Bloomberg Daybreak: May 13, 2022 - Hour 2 (Radio)

a big summer spike because of gas prices. Plus a dire warning from the New White Houscope nineteen coordinator Michael barn Or a half. I'm John stash Own Sports. The Yankees erupted late. They win in Chicago, the Mets one in Washington. The Rangers and Penguins play games six tonight

in Pittsburgh. That's all s train ahead on Bloomberg Daybreak on Bloomberg Eliving Free on New York, Bloomberg nine one, Washington d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Syrius x M one nineteen and around the world Old on Bloomberg Radio dot Com and the Bloomberg Business app. Good morning. I'm Nathan Hagar and I'm Karen Moscow. US stock index futures are higher this morning after some wild swings on Wall Street yesterday. We're

coming up to six one on Wall Street. We check the markets every fifteen minutes throughout the trading day. On Bloomberg. Guess in Key Future is up thirty eight points this morning. Down futures have two D two and noasday futures have one eighty nine. Can your treasury down twelve thirty seconds yield two point eight to nine percent, and they yield on the two year two point five eight percent. Nathan, Karen, we begin this morning with breaking news on Twitter. Out

just moments ago. Elon Musk is casting doubt on his deal to buy the social media company. Bloomberg's Rinda Young joins US Live with this breaking news. Good morning, Na, Good morning, Nathan. Elon Musk says his deal to buy Twitter is temporarily on hold. Musk maybe announcement where else On Twitter. He says the forty four billion dollar purchases on whole pending details on how many fake accounts may cup Twitter's total users. He's questioning whether spam and fink

accounts represent less than five percent of users now. Traders had started to question Musk's bid for Twitter in recent days as shares traded below his offer price of fifty four dollars and twenty cents, and right now they're down more than in the pre market, trading around thirty three dollars a year. Live in New York, I'm gonna need a young Bloomberg day break and we're watching it even extend. It's the clients re need and now downe about twenty

five percent for Twitter. Tesla shares are up about six percent right now. Thank you for that report, and we continue to keep an eye on Twitter shares throughout the morning here on Bloomberg Radio, along with whatever else comes out of this developing story. Meantime, SMP futures are on the rise. As we said, as we close out of volatile trading week. Yesterday, the SNP five hundred came within spitting distance of a twenty percent drop before a late

day rally paired those losses. Chris Zacarelli, the chief investment officer for Independent advisor Allion, says this is shaping up to be a turbulent year. We think this entire year will probably be full of volatility because ultimately the volatility is being caused by uncertainty around inflation, uncertainty around that policy, and then ultimately uncertainty about growth. And we don't think any of those things will resolve in the near term,

so there's gonna be volatility. And Chris Nacarelli with independent advisor Alliance, made the comments on Bloomberg Business Week Catch the program weekdays from two to five pm Wall Street

Time on Bloomberg Radio. Well adding to this morning's stabilization for the broader market, Karen J. Powell, pushing back against speculation on steeper interest rate hikes, share pal one Senate confirmation yesterday for a second term, and reaffirmed the Fed is likely to raise rates by a half percentage point in each of its next two meetings. We get more from Bloombridge Charlie Pellett. Powell says the Central Bank is

prepared to change course depending on incoming data. Asked in an interview with the Marketplace Public Radio program if he had taken a larger seventy five basis point increase off the table, Powell said that while the FED was not actively considering such a move. If the economy performs about as expected, that it would be appropriate for there to be additional fifty basis point increases at the next two meetings in New York. Charlie Pellet Bloomberg Daybreak, All right, Charlie,

thank you. San Francisco FED president Mary Daney is also backing fifty basis point rate hikes at each of the next two meetings, and an interview with Bloomberg News Daily said rates should rise to neutral by the end of the year. She sees that benchmark around two and a half percent. Well Stabler Market Karen means the sell off in cryptocurrency seems to have subsided. Bitcoins trading back above it's key thirty thousand level this morning after falling to

nearly twenty five thousand Wednesday. Tether, the largest stable coin used in crypto markets to facilitate trading, is also recovering from an earlier mini crash. Major cryptos were falling with regular market sentiment, but the implosion of the terra USD stable coin kindled widespread panic. Well Nathan Shares a robin

Hood also on the move. This stock, which has been battered, is up more than or Le trading cryptocurrency billionaire Sam Bankman Freed has taken a seven point six percent stake in the troubled online brokerage robin Hood shares a plunge seventy seven per cent since it's hotly anticipated initial public offering last July. In other corporate news, Apples taking aim at unionization efforts in its US retail stores. The companies holding meetings with employees posting notices that have the benefits

of working for Apple. So far, no Apple store has unionized, but multiple locations are working with labor groups. Well, we now turned the latest developments involving the war in Europe. USA d Ukraine is on hold after one senator held up yesterday's vote on a forty billion dollar aid package, and Bloomberg's Amy Morris reports from our newsroom in Washington. Republican Senator Ran Paul held up the vote because he says the US is spending a lot of money in

