Bloomberg Daybreak: June 7, 2022 - Hour 2 (Radio)

New York Mayor Eric Adams reacts to new gun laws across the state, plus the US lawrens North Korea of the strong punishment conducts in nuclear tests. On Michael bar More Ahead, I'm John Stash Howard Sports. Then that's one in San Diego, Colorado has raised the Stanley Cup Final.

The Rangers play Game four at Tampa Bay tonight. That's all Strady Ahead on Bloomberg day Break on Bloomberg eleven, Freo, New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius XM one nine Team and around the World Old on Bloomberg Radio and dot car. I'm via the Bloomberg Business and good morning. I'm Karen Moscow. I'm Nathan Hagar. Bloomberg Daybreak is 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 and us dock. Index futures are lower this morning, six out one on Wall Street and we check the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, SNP futures are down eighteen points down, futures down a hundred thirty eight and

NASDAG futures down sixty eight. The tenure treasury up six thirty seconds, you know, three point one percent, and they yield on the two year two point seven one percent. Nathan, all right, thanks Karen. We'll have more on the markets in just a minute. First we want to bring you the latest on the future of Boris Johnson, the UK Prime Minister has managed to cling to power. Let's go to London and get the very latest with Bloomberg's You

and Potts. Good morning you, and good morning Nathan and Karen win for Boris Johnson in a votes among lawmakers in his own Conservative party, the UK Prime Minister has secured the numbers to remain as leader, but more than forty percent of his colleagues indicated they have no confidence in his leadership. That was the worst result than that

suffered by his predecessor, Theresa May. Under official party rules, he cannot now be challenged again for another twelve months, but rules can be changed and many expect Leadsia questions to continue. In London, I'm you and parts in bag day break you and thank you Now. The latest on the war Russia has spanned dozens of US officials from entering the country. We get details from Bloomberg's Any Morrison

our newsroom in Washington. Treasury Secretary Janet Yellett and Black Rocks Larry Fink are among the sixty one US officials and executives indefinitely banned by Russia retaliation for what it called constantly expanding sanctions against its citizens. This says Ukraine is in talk with the United Nations to craft a deal between Turkey and Moscow to restart shipments of grain from ports blocked by Russia. Meanwhile, shortly after the UK joined the U S and pledging to send longer range

missiles to Ukraine. Russia's President Putin threatened to strike new targets if those weapons are delivered in Washington. I'm Amy Moore as Bloomberg Daybreak. All right, Amy, thank you, turning to US politics. This is a primary election Super Tuesday. Seven states, led by California and New Jersey, are heading to the polls for the busiest day of voting before the general election in November. Claremont McKenna College political scientist Jack Pitney has more on a major theme playing out

in California, crime and homelessness. If you talk to anybody who's recently visited Los Angeles, still be shocked at the homeless encampments all over the city. Uh. It's a huge humanitarian problem and one that the city government has not been able to manage very effectively. Clairemont McKennis Jack Pittney says it's affecting the Democratic race for Los Angeles mayor, hitting Congresswoman Karen Bass against tough on crime billionaire Rick Caruso.

It is also feeling the race for Attorney General in California to Republicans and a Republican turned independent, are running to unseat Democratic incumbent Rob Banta. As for congressional races, Republican David Valadeo is facing a tough primary challenge. Valadeo was one of the ten House Republicans who voted to

impeach former President Donald Trump last year. Well the New Jersey Nathan Republican contenders are hoping to crack the States Blue Wall in today's primary, and Bloomberg's Michael Barr has the latest. Today's primary has a field of thirty five GOP candidates, many in line with former President Trump. However, the governor's seat and the legislature are controlled by Democrats and the party holds ten of the twelve congressional seats. One race to keep an eye on is New Jersey's

third District. Jim owner Ian Smith, refused in order to close his business during the pandemic, is among three Republicans running against Democrat Andy Kim. The third district is a politically divided area that voted for Trump by a narrow margin in the election In New York. Michael Barr Bloomberg Day Brick Michael thank you in Corporate News. Deal or No Deal looks like Elon Musk's buyer's remorse won't get

him out of his acquisition of Twitter. Let's get more on that line from Bloomberg trained to on Good Morning Nina, Good Morning Nathan. Elon Musk is reviving his argument that Twitter has a serious bot problem, and he's threatening to walk away from the deal if the social media giant does not do more to prove that its users are real people. But Bloomberg sources say behind the scenes the

