Bloomberg Daybreak: June 22, 2022 - Hour 2 (Radio)

Look for rent and greases in New York City. Plus Trump backed Katie Britt beats Maga mull Brooks in the Alabama Senate primary. Michael barn Ahead, I'm John Dashdown swards home runs did in the Yankees, and a laws at Tampa Bay Lots studded laws with the medicine euston. The

Stanley Cup Final continues tonight. That's all Strendy ahead on Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco, Syrias x AM one nine team, and around the world on Bloomberg Radio dot Com and via the Bloomberg Business app. Good morning. I'm Nathan Hagard and

I'm Karen. Moscow and US Dock Index futures are lower this morning, coming up to six oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On bloomberg S and P Future is down about fifty eight points to DOWN futures down four hundred and NASDAG futures down to two hundred and one. The decks in Germany's down two point two percent. Ten year treasury of seventeen thirty seconds, you know, three point to one percent, and they yield on the two year is

at three point one one percent. The euro one point oh five one nine against the dollar, Nathan Karen. The main event today congressional testimony on the economy from J Powell. Later this morning, the Fed Chairman appears before the Senate Banking Committee. We get a preview from Bloomberg's Michael McKee. Politics always plays a role in the Fed Chairman's appearances, and there will no doubt be efforts to pin the blame for inflation on someone. That's a topic Powell will duck.

He'll also try to avoid it, spreassing an opinion on various fiscal responses to inflation now under consideration on Capitol Hill, such as a gas tax suspension. The real key question for the chairman is how high and how fast the Fed needs to raise interest rates. The latest FED forecast is to just under four percent by the end of the year, just over it in two thousand twenty three, but there has been pushback from investors and analysts who say the Central Bank may have to go much higher

than that. Paul's answer may have a major impact on trading. Michael McKee, Bloomberg Daybreak. Alright, Mike, thanks, and you can catch full coverage of FED share pals testimony starting around am Wall Street time on Bloomberg Radio and television. Well, Nathan, As investors awaited word from Powell, there are more calls this morning for the Fed to get more aggressive. Richmond Fan president Thomas Barkin wants to raise interest rates as fast as possible, as long as it doesn't cause undue

harm to markets are the economy. We're in a situation where inflation is high, it's broad based, it's persistent, and rates are so well below normal, and so I think the spirit is you want to get back to where you want to go as fast as you can without breaking anything. And Richmond Fed President Thomas Barkin also says he does not expect the economy to swiftly return to pre pandemic patterns. A more aggressive FED, weaker demand for goods and supply shocks are leading the way for more

recession fears. Let's get the latest on that, live from Bloomberg's Nita Young. Good morning, Rnita, Good morning. Nathan. City Group says there's a fifty percent chance of the world economy falling into a recession, and as a result, the Bank now sees the global economy growing three percent this

year and two point eight percent in three. Economists at City Groups say if a recession did occur, it's likely to be quote garden variety, in which unemployment rises several percentage points and output experiences a couple of week quarters. Live in New York. I'm reneed a Young Bloomberg Day break.

All right, need to thank you. Inflation also a major concern overseeage today's reading in the UK as prices jump to a new four decade high, and we get the latest with the Bloomberg's You Win pots in London, Good morning, you want, Good morning, cardaathan UK inflation in the etomy ticking up to nine point one. The reading reflects broad increases in the cost of everything from fuel and electricity

to food and beverages. There are also more signs of growing price pressures at the wholesale level, with raw material costs increasing by the most on records. The Bank of England says CPI could hit eleven per cents later this year. In London, Immune parts Bloo boo day breaking, all right you and thanks for session fears and news of the Biden administrations prepared to step up its fight against gas prices.

Have oil on the decline once again. Right now West Texas Intermediate cruise down five percent or five dollars forty five cents at a hundred four dollars seven cents of barrel Brent's trading at a hundred nine fifty six. Later today, President Biden will ask Congress to enact a three month gasoline tax holiday. Bloomberg said. Baxter has the story. The President is trying to cool the soaring pump prices as we head under the summer travel season. Mr Biden says

it will not hurt infrastructure. Is it going to in fact make it difficult to maintain our roads. The answer is we have plenty of capacity to do that. Biden also says in the long run, there is plenty of oil to drill nine thousand oil fields in San Francisco. I'm at Baxter Bloomberg Daybreak and thank you. Also in Washington, the Senate has voted to advance a bypartisan gun safety bill, and a vote on final passage it's expected later this week.

