Bloomberg Daybreak: June 15, 2022 - Hour 1 (Radio)

fifty or seventy five basis points today. Sell off in crypto continues as bitcoin drops to twenty thousand and President Biden takes same at oil refiners record profits, gas bump prices in the New York metro area hit a fresh record, Plus a look at Trump backed candidates, the latest GOP primaries. I'm Michael blarn More ahead, I'm John Stashower and Swords shutout. Wins at home for both the Mets and Yankees, a

near no hither in St. Louis the Stanley Cup. Parnel begins The Night That's Alls Traded 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 Syrius x M one nineteen and around the world Old on Bloomberg Radio dot Com and by the Bloombird Business APT and good morning. I'm John Tucker, I'm Nathan Hagar. Futures are on the rise as we wait to FED decision later today. It is coming up

to five oh one on Wall Street. We checked the markets every fifteen minutes during the trading day. On Bloomberg. Right now, SMP futures are up twenty points. Now Future is up a hundred forty NASTACK futures are highered by seventy one point. The tenure treasury is up fourteen thirty seconds. The yield three point four one percent, yield on the two year three point three seven percent. NIMEX screwed down eight tenths percent at a hundred eighteen dollars six cents

of arrol. John and Nathan we begin in Europe. We're in a few minutes from now. The European Central Banks Government Council holds an ad hoc meeting to quote discuss current market conditions. Let's get more now from Bloomberg Markets Live editor Lorcan roach Kelly. DCB meeting is more based on what happening markets at home to how i'm spreads of boidant, how it news have moved out and what the market WRO actual the last three or four days has been I'm not going to sure it's going to

come with it. I think it's strange that these piece holding the meeting before the FED decision. Sure they don't know what the FED decisition is going to beat themselves, but the factor having to be in it all. Jerry Markets say that is at least somewhat positive for euro Asset. Bloomberg's Lorcan roach Kelly says the Italian bonds of surge down. The news of the unscheduled meeting sources the ECB officials may designed to reinvest bond purchases conducted under the bank's

pandemic Emergency program. Other measures could be considered as well. That meant to get started in a few minutes, expected to last about two hours. All right, John, Well, That ECB B meeting comes, of course, ahead of today's highly anticipated decision from the Federal Reserve. The question there is how much j Pal and Company high grates. Michael McKee has more from our Bloomberg nine one newsroom in Washington. The new market consensus is the FED will raise the

benchmark US lending rate by seventy five basis points. The biggest increase since nine. That raises the question of what next markets have Already in another seventy five basis point move in July, investors will look to the dot plot rate forecast and Chairman j Pal's news conference for a ratification of that bet. A new median forecast for unemployment of proxy for growth may suggest whether the central bankers still think they can bring down inflation without causing a recession.

Michael McKee, Bloomberg Daybreak, All right, thanks Mike. Will it be seventy five basis points? Was summer calling for more erging Square founder Bill Ackman's is a hundred basis point hike would be better? The story from Bloomberg's Charlie Pellett, Ackman says not just today, but in July and thereafter. Instead of the seventy five basis point hyke that some economists are expecting, he said the central bank has allowed inflation to quote get out of control and calls for

aggressive action that would help restore market confidence. Writing on Twitter, Ackman said, quote, the sooner the Federal Reserve can get to a terminal FF rate and thereafter can begin to ease, the sooner the markets and recover in New York, Charlie Bloomberg Daybreak, Well, Charlie Jeffrey gun Lacks taking an even more aggressive stance than Bill Ackman. The Double Line Capital CEO says the FED should raise its target interest right to three percent today. That would be a two hundred

basis point hike. Markets are still firmly pricing in an increase of seventy five. Let's stay tuned for a complete coverage of this critical FED decision on a special edition of Bloomberg Surveillance that is coming up at one pm Wall Street time on Bloth Bloomberg Radio and Television. And ahead of that decision, we're gonna get the main reading on retail sales account's forecasting gain of just one tenth of a percent. As we mentioned, John Us futures are

hired to start the day. Still, The SMP five hundred closed down yesterday for a fifth straight session for its longest slide since January. Mark Lazarie, CEO of Avenue Capital Management and co owner of the Milwaukee Bucks, says week economic sentiment continues to weigh on markets. Everybody knows we're either getting into a recession or is going to be close to a recession. So um, I don't think there's a lot more negative news that's going to come out.