deal is proceeding. Twitter thinks it's in the best interest of all shareholders and wants to close the transaction, and it's possible that Twitter could try to sue Musk to complete the deal if he tries to walk away. Live in New York, I'm goned a young Bloombark day break all right, reneed to thank you all. Apple out with

new software and services at its Worldwide Developers Conference. Fresh features include an updated iPhone log screen, multitasking for the iPad, and a pay later service that bring Apples into the finance industry. We discussed the move with Creative Strategies President Carolina Milanessi from the event in California. I think the core of it is that is going to be so much easier for people that use Apple Pe to just use as a default versus using the plethora of other

options that you have in the market. It's about integration, is about taking away every little bit of friction that you have in the experience. The Creative Strategies President Carolina Milanossi expects Apple's new pain later features to be helpful for both small businesses and consumers. Turning to the economy, Karen JP Morgan Chase chief economist Bruce Casman says there is little chance of recession is imminent. I think what we're gonna see is growth continue to be on the

softer side, but growth continue to show resilience. Uh. We don't see a near term recession. Uh. We see a global economy which actually does okay in the second half of the year, with the u AS slowing and the rest of the world doing somewhat better. JP Morgan Chase chief economist Bruce Casman's comments differ from those of his boss, Jamie Diamond. Last week, Diamond said investors should be ready for an economic hurricane, as tighter monetary policy, inflation, and

Russia's invasion of Ukraine pose ongoing risks and Bloomberg. Day Break is brought to you by b n Y Melon Pershing's Inside Conference back in person June fifteen through the seventeenth at the Gay Lord Resort in Grapevine, Texas. Don't visit Register now at Inside dot b n Y Melan dot com. Futures are moving lower this morning. SMP Future is down about nineteen points. Straight ahead your latest local headlines, plus a check of sports, and this is Bloomberg. Thanks Karen.

At six oh seven on Wall Street where at sixty three degrees in Central Park and still dealing with an accident on southbound Harlem River Drive at the George Washington Bridge. Details coming up in traffic. First, Michael Barr is back with more on what's going on in New York and

around the world. Good morning, Michael, Good morning Nathan. New York Governor Kathy Oacal signed new gun reformed legislation into law three weeks after ten people were killed in a mass shooting at a Buffalo supermarket by a self proclaimed white supremacist. The bills will include banning anyone under the age of twenty one from buying or possessing a semi automatic rifle. As well as expanding current red flag laws. It's just Eve's happening. Shots ring out, flags come down,

and nothing ever changes except here in New York. During the signing and Buffalo Governor Hocle says, New York legislators made the decision to be leaders when it comes to gun reform, rather than followers waiting on Washington, New York Mayor Eric Adams praised the new gun laws in the state. Adams says, though, that more needs to be done to properly prosecute the criminals who commit the crimes, because, he says, criminals, no, they won't face proper consequences. No one takes criminal justice

seriously anymore. These bad guys no longer take them seriously. They believe our criminal justice system is a laughing stock. Mayor Adams also says they've taken three thousand guns off the streets. A bipartisan group of lawmakers in Congress is trying to find common ground to pass new gun control legislation. Democratic negotiators say a deal could be completed this week. Democratic Senator Chris Murphy of Connecticut. Parents are scared, kids

are scared that they need progress. They need us to show that we care about what kids are going through UM, and I'm hopeful that we'll get a deal. Senator Murphy says. The proposals include enhanced background checks. The former top leader of the far right Proud Boys extremist group and other members have been charged with seditious conspiracy for what federal prosecutors say was a coordinated attack on the US Capitol, the US war and North Korea of a strong punishment

if it conducts a nuclear test. The United Nations watch Dog Agency says signs into k Pyong Gang could soon set off its first atomic device since 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 Bart, this is Bloomberg, Nathan. Thank you. Michael six o nine on All Street time

for the Bloomberg Sports Update with John Sisha. All right, Anton, the Mets have the best record of National A. They just split a four game series with the Dodgers, who have the NLS second best mark, and the Mets are now in San Diego and the Padres are the owners of the third best record. The Mets took the series open the eleven five three runs in the first inning four of the ninth, and Wardo Escobar a big night four instantly on the home run he drove in six.

