Live from the Bloomberg Interactive Brooker Studios. Is this Bloomberg day Break for Tuesday, June one. Coming up this hour, stock future surge as we begin this holiday short and trading week. We speak exclusively with Elon Musk about Twitter, Tesla and politics. More calls this morning for a US recession. I'm all street races for congressional testimony this week from FED Chair J Powell. New York passes landmark voting rights legislation. Plus it's day four of January six hearings Michael Barr.
More ahead, I'm John Stair showering sports who They're near no hitter for the Yankees, they get their fiftieth win, shut out win for the Mats, Tampa Baby Colorado in the Stanley Cup Final. That's all trendy ahead on Bloomberg day Break on Bloomberg eleven three, on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, and Francisco Sirius x M one nineteen and around the world on Bloomberg Radio dot Com and via the Bloomberg
Business App. Good morning, I'm Nathan Hager, and I'm Karen Moscow and US DOT Index futures on the rise this morning. We're coming up to five o one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day on bloomberg S and P futures up seventy two points down futures of five eight and nasday features of two hundred forty and the ten year treasury down ten thirty seconds. You have three point to six percent.
They yield on the two year three point to zero percent, Nathan Karen. We begin this morning with an exclusive interview with Elon Musk at the Cutter Economic Forum. The Testas CEO sat down for a wide ranging conversation with Bloomberg News editor in chief John Michael Thwaite. They discussed everything from the economy to politics, and of course, Elon Musk's proposed acquisition of Twitter. They're still um a few results
matters you've you've probably read about. The question is whether the number of fake and spam users on the system is best than five the center as for claims, which I think is probably not most people's experience on we're using Twitter. UM, so we're still awaiting resolution on that matter. UM. And that that is a very significant matter um. So
we're a waiting resolution on that um. And then of course there is the question of will the dead portion of the round come together, and then will the sharehold discoge in favors Elon Musk, speaking with Bloomberg from the Counter Economic Forum in Doha, the Tesla CEO also spoke about politics, cryptocurrencies, and the future of Tesla. Stay tuned for more of that exclusive interview coming up shortly on Bloomberg Daybreak. Well, Nathan, futures are higher as we begin
a shortened holiday trading way. The rally comes after nearly two trillion dollars in market value as a race from the SNP five last week. There could be more losses ahead, according to Morgan Stanley and Goldman Sachs. Morgan Stanley's Michael Wilson says stocks need to drop another fifty for the market to fully reflect the scale of economic contraction. Perhaps the biggest event for markets this week, Karen, will be Congressional testimony from j Powell. The Fed share delivers the
Central Bank semi annual report on Monetary policy tomorrow. Bloomberg's Vinny Dell Judas reports Powell tell Congress the FEDS commitment to battling the worst inflation in forty years is unconditional, just days after launching the largest FED interest rate increase in twenty years, and advanced text of the FEDS report to lawmakers says it's committed at doing what's needed to get the job done and that price stability is necessary
to support a strong US labor market. Powell will testify to the Senate Banking Committee on Wednesday and the House Financial Services Committee on Thursday. Benny Dell, Judai Sploomberg Day Break, All right, Vinnie, thank you. There are more calls and an impending recession this morning with the leaders live round Bloomberg's re Anita Young, Good morning, Rinia, Good morning. Hearn Elon Musk, Norio Robini, and Goldman Sax are now warning that the US economy could fall into a recession, while
Musk predicts it happening sometime in the near future. Goldman sachs now sees a thirty percent chance of a recession over the next year. That's up from fift percent previously, and a twenty five percent chance of entering a recession in the second year if one is avoided in the first. Robini sees the US is procession by the end of this year by getting Robini Macro Associate CEO Norio Robini says the economy is expecting experiencing a number of negative
aggregate supply shocks. Live in New York. I'm Nita Young Bloomberg day Break. Okay, Nita, thank you all. President Biden's pushing back on those calls for recession. Summers a swarming, and h there's nothing recession. President Biden's with reporters in Delaware yesterday. He was referring to former Treasury secretary and
current Bloomberg contributor Larry Summers. Meantime, President Biden says he is aiming to decide this week whether to suspend the federal gasoline tax, and Bloomberg said Baxter has the story. The President is being careful at this point, saying he is looking for more data, but sounds confident hope that I'm looking for. He and his administration are trying to find ways to ease the staring prices at the pump, and his Treasury Secretary Janet Yellen, also sounds like she
likes the idea. I think, well, I'm not perfect, it is something that should be under under consideration. So consideration it is, and we should have an answer by the end of the week. In San Francisco, I'm at Baxter Bloomberg Gay break all right and thank you. And Secretary Yellen says another way to lower gas prices could involve
Russian oil exports. We are talking about price caps or a price exception that would enhance and strengthen recent and proposed energy restrictions by Europe, the United States, the UK and others that would push down the price of Russian oil and to press Putin's revenues while allowing more oil
supply to reach the global market. Treasury Secretary Janet Yelling made those comments during a press conference in Toronto alongside Canadian Finance Minister Christiff Freeland, the CEO of Exxon Mobiles. As global oil markets may remain tight for another three to five years, largely because of a lack of investment since the pandemic began, Darren Woods says it'll take time for oil firms to catch up to ensure there's enough supply.
