Bloomberg Daybreak: June 23, 2022 - Hour 2 (Radio)

say Lane Maxwell to get thirty years in prison. On Michael blarn More, I'm John Stash and sports comeback, win for the Yankees, loss for the Medis in Colorado, be Tampa Bay, and overtime at this Family Cup final. That's all's training ahead on Bloomberg day Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, Bloomberg one six one, Boston, Bloomberg nine sixties and Francisco syrius XM 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 US DOT Index futures are higher this morning. We're coming up to six show one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On bloomberg S and P futures up about eleven points down, futures up nineteen,

NASDAG futures up seventy three. The decks in Germany's down one percent, the ten year treasury up twelve thirty seconds, you know, three point one one per cent, and the yield on a two year is at three percent. Nathan Karen, we begin with day two of congressional testimony from J. Powell. This morning, the Fed chair appears before the House Financial Services Committee. Yesterday was Pell's most explicit acknowledgement yet that

raising interest rates could lead to a recession. It's not our intended outcome at all, but it's certainly a possibility. And and frankly, the events of the last few months around the world have have have made it more difficult for us to achieve what we one, which is two percent inflation and still a strong labor market. Petal members of the Senate Banking Committee that the economy is still

well positioned to handle tighter monetary policy. Former New York Fed President and current Bloomberg opinion columnist Bill Dudley says the recession is inevitable within the next twelve to eighteen months. I would expect a mild recession or two thousand and one, not the deep recession like seventies three, seventy four, or

of course the Great Financial Crisis. Former New York Fed President Bill Dudley made the comments on Bloomberg Surveillance Catch the program weekdays at seven am Wall Street Time on Bloomberg Radio and television. Well Nathan Stocks gave up early gains on Powell's recession comments. Market veteran Abbey Joseph Cohen says the era of everything going up is now over.

I think we're now back into a period in which it does matter where it's the fundamentals of earnings, the fundamentals of margins, the fundamentals of inflation, interest rates, and putting that altogether in terms of appropriate valuation models that will make a big difference for investors going forward. Joseph Cohen, who was a former senior investment strategistic Goldman Sachs, believes a mild recession is being priced into markets. Well. Crude

oils taking a leg loger lower. Karen is concerned over a global economic slowdown intensifies, checking prices down dime excrudes down a dollar fifteen at a hundred five dollars four cents of barrel. President Biden is continuing his push to ease gas prices. Let's get the latest on that life from bloombergs Grenita Young, Good morning, Granita, Nathan, good morning. President Biden is running out of options to ease prices at the pump, and it is the latest action. He

proposes a three month gas tax holiday. I suspending the eighteen sent gas tax federal gas tax in the next ninety days. We can bring down the price of gas and give families just a little bit of relief. It's a long shot for President Biden, as lawmakers, even his fellow Democrats quickly signaled they have little appetite for the move. Senate Majority Leader Chuck Schumer says Democrats and his chamber had already attempted a gas Texas pention it Republicans blocked it.

Live in New York, I'm gonna need a Young Bloomberg day break. We need to thank you and like you say, a gas tax holiday is garnering little support. Bloomberg Politics contributor Genie she han Zeno says it flies in the face of the president's own energy policy. Many people, particularly on the left, are asking themselves, you know, essentially, who is Joe Biden. He could have used the challenge in Ukraine and the challenge with prices to push for renewables.

You know, the old saying, don't let a good crisis go to waste. Why hasn't he pushed for something that people on the Democratic side believe in Bloomberg Politics, a contributor, Genie shehan Zeno spoke with our Washington corresponded Joe Matthew on Bloomberg Sound on Catch the show weekdays at five pm Eastern on Bloomberg Radio. Another major story we're following this morning from Washington. Karen has talked from both sides of the aisle that a gun safety bill could soon

pass the Senate. Bloomberg said, Baxter has the story. Senate Minority Leader Mitch McConnell seems to be on board, but on mainly concerned about is dealing with the issues that have been brought to the fore by these mass shootings, which are directly related to school safety and mental Health, and Senate Majority leader Chuck Schumer says passage should be soon.