Carlos Carrasco struck at ten improved his seven and one Yankees over their major league leading forty win. Tonight at Minnesota, they'll face a couple of x Yanks, Garry Sanchez and Juale or Sella. Rangers now have two games to one. Game four of Tampa Bay Tonight, we know who the winner of that series will play with the Stanley Cup. Tep talking great bad start. Try look at at and it don't have to go home, but you can't stay

here because this party is over. K s E and Denver had to call the ad six five time when Edmonton that keapped a four game sweep. It's the first time Colorado has reached the Stanley Cup finals since winning the Cup in two thousand one. The Bruins fired their coach, Bruce Cassidy, he got them to the playoffs sixt eight years. Phil Mickelson has not been playing golf, says he needed time off, and Micholson made official he is going to play the new Saudi Back Live Tour that starts next

month in London. Michelson said he's hopefully can still also play PG eight tour events. He told Sports Illustrated his gambling has been reckless and embarrassing that he's been in therapy. It was reported he once had forty million dollars in fambling losses. Greg Norman runs that Live Towards says Tiger Woods was offered a nine figure amount to play, but he said no. John stash that were Bloomberg Sports. Thank you, okay, John,

thank you. Right now, SMP futures are down eighteen points down, futures down at eight, NASAC futures down seventy two points, sequity futures adding to their declines this morning. We'll get insights on this market coming up next with liz Anne Saunders, chief investment strategist at Charles Schwab. Stay with us for that you're listening to Bloomberg Gay Break. Bloomberg day Break is brought to you by Hofstra University's Frank gez R School of Business, top ranked online NBA program with a

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 Outland, at Bloomberg Victape, He's a Bloomberg Business Flash and I'm kared Moscow. European stocks are dropping along with US stock index futures as central banks and on tightening policy fan growth fears, and we check the markets every

fifteen minutes throughout the trading day on Bloomberg. Right now, U S and P futures are down twenty three points down, futures down a hundred seventy four, and NASDACK futures are down eighty four. The decks in Germany's down about one percent ten. Your treasury up six thirty seconds yield three point one percent. They yield on a two year two point seven one per cent. Nine max scrude oils down to tens per cent or twenty three cents and a

hundred eighteen dollars twenty seven cents of barrel comes. Gold is up three tents per center five dollars at eighteen forty eight, the euro one point oh six seven nine against the dollar, British pound one point to five one four and the ends at one thirty two point six nine and look at a bitcoin this morning, down almost six percent at twenty nine thousand and five hundred seventy dollars. As 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. South Korea and US militaries flew twenty fighter jets over waters off South Korea's western coast today in a show of forest as a senior US official warrant of a forceful response if North Korea goes ahead with its first nuclear test explosion. Since sev age limits and red flag laws are being discussed in Washington, has a bipartisan group of senators looks for ways to curb the outbreak of gun violence in the name a

strengthening background checks. Also on the table. In the NHL playoffs, the Avalanche beat the Oilers to advance to the Stanley Cup Final. Colorado will either face the Rangers or the Lightning, who play game for tonight. In baseball, the Mets and Red Sox one Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven under journalist and analysts more than countries. Michael

bar This is Bloomberg, Nathan Michael. Thanks, It is six nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and we're very pleased to be joined this morning by Liz Anne Saunders, chief investment strategist at Charles stab as we look to make sense of this market. Liz, good morning. We started this week with some modest gains, but now we're looking to give those

back and then some. It seems like the debate over whether central banks can pull off tighter policy without triggering a recession is back in play. What's your view on where things stand now? Well, I think it was in play all along. We we had a we had a pretty brutal seven weeks span of time, and to see a bit of a countertrend or relief rally is to

be expected. You had gotten to very oversold conditioned sentiment had gotten washed out, at least attitudinal measures of sentiment, and I think that that established a base for the kind of rally that we saw. I don't think it was driven by some assumption that either the Fed would be able to take their foot off the brake or we were in a goldilocks economic scenario. That's just the

nature of rallies in bear markets. But we're still now facing a trillion dollars over the next year of of runoff on the balance sheet, and I think the digestion of the absence of that liquidity is sort of you know, back in front of mine. What do you think the impact is going to be as that removal of the punch bowl? Yes, you could say it starts to play out here. How's that going to affect investors going forward? I think this change in a liquidity environment is not

