Bloomberg Daybreak: May 12, 2022 - Hour 1 (Radio)

Plus reactions to the US send its vote to block abortion rights like along more ahead, I'm John Stashow. In sports, the Rangers survived. They beat the Penguins to force the game six in Pittsburgh. The Mets lost another win for

the Yankees. That's all trained 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 Oppy. Good morning. I'm Nathan Hagar and I'm Karen Moscow, and we're watching US dock index

futures fall this morning extending yesterday is sell off. We're coming up to five oh one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP Future is down about twenty five points down. Future is down a hundred forties six, and NASTAG futures down a hundred thirty three. The decks in Germany's down

two point two percent. The tenure treasury of thirty seconds yield two point eight three percent, and they yield on the two year two point five seven percent, and NIMEX screwed oil is down about two and a half percent. Nathan, Yeah, we're going to continue watching this inflation fueled sell off. Karen. It's got US stocks beginning this session at their lowest

level since March of last year. The hotter than expected print we got on consumer prices yesterday is sparking fears that the Federal Reserve may have to unleash even further tightening and that it tipped the economy into recession. Michael Darta is chief economist and macro strategist at MKM Partners.

That's still a major problem for this bond market a major problem for this Federal reserve, and as we're seeing a major problem for the valuations that support the S and P five M CAM Partners Michael Darda says the Fed missed the boat on inflation. The tech having NASDAC humbled more than three percent yesterday. It's now lost more than a quarter of its value so far this year.

Austin Graph is a portfolio manager at Truemark Investments. You're seeing a continuation of kind of what we've seen throughout the entire year so far, where you're seeing some of the high fliers the last few years and the growth names training off Truemark Investments. Austin Graph notes Apple is down about twenty percent from its recent high. In fact, the iPhone maker has now been surpassed by Saudio Ramco

as the world's most valuable company. Well, Nathan, yesterday sell off is spreading overseas and we begin our Globe bull team coverage now with the Bloomberg's You and part Live in London. Good morning You, and good morning Karen and Nathan. Plenty of read on traders bloom blow screens this morning. Europe Investors taking fright at that stubborn US inflation. The Stoftie hundred down two point one. Mining stocks the worst performing sector, down more than four percent, but real estate

and carmakers also near the bottom of the table. All twenty industry groups lower this morning. As to the markets, the foot Sea here in London one of the worst performing, down two point three percent. Live in London, I'm you and parts in Big Daybreak, May you and thanks. We saw the same selling pressure overnight in Asia. Let's continue our team coverage now. Bloomberg's Juliette Sally joins us from Singapore.

Good morning, juliet, Good morning, Nathan and Karen. The m c I Asia Pacific Index fell to June twenty twenty lows is new COVID cases in Shanghai damp and prospects for reopening. Investors also appearing to be unimpressed by Premier Leese comments urging officials to use fiscal and monetary policies to stabilize employment and the economy. Hong Kong shares came under pressure as the city and defened dip end its currency for the first time since twenty nine. In Singapore.

Juliette Sale bloom Bag Daybreak Delianne, Thank you, But we're also seeing cryptocurrencies continue their sell off. This morning, we get the latest on that line from Bloomberg's Randa Young in New York and morning Ranida, Good morning Karen. Bitcoin is trading at its lowest level since twenty twenty. At one point this morning, it touched just over twenty five thousand, and right now it's trading at close to twenty eight thousand.

It's been falling in conjunction with the regular market, but the collapse of the terra usd stable coin is triggering a flight from many of the large digital tokens, and backers of the coin are trying to raise about one point five billion dollars to shore up the token. Stable Coins are key elements of the crypto market. There were traders park funds as they move them in and out of other tokens. The total value of all stable coins is beyond one hundred billion dollars. Live in New York.

I'm Nita Young, Bloomberg Day break. All right, Nita, thank you. Let's turn to corporate earnings on Wall Street. Now, that's what's driving shares of Disney lower down about five percent in early trading. The company reported subscriber gains for its flagship streaming service. Those beat estimates, but Disney's also tempering its outlook for the year. We get the details on that from Bloomberg's Charlie Palace. Disney said it will trim

spending on movies and TV shows. On the conference call, CEO Bob Japeck said Disney is lowering its projection for overall film and TV spending by one billion dollars to thirty two billion this year. Disney did report battled and expected growth in its flagship Disney Plus streaming service, while saying half of Disney Plus subscribers are adults without kids in New York. Charlie Palace to Bloomberg day break. All right, Charlie,

thank you well. On the economic front, today, we'll get another key reading on inflation the producer price and next comes out of eight thirty am Wall Street Time, and we get a preview from Bloombery Smuchael McKee. Inflation isn't going away soon, but it may ease a bit. Producer prices are forecast US to have increased more slowly in April, following a stronger than expected gain the previous month, while food prices continued to accelerate. Oil prices retreated in April.

