Bloomberg Daybreak: May 20, 2022 - Hour 1 (Radio)

New York City. Plus the January six panel wants the question the GOP lawmaker about a capitol tour. I'm Michael Barer. More Ahead, I'm John Stash Sharon Sports. The Yankees lost the Mets one but learned of a serious injury, and Rory McIlroy has the League of the PGA Champion chap.

That's all training ahead on Bloomberg day Break on Bloomberg eleven three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius Exam one nine Team 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 and US Dock index futures are higher this morning.

We're coming up to five o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg, SMP futures up forty two points down, futures up two hundred seventy and as the futures up one eighty one. Ten year Treasury down seven thirty seconds. The yield is at two point eight six percent. They yield on the two year two point six two percent. Nine X screwede oil down half percent or fifty six cents at a hundred eleven dollars sixty five cents in barrel.

Comex gold is up tenth of a percent, or two dollars fifty cents at eighteen fifty thirty, announced John Well Karen. US futures aren't higher as we close out what appears to be another losing week for stocks. In fact, the SMP five hundred is on track for a seventh straight weekly decline that would be its longest decline in twenty one years, and traders are raising for another volatile day. The monthly expiration of options tied to equities and exchange

traded funds takes place today. Kathyet Whistle, as a managing director at Morgan Stanley, being for volatile, they are uncertain. It's giving everybody a little bit of uneasiness and a lot of people asking what to do in the market. Morgan Stanley's Cantley and Whistle making the comments on Bloomberg Business Week, heard weekdays from two to five pm Eastern on Bloomberg Radio. SMP five hundred has lost more than one trillion dollars in market value over the past four sessions.

Well John One stock that is not helping market sentiment this morning is Applying Materials. It's down more than one percent in early trading after the ship maker delivered a week forecast, and we get the story from Bloomberg's Charley Pellett. Applied is the biggest maker of machinery that's used to manufacture semiconductors. Had said sales will be about six point to five billion dollars in the fiscal third quarter, which

runs through July. Analysts have estimated six point six nine billion, and on average, according to data compole by Bloomberg, the chip industry is ordering machinery from Applied and its peers at a frantic rate, trying to build enough production capacity to end industry wide shortages that are hurting growth across the economy. But those same shortages are leaving Applied without the components it needs to make its equipment in New York,

Charlie Bloomberg Daybreak, Thanks Charlie. The semiconductor industry will be in focus when Joe Biden makes his first presidential trip to Asia. The President's time at South Korea in Japan will focus on security and supply chains. Bloomberg's Amy bores

his details from our newsroom in Washington. The president is set to visit a Samsung semiconductor complex as he seeks to show up supply chains that reduce reliance on China, an indication of the emphasis he's placing on strengthening semiconductor reliances among the world's largest ship makers to ease those

shortages that have dragged on the global economy. He'll also meet with regional leaders to garner more support for Ukraine, defend off Russia's invasion, and counter security threats from China and North Korea. The visit runs through Tuesday, in Washington. I maybe more as Bloomberg daybreak. He right, Amy, thank you Meantime on Capitol Hill, the US Senator has passed an aid package for Ukraine worth more than forty billion

dollars in how aways President Biden signature. At the same time, the Administration said it is providing Ukraine with another one hundred million dollars in military assistance. The baby formula shortage also in focus this morning. According to Reuters, the world's second biggest baby formula maker increasing shipments from Europe to the US. The move by theme comes after Avit Laboratories

had to recall some products. Virginia Senator Tim Kon is a member of the Senate Foreign Relations and Armed Services Committees. Were now going to use the Defense Production Act to increase production. We're allowing importation of formula that's safe from other countries. The company that closed its planned down has reached an agreement to do some fixes. They should be reo within two weeks and starting to produce again, so

we will solve this problem. I think you'll see that the bipartisan but we'll have to have that vote next week and see Virginia Senator Tim Kaine spoke with our Washington corresponded Joe Matthew and Bloomberg sound on Catch That program weekdays at five pm Eastern on Bloomberg Radio. And John were also focusing on the pandemic with news on vaccine eligibility. Younger children across the US. Can I receive a COVID booster shot developed by Fiser. We get the

