Bloomberg Daybreak: June 17, 2022 - Hour 1 (Radio)

for New York governor is over. Plus another mass shooting in a church in Alabama leaves two dead. I'm Michael bar More Ahead, I'm John Stanstoward. Sports Night didn't win for the Yankees, comeback win for the met and the Golden State Warriors have won the NBA Championship. That's all trended ahead on Bloomberg Daybreak on Bloomberg Eliving Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty, San Francisco, Sirius x

M one nineteen and around the world. Old on Bloomberg Radio Dot Com IM and by the Bloomberg Business App. Good morning, I'm Nathan Hagar and I'm John Tucker. Bloomberg Day Break being brought to you by Informattica. In the Cloud, your data has the power to do the extraordinary. Managed data across any location of the cloud for accurate and actionable insights. More at Informatica dot com. The US futures

are on the rise this morning. It's five oh one on Wall Street and we checked the markets every fifteen minutes during the trading day. On Bloomberg, SMP futures are up thirty three points, Staff futures up t hundred forty, Nasdaq futures are hired by a hundred twelve points. The tenure Treasury is down eight thirty seconds. The yeld three point to two percent yield on the two year three point one seven percent right now, and I'm x screwed is up seven tenths percent at a hundred eighteen dollars

forty cents of barrel, John and Nathan. The Rysan futures follows yet another sell off on Wall Street, which saw the SMP five hunder closed at an eighteen month low. It was a sea of red, with only fourteen stocks in the SMP five hunder closing higher where Brignac, the chief investment officer at Invesco, says, with the inflation and recession fierce front of center, the FED has its work cut out for it. Monetary policy was too easy for too long, so they've got to make up some ground

here to try to stay ahead of it. So, unfortunately, I don't think that the news is going to get any better over the next month for the Fed in terms of inflation. The Investco chief investment officer Lori Brignac, making the comments on Bloomberg Business Week catch that program weekdays from two the vip M Wall Street Time well, the selloff has been widespread John. In fact, more companies in the Russell three thousand, excluding financial firms, are trading

below their cash holdings. Bloomberg's Doug Krisner has more The total number has surpassed the month end record set during the financial crisis. Smaller cap firms like those in the Russell are particularly sensitive to the health of the domestic economy, and now as financial conditions tighten, the concern of a

recession is in sharp relief. In the last session alone, the Russell three thousand fell three and a half percent, which lowest level since even so writers on the Bloomberg m Live blog say when a company's total equity value is less than its cash and marketable securities, bargains can possibly be found. In New York on dud Prisoner Bloomberg Daybreak. All right, Doug, thank you, And it could be another volatile day on Wall Street. Today's the quarterly event known

as triple witching. The three and a half trillion dollar options expiration mainly to short covering, and that could bring temporary relief to the stock market and meantime, in Asia, stocks tumbling to a two year lowest traders fear the global rush to hike interustrates may result in an economic downturn. Let's get the recap from Bloomberg's Juliet Sally in Singapore. Good morning Juliet, Good morning John and Nathan. The m s CI Asia Pacific Index felled to its lowest level

in two years. The index has dropped every day this week and is down for a seventh session. That's the longest weekly dropped since the onset of the global pandemic. In March twenty Japanese shares dropped in tenure yields East from twenty sixteen highs as The Bank of Japan's decision to keep its ultra loose money tree settings unchanged provided

limited stimulus as volatility and the yen grows. China and Hong Kong stocks gained the only markets in Asia in the green this as Beijing's pro growth policy lended support to views that their equities will keep out performing in Singapore. Juliette Sally Bloomboad daybreak. All right, Juliet, thank you. After that Bank of Japan decision, the yen weekend as much as one point eight percent. BOJ Governor Harhiko Corona addressed

the recent sell off in the currency. The recent rapid weakening of the yen is negative for the economy as it increases uncertainties and companies will have a harder time putting together their business plans. Governor Harhiko Kuroda, speaking through an interpreter, added a reference to foreign exchange rates to its list of risks following the ends rapid weakening to

a twenty four year low this week. In a europe Christian, the Guard has told euro Area of Finance ministers at the European Central Banks new anti crisis tool will kick in if the borrowing costs for weaker nations rises too far or too fast, sources say. At a meeting in Luxembourg, Lagar told ministers that the new mechanism will be intended

