Bloomberg Daybreak: May 11, 2022 - Hour 1 (Radio)

votes today on an abortion rights bill. I'm Michael Blomer. More Ahead, I'm John stash Ouron sports, Aaron Judge, the ninth Inning Hero and a thrilling Yankee win over the Blue Jays the Mets one in Washington. That's all Train ahead on Bloomberg Daybreak on Bloomberg eleven three on New York, Bloomberg nine one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nine team and around the world. Old on Bloomberg Radio dot

Com and via the Bloomberg Business Up. Good morning. I'm Nathan Hagar, and I'm Karen Moscow, and futures are higher this morning. We're coming up to five oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg, Guess and Future is up forty four points down futures of two hundred ninety

seven and NASDAC futures up one hundred fifty five. The decks in Germany's up nine tenths of uppercent ten year treasury up fourteen thirty seconds, held two point nine three percent, They yield them a two year two point five eight percent.

Nine X Screwed oil is up three and a half percent of three dollars forty five cents at a hundred three dollars, nineteen cents of barrel comics gold up half percent or nine dollars ten cents at eighteen fifty ten announced and the euro one point oh five seven zero against the dollar. Nathan Well, Karen, the countdown is under

way for the latest reading on inflation. Less than three and a half hours from now, the government issues the consumer price index for April, with inflation running its fastest pace in decades, and Kate's has a preview from our

Bloomberg newsroom in Washington. In March, the CPI rose eight point five percent year over year, the most nineteen eighty and yet Bloomberg Economics says the run up probably slowed in April, reflecting a drop and seasonally adjusted gasoline prices, but the climb down from the forty year high inflation will be stubbornly slow. Bloomberg says the inflation rate won't dip below seven percent until late in the year, keeping

the Federal Reserve committed to higher interest rates. In Washington and Kate's Bloomberg Daybreak, all right and thank you well. That inflation report could have a major impact on Fed policy, but for now, Cleveland FED President Loretta Mester says she favors steady fifty basis point rate increases. We don't go out forever, right, I mean, what I'm gonna do is I think fifty the caves were going now seems about

right to me. We're going to have to assess weather inflation is actually moving down, and then we'll be able to get more information after we do a couple of those to see and Cleveland Fed President Lorrettamester made the comments in an interview with Bloomberg's Michael McKee. O Master is soon going to have some help in the battle against inflation. Karen. The Fed is now welcoming its first black woman to the Board of Governors. We get more

from Bloomberg's Doug Prisoner economist Lisa Cook. One Senate confirmation by the narrowest possible margin vote reflects a tie breaking appearance by Vice President Kamala Harris. The vote had been delayed by virus cases among Democrats. Cook had faced a

United Gop campaign against her. The top Republican on the Senate Banking Committee, Pat Toomey of Pennsylvania, dismissed her record as thin on monetary policy, and he charged her withholding far left political views that risk politicizing the Central Bank. In New York Time, Doug Prisoner Bloomberg day break. All right, Doug,

thank you at the White House today. New measures are coming today to help cut costs, specifically for farmers and Bloomberg's and Amy Morris explains from our newsroom in Washington. President Biden wants to undercut the rising cost of food. Ukraine has twenty million tons of grain in stories and silos right now, but trying to figure out how to get out of the country into market, which would reduce

prices around the world. Among the new initiatives double cropping insurance, which gives farmers more coverage if they plant more than one crop. The US will double its investment in domestic fertilizer production to a half billion dollars, and tools used by the USDA to reduce the use of fertilizer will be extended to more farms. In Washington, I'm anymore as Bloomberg Daybreak, All right, Amy, thank you. Let's turn to

Asia now, where inflation is also in focus. China's factory gate prices rose faster than expected in April, and factory prices aren't the only ones on the rise, as we hear from Bloomberg gave Break Asia anchor Brian Curtis, and consumer prices rose again. The CPI accelerated two point one percent, faster than a projected one point eight percent gain. The COVID lockdowns drove food and fuel costs higher. In the meantime, producer prices gained eight percent from a year earlier, compared

to eight three in March. It two was a little hotter than the estimate. Brian Curtis, Bloomberg Day Break, all right, Brian, Thank you all back here in the US. Earnings will also be in the spotlight when Disney reports this afternoon,

and we get a preview from Bloomberg's Tom Busby. Although the Entertainment Giants theme park division has been firing on all cylinders along with most of its media businesses, analysts are a little concerned that the just completed second quarter maybe the slowest of the year for subscriber growth at the Disney Plus TV streaming service. Still forecast call for a solid one hundred thirty four point four million subscribers.

