Bloomberg Daybreak: June 24, 2022 - Hour 1 (Radio)

On Michael barn More Ahead, I'm John, Dave Sharon, Sports high Drama and the Bronx and ninth Inning Yankee Rally, the Stun the Astros. They held the NBA Draft in Brooklyn. That's all's training. Head on Bloomberg Daybreak on Bloomberg Elving, Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nineteen and around the world. Old on Bloomberg Radio dot Com and via the Bloomberg Business App.

And Good Morning, I'm Nathan Hager and I'm Karen Moscow and us Dock index futures are higher this morning. We're coming up to five o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day on Bloomberg right now, S and P futures up twenty five points, Down futures have one hundred seventy and NASDACK futures up one hundred. The decks in Germany's up

six tenths percent. Ten year treasury is little change. They yield is at three point eight percent, and they yield on the two year at three point one percent. Nathan, all right, Karen, we'll have more on the markets in just a minute, but first, the Senate has passed bipartisan gun safety legislation by a wide margin. We get the latest from Amy Morris in our Bloomberg newsroom in Washington. It is being hailed as the biggest breakthrough on gun

safety in thirty years. The bill will improve background checks, secure schools, and gives more funds to states to tamp down gun violence. Republican John In of Texas was one of the negotiators. Will it save lives? Will it save lives? And I believe the answer to that is yes, and that makes this worth doing. The House is expected to pass the bill and send it to President Biden's desk for his signature before leaving for a two week recess

in Washington. I'm anymore as Bloomberg Daybreak, all right, Amy, thank you a boy. The sentence action on gun safety comes after an altogether different move at the Supreme Court. The Justice is struck down a New York law that

prevents most people from carrying guns in public. Republican Senator Rob Portman of Ohio says it's the right call, and I think the President's uh concerned that this is dangerous a reclusit just in real life, in real states where this has been around for an awfully long time, you know, none of those concerns have occurred. But Democratic Senator John Alistaff of Georgia says this could set a dangerous president. Well.

One of the things that I hear consistently across the state of Georgia is strong support from law enforcement for common sense gun safety measures. Senators as often. Poorman spoke with our Washington correspondent Joe Matthew on Bloombergy Sound on Catch the show weekdays at five pm Eastern on Bloomberg Radio. Meantime, Karen, confidence in the Supreme Court has reached a new low yet. More on that, Live from Bloomberg's Ranita Young. Good morning, Ranita,

Good morning Nathan. A gallop Pole measuring faith in institutions over fifty years shows many societal pillars are having a bad year, but the eleven point dropped for the nation's highest court is about double the decline experienced by other institutions.

In the survey, confidence in the Supreme Court this year has slid among Democrats from thirty percent to percent, and from forty percent to twenty five percent among Independence For Republicans, however, the gallop Pole says confidence has risen from thirty seven to thirty nine percent. Now. The poll was completed a few days before the High Court's decision yesterday striking down the New York gun law. Live in New York. I'm re need a Young Bloomberg daybreak. All right, we need

to thank you. Another major story where following this morning focuses on the insurrection at the Capitol. The January six Committees fifth session centered on pressure former President Trump put in the Department of Justice to help overturn the election, and Bloomberg said, Bachelor has that story. It focused on the attempt to force the d o J to throw out the slate of electors in Georgia, to meetings that threatened Assistant Attorney's General, including Richard Donohue, saying that they

would lose their jobs. He said, people tell me I should just get rid of both of you. I should just remove you and UM make a change in the leadership with Jeff Clark in maybe something will finally get done. Chair Bennie Thompson the workings of what was essentially a political coup. Thompson says the next session will focus on how Donald Trump summoned the mob to Washington and that violence became his last option in San Francisco. I'm at