Backer is called the measure the biggest breakthrough on the issue in decades. It's designed to improve background checks, secure schools,

and give states federal funds to combat gun violence. Isaac Baltzansky is director of policy Research at bt I G. But as we've learned time and time again, the motivator for lawmakers is so often the calendar and the jet fumes are also in play here because they're trying to leave town for two weeks at the end of this week, and that is an undeniable motivator, especially for these lawmakers

who are running for re election. Bt I is Isaac balt Tanski spoke with Our Watch and corresponded Joe Matthew on Bloomberg Sound on Catch the Program weekdays at five PM Eastern on Bloomberg Radio here. In the latest round of hearings into the January six attack at the US Capital is in the Books. Testimony yesterday focused on state and local officials and the pressure they faced from former President Donald Trump to overturn the election. Committee Democrat Adam

Schiff says the system held, but barely. Anyone who got in the way of Donald Trump's continued hold on power after he lost the election was the subject of a dangerous and escalating campaign of pressure. Congressman Schiff and other committee members heard from Georgia's Secretary of State Brad Raethensburger.

He says he faced a campaign of intimidation, including threats to his wife, and then some people broke into my daughter in laws home and I sent has passed, and she's a widow and has two kids, and so we're very concerned about her safety. Also, Secretary of State Raffensburger says he followed every rabbit hole to make sure George's numbers were accurate, but he says the former president came

up shot it. Right Now, SMP futures are down fifty three point staff futures down three seventy two Das deck futures are lower by a hundred eighty eight points. The tenure treasury is up sixteen thirty seconds. The yield three point to one percent on the tenure note yield on the two year three point one one. Straight ahead your latest local headlines into check of sports. This is Bloomberg six oh seven on Wall Street where at sixty six degrees in Central Park got an accident on the southbound

Deagan passed the Cross Bronx Expressway. Details 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. Rent is going up in New York City. Last night, the Rent Guidelines Board voted to increase one year and two year leases. On a five four vote. The board decided to raise the rent for rent stabilized departments to three for one year leases. It will go up to

five percent for two year leases. Katie Bread has won the Republican runoff against Representative Mobe Brooks for retiring Alabama Senator Richard Shelby's seat. Britt Shelby's former chief of staff, gained ground after Brooks lost. Donald Trump's endorsement in March, Britt got forty five percent, while Brooks received. Washington d C. Mayor Muriel Bowser appears to be on hairway to winning a third consecutive term. Bowser one yesterday's Democratic primary. Bowser

got fifty percent, while second place Robert White received. They had of the Texas Department of Public Safety is now calling the law enforcement response to the massacre at the rob Elementary School and abject failure. Colonel Steve McCall says that there were enough police officers on hand that could have stopped the gunman quickly after he entered the building, but they waited in the school hallway for nearly an hour. Not enough training was done in the situation, playing simple

because a bad decision and terrible decisions. Terrible decisions were made by the unseen commander and should have never happened Simple, Colonel McCall say police failed to engage sooner than three it's into the attack. A jury in California sign it with a woman who filed a sex abuse lawsuit against comedian Bill Cosby. Jurors found Cosby sexually abused the then sixteen year old girl at the Playboy Mansion in nineteen seventy five, the jury awarded Judy Huff, now sixty four,

a half a million dollars. Attorney Gloria already today our client Judy Huff one real change because she fought Phil Cosby, one step at a time for over seven and a half years. Attorney Gloria Allread. Cosby has denied the allegations. Twenty five people in New York City I presumed to

have tested positive for monkey pocks. New York City Mayor Eric Adams and health officials lowered the city's COVID nineteen alert level to medium from high, and New York City Broadway theaters have agreed to adopt an optional masking policy of the month of July. The new policy ends a near you long policy of requiring facial coverings inside theaters

at all times. Global News twenty four hours a day on air and on Bloomberg Quick Take power by more than journalists analysts more than a twenty countries on Michael bar this is Bloomberg, alright, Michael, thank you? Six ten on Wall Street. John stash As the Bloomberg Sports Update, all right. Nathan esther Cortez has been a revelation for the Yankees. Eight of his first nine starts, he didn't allow more than two runs, but he has come back

to earth a bit that Tampa Bay. Cortez served up two home runs in the first fit, and he sucked Parade has two winnings later built at his second of the game and not wanting Cortez to face Parades a third time, he came out in the fifth and this was Clark Smith's first pitch. Alright. Tampa Bay won the game five to four. Cortez is e r A has gone from one point three a month ago to two points met started Trevor Williams in Houston. He would not be in the rotation if not for the Max Scherzer

injury and William Stella one and four. Astros hit three home runs they wanted eight to two. Toronto's Austin Matthews has scored sixty goals named NHL m v P Gorss. Sturchin finished third. He did as expected when the Vezina Trophy third ranger goally to win the award. Mike Richter and John Van beat book for the others. Stanley Cup Finals zooms tonight in Tampa, Colorado Leagus two games to one. Rob Grinkowski, having retired once before, is now doing it again.

