Bloomberg Daybreak: May 16, 2022 - Hour 1 (Radio)

violence in Buffalo and other cities as well. Plus Pennsylvania's lieutenant governor suffered a stroke because he runs from the U. S. Senate. I'm Michael barn More, I'm John stash Our Sports. The Rangers are moving on. They beat the Penguins in overtime. In Game seven, it went for the Yankees, a tough

loss for the Mets. That's all s train ahead on Bloomberg Daybreak on Bloomberg Eleveing Freeo, New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty, San Francisco, Syrius x M one nineteen and around the world Old on Bloomberg Radio dot Com and via the Bloomberg Business app. Good morning on John Tucker and I'm

Karen moscowis and P futures are lower this morning. We're coming up to five o one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg S and P futures down four points. Now futures are up twenty two and NASDAG futures down thirty one. The decks in Germany is up tenth of a percent. Ten year treasury little change yell two point nine two percent, and they yield on the two year

two point five nine percent. Nine back screwed oils down half percent or fifty seven cents at a hundred nine dollars ninety two cents of barrel, and the euro one point oh four three five against the dollar. John and Karen, we begin with disappointing data out of Asia. China's economy contracted in April as COVID lockdowns, dragging the industrial and consumer sectors down, and Bloomberg's day Breck Asia anchor Brian Curtis has details retail sales contracted eleven point one percent.

That was weaker than a projected drop of six point six percent. Industrial output down two point nine percent from a year ago and worse than an estimate of a modest game. The unemployment rate rose to six point one percent, and that was higher than the forecast of six percent. Now. Despite the slowdown, China's Central Bank held back from cutting interest rates. Brian Curtis Spoomberg Day Break, A right, Brian, thank you all. Back here in the US, economists at

Goldman Sachs are cutting their forecast for US growth. Let's get the latest live from Bloomberg's rand A Young in New York. Good morning, Reni Down, Good morning, Karen. Goldman Sachs economists see the US growing two point four percent this year at one point six percent three. That's down from two point six percent and two point two percent previously, and it's an adjustment to reflect the shakeout in financial

markets as the Federal Reserve titans monetary policy. Goldman Sachs also projects the unemployment rate will rise to three point seven percent by the end of next year, after falling to three point four percent in coming months. Live in New York. I'm Nita Young, Bloomberg Day Break. Thanks for Nita. On the same day, Goldman cut its forecast the firm's former bloss Lloyd blank find says the US is at a very high risk for recession. It's definitely a risk.

If I were running a big company, I would be very prepared for it. If I was a consumer, I'd be prepared for it. But it's not baked in the cake. Former Goldman SACS EO Lloyd blank Find made the comments on face donation from CBS, Catch the program Sutday Afternoons on Bloomberg Radio and one other note on Goldman this Morning.

In an effort to retain talent, the bank will allow senior staff to take an unlimited number of vacation days as according to a company memo seen by Bloomberg News, junior employees at Goldman still have limits on vacation, but they'll be given at least two extra days off per year. And Karen another big company making moves to attract workers Walmart. He is unveiling a fast track path to a job as store manager, as the retailer seeks to bolster it's

apply of managers in a tight labor market. Let's get more from Bloomberg's Dug Prisoner. The position of store manager typically pays more than two hundred thousand dollars a year, and traditionally the job takes years to get, but now Walmart is launching its College two career program. It will provide classroom training together with hands on experience and mentoring for recent and soon to be grad's. Top performers will

be offered a role as an emerging coach. The position starts with pay of at least sixty five thousand dollars a year, with a goal of becoming a store manager within two years. In New York, on Doug Prisner Bloomberg Daybreak, all right, Doug, thank you, well, we do have some possible deal news this Monday morning, The Wall Street Journal is reporting Jet Blue Airways plans a tender offer for

Spirit Airlines at thirty dollars a share in cash. The paper says Jet Blue plans to appeal directly to Spirit shareholders by launching the tender offer and hopes of pressuring Spirits management to re engage in negotiations. Traders appear skeptical, though Spirit shares are trading near twenty dollars in early trade. And another major story we're following, Karen involves the mass

shooting in Buffalo over the weekend. The Justice Department investigating it as an act of racially moated violent, racially motivated violent extremism. The shooting left ten people dead and three wounded. A lot of the people shot were black, and eighteen year old white man was arrested. President Biden discussed the incident at the US Capital yesterday. We must all work together addressed to hate. The remains a stay. I'm the sole American hearts are heavy once again, but a resolve

must never waiver. President Biden and surging police departments to spend federal law enforcement eight, saying it can help reduce gun violence well. John turning overseas now is another dramatic change, triggered by Russia's invasion of Ukraine, and NATO members are rallying around Finland and Sweden after the country's announced plans to join the Alliance. To get details now from Amy