Baxter Bloomberg Daybreak, alright ed, thanks. Also major political moves in Europe this morning. A big election defeat for Boris Johnson. Let's go live to London get the latest with Bloomberg's un parts, Good morning you and good morning Nathan Karen. A double election defeat for the UK Prime Minister Boris Johnson's conserved the party, losing two special elections, including one in a district where last time he secured six of

all votes. Johnson says he will listen to voters after the defeat, but in a resignation letter this morning, the Conservative Party chairman said we cannot carry on with business as usual in London. I'm you and pots Pin Bag daybreak, are you and thank you well. We also have some news on trade this morning. Bloomberg News has learned that the US is set to escalate a claim that Mexico

violated a free trade agreement. That his feude has to do with Mexican policies that favor state run energy companies. He dragged out conflict could lead the US to impost tariffs on Mexico. Turning to markets now, Karen, the bounce back on Wall Street continues. Futures are higher, building on three straight days of gains for the SMP five hundred. The index has risen more than three percent during this

holiday short and trading week. Rebecca Corban, CEO of Corban Advisor, says investors just want certainty, even in a challenging economic backdrop. If they have certainty with regard to what to expect, the equity markets will decouple from the economic performance. Rebecca Corbin of Corbin Advisor's notes the SMP five d is on track for its first weekly gain in a month. Well Shares the financial companies are higher in early trading.

Nathan after Banks as the latest round of stress tests from the FED, and we get this story from Bloomberg's Doug Krisner. The FED determined banks had sufficient capital to withstand a severe recession think of it as a worst case searching unemployment, collapsing real estate prices, and to wipeout inequities now. The test also looked at whether trading operations at firms like JP Morgan, Chase, Morgan Stanley, and Goldman

Sachs could hold up against a hypothetical market shock. In all, the tests assumed combined losses of six hundred twelve billion dollars, so with passing marks, banks are now free to return eighty billion dollars of their shareholders. In New York I'm dead prisoner, Bloomberg daybreak all right, Doug, thank you, And shares of FedEx are also higher this morning. The delivery

service company forecast annual earnings above estimates. Higher package prices are helping offset some operating snags tied to the labor shortage. Straight ahead your latest local headlines in the check of sports, This is Bloomberg's five oh seven on Wall Street, worth sixty three degrees in Central Park if usable. Long Island Railroad heads up service is suspended between Greenport and ron Coacoma.

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 lawmakers are reacting to the Supreme Court's ruling striking down the state century old law limiting the right to carry a concealed handgun in public. Governor Kathy Oakle says the decision isn't

just reckless, it's reprehensible. Heaven help us, uh if that's what they're going to continue doing with with laws and having us go back to that time in history, unrelated to the current circumstances where we have a gun violence crisis on our hands. New York Mayor Eric Adams echoed Governor Hockle's remarks. He cannot allow New York to become

the Wow Wow West. That is unacceptable. Mayor Adams says the decision ignores the shocking crisis of gun violence every day in gulfing not only New York, but our entire country. Former New York com Mayor Build A. Blasio. Our law enforcement officials for decades have believed this kind of approach, These strong gun safety laws a particularly important place like New York, and the Supreme Court just really spitting the face of law enforcements. Former Mayor de Blasio spoke on

Bloomberg sound On. Meanwhile, State Republican Committee Chairman Nick Langworthy says Democrats are trying to create fear and division over what he characterizes as legal gun owners rights to protect themselves and their families. The New York City Council will hold a hearing at noon today on school budget cuts. Mayor Adams gave assurances that the reduction would coincide with

falling enrollment rates. However, the Council wants to look at the Department of Educations changes to the formula used to calculate how much money is allotted to each school. A Long Island Board of trustees admits it was a wrong decision to band LGBTQ content from the children's section of a library, including books and displays. The Smithtown Library Board of Trustees apologized and voted last night for two to reverse a previous vote initially banning the content. The decision

came after Governor Hoco called for an investigation. Walking appointments in the New York City temporary clinic giving monkeypox vaccines had to be halted. Officials say there was so much high demand at the Chelsea clinic they couldn't accommodate walkins. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven d journalists, and that lest more than a hundred twenty countries. I'm Michael bar This is Blue Burt Nathan. All right, Michael,

thank you, almost five ten him all street. Time for the Bloomberg Sports Update with John Stshower. All right, Nathan, Yankees and Astros have developed quite the rivalry, and here they are a game. Two best teams in the American League. Water start to the four game series of the Stadium. Three run homers all over early on Alex Bregman before there was an out recorded John Carlos Stanton bottom the first Jordan Alvarez is two of the year. It remained six three Astros from the top of the third to

the bottom of the ninth. Another three run homer, this one from Aaron Hicks to tie the game at six, and the Yanks were not done. Another Aaron Judge came to the plate and the three oh line heard deep the love Field pace the Trevino round third, He's coming home.