Ukraine and someone should be keeping track of it. Our total age in Ukraine will almost equal the entire military budget of Russia. And it's not as if we have that money lying around. We will have to borrow that money from China. So now the bill won't make it at the President's desk until next week. Meanwhile, White House Cyber Director Chris Ingliss says he expects Russia's use of cyber attacks to continue, telling Bloomberg TV he credits the

Ukrainians for their effective defense. I than the Russians have shown that they are not perhaps as competent as they might have imagined, both in the physical world and the CyberWorld. And the National Security Agency told Bloomberg News it's investigating the use in the US business community of cyber security software made by Caspersity, a Russian vendor in Washington. I'm

Amy Morris, Bloomberg Daybreak, Thank you. A House committee investigating the January six insurrection attempt has indeed disappoint at House GOP leader Kevin McCarthy, and that's along with four other Republican lawmakers and Bloomberg's and Baxter has the story. The committee has been trying to bring them into talk voluntarily, but now Republican House Member Liz Cheney says timing has

become just too important. It's a reflection of how important and serious the investigation is uh and how grave the attack on the Capitol. So there are certain to be extended court battles, potentially pushing any testimony beyond the mid term election, and if the Republicans take control of the House, then it may never happen. In San Francisco, I'm at Baxter Bloomberg, Gay break all right at thanks SMP futures up thirty eight points down down, futures have tuned three,

NASTAC futures up a hundred eighty nine. Straight ahead, your latest local headlines plus the check of sports. This is Bloomberg. It sounds six o seven on Wall Street. Word fifty eight degrees in Central Park. We've got an accent or heavy volume on the southbound Harlem River Drive from A D five to the FDR. 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.

More than seven a gas stations in New Jersey are offering lower prices today as part of an effort to educate people about what might happen if self served gas pumps are allowed in the state. Bill has been introduced in the state legislature calling for self service at stations with more than four pumps as gas prices rise because

of inflation and the war in Ukraine. Advocacy group Fuel Your Way in Jay said today Self Served Day of a Wilderness aims to let drivers know that self serve could help them save between one hundred to four hundred dollars per year. What do New Jersey drivers think about self serve? Phillips? It's a made you cover because you don't have to deal with the elements. The elements are the wars. It's better and safer if they come to

you and us. New Jersey is one of two states that does not allow any one other than gas station attendance to pump gas. New York households power bills or boys to surge twelve percent this summer amid higher electrical demand and soaring natural gas prices, according to the State Public Service Commission, That would exceed the eleven percent increases

of the two previous summers. The new White House COVID nineteen coordinator is issuing a dire warning the US will be increasingly vulnerable to the coronavirus this fall and winter if Congress does not swiftly approve new funding for more vaccines and treatments. Dr Ashi's Jah says that americans immune protection from the virus is waning, the virus is adapting to be more contagious, and booster doses for most people

will be necessary. When I think out to the future the rest of the country as his virus spreads, there are places in the country that I have far lower levels of vaccination and worry about what's going to happen there. Dr is she's job. President Biden sent a letter to the Federal Trade Commission asking the agency to look into cases of price gouging as there's a national shortage of baby formula. The supply disruptions are due in large part

to a February recall of some popular brands. New York Republican LC Stefanik is among members of Congress criticizing the Biden administration's handling of the crisis. This is not a third world country. This should never happen in the United States of America. Representative Stefanik as the f d A is now considering loosening import restrictions. Global New whos twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists. Analyst more

than a hundred, twenty countries. Michael Barr, this is Bloomberg, Nathan. Okay, Michael, thank you. Coming up to six ten on Wall Street. Time for the Bloomberg Sports Update with John Shot. Thanks Nathan. The Yankees keep winning. The pitching nest for the most part,

carried them. The last night. The pitching wasn't great. The hitting was a fifteen to seven win over the White Sox in Chicago to home run six RBIs for John Carlos Stanton, home run for Aaron Judge, he drove in four, Josh Donaldson cappy seven run eight getting with a three run shot in the Yanks have won sixteen of their last eighteen. The Mets with a four one win at Washington, So the Mets win another series. They've played ten of them, no sweeps, but they've won nine with one split at

home tonight for Seattle. Rangers are in Pittsburgh tonight, Game six. It's not known if Penguin Stars Sidney Crosby will play. An upper body injury suffering game five courtesy of a high hit by Rangers defenseman Jacob Trueba. Pens coach Mike Sullivan was clearly anchored by the hit. The Ranger coaches Gerard, I don't think Bob been one dish. I mean he plays his game the way he played his game. And you know, again, true Jane hurt Sidney Clausbeer. You know

that's not the goal. Our goals to play physical hockey. And it was an unfortunate play, you know, So, I mean, there's no intend to hurt anybody and go, says Sterkin back in Pittsburgh, where he struggled in games three and four. Sister Can, already a finalist to win the Vest of the Trophy for Best Goalie, also now named a finalist to win the Heart Trophies. NHL m v P three teams won to force a game seven Boston, Edmonton and Tampa Bay and won an overtime. NBA Miami want of