The bill is real progress. It will save lives, and it is my intention to make sure the Senate passes this bill before the end of the week, and they hope to beat their summer recess. In San Francisco, I'm at Baxter Bloomberg, Gay Break and thank you. Turning overseas, European Union leaders planned to grant candidate status to Ukraine. The move will come at the EU summit that's beginning

today in Brussels. Begin more from Bloomberg's Maria today. O Even though it is seen as a given and there's no surprise it will happen by tomorrow, Ukraine being granted this CARDUSI status it is pretty historic. The question is how much will it change for the country overnight. Probably not a lot. And we should also note that even if you're a country and you had given this panducy status, it doesn't mean the assess and talks are going to

happen quickly or swiftly. You know, there's many countries in Europe that have applied for it, granted the Cavities WHO status and then of course, get stuck in the process for years before they get the membership and blowburgs Maria today O in Brussels, as Ukraine will be told it has to meet a set of conditions related to the rule of law, adjustice and anti corruption before joining the EU like here in the U. S care and the FED releases results from its yearly bank stress tests this afternoon,

and we get more from Bloomberg's Tom Busby. All thirty four banks monitored by the Federal Reserve, which I have a hundred billion dollars in assets, are part of this year's stress tests to see if they can withstand a hypothetical economic downturn, a crash in the commercial real estate market, and a surge in unemployment. That number up from twenty three lenders last year after some larger regional banks like Fifth Third Bank Corp. And Ally Financial got to pass.

The results will dictate how much capital those banks will need to have on hand and how much they can return to shareholders in the form of share buy backs and dividends. But they'll have to wait until day to announce any of those Tom Busby Bloomberg Daybreak. All right, Tom, thank you, and this update is brought to you by Informatica and 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 Informatica dot Com and this is Bloomberg. I Think You Caring is six o seven on Wall Street. We're sixty two degrees in Central Park dealing with an accident on the northbound FDR Drive at forty second. Details coming up in traffic. First Michael Barr with details on what's happening in New York and around the world. Good morning, Michael, Good morning Nathan. There have been reports of a widespread internet outage with Verizon.

According to down detect, your user reports indicate problems at Verizon this morning. Details on the nature of the outage are limited, but some services returning. Pete Eronando, the chief of the School District Police Force in Uvalde, Texas, has been placed on the administrative leave for his response to last month smash shooting at rob Elementary School. A gunman killed nineteen students and two teachers in the attack as

police officers stood by for more than an hour. Meanwhile, Democratic State Senator Roland Guterres says he filed a freedom of information request against the Texas Department of Public Safety, but as yet to hear back from the agency. We're frustrating because we're getting half truce and you winto a lot of finger pointing. Uh. And that's been the case in Stay one with DPS. Senator Guterrest spoke with k t r K. The January six Committee holds its fifth

hearing today. The focus will be on the pressure former President Trump exerted on the Justice Department to overturn the presidential election results. Federal prosecutors say Gallene Maxwell, the British socialite who was convicted in engaging in a ten years sex trafficking scheme with former boyfriend Jeffrey Epstein, deserves to spend thirty years in prison. Maxwell will be sentenced on June.

New Jersey Governor Phil Murphy says the state will suspend sales tax collections for ten days on back to school purchases, saving buyers about seventy five million dollars from pens and pencils and notebooks to art supplies, textbooks or other study guides, new laptop computers, among much more. Kevin and Murphy says the discount will be in effect from August to September five, New York City subway system writers will see something new. Authorities planned to place cameras on subway cars in an

ever to increase safety. Train shooting in San Francisco has left a person dead and another injured. Authorities say they're still looking for a suspect behind the shooting near the city's Castro neighborhood. Officer Katherine Winters is with the San Francisco Police. We are working to gather information, which will include surveillance footage in any other footage front of any train. Officer Winters says that happened during the heart of Pride Week.

Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael barn this is Bloomberg, Nathan, Thank you, Michael. Almost six ten on Wall Street time for the Bloomberg Sports Update with John Stead Show All right, Nathan, Yankees were looking at a rare two game losing streak. He sacked Paradis, who hit three home runs Tuesday hit another in the

second in Tampa Bay led four to one. Back came the Yankees too on run for Aaron Judge now after and Jose Trevino wi yet another huge hit, game winning two run homer eight. Then in Yanks one five for their home Tonight for Houston, Astros just beat the Mets five three is your and Albarez homer twice. He's hit one.

