Bloomberg Daybreak: June 17, 2022 - Hour 2 (Radio)

for New York governor is over. Plus another mass shooting in a church in Alabama leaves two dead. I'm Michael war More Ahead. I'm John Stanstown in sports night that he went for the Yankees comeback win for the mat than the Golden State Warriors have won the NBA Champion Champion. That's alls trended ahead on Bloomberg Daybreak on Bloomberg Elibern Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco

Sirius XM one nineteen and around the world. Old on Bloomberg Radio dot Com and via the Bloomberg Business App. Good morning, I'm John Tucker. I'm Nathan Hagar. Futures are on the rise this morning. We're coming up to six oh one on Wall Street. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg, SMP futures are up thirty three points, down features up two or twenty eight. NASTAC futures higher by one hundred twenty four points.

The tenure Treasury is down three thirty seconds. The yield three point to zero percent yield on the two year three point one four percent name X screwed is up one percent or a dollar seventeen and a hundred eighteen dollars seventy six cents of barrel COMEX s called little changed of ninety cents at eighteen fifty eighty announce and the euro at one point zero five to one against

the dollar, John and Nathan. The rise of ian futures follows yet another sell off on Wall Street, which all the SMP five had closed at an eighteen month low. It was a sea of red, with only fourteen stocks and the SMP five hundred closing higher yesterday. Lori bright Knack, the chief investment officer at Investco, says with inflation and recession fears front and 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 sad in terms of inflation. The INVESTI Chief Investment Officer Lori Brignack making the comments of Bloomberg Business Week and catch that program weekdays from two to five pm Wall Street Time all right, general, the sell off has been widespread. 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 to its 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 Dug 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 may lead to shortcovering and that could bring temporary relief to the stock market and meantime. In the Asia, stocks tumbled to a two year low as traders feared the global rush to hike inter strates may result in an economic downturn. Let's get the recap from Bloomberg's Juliet Sally and Singapore. Good morning, Juliet,

Good morning, John, and Nathan. The m s c I Asia Pacific Index fell 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 monetary settings unchanged provided limited stimulus as volatility

in the end throws. China and Hong Kong Stokes gained the only markets in Asia in the green. This is Beijing's pro growth policy lended support to views that their equities will keep out performing. In Singapore, Juliette Sally bloom Boat daybreak All right, Juliette thanks. After that Bank of Japan decision, the yen weekend as much as one point eight percent. Bo J Governor Harhiko Coroda 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 Harhigo Krota, speaking through an interpreter, added a reference to fear in exchange rates to its list of risks following the end's rapid weakening to a

twenty four year low this week. And in Europe, Christian the Garden has told euro Area finance ministers at the European Center Banks new anti crisis tool will kick in if the borrowing costs for weaker nations rises too far or too fast. Sources that a meaning in Luxembourg, Laguard told ministers that the new mechanism will be intended to prevent irrational market movements from putting pressure on individual euronations.

Well back here in the US, President Biden's weighing in on the economy and saying a recession can be avoided. Let's get the details live from Bloomberg Reny to 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, his first 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 in order to cool inflation. Live in New York, I'm really need a Young Bloomberg day break. Need to 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 at his remarks and his concerns about fake Twitter accounts from Bloomberg's Ed 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 in otherways, requiring some form of payment that disincentivizes for activity. Bloomberg's Ed Ludlow says Musch did not address whether he was committed

to the deal. Looking at the pre market now, John shares of Adobe or down more than three percent after the company reduced its annual revenue forecast. We get the story from Bloomberg's Charlie Pellis. Adobe says it's business will be affected by currency fluctuations, seasonal shifts in demand, and the decision to end sales in Russia and Belarus after the invasion of Ukraine. Had said fiscal year revenue will

be about seventeen point seven billion dollars. That is a decrease from the company's previous forecast of seventeen point nine billion, and investors are increasingly skeptical about the dominance of Adobe line of software for design Professions, which makes up about six of its revenue in New York. Charlie Pellet, Bloomberg Daybreak. Thanks Charlie dow futures up two points right now, SMP Futures of thirty two, the Nanzac features of one nineteen points.

