Bloomberg Daybreak: June 1, 2022 - Hour 2 (Radio)

the US ramps up military support to Ukraine. New York Governor Hukill introduces new gun reform measures, Plus the first funerals have again for the victims of the Texas school shooting. I'm Michael larn More. Ahem, I'm John Stashon sports blowout wins at home for the Mets and the Yankees. Rangers

in lightning play Game one at the Garden tonight. That's all trading ahead on Bloomberg Daybreak 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 nine team and around the world Old on Bloomberg Radio dot Com and via the Bloomberg Business

and good morning. I'm Karen Moscow, I'm Nathan Hagar. Bloomberg Daybreak is brought to you by B and Y Melon's Pershing Inside Conference back in person June fifteen through the seventeenth in Grapevine, Texas, a must attend event for financial advisors, registered today at Inside dot b n y Melon dot Com, and US futures are mixed this morning. It is six and went on Wall Street. We checked the markets every

fifteen minutes throughout the trading day. On Bloomberg. SMP future is up five points down, futures up a hundred, twenty four nasday futures are down thirteen and the ten year treasury down four thir Day seconds held two point eight six percent, yield on the two year two point five seven percent. Nathan Karen. US stocks begin June after a month where the SMP five hundred was 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 percent drop from a record, signifying a bear market. Peter Oppenheimer is chief Global equity Strategist at Goldman Sacks. If you look at the 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

already 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 Sacks. Chief global equity strategist Peter Oppenheimer still says he expects markets to be very volatile over the next few months. Well, Nathan. Helping to lift sentiment this morning is corporate earning shares a sales Fource up eight percent in early training, the company raising its annual profit forecast. We get more from

Bloomberg's Don 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. Analysts on average estimated annual profit of four dollar sixty eight cents. Salesforce is the leader in cloud 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 Chrisner, Bloomberg Daybreak. All right, Doug. Thanks. Crude oil is also on the rise this morning, trading at a hundred sixteen seventy five cents for a barrel of West Texas Intermediate. This comes ahead of an OPEC plus routine meeting tomorrow to discuss supply policy at more.

City Groups Global ahead of Commodity Research, 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 d twenty dollar range. City Group said. Moore says demand for oil and refined products is falling as the economy starts

bracing for a recession. Well, Nathan, inflation is still a major focus for markets and 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 an anticipated and lord shocks to the economy that have boosted energy and food prices and um supply bottlenecks that have affected our economy badly that I didn't at the time, didn't fully understand,

but we recognize that now. In an interview as CNN, Secretary Yellen said she's encouraged that corporations have started to come down, but she says she cannot rule out future shocks. The 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 Central Bank independence while shifting responsibility for taming decades high inflation.

I'm not going to interfere with their critically important work. FED as tool responsibilities one full employment to stable prices. This was President Biden's third in person session Powellson's taking office well. The FED will also be in focus today. Nathan's set to start shrinking at 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 the 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, thank you now. The latest developments on the war. President Biden says he will give Ukraine advanced rocket systems another weaponry to help at the battle with Russia. Amy Morris has details from our Bloomberg newsroom in Washington.

The President made the announcement in a New York Times article published last night. As 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. President Biden will also be addressing the baby formula shortage and the country. The White House stade the President will mean

virtually with infant formula manufacturers this afternoon. Finally, care In the world's richest man appears to have had it with this whole working from home business testas CEO Elon Musk wade in on the debate on Twitter by elaborating on an email he apparently sent to the Electric Carmakers executive staff under the subject line remote work is no longer acceptable. Musk wrote that anyone who wishes to do remote work must be in the office for a minimum of forty

hours per week or depart Tesla right now. S and p futures are up three points. Stown features of a hundred sixteen NASTAC futures are lower by nineteen points. The tenure treasury yield right now two point eight six percent. Local headlines and a check of sports. Up next to this is Bloomberg Sounds six o seven on Wall Street board sixty degrees in Central Park dealing with an accident on the westbound Belt Parkway a cross Bay Boulevard. Details

coming up at Traffic. First Michael bar with Warre on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. New York Governor Kathy Hocill introduced a new package of gun reform bills aftermass shootings in Buffalo and U Valley. It is a total of ten bills that would tighten New York's gun laws and closed loopholes. Hocal 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 increasing the minimum age require meant by a semi automatic rifle from eighteen to twenty one. The victims of last week's mass shooting and the 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 Eva morrell As.