Morris in our Bloomberg newsroom in Washington. At the NATO ministers meeting in Berlin, U S Secretary of State Anthony Lincoln said Washington will support whatever decisions the two countries make. Long supported NATO's up indoor policy and the right of all countries to decide their own futures, their policies, their security arrangements. NATO members rallied around Finland and Sweden, with

one country Turkey, voicing concerns. Sweden is sending diplomats to Ankara for talks, and NATO's Secretary General John Stoltenberg says he does not expect Turkey to delay the membership procedure in Washington, I may me Moore as Bloomberg daybreak all right, thanks Amy, another no doubt of year of involving the war in Ukraine. Germany says it plans to quit importing Russian oil by the end of the year. That's even if the European Union fails to agree on a band

in its next set of sanctions. Rassia Shire, German oil consumption has already declined to twelve percent from about thirty five percent before the war began. Well, John, the price of wheat has skyrocket has since the start of the war, and it's climbing again today. Wheat price is stored by the x change limit after India moved to restrict exports. That shows how tight global food supplies are at the moment.

We has risen about six this year. That's increased the cost of everything from red to cake and noodles again us in p futures are lower. This morning, straight ahead, your latest local headlines, plus a check of sports. This is Bloomberg Parfects Karen five O seven on Wall Street. Let's bring in Michael barn Now with more on what else is going on in New York and around the world. John, thank you very much. Sarah Moore on the mass shooting

in Buffalo. Vigils were held across Buffalo after ten people were killed and three others wounded, and what officials are calling a racially motivated attack at a busy supermarket, Police saying the suspected gunman, who was eighteen in white, had researched the area that is about seventy black. Peyton Gendern appeared in court and pleaded not guilty to murder. New York Governor Kathy Uncle. I'm calling out the social media platforms where this hate be skewed and people are learning

how to create guns and violence and weapons. Governor Hoco called for government action to control the spread of guns. One of those killed was a church dincin the church's pastor, Russell Bell. It boggles my mind at this young man traveled two hundred miles four hours to target our community. Pastor Bell says the victim, Heyward Patterson, who was helping to put groceries in another person's car when he was

shot and killed. I'm ass shooting in California left one person dead and five others heard after a gunman opened fire inside a church in Laguna Woods, Orange County. Authorities say the suspect as an Asian man in the sixties who entered a Taiwanese luncheon at the church. Orange County Undershare of Jeff Halleck says the gunman was disarmed by

members of the church and held until authorities came. We believe a group of church goers detained him and hog tight his legs with an extension court and confiscated at least two weapons from him. Under Sheriff Jeff Allix says they don't believe the gunman lives in the area. Two people were killed three others injured in a shooting near a flea market in North Harris County, Texas. The Sheriff's

department says a fight led to that shooting. Gun violence in Milwaukee forced the city to impose a two night curve few for people twenty one and under. More than twenty people was shot in less than two hours in downtown Milwaukee over the weekend. One of the front runners in the race for a U. S. Senate seat in

Pennsylvania sideline because of a stroke. Pennsylvania's Lieutenant Governor John Fetterman, who is atop the polls ahead of Tuesday's Democratic Senate primary, says he is on his way to a full recovery. The Biden administration today released a housing supply action plan meant to help create thousands of affordable housing units in

the next three years. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists, analysts and more than a hundred twenty countries. And Michael Barr. This is Bloomberg, John, Michael, thank you, Yes five tena of Wall Street. Pan. That's time for the Bloomberg Sports Update. Good morning, John Stenshow, Good morning John. It was only a first round series, but man, what a series it was. Rangers and Penguins.

