Bloomberg Daybreak: May 20, 2022 - Hour 2 (Radio)

in New York City. Plus, the January six panel wants to question the GOP lawmaker about the Capitol tour. I'm Mike lo Blomberg More Ahead, I'm John Stash Sharon Sports. The Yankees lost the Mets one but learned of a serious injury, and Rory McElroy has the lead of the

PGA Championship. That's All's trendy head on Bloomberg Daybreak on Bloomberg eleven, Free 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 buy the Bloomberg Business app. And good morning. I'm Karen Moscow and Tim

John Tucker. Bloomberg Day Break being brought to you by B and Y Melon's Pershing Inside Conference back in person June fifteenth through the seventeenth at the Gaylord Resort in Grapevine, Texas. They'll visit registered now at Inside dot b n Y Melon dot com and US Knock Index futures are higher this morning six o one on Wall Street. We checked the markets every fifteen minutes throughout the trading day on Bloomberg.

Right now, S and P futures are up forty one points down, Future is up two hundred sixty five and as day, futures of one hundred seventy two ten year Treasury down six thirty seconds, held two point eight six percent, and they yield on the two year two point six

two percent. John and Karen, let's get more on the markets this morning, and uh, right now again, as you say, the Dow futures are up two hundred and sixty eight points, All right, John, Yev she said, features are higher, and we're closing out what appears to be another losing week. First stocks In fact, the SNP five is on track for a seventh straight weekly decline and be its longest decline in twenty one years, and traders are bracy for

another volatile day ahead. The monthly expiration of options tied to equities and exchange traded funds takes place today. Kathy and Whistle is a managing director at Morgan Stanley. Being far volatile, they are uncertain. Um, it's giving everybody a little bit of uneasiness and a lot of people asking what to do in these markets, and Morgan Stanley is Kathy and Whistle may have the comments on Bloomberg Business Week Herd weekdays from two to five pm Eastern on

Bloomberg Radio. The SNP five hundred has lost more than a trillion dollars in market value over the past four sessions. At one stock not helping market senterment. This morning, Karen Applied Materials down one percent and early trading after the chip maker delivered a week forecast. We get that story

and this report from Bloomberg's Charlie Pellet. 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 had estimated six point six nine billion on average.

According to data compelled 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 pet Bloomberg Daybreak.

All right, Charlie, thank you. The semi conductor industry will be in focus when Joe Biden makes his first presidential trip to Asia. The President's time in South Korea and Japan will focus on security and supply chains, and Bloomberg's

Amy Morris has details from our newsroom in Washington. The president is set to visit a Samsung semiconductor complex as he seeks to shore up supply chains that we're use 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. All right, thanks Sammy, and meantime on Capitol Hill, the US Senate has passed an aid package for Ukraine mor more than forty billion dollars, now always President Biden's signature. At the same time, the Administration says it is providing Ukraine with

another one million dollars in military assistance. Well John. The baby formula shortage is also in focus this morning. According to Reuters, the world's second biggest baby formula maker is increasing shipments from Europe to the US. The move, Biden known comes after added laboratories how to recall some products. Virginia Senator at Tim Kaine is a member of the Senate Forum Relations and Armed Services can may days. We're 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 plan down has reached an agreement to do some fixes. They should be reopened 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. And Virginia Senator Tim Kaine spoke with our Washington correspondent Joe Matthew on Bloomberg Sound on Catch the program weekdays

at five pm. Easter and on Bloomberg Radio. And 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 to Tail's live from Bloomberg's Ready Too Young, Redia, Good morning, Good morning John. CDC director Rochelle will Lynsky recommends the booster for children ages five to eleven years old. Making the shot available to school age kids will provide much needed protection against

the contagious omicron cell variants spreading across the country. Well Lensky 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 Randa Young Bloomberg Daybreak A Right. Branda thank you. Well, there's also a sign today that the travel industry is bouncing back from the pandemic. Leisure travel is now back to pre COVID level. So let me get the story from Bloomberg's Doug Kristner. 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 Dug Kristner, Bloomberg Daybreak, All right, thanks Doug, and we're seeing the carnage in retails docts continue this morning. Shares of Ross stores are more than twenty eight percent in early trading, the discount retailer cutting its outlook for profit and sales. Ross's outlook down grade follows similar moves this week by Cole's target at Walmart head of the cash open on Wall Street HASMP futures up forty three the down futures