Carlos Carrasco roughed up left for the pari injury. Only a two game series, but the first time the Mets have been swept over time at the Stanley Cup Finals, quickly ahead, not to Catry inside the circle, Cadre, where's the book? How did that not go in? It? Did it did go in? It? Did it? Did we it? Scars? No the cadre get cad cad I didn't set but yes he he had to call Tampa Bay thought Colorado should have been called for a too many men on

the ice penalty. But the Ads one three two and leave the series three one and they can win the Cup in Denver tomorrow night. NBA Draft takes place tonight. The Nets host the draft, but they don't have a pick. They could have used Philadelphia's first rounder, they elected to stave it until next year nixt to have the eleventh pick. There are reports they're trying to move up. Orlando has

the first pick, expected to take Auburn's Jabari Smith. There's golf today near Hartford is the PG eight tour announcers changes that they claim they were gonna make anyway, but admit they may be moving them up due to the competition they're now facing from the new Live Tour, more prize money and several tournaments will no longer have the field be cut good way through John stash Award, Bloombird Sportsmath Loki John. Thank you Right now, SMP futures aren't

moving higher. Seeing some gains in the pre market up fourteen points now, DAL futures have gone higher by forty eight points. In NASTACT futures, you're building on their gains up eighty five points. The tenure treasury is up ten thirty seconds, the yield three point one one per cent. This is Bloomberg. Bloomberg Day Break is brought to you by Hofstra Universities Frank gz RB School of Business, top

ranked online NBA program with the Real World Foundation. Learn more at Hofstra dot E d U slash go grad 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. Bond yales are tumbling is comments by Federal Reserve Chair J Powell and growth data in Europe

stoke fear about a global downturn. US dot index futures are gaining, bucking the retreat in European stocks and oil. They yield on German tenure bonds slumping as much as twenty one basis points points for the biggest two day to clients since November eleven. This after the report that show an economic activity in the euro Area. Sload sharply in June. US tenure rates are trading near a two week low, and looking at US dock index future is both contracts on the SNP and Nasdaq one hundred rising

after racing earlier declines. We checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, US and P futures are up thirteen points down futures have forty and as day futures have eighty one. The docks in Germany is down eight tenths of a percent ten your treasury up ten thirty seconds, you have three point one one percent. The yield on the two year is at three percent. Ni Max screwed oil down eight ten percent or eighty eight cents at a hundred five dollars.

Thirty one cents of barrel Comacs gold is down four tens per cent or seven dollars forty cents at eighteen thirty one announced the euro one point oh five one five against the dollar, the British found one point to to one five and the end at one thirty five point three seven. Looking at Bitcoin this morning, up more than four percent at twenty thousand, seven hundred twenty dollars and of course at e thirty Wall Street time, we do get the weekly report on initial jobless claims. 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. There have been reports of a widespread Internet outage with Verizon. That's according to down detective. The p g A tour is countering the Saudivag Live Golf Series. Tour Commissioner Jay Monahan unveiled his plan to increase purse sizes and revamped the schedule, and an effort to keep

players from leaving the tour. In baseball, the Yankees one, the Mets lost, the Orio shutout, the National seven, ZIP, the Red Sox one, the Giant and as lost and HL action after Game four. The Avalanche are game away from winning the Stanley Cup. Colorado beat the Lightning and overtime three two. Global News twenty four hours a day on air rand on Bloomberg Quick Take, powered by more than twenty seven hundred journalists analyist in more than a

hundred twenty countries. I'm Michael Barr. This is Bloomberg, Nathan. Thank you, Michael. We're count up to six twenty on Wall Street Life from the Bloomberg Contractive Brokers Studios. This is Bloomberg Daybreak and as we await day two of testimony on Capitol Hill from Federal Reserve Chairman Jerome Powell, we are joined this morning by Ben Laidler, global market strategist at each HORO for look at some of the

market reaction. We certainly did see a lot of that yesterday, Ben, with Chairman Pal kind of taking investors on a bit of a ride with his comments about recession certainly a possibility. What kind of volatility are you looking for today? Yeah, I think it's a recognition of reality. Maybe not a big surprise. Recession risks, you know, clearly rising. I think J. Powe obviously alluded to that, um yesterday. But I think we've been seeing, you know, a little bit of room

for relief. Right. It's been a very few it's been a very top few weeks. The markets pricing in a very aggressive FED evaluations are now below tenure averages, oil prices coming off a little bit, and earning still pretty solid, right. I mean that's the bull case, um, you know, the bad cases that we sort of tip into recession and the one shoe that hasn't dropped yet it begins to crack, which is earnings. There has been evaluation driven bear markets.