He played nine years in New England, came out of retirement to play two more with Tom Brady and Tampa Bay, and together they won a Super Bowl for the fourth time. While Brooks kept is not having a good year, he has won four majors. He's a big name and now he's the latest to vote the PGA Tour for the new Live Tour. Kept It said last week he hadn't

given the Live Tour much fun. John Stash Edward Blumberg sports all right, John, thanks SMB futures down fifty two points, staff futures down to fifty six, dance that features are lower by a hundred eighty three points. The tenure treasury yield three point two two percent. Ahead of Chairman Powell's testimony in the Senate. This is Bloomberg Bloomberg Daybreak, brought to you by Hofstra University's Frank geez Are School of Business, Top rankings online NBA program with a real world foundation.

Learn more at Hofstrad dot edu. Slash Go grad markets headlines and breaking news twenty four hours a day at Bloomberg dot com. The Bloomberg Business at and at Bloomberg quick tape this is a Bloomberg business blash and I'm Karen Moscow. Stocks in Europe are falling along with US stock index futures as well as commodities, and made ever louder warnings that federal reserve at rate hikes may lead

to an economic downturn. We checked the markets every fifteen minutes throughout the trading day on bloomberg S and P futures down fifty two points, DAL futures down three fifty five, Annas day futures down a hundred eighties six. The decks in Germany's down about to per cent. The ten year treasury up thirteen thirty seconds, held three point to two per cent yield done a two year three point one

two percent nine mix. Crude oil is down more than five percent, down five dollars fifty six cents and a hundred three dollars ninety six cents of barrel comex school there is down half percent or nine dollars thirty cents at eighteen twenty nine fifty an ounce. The euro one point oh five one eight against the dollar, British found one point two to five one and the end at one thirty six point one four. Looking at bitcoin, it's down more than two percent at twenty thousand, three hundred

ninety dollars. 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. Katie Britt won the Republican nomination for a cent and in Alabama, defeating six term Congressman Mob Brooks in a primary runoff. Britt received

forty five percent, while Brooks got twenty nine percent. Meanwhile, in Georgia, trucking company executive Mike Collins defeated Vernon Jones in the Republican primary runoff for Georgia's tenth congressional district. Donald Trump endorsed Jones, while Governor Brian Kemp back Collins, who got sixty four percent. DC Mayor Muriel Bowser has won the Democratic primary, putting her on track for a

third term to lead the nation's capital. Bowser received fifty percent of the vote compared to second place Robert White. At In baseball, the Yankees and Mets lost, the Red Sox won, the Nationals beat the Orioles, the Giants won, the A's lost. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than undred journalists and analysts are more than a hundred

twenty countries. I'm Michael Barr. This is Bloomberg. This is the Big Take, the best of Bloomberg's in depth original reporting from around the globe. This is a really fast moving story that's of course a lot of outrage among investors. This is so fascinating. A market shutdown in a way it's never done before. That's gonna have consequences for years to come. The Big Take on Bloomberg Radio coming up to six twenty on Wall Street Life from the Bloomberg

interactor Broker's vidios. This is Bloomberg Daybreak, and our big take this morning is on the housing market and growing signs. The real estate boom over the last few years is on the brink of bust as central banks bent on fighting inflation move fast on interest rates. Bloomberg Chief Asia Economics correspondent and the Current wrote the Big Take this morning and end us here with us live from Hong Kong to talk more about it, and a great to

have you with us this morning. Congratulations on the piece, and I mean we're already seeing the rains pull in on the US housing market with mortgage rates now close to six percent. Is is that what we're seeing globally as well. Yeah, so what we're seeing now is something of a reverse in nates. And do you know the back story was when the pandemic came, borrowing costs were brought down to historic loads, and of course central banks

put a lot of money into their economies. The end results we saw a big house price boom right around the world, not just the rich world, but also in emerging economies. Well, of course, now all of that is being on round at the fretty rapid clip in terms of central banks are raising interest rates to bring down inflation, and that means mortgage costs and lonely payment costs are going up. And they they there are are already signs that house prices are cooling in some places maturity that's