Her sister, Maggie Morrells Thomas says she told Governor Abbot that 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 in Valdi. Maggie Morrellus Thomas says she does not want anyone to forget her sister's name. A woman wounded in an April New York City subway

shooting is filed a lawsuit against gun manufacturer Glock. In her lawsuit, Eileen Stewart said Glock endangered the public health and safety with the marketing, distribution, and sales of its gun. Ten people were shot and wounded as a man fired dozens of bullets and the subway train full of morning commuters. New York is suspending its gas tax for the rest of the year. It would save sixteen cents per gallon,

joining Connecticut and suspending its gas tax. The energy Department says the nationwide record average for a gallon of gas rose three cents in the past week to four dollars sixty two cents. Governor HOCl announces new LI Double R terminal in Mentown, Manhattan. It will be named Grand Central Medicine. 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, nineteen eleven twelve, when when the world was stunned by the magistrate of this building itself. Governor Hocal says it will be completed by the end of this year. Global News twenty four hours a day on air and on Bloomberg Quicksay, powered by more than journals snatalists more than twenty countries. Michael Barr, this is Bloomberg Kin. Michael, thanks, We're coming up to

six ten on Wall Street. John stash Ore has the Bloomberg sports updates and Nathan Mets and Yankees were both at home. They won by a combined score of nineteen to one. It was ten nothing for the Mets over Washington.

They had seventeen hits. Mark Hanna had four, Jeff McNeil three home runs for Sterley Marte and Edwardo Escobar, and the Mets have won five in a row, scoring forty four runs in those five games, twenty three runs in the two games so far with the Nationals of the day game today at City Field the Stadium, Yanks over the Angels nine to one, four run first and include two run homer by the newest Yank Matt Carpenter. Jose

Trevino later with the two run shot. Plenty of run support for Jordan Montgomery, who normally does not receive it. He got his person under the year Wild started the Stanley Cup West Finals Avs and Oilers in Denver. They combined for five goals in the first period, six more in the second. The has led seven to three, it was cut to seven six Colorado held on a on eighth to six. Don't expect a game like that tonight at the Gardens. The Rangers in Lightning begin the East

Finals too. Terrific goalies the Rangers igors Ches Turkin, Tampa bay Is Andre Vasileski, the Ranger defenseman Adam Fox to the top goalies. Obviously, uh does his track record speak herself, but Jest's it does to what he's done this year has been in Stanley. Impressive. So that's the two good goal is uh, you know? Coming together the lightning to the two time defending Stanley Cup Chace. They just won their tenth straight series. Who was a sweep of Florida?

Who was the top seed of these fifty nine bat between Raphael Dala Novak Djokovic who leads thirty to twenty nine, but Nadal won four sets. He's into the semifinals of the French Open. He's won the tournament thirteen times. John stash were Bloomberg Sports Nathy okay, John thanks SMP futures up a point and a half. Right now down, Future is up a hundred four points. Stansta features down twenty eight points. The tet your treasuries down for thirty seconds.

