Bloomberg Daybreak: June 21, 2022 - Hour 2 (Radio)

Michael Barr. More ahead, I'm John Stashower. In sports, another near no hitter for the Yankees. They get their fiftieth win shut out win for the Mets Tampa Baby Colorado in the Stanley Cup Final. That's all training ahead on Bloomberg day Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x AM one nineteen and around the world Old on Bloomberg Radio dot Com

and via the Bloomberg Business App. Good morning, I'm Nathan Hager, and I'm Karen Moscow and US DOCK Index futures are on the rises morning. We're coming up to six o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP futures

have sixty five down. Futures have four hundred eighty one NASDAG futures have two hundred five ten year Treasury down twelve thirty seconds the three point to seven percent they yield on the two year three point to zero percent. Nime X screwed oil is up two point two percent, up two dollars forty four cents at a hundred twelve dollars a barrel. Nathan Karen, we begin with an exclusive

interview with Elon Musk at the Cutter Economic Forum. The Testless CEO sat down for a wide ranging conversation with Bloomberg News editor in chief John Michael Fwaite. They discussed everything from the economy to politics, of course, Musk's proposed

acquisition of Twitter, UM a few unresolved matters. Uh, You've you've probably read about the question as to whether the number of UM fake and spam users on the system is best in the fact that sent as for claims UM 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 waiting resolution on that um.

And then of course there is the question of will the death portion of the round come together, and then will the shareholds in favor the Elon must Speaking with Bloomberg from the Counter Economic Forum in Doha, the Tesla CEO also talks politics, cryptocurrencies, and the future of Tesla. Stay tuned for more of that exclusive interview coming up shortly. You're on Bloomberg Day Break. Well again, 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 S and P 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 fifteen to to the market to fully

reflect this scale of economic contraction. Perhaps the biggest event for markets this week, Karen, will be congressional testimony from J Powell, The Fed chair delivers the Central bank semi

annual report on Monetary Policy tomorrow. Bloomberg's Viney 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. Vinny del Judai s Bloomberg Day Break a right, Vinnie, thank you, but there are more calls at an impending recession. This morning we had the latest I from Bloomberg's Renia Young Good morning, Ready to good morning. Karen Elon Musk, Norio Roubini, and Goldman Sachs are the latest to warn

that the US economy could fall into a recession. While Musk predicted 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 fifteen percent previously. At a twenty five percent chance of entering a recession in the second year if one is avoided in the first, Robini expects a US recession by the end of this year.

Recession getting pretty closely. Robini Macro Associate CEO Norio Robini says the US economy is experiencing a number of negative aggregate supply shocks. Live in New York. I'm Renita Young Bloomberg Daybreak. Al Right, Renita, thank you all. President Biden's pushing back on those calls for a recession, talking to Summers a swarming. There's nothing in the bother session. And President Biden spoke with reporters in Delaware yesterday. He was

referring to former Treasury secretary and current Bloomberg contributor Larry Summers. Meantime, Nathan. President Biden said he is aiming to decide this week whether to as spend the federal gasoline checks. Bloomberg said, Baxter has that 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 by he and his administration are trying to find ways to ease the

soaring prices at the pomp and his. Treasury Secretary Janet Yellen also sounds actually likes the idea. I think, well, 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, Thank you. Ed. 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 spoke at a news conference in Toronto alongside Canadian Finance Minister

Christopher Freeland. Well Nathan, the CEO of ax On Mobiles, says 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 reliable energy while reducing emissions is the path forwards on Mobile CEO Darren Woods made the comments at the Cutter Economic Forum in Doha and on the M and A Frontcaren the battle over Spirit Airlines is taking off. Jet Blue is raising It's offered to buy the bargain carrier, valuing Spirit and about three point seven billion dollars. That follows Spirits decision to

delay a shareholder vote on expending with Frontier Airlines. That vote is now set for June. Futures are on the rise this morning, and straight ahead, we have your latest local headlines into check of sports. This is Bloomberg six oh seven on Wall Street. We're at sixty four degrees now in Central Park. Still dealing with the overturned tractor trailer south boundary at seventeen at Lake Street in Upper