up two eight points. This is Boomberg as six seven on Wall Street time to bring in Michael Barr to find out what else is going on in New York and around the world. John, Thank you very much. SARA Health officials say a possible case of monkey pox is being investigated in New York City. It 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 test for the virus are being conducted and if positive, will be sent to the c d C for confirmation. Experts say it's a rare illness. University of California, San Francisco Professor of Medicine R. Peter Chin Hong is an infectious disease expert. I don't think it's really going to run rampants in it,

as opposed to smallpox, which is highly howly transmissible. Dr chen Hong says, if you've been vaccinated for vaccinated for smallpox, you'll be protected against monkey pox because it's really closely related. 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. His mother spoke, his heart is broken, he has sleeps,

he has eaten as a mother. What am I supposed to do? Earlier yesterday, the accused gunman, who is white, eighteen year old Peyton Gendren, silently faced a murder indictments in court. 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 legis h gave final approval to the bill, which would ban almost all abortions

from the moment of consumption. Vice President Kamala Harris hosted a virtual meeting with abortion 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 a Republican lawmaker who is said to have led a group tour of the capital a day before the attack. Georgia GOP representative Buried louder Milk is

being asked to answer questions before the Congressional Committee. Panel chairman Bennie Thompson said the committee's review of evidence contradicts denials from some Republicans that there were no tours or large groups brought to the capital. New York Congresswoman Alexandria Ocassio Cortes confirms she's engaged to her longtime partner Riley

Roberts were yet on her wedding day. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg. John alright, Michael, thank you very much. He's now six ten of Wall Street and the sign of the Bloomberg Sports Update. Here's John Stown Howard all right, John Thrilling. Win for the Mets. They've had a lot of those

already this season. The Cardinals got two on runs from called Goldsmith they let in the night day the Mets tied it. St. Louis went back ahead top of the ten heroics in the bottom. He goes ready a belt. Ty said his pitch Alto built way back. It's love God, that's the fun of the ten lot to drive one out of each Gydagos have the Mets for the off. Serious victory bigs to come. Mets won seven six. Alonzo now leads all of baseball the 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. A Scherzer and Jacob de Graham both are hurt, and so was another starter, Tyler Miguel, just as the Mets at their walkoff. When the Yankees suffered to walk off loss in Baltimore, the Orioles Anthony Santander at three run over bottom the night off Lucas Letkey for a nine six Orioles win. The Yanks had tied the game with two out in the

top of the ninth. The NBA Playoffs Celtics up twenty five at half time. They won Game two in Miami by that's hied the series. Stanley kept playoff wins for St. Louis and Tampa Bay, both on the road. Rangers looking for a road win tonight It's Game two and Raleigh after the Hurricanes took the opener in overtime. Amazing the thing. Rory McElroy hasn't won a major since the two thousand fourteen PGA. McElroy leans this year's pg A by one shot.

Going to today's second round and tells U Live covered Bloomberg Radeo today starting at four with the PG eight. Tonight show at eleven, John Dashaward Bloomberg Sports John all Right, John, thanks very much. Ahead of the cash show to the Wallsbury NSP futures of forty four, the dawn futures of two eight, the NASA futures one hundred eighty onloom points higher. You're listening to Bloomberg and we closed out a trading week that saw the SMP five hundred lose more than

a trillion dollars in market value. Just ahead, we'll pick the brand of Brian Levitt, Global market strategists at Advansco Markets headlines and breaking news twenty four hours a day at Bloomberg dot com, The Bloomberg Business and at Bloomberg quick take, This is a Bloomberg business lash and I'm Cameron. Moscow. US stock indise futures are pushing higher this morning, along with European shares after China's latest measured a firm up its economy and 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 P futures of about forty two points down, futures of two hundred sixty seven and NASDACK futures have one hundred seventy three the day. In Germany's up one point seven percent, the ten year treasury down eight thirty seconds two point eight six percent. They yield on the

two year two point six two percent. Nimex screwed oil is done about two tens per cent, or nineteen cents at a hundred twelve dollars two cents a barrel. Comex gold is up to ten percent or three dollar sixty cents at eighteen fifty one forty anounts. The euro one point oh five eight nine against the dollar, British found one point two four seven five and the yen at one eight point one one and Bitcoin this morning up to ten percent at thirty thousand, two hundred ninety dollars.

