Bloomberg Daybreak: June 14, 2022 - Hour 1 (Radio)

rate setting meeting this morning. We check the markets every fifteen minutes during the trading day on Bloomberg. Right now, SMP futures are up twenty one point, staff futures up a hundred thirty four, Nastack futures are higher by ninety three points. The tenure Treasury is up nine thirty seconds. The yield three point three two percent. Yield on the

two year is three point three zero percent. Nim X screwed up six tenths per cent, up seventy one cents at a hundred twenty one dollar sixty four cents a barrel. Comex gold is down four tenths per center, or six dollars fifty cents eight for announce of gold. The euro is at one point zero four four five against the dollar, British pound one point two one to six, and the yen is at one four point to six. Head of the FEDS meeting, we get one final read on inflation.

This morning eight thirty am Wall Street Time the release of the May Producer Price Index. That is a Bloomberg business flash. Here's Michael Barnew with more on what's going on around the world. Michael, thank you very much, Nathan. Ukrainian President Vladimir z Lensky says the battle over the Donbas region will be one of the most brutal in European history. Ukrainian military officials say their troops have been pushed out of a key city in the East and

are in desperate need of additional military aid. China has released a long detained Bloomberg News employee, Hayes Fan, has been released on bail after more than a year in detention. She was held on suspicion of national security law violations. The case remains under investigation while Fan is on bail pending trial. In Game five of the NBA Finals, and Celtics are on the brink of elimination. Boston lost to the Warriors one oh four ninety four in baseball. The

Nationals in Oioles lost the Giants. One Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barn This is Bloomberg, John, Michael, thank you, five forty nine on Wall Street. We are live from the Bloomberg Interact and Broker's studios. As you heard Nathan say, Monday's plunged, plunged, erased one point three

trillion dollars in market capitalization. Uh, seeing some signs of relief this morning. Maybe We're joined now live by Bloomberg's Johanna Austin Gird Bloomberg News Cross Asset reporter. What do we need to see for signs of a capitulation in markets? Joanna? What?

What are market participants telling you? Yeah? Well, John, you always look for something like elevated volatility and just a real d up where it looks like everybody's given up right, And so some people are saying, we need to say physics of a forty, for instance, and it's in the low thirties right now. But it's also true that, you know, there can be market dynamics that don't really make that happen, and you can have not quite a capitulation, but things still go up from there for a long time. So

so we'll see. But at this point, a lot of people are saying it doesn't really look like everyone's given up quite yet. The p p I this morning, could that be even more important than the consumer price index for stocks and where we're gonna get a taste of margins for companies right, Yeah, definitely. And the main thing is it's kind of on top of the CPI, right that if you if you just had one thing in isolation, one might be more important to some people than another.

But coming after everyone is so nervous now about what happened with the c p I, it looks like that could be really important. Becuse if everybody is already nervous that, you know, it'll just add to that if we see signs that inflation is really staying hot. All right, so what is the FED betting right now for tomorrow's meeting? Well, at the meeting starts today, but tomorrow's decision and the

meeting's coming up. Mhmm. Yeah, it's pretty incredible that we're at basis points basically, with some people talking about a hundred I mean a full point the hike, So you know, there's a lot of uncertainty about it. But as people look at what the Fed had to do in the past to get inflation under control, and of course at that point, you're looking decades in the past, right, so things would have been a lot different in many ways. But we're looking at a pretty big hike at least

in what markets sur pricing at this point. Yeah, we have a headstocks and bonds moving in tandem lower. So that kind of begs the question, what's the alternative for investors? Is it just cash at this point? Yeah, well, cash or if you try to get into kind of safe for stocks. Energy stocks have done pretty well this year, but it is hard to find a place to hide. Even hedges can be somewhat expensive. So yeah, investors have had a pretty rough time of it in the past

little while here. Yeah, and with the rates in play and the rate differentials across the world, you see the dollar increasing and I as a cross asset reporter I gotta ask you, what does that do to dollar flows for foreign investments into the US that could, as they have in the past, prop up markets. Yeah, well, it definitely isn't great for a lot of nations, you know, like some of the Asian countries for instance. Um, but you know what I mean this this happened during the pandemic,

