Bloomberg Daybreak: May 17, 2022 - Hour 1 (Radio)

City's health chief urgess people to mask up. I'm Michael blarn More. Ahead, I'm John Stashdow and sports. The Yankees stay red hot with an easy win in Baltimore. The Islanders have hired a new coach. That's all training. Ahead on Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nineteen and around the world. Old on Bloomberg Radio dot Com

and via the Bloomberg Business App. Good morning, I'm John Tucker and I'm Karen Moscow in US Dock Index futures are on the rise this morning. We're coming up to five out one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg

right now, SMP futures about fifty seven boys. Douth futures have three five NASDACK futures have two hundred forty three ten year treasury down nine thirty seconds, held two point nine one percent, and they yield on the two year two point six zero percent. John and Karen. The rise and futures follows a late day sell off on Wall Street. The tech of the NAZAC was hard as say, falling more than one percent. New York State manufacturing activity unexpectedly

contracted at May. And that's the concerns of slowing growth recession of years are real. According to Voyas in your portfolio manager Barbara Reinhard, we think that the world is going to go from worrying about inflation to worrying about the recession probably in just a few months time. So we think that this is the very beginning of the worries that we see happening for the for the economy.

Will the Investment Management's Barbara Reinhardt made the comments on Bloomberg Business Week her weekdays from two to five pm Eastern on Bloomberg Radio. Meantime, John Cash is king. That's according to the latest Bank of America Fund Managers survey, which shows cash levels among investors hit the highest level

since September of two thousand one. Stankflation fears are the highest and fourteen years investors see hawkish central banks is the biggest risk, followed by a global recession, and speaking in central banks, we could get more clues on the path of interest rate hikes. Six FED officials speak at events today. The highlight comes this afternoon when the Fed shair j. Pale's interview for a live Wall Street Journal event.

Well in Asia, overnight, John stocks were winners. Technology shares climbed as investors assessed China's effort to stamp out COVID. Look at the recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, Good morning Karen. The m s c I Asia Pacific Index gain for a third session, as longest winning streaks since mid March. China's tech companies jumped on optimism. Beijing may ease up on a year long

clampdown following a meeting between regulators and corporate giants. Adding to the positive time, Shanghai reporting three days of zero community transmission. This is a milestone that could lead officials to start unwinding the punishing lockdown and reopening. Stocks also rose in Japan after the nation announced it will allow small tourist groups on package tours into the country this month on an experimental basis. In Singapore. Juliette Sale Bloomberg Daybreak,

Thanks Julie Attorney to Corporate News. Fresh developments this morning on whether Elon Musk will pursue he is takeover of Twitter. Let's get the latest live from Bloomberg's REDNEYA Young, Good morning, Na, Good morning John. Elon Musk says he'll proceed with his forty four billion dollar Twitter takeover only if the social media giant proves that less than five percent of his accounts are fake. He shared even more of his skepticism yesterday at a Miami Tech Prince, estimating that bots make

up at least twenty percent of all Twitter accounts. Musk shocked the market last week when he tweeted that his offer was temporarily on hold, and doubts are growing that he'd be able to pull off his acquisition and that he may consider dropping his bidding price. Shares of Twitter right now are down about two percent in early trading. Live in New York. I'm gonna need a Young Bloomberg day break. I need to thank you. We moved from

one billionaire now to another. With news from Warren Buffett, the Berkshire Hathaway chairman, said goodbye to one longtime bank steak. He made a big bet on another. One of filing shows that Buffett ended his long running investment in Wells Fargo in the first quarter and has now invested roughly two point nine billion dollars in City Group. Shares of City are up more than four percent this morning. It's a big day on the retail front. This morning, we're

gonna get earnings from Home Depot and Walmart. Bloomberg's Tom Busby has more on the outlook for Walmart. The focus for investors is whether sales continued to grow at the nation's biggest read sailor and largest grocery seller amidst stubbornly high inflation, or whether consumers were forced to pull back a bit last quarter. Bloomberg consensus calls were adjusted earnings per share of a dollar forty eight on revenues of just over nine million dollars and comp usls forecast rise

two and a quarter percent. Tom Busby, Bloomberg Daybreak, Right, Tom, thank you. Also, this morning, before the market opens, the government issues economic data on retail sales. We get a preview from Bloomberg's Lisa Mateo. The median forecast calls for a game, but Bloomberg Economics anticipates slower growth in April retail sales. The reason signs of stress as inflation chips away at household finances. Consumers are turning to credit to