The yield two point eight five per cent. You're listing to Bloomberg Daybreak. Bloomberg day Break brought to you by Hofstra Universities Frank gez Art School of Business, top ranked online NBA program with the Real World Foundation. Learn more at Hofstra dot e d u slash Go Brad markets headlines and breaking news twenty four hours a day at

Bloomberg dot Com. The Bloomberg Business Out and at Bloomberg Quicktake, He's a Bloomberg Business Flash and I'm Cameron Moscow songs in Europe and US dock in Next Future are struggling for direction today admitted debate over the scale of central

bank monetary policy tightening needed to fight inflation. We checked the markets every fifteen minutes throughout the trading day on Bloomberg and right now, S and P futures are little changed down futures up in ninety eight and NASDAG futures are down twenty six The decks in Germany's at a quarter per cent, tenure treasury is down five thirty seconds.

He'll two point eight six percent, the yell done, the two year two point five seven percent, nine mex screwed oil up one point four percent of a dollar sixty three at a hundred sixteen dollars thirty cents, and barrel comic school is down nighted tenths per cent or sixteen dollars eighties cents at eighteen thirty one sixty announced the euro one point oh seven to two against the dollar, British bound one point to six and the yen at one nine point three eight and Bitcoin this morning, lower

down six tenths per cent at thirty one thousand, five nine dollars. That's a Bloomberg business flap show. Here's Michael bar with more on what's going on around the world. Michael Barn, thank you very much. President Joe Biden said he'll give Ukraine advanced rocket systems and other U S weaponry to better hit targets in its war with Russia. The White House plans to announce the new seven hundred

million dollars security assistance package today. The first funerals for victims of last week's mass shooting at rob Elementary School began yesterday in New Valley, Texas. In baseball, the Yankees one, the mat shut out, the Nine Sationals en Zepp, the

Red Sox Orioles, and A's lost the Giants one. In the NHL Eastern Conference Finals tonight, Game one as the Rangers host the lightning Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than hundred journalists analysts more than a hundred twenty countries at Michael Barn, this is Bloomberg. This is the Big Take, the best of Bloomberg's in depth, original reporting from around the globe. This is a really fascinating story

that's caused a lot of outrage among investors. This is so fascinating. The market shotdown in a way it's never done before. That's gonna have consequences for years to come. The big take on Bloomberg Radio. It's six times seen on Wall Street Live from the Bloomberg Attractive Broker Studios.

This is Bloomberg day Break and our big take this morning is on the war in Ukraine and how the surge in commodity prices sparked by Russia's invasion is helping to fuel the Kremlin's war machine despite massive sanctions from the US and its outli Bloomberg Dow's oil strategist Juliant Lee joins US Now with more on this Bloomberg Big Takes story. Juliant, good morning. You know, the sanctions were supposed to starve Russian military financing, but it's almost like

the wars created a feedback loop. Is that the right way to look at it when it comes to the impact of oil price surges. Well, good morning, It's good to be with you. Um. Certainly we you know, we've seen some big rises in headline prices not just for oil but for other commodities as well, and there's a temptation to to see that feeding through UM to Russia and Russia's earnings, and undoubtedly they have benefited to some

degree from that. But I think it's important um also to look at the sort of discounts that Russia is having to offer, particularly for its oil exports, to get a real sense that things are starting to happen. And the oil embargo that the European Union has now agreed that really hasn't come into effect yet, so everything that we've seen to date has been very much on a

voluntary basis by buyers. And what we have seen is that in the last month or so, the sort of discounts that Russia has had to offer for its crude have been in excessive thirty dollars a barrel. So that means that while we're seeing Brent and West Texas intermediate that sort of hundred and fifteen hundred and twenty dollars a barrel, Russian crude is still selling below a hundred and you know, in some cases below ninety as well,

so still a high price UM. But those self sanctions are having an effect, and the mandatory sanctions that are coming will have an additional effect. And now the Russia has been able to sell its crude at a discount, it's been sort of shifting its supply chain as well, hasn't it to try to find those buyers. Is there anything that the US and its allies can do to sort of tackle that the purchasing of Russian crude by other nations. Well, there are certainly things that could be done.