It began at the Garden with triple overtime. It ended back at the Garden overtime once again. Fifteen seconds with the Dana Plantage top the right circle. Blue shit shoots. It's over pary scores and the Rangers of one Game seven hit overtime on leave a ball sounds sounded DVPN from the Ranger Day Maloney kind emotional. They're the Rangers lost that triple overtime series opener. They never let in the series until last night. They had trailed three games to one, and they won three in row and had

to come from behind in all three. They trailed last night with six minutes left, Meeker's advantage that tied the game and then artemider and on the power play one at at four OT forty two saves for Igor, says turk In. The Penguins had fifteen more shot. It's on a round to Game one with the Carolina Hurricanes Wednesday in Raleigh. The other game seven also went overtime. Calgary beat Dallas, but Dallas Mavericks won their Game seven in Phoenix by thirty threes, and the Sons, who had the

NBA's best record, are out the West Finals. Beat Dallas against Golden State, will be Miami and Boston. In the East, Celtics won Game seven over mil Walk by eight, the Mats to the ninth. Thendn't scored twice had the bases loaded. Pete Alonso at first appeared to have drawn a game time walk with the first base umpire called it strike three. In Seattle one eight to seven. Yankees won five one at Chicago despite being out hit four to two. The Pirates were out hit four nothing but one one nothing.

That Cincinnati reads through a no hitter and lost. John Stashower Bloomberg Sports, John all right, Johns, thanks very much, and ahead of the cans shop it on Wall Street. Right now, the futures have turned mixed, dall futures of ten points, SMP futures six points slower, and the nansa key many futures. They are down forty one points. You are listening to bloom Bird Daybreak and just ahead, are the stock evaluations anymore attractive. We're gonna speak with Lori

kalpas In of RBC Capital Markets. You're listening to Bloomberg Daybreak, markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Victape. This is a Bloomberg Business lash and I'm Cameron Moscow stocks in Europe are little changed. SMP futures are lower as traders way China's latest measures to support its economy after poor data fuels concerns about the global out book. And we check the markets every fifteen minutes

throughout the trading day. On Bloomberg, U S and P futures down seven points at own future is little change, NASTACK futures down forty six. The decks in Germany's down abou two tenths of upper set ten year treasury little change. He'll two point nine two percent. They yield on a two year two point five nine percent NI make Scrude oil is down third pent or forty one cents at a hundred ten dollars twelve cents in barrel Comic school is down six tenths percent or ten dollars seventy cents

at seventeen ninety seven fifty announced. The euro one point four two five against the dollar, British found one point two two two six, and the yen is at one twenty nine point three eight and bitcoin's lower down more than four and a half percent at twenty nine thousand, five fifty dollars. That's a Bloomberg Business Lash. Now here's Michael Barr with more unless going on around the world. Muchael,

Good morning, Good morning Karen. NATO members rallied around Finland and Sweden after they announced plans to join the Alliance. It marks another dramatic change triggered by Russia's war in Ukraine. Authorities say the hite, eighteen year old gunman who killed ten people at a Buffalo supermarket during a rampage that targeted black people, had previously made a threat at his high school, but they say Peyton Gendron was never charged. In the NHL playoffs and exciting Game seven, the Rangers

advanced after beating the Penguins and overtime for three. In the NBA Playoffs, the Celtics won their Game seven against the Bucks. In baseball, the Yankees won, the Mets, Red Sox, Orioles, Nationals, Giants, and A's all lost. Global news twenty four hours a day on air and on Bloomberg quick Take, powered by more than twenty hundred journalists and analysts, are more than a hundred twenty countries. I'm Michael Barr, and this is

Bloomberg John, Michael, Thank you. Five twenty on walst reading and we are lying for the Bloomberg Interactor Brokers Studios. This is Bloomberg daybreak volatility that saw the SMP five hundred dipped to a thirteen month load last week before rebounding. Reminder that investing right now not for the faint of heart. Let's get you set up for the trading day head. We're joined out by Lori Calvacine ahead of US Equity

Strategy at RBC Capital Markets. Lorie, Happy Monday to you, UM, stocks looking at any more attractive from the evaluation perspective, A happy Monday to YouTube John. And let me just say, I don't think investing in stocks is ever for the

fame of heart, particularly now, UM. But look, I think that last week we did see an important development, which is that the three different versions of the top down price to earnings multiple that we watch for the the SMP five hundreds, the one based on last year's earnings, this year's earnings expectations, and next year's earnings expectations UM, all three of those are actually now slightly below their

long term averages. And that's not to sit here and say that stocks are super cheap or deeply undervalued, but I do think we've made an important shift, which is that valuations are no longer a problem for this market, and valuations are starting to be a reason to buy this market. And you have the sort of say, what did this milestone achieve? I think it sort of tells us that it is okay to go out and bargain hunt. Now.