details live with Bloomberg's Rnita Young. Good Morning, Ranida, Good morning, Karen. CDC director Rochelle Willinsky recommends the booster for children ages five to seven five to eleven years old. Making the shot available to school age kids will provide much needed protection against the contagious omicron subvariants that are spreading across the country. We Lynsky says kids in this age group should receive a booster dose at least five months after

their primary series. Live in New York, I'm Ranita Young, Bloomberg Day Break. Renita. Thanks. There's a so assigned today that the travel industry is bouncing back. Leisure travel now back to pre COVID levels. Let's get the story from Bloomberg's Doug Prisoner. The trend could help the travel industry

this summer. The MasterCard Economics Institute says for the first time since global movement was halted by the pandemic, leisure travel has returned to levels and higher airfares don't appear to be a deterrent the average global airfares of eighteen percent since the start of the year. MasterCard says if flight bookings continue at their current pace, and estimated one and a half billion more passengers globally will fly this year compared to last, with Europe seeing the biggest increase.

In New York, I'm Doug Prisner, Bloomberg Daybreak. All right, Doyke, thank you what we are seeing. The carnage and retail stocks continue this morning now. Shares of Ross stores down more than twenty seven percent in early trading, the discount

retailer cutting its outlook for profit and sales. Ross's outlook downgrade follows similar moves this week by Cole's, Target and Walmart and ahead of the cash but on Wall Street futures right now in the green and down futures of three hundred three points, that's the rise of one percent. Smp E many futures there are forty seven points, that's up one point, and the nastanc futures one nine six points higher, up one point seven. You're listening to Bloomberg

Daybreak five O seven Wall Street. That's time to bring in Michael Barr with more on what else he is going on to New York End around the world, John, Thank you very much. Sary. Health officials say a possible case of monkey pox is being investigated in New York City. You would add to the case already reported in Massachusetts. The city's health department announced on Twitter that the patient

is being cared for at Bellevue Hospital in Manhattan. Officials say preliminary tests for the virus are being conducted and if positive, will be sent to the CDC for confirmation. Relatives of the ten black people gunned down in a Buffalo supermarket are pleading with a nation to confront and stop racist violence. Agony poured out in the tears of a twelve year old child, Jake Patterson, who lost his father.

The child covered his face with his hands as his mother spoke, his heart is broken, he has sleeps, he has eaten. As a mother, what am I supposed to do? The Veronica White is the aunt of another victim, Andre McNeil. This is so settler that cannot believe somebody would give some child a gun and let him think that it's okay. Come with somebody, Paul, how did this shoot it up?

Earlier yesterday, the accused gunman, who is white, eighteen year old Peyton Gendren, silently faced a murder indictment, and court authorities are investigating the possibility of hate crime and terrorism charges against him. The White House calls Oklahoma's new abortion bill the most extreme effort to undo the fundamental rights laid out in Roe v. Wade. Oklahoma's legislature. He gave final approval to the bill, which would ban almost to

all abortions from the moment of conception. Vice President Kamala Harris hosted a virtual meeting with abortions providers at the White House. It's just the latest in a series of extreme laws around the country. Oklahoma's governor has vowed to sign it into law. The House panel investigating the January six riot wants to question the Republican lawmaker who has said to have led a group tour of the Capitol

a day before the attack. Georgia GOP representative Buried louder Milk is being asked to answer questions before the Congressional Committee. Panel Chairman Benny Thompson said the committee's review of evidence contradicts denials from some Republicans that there were no tours or large groups brought to the Capitol. Global News twenty four hours a day on air and on Bloomberg Quittake, powered by more than twenty seven hundred journalist and analysts

more than a hundred twenty countries. Michael barn this is Bloomberg, John, Michael, thank you when I got fund six ten on Wall Street five ten of Wall Street tim out for the Bloomberg Sports Update. Here's john S all right. John Thrilling went for the Mets. They've had a lot of those already this season. The Cardinals got two on runs from