I mean that there is quite clearly precedent for secondary sanctions against buyers of Russian audio. Only have to look at the sanctions that were um imposed both by the Obama administration and by the Trump administration subsequently that targeted um sort of other buyers of in that case Iranian crude UM, and those were both success That's successful in their own right in reducing sales of Iran's crewed around the world, and it's it's possible that something like that

could be done with Russian crewede. I think that the problem is that we are in a very different market to the one that we were in when sanctions were imposed on Iran. The underlying supply demand balance is much tighter. That's why we're seeing the big run up in prices, and in some senses, what I think that the Western Powers want to do is not necessarily to choke off the the all of Russia's oil a sports. They want to make it more difficult. They want to make it

more expensive for Russia to export its oil. They certainly want to reduce the volumes, but I doubt that anyone who's looking at the state of the oil market would would really want to see no oil coming out of Russia. I know that it's a um a high a desirable outcome for Ukraine and for anyone who looks at it purely from the lens of Russian income and the ability to fund the war in Ukraine. But the cost of a total halt to Russian oil exports I think would

be huge. Much more on this in our Big Take story Russia's two hundred five billion dollar oil and gas bonanza is funding Putin's war. Bloomberg News oil strategist Julian Lee thanks for being with us to get a glimpse at what's in this Big Take story. You can read much more on Big Take, Bloomberg dot Com, slash Big Take, or ni Big Take go on the Bloomberg Terminal and looking at oil prices right now, NIMEX screwed is higher on this session by one point four percent, up a

dollar fifty nine and a hundred sixteen barrel. Brent is higher by one point four percent at a hundred seventeen dollars seven cents. Future is little changed at the moment. You're listening to Bloomberg Daybreak Bloomber eleven three oh weather. Chance for showers and storms this afternoon with highs of the low seventies. More showers likely tomorrow afternoon as well, with highs of the low eighties, clearing upper seventies for Friday.

Right now, sixty degrees in Central Park. Broadcasting live from the Bloomberg Interacted Broker Studio in New York. Bloomberg Eving Preen to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg N sixty to the Country, Sirius XM Chento one nineteen and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's six thirty on Wall Street to Boarding.

I got Nathan Hagar and I'm Cameron Moscow. We're just about three hours away from the open of US trading. Time for the five things you need to notice start

your day. Brought to you by I b k R Investment Advisers switched to Interactive Brokers for lowest const global trading and turnkey custody solutions, no ticket churches and no conflicts of your interests at ibkr dot com slash r i A first u s dogs begin June, coming off a volatile month that left the SNP five hundred basically unchanged and made the benchmark index surge more than eight percent after falling within points of a drop from a record.

John Stults FIZ, 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 a crisis, which was two thousand and nine. The SNP declined from January to March oh nine. It then rallied sixty to the end

of the year. Hoppenheimer Asset Management chief investment strategist John Stolts FIZZ says it's possible the SNP makes a similar climb, but amidst he may have to adjust his projections well. Inflation is still a major focus for markets care and at the top political challenge for the White House. Now, Treasury Secretary Janet Yellin's admitting she got it wrong last

year when she said inflation would be temporary. There have been unanticipated 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. Treasury Secretary Janet Yellin tells CNN she's encouraged prices are coming down, but can't rule out future shocks.

Nathan Secretary Yellin was at the White House yesterday for a meeting between President Biden and FED share J. Powell. Jane Sperling, senior adviser to the President, says the President used the meeting to make clear he respects the Fed's

independence as it looks to cool inflation. We understand that our Federal Reserve is independent as 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 Jeane Spirling speaking with Joe Matthew on Bloomberg Sound on airing weekdays at five pm Eastern on Bloomberg Radio,

the Federal be had focused again today. Karen is it's set to start shrinking it's eight point nine trillion dollar balance sheet. It also releases its spage book today, and Nathan Crude Oil also on the rounds this morning. It is currently trading at a hundred and sixteen dollars twenty cents a barrel. That's up one point three per cent, and this comes before an opeg plus routine meeting tomorrow to discuss its supply policy. That's the five things you

need to know to start your day. Brought to you by Interactive Brokers at a sound six thirty three on Wall Street where it's sixty degrees in Central Park, dealing with an accent on the westbound l a lower level by the b Que. Details coming up in traffic. First Michael Barr with more of what's going on in New York and around the world. Michael, thank you very much. Nathan New York Governor Kathy Hock will introduce a new package of gun reform bills aftermass shootings in Buffalo and Uvaldi.