to prevent irrational market movements from putting pressure on individual urinations. Well, President Biden's weighing in on the economy back here in the US, John he says a recession can be avoided. Let's get the details live from Bloomberg's need a Young. Good morning, Granita, Good morning Nathan. The President is reiterating his message that the US is in a stronger position

than any nation in the world to overcome inflation. And while he says the recession is not inevitable, he acknowledges that Americans are really down on the state of the country. He made these comments in an interview with the AP That's his first with a print outlet since taking office, and it took place a day after the FED executed the biggest interest rate hike in almost three decades in order to cool inflation. Live in New York, I'm Reranita

Young Bloomberg day Break. Thanks. Reactions still pouring into Elon Musk's first meeting with Twitter employees, he told staffords they shouldn't worry about changes to their jobs once he takes over, as long as their work is quote exceptional. Let's get more on his remarks and his concerns about fake Twitter accounts from Bloomberg's had Ludlow. He said that whether Twitter pursues a subscription or an ad model, he's still concerned

about bots. Nonetheless, and essentially, the goal is to make Twitter an expensive platform and otherwise requiring some form of payment that disincentivizes BAT activity. During the forty five an address to employees, Boomberg's had Ludlow says, Musk did not address whether he was committed to the deal market conditions. The boos sharply since its forty four billion dollar bid to buy Twitter. All right, John Well shares of Adobe, We're keeping an eye on those. This morning. They are

down three per cent. The maker of software for design professionals, reduced its annual revenue forecast. Adobe says it's business is being affected by currency fluctuations, seasonal shifts in demand, and the decision to end sales in Russia and bell roofs after the invasion of Ukraine and after yesterday sell off the futures. This war in the green dal future is up two hundred forty four points, a rise of eight tens of a percent. Smp EMNY futures of thirty five points,

that's up about one percent. The NASDACK futures of one D twenty points. That's a rise of one percent. Tenure Yale this morning is up to basis points at three one. This is Bloomberg Fan's five hour sting on Wall Street. Time to bring in Michael barn with more on what else is going on in New York and around the world. John, Thank you very much, sir. The final Democratic debate in

the primary campaign for New York governor is over. US Representative Tom Swasey and New York City Public Advocate Jamanni Williams criticized Governor Cathy hocal strategy toward gun violence. Swazzy question HOCl on donations from the National Rifle Association when she served in Congress from Tynt. Hocal said that she has evolved and that voters are more interested in her agenda as governor now rather than her political stands as

a decade ago. All of the candidates on WNBC were asked about their vision to improve the state, including don't bet against New York. We've been down before. We will come back even stronger. We've always demonstrated our resiliency, our tenacity. It's in our DNA's New Yorkers early voting started Saturday. In New York, lawmakers heard gripping testimony from top aids of then Vice President Pence and President Trump during the

latest hearing from the January sixth Committee. Rioters came within forty feet of pens and former President Trump listened to conservative law professor John Eastman's plan to have Pence not certify then President elect Biden's win. The committee now wants to interview the wife of Supreme Court Justice Clarence Thomas, Jenny, after new emails were revealed from the conservative activists. Former federal prosecutor Michael Zelden talked about takeaways from the committee

hearing and the potential legal outcome. I think they're going to be doing is trying to prove each of the seven prongs of their conspiracy. They're saying President engaged in the seventh part conspiracy. The first was the Big Law, the second was to replace the acting Attorney General. The third was to pressure Pence. The fourth was to pressure state officials. The fifth was to do the false elector's scheme, the sixth was the violent mob, and the seventh was

in action. When this was going on, Former federal prosecutor Michael Zeldin spoke with Joe Matthew on Bloomberg's Sound on. Two people are dead and another wounded when police in Alabama, SA gunman opened fire at a church in Vesta v f Hills. Police say a suspect is in custody. Democratic and Republican senators are at odds over how to keep firearms from dangerous people. Lawmakers said they remained divided over how to define abuse of dating partners so they could

be legally barred from purchasing firearms. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than hundred journalists analysts more than a d twenty countries. Michael Bard, This is Bloomberg, John, Michael, Thank you, Case five Center of All Street Time. Now for the Bloomberg Sports Update and Good morning John Stethshower.