So far, earnings have been very, very solid. I think earnings will remain resilient to a slowdown, but they're not immune to a recession. You've laid out the bullet bear cases there. What's your base case on where markets go from here? Ye? Gods are full? Uh, you know, I think we're in a sort of U shaped recovery. The key missing piece here is the sort of peak deciphed peak for inflation. That's what it's all about, um, that would allow central banks to loosen the vice that they

have markets sort of in right now. I don't think we're too far away from that sort of peak of inflation. Financial conditions have surged, mortgage rate of surge, consumer confidence has plunged, and now I think we're getting a little bit of us a welcome pullback in oil prices. And as I say, it's all about inflation, I don't think we're too far away from that peak, and that is

the catalyst the market. What do you think it's going to take for the chairman and central banks generally to get inflation down to target if we haven't gotten to peak inflation yet, As you say, it's the twenty plus trillion dollar question to the US economy. Central banks they're going to keep their foot to the floor on the on the interest rate accelerator until inflation does roll over. So that's the risk here. I think you know there

are real buffers to a slow down. The consumers are in good place, companies are in good place, but those buffers are not insurmountable. The longer this goes on. There's a relative good news here. Inflation expectations are very well anchored. So inflation maybe eight percent in Europe in the US today, but those long term inflation expectations are you know, two to three percent um. You know, that's a really good

news story. That means they don't necessarily need to, you know, see inflation all the way down to that sort of two percent level before they can sort of rein back. But we do need to see that sort of decisive peak. We thought we had it a couple of months ago. It was a it was a full stawn. But I think it's I think it's coming in the next couple of months. Oh well, well, you've see central banks trying to play catch up on inflation. Where do you see

opportunity in terms of investments right now? So I think the key right now is to be invested. Ball markets are built on the shoulders of bear markets. You know, ball markets are three times longer and three times bigger than bear markets. I think you need to be invested for that. If you sort of sell out now, a lot of people won't get back in. There's always an excuse, always a reason not to invest. So I think you need to be invested, but I think you need to

be reasonably reasonably defensive. These sort of cheaper sectors, these traditional defensive utilities, staples, healthcare, high dividend yields. Maybe some of these more defensive or less are correlated overseas markets, either UK or China. These are think other places you want to be in for now that keep you in markets, but a reasonably defense if for hopefully when we get that inflation, that inflation catalyst, and you can be comfortable

to take a bit more risk. I think about thirty seconds left here, Ben, Are you looking for any different messaging from Chairman Power when he goes before the House Committee today? I hope not. He's been very consistent. I think that you know, the overwhelming focus is to bring inflation down. They will do what it takes. As they say, it's all about inflation. That's all about inflation. Therefore interest rates and that's what's been crushing. So evaluations is stoking

and stoking recession fits here. So I think it's going to stay the course. But as I say, I don't think we're too far away from that dec inflation catalyst. Always good to get your thoughts spent. Thanks again for being with us this morning, Ben Laidler, Global Markets Strategists at the TOROL futures moving higher getting a lift this morning.

Right now, at least SMP futures are up fifteen points down, Future is up fifty five, NASAC futures are higher by eighty five points, and the tenure treasuring now up eleven thirty seconds. The yield three point one one per cent. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather cloudy through the morning with a high in the low seventies. Today, will be in the low eighties tomorrow under a mix

of sun and clouds. Warmer Saturday might see ninety Right now sixty two degrees broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg Knowing sixty to the Country, Sirius XM to A one nine team, 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 Hagar and I'm Kared Moscow. We are just about three hours away from the open of US trading time for the five things you need to Notice start your day to you by Interactive Brokers. Interactive Brokers Global Analysts helps you find new global investment opportunities to diversify your portfolio and discover undervalued companies that they have greater

growth potential. Try IBKR Global Analysts today at ibkr dot com slash g a h first stay two of congressional testimony from J. Powell this morning, the FED chair appears before the House Financial Services Committee. Yesterday was his most explicit acknowledgement yet that raising interest rates could lead to our recession. You're seeing growth slow from the very elevated

levels of last year associated with the reopening. You're seeing the beginnings of job growth slowing to more sustainable levels, and you know there's risk in that. FED. J. J. Powell told lawmakers the economy is strong and well positioned to handle tighter monetary policy. Markets gave up early gains on Powell's recession comments. Karen Janette Garrity, Chief Economists with Robertson Stephen says as recession talk grows, we could see