You know, the question really is going to be how long is the recession? Is it three months? Is it six months? Is it a year? Avenue Capital CEO Mark Lazie says he thinks the upcoming recession will be short. Well, perhaps no sector has suffered him the sell off as much as cryptocurrencies. At Bitcoin lower again this morning, it approaches the twenty thousand level. Right now, it is trading

down seven percent at twenty seven dollars per token. Let's get the latest line from Bloomberg's Really the Young Good morning, Good morning John. Cryptal currencies have become emblematic of a flight from speculative assets. Strategists that Glass notes say the bear market for bitcoin has entered its deepest and darkest phase. Crypto lenders Celsius froze withdrawals on Monday, coin Based announced

widespread layoffs on Tuesday. And all of this comes just a month after the collapse of the terror USD stable coin. Royal markets means I'm Bill Gates is dismissing crypto projects like n f t S as shamps, saying there quote based on the greater fool theory. He spoke at a climate conference yesterday and says he's neither long north short. The asset class Live in New York, I'm reneed a young Bloomberg day break. Now we need a thank you.

Olst Crypto falls. Oil remains sky high. Pain at the pump is palpable, and President Biden's looking to ease the strain for drivers. We're learning the Energy Department plans to sell up to forty five million barrels from the Strategic Reserve. Amy Morris has more from our Bloomberg newsroom. In Washington, President Biden told oil refiners that unprecedented profit margins are unacceptable.

He's calling for immediate action to improve capacity. He's ordered Energy Secretary Jennifer Grenhelm to hold an emergency meeting on the subject in the coming days, and the administration will hold talks with the National Petroleum Council. And he's calling on companies to explain why they've cut capacity. More than a million barrels a day of US oil refining capacity, about five of the total, has been shut since the start of the pandemic. In Washington. I'm any Morris, Bloomberg daybreak.

All right, thanks savannam X crewde right now down barrel at one seventeen six down futures up one, SMP futures of eighteen nasdack futures of sixty two. This is daybreak has five. I was setting on Wall Street time to bring in Michael barn with mora hog. What else is going on in New York? Hand around the world, John, Thank you very much, Sarah. US Representative Tom Rice of South Carolina has been anounced it from Congress and his Republican primary after voting to impeach Donald Trump over the

January sixth. Then direction Rice, who only got was defeated Tuesday by Trump backed state Congressman Russell Fry, who received fifty. Meanwhile, Representative Nancy Mace cleared the threshold to avoid a runoff against Trump. Back to Katie Errington, New York City Mayor Eric Adams is going to endorse Governor Kathy Hocle in

the New York governor's race. Hocal's campaign and adams political adviser confirmed that Adams will make the announcement today in a joint appearance with the Democratic governor in New York City. Adams endorsement comes as Hocal has pledged tougher action on gun crimes, including after the mass shooting in her hometown of Buffalo. Meanwhile, a month after the shooting at the Top supermarket store, survivors, their families and others gathered at

the scene to mark the somber event. Buffalo Mayor Byron Brown words will never convey the heartbreak and pain this senseless tragedy has caused. Mayor Brown says the shootings left ten people dead and three injured. Police in Suffolk County say at least fourteen children were injured when an inflatable slide tipped over at a Long Island park. Some of the six and seven year olds were taken to the hospital,

one with a broken leg. This seven year old was there, there's too much people house, yeah, and then so over in the hospital. A statement from the Blond Dutch School District says that the slide deflated while the kids were on it. Two police officers in el Monte, California, died in the line of duty. Athorities say the two men were responding to a possible stabbing at a hotel and were fired upon by the suspect. El Monte Mayor Jessica Kna. These men were dedicated to their careers and even more

so as son's husbands and fathers. Please keep their families in your prayers, mayor and kind of says the suspect was also killed. Pump prices in the New York metro area had a fresh record. According to Triple A. Gas prices rose to a record five one a gallon overnight for the area and five fifty for Manhattan Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than journalists and analyists more

than a hundred twenty countries. Michael barn This is bloom John, Michael, thank you now five sent on Wall Street Camp. That's time with the Booberg Sports up to Mary Morny. John Yankees and Matt's two best records in baseball Boat were at home. Both won, both with shutouts and le Bronx. Garrett Cole's outing whole lot better than one last week in Minnesota when he allowed home runs but his first

three batters and gave up five overall. Cole worked out of the basis load of jam sixth inning that ended his night. It preserved the shut out. The Yanks top Tampa Bay to nothing. It's cold, got to six and one. Clay Holmes got the safe. He's been unbelievable twenty seven straight appearances. Not allowing to run at City Field was Chris Bassett. Eight scoreless. Indians gave up just three hits.