Saddle River. More coming up in traffic. First Michael Barr with more on what's going on in New York and around the world. Good morning, Michael, Good morning, Nathan, New York Governor's Kathy Hokel assigned 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 U. S. House. Governor Kathy open across the country, we're seeing stricter voter i D laws, shorter early voting periods, and more burdens when you're trying to just vote by mail. We're seeing people purged voter rolls. Governor Hokel says we're going to change our election law 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, set to lead today's hearing, told CNN that Trump campaign scheme unsuccessfully dependent on hopes that state legislators would approved the Big Line, and when they didn't, Trump turned to pressuring State officials will show evidence of the President's involvement in this scheme. Representative Shift and the panel's day will hear testimony from Georgia's Secretary of State Brad Rafvensburger about Trump's call asking him to find over

eleven thousand votes to prevent Joe Biden's election victory. Alabama's Republican primary is today. Congressman Mo Brooks lost the former president's endorsement in part for saying it was time to move on from the election. Trump then chose to back Katie Britt. Other states conducting elections today our Virginia and Georgia and out of control city cab on the Manhattan Street struck a bicyclist and penned two Ohio tourists to a wall on a sidewalk. It happened yesterday at twenty

ninth Street and Broadway. Good Samaritans rushed to the scene to free them and treat their injuries, including two women tenned against the building by the taxi. Deputy Police Chief John Chell about fifteen. It's one in New York is attempted depict this cab walf these women. Okay, it's total. We have six victims at the hospital, including the cab driver.

Deputy Police Chief Chell. Global News twenty four hours a day on air and on Bloomberg Quicktake powered by more than journalist and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan Alright, Michael, thanks six o nine on All Street time for the Bloomberg Sports Something with John Nathan Yanks up the fifty wins, and four of them a Yankees starter has flirted with a no hitter once with Nester Cortez, also Jamis Sintona,

now twice with Garrett Cole on the mount. He lost the no hitter with a clean single up the middle leading off to Tampa Bay eighth. Inn and Clay Holmes came in having not a lot of runs. It's opening day, and the Rays got to him two hits and a walk. They scored twice in the eighth to tie the game. Yanks then scored twice in the ninth. Aaron Hicks the big hit a triple. Wanda per Alta worked out of a jam bottom. The night 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 fact that 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. He just keep playing. Nanke's won ten of eleven, Rays have lost six and seven. Red Sox have moved

ahead of them in the third place. Matt Nyan City field these you went to the Mets six nothing over the Marlins. Three hits for Brandon Nimo, three rb I spread water, Escu bar David Peterson got the way. Mets win another series. They played twenty one series, They've only lost three of them, Atlanta one at the bottom of ninth thening. They stay five and a half games behind

the Mets. Home ice has met a lot throughout the Stanley Cup without that was certainly true for the Rangers and now in the Cup Bottle home team three and oh after Colorado won in overtime and then seven up day in Tampa Bay one game three, six to two, the lightning of one eight in a row at home. The Athletic reports Kyrie Irving likely to turn down his thirty seven million dollar options with the Nets become a

free agent, and that the Knicks could be interested. John Stash Award boom Bird Sports All Right, John, thanks SMP futures right now up sixty six point, STUN futures up funer eighty seven. NASAC futures are higher by two hundred four points. The ten year treasury is down eleven thirty seconds, the yield three point to six percent, yield on the two year three point two zero percent. Much more from our exclusive one on one conversation with test thess CEO

Elon Musk from the contreec Nomic Forum. Straight ahead on Bloomberg day Break. Good morning. Bloomog day Break is brought to you by Hofstra University's Frank gs R School of Business, top ranked online NBA program with a real world foundation. Learn more at Hofstra dot e d U slash go grat markets, headlines and breaking news twenty four hours a day, at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quick Take. This is a Bloomberg Business slash and

I'm Karen Moscow. Socks are rising in Europe and Asia. US stock index futures pointing higher, treasuries are at treating. This all comes in an improved investors sentiment compared with last week. Surrounding global shares. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg Guess and p future is up about sixty seven points down, futures up and nast day jeers of two hundred eight. The

decks in Germany's of one percent. Can't in Paris at one point six percent of the foot scene one hundred up nine tenths of up percent. Ten year Treasury down eleven thirty seconds. You have three point to six percent. They yield on the two year three point to zero percent.