Bloomberg consensus calls were just at earnings per share of a dollar eighteen revenues of just over twenty point one billion dollars. Tom Busby, Bloomberg Daybreak. All right, Tom, thanks. Let's take a look at some other stocks on the move this morning following yesterday's earnings. Shares of coin Base are down seventeen percent in early training. Revenue at the cryptocurrency exchange missed estimates, and coin Base also warned that

trading volume in the current quarter will be lower. Roadblocks shares are down almost one percent. The video game platform aimed at preteens and teenagers that surged during the pandemic, reported bookings that missed estimates well. Nathan, Twitter is also front end center after comments from Elon Musk, the world's richest man, says he would reverse former President Donald Trump's

permanent ban if he takes control of the company. Ning Trump from Twitter didn't end Trump voice, it will amplify it among the rights and that is why it is morally wrung and flat out stupid. Elon Musk says he believes Twitter has overstepped policing a user's speech and wants to push it toward a more free speech focused approach. And finally, Karen, let's fill you in on the latest on the war in Ukraine. The fighting is now starting

to affect physical gas supplies. Ukraine's gas network operator says it will stop receiving fuel at one of its main metering stations because it can't control the infrastructure in occupied territories. Meantime, in Washington, the House has passed more than forty billion dollars in emergency aid to rain. The Senate is likely to approve the legislation next week. S and P futures right now are higher by forty four points. That's again at one point one percent down. Future is up three

to two points. NASAC features up one fifty nine points for a gain of one point three percent. Straight ahead your latest local headlines in a check of sports. This is Bloomberg. That's South five oh seven on Wall Street. We've got construction closing the truck lanes of the south end of Jersey Turnpike. And you're inter Change fourteen will tell you more. In traffic First, Michael bar is here with what's going on in New York and around the world.

Good morning, Michael, Good morning Nathan. The Senate is expected to vote on protecting abortion rights due to elite Supreme Court opinion suggesting the justices would overturn Roe v. Wade. Senate Majority Leader Chuck Schumer is pushing for a vote on abortion this afternoon. The vote is almost certain to fail, but Schumer aims to put most Senators on the record about it. Senate Minority Leader Mitch McConnell the Supreme Court if this becomes the decision, as officers said, this is

ripe for discussion in democratic bodies. We happen to be a democratic body. Schumer is proving that by having his vote on it. Senator Mitch McConnell. Governor Kathy Local has announced that New York will make thirty five million dollars

available to help abortion providers boost services and security. The governor said the state has to get ready for potential influx of all the state patients if the U. S. Supreme Courts overturns a row In Connecticut, Governor Ed Lamont signed a new abortion bill into law that he says expands abortion access. When you're ready to be pregnant, whether you're ready to have that baby, we're doing everything we can to support you. That means we are providing prenatal

support and support after birth. Governor Lamont called it a fundamental freedom issue that is being challenged by the Supreme Court. An NYPD officer was released from the hospital after he was shot last night in the Claremont section of the Bronx. The suspected gunman is killed. The officer received applause from fellow officers when he left the hospital. Overnight, New York City subway writers will see more uniform police officers on

the trains overnight and for longer stretches of time. The NYPD is pushing back against a crime spike in the transit system, a big victory for Donald Trump backed candidate as the mid term season heats up. Representative Alex Mooney defeated Representative David McKinley in Tuesday's GOP primary for West