Philadelphia to win that series. Dallas blew out Phoenix, that series going seven. NFL schedules out. The Giants will open up at Tennessee. The Jets will be home for Baltimore. Red strike off that miraculous when at the Kentucky Germany will not be in next week's prenkness. John stash Were Bloomberg Sports n all right, John, thank you, SMP futures now up thirty six point, Staff futures up, Nastact futures up a hundred seventy eight. Twitter shares tumbling, with Elon

Musk saying the deal is on hold. Alex Webb of Bloomberg Opinion and Bloomberg Quicktake joins us next. This is Bloomberg Bloomberg day Break, brought to you by the Jewish Communal Fund j c F. S Downer Advised Fund is the smart choice to manager philanthropy, especially in times of crisis. Make your giving impactful. Visit j c F. N Y dot Org markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at

and at Bloomberg Quicktake. He's a Bloomberg Business Flash and I'm Karen Moscow. Twitter shares down eighteen percent this morning, and this update is brought to you by b n Y Mellon's Perishing. Learn why the world's most sophisticated wealth management and institutional firms rely on Pershing to help them improve profitability, create efficiency, attract talent, and manage risk at

Pershing and dot Com again. Watching Twitter shares fall down eighteen percent in early training after Elon musk Twee that has take over at the social media company is temporarily on hold. Will have more details on this breaking story straight ahead with Alex Webb of Bloomberg. Quicktake. Futures are higher, SMP futures up about forty points down. Futures have two hundred nineteen Nastack futures have one d nine ten year treasury down fourteen thirty seconds, yield two point eight nine percent.

Yield on the two year two point five eight percent. Nimex screwed oil of one of a third percent of a dollar forty three and a hundred seven dollars fifty seven cents a barrel. And we're watching bitcoin this morning. It's higher, up more than six percent at thirty thousand, three hundred dollars. That's a Bloomberg business flash. Now here's Michael bar with more on what's going on around the world.

Michael Darren, thank you very much. The Kremlin has warned it would retaliate after Finland's leaders said they favored joining NATO. Sweden could do the same within days. In a historic realignment triggered by Russia's invasion of Ukraine. House Minority leader Kevin McCarthy and four other congressional Republicans have been subpoenaed by the House Januar every six committee. In baseball, the Yankees one, the Mets beat the Nationals, the Orioles and

A's one. NHL Playoffs, there will be a deciding game seven after the Bruins beat the Hurricanes. Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than twenty seven hundred journalist and analysts more than twenty countries. Michael barrt this is Bloomberg, all right, Michael, thanks to his six nineteen on Wall Street Life from the Bloomberg Interactive Broker Studios. This is a Bloomberg daybreak

and if you happen to have just joined us. Twitter shares are sinking this morning thanks to a tweet from its potential buyer Elon Musk. Moments ago. He tweeted that the buyout is temporarily on hold as he awaits data on Twitter's proportion of fake accounts. Let's get more now on this breaking news. Alex Webb is with us this morning. Bloomberg quick Take correspondent and tech columnist for Bloomberg Opinion. Alex good morning. What is Elon Musk up too? Ok,

we don't even know that he's serious. The tweet reads Twitter day tepper on hold pending detail supporting calculation that smams slash fake accounts do indeed represent less than five c cent of users, and it links to a story with that data. Now, you know, you could read that as Elon being sarcastic. Right, Sure, the Twitter deal is off because of this new story that just came out, Like I would be tempted to interpret it that way. Now, of course, the thing that is surely undoubtable about this

is that the SEC will be looking at it. Right, if the deal is off and he's announced the dealers off on Twitter, well he probably should be filing that. If the deal isn't off and he's announced he's making a comment like this flippantly on Twitter, then they should be looking at it. It's you know, it's sort of unfortunately not a surprise that this is a sort of tweets that we're saying, Well, let's just get a little bit of background here on the issue with spam but accounts.