What's so the institutional sentiment right now? Institutional sentiment is pretty lousy, but perhaps not quite as bad as it's been at certain past extremes. I think it's getting there in a hurry. We've talked about how institutional investor sentiment, while it has been bad, has really need to catch down to retail investor sentiment, which has been sitting basically

at its worst level since the financial crisis. When we look at the CFTC data that we get weekly to monitor institutional investor sentiment, though I did talk about it a note we put out this morning, how you started to see some very important progress. We have finally started to get back down to some important lows um and if you look at contracts like the Russell two thousand or the Dow UM, we're actually at or below financial

crisis lows. So I think that you know, it's hard to ring a bell at the bottom on an institutional investor sentiment, but I think you can at least start having that conversation of the four D fifty seven companies in the spire that have reported that Scent actually delivered positive earning surprises, how much comfort does that offer? So, look, I think markets are always trying to guess where earnings are headed and are less reactive to where earnings have been.

That being said, I do think it's worth noting that the earnings back drop has been very, very resilient, and the reason that's important is that it speaks to the resiliency of corporate America to get through just about every crisis that uh, this economy UM and geopolitical situation can throw at it. So I think that we do have to take note of that resilience, and I think one thing that it has done is kept the earnings backdrop pretty stable for now, which really allows us to understand

the valuation opportunity that is starting to open up. Um. From a KEE perspective, do you get a sense that the cost pressures are being passed on to customers to what extent of the margins being eaten? Away. Um. Absolutely, you know, we we're seeing some margin resiliency. Um. Of course companies, you know, some are are doing a better job than others of executing through. But if you look at transcript searches for commentary on pricing, UM, they're absolutely

through the roof. We saw that back in January, we're seeing that again recently. And you know that that is how companies are defending their margins and also passing the prices along to consumers. You know, it's really one of the key reasons for the inflation problem that we have right now. Um. But for now, most companies are telling us that they are still able to pass pricing through.

It's hard to account out the American consumer history would dictate that we we get retail sales figures tomorrow, what do you expect. So look, I I don't forecast the weekly or the monthly retail sales data, but what I will tell you is that we are also getting a number of important retailers who are reporting earnings coming up as well. And I think between the two, you know, what investors are really gonna want to see is signs of that consumer resiliency that is science that it is continuing.

I think one of the things I've noticed in reporting season so far is that good focus companies, things related the cars, things related to home homes, those have been more likely to to note some problems and blame the macro um if peoples on the services side things have been quite stronger. So that's one of the things I'm going to be looking for and upcoming data releases. Are we still seeing that shift from goods to services? And does the overall consumers still look okay? Seconds left? Can

we take refuge in defensive shares? Look, I understand that there are big risks to market. You know, if if the if the recent lows don't hold, I could see another big drop um. But look, I will tell you defensive sectors are getting so overvalued relative to secular growth. In particular, I have a very hard time recommending them at this point. And I know I shouldn't ask, but

I will. What's the recession risk? The recession risk, you know, if you look at the Bloomberg data among professional forecasters, I think it's around thirty that that's a little bit higher than what our economists would tell you. My view is that they've risen, but it's not it's not anything that's been predetermined yet, I think the jury is still out,

always putting glory on the spot. Thanks a lot law appreciated Lori Calvacine, ahead of US equity strategist at RBC Capital Markets and head of the cash open on Wall Street. The futures right now all in the red dal futures down twenty points. Speman and futures there are eleven points lower hand than as the Emmitti futures down fifty nine points.

As we look at treasures right now, the tenure yield to ninety one on the two year yield in the US at two point five n you're listening the Bloomberg day Break Day Bray, brought to you by the New York Community of 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 Vibe from the Bloomberg Interactive Broker Studio in New York, Bloomberg Living Free on to Washington, d C, Bloomberg one to Boston, Bloomberg one, O six one to San Francisco Bloomberg nine sixty to the country, Sirius XM too one, nine ten, and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. He's five thirty on Wall Street. Good morning, I'm John Tucker

and I'm Carrot Moscow. We're just about four hours away from the open of US trading. Let's get you up to day in the news. You need to know at this hour, we've again with the economic data out of China. Industrial output and retail sales fell in April. Well, unemployment climbed. COVID lockdowns are being blamed for the constraction. Chat A, chief Asia economist and Morgan Stanley says the outlook for China remains strong once it moves past its COVID zero policy.