Nim Ex screwed oils on the rise, up two point three percent of two dollars fifty two cents at a hundred twelve dollars eight cents of barrel Comex schoold is down about two tenths per cent or two dollars ninety cents and one thousand, eight hundred thirty seven dollars seventy cents announced. The euro one point seven against a dollar, British found one point to two nine six and the en at one thirty five point three eight. And look

at it Bitcoin this morning. It is higher of three and a half percent at twenty one thousand, one hundred fifty dollars. Today, we are watching for our report on existing home sales. It's at at ten o'clock Wall Street time, and that's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you kindly aids to the January six Committee. States.

Day's public hearing will focus on that it's by former President Trump and his allies to pressure state level officials to overturn the results of the presidential election. Key witnesses include George's Republican Secretary of State Brad Raffensberger. President Joe Biden said he is aiming to decide this week whether to move to suspend the federal gas lane tax in a bid to ease the impact of staring prices at the pump. Russian President Vladimir Putin's spokesman said two US

veterans captured in Ukraine could face the death penalty. They say that the Geneva Conventions likely don't apply, as Moscow doesn't consider the man part of the national army. In baseball, the Yankees and Mets one. Other winners include the Red Sox the Giants they lost in the NHL Stanley Cup Final. The Lightning one Game three over the Avalanche six to

Colorado still leads the series two games to one. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenties seven hundred journalist and analysts in more than one twenty countries. Michael barr In, this is Bloomberg. Alright, Michael, thanks very much. It is six twenty now on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg day Break. Good morning, I'm Nathan Hager. We now bring you a special interview

with the CEO of Tesla and SpaceX, Elon Musk. He spoke about reducing Tesla's salaried workforce and who he could support in the US presidential election. Elon Musk spoke with Bloomberg News Editor in chief John Michael Fwaite from the Cutter Economic Forum in Doha, powered by Bloomberg. Can you set the record straight on one thing, which is this

issue about the layoffs. I think you said initially that Tesla ten percent of the workforce would be cut, then ten percent of salaried would be cut, then salaried would stay flat and overall headcount would go up. What what what is the number? I know there's already I think being a lawsuit about the ten percent? Is is ten percent the goal to reduce the workforce? Or what is the number that we should think about? Well that you're planning? Yes,

so it TESLA is reducing the salary workforce. Are roughly ten percent over the next probably three months or so. UM. The uh we expect to grow out our hourly workforce. Actual quite clear that we expected to grow our hourly workforce, but we uh, we grew very fast with on the on the salary side, um, and we grew a little too fast in some areas, and so it requires reduction in salary workforce. And we're about two thirds hourly and

one third salary. So I guess technically a temp said reduction in the salary workforce is only properly a three three and a half percent reduction in total headcount. Now, I think I think that number is important legally, isn't it? Because I think people are trying to say, if you if you're going to lay off ten percent of your workforce, you have even in America to make an announcement about that.

We did make an announcement. UM. Yes, um, let let's not read too much into a preemptive lawsuit that has no standing. Um that that that that is a small as a lawsuit of minor class points that just anything that related to Tesla gets big headlines. But it is whether it is, um, you know, a bicycle accident or something much more serious. It's it seems like anything reslated it Tesla gets a lot of cliques, whether whether it is trivial or significant. I would put that lawsuit referring

to in the trivial category. Um. So you have now, I think our headcount will be higher in both salary and obviously in hourly um. But in the short term of the next few months, we expect to see, like I said, off the attempt stated reduction in UH salary salaried workforce, which is actually just really only three or three and a half a cent reduction in total headcount and not a super material should we jump to that