been and take New Zealand for example. In other places signs that it's they're just beginning to come up the ball and economists are saying it could be worse than a few months from now. So to be clear, you know, we're not yet at the two thousand and eight style crash territory. But certainly the big boom of the last few years is definitely coming to an end. Now we could talk a little bit more about what makes this potential crash in the housing market different from what we

saw in two thousand eight. I mean, there are a lot more guardrails in place for housing than there were back then. Right, absolutely right, So let's do the two thousand comparison. This time around. Banks are supposed to be in better order. Remember all of the years of ex regulations have got their balance sheets and better condition. Consumers are in good order. The are cashed up after the pandemic years when they when they increase their evening during

that time. The labor markets around the world are still quite strong in fact, as you know, and many economies like us, the shortage of labor is the issue. And of course let's not forget that boring costs are coming from a pretty low base. So depending where you are on that mortgage spectrum, your interest rates still nothing like what they might have been, say, in previous generations. So

the thinking is that the households should be in better order. Nonetheless, we are also looking at something of a synchronized monetary policy typing cycle the kind of which we haven't seen for some decades. And when you have mortgage rates going up the way that they are around the world, then inevitably there will be a hit to household wealth. And that's where you might start seeing the pain trickling through

the through the real economy. Well, are we starting to see signs and that the rise in interest rates that we're seeing is starting to take a hit on overall housing prices and what does that mean for the overall economy? But yeah, so our colleagues that Bloomberg Economics have run some big numbers on this in terms some of the key rates that price to rent and home price income ratios. And they're having a look at countries such as, for example,

of Canada, the US New Zealand. They're seeing those hot residential markets looking especially vulnerable to to a downturn out that wall to happen, it will be quite a flow through because construction and home buying is the ultimate and multi clar it's the big driver of economic activity in most economies around the world. Now you reverse that, you've a falling home prices, that's going to a road household wealth. It's obviously going to hammer consumer confidence. It puts the

brakes on future development. It's hard to rev up people's confidence when they're paying paying back higher interest rates on an asset that's losing value. And then again it flows through the whole properic construction and the sales story. So that's the big concern that if we do start to see it starts to see a material correction in these house prices, it will reportrough the economy that's coming at ton of course, when already we're seeing activity indicators screwing

around the world. City Group out today warning a global recession that looks like it could be fifty fifties. So on top of everything that's happening inflation, supply chain problems, energy, food crisis, housing crisis would be the last thing the police makers need right now and certainly the important thing to look at as a household wealth is a significant portion of many households wealth in terms of real estate

prices and the current chief. As your economics correspondent for Bloomberg News, thanks again for being with us for more on and as Big Take story you can find on Bloomberg dot com slash Big Take. It's also the top story on the home page at Bloomberg dot com this morning, and you can find all our big takes on the Bloomberg terminal at ANI Big Take Go SMP Future is now down fifty one points. Now futures down three forty eight NASDAK futures are lower by a hundred eighty two points.

Just ahead the five things you need to notice start or day, including Sherman Palace testimony on Capitol Hill. This is Bloomberg Bloomberg eleven three oh weather mostly cloudy, scattered showers across Long Island in Connecticut. Highs in the low seventies today, will be in the upper seventies with clouds tomorrow low eighties by Friday. Currently sixty six in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York.

Bloomberg E Living Freeland to Washington, d C, Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the Country, Sirius XM to and around the globe, the Bloomberg Business apt and Bloomberg Radio dot Com. This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm Nathan Hager and I'm Karen Moscow. We're just about three hours away from the open of US trading. Time to the five things you need to notice start your day.

Brought to you by I v k R Investment Advisers switched to Interactive Brokers for lowest cost global trading and turnkey custody solutions no ticket charges and no conflicts of your interests at ibkr dot com slash r I A first FED chairman and J Powell preparing to appear before the Senate Banking Committee this morning. Powell's expected to feel questions about how high and fast he needs to raise

interest rates to slow inflation. At the same time, there are calls for the central Bank to be more aggressive. Richmond Fed President Thomas Barkin wants to raise rates as fast as possible, but avoid causing undue harm to market through the economy. I think you have to be flexible to what happens. The faster inflation comes down, the less you're gonna have to do in terms of restricted monetary policy. But the more difficult the external forces are, the more