pay for essentials such as food and gasoline. That doesn't bode well for discretionary spending. Lisa Mateo, Bloomberg Daybreak, Thanks Lisa. We now turn to developments involving the war in Europe. Senators have advanced the Ukrainian aid bill with wide support. Amy morriss is details from our Bloomberg N one newsroom in Washington. The Senate overwhelmingly moved the bill forward with

a vote of eighty one to eleven. The measure would give forty billion dollars an aid to Ukraine, including money for weapons training and humanitarian aid. Now this was a procedural vote. A final vote on the measure is expected as early as tomorrow if all lawmakers wave rules on debate, and then from there it would go to the President's desk.

Last week, Senator Rand Ball of Kentucky held up the bill over concerns about the cost and how the money would be spent in Washington, I'm any more as Bloomberg daybreak right, Amy, thank you. And it appears that Finland and Sweden's bid to join NATO is hitting a roadblog. Turkey's President er Juan is for the brakes on the move, saying he won't allow the countries to join the alliance because of their stances on Kurdish militants. Here Toman caused

Sweden a nesting ground for terrorists. Even if he does not end up blocking membership, are Towan could extract concessions from NATO to allow it. And this morning we're seeing futures rallying ahead of the cash open on Wall Street. Right now, the Dawn Future is up three hundred fifty eight points smp E. Many futures up sixty one and the Aztec futures up two hundred and fifty five, and the benchmark ten year yield right now at two that

is up to basis points. You're listening to Bloomberg Daybreak, it's five. He'll set about Wall Street. Time to bring in Michael Barr with more on what else is going on in New York and around the world. John, thank you very much. President Biden heads to Buffalo, New York today after Saturday's deadly mass shooting at a supermarket. Authorities say the gunman is an eighteen year old white supremacist.

Buffalo Mayor Byron Brown. It's been hard. Uh, it's shocking, it's painful, and um, I've worked hard to hold this community together. Mayor Brown says he will also talk with the President Biden about federal gun laws in New York. In vigil was held at Harlem Church last night for the victims in Buffalo. Among those in attendant said Bethel

Gospel Assembly, New York Attorney General Letitia James. We are in pain for the thirteen individuals who were shot, in the ten beautiful lives that were lost, and for their families that are suffering, and for the Buffalo community that is in so much pain, so much anger, along with a G James, New York Mayor Eric Adams also spoke. Adams talked about Buffalo and an eleven year old girl who was shot and killed by a gunman riding a scooter in the Longwood section of the Bronx last night.

We have to be consistent because if you take the life of young Kiera merely because of which she lived, you no more less demonic than a person that took the life of those ten innocent people in Buffalo. Mayor Adams also slam social media. New York City health officials are urging New Yorkers to wear masks in the all indoor public settings as the city approaches high risk COVID

nineteen alert status. New York City has been averaging around thirty six hundred reported new cases of COVID nineteen per day over the past week. Five states old primary elections today ahead of the November of mid terms. In Pennsylvania, both parties hoped to pick up an open Senate seat In the Republican primary. TV star Dr menmn Oz has former President Trump's endorsement. Oz is running against former Bridgewater CEO Dave McCormick. But conservative commentator Kathy Barnett is surging

in the polls Bloomberg Government Elections, reported Greg Jarrow. Sometimes when you have races where we have two front runners beating in on each other, sometimes a third canic can kind of steak up there by surprise. And but Barnett did a rise in the polls in the last seven or ten days, Bloomberg's Greg Jarrow. As for the Democrats, Lieutenant Governor John Fetterman, who had a health scare, probably,

according to Jarrow, as enough of elite still win. The primary Global News twenty four was a day on air and on Bloomberg Quicktake powered by more than twenty seven hundred journalists and anolists in more than a twenty countries. And Michael bar this is Bloomberg, John, Michael, thanks, he is South by ten Wall Street ten out for the Bloomberg Sports Update. Good morning, John Stan show Ki Morney. John.