Supply chain snarls could worsen amid China's COVID lockdowns, suggesting wholesale inflation will be slow to recede. Coming after a firm April CPI, the p p I is unlikely to add much to market thinking about inflation or the Fed's plans for raising rates. Michael McKee, Bloomberg Daybreak. All right, Mike, thanks, As the Fed fights inflation, it's adding another member to its ranks. The Senate has confirmed a third nominee of

President Bidence to the FED Board. Makers confirmed economist Philip Jefferson as FED governor yesterday Today, Senate Democrats expect to vote on Jerome Powell's bid for a second term as Federal Reserve chair. And in the markets this morning, Nathan, we're seeing the impact of the recent bonds sell off. Pimco saw clients pull more than fourteen billion dollars from its funds last quarter as investors fled fixed income securities amid rising interest rates. Now the sell off an Equis

continues this morning. Karen with SMP futures down down twenty eight points. Stown futures down a hundred seventy six. NASDAC futures are lower by a hundred thirty seven points. The tenure Treasury is up twenty three thirty seconds. Yield on the tenure two point eight to straight ahead local headlines in the check of Sports. This is Bloomberg and it's now five oh seven on Wall Street. Where's sixty degrees in Central Park? So far, so good on the roads.

I hope I'm not jinxing at. Michael Bars here with more on what's going on in New York and around the world. Michael, good morning, Good morning, Nathan. New Jersey Governor Phil Murphy says he's backing legislation to protect and expand abortion access in the state. Murphy says that includes a requirement that insurers cover costs of the procedure. Abortion is healthcare, and healthcare decisions should be left up to

the individual. Your body belongs to you. Governor Murphy says no one should be criminalized for getting the care they needed. It is the latest step taken by Democrats after elite opinion indicated the U. S. Supreme Court will owerturn the landmark gro v Way decision. The Democratic leadership in the US Senate has failed and its attempt to codify abortion rights in the law. Bloomberg said Baxter as the story, the vote to move the bill to the floor needed

sixty eyes, it got forty nine. Vice President Kamala Harris immediately made it a campaign issue. And let's be clear, at the majority of the American people believe in defending a woman's right, her choice to decide what happens to her own body. The Senate Minority leader, Mitch McConnell, though, says he doesn't understand the uproar. Democrats were melting down because of the the Supreme Court may may uphold of Mississippi

law of a limit abortion after fifteen weeks. The final Supreme Court opinion and ruling is due most probably in June in San Francisco. I'm at Baxter Bloomberg Gay Break. Finnish leaders have announced Finland must join NATO without delay given Russia's invasion in Ukraine. Burring Sweden is expected to decide on joining NATO in the coming days. New York City may Or may Eric Adams and the NYPD are demanding the federal government revoked the business license of a

prominent gun manufacturer. They blame for the increase of ghost guns in the city. Adams says the company Polymer eighty sells untraceable, ready to assemble gun parts online. It comes as crime is on the rise in New York. Former New York Congressman Joe Crowley says the economic impact of the pandemic is partly to blame. I think this is all related in many respects to what's happened in terms of coming out of this virus, the you know, the COVID by TV, the impact that has had on the

overall economy. Former Democratic Congressman Joe Crowley spoke on Bloomberg's balance of power with David weston Global News twenty four hours a day on air and on Bloomberg Quittake, powered by more than twenty seven hundred journalist antalists more than twenty countries. I'm Michael Barr. This is Bloomberg NA. Thanks Michael. Come up to five cent on Wall Street. Time for the Bloomberg Sports Update. Good morning, John Stesship, Good morning Nathan.