the height of the pandemic as well. You get the nervousness, you get the dollar higher, and you know, some other currencies suffer. That affects the imports and exports. But overall, I mean, people are kind of figuring that there will be the the dollar will be stronger just because of what the Fed is doing, the yen weakening because go o j is kind of staying where it is. So yeah, um, it's not exactly easy, but that's somewhat anticipated. All Right, Joanna,

always a pleasure appreciated from Singapore. That will explain the delay this morning. Joanna Hassager, Bloomberg News cross Asset reporter Nathan all Right, good to know, John. Thank you, five fifty three on Wall Street Time now for our Bloomberg Law Report. Let's get to the legal stories we're watching

this morning. Here's Bloomberg's Jeff Balinger. The Government Accountability Office identified five new priority recommendations for the i r S, including a suggestion that the agency be more transparent about its backlog of unprocessed pack documents. A former a MC employee is proposing a class action against the theater chain because it pays workers in New York State on a

bi weekly instead of a weekly basis. Former employees of the Wingstop chain or suing NCR in Illinois charging the cash registers that collect their fingerprints violated state privacy law. 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. All right, Jeff, thanks, Now, another legal story we're watching. Former President Jimmy Carter has

stepped into an environmental dispute in Alaska. A three judge panel of the Ninth Circuit upheld a Trump era land swap that would allow an isolated town to build a road through a national wildlife refuge. It's part of the National park Lands established when Carter signed his landmark conservation Act, the Alaska National Interest Lands Conservation Act. Former President has filed a brief supporting conservations who want the full Ninth

Circuit to rehear the case and for more. Bloomberg's June Grosso speaks with Pat Parentell, environmental law professor at the Vermont Law School, that it's not often that a former president puts himself in the middle of a legal battle. This road was part of the deal called a Nilka the Alaska Lands Bill, which Jimmy Carter famously signed, saving over a hundred million acres of pristine wilderness in Alaska.

So the deal and a Nilka was you were going to put this road through the Tongas National Forest part of the Grand Compromise on the Alaska Lands Bill. And that's why Carter weighed in and say, wait a minute, you're renegging on the agreement that we reached. Do you agree with the argument that if this ruling is allowed to stand, then future secretaries of the Interior, future administrations could use this as a president to start carving up

the land. You know, it creates a loophole, and you have to look at every instance of can you use the loophole to do something that isn't anticipated by the agreement? You know, in each case is different, but Yeah, I mean, any time you go back and revisit what I think it's fair to say that there was an agreement at that time that the Tongus was going to be left intact. It's the largest, by the way, the largest carbon forest in North America. It's that kind of really unique resource.

So yeah, anytime you know, you can revisit a deal and open it up for further discussion, that raises the question of whether any deal is ever sacristans. It seems like it would be something the Ninth Circuit would take on bank since it was a two to one decision. Yeah, and it was kind of out there from the academic analysis, you know, the people that study that particular road project and its history have written that the Ninth Circuit should.

In fact, there's a whole group of law professors on warm them signed an amicust brief saying you really to take another look at this because it goes against the deal that was cut back in the seventies. Tell us a little bit more about why you think the ruling of the three judge panel was not correct. They didn't give it really any deference to the original agreement that this forest was not going to be opened up. I mean, anytime you put a major road into a forest, you

change it forever. I mean you get all kinds of traffic and all the activities that are associated with that. You know, roads introduced invasive species. There's all kinds of things that happened. You know, you access remote areas where they're grizzly bears and wolves, and then there's poaching, and so there's all kinds of negative consequences from roads. It isn't just the road itself. It's what the road brings into the forest. That's Pat Parente, environmental law professor at

the Vermont Law School, speaking with Bloomberg's June Grass. How You can catch more of that interview, plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or downloading the show at Bloomberg dot com slash podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal

at blog Go. Bloomberg Daybreak continues. This is Bloomberg broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg in Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one oh six one to San Francisco, Bloomberg nine six to the country, Sirius XM to the one nine team, and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak's five three on Wall Street. Good morning, I'm John Tucker and I'm Nathan Heger.