The four nothing Mets win over Milwaukee two runs driven in by Pete Alonzo leads to nashvill League fifty nine the Guys. In St. Louis, the Cardinals, Miles Nicholas had a no witner with two outs, two strikes ninth inning. A double by the Pirates cal Mitchell on Nicholas is a hundred and twenty ninth pitch, most thrown in the Major's season. They dropped the clock on the Stanley Cup final tonight and in Denver Tampa Bay lightning off the win over the Rangers and sinking a Stanley kept three.

Pete playing Game one with Colorado, who's twelve and two in the playoffs. Bruce Cassidy fired by the Bruins. He's now the new coach of the Vegas Golden Knights to Shaun Watson, formerly with Houston. Now he's got a massive contract a quarterback to Cleveland Browns is also facing twenty four accusations of sexual misconduct. Watson met the media in Cleveland. I've been honest and I've been truthful about my stance. Um, and that's you know. I've never forced anyone, I never

assaulted anyone. So um, that's what you know. I've been saying it from the beginning and I'm going to continue to do that and until all the facts come out on the legal side. NFL has been investigating the matter. John Stashatward Bloomberg Sports, All right, thanks John, and uh the meeting today friendly fell to Reserve futures are green Bell futures up one eleven points, SMP futures of seventeen

and the Nsday futures of sixty twos. You're listening to Bloomberg Debris and debray being brought to about the New York Community Trust. Your name will live on as a champion of the causes you care about for years to come through a charitable big quest to the New York Community Trust. Learn more at Philanthropist dot n y C markets headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business App, and at

Bloomberg Quick take this he's a Bloomberg business flash. I'm Nathan Hagar. Futures are on the rise ahead of a crucial federal reserve policy decision this afternoon. Markets are pricing in the biggest rate hike from the US Central Bank since nine We checked the markets every fifteen minutes during the trading day on Bloomberg SMP futures right now up nineteen points down, futures up a hundred thirty one, Nasdaq

futures up sixty seven points. The Dacks in Germany is up one point one percent to Hack and Harris higher by nine tenths percent. The foot See one hundred in London is up nine tenths percent as well. The Tenure Treasury is up eighteen thirty seconds, yield three point four zero percent on the tenure note, yield on the two year three point three four percent. Nim X scrude is down one point one percent, down a dollar twenty five

at a hundred seventeen dollar. Sixty eight cents of barrol comex gold up six tenths per cent, or eleven dollars twenty cents at eighteen seventy announced. The euro one point zero four eight seven against the dollar. The pound of one point two zero nine three. The end is at one thirty four point four eight. That's a Bloomberg Business flash. And now here's Michael Barr with more on what's going on around the world. Good morning, Michael, Good morning. Nathan.

US Representative Tom Rice of South Carolina has been announced it from Congress in his Republican primary after voting to impeach Donald Trump over the January sixth insurrection. The five term congressman was defeated Tuesday by state Representative Russell Fry, who was endorsed by Trump for I received fifty one percent, well Rice got twenty percent. Brittney Griner's detention in Russia

was extended until July. In according to task, the w NBA players being held on charges the drug smuggling in baseball, the Yankees and Mets one. The Red Sox beat the A six one, The Orioles and Giants were winners. The Nationals lost. 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 Barn this is Bloomberg. John Michael, thank you. Coming

up to twenty on Wall Street. We're live from the Bloomberg INTERRNTO Broker Studios. This is Bloomberg Daybreak. There is a critical federal reserve policy decision later today with markets pricing in the biggest rate hikes since and this morning we have an emergency meeting by the European Central Bank in Europe. Let's take a deeper time this morning with Jennifer Leeves, senior accountists at BEMO Capital Markets. Jenner, if I could, let's start with the ECB. They're actually um

achieving what I thought was the impossible. They're making federal reserve policy actually looks simple. Is there sense of panic in Europe? I think there's a sense of concern. Good morning.