It is a total of ten pills that would tighten New York's gun laws and close loopholes. Among the proposed legislation is increasing the minimum age requirement by 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 New Valley, Texas. Texas State Democratic Senator Roland Gautierres, who represents you Valdy, says he is calling on Governor Greg Abbott called a special session of

the legislature to address the shooting. 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 Gutierres 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 deleting posts and accounts. Bloomberg's aid Baxter as the story. The hold will allow a constitutional

challenge to go forward in a lower court. The tech groups Meta, Twitter and Google. I'll argue the law which 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 met Baxter Bloomberg Gaybreak, Sacramento. Kelly, California has found a third probable case of monkeypox, even though health officials have said monkey pox is not easily spread. Both had contact with the first patient, who had traveled to Europe and came back with it. Fifteen monkey pox cases have now been confirmed in the US, with more being suspected. It is a new name for a new ELI Double R terminal. Governor Kathy Hukel says it will

be called Grand Central Madison. For twenties four years now, we've been hearing about this project, and everyone always just thought, so it'll get done some day in the future. The future, the future, the future is. Governor holcl says, the East Side Access Terminal Laimes to bring six more traffic into Manhattan from Long Island at peak times. Global News twenty four hours a day on air and on Bloomberg Quickdake, powered by more than twenty seven hundred journalists Antalyist and

more than a d countries. I Michael Barrn, this is Bloomberg, nath Okay, Michael, thank you. Albo six thirty six on Wall Street. Time for the Bloomberg Sports Update with Jock Stas shower As Nathan June begins with the Yankees best record baseball. The Mets, owners of the biggest lead Yanks, improved the thirty four and fifteen met the Angels stadium nine to one. They finally scored runs for George Montgomery. Every Yank had a head except Darren Judge. Even Joey

gallow had two hits. Mets, also at home, being Washington, tend up in their thirty four and seventeen They've got a tenant ap game lead in the n L A seventeen met hits. In their fifth on the row, the Mets have sent the struggling Dom Smith down to Triple A Syracuse. He was batting just one eight six hit three sixteen years ago. Stelen Cup Playoffs Game one in the West and it wasn't designed until the fourteenth goal of the night. Landi Scog tried to get it out.

He does the center rice through the legs a tricycle interceptif by Landiskog feet from Barry Landi Scott open net ye patcha oh, Captain, my captain, mix it eight for the Avalanche with twenty one point four seconds to go in the third of this place has erupted and vor Colorado beat Edmonton eight to six Rangers in lightning tonight at the Garden to start the East Finals. Tampa Bay, winners of ten consecutive playoff series, just swept top seed Florida,

two time defending Stanley Cup chance. The last NHL three pet was the Islanders in the early nineteen eighties. The Rangers swept the regular season series with Tampa thirteen time French Open, champ Rapfield and the Alley to the semifinals in Paris. He beat Novak Djokovic in four sets. The

match went over four hours, ended past one am. Battle of Americans Cocoa coffeets Loan Stevens the eight teen It All Golf into her first brand Snap Semi, John Stanshaward Bloomberg Sports, Nathan all Right, John, Thanks six thirty seven on Wall Street. Let's get bored down on the path ahead for the FED as the Central Bank begins this month by beginning to unwind it's eight point nine trillion dollar balance sheet. Bloomberg Economics correspondent Michael McKee is with

US Live Myke good Moarning. There's been so much focus, of course, for investors over the last several months, about the path for interest rates. Now this second tool is about to be deployed by the Central Bank. What's the potential impact here. That's a very good question that I don't have an answer to, but neither do FED officials.