What is Elon Musk's issue here? How does this play into the Musque bid for Twitter? Well, if it's if it's serious that the dealer is off for on hold because of this audit. Um, you know, even as the one of the things he's going to do is eliminate spambots or reduce spam box at the very least. And um, you know, you do see on any number of posts, particularly crypto bots, you know, jumping onto trending topics and

trying to pump up particular coins or influences. If there aren't as many spam bots as he had thought, then of course the if he thinks that is a business upside, the opportunity to get rid of these spambots. If there aren't as many as he thought, then maybe the upside isn't as great. You can also look at it differently.

Does maybe there only five per cent of the accounts of spam bots, but if they are generating of the content I don't know if that's true, but I'm just working that number out the air, then it's still something worth looking at. So, you know, it's a sort of vastly convex thing, and they're also often quite hard to identify. So if there is a possibility here that Elon Musk is putting this out flippingly that this is just another Twitter joke. I mean, what does that say about his

entire bid for Twitter? Mean, there's still a lot of speculation, isn't there about whether he's even serious about doing this deal, even with all the financing he's put together for this. Absolutely, and that is you know that spread, that that that uncertainty is reflected in the spread between the offer price and the stock price as it closed yesterday, even before you know this pre market drop that was seeing today

the shares trading. The shares closed yesterday at forty five dollars, the offer prices fifty four dollars twenty That is a considerable difference. I think the smart money has been sin and a going that at any stage Ellen might wake up and say, do you know what, I don't want to do this deal? Uh? And so that has been priced into the share price as it stands. Yea, as we watched the Twitter shares just in the pre market

test a thirty handle you mentioned the SEC here. I mean, with the Elon Musk putting this out on Twitter, it does raise the possibility of the SEC cracking down even further. On Elon Musk, what are you gonna be looking for their al It's hard to know what they can do. You know, they've already done some things at Tesla where they've said, well, you have to have someone investing your tweets as it pertains to Tesla, But of course these tweets don't pertain to Tesla, not directly. At the very least,

they've placed a different chairman in for two years. Those two years are you know, running out pretty soon, so we don't know that Elan is going to take the chairmanship again. There's a suspicion that one of the reasons that Ellen was trying to buy Twitter is because he didn't want to be, in his view, censored on the platform. Doesn't want others censored either, and how a private company censors is a different question, but you know, that's one

of the issues at stake here. And so if it ends up ironically with him having to reign in his tweets even further, it would just be a very strange um eventuality in our last thirty seconds here, I guess what I'm wondering, Alex is what could this mean for some of the you know, major backers that Elon Musk has put together to do this deal, like Larry Ellison, like Morgan Stanley. I think if you're Larry Ellison, maybe

it doesn't change your calculation. But if you're Morgan Stanley or indeed in Apollo or any of the other sort of financial backers, you know, sort of putting your reputation and your capital at stake by getting behind this bid when it's not entirely clear what the financial upside is going to be. Uh, it does I think if you pause the thought, and I'm sure there are gonna be some some frenzied meetings and zoom calls in the course

of today amongst some of those backers. All right, Alex web As always, thank you so much for coming on and giving us more on this breaking news, with Elon Musk saying the Twitter deal is temporarily on hold while he looks into calculations that Spambot's account for less than five percent of users on Twitter, and we are watching Twitter shares slide in the pre market now down about eighteen cents, trading around thirty seven dollars eighteen percent lower

now in the pre market. Much more to come on Bloomberg Daybreak. Of course, we will continue following this story for you throughout the morning. As we watch futures rise. We have SMP futures of forty points, Staff futures of two twenty three. Nastack futures are higher by a hundred ninety two points. This is Bloomberg Bloomberg eleven three oh weather. A few showers possible today with a high near seventy degrees.

More showers possible tomorrow as well. Low seventies might hit eighty on Sunday, and can't rule out a few more showers then. Right now fifty nine in Central Park, broadcasting live from the Bloomberg Interacted Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C, Bloomberg one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the country, Sirius XM H one nine team, and around the globe, the Bloomberg Business and

Bloomberg Radio dot Com. This is Bloomberg Daybreak at six thirty on Wall Street. Good morning, I'm Nathan Hager and I'm Kared Moscow. We're just about three hours away from the open of US trading. Time for the five things you need to notice start your day. Bronti you buy Interactive Brokers. Interactive Brokers charges margin loan rate from zero point a three percent to one point three percent rate, subject to change. Learn more at I v k R

dot com. Slash compare up first breaking news on Twitter, Elon Musk casting doubt on his deal to buy the social media company, and Bloomberry or Needy Young joints us live with more. We need a good morning, Good morning, Karen. Elon Musk is saying his deal to buy Twitter is temporarily on hold. He made the announcement on Twitter. He says the forty four billion dollar purchases own hold pending details on how many fake accounts make up Twitter's total users.