inflation start to come down. I don't think it's firmly rooted, and there are an awful lot of people who are now eating to think about recession and in thinking about recession, actually, do you believe that that will take the pressure of prices? Jane Garty with Robertson Stephen says she believes j Pale's credibility is no longer an issue. Well, Nathan returned to oil now, which is lower once again as concerns over

a global economic slowdown intensify. Meantime, President Biden is continuing his push to ease gas prices, and Bloomberg's Do Need a Young joins us Live with more. Good Morning, Ready Dunk Karen, Good morning. President Biden is running out of options to ease prices at the pump, and in his latest action, he proposes a three month gas tax holiday. Urgent gas stations to play their part. I call on the company's to pass this along every penny of this

eighteenth cents reduction to the consumers. This is there's no time now for profiteering. It's alongside for President Biden as lawmakers on both sides of the aisle quickly signal they have little appetite for the move. Live in New York, I'm gonna need a young Bloomberg daybreak, all right, we need a thank you. Another major story we're watching in Washington, a gun safety bill could soon pass the Senate Majority leader Chuck Schumer is hoping for approval by the end

of the week. And turning overseas Nathan, European Union leaders planned to grant candidates status to Ukraine. The move will come at the EU summit that's beginning today in Brussels. Ukraine will have to meet a set of conditions before joining the EU. And that's the five things you need to know to start here today. Brought to you by Interactive Brokers SMP futures up about seventeen points this morning. Straight ahead, your latest local headlines, plus a check of sports.

And this is Bloomberg. Thank you. Karen sixe on Wall Street, sixty two degrees in Central Park. Big problems on the westbound Cross Bronx Expressway at the Hamilton Bridge. Two tractor trailers ran into each other. More coming up in traffic. First Michael bar with more on what's going on in New York and around the world. Good morning, Michael. Good morning, Nathan. There have been reports of a widespread internet outage with Verizon.

According to down Detector, user reports indicate problems advertising this morning. The tails on the nature of the outage are limited, but there's words some customers are receiving service again. In Texas, the Uvoldi School District has placed police Chief Pete Rodondo on the administrative leave. A gunman killed nineteen students and two teachers as police officers stood by for more than

an hour at rob Elementary School. Meanwhile, a state senator filed a lawsuit against the Texas Department of Public Safety to access records on the investigation into last month shooting. Democratic State Senator Roland Guterres. This was a failure at every level. Uh, not just the local cops, SHAREFF, the police, DPS. We all had people in there, Texas State Senator to terrorist, spoke to kat r k. The January six Committee will

here today from former Justice Department officials. The panel says they faced a relentless pressure campaign from Donald Trump over the presidential election. Reason elates the f a A is investigating a helicopter crash in Logan County, West Virginia that killed six people last night, Logan Mayor Serafino Noletti heart ranching, why not we heard what happened? You know there's people, didn't they called? Maybe one of us was on. Mayor Noletti says the Hughey Chopper was based out of Logan

County Airport and was apparently used for tourist flints. Federal prosecutors say Galine Maxwell, the British socialite convicted of engaging in a ten years sex trafficking scheme with former boyfriend Jeffrey Epstein, deserves to spend at least thirty years in prison. The government submitted its sentence and recommendation in federal cord in Manhattan. Maxwell, who was sixty, will be sentenced June.

Governor Phil Murphy says New Jersey will suspend sales tax collections for about ten days on back to school purchases, saving buyers about seventy five million dollars. This back to school sales tax holiday will run from August until September five, and that will encompass to the final two weekends really before school kicks off. Conor Murphy says the discount will apply to basic goods as well as high a price items.

Such as computers, Global News twenty four hours a day on air and on Bloomberg Quicktake Power by more than twenty seven hundred journalists analysts more than a hundred twenty countries. On Michael bar This is Bloomberg, Nathan, Thank you, Michael, six thirty six on Wall Street, and John stash Are has a Bloomberg Sports Update. Al and Nathan more surprising than Aaron Judge having hit twenties seven home run six more than anyone else in Baseball's the host st Travino's

hit six only had five last season with Texas. Davino acquired just before the season began, as far exceeded any expectations, and he won the game for the Yankees for a two run homer in the eighth inning. On the night where Judge homer twice. The Yankees came from four one down and they beat Tampa Bay five to four. The Mets at the Houston Trail four nothing in the first inning, they lost five to three as to start a four game series with the Yanks tonight at the Stadium, perhaps