We're about four hours away from the open of US training. Let's get you up to date on the news you need to know at this hour. The SMP five finished yesterday's trading more than twenty low, its last record close, entering a bear market. Currently, SMP futures are bouncing back. They're up eighteen points even with the sell off. Defiant c t F Chief investment Officer Sylvia Jablonsky tells us there is reason for optimism. We're in the first half

of the year. It's not even over yet, although it feels like a decade, and earnings are still looking strong. Consumers strong, Carbor balance sheet are strong. I know there's a lot of debate about that, but the numbers and the big large you know, the larger macroeconomic factors are still fairly positive. Sylvia Jablonski, with Chief Definance c ETF, says investors could see higher returns this year if inflation and supply chain bottlenext ease still forward traders, It's all

about the FED right now. The Central Bank begins it's today policy meeting. Today, reports indicate the Fed could raise rates by seventy five basis points. That would be the highest high since n Well ahead of that decision, John Big Us banks are signaling more concerned for the economy. Investor fears of stagflation at the highest since the two thousand and eight financial crisis, according to Bank of America's

monthly fund manager Serve Morgan. Stanley CEO James Gorman says he sees the risk of a US OR session at about fifty attorney to oil. Crude is holding steady around one d twenty two dollars a barrel. Now we're learning the White House plans for President Biden to visit Saudi Arabia next month. SMP Global Vice chair Dan Jurgen says, even if the Kingdom increases production, it may not have

much of an impact on prices. The markets are very tight, and so even though he would expect that with what's happened to the overall it seems to be happening to the overall economy is slowing, it's not showing up, and yet in demand for oil. SMP vice cheer Dan Jurgen speaking with David West on Bloomberg's Balance of Power. Catch the program weekdays at noon Eastern on Bloomberg Radio and TV. All right, let's turn to corporate news, John and to Twitter. Now.

Elon Musk is set to address staff at the company directly this week. Bloomberg's Grenida Young joins US Live with Morgan. Good morning, Grenia, Good morning, Nathan Bloomberg. Sources say this will be the first time Elon Musk addresses Twitter employees since agreeing to buy the company for forty four billion dollars, and Musk will take quests at the Thursday morning virtual meeting. The company has been in a chaotic state since the deal was announced in April. Musk has been critical of

the company, had questions the amount of spam accounts. Meantime, Twitter CEO has announced a series of cost cutting measures since the deal came together. Live in New York. I'm gonna need a young bloom birth day break. All right, thanks for data and ahead of the can show up on the Wall Street down the issues right now of one eight points, SMP futures of eighteen, that hast In futures of eighty five points, and that brings is three

on Wall Street. Time to bring in Michael Barr with more on what else is going out of New York and around the world. John, Thank you very much, Sarah. New York has expanded legal protections for people seeking and providing abortions in the state. Governor Kathy Holcal signed legislation anticipation of the U Supreme Court potentially over ruling its three Roe v. Wade's decision, which established a constitutional right

to abortion. This is to the right to control our own bodies was supposed to be well settled president by now,

or so we thought. Governor Houkel says the new laws planned to give abortion providers thirty five million dollars to expand services and boost security and anticipation of an influx of out of state people seeking abortions in New York, Attorney General Merritt Garland confirmed he watched the committee's hearings closely on the January sixth Capitol riot, even as he faced his increased pressure to investigate former President Donald Trump.

Garland didn't comment on the current status of a possible investigation against Trump, but at this point this investigation is proceeding, acquiring effects and the law a g Garland as Trump's top government officials and even his family were dismantling a false claim of twenty election fraud ahead of the January sixth attack on the Capitol. The four GOP candidates running for New York governor debated topics last night from crime,

the economy, and former President Trump. During the debate aired on CBS two, Andrew Giuliani, the son of the former New York mayor, was asked about the hearings. You know, the media has been fixated on January six for the better part of a year and a half now, and I would like to see a Congressional hearing on the two hundred and seventy four riots that happened between May of and June of January five one, rather than just a one day where the video is completely focused on.

Giuliani is a former advisor to Trump. Other candidates at the debates US Representative Lee Zelden, businessman Harry Wilson, and former Westchester County Executive Rob Astorino Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg, John, Michael,

thank you. It's now five thirty five on Wall Street and that's time to the Bloomberg Sports Update US John Stash all right, Johnny. Golden State Warriors, of course, led by Steph Curry. That was obvious in Game four in Boston when Curry scored forty three points, but last night, Curry did not make a single three pointer shot. Oh for night ends the streak of two hundred and thirty three games in a row with at least one dating back to November of two thousand eighteen, and the Warriors

