Bloomberg Daybreak: May 19, 2022 - Hour 2 (Radio)

to address the Baby formulas shortage. The suspected gunman in Buffalo supermarket shooting as a court appearance today, plus Supreme Court justices are getting twenty four hour protection by Michael Barne. More ahead, I'm John Stash, Aaron Swards. Game one to the Hurricanes, they tied the Rangers late and then one

in overtime win to the Yankees and Mets. That's all trended 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 XM one nineteen and around the world. Old on Bloomberg Radio dot Com and via the Bloomberg Business app And good Morning,

I'm Karen Moscow and I'm John Tucker. Bloomberg Day Rank being brought to you by B and B and Y Melon Pershing's Inside Conference back in person June fifteen through the seventh team in Grapevine, Texas. Must attend event for financial advisors. Register today at Insight dot B and Y Melon dot com. And futures this morning are lower. We're coming up to six o one on Wall Street. We checked the markets every fifteen minutes throughout the trading day.

On Bloomberg, SNP future is down sixty two points down. Futures down four hundred fifty seven. At NAST day features down two hundred. Ten year Treasury up eighteen thirty seconds, Ye two point eight one percent. They yield on the two year two point six one percent. And I make screwed oil is down two point three percent, John, and futures are down this morning, Karen. After yesterday's big sell off, the S and P five hundred had its biggest single day drop in nearly two years. Laurens, you know it

wealthwise as investors should proceed with caution. We are playing it more conservatively than more aggressively, both on the fixed income as well as on the equity, so dialing down areas that are high yield or areas like that. Wealthwise CEO Lauren Gilbert Stands say it's unclear when markets could stabilize. Bearings chief global strategist Christopher Smart believes that in spite of the uncertainty, there's still positive signs from the economy.

We still see the US economy is fundamentally strong. The U S consumer is still very strong. Companies are ready to you know, have very good balance sheets. Uh, and we've just come through an earning session, an earning season that has been relatively good. I think it's important to understand that we're still a long way from a recession in the US. Christopher Smart of Bearings is it's a good time to focus on companies with strong business models

and balance sheets. The sell office extending overseas, John and europe equities are falling hard a day after Britain posted record inflation. On Burgh and Bloomberg's Max Ranty joins US live from Brussels with the latest next Good morning, Good morning, Karen and John ys to sell off gathering pace as we get through the European equities session this morning, the

stock six hundred down two point two percent. Right now, it's in the UK that we see the worst losses, down two point six percent for the foot seat one hundred, but it is still the best performing of the major European indussees year to date, despite the challenges post from inflation, which hit a forty year high in those CPI figures yesterday. Live in Brussels, Max Ramsey bloom back daybreak thanks Max starts in Asia also all overnight and Bloombridge. Juliet Sally

joins us with the latest from Singapore. Juliet, good morning, Good morning, Karen and John. The MSCI Asia Pacific Index halted a four day rally, posting its biggest one day decline in to day since early March. Ten Cent shares plunged in Hong Kong, dragging down the hang Sing Tech Index after it posted its slowest revenue growth in the

first quarter since it's two thousand and four listing. Chinese shares also came under pressure on the mainland after stan Chart cut their twenty twenty two GDP forecast to four point one from five percent, but OSSI bones in the local currency rallied after Australia's unemployment level plunge to any fifty year low in April, delivering a potential boon to Prime Minister Scott Morrison's government as it into is the final days of campaigning for Saturday's election in Singapore. Juliette

Sally Bloomberg Daybreak, Juliet thank you. Turning the Fed now is looking more and more likely the Fed will follow through on j Powell's recent hawkish comments to address inflation. Philadelphia Fed President Patrick Harker plans on a series of rate hikes at a measured pace going forward if there are no significant changes in the data in the coming weeks. I expect two additional fifty basis point rate hikes in

June and July. And Philadelphia Fed President Patrick Harker made the comments at a virtual event hosted by the Mid Sized Bank Coalition of America. He anticipates the economy and whether a measured methodical tightening of monetary policy and JP Morgan warning of declining growth economists sound the Bank lowering their outlook of half up percent for the second half of this year, but now forecast growth of two point four percent. The bank science falling stock prices, hire mortgage

rates on a strong dollar has reasons for the revision. John. It's been over a year since Melvin Capital Management suffered severe losses and the Memes stock frenzy, and now Gabe Plotkins firm is calling it quits. Bloomberg's We Need a Young is here alive with more We need a good morning and good morning Karen. Gabe Plotkin is shutting down his seven point eight billion dollar hedge fund. Melvin Capital Management was the most prominent victim of the Meme stock

frenzy of January one, losing billions. Now. The fund posted a fifty five percent loss that month alone, and since then, Plotkin has been trying to claw his way back with funding from some of Wall Street's biggest players. Although the fund showed some promise last year, a plan to reimpose fees frustrated backers and failed. Now Melvin Capitals outlining plans to eliminate fees and return investor cash. I've in New York.