law that That third elon Musk the uncontroversial one. In politics, you've indicated that the Florida Governor Ronda Santis is someone you could get behind if he ran for president. I wondered, if you're still in that position, and whether you would, for instance, think about supporting Donald Trump if he were to run. Well, I was simply asked if there was if I had decided on who I would be supporting in the next presidential race, and I said I had

not decided if I would support. Then I was asked, well, who might you be leaning towards. I said, possibly to Stantus. And now and now I'm asking you about Trump whether you would consider him. Um, I think I'm undersided at this point on that election. I wanted you talked about putting money behind a supermoderate super fact in the US, and I wondered, how much money do you think you're going to put into that? What kind of support would you push? I have not decided on an amount, but

it would be something some non trobrial figure I think. Um, I mean at least non trivial could mean a lot. Sorry, non trivial could mean a lot of money. With you, I was guessing, well, I don't know. I'm not decided on the exact amount, but um past to be twenty or twenty five million dollars just on that issue. I mean, again, you look at the sans what the Santon says m you look at what Trump says, Um and those sort

of policies. They again the people who make a large noise about China, And I wondered whether you thought that was also an issue few in terms of business in China. Um. Well, no, I don't think so. Straight. Good morning. I'm Karen Moscow along with the Nathan Hangar. This is Bloomberg daybreak and we're about three hours away from the open of US trading. Time for the fine things you need to notice start your day. Brought to you by Interactive Brokers. Indirective Brokers

Global Analysts helps you find new global investment opportunities. To diversify your portfolio and discover undervalued companies that may have greater growth potential. Try i VC our Global Analysts today at i v k R dot com slash g A first US futures are searching this morning. Last week, to trillion dollars in market value was a raised from the S and P five hundred. This week, markets react to congressional testimony from fitchare J. Powell, who delivers a set

Trombank semi annual report at Monetary Policy tomorrow. Well ahead of that, Karen calls for appending recession are growing Louder Bloomberg's Rnda Young joins US Live with the details. Good morning, Nina, Good morning Nathan. Elon Musk and Goldman Sachs are the latest to warn that the US economy could fall into a recession. While Musk predicted happening sometime in the near future, Goldman Sachs now sees a thirty percent chance of entering

a recession over the next year. That's up from previously and Robini Macroe Associate CEO Norio Robini expects a 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 Renita Young, Bloomberg Daybreak, all right, we need to thank you. Over the weekend of 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. Summers made their 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. President Biden's deciding whether to suspend the federal gasoline tax i hope looking for a President Biden says he's looking for more data ahead of that decision he expects to make later this week. Treasury Secretary Janet Yellen says she supports the idea meantime x on Mobile says global oil markets

may remain tight for another three to five years. CEO Darren Woods made the comments at the Guitar Economic Forums, saying it's largely due to a lack of investment since the pandemic began. We have some emine news this morning. Karen Jet Blue is raising it's offer to buy bargain carrier Spirit Airlines. The new bid values of the company at about three point seven billion dollars. And that's the five things you need to notice start your day. Brought

to you by Interactive Brokers. And right now, futures are higher. US in P futures up sixty seven points down futures up four hundred ninety seven, and nasday futures up two hundred nine. Ten year Treasury done eleven thirty seconds the three point to six percent, and they yield on the two year three point to zero percent. Nine X Screwed oil is up two point three percent, up two dollars fifty two cents at a hundred twelve dollars eight cents

of barrel. The Euro one point oh five six five against the dollar, and bitcoin this morning is higher, up twenty one one hundred eighty dollars. Straight ahead your latest local headlines plus a check of sports, and this is Bloomberg Exparen sixty three on Wall Street, sixty five degrees in Central Park. Starting to see a volume build up in the Hudson River crossings. Will get the details for you in traffic. First, Michael Barr has more on what's

going on in New York and around the world. Good morning, Michael, Good morning Nathan. New York Governor Kathy hoc Will signed a state law protecting voting rights at a signing ceremony, and Brooklyn Governor Hocal said me, you work is preserving voting rights while they are under attack around the country. The shocking revelation that there are people out there who are so firm and their belief that Donald Trump should remained their president fostered by him that they literally attacked

