Bloomberg Daybreak: May 23, 2022 - Hour 2 (Radio)

Plus Ukraine says up to one hundred of their soldiers die every day. I'm Michael blarn More ahead, I'm Scotts Edinburgh, Yankee swept in a doubleheader, the Mets pickup win, and the Rangers defend the hallmarks of that More coming up

in sports. That's all Trading ahead on Bloomberg Daybreak on Bloomberg eleven three on New York, Bloomberg one, Washington d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nineteen and around the world Old on Bloomberg Radio dot Com and via the Bloomberg Business App. Good morning. I'm John Tucker and I'm Karen Moscow US dock indext futures on the rise this morning.

We're coming up to six o one on Moll Street, and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg. SNP future is up twenty three points and down futures of a hundred seventy nasday futures of fifty three The decks in Germany's up half percent, ten year treasury down eleven thirty seconds held two point two percent, and they yield on the two year two point six zero percent, and NIMEX screwed oil is at

one point two percent. John and Karen. The rise in futures comes after the S and P five hunder touch bear market territory on Friday and closed lower for a seventh straight week. According to Basbook Investment Group, it's just the SNPs fourth Street of seven or more weekly losses in the post World War two era. Alan Zaffron is founding partner and co CEO at I e Q Capital.

Benthan is terrible enough, so we're we're ready for a bear market rally, but it's still probably a bear market rally until such time as there's evidence the economy is very close to a bottom. Alexanfred of i e Q Capital is not alone in thinking stocks will head lower. According to the latest Bloomberg end my pulse Pole participantsy the S and P five hunder falling another ten percent. Well. John.

While many traders see the U S economy headed for a recession, the President of the United States isn't so sure. He answered the question at a press conference in Tokyo overnight. In your view, he's a recession in the United States inevitable? No, why not? Our GDPs are going to grow faster than China's for the first time in forty years. How does

that mean we don't have problems? We do. We have problems with the rest of the world has, but less consequential than the rest of the world has been because of our internal growth from STrenD and at the same press briefing in Tokyo, President Biden made headlines who announced if the U S would defend Taiwan for much China attack, are you willing to get involved militarily to defend Taiwan

if it comes to that, you are made? President Biden also announced that a dozen Indo Pacific countries will join the US and a sweeping economic initiative designed to counter China's influence in the region. And earlier in his trip, during the stop at South Korea on Sunday, the President also address the growing concern over monkey pox cases around the world. Concern in the sense that I were to spread this conquen That's all they told me. President says

they're speaking to advisors about monkey pots. The President's National Security advisor, Jake Sullivan, says the US has a relevant vaccine reader to be deployed to treat the disease if needed. Well. The US monitors the monkey pok situation. John it is getting some relief this morning on the battle against the baby formula shortage. We get the latest life from Bloomberg's Renida Young. Good morning, Nida, Good morning Caaron a play. A load of more than seventy thousand pounds of baby

formula arrived in the US on Sunday. It's called Operations Fly Formula, an emergency program to alleviate the national shortage that's left some parents scrambling to feed their children. President Biden's top economic advisors says more formula will start arriving in stores as early as this week, and last week the President invoked emergency powers under the Defense Production Act to spur domestic manufacturing of baby formula. Live in New York,

I'm Reneda Young Bloomberg Day bring reneed to thanks. After a two year hiatus because of the pandemic, The annual World Economic Forum in Davos, Switzerland is back, but without the hype of years past. Our Tom Keene is covering the event for both Bloomberg Radio and television. This will be a different Davos, There's no question about it. I think the major thing is the change of calendar, not January but May and much more. It will be compressed

pretty much from four days down to three days. Revel schedules seem to be so tight for so many people attending. The war is absolutely front and center, There's no question about that. There will be some other themes, some ideas of risks as well, but the overarching theme besides the wars my colleague Paul Sweeney mentioned is the idea here of what do we do about inflation? And that will transcend the dialogue all the way all the way through

this UH three days in Davos. Thanks Tom. Bloomberg's Tom came reporting from Davos beginning this morning along with Lisa Brambo. It's on Bloomberg Surveillance and say two for that that's

going to get at seven am Wall Street time. Christine Leguard is one official who will be and Davos this week, John, But ahead of her appearance, the European Central Bank president is making some critical comments about cryptocurrencies because more from Bloomberg's Maria TODAYO in Brussels, she gave an interview to a Dutch television She said that this thing is trash, it carries no value, and it's an investment vehicle for some to get very rich, but for other naive people

to lose potentially a lot of money. But of course you know this is a central banker. Bitcoin, crypto everything around and we know essentially tries to defy central bankers. So of course what the central banker was ahead of these piquant to say that it's trash and she doesn't

believe in it. And Bloomberg's Maria Today Osa and so far Leguard's comments are not impacting cryptos and checking Bitcoin right now, it is higher up one percent at thirty thousand, four thirty dollars, and we're seeing shares a vm Ware up in early trading the cloud computing company and talks to be bought by Broadcom. Details on that from Bloomberg's Doug Krisner. Vm Ware, based in Palo Alto, makes virtualization software. It allows a small number of servers to do more

by enabling each to handle more than one program. Broadcom is a Singapore based giant in the semiconductor industry. A deal would help it diversified beyond computer chips. Vm Ware has a market cap of around forty billion dollars so far this year. It shares her down in New York. I'd prisoner Bloomberg Daybreak and Bloomberg Daybreak being drunt you by B and wide Melon's pershing Inside Conference back in person June fifteenth through the seventeen at the Gaylord Resort