Turvino scores full game over. Yankees win Yanke Yankee seven six, win their fifteen Aton row and the Bronx longest home winspicks of nineteen sixty one Judge will spend today and an arbitration hearing's determined if he makes twenty one million dollars this year or seventeen. The bigger issue, of course, with Judge is what happened after the season when he's a free agent. NBA Draft in Brooklyn the next didn't

have any picks. The Knicks had the eleventh pick, traded at to Oklahoma City, one of a few trades that Nicks made. In the end, they were able to rid themselves up. Kembo Walker, whose return home to New York a year ago did not go well, traded to Detroit Pistons expected to buy Kemba out to be a free agent. Dukes Pawo Banco taken first overall by Orlando Rory McElroy

shot sixty two. He's got the opening round lead in Hartford, the Colorado Avalanche up three one on Tampa Bay, and the as tonight can't ring the stanleytop John stash were Bloomberg Sports Nathan John thanks a lot. Right now. SMP futures are moving higher. They have twenty six points. DAT futures up a hundred eighty two, NASTAC futures up a hundred five points. The ten year treasury is up one thirty second yield three point zero eight percent, yield on

the two year three point zero one percent. You're listening to Bloomberg Daybreak. Blooming Daybreak brought to you by the New York Community Trust. Your name will live on as a champion of the causes you care about for years to come through a charitable request to the New York Community Trust. Learn more at Philanthropists dot n y C markets headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business Out and at

Bloomberg Quick Tape is a Bloomberg Business Clash. And I'm Karin Moscow and this updates brought to you by Informatica. In the cloud, your data has the power to do the extraordinary. Managed data across any location in the cloud for accurate and actionable insights. More at Informatica dot Com. Well the technology sector leading stocks higher this morning. Bonds are holding a rally as investors evaluate economic threats and

ski back expectations for inflation and interest rate hikes. We checked the markets every fifteen minutes throughout the trading day on Bloomberg. The futures are higher, SMP futures up twenty eight points this morning, DAL futures up a hundred ninety two, nast day futures of a hundred twelve. The decks in

Germany is up six tenths of a percent. Can your treasury up one thirty second you know three point eight percent and the yield on the two year three point one percent nine Max Screwed oil is up one point four percent, up a dollar forty six and a hundred five dollars seventy three cents of barrel co Max School little changed at eighteen twenty eight sixty announced the euro one point five four two against the dollar, British found one point to two eight seven and the end is

at one thirty four point eight three. And looking at Bitcoin this morning, up nine tenths of a percent at twenty thousand, nine hundred eighty dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, Good morning, Good morning, Karen. Congress is on the verge of approving a thirteen billion dollar buy impartisan gun violence bill. How's approval is expected to on legislation that would be the lawmaker's most sweeping answer

in decades. The Senator proved the measure yesterday, with fifteen Republicans joining Democrats in backing passage. House GOP representatives Matt Gates, Scott Perry, Andy Biggs, Louis Gohmert, and Moe Brooks all contacted White House staffords seeking partons from Donald Trump. According to video testimony played by the committee investigating the January

six Ryan at the US Capitol. In baseball, the Yankees one along with the Orioles, the Giants, and A's Lost Global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg Nathan, Hi, Michael, thank you. It's five nineteen on Wall Street Live from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak. We have to

pass along a brief correction here. Earlier we misidentified one of the guests who spoke with us about the Supreme Courts gun rights decision as Ohio Republican Senator Rob Portman. That guest was actually Republican Congressman Kevin Brady of Texas. We apologize from the mix up there, but let's talk

more about what those lawmakers were actually talking about. Gun rights legislation, a Supreme Court ruling, and January six hearings that have unveiled more details about the pressure campaign that former President Trump put on his own government on election fraud claims. Bloomberg Government reporter Emily Wilkins is with us now from the nation's capital. So much going on in Washington, d C. Emily, including these dueling moves on gun rights