By the way, UM, it's kind of interesting that they that they are meeting, and obviously they're concerned about bond yields surging in in in various countries across the Europe, the European area, and the fact that last week when they met, you know, there is no discussion apparently about fragmentation UM during the during the official press press conference, but afterwards the resources that came out that said that a large majority of the policymakers were against making an

announcement on fragmentation. But obviously the way the markets have been having UM of late is causing them to think twice about it again, and that's why they're probably meeting their original strategy. It sounds like it is in all sorts of trouble today a little bit, a little bit, but you know, there's like everyone has the one goal right now, which is to you know, tackle the UM,

the big bag monster of inflation right now. But obviously it has ramifications across across countries and across the asset classes for the ethel m C the expectation basis points well policy makers deliver here. Wow, that is a very very tough question. It's it was very interesting. It's it's almost like, in my humble opinion, how can you that very now the market is fully paced in for a semified basis point hike, how can they not follow through?

I think they've almost backed themselves into a corner. And if they don't follow through, they could be seen as weak. UM. If they do follow through, or even maybe even with a larger one, you know, that would cause you know, probably a big reaction of financial markets. But at least it shows that they are sort of attacking this with you know, with with everybody on board right now, um being a lot more aggressive as opposed to do the fifty basis points and just sound more aggressive um. You know,

incoming meetings. I think it's either way. We are still expecting fifty basis points, but obviously clearly there is a huge risk of a much bigger, bigger move. Do we get some clarity on what the terminal rate there is going to be today's meeting they will hopefully give some

clarity on a lot of different areas um UM. I think in terms of the neutral rate, it probably you know, I think they're probably going to be um keeping at the upper range um and they're going to probably continue to say that we are going to lift rates until even beyond the neutral rate, and if necessary, will keep it there until you know, we start seeing inflation buckle a little bit. Um. But hopefully we'll get a lot more clarity on what they're hoping, what they're looking to see,

and what they're looking to do in coming months. What are the drivers of inflation right now? Are they especially affected by rates? When you look at things like energy and food prices for starters, so right now, OK, at the beginning, it was more of an energy story and that's something that Montre policy is not is unable to to to deal with. But as like you know, if a picture power has said many times, UM monetary policy is a very blunt instrument and it can be used

to hurt or to hit UM demand. But the supply side, that's something that they can't cannot impact. But at least they're gonna be able to impact one of the two factors that are pushing UM inflation higher, and that's on the demand side. What do you and markets need to hear from the chairman at the press conference today? I would like to hear him, you know what, I think

he's been been fairly clear. His communication has been has been very has been actually very good of late UM, and he's always been saying that, you know what, they need to see inflation coming down. It can't be just a few months. It's got to be a consistent move

downward before they will consider pausing. It would be very interesting, by the way, to see what he says about the market turmoil, whether or not that's going to impact their decision and UM you know, seeing you know, salt markets plunge the way they have, whether or not that's going to make them potentially hold back a little bit. What's your impression of whether or not there's going to be a recession? If so, will be a deep one. Oh,

very good questions that this morning. You know what, I think that there would the pot the risk continue to run ice obviously, and the longer that inflation stays high, the more aggressive the Fed continues to be. The chances of a recession in the next year are continuing to rise.

Jen always a pleasure appreciate at Jennifer Lee, senior economist at Demo Capital Markets, with this this morning and ahead of that right decision at two o'clock today, we have a futures in the green this morning after this week's sell off. The down futures right now one eight points sire that's orians of about four tens of a percent. Smp emity futures they are up seventeen points, and the dance taking many futures right now they are up sixty points.

And as we look to market volatility wall streets fear gage, the VIX is UH slightly deflated right now at thirty two fifty. The ten year yielding in the US three point four percent. That he is down six basis points. The two year yield right now at three point three four that is down seven basis points. You're less nay. The Bloomberg Daybreak an the Bloomberg Weather from bb rologist Rob Caroline Today, abundant sunshine, the heights aperture topic at

about the eight degrees tonight, partly ploudy. There's the chance of a few showers after the midnight. The Most sixty five broadcasting live from the Bloomberg Interactive Broker's studio in New York, Bloomberg Living Freedland to Washington, d C. Bloomberg to Boston, Bloomberg one oh six one to San Francisco, Bloomberg nine six to the country, Sirius XM chand A one nineteen and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. He's