Paul Goldschmid led in the ninth inning. The Mets tie at St. Louis, went back ahead top of the tenth heroics in the bottom he goes spreading a belt, Tie said his pitch a field, wait back, love God, that's drive flowing out against Gagos. Mets put us up serious victory. T S had the call, and that's won seven six Alonzo and Alleys all of baseball with thirty six r B I s. However, during the game came the news on Max jers Or he has an oblique strain. He's

gonna miss six to eight weeks. Of The Mets were hoping to have this great one two punch of Serzer and Jacob Degraham both are hurt and so it was

another starter Tyler McGill. Just as the Mets at their walk off when the Yankees for a walk off laws in Baltimore, the Orioles Anthony Santander three run over bottom the ninth of Lucas Litkey for a nine six Orioles win the Yanks and tied the game with two out in the top of the ninth NBA Playoffs, Celtics up twenty five at half time, and they won Game two in Miami by twenty five to tie the series up. Samley kept platoff wins for St. Louis and Tampa Bay

that two time. Defenny Chance go home up to nothing on Florida Rangers Hurricanes game too tonight and Roley after Kaine took the opener in overtime. Rory McIlroy hasn't won a Major since the two thousand fourteen pg A. McElroy leads this year's PGA by one shot going into today's second round, and tells the live coverag Bloomberg Radio Today starting at four p g A tonight show at eleven

John stash War Bloomberg Sports. John, alright, thanks John, and our futures head out the open on Wall Street three hundred and three points higher right now, the SMP futures of forty six points and the NSF futures up one hundred and ninety five points. You're listening the Bloomberg A break. Just ahead. On daybreak, President Biden arrives in South Korea to begin his first Asia trip. We'll speak with Bloomberg's

An Roy for a durn. What's on the agenda. This is Bloomberg Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktape. This is a Bloomberg Business Flash and I'm Karen Moscow. Stocks in Europe and U S stock index futures are pushing higher after China's latest measure of ulster as economy injected a note of optimism at the end of another volatile week for a global markets.

We checked the markets every fifteen minutes throughout the trading day on bloomberg S and p Future is fifty one points this morning down Future is up three hundred forty and NASDAG futures up two hundred fourteen and X in Germany's at one point nine percent. Ten year treasury down eight thirties seconds held two point eight six percent that yield on the two year two point six three percent.

Nim X Screwed oil is down half percent, down fifty six cents at a hundred eleven dollar, sixty five cents of barrel comic scold up a tenth of a percent of a dollar sixty at eighteen forty nine forty announce, the euro one point oh five eight two against the dollar, British pound one point to four eight nine and a en one twenty eight point to one, and Bitcoin this morning lower down a tenth of a percent at thirty thousand, one hundred ninety dollars, and deer In Company and Footlocker

are among companies schedule to report earnings today. 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. Karen, President Joe Biden has landed in South Korea. He will meet South Korean President Yun So kiol as they face a growing threat from North Korea's nuclear weapons and missile program.

Both US and South Korean intelligence officials say it's possible that North Korea will conduct the Ballista or nuclear tests around Biden's visit to South Korea and Japan. The Senate has passed a fourty billion dollar package of military, economic and food aid for Ukraine and US allies. The vote was eighty six eleven. In the NBA playoffs, the Celtics have even their series at a game apiece after beating

the Heat one seven one oh two. In baseball, the Yankees lost to the Orioles nine six the Mets one. Along with the Red Sox, Global News twenty four hours a day on air and on Bloomberg Quickdake, powered by more than twenties seven hundred journalists and analysts more than a hundred twenty countries. Michael bar this is Bloomberg Dohn. Michael, thank you. It is five nineteen at Wall Street. We are live from the Bloomberg into Rantobroker Studios. This is

Bloomberg Daybreak. Was Michael just mentioned Joe Biden and Barking on his first presidential trip to South Korea and Japan. For more, We're joined by Bloomberg Radio and TV Washington correspondent and Marie were turned Emory. Good to have you, Happy Friday. So what's on the enda Happy Friday. Well, he just touched down in Seoul and the President is going to be visiting a Samsung facility. It's really a

massive complex. Also likely mirrors with the United States and Samsung wants to do in this plant they plan on building in Texas. Uh. This Samsung trip really underscores the emphasis Biden has placed in America about making sure the United skates says could fortify their supply chains when it

comes to these very important microchips. And I imagine at some point you're going to hear him point the figure at Congress, which for months has been trying to get over the finish line a very broad China competition bill that has north of fifty billion dollars to semiconductor research. What else is it in this China competition bill and how that all fits in the chances of passage at this point, is this trip going to make a difference