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 is in South Korea. He will meet South Korean President Yume 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 at North Korea will conductibilistic or nuclear tennis around Biden's visit to South Korea and Japan end.

The Senate has passed a forty billion dollar package of military, economic and food aid for Ukraine. The vote was eighty six eleven. In the NBA playoffs, the Celtics have even their series that a game of peace after beating the Heat one seven, one oh two. In baseball, all the Yankees lost to the Orioles nine six, the Mats one and along with the Red Sox, 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 bar This is Bloomberg John Michael, thank you. Coming up on six twenty on Wall Street. We are lying from the Bloomberg Interactor Broker Studios. This is Bloomberg day Break. Global shares on course for in historic seventh week of declines. Let's try to get you set up for the trading day head now. We're joined by Brian Levitt, global market strategist at Investco.

Brian Happy Friday. What is a head for investors? Well, it looks like it means at least the futures are up this morning. But it's certainly a challenging market environment, which tends to be the case when you're persisting through

a period of policy uncertainty. And even though the market has gone a long way to pricing in multiple Fed interest rate hikes, we still have inflation very elevated um and so volatility is likely to be uh persistent here until we have greater clarity on the inflation picture and glater greater clarity on where the set is going to

ultimately head. The vix remains elevated right now. Well, streets fear gauge, how much more volatility it had usually when usually you see the VIX at around forty when you get to a market bottom. We've even seen the VIX at forty a couple of times in the last cycle when we didn't end up in a recession, whether that was with the FED first rate hike twenty eleven during the European debt crisis. So volatility is elevated. I don't think we've seen the full level of it yet or

the full capitulation. We're certainly getting closer. If you look at the number of stocks on the New York Stock Exchange training above their two entre day moving average, we were at fifty percent in March. We're now down below. Usually market bottoms are around ten to fifteen percent. So we've seen a big move, we've seen a big wash up, but nonetheless, inflation is still elevated. Policy still uncertain, so there's no real catalyst here, at least in the short

term for markets. And would you think it's full of err and to be buying on depths right now? Well, I think if you're a long term investor, you're starting to see some good value emerge in the market. So if you're trying to get the next days or the next week's right, um, buying the dips could be a challenge, but if you're a long term investor, I think it certainly makes sense to consider starting to do so. I mean,

we've looked at past downturn. Even if you invest halfway through it, you're still far better off over the long term than having not done so, so you know the messages. Near term challenges will ultimately see the economy slow and some of these supplied demand imbalances start to work their way out Directionally, inflation should start to come down, which will set up a better environment for stock. So we may not be all the way through it, but again, if you have your eye on the long term, there's

good value that's starting to emerge. And on the earnings front, of course, with Walmart, Target the other retailers, I guess the lesson to the takeaway there is margin compression. How much more of that are we going to see? What are the lessons we get for that? Yeah, margin compression, But let's remember margins were a very very elevated levels, and so I think the way to think of this is it's a slow down in demand where costs are still quite elevated and so that creates a difficult a

drop in the in the short term. But this slowdown is likely to bring UM. As demands slows, you're likely to start to see inflationary pressures moderate. Now, of course we need better clarity on China with zero COVID policy. UM cases in Shanghai do seem to be coming down. Policy makers in China are trying to support growth. So you know, if we can start to see some movement they are. As demand slows, we should start to see inventories get rebuilt UM and and and some of that

pricing pressure should start to come down. But but you know, margins coming down again from from very very elevated levels. Do you want to gauge the risk of hard versus soft landings, Well, look, it's it's gonna be a challenge. I mean, it's hard for the fit to navigate this um and so you know growth is going to slow meaningfully.

Now that all the debate is whether or not we're going to have a recession with the markets are already pricing in a pretty a meaningful deterioration in growth UM and the reality is the fundamentals of this economy are pretty sound. That the households have been in good shape, UM, the banking system strong, the business sectors has been has been, UM is well capitalized, and so even if you were to have a recession, it would likely be a pretty

mild one. Brian. Always a pleasure appreciated. Brian left, global markets strategist at Investco with us this morning and ahead of the up on the Wall Street futures in the green this morning. The Dow futures of two D ninety nine points as of the immate of futures six right now, and that asset futures are on one hundred and eighty nine points. As for treasuries, the benchmark tenure yield up two basis points right now at two point eight six percent.