Virginia's second congressional district. Mooney spoke to his supporters in Charleston, donald Trump loves West Virginia, and West Virginia loves Donald TRUMPA one tot percent 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 barn this is Bloomberg. Nathan Okay, Michael, thanks five o nine on Wall Streets for the Bloomberg Sports Update and Morning John Sessharre give morning, Nathan Hi. Drama in the Bronx, Yankees had to come from behind twice trail the Blue Jays three uphing in the sixth in John Carlos Standard tied the game with a three run homer down the line in right field. Toronto went back ahead five to three. Yanks had two on one

out bottom of the ninth. Here's the one. She was out hill there to deep left field, that goes high. That is fun. That is gone. It's a game winning wook up three run home run by Aaron Judge. He hitted a mile and a half in the left field seats, so Judge a Judgeon bloss f an. Yanks won six five, So they go to twenty one and eight. On the

same night, the Mets improved in one and ten. They trailed six, then in Washington scored three times, beat the National sport to the Angels with their twenty one winning It was a no hitter thrown by twenty two year old rookie Read Debtors against Tampa Bay just as eleventh career started. His career e r A entering the game was over six blowout to the BA. Phoenix beat Dallas by thirty. Miami been Philadelphia by thirty five. Both teams go up three to Both series has seen the home

team win every game. NBA Hall of Famer Bob Lanier has died at seventy three and eight time All Star with the Detroit Pistons. Igor says dark and yesterday named a finalist for the Vezna Trophy that goes to the NHL's best goalie. He may very well win the award, but will he play like a Vesana winner tonight at the Garden. Just played three periods in Pittsburgh and gave up ten goals. Just darking in the Rangers face elimination, trailing the Penguins three to one. Game five wins last

night for Carolina, Toronto, St. Louis, and Los Angeles. John Stashower, Bloomberg Sports, Nathan John stas Shower, thanks for that. SMP futures right now are higher by forty six points, a gain of one point two percent. Death futures up one percent or three to sixteen points. Nasdaq futures leading the gains this morning, up a hundred seventy three points for

a gain of one point four percent. Ten. Your treasury is up fifteen thirty seconds, the yield two point nine three percent as we await April cp I stay with us. You're listening to Bloomberg Day right Bloomer eleven three oh other sunny, upper sixties today, sunny with a high year seventy tomorrow. Chance for showers on Friday with a high year seventy degrees. Right now, clear sky fifty five degrees

in Central Park. Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out, and at Bloomberg Quick Tape. He's a Bloomberg Business Flash, but I'm kerin Moscow. US Knock index futures and European shares are advancing as investors away to key inflation or port to gauge whether the federal reserves efforts detainment inflation in the world's largest economy are working. We checked the

markets every fifteen minutes throughout the trading day. On Bloomberg Guess and P futures up forty three points and Down futures up two d eighty eight and Nashdack futures up one fifty three. The decks in Germany's up one percent, the ten year treasury up seventeen thirty seconds yield two point nine two percent, the yield on the two year

two point five six percent. Nimex screwed oil is up three percent of two dollars ninety nine cents at a hundred two dollars seventy eight cents of barrel comics gold up six tents percent or ten dollars forty cents at eighteen fifty one fifty announced. The euro one point oh five six eight against the dollar, British pound one point to three HQ, the n is at one twenty nine point six five, and Bitcoin this morning higher up a third of a percent at thirty one thousand, one hundred dollars.

And again today we're watching for the Consumer Price Index at at eight thirty Wall Street Time and Disney as among companies scheduled to report earnings today. As 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. In a rare bipartisan moment, the House has passed a nearly forty billion dollar military and you manage during an

aid package for Ukraine. The money will go to everything from weapons to refugee aide to money that will help rebuild Ukraine. Senate majority leader Chuck Schumer plans to hold a vote on a bill that would write abortion protections into federal law. There will likely not be enough support to move that legislation forward. In baseball, the Yankees, Red Sox, Orioles and Giants one. The Mets beat the Nationals four to the a split a double header with the Tigers Angels.

Rookie read Detmar's pitched the major's second no hitter this season. In the NHL Playoffs, the Bruins lost to the Hurricanes five one. Boston is now behind in that series three games to two. 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 alright, Michael. Thanks, It's five nineteen on Wall Street Live from the Bloomberg