You do need solution to this near zero COVID policy. It's not about just the economic policy easing itself. Now. We need to see that, you know, economy gets going with freeing up of restrictions on mobility. Chat Aa says China's supply chain constraints also appear to be easy bank here in the US, Golden Sax cutting growth forecast. Bloomberg's Reney the Young joins US Live in New York with more.

Good morning Rene, Good morning John. Goldman. SAX economists see the US growing two point four percent this year and one point six percent ine. That's down from two point six percent and two point two percent. It's an adjustment reflecting the shakeout in financial markets as the at A reserve titans monetary policy. Golpen also projects unemployment to rise to three point seven percent by the end of three after falling to three point four percent in coming months.

Live in New York. I'm gonna need a young Bloomberg day break, all right, we need to thank you all. Goldman's former leader Lloyd blank Find is warning the US should prepare for a recession despite the Fed's best efforts to avoid one. I think the FIT has very powerful tools. It's hard to finally tune them, and it's hard to see the effects of them quickly enough to alter. Former Goman Zack CEO Lloyd blank Find spoke on Face the

Nation from CBS, which airs Sunday on Bloomberg Radio. Another note on Goldman, the bank now plans to allow senior staff to take unlimited vacation days in an effort to retain talent that's according to a memo scene by Bloomberg. And we're also tracking fallout from the mass shooting in Buffalo this weekend. It left ten dead and three wounded. Eleven of the people's shot were black. President Biden spoke about the arrest of the eighteen year old white suspect.

The Justice Department is stated publicly that is investigating the matter as a hate crime, racially motivated, active white supremacy, and filing extremism. President Biden giving the remarks at the National Peace Officers Memorial in Washington, d C. And overseas, John, it's another dramatic change, triggered by Russia's invasion of Ukraine. Finland and Sweden announced plans to join NATO over the weekend. Debate on the matter kicks off in both countries this morning.

Formal applications could come later this week. Your local headlines, check his sports All straight Ahead and this is Bloomberg. Ali. Thanks Karen thirty three on Wall Street and let's bring in Michael barn Now with more on what else is going on in New York hand around the world, John, Thank you very much. Sir Moore on the mass shooting in Buffalo, New York Governor Kathy Hoko called on social media companies to do more to crackdown on racists, anti immigrant,

and anti Semitic rhetoric on their platforms. Of her HOCl says the man accused of shooting and killing ten people in the Buffalo supermarket was radicalized online. Hocal says the accused eighteen year old shooter broadcast the attack, which took place in a predominantly black neighborhood, and had posted a white supremacist manifesto online. The governor also called on the government to control the spread of guns. This is not Ukraine when they're defending their lives. This is the United

States of America. We don't need those weapons in our streets and on our hands. Governor hokel spoke at Macedonia Baptist Church in Buffalo. A mass shooting in California left one person dead and five others heard after a gunman opened fire inside a church in Laguna Woods, Orange County. Authorities say the gunman was disarmed by members of the church and held until authorities came. Shootings also took place

in Texas and Milwaukee. The leading Democratic candidate in the US Senate race in Pennsylvania state Lieutenant Governor John Fetterman suffered a stroke. Fetterman released a brief video oh on Twitter with his wife, saying it happened on Friday. It was on Friday. I just wasn't feeling very well, so I decided, you know what, I need to get checked out because I was right as always. It's not clear when Fetterman will return to the campaign trail ahead of

Tuesday's primary. North Korean leader Kim John Une blasted officials over slow medicine deliveries. The North has ordered his military to respond to the largely undiagnosed COVID nineteen crisis that has left one point two million people ill with fever and fifty dead in just a matter of days. 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. I'm

Michael Barron. This is Bloomberg, John, Michael, thank you, five thirty five Love Wald Creek found down for the Bloomberg Sports Upday Morning, John Stashing John. When the Rangers lost Game four in Pittsburgh seven to two, things didn't look good.