we're seeing on Capitol Hill. Let's start off with what's happening with the gun rights legislation. It's moving on to the House now, right, Yes, So the Senate passed it last night. You had fifteen Republicans joined Democrats and doing so in the most significant gun restrictions that Congress has passed since the mid nineties. We are expecting that this bill is going to pass the House today, clearing it

to go to President Biden's a dusk for his signature. Um. However, we don't expect to see a as strong as by partisan support leadership in Republican leadership rather in the House is pushing against this measure. That's really a break from what we saw with Senate leadership. You saw Mitch McConnell go ahead and say that this bill was common sense, uh and really get a number of as members of his party willing to support it, despite groups like the n r A being against it. Um. So there's a

bit of an interesting divide there. Um. This bill, of course, doesn't go as far as Biden called for, nor does

it go as far as Democrats want. Uh. It's you know, for example, it only expands criminal background checks for buyers under twenty one, and it a gift states fundy that could be used to implement red flag laws that allow judges to remove guns from potentially dangerous owners, but states are not required to use that money exactly for that purpose, which is something Republicans were pushing for earlier on UM.

Another provision, it does close that boyfriend loophole, which means that a person who's convicted of domestic violence, they are now banned from buying a gun, but it's only for five years, after which they're able to purchase firearms again. So you're seeing a lot of compromise here with this measure UM and it's something that I think for Democrats part. You saw Truck Schumer saying that you know, it's well, it's not a cure all Uh. He didn't want Democrats

to surrender to gridlock. He said that they had to forge a bipartisan path forward to pass the real bill. And all that said, this is the first major piece of gun rights legislation to move anywhere in Washington in about three decades. And I guess, showing sort of the political contrast, here's what we saw from the Supreme Court yesterday expanding gun rights in a way that hasn't been seen more than a decade. Yeah, the six three decision rule that Americans have a right to carry a handgun

outside the home for self defense. This is really something that the Court hasn't waited on before and weighed on in this banner. It strikes down a New York law requiring a special need if you want to be carrying a weapon in public. There's similar laws in place in Baltimore and San Francisco, and it comes as all these

cities are dealing with higher levels of crime. That's a big concern for a number of these mayors, and this ruling by the Supreme Court limits an option that they could use to try to make sure that there are fewer guns on the street. Of course, now the question

is what restrictions can cities put in place. You saw Justice is Kavanaugh Justices Roberts suggests that it would be possible to limit who can carry a gun in public, but the same standard needs to be applied to everyone, so it can't be for people who have specific jobs. Per se. Not a mina left here. Emily Phillipson on the latest from what we heard in the January six hearings,

we heard from several Justice to pull former Justice Department officials. Yeah, this last January six hearing, it was really focused on how Trump tried to pressure the Justice Department into falsely saying that the election was stolen UM, and it really kind of has those uh payings back to Watergate, when you saw Nixon put pressure on his own Justice Department. UM. And you also saw yesterday, UM a raid on for Jeffrey Clark of the Trump assistant Attorney General. UM. You

saw that, uh there was a rate on his home. UH. Looking further into that, it's suggesting that not only is the January six Committee going forward in their investigation, but you're also seeing the Justice Department under Biden take a much closer look at what happened on January six. Bloomer Government reporter Emily Wilkins, thanks as always for keeping us up to speed on what's happening in the nation's capital.

As we say, so much going on, lots of developments politically in Washington, d C. Looking ahead to the market open on Wall Street, more gains potentially as we get ready to round up our first winning week and just about a month here. SMP futures are up twenty eight points, Dow futures up a D nine nine, Nasdaq futures are higher by a hundred seven points. The tenure treasury little change now the three UH. The tenure yield is at three point zero eight percent and the yield on the

two year right now three point zero two percent. Stay with us. You're listening to blue Burg Daybreak Bloomberg eleven three oh weather partly sunny, low eighties to wrap up the week. It'll be warmer for the weekend, highs in the upper eighties both tomorrow and Sunday. Right now sixty three in Central Park, broadcasting live from the Bloomberg Interacted

Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C, Bloomberg On to Boston, Bloomberg one O six one, to San Francisco, Bloomberg nine sixty to the Country Sirius XM tod A one nineteen and around the globe to Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow. We are just about four hours away from the open of you West Trading.