a purely a prospective thing. It is as it relates to the balance sheet. But if you look at broad measures of money growth, even though still positive in your over year terms, well down relative to where we were certainly in and I think that that's been really the story of the at least phase one of the bear market, I think was the market reflecting this change in the liquidity environment, rising interest rates for to your own inflation,

all the things we live even breathe every day. And I think Phase two was a hit to the economy, which was certainly reflected in in Q one with a negative GDP print. And I think the next phase maybe the market digesting what is likely to be a deteriorating profit outlook, and that really might be the first time really since the pandemic erupted that at least when we were coming out, you had that huge surgeon earnings off

the off the lockdown lows. I think we may now for first time this quarter befacing estimates and a bar that is set a little bit too high. So I think that next phases shift to come. But this changed liquidity environment really started last year when we saw that significant shift in money supply in courtesy of both the fiscal side and now the monetary side. Are you starting to see evidence at this point that corporate earnings expectations

are beginning to deterior right now? Yeah. So, if you if you go back the last six quarters or so, we we had a pretty consistent trend of estimates when they were first printed being on the lower side and then getting raised. If you look at the three month span of time, the final three months of estimates for each quarter, for the most part, those had moved higher, but for the first quarter or for the second quarter,

that has actually been coming down. And longer term estimates out two to three years have rolled over as well, and I think this coming quarter that we're reporting second quarter, of course it won't start until July, maybe the first real signal of a change in the profit margin's landscape. They they've been surprisingly resilient, albeit down from the peak

of last year. But you're really stacking up the companies that are talking about that margin pressure because of imput costs obviously inclusive of labor, but also now weaker demand. We only have about a minute left here, Lizianne, but I want to get your take on this debate playing out between JP Morgan's CEO, Jamie Diamond, and his chief economist over at JP Morgan about whether an economic hurricane is coming. Bruce Cassman, the chief economist, says he doesn't

see a recession and what's your what's your view on it? So, I think anytime you have a FED shift to tightening mode. If you just go back in the history of modern day FED last thirteen rate hikes cycles, you've had ten recessions,

three soft landing. So I think just history suggests the needle points a little more toward recession, especially when you have a FED that's trying to combat afford to your higher inflation and as I mentioned, already weak growth in the first quarter, so I think a recession is probably more likely. Soft landing is possible, but I think the supply side of the economy has to do some of the work for the FEDS, so continued loosening up on the labor market side as well as supply shortages, I

think that would be the path. But we're we're in a storm. But whether hurricane is a little too bombastic, time will tell. Thanks as always, Lizzie, great to get your thoughts this morning. Liz Ane Saunders, chief investment strategist at Charles Schwab. Right now, SNP futures are lower by twenty eight points, a drop of seven tenths percent, their Dow futures down a hundred nine Nasdaq futures leading the declines, down a hundred twelve points for a drop of nine

tenths of one percent. The ten year Treasury right now up six thirty seconds for a yield of three point zero one percent, yield on the two year two point seven one percent, and i'm x crude is lower by two tenths percent and nineteen cents a hundred eighteen dollars one for a Barrel of West Texas Intermediate. You're listening to Bloomberg Daybreak Bloomberg eleventh three oh weather partly mostly sunny, upper seventies today, showers and storms likely tomorrow with a

high near eighty. Those showers and storms will end during the morning Thursday, currently sixty three degrees in Central Park. Broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg E living free on to Washington, d C, Bloomberg N one to Boston, Bloomberg one O six one to San Francisco, Bloomberg N sixty to the Country, Sirius XM Gentle one nine and around the bloom the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak.

It's six thirty on Wall Street. Good morning, I'm Nathan Hagar and I'm faring most hour, just about three hours away from the open of U West Trading. It's time for the five things that you need to notice start your day. Brought to you by Interactive Broker Simple ib K, our Global Trader app. Deposit in your local currency and trade stocks in the US, Europe and Asia. Start your free trial at ib K r dot com slash Global Trader. First,

the latest on the future of Boris Johnson. The UK Prime Minister has managed to cling to power, surviving a confidence vote last night. I'm grateful to colleagues. I'm grateful for the support they given me. Boris Johnson's leadership was uncertain due to scandals and political challenges. The so called pandemic, Party Gate events and Downing Street angered citizens, along with a cost of living crisis and tax increase. After the result, Johnson said it was time to get back to helping