Thoughtful conversations about investments across that whole portfolio of solution sets needed to provide affordable and reliatable energy while reducing emissions is the path forward. Ex Mobiles CEO Darren Woods made the comments at the Cutter Economic Forum in Doha and on the M and A front this morning. Here
in the battle over Spirit Airlines is taking off. Jet Blue is raising its offer to buy the bargain carrier, valuing Spirit at about three point seven billion dollars, and follow Spirits decision to delay a shareholder vote on its pending deal with Frontier Airlines. That vote is set for June and futures are higher. Straight ahead your latest local headlines plus such check of sports and this is Bloomberg
Oak Care. Thank you. This five oh seven on Wall Street where sixty five degrees in Central Park picking up some voting. Construction on the northbound New Jersey Turnpike's in the truck lane s hearings at six. Look at the details in traffic just a few minutes. First, you gotta bring in Michael Barr for a look at what else is going on in New York and around the world
this morning. Good morning, Michael, Good morning Nathan, New York's governor, signed a law intended to prevent local officials from enacting rules that might suppress people's voting rights because of their race. The John R. Lewis Voting Rights Act is named after the late civil rights activists who represented Georgia in the
US House. Governor Kathy Ocle Across the country, we're seeing stricter voter I D laws, short early voting periods, and more burdens when you're trying to just vote by mail. We're seeing people pursed on voter rolls. Governor hokel says We're going to change our election laws so we no longer hurt minority communities. The House January six committee is set to hear from local officials who fended off Donald Trump's pressure to overturn the presidential election. Representative Adam Schiff
is set to lead today's hearing. He told CNN that Trump campaign's plans unsuccessfully dependent on hopes that state legislators would approved the Big Lie. When they didn't, Trump turned to pressuring state officials will show evidence of the President's involvement in the scheme. Representative Shift and the panel. Today we'll hear testimony from Georgia's Secretary of State Brad Raffensberger about Trump's call asking him to find over eleven thousand
votes to prevent Joe Biden's election victory. That testimony is expected to include death threats they received. Alabama's Republican primary is today. Congressman Moe Brooks lost the former president's endorsement in part for saying that it was time to move on from the election. Trump then chose to back Katie Britt of the states conducting elections today our Virginia and Georgia. And out of control New York City cab on a Manhattan street struck a bicyclists and ten two other Ohio
tourists to a wall on the sidewalk. It happened yesterday at twenty ninth Street and Broadway. Good Samaritans rushed the scene to free them and treat their injuries, including two women pinned against the building by the taxi. Deputy Police Chief John Chell about fifteen, it's one in New York has attempted to pick this cab walf these women okay. In total, we have six victims at the hospital, including
the cab driver, Deputy police Chief. Channel Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than hundred journalists and analysts. More than a hundred twenty countries. Michael Bard, this is Bloomberg Na. Thank you, Michael. We're coming out to five ten on Wall Street. Time for the Bloomberg Sports Updateke and Morney Johnston Show, Good Morning, eighth and Yankees up to fifty
wins on the air and four of them. A Yankees starter has flirted with a no hitter once with Dester Cortez, also Jammes and Tyona Now twice with Garrett Cole on the mount he lost to no whether the clean single up the middle leading off the Tampa Bay eighth. Then he Clay Holmes came in having not a lot of runs of the opening day. The Rays got to him too. It's in a walk. They scored twice in the eighth to tie the game. Yanks then scored twice in the ninth.