All right, Good morning John. The Golden State Warriors had that run of three NBA championships, five straight trips to the finals, and then it appeared that run was over with injuries and Kevin Durants affection to Brooklyn. Two years ago. They were the worst team in the NBA. And yet there were the Warriors last night, winning Game six in Boston one oh three to ninety, winning the Finals four to two. The Finals where every game was decided by

ten or more points that it never happened before. Warriors led by twenty two. Celtics cut that deficit to eight. Steph Curry made sure it got no closer. Curry was amazing thirty four points. He was the Finals m v P Yankees and Mets with one run wins at home for the Yanks. That win came at the end Sight Center. It is high. That is fuck that don't win the game. Anthony rizz Oh hit a one out, nine innings walk off home run the right center video and Yankees beating

the Raised two to one. W f ann a game of a total of only seven hits. Yanks had to scratched the star of Luis Sevrena. He's got COVID, so they used three young pitchers and together they allowed only three hits and the Yankees moved thirty one games over five hundred. The Mets trail Milwaukee for to one. Mark Canna tied the game to run Homer fifth inning, Mets top the Brewers at City Field five before a Canadian Adam hadwin as the US Open leader at brook line

of four under sixty six. Rory McElroy in the group that trails by one shot. Dustin Johnson part of a larger group two back. A rough fifty second birthday for Phil Nicholson has never won the Open. He's finished second six times. He just returned after four months off and Nicholson has twelve shots behind John dash Aware bloom Bird Sports. John, all right, thanks John, ahead of the Open on Wall Street.

Down futures after yesterdays sell off up two hundred sixty seven points, smp emity futures, they're up thirty seven points right now one percent. Ryan's nastday futures up one h thirty two points. You're listening to Bloomberg day Break. Well, traders may have come to grips with the path a head for the Federal Reserve. So what's next. We're to

speak with Patrick Armstrong, the chief investment officer at Blerini. Well, that's just to hit of Bloomberg day Break, Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg Cucktape.

This is a Bloomberg Business lash. I'm Nathan Hagar. Futures are on the rise this morning, hinting that stocks could be set for a relief rally at the end of the worst week for the SMP since March of saw the benchmark index center a bear market mid fears of a growing recession. Growing fears of recession. We checked the markets for every fifteen minutes during the trading day on Bloomberg. Right now, SMP futures are up thirty seven point. Staff futures up. Tune A six dance deck features are hired

by a hundred twenty eight points. Contain Your Treasury is down six thirty seconds. Yield three point to one percent yield on the two year three point one six per cent. Nim X Scrude is up nine tenths per cent or a dollar three at a hundred eighteen dollars sixty two cents a barrel. Comics gold is up two tenths per cent or four dollars twenty cents at eighteen fifty ten. Announced the Euro is at one point zero five three five against the dollar. The en one thirty four point

five three. At nine fifteen Wall Street Time, we get reports on industrial production, capacity utilization, and manufacturing production. At ten am. It is the leading index. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Good morning, Michael, Good morning Nathan.

The next January six committee hearing is on Tuesday. The wife of Supreme Court Justice Clarence Thomas, Jenny, is being called to answer questions before the panel about her role in the effort to overturn the twenty election. Prospects for a quick bipartisan deal on gun safety legislation dimmed Senate negotiators. A one unresolved issue is how to those a so called boyfriend loophole aimed at borrowing abuse of dating partners from having guns. The Warriors are the twenty two NBA champions.

They beat the Celtics in Game six, one oh three nine. In baseball, the Yankees and Mets won. The A's beat the Red Sox for three, The Orioles won, the Nationals lost. Global News twenty four hours a day on air and on Bloomberg Quickdake powered by more than twenty seven hundred journalists and analysts and more than one twenty countries. Michael Barr and this is Bloomberg, John, Michael, thank you, five twenty on Wall Street. We are live on the Bloomberg

interr Aunt to Broker Studios. This is Bloomberg day Break. SMP five hundred has suffered its worst week since Smart twenty twenty a temple three point three percent in yesterday's cash market, the NASDAG one that dropped four percent yesterday. Let's get you set up for the training day head now. We're joined by Patrick Armstrong, the chief investment officer at Plurimi Wealth. Patrick, After Wednesday, what happened to the initial