I'm gonned a young Bloomberg daybreak thanks for Rena. Turning to the nation's capital, the White House remains laser focused on easing the baby formula shortage, taking new measures in tanda with Congress to address the crisis. Bloomberg's Amy Morris, as the latest from our ninety one newsroom in Washington.

President Biden invoked emergency powers under the Defense Production Act to try to boost production of baby formula while ordering the use of government planes for imports called Operation Fly. Formula has to be able to speed up the import of infant formula and start getting more formula in stories as soon as possible. Meanwhile, the House path the twenty eight million dollar emergency funding bill for the FDA to address the baby formula shortage. Republicans oppose the measure, and

its future in the Senate is uncertain. In Washington, I'm maybe Morris Bloomberg daybreak, all right, Amy, thank you, and President Biden meets today with Finland's president and Sweden's Prime minister to discust the nations bids to join NATO. Turkey's president has blocked the Alliance from starting the process for both countries. He cites Finland and Sweden's approach to Kurdish

groups that he considers terrorists. Futures this morning lower SMP futures down fifty five points and Down futures down four hundred twelve, NASTAG futures down a hundred seventies seven straight, A hand your latest local headlines, plus a check of sports, and this is Bloomberg. He has six so settled on wolfs for it. Let's bring in Michael Varne now to find out what else is going on in New York

and around the world. Thank you very much. The white eighteen year old gunmen accused of killing ten black people at a Buffalo supermarket is scheduled to appear in court today, authorities say. Shortly before the attack last Saturday, Peyton Gendrin posted hundreds of pages of writings to online discussion groups where he detailed his plans for the assault and his racist motivation. It prompted New York Governor Kathy Hockle to sign an executive order to create a domestic terrorism unit

to address the rise the home grown extremism. Hocal says, among other things, it will alert authorities to anyone who could become violent, requiring the state police to file an extreme risk order of protection under New York's Red Flag Law when they believe that an individual is a threat to himself, herself or others. Previously current law, it's an option to do so. According to Governor hocol Let, Buffalo

be the city where people said enough is enough. Meanwhile, the U. S House passed legislation last night that would bolster federal resources to prevent domestic terrorism in response to the Buffalo shooting. Coronavirus variants are spreading in the US and worldwide. At the Lighthouse COVID Response Team briefing, CDC Director Dr Rochelle Wilenski, urging new precautions in areas where community levels are high, everyone should be using prevention measures

and wearing a mask in public indoor setting. Dr Wilensky says there is an uptick in COVID deaths about two seventy day. New York Mayor Eric Adams said he has no plans to reinstate a mask mandate in public schools, even after health officials this week raised the city's COVID alert level too high. During a news conference, Adam says, we are not allowing COVID to out smartest, and so I'm just really impressed with how we are operating as

a city. Various are going to continue to come. Mayor Adams went on to say we're staying prepared and not panicking. The federal government is warning law enforcement agencies around the nation of the increased potential for extremist violence after the leak of a draft Supreme Court opinion striking down the constitutional right to abortion, The U. S. Marshals Service has

the Supreme Court justices under twenty four hour security. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael barn This is Bloomberg, John, Michael, thank you, Hey. It's now six till on Wall Street. That's time for the Bloomberg Sports Update. He's John Stehower. Thanks John. The Rangers

know all about losing a series opener in overtime. It happened against Pittsburgh that was triple overtime at the Garden. This one was in a Raleigh and it ended just three minutes in. She gets at the Smith's luck to get through as the c MC of the call. Rangers for most of the night had a one nothing leading a Philippino goal, where they didn't score again and Carolina