You're listening to Bloomberg Daybreak and at six o seven on Wall Street, time to bring in Michael Barr to find out what else is going on in New York hand around the world, John, Thank you very much. The final Democratic debate in the primary campaign for New York governor is over. US Representative Tom Swansea and New York City Public Advocate Jamanni Williams criticize Governor Kathy Hokel's strategy

toward gun violence. All of the candidates on w NBC 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 our Yorkers. Early voting start Saturday in New York. The European Commission recommended that Ukraine be granted candidate status and the symbolic step on the Long Path to become members of the European Union. That's according to

two people familiar with the matter. The recommendation is significant for Ukraine as it seeks moral support encountering Russian aggression. Lawmakers heard gripping testimony from top aides of then Vice President Pence and President Trump during the latest hearing from the January sixth Committee, rioters staying within forty feet up Pence. 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 the potential legal outcome. I think what they're going to be doing is trying to prove each of the seven prongs of their conspiracy. They're saying the president engaged in the seventh part conspiracy. The first was the big lie, 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 electors scheme, the sixth was the violent mob, and the seventh was in action when this was going on. Former federal prosecutor Michael Zelden spoke with Joe Matthew on Bloomberg Sound on Wiki Leak's chief, Julian Assa, should be sent to the US to face criminal espionage charges. The UK government agreed with the courts and opposing his long running battle to

avoid extradition. Two people are dead and another wounded when police in Alabama SAA gunman opened fire at a church investi Via 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 Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg. John, all right, Michael, thank you. Coming up on six ten on Wall Street time down for the Blueberg Sports Update,

and here's John Stann Shower. All right, John. Golden State Warriors had that run of three NBA championships, five straight trip to the finals, and then it appeared that run was over. With injuries and Kevin Durant's defection to Brooklyn two years ago, they were the worst team in the NBA. And yet there were the Warriors last night, winning games six in Boston one oh three to ninety and winning the finals four games and to a final where every game was decided by ten or more points. That never

happened before. Warriors led by twenty two South they start the defic at the eight. Steph Curry made sure that no closer. Curry was amazing thirty four points in the finals. MVP Yankees and Mets both with one run wins at home, but the Yanks. The win came at the end swing on hit on the right center. It is high. It is fuck that us don't win the game. Anthony Rizzo hit a one hind innings wolf up home runder right Centerville and the Yankees beating the Rays two to one.

W f a any game of a total of only seven hits. The Yanks side to scratch star of Luis Savarino, He's on the cover list. They used three young pitchers and together they allowed on the three hits. Yankees brew thirty one games over five hundred Mets trailed in Milwaukee for one. Mark Canna tied the game two on. Over fifth inning, Mets topped the Brewers of City Field five to four. A Canadian Adam Hadwin as the US Open leader at Brookline, Mass four under sixty six. Rory McIlroy's

in the group that trails by one shot. Dustin Johnson part of a larger group that's two back. It was a rough fifty second birthday for Phil Micholson. He's never won the Open, He's finished second six times, and he's not gonna win this year. Shot seventy eighties, twelve shots behind dash where Bloomberg sports alright? Thanks John del futures up two hundred twenty three points, SMP futures of thirty three points, and the uns day key Mini futures one

hundred and twenty one points. After yesterday's sell off, you're listening to Bloomberg day Break. Daybreak brought you by Pepack Private Wealth Management. At Pepack Private Wealth Management knows that a portfolio is more than a collection of assets. It's a path to your future. Visit peepack Private dot com

and begin your financial legacy. Today, Markets Headlines and Breaking News twenty four hours a day at Bloomberg dot com, the Bloomberg Business apt and at Bloomberg Quick Tape is a Bloomberg Business lash and Nathan Hagar will after a racing about two trillion dollars in market capitalization this week so far, SMP futures are pointing to a relief rally after a week that saw the benchmark enter a bear

market amid growing fears of a recession. We checked the markets for you every fifteen minutes during the trading day on Bloomberg. Right now, SMP futures are up thirty two points south few years have two hundred fifteen Nastact futures are hired by a hundred twenty points. The tenure treasury

is down six thirty seconds. The yield three point two percent yield on the two year three point one five percent nime X screwed is up nine tenths per cent, up a dollar three at a hundred eighteen dollar sixty two cents arrol come x gold little change down at dollar ten at eighteen forty eighty announced. The euro is at one point zero five two three against the dollar, British pound one point four. The yen is at one thirty four point seven nine. That's a Bloomberg Business Flash.