Musk is questioning whether spam and fake accounts represent less than five percent of users. The traders have started to question his bid for Twitter in recent days, as shares traded below his offer price of fifty four dollars and twenty cents. Live in New York. I'm re need a Young Bloomberg day break. It's well down from there right now. Twitter shares are lower by twenty percent in the pre market. Bloomberg Quick Takes Alex Webb says this could be away

from US to back out. Part of me thinks that actually he's being sarcastic because it shouldn't necessarily make a big difference. He could be saying if we take him at his word, that actually maybe it's not as big a differentiator as he thought. If he's going to come in and say I'm going to get rid of SPAN accounts, I know that many SPAN accounts to get rid of

exactly the upside for him as limited. Bloomberg's Alex Wed their tune in of Bloomberg Radio for the latest on Twitter throughout the morning, Well, Nathan, US futures are higher as we near the end of a volatile trading with Joyce Chang Global Research chare at JP Morgan expects more wild swings in the market. Inflation in the US could be close to speaking, but it's been going up in the rest of the world, and even if you've seen the peak for inflation, the question is where does it settle.

I think that the volatility is really going to stay with us here and there's still the growth concerns as well in Europe and China where we're taken down forecast and JP Morgan's Joyce Chang says even if inflation as peak, FED policy will remain hawkish. I mean, speaking of the Fed Karen J. Pale's latest comments, you're help be the stabilized markets. The FED chair was confirmed to a second term yesterday. He says the Central Bank still plans to raise rates by fifty basis points at each of its

next two meetings. Cryptocurrency is also rebounding this morning. Bitcoin's currently trading at thirty two hundred dollars. And this redhead blind just across the Bloomberg terminal care in US gasoline futures have jumped to an intra day record. And that's the five things that you need to notice start your day. Brought to you by Interactive Brokers. Again, futures are higher this morning, and straight ahead relatest local headlines plus a check of sports. And this is Bloomberg six thirty three

on Wall Street. Now we're fifty eight degrees in Central Park and Michael Barr has more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. Today more than seven to gas stations throughout New Jersey are lowering their prices. It's part of an effort to demonstrate how allowing self serve at the

pump could help lower gas prices. The bill has been introduced in the state legis like you're calling for self service at stations with more than four pumps as gas prices rise thanks to inflation and the war in Ukraine. Assembly Woman Carol Murphy, one of the sponsors of the bill, says the measure could solve a worker shortage issue. Do you come across is gas stations where there are closed pumps? Why? Because they don't have enough work force to man those pumps,

which creates long lines. Assembly Woman Murphy agrees with advocacy groups that self served gas could save drivers between one hundred to four hundred dollars a year. New York households power bills are poised to surge twelve percent this summer over a year earlier, amid higher electrical demand and soaring natural gas prices that would exceed the eleven percent increases

of the two previous summers. White House COOVID nineteen response coordinator Dr Rashi's Job renewed his call for Congress to authorize more funding to fight the virus. Dr jahns warning that many America with waning immunity could find themselves vulnerable this fall without more preventative efforts. Obviously, if we don't get those resources, we're gonna have to make some very very difficult choices, right whatever, make difficult choices about vaccines

or treatments. What do we do with tests and we really go into a fall and winter search with no testing capability, I mean, that would be a real problem. Dr Johns says the twenty two and a half billion dollars in COVID nineteen relief funding requested by the White House is the bare minimum that we need to get through this fall and winter without large loss of life. North Korea says six people have died in three d

fifty thousand have been treated. The day after it acknowledged its first COVID nineteen cases the pandemic, President Biden spoke with retailers and manufacturers of baby formulas to have them do more to help families purchase infant formula. White House Press Secretary Jen Psaki says the administration is ramping up

its efforts to alleviate the shortage. Obviously, the steps the President took today are an acknowledgement and a recognition that more needs to be done, that we do not want parents, mothers, families out there to be stressed and worried about feeding their babies. Zaks as people are hoarding baby formula and trying to profit off fearful parents. Global News twenty four hours a day on here and on Bloomberg Quickdake, powered by more than twenty seven hundred journalists analysts more than

a d twenty countries. Michael Barr, this is Bloomberg Natani, Michael, thank you. Almost sixty six. On Wall Street, John stash Our has the Bloomberg Sports Update. Alan Anthrian Yankees in Chicago, Blue two leads. The game was seven seven go into the eighth inning. Yank scored seven runs in the ain't they beat the White Sox fifteen to seven too? On run six RBIs for John Carlos Stanton. The Yankee manager, Aaron Boom. We don't expect to throw two touchdowns up there.