Here in mid May, the Yankees and still yet to reach double figures in the lost called another way, this one in Baltimore with a big hit coming from an unlikely source. Is hit in the air down the right field line, a long run per cent and there and it is it is a home run. Wow. He hit one right down the line and it just got over the high wall near the pole. Well, that is really something. A three run home run for Trevino w f an

Yankees first home run hit by a catcher. Jose Trevino and Kyle had got Yoka, both batting under two hundred. It's hardly hurt them. They are now twenty six and nine, nineteen wins in the last twenty two games. They get the Oil six to two. H Donaldson and Anthony Rizzo had back to back homer's in the ninth inning. Luis Sevrena allowed only one hit Yanks out hit the Oriels eleven and three Yanks and only allowed seven hits over

the last two games. Mets and Cardinals reined out. City Field will play a straight doubleheader today after a weekend with a total of seven game seven's. The NBA and NHL playoffs took a night off back. Tonight started the NBA's Eastern Conference Finals Celtics and he in Miami. They met in these finals two years ago. Miami won that serious. Stanley kept second round starts tonight with in stint battle Tampa Bay and Florida. Also St. Louis at Colorado Rangers

and Hurricanes game one and Raleigh tomorrow. The Islanders, who just fired coach Barry Trots promoted his assistant Lane Lambert. Pg H champions FT is off Thursday, and tells so that if any champ, Phil Nicholson is not playing Tiger Woods is as his legs severely injured in that car after the last year, is feeling better. John Stash Howard

Bloomberg Sports. John alright, thanks John, and we're in the green right now Premarket Dow futures three forty eight points, SMP futures, they're up sixty at the Nanstic futures right

now two hundred and fifty four points. If you're listening to Bloomberg day Break, just ahead, can't we shop until we drop Walmart sales under close scrutiny as they report earnings, will preview their earnings report with Jen Bartashes of Bloomberg Intelligence, Markets, Headlines and breaking news twenty four hours a day at Bloomberg dot Com and Bloomberg Business at and at Bloomberg

Quick Tape. This is a Bloomberg Business Lash and I'm Karen Moscow stocks in Europe are rising along with US stock index futures as risk appetite returns to markets, royal bike, concerns about global economic growth, searching prices and policy tightening.

Treasury yields are rising. The dollar for its reading whicheck the markets every fifteen minutes throughout the trading day on Bloomberg, and technology shares are gaining this morning, with NASDACK futures jumping up more than two percent of two hundred fifty seven points does in P futures up sixty down futures have three hundred forty three the ten your treasury down five thirties seconds, YELD two point nine zero percent yield

on the two year two point six zero percent. Nimex herd oil is up to ten percent or twenty three cents at a hundred fourteen dollars forty three cents of barrel. Comex gold up seven tenths per cent or thirteen dollars ten cents at eighteen twenty seven ten announced the euro one point oh four eight one against the dollar, British found one point to four eight six, the yen one twenty nine points to nine, and bitcoin this morning is up more than two percent at thirty thousand at five

hundred eighty dollars. Today, we are watching for report on April retail sales at at day thirty Wall Street time and nine fifteen it's industrial production. Then at ten Business Inventories, Home Depot, and Walmart are among companies scheduled to report earnings today. That's a Bloomberg business flash. Now here's Michael Barr with more on muss going on around the world. Uncle,

good morning, Good morning, Karen. President Byton travels to Buffalo, New York this morning to meet the families the victims of sun to Day's supermarket shooting that left ten people dead, all of them black. This as we learned the eighteen year old suspected shooter was allegedly inspired by the race whose great Replacement theory. Five states will hold primary elections today. Pennsylvania is trying to decide an open Senate seat ahead

of the mid terms. Other states holding primaries are Idaho, Kentucky, North Carolina, and Oregon. In baseball, the Yankees beat the oriole six to the Mets Games reigned out the Red Sox, and Giants won the Nationals. And He's lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts in more than a hundred twenty countries. I'm Michael bar This is Bloomberg John. Thank you, Michael. It is five

twenty on Wall Street. We are live in the Bloomberg Intract to Brokers Studios. This is Bloomberg Daybreak. Elon Moss says he will proceed with his forty four billion dollar takeover of Twitter only if the social media giant can substantiate claims about the proportion of bots its service. Let's take a deeper dive this morning. We were joined first by Giles Turner, Bloomberg Technology Managing Editor. Can you explain

to me the big deal about bots? Yeah, it's very difficult to work out how many bots there are on the on the platform. I do have simply both for the Elon Musk saying that surely the CEO of Twitter must know how many fake accounts on the system. We spend a lot of time trying to figure it out ourselves. I remember doing the brexit um sort of breakdown. We were trying to work out how much of the accounts

were fueled by um outside influence perhaps from Russia. Clever people who us are trying to do it as well, and it turned out to be incredibly difficult once you drilled down into these accounts. Um So, But keeping here for Musk is how much of the accounts are fake? Obviously he thinks they've drawn to him. There are a lot of fake crypto accounts are obviously going to be

drawn to Musk's own account. He probably finds that a very frustrating, but also it may well be a very clever bartering tool to get a lower price on Twitter. Obviously seen the shares come down quite a lot recently. All Right, so what's Twitter is saying at this point?