still won. They got twenty six points from Andrew Wiggins. They began the fourth quarter with a tend nothing run. They beat the Celtics one oh four ninety four first time in the playoffs. The Celtics have lost two in a row. Warriors lead in the NBA Finals three to Game six is Thursday in Boston. Golden State a chance to win a fourth championship in the last eight years. We'll see if NBA Commissioner Adam Silver can hand out the trophy. He missed last night's game COVID Protocols. Yankees

and Mets both home tonight. Red hot Yanks host Tampa Bay. Since losing a couple of games to the Raise, The Yanks a going eleven and one Mets take on Milwaukee the Braves one again. They hit five home runs. They won nine five in Washington, although they lost Ozzie Albis to a broken foot Atlanta twelve and oh in June, and they have five games behind the Mets. Phil Mickelson met the media and ball as he gets ready to play the US Open that starts Thursday. Asked repeatedly about

his decision to play the new Live tour. Field did mention the money, incredible financial commitment. But more than that, uh, for for all the players involved and everyone involved. But more than that, there are other factors that with fewer tournaments, it allows me to have more balance in my life. It allows me to do things that are off the

golf course I've always wanted to do. He understands the criticism, including that from fellow players, are sticking the PA John stactually Bloomberg sports John, all right, thanks John, five thirty seven. Old Wall Street tied down for the Tri State Business Report. For that, we're joined by Bloomberg's query. Subway Restaurants is considering moving to Fairfield County, Connecticut, where its operations began,

and leaving its current Milford headquarters. The sandwich chain says it's exploring options in northeastern Fairfield County to create a world class work environment for its employees. The International Brotherhood of Electrical Workers opposes a bill awaiting the signature of New York Governor Kathy Hoco. According to New York Focus, the measure would place a two year moratorium on new fossil fuel power plants that would be used by the

crypto industry. The state of New Jersey is fighting over how to spend about eleven billion dollars in surprise tax revenue. Governor Phil Murphy says he wants to issue nine hundred million dollars in taxpayer relief checks, apply at least one point three billion dollars toward debt reduction, and save money for an emergency. Others disagree with his plan, though they say a financial crisis is approaching. That's your Bloomberg Try State Business Report. I'm Ed Corey. All right, thanks Aid

on Wall Street. Bloomberg Radios on the year from San Francisco to New York, London to Hong Kong. Let's second now with our global news team for some of the top stories heard on our three hundred Affiligate radio stations around the world. I'm Steve Potas Ted Ted Winds in New York. We're talking about how the Bloomberg fed indecks finds bankers are not rushing back to the office amid a recent COVID surge. M Corneys on a Hoe on w h F and Looisville. The maker of Jack Daniels

is planning to sell freemix. Jack and Cooke can podcast time Genus Servetti. And for w BBM in Chicago, I'm reporting that cash register maker NCR faces a potential class action in Illinois for allegedly collecting restaurant workers fingerprints without permission. Hi make Cory on w w J in Detroit. I'm reporting eleven Co America brankers in Michigan are closing. And those are some of the stories are Bloomberg journalists and analysts are working on this morning around the world is

now five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. For too long, a common sense agreement to fix America's gun laws has seemed out of reach. A new effort in Congress offers reason for optimism. This week, ten Senate Democrats and ten Republicans compromised on a framework for what will likely be the most significant gun control legislation the US has scene in years. Their

plan won't please everyone, but there's no question it represents progress. Importantly, it will encourage states to enact red flag laws, which allow courts to temporarily remove firearms from individuals in crisis. It would also ensure that domestic violence records are more widely included in background checks and boost penalties for gun trafficking. The framework is modest, no doubt, and ought to be

a starting point for wider change. But after a decade of Congressional inaction on gun safety, every step forward, big or small, should be welcomed. This editorial was written by the Bloomberg Opinion Editorial Board. I'm David Shipley. For more Bloomberg Opinion, please go to Bloomberg dot com. Slash opinion or OPA and go on the Bloomberg terminal. This has

been Bloomberg Opinion. Bloomberg Opinion editorials can be heard every week day at this time, tribal customers can rebore at O, P, I N go now as a futures right now, after yesterday's massive sell off, they are up nineties six points SMP futures of two and at our futures right now one thirty five points higher. This is Bloomberg and the Bloomberg weather for it today from meteorologist Rob Caroline. Morning cloud's in the city with a chance of a stray