you'll have to do. And so I'm watching that carefully and Richmond Fed President Thomas Barkin said he supported the decision to raise raise seventy five basis points earlier this month. You can catch full coverage of FED Chairman Powell's Senate testimony today around am Wall Street time on Bloomberg Radio and television. We'll Karen a more aggressive FED. Weaker demand and supply shocks are leading the way for more recession fears,

and Bloomberg's needing Young joints us live with that. Good morning, Good morning. Nathan. City Group says there's a fifty percent chance of the world economy falling into a recession. As a result, the Bank now sees the global economy growing three percent this year and two point eight percent in Economists at City Groups say if a recession did occur, it's likely to be quote garden variety in which unemployment rises and output experiences a couple of week quarters live

in New York. I'm gonna need a Young Bloomberg daybreak. All right, we need to thank you all. Oil declining As President Biden prepares to ask Congress to enact gasoline tax holiday for three months, David Rosenberg of Rosenberg Research and Associate says it won't provide much relief for consumers. We're talking about eighteen cents for a short period of time, so it's nothing more than a gimmick politics. We motivated to show that the White House is trying to do

something about inflation. David Rosenberg at Rosenberg Research made the comments earlier on Bloomberg Daybreak and checking oil prices now and I make screwed oils down four point seven or five dollars ten cents at a hundred four dollars forty two cents of barrel. Brent is down four point two at a hundred nine dollars five cents. Also in Washington, Karen, the Senate's advanced a bipartisan gun safety bill. A vote on final passages expected later this week. And that's the

five things you need to notice start your day. Brought to you by Interactive Brokers Again, Future is lower this morning, Straight ahead your latest local headlines. This is Bloomberg. Thank you, Karen. Sixty three on Wall Street, sixty six degrees in Central Park out delays building on the George Washington Bridge with an accident on the southbound EIG and details count up in traffic. First Michael Barr with what else is going on in New York and around the world? Good morning Michael,

Good morning Nathan. It's going to cost more to live in New York City. Last night, the Rent Guidelines Board voted to increase rents for those who live in rent stabilized departments by a five four margin. The Rent Board gave a green light to a three increase on one year leases. For two year leases, it will be a five percent increase. The January six Committees hearing yesterday focused

on election officials in Arizona and Georgia. Former President Trump and his allies are accused of pressuring those officials to overturn the results of the twenty election. To Georgia, election workers, Ruby Freeman and her daughter testified investigators, saying that they were falsely accused of election tampering by Trump and Rudy Giuliani. The President of the United States is supposed to represent every American, not to target one, but he targeted me.

Freeman's daughter says there were a lot of people wishing death. Owner Katie Britt won the Republican nomination for Senate in Alabama, defeating six term Congressman Moe Brooks and the primary runoff. Former President Donald Trump up endorsed and then un endorsed Brooks, who had run under the banner Maga MO. Trump eventually

endorsed Britt, who received forty five percent. While brook Scott DC mayor Muriel Bowser has won the Democratic primary, putting her on track for a third term to leave the nation's capital. Bowser received fifty percent of the vote compared to second place Robert White. At civil trial juror's rule that Bill Cosby sexually abused the sixteen year old girl at the Playboy Mansion in nineteen, the Los Angeles County jury delivered the verdict in favor of Judy Houth, now

sixty four, and awarded her five hundred thousand dollars. Nathan Goldberg is one of Health's attorneys. It proves that you know you can run, but you can't hide that. No matter what he did so many years ago, a thing that you know he could just get away with it, we brought him here to this court to have justice and we won. Meanwhile, Cosby's public relations and crisis manager Andrew Wyatt called the case the biggest he would not beginning a dime with filling appeals. Tis Bey has repeatedly

denied Health's allegations. President Biden wants to remove a lot of nicotine from cigarettes to know the tobacco sold in the US. The President is hoping to okay a new rule by next spring to make them less addictive. Global News twenty four hours a day on air and on Bloomberg Quick Take Power by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barb this is Bloomberg Naked. Thank you, Michael, six thirty six.