Darreon Hicks the Big get a triple in Aaron Boone's team won four to two. They put a couple of balls and play on us. You were able to tie the game, and it's it's it's right back there. Let's go find a way to get this thing done. And um, you know we talked about keep playing. You know there's things that happen over the course of the game, over the course of the season that are you know, sometimes out of your control. You gotta just keep playing rais
or slumping. They've lost six of seven. The Red Socks have moved ahead of them into third in the Al East. Matt Mayan City Field easy went to the Mats six and nothing over the Marlins. Three hits, the branded Nimo three rb I s for at ward O Escu Bar David Peterson got the win of the Mets win another series. They have played twenty one series, they only lost three of them. Atlanta won the main five and a half
games behind them. Met Home Ice has met a lot throughout the Stanley Cup laffs that was through for the Rangers and now in the Cup final though Home teams three and O Colorado one in overtime, then seven nothing but Tampa Bay one last night six to two in the lightning of one. Eight in a row at home. Game four is tomorrow. The Athletic reports Kyrie Irving likely to turn down his thirty seven million dollar option with the Nets, become a free agent, and that the Knicks
could be interested at John Stash Hallard Bloomberg Sport. All right, John, thanks future surging as we started holiday short and trading week. Right now, S and P futures are up seventy one points down, futures up five hundred fifteen. NASA futures are higher by turn to thirty eight points. The tenure treasury is down ten thirty seconds, yield three point to six percent.
You're listening to Bloomberg Taper Bloomberg eleven three oh weather increasing clouds, chance for afternoon showers today with a high near eighty degrees. Showers and storms possible tomorrow low seventies camber let the shower risk on Thursday either right now sixty five and clear in Central Park Markets. Headlines and breaking new twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quick Tape. This is
a Bloomberg Business flash. Yeah, and I'm Karin Moscow. This update brought to you by Informatica. On the Cloud, your data has the power to do the extraordinary. Managed data across any location in the cloud for accurate and actionable insights.
More at Informatica dot Com. SMP future is on the rise this morning at seventy points down, futures up five hundred one and Nasday features up two hundred thirty four penniear, Treasury down on thirty second, and seal three point to six percent yield on a two year three point one As a Bloomberg Business Flash. Now here's Michael Barr with more on what's going on around the world. Michael, good morning,
Good morning. Karen Aids to the January six committees say today's public hearing will focus on efforts by former President Trump and his allies the pressures state level officials to overturn the results of the presidential election. President Joe Biden said he is aiming to decide this week whether to move to suspend the federal gas tax and a bid to ease the impact of sewing prices at the pump.
In baseball, the Yankees and Mets one. Other winners include the Red Sox, the Giants lost in the NHL Stanley Cup Final, the Lightning one game three over the Avalanche. Six to Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts in more than one twenty countries. How Michael Barr and this is Bloomberg. Nathan, Okay, Michael, thank you. It's almost five nineteen on Wall Street Live
from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and this morning we bring you a special interview with Elon Musk. The Tesla CEO, talked about the unresolved matters in his pursuit of Twitter and why he thinks a recession in the United States is likely. Elon Musk spoke with Bloomberg's editor in chief John michaels Waite from the
Cutter Economic Forum in Doha, powered by Bloomberg. Let's begin with Twitter, and I suppose my question for you is what is the status of the forty four billion deal? Forty four billion dollar deal to buy the company? If you look at the deal spreads at the moment, the investors seem to be betting that it won't happen, I suppose. And right here you have the Qataris who amongst your backers? Um, what are you getting to say to them and to us?