five thirty on Blood Street. Good morning, I'm John Tucker and I'm Nathan Hagar. We're just about four hours away from the open of US trading. Let's get you up to date on the news you need to know at this hour. Right now, European Central Bank President Christine Lagarde and her colleagues on the Governing Council are holding an emergency meeting to discuss market conditions. We caught up with

the Finance Minister Married McGinnis ahead of the meeting. The ECP is doing its job, so I think that's important. I'm not going to second yes, the conversations that will take place at this meeting, but clearly, since the beginning of this year, and particularly since the invasion, the illegal invasion by Russia of Ukraine, there is uncertainty in markets. The Youth Finance Commissioner, Married McGinnis says the meeting should last about two hours. The ECB gathering comes on the

same day the Fed makes an interest rate decision. The question now is how much the federal hike. Let's get more from Bloomberg's thinning down Judais. Most economists anticipate another half point rate increase today, lifting the feds target range between one point two five percent and one point five percent, but some say they wouldn't be surprised if the Fed opts for something more, a larger move and expension mark

interest rate. Bloomberg Economics says the FEDS dot plot, which traces the likely path of US interest rates, could move to three percent or a bit higher next year. Any dope Bloomberg day, All right, thanksny One economists predictive fifty basis point hike. Markets are now pricing in a seventy point increase now. Futures are higher ahead of the FED decision. But it's a different story for crypto currencies. Bitcoin is lower again this morning, right now, trading at about twenty

two hundred dollars. Let's get the latest life from Bloomberg's or need a young Good morning, Greina, Good morning Nathan. Strategists at Glass Notes say the bear market for bitcoin has entered its deepest and darkest phase. Crypto lenders Celsius froze withdrawals on Monday. Coin Base announced widespread layoffs on Tuesday. And this all comes just a month after the collapse

of the terror USD stable coin royal crypto markets. Meantime, Bill Gates is dismissing crypto projects like n f t S as shams, saying they're quote based on the greater fool theory. He says he's neither long nor short the asset class live in New York. I'm Nada Young Bloomberg day Break. Thanks for nat to the international energy agencies predicting global oil supplies will struggle to meet rising demand next year. That means consumers will continue to face tight

fueld markets. Crude has climb more than fifty percent this year. Right now, not X crude is now the dollar thirty eight at one sevent and future is John are moving higher. We have SMP futures up twenty one point, Staff futures up forty four, Nasdaq futures higher by seventy four points. Straight ahead your latest local headlines in the check of sports. This is Bloomberg. Thanks Nathan. Five thirty three on Wall Street. Time to bring in Michael Barr with more on what

else is going on in New York and around the world. John, thank you very much, Sarah. US Representative Tom Rice of South Carolina has been announced to from Congress and his Republican primary after voting to impeach Donald Trump over the January six insurrection. The five term congressman was defeated by Trump back state Representative Russell Fry. Fry received ble Rice got Meanwhile, Representative Nancy Mace Clear at the fifty threshold

to avoid a runoff against Trump backed Katie Arrington. New York Governor Kathy Hokel is about to get a big endorsement today and the governor's race. Fellow Democrat New York City Mayor Eric Adams is set to make the announcement to endorse SOCOL. In a joint news conference to police officers in El Monte, California, died after responding to a possible stabbing in a hotel. L Monty Interim police Chief Ben Lowry says the officers were fired upon by the suspect.

These heroes paid the ultimate sacrifice today. They were murdered by a coward and we are grieving and it hurts. Chief Laurie says the suspect was also killed. The Senate may have found the formulat to get Republicans on board with a gun safety bill, Bloomberg's said. Baxter reports Minority Leader Mitch McConnell is making noises that make it sound like he will support it. Just people who own God, and support for the provisions of the framework is off

the charts overwhelming, He says. It's wording. I think if this framework becomes the actual piece of legislation. It's a step forward, step forward on a bipartisan basis, and majority of Leader Chuck Schumer says it will be brought to the floor quickly. In San Francisco, I'm at Baxter Bloomberg Gay Break. The pain at the gas pump continues for the New York metro area. According to Triple A, prices rose to a record five one overnight and five fifty

in Manhattan. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than journalists analysts more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg, John, Michael, thank you. It's not five three o'clock Wall Street. That's time for the Bloomberg Sports Update. And here's John Stash. Thanks John. Yankees have watched the low pay roll Sampa Bay Rays win the

a L East each of the last two seasons. This year, Yanks ten games ahead first of six between the two teams over a ten day period at the stadium. I'll drop fly ball fourth inning and put two Yankees on Isaiah Kiner Fileffa at the plate line. Hard gluck THEO. There's a Santon runs third coming home, The throw is gonna be too high, goes back to the screen. Here comes another run home. The crow home is is not in dial w f an. Those are only two rounds.