Interactive Broker Studios. This is Bloomberg Daybreak and Mark Ostwald is with us this morning, chief economist and global strategist at a d M I s I in London. As we await the April CPI data, we are watching markets on the rise this morning, Mark, what do you think is driving the sentiment this morning? I think that this is really just what looks for me like a corrective rally after and fairly sharp sell offs that we've had. There are are you when we get into these situations

with sharp sell offs, there are always bargains to be had. Um, it doesn't necessarily mean that the worst is over for Wall Street. I sort of think um, particularly on the growth side of the economy, which is probably more important to some extent than either the FED or the inflation outlook. We're probably still looking at the US economy with slightly

roast tinted glasses, as is the FED. Yes, the labor market is very, very tight, but with the sort of pressures that are there, and a lot of them not likely to resolve themselves in any great hurry, particularly all

the price pressures that people have got. You we only have to look at the corporate earning season to see how many people are talking about price pressures and and now starting to mention um demand demands at weakness, and that really doesn't start surprise me, and that I think in the longer run will be key for US equities. Of course, in the short run, in the next few hours, we are going to get that CPI data for the month of April. Are we looking for signs of peak inflation?

Is that your view? Um? Well, to a certain extent, we've got base effects in here now, which should basically suggest that we've reached the peak. I think the more important thing is not necessarily whether we've reached the peak, but how fast are we going to fall. We were predicted to fall quite rapidly in the second half of the year. I rather think that headline CPI may not get much below seven percent by the end of the year. And as long as that's the case, we can talk

about inflation. That the pace of inflation growth as slowing, but it doesn't take the pressure, it doesn't take the pressure off the FED to basically tighten policy and tighten policy quite quickly. M Hey, you know, it's a it's a delicate balance here. But the biggest problem of all is the loss of productive capacity, which we've not really

got round to enumerating. The only area which we can get a clear side of it is in the US well in the global oil refining sector, where we can see that huge amounts of productive capacity have been lost and that keeps on the pressure on oil products, and oil products are basically what they're driving inflation, along with other parts of the energy sector, most noticeably natural gas. Do those kinds of pressures put more pressure on the

FED to move even more aggressively on rates? Could we be looking at a seventy five basis point move somewhere down the line? Um? I don't think, I said well, I think the more important point. You know, they've not taken it off the table completely, but I think they will be very low to do that unless they see some very sharp second round effects coming through, particularly in wages, UM and in services. That's not ruled out, but it would it take that that would be an absolute requirement.

The more important point is what can the FED do do about oil and energy prices? And the answer is just the same as all other central banks. They can do actually precious little. And this is sort of you know, weak coordinated fiscal and legislative and monetary policy wells during the pandemic, but we're now sort of seeming to everyone's

going off in different directions. And it's probably needed now more than during the pandemic, because there's a lot here which really would be better dealt with by better spending on infrastructure, fiscal measures, through support the weakest parts, weaker parts of the economy, be that at the corporate or personal level UM, and that needs to be a lot better coordination on that front. Now, those are some long term possibilities that we could talk about for much longer,

but unfortunately we've run out of time here. But thanks so much for these insights this morning, Mark Ostwald, chief economist and global strategist at a d m I s I. As we await those April CPI numbers do out at eight thirty am Wall Street time, we'll have them for you live here on Bloomberg Radio, along with the kind of analysis you have come to expect from Bloomberg Radio.

Right now, SMP futures are higher by forty two point Staff futures up two d seventy eight, Nasdaq futures up one hundred fifty four points ahead of the inflation data. Tenure Treasury is up sixteen thirty seconds now with the yield two point nine and the yield on the two year two point five seven percent. Looking at nim X crude, it's higher by two point nine percent of two dollars eighty seven cents at a hundred two dollars sixty three

cents for a barrel of West Texas Intermediate. This is Bloomberg. Bloomberg Daybreak has 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 bequest to the New York Community Trust.

Learn more at Philanthropist dot n YC 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 nine six to the Country, Sirius XM Chile one nine team, and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hager and I'm Cameron Moscower.

Just about four hours away from the open of US trading. Let's get you have to date in the news you need to know at this hour the this morning, we at the latest reading on inflation. The April Consumer Price Index will be released at eight thirty Wall Street time. Nathan Sheets, chief, a global economists with City, says high commodity prices and supply chain pressures could lead to more persistent inflation. Looking under the hood is going to be critical.