First of all, I'd like to say, um, uh, your Highness, who excellency isn't distinguished guests, thank you very much for hosting you virtually. Um, it's not to be here or be there by really UM, and I actually wish I could be there in person. So with respect to that the Twitter transaction, there's a limit to what I can say publicly given that is um somewhat of a sensitive matter. UM. So I would like to be measured in my responses here, UM,
such as not to generate incremental lawsuits. UM. That seems to be a risk you sometimes managed to overcome. Yes, deposition minimization is I think important? UM, have you have has have Twitter given you enough information? There are still um a few unresolved matters you've You've probably read about the question as to whether the number of fake and spam users on the system is best than five the center as Twitter claims, UM, which I think is probably
not most people's experience on when using Twitter. UM. So we're still waiting resolution on that matter. UM. And that that is a very significant matter. UM. So we're a waiting resolution on that. UM. And then of course there is the question of will the dead portion of the round come together? And then will the shareholds authority in favor? So I think those are the three things that UM standard Uh, you know, if that needs to be resolved
before the transaction can complete. What about the general state of the economy does that weigh on you when you think about this? I mean, you just described it. You have a super bad feeling about the economy. Are you still in that position? I just said to you earlier, Joe Biden has just come out and said that a recession in America is not inevitable. How do you feel about the economy. I think the recession is inevitable at
some point. As to whether there is a reception in the near term, I think that it's more likely than not. It's not a certainty, but it appears more likely than not. What do you think? I'm I'm I'm with you. I agree with you, and I think it's more likely. Can I ask you what a particular thing to do with the Twitter bid, which is you know you are one of the biggest and fastest growing investors in China Tesla. You've talked about it being a third of your sales
going forward. You're not buying Twitter the kind of public forum for free speech. The Chinese historically don't tend to be very enthusiastic about free speech. Are you worried about whether you can keep those two particular horses running. Is buying Twitter going to get you in trouble with the Chinese?
Twitter does not operate in UM. And I think China does not attempt to interview interfere with the free speech of the of the press in the US as fright as I know, because I assume you're not under pressure to Ed Bloomberg to UH from China. So I think there's UM, I don't think it's gonna be an issue. And in terms generally of that issue of freedom and speech and Twitter, you've talked about Twitter being making it
even freer and letting more people onto it. Is there a limit at all to to who you think should be allowed onto Twitter. My aspiration for Twitter, or in general for the digital town square would be that it is as inclusive in the water assess the word as possible, UM that it is. It is an appealing a system
for years, UM. So I mean, ideally I'd like to get like eight of UH that's in North America and perhaps I don't know half the world or something ultimately on on Twitter in one form or another, and that needs that means it must be something that is appealing to people. It obviously cannot be a place where they feel uncomfortable or harassed um or they'll somethly not use it. So um. And I think there's there's a big difference
between freedom and speech and freedom of reach um. And that one can obviously, let's say and I say, it's go in the middle of the time square and pretty much yell anything you want. And you know you'll you'll annoy the people around you. But but you're you're you're kind of allowed to just sort of yell whatever you want to in in a crowded public place more or less apart from this is this is a robbery probably
that would get you in trouble um. So uh. But but then that that whatever you say, how the controversial, does not need to then be broadcast to the whole country. So I think generally the approach of Twitter should be to let people say what they want to do within the bounds flow, but then limit the you know who sees that based on the uh. Any given Twitter uses preferences.
So if your preferences are to day on the news, you need to know at this hour US future is surging this morning last week to trillion dollars in market value, erased from the SNP five This week, Marcus react to congressional testimony from then chair J Powell, who delivers the Central Banks semi annual Report on Monetary Policy tomorrow. Well ahead of that, Karen Calls for a pending recession in the US are growing louder. Bloomberg's Rnita Young joins US
Live with the details. Good morning, Granita, Good morning. Nathan. Elon Musk and Goldman Sachs are the latest to ward that the US economy could fall into a recession. While Musk predicted happening sometime in the near future, Golden Sacks now he's a thirty percent chance of entering a recession over the next year. That's up from previously. Robini Macro Associate CEO Mario Robini expects the US recession by the end of this year and says the economy is experiencing