Yanks score twenty six in their last two games with the Cubs. They won this one to Nothing's Garrett Cole goes to six and onety team with three relievers on the shutout. Cole very much bouncing back from that nightmare start last week in Minnesota, where you give a five home runs. Tonight it's Nestor Cortez versus the Ray Shane McClanahan. Both have v r A s under two, and if the Yanks win tonight they will be thirty games over

five hundred. Amazing. The Mets have been so good with maxers Are injured, Jacob de Graham still yet to pitch. De Graham has thrown four vullpen sessions, and shus Are will through a simulated game Thursday. Meanwhile, Chris Bassett dominant and the Mets for nothing to win at the City Field over Milwaukee. Bassett went eight and into that only three hits. Mets State five games ahead of Atlanta. The Braves thirteenth win in a row in Washington. They hit

five home runs for the second straight game. A near no hitter in St. Louis, the Cardinals Miles Nicholas lost it with two outs of the night. They'll start the Stanley Cup Finals tonight Tampa Bay at Colorado. The lighting may get great in point back from injury, missed the last two series point thirty goals of the last three playoffs. Johns Dash Award was in Sports. John John It is five thirties seven on Wall Street time for the Tri State Business Report, and for that we're joined by Bloomberg's

ed Quarry Consolidated. Edison says utility bills will jump twelve percent this summer. In New York City. Westchester County bills could source sixteen percent compared to last summer. Electricity rates have been surging across the US as gas and coal supplies are tight and temperatures rise. New York bankers are not rushing back to the office. In the downtown cluster that includes Wall Street, Pretta Mongery's sale of coffee and sandwiches are less than half of what they were before

the pandemic began. Earlier this month, they fell to their lowest level since January. A coalition of homeowners, renters, and social justice organizations Tuesday objected to a decision by the New York City Council to raise property taxes nearly seven percent. Council members voted Monday to adopt that tax increase, but also approved a ninety million dollar property tax rebate for working in middle class homeowners. That your Bloomberg Try State

Business Report. I'm Ed Corey, all right, thanks At five thirty eight on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kock. Yeah. Let's check it now with the Global News team for some of the top stories hurt on our three hundred affiliate radio stations around the world. I'm Steve potascon ten ten Wins in New York. We're talking about how the price of luxury goods in New York are a relative

bargain when compared to overall inflation rates. I'm Gina Servetti and for w BBM in Chicago, I'm reporting that Caterpillar is leaving Illinois after decades to move its company headquarters to Texas. And Lisa Mateo and on KYW in Philadelphia, I'll be reporting on more price hikes coming to a wireless carrier. I'm Carlin had compliment dab disial ratio. Here in London. We've been reporting on the emergency ECB meeting in Frankfurt as bontialed spike over inflation fits. I'm had

Corey on w w J in Detroit. I'm reporting Ford has temporarily stopped deliveries of its Mustang make. And those are some of the stories are tred 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 Pentagon has a supply chain problem. Consider this. In just a few months, the war in Ukraine has consumed a quarter of the country's Stinger anti

aircraft missiles, but replacements might not be available until. It's a symptom of a larger problem. Pentagon report found that the US military is too often reliant on individual suppliers, a weakness that threatens its ability to respond to future crises. To prevent shortfalls, the Pentagon should work to attract more

non traditional vendors, which would broaden its industrial base. It should also expand programs to identify promising military technology companies, and the U should work with allies that have spare manufacturing capacity to bolster collective stockpiles. If the Pentagon wants to support Ukraine and win future wars, rethinking how it acquires weapons will be key. This editorial was written by

the Bloomberg Opinion Editorial Board. I'm David Chipley. For more Bloomberg Opinion, please go to Bloomberg dot com, slash Opinion or OPA go on the Bloomberg terminal. This has been Bloomberg Opinion and Bloomberg Opinion Editorial can be heard every weekday at this time. Terminal customers can read more at O P I n GO. European Central Bank emergency meeting is currently under way. The meantime, Italy's tenure yield currently trading below just four percent, still six sixty basis points

above the predecision level. This is Bloomberg at ahead of the FED meeting this afternoon. Down futures right now up one and twenty three points. SMP futures they're up at eighteen and the nastak emnity futures are up sixties six. This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Quick Tape. This is a Bloomberg Business Flash. I'm Nathan Hagar. This slash is brought to

you by Informatica. In the Cloud. Your data has the power to do the extraordinary avantage data across any location in the cloud for accurate and actionable insights. More at Informatica dot Com. Futures are gaining before a crucial FED policy decision this afternoon, with markets pricing in the biggest rate hikes since nineteen ninety four. We checked the markets every fifteen minutes during the trading day on Bloomberg. Right now,