our capital. Governor Hokel says the John Lewis Voting Rights of New York is named after federal legislation that had passed the House last year but has not yet passed the Senate. The householct Committee investigating the January sixth insurrection convenes again later today for its fourth public hearing. This time, the hearing is from mostly Republican officials on how former President Donald Trump and his allies try 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 the jump a curb in Midtown Manhattan, injuring six people. Police say the cab struck a cyclist on Broadway, then veered off the road, jumped the sidewalk, and struct two em in on the sidewalk, pinning them against the wall of a building. Up to twenty passers by immediately jumped into action, trying to lift the cab off the two women. 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 Ohio. Two more we're visiting from Mexico. All of the victims are expected to recover.

Anguish sorrow, tears and questions. Last night, during the first school board meeting after the horrific massacre inside the rob Elementary School in Yuvaldi, Texas, several investigations are underway trying to find out why the school system's police chief waited for over an hour to stom the classroom and end the shooting rampage. At the school board meeting, this man asked for the chief, Pete Arodondo, to be fired. Send them on disuti, call it whatever you want to call it,

Suspend them, penny termination, It's an insult. Two injury, nineteen children and two teachers died. Tens of thousands of railway workers have walked off the job in Britain, bringing the train network to a crawl in the country's biggest transit

strike in three decades. Global News twenty four hours a day on air and on Bloomberg Quick Take power by more than twenty seven hundred journalists and analysts in more than a hundred twenty countries on Michael Barner, this is Bloomberg, Nathan, thank you, Michael, almost six thirty six on Wall Street. John Stasher has the Bloomberg sports up there all right, Nathan,

Yankees stopped when number fifty Sunday in Toronto, bhud. They suddenly scored seven runs over the seventh and Eighthittienes and one, ten and nine and eighthen in struggle for the Yanks again at Tampa Bay, the Rais didn't have a hit off. Garrett called for the first seven. They broke up the no hitter, and then they got the Clay Holmes, who had not a lot of runs its opening day. They scored twice. The game was tied in the ninth inning and runner goes on and hit in the air to

right Jeep Margo back against the wall. That ball is off the wall and Margo is down. The center fielder has to go retrieve the ball. Donald symbols score, Higgs will stop at third, and the Eggies take a three to two lead on a triple figs and X one four to two. So they've won ten of eleven seventeen of the last nineteen. Mets won a day game at the Marlon six. Not think David Peterson got to winn as the Mexic proved the twenty four and ten at

City Field. They've called up Don Smith. He's coming back to the minors. They'll find out today about Jeff McNeil's hamstring injury. Headed for an m r I McNeil batting three seven Sanley Cup final of Tampa Bay. The Lightning bounced back from that seven nothing loss in Game two, scored four time second period Beach Colorado six to two with six different goal scores. The ass now leave the

series two and one. A report in The Athletic that there is an impass between the Nets and Kyrie Irving and the writing was on the wall with comments made by Nets GM Shawn Marx. He said he wants players who are selfless and available, and that's not Kyrie, who thinks he and Kevin ranchhould have a managerial with the team. If Irving rejects his thirty seven million dollar option, he becomes a free agent. I'm stactually that wear Bloomberg Sports Okay,

John thanks six thirty seven on Wall Street. Time to take a look at stock. Some of the names moving in the pre market. For that, We're joined by Bloomberg Radio and TV markets correspondent Creedy Gupta on a risk on return to a holiday short and week. Good morning, Crety, what's your ry? You decided a very good day to come back. The dream team is back here. I want to start off with Leonard, you did have a or I've been told to pronounced Lenar. I've heard it both ways,

but let's go Lenar. Okay, Ellie, And as your taker up one, of course, this is the home builders Company. This is really important here because as we talk about the cracks in the economy, Leonard or Lenar, I'm gonna I'm gonna make a mistake all day long. I can already tell that you're coming out with earnings. They beat their earnings or purchase contracts rose four percent from a year earlier. But get this, Nathan, this really speaks to the strength of the green back. Here the dollar value