Coming to Chris Waller the other day, they said the potential range of impact is very wide because this is only the second time this has happened, and we're talking about such huge sums of money over a period of time that the FED doesn't really know that. Their best guesses maybe quarter percentage point increase in rates spread out over a year. The worst case scenario is maybe we get a hundred and fifty base points of of movement. So they're gonna be watching it closely to see what happens.

But it's gonna be a while till we see any kind of reaction because they're only starting with thirty billion in treasuries and seventeen and a half in mortgage bonds UH a month for three months until it starts to really ramp up, So it'll be a while till we see any kind of UH impact. There won't be a lot of sales yet or roll off yet, no sales roll off. As you mentioned, this is only the second time that we've seen a balance sheet unwind, so we have I guess a little bit of precedent here after

the two thousand date crisis. What kind of insight is the FED looking at given how they unwanted the balance sheet the first time around. The biggest problem they ran into is when reserves got low enough, there was a liquidity squeeze and that caused market eruptions at the short end of the FED had to come in and say we're gonna stop raising interest rates, and that sort of

turned things around. Now they've put in place the reverse repo facility where if you're a dealer and you have securities, can go to fact and get cash if you need it. If there isn't a market for your security. So there at this point confident that they've got that problem solved. Um beyond that, it becomes sort of a question of how fast do interest rates react at what tenors, and then question of just the overall balance sheet and how small or large does it need to be, which they

say they can't know until they get there. Man, we're gonna have a few months to take a look at what the impact is going to be as this balance sheet on wine gets underway starting today. Bloomberg Economics correspondent Michael McKee, thanks for being with us this morning. Looking ahead to the market open, UH futures are sort of waiting c mode right now, with SMP futures down to point down, futures up seventy nine, NASTAC futures are lower by almost twenty four points now. The ten your treasury

is down three thirty seconds. The yield two point eight five percent, yield on the two year right now two point five seven percent. NIMEX crude is higher by one percent. A gate of a dollar thirty five for a hundred sixteen dollars three cents for a barrel of West Texas Intermediate, you're listening to Bloomberg Daybreak Bloomberg eleven three oh weather more clouds and sun chance for afternoon showers and storms

today with highs in the low seventies. More showers possible tomorrow afternoon low eighties, clearing up her seventies for Friday right now sixty degrees. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg Quick Tape. This is a Bloomberg Business flash and I'm carrying Moscow. Future is little change this morning. We get to the first word breaking news dance for today's morning call, and here's Bill Maloney

build a morning. Hey, good morning, Karen. US futures trading mixed right now at death futures hired by ninety five points, SAPs are upper point, nastic futures althower by twenty. The US ten year at two point eight six percent, in gold is down seven oil is climbing, and Bitcoin trading lower by point six percent. Shanghai was a little changed overnight,

while your PM markets are quiet this morning. And back in the US on the economic front at ninety five I s M Manufacturing p M I at ten o'clock construction spending, and at two o'clock the Fed releases it's beige book after develops Night's salesforce raised its guidance, shares her up nine percent in the pre market and other news and Marsbergen is buying back a billion dollars in stock and for pre holding ZPs beat estimates, grabbing things up.

Still there was cut to underweight over at JP. Morgan live from the first breaking newsscomb the Maloney Karen all right, Bill, thank you and to hear live breaking news of your Bloomberg time squawk on your termin I'll ascue you a w u K and that's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. President Biden

is promising to meet with members of Congress on gun reform. Yesterday, the President meeting with New Zealand Prime Minister just Send to Ardur and praised her in passing a ban on military style semi automatic weapons after a white supremacist killed fifty one Muslim worshippers in the Biden administration is sending an additional seven hundred million dollars worth of weapons and