The Rangers, had they lost last night, would have been playing golf today. Instead, they're traveling back to Pittsburgh for

Game six tomorrow at the Garden. They trailed the Penguins to nothing, and then came alive through the house and up the right point steps Potter over again, Troup back a shutting Stars three two Rangers and three Ranger goals in two minutes forty two seconds, But thirteen seconds after the Rangers took the lead, the Penguins tied it on Jake Gensel's second goal the night seventh of the series,

so Game five was tied. Called the Pluck down comes the Heatler shoot stores pilla Headle gives the rate Ers the lead with a power play goal early at period three fifteen. At the end, the Rangers won five three, but can they went in Pittsburgh where they just lost seven four and seven to Will. The Penguins have Sydney Crosby. He left last night with an injury. Florida beat Washington, Calgary beat Dallas, both go up three two. NBA Milwaukee came from fourteen down in the fourth quarter to win

Game five in Boston. Memphis beat Golden State by thirty nine. Bucks and Warriors have the three two series lead at the stadium. Another win for the sizzling hot Yankees. They made a fifteen of the last seventeen beat Toronto five three labor Torres drove in all five MAT's at a three nothing first. Didn't lead in Washington Peter Alonzo Homer, but the Nationals with five in the bottom of the first and three more in the second eight runs off.

Tyler McGill only got four outs the Nationals wanted eight. The three Johns Dash Bloomberg Sports NA Thanks john SMP futures down down twenty nine points, South Futures down a hundred eighty five. Nance Deck futures down a hundred forty three points. Bitcoin lower by three point two percent right now about twenty seven thousand, five hundred dollars as the sell off continues on renewed worries over inflation. We speak next with Drew Maddis, Chief Market Strategistic MetLife. This is

Bloomberg Bloomberg eleven three oh weather. Partial sunshine today with highs in the low seventies. Scattered showers possible tomorrow with the high near seventy, and showers continue for Saturday with highs in the low seventies. Right now sixty one degrees. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com. The Bloomberg business out and at Bloomberg quick takes a Bloomberg business blash and I'm Karen Moscow

Global stocks and you watch. Stock Index futures are tumbling as stubborn inflation in the world's biggest economy adds to the case for more aggressive monetary tightening by the Federal Reserve. This is after the SMP five hundred dropped yesterday to its lowest since March of last year. We checked the markets every fifteen minutes throughout the trading day on Bloomberg SP futures down twenty nine points down, futures down a hundred eighty three NASDAG futures down one two The decks

in Germany's down two and a half percent. Ten year treasury of twenty thirty seconds yeld two point eight four percent. They yield them a two year two point five seven percent. Nine max screwed oil is down two point one is down two point one percent on two dollars twenty three cents at a hundred three dollars fifty cents of Barrel Comics school down a quarter percent or five dollars at eighteen forty eight. Seventy announced the euro one point oh

four four one against the dollar. British found one point to one and the end at one twenty eight point seven one. Bitcoin this morning falling down two point nine percent at twenty seven thousand and five hundred eighty dollars. And today we're looking for our appard on inflation at the whole sale level at eight thirty Wall Street Time, along with the weekly report on initial jobless claims as a Bloomberg Business Flash. Now here's Michael Barr with more

on les's going on around the world. Uncle, good morning, Good morning, Karen. Ukraine's military says Russian forces are continuing air strikes on the steel plant in Meryouple. It comes in day seventy aid of the ward. Finland's president and prime ministers say they're in favor of applying for NATO membership. Neighboring Sweden is expected to decide on joining NATO in coming days. In the NHL Playoffs, the Rangers stay alive

after beating the Penguins in Game five. The Capital is lost to the Pantherst fall behind in that series three games to two. NBA Playoffs, the Celtics lost to the Bucks and are now on the brink of elimination. The Warriors lost to the Grizzlies. Golden State still leads that series three to two. In baseball, the Yankees one, the Mets lost to the Nationals, Red Sox and Orioles lost. Giants and as one. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by

more than hundred journalists analysts more than a hundred twenty countries. Hi, Michael bar this is Bloomberg Ni. Michael, thank you. It's five nineteen on Wall Street Live from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak as we continue to watch the selling on inflation worries. Drew Maddis joins US now chief market strategist at MetLife in Estment Management. Drew,

it's good to speak with you this morning. It sounds kind of silly to ask whether this UH sell off has further to run, because it seems like market participants are heading for the hills here. But I wonder if you're looking at any particular indicators to try to gauge whether there could be a bottom to this sell off. Well, I think it's it's interesting how you describe what's going on, because I see it as a sell off because people are afraid the Fed's going to try to handle inflation