dominated the third period. They had a breakaway shot go up the crossbar and another shot caramed off the post and then with under threw to go Sebaston Ajo Scord the time goal. Cole's game winner actually went in off the stick a Ranger defenseman Ryan Lingren wild Star to the Battle of Alberta. Calgary led five to one. Edmonton tied the game at six, then the Flames won nine to six. NBA West Finals Game one, Golden State throughout Dallas by twenty five. Yankees won again in Baltimore, three

runs in the first an. They didn't score again, but they won three two is. Garrett Cole went seven inings, and Clay Homes the last two Homes has now thrown almost twenty consecutive scoreless innings. The Yanks go for the four game suite this afternoon at City Field. Mets pulled away after four runs in the fifth inning, five more in the eighth, including a Petlnzo three run homer. Max

Scherzer got the winners. The Mets meet the Cardinals eleven to four, but Scherzer took himself out in the sixth inning discomfort and his left side headed for an m r I, but Scherzer said he doubts that it's anything serious. P g H Championship begins this morning in Tulsa Tiger Woods as an early tea time. John stash Award Bloomberg Sports.

John all right, John, thanks a lot. After yesterday's four percent sell off for the SMP five hundred SMP futures this morning, the point lower right now down fifty four points, the DALLA futures four hundred eleven points, Flower Canada Asta futures are down right now one at seventy five points. You're listening the Bloomberg day Break and just to have lessons from Wednesday's sell off, our own Joe Wisenthal stops

by to look at the bullwhip effect. We'll explain. This is Bloomberg day Break, Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business Out, and at Bloomberg Quick Tape. This is a Bloomberg Business flash and I'm kring Moscow. The global stocks are out deepening, European shares tumbling, and US Stock Index Future is signaling more losses ahead. After yesterday's sell off that ere raised one and a half trillion dollars of

market value from US equities. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg guess and P futures down five points this morning, Down futures down four and NASDAG futures down a hundred seven six. The decks in Germany is down more than two percent. The ten year treasury up eighteen thirty seconds, held two point eight one percent yield on the two year two point

six one percent. No max Screwde oil is down one point six percent out a dollar seventy one and a a hundred seven dollars eighty eight cents of barrel COMEXS Gold up six tenths percent or eleven dollars twenty cents at eighteen thirty three sixty an ounce. The euro one point oh five oh two against the dollar British bound one point two four oh nine again is at one twenty seven point six eight, and Bitcoin this morning is down

half percent at twenty nine thousand dollars. And shall me posting his first quarterly revenue decline on record this after beijing strict COVID containment policies crippled smartphone sales. We are watching for some earnings today from companies including coals. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, thank you

very much, Jarren. The CDC's Independent Advisory Committee meets today to discuss whether to authorize Fiser's COVID nineteen booster shot children ages five to eleven. It's happening as the nation's COVID resurgence reaches its highest point since mid February. The suspected eighteen year old gunman in the deadly Buffalo supermarket shooting has a court appearance today. Authorities continue to investigate the possibility of a hate crime or terrorism charges against

Peyton Gendrin. In the NHL playoffs, the Rangers lost to the Hurricanes to one in overtime in Game one of their series. In the NBA playoffs, the Warriors won Game one of their Western Conference Finals over the Mavericks. In baseball, the Yankees beat the Orioles three to the Mets, Red Sox and Nationals won the Giants, and A's lost. 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 like Labar, this is Bloomberg. Michael Thank you. Six twenty on Wall Street. We are live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. The big story of this week seems to be the absolute implosion of some

huge retail name sames like Walmart, Target, Costco. Join. I guess now, Joe Wisenhal, Bloomberg News Managing editor and host of the Odd Lots podcast, who just happened to write a story with that exact headline, Joe, there's a shift

taking place? What is it? Yeah? I mean, look, you know what people have expected for a long time is that at some point there would be this big shift away from the type of sort of durable goods household goods consumption that we saw for the pandemic, because we know there was this big durable goods boom, but nobody really knew when. And if you think about it, you know, like remember what the story was last fall. Would there be empty shelves on the on the stores for Christmas?