You're listening to Bloomberg day Break, the Bloomberg Weather from maybe Ron just robbed Caroline Desk five Advisory and effect through nine o'clock this morning, the fog will burn off, giving way to low clouds, then partial sun the possibility of showers. Broadcasting live from the Bloomberg Interactive Brokery Studio in New York, Bloomberg E Living free on to Washington,

d C, Bloomberg nine one to Boston. Bloomberg one O six one to San Francisco, Bloomberg N sixty to the country, Sirius XM CHADO one nine and around the globe, the Bloomberg Business and Bloomberg Radio dot com. This is Bloomberg Daybreak at six thirty on Wall Street. Good morning, I'm John Tucker and I'm caroen Mosca. We're just about three hours away from the open of US trading. Time for the five things you need to notice start your day.

Brought to you by Interactive Brokers ib k Our Investment Advisors switched to Interactive Brokers for lowest cost global trading and turnkey custody solutions, no ticket charges and no conflicts of your interests at ibk R dot com slash r i A first US Future is higher as we close out a trading week that saw the S and P fi've harder to lose more than a trillion dollars and market value. The index is down almost from its January third closing high, and it 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 Fox 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 in and Citadel CEO Ken Griffin made the comments to Bloomberg's francying Laqua at the Bloomberg Intelligence Market Structure three point conference in New York.

Results from Applied Materials weighing on some sentiment this morning, shares down almost one percent in early trading, the company delivering a week forecast as chip shortages persist. Training to politics now, President Joe Biden heads to South Korea and Japan to reassure allies of America's commitment to Asia. On

Bloomberg's 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 t 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 Ryan. The pandemic also in focus this morning with news on vaccine eligibility. Younger children across the US can now Receiva COVID boosters shot developed by Fiser. Now let's get to tails. Lying from Bloomberg's Rind Young. Good morning, Reneva, Good morning, John CDC dre to Rochelle Willinsky recommends the booster for children ages five

to eleven years old. Making the shot available to school age kids will provide much needed protection against the contagious O Macron subvariants spreading across the country. Wellinsky 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 Daybreak. All right, Nita, thank you, and that's the five things you need to notice start your day. Brought to you by Interactive Brokers and straight

to hand your latest local headlines. This is Bloomberg. Thanks give six thirty three on Wall Street. Let's bring in Michael barn Now and tell us what else is going on to New York end around the world, John, Thank you very much, Sarah. Possible case of monkey boxes being investigated in New York City, adding to the case already reported in Massachusetts. Health officials at preliminary tests for the virus are being conducted and if positive, will be sent

to the c d C 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 chinn Hong is an infectious disease expert. There's an adopted boxing from monkey pox. But the interesting thing is that if you've been voxinated with smallpox, you get

protection against monkey box because it's really closely related. Dr 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 Capital. The committee wants louder Milk to testify. Tops Markets valve they would reopen their Buffalo supermarket, which was the scene of Saturday's deadly mass shooting. Meanwhile, the eighteen year old suspected gunman appeared in courtier yesterday, the Oklahoma state legislature passed bill which would ban almost all abortions from the moment of conception. The bill includes narrow exceptions to protect the life of the mother and for the 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. Emily Wales, president of the Great Plains Oklahoma Chapter of Planned Parenthood, called

it a dark day for human rights. Today's ban, which encourages bounty hunters to see their neighbors or strangers for accessing abortion care at any stage of pregnancy, is a reversal of history happening in front of our eyes. Wales, with Planned Parenthood agrees with Vice President Harris, who called the bill outrages. Majority Leader Chuck Schumer has told colleagues and the Senate he plans to bring an antitrust bill to the floor in early summer that would crack down

on the major jack platforms. The bill is said to prevent platforms from favoring its own content. Global Dunes twenty four hours a day on air and on Bloomberg Quicktake, powered by more than the journalists and analysts and more than a hundred twenty countries on Michael Barr, This is Bloomberg, John, Michael, thank you. He's coming up to five and thirty sits under all screen. Has signed out for the Bloomberg Sports Off Day. Here's John's town Showers. John bittersweet day for

the Mets. A thrilling win at City Field seven six over the Cardinals on a walk off two on Homer tent Any by Pete Alonso. But during the game came the upfit on Max scherz Or, who took himself out of Wednesday's game, and then the m R I showed an oblique strain. Shows are off to a five and one starters a Matt He's gonna miss the next six to eight weeks, and Jacob mcgraham has yet to pitch. No timetable on his return. Tyler McGill is another met

starter currently on the injured list. Yankees into the road to the nine six loss in Baltimore, back and fourth game to the Yanks. Tied with two outs of the ninth that he but Anthony santandair I'll walk off three run Homer Bot of the ninth NBA East Finals are tied at one of The Celtics won by twenty five in Miami. NHL Tampa Bay one again at Florida, now up to nothing. First playoff loss for Colorado beaten by St.