Let's get you up to date in the news you need to know at this hour. The first major piece of gun safety legislation in decades has passed the Senate by a wide margin. It now heads to the House, where Texas Republican Kevin Brady says it should get by partisan support. I think hardening the schools makes good sense. And uh, I think uh oping the penalties on those who straw purchase, who are buying specifically to give to someone you know who is analogiable normally criminals there. You know,

I really think that is that is very helpful. Republican Congressman Kevin Brady spoke with Our Washington corresponded Joe Matthew on Bloomberg's Sound on Catch the Show weekdays at five pm Eastern on Bloomberg Radio. Well, the move comes the same day that the Supreme Court struck down a New York law that required people to show a special need

to carry a handgun in public. Meantime, Nathan, ahead of that controversial ruling, confidence in the Supreme Court reached a new low, and we get the latest lie from Bloomberg's Randy to Young Good Morning Randy too, Warning Karin. A gallop pole measuring faith in institutions over fifty years shows many societal pillars are having a bad year, But the eleven point dropped for the nation's highest court is about

double the decline experienced by other institutions. In the survey, confidence in the Supreme Court this year has slid among Democrats from thirty percent to percent, and from forty to twenty five percent among Independence for Republicans. However, the Gallop Pole says confidence has risen from thirty seven to thirty nine percent. Live in New York, I'm rened a young Bloomberg daybreak rened to thank you. In Europe, Boris Johnson has suffered a major election upset, losing a formerly safe

parliament seat in Southwest England. In a separate election, Johnson's party was beaten by Labor, raising fresh questions about the Prime Minister's popularity. On Turning to the markets, now, Nathan futures are higher, but stocks on track for their first weekly gaining a month. The S and P five hund just gained more than three percent, and a shortened holiday trading wake. Wall Street's big spanks are now set to return tens of billions of dollars to their investors, Karen.

They all passed the Federal Reserves annual test of their ability to withstand market turmoil, and shares a FedEx are higher in early trading. The delivery service company forecast annual earnings bad beat analysts estimates again. Futures are higher this morning. SMP futures have twenty six points down futures have one eighty one and NASDAG futures have one one and the

ten year treasury down three thirty seconds. You have three point one zero percent and straight ahead your latest local headlines plus a check of sports, and this is Bloomberg. Thank you, Kring. It's five thirty three on Wall Street, sixty three degrees in Central Parket services suspended on the Long Armands rail Roads run kong Koma branch more come up in traffic first, Michael Barr. What else is going on in New York and around the world, Thank you

very much, Nathan. New York lawmakers are reacting to the Supreme Court's ruling striking down the state century old law limiting the right to carry a concealed handgun in public. Governor Kathy Oakel says the decision isn't just reckless, it's reprehensible. I have taken away our right to have reasonable restrictions. We can have restrictions on speech. You can't yell fire in a crowded theater, but somehow there's no restrictions allowed on the Second Amendment. New York Mayor Eric Adams echoed

Governor Hockle's remarks. While we're still analyzing the decision, we can say with certainty this decision has made every single one of us less safe from gun violence. Mayor Adams says the decision ignores the shocking crisis of gun violence every day in golfing not only New York, but our entire country. Meanwhile, State Republican Committee Chairman Nick Langworthy says Democrats are trying to create fear and division over what he characterizes as legal gun owners rights to protect themselves

and their families. It was one year ago today that of each Front condo building and Serve Side, Florida collapse kill people, including children, family and friends of the victims gathered at the collapse site for a private individual at one two am to mark the time the building collapsed. A Long Island board of trustees admits it was a wrong decision to van LGBTQ content from the children's section

of a library, including books and displays. The Smithtown Library Board of Trustees apologized and voted last night for two to reverse the previous vote initially banning the content. Complaints by US airline passengers rose dramatically this spring as waves of flight delays and cancelations swept the industry. They were close to fifty consumer complaints filed with the Department of

Transportation in April, fift above the prior month. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalist and analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg, Nathan. Thank you, Michael. On Wall Street. Time for the Bloomberg Sports Update. Here's John stan Shower.