On Wall Street, John stash Hour has the Bloomberg Sports Update. All right, Nathan, The Tampa Bay Rays made a trade just for the season started. They send Austin Meadows to Detroit for East South Parades. Yank, you's probably happy to hear that trade. Meadows somewhat of a Yankee killer. But last night Parades hit three home runs. So those shots in the first and third innings off Nestor Cortez and a two run blast in the fifth that was the

first pitch served up by reliever Flar Schmidt. Parades had one more at Patty I hit by a pitch. The Rays meet the Yanks five to four. The Mets lost Houston eight to two. Jose Altuve homer for the Astros, so did Jordan Alvarez, his nineteenth of the year three run double for Kyle Tupper's Stanley Cup final resumes tonight in Tampa with Colorado, leading to the one they handed out postseason awards last night, the m v P to Toronto's Austin Matthews after a sixty goal season. The Rangers

goalie Igorsterkin was a finalist for that Hart Trophy. He did win the Vezina for Best Goalie led the league with the goals against just over two. A settlement between Deshaun Watson and twenty of the twenty four flaintiffs suing Watson for sexual and misconduct during massages, Watson has denied any wrongdoing. Is now with the Cleveland Browns. He's awaiting discipline from the NFL. Rob Grotkowski said a statement, he walks away with his head held high. This is his

second retirement announcement. That's one more than his long time teammated, of course, still active, Tom Brady. Together they won four Super Bowls, three in New England and one with Tampa Brooks Kepta. Kepka said last week he had hardly heard of the new Live Tour. Now he's joining it. A winner of four majors, although he had struggled this year, becomes the latest big name golfer the pole the p

G A John D. Bloomberg Sports, Thank John. Six thirty seven on Wall Street Time to take a look at stocks, some of the names moving in the pre market. Bloomberg Radio and TV Markets correspondent Credy Gupta is with us this morning. Creety, what goes up apparently must come down, led by big tech this morning, led by big Tech. I mean you'll hear a familiar name here. Tesla is

really your biggest mover to the downside. T s L as your taker down about two percent in the pre market, also seeing the most volume out of all the names in the SP five right now, So right off the bat, kind of going with um a not so great indicator for what you're coming ahead in the trading session. You also have Apple, for example. We love that proxy for all of big tech. A A p L as your

taker down one point. A per said, but get this, Nathan, it's not just big Tech that's weighing on the indexes you want. You're really seeing this very broad sell off, and it's significant when you see the likes of Apple being your second highest volume mover in the pre market, right next to Occidental. Oh x Y the oil company down about we'll just shove four percent, that's your third

biggest movers. So once again, both spectrums, even the cyclical kind of more economically sensitive stocks like oil companies for example, or even cruise lines. Carnival Cruise Lines is right up there, down two point seven percent, also dropping in line. But like I said, those big tech names, and of course when we talk about those big tech names, we got to talk about the lights of the chip makers. Here A m d S your taker down one point seven percent, and video as well, n v d A down about

two point seven percent. And Nathan, I really highlight the chips makers because for you have big tech that drops, but then you have chip makers that are a little bit more volatile than big tech, and they tend to magnify the moves that you see an Apple or or Facebook now known as Meta or um Microsoft for example. So if you see a downside move of x percent, then the chip makers tend to, like I said, magnified

a little bit. Just given the supply chain concerns and geopolitics that are there so all in all a little bit of a broad sell off even in the pre market. Yeah, with all those recession calls coming in, even more of them this morning. What's going on with crypto stocks? Cretty, bitcoins down once again, Yeah, really following that macro story. And that's really where I think you have to look at the various different ways to be exposed to crypto.

So you start off with the miners here Riot blockchain for example, r IoT down one point six percent. It's kind of in a move very similar to about that draft. You're seeing Bitcoin which is down about two percent, about a twenty th handle, which is significant there. You're also have to look at investors in bitcoin as well that are extremely exposed to the cryptocurrency micro strategy, for example, taking it on the chin today m STR down about

three point three percent. And then while you're looking at it, also look at the exchanges coin based for example c o I N down four point six percent, Nathan All and all. However, you slice and dice it, you really are seeing that crypto exposure kind of becoming achilles heel for a lot of these companies. Yeah, certainly risk off.

As we wait at Chairman Pal's testimony later today. Crety goobdu Blomberg Radio and TV Markets correspondent, as always, thanks for being with us and looking at stocks as a whole. Ahead of the open, It's a down on day. Futures SMP futures are down fifty four points right now, Deal futures down period seventy nine and Nastack futures, as we said, leading the way down a hundred ninety four points. The tenure Treasury is up fourteen thirty seconds for a yield

of three point to two. This is Bloomberg Bloomberg eleven three oh whether mostly cloudy, say some scattered showers along Long Island in Connecticut, lost seventies. It will be partly mostly cloudy tomorrow, upper seventies, low eighties by Friday. Right now sixty six in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quick Tape. This