And so what you have is this effect where it's like everybody wanted to load up, everybody wanted to have inventories, everybody wanted to make sure that there was no um, you know, empty shelves. And what we're seeing now is that the consumption shift has happened in a big way really in the last two months, this sort of normalization of consumption. And now we see these huge piles of unsold inventories places like Target and Walmart, and that's a

pretty sort of like to costly. It's a costly shift for them. What am I spending my money on? Now? What if I shifted to? You know what? Target said yesterday that they're seeing a huge surge in luggage sales. So one category that is doing extremely well for Target is luggage. But it's pretty obvious like what that means. It's like the things that we put off for two years are coming back in a big way, and one of them is travel in BacT I know myself, you know,

I'm not even typically a big traveler. I think I've been on like twelve flights in the last month and a half, which is like a record for me. It's like different work things, some vacations, some other traveling. And so this big shift is happening from the type of things that a lot of people simply did not do for essentially two straight years. Okay, so we've we're going from buying stuff to services. Services the biggest part of

the economy. Um that gets a boost. Maybe the prices coming down on the stuff, Joe, the problem solved, Well, you look, it is the big hope, right. I don't know if the problem is solved, but the hope would be at least that when we have normalized consumption, where we when we're our lifestyle but our purchasing petits are roughly what they were in twenty nineteen, that mixtures returned, that then supply chains and offices and all that can more or less work is intended, and that that's that

the FED would love that, investors would love it. We don't know if that will happen, especially on the price side, because look, we know that rents are picking up. That's not something that you know, it is like looks like it's going to go away imminently. We know that services prices are saying firming inflation. So I think the jury is still out on whether the sort of inflation will normalize just when our consumption normalizes, but I think that

will be part of it. And look, we know like there is an element of the current inflation that sort of related to the pandemic, and so the big question is how much we'll probably find out soon what's sort of like real underlying inflation looks like, and that will tell us how much more work the FED has to do to get back to target. What's the bull whip effect? Yeah, I mean, it's this phenomenon that supply chain professionals have talked about for a long time, long before the pandemic.

But it basically is this phenomenon in which it becomes extremely hard in a shock to accurately gauge um uh proper level of inventory and buying, and people don't have much visibility into what the end consumer is going to

look like. So companies change their whole patterns. You see, okay, we're getting a big pickup in demand for are toast offens or new refrigerators or the you know, furniture, and so then everybody starts cranking up uh you know, production of furniture and orders of furniture, and then people over order because again, remember we had these shortages, and so if you're facing shortages, when you do, you're like, well, I'm going to order even more just to make sure

I don't run out. But then it sort of whips in the other direction, and then you have these really magnified errors in both directions where you go from shortages to gluts very fast because of the compensation in either direction. It sounds like they're parallels. Also to FED Policy, Joel thanks a lot, appreciate it. Joey isn't thought, the Bloomberg News Managing editor, also the host of the Odd Lots podcast.

And I had the cash of about Wall Street futures after yesday four percent sell off for the SMP five hundred. We have futures lower this morning. SMP futures down fifty two down future is four hundred two points lower than AMSDACK futures down one utter day and seventy points. You're listening to Bloomberg Day Prey and the Bloomberg Weather from

meteorologist Rob Carolin. They have some real heavy rain this morning for rain will end this morning becoming party site the Heights Aptude today seventy to seventy five degrees broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one six one to San Francisco, Bloomberg nine sixty to the country, Sirius XM Chad A one nineteen and around the globe, the Bloomberg Business apt and Bloomberg Radio

dot com. This is Bloomberg Daybreak. He's six thirty on blow Street. Good morning, I'm John Tucker and I'm Karen Moscow or just about three hours away from the open of US trading time for the five things you need to notice start your brought to you by Interactive Brokers. Interactive Brokers charges margin loan rates from one point three three to two point three three percent, rates subject to change. Learn more at ibk R dot com. Slash compare up first.

US future is falling again as stocks come off their worst day in nearly two years. Weak retail earnings are stoking concerns about the consumer sector, and Mark Cudmore is a macro strategist for Bloomberg News. The weakness for the consumer sector was related in my point of view, and it makes sense that it's finally come. We kind of seem to be denying reality there. The bit that I'm really confused about is how fragile is the consumer overall?