And now here's Michael Barr with more on what's going on on plugging the world. Michael, thank you very much, 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. The British government has approved the expedition of Wiki Leak's founder, Julian

Massage to the United States to face Spye charges. The European Commission recommended today that war torn Ukraine should be granted EU candidates as the Warriors are the twenty two NBA champions. They beat the Celtics in Game six. In baseball, the Yankees and Mets one, 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, this is Bloomberg, John alright, Michael, thank you. It is now six nineteen Wall Street, and we are lying to the Bloomberg interact of broker studios. This is Bloomberg daybreak. Maybe too soon to call an into America's worst bond market collapse in at least half a century. Let's focus on bonds this morning, as well as monetary policy from the Federal Reserve. Joining us now Jean Jadozo, the global

head of fixed income at Columbia Thread Needle, Happy Friday. Um, what's the risk of an overshoot at this point from policymakers. I think, frankly, it's pretty high. Actually, I think that's the message we got from the Fed and even commentary overnight from the e c B. As it relates to the reaction function, which is going to favor attacking demand to bring down inflationary pressures at the expense of the economy.

So I think this is a situation where front end rates are likely to continue to rise and bring forth really what we would consider to be a more meaningful inversion of the curve where long which already yields go far below those at the front end of the curve ahead, well,

we could call it a recession. I think we have to look at what's you know already happened, and what's already in the price Many would define a recession as two consecutive quarters of negative GDP growth in the US, We've already had one of those, and signs in the current quarter point to perhaps consumer demand that while growing on a nominal basis, is still not keeping up with price increases, so I e. Perhaps in other quarter now. And if you look at credit spreads, well maybe they're

not pricing in quite a full recession. But I think that's because credit fundamentals are actually starting from quite a positive starting point. So the question here for the FED is is the tradeoff of a shallow recession worth it to bring down inflation? We think in their calculus they

probably think it is. Well, I gotta wonder if policy is even effective when you look at the energy prices and you know, grocery prices, is that something that can be attacked well, in a way, it's more effective, But it's not because it can bring down the prices of those goods. I say it's more effective because it will hasten the tightening of financial conditions. If you're a consumer or a business. The lack of disposable or discretionary income,

that deterioration occurs faster. So you just look, for example, at the thirty year mortgage near six percent now, and if you are a borrower with a down payment of the median home in the United States, your monthly payment compared to the beginning of two thousand twenty one, just about a year and a half ago, is up eighty percent. And that's a result of higher home prices but significantly

higher interest rates. Those type of payment shots are material, and when you layer on the additional costs of food and energy, you know that again the tax on discretionary income is significant. That brings forward a recession, which ultimately will result in lower demand across the economy. Can I get into the plumbing just for a minute. Are there liquidity problems, especially in the treasury market, you see any

cracks appearing, well, certainly liquidity has deteriorated. We we haven't seen cracks that would indicate crisis territory at this stage, and I think that's one of the reasons that the Fed frankly limited its hikes or at recent hike to seventy five basis points. And we've done the math that if they were to hike a bit more than that. At a time, you could be in a position where money we're talking about money market funds breaking them bucks.

Something we haven't talked about, UM, you know, really financial crisis. Certainly liquidity is poor and on days like Monday, UM when there was significant moves on the yield curve, it was it was we saw difficulty across the market and moving large volumes of treasury securities. But it's still a deeper, more liquid market than anything in fixed income, and it's it's nothing compared to the liquidity challenges we saw a

decade and a half of UH. And if I can move to corporates just for a second, especially with with high yields, UM, is there a threat of higher defaults ahead? Do you do you see that? I think there is. We're starting again from a very low default rate and a strong balance sheep position. Companies were not sitting idly vie for the last two years. They were planning ahead, and they were refinancing their capital structures, and they were

generating flexibility on their balance sheets. And so if we look where we sit today, earnings and leverage are in a good spot, but borrowing costs have risen for companies as well. Just looking yesterday, we were at a point where this morning, about twenty four hours ago, the three year treasury was at three and a half percent yield, which ironically is identical to the yield on the high yield bond market one year ago. So we've moved significantly.