like they did in the nineteen seventies. When you when you actually see what's happening with things like forward inflation measures, uh, it's it's pretty clear that the market thinks the Fed can handle inflation. They're just worried that they're going to um. And that's not to say that the FED shouldn't try to contain inflation, but given that inflation and supply chain driven, uh, you know, maybe trying to get it back down to two percent or or even substantially below where it currently

is might not be the appropriate policy. So if you say that inflation is supply chain driven, does that imply that the Fed might not feel as much pressure as the market is putting out there for something like a seventy five basis point rate hike sooner than has been telegraphed. I think that's right. I think I think one of the one of the misconceptions is that, you know, Pal has been very hawkish. At the last meeting, he had

the chance to go seventy five. It wasn't fully priced in, but there were there were some people expecting it, and it would have been less of a surprise. Uh. And he had the chance to start quantitative tightening, you know, the next day. Uh, and instead he decided to they decided to push that off a month. So, you know, I think what's really going on is the FED understands part of the inflation problem is not one that can

be solved. It's the supply chain side of it. Uh. There is some of it that's excess demand, and they get they're certainly acting on that. But I think the market thinks that the FED sees everything is nextcess demand story. Um, And I actually think they're misreading the Fed. I think palsmen very maybe a little too clever at kind of Um. You know what the FED is capable of, and what the FED isn't capable of, and what they're going to

try to achieve. So do you think that the that the narrative in the market could shift based on what we get from consumer prices later I'm sorry, from producer prices later this morning? It could? You know, the CPI data yesterday was not helpful to to the idea that the FED. That you know is that it could be doing the right thing if if we're reading them correctly, um. But at the same point we did see inflation begin

to peek. It's still running very high. But in my mind, what the FED is really targeting is their two percent target plus whatever percentage of inflation they think is due to supply chains, i e. The stuff that they can't control. And so in my mind, you know, when you're thinking about where the FED will stop, uh, you know, they'll stop once they control the inflation that they think they can control, and they'll hope that supply chains work themselves

out over time. So what's your outlook then for whether we could be in for a recession later this year or next year? And where do you see inflation going by the end of this year based on what happens with supply chains? Doesn't make it tougher to sort of gauge where things go based on supply chain factors. It does, and I think that's the reason the market is kind of behaving the way it is is it's very difficult to to kind of see with it what the endgame is.

You know, from our point of view, we see inflation drifting into the mid fours UM. So it's gonna be elevated, but it's not particularly horrible UM. And then on the recession question, we don't expect the recession this year. We would look for you know, if there's going to be a recession, we think it would be you know, margin lead, so firms see contracting margins, they're being the cutback on

employment and investment. Uh. And we think that takes time to play out and is more likely a late twenty three early scenario, so you know, last thirty seconds. Then, Drew, do you see opportunities in this market? Well, I just think you you look at what's overdone, so yeah, I would say that there probably are opportunities. Um. You know, we think yields are heading back down uh to kind of the twenty five range UM by the end of the year. And I think that's you know, uh for

an insurance company that that's kind of an opportunity right there. Alright, Drew Madis, thanks for this, really appreciated. Drew Madis is chief market strategist at MetLife Investment Management. As we continue to track the sell off this morning, we have SMP futures down down twenty seven points. Down futures are lower by a hundred sixty five points, and NASDAC futures leading declines right now, down a hundred forty points or one

point two percent. Right now, the tenure Treasury is up twenty three thirty seconds, pushing the yield down just shy of two point eight three percent, and the yield on the two year right now is a two point five seven percent. Looking at commodities, NIMEX CREWD is lower by two point one percent right now, down two dollars and seventeen cents for a hundred three dollars fifty four cents of barrel. Just to add much more on this sell

off and Disney's outlook not so magical. Top stories of the morning straight Ahead on Bloomberg day Break Bloomberg eleven three oh weather partly sunny, low seventies today, Scattered showers possible tomorrow with a high year seventy degrees, and we're looking for low seventies on Saturday with the chance for showers. Right now sixty one in Central Park, broadcasting live from

the Bloomberg Interactive Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C. Bloomberg on to Boston, Bloomberg one six one to San Francisco, Bloomberg nine sixty to the country, Sirius XM channel one nine and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg day Break. It's five thirty on Wall Street. Good morning. I'm Nathan Hager and I'm Karen Moscow, and we're just about four hours away from the open of