the playoff preview. The Yanks the East by twelve games and the ask does leave the West by ten overtime and controversy at the Stanley Cup Final, where Tampa Based scored in the opening minute, never trailed Game four until Colorado's Ziame Cadre's goal twelve minutes into overtime, and the Lightning felt a too many men on the ice penalty should have been called, but the as one three too has. Cadre against the game winner at his first games was breaking his stumb a few weeks ago, and the Avs

now lead this series three to one. They can win the Cup at home tomorrow. NBA draft tonight in Brooklyn, Orlando, as the first pick, the Knicks pick eleven. The Nets do not have any picks, and the commassion to Roger Gadell testified virtually before a congressional committee looking into workplace violations by the Washington Commanders. Cadell insisted owner Dan Snyder is not involved in running the team. He said he does not have the power to remove Snyder, who has

refused to testify, but may not be subpoenaed. Tragic day for the Baltimore Ravens the death of linebacker jail And Ferguson at only twenty six. You've been on the team the last three year and the passing to former defensive lineman Tony Sara Goose. Goose was fifty five also played for the Colts. It was a long time Fox analyst John Dash were Bloomberg Sport. All right, John, thanks at

six thirty seven on Wall Street. Let's take a look at some of the names moving in the pre market this morning with Bloomberg Radio and TV Markets correspondent Creating Goop Create. Good morning. I don't know if you saw those headlines that just crossed moments ago on Tesla and China production. Yeah, well we have to start what market check? Can we not start without Tesla shares? Ts does seem to be a trend? It is? It is scandals of

Handya is a major heavyweight in the S and P five. Nevertheless, we are looking Tesla shares that are up about one point six percent in the pre market. At least is coming after Tesla said it's readying it's China factory. Forget this, even greater volumes those production line upgrades taking place starting from July. Now this is a massive deal. As we know. Of course, Tesla has been dealing a lot with the lockdown,

specifically in their Shanghai factories. Now remember Shanghai also had great march for Tesla because their factory was very close to also where they got their raw materials and sourcing it from right around the world. They get the raw materials, they bring it right to the Shanghai factory and then created out of there. Because the COVID lockdowns of course, putting it dead in all of that, but this morning, perhaps Tesla seeing the early early signs of a little

bit of a turnaround. We gotta talk about these oils stories as well when you're talking about turnaround, because a lot of the stocks moving this morning are indeed oil stocks. Of course, we know the Brent crew To at one eleven is down about I want to say, four tenths of one percent. But you are once again seeing that volatility and oil a lot of this balancing what's going on in the war in Ukraine as well as those

recession fears. So it's really important to talk about simply some of these movers to the downside, especially things like um Conico, Phillips, Ceps your taker down about seven tenths of one percent. You also have x on Us about flat on the session now. But you are seeing that some of the decliners, some of the laggards are of course going to be in this oil space. Let's also stick with that recession story and talk about one of

the other main movers remain concerns. It's more that, of course is kb Home As we talk about the housing crisis, is it a bubble? Well, Kaby Homes says, well maybe not. Kb eh is your taker up four point seven percent. This comes after they reported earnings and revenue that of course beat estimates. Also the warning about some of those macro economic issues. Yeah, lots going on in the macro story. What's going on with eBay? I see that on your

list as well. Yeah, eBay's really interesting here because eBay, of course we knows the major e commerce company, but they didn't actually have coverage over at Morgan Stanley. That changes today e b A wise, your taker shares our down about two percent in the pre market. This comes after Morgan Stanley assumed coverage of the stock with the recommendation of underweight and price target of only thirty six dollars. Nathan, that is the lowest on Wall Street for the e

commerce company. All right, Bloomberg Radio on TV markets correspondent critic Kupta with us as always in the pre market, looking at stocks as a whole. As we get set for another trading day and another round of testimony on Capitol Hill from FED Chairman Jerome Powell. We see futures getting the leg higher. SMP futures up twenty points right now down futures up a hundred one so were in anstack.

Futures up hundred one p ten. Your treasury is up thirteen thirty seconds, the yield three point one zero percent. You're listening to Bloomberg Daybreak, Bloomberg eleven three oh weather. We have a mix of sun and clouds today going up to the low seventies, upper seventies, maybe a low eighties tomorrow, oper eighties by Saturday. Right now sixty two 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 and US dot Index futures are on the rise this morning, and we go to the first word Breaking newsdsh for today's morning call.