They trailed three games to one, only twice in franchise history had one a series from down three one, but they came from two goals down to win games five and six, and they trailed again last night with under six minutes to play at it around, take it by Coppers at Challis tie Game seven with five forty five a go, it's three all at the Garden and so like Game one that went triple overtime overtime, in Game seven, the Rangers got a power play er, Tammy Pinera, who

had as some with quiet series, scored four votes and the Rangers won four three and won the series for three. And then I'll face the Carolina Hurricanes with Game one Wednesday in Raleigh, also over time. In Game seven at Calgary, the Flames beat Dallas three to two, so Dallas split Game seven's the Mavericks and a stunner blew out the Suns and Phoenix one to ninety. They're up thirty at halftime. Dallas will play Golden State in the NBA's West Finals.

The Celtics will take on Miami, and the Boston won Game seven over Milwaukee one o nine to eighty one. So the NBA Game sevens were blowouts. The two NHL Game sevens both went over time. The Yankees had only two hits and still won five to one at Chicago. Another great adding by Nestor Cortez is the r A now one point three five Mets ninth Did he come back? Fell Steward lost the Seattle eight to seven, The Mets

loser series for the first time. The Cincinnati Reds threw a no hitter and lost in Pittsburgh one to nothing. John Stashward Bloomberg Sports done all right, Thanks John, five thirty seven on Wall Streets. Time down for the Tri State Business Report, and for that we're joined by Bloomberg's ed Querry. New York will create a state agency to supervise the unregulated pharmacy benefit manager of industry. It's part of an effort to keep drug costs slow and protect

consumers and small businesses. The new Pharmacy Benefits Bureau under the state Department of Financial Services will be charged with lcensing pharmacy benefit managers, the third party administrators of prescription drug plans for health insurers. New Jersey saw to present increase in twenty twenty one total personal income every state in the country saw an increase in the second year of the COVID nineteen pandemic as the economy continued to recover.

According to an analysis by the Pew Charitable Trusts, Connecticut is about to become home to another food truck park. Hartford's West Side Square follows the highly successful food Truck Paradise at Long Wharf on New Haven Harbor and Gastrow Park in West Hartford. That your Bloomberg Try State Business Report. I'm Ed Corey, alright, thanks said, and he is eight on Wall Street. Bloomberg Radio is on the air from

San Francisco to New York, London to Hong Kong. Let's second now with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve photos Can on ten ten Wins in New York. We're talking about Goldman Sachs offering unlimited vacation time for top executives. I'm Steven arel on Bloomberg d A bing Digital radio in London. We've been hearing from the CEO of low cost airline Ryanair.

Michael Leary says he's optimistic about a potential economic downturn because it would help his business. Um Corney Jannahoe on ktr H in Houston, Walmart fast Track in College grats two jobs as store managers and Lisa Mateo and on w b Z in Boston, I'll be reporting on how Jet Bloom hasn't lost its fighting spirit id Gory on w w J in Detroit. I'm reporting four GMT stalantists

will reinstate mask mandates in the most Michigan factory. And those are some of these stories are twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. Food prices have risen to record levels around the world, fueling poverty, hunger, and instability.

While there are no quick fixes to the crisis, that are off, countries should at least not make it worse. Unfortunately, too many are compounding the problem with protectionism. At least twenty nations have imposed curbs on food exports in recent months, affecting around seventeen percent of calories traded globally. Such restrictions risk setting off a cascade effect, worsening food inflation for everyone. It's happened before. Similar export curbs cause global food prices

to rise some thirteen percent during the Great Recession. Foreign ministers gathering at the United Nations to discuss food security on ME eight should pledge not to add new trade restrictions and to lift those already imposed as swiftly as possible. In a crisis this complex, the first principle should be to do no harm. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash Opinion or opie I n Go

on the Bloomberg Terminal. This has been Bloomberg Opinion and Bloomberg Opinion editorials can be heard every weekday at this time. Terminal customers can read more at opie I n go and ahead of the open on Waalsbury down futures fifty one points lower. This is Dave break still ahead on Bloomberg Day Break. Greg Valier, the chief UN's policy strategist at a g F Investment, stops by to walk us

through Finland and Sweden's bid to join NATO. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business at and at Bloomberg Quick Tape. This is a Bloomberg Business Flash and I'm Karen Moscow. Stocks in Europe are lower along with US Dock Index futures as traders wait. China's latest measures has afford It's economy after poor data fuels concerns about the global outlook.