people in the UK. We have a conclusion to something that's been dragging on for far too long, and we have the ability not to unite, deliver and get on with the people's priorities. And that is what we're gonna do. Boris Johnson received two hundred eleven votes in a confidence motion and one hundred forty eight against him. All right,

let's turn to the war in Ukraine now. Karen Russia has banned dozens of US officials from entering the country, while Ukraine's looking for ways to restart grain exports from ports that have been blocked by Russia's military. Treasury Secretary Janet Yellen and Blackrock CEO Larry Fink are among those now banned from Russia. Back in the US, Nathan, we're

watching primary races in New Jersey and California today. Crime is the focus and the Los Angeles may oral race as well as San Francisco's District attorney recall election, and there are some tight house races in New Jersey. There were also primar race today in five other states. In Corporate News, Karen looks like Elon Musk's buyer's remorse isn't going to get him out of his deal to buy Twitter. Let's get the latest live from Bloomberg's Ranita Young. Good morning, Ranita,

Good morning, Nathan. Elon Musk is reviving his argument that Twitter has a serious bot problem, and he's threatening to walk away from the deal if the social media giant does not do more to prove that its users are real people. But Bloomberg sources say behind the scenes, the deal is proceeding and it's possible that Twitter could try to sue Musk to complete a deal if he tries to walk away. Live in New York, I'm reneed a Young Bloomberg Day Break right. Need to thank us and

p future is down twenty two points this morning. Down future is down on two nasty egg futures down at nine two ten. Your treasury up six thirty seconds, yield three point one percent, the yield on a two year two point seven one percent. Niveag screwed oils down three towns per cent or thirty five cents at a hundred eighteen dollars thirteen cents of barrel. And that's the five things that you need to notice start your day. Brought to you by interacted brokers. Try to head your latest

local headlines, plus a check of sports. And this is Bloomberg. Thanks caring. At six thirty three on Wall Street, sixty four degrees in Central Park, Big problems on the Brooklyn bound upper level of the Arizono Bridge. Couple of lanes taken out with an accident. We'll get to the details shortly. First Michael Barr with what else is going on in New York and around the world. Good morning, Michael, Good

morning Nathan. New York Governor Kavy Ocal signed new gun reformed legislation into law three weeks after ten people were killed in a mass shooting in a Buffalo supermarket by a self proclaimed white supremacist. The bills will include banning anyone under the age of twenty one from buying or possessing a semi automatic rifle, as well as expanding current red flag laws to keep guns out of the hands

of dangerous people. No eighteen year old can walk it on their birthday and walk out with an at Those days are over. Those days are over. You hear that those days are over. Governor HOCl New York City Mayor Eric Adams, who praised the state's new gun laws as his city has seen a rash of gun violence, but that police have been working to find those responsible. But Adams says that more needs to be done to properly

prosecute the criminals who commit the crimes. If we do the rope to get it to the grand jury, to get that indictment, to make the arrest, then the other team must do their part the course after prosecute me or, Adams says, so far are they've taken about three thousand guns off the streets. Age limits and red flag laws being discussed in Washington as a bipartisan group of senators looks for ways to curb the outbreak of gun violence

in the nation. Democratic Representative Chris Murphy of Connecticut. My goal is to reach an agreement by the end of the week. We've got more Revolgans and Democrats sitting together than ever before since Sandy Hook. What we're talking about is substantial um it will save lives. Representative Murphy says strengthening background checks is also on the table. The US war North Korea of a strong punishment if it conducts a nuclear test, Deputy Secretary of State Wendy Sherman said

in sold in today's meeting. Whether South Korean counterpart any nuclear tests would be in complete violation of UN Security Council Resolutions UH, there would be a swift and forceful response UH to such a test. Deputy Secretary of State Sherman, along with a U and watchdog groups, says Pyong Yang could soon set off its first atomic device since seen Global Neames twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven

hundred journalists, analysts, more than a hundred twenty countries. Michael Barr and this is Bloomberg nith Thank you, Michael. Almost six thirty six on Wall Street. John Sash hours back with the Bloomberg Sports Update. All Right, Nathan Mets third straight win out West after two in l A. They won in San Diego eleven to five. Is Eduardo Escobar had a two run single to run triple and a two run homer. Carlos carrasco ten strikeouts in seven. He's now seven and one in The Mets at thirty eight

and nineteen, have won two thirds of their games. The Yankees have won their last six play tonight at Minnesota, Battle of a L Division leaders, the Colorado Avalanche will play for the Stanley Cup. They have been dominant in the West, twelve wins only two losses. They have finished the sweep of Edmonton, winning a wild game four, six to five on a goal a minute nineteen into overtime. They have scored four times in the third period. This will be their first Cup final since they won the