in getting that passed. I think this trip just gives the president a moment to use foreign policy to pivot back to why it matters for everyday Americans. So you'll see a lot of him trying to weave in the farm policy with his domestic agenda. When it comes to how this timeline for this bill is, you do have in conference, which means you have representatives from the House and those from the Senate needing to try to work out the differences because they both passed their own versions

of this bill. Um, but that does take weeks, if not mons. You also have the House going on recess. So I would say prepare for something around the end of the summer that we could see this finally get across the finish line. But the President was very direct with Congress. He said, quote past the damn bill, so his patients is running out. There was also the Transpacific Partnership Regional Trade Agreement, and uh what we withdrew from

that under the previous administration? Where where does that stand? Is that a focus? Yeah? So that will be a focus when the President moves on to Japan. And now the t p P. You're going to have something like TPP version, a new version of it, but just doesn't

have as much heft. It's a bit hazy and exactly what it means, but basically a Biden plans to kick off this Indo Pacific Economic Framework, and this is part of the administration's ongoing efforts to counter China's cloud um and it's somewhat takes the place of that TPP but the administration has stressed that it won't include lower tariffs or better access to US markets. The Financial Times also reported that in you know, an eleventh hour moment, they

actually water down some of the language. So it's still very confused, confusing on what exactly this economic framework can deliver. But I think the Biden administration is just trying to find a place holder for these regional allies instead of, uh, you know, the t p P, which the Trump administration pulled the U s out of. So it's really just a starting point. While he's over there. There is the

chance that North Korea could do something looney. Uh. There's also the tensions with China over Taiwan, how with those being addressed, So when it comes to North Korea, and it's a good point because they have a habit of timing these provocations to political events. And now you have the president in South Korea and then he'll be going

over meeting with Quad leaders in Japan. So you talk to US officials and they say they are preparing for either a launch of an intercontinental ballistic missile or potentially from North Korea to conduct a nuclear test, as it coincides with Biden in the region. Um, So this is something that I think would also just really highlight the US is UH stands in the region because this is something they need to work with their allies in the region about. And this is you know, making sure they

could fend off these provocations from North Korea. And then when it comes to China, I don't expect them to say China much, but you can imagine everything the President is doing is about making sure they are fortifying the

United States versus China when it comes to competition. The entire administration they started about this pivot to Asia, and it just got confusing, right because a lot of the time the administration has been spending over the past months has been, of course, dealing with the war in Ukraine. How do these trips I get thirty seconds left, how do they play at home? What's the domestic consumption. The grocery bill, by the way, yesterday was a hundred and

sixty seven bucks. The fill up with the car this morning was sixty. Well, I think you hit the nail on the head, right. I think the President, you know, when he visits the Samsung factor and if he gives any comments about it, it will be about wanting to fortify America supply chains, which is why they want that bill passed, because they want to make sure that you can get products in American make them cheaper. But we do know this is not going to impact inflation tomorrow

or next week or by November. These are long term goals, so right now Americans really only care about what you mentioned, their kitchen table and the gas pump. Thanks Sam, Marie, always a pleasure. Bloomberg Radio and TV watching to correspondent and Marie, we're durn and right now down features of three hundred and five points. This is Bloomberg. Bloomberg Weather

for today from Rob Carolin. Dense fog advisory and effect for the north of the city that goes through nine am and then campus will give way to partial sum The height today about seventy five degrees. This is Bloomberg broadcasting live from the Bloomberg Interactive Broker Studio in New York.

Bloomberg ev in Freedom to Washington, d C, Bloomberg ninety one to Boston, Bloomberg one six one to San Francisco, Bloomberg n sixt to the country, Sirius XM ch and around the globe the Bloomberg Business app in Bloomberg Radio dot Com. This is Bloomberg day Break. It's five thirty on Wall Street. Good morning. I'm John Tucker and I'm Karen Moscow. Here just about four hours away from the open of US trading. Let's hear you have to date on the news you need to know at this hour.

US stock index futures are higher this morning as we close out a trading week that saw the SNP five hundred it lose more than one trillion dollars in market value. The index is down almost from its January third closing high and is on track for a seventh week of losses.