is a Bloomberg Business Flash and I'm Karen Moscow. Futures are lower this morning, and we go to the first word break a news desk for today's morning call. Here's tatian A dari A Catiana. Good morning, Good morning, Karen. Like you said, it's a down day here on Wall Street, led by Big Tech Dows down three hundred eighty points as in Piece down fifty, nas Jack down one nine looking process at. Treasuries are rallying with the U S tenure yield lower by six basis points to three point

two percent. Oil is down nearly five and Bitcoin is holding above twenty thousand after sliding about two percent. On the economic front today and be a mortgage applications here at the top of the hour and in early trading today, text talks giving back some of yesterday's gains, led by Tesla, Apple, Metta all down about two percent, but makeup giant revel On is up another eighteen percent, adding to its recent

surge post bankruptcy. Regarding earnings, furniture maker l Ez Boys up eight percent after beating estimates, and the other news in the healthcare space, small cap Precistion bio Sciences jumped as much as fort after a license deal with a nov artist or wrapping things up here signals up graded to overweight at Morgan Stanley, and Nike was downgraded at

Seaport Live from the first and breaking new desk. I'm Tatiana, Daria Karen ry Tatianna, thank you, and that's a Bloomberg Business Flash now with more on what's going on around the world. Here is Michael Barr, Michael Karen, thank you very much. Katie Britt won the Republican nomination for Senton in Alabama, defeating six term Congressman Molle Brooks in the primary runoff. Former President Donald Trump endorsed and then unendorsed Brooks.

Trump eventually endorsed Britt receive forty five percent well Brooks got. In Georgia, Mike Collins defeated Trump back Vernon Jones and the Republican primary runoff for George's tenth congressional district. Collins got. Se DC mayor Muriel Bowser has won the Democratic primary, putting her on track for a third term to lead the nation's capital. Bowser received fifty of the vote compared to second place Robert white At In baseball, the Yankees and Mets lost the Red Sox one national beat the

Orioles three zip. The Giants won the A's lost. Global News twenty four hours a day on here and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts in more than twenty countries on Michael Barr and this is Bloomberg here, all right, Michael, thank you.

At a six forty nine on Wall Street. We turned to news and science and technology now with the Bloomberg and j I T. STEM Report, brought to you by New Jersey Institute of Technology, ranked a top fifty national public university by US News and World Report and top ten for best career placement among public schools by the Princeton Review. More at n j I T DOT E d U and now here's just making news and science, Technology, engineering,

and math. President Biden nominated the former head of two federal science and engineering agencies to be a Science Advisor, who, if confirmed by the Senate, will be the first woman, person of color and immigrant to hold the cabinet level position by the nominated engineer and physicist are Roddy Profkar, who during the Obama administration directed the James Bond like

Defense It's Advanced Research Projects Agency. Senate Democrats have scrapped a forty hundred dollar bonus tax credit for electric vehicles made with the domestic union labor. The measure was opposed by Democratic Senator Joe Manchin as well as non unionized e V maker Tesla. It was to be included in the Build Back Better Spending bill. The first union to organized workers at an Apple retail store in the US says it's eager to start negotiating with the company and

it looks to build on the breakthrough elsewhere. The International Association of Machinists and Aerospace Workers prevailed at a union vote last weekend at his store in Maryland. And as a Bloomberg and j I t Stem report, Nathan, thank you, Karen. We are live from the Bloomberg Interactive Brokers studios, where it's coming up to sixty one on Wall Street Time

now to check what's going on in VC. Some of the top stories in our nation's capital include President Biden to call on Congress to suspend the federal gas tax for three months, the Senate advancing a gun safety bill that could pass later this week, and the January six Committee revealing Republican Senator Ron Johnson tried to intervene for former President Donald Trump with an alternate slate of electors. Let's get more on all these stories. Bloomberg Government reporter

Emily Wilkins joins us. Now, Emily, good morning. We got the word this morning from the White House that it was a three month gas tax suspension that President Biden is going to call for. I guess the question now is is this something that Congress is going to approve? And Nathan, it doesn't really seem like there's high enthusiasm on Capitol Hill for this. I mean, we've already seen how Speaker Nancy closely in the past really through a lot of cold water on this gas tax holiday idea.