All right, Nathan. Making fifteen home wins in a row for the Yankees, and something they haven't done since nineteen sixty one, and the fifteenth the most dramatic of all. Yankees not only did not lead until the end, they did not have a hit from John Carlo Stanton's game time three run homer in the first inning until Aaron Hicks's game time three run homer in the bottom of

the nine and made the score six six. They weren't done against Ryan Pressley of the Astros, Aaron Judge a walk off hit and the Yanks one in stunning fashion beat Houston seven six. Quite a start for the four game series between two teams who both have double digit leads in their division. Bit of a surprise start the NBA Draft at Barkney Center. Most delt Orlando would take Auburn's Jabari Smith. They instead went with Duke's Palo Boncarroll, first of four from two, taking in the first round.

Oklahoma City stuff with shed Homebret in the seven quarter from Gonzaga that left Smith for Houston. All three were one in dunners in college. Nicks had the eleventh pick traded at the Oklahoma City for some future picks. It's also dealt the unhappy Kemba Walker to Detroit. Mixed drafted Dukes Trevor Keels in the second round the next host of the draft, but they didn't have any picks. Big

question of the offseason, does Kyrie Irving leave Brooklyn? Reportedly if he does, the mix of one of the teams he liked to play for. And if Kyrie leaves, does that mean the departure of Kevin Durant. Rory McElroy shot sixty two of the opening round, leading Hartford arch Manning third generation of the first family of Quarterbacks, son of Cooper and nephew of Peyton Eli, grandson of Archie, and

he decided to play his college football at Texas. Everyone else in the family except Peyton went to Old Miss, who painted Manning's name in the end zone at the game last season. It didn't work. John Stashward Bloomberg Sports Think Think John. It's thirty seven on Wall Street time for the Tri State Business Report with Bloomberg's cory. A plan to charge motorists entering midtown Manhattan could go into effect as soon as the end of twenty three, according

to the MTA's chief executive. The MTA, which runs the city subways, buzzes and commuter rails, start building out the sensors, cameras, and other infrastructure needed to launch congestion pricing next year. New York's biggest mall has reached a deal to avoid default. Destiny USA and Syracuse sowed four hundred thirty million dollars on a couple of mortgage backed securities that missed a

June's sixth repayment deadline. Mallowner Pyramid Management says it's secured a five year extension for its loans with flexibility to keep investing in the property. Mystic, Connecticut has become one of the most exciting culinary destinations on the East Coast. Chefs and restaurant operators are seeing Mystic as a more attractive vacation spot to do business than save the Hampton's on nearby Long Island. Are Bloomberg christ Nate Business Report.

I'm Ed Corey, Thank you at eight on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve Photos and k at X and Lass Angelists. We're talking about the job acts again, Swing again, Netflix um where He's done a hole On w h that X gives a better than expective profit outlook on higher

package prices. I'm Stephen Carol on Bloomberg Dad Digital Radio in London. We're reporting on the double defeat for Boris Johnson after his party lost two elections on the Conservative Party. Charron Quick I made Corey on w w J and Detroit Time Recording regulators have cleared the way from resumer's energy. It's not burning cold by twenty twenty five. Those are some of the stories our twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world.

It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. President Joe Biden and his allies in Congress are rightly concerned about surging prices, but the president's ideas for lowering inflation have been either beside the point or simply counterproductive. For example, he has again called for a brief gas tax holiday. The savings from this would be oddest and at least partly self defeating, because it would increase gas demand, serving to push prices

back up. They're better ways to find inflation. For example, a moderate but broadly based effort to roll back so called national security teriffs and other trade barriers could not a percentage point off the inflation rate. Well, this wouldn't totally solve the problem of rising prices, it would at least reduce the pressure American consumers are feeling, and for Democrats nervously i'm the midterm elections, A might even payoff politically.

This editorial was written by the Bloomberg Opinion Editorial Board. I'm David Shipley. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or OPI and go on the Bloomberg Terminal. These has been Bloomberg Opinion. You can

hear Bloomberg opinion editorials every weekday. At this time, terminal customers can read more at op I, n GO, SMP futures right now are up twenty four point STAF futures up a hundred seventy five NASTACK futures higher by nineties six points futures pointing to war gains, setting us up potentially for the first weekly game for stocks in about a month. Right now, the tenure Treasury is down one