a number of negative aggregate supply shocks. Live in New York, I'm rened a Young Bloomberg daybreak right. We need to thank you well. Over the weekend at Delaware, President Biden pushed back on those recession calls. He said a contraction is not inevitable. Following a conversation with former Treasury Secretary and current Bloomberg contributor Larry Summers. I think overall the
picture is still a very stretched uh economy. And Summers made the remarks on Bloomberg's Wall Street Week with David Weston Catch the program every weekend on Bloomberg Radio and television. Those prices rise at the gas pump. Karen, President Biden's deciding whether to suspend the federal gasoline tax. I hope every that are looking for by the President. Biden says he is looking for more data ahead of the decision, which he expects will come later on this week. Treasury
Secretary Janet Yellen says she also supports the idea. Meantime, Nathan ex On Mobile says global oil markets may remain tight for another three to five years. CEO Darren Woods made the comments if the Cutter Economic Forum, saying it's largely due to a lack of investment since the pandemic began. And we have some m and A news to pass along this morning. Karen, Jet Blue is raising its offer to buy bargain carrier Spirit Airlines. The new bid values
the company at about three point seven billion dollars. Well, we take a look at futures this morning as they are jumping, SMP futures up seventy points to down, futures up five hundred eight and nastag features up two hundred twenty eight. The decks in Germany's up one point one percent. Ten year treasury down ten thirty seconds. He had three to six percent, and they yield on the two year at three point to zero percent nine nights. Screwed oil is higher up two point one percent, up two dollars
twenty nine cents at a hundred eleven dollars. Eighty five cents of barrel comics. Gold is little change at one eight hundred thirty nine dollars forty cents. Announced. The euro this morning one point oh five seven four against the dollar, British pound one point to three one three, the En one thirty five point three too, Bitcoin at twenty one thousand, two hundred eleven dollars. Try to had your latest local headlines,
had to check a sports. This is Bloomberg thanks hearing five thirty three on Wall Street, sixty five degrees in Central Park, on an overturned tractor trailer and Upper Saddle River. We'll get to the details shortly. First, Michael Barr with more on what's going on in New York and around
the world. Michael, thank you very much, Nathan. New York Governor Kathy Hocal signed a state law protecting voting rights, and as signing ceremony and Brooklyn, Governor Hocal said New York is preserving voting rights while they are under attack around the country. The shocking revelation that there are people out there who were so firm and their belief that Donald Trump she remained their president, fostered by him, that
they literally attacked our capital. Governor Hokels says that John Lewis Voting Rights of New York is named after federal legislation that passed the House last year but has not yet passed the Senate. The House eluct committee investigating the January sixth insurrection means again later today for its fourth public hearing. This time, the hearing is from mostly Republican officials on how former President Trump and his allies tried to convince them to break the law and turn the
Trump election losses into wins. New York City police are still investigating what caused a yellow cab to jump a curb in Midtown Manhattan. Dur and injured six people. Police say the cab struck a cyclist on Broadway, then veered off the road, jumped the sidewalk, and struck two women on the sidewalk, pinning them against the wall of a building up The twenty passers by immediately jumped into action, trying to lift the cab off the two women who
were pinned against the wall. New York Mayor Eric Adams, they clearly responded to help those who were injured. They didn't know they were tourists or not. They just responded a normal way, to New York Mayor Adams says. Two of the injured were tourists from Columbus, Ohio. Two more revisiting from Mexico. Although those injured are expected to recover. Anguish and questions last night during the first school board meeting after the horrific massacre inside the rob Elementary School
in Yuvoldi, Texas. Several investigations are underway trying to find out why the school systems police chief waited for over an hour to storm the classroom and and the shooting rampage. At the school board meeting, this man asked for the chief, Pete Rodondo, to be fired send them on this duty. Call it whatever you want, call it, suspend them, pinning termination, It's an insult to injury. Nineteen children and two teachers died.
Global News twenty four hours a day on air and on Bloomberg Quick Sache, powered by more than twenty seven journalists and analysts more than a hundred twenty countries. Michael Bard, this is Bloomberg, Nathan Michael, thank you on Wall Street time for the Bloomberg Sports Update with John Stenshower. Rank to day Yankees stop. They had win number fifty Sunday in Toronto. Boot Day suddenly scored seven runs over the seventh and eighth innings in one ten to nine and
eighth innings. Struggle again at Tampa Bay. The Rays didn't have a hit of Garrett Cole for the first seven. They broke up the no hitter, and then they got to Clay Holmes, who had not a lot of runs since opening Day. They scored twice. The game was tied at the ninth inning. Then runner goes slung on and hitting the air to right. Get Marco back against the wall. That ball is off the wall and Mark going down.