Because our session is definitely coming by the way, there's no chance of avoiding a hard landings we're just talking about when it comes. Bloomberg macro strategist Mark cud Morris as the most optimistic view has the US entering recession next year. So where do investors put their money? There's no good answer. According to David Dits, he's seen your portfolio strategist at Pepak Private Wealth. The alternatives like bitcoin

have crash show there's only cash. But you know, with close to eight percent cash doesn't look very good for the long haul either. So it's a real hand reading time for investors. The facts Davids was against on Bloomberg Business Week heard Weekday Afternoons from two to five and Bloomberg Radio five hundred four percent yesterday. This morning, SMP

futures are down one point four percent. Well, the latest casualty of the sell off John Melvin Capital, Gabe Plotkin's hedge fund as calling it quests and bloombergerny to Young joins us live at the very latest. Good morning, Nina, Good morning Karen. Gabe Plotkin is shutting down his seven point eight billion dollar hedge fund. Melvin Capital Management was the most prominent victim of last year's memestock frenzy, losing billions.

The fund posted of fifty five percent lost that month alone, and since then, Plotkin has been trying to claw his way back with funding from some of Wall Street's biggest players. Now the fund showed some promise last year, but a plan to reimpose fees frustrated backers and failed. Now Melvin Capital is outlining plans to elimit eight fees and return investor cash. Live in New York. I'm gonna need a

young Bloomberg payperreak. Thanks for the earnings from Cisco. Also wing on sentiment, the tech combody warning that lockdowns in China and supply chain disruptions could white bound sales growth this quarter. Cisco shares down more than ten percent and early trading and some big names on Wall Street are slashing their forecast. Economist at JP Morgan are cutting their US growth outlook for the year to two point four percent, and most Fargo is cutting its view on the SNP

five hundred. It's year on target now hovers around. That's the five things you need to notice start your day. Brought to you by Interactor Brokers. All right, thanks Karen, it is now six thirty three. Yeah, it's time now the bringing Michael bar for what else is going on in New York end around the world. Thank you, John. The white eighteen year old gunmen accused of killing ten black people at a Buffalo supermarket is scheduled to appear

in court today. Authorities continue to investigate the possibility of hate crime or terrorism riges against Peyton Gendrin. Meanwhile, the district attorney prosecuting the case says the authorities correctly followed protocol when investigating the threat the shooter made a year ago. Broome County d A. Mike Corteck, New York State Police followed up appropriately on what the school district advised them off They properly transported the individual to Bingaton General Hospital

for a mental health evaluation. DA Cortchack says everyone involved will be reevaluating their procedures. New York Governor Kathy Hoco authorized the state's Attorney General to investigate social media platforms used by the suspected gunmen to determine whether they were liable for providing the platform to plan and promote violence. Local said social media companies have to take responsibility for incendiary content on their platforms. That's the intersection of two

crises right now. They're unfolding in our country, the mainstreaming of hate speech, of racism, nationalism, white supremacy, and the easy access to military style weapons and magazines. Governor Uncle also says she signed an executive order that requires state police to flying people who might be deemed the danger to themselves or others. New York Mayor Eric Adams said he has no plans to reinstate a mask mandate in public schools, even after health officials this week raised the

city's COVID alert level too high and advised wearing face coverings. Indoors, we are being extremely strategic, and we are fighting COVID with not only the twols that we didn't have before, but we're also fighting COVID using the intelligence we need to win. Mayor Adams says we're staying prepared and not panicking. Former New York City Mayor Bill de Blasio says he's considering it run for Congress after a legal battle over the state's political maps opened up a seat in Brooklyn.

The two term Democrat, who left office at the end of one said that he is formed an exploratory committee the Justice Department announced u S Supreme Court justices will receive around the clock security at home, among other protections. It follows the leaked draft opinion advocating overturning abortion rights. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries. On

Michael Barr, this is Bloomberg, John, Michael, thank you. He is now six thirty six on the Wall Street. Yeah, that's sign for the Bloomberg Sports Update. Heves John staff Shower, all right, John. The Rangers in the first round one a series where they never led Pittsburg until the overtime goal in game seven. Now round two. Game one at Carolina, Filipino scored seven minutes and it stayed one nothing for the next fifty minutes. Hurricanes were out of played in

the first two periods, but they dominated the third. They tied the game on a Sebastian Oaho goal to twenty remaining and then three twelve and overtime. I Cole scored on a rebound of the Kings one two to one and now five and oh at home this postseason Calgary on a wild one with Edmonton nine to six. NBA