relief after the Fed meeting Wednesday? I think it just dawned with a lot of people that the Fed seemed to indicate they weren't going to blink and that they would be willing to cause a recession to achieve their inflation targets. And I still think they will blink when push comes to shove. But the market started to price in recession during yesterday, where you can see that from actually treasuries UM got a bit of a rally late in the day as equities continued to sell off, oil

sold off. Both of those basically points of the market pricing and higher recessionary chances. Does the FED care about the markets anymore, well, especially the risk assets. They must think about it, but I don't think they're being driven by the way they they were in when Powell did is one eighty. That was driven by the equity market. Now, I think they've decided inflation so far past their targets. They can't see a bother to worry about equities at

this point. So I think inflation is first and form most in their minds. Unemployment number two and equities are distant third at this point, Do you have any thoughts on whether or not policy can have a meaningful impact on the inflation we have? I mean, filling up the car and that was seventy bucks this morning. The food store that was another two hundred. Yeah. The unfortunate consequence, Um, it's a pretty blunt instrument to deal with inflation is

interest rates. It's the way it does is it kills demands, It creates unemployment. When you don't have a job, you're not filling up your car as much. Those kind of things. So there's some pretty awful consequences from focusing on the demand side of things of the inflation when it's really the supply side of things creating at least half of the inflation right now would be supply bottlenecks, and FED policy is impotent to deal with those kind of things.

But it seems for the moment they've decided this is the policy they're going to do to fight inflation, and they think their positioned to do that. So is risk reward looking any more attractive at these levels? I had bought equities yesterday. I bought Activision, which has got a cash offer from Microsoft, which should close at June next year, and you're getting a return effect goes through. I bought

some agry business equities that looked pretty compelling to me. Mosaic, the largest podcast reserves, is trading at about eight times earnings right now. And corporate bonds for the first time in many many years. Um, well maybe since they looked attractive as well right at the bottom. But you're getting yield above excuse me, expected inflation now on investment grade debts, so I actually think risk return corporate bonds investment grade

looks pretty attractive now as well. Now I have investors adjusted to the tighter monetary policy, do they now have to start focusing on adjusting to a different earnings picture ahead. Um, it's really shocking me how analyst expectations. They came into this year expecting the S and P five to make two hundred and twenty dollars a share. Analysts are now expecting two hundred and twenty eight dollars a share in

two So earnings estimates haven't rolled over. I do think that has to happen based on a slowing economy and probably a bit of a margin squeeze on a lot of companies. SMP delivered twelve point seven percent profit margin, which is unprecedented, and anytimes you say unprecedented, that's usually the period you start to get a mean reversion. So I wouldn't be surprised to see margin expectations come down

and earnings per share expectations come down. But I think the markets front running earnings forecast at this point where it sold off while earnings have been revised higher this year, Well, is maybe an unanswerable question at this point, at least with any degree of accuracy. But is it a bottom for stocks that we've already passed um. I actually think we might be around the bottom now, but there's going

to be a lot of moving parts. I think the stocks that are growing earnings are beneficiaries of their own assets that are in high demands. So I think commodity stocks have really be sold off over the last month. They've got great returns here today. I do think there's going to be some buy the dips there and I think they're going to blow away earnings expectations. But I think that the no earnings tech type companies, I think

they still have a lot further to fall. I think there's still flocky valuations despite sell offs in a lot of those kind of companies. I think there may still be another seventy in those kind of stocks to fall. All right, Patrick, thanks a lot of appreciate that. Patrick Armstrong always a pleasure the chief investment officer at Flaimi Wealth.