of its seals increased twenty percent. So per just contracts up four percent, the dollar value increased once again, it speaks to the strength of the dollar. And I think this quote is really interesting here from their CEO. They said the weight of a rapid dupling of interest rates over six months, together with accelerated price appreciation, began to drive buyers in many markets to pause and reconsider. We

began to see these effects after the quarter end. So basically he's going on, he's warning, well, some of these interest rate hikes that we've seen, um the fifty basis points in in June, and may E sees me in seventy five basis points that we saw last week as well, those are going to have effects, perhaps delayed effects, but effects nonetheless on the housing market. Yeah. Really interesting macro

perspective there. I wonder if you're looking at some of the stocks related to Elon Musk after his interview overnight with our John Nicklethwaite. Yeah, I mean, how can you start a week without talking about Elon Musk. You have to. So let's start with Tesla and Twitter. I'll give you the share action first. T s l A up about three point four percent in the pre market, Twitter as well,

about two point seven percent in the pre market. This comes after, of course, Elon must beats with our very own John Michael with the Waiter, editor in chief over at the Cutter Economic Forum, saying that the CEO label at the Social media firm was less important than driving the product, something he has said before, and that Tesla will cut its salaried workforce by about ten percent over

the next three months. So the takeaway here for both markets because remember Twitter and Tesla, they tend to have that inverse relationship when one goes up, the other goes down. Um. The idea here is that he is still actively talking about this deal, So anytime he suggests any sort of interest or plans or anything like that, it does boost Twitter shares, and that's kind of the at least the mindset in the pre market that Twitter shares or Twitter

investors are really pushing the stock higher. The Tesla part is interesting because they're talking about cutting costs, and remember they've already hiked their prices as well, for thinking for the third time last week this year. So really they're dealing with macroeconomic issues and investors seeing, well, look, they're working even harder to uh to get those costs under control. And he keeps saying he sees a recession coming pretty soon. Thanks for this. Creedy has always been Radio and TV

Markets correspondent Creedy Gupta. Right now, SMP futures are higher, up sixty six points. Staff futures up for under ninety das deck futures higher by two d seven points, the tenure treasury down thirteen thirty seconds, yield three point to seven per cent. You're listening to Bloomberg Day Break Bloomberg eleven three oh weather chance or afternoon showers today with a high near eighty degrees and can't last the rule out the shower and storm risk tomorrow or the next day.

Right now, clear sky sixty five degrees 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, He's a Bloomberg Business Flash and I'm Karen Moscow Futures on the rise. This morning we get to the first word breaking news dash for today's morning call in here South Na Daria, Tatiana, Good morning, Good morning, Karen.

Like you said, it's green on the screen. For US jocks today, five hundred points s and ps up seventeen nas jack up two hundred. Treasuries are struggling, however, the US tenure yield higher by five basis points to two to three point at twenty seven percent. A looking cross as said, Oil is up two percent and Bitcoin is higher,

holding above twenty one thousand. On the economic front, today, existing home sales for May at ten o'clock and in early trading, test Play is up three percent after CEO Mask said the company will be cutting its salaried workforce by about ten percent, and Revlon extending last week's rally after filing for bankruptcy. Those years are up fourteen percent

this morning. Regarding earnings, home builder lanar bit revenue estimates, and in deal news, Spirit Airlines is rallying after Jet Blue raised this offer to thirty three fifty from thirty one fifty and wrapping things up, International Paper and Restaurant cutt to neutral at City and the w was gung graded to eco weight by Morgan Stanley. Lie from the First and Breaking News Desk. I'm Tatiana, Daria Karen, Sorry, Tantiana, thank you, and here Lie breaking news of your Bloomberg

type squawk on your terminal scue. You a w K and that's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. Today's January six Committee hearing on Capitol Hill will focus on what panel members say was former President Trump's unpresidented push to get states to reject the election results. Former Vice President Pennce called January six

