rule that Apple must pay three hundred million dollars in damages for the wireless technology used in iPhones and other products. A federal appeals court rule that Vanheuser Busch Super Bowl ads that implied that Molson Coors uses corn syrup in its bears were not misleading. Gibson convinced a federal jury

in Texas that a distributor sold counterfeit Gibson guitars. The jury awarded Gibson four thousand dollars in statutory damages after determining that no actual damages were suffered. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg market Intelligence. Find out more at Bloomberg

Law dot com. Ray, Jeff, thank you. And now another legal story where watching a jury has acquitted a former lawyer for Hillary Clinton's presidential campaign of lying to the FBI about the identity of his client when provided a

faulty tip on then candidate Donald Trump. The jury verdict in favor of Michael Sussman was the first trial of Special Counsel John and Durham's probe into the conduct of the FBI's Russia investigation, and Durham got a guilty plea from a former FBI lawyer for altering an email relating to a surveillance request, but he has yet to bring any charges related to the FBI investigation itself. For more of Bloomberg Stude Grosso speaks to former federal Prosecutor Robert

mens a partner Emma Carter in English. This was Durham's first major courtroom test after a three year investigation. How big a setback is this for him? Well, it's a huge setback for Special Counsel John Durham because this is the very first case that's gone to trial after three years of investigating whether federal agents who investigated the Trump

campaign committed any wrongdoing. So, in a sense, the Special Counsel's Office had really put everything on the line in this case, even though it ultimately was a fairly simple case which charged a single count of lying to the FBI. Right, so, Sussman presented research that he said suggested a possible secret back channel of communications between computer service for Russia based Alpha Bank and the Trump organization, but that wasn't what

the issue was here. So the whole case turned on the simple question of whether or not Sussman when he came to the FBI had the single meeting with the General Council of the FBI, whether she was there in his individual capacity as an individual citizen giving information to the FBI that that affected potential national security issues, or

whether he was there on behalf of a client. Now, what the defense argued ultimately successfully was that it didn't really matter because the FBI would have done the same thing had they known that he was there on behalf of the Clinton campaign or on behalf of a tech executive, And ultimately FBI did investigate the information and find out

that it was without basis. The case depended on the testimony of one witness, James Baker, who was the FBI's General Council, when he met with Sussman alone in September of and he took no notes of that meeting. He had some credibility problems that the defense brought out. That's exactly right, and I think that was one of the reasons this was a very difficult case from the start, because there's really one person's word against the other as to what happened at that meeting. And as you mentioned,

James Baker did not take notes. So although his testimony was he was a confident that Sussman insisted to him that he was not acting on behalf of a client, and that if he had known he was acting on behalf of a client, he may have handled the conversation

or the meeting differently. The fact was the defense was able to in teach that testimony somewhat by pointing out that Sussman had represented cybersecurity clients in the past, and that Baker had said at various times that he didn't remember certain parts of that conversation and when he took to witness stand. He said he couldn't remember a hundred sixteen times when the defense to asked him questions, and

so it wasn't rock solid testimony. And as Herbert mens A partner at mcarter in English speaking at the Bloomberg Student Garrosso. Catch more of that interview, plus analysis of the latest legal news, by subscribing to the Bloomberg Law Podcast or downloading this show at Bloomberg dot com, slash podcast, Attorney's combined exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at

b Law. Go and against. And the futures are up six points this morning, down futures of a hundred thirty two nasdack futures down at twelve, still ahead of Bloomberg day break and check on the business headlines and all the news you need to start your day. This is Bloomberg