Here's Tatiana Darya. Tatiana, good morning, Good morning, Karen, futures are higher this morning, despite the mixed session in Europe without futures up one twenty two, s and ps up twenty four and NAS jack cap one Cross Asset treasuries are rallying again, with the US tenure Yale down four basis points to three spot one percent, oils down another percent, and Bitcoin has raised yesterday's losses, rebounding about four On the economic front today, initial jobless claims at eight thirty,

n p m ice at ninety. In early trading, we've seen text talks rebounding, with Tesla, Apple and Video leading gains up about one percent, Occidental Petroleum up to after it's the largest shareholder, Berkshire halfway both additional shares and regarding earnings. Homebuilder kV Home up five percent after results last night. In other news, Tesla plans to ramp up output at its factory in China to more than double its original planned target to one million cars are and

wrapping things up. Coin Base was cut to neutral at the Red Burn, and eBay was initiated with an underweight at Morgan Stanley lie from the First and Breaking News Desk and Tatianataria Karen Right. Tatiana thank you, and to hear lie breaking news of your Bloomberg type squawk on your terminal SCU. You a w K and that's a Bloomberg business flash. Now here's Michael bar with Moore on what's going on around the world. Michael Karen, thank you

very much. There have been reports of a widespread internet outage with Verizon. That's according to down detective. The January sixth Committee will hear from former Justice Department officials today the Panels as they face pressure from Donald Trump over the presidential election results. The p g A Tour plans to increase purse sizes and revamp the schedule in an effort to keep players from heading to the Saudi Mac

Lib Golf Series. In baseball, the Yankees one, the Mets lost, the Oriole shut out the Nationals, the Red Sox one, the Giants and As lost. In the NHL, the Avalanche a game away from winning the Stanley Cup after beating the Lightning. The NBA Draft is tonight Global News twenty four hours a day only or and on Bloomberg Quicktake, powered by more than twenty seven under journalist and analyists more than twenty countries. Michael Barr and this is Bloomberg.

Carry all right, Michael barn Thank you. SIS forty nine on Wall Street returned to news and science and Technology Now. But the Bloomberg n 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, in the top ten for best career placement among public schools by the Princeton Review. More at n j I T DOT E d U and here's just making news.

In science, Technology, engineering, and math, new global data shows heat trapping carbon dioxide emissions from making cement have doubled in the last twenty years. According to Norway Center for International Climate Research and the Global Carbon Project, worldwide emissions from making cement for buildings, roads, and other infrastructure hit nearly two point nine billion tons of carbon dioxide last year. That's more than seven percent of the global carbon emissions.

Scientists say climate change is a factor behind the erratic and early reigns that triggered unprecedented floods in Bangladesh and northeastern India. Although the region is no stranger to flooding, it typically takes place later in the year when monsoon

reigns are well under way. This year's torrential rainfall lashed the area as early as March, and smart Asset is out with its eighth annual study on the best Cities for Women in Tech and ranked them according to four metrics, gender pay gap in the tech industry, income for women in tech, after deducting housing costs, women as a percentage of tech workers, and three year growth in tech employment. Arlington, Virginia remained at the top of the studies rankings for

another year. Washington, d C was second, and Houston came in third. And as a Bloomberg and j I t Stem report, Dathan Okay, Karen, thank you. We are live from the Bloomberg Interactive Brokers studios, where it's six fifty

one on Wall Street. Time to check what else is going on in d C. Some of the top stories in our nation's capital include President and offering a long shot bid to pause gas taxes, optimism building for a gun safety bill passing the Senate as soon as this week, and the January six Committee getting ready to pause hearings to weigh new evidence. Boomberg Government Congressional reporter Jack Fitzpatrick

is back with us from more on all these stories. Jack, I wonder if it's been difficult to find anybody who's coming out in favor of President Biden's three month gas tax pause idea, because a lot of the reaction hasn't exactly been glowing. Yeah, I'm sure there will be some members who are in favor of it. I've seen a couple of statements, especially from people maybe with tough reelection campaigns.