US trading. Let's get you up to date on the news you need to know at sour yesterday is hot. Inflation reading is sending markets downward. Stocks begin the session at their lowest level since March of one. Former New York Fan Governor Bill Dudley says Fed here J. Powell may have to tighten monetary policy more than he's planning to. I think he's four to five or higher. Um, you know I was three or four, maybe six months ago, from four to five when shocked me. If I'm you know,

five to six a few months from now. Former New York Fed Governor Bell Dudley says the Federal Reserve is not forcefully stated how it will lower inflation to two percent. We'll get another key inflation reading this morning when the Producer Price Index is released. Well, markets in Europe and Asia down as well. Karen European stocks are poised for their fifth straight week of declines, and crypto assets are tumbling. Nathan Bloomberg's Rinita Young joins US Live with more. Good morning, Nina,

Good morning, Karen. Bitcoin is trading at its lowest level since twenty twenty. It touched just over twenty five thousand this morning. It is now trading it close to twenty eight thousand. It's been falling in conjunction with the regular market, but the collapse of the terra usd stable coin is triggering a flight from many of the large digital tokens. Backers of the coin are trying to raise about one point five billion dollars to shore up the token. Staple

Coins are key elements of the crypto market. There were traders park funds as they move in and out of other tokens. Live in New York. I'm we need a Young Bloomberg daybreak, All right, we need a Thanks to corporate earnings now, Disney shares, you're moving lower after the company lowered its spending projections for TV and film content. Gerber Kawasaki CEO and Disney investor Ross Gerber thanks strong subscriber growth in Disney streaming service reflects overall positive signs

for the company. Disney had very good results for their streaming businesses, and much better than we expected because obviously we thought they had a tough comparison to the COVID era, and you know, quite frankly, all their businesses are starting to improve now. Gerber Kawasaki CEO. Ross Gerber spoke with Emily Chang on Bloomberg Technology, which you can watch week days at five pm Eastern on Bloomberg Television. Well Nathan.

In the nations capital, the SEC is reportedly probing whether Elon Musk broke rules last month when he disclosed a large sneak and Twitter. Musk is also facing FTC inquiries over taking Twitter private. Also in the nation's capital, care in the Senate has confirmed economist Philip Jefferson as FED governor and expects to vote today to confirm FED Chair Jerome Powell to a second term. And SMP futures are down thirty seven points this morning, and straight ahead your

latest local headlines plus a check of sports. This is Bloomberg five thirty three on Wall Street sixty one degrees and so far, so good on the roads. Michael Barr has more on what's going on in New York and around the world. Michael, thank you very much, Nathan. New Jersey Governor Phil Murphy is taking additional steps to protect abortion rights. Murphy wants his state to make midwives, advanced

practice nurses, and physicians assistants clear to provide abortions. We remained steadfast in our commitment to ensuring that all New Jerseyans have access to reproductive healthcare, including abortion, and we stand with women across the nation who are facing inevitable hardships on the horizon. Governor Murphy also wants end state insurance companies to cover abortions. Senate Republicans, along with the Democratic Senator Joe Mangin, have blocked to build a turn

abortion rights into federal law. This as Supreme Court justices are set to meet today for the first time since a draft opinion that would overturn Roe v. Wade was leaked to the media. Finnish leaders have announced Finland must join NATO without delay given Russia's invasion of Ukraine. Finland's Foreign Minister Peca Havisto addressed the EU Committee on Foreign Affairs and Brussels this morning and its representatives must be held accountable for the consequencies and effects of the illegal

war of aggression. Foreign Minister Havisto says a few months have changed everything. Meanwhile, Sweden could give its decision on joining NATO in a few days. Mandatory evacuations are underway in parts of Orange County, southern California, as a wind driven wildfire moves through. The so called Coastal Fire is newly burned about two hundred acres and destroyed nearly two

dozen homes since it broke out yesterday afternoon. North Korea imposed a nationwide lockdown today to control its first acknowledge COVID nineteen outbreak. The country has a poor health care system, and its twenty six million people are believed to be mostly unvaccinated. Some experts say the North, by its rare admission of an outbreak, maybe seeking outside aid. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty d journalists and analysts,

are more than a hundred twenty countries. Michael barn This is Bloomberg, Nathan, Michael. Thanks on Wall Street, Joint Stashires

and Bloomberg Sports Update. Thanks Nathan. The range facing elimination, trailing the Penguins three games to one, Trailing Game five at the Garden, too nothing, but after no goals in thirty five minutes, three goals in two minutes and forty two seconds Adam pops Alexis Lafronier Jacob Truba, then third period of range of power play in the first playoff goal for Philip Eagle Rangers with an empty net right at the end, they beat the Penguins five to three.