Cup intan thousand one. They will play either the Rangers or the light named Tampa Bay just one game three, cutting the Ranger lead to two one, and yesterday Rangers coach Gerard Galant was looking ahead at tonight's Game four. You gotta get ready for one game at a time, as I always say, and you Okamo is a huge game for us. We gotta compete and we've got a battle.

We gotta play a little good here than we did last game, but there was a lot of good things, and you know, keep playing a game, keep working hard, and I think I said it's two two words, three one. So let's see where it goes. And the Rangers win on the road in the playoffs. There eight and one at home, but they're just two and six away from the Garden super Bowl champion l A. Rams have locked up their star on defense a rework deal with with

Aaron Donald Whare. He's guaranteed ninety five million dollars over the next three years. That's the most for any non quarterback. John stash Award Bloomberg Sports Nathan all Right, John, thanks sixty seven on Wall Street not to take a look at stock some of the names moving in the pre market. On this risk Off Tuesday, We're joined by Bloomberg Radio on TV Markets correspondent Crety Gupta. You know, Creaman been talking a lot this morning about the buyout drama between

Elon Musk and Twitter. But that's not the only M and A story going on this morning. It's not the only M and A story who thought things could go uh, perhaps swimmingly outside of them in the M and A space. Outside of Twitter, there are other companies out there that could be bought. And of course that brings me to our first stock mover this morning, of course, is Cole's k s S is your ticker up twelve percent, the company holding exclusive talks with Franchise Group regarding a deal

that would value the retail chain. I get this eight billion dollars. They're going through an exclusivity period to discuss Franchise's Group offer to buy Coals for sixty dollars a share. Now, I'm glad that you mentioned the Twitter and Tesla deal, Nathan, because one of the big issues with that deal is when it comes to an investing story and the stock price story, is the deal premium that is so far away from the offer price of from Elon Musk, and

Twitter shares just haven't even hit that. Even when exactly when Elon Musk was further even closer, was far more driven to buy this deal order to buy this company and to go through with the deal. That deal premium has since widen and widen, and I think we're looking at a thirty eight handle on on Twitter shares. It's interesting to look at coal shares as well because k s S is at twenty at least in the pre market here, and that's after a twelve percent game, So

it'll be interesting to see whether these shares. Remember, this is a very normal thing for people to do in an M and A deal, find that risk arbitrage and get it closer and closer and closer to that offer price. So keep an eye on where the shares are, not just how much they're moving, because the closer you see those shares get to sixty dollars a share, the more believability there is in the market that this deal is actually going to go through. Another really interesting stuck on

your list created analysts are giving Peloton another look. It's all about management, you know. One of the big pieces of career advice I got Nathan was make sure you have a very good manager. I'm very lucky to have a very good manager. But I think, as are we all kissing up. Kissing up to the management are the first thing in the morning. But it's the same dynamic when it goes to Peloton Chairs Here. P t O n is your taker. It's up about six tenths of

a percent. This comes after the former vice president of Amazon Web Services, Liz and I'm gonna butcher this name, but cotting Thomas. I want to say, is quote well positioned to help Peloton and its next stage of growing subscribers, at least as according to City. This is after the exercise machine maker appointed her. The Coddington appointed Cottington the CFO of Peloton. So they're saying, you know, we believe

in her, we think that she can help. Of course, we know Peloton could use the help given of the decline in sales. Yeah, certainly. Bloomberg Radio on TV markets correspondent Creedy Gupta taking a look at some of the movers in the pre market and taking a look at stocks as a whole ahead of this Tuesday morning open.

They're moving lower with SMP futures down down nineteen point, Staff futures down a hundred thirty eight, NASTAC futures down eighty three points, and the tenure treasury right now up six thirty seconds for yield of three point zero one yield on the two year two point seven one. You're listening to Bloomberg Daybreak, Bloomber eleven three oh weather sunshine up for seventies today, Showers and storms tomorrow with a high near eighty degrees. Those storms will end during Thursday morning.