Golden State blew out Dallas by twenty five. The mets great start has been without the still injured Jacob Graham, and now there's concerned about Max Scherzer got the winn A City field and proved five and one met Pete the Cardinals eleven to four, but Scherzer took himself out

six inning discomfort in his left side. I don't think this is a major string um, you know, Like I said, I was kind of heightened and all of a sudden when you know, but I don't feel like I really ripped, you know, you know, kind of say it, you know, I felt like it just kind of got worse. We'll have an m r R today. Yankees made a twenty one of the last twenty four three two in Baltimore,

all three runs in the first inning. Garrett Cole got the wind Clay Homes to say, the Giants with salary cap issues, I had to release one of their best players and now they'll see cornerback James Bradbury twice. He signed with Philadelphia p H Championship short Hills in Tulsa without the defending jam Phil Mickelson, Bryson de Shambo Withdrew

injured hand, but a marquee threesome this morning. Jordan's Feed, Rory math Leroy Tiger a Wolds Live, PGA covered Don Bloomberg Radio Today Stinging at four and the PGA Championship wrap up show at eleven New Ones. Actually I wanted Bloomberg's Worst Dome. All right, Jonath, thanks very much. Sixty seven on Wall Street and it is time now to take a look at stocks and some of the names that are moving into the pre market, and for that

we're joined by Bloomberg Radio and TV Markets. Corresponded critic Gupta. I'm looking for a broader theme for the markets, the narrative that they're latching onto, and I guess it's margin compression. Higher costs are squeezing profits pretty much. That and if you have any kind of exposure to China, anything COVID

lockdown related, your stock is going to crash. And I think a great case study of it is one of the worst performing stocks this morning, which of course the Cisco CUS CEO is your ticker down about thirteen percent. They came out and they said, I believe the report earnings last night, and they came out and said that their warning that Chinese lockdowns and other supply disruptions would wipe out sales growth in the current quarter, not eat

into margins, but wipe it out completely. UM and then of course adds onto the broader concerns about tech, which has been dragging the entire market down. Remember these were the big names that we're dragging UM or pulling the market up to record highs. I should say, um, But

there is some green on the screen. If you want to think, I've got one for you, really yeah, uh, if you are worried about China lockdowns, if you're worried about supply shortages, thinking about the companies that are benefiting from supply shortages or benefit from a supply shortage and a lockdown in China. We'll have about energy chip company Synopsis, for example, it's a chip software designer, and they're saying

they reported extremely strong demand. It's actually one of the only five stocks that are in the green this morning. S NPS is your taker. It's up just shy of four percent. But then to your point, you said energy, you said food as well. If you look some of the other four names in the green. See if Industries is a fertilizer company, it's about seven tenths of one percent. Newmont higher with gold prices this morning, an e M

is your taker up six tenths of one percent. N r G, your energy companies right there up five tenths of one percent, and even album Marle a LB, which is a it makes lithium that helps kind of feed E V batteries for example, a l B is the taker up two tenths of one percent. So really anything commodities related at least in that pocket is doing well. But then if you look into the majors like a Chevron or an Xon for example, those are down as well. So there are very very small pockets of green, okay,

and that we'll recap retail. For me, that's not the place for investors to be right now, I guess it's not the place for investors to be, and arguably it's what sparked this whole entire thing. You actually look at just follow up from the earnings we heard this week. Walmart w MT down eight tenths of one percent this morning, Costco as well, c o S T down one percent, t GT for Target down one percent as well. But remember we do get coals earnings a little bit k SS,

so keep an eye on those shapes. Be very interesting. Thank you, Boomberg Radio on TV. Markets corresponded Critty Gupta and look, you get stocks as a whole ahead of the open. SMP futures right now they are down fifty three points. That's a decline at one point four percent empty yesterday's four percent sell off. Down futures four hundred four points lower but hasaking many futures are down one

hundred and seventy four. You're listening to Bloomberg Daybreak, the Bloomberg Weather for a meteor roulogist Rob Karen and rain ending this morning then becoming partly Sunday today. The high temperature seventy to seventy five degrees, hardly cloudy tonight blows fifty five to sixty Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg Quick Take. This is a Bloomberg Business Flash and I'm Karen Moscow and futures are

lower this morning. We go to the First Word Breaking news desk for today's morning call. Here's Bill Maloney, Bill good more, Hang, Hey, good morning, Karen. That's right. US futures are sinking again after yesterday's plunge with doubt. Futures down three forty two points. Sv s drop forty five. Now it's like futures are lower by a hundred forty He was a ten year old at two point eight two percent. Gold is up twelve, oil is down and

bitcoin is falling by point eight percent. Hong Kong drop two and a half percent overnight, while up markets are also in the red, that by two percent losses in the UK, France and Germany. Back in the US. On the economic frontday thirty initial jobs claims and the Philly