Louis the Rangers tonight. You need to like play like they did in the first two periods of Game one and not like they did in the third period of the overtime. It's Game two and Raleigh. After Carolina won the opener. They'll play Round two of the PGA Championship today and Tulsa. Rory McElroy has won this tournament twice. He wanted in two thousand and fourteen, hasn't won a major since. McElroy's got a one shot lead after a sixty five. He played with Tiger Woods, who shot seventy

four bogey six the last ten holes. Struggling physically loading it hurts. Uh tossing off that hurts, and UH walking hurts. The twisting hurts. So I don't play that if I don't do that. The amore right, Tiger very much to be missing the cut. Live PGA coverage Bloomberg Radio Today started at four in the PGA type show at eleven, John Statue Bloomberg's board Punk All right, thanks a lot, John.

It is now six thirty seven on Wall Street. Time to take a look at stocks, some of the names that are moving in the pre market, and for that we are joined by Bloomberg Radio and TV Marcus correspondent Critty Gupta. And I guess we weave into this the presidential trip overseas. We do. I mean, I think this is being viewed as a lens of geopolitics, as trade negotiations, but there is a very clear market read through and

you're already seeing it this morning. President Biden, for those are not familiar, visiting a good several countries in Asia, starting off with Korea's actually visiting the Samsung site this morning and overnight. Actually, you did see the costpy index, which is the Korean benchmark up higher. And remember Samsung, I think makes a good chunk of that. It is a heavy weight in the costpy index. So when you see factory it's enormous. And remember Samsung is one of

the biggest suppliers of chips worldwide. So to kind of strengthen the alliances strength and supply chains is good not just for the United States. Before a lot of the chip companies broadly amid the chip shortage that you're seeing. So right off the bat, you are seeing the likes of Advanced micro devices a m D up to the tune of two point four percent, and video as well, m v D A up just shy three percent, Intel even i NTC up one percent. The purpose of this

trip his twofold. One of it is going to be to secure the supply chains. The other is to secure the Indo Pacific alliance against China UM. This is really important because as China grows in economic kind of prowess in the region, it's really important for the United States to kind of share up the supply chains. And that's especially crucial when it comes to tech companies. Automakers, and really that comes down to chips, and that's why this

trip to Korea and specifically Samsung is so crucial. All right, let's move out to Santa Clarence, California, where we find the home of Palo Alto Networks. Palo Alto Networks, and no, it is not a surf company, although it does sound like that, doesn't it. Uh is a cybersecurity company. They do a lot with software p A and W is the company's ticker up eleven percent this morning. They beat earnings and really cited a strong buildings here. This is important.

As we talked about the theme of cybersecurity growing more and more, a lot of people have just recently and I say companies have recently converted over to cloud infrastructure. So this is a company that takes that cloud infrastructure and as an extra layer of cybersecurity. And we also know speaking of present Binds agenda, it has been strong on that front as well. The other name I want to bring to your attention very quickly is ROS stores

are retailers. So let me guess it's this morning, it is ugly r O S t S your taker down twenty five percent for international audience This is a discount retailer that cut its profit in sales outlook. To me, the most important part of this yesday sided inflation, the war Ukraine, et cetera. But the most important part to me is comps sales falling two to four percent. Their previous guidance was as much as three percent growth. They all had a pretty good run during the pandemics, So

tell a big move. Don't cry too much, thank you, pretty Gupta. Bloomberg Radio and TV Markets correspondent and ahead of the open Dolla futures right now up SMP futures. You're listening to the Bloomberg day Break. Bloomberg Weather for today, A dense fog that should start to burn off, clouds giving away the partial sun. There is the chance of late day showers or thunderstorms. The high today about seventy degrees.