defense systems to support the Ukrainian military. In baseball, the Yankees one, the mat shutout the Nationals, the Red Sox Orioles and A's lost the Giants one in the NHL Eastern Conference Finals tonight, Game one as the Rangers host the Lightning Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than twenty seven hundred journalists and analysts in more than a

hundred twenty countries. I'm Michael Barr. This is Bloomberg. The following commentary is from Bloomberg Opinion, the calumnist for Bloomberg Opinion. Investors in bitcoin and other digital assets have been pummeled recently by the longest losing streaks since two thousand eleven. If that's you, you might be glad to hear that there are ways to ease some of the sting of those losses. Act promptly and you can cut your tax

bill for next April and beyond. That's because the i r S allows taxpayers to use losses in stocks and other investments, including crypto, to offset gains if your losses exceed your total gains for the year, you can deduct up to three thousand dollars against your taxable income. Losses beyond three thousand dollars can be carried forward every year until death to offset gains in future years. What's more,

crypto investors get a special deal. Unlike stock investors. They don't have to wait thirty days before selling and rebuying the same coin again. I'm alexis le Honest. For more opinion, please go to Bloomberg dot com, slash opinion or OPI and go from the Bloomberg terminal has been Bloomberg Opinion and bloomerg Opinion commentaries. Give me heard every weekday at this time and terminal customers can read more at O P I n go. It's like fifty on Wall Street.

We turned to news and science and technology now, but the Bloomberg and j I T STEM Report brought to you by New Jersey Institute of Technology, one of the nation's leading polytechnic universities and a top military friendly school. Learn more at n j I T dot E d U slash Veterans. Now. Here's what's making news and science, technology, engineering, and math. China is planning for years of COVID zero

with testing sites in almost every corner. Tens of thousands of lab testing booths are being set up across the country's the largest and most economically vital cities. The goal is for residents to always be just a fifteen minute walk away from a swabbing point. And the UK consumers are being urged to brace for inflation getting worse before it gets better. The British Retail Consortium said that fresh food prices are now rising at their fastest pace in

a decade. It says fresh food roast four and a half percent in the year that ended in May. And the world's richest man appears to have had it with this whole working from home business. Tesla CEO Elon Musk waited on the debate on Twitter by elaborate rating on an email he apparently sent to the electric carmaker's executive staff. I know the subject line remote work is no longer acceptable.

Musk wrote that anyone who wishes to do remote work must be in the office for a minimum of forty hours per week or to part Tesla and as the Bloomberg and J. A. T. Stem report, Nathan, all right, Karen, thank you, we are live from the Bloomberg interactive broker studios where it's six one on Wall Street time now to check what's going on in d C. Some of the top stories in our nation's capital include President Biden promising advanced weapons systems to Ukraine, Treasury Secretary Yelling saying

she got it wrong on inflation last year, and the Biden administration devoting more than two billion dollars to bolster food supply chains. It's good more on all these stories now, Bloomberg Government reporter Emily Wilkins joins us now, Emily, good morning. So we got this op ed from the President last night promising even more military support to Ukraine. Give us

more details here. Yeah, So what is really unique about this, Nathan, is that Biden is talking about their sending these weapons systems to Ukraine that are going to be able to shoot a longer missiles further away targets. Now, initially there was some concerned about this because the thought was, well, what if Ukraine begins to target things actually within Russia

and why is up expanding this war? But we are really at a point right now where if you look at the ground games, you look at what's happening in the don Bus region in the East. Um, this war has really shifted in nature, and Biden has said that he is going to try, uh, you will be sending rather weapons that are going to be able to hit targets at further distances. UM. The White House plans to announce a seven hundred million security assistance package to Ukrane today.