Presumably what they've disclosed comes in the we're getting regulatory failings for a bunch of companies, right, Yeah, Well they've always said that they think it's around five percent, but they've also always said they think it could be a lot more because it's very difficult to at least it is from the arguments for Twitter, it's very devil to know exactly which accounts are fake, which I'm also it's worth adding here that the people who do make these

fake accounts have got incredibly good at this They've had quite considerable amount of time to practice their skill. It is very difficult to work out which are fake and which are not. How it is not impossible, and he is study posting that they don't have better understanding of of this figure and figure accounts. I mean, this is no grad insight. They don't generate any revenue or anything

for for Twitter. No, well, they can drive. There's plenty of spectation and why these exist, um, not only for political reasons, but also for for driving or trying to influence the algithm to help potentially get different messages across

from various different people. Um, you know, be a fake advertising for example, or for political reasons, be the way no one likes them math for sure, but there are It's on that point that there are bots that are actually valid and Twitter does allow bot certain bots to be on their on their system, for example, things that the recent popular ones that is a pot that's been following various UM yachts and private planes of oligarchs, for example. People have found those very useful. Um, So there is

a place of them. However, you've got to think of the perspective that even muster is coming from as being one of the most active users on Twitter, also someone who talks a lot about flitter currency, and there seems to a lot more fake accounts um mainly for trying to trick people into giving up their own money. Um, and they okay, Mosco telling me a very successful Giles

nice a lot Chiles Turner, Bloomberg Technology Managing Editor. With that explanation, let's continue our coverage of this story this morning with one of the top analysts covering these UH companies, Dan Ives web Bush Securities, joins us this morning, Dan, why is this so chaotic? Look? I mean, it's turned into a circuit show because the issue is that the bots seek accounts. It was probably noon that it would

be higher than what Twitter actually talked about. But I believe this is really ultimately must getting cold feet with the deal, looking for a scapegoat, and you know, it's really turned into what I'd say it was the Twilight Zone situation. He's trying to ballad the deal billion dollar breakup or drive a much significantly lower priced Twitter's back into the wall. There's no other bitter and this has really become you know, like like I said, it's a

stirker show. Um, do you mentioned the breakup fee. Is there a way to break up this deal up and uh not and avoid the fee? No. I mean at this point he'd have to pay the fee. But then legally, in terms some of the due diligence, there's a lot of questions if he could even walk a bit because of this back claim, because you know this is gonna now potentially go through a back and forth that could

ultimately end up in the courts. We got to hear from Twitter's board, but this is really the issue Twitter News. If they just say okay, no deal, we walk away, then ultimately this is doctor goes under thirty dollars and and that's really the issue for Twitter's board is that they really need to ultimately sit there and wait to see if there's a lower price. And the way that Musk has handled this and I think all around has been a black eye. H So, as far as investors

are concerned, are is this is a disservice to the investors. Oh, I mean, I say it's unconscionable in terms the waves hounds in the public market. This is typical due diligence you do behind the scenes, and it's something where market sen dramatically three injin billions come off of his Golden Child test lessons. It's all started. I think you overestimated that his bonds are falling this morning after yesterday's a

late sell off. Nancy Davey, founder of Quadratic Capital Management, says the market is still too optimistic about the feasibility to tame inflation. So much of the inflationary shock is not necessarily a result of the level of interest rates. It's other reasons that are pandemic related. So it's a really challenging time to try to thread the needle, and I think that's why we're encouraging investors just to be

very diversified. Nancy Davis of Quadratic Capital Management says if inflation does not come down with higher rates, she worries about stagflation. That's surely on the mind of the Fed. As we hear six Central Bank officials to day, including Chair J. Powell. He'll be interviewed during a live Wall Street Journal event later this afternoon. While turning to Capitol Hill the mid term election less than six months away,

inflation is likely a major issue for voters. Senator Dick Durbin of Illinois spoke to Bloomberg's David Weston about how President Biden is trying to curb rising prices. But the president's doing releasing oil from the Strategic Patrol named Reserve, making moves in agriculture. He's doing everything within his control and power to move this inflation away from American families. It's a tough challenge. Illinois Senator Dick Durbin speaking with