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. Futures are rising this morning, and we're watching earnings from dear across the Bloomberg. But you to the first word breaking new dance for today's morning call. Here's Bill Maloney. Bill, good morning, Hey, good morning, Karen.

That's right. US futures are in the green after yesterday's weakness, with Doubt futures up two nine points, sides game forty four, NASA futures rise by one seventy eight. The US ten year at two point eight six percent, Gold is up three, Oil is a little changed, and bitcoin is also quiet right now. Hong Kong rose three percent overnight, while up markets are also in the green, led by games in

Germany and Italy. Back in the US, nothing to report on the economic front, and after the bellas night Applied Materials Q three forecast missed estimates and power Outdo Networks topped estimates. Shares They're up eleven percent pre market. Regarding earnings this morning, you mentioned Dear, Dear, sales missed estimates

and foot Locker EPs beat estimates. Rapid things up. Co America was raised to outperform over at Robert Baird Live from the First or Bigger News Descomb Bill Maloney, Karen, all right, Bill, thank you into your live breaking news of her Bloomberg type squawk on your termin I'll ask you you a w K and that's a Bloomberg business Flash. Now is Michael Barrow with more on what's going on around the world. Michael Karen, thank you very much. President

Biden arrived in South Kowia. Everywhere he visited an electronic semiconductor complex. Biden is seeking to boolsters fly change that reduced reliance on China. Biden's first trip to Asias president, which runs through to Tuesday, also includes Japan. US health advisers are urging a booster dose and finds here's COVID nineteen vaccine for kids ages five to eleven. A CDC

panel signed off on the booster shots yesterday. In the NBA playoffs, the Celtics have even their series at the Game of Peace after beating the Heat one, one o 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 here and on Bloomberg Quick Take, powered by more than twenty seven hundred journalist and analysts in more than a hundred twenty countries. I'm

Michael Barr. This is Bloomberg Karen. All right, Michael Barr, thank you. And it is currently six forty nine in on Wall Street. We turned to news and science and Technology Now with the Bloomberg n j I t is stem rapport and here's what's making news on science, technology, engineering and math. Vacation travels back to pre COVID levels.

According to our report released by the MasterCard Economics Institute, people are feeling more comfortable heading off to far flung adventures despite a surge in cases and average airfares jumping eighteen percent globally since the start of the year. Boeing and Nassa have launched the long delayed at Starliners space Capsule. The unmanned spacecraft is headed for a rendezvous with the

International Space Station. It was Boeing's third launch attempts since the two failed attempts left Bowing perplexed, and it left SpaceX is the only American option for ferrying astronauts into space. Clomberg News has learned Apple executives have previewed their next big bet of the company's board, a mixed reality headset. It indicates that development of the device has reached an advanced stage. Board members, including eight independent directors and CEO

Tim Cook, convene at least four times a year. We're told a version of the device was demonstrated during the latest gathering, and that's a Bloomberg and j I t Stem report. John. All right, Karen, we are live from the Bloomberg into Hampton Broker's studios, where it is now

six fifty on Wall Street. Time to check what's going on in d C. Some of the top stories in the nation's capital include, of course, President Biden in Asia for the first time as commander in chief, the fallout from this week's primary contest, sending the stage for the battle in November, the Senate passing at forty billion dollar bill for aid to Ukraine. And let's take a deeper time with some of these stories this morning with Wendy Schiller,

Director Brown University's Talman Center for American Politics and Policy. Wendy, thanks for being with us this morning. Happy Friday. Uh. In fact, President Biden speaking right now, he's in South Korea and a giant chip factory. And I got it. Actually, just from the political perspective, how does this play at

home and doesn't really matter? Well, John, I mean, I think I think having the president travel and represent the United States globally usually is a plus for the United States, but also for Biden because of course with COVID and UM lots of other reasons, I'm restricting his travel and interaction with you know, Americans. You know, not getting out for Biden is a real disadvantage because you know, he sometimes he's on his game when he gets a speech

or press conference. Sometimes he's not so coherent. So having him look good traveling abroad, you know, counters some of those images that we have of the president or sort of allegations that he's not up to the job. You know. I I earlier just a personal and was talking about shopping the gas tank was it was like Bucks this morning. The grocery store was eighty Bucks didn't get all that