sprinkle or maybe an isolated shower. Otherwise it's going to turn partly Sunday today. High temperature in the mid eighties. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Tape. He's a Bloomberg Business Lash. I'm Nathan Hagar. Futures are bouncing back. Treasuries has sent a four day sell off, a market route driven by expectations of sharper Federal reserve interest rate hikes to fight inflation. Looks like

it could be ending at least at the moment. We check the markets for you every fifteen minutes during the trading day on Bloomberg. Right now, it's a p futures are up sixteen points, Staff futures up ninety Nasty futures are higher by eighty points. The acts in Germany down three tenths of one percent now. The CAC in Paris is a lower by six tenths percent ten. Your treasury is up ten thirty seconds. The yield almost three point three two percent on the tenure note build on the

two year three point three zero percent. Nim X screwed up about a half percent, up fifty four cents at a d twenty one dollar forty eight cents of barrel comes. Gold is down four tenths per cent, or seven dollar sixty cents at eighty announced. The euro one point zero four five five against the dollar British pound one point two one four eight. The end is at one thirty

four point to four. Federal Reserve kicks off it's two day interest rate setting meeting this morning, a decision expected tomorrow. Ahead of all that, a final read on inflation eight thirty Wall Street time, when we get the May producer price index. 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. They Kim Donald Trump school US his campaign advisors were dismantling his false claims of twenty election fraud ahead of January sixth attack on the Capitol. During yesterday's House here In, former Attorney General William Barrs said the defeated presidents seemed detached from reality. President Joe Biden is sent to be traveling to Saudi Arabia next month.

Biden plans to meet Crown Prince Mohammed ben Selman. China has released a long detained Bloomberg News employee, Hayes Found has been released on bail after more than a year in detention. She was held on suspicion of national security law violations. The case remains under investigation while Found is on bail pending trial. Game five of the NBA Finals, the Celtics are on the brink of elimination. Boston lost to the Warriors one oh four ninety four. In baseball,

the Nationals in Oioles lost the Giants. One. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalist and analysts and more than a hundred twenty countries. How Michael Barr, this is Bloomberg done right, Michael, thank you. It is now five twity on Wall Street. We're live from the Bloomberg Interact of Brokers Studios. This is Bloomberg Daybreak. The SMP five d erased one point three trillion dollars

in market capitalization and closed in a bear market. So what's next. Let's get you set up for the trading day ahead. We're joined by Patrick Palfrey, co had of Quantitative Research and senior equity strategist at Credit Sweets. Patrick, do you see signs of capitulation in the markets? Well,

there are certainly signs of capitulation yesterday. I think what's interesting when you look at the price action amongst sector, you see that energy was among the worst performing sectors, despite the fact that we didn't see any material move

in oil. And I think what it comes down to is the the pain that a lot of individuals are seeing on Wall Street and the areas where they have the ability to take profits, and that's I think why we saw them probably move more aggressively than I there's other sectors, but I think we we do see signs

of capitulation. Whether or not it is design of capitulation that investors are looking for, I think that remains to be seen, particularly with the volatility we're seeing not only with equities, but within UH commodities, within currencies, and probably most importantly within fixed income areas of the market. Yeah, and VIX, the Wall Street fear gage that's been elevated but still only around thirty two. Does that need to

go much higher before we might see a bottom. Well, I think the VIX moving higher from here is going to be more difficult. What we're actually seeing right now is that it should be more elevated. UM. When you look at realized ball versus traditional VIX, what you see is realized ball is typically six points lower given the cost of hedging in in the VIX, and what we're seeing is that two of them are actually pretty close

to par. And what that reflects is actually the demand for downside protection UH put buying, as judged by this Skew index is actually UM not nearly as elevated as we would have expected, and it really reflects the fact

that we've had an elevated VIX for a while. Many hedge funds have taken down the risk profiles of the book, so they need to UH dramatically hedge their positions is actually diminished, and that's why we're not seeing the VIX as high as it needs to be, and I don't think we're really going to see it move much higher from here. Okay, so what is the course they had for the feeder reserve? Well, I think we look out

to this week's meeting. There's there's a lot of talk potentially of seventy five basis points, even discussed in the clients. I hear the possibility of of a whole point move in UH. In reality, I think the set has been incredibly meticulous and how they're telegraphing their response. I don't think that we're going to see a one percent move.