SMP futures are up. They are higher by twenty one point, STOW futures up a hundred forty nine, Nasdaq futures up seventy nine points. The tenure Treasury is up nineteen thirty seconds. The yield three point three nine percent yield on the two year three point three two percent. Nim X screwed is down one point one percent, down to dollar thirty four a hundred seventeen dollars fifty eight cents of barrel comics gold is up seven tenths percent, or twelve dollars

forty cents. At eighteen twenty six, twenty announced the euro one point zero four eight two against the dollar. The en one thirty four point four four bitcoined right around twenty thousand, one hundred dollars. That's a Bloomberg business flash. And now here's Michael Barr with more on what's going on around the world. Michael, thank you very much. Nathan.

In South Carolina, Congressman Tom Rice is out. The five term incumbent who voted to impeach Donald Trump for the January Day extens direction was defeated by Trump backed Russell Fry. Fry got Rice. The leaders of seven eight oh nations from across Europe pledge their continued support for Ukraine. They agreed to step up military supplies and provide more heavy weapons to the war torn country. In baseball, the Yankees and Mets one the Red Sox beat the A's, Orioles

and Giants were also winners. The Nationals lost Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than journalist and analysts more than twenty countries. Michael barr and this is Bloomberg John Michael five forty nine on Wall Street. We are lying for the Bloomberg Interact. To broker studios, this is Bloomberg Daybreak. Well,

monetary policy firmly. You have focused this morning uncertainty a bit elevated heading into the FED decision today and of course those are European Central Bank meeting taking place this morning. This is an emergency meeting. Let's break it all down for you this morning. We're joined by se Do actually Flow Bank chief Investment officer. If we could just head over to Europe for a moment, asked, is there a sense of panic as the policymakers in Europe hold in

an emergency meeting this morning? Good morning. I wouldn't say panic. I think what we've heard from the e c B is that they didn't want to tell us or tell the markets too far in advance what tools they were going to use, because they thought it lost effectiveness. But what we're really seeing is a divergence of the needs

of different countries. From the e c B, we have Northern Europe that needs higher rates, and we have Southern Europe and of course Italy as the biggest example the needs rates to stay low, and so the blowout in Italian spreads is threatening the financial stability of Europe. It's the last big election that we're going to have, probably next year, but after Germany and France, those are finished.

Now Italy is in the spotlight, and so I think it's a way for the ECB to maint something of a hawkish tone in terms of rate heights and fighting inflation because they do have that two percent mandate. But at the same time that financial stability is important and they're gonna discuss tools, including reinvestment from the p PP

or other to try to contain those spreads, especially in Italy. Yeah, the headlines are earlier is that the ECB would look at the p e P, the pandemic reinvestments that kind of underwhelmed season. Now that the bank intends to do more than that. The latest headline that's coming out of the ECB emergency meeting they'll discuss crisis strategy as well as reinvestments of the pandemic pandemic era UH investments. The Italian Banya is dropping back close to the lows of

the day the wake of that report. Let's switch now, st if we could to the Federal Reserve, what is your expectation? Seventy five basis points seems to be the market bat right now. I think that's what we're gonna

get it. I think if you if at this point the last three days, so much press has come out in that direction, it would actually underwhelm the market to get only fifty basis points UH, And you can feel that that may c p I. Even though the core did come down a little bit, that headline number really not coming down at all UH and worrying everyone from consumers. That University of Michigan survey with the one year expectation jumping as well, and that means the Fed has to act.