And as we look at futures after yesterday's sell off, smp EMUNI futures right now thirty five points higher, that's up one percent, the DAL futures of two D two points that's up eight sense of a percent, and that as the community futures one six points higher, a rimes at one point one percent. As we look at the treasuries right now, the ten year yield three one, that's up two basis points. Two year three sixteen, that's up seven basis points. You're listening the Bloomberg Daybreak and the

Bloomberg Weather from meteorologist Rob Carolin. Partly studied, maybe and isolated afternoon thunderstorm. The high temperature about ninety today were

to partly cloudy tonight blows in the mid sixties. Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the Country, Sirius XM Chado one nine and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. He's five thirty on Wall Street. Good morning. I'm John Tucker, 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 this hour. US features are higher as we close out this trading week. Yesterday, the SMP five hundred closed at an eighteen month low, market surrounding off a week highlighted by interest rate increases, including the Fed's biggest move since Greg Jensen, co Chief investment Officer at Bridgewater Associate says the Fed has a difficult

job ahead. They're serious about two percent inflation. They're gonna have to crack the U S economy hard, and it's then gonna take the easing tops set that and then the recovery before you see a bottom. So that's a that's a long process. Um In the end, we think the Federal blink and choose to sustain asset prices lower than they are today. Greg Jensen at Bridgewater Associate says stocks may still fall lower because unlike other bear markets,

there's not support from an accommodative accommodative central bank. To other market notes, this morning, before the opening bail to fetch here, Jpal makes welcoming parks at in the inaugural conference or the international role of the dollar today also triple witching Friday, the three and a half trillion on our options expiration may lead to short covering that could bring temporary relief for the stock market when the yen

is weaker. This morning, John, after Japan retained super easy monetary policy and yield curve control, defying pressure to track a global trend towards tighter monetary policy and bank You're in the US. President Biden weighing in on the economy, he says the recession can be avoided. Let's get the details now live from Bloombergh redating on Good Morning Reed, Good morning John. The President is reiterating his message that the US is in a stronger position than any nation

in the world to overcome inflation. And he says this while he says a recession is not inevitable, he acknowledges that Americans are really down on the state of the country. He made these comments in an interview with the AP his first since with a print outlet since taking office, and it took place a day after the FIT executed the biggest interest rate hike in almost three decades to cool inflation. Live in New York, I'm gonna need a young Bloomberg daybreak. All right, we need to thank you.

Looking at the pre market now, shares of Adobe are down about three percent. The maker of Software for design professionals reduced its annual revenue forecast. SMP futures are up thirty four points, STOW futures up two to thirty five. Nasdaq futures are hired by a hundred twenty seven points. The tenure treasury is down three thirty seconds the old

three point to zero percent. Nimex screwed up eight tenths percent at a hundred eighteen dollars fifty seven cents of Beryl comes Gold up two tenths percent at eighteen fifty to seventy announces the end right now trading at one thirty four point seven nine against the dollars. Straight ahead, your latest local headlines and a check of sports. This is Bloomberg than Nathan 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, sir. The UK government says with the leak's chief, Julian Assa, should be sent to the US to face criminal espionage charges. UK Home Secretary Pretty Vtel rubber stamp the transfer today. Sliding with the cords and Massages long running battle to avoid expedition Massage has lost a series of legal battles to remain in the UK, but further

repeal routes are available to them. New York Governor Cathey Hoko faced off against two challengers last night and the second and final televised debate before the June Democratic primary. Hucle defended her record on guns and touting her own accomplishments during her nearly ten months in office so far. The governor was asked, how would she bring people to the state. I understand the frustration. I didn't say they're not coming back. I said we want them to come back.

They may not be here five days weeks, but we need them three four days at least, and we're starting to see the trends in that direction, so don't give up on US. Governor Hocol, who is seeking a full four year term, went up against New York City Public Advocate Jamanni Williams and US Representative Tom Swase of Long Island. People in Alabama say a gunman opened fire on a small group meeting at a suburban church, killing two people

and injuring a third. The attack took place last night at St. Stephen's Episcopal Church in the Birmingham suburb of Vesta Villa Hills Police Captain Shane Ware the suspect is in custody. I would like to reiterate that there is no threat to the community at this time. The violence comes just over a month after a man opened fire on Taiwanese parishioners at a church in southern California, killing

one person and wounding five. The mob invaded the Capitol got within forty feet of then Vice President Mike Pence as his security team rushed him him away on January six one. Those were among the heroin. New details from a House committee investigating the insurrection. Yesterday, Global News twenty four hours a day on eight air and on Bloomberg Quicktake, powered by more than the journalists analysts more than a hundred twenty countries at Michael bar. This is Bloomberg, John Michael,