I do think it is possible to see seven five basis points, but it's hard for me do envisioned something beyond that, just given how careful this that has been in crafting their message and the fact that they've actually accomplished much of their goals here. When you look at the yield curve, they've they've already dramatically tighten financial conditions. UM so, so they're reaping the benefit of um, the expectation of this talkish policy without actually having to implement it.

The consumer Price Index, well that's one thing, but we uh, do we get a better picture of what to expect from company margins, uh the input prices with the PPI this morning? I think we will. And what we've seen is the PPI has been running ahead of CPI, reflecting

I think the pressure that companies have been seeing. One thing I think that's important to keep in mind is there's a fixed cost point for many companies, particularly old economy or value oriented companies, which actually can lever machinery and equipment and land and in in real estate, in other long life assets. So for those companies, they don't need to pass through everything to reap the margin benefits. But I think it does point to some of the

margin pressures. And I think labors are big input which doesn't oftentimes get cash in the CPI, but remains a big input to companies right now. I think margins, you know, are incrementally under pressure for certain groups UM. But I think value oriented names are still able to weather the margin pressures that we're seeing. Yeah, what's the next big thing? You're going to be looking forward today? Again about thirty seconds, Well,

I think I think this week. Um. Ultimately we need clarity on the course of of the FED hike, and I think until we see volatility come in within the interest rate area of the market, we're not going to see equity of all decline. And until that point, it's unlikely that we're going to see a maturely move forward in futures. It could be as early as as wee day, or could stick with us over the course at the summer. But there is a chart forward out of this. It's

just a matter of one Patrick, Thanks appreciate it. Patrick. Palfrey Eco had a quantitative research and senior equity strategies to add credit sueeze and ahead of the cash open of Wall Street after yesterday sell off, DAL futures of one points, SMP futures twenty three points higher and the nasday features up one hundred and five points. And you're listening to Bloomberg day pray and the Bloomberg weather for a meteorologist Ron Carolyn, some morning cloud's chance of a

stray sprinkle or isolated shower. Otherwise see partly Sunday Skies Today. The high temperature eighty to eighty five degrees s L five seven Wall Street. Time to bring in Michael Barr with more on what else is going on in New York hand around the world, John, Thank you very much. New York has expanded legal protections for people seeking and providing abortions in the state under legislation signed by Governor

Kathy Hokel. The Democratic governor pushed for the laws and anticipation of the U. S. Supreme Court, potentially over ruling it's ninety three Roe v. Way decision, which established a constitutional rights. Abortion must the hard fought battles from my mother's generation, my generation, my thirty year old daughter's generation have to be inherited by my new granddaughter's generation as well. Well.

Apparently so, Governor Hukel says. One new law protects abortion providers from arrest, extradition, and legal proceedings in other states by forbidding New York State from cooperating in most scenarios for Republican candidates for New York governor faced off last night in their first televised debate. With two weeks ago

until the state's primary election. Some of the sharpest exchanges of the night came between US Representative Lee's Elden and businessman Harry Wilson, who has said he didn't vote for Donald Trump. In Zelden repeatedly assailed Wilson as a never

Trumper and a Republican in name only. I believe that we're battling for the heart and soul of our country, and it's not just the Democrats, but it's the rhino Is like Harry Wilson, who are out there making sure that we have this moment in time with one party Democratic rule in Washington d C. Wilson responded, Now, Mr Zelden is going to go onto a series of attack. He saw him even before I had a chance to speak, just like he started attacking before I in my campaign

because he's scared, because he's a broken candidate. Wilson claimed that in January Zelden had asked him to be his running mate. The Republican field air and on CBS two also included former Westchester County Executive Rob Astorino and Andrew Giuliani, the son of former New York City Mayor Rudy Giuliani. Attorney General Merritt Garland confirms he is keeping an eye on all of the House Committee's hearings on the January

sixth Capital Ryant. However, Garland is choosing not to elaborate on the current status of a possible investigation against Donald Trump. The Justice Department's longstanding position is that we don't commenting don't comment an ongoing investigations. During a second day of hearings, former Attorney General William barr said Trump seemed detached from reality.