One upon a night when Dylan sees his pitching, you know, the kind of start he's been off too. But a lot of really good at bats off of him, obviously, Big g getting two big ones to get us to get us roll in and then you know, we lost. We lost the lead there and It's really good to see guys just continue to push the head boons. Yanks have won sixteen to the last eight teen. The Mets won four one of Washington, Mark Kenneth three hits, a

home run three RBI's first win for Taiwan Walker. The Miami Heat have advanced to the NBA's East Finals Game six win at Philadelphia. Jimmy Butler scored thirty two points. LUKEA. Donson scored thirty three in Dallas. The MAVs, coming off a thirty point loss in Phoenix, won by twenty seven, and that series is going to a seventh game. Will

the Rangers and Penguin series goes seven. Blue Shirts need to win games six tonight in Pittsburgh, where the Pens won games three and four, seven to four and seven to two. Is not known if the Fens will have Sidney Crosby tonight. He got hurt in Game five. Tanda Bay Lightning two time defending Stanley kept champs they faced elimination, stayed alive, and overtime went over Toronto. There will be at least three game sevens. There could be as many

at six. NFL season will kick off for the defending champion l a. Rams hosting Buffalo the Jets Week one home for Baltimore the Giants at Tennessee of the Giants annual game in Dallas will be on Thanksgiving. Johns Bloomberg Sports Nathan, Okay, John, thank you. Six thirty seven on Wall Street, Time to take a look at stuck some of the names moving in the pre market. Boomberg Radio, TV Markets corresponding, pretty good. Don't we know which one's moving?

It's Twitter? My goodness, it's Twitter. You know, this is such a fascinating story. I have to say, Nathan, because I think there for so many for so many days, for so many months, a lot of people have been saying, well, you know, oh, this is just Elon Musk pulling some sort of publicity stunt. But look he's doing his due diligence. That's really what's moving the stock today if you actually look at what Elon Musk twitter. Uh. He did tweet

for for the record, Uh. He said that the Twitter deal is temporarily on hold, pending details supporting the calculation that spam slash fake accounts do indeed represent less than five percent of users. He also linked a a Reuter story talking about just that that, of course the five percent number coming to a filing, but that temporary pause or on the deal has the stock of Twitter t W t R down to as low as thirty six dollars, naking down about nineteen percent this morning. This is important

because remember the deal premium was already pretty wide. There were already questions about whether or not this deal would actually go through, and that's why you never saw Twitter shares actually hit that forty four or sees. It was like hovering around forty eight, which is which is interesting. Usually when you see an M and a kind of deal like that, it goes right to that offer price so that they can uh, the investor can buy out at that price um but closed out clearly amplified this morning.

So now you have Twitter shares, like I said, trading with about a thirty six handle. And remember it's not just Twitter that moves off this news. Is Tesla as well t s L as your tigger up five point four percent this morning. And remember there is that inverse dynamic. Every time Twitter shares fall, Tesla shares rise. And the idea here is that if Elon muskts focused on Twitter, does Tesla lose some of his attention and therefore lose

some of its value. So that kind of inverse correlation that you see ends up having macro effects because Tesla, by the way, he's a heavyweight in the smp FID. So could the entire index just based on Elon Musk's one tweet on Twitter. Well, in the time we have left Crety, let's talk about the other big mover that maybe we thought was gonna be the big mover before this Twitter news, and that's Robin Hood. It is Robin Hood, although I would argue this is actually a bigger move

than Twitter is because it's up um. But Hood h o O D is your taker. This comes after Sam Bankman Freed. He's the thirty year old CEO of crypto trading platform f t x H thirty years old, by the way, in a billionaire man, I've got I've got my work cut out of it out for me Robin Hood anyway, so it is surgery. He did take a a seven point six percent steak in Robin Hood. Remember a lot of Robin Hood's revenue comes from crypto volume, so this kind of deal makes sense. But regardless that

steak has robin Hood shares storing about this morning. Nathan all Right, Bloomberg Radio on TV. Markets corresponding, Crety good even busier than usual this morning, thanks as always creating and looking at the market as a whole ahead of

this Friday open. SMP futures are up forty five point, staff futures up tune and fifty one NASC futures up two points and the tenure treasury now down twelve thirty seconds, the yield two point eight nine per cent, yield on the two year two point five seven much more to come. Stay with us. You're listening to Bloomberg day Break. Bloomberg Gay Break is brought to you by Pepack Private Wealth Management. Pepack Private Wealth Management knows that a portfolio is more

than a collection of assets. It is a path to your future. Visit Pepack Private dot com and begin your financial legacy. Today, Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, a Bloomberg Business at and at Bloomberg Quick Tape. This is a Bloomberg Business Flash and I'm Karen Moscow, and we continue to watch. Shares of Twitter this morning down almost sixteen percent after Elon Musk tweeted that is forty four billion dollar takeover

of the social media company is temporarily on hold. Futures this morning are moving higher after what was a while day on Wall Street yesterday. We go to the First Word Breaking news desk for today's morning call, and here's Bill Maloney. Bill, good morning, Hey, good morning, Karen. That's right.