So I think, you know, a little bit of further widening in credit spreads would actually make them, uh, pretty attractive, even though it would signal that, you know, there perhaps as a recession happening, I think you'd be compensated for what could be hired to faults at that at that level, Gene, Thanks all appreciated, Genes. It is a global hand of fixed income at Columbia thread Needle again, Jane is a high risk of an overshoot by federal reserve policy makers.

Ten year yield right now one of two basis points. This is Bloomberg. Bloomberg day Break brought you by Hofster University's Frank gez R School Business ZARB Executive NBA built for working professionals, can be completed in a few of

eleven months. Visit Hofstra EU slash go grad 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 six to the country, Sirius XM to A one ninet and around the globe the Bloomberg Business app and Bloomberg Radio dot com. This is Bloomberg Daybreak. He has six thirty on Wall Street. Good morning, I'm John Tucker Hagar.

We're about three hours away from the open of US trading. It's time for the five things you need to notice start your day. Brought to you by i b k R Investment Advisors switched to Interactive brokers for lowest costs, global trading and turnkey custody solutions, no ticket charges and no conflicts of your interests at ib k R dot com slash r i A first. US futures are higher as we close out the trading week. Yesterday, the SMP

five hundred closed at an eighteen month low. Markets are rounding 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 to offset 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 jen said at Bridgewater. Associate says stocks may still fall lower because unlike other bear markets, there is not support from an accommodative central bank and two other market those of this before the opening deal the fetchhair j Pal makes welcoming remarks at in the inaugural conference of the International Role of the Dollar. Today

is also a triple witching Friday. The three and a half trillion dollar options expiration may lead to shortcovering that could bring some temporary really for the stock market for the ends weaker this morning. This after Japan retained super easy monetary policy and yield curve control, defying pressure to track a global trend toward tighter monetary policy. And back you're in the US. President Biden weighing in on the economy,

he says a recession can be avoided. Let's get the tales live from Bloomberg's Rededa Young, 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 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 with a print outlet since taking office, and it took place a day after the FED executed the biggest interst rate hike in almost three decades to cool inflation. Live in New York, I'm real need a Young Bloomberg day break. Okay, we need a thanks and shares of Adobe or down more than three percent. This morning, the maker of software

for design professionals, reduced its annual revenue forecast. And that's the five things you need to know to start your day, brought to you by Interactive Brokers. SMP futures right now are up thirty three points, Staff futures up two D fourteen, NASTAC futures up a hundred twenty four points. The tenure Treasury is down five thirty seconds, the yield three point one percent. Straight ahead your latest local headlines in the check of sports, this is Bloomberg. Well thanks Nathan on

Wall Street. Time to bring in Michael barn who tell us what else is going on to New York and around the world. John, thank you very much. New York Governor Kathy Hocol faced off against two challengers last nine and the second and final televised debate before the June Democratic primary. Hocal defended or record on guns and tout in her accomplishment during her nearly ten months in office so far. On w NBC, the governor was asked how would she bring people to the state, including New York City.

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 Hucle went up against New York City Public Advocate Jamani Williams and the US representative Tom Swase of Long Island. The UK government says Wiki Leak's chief Julian Assa should

be sent to the US faced criminal espionage charges. UK Home Secretary Pretty Batel rubber Stamp the transferred today, siding with the courts and Assage is long running battle to avoid extradition. Police in Alabama Saya government 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. Captain Ware says. Other parishioners held the gunman down until police arrived. The mob invading the Capitol got within forty feet of then Vice President Mike pens as his security team rushed him away on January one. An informant later told the FBI that extremists leading the assault would have killed him given the chance. Those were among the herrowing new details

from a House committee investigating the insurrection. Yesterday, Former federal prosecutor Michael Zelden talked about the potential legal outcome it again appears that the President United States, along with John Eastman, along with Rudy Giuliani, along with Sydney Powell, engaged in a criminal conspiracy to obstruct and defraud United States government.