Global news twenty four hours a day on air and on Bloomberg quick Take, powered by more than twenty seven hundred journalists and analysts, are more than a hundred twenty countries. Michael BARRN, this is Bloomberg, John, Michael, thank you, sl five cent overalls three. That's time for the Bloomberg Sports Update. Here's Jo. Thanks John. The Golden State Warriors can win

the NBAH Championship Thursday in Boston. If they lose, they'll have another chance of the game seven Sunday in San Francisco, where last night the Warriors started the fourth quarter with the ten nothing running. They won Game five by ten one oh four ninety four. They leave the series three to All five games have been won by at least ten points. Andrew Wiggins led Golden State twenty six points,

play Thompson at twenty one. Steph Curry, who scored forty three points in Game four, did not make a single three pointer. That had not happened since November of two thousand eighteen, two hundred and thirty three games ago Mets back home for the road trip. They'll play Milwaukee, who just ended an eight game losing street. The Yankees, winners of a level of last twelve, host Tampa Bay. It's Garrett Cole for says x Yang Corey Couver. Cole comes off the outing where he gave up five home runs.

Josh Donaldson tonight will serve the one game suspension he got for comments made to the White Sox Tim Anderson. Donaldson's appeal was denied. US Open tas off Thursday. Brookline mass All Eyes Yesterday on Phil Mickelson asked repeatedly about his decision to leave the PGA Tour for the new Saudi Back Live Tour and asked about doing that when most of the nine eleven terrorists from Saudi Arabia, I would say to everyone that U has lost loved ones, boss, friends,

and not eleven that I have deep, deep empathy for them. Um. I can't emphasize that anomal All those that have joined the live tour have been suspended by the PGA. The U s g A runs the Open is allowing them to play. Michelson's never won the Open, He's been a second six times. John stash An Work bloom Brook Sports. John, all right, thanks John. Ahead of the market open on Wall Street, DALL futures four points higher, the SMP futures.

They're up sixteen. Masday futures after yesterday's sell off, up seventies six points. You're listening to Bloomberg Daybreak, and just ahead, we'll speak with Patrick Calfrey, the co head of Quantitative research and senior equity strategist at Credit Swiss. He'll set us out for today's trading live from the Bloomberg Interactive Brokers Studios. This is Bloomberg day Break for Tuesday, June two, Coming up this hour. US futures rebound after yesterday's massive

sell off. Traders bet the Fed could turn even more hawkish it this week's policy meeting. Oil prices stay high as President Biden prepares to visits Saudi Arabia, and Elon Musk addresses Twitter staffers for the first time since his takeover bed New York State expands protections from people seeking abortions. Plust the Republic up in the governor candidates debate ahead of the New York State primary. I'm Michael Barner Moore Ahead. I'm John stash Our. In sports, the Warriors beat the

South fast. They leave the NBA Final three games at two. The map of Yankees at home game tonight. That's all STrenD ahead on Bloomberg Daybreak on Bloomberg eleven three on New York, Bloomberg ninety nine one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty s and Francisco Sirius x M one nine team, and around the world on Bloomberg Radio dot Com and via the Bloomberg Business Appay. Good morning, I'm John Tucker. I'm Nathan Hagar.

US futures are bouncing back this morning. It is coming up to five oh one on Wall Street. We check the markets every fifteen minutes during the trading day. On Bloomberg. Right now, S and P futures are up twenty points. STUFF futures up nine, NASTAC futures up ninety one points. Dacks in Germany little change. The CACK in Paris is down four tents of one percent ten. Your Treasury is up thirteen thirty seal three point three zero percent yield

on the two year three point to seven percent. NIMEX screwed is up three quarters of one percent of eighty nine cents and eighty two cents of barrel comes goal down three tenths percent, down five dollars ninety cents at eight announced. The euro one point zero four six four against the dollar in the end is at one thirty four point to one John well Nathan. The SMP five hundred finished yesterday's trading more than twenty percent below its last record close, entering a bear market and ending a

two year bull run. Currently, SMB futures are up twenty two points defiant. CYTS Chief Investment Officer Sylvia Jablonsky tails US she expects more uncertainty moving forward. Inflation has been hot for quite some time. It's going to remain hot for quite some time, so until that eases up, we're probably gonna have this folatility with US Chief defiance c t F c I O Sylvia Jablonsky says inflation headwins

have gotten worse since Friday. CPI reading this quarter is set to deliver the biggest combined loss for global bonds and stocks on record. John The question for usters now is whether the Fed and other central banks tip their economies into recession to curb inflation. Central banks will get further insight on prices today with the latest read on May producer prices. That data is due at eight thirty a m. All Street time, and also today, the FED