David Weston on Bloomberg's balance of power. Catch the program weekdays at noon Eastern on Bloomberg Radio and Television. And Karen on the economic front, We're gonna get more of a sense of consumer sentiment today. That's when the government issues data on retail sales. We also get earnings from Walmart this morning at overseas stocks in Europe and Chinese text socks clide with hopes that China will ease COVID restrictions.

And finally, John, as you've been telling you, there are fresh developments this morning on Elon Musk's pursuit of Twitter, and Bloomberg's Ranita Young joins us live with more. Good morning, Ranita, Good morning Karen. Elon Musk says he'll proceed with his forty four billion dollar. Twitter takeover only if it proves that less than five percent of its accounts are fake. He shared more skepticism yesterday at a Miami tech conference, estimating that bots make up at least twenty of all

Twitter accounts. Musk shocked the market last week when he tweeted that his offer was temporarily on hold, and doubts are growing that he'll pull off the acquisition and he may consider dropping his bidding price. Live in New York, I'm Ranita Young Bloomberg, day break right, Grenita, thank you, and shares of Twitter down about three percent this morning.

Futures this morning are on the rise. SMP futures up sixty one points down, futures have three D fifty five, and nasday futures up two D fifty seven, or about two point one percent. Ten year Treasury down eight thirty seconds yield two point nine one percent. They yield on the two year two point six zero percent. Nine max Screwed oil is up seven tenths percent, or seventy five cents at a hundred fourteen dollars ninety four cents of

barrel comexs. Gold is up seven tenths percent or twelve dollars fifty cents at eighteen twenty six fifty announced the euro one point oh four seven eight against the dollar. Bitcoin is higher. It's at thirty thousand, six hundred sixty dollars. Straight and hand your latest local headlines plus the check of sports. This is Bloomberg. Thanks Karen, find thirty three on Wall Street and let's bring in Michael barn Now with more of what else is going on in New

York and around the world. John, thank you very much, sir. President Biden travels to Buffalo, New York today he will try to heal a community following Saturday's mass shooting. Authorities say ten people were killed inside at top supermarket by an eighteen year old white supremacist. Buffalo may Byron Brown said he plans to talk to the President about gun laws. The availability of guns is just far too great in this country. Guns too often fall in the wrong hands,

illegally and illegally. Something has to be done about that at the federal level. That finally has to be the resolve to change that. Mayor Brown told ABC the shooting shakes your sense of security in New York. Vigil for the Buffalo victims was held at a Harlem church. Last night, Mayor Eric Adams spoke at Bethel Gospel Assembly and criticize

social media. What happened and Buffalo is no different than the sickness of social media that has music telling our young people to go after each other and shoot each other. Along with Erik Adams, New York Attorney General Letitia James was also in attendance. New York City health officials issued an advisory urging New Yorkers to mask up as the city approaches high risk COVID nineteen alert status. The Health Commissioner says we should wear face cut of rings at

all times in public indoor settings. Five states old primary elections today. In Pennsylvania, both parties hope to pick up an open Senate seat in the Republican primary. TV star Dr mem and Oz has former President Trump's endorsement. However, conservative commentator Kathy Barnett is surging in the polls as for the Democrats. Bloomberg Government Elections reporter Greg Jarrow was asked about Lieutenant Governor John Fetterman's announcement that he had

a stroke last week. It's big news to occur in the winning days of the campaign, but I think Utterman's lead in the polls over his Democratic opponents, led by Representative Connor Lamb, was probably substantial enough where he's probably gonna win the primary anyway. Bloomberg's Gregg Jarrow. Other states holding primaries today are Idaho, Kentucky, North Carolina, and Oregon.

Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hund your journalist and analysts more than a hundred twenty countries. I'm Michael bar This is Bloomberg, John Michael, Thank you, l five thirty six on Wall Street. Time to out for Bloomberg Sports Updating, and here's John than. Another night and the Yankee victory, this one in Baltimore started the four game series. Yanks be the Oil six to two.