Ken Griffin is CEO of Citadel. What we're seeing in the markets is a rotation from growth stocks with earnings very far in the future towards stocks that are are much more value stocks earnings here in the present and this reflects the fact that real rates for the first time in a very long time, are likely to go positive and Citadel CEO Ken Griffin made the comments to Bloomberg's Francing Laqua at the Bloomberg Intelligence Market Structure three

point oh conference in New York. Results from Applied Materials weighing on sentiment this morning, shares down about one percent in early trading. The company delivered a week forecast as chip shortages persist. Altering to politics, john President Joe Biden heads to South Korea and Japan to reassure allies of America's commitment to Asia. Bloomberg Daybreak Asia anchor Brian Curtis

has the details. The last time a US president visited Soul, in twenty nineteen, Donald Trump and Kim Jong Lun agreed to restart nuclear talks. This time, the White House has not indicated Biden will be heading up to the d m Z. In the meantime, the North Korean leader is preparing to launch another i CBM and possibly conduct his first nuclear test since seventeen. President Biden is aiming to firm up the US pivot to Asia and counter China's

military build up in the region. Brian Curtis, Bloomberg Daybreak. Thanks Brian. The pandemic also in focus this morning with news on vaccine eligibility. Younger children across the US can now receive a COVID booster shot developed by Fiser. Let's get the tails live from Bloomberg's reaty to young Good morning, Rinita, Good morning John. CDC director Rousselle Wilinsky recommends the booster

for children ages five to eleven years old. That makes the shot available to school age kids and it will provide much needed protection against pages O macron sub variants spreading across the country. We Lynsky says kids in this age group should receive a booster dose at least five months after their primary series Live in New York, I'm rened a young Bloomberg Daybreak. All right, we need to thank you. And it looks like travel has now fully

rebounded from the pandemic. According to our report by the MasterCard Economics Institute, vacation travel is finally back to levels last seen before March of Again, futures this morning are on the rise, and straight ahead your latest local headlines, plus a check of sports. This is Bloomberg. All right, Karen, thanks hi thirty three on Walls. Great time to bring in Michael bar with more on what else is going on in New York and around the world. John, thank

you very much. Sarah. Possible case of monkey pox is being investigated in New York City, adding to the case already we reported in Massachusetts. Health officials have preliminary test for the virus are being conducted and if positive, will be to the Centers for Disease Control and Prevention for confirmation. The patient is being treated at Bellevue Hospital in Manhattan.

Experts say it's a rare illness. University of California, San Francisco Professor of Medicine, Dr Peter Chinnong is an infectious disease expert. There's an adopted boxing from monkey pox. But the interesting thing is that if you've been boxinated with smallpox, you get protection against monkey pox because it's really closely related. Dr Peter chin Hong says he doesn't believe monkey pox

will run rampant. The House Republican is pushing back on the January sixth committee that claims he gave unauthorized capital tours the day before the attack. The committee says it has evidence that Georgia Republican Congressman Barry louder Milk gave a tour of the capitol. The committee wants louder Milk to testify. Tops Markets valve they would reopen their Buffalo supermarket after Saturday's deadly mass shooting. Meanwhile, the eighteen year

old suspected gunmen appeared in court yesterday. The Oklahoma state legislature passed a bill which would ban almost all abortions from the moment of conception. The bill includes neural exceptions to protect the life of the mother and for cases of rape and incests, but only if they are reported to law enforcement. State Representative Wendy Steerman is the bill's author. Well, the goal of this is to protect the child, the

unborn child. So I believe that putting in the exception as we have it is um is acceptable in the situation, Representative Steerman says. Oklahoma's governor is expected to sign the bill into law. Vice President Kamala Harris called the bill outrageous. Global Needs twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists and analysts, more than a hundred, twenty countries. Michael Barr, This is Bloomberg, John, Michael, thank you at South six

on walls. Pretty that's time for the Bloomberg Sports Update. Thanks John. Bittersweet day for the Mets, a thrilling win at City Field, seven six over the Cardinals on a walk off two run homer tenth thinning by Pete Alonso. But during the game game the update on Max Serzer, who took himself out of Wednesday's game and the m r I showed an oblique strain. Ser serves up to a five and one starters a MET is going to miss the next six to eight weeks, and Jacob de Graham,

of course as yet to pitch. No time table on his return. Tyler McGill is another MET starter currently on the injur of this Yankees into the road trip of the ninth six loss in Baltimore, back and forth game that the Yanks tied with two outs of the ninth inning, but Anthony Santander a walk off three run homer bottom of the ninth. The NBA the East Finals are tied at one. The Celtics won by twenty five in Miami.