They still trail the series three to two. The Ranger concern is whether they can now win in Pittsburgh Game six tomorrow. The Penguins, concerned and injury suffered last night to their stars. Sidney Crosby, Florida beat Washington, Calgary beat Dallas, NBA. Memphis at one point led Golden State by fifty five. The Grizzlies won by thirty nine forty for Jana's son to the Compo Milwaukee rally to win. In Boston, the Celtics took out the nets in round one nets GM.

Shawn Marx met the media and Brokelyn the tough about how to get better. We have prided ourselves on the past with finding players with a chip on his shoulder with a resilience to summing a proof. Um, we're gonna have to go back to that. We're gonna have to go back to looking a little bit more development, looking more at finding the right characteristics to play fits here and when asked about locking up Kyrie Irving with a new long term deal, Mark said he's not committing to that.

In d C, the Nationale's gut to Tyler McGill beat the Mets eight to three, with all the scoring come in the first two innings. Mc gill got only four outs, game of eight Rouns eight hits the series end of this afternoon, the Yankees will visit the White Sox cannight. They just beat Toronto five to three. Labor Torres drove in all five and Yanks have won fifteen to the last seventeen. John stash Award Bloomberg Sports. Maybe all right? John, thanks almost thirty seven on Wall Street time for the

Tri State Business Report. Here's Bloomberg's head Cory. Manhattan apartment rents sword in April to a record high for a third consecutive month. Signs point to even constantly or rates on the horizon. Tenants paid a median of thirty eight hundred seventy dollars on new lease's signed last month. That's up six point two percent from the previous record set

in March and thirty nine percent from April one. Lucrative tax credit and years of growing demand for streaming content have fueled the growth of the film production industry in New York. DW. Jones reports the total amount of sound stage square footage is increased fourteen percent across New York and New Jersey since January. New Jersey transit ridership is recovering. Further is COVID restrictions ease and workers increasingly head into

the office again. Weekday rail ridership is more than fifty five percent of pre pandemic levels, up from last amounts level of above fifty percent are Bloomberg Trying State Business Report. I'm ind Corey. Thanks 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 John Tucker for w i NSC New York, reporting and at the carpet wretch sorting April to a record high. On KFEH, egg prices are sky rocketing, jumping more than in April. I'm Genus Servetti in for w BBM in Chicago. I'm reporting on new data showing Illinois among states with the lowest percentages of equity rich properties in the first quarter. And Lisa Mateo and on k M O X and St. Louis,

I'll be reporting on breakfast getting even more expensive. I'm Jeff Bullinger and on w y O D in Miami. I'm reporting four Florida metros are considered equity rich. Homeowners with mortgages have at least fifty equity. I've had glory on w T A M in Cleveland. I'm reporting Lloydstown Motors has closed on the sale of a plan to Fox Con. Those are some of the stories are twenty seven hundred Bloomberg journalists and analysts are working on this

morning around the world. It's thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. With an eye on the midterm elections. Republicans have highlighted US surge in illegal crossings of the southern border to attack President Joe Biden's handling of immigration. Their criticism is not unwarranted. Biden

has largely failed to implement a coherent border policy. This, in turn, is making it harder to create the immigration system the country badly needs. Biden should compromise on lifting pandemic erab border restrictions and press Congress to commit more resources to strengthen border security. After containing the challenges of the border, Biden could then begin to forge a bipartisan

coalition to reform the legal immigration system. A Canadian style system that prioritized highly skilled immigrants would encourage economic growth, and polls show that it could command public support. But for that to become a reality, the US government must prove it can contain illegal immigration first. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash Indian or O P I N go on the Bloomberg terminal. This has

been Bloomberg Opinion. Listen for Bloomberg opinion editorials every weekday. At this time. Terminal customers can read more at OPI nd go red headline just across the Bloomberg terminal, Japan's Coast Guard says North Korea may have fired a ballistic missile. We're following that for you. This is Bloomberg Bloomberg eleven three oh weather. Partial sunshine today with highs and the low seventies. Scattered showers possible tomorrow with a high near seventy.