The big head Not for Aaron Judge, you got the night off rather from light hitting catcher Jose Travino three run homer hit down the line in right field, Josh Donaldson and Anthony Rizzo with back to back homers of the night. Luis Severino aout only one hit. Was not a great night for Joey Gallo. Baltimore's first batter, gallow dropped a fly ball went for a three base air. He also went over five with four strikeouts. But the Yanks still win and they've now taken nineteen of their

last twenty two. Mets and Cardinals reined out double header today at City Field. The Islanders just fired their coach Barry Trots. They are replacing him with his top assistant, Lane Lambert. It's a good day, um, something that you know, I have been preparing for for a long time. UM, throughout many years in the game and many years as a coach. UM. Uh and uh So there's there's a level of excitement for sure. Lambert worked under Tracks for eleven years at three different places and filled in for

him for several games this past season. As for the Rangers, off to Raleigh for Game one of the Hurricanes tomorrow night. The two teams met two years ago in the Bubble. Carolina swept the best of five qualifying round series. Year ago, Phil Nicholson won the p G H champions You have at the age of fifty. He's not playing this p

G A that begins Thursday and Tulsa. Nicholson criticized for comments he made about joining a new Saudi back tour eighty two year old Jack Nicholas says he was offered the job of running that new tour and was offered one hundred million dollars and Nicholas turned it down due to his loyalty to the PGM. John Stashatward Bloomberg Sports John Thanks John. It is now five thirty seveled on Wall Street time for the Tri State Business Report, and

for that we're joined by Bloomberg's ed query. The spread of the omicrons subvariant is stalling Wall Streets returned to the office based on prett A mon J Coffience dandwhich sales in the financial district. Bloomberg Spread Index shows the chains transactions last week in the area that includes the head offices of firms like Goldman Sachs, with the lowest since February. New York State manufacturing activity unexpectedly shrunk in May for the second time in three months, reflecting plunges

in orders and shipments. Additional disappointing results may raise concerns about a slowdown in economic activity. The former Hampton's home of the late Johnson and Johnson chief executive officer James Burke has been sold, Sources tell Dow Jones it went for close to its forty eight million dollar asking price. The roughly four acre ocean front estate is in Sagaponack.

It includes two distinct parcels, according to the property's listing agent, Christopher Covert of Compass, that your Bloomberg Trying state business report. I'm Ed Corey said five thirty eights on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's stick in now with their global industry and for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Gina Servetti and for w w b B,

I'm in Chicago. I'm reporting that Bowen's biggest customer in China is dropping plans to add more than a hundred seven thirty seven Max jets to its fleet. I'm Caroline Head Complain by David Digital Radio in London. We're reporting on the latest UK unemployment numbers showing the labor market getting even tighter, but real wages are dropping as inflation skyrockets. I'm Steve Polas Content ten Wins in New York. We're looking at how the Bloomberg Fred Indeck shows Wall streets

already sluggish. Returned to office plans are taken a step back. I'm in Cory on w w J in Detroit. I'm reporting the owners of an Auburn Hills, Japanese diner are being charged with filing false tax return and those are some of the stories are Twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It is on Wall Street. The following is an editorial from Bloomberg Opinion to soaring prices at Another worry for

American consumers an alarming shortage of baby formula. The nationwide out of stock rate has surged past and it could take months for supplies to return to normal. Two basic problems underlie the shortfall. The first was a contamination scare at one of the US's largest formula production plants. The facility was shut down and has yet to come back online. A second, more intractable problem is that decades of bad

policy have led to extreme market concentration. For example, excessive terrorists and other trade barriers have all but shut out imported formula in a well functioning market. The temporary shuttering of a single plant wouldn't create a national crisis when hopes this mass will help policy makers accept an important fact. Protectionism doesn't make economies more resilient. Instead, it diminishes competition, limits choice, and creates new vulnerabilities. This editorial was written

by the Bloomberg Opinion Editorial Board. I'm David Shipley. For more Bloomberg Opinion, please go to Bloomberg dot com, slash Opinion or open go on the Bloomberg Terminal. This has been Bloomberg Opinion and Bloomberg Opinion editorials could be heard every weekday. At this time, terminal customers could reboard at O P I N Go Bloomberg Daybreak, brought you by