Fed and at ten o'clock existing home sales. After the bellas night Cisco report, it shares it down twelve percent in the pre market, and the under Arms CEO stepped down regarding earnings this morning, look for a coolest report in the pre market and wrapping things up, under Armour was cut to equate over at Morgan Stanley Live from the first Breaking news Deskom Maloney, Karen, Hey, Bill, thank you to hear live breaking news of your bloombergy type squawk on your terminal SCU you a w K and

we do have this headline that just crossed the Bloomberg sphere at airline's board is urging shareholders to reject the Jet Blue offer. Again at just crossing the Bloomberg and that's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Plunk off, Karen, thank you very much more. Ukrainian soldiers were evacuated from a steel plant in Mariuple. Several buses accompanied by Russian

military vehicles were seen pulling away from the plant. President Joe Biden invoked emergency powers under the Defense Production Act to try and boost production of baby formula to alleviate shortages. The suspect in the Buffalo killings will be in court today. Meanwhile, players on the Buffalo Bills visited the memorial outside the supermarket shouting. In the NHL Playoffs, the Rangers lost to the Hurricanes to one in overtime in game one of

their series. In the NBA Playoffs, the Warriors one game one of their Western Finals over the Mavericks. In baseball, the Yankees beat the Orioles three to the Mets, Red Sox and Nationals won the Giants and A's lost Global News twenty four hours a day on air, and don Bloomberg Quick Tank powered by more than seven hundred journalists and analysts more than a D twenty countries. I'm Michael Barr. This is Bloomberg. The following commentary is from Bloomberg Opinion, Buffalo.

I'm Jonathan Bernstein, a columnist for Bloomberg Opinion. Joe Biden's Buffalo speech on Tuesday, hitting on the necessary themes of combating hatred and defending democracy, was a good one. The speech was extremely by nesque, combining all of his leading traits as a public figure. Biden displayed the empathy that was a central part of his campaign. He also deployed, as usual, his scrantonius, not as a contrast to other places or backgrounds, but as an inclusive form of one

of US representation. But Biden isn't just an empathy president or one of US president. He's also the guy who shoots off his mouth too often, and he used blunt words in Buffalo. Domestic terrorism, racism, white supremacy. For Biden, empathy and Scrantonness set the stage for the bluntness needed to make clear that attacks like the Buffalo massacre are t connected to bigger than speech in the public sphere and two broader attacks on US democracy. That doesn't mean

that the speech is going to solve everything. Speeches don't have that power. Presidents don't have that power. But every little bit helps. I'm Jonathan Bernstein. For more opinion, please go to Bloomberg dot com, slash Opinion or opi and go on the Bloomberg terminal. These has been Bloomberg Opinion and Bloomberg Opinion commentaries can be heard every weekday at this time and terminal customers can read more at O P I N go. It is six fifty on Wall Street.

We turned to news and science and technology now at the Bloomberg and J I. T. Stem Report, and here's what's making news and science, technology, engineering, and math. Spain is experiencing unusually high temperature levels amid a heat wave that's expected to take thermometers above a hundred and four degrees fahrenheit this weekend. It adds to a long list of extreme weather events in recent weeks showing the impact

of climate change. A new study finds a micro plastics are widely present in the drinking water of Nigeria's large largest city, Logos. It's unclear how the tiny particles found in the environment and ingested by humans impacted health. A World Health Organization official warrants is urgent to learn about the health impact of microplastics on human health and its SpaceX looks to launch its newest rocket from Boca Chica, Texas.

Government wildlife officials say several conservation measures need to be taken to minimize its impact on local species. Suggested mitigation efforts including contracting with a qualified biologist to monitor vegetation and birds, producing vehicle traffic, and adjusting lights to minimize the impact on sea turtles. That's a Bloomberg and j I t Stem report. John all right, thanks Karen, and we are live from the Bloomberg interhad to Broker Studios where it is now six fifty two on Wall Street.