The set of Humer has to go retrieve the ball Jnald single score, Pigs will stop at third and the Eggs take up three to two lead on a tree a full and Yanks won four to two, So they've won ten of eleven seventeen of the last nineteen. Mets won a day game with the Marlins six to nothing. David Peterson got the winners and Mets improved the twenty four and ten at City Field. They have called up
Don Smith back from the Miners. They'll find out today about Jeff McNeil's hamstring injuries ended for an m R I McNeil batting three twenty seven Stanley cupt Final at Tampa Bay. The Lightning bounced back from that seven nothing loss in Game two. They scored four time second period in Colorado six to two. Six different goal scores the
as now LEASA series to one. A report in The Athletic that there is an impact between the Nets and Kyrie Irving the writing on the wall with comments by next GM Shawn Marks said he wants players who are selfless and available. That's not Kyrie, who thinks he and Kevin Durant should have a managerial role with the team. If Irving rejects his thirty seven million dollar option he becomes a free agent. John stash Award, Bloomberg Sports Nathan, Thank you John. It's five thirty seven on Wall Street
time for the Tri State Business Report. Here's Bloomberg that Corey narrowing down. The search for a place to live in New Jersey's biggest city just got a little easier thanks to Newark's news search engine. It's for potential buyers, renters, or short term renters. Searches can be filtered by price, region, locality to public transportation, or other criteria. Connecticut officials say the state will end its fiscal year June with an
additional eighties six million dollar budget surplus. That's more than had been projected just a month ago. The money means the state can make a three point seven billion dollar payment to reduce unfunded liabilities, according to the Governor's budget Director. H and M is hosting a pop up hotel. The retailer is unveiling the hotel Headings NYC in Manhattan's Lower East Side for three days beginning Thursday. Guests will be
able to access the space via Freeman's Alley. It will be open at three Freeman Alley on Thursday through Saturday to to nine pm. That's your Bloomberg Trying State Business Report. I'm ind Corey wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve PODASCT TED Ted
Wins in New York. We're talking about Jet Blue once again raising it's offered who purchased Spirit Airlines. Bernie Donaho on k IF THEYD in Omaha, Orio couldn't maker Monda leave the buy clip energy Bar. I'm kind kill Love David dishital Radio and London. We've been reporting on the biggest rail strike in more than thirty years, as some forty thousand stuff wook out on the job in a dispute over pay. I made Cory w w J and Detroit.
I'm reporting your news surveys says Kids Paul as Sleeve faster in electric vehicles and Gantaloon power and those are some of the stories our dred Bloomberg journalists and analysts are working on this morning. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This seventh sial was written by the Bloomberg Editorial Board. Over the long weekend, Americans observe their newest federal holiday,
June team, also known as Emancipation Day. The name blends June and nine, the date in eighteen sixty five when Union soldiers arrived in Texas and declare that those in bondage were now free. June teenth is a celebration of America's early efforts to right a tragic wrong, but it also challenges the nation to confront the unfinished business arising from its original sin. In effect, the holiday asks Americans to reconcile their national aspirations with the reality of persistent inequities.
That's an effort that should last year round. So as the first federally recognized Juneteenth recedes into memory, Americans should recognize that the work of racial justice remains unfinished and keep pushing to make the country a more perfect union. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg Opinion, please go to Bloomberg dot com, slash Opinion or Opie I n go on the Bloomberg Terminal. This has been Bloomberg Opinion and you are listening to
Bloomberg Daybreak. Listen for Bloomberg Opinion editorials every weekday at this time. Terminal customers can read more at op i end go chance for afternoon showers today with a high near eighty degrees right now sixty five in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Take, This is a Bloomberg Business lash and I'm terin Moscow and this updates brought to you by Informatica
and the Cloud. Your data has the power to do the extraordinary. Manage data across any location in the cloud for accurate and actionable insights. More at Informatica dot Com. Stocks are climbing in Europe and Asia. US stock indix futures pointing higher, and treasuries retreating to submit improved investors sentiment compared with last week's route in global shares. We checked the markets every fifteen minutes throughout the trading day
on Bloomberg. S and P futures have seventy points this morning. Down futures have five hundred nowsday futures have two hundred twenty six The decks in Germany's up one point one percent, ten year treasury down nine thirty seconds, yell three point to five percent. They yield on the two year three point one nine percent. Nine Max screwed oils up two point one percent, up two dollars twenty nine cents at