the New York Community Trust. Your name will live on as a champion of the causes you care about for years to come through a charitable big question of the New York Community Trust. We're more at Philanthropist dot n y C 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, and we continue to watch shares a Twitter this morning down almost four percent right now, as you've been reporting on Musta clearing he won't proceed with his forty four billion dollar takeover of Twitter unless the social media giant can prove bots make up fewer than five percent of its users. SNP futures are on

the rise this morning. They are up sixty six points down futures have three hundred eighty six, and NASTAG futures are higher, up two hundred sixty eight. That's up two point two percent. The decks in Germany's up one point six percent. The ten year treasury down seven thirty seconds, yield two point nine zero percent. The yield on a two year two point six one percent nine max Scrude oil is up half percent, or fifty eight cents at a hundred fourteen dollars seventy eight cents of barrel comes.

Gold up six tenths percent or eleven dollars at eighteen twenty five an ounce. The Euro one point oh four seven four against the dollar, British pad one point two four eight, the En one twenty nine point three five, and taking a look at Bitcoin this morning, it's higher, up more than two percent at thirty thousand, six hundred dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Uncle Karen,

thank you very much. Ukrainian troops who have been holding out for weeks at a steel plan in the port city of Mariuple have finally surrendered to Russian forces. Injured soldiers have been taken to Russian and controlled territories in eastern Ukraine. Five states will hold primary elections today. Pennsylvania is trying to design and open Senate seat ahead of the midterms. Other states holding primaries are Idaho, Kentucky, North Carolina,

and Oregon. In baseball, the Yankees beat the Orioles six to the Mets game reigned out the Red Sox and Giants won the Nationals, and A's lost. Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than twenty seven hunder journalists and analysts in more than one twenty countries, and Michael Barn this is Bloomberg. Michael, thank you very much. It is now five forty nine of all story. We are lying for

the Bloomberg interranton Broker studios. Down down and check what's going on in d C. And some of the top stories in the nation's capital include President Biden today heading to Buffalo after the mass shooting over the week camp, the US Centres passing the forty billion dollar aid package for Ukraine, the Biden team easing its Cuba stance, and the US set to extend the COVID nineteen public health emergency. Let's take a deeper dive into these stories this morning.

We are joined by Bloomberg Government reporter Emily Wilkins in our Washington bureau. Emily, good morning to thanks for being with us. Let's start with the visit of the President of Buffalo. He's not going to be able to offer much except for his sympathies, not much in the way

a policy change. Is very interesting Bloomberg story of this morning on this Yeah, I think there is a certain reality um that's really got crystallized after the Sandy Hook shooting in fourteen and it's just continued to persist where any sort of gun reform legislation, either in terms of background checks, um, assault weapons fans, some things that are actually pretty popular with with the wide victory of American

have really been unable to pass in Congress. But you know what, John, we actually might be seeing some legislation move due to this shooting. Remember, Um, this is tragic shooting. Of course, ten dead, three wounded. Eleven of those thirteen people were black. And we know that the shooter. Uh, you know that that he subscribed to a fringe conspiracy theory UM dealing with race. Uh. This is being investigated

as a racially motivated crime. And what we're going to see today, at least it's on the schedule, is for the House to begin movement on a domestic terrorism bill. This was stalled several weeks ago over some concerns from civil rights groups and progressive Democrats. But this has new momentum after the shooting, and there's a chance that this could be a sort of prime discussed debated today and

primed for a potential vote later this week. Um, this is something that lawmakers think can at least pass the House. Of course, they're huge questions about whether it's going to be able to get um some Republican support needed to move forward, but it is at least one piece of ledgislation that lawmakers believe they can move today. Um. But overall,

I mean, even I think it was very telling. You know, when you heard President Biden give his remarks UM after the shooting over the weekend, he didn't call for gun reform legislation. I think that's just the mindset where everyone's at in d C. They just know that it's it's

really just not possible with the current political atmosphere. Uh. In the Bloomberg story, there's a paragraph about replacement theory, a few paragraphs a section about it, the replacement theory that apparently inspired the alleged gum of the eighteen year old white man, and it's causing a blowback for some conservative lawmakers, right, Yeah, particularly at leastophonic. She is the head of the GOP caucus. That makes her kind of

the number three Republican in the House. Um. A young woman, a new mother, certainly someone to watch within Republican politics. And she has pushed um this theory before. She's put ads on Facebook um saying that, you know, accusing Democrats of planning what she describes as a permanent election insurrection by a lot by granting amnesty to undocumented immigrants and