They've said they want to front load the hikes, so they're going to do that even more so. And it means that maybe isn't off the table either for July, depending on how the next couple of weeks looks and how the pc comes out, can dive into stocks and risk assets. At this point, you know, the the main rebound was very nice, but we've been saying that there was always a bad headline that could come and that could stare scare the markets. Again. The CPI was obvious

to the top of that list. Um, you have a market that or sentiment is already extremely fragile. There's the growth fears, and the recession fears are rising, and the fact that inflation isn't coming down as fast as anyone like, or coming down at all. That's that's another conversation. Means the Fed has to keep hiking aggressively, and that's exacerbating the fears about growth, about a recession risk in the U S which I don't think will happen this year,

though slowing is already starting. And that combination just sort of gave the excuse to the markets that almost wanted the May bounce to be a bear market rally to retreat. So another couple of weeks under pressure, I'm not sure. I mean the Fed, the market is really looking to see where that terminal rate is going to be. Anything below four percent probably a positive at this point, given the market expectations and not that many catalysts to give

a lot of good news. Uh, you know, maybe the ECB will see if that carries over elsewhere, if is more bond buying action, and that does seem a little more likely than it was a couple of days ago. But a little waiting time for the markets to get any kind of positive catalyst for now, more volatility ahead. It sounds like assetes who act. Flowbank Chief Investment Officer, Thanks for very much for being with us this morning, Nathan. All right, John, thank you. It's five fifty three on

Wall Street. Time for our Bloomberg Law Report. Let's get to the legal stories we're watching this morning. Here's Bloomberg's Jeff Palinger. The Director of the Food and Drug Administration, says the agency's biologic Center will provide more consistent and coordinated advice to sell and gene therapy companies. The nation's

smallest state has the biggest renewable power ambitions. Rhode Island lawmakers advanced to build that would require one pent renewable energy by three A Jewish congregation file to complain, charging that a new Florida law banning abortions after fifteen weeks of pregnancy would buy elate the right to religious freedom. 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. Now to another legal story we're watching with twenty four cases outstanding before the end of its term. The Supreme Court announces more decisions today. On Monday, the Justice is handed down two decisions against immigrants who are detained and seek bond hearings. All their cases are pending. One case was unanimous, the other was a six to three vote down. Ideological lines for more.

Bloomberg's June Grosso speaks to immigration law expert Leon Fresco, partner at Holland and Night, was this a one to punch for immigrants and immigration activists by the Court on Monday? Absolutely, Jude was definitely a very difficult day from the standpoint that the immigration law. I would say, if you were looking at it during the period of somewhere between two thousand and nine and two thousand and fifteen two thousand and sixteen, both of these cases would have been decided

completely the other way. And now the Supreme Court has changed and the ethos has changed, and now you not only have these five four decisions, but you actually have decisions with liberal justice assigning onto them that are sort of cracking down on immigration lawsuits. And from that standpoint, it's a whole new, completely different world. In one case, Justice wrote the majority opinion in the other she dissented. It's unusual for her to be writing in a majority

opinion in an immigration case. Well, it's certainly unusual in this court, and it's certainly unusual in a case where it's restricting rights of down citizens who want to file lawsuits. If you would have had some sort of wager in a casino to three years ago, that justice sort of mayor would have written a decision making it more difficult for non citizens to have a right to be released from the tension. That would have been like seven to

one odds. And now you have such a decision. And so really this was a tough day for the advocates of the immigration world. So why because we hear her voice in the second case where she's an advocate for immigrants. So what happened with the first case? I think what's happening real large is there some desire to try to build some collegiality and to try to perhaps not have

five four decisions everywhere. And so you might see some of the liberal justices saying, look, I'm gonna go along in a case like this, whereby if you're gonna go along on a case where I need you maybe we can start to build some currency here. And I do think that's the intent, because otherwise I don't think you would have seen this decision, because the path of where these decisions were going were in giving expansive rights to non sit than the bomb hearing Mets Leon Fresco, partner

in Holland and Knights, speaking with Bloomberg's June Grosso. Catch more of that interview, plus analysis of the latest legal news by listening to the Bloomberg Law Show ten pm Eastern Time or subscribing to the Bloomberg Law Podcast, and attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com. SFP futures are seventeen points higher ahead of the FEDS decision two pm Wall Street time, DAL futures up a hundred seventeen Nasty futures hire by

sixty nine points. The tenure treasury is up twenty one thirty seconds yield three point three nine percent. Yield on the two year three point three two nime X crew down one and a quarter percent at a hundred seventeen dollars forty eight cents of barrel. Bloomberg Daybreak continues. This is Bloomberg,