It will stay near eighty though currently sixty four in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot com, The Bloomberg Business Outland at Bloomberg Quicktape. This is a Bloomberg business flash and I'm caring Moscow. This update 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 at Informatica dot com.

European stocks are falling this morning, along with US stock index futures, as central banks set on tidening policy fan growth fears. We check the markets every fifteen minutes throughout the trading day. On Bloomberg, s and P futures are down twenty points down, futures down a hundred forty five and as day futures down eighty eight. The decks in

Germany's down nine tenths of a percent. Ten year treasury of five thirty seconds yield three point one percent, the yield down the two year two point seven one percent. Ni Max screwed oil is little change now down well down a tenth of a percent, down ten cents at a hundred eighteen dollars, thirty nine cents of barrel comex gold up half percent or nine dollars at eighteen fifty

two seventy an ounce. The Euro one point six eight zero against the dollar British found one point to five one four and the one thirty two point seven one. And we're watching bitcoin down five point eight percent at twenty nine thousand, six hundred dollars. That's a bloomberg business flash. Now here's Michael Barr with UR on what's going on around the world. Michael Karen, thank you very much. Bipartisan group of Senators. As new nationwide gun legislation could come

by the end of the week. It would likely center around a proposal that includes enhanced background checks. British Prime Minister Boris Johnson survived a no confidence vote, securing enough support from his Conservative party to remain in office. Johnson faced revelations that he held parties that flouted the COVID nineteen restrictions in the NHL playoffs. The Avalanche beat the

Oilers who advanced with the Stanley Cup Final. Colorado will face the Rangers or the Lightning, who play Game four tonight. In baseball, The Medicine red Sox one Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than journalist and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Karen right, Michael,

thank you. While it is sixty nine on Wall Street, we turned to news in science and technology now with a Bloomberg and j I T STEM report to you buy. New Jersey Institute of Technology, a ranked top fifty national public university by US News and World Report and number fourteen in the nation on Money's Best Colleges list. Learn more at n j I T DOT E d U. You know, here's just making news in science, technology, engineering

and math. The Treasury Department says five D eighty three million dollars in funding will flow a broadband projects to connect more than two hundred thousand homes and businesses in Virginia, West Virginia, Louisiana, and New Hampshire. The funds are from the ten billion dollar portion of the American Rescue Plan. Another sixty five billion comes from the bipartisan Infrastructure Law. Hong Kong will not tighten coronavirus restrictions before the city's

July first handover anniversary. That's according to Chief Executive Kerry Lamb. There's been speculation that China's President Jis and Paying might attend the celebrations. Hong Kong's COVID cases have been rising since the city began rolling back social distancing curbs and autonom as driving technologies are becoming more common in China as self driving developers look to deploy a range of

systems and their vehicles. Bloomberg any F expects the share of sales of passenger vehicles at level to automation in China to jump from thirty five percent in twenty Level two cars are partially autonomous, but the driver still controls the vehicle and as the Bloomberg n j I T STEM report. Nathan all right, Karen, thank you. We are live from the Bloomberg Interactive Brokers studios, where it's six fifty on Wall Street time now to check what's going on in BC. Some of the top stories in our

nation's capital include California and New Jersey. Leading a busy primary election day from coast to coast, Republican John Cornyn drawing a line on a gun compromise coming out of Senate negotiations, and the January six Committee in the House facing a high bar as hearings gets set for prime time. Let's bring back Bloomberg government reporter Jack Fitzpatrick for a look at more on all these stories. Jack, it is a very busy primary day, seven states heading to the polls.

What races should we be keeping an I on? Oh, there are a ton of interesting ones. I I think one of the ones I'm most interested in in California is probably David Valladio, one of only six Republicans in the House to vote to impeach Trump. Uh. He does face a couple different Republican challengers in his primary, but interestingly enough, there hasn't been a really vocal push from

the former president to take on Valadeo. This is a district that really leans toward Democrats, but this moderate Republican has managed to win their UH so to see if he can thread the needle, and managed to win the primary and then also win in the general in a tough environment. Obviously a better environment for Republicans this year. Uh. That's that's one of certainly one of the the compelling

ones coming up today. And speaking of Republican challenges, we've got a lot of Republicans running in races in New Jersey following election last year where Democrats kind of barely squeaked by. Yeah, there are a couple of different districts where Democrats in New Jersey have one in tough districts. Uh, Tom Malanowski and Josh Gottheimer are people to keep an eye on. They've Gottheimer has two different Republicans seeking to challenge him, So we'll see who wins it. Maybe a