NHL Tampa Bay one again at Florida. The two time defending's the Onley Cup chances are up to zip first playoff loss for Colorado beaten by St. Louis the Rangers tonight. I need to play like they did in the first two periods of Game one and not like they played in the third period or they over time. It's game two and Raleigh, after the Hurricanes won the other they'll

play around two of the PGA Championship today. And Tulsa Rory McElroy who won the two thousand fourteen p g A and there's not one of major since has at once. That lady shot sixty five. He played with Tiger Woods, who shot seventy four bogey six of the last ten holes. I just can't load it, and uh loading it hurts, Prussing off it hurts, and uh locking hurts. The twisting hurts. So so I don't play that. I don't do that. Then I'm all right. Thank You're very much in danger.

Missing the cut live PGA covering Bloomberg Radio today starting at four p g eight Tonight show at eleven, John Stash were Bloomberg Sports John John Thanks five thirty seven on Wall Street. Hands time now for the tri State Business Report. For that, we're joined by Bloomberg's Ed Quarry. US Labor Board prosecutors playing to accuse Amazon of threatening Stanford. It alleges they were told if they unionized, Amazon could pay minimum wage. It also accuses Amazon of punishing an

employee for seeking a paid June teenth holiday. The allegations are among many taken to the Labor Board by the Amazon Labor Union. The number of short term rentals in New York City is not pacing the number of available apartments. Total number of short term rentals of entire homes is more than thirteen thousand, according to air d n A rental inventory meanwhile in Manhattan, Brooklyn and a part of Queen's, however,

is just over undred. Grub Hubs attempts to drum up Buzz for its food delivery service by offering free lunch in New York didn't work out. On Tuesday, the company offered New Yorkers a free lunch excluding tips and feast surgeon orders resulted in the laid or absent deliveries that your Bloomberg Trying State Business Report. I'm Ed Corey, Thanks Wall Street. Bloomberg Radio is on the year from San

Francisco to New York, London to Hong Kong. Let's check in an hour with their global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Courtney Donahoe on w h S and Louisville, Ford is recalling more than thirty nine thousand SUVs on a virus. I'm Gina Servetti in for w f l A in Orlando. I'm reporting that Moriizon plans to invest in additional one forty nine million

dollars in Florida to meet a surge in growth. Finn Lisa Matteo And on w b Z in Boston, I'll be reporting on teen babysitters making big Bucks him Bed Cory on w p a M in Cleveland. I'm reporting April home sales fell in Northeast Ohio. I'm Steve Podascan ten ten Wins in New York. We're talking about US labor officials accusing Amazon of threatening State Island Warehouse staff

if they voted to unionize. And those are SAVA. These stories are twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. Shares of Ross store Is have lost more than a quarter of their value this morning, the discount retailer cutting its outlook for profit and sales. Let's get the story this morning and

this report from Bloomberg's Charlie Pellett. Ross said it sees the key retail metric of comparable sales falling two to four percent for the year versus previous guidance of unchanged to a gain of as much as three and also trimmed its forecast for earnings per share. The results spell out how quickly the panorama is shifting. Is accelerating inflation eats into consumers purchasing power and erodes companies profits. Ross's outlook downgrade follows similar moves this week by Cole's, Target

and Walmart in New York. Charlie Pellett Bloomberg Daybreak and the earnings continue to roll in Deer reporting today a preview from Tom Busby. The big focus for investors is whether demand for Deer's farming equipment remained strong as the war in Ukraine has brought production of one of the world's largest grain producers to a stand still. Investors will also watch the impact of those global supply chain problems

that have hamstrong a number of manufacturers. Consensus calls were adjusted earnings for share of six dollars seventy cents on revenues of just over thirteen and a quarter billion dollars. Tom Busby Bloomberg Daybreak, Thanks Tom Down. Futures right now off three hundred points vs. Is Bloomberg just ahead? Is there a risk that the Federal Reserve is actually overdoing it? Will speak with pre Adminstrah Rate strategists at TD Securities.