allowing them to vote, giving them these majorities. This kind of a lot of people have drawn links between that and what you saw from this eighteen year old shooter kind of saying that there was this grand scheme from groups in power to replace white Americans with UM, other you know, minorities. UM. And so she's received some criticism

for that. She's pushed back saying that that's not what she meant, that this is focused mostly on immigration amnesty UM, whether or not those who are currently UM in the country unauthorized to get the ability to vote. UM. But certainly, I would say expect this to be something that you continue to hear about, particularly as we get into this election season from Democrats. Yeah, real quickly aid package for Ukraine.

How closer we are are we to to this? We could be less than forty hours away by for ours away, maybe even at this point make that forty six. Um. We are looking at potential passage on Wednesday, is what I'm trying to say, uh, and that we that could be Wednesday, it could be Thursday. UM. But at this point that has cleared one necessary procedural hurdle UM, and it's getting very close. Once, of course, it passes the Senate.

If there is no potential changes to that text, it's going to go straight to Biden stask where he can sign it. And that's forty billion for Ukraine for military, for humanitarian aid for refugees um and this is funds that you've basically heard from from all corners saying that are still very badly needed for Ukraine to continue to push Russia back from this invasion. Bloomberg Government reporter Emily Wilkins, thanks a lot. You can read more mouth these stories

on Bloomberg dot com or the Bloomberg terminal. You can follow the latest on Bloomberg ready on Washington. Bloomberg ninety Night one on one oh five point seven f M h D two. Karen, all right, John, thank you. It's five fifty four on Wall Street. Time for the Bloomberg Law Report, brought to you by American Arbitration Association. Business disputes are inevitable oversel Faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years.

More at a d R dot org. Now here's a legal story we're watching, and it brings us back once again to Elon Musk's bid for Twitter. Concern is growing that Musk could walk away from the forty four billion dollar acquisition. He's been questioning Twitter's publicly disclosed data on the percentage of spam and fake accounts on the social media service. Beget more on the legal elements involved in this story, and with that, Bloomberg's JOm Grosso speaks to

Eric Talley, a professor at Columbia Law School. Former President Trump said, there's no way that Elon Musk will buy Twitter at such a ridiculous price. Do you agree with that? It's seeming more and more unlikely that Musk is going to buy Twitter. Well, at last I checked, former President

Trump had not been to law school. And one of the things that is considerable complication here is that Elon Musk has already entered into a contract in which he substantially obliges himself to make steps towards buying Twitter at a cash price that he's already stated. So the economics of this deal I think are probably causing Elon Musk to think twice about whether he really has buyer's remorse here.

Man I suspect he does, if for no other reason, because he ended up paying a price that was probably higher than it would have been had he just waited for a few more weeks. That having been said, history books are filled with people who are buying companies who then get some buyer's remorse and try to get out of that, but the contracts that they've entered into make it either hard or impossible to get out of it.

So one big factor here is trying to determine to what extent the deal that Must ended up entering into with Twitter is gonna end up tying his own hands later on or forcing a fairly difficult renegotiation with the Twitter board sitting on a fair amount of bargaining power. How messy would it be for Musk to back out of the deal? If you just sort of stare at the document itself. This is a document that looks for what they say in the industry, relatively seller friendly the

company that's selling itself. There aren't that many ways that Musk can walk away. Now, there are some aspects to it that make it look like he could. Right, there's a termination fee that he would have to pay of a billion dollars if he were to walk away, But that's really only one of the provisions in the deal, And another one which is far more important, is a provision that's called a specific performance provision, and that's just

legal ease for the either side. If the other side wants to try to back out, they can essentially force the party or get a court order forcing the party to go forward. And that's a provision that's in this deal. It doesn't provide that many outs for Elon Musk. The one that it might help provide is if for some reason he's unable to secure financing for the deal, then that might allow that specific performance provision to fall away.

So you know, I think a lot of people are sort of thinking that the disclosure he made this weekend was essentially trying to set the stage for possibly engineering a failing of the financing of the deal. And that's Eric Talley, your professor at Columbia Law School, speaking at the Bloomberg Stone Grosso. Catch 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 podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at bilg go. And our top stories are straight ahead as Bloomberg Day Break continues, This is Bloomberg