rematch against the person he beat last time. It could be a newcomer, the Marine Corps veteran, Uh. Malanowski is going to get a rematch Andy Kim another fairly moderate district in South Jersey that was won by a Democrat, but again two is looking much better for Republicans than was or of course, so there there are a number of moderate Democrats uh in in districts that are at least partly new after redistricting that could have a real

challenge as we get toward the general election. What's the flavor of some of these Republican primaries that you're watching. Are you seeing the quote unquote establishment Republicans doing well in some of these races, are or are some of the more populous swing of the GOP doing well. I think we're at the point where the Trump aligned portion

of the Republican Party really is the establishment. Now. Uh, there are some interesting clashes, you know, if I if I look to for example, Young Kim the Republican looking for a second term in California, Uh, in it basically a swing district, probably leaning toward Democrats in most years. She's got a challenger running to her right. Uh that Democrats hope wins because it would make it easier for

the Democrat to unseat that currently Republican held field. So there are there are some Republican battles between moderates and and more conservative members, but for the most part, you don't see a massive number of Republicans who are what

you'd call anti Trump. That's why Valideo is one of the really interesting people to watch because he's one of the few who actually voted to impeach him uh and is in office and still running all right, so we'll be keeping an eye on Primary day throughout the day. Let's move on to the gun negotiations still ongoing in the Senate. The lead Republican negotiator looks like he's drawing a line here, Jack. Well, yeah, John Cornyn from Texas has kind of been deputized to be the lead Republican

negotiator on this. He's drawn a couple of different lines. He's talked quite a bit about how he wants this to focus on people with a criminal history or mental health issues that could justify taking guns away, focus on background checks. Uh. There does not seem to be the appetite to, for example, raise the age of purchases to twenty one, even on semi automatic weapons, which has a there's a bill that the House Democrats are planning to take up that would do that doesn't seem to have

much of a chains in the Senate because of that. Uh. Cornin has also said that good legislating takes some time, so there's a bit of pushback to the idea of getting a deal this week. So both process in terms of the timing and the scope of the bill. Republicans are pushing for some limits. It would be a small bill, and it does not sound like a deal is imminent right now. And finally, Jack, the House January six Committee

is getting ready for those prime time public hearings. I guess the question now is how much of a spotlight well these hearings have given, how fractured the electorate is right now? Yeah, it's it's interesting that this hearing, the public hearing is going to be Thursday at eight o'clock.

They really are going for prime time. Uh. And there is some concern among Democrats that there's a possibility that they lay out their evidence and show how significant uh this this was on January six, and show any level of organization that may have occurred. But but maybe the public is just not totally focused on that. There's so many other issues. Uh, the inflation is dominating people's concerns of a variety of crises. You've got Ukraine and Russia

and the news the baby formula shortage. Congress has been very busy doing a lot of different things, and it's hard to say, uh, necessarily that a look back to January six would capture everybody's attention, even if if there's

very compelling issues brought forth. All Right, Bloomberg government reporter Jack Fitzpatrick with us from our Bloomberg studios in Washington, d C. You can read much more about all these stories on Bloomberg dot com or on the Bloomberg terminal, and as a reminder, you can follow all the latest on Bloomberg Radio in Washington by tuning into Bloomberg one and one oh five point seven FM h D two.

Focus for markets this morning is on inflation risk and the risk of central bank tightening potentially triggering a growth slowdown, if not a recession. We've got SMP futures right now moving lower by nineteen points, now futures down a hundred thirty nine. NAZDAC futures are lower this morning by eighty points. That's a drop of six tenths percent. Deeper losses overseas. The decks in Germany's down nine tenths percent, the cap

in Paris down by three quarters of one percent. Tenure Treasury is up for thirty seconds for a yield of three point zero two percent yield on the two year

two point seven two percent. NIMEX crude is little change, down a penny a hundred eighteen dollars forty nine cents for a barrel of West Texas intermediate comes gold is higher by six tenths percent ten dollars ten cent gain at eighteen fifty three eighty announce Bloomberg Surveillance is next with Tom King, Jonathan Faroe, and Lisa Abramowitz for Karen Moscow. I'm Nathan Hagar. This is Bloomberg.