That of course is coming on top of billions more that the US has sent to Ukraine. UM. And at this point there still seems to be UM, still pretty high bipartisan appetite. It wasn't as high as it was a couple of months ago uh as far as sending funding to Ukraine, but there's still a very concentrated effort in d c UH to make sure that that the Ukraine gets whatever since assistance, its assistance it needs from

the US. Yeah, as we await this announcement, Emily, what does this say about how the Biden administration sees this war progress? And given that they are promising these sort of mid range missile systems, well, we know that this war it is going to be lasting awhile, and everyone seems to kind of be hunkering down and suddling. And for that, I mean, I think you you saw that when you saw Congress pass a funding package that had

such a high price tag on it. You know, even though Biden has been giving out this funding and Ingerman's kind of up, Congress is allocated, you know, tens of billions expecting that this war is going to go on for a while and that the White House is going to need that funding. Um. Bidon didn't make it clear, and his up ed. You know, the the US is not seeking a war between NATO and Russia. Um. You know, as much as he disagrees with Putin, they really do

not want to escalate it. They do want to find a diplomatic solution. But they also want to make sure that Ukraine has what it needs to really fight back against the Russian invasion. And you have to think, Emily that the Biden administration is hunkering down for an even longer war against inflation, given the comments we heard yesterday from Secretary Yelling saying she was basically wrong about inflation

being sort of temporary. Yes uh, Yelling just came out admitted on CNN yesterday um that she had been wrong when she predicted last year that higher inflation would be a long term problems. She said that you know, there were so several unanticipated things that happened that she couldn't have predicted and that she didn't fully sort of take

into account all of the various circumstances um. And at this point, what she said that where we're at now is in this period of transition um that you know, we're not expecting to see these huge job gains monthly job gains going forward, but they're trying to look at a stable growth and really bring inflation down. She said that she felt the FED was doing what it needed to do at this point, uh to address high inflation UM.

But at this point, I mean, inflation is still expected to be high throughout at least this summer um, if not to the end of the year. Yeah, it's interesting as well to hear those president comments from President Biden yesterday when he met with the FED chair J. Powell, sort of saying that he wants to give the FED

the space it needs to tackle inflation. You have to wonder though, whether there's a political impact for the President when he sort of shifts responsibility for tackling sky high prices over to the central bank as opposed to the fiscal side. Well, I mean, na said I don't think most Americans look at the grocery store, look at high prices and say, oh, the FED. Most of them they blamed, They blame Biden, they blame the president, they blame the

person who is in charge. UM. And and that's just going to be the nature of the political impact here. I mean what I think what the context to look at what Biden is saying UM is simply that he's trying uphold precedents of the independence of the FED. That was something that we saw his predecessor, Donald Trump kind of challenged while he was in office as far as

trying to give the FED direction and instruction. Biden's trying to sort of return to the precedent that was set before that kind of leaving the FED, having them have their independence, and trying to be hands off in that department. Think about thirty seconds left here, Emily, But what's the sit down? So what we're expecting from the Biden administration on food supply chains? Yeah, so the Biden administration is going to be announcing two point one billion dollars just

to help food supply change. This is gonna expanding small and midsized processing plans, helping farmers obtain new infrastructure like cooling facilities and helping farmership to organic products. Of course, Nathan, this all comes after the shortage and baby formula. Biden is going to be meeting with a number of infant formula makers to day in the White House. Not on the guest list is Abbot Industries and they're the ones whose factory in Michigan was shuttered over safety concerns earlier

this year that led to the current shortage. So between omission there, Yeah, certainly Emily Wilkins of Bloomberg Government will be watching for developments as that meeting gets underway with the baby formula manufacturers. You pready read much more on all these stories at Bloomberg dot com or on the Bloomberg terminal, and listen to Bloomberg Radio in Washington at Bloomberg one and one oh five point seven FM HD two. Get ready to open the trading month. Futures little changed

at the moment right now. S and P futures are little changed. To the downside. DAL futures up eighty one points, NASTAC futures are lower by nineteen points. The tenure treasuries down four thirty seconds yield two point eight five percent. Bloomberg Surveillance up next with Tom Keene, Jonathan Farrell, and Lisa Bramowitz for Karen Moscow. I'm Nathan Hagar, and this is Bloomberg