We're expecting a zero point four percent month to month read for core, somewhat lower for headline, but when I look at underlying components, I just have a hard time being too optimistic about the inflation outlook. That City Group chief Global economist Nathan Sheets, and he expects inflation to gradually decline this year, even if it hasn't peaked yet. Well. The April CPI will likely affect how the Fed titans monetary policy Karen Cleveland FED President Loretta Mester says the

path to two percent inflation will be painful. The unemployer may have to rise, we make it another quarter of or two of negative growth, but that's has to happen in order to get inflation down. So we are tightening financial conditions and we've got to continue doing that until we see inflation moving back down. Cleveland FED President Loretta Master tells Bloomberg's Michael mckeesh would not rule out a

hike of seventy five basis points this year. In Asia, inflation also in focus, Nathan China's factory gave prices rising faster than expected in April and CPI exceeded projections. COVID lockdowns are blamed for higher food and fuel prices. So watching earning season, Karen Disney is going to report this afternoon, and Bloomberg Intelligence expects streaming subscriber growth will slow, but it also expects strong performance from domestic parks. Molly now

turned to Twitter and Elon Musk. Nathan, speaking at a conference yesterday, the world's richest man, said he would reverse former President Donald Trump's permanent ban if he takes control of the company. Musk also says he is not sure Trump would even return to the platform. He has publicly stated that he will not be coming back to Twitter um and that he will leave you on true social Elon Musk called Trump's van morally wrong and flat out stupid.

Turning to the war in Ukraine, Karen Russia and Ukraine are clashing over natural gas that's raising a threat to europe supply. Russian gas flowing into Europe for one of two key entry points was stopped as occupying forces disrupted operations. It's the first time since the invasion that gas transitting

through Ukraine into Europe has been disrupted. S and P future is higher, up forty three points this morning, down futures of two D eighty four NASDAG futures have one hundred fifty seven straight and hand your latest local headlines plus a check of sports and this is Bloomberg thanks. Karen from Wall Street. Fifty five degrees in Central Park. Got an accident in Rockland County. It's northbound A nine

W at Lakewood Drive. More coming up in traffic. First Michael bar with more on what's going on in New York and around the world. Michael, thank you very much. Nathan. The Senate is expected to vote today on a bill that would codify abortion rights into federal law. Bloomberg's At Baxter has the story. Passage is a long shot, but sent up. Majority Leader Chuck Schumer says he wants every

Senator on the record for all to see. Senate Minority Leader Mitch McConnell says, actually, that's exactly what the leak Supreme Court opinion suggested a vote. But historically there have been abortion votes on the floor of the Senate, none of them have achieved six vote. McConnell says, go ahead, take the vote. Schumer says, if by some chance Republicans take control of the Congress, it could mean a total federal ban. On the table in San Francisco, I'm at

Baxter Bloomberg Daybreak. New York Governor Kathy Hokel has announced that the state will make thirty five million dollars available to help abortion providers boost services and security. In Connecticut, Governor Ned Lamont signed a new abortion bill into law that he says expands abortion access. Everybody talking about freedom. This is a fundamental freedom issue that is being challenged

by the Supreme Court. Fundamental. Governor Lamont also says the state is providing pre Na will support and support afterbirth. Look for more police officers in New York City subways overnight and for longer stretches of time. In a new strategy on fighting crime in my p D, Transit chief Jason Wilcox says, we need to be where the crime is and where people can see us. Representative Alex Mooney, endorsed by Donald Trump, won over fellow Representative David McKinley

in a reapportionment forced Republican primary. It is now poised to represent West Virginia Second District in the next Congress. Meanwhile, Republican voters in Nebraska picked Jim Pilling as their nominee for governor the University of Nebraska. Regent was backed by the state's outgoing governor. Pilling beat eight rivals, including Charles Herbster, who was supported by a former President Trump and accused

of groping multiple women. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists analysts more than a hundred twenty countries. Michael barn this is Bloomberg. Thank you, Michael ball Street. Time for the Bloomberg Sports Something with John stash Ower. Hey, if you're the Yankees cape winning. They made it fourteen in the last sixteen, even when trailing by two runs

and down to their last two outs. Aaron Judge with a game winning w walk off three run homer bottom of the ninth and a thrilling six five win over the Blue Jays at the Stadium. John Carlos Stanton had hit a three run shot in the sixth inning. The Yanks are a Major league best twenty one and eight. They've got a twelve thirty start with the Blue Jays today. The Mets are a National League best one and ten. They trailed in Washington rally to win four two behind

Carlos Carrasco. The Mets may have needed five pitchers for their no hitter, and Angels rookie that did it all by himself. It's chapter short. This should do it to throw the first. It's a no hitter. It's a no hitter. Three Geppers in just eleven major league start gets a new hitter. That's the first Angels history lay they called twelve. Nothing went over Tampa Bay Deckers is twenty two. He's the youngest to throw a no hitters in two thousand six.