She pointed out that she had concerns that, you know, if these this gas tax went into effect, there's not necessarily necessarily a guarantee that companies would pass the savings long consumers. She also noted that the gas tax it buds the US Highway Fund, and she's arguing that right after the US passes this major infrastructure bill, why would they go and try and take away funding for highways. At the same point, they're definitely a sense on Capitol

Hill that something needs to be done. Um As Majority Leader Steny Hoyer, the number two Democrats in the House, uh told Bloomberg last night that you know that he was, you know, something needed to be done, but he didn't exactly give a ringing endorsement of the gas tax holiday. Um. And so I think at this point there's a sense that this is an issue that lawmakers do want to try and continue to make progress on. It's just a question of exactly how many lovers do they have left

to pull. I mean, you've already seen them go after corporations for what they claim as price gouging. You've seen them try to introduce legislation on biofuels. Um, You've seen them. You know, you saw a Biden go ahead and tap into the Strategic Petroleum Reserve. But none of those have really prevented gas from reaching its current highs uh. And I think there's going it's going to be interesting to see exactly how lawmakers respond to this call from the

President at two pm today. Now, I wonder how many more levers there are to pull at this point. I mean, I guess the real issue here is that gas prices really aren't going much of anywhere in terms of downward and we're getting closer to an election where the economy where inflation are going to play a huge role in what voters decide when it comes to control of Congress. Yes, exactly.

I mean that's something that Boden is certainly thinking about now. Um. It's something that more vulnerable Democrats, the ones who are going to be facing the topest elections this November, have called for in the past. I mean a number of them have been supportive of this idea of a gas tax holiday. Um. And it reality does come as you know the you know you like it or not. Um. The president's fortunes do seem to often be tied to those gas price numbers. Number one, just because they affect

so many other products. And number two. Um, I mean it's basically a giant billboard. When Americans drive down the street every day, right, look up, they see a number that's much higher than they're used to, and they tend to blame the party in charge. We do have some progress to report on gun safety legislation in the Senate. We got a big headline yesterday that a compromise had been reached and now it looks like the bill is

moving forward. Yes, so the Senate took an initial vote last night, uh to move forward with passage of this bill. It's it's still going to take a couple more steps you know how the Senate host you always need to vote multiple times on things. But this is legislation that's really it's not it's a lot of people have called it the gun bell um. It really does seek to sort of address mass shootings in a broader manner. UH.

It includes UM spunding for mental health. UM. It includes improving background checks, UH, securing schools, and giving states federal funds to combat gun violence. It's already gotten some opposition from the n r A. UH. They came out against the bill shortly after it was introduced on Tuesday night. We also seen a group of more conservative Republicans in

the House come out against it. But you are seeing support from a Senate minority leader Mitch McConnell i said in a statement that he supports the bill, supports the package, and it does seem to have the votes that it needs to actually pass in the Senate, which means it is pretty likely at this point that if it does, you know, pass the Senate, it's likely going to be able to pass the House as well, where we've seen bipartisan support for other gun proposals in the recent past.

In our last minute or so here, Emily let's talk about what we've heard late. The latest instances from the House January sixth committee. Sounds like a lot of pressure was put on state and local election officials by the former president and his team to overturn the election. Yeah, a number of former election officials testified just how much abuse and pressure they came under due to Trump's laws

that they had somehow tampered with the results of the election. Um. You actually had one individual, her mother had to flee her home after the FBI told her it was too dangerous to remain there. Uh, you have a wonder a Moss who was a rank and file Georgia election worker in Georgia. She she's not one of the top individuals, but even though um, you know, she wasn't really making any top level decisions, she feels testified that she feels

terrified to leave her house to not go anywhere. Um, and and there was it served just a huge um a lot of testimony yesterday from these workers just kind of making it clear how these allegations that they had done anything wrong in had really had a major and negative impact on their life. And this of course goes to try and support the committee's overall thesis that you know, Trump did whatever he could to try to put pressure on whoever he could uh to get the election to

be declared invalid in favor of him. Thanks as always, Bloomberg Verment reporter Emily Wilkins with us from the nation's capital. Read more about all these stories on Bloomberg dot Com or on the Bloomberg terminal, and listen to Bloomberg Radio in Washington and Bloomberg and one oh five point seven f M h D two. Of course, later this morning, all attention in Washington will be on FED Chairman Jerome Powell as he appears before the Senate Banking Committee for

his semi annual Monetary Policy report. Two days of Capitol Hill testimony from the Fed Chairman. Our live coverage begins at ninety five Wall Street time this morning on Bloomberg Radio and Bloomberg Television. Future is moving lower. We have SMP futures now down fifty one point, staff futures down three D fifty one NASTACK futures, while we're by a hundred eighty five points Bloomberg surveillances. Next for Karen lost Gal. I'm Nathan Hager, and this is Bloomberg