thank you. It's five thirty five on Wall Street. Time down for the Bloomberg Sports update. Here's just thanks John. The NBA season is over. It ended in Boston. Let the celebration begin with four titles of the last eight years. The run is not done. The Golden State Warriors once again are NBA champions two by seven. The game in San Francisco had the called Warriors trailed early fourteen to two, then had a prolonged run of thirty five to eight

to go up by twenty two. The Celtics in the fourth quarter got that down to eight, but Steph Curry had big shots. He scored thirty four points. The Warriors won one oh three ninety. Not a single game in the finals decided by single digits. That's unprecedented. Curry had never won finals m v P before. He was the easy choice, and with four titles, Curry has to at least now be in the conversation for greatest players in NBA history. Andrew Wiggins last night eighteen point six rebounds,

five assists, four steals, three blocks. Jalen Brown led Boston with thirty four. Ninth title for Steve Curry won five as a player. Not the Yankee win even when they had to go to am emergency starter when Luis Savarino was put on the COVID list. Yanks hell Tampa Bay the three hits and one two to one on on

Anthony Rizzo home run five of the ninth inning. Rizzo drove in both ones and the Yanks and won four team of the last fifteen, the Mets game from four one down, beating Milwaukee five four, Mark Canna two on Home of the Bullpen with five and two thirds innings of scoreless relief. Jam packed theater board. Heading around two of the US Opens, A A Brookline, Mass Canadian Adam

Hadwin has the lead at four under. Twelve golfers within two shots of him, including four past US Open champions Rory McElroy, Dustin Johnson, Justin Rose and Garry Woodland, John stash Awent Bloombird Sports, John Alright, thanks on Wall Street has signed down for the Tri State Business Report. For

that we're joined by A. Bloomberg's ed Querry. Unionized workers from five Atlantic city casinos have voted overwhelmingly to authorize a strike that tease up a labor fight that could paralyze a storied East Coast tourist hub with the travel season well under way. The strike authorization is the latest to emerge from a reinvigorated labor movement. President Joe Biden's infrastructures are says the Northeast Corridor rail line will get a lot of attention as far as spending is concerned.

He calls the twelve billion dollar Gateway plan, a Cathedral Project Gateway includes a new underwater tunnel between New York and New Jersey and replacing the existing one that was damaged by Hurricane Sandy. Carnival Cruise Lines Carnival Magic arrived at the Manhattan Cruise Terminal on Thursday. That event marks the company's return there to guest operations after more than two years. Carnival began sailing from New York back in that's your Bloomberg Try State Business Report. I'm Ed Corey

said it is on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. And let's second out with our global news team for some of the top stories heard on our three hundred if filligate radio stations around the world. I'm Steve polaskon ten ten Wins in New York. We're talking about just how unprepared airlines were for the rebound in summer travel demand. I'm Courtney's Donahoe on w h A S and Louisville. We're talking about how the average price

of an electric vehicle has topped sixty thou dollars. I'm Gina Servetti and for k CBS in San Francisco. I'm reporting that Tesla CEO Elon Musk pledged no changes at Twitter for exceptional workers once he takes over the company. I'm Stephen Carol and Bloomberg DAB Digital Radio and London. We've been speaking to the UK's Digital Minister, Julia Lopez about plans to overhauld data protection rules after Praxis. I'm A Cory on W A T A M. In Cleveland.

I'm reporting major regional banks in northeast Ohio have raised their prime based lending rates following the FETE decision Wednesday, and those are some of these stories are twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It's fine thirty nine on Wall Street.

The following is an editorial from Bloomberg Opinion. Although US public school students faced plenty of challenges during the pandemic, most of them could at least count on one benefit. A guaranteed lunch waivers issued by the federal government in have enabled schools to serve meals free of charge to all students. With the waivers set to expire later this month, many of those kids are now at risk of going hungry for the sake of their health and education. It's

imperative for Congress to step in. The wisest course would be for lawmakers to extend the waivers for the upcoming school year while mandating that states transition back to means testing. In more than two years in schools first closed their doors, America's students are still struggling to recover. It shouldn't be asking too much to ensure that they all have enough to eat. 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 Opango on the Bloomberg Terminal. This has been Bloomberg Opinion and Bloomberg Opinion editorials can be heard every week day. At this time. Terminal customers can read more in O P I N GO DAL futures two hundred seven points higher, SMP futures of thirty one, but has to that futures up one