Home cooking continuous in the NBA playoffs two series where the home teams won every game in the game fives were blowouts. Phoenix beat Dallas by thirty Miami met Philadelphia by thirty five. Both go up three to four game fives. In the NHL, Carolina beat Boston, the home teams won every game there. Toronto on a late Austin Matthews goal rally past Tampa Bay St. Louis with three in the third to win in Minnesota, and l a one in overtime at Edmonton. All four winning teams now have free

two leagues. The Penguins lead the Rangers three one, game five tonight at the Garden. Does the Ranger season end? Where can they at least force the game six back in Pittsburgh? John stash Award, Bloomberg Sports, Nathan Plot seconds. Thank you, John. Five thirty seven on Wall Street. Time for the tri State Business Report. Here's Bloomberg's head Cory.

The Partnership for New York City says some seventy eight percent of businesses were adopting a hybrid workplace model on the eight percent of Manhattan office workers are back in the office five days a week, twenty eight percent are still fully remote, according to a survey of more than one hundred sixty major employers in New York, Connecticut is the fifth U S state with comprehensive consumer privacy legislation, and the second so far this year after Utah to

enact such a measure. The Connecticut law requires companies to limit the collection of personal data to that which is adequate, relevant, and reasonably necessary. Circumstances have improved for a lot of nonprofits in New Jersey, they say. Overall, conditions are more positive compared to the same time a year ago, according to the New Jersey Center for Nonprofits. Some though, are wrestling with funding gaps, the impact of COVID and racial inequities.

That your Bloomberg Trying State Business Report. I'm in Corey, alright, thank you. It's five 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 Jeff Bullinger and on w tv N in Columbus. I'm reporting that Ohio was among the states for the highest

home foreclosure rates last month. I'm Caroline Head going Bloombay d a B Digital Radio in London. We're reporting on the risk to European gas supplies as Ukraine's grid operators says flows to a key Ukrainian pipeline face disue option. On bernits Anahuan Carol Dan Dallas Airport summer traffic may hit a record three million flyers day. I'm in Corey on w W James Detroit. I'm talking about Toyota forecasting

a lower operating profit outlook for the year. And those are some of the stories our twenty 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. Learning the right lessons from the pandemic is essential, but jumping to the wrong conclusions will only add to its costs. In trade policy, this

is no hypothetical danger. It's happening. Even before COVID nineteen struck port for liberal trade was faltering in many countries. Two years of virus related disruptions have further highlighted the risks of relying on extended supply chains. Now some suggest the world has entered a post globalization era. This kind of thinking threatened slower growth, lowers real incomes, and diminishes prospects for every kind of international cooperation. The risks and

downsides of trade aren't imaginary. Policies are needed to mitigate them, and governments have too often neglected this task. But it would be hard to exaggerate how misguided it would be to turn trade against itself. Globalization still works, and the world needs it more than ever. This editorial was written by the Bloomberg Opinion Editorial Board. I'm David Chipley. For more Bloomberg opinion, please go to Bloomberg dot com, slash

opinion or opi and go on the Bloomberg terminal. This has been Bloomberg opinion, and you can hear Bloomberg opinion editorials every weekday. At this time, terminal customers can read more at alp I and go looking ahead to the April CPI futures are moving higher. We have SMP futures right now up forty two points. Staff futures up two seventy four. Nastac Future is leading the way this morning with a hundred fifty nine point game that has a rise of one point ten. Your treasury is up fifteen

thirty seconds, the yield two point nine three. This is Bloomberg Bloomberg eleven three oh other sunny upper sixties today, mostly sunny tomorrow with a high near seventy. By Friday will turn most of the cloudy with a chance for showers in a high still near seventy degrees, currently fifty five in Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg Quicktape. This is a Bloomberg