the Tragic Day while blasting Democrats for the hearings. The Supreme Court has a number of cases to finish that could come today. After Elite Draft opinion, Court watchers expect the Supreme Court will overturn part of all of Roe v. Wade's decision guaranteeing women the right to an abortion. In baseball, the Yankees, Mets, and Red Sox won. The Giants lost in the NHL Stanley Cup Final. The Lightning one game

three over the Avalanche. On this first day of summer, Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalist and analysts more than a hundred twenty countries. Michael Varn this is Bloomberg. The following commentary is from Bloomberg Opinion. Big boxy apartment buildings are multiplying faster than ever. I'm Justin Fox, the columnist for Bloomberg Opinion. Amid the materials shortages,

price hikes and other craziness, of the housing market. Last year, something remarkable happened. US builders completed more apartments in large buildings than ever before. They didn't build more apartments overall. The multifamily construction records set in the early nineteen seventies appeared to be safe for all time. But back then most new apartments were in buildings of less than twenty units.

Now five percent are in buildings of twenty units or more, in fifty seven percent in buildings of fifty units are more. What's striving this mainly the economics of building. Getting permission to build is harder than it used to be an institutional investors and other big players increasingly dominate multifamily development, so projects have to be substantial to be worth the effort. I'm justin Fox. For more opinion, please go to Bloomberg dot com, Slash Opinion or O P I n go

on the Bloomberg terminal. These has been Bloomberg Opinion and Bloomberg Opinion commentaries can be heard every weekday at this time and terminal customers can read more at O P I n go. It is says fifty on Wall Street. Return to news and science and technology now at the Bloomberg and j I T STEM Report. It has brought to you by New Jersey Institute of Technology, ranked to top fifty national public university by US News and World Report and at top ten for best career placement among

public schools by the Princeton Review. More at n j I T DOT e DU and Here's What's making news Now and Science, Technology, Engineering and Math and China, the coronavirus outbreak is shifting to its south coast. A flare up in Shenzen has triggered Mouse to staying in a lockdown of some neighborhoods. Meanwhile, gambling how Macaw is racing to stop its first outbreak in eight months until seeking six five million dollars in interest from the European Commission.

Following a historic court victory that overturned a billion dollar any Trust fund earlier this year. In a challenge at the US General Court, Intel asked the Luxembourg based Tribunal to order the EU to pay the sum save The amount consists of default interests on the main fine minus the interest that Commission had already paid back. And now so a fuel that's huge. Moon rocket for the first time yesterday and went ahead with a critical countdown test

despite a fuel line leak. This was NASA's fourth crack at the all important dress rehearsal, the last major milestone before the New Moon Rockets long awaited launch debut. The testing delays that pushed the actual launch with an empty Orion capsule flying around the Moon and back to the end of August at the earliest. And that's a Bloomberg and j I t Stem report. Nathan Okay, Karen, thank you. We are I from the Bloomberg Interactive Brokers studios where

it's six fifty two on Wall Street. Time now to check what's going on in DC. Some of the top stories in our nation's capital include President Biden saying recession is avoidable after a talk over the weekend with former Treasury Secretary Larry Summers, President saying he's close to decisions on a gas tax holiday and student debt. And the January six Committee returns with a focus on Georgia and

Mark Meadows role. For more on all these stories, we are joined this morning by Bloomberg Washington correspondent host of sound On on Bloomberg Radio, Joe Matthew. Joe, good morning, Well, the President may be downplaying the risk of recession, but Wall Street certainly is not. You know, and it's interesting when you hear the president talk you after remember, well, this is the president of the United States who goes out of his or her way in the future to

not talk down the economy. For starters, If you're the president, you're not going to say that in a recession is guaranteed. But I would encourage people to listen to the full remarks that the President made on the beach. Nothing is a vitable as the headline, but he went on to say that I think we're gonna be able to get a change in Medicare and a reduction of the cost of insulin. As he's talking about this package of legislation that may or may not see the light of day,