much yesterday. There are big concerns on the domestic front. Yeah, I mean an economy like this where we have relatively low unemployment. Uh typically is it for Democrats? You know, Democrats typically their constituencies worry more about jobs and unemployment, and Republicans used to be sort of the wealth here and they worry much more about inflation in terms of

the degradation of their assets and investments. But now you know, these things are all demographically mixed now in terms of allegiances. Republicans are getting more lower income voters and the Democrats are getting more hiring income voters. So it's flipping the script that we've been used to for politics, and a lot of more people who typically vote for the Democrats or would be voting for the Democrats in November, are very concerned about maunaging the economy, which is a global

in nature. Uh nothing, you know, showed up more than that, than than the COVID pandemic, and you know, we're not used to that idea. We're used to the president can control the economy, but there are a lot of things outside his control. So again, Americans have to kind of reset how they evaluate the president in the economy. And that's going to come too late, i think for the Democrats and Biden this November, still looking at the fallout from the primary contest, setting the stage for no member's

general election the congressional elections. Your assessment a few days out, Well, the primaries were really interesting. You know, Pennsylvania is incredibly important obviously not just for the primaries but for the presidential election in twenty four So the Senate race is important,

but the governor's race is very important. You know, the Democrats have held the governor's seat in Pennsylvania and if that flits, particularly the candidate that that one the primary, who seems to be fairly you know, extreme right, very weyal to Trump, but also wants to sort of unregister lots of voters and redo elections and is willing to change the outcome of the elections supposedly. You know, that makes a huge difference going into twenty four and also

for our security and elections. So it matters, i think, for the system for the country as much in the governor's outcome as it does for whatever ultimately happens in the Senate primary. What's interesting is that a lot of people in the Republican partment voted. A lot Republicans got out the door slightly more than the Democrats. That's got to worry the Democrats, even know the contest were a

little bit more more publicized. Um, and then you have to think to yourself, you know, is there really a split in the Republican party, because that's what we always think, But Republicans come together and unite when it comes down to their election general election. In ways, the Democrats don't. So I'm not reading into this division as if it's some signal that the Republicans will stay divided by the time you get to November. You were talking about Doug Mastriano,

the Republican pick for governor's race in Pennsylvania. Does that mean the race now becomes a TOSSA? Um? Yeah, I mean for the governor's race, it's you know, you've got Josha Piro, who's who won the primary and who's already won statewide attorney general of Pennsylvania. So you know, you've got somebody who theoretically should win this race because he's already won statewide. Um. And the Senate race is gonna be really interesting. Sederman looks like you was somebody who

could resonate a really good candidate for the Midwest. But he's had and health problems, very significant health problems, and we don't know how he'll do. We don't know how people will react to that. Uh. And and so he has still a chance to keep that seat. But if you think about it, looking at Ohio and looking at Pennsylvania, you know there's a real vibrancy to that Republican turnout. Uh. And there's a real enthusiasm on the Republican side, and you're just you have to wonder will there be the

people who show up for the Democrats. North Carolina could be an exception. You have an African American woman running for Senate who's also well known, and I think that that case, Jerry Beasley could with African American turnout, do pretty well in that contest against Um, the candidate that Trump endorsed. And you might see some still over into Georgia because you might you might have an African American incumbent versus an African American Republican candidate. So the African

American vote will be absolutely crucial. And right now you're wondering, if you're watching politics, what will get African American voters to the polls in November and Canda Democrats really mobilize that constituency. Uh, there were no claims of election fraud, well maybe save for one with a former president saying memitage to just go ahead in the clear victory UM

about forty five seconds. How's that going to play out? Well, you know the question is given inflation, given COVID given obviously, Uh, you know, shortages on the on the shelves and grocery stores. You know, if this persists, I don't think that mid terms will be about for the suburban Republican voters who are key to winning this race. They may be for the Trump supporters, but not everybody else. And so the

Democrats have so many things to worry about. Uh. One wonders whether they should keep focusing on Trump uh and sort of bother to relitigate this or just move on and say where the party that improves the economy, which statistically has been true for the last thirty years, that they inherit bad economies and they do better with them. So, you know, they've got to get back to that message what can they do to make daily life better? And

reduced to focus on Trump and the Republican divisions. I think that you know, you gotta get you would have want to get out to the polls and so forth. I haven't been able to get that message across. Wendy. Always a pleasure. Thanks Professor Wendy Schiller, Director Brown University's

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