Will be in the low seventies again on Saturday, with a chance for showers to start the weekend. Right now sixty one degrees. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business aland at Bloomberg Quick Take. This is a Bloomberg Business flash and I'm camerin Moscow. Global stocks and ustock indext futures are tumbling as Stubbard inflation in the world's biggest economy asked of the case for more aggressive monetary tightening

by the Fed. We checked the markets every fifteen minutes throughout the trading day on Bloomberg s and P futures down twenty six points, STATH futures down a hundred sixty six, and NASDACK futures down a hundred thirty. The decks. In Germany's down to in a quarter percent ten year treasury of twenty six thirty seconds yeld two point eight one percent. They yield on a two year two point five six percent.

NIMEX screwed oil is down one point four percent on a dollar fifty one at a hundred four dollars nineteen cents of arrol COMEXS goal is down to ten percent or four dollars ten cents at eighteen forty nine fifty announced. The Euro one point oh four three three against the dollar, British pound one point one eight three and the end at one twenty eight point seven three and Bitcoin lower down to it a third percent at twenty seven thousand,

seven hundred fifty dollars. That's a bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. The U. S. Supreme Court will gather today for the first time since the leak of a majority draft opinion that suggests the Court will overturn a rope be Wade. It comes after the U. S. Senate failed to pass a measure to

enshrining abortion rights in federal law. Ukraine's military says Russian forces unleashed air strikes on the last pocket of Ukrainian resistance in the besieged city of Mariouple. In the NHL Playoffs, the Rangers stay alive after beating the Penguins. The Capital's lost to the Panthers to fall behind in that series three games to two. NBA Playoffs, the Celtics lost to the Bucks. There are now on the brink of elimination. The Warriors lost to the Grizzlies. Golden States still leads

that series. Three to baseball, the Yankees one, Mets lost to the Nationals, Red Sox and Orioles lost. Giants and Day's one Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries. Michael barn This is Bloomberg. Okay, Michael, thanks, just about five forty nine on Wall Street Life from the Bloomberg

Intractive Broker Studios. This is Bloomberg Daybreak. As we keep an eye on Disney shares this morning, they're losing value, down more than five percent in the pre market right now. Now, the entertainment Colossus came out with better than expected earnings, but the outlook seems to be what's weighing on the shares this morning. Let's get more insights now, Keith Wronganathan

is with US now media analyst at Bloomberg Intelligence. Keith, it's always good to speak with you, and I know you, along with a lot of analysts, were keeping a very close eye on the subscriber numbers for Disney. Plus those came in better than expected. Shouldn't that be sort of balancing things out a little bit? What's your view? Yeah? It should. I mean this is this is surprising to me, honestly.

Good morning, Natan, Thanks for having me so. You know, as far as Disney's results yesterday were concerned, I think they blew it out of the park. I think this was an A plus report guard on on all fronts. I mean, the two key metrics that we were looking for, obviously was the subscriber number and the park profits, and and they outperformed on on both scores. But you really

have to look at the market right now. I mean, if after those numbers they came in seventy spent ahead of consensus estimates and there's still five percent down just really tells you that the market is just extremely nervous about the whole streaming model right now. It is not as attractive a model as we were thinking it would be.

And even the slightest hint of you know, kind of the growth in the second half of fiscal um, the second half of not being as maybe gang busters as analysts have previously expected, that's what's kind of weighing down on the stock a little bit. But really, I mean that there is I think it's it's a bit of an overreaction, honestly. Well, I wonder if the commentary we got from Disney yesterday about where they see the streaming service going sort of changes your view on the streaming

market overall. When they're talking about, you know, tempering subscriber growth, potentially bringing in more of an ad based Disney plus, how does that affect your view on streaming. So I think the one thing that you know, people have kind of really now understood about the streaming business is, you know, first of all, there were questions about what the total addressable market was. You know that there was a point when we were thinking that maybe it was you know,

an eight hundred nine hundred million one billion subscribers. But when when Netflix reported, they obviously kind of really tempered down those expectations. Now Disney, on the other hand, has been pretty consistent all along. So they have guided to about two hundreds of millions subscribers. Like FIST four. They went ahead and reiterated that target yesterday. Um, so you know, I think they have a pretty good strategy in place now. The second big thing that people are looking for really

is the profitability metrics. And we know that for for you to be successful in the streaming business, you have to spend billions and billions and billions of dollars before you can even make a single dollar in profit. This is a capital intensive business. And again Disney class is not making any money right now in terms of profit, but they did retreat they are going to do unprofitable in Cisco. I just think the market is not that

patient right now. They are worried about near term profitability, and we see this kind of affecting all the story, you know, all of the streaming players, and of course Disney doesn't seem to be any exception as well. In our last minute here, of course they're not. They're not just relying on the streaming business, They've got cable properties,