Nathan aimed at lowering costs. It's kind of a rebuild of the Build Back Better plan that failed to pass last year. It's a much smaller version. There was a meeting on this last week with congressional leaders. This is real. It could pass through reconciliation. If you remember this stuff from last year. As we all learned Schoolhouse Rock, that would be Democrats only voting. But we don't know if

Joe Mansion is on board with this. There's no legislation to vote on yet and no guarantee that it could pass. So if you take that off the table, I wonder what the President might say about a recession. In that case, it could be a bit more likely. Yeah, And when he's talking about things like bringing down insulin prices and prescription drugs, I mean, those are really things on the margins compared to the big package that he had been

looking for before those talks broke down. Is there any reason at this point Joe to think that the new talks, the talks that are still underway, will have any better chance of success. Well, I think you could argue that, in principle, they'd have a better chance because it's smaller. If you remember all the time we've spent hashing out what the final price tag would be for Joe Mansion's appetite. Would it be one point five trillion, as he said that was his top line number. Could it be more

or less than that? There are a lot of things that we learned during that experience that I don't think the White House and Democratic leaders on Capitol Hill, UH will be looking to relive if this happens it's going to be something much more stripped down, but also therefore could have less impact. They're also talking about a couple of other ideas, though Nathan. A gas tax holiday is still on the table, they say, and even rebate cards that you'd use at the gas pump. The President was

asked about this on his beach walk as well. All on the table, he says, But these would require Congressional approval. They are not new ideas, and in some cases, including the gas tax holiday, legislation is already out there. It's really not for Joe Biden to decide, as Congress need to vote on it. Yeah. And one other thing that the President mentioned is that he plans to meet with oil industry executives. This meean he has been really harsh

on the oil industry over the last couple of weeks. Yeah, and interesting, he's not going to be in that meeting himself.

He was asked by reporters there, said no, my team is going to be doing that, remembering that x on Mobile, Chevron and others responded to take issue with the letter that the White House sent last week, saying that they were not investing, they were simply taking these massive profits more money than God, I think is how he put it in terms of x on and sending it back to shareholders either by by way of dividends stock repurchases,

as opposed to putting it into the ground. We have a major refining bottleneck here that also needs to be acknowledged. We haven't built a new refinery in this country since the nineteen seventies, and more of them are slated to close.

So this is a complicated conversation and it's one that apparently the President will not be in the room for himself in our last minute here, Joe, can you see up the next round of January six hearings coming up this afternoon for yeah, this is it's an afternoon session

starts one o'clock Washington time, not in prime time. And today it's gonna be focusing on the pressure, uh that Donald Trump and and his associates put on state legislatures and state lawmakers, including Georgia's Secretary of State Brad Raethinsburger, who just uh survived a primary challenge from a Trump endorsed candidate. We're gonna be hearing from Arizona, Georgia and other states that we're getting the phone calls and getting the pressure from Donald Trump and Mark Meadows in that time.

We also expect to have new video today. Nathan Political just reporting now from a documentary maker who was embedded with Trump himself on the campaign trail and in the White House the days leading up to and after January six. Much more to watch from the January six hearings this afternoon. I imagine we'll have much more analysis coming up on Bloomberg. Sound On with Joe Matthew weekdays five pm. Wall Street

Time right here on Bloomberg Radio. Joe, as always, thanks for being with us this morning, and you can read much more about these stories on Bloomberg dot com or on the Bloomberg terminal, and follow all the latest on Bloomberg Radio in Washington, Bloomberg N one and one oh five point seven FM h D two. Heading into a holiday short and training week, we're starting off with gains for risk assets. We have SMP futures right now up sixty five point, staff futures of four hundred seventy six,

NAZDAC futures higher by two hundred eight points. The tenure treasury is down thirteen thirty seconds for a yield of three point to seven percent yield on the two year close to three point to one percent. Nim x screwed up two point three percent or two dollars fifty two cents a hundred twelve dollars eight cents of barrel. Comex golled down two tenths per cent or four dollars ten cents eighteen thirty six fifty announced Bitcoin right around twenty

one thousand dollars Bloomberg surveillances. Next for Karen Moscow. I'm Nathan Hagar, and this is Bloomberg