Business Flash and I'm Cameron Moscow. US index futures are on the rise, along with European shares. Investors awaiting a key inflation report to get whether the Federal Reserve's efforts detain inflation and the world's largest economy are working. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg SMP Future is at forty three points this morning, down Future is up two hundred eighty three, NASTAG futures

up one hundred sixty three. The decks in Germany's of one percent and your treasury of fourteen thirty seconds held two point nine three percent yield on a two year two point five nine percent NIMEX screwed oil is a two point eight percent of two dollars eighty two cents and a hundred two dollars fifty eight cents of Barrel Comics called up half percent or nine dollars fifty cents

and eighteen fifty fifty announced. The Euro one point five nine against the dollar, British found one point to three six nine, the En one twenty nine point eight one, and bitcoy this morning higher up one point nine percent at thirty one thousand, five hundred fifty dollars. That's of Bloomberg Business Flash. Now here's Michael bar with more on what's going on around the world. Michael, thank you very much.

Karen It was a split primary decision yesterday for former President Trump supported candidates in West Virginia, represent Alex Mooney, endorsed by Trump, one over fellow Representative David McKinley. In a reapportionment forced Republican primary. Republican voters in Nebraska picked Jim Pillen as their nominee for governor. He beat eight rivals, including Trump supported Charles Herbster, who was accused of groping

multiple women. In baseball. The Yankees, Red Sox, Orioles, and Giants one the Mets to be the Nationals for to the A split a double header with the Tigers. Angels, Rookie Read Dettmar's pitched the major's second no hitter this season. In the NHL Playoffs, the Bruined lost to the Hurricanes that are now behind in the series three games to two.

Global News twenty four hours a day on a or end on Bloomberg Quicktake, powered by more than twenty seven d journalists and analysts more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan, Okay, Michael. Thanks, It's five forty nine on Wall Street Live from the Bloomberg intract and broker studios. This is Bloomberg Daybreak as we relate the April Consumer Price Index, now due out in just a little more than two and a half

hours time. We're joining it now by Jennifer Lee, senior economist at Demo Capital Markets. Jennifer, it's always great to speak with you. Looking at the ECO screen on the Bloomberg terminal, economists are calling for eight point one percent year over year, but that's lower than the prior month. Have we reached peak inflation in your view? UM? Good morning. UM. Let's hope we are at peak inflation. UM, but I don't think we're quite there yet. These are most basically

more technical improvements. I think, you know, we're looking for, Um, you know, the past number of months have seen some sizeable month to month increases, so we're looking for like a more modest point three point increase in the headline this morning, but just due to you know, um, a drop in car prices in April a lot less than what we saw in March as an example. But this is just this is will be just the beginning, and

you know, it's like fed share. Powill said during his press conference last week that he'll need a lot more evidence to see that inflation has either peaked or button vote, um Cleveland said semester. I think she was on the wires yesterday also saying that she needs to see some

quote compelling moves unquote before she considers, you know, taking arrest. Yeah, and she was speaking with us yesterday on Bloomberg Radio and television saying that she wouldn't take a seventy five basis point rate hike off the table sometime this year. Is that what it's going to take, something like an even more aggressive move from the FED to rein in these price pressures. Just looking at what's happening now, I think they might have to. Um, it's not our it's

not our base case. I mean we've got you know, I mean FED youre Powell basically said, and most of the other FLMC members have also said that it makes sense that to fifty basis point rate hikes over the next two meetings. UM would would hopefully, you know, do something to to curb inflation. But just the way it's going right now with JG girls still very very strong, UM, it's it's very I think we cannot write off the possibility that a seventy five basis point rate hike might

be needed. Just looking into it feeds a cp I. What do you see as causing the sharpest price pressures that we could see in the headline number. It's still going to be cars and energy, but food is also ranking up there as well, and that's the sort of you know, the scary part of all of this is that it's not just one component. It's not you can't just strip out the food and energy and say, well,

at least cores is rising moderately. It's it's it's almost everything, clothing, medical care, recreational stuff, um, all sorts of things that are causing the entire spectrum I think of prices to to rise, and that's what we've got corse c t I s also you know heading up there, you know, joined the headline at the highest level in decades. And this is what causes this is what makes defends job