And that's time to take a look at what's going on in d C. Some of the top stories making news in the nation's capital include President Biden invoking emergency powers to try to ease the baby formula shortage, of the House also taking action passing it have to get baby formula bill, Democrats pressing the White House to go big on forgiving student loan debt. Let's take a deeper dive into these stories this morning. We're joined by Bloomberg

government reporter Jack Fitzpatrick. Jack, thanks for being here. Appreciate it. Um. What action is the White House taking on the baby formula front in the immediate term? The President announced a couple of things. One, he's using the Defense Production Act to try to boost production of baby formula. That is the measure that allows the government to force companies to either produce or or prioritize the production of certain things.

That could address if there are any shortcomings in the supply chain leading up to the production of baby formula, shortcomings in terms of an ingredient making it down the line. If government officials can find any instances when they can compel or in a greater way prioritize the movement of that to increase the production of baby formula, they'll do that. The other was allowing the use of government planes for imports.

The import issue is going to be a significant measure that's getting a lot of attention on Capitol Hill as well, UH to try to alleviate the shortage and and probably has a significant amount of potential. In the short term. It takes a little while to increase production domestically, but there is a significant focus of of imports and the use of government planes. The president beliefs could speed that up. The House also pushing a measure. What is that and

what's the likelihood of passage? It's a fairly small measure. It's twenty eight million dollars for the Food and Drug

Administration UH. The House Appropriations Chair Rosa Deloro has said she she views them as being short staffed in terms of having inspectors, which is important because if they're looking for other ways to get to get baby formula other than the Abbot facility that had to close, then they need more inspectors to ensure that places that aren't on the f d a's lists already can be added to the list. So they need to go to more potential

sources of production. UH. That was not negotiated with Senate Democrats, let alone any Republicans. The House passed it with a majority. It's it's path in the Senate is not entirely clear. Doloro's counterpart, the Appropriations Chair in the Senate, Patrick Leahy, said he may work on his own bill. It might end up being the same bill, but the fact that it doesn't have an entirely clear path and really is a House Democratic bill means we can't necessarily expect it

to fly through the Senate immediately. There's some chatter from Democrats that a big, big measure to forgive student loan dead. What's the update, Yeah, Chuck Schumer. Very importantly, the Senate Majority Leader joined with Senators Elizabeth Warren and Raphael Warnock to try to pitch President Biden to go up to

fifty dollars in student debt really relief. The President previously has indicated more looking like ten thousand dollars, So this is trying to really maximize whatever relief he may consider. To get the Senate Majority Leader on board with that pitch is significant. Obviously, Senator Elizabeth Warren campaigned very aggressively for the presidency on that issue, So there's pressure from Senate Democrats to try to get get it up to

the biggest number possible. Uh. And obviously they're looking to the White House because the legislative path forward for this with Republican opposition would be very, very difficult. So there's a lot of focus on trying to negotiate with Biden directly to see what he can do unilaterally. Hey, finally, in the about a minute left, what was the big takeaway from yesterday's primary results? I would look to Pennsylvania

and the Senate race. John Fetterman, the or progressive Democratic candidate, really beat Connor Lamb, the House moderate, quite easily by more than thirty percentage points. That's a pretty big victory for progressives. Very close race still being counted on the Republican side, uh me met Oz of dr oz fame. Is it a very narrow lead over Dave McCormick. It is within the realm of possibility that there will be an automatic recount, so that one could drag on for

a little bit. Does the former President Trump still holds way of the Republican Party? Is Is that a takeaway or not? He would like a victory here. Oz was his picked candidate, and interestingly enough, the closeness of this race prompted former President Trump to say that his candidates should declare victory now before, in his words, they find more votes. So we're we're getting a revert where we're reverting back to the drama of due to the closeness

of that Republican primary. Alright, Jack, thanks very much. We pretty appreciate that. Bloomberg Government reporter, Jack Fitzpatrick, you can more about these stories on Bloomberg dot com or on the Bloomberg churmnal. Also a reminder, you can follow all the latest on Bloomberg Radio in Washington. That's Bloomberg at one oh five point seven f m HD two. After yesterday's sell off in the markets, in turn in part

triggered by the results that we saw from Target. The Dow futures right now down three hundred eighteen points, that's a one percent decline in the futures, the S and P five hundred futures after four four percent sell off yesterday, down forty two points right now, that's down another one percent of the pre market, and the futures down one hundred and forty two points, down one point two percent. Just ahead Bloomberg Surveillance after Karen Boscown, I'm John Tucker.

This is Bloomberg day Break.