thirty second, the yield three point zero nine percent. We talked more about this market next with Jonathan Golub, chief US equity strategist at Credit Suites. This is Bloomberg Bloomberg eleven three oh Weather turning partly Sunday today with highs in the low eighties, will be in the opper eighties tomorrow and the next day, with clouds increasing by Sunday right now sixty three in Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot com,

the Bloomberg Business at and at Bloomberg Ricktape. This is a Bloomberg business lash and I'm Karen Moscow and the technology sector is leading stocks higher this morning. In bonds, there a little change invest there's evaluating economic threats and

scale back expectations for inflation and interest rate hikes. Who checked the markets every fifteen minutes throughout the trading day on Bloomberg s and P future is up about twenty seven points down futures have a hundred eighty eight and now stay futures have one hundred four The dacks in Germany's ups extensive upper set. Can your treasury that'll change you'll three point eight percent and they yield on the

two year three point one percent. Nine max screwed oils up one point three percent of a dollar thirty three and a hundred five dollars sixty one cents a barrel. Comic school this it'll change at one thousand, eight hundred twenty nine dollars announced. The euro one point oh five four seven against the dollar, British bound one point to three oh two and the n is at one thirty four point nine nine. And that's a Bloomberg Business Flash. Now here's Michael Barr with more on what's going on

around the world. Michael, thank you very much, Karen. The U. S. Senate vote at sixty five thirty three to approve bipartisan gun safety legislation that is hailed as the biggest breakthrough on the issue in three decades. The vote came the same day the Supreme Court struck down to New York that required people to show a special need to carry a handgun in public. The death sold from a devastating earthquake in Afghanistan continued to climb days after it turned

brick and stone homes into rubble. State media reports the quake has killed eleven d fifty people and injured some three thousand. In baseball, the Yankees one along with the Orioles, the Giants, and A's lost Global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than

a hundred twenty countries. Michael bar this is Bloomberg, Karen Ry. Michael, thank you, but It's five eight on Wall Street time for our daily Bloomberg Law Brief, exploring legal issues in the news, and today we're looking at yesterday's big Supreme Court decision. As you've been reporting, a divided court struck down in New York law that limited who could carry a handgun in public, issuing a landmark ruling that could

mean more guns on the streets of big cities. The six three decision marks the first time the Court has said the Second Amendment protects gun rights out I the home for more in the decision, Bloomberg student Grosso speaks to Adam Winkler, a professor at u c l A Law School. We anticipated this after the oral arguments, But what's your reaction. Well, I think the Court's ruling is

even broader than many people expected. That the Court not only strikes down New York's may issue permiting, but articulates a new test for all Second Amendment challenges that will be used to calling the question a wide variety of gun laws, including some key provisions of the Senate gun bill.

Justice Thomas, who wrote the majority opinion, said, quote, only if a firearm regulation is consistent with this nation's historical tradition, may a court conclude that the individual's conduct falls outside the Second Amendments unqualified command? So what's the framework for judges?

What did the founders think? No? I think what the courts suggest is that future courts must look to historical patterns of gun regulation, and only those gun regulations that have historical anti sass in the seventeen and eighteen hundreds are constitutionally permissible. This really calls into question a wide variety of gun laws. For instance, red flag laws have no precedence in the seventeen and eighteen hundreds. Also restrictions

on domestic violence misdemeanors being prohibited from possessing firearms. So I think this opinion saddles lawmakers and prevents them from attempting innovative novel approaches to solving the public safety problem of gun The Governor of New York, Hathy Hokel, said something to the effect of this law is a hundred years old. Isn't that old enough for the Supreme Court?

And the New York law has a long history. Here, Well, the court says we're going to look to history and tradition, but really picks and chooses which history matters the Court dismisses old English common law as being too old and too ancient to tell us much about the Second Amendment. The Court also dismisses any laws that were adopted after the late eighteen hundreds, saying that those laws are too young and can't reflect the original understanding of the Second Amendment.

And when the Court finds laws in the special period of the seventeen and eighteen hundreds that restricted confused carry, the Court says that those laws were just outliers and shouldn't be taken to be the general attitude about guns and gun regulation. Indeed, the Court says that shall issue permitting regimes are constitutionally permissible, but we didn't have shall issue permitting regimes at all in the seventeen and eighteen hundreds.