hundred and twenty one points. You're listening to Bloomberg Daybreak and just ahead, traders may have come to grips with a path head for the FED that they have to shift their focus to earnings. Now. Reste to Christia Boomberg Bestcos, Chief Global market strategist, markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business At and at Bloomberg Quick Tape. This is a Bloomberg Business lash I Nathan Hager. This update is brought

to you by Informatica in the Cloud. Your data has some howard to do the extraordinary. Managed data across any look ship in the cloud for accurate and actionable insights. More at Informatica dot Com. Stocks in Europe are rebounding along with US futures after a route triggered by fears of an economic downturn as major central banks closed the liquidity taps. Treasury yields. Studying the dollar has snapped two days of losses. We checked the markets every fifteen minutes

during the trading day on Bloomberg. Right now, SMP futures are up twenty five point, STAFF futures up a hundred sixty, NASTAC futures are higher by a hundred points. The DACKS in Germany is up eight tenths percent. The captin Paris up seven tenths per cent. Tend your treasury is little change now at three point one nine percent yield. The yield on the two year three point one three percent.

Nimex crude is up seven tenths per cent or eighty seven cents at a hundred eighteen dollars forty six cents of arrol Comax gold up a tenth per cent or two dollars twenty cents at eighteen fifty two ten announced the Euro one point zero five one four against the dollar, British pound one point to to eight seven. The end is at one thirty four point seven zero. That's a Bloomberg business flash. And now here's Michael Barr with more on what's going on around the world. Michael Nathan, thank

you very much. According to the January sixth Committee, even though conservative attorney John Eastman was among multiple advisors and White House lawyers told Trump the planned to overturn the election results was illegal, Eastman still aggressively pushed it. He later asked for a presidential pardon. The British government has approved the extradition of Wiki Leak's founder, Julian Massage to the United States to face spying charges. The Warriors are

the twenty two NBA champions. They beat the Celtics in Game six. In baseball, the Yankees and Mets won. The A's beat the Red Sox for three, the Orioles one, 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 Barr and this is Bloomberg, John, Michael, Thank you, Fie, and forty nine on Wall Street. We

are live from the Bloomberg Interactive Brokers Studios. This is Bloomberg day Break. After a route triggered by fears of an economic downturn, stock features stabilizing this morning. So what next? Let's say, good morning. Now that Christina Hoover, the chief Global Market Strategists at invest Goo, have traders come to grips with the path ahead for the federal Reserve? Well, I think it's unclear exactly what the path ahead is, but certainly traders are digesting and getting a little more

comfortable with a seventy five basis point hike. We have to recognize, though, that it hasn't happened in almost thirty years, so it can be jarring, and the digestion is going to take time. Uh. And the reaction, of course, is going to create some turbulence as the markets continue to process this. Okay, do we now have to shift to the earnings picture ahead? Um? Well, certainly that's going to

be a big part of where stocks go this year. Uh. And so earnings is going to be very important, But we're also going to want to keep very close eye on the key data indicators that are going to determine the path ahead for the set as well. Um. We know the Fed wants to front load rate hikes um, but they're also clear they are very data dependent. We just saw an enormous pivot over the course of a

few days. The Fed had anticipated raising rates about fifty basis points until they got cp I UH and inflation expectations last Friday and made the decision to do seventy basis points. So we want to to follow that too, because there is no set path. Well, what what does this all say about the margins and perhaps margin compression, Well, that is certainly going to be an issue, but that

happens in slowdowns. Of course, this is a rather rapid slowdown, just given that the FED is truly engineering it UM, so we're going to want to follow that closely, and they're going to be some companies that fair better than others. So it's a time to be rather discerning and selective. Is risk we ward looking any more attractive at these levels? Oh? Yes it is uh for for those long term investors. UH. If if you in to today or started to dollar cost average into the market, I think you'd be quite

happy a year from now, two years from now. UM. There is though a fair amount of turbulence going on, and as earnings get downwardly revived for a number of companies UM, there are going to be even more opportunities presenting themselves. It's hard to time at those who I do think opportunities are are starting to abound now and UM markets markets look rather attractive. Well what the sectors