US features are firmly in the green right now, with down futures of two thirty two points, subs gain forty three, and Magic futures are higher by two hundred US ten year at two point eight nine percent, Gold is down six, Oil is climbing, and Bitcoin is hired by five point six percent. Japan rose two point six percent overnight, while up markets are in the green this morning, led by gains in the UK and France back in the US

on the economic front. At ten o'clock Michigan Sentiment and after the bellast night, it was reported that the f t X CEO took a stake in Ramin Hood Shoes her up twenty percent pre market, and you mentioned Tesla the big news this morning. Elon must have cleared the Twitter takeover is on hold pending details. Twitters down eighteen

per sent premarket. Tesla is trading higher. In other news, U s casline futures jumped to an intur day record, and wrapping things up, Krispy Kreme raised the by a h s BC ups cuntin neutral at JP Morgan and first Solo was upgraded over at Piper Live from the first to breaking news Bestcombill Maloney, Karen all right, Bill, thank you, and to hear live breaking news over her Bloomberg Time. Squawk on your terminal. Squ a w K. That's a Bloomberg business flash. Now here's Michael Barr with

Moore on what's going on around the world. Muncle, Karen, thank you very much. A new forty billion dollar round of eight Ukraine has wide bipartisan support in Congress, but it's being held up in the Senate by one senator. Republican Senator Rand Paul of Kentucky says there should be a watchdog keeping eye on how the money is used in Ukraine. All eyes on House Minority Leader Kevin McCarthy

and four other Congressional Republicans subpoena by House investigators. The January six committee begins public hearings next month, with a final report due out this fall. In baseball, the Yankees were winners. The Mets beat the Nationals for one, the Orioles in AES one. In the NHL playoffs, there will be a deciding Game seven after the Bruins beat the Hurricanes five to The Rangers will try to avoid elimination

in Game six tonight against the Penguins. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalist and analysts more than hug twenty countries. Michael bar this is Bloomberg. Karen, all right, Michael, thank you. It is sixty nine on Wall Street. Returned to news and science and technology now with the Bloomberg and j I T. Stammer report brought U buy New Jersey Institute of Technology ranked top fifty

national public university by US News and World Report. N j I T is Future in the Making. Learn more at n j I T dot E d U and now here's It's making News and science, technology, engineering, and math. Apple is taking aim at unionization efforts in its US retails stores. The company has begun holding meetings restore employees and posting notices that extolled the benefits of working for Apple. So far, no Apples store has unionized, but multiple locations

are working with labor groups. For the first time, scientists have grown plants and soil from the Moon, collected by now says Apollo Astronauts. Researchers had no idea if anything was spread in the harsh moon dirt and wanted to see if it could be used to grow food by the next generation of lunar explorers. Results are published in Communications, Biology and The World Gotta look at the first wild but fuzzy image of the super massive black hole at

the center of our own Milky Way galaxy. Astronomers believe nearly all galaxies have these giant black holes at their center, where light and matter cannot escape, making it extremely hard to get images of them. Like gets chaotically bent and twisted around by gravity as it gets sucked into the abyss along with superheated gas and dust. And that's a Bloomberg and j I t Stem report. Nathan Okay, Karen,

thank you. We are live from the Bloomberg Interactive Broker Studios where it's six fifty one on Wall Street Time Now to check what's going on in d C. Some of the top stories in our nation's capital include a to Ukraine delayed over one senator's objection, President Biden under fire over nationwide baby formula shortage, and the January six

Committee sending subpoenas to fellow members of Congress. Also making news, J Powell confirmed for a second term as Federal Reserve Chair, and Bloomberg Government reporter Emily Wilkins is back with us. So Powell did get a bipartisan vote of confidence in the Senate, Emily, but just about everybody is acknowledging that he and the rest of the Fed have a very tough road ahead as they are laser focused on inflation. Absolutely, Nathan.

I mean, they not only have to address inflation, but they also have to make sure that the country does not wind up going into a recession, which is a very real threat that that we are hearing experts bore and us about um. And at this point, I mean, he does have that bipartisan support. I mean, he had eighties senators of both parties back in, but he also

had senators from both parties voting against him. Concerns over his his regulatory policies can earns one from Senator Bob Menendez of New Jersey, about the fact that he hadn't promoted um or latinos within the FED, and so these are, you know, several different things that the concerns were raised. But I think a lot of the question is just what sort of happens next, what the Fed is able

to do. Um, He's got the vote of confidence going forward, but but they're certainly um concerns about exactly how he's going to make sure to both bring inflation down and avoid that recession. All right, let's turn to the other major news that came out of the Senate, the vote on Ukraine AID. I think we had been expecting that this was going to move relatively quickly, but it's on hold now. And that's the thing about the Senate, Nathan.