even more challenging. And you can't just knock one peg down and and everything will fall will fall along with it. It has to be broad based hits too. I think to inflation to get inflation towards back down towards two percent. So are you seeing as in an inflation spiral right now, and what's behind it. I don't want to see spiral because he you know, the FED chair also said that you know, he's he hasn't seen a way to price

spiral yet. Um So this week, I think it's yesterday that the dock workers at the Western Ports they started their talks. That's going to be very interesting to see how how that pans out, because you know, obviously deal more they want to unspend new contract with with higher wages and that's something that is going to also feed into higher um, higher inflation as well. So but right

now we haven't seen it completely. But you know, obviously everyone has just given the plant labor market a lot of the the the the the employees are asking for more um and at least the companies can't afford to give it to to parson out. But you know it's also going to come out in a different forms like can benefits as well more vacations. UM So, I don't think right now we are going to see we are seeing a price spiral, but again it's something that wouldn't

completely rule out. But this is why the FED has to act more aggressively now rather than later would get those numbers coming out. Eight thirty am. Wall Street Time. Jennifer Leeves, Senior Economists BEMO Capital Market's good to get your insights ahead of the release of that data. Thank you, Karen ry Nathan. Thank you three on Wall Street Time

for the Bloomberg Law rapport. Unlet's get to the legal stories we are watching this morning from Bloomberg's Jeff Bellinger, Connecticut became the fifth state with a comprehensive consumer privacy law. Governor Ned Lamont signed the measure that gives consumers the right to ask that their personal data and not be sold and that it be deleted. The Biden administration is considering its next steps after federal judge in Montana pause development on oil and gas leases in Wyoming and Nevada.

A Texas Court of Appeals ruled the Pasadena Refinery System must face a lawsuit brought by a contractor's employee who was injured in a fall at a Pasadena facility. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg Market Intelligence. Find up more at Bloomberg Law dot com. All right, Jeff, thank you.

Now another legal story we're watching. A former Nomura Holding senior bond trader was found not liable for defrauding the bank's clients by lying to them about the prices of commercial mortgage backed securities. James Emily, led the firm CMBs desk for five years. Was accused by the Securities and Exchange Commission of Securities fraud in aiding and abetting securities fraud. The jury verdict is another blow to the government's attempts

to reign in questionable practices by bond traders. For more, Bloomberg's doing grossos FISA. James Park, a professor at u c l A Law School, he took the stand in his own defense and he admitted to lyne to clients, but he said that everyone did it. It is remarkable

that he did not deny that he was lying. And the thing that's interesting about the case and the result here is that even if you lie about a securities transaction doesn't necessarily mean you violated the security these laws, there's a requirement that the lie has to be about a material matter, something that's important to the investors decision

making process. And I believe his argument was that because of the industry practice the investors who bought the bond from him would have known not to believe him, and therefore those statements were not material and could not constitute securities frauds. And the defense was successful. Number agreed to repay customers million dollars to resolve claims that it failed to supervise traders. It seems striking that the government in these cases has basically been unable to get convictions or

convictions that stick true. I think that the defense might say a corporation like Nomura has incentive to settle cases with the SEC, which is regulating it in a out of different areas, whereas individuals have more of an incentive to fight charges. And you know, there have been some losses, but there have also been a few wins to a lot of individuals have also pre bargained or settled cases by and large, And you know, I think um B SEC should take cases to trial when it has to.

Um One of the criticisms of the SEC is that it just settles cases, whether the defendants do not admit or deny wrongdoing, and they just pay a penalty. And I think that there should be cases where you go to court and go in front of a jury, you might have to defend a decision in front of it appellate court. And you know when a court weighs in on a legal theory that provides valuable clarity to the sec and the industry as to what the law is.

And as James Park, a professor at u c l A Law Schools, being at Bloomberg's June grow So catch more in that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or downloading the show at Bloomberg dot com slash podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b

law Go. Futures this morning are on the rise SNP Future is up forty three points down Future is up two six nasdack futures have one hundred sixty six the ten year treasury of fourteen thirty seconds yield two point nine three percent. They yield on the two year two

point five eight percent. And I make screwed oil is a three and a third percent of three dollars thirty four cents at a hundred three dollars ten cents of barrel still ahead on Bloomberg day Break and check on the business headlines and all the news you need to start your day. This is Bloomberg.