So the Court says, let's do history and tradition, but really picks and chooses the history that it wants and rejects the history that is inconvenience. And that's Adam Winkler, professor at u c l A Law School, speaking at the Bloombery Student Grosso. Catch more of that interview, plus analysis of the latest legal news by listening to the Bloomberg Law Show attend PM Eastern time or subscribing to the Bloomberg's Law podcast, and attorneys can find exceptional legal

research and business development tools at Bloomberg's Law dot com. Nathan, all right, Karen, thank you. It is now five fifty two on Wall Street. We're live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. Let's turn down to what's happening in this market. With futures poised for the first weekly gain for stocks in about a month, Let's bring in Jonathan Golub, now CEF US equity strategists at Credit Suite Securities. Jonathan, good morning. Is this what capitulation

looks like? Oh, you know, I don't know if I would call it capitulation, but um, you know you're seeing the you know, the earnings are are picking, you know, continued to do well. Expectations are rising even though the market is falling. The market has gotten a whole lot cheaper. And you're also seeing um interest rates have been coming down, which means the cost of capital for stocks um is

is becoming more moderate. So um, that's that's a positive, and it's something it's a story that probably isn't getting enough attention. Do you expect her interest rates to continue coming down when we do have central banks focused on raising their prime rates and bringing down inflation. You know, it's it's an interesting thing about markets that they tend to our economics. It tends to be self correcting. So

the FED um titans financial conditions. You're starting to see um some some weakness and things like housing, and what happens. It pushes interest rates down on um in general, the tenure bodyles come down, comes down a little bit, and and and and it gives the market a little bit of a lift. So um, this is not unusual that you would see that as the FED continues to push rates higher that that it does reach some natural um limit and you start to see easing elsewhere is a

bond market getting this right? Though? Should the markets be anticipating uh, further aggressive rate moves by this Fed? Well, the Fed is surely telling you that they're going to be super aggressive and addressing inflation. And what the market is telling you is if the economy starts to respond to the FED, that the FED is likely to back off.

And whether that's true or not, we will see. But the question that everybody all the really smart money is now asking the question is if the economy starts taking on a little bit of um, you know, if the you know, the economic boat, if you will take a little bit of water, if things are slowing down a little bit, does a fed keep you know, full steam ahead and you know and and pushing down on inflation, or do they begin to ease up a little bit trying to create that soft landing and UM and and

ultimately UM that gives the market a little bit of about We're coming into this trading day with the S and P five hundred just shy of a thirty eight hundred handle? Are you changing where you see the benchmark ending this year? Now? We're pretty optimistic on how the

benchmark ms year. UM. You know, the big story, as I mentioned before, first of all, the absolute big story is that while we clearly believe that there is a recession on the horizon, there's always a recession on the horizon, we don't think that it plays out in the next six to twelve months, and as a result, we think that the earnings come in UM pretty strongly. We're seeing that all year long, from from January one today, the earnings outlook is increased by seven to eight percent. That's

a that's a really healthy number. And yet multiples have come down by thirty because of inflation and the fits fighting of that inflation. UM. And so we do think that we get a very healthy balance between now and the end of the year. Those learning expectations for you across the border. Certain sectors likelier to outperform than others. Well, yeah, I mean they're they're clearly you're seeing more of that in the energy sector than you would normally expect because

oil prices are higher, and materials in general. I would say that's a similar theme. UM. Big tech, of the big five tech companies in general have been pretty disappointing, and the financials have some funky accounting going on which is hurting their earnings, even though their business models are doing okay. And that has to do with the way that they account for potential future losses and the reversal

of those last year. But UM, I would say is those more cyclical areas and energy and materials have been the darlings on this UM. And it's an interesting when many of these defensive stocks like in utilities and staples that have done really well have become very very expensive, and their outlook for earnings is extremely modest, both for two and twenty three, and so if they're getting bit up and their outlook for earnings this week, um, we

think that those are less attractive right now. Thanks for this, Jonathan, great having gone with us this morning. Jonathan Gollub, chief US equity strategists at Credit Suite Securities. Right now, SMP futures are up twenty eight points, Staff futures up, NASTAC futures higher by a hundred eleven points. The tenure Treasury is up one thirty second. The yield three point zero eight percent. Bloomberg day break continues. This is Bloomberg