If you want something to move quickly, you have to have all a hundred senators on board, and this time you only have ninety nine. Senator Ran Paul of Kentucky. He's a libertarian, he's a fiscal hawk, and he's very concerned about the amount of funding going over to Ukraine. It's not the not the number that he is a concern with. He wants language to be in this legislation

that allows an oversight. Uh, to happen within the federal government for how the money is spent um and this is something that you know, as far as as a political thing, it seems like there could be some potential support for that. But the real crux of it is that they want this bill to move quickly on May nineteenth, So next week President Biden is says that he's going to run out of the funding that Congress has already

allocated for Ukraine. That's funding the White House is used to help with military, to help with humanitarian a to help Ukraine continue to fight this war with Russia. And it runs out on the nineteenth. Biden can't, you know, he can't authorize money. That's Congress's job. So that's why they really need to rush this bill through. Um. That's

the sense of urgency. And at this point, and even it does look like this bill is going to pass, it's just going to have to go through a longer process and it won't be abound until next week when we finally see it actually clearing and going to Biden's task. Well, speaking of things running out, Emily, a lot of parents know and have known for months that baby formula has been missing for many grocery store shelves, and now this

is turning into a pretty significant political issue in Washington. Oh. Absolutely. I mean the idea that that parents can't feed their babies is you know, it's it's a heartbreaking thing to think about. Um, it's certainly something that both parties have really started stepping up on this past week. Um, you've heard Republicans obviously they're not the party in charge, they

can't move legislation. They have introduced a bill, but really from what you're seeing right now, Republicans just very strongly criticizing Biden, saying that you know, this is his economy. Uh, this is his inflation, it's his supply chain shortages, and really just putting the blame squarely on him. But Democrats are planning to begin holding some hearings on this. We're going to see at least one next week, one the week after with the FDA Commissioner as well as some

of these baby formula companies. I mean, part of the issue is the recalls that we've seen. Um, we could also potentially see additional legislation from Democrats really addressing this. And you did see the White House yesterday meeting with formula manufacturers talking about ways to increase supply, calling on the FTC and state attorneys to really crack down on any sort of price gouging that's going on at this point.

But this has really become a very hot button issue in Washington and certainly something that's impacting many families out there that are struggling to find the formula they need on grocery store shelves. We had another big hot button issue emerge as well from the House January sixth Committee now issuing subpoenas against fellow members of Congress. This isn't something that we see very often in or on Capitol Hill.

This is really unprecedented, Nathan. I mean the January six Commission, they've asked to hear from a number of lawmakers, including those who they've now put the subpoenas against. It is really, um quite a serious step and a president breaker to have something like this, Um you had. It doesn't seem like many of these members are going to be responding

to these subpoenas. UM. Kevin McCarthy, the Majority leader and likely the the Speaker of the House next year, UH, told reporters that, you know, the January six Commission really sort of downplaying it, continuing to call it um a sham and trying to de legitimize it Um. That's a very similar stance that many of his colleagues on the Republican side share as well. Um. And these Republicans, I mean, they know what is going to happen next, even though

they have been subpoena Um. This is something that's likely going to wind up going to the courts, and the courts tend to take some time with this. It can take years for the courts to decide whether or not that someone's needs require to appear, and they don't have they don't have a lot of time left at this point before the November elections. Paul, Thanks for the update, as always from the government reporter, Emily Wilkins. Read more

at Bloomberg dot com or on the Bloomberg terminal. Listen to Bloomberg Radio in Washington and Bloomberg one and one oh five point seven FM HD too. As we continue to watch developments around Twitter this morning, Karen, what's going on there? Yeah, Nathan, and this is pretty much the latest with Elon Musk tweeting that is forty four billion dollar takeover of Twitter is temporarily on hold until the billionaire receives more information about the proportion of fake accounts now.

Musk is looking for more details on a recent filing from Twitter that stated fake accounts on the social media platform came to less than five percent of its monthly daily active users, and fighting fake accounts has been a cornerstone of Musk's bid to reform Twitter. In a statement announcing the deal, he revealed that he wanted to defeat spam bots and authenticate all humans and make his algorithms open source. Twitter shares their down about sixt right now.

Tesla shares higher, up five and a half percent. Will have more on this story on Bloomberg surveillance, which is straight ahead for Nathan Hager. I'm parin Moscow. This is Bloomberg