Check the markets every fifteen minutes throughout the trading day on Bloomberg Guess and P Futures down fourteen points down, futures down forty one now is dack Future is down sixty eight. The decks in Germany's down four tenths of

upper cent. The ten year treasury down three thirty seconds, held two point nine three percent yield down, the two year two point six zero percent nine max Scrude oil is down four tens per cent, or forty two cents at a hundred ten dollar seven cents of arrol Co mix school down about half percent or eight dollars forty

cents at seventy announce. The Euro one point oh four one seven against the dollar, British band one point two two three zero the end is at one nine point three five and Bitcoin this morning down more than four and a third percent at twenty nine thousand, six hundred and seventy dollars. SU's a Bloomberg business flash. Now here's Michael Barrow with more on what's going on around the world. Michael Karen, thank you very much. Finland announced that it

would seek NATO membership after Russia's invasion of Ukraine. Sweden's governing body also indoor is the idea of applying to join the Alliance. Ahead of his planned visit to Buffalo tomorrow, President Biden is saying that it's time to address the hate that remains a stain on the soul of America. The mass shooting that left ten people debt and three wounded at a supermarket in upstate New York is being

described as a racially motivated massacre. In the NHL playoffs and exciting Game seven, the Rangers advanced after beating the Penguins in overtime for three. In the NBA playoffs, the Celtics won their Game seven against the Bucks. In baseball, the Yankees one, the Mets, Red Sox, Orioles, Nationals, Giants and As all lost Global News twenty four hours a day on here and on Bloomberg Quick Tank, powered by more than twenty seven hundred journalists and analysts more than

a hundred twenty countries. Michael Barren, this is Bloomberg, John Ryan, Michael, thank you, five forty nine of Wall Street. Was Michael mentioned some of these stories NATAL members rallying around Finland and Sweden after they announced plans to join the alliance. Let's take a deeper dive ended this and some of the others stories out of Washington this morning with Greg Valier, the chief US policy strategist at a g F Investment.

Happy Monday, Greg, thanks for being with us. Hey, um, let me ask you just the European security landscape seems to be changing right before our eyes. What is your impression this morning? Well, I think there's three big stories. First, as you mentioned new members for NATO, I think it will occur. This is exactly what Putin did not want to have happened. Number Two, I think the Russian drive

has stalled. In fact, there are reports that in the northeast the Ukrainian troops are are pushing the Russians backwards. And number three, I think there's continued speculation about Putin's health, lots of rumors. I worry if he got replaced, you could replace him with someone worse. But I think his health is going to become a big wild card. Well that's his uh, you got a question his mental health as well, so that there's that factor. Um, there are

no strangers to the alliance. Finland and Sweden they trained with Natal forces in the past. I gotta wonder just how quickly they can be integrated into the Alliance. It's probably gonna take a year or so, but so that that will be uh, somewhat of a negative, but I do think it's going to happen. You have to worry about other countries like Moldova, which are not members. You have to worry about countries that are members, like Estonia

and Latvia Lithuania that could still be threatened. But I think for now, as I mentioned, I think Putin has his hands full just in Ukraine, where Russian troops are suffering from terrible morale and lack of supplies. So what's Putin's likely response at this point, Well, the logical thing to do would be to cut a deal, maybe with Makrone being a mediator. But I'm not sure Putin is

inclined to do the logical thing. I mean, a a reasonable outcome would be the Russians taking a sliver of the East Ukraine, evening their country getting membership in the European Union. But at the same time, I think the more likely scenario is that this is going to drag on for months and months. And you've got to say, John, the big market stories here, food shortages, fuel shortages, supply shortages that could persist for months to come, you know,

keeping the inflation fears alive. How does this all played back here at home? Foreign relations doesn't matter when it comes to the November elections, the mid term elections. That's a really interesting question because late last week, when the House voted for the forty billion in aid to Ukraine, fifty seven Republicans voted against it in the House, mostly

all the Conservative Republicans. So there's now a real rift among the Republican party saying that we shouldn't be spending this money, we should devote money to needs at home. So if this work can't go on without the end before this becomes a political issue, I mean, we're divided over everything, whether it's wearing masks or Ukraine, and I think this could be a big divisive issue. What what is the issue going to be in the November elections?