It's a good thing to be seen doing something. But we've heard negative or at least skeptical comments from the likes of Chuck Schumer, who has said he'd put his focus on price gouging measures. Uh Stenny Hoyer, who said he's not sure if this kind of proposal would have the intended effect. N See Pelosi essentially put out a statement saying, well, we'll see where the consensus is on

this kind of issue. Peter DeFazio, the chair of the Transportation Infrastructure Committee, said that this would take funds away from the Highway Trust Fund. Uh. So there's there's some high level pushback from people who are allies of the president. Uh And so clearly the outlook is not good for

this on Capitol Hill. Yeah, and there's been some commentary as well that the president calling for more oil production, more gas production, and efforts to get prices down kind of runs contrary to what his policies had been before prices got higher, aimed at curbing production. Yeah, this is this puts the President and Democrats in a really tough position. Uh. And you see it even with this gas tax proposal. I mean you're almost talking about a stimulus check that

you can only use on fossil fuels. Uh. And that that manages to get opposition simultaneously from Republicans who who don't agree with this kind of short term approach that would add to the deficit, and environmental groups and Democrats.

So it's it's massively inconvenient for Democrats, who came in with a certain set of environmental policy priorities, to feel this amount of pressure to reduce gas prices, which really would not have been as much of a priority, not if if not for you know what we've seen in Ukraine and the very strange economic circumstances that we all

find ourselves in. You have to think Jack as well, that the President is feeling political pressure to at least show that he's trying to do something about gas prices. What about his message that the war in Ukraine is affecting all of this is that has that been a difficult message for him to get across. I think that may actually be the most popular response because there's a

lot of willingness to support Ukraine. The President was pushed by lawmakers, including Republicans, to take a harder stance against importing Russian oil and gas. So there's some logic to it, and it ties it to a stance that the federal

government is taking. It's very popular in supporting Ukraine, but that doesn't just flip a switch and make people say, Okay, I'm fine with very high gas prices in itlation in the state of the economy, So it's it may be a good line, but it's almost just a tangential issue to the broader complaints about the state of the economy. Let's start to the other major story happening in Washington, d C. Progress to report on a gun safety bill

moving forward in the Senate. Could we see passage this week? Jack, Yes, They are supposed to take the cloture vote in the Senate today, probably between eleven am and noon. That's the key vote. If you can get sixty votes to end debate. You have cleared the major hurdle. Technically would then take a simple majority vote to pass it, but sometimes there's a little back and forth in the Senate about almost

doing away with that step. Once they do the cloture vote in the late morning today, they know they've got the sixty votes necessary uh, and they can they can move on they potentially you see it unanimous consent or something along those lines. We'll see exactly how long it takes to to do this week as they try to get out for the weekend. But the critical vote is coming in a late morning this morning in the Senate. Also happening this afternoon, we have another live January sixth

Committee hearing. What are we expecting there? That one is going to be focused more on more details, a little bit of what we've heard in terms of the legal advice that went to then President Trump saying that his attempts to overturn the election, that his fraud claims were without merit. There's gonna be live testimony from Jeffrey Rosen, who took over as acting Attorney General after William barr Uh.

There's also testimony from two of his deputies uh so more of the legal arguments about the lack of merit to Trump's uh fraud arguments and the argument that Trump must have actually known that and ignored the good advice from lawyers and and gone on with his plan anyway. And in our last minute here, the hearings are going to go on a little bit longer than we'd originally expected. Yes, you know, they even mentioned in the first hearing they're

still getting information. Uh So there's gonna be a bit of a pause in hearings as they continue to get more testimony, do more interviews. They're supposed to interview today another documentary filmmaker Alex Holder, who was interviewing Trump and others around him before and after January one. So you can certainly expect one a bit of a pause and

then two more public hearings. And it is worth keeping in mind that is as tightly uh organized as these hearings have ben, there's still kind of figuring this out and determining exactly what their narrative is because they're still getting more and more information and still conducting interviews. Bloomberg Government congressional reporter Jack Fitzpatrick. Keeping on top of all that's happening in Washington, d C, including more testimony this

morning from FED Chair Jerome Powell. He'll be before the House Financial Services Committee. That hearing is due to begin around ten am Wall Street Time. Read more about all these stories on Bloomberg dot com or on the Bloomberg terminal. Listen to Bloomberg Radio in Washington Bloomberg one and one oh five point seven f m HD two, SFP futures moving higher now up twenty eight points, Dow futures up a hundred forty seven, NASTAC futures up one point one percent,

again of a hundred twenty seven points. For Karen Moscow. I'm Nathan Hagar. This is Bloomberg