Former Federal Prosecutor Zelden spoke with Joe Matthew on Bloomberg's sound on the European Commission recommended that Ukraine and Moldova be granted candidate status and a symbolic step on the long path to become members of the European Union. Global News twenty four hours a day on airand on Bloomberg Quittake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg. John,

all right, Michael, thank you. Six thirty six, bol Street signed out for the Bloomberg Sports Update. Here's John Stashower. 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 good. Like Golden State Warriors once again are NBA champions in seven the game in San Francisco had it called Warriors trailed early fourteen to two then they had a prolonged run of thirty

five to eight to go up by twenty two. South tick to 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 to ninety on a single game of the series sided by single digits. That's unprecedented. Curry had actually never won finals m v P before. He was the easy choice, and with four titles, Curry now has to at least be in the conversation for

greatest players in NBA history. Andrew Wiggins was a big help eighteen point six rebounds, five assists, four steals and three blocks. Jayleen Brown led Boston with thirty four ninth title for Steve Curry won five as a player. Nothing Yankee win even when they had to go to an emergency starter when Luisa save Arena was put on the

COVID list. Yanks l Tampa made the three hits and won two to one on Anthony Rizzo home run bottom of the ninth and a. Rizzo drove in both runs and the Yanks has won fourteen of the last fifteen. The Mets came from four one down Feete Milwaukee five four, Mark Canna two run number, the bullpen five and two

thirds innings of scoreless relieve jam pack leaderboard. They go went around two of the U s Open today at Brookline, mass Canadian Adam had Win as the lead at fort under twelve golfers within two shots of them, including four past US Open champions Rory McElroy, Dustin Johnson, Justin Rose, and Gary John Dares Bloomberg Sports. John all right, thanks John sixty seven on Wall Street. Time to take a look now at stocks and some of the names that are moving in today's pre market. And for that we're

joined by Bloomberg Radio and TV markets. Course, but a critty Groupta never been on a cruise, have absolutely no desire whatsoever to do something like that. You know, don't let Paul Sweeney. He'll let you hear you say that. He said he's not a cruiser either, but uh he this is an entire industry that so many people are addicted to. I don't get it. I admit I've never been on a crazy there, But that being said, I don't love boats in general. That being said, that's nothing

to do with the stock we're talking about today. Well, I guess it does. C c ls here take our Carnival cruise lines up just try of four percent. But it's not the fundamentals that are driving the stock. I really like to look at this uh particular name in the sector, I should say, because usually when you see a rally in Carnival cruise lines and American Airlines a lot of those kind of stocks, it tends to mean

that there is a broad rallying. Hey alone, behold, if you look at the S and P five hundred, only a handful of names in the red. So to me, this is not just a kind of signal of breath. Sometimes the idea that you're going to have perhaps the most riskiest, the most vulnerable names in the green, so then that rest might rally as well. But also it's

a volatility proxy. When you see that fix get higher and higher, Carnival Cruise Line, American Airlines, keep an eye on those names because that's really used as sometimes a vehicle to play some of that volatility. Um. Let's talk about the tech space though, which is I think in some ways the opposite of the cruise line space. T SM is on my radar. This is Taiwan semi conductor Manufacturing Company. This is of course the A D R S of it. Remember, Taiwan Semi Conductor and Manufacturing Company

is the largest chip manufacturer in the world. It's also in the Apple supply chains. If you're looking at chips from cars to washing machines, to airplane engines, whatever that may be. Uh, odds are that Taiwan Semi Conductor Manufacturing

Company has made a chip somewhere in that production lines. Anyways, t SM is your taker, up nine tenths of one percent today and this was after some news that they're going to be getting their hands on some advanced chip making tools from a SML, which is a Dutch semi equipment maker company, and that uh acquisition, I don't want to call it an acquisition, but you know what I mean, Like they're gonna they're gonna be able to to use that technology in So that's some good news there for

those shares up Adobe. Whether they're blaming the weather or something, they're not blaming the weather. This isn't an airline that's going to blame the weather. Adobe cutting their forecasts are talking about an issue with summer demand. A lot of those macroeconomic issues you're sand is it the weather. Uh, those macroeconomic issues across the board that you're hearing, well,

those are CP two Adobe as well. The concern here is that are they going to be able to execute on the areas that they are doing well on and right now the consensus, at least from the equity investors that they might not. They cut their full year forecast and out. Adobe shares are down to the tune of over three this morning. Thanks. Well, you know you mentioned vix and sexually lower and I've heard it has to

go to forty before there's like a pitiulation. I hate that word, but anyway, U SMP futures right now pretty up thirty seven to down futures of two forty. Bloomberg Radio TV Markets correspondent, pretty boop, Thanks very much. You're listening to Bloomberg. And yeah, we'll do the weather. Bloomberg Weather from Rob Caroline Party Sunday, maybe an isolated thunderstore in the staff that it was a high temperature today ninety degrees in the New York City area, clear to