begins its two day policy meeting. Following Friday's hot inflation reading, officials may consider a more hawkish ancest rate increase than originally planned. Bloomberg's Michael McKee gives us a preview. Surprisingly strong pickups in consumer prices and inflation expectations now look likely to spur the biggest interest rate increase since Fed officials had coalesced around a fifty basis point hike going

into their two day meeting, which begins this morning. But a big rise in the May consumer price index coupled with two surveys showing higher inflation becoming embedded in consumer expectations pushed investors to increase bets on a seventy five basis point increase. Those bets hardened following media reports Monday the central bankers would consider the your move. Economists that

major Wall Street firms were quick to change their calls. Goldman, No Mira, and JP Morgan Chase joined Barclays and Jeffreys in forecasting a three quarters point move. The FED decision will be announced at two pm Wall Street time on Wednesday. Michael McKee, Bloomberg Gaybreak. All right, thanks Mike, and join us for live coverage that FED decision on a special editional Bloomberg surveillance that kicks off tomorrow at one p m.

Eastern Bloomberg Radio and Television. We'll meantime, John, Some big US banks are signaling more concerned for the economy. Investor fears of stagflation are the highest since the two thousand eight financial crisis, while global growth optimism has sunk to a record low. That's according to Bank of America's monthly Fund manager survey. Morgan Stanley CEO James Gorman says he sees the risk of US recession at about fifty fifty. We'm likely at this stage to go into a deeper,

long recession. It's possible we go into recession obviously probably now um, but that's that's okay. Morgan Stanley CEO James Gorman made the comments yesterday at the Morgan Stanley US Financials, Payments and c Are conference, and overseas stocks in Europe treading water. They're not bouncing back from yesterday's losses. These stocks Europe six hundred index right now down one point and overnight in Asia, equity's followed US stocks lower. Bloomberg's

Juliet Sally joins US with the latest from Singapore. Juliet, good morning, Good morning, John, and Nathan. The ms c I Asia Pacific Index film more than one and a half percent inge a day, with bosses from Japan to China and Hong Kong all in the red. Australia underperformed. Does that market played catch up? Following a public holiday Monday? The Essex two hundred was down more than five percent during the day's trade. It's worth session in more than

two years. Short dated bonds across the region slumped, while the Bank of Japan boosted bond purchase operations to keep yields in check. In Singapore, Juliet Sally Bloomberg, Debriak. All right, Juliette, thank you for turning to crypto now. It's been another wild ride there. Bitcoin dropped fifteen percent yesterday. Perhaps no sectors seen a sell off sharper than the crypto market right now, Big points trading at about and oil trading

around one of barrels. Investors weigh a tight supply outlook. It comes as the White House plans for President Biden to visit Saudi Arabia next month. The administration says it won't press the kingdom to increase production, but SMP Global Vice Chair Dan Jurgen says oil will beyond the agenda. It's hard to believe that he would be going to Saudia if it wasn't for oil. I think if he does come, they'll start to put more oil to the market.

They've done done a little bit more. The thing is that there isn't much more oil in Saudi Arabia and the UAE to really significantly change the market. SMP Vice Chair Dan Jurgen speaking to David Weston on Bloomberg's Balance of Power. You can catch that program noon Wall Street Time on Bloomberg Radio and TV staying in Washington, said a Majority Leader Chuck Schumer says he'll move quickly to get gun legislation past. Bloomberg said, Baxter has the story.

Schumer says, not everything, but a drew step forward, and we have a lot of work left to do before we actually pass a bill, So working on wording. Once the text of this agreement is finalized, and I hope it will be as soon as possible, I will put this bill on the floor quickly. Schumer says it definitely does add to safety in San Francisco. I'm at Baxter

Bloomberg daybreak, alright, ed, thank you. Right now, SMP futures are up nineteen point, staff futures up a hundred thirteen NASTAC futures up eighty four points after yesterday's big sell off. Tenure treasury is up twelve thirty seconds, the yield three point three one percent, yield on the two year three point to eight percent, and I'm x screwed up seven tenth percent or eighty six cents at a hundred twenty

one dollar seventy nine cents of verrel. We get may producer prices at eight thirty Wall Street time, straight ahead, your latest local headlines in the check of sports, this is Bloomberg