They've got that parks business, cruise lines. Are they going to be sort of leaning on the in person entertainment for lack of a better word, at least in the short term, to uh, to give investors a little more confidence. Yeah, this is where I think Disney such a great company, unique company, right. They have that perfect cadge. If you're stuck at home, you have the stream the streaming business, if you you know, you have the reopening trade with the parks, and the parks are really I mean they

knocked it out of the park. You know, sorry for the fun, but um, you know, the parks are jammed right now. There is just so much a pent up demand. And I think even with his economic overhang and you know, with the sessionary theories, I think this time is going to be a little bit different. People have just been cooped up so long inside their houses. I think they're really looking to get out. I don't think it's going to weigh on the parts as much as people are fearing.

Thanks for this, Keith, always great to get your thoughts. Keep the wrong enough. The media analyst at Bloomberg Intelligence, Karen Alright. Nathan It is three on Wall Street. It's time for the Bloomberg Law Report, and we get to the legal stories we are watching this morning with Bloomberg's Jeff Bellinger n Circuit Delta blow to California's gun control efforts, ruling that the state's near total ban on the sale of semi automatic rifles to young adults likely violates the

Second Amendment. New York State will create a state agency to supervise the unregulated pharmacy benefit management industry. It's part of an effort to keep drug costs slow. The federal judge ruled that the Kansas McDonald's may have subjected a female department manager to sex based discrimination, harassment, and retaliation. The case will go to trial. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and

Bloomberg Market Intelligence. Find out more at Bloomberg Law dot com. Right, Jeff, thank you. Now. Another legal story we're watching. The Sunate rushed yesterday into an almost certain a failed vote toward enshrining Roe v. Wade abortion access as federal law. If the Supreme Court overturns Row as expected, a woman's right to an abortion will depend on the state she lives in, and many abortion rights activists fear at the end of

Row is just the beginning for more. Bloomberg student Grosso speaks to Mary Ziegler, professor at u C. Davis Law School. The next battle ground, Well, there are a few battlegrounds. So let's say one of the next battle grounds is states trying to stop their residents from traveling across state lines to terminate a pregnancy. Can states enforce their laws

beyond their borders? The answer is, we don't know. So the extra territorial applicat of these laws is something that hasn't or even really any laws, is something that hasn't been dealt with a lot in recent history. We have one case that isn't really directly on point from the Row era, and then to look back further, you really have to go to the days of kind of fugitive slave disputes to really get into this kind of interstate war.

So I don't know, it is the answer. And so that's one of the reasons you see blue states anticipating these struggles and passing laws like the one in Connecticut, essentially saying we're not going to comply with these requests. We're going to protect our doctors. But how you know those disputes will be resolved. Whether what the Red state would be doing would be constitutional is unclear. Which states

law would apply in those circumstances is unclear. And the great irony of it all, of course, is that if that's contested, gonna end right back up in the Supreme Court, which in this draft is telling us that, you know, things are going to become much more peaceful when the Court gets out of the abortion business than this goes back to the States. Another next battle ground is medication abortion or abortion pills, which account for more than half

of recent abortions according to stats. Is this the most workable option in the future for getting an abortion? It may well be. Medication abortion obviously isn't applicable throughout pregnancy at the moment. The FBA only authorizes it for the first ten weeks, but it is becoming the preferred method and it is relatively hard to trace. It is something that people can get in states who are abortion is

illegal from organizations like aid Access that operate internationally. But I think in a postal world, no abortion method will be really free of potential consequences for people seeking it. Unfortunately. How would states go about cracking down on medication abortions, Well, much in the same way they would crack down on other drugs, just by probably selectively prosecuting people they find with those drugs. And I think we haven't seen entirely

how states are going to do this. We're likely to see more digital surveillance, were likely to see more bounty programs, We're likely to see more selective prosecution. And so I think what we've seen so far is just the tip

of the iceberg. And that's Mary Ziegler, a professor at You See Davis Law School, speaking at the Bloomberg's June Grass So catching more of 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 podcasts. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal

at blong Go. Futures following this morning, S and P futures down twenty seven points down, Futures down one and NASDAG futures down one, dred thirty three and still I had on Bloomberg day break and check on the business headlines and all the news you need to start your day. And this is Bloomberg.