a hundred eleven dollars eighty five cents a barrel. Co Max school that it will change at one thousand, eight hundred forty dollars thirty cents and ounce the euro one point oh five seven four against the dollar British found one point to three oh eight and the ends at one thirty five point three zero. And look at a big cooin this morning. It's higher, up almost four percent at twenty one thousand nine dollars. Today we are watching for oport on existing home sales at a ten o'clock
Wall Street time, and that's at Bloomberg Business Flash. Now here's Michael Barr with more on what's going on around the world. Buckel Karen, thank you very much. Today's January six Committee hearing on Capitol Hill will focus on what panel members say with former President Trump's unpresidented push to get states to reject the election results. Meanwhile, on Fox News, former Vice President Pence called January six the Tragic Day
while blasting Democrats for the hearings. Ukraine's leader has told the African Union that the continent has been taken hostage in Russia's invasion of Ukraine. President Volodimir's Lensky says it comes amid catastrophically rising food prices and baseball. The Yankees met in Red Sox one. The Giants lost NHL Stanley Cup Final the Lightning one game three over the Avalanche. Global News twenty four hours a day on air and on Bloomberg Quicktake Power by more event seven hundred journalists
and analyst in more than a hundred twenty countries. I'm Michael Barren. This is Bloomberg, Nathan, Michael. Thank you. It's five forty nine on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. As we get ready to jump into a holiday shortened trading week. Let's get the perspective this morning from Dennis Gardman, former publisher of The Garment Letter, now chairman of the University of
Akron Endowment Investment Committee, Dennis, Good morning. As Karen mentioned, we are seeing a nice surge in risk assets this morning. At the same time, we're hearing from a growing number of analysts, including now Morgan Stanley, saying this market hasn't fully priced in the risk of recession. How do you view the market right now? I tend to be with the people who think that the market has not fully in the possibilities of recession. I think recession is a
very likely circumstance later this year. But markets get oversold, they get overbought, they get oversold. We had probably too many people on one side of the market. A competitor of yours see and has a great fair and Greed index which I watch, and anytime it gets below t it's in fearful territory, which she usually get a contrarian bounce. And last night I was on Seeing, I was on Bloomberg Asia, and I said, we could go up a thousand points from the lower last week and still be
within well within the confines of the bear market. So I can think that the bear market continues. I see no reason to think that that has changed the fact that that will be taking sixty billion dollars worth of treasury securities out of circulation, reducing the size of his balance sheet over the course of the next several years. I think is the instructive circumstance to pay attention to. So bounces are to be sold into weaknesses, not to
be bought. I'm not changing my opinion even slightly, other than the fact a little oversold and a little too many, far too many people on one side of the boat, a little too bearish. What what do we have? A ten of the last eleven weeks or lower. We're gonna get a bounced and that's all we're gonna get. So what has you thinking that the balance sheet is worth paying closer atten into? Then the possibility of more aggressive rate hikes. We've got the bond market pricing in potentially
a number of seventy five basis point moves. But why is the balance sheet more important to look at? The balance sheet is exactly what the Fed does. It is by by purchasing treasury securities that injects reserves them directly
into the system. It's as I've always said, and as uh most economists will agree, inflation is always an everywhere a monetary phenomenon, in the fact that the monetary phenomenon for the past decade has been an aggressive addition from to the FED sheet, aggressive the addition of reserves in
of the banking system. We took the balance sheet from nine billion dollars, which is already relatively high, to nine trillion dollars, which was breathtaking lee high, and the FED has to take that money out of the system slowly over time, allowing those trader securities to mature off. I hope the FED does not come into the market and actually sell treasury securities. I think they'll just let them a tour off through through. Uh, just let them a tour off, I guess the best way to say it.
And I pay more attention to the balance sheet than I do to the fact that the Fed shall be raising the overnight FED funds rate. Let us hope that the Fed does not take the overnight Fed funds right to to a level that gives us an inversion in the yield curve across the entire term structure. I hope that that does not occur. If that does, then a recession of some study will be almost mandatory. But I pay attention to the balance sheet, probably more than other
people do. And I think that's the proper place to have my attention focused for the next several years, to be quite honest. So do you take the FED Chairman Jerome Pale at his word that he's determined to get to that two percent inflation target and if he does, what's the impact on markets? You have to take the FED chairman at his word. Whether whether he thought or not is another thing to be is another story entirely. But he has to say that he has no choice.