do you like over others? Well, technology has been beaten down so much now that doesn't mean that there isn't more to go UM, But UM being selective avoiding the SpecTec UM finding those companies that have strong balance sheets, good cash flow UM. Ultimately they could provide very very good growth UM In a in a challenging slowdown can be a pretty good alternate of two other risk assets. They can be absolutely UM bonds are are looking a lot more attractive than they did uh and, and of

course it's important to be well diversified. So so this is a time for investors, especially if they were underweight fixed income UM, to to start to to increase exposure. I will give the caveat though, that I think we want to be underweighting risky credit in this environment. Yeah, well, well why is that just because of the path forward? Yes, because because we are in a slowdown, because profit margins

are going to be coming under pressure. Uh so, so we want to be more more selective UM and and air on the side of up quality, what do you look for when you seek out the capitulation in the markets? What signs are you looking for? Uh? Well, UM, there are a variety of signs that that technicians look for. I do think one one measure that has worked well in the asked is hitting that high level on the VIX, that forty or so level on the VIX. We certainly

saw that as a very helpful indicator UM. In march of UM. There there are a variety of others. UM. I do also believe that UM the trigger for a market turnaround. Right now, UM could very well be another pivot by the FED, a more dovish pivot this time UM,

and that won't happen overnight. Right. We know the FED wants to continue to be aggressive in the shorter term, but given that they're going to be data dependent, UM, they could they could pivot again, get more dovish, and that could be a real catalyst for stocks moving up. Very interesting. Christina Hooper, chief market to strategist at invest Goo. Nathan, all right, John, thank you, it is on Wall Street

time for our Bloomberg Law Report. Let's get to a legal story we're watching this morning, a closely watched case that tested the boundaries of applying human fights to animals. In a divided decision, New York's highest Court rule that Happy the elephant is not entitled to legal personhood and a right to bodily liberty. In two thousand six, Happy became the first elephant to pass a mirror recognition test

that indicates self awareness like humans. Animal rights advocates argued that should mean the cheeks should be considered autonomous and qualified for the same protections against unlawful imprisonment as humans. The decision means Happy will remain alone in a one acre enclosure at the Bronx Zoo, where she's been kept for forty five years and for more. Bloomberg's June Grosso speaks with Elizabeth Stein of the Non Human Rights Project.

Happy is New York Council. What do you say to the people who think this legal fight is absurd because an animal is not a human being. Well, it's the argument is that an animal is not a human. That is absolutely true. We are not arguing that an animal

is a human. What we are arguing is that human beings have certain rights, such as the fundamental right to bodily liberty protected by habeas corpus, which we believe is not limited to human beings, and based on the extraordinary intrinsic nature of elephants, their autonomy, their extraordinary cognitive complexity, we believe that Happy as an elephant, is entitled to the recognition of that same right that a human being has.

The fact that a human being has this right should never preclude a non human animal such as Happy the elephant, from having that same right, and in the eyes of the law, A person is not the same thing as the human beings. They're not synonymous terms. A person is merely anything, whether it be an individual or an entity that has the capacity for a right. You are asking the court to make a novel ruling here. What was

your argument? We presented the factual basis for Happy autonomy, for the fact that she is this autonomoust extraordinarily contentive ly complex non human animals who suffers the same way that a human being would suffer in this imprisonment, that she should be out traveling miles a day as elephants do foraging planning. Elephants have a true sense of self. They remember the past, they know the present, and can plan for the future. The females such as Happy are matriarchs.

They are in heard, They mourn the dead, They play, they frolic, they roam. So what we were saying to the court is based on common law principles of science and fairness and equity and justice. More than anything, the court needed to evolve the common law to be able to recognize Happy common law right to bodily liberty, and once recognizing this right, her imprisonment is unlawful and the remedy for Habeas Corpus is released from the unlawful imprisonment.

And that's Elizabeth Stein of the Non Human Rights Project speaking with Bloomberg's June Grosso. You can catch more of that interview, plus analysis of the latest legal news by listening to the Bloomberg Law Show at ten pm Eastern Time on Bloomberg Radio, or by subscribing to the Bloomberg Law Podcast. And attorneys can find exceptional legal research and

business development tools at Bloomberg Law dot com. Smp futures up thirty three points on this Friday morning, you're listening to Bloomberg Daybreak