partly cloudy tonight, mosa in the mid sixties. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business App, and at Bloomberg Quick Take. This is a Bloomberg Business lash, Nathan Hagar. This update is brought to you by Informatica. In the Cloud, your data has the power to do the extraordinary. Managed data across any location in the lound for accurate and actionable insights. More at Informatica dot Com. Futures are on the rise

to cap off a rough week for stocks. We go right to the first word, breaking news desk for today's morning call. Here's Bill Maloney. Good morning, Bill, Hey, good morning, Nathan. That's right. US futures are a bouncing after yesterday's plunge, with Doubt futures up a hundred eighty four point, sesames game thirty one, Nadack futures are up a hundred and

twenty two. The US ten year old at three point to one percent, Gold is down eleven, oil is in the green, and bitcoin is training higher by one percent. Japan dropped one percent overnight, while most of European markets are trading higher by one percent and back in the US on the economic front. At ten o'clock, the leading index After develous night, Adobe cut its annual sales forecast and in deal News revalence. Stores pent in the pre market amid a report Reliance Industries is mulling and offer

rapping things up. American Express was raised outperform at Robert Barrett told Brothers was cut to equ weight over at Wells for Ago. Live from the First Breaking News descom Bill Maloney, Nathan Okay, Bill, thanks to you get live breaking news over your Bloomberg type squak on the terminal, s Q you a go, that's a Bloomberg business slash. Now here's Michael Barr with more on what's going on

around the world. Pinkel, 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 who told Trump the plan to overturn the election results was illegal, Eastman still aggressively pushed it. He later asked for presidential pardon. The British government has approved the extradition of Wiki Leak's founder, Julian Massage to the United States to face spine 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 won, 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 and more than a hundred twenty countries. Not Michael Barr, this is Bloomberg, Nathan, Okay, Michael, thank you sixty nine on

Wall Street. Let's turn to news and science and technology now. The Bloomberg n j I T STEM Report is brought to you by New Jersey Institute of Technology, offering New Jersey's first undergraduate degree in fintech and j I T is Future in the Making, tech driven, finance focused. To learn more at n j I T dot E d U slash Fintech and now here's what's making news in science, Technology,

engineering and math. Airlines have been working hard to convince passengers it's safe to fly, but they're having a tough time convincing staffers to do the same. Aviation officials are facing an unprecedented labor crunch, resulting in longlines, delays, and the cancelation of hundreds of flights worldwide. The severe staff shortage is sure to be a topic of discussion at the International Air Transport Association's annual meeting that kicks off

in Doha on Sunday. A new study reveals Delaware is the best state in the US to work in the cryptocurrency industry. Blockchain job site crypto job List conducted the research and analyzed factors like the number of blockchain companies per million people, average Internet speeds, technology hub ranking, and

the number of establishments that accept cryptocurrency payments. California came in second, Massachusetts was in third place, and Elon Musk, who met directly with Twitter employees for the first time since signing that deal to acquire the social network, told staffers they should not worry about changes to their jobs once he takes over as long, he says, as their work is exceptional. And that is the Bloomberg and j

I t Stem Report. John, all right, thanks Nathan. We are live for the Bloomberg Interactive Broker Studios where it is six fifty one on wall Spreet Time to out to check what's going on in d C. Some of the top stories in our nation's capital include the January six panel presenting some chilling details of the pants escape

for the mob. On that day, President Biden says recession can be avoided as the US takes on inflation, and President of Biden and President she of China a call under consideration amid higher tensions between the two countries and another shooting. Where are we in the gun bill in Washington? Let's take a deeper dive too some of these stories this morning. We're joined by Bloomberg government reporter Emily Wilkins. You made it to Friday. We both made it to Friday. Congratulations.