He has to maintain that that that their intention is to get the inflation ry back percent. Whether they can do that or not over the course the next several years is another story entirely. I have my doubts completely. I think inflation will be with us for some period of time. So time shall tell us. But right now you have to give the You have to allow expect to see the the FED chairman follow through on his on his intentions. Well they can actually accomplish that task,
that's another story. Speaking with Dennis Gartman, the former publisher of The Garment Letter now chairman of the University of acron Endowment Investment Committee, Dennis, how much is this inflation driven by what's happening outside the world of monetary policy. I'm thinking about the the war in Ukraine and the possibility of prolonged shutdowns potentially from China as they try to rein in COVID on that side of the world. That we've seen some moves that they might pull back
on some of their restrictions. But doesn't that feed into the inflation we're seeing as well? No question there there's certainly I wouldn't say abundant, but certainly there is a material impact by by those outside forces. If I had to put a percentage on it, I would say seven percent of the inflation that we see now is caused
by monetary policy and is caused by outside influences. Those outside influences over time shall so disappear, so too the impact of the aggressive monetary edition ease of the past a decade or so. But for now, remember inflation follows in a delay by one to two in three years.
The fact that we've had these circumstances prevailing, the fact that we've had the monetary authorities being as aggressively easy, as aggressively easing natured as they have been for the past decade or so that's gonna be with us for a period of time going forward. So anybody who thinks we're gonna get back to percent inflation in the next
year or two, I think it's sorely mistaken. Well, if we continue in this elevated inflation environment, Dennis, where do you put your money in in this kind of bear market? Not a bad place to be in cash, not a bad place to be in two in five year securities. As rates go up, you're gonna get you'll you'll lose a little bit of money on them, but the the the the coupons that you get will will all set
that rather dramatically. And as I've said for years, in a bear market, here, she who loses the least will be the winner. And that's you have to keep that in mind. So I think cash and two to five year treasuries is absolutely the place to be. I think that's that makes eminent sense for the next several years. So I hate to say that it's not fun. It's much more fun being bullish. Being bullish on stocks is
always a much more enjoyable circumstance. The ladies are prettier, the music is the better, the champagne is cold and in in bear markets, the dress has become a little tattered. In the champagne turns damp, turns neutral, and in less than enthusiastics. So it's a bear market selling to the rallies don't buy. Why do you think gold hasn't reacted as much as an inflation hedge that has in the past. We're looking at gold right now around an eighteen hundred handle.
I'm a little surprised by that, to be quite honest, I would have thought gold would be closer to two thousand dollars announced rather than the eighteen hundred dollars. But perhaps at the margin, you you've got the gold competing with the bitcoin at all, and the other risk of the crypto universe. I think some of the money that would have gone in the gold market has gone over
there eventually with the crypto. I think under real pressure, and I think gonna be maintained under pressure, and I think Bitcoin goes a lot lower than where it is right now at the margin, probably will move into gold. But I am I will have to admit, I am so much surprised that goal is trading in eighteen forty instead of in our last minute here Dennis, Of course, Chairman pal is going to be appearing on Capitol Hill tomorrow and the next day. What are you going to
be listening for from the chairman? Do you think his his remarks will have any impact on markets? I think the market has already understood what the what what the chairman has said. He his press conference and his press releases last week tell us what he's going to talk about. He'll talk about the fact that the Fed probably will tighten monetary policy a bid for the next two or three or four f o MC meetings that he can expect.
He'll he'll talk about the fact that seventy five basis points is probably a given given in the July f o MC meeting, and maybe some reduction from there on. But the he'll he'll be he'll be talking, in fact, if their intention is to get two percent inflation. Whether the market believes it or not is another story for another time. As always, Dennis, great to get your insights.
Thanks for being with us. Dennis Gartman, former publisher of the Gartment Letter, now chairman of the University of Akron Endowment Investment Committee. This morning, futures are moving higher after the route from last week. We have SMP futures up sixty five points down, futures of four hundred seventy nine, NASDAK futures higher by two hundred six points ten. Your
treasury right now is down eleven thirty seconds. The yield three point to six almost three point to seven percent, yield on the two years three point two zero percent. Nimex crewed up two point one percent to a hundred eleven dollars eighty five cents of barrel and comex gold little changed down to dollar eighty for announce of gold. Bloomberg day break continues. This is Bloomberg