In a word, inflation. I don't think there's any other possibility, with the exception, of course, of abortion, but I think even even that would be second to the issue of inflation, which is persisting. It's not just baby formulas, the shortages everywhere. I think that Biden has a real uphill fight. The issue is not whether the Republicans will win the House. The issue is by how many seats, And I think they could win the House by twenty five or thirty seats.

They only need five. Gregg, always a pleasure. Thanks for being with us this morning to explain some of this. Gregg value the chief of US policy strategist at a GF Investment, Karen John. Thank you. It's on Wall Street time for our Bloomberg The Law Report brought to you by a American Arbitration Association. Business disputes are inevitable, resolve faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More at a

dr dot org. Let's get to the legal stories we're watching this morning from Bloomberg's Jeff Bellinger. The Internal Revenue Service as new telephone technology scheduled to go live by the end of next month, will let taxpayers do things like get copies of transcripts and set up payment plans. The Southern District of New York ruled that the production of a musical comedy called Vape is a parody and

does not infringe on the copyright for the musical. Greece and Appellate Court refused to revive a lawsuit against Wells Fargo over claims that the bank failed to provide meal breaks to employees. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg Market Intelligence. Find out more at Bloomberg Lawn dot com. Right, Jeff, thank you Now. Another legal story we're watching this morning.

Former President Donald Trump's new lawyer doesn't have a big midtown law office or a huge firm behind her, but Elena Habba is a true believer in Trump and his spearheading very aggressive legal strategies in the high priority legal fight she's taken over, including challenges to the New York Attorney General's probe of his business. She replaced several better known lawyers who would work for Trump for years. For more of Bloomberg's doing, Grosso speaks to Bloomberg Legal reporter

Eric Larson. Eric start by telling us a little about Elena Habba. So, Elena Habba is a thirty eight year old lawyer from New Jersey. She founded a small law firm that now has five lawyers total. She is a member of Donald Trump's Bedminster golf Club. She's fairly well to do. She's originally from New Jersey, and she told me that she wanted to help Trump out because she is a true believer in his legal causes. She has an aggressive legal strategy, which Trump likes. Yeah, you know,

she's been very aggressive in court. You know. Trump says this was his idea to get more aggressive. And I think that in Elena Habba he found someone willing to carry out this aggressive strategy. So it started out with your call that Trump had two lawsuits against him by different women, Ee Gene Carroll, New York advice columnist and a former Apprentice contestant, Summerservos. They both claimed that they were sexually assaulted by him and that he defamed them

by denying it. So those cases had been going on for a while, and Elena Habba took over his defense and basically threatened counterclaims against them under the anti slap laws. And you know, alleging bad faith lawsuits had been filed against Trump sum Reservos. The apprentice contestant dropped her lawsuit after that, and in the case of eging Carol, a judge ruled that the claim was coming too late. But Trump was real happy about that Zervos case going away.

He congratulated her on that. He printed out a news article and signed it, and she has a framed copy of that hanging on her wall. At any rate, he gave her some more matters to handle, and then she went on the offense against his other courtroom foes. Right, She's filed some lawsuits that seemed designed to get headlines and also looked like they could be easily dismissed. I mean, certainly.

I spoke with legal experts at the time that these lawsuits were filed, who said that they seemed pretty weak, that they were frivolous perhaps, So yeah, we'll see what happens. These are three separate lawsuits, one filed against the New York Attorney General Leticia James, claiming that her investigation into Trump's company is politically motivated in bogus and seeking an

injunction to force the investigation to end. The other was filed more recently against Hillary Clinton, the Democratic Party and several others, alleging a big conspiracy to undermine Trump while he was in office in regards to the Russia investigation and things like that. And then another lawsuit filed against his estranged niece Mary Trump and The New York Times, seeking a hundred million dollars in damages for her acting as a source for the newspapers award winning article about

his finances. As Bloomberg Legal reporter Eric Larson speaking with the Bloomberg student Grosso. Catch more of that interview, plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or downloading this 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 SNP. Future is

down sixteen points this morning. Down Future is down fifty six and nast day Futures down seventies seven still ahead. On Bloomberg day Break, I check on the business headlines and all the news you need to start your day. And this is Bloomberg