It wasn't easy. What's the late? What the what did we hear from the January six panel? The hearings? Uh? What's the very latest? So yesterday's hearing was very much focused on Mike Pence and the pressure that he fased from UH then President Donald Trump as well as his lawyer John Eastman, to try to invalidate some of the results of the election. During the point where Congress UH kind of tallies up the electoral counts and this is

really supposed to be a ceremonial role. Pence from the start, other Way House officials from the start said, look, he can't do this, but he was under a lot of pressure by Trump and actually when that mob broke into the capital, they were looking for Pence. Um and there were some extremists who were leading that riot who planned to kill Pence if given the chance, according to information that the FBI has collected, and Pence came very close. At one point, he was only within forty ft of

rioters as they broke into the Capitol. Um. You know, they've there's been testimony that Trump at no point tried to check in on Pence. Uh. And this of course brings us back to that point where there really wasn't any efforts for Trump for a number of hours to really call off these rioters, many who had assembled in d C at his request, who had gone to his rally, and who felt like he had told them to march

on the Capitol. And this is really part of the committee's bigger picture that Trump did try to overturn the elections. And this point is particularly salent when it comes to Pence, because it shows that Trump was told that his plan would have been illegal, and yet he pursued it anyway. Now, among those watching, I Gotta gasses, Merrick Garland, does this check off a lot of boxes for him and the

future path from for the Justice Department. So there's actually a little bit of tension right now between the Justice Department and the January six panel. The Justice Department has asked the panel for transcripts and videos of some of the more than thousand interviews that this uh that the lawmakers on this panel have done, and there's been some conflict in getting that. Also, those lawmakers are sitting on the panel feel like the Justice Department maybe hasn't done

enough at this point. They kind of have these conflicting investigations, and so there are of course big questions about exactly what if the Justice Department will move to make any any moves against Trump or those within his inner circle. I mean, obviously at this point you have seen a number of rioters who stormed the capital be charged with crimes, uh, be sentenced uh some to you know, time and in prison for the role that they played. And so we

are seeing action play out. I think, you know, we still have obviously more to come, both with the committee's public hearings on January six, as well as further action by the Department of Justice. All Right, he didn't close it. You know, it's not his policy that can get us out of it. Necessarily. But President Biden certainly owns inflation at this point and more talk of recession. What is he saying at this point. Yeah, So Biden actually sat down with the AP yesterday, which in and of itself

is notable. Biden has not sat down with a lot of interviews for print publications, and he did it to kind of give this message that he thinks that the economy that they can still avoid a recession here in the US. He pushed back against the idea that the one point nine trillion dollar COVID aid package that he pushed soon after he got into office led to any of the current levels of inflation. He said the economy would have been worse off if they had never passed it.

But he also did change his tone on a couple of things, notably really acknowledging that Americans are are down on the state of the country. Yeah, yes, this is that quote was really really down. And we've seen a recent poll from Morning Consult showing that three quarters of Americans do not think the country is on the right track. And that's a drop from what we saw. We saw about it was more like fifty fifty about last year.

Um and at this point confidences is very low, and you're seeing the White House dry in combat that there's really only so much they can do to address inflation at this point, but they're really trying to control the messaging piece of it. You're seeing folks from the administration appearing more frequently on TV. You're seeing Biden hold a number of events talking about what the White House is

trying to do to combat inflation. And you know, you actually had several top level White House officials head over to Congress yesterday and meet with House Democrats and kind of go over you know, this is our message on the economy. These are kind of the various talking points that we have, and this is what we're really trying to get out there to the American people. Hey, um, we were doing one of the headlines, the sad headlines this morning about this church shooting. Two dead, one hurt.

At least it's the toll. Anyway, where are we in the gun legislation? Kind about fifty seconds left. Yeah, So at this point, I think there's a huge question mark over whether a bill is going to be able to get done. Uh. You saw senators leave town without anything. They said they'd continue to work over the weekend, but they've talked about that July four deadline, and at this point they only have three days left in Washington, d C. Before they are scheduled to to leave and go back

to their districts. Of course, one of the reasons we're talking about this now is because there were those mass shootings in Buffalo in uval Day, Texas, and one has to wonder, if you know, the now, the shooting that we're seeing um in Alabama, tragic as it is, if that might lend additional momentum to trying to get something done, even if it can't be done before July four, will

there still be momentum when lawmakers come back? All right, and thanks a lot appreciated Bloomberg Getmo reporter Emily Wilkins. You can read more about these stories Bloomberg dot com or on the Bloomberg terminal. And a reminder, you can follow all the latest on Bloomberg Radio in Washington Bloomberg and one oh five point seven FM HD two. After the sell off that we saw yesterday, the painful sell

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