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 Dictape is a Bloomberg Business Flash and I'm Karen Moscow and stocks in Europe and US stock index futures are pushing higher this morning after China's latest measure to bolster is economy injected a note of optimism at the end of another volatile week

for global markets. We checked the markets every fifteen minutes throughout the trading day on Bloomberg s and T futures up about forty two points down, futures up two hundred seventy and NASTAC futures have one hundred seventy seven the decks in Germany's at one point seven percent, a ten year treasury down six thirty seconds, field two point eight five percent yield on the two year two point six

two percent. Nimeg S crude oil has done a third of percent, or thirty seven cents at a hundred eleven dollars eighty four cents of barrel coll Mexs gold up about two two tents of a percent, up two dollars seventy cents at eighteen fifty fifty announced, the euro one point oh five eight one against the dollar, British bound one point two four seven five and the end one twenty eight point one one. And Bitcoin this morning is

up about tenth of a percent. It's at thirty thousand, two hundred sixty dollars, and that's a bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. President Joe Biden rhymed in South Korea, where he's visiting a Samsung Electronic semiconductor complex. Biden is seeking to bolster supply change that reduce reliance on China. Biden's first trip to a jaz president, which runs through Tuesday, also includes Japan.

US health advisers are urging a booster dose of Fiser's COVID nineteen vaccine for kids ages five to eleven. CDC Panels signed off on the booster shots yesterday. In the NBA playoffs, the Celtics have even their series at a game of piece after beating the Heat one seven one o two. In baseball, the Yankees lost to the Orioles nine six the Mats one along with the Red Sox. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred

journalists and analysts more than a hundred twenty countries. I'm Michael bar and this is Bloomberg, John, Michael, thank you very much. It is now five forty nine hond Wall Street. We are lying from the Bloomberg Interact of Brokers Studios. This is Bloomberg Daybreak. Well, the Federal Reserve is on the rate hiking path to try and slightly inflation Dragon, But isn't there a rest the Fed might be actually

overdoing it? Preamsra rate strategies that TV securities that joins us now prea the market seems to be pricing some aspect of that that the Fed may actually be on the path through overdoing it. Is that right absolutely? I think, you know, the interest rate market, I think for the entire year was really pricing in inflation and the Fed that raising rates more than was priced in. I'd say the last few weeks the market has gotten concerned that, you know, the FED really doesn't have a lot of

control over inflation in the near term. A lot of the inflation increases because of commodity prices, you know, and and and the China lockdowns. So if inflation stays high and we're seeing signs that it's persistent, I think the fear that the market is expressing now is that the Fed could overdo it, that they could you know, tighten into a slowing economy. And that's why if we've noticed interest rates falling, we've seen the curve steepening, and we've

seen equities, um, you know, performing as well. I actually think it may be a little too early for that fear, because the Fed right now is only indicating that they will get to neutral expeditiously. I guess that's the word that the Fed's using beyond neutral, they're keeping options open,

and I think that's the real test. Near year end, when we get to neutrals around two and a half on the fund's rate, Does the FED at that point say inflation is too high and we have to get to three and a half four I think then a recession is very lightly Or do they say that inflation is heading somewhat lower and therefore we can tolerate slightly higher inflation and they actually slow down the pace of

rate highs. I think that's the big decision that the FED will have to make, and that's going to determine whether we head into a slowdown or or a full recession. Does anybody know what the neutral rate is going to be? Good point? Um, we don't, and the FED is also admitting that they don't know. I think because part of the issue with the neutral rates you have to have a sense of inflation, which has been notoriously hard to focust. I'd say there's more or at least I'm more convinced

on the real neutral rate, which is around zero. But if inflation is you know, inflation expectations over the next year, that's three percent then three percent is closer to neutral or does it come back down to two? But I think in general the FED is in the two and a half to three percent camp would be somewhere near neutral. It struggled the market was pricing in three and a half percent on the funds rate just two weeks ago, which I felt was overdoing it in terms of the

optimism that the FED can hike that much. I think three and a half as well above neutral. We could debate whether it's two and a half or three. I think that's fair. Are we seeing the possibility of returning to fiscal stimulus in parts of the world, Um, I think it's tough because there's not a lot of physical

space globally, you know. I think there was a lot of physical stimulus post COVID and in certain parts of the world, in the US, I would say parts of em I think that physical space is gone, particularly given how much of a risk inflation is. I do think there's monetary space, um. And you know, China is showing that China also potentially does have physical space because they

have significant slowed down in growth. So I think the global growth headwind UM is also you know, going on on the US, and if we do get stimulus elsewhere physical or monitory, I think would be so overnight was was monetary out of China. Um. I think that can help, It can help slow down, But again, the US is a relatively closed economy, so if the Fed continues to raise rates and do QT, I think that slow down fear will will remain with us. How I'm tight of

the financial conditions right now. They are fairly tight. Um. They're not as tight as the issues when you look at it on a long history COVID sort of you know, messes up our historical metrics, so they're not as tight as COVID, but that's a very high bower. They're not as tight as the financial conditions you know into the Lehman crisis, but they are fairly dight. The The issue is, you know, well, we are very easy. So on a change basis it looks worrying. On an absolute basis, they're tied.

But are they tight enough to cause a recession? You know, I think that I do struggle with I think they do slow down the econmany have the reasons for buying treasuries, have they changed significantly? About twenty seconds left? I think so yes, I think particularly in the front end, so the zero to five year sector. I like owning that because if the economy does slow down, I think the fact will not be able to raise rates as much

as this priceton. So I think that's a new dynamic in the in the last few weeks, which makes a reason to buy that very front end. Always a pleasure. We appreciate it, pre admits for a global head of right Strategy at TV Securities with us this morning, look at the benchmark ten year yield right now to eighties six up two basis points, Karen, all right, John, thank you, and it's fifty four on Wall straight. It's time for the Bloomberg Law Report, brought to you by American Arbitration Association.

Business disputes are inevitable, whereas all faster with the American Arbitration Association, the global leader and alternative dispute resolution for over ninety years. More at a dr dot org. You know, here's a legal story we're watching this morning. A family in Philadelphia is suing TikTok over the death of a ten year old girl who allegedly participated in an online challenge in which people choke themselves until they black out.

Nila Anderson's family accuses the social media platform of marketing and effective product and negligence, alleging that the dangerous dare was thrust in front of the girl by TikTok on her for you page. For Moura Bloomberg, student Grosso speaks to Eric Goldman, a professor at Santa Clara University Law School. The mom is not suing the people who posted the challenge, but she's suing the social media platform the challenge was on.

Is that unusual, right? So the lawsuit then seats to treat the video services as if they're providing dangerous content or harmful content in a way that can be legally restricted. And this has become pretty common in internet law today to try to treat internet services as if they're a dangerous product that they murder people like smoking kills smokers, and those legal theories are being tested in the court

right now, but we're seeing them quite frequently nowadays. The suit alleges that TikTok's algorithm determined that this deadly blackout challenge was likely to be of interest to the ten year old girl, and that it showed up on her for you page so does the suit depend on proving this algorithm did that well? To be clear, TikTok didn't have some kind of magician at the back end saying I think that this is the kind of content that

this particular viewer is most likely to respond to. It's all done by algorithms, so there's a bunch of formulas that set up what content might be appropriate or not for the audience. But they're never going to be perfect, and they're always going to make assumptions about the people that they're exposing too. Now, one of the questions I underline this lawsuit is whether or not the video actually

caused the death. And this is a complicated question in legal circles because there's a lot of things that contributed to the ultimate death, and we have to then establish that the video is the basis is the death and that TikTok then could have done something to prevent that from occurring. And so there's a bunch of legal questions embedded in this assertion that the algorithms caused the death. We have to really take a look at that from a legal standpoint, and it's not clear what the answers

will be. Does the communications decency act play in anywhere here, it does so section two. There he says quite simply that websites aren't liable for third party content. The videos that issue here appear to be third party content uploaded by other users, and so on. As space it appears to TikTok may be able to say that the lawsuit is trying to hold TikTok libel for publishing third party content what section to thirty c d A doesn't permit.

And as Erik Goldman, a professor at Santa Clara University Law School, spaking at the Bloomberg's doing Grosso, it's more in that interview, plus analysis of the latest legal news. By listening to the Bloomberg Law Show attend PM Eastern Time or subscribing to the Bloomberg Law Podcast, and attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com. Futures Hire this morning, SMP Future is a forty three points and del Futures up two

hundred seventy nine. As Day Futures up a hundred seventy nine and still ahead. On Bloomberg Day Break, I check on the business headlines and all the news you need to start your day, this is Bloomberg