in Grapely in Texas. Don't miss it. Register now at Inside dot b and y Melon dot com. This is Bloomberg as Sex seven on Wall Street time to bring in Michael Barr to find out what else is going on in New York end around the world. John, Thank you very much, An unidentified gunman as shouting killed another

passenger on a moving New York City subway train. Police officials say it appears to have been an unprovoked attack, and the victim, a forty eight year old man, died at a hospital in YPD Chief of Department Kenneth Corey. At this time, there are no arrests. The suspect is described as a dark skinned male who is heavy set

with a beard. Police say the shooting took place yesterday on a Q train traveling over the Manhattan Bridge at around eleven forty a m. That's the time of day when subway cars are often filled with families, tourists and people had it to brunch. Meanwhile, the victim was a member of Solomon Solomon the Sacks, and we understand that the chairman of the company said that it was a

disaster what happened, and he was beloved the victim. Japanese Prime Minister Fumio Kashita told President Joe Biden that Russia's aggression cannot be tolerated. The two leaders met in Tokyo to discuss regional security and economic cooperation. Speaking through a translator, Prime Minister Kashita Prime Minister Kashida's comments come as the United Nations agencies said the war in Ukraine as display it's more than a hundred million people from their homes.

Ukraine's president says up to a hundred of its soldiers die every day in battle. Republican Congresswoman Liz Cheney of Wyoming was one of five individuals last night to receive the two John F. Kennedy Profile and Courage Award. In their livestream of acceptance speech, Cheney, who serves on the Special Committee investigating the January sixth Capital Ryot, spoke about the continuous threat to democracy. We face a threat we have never faced before, a former president attempting to unravel

our constitutional republic. The award was also handed to Ukrainian President of Volodimir's Lensky and three US officials defending the integrity of the twenty presidential election. Global News twenty more hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg John Michael, thank you. He s sixtent on the Roll Street Time with the Bloomberg Sports Update.

Here's Scott Sidenberg. Good morning, John egor Shist. Durkin made forty three saves me because I Ben and Ja had a goal and an assist as the Rangers beat the Hurricanes three one at the Garden yesterday. Chris Critter and Tyler Mott also scored as the Blue Shirts the fand home ice now trail two games to one. Here's head coach Gerard Glent a power play goal. That's how you went hockey game, the tight game. So it was a battle type battle again tonight. They obviously ego ego with

an outstanding fust and that was the key. It was just the second win for the Blue Shirts over Carolina in their last ten meetings. Game fourth the Garden Tomorrow night baseball, the Yankees dropped both games of a double header to the White Sox three one in Game one and a five nothing shutout loss in game two. The Mets meanwhile blank the Rockies to nothing. Taywan Walker through

seven scoreless innings. NBA Playoffs, the Warriors taken commanding three oh series lead over the Mavericks with a one on nine one win. Golf was an exciting finish at the PG eight Championship up yesterday, and Justin Thomas is walking around for the quick tap and he's got it. A two time major winner of the PGA Championship, Justin Thomas is your hundred port p G A champion here at Southern Hills and Culf, Oklahoma. The call is heard right

here on Bloomberg Radio. Justin Thomas winning his second one or Maker Trophy, outlasting Wills Allatorus in a three whole playoff. I'm Scots murdered with Bloomberg Sports. All right, Scott, thanks very much, and hand they can show about Wall Street futures in the green right now, the down features they are up two hundred six points, that's up seven tenths of a percent. SMP even in futures twenty seven points higher,

up seven tenths of a percent. After the Broader Index de skirted the definition of a bearer market on Friday, NASDAC features sixties six points higher, that is up six tenths of a percent. Right now, Dan, your treasury to two of the yield up three basis points. You're listening to Bloomberg tapering still ahead of Bloomberg. What is next for the markets? Well, I ask Patrick Armstrong, he's the chief investment officer of luring me, well, does he see

signs of a bottoming? This is Bloomberg Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quick Tape. This is a Bloomberg business lash, and I'm parent Moscow's donks in the UN advancing after President Joe Biden said Schina tariffs

imposed by the Trump administration we're under consideration. The dollar and treasuries are retreating, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg, U s and P futures up twenty seven points this morning, Dow futures up two eleven and NAZDAC future is up sixty four. The decks in Germany's up six to puns of uppercent ten. Your treasury down ten thirty seconds, yield two point eight one percent. That yield on a two year two point

six zero percent. Nin mex scrude oil is up one point one percent of a dollar twenty three and a hundred eleven dollars fifty one cents of barrel Comics gold up one point one percent or twenty dollars at eighteen sixty eight forty announce, the Euro one point oh six seven three against the dollar, British pound one point to five seven five, the yen is at one twenty seven point four three, and Bitcoin this morning of almost two percent at thirty thousand, five hundred dollars. That's a Bloomberg

business flash. Now here's Michael Barr with more on what's going on around the world. Muchaele Karen, thank you very much. President Joe Biden says the US would intervene militarily of China where to invade Taiwan. Speaking in Tokyo, President Biden says such a move would dislocate the entire region. White House officials later said that Biden simply meant the US would provide military equipment to Taiwan, not send troops to

defend the island of China attacks. CE seventeen mill terry cargo playing carrying about seventy eight thousand pounds of specialized baby formula from overseas, landed in Indiana yesterday to help ease the shortage In the NHL playoffs. The Rangers beat the Hurricanes three one. Carolina still leads the series two games to one. In the NBA Playoffs, the Warriors beat the Mavericks to lead the Western Conference Finals three games

to zip. In baseball, the Yankees lost the double header to the White Sox, the Mets, Red Sox Orioles Nationals won the Giants, and A's lost. Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg, John, Michael, thank you. He is coming up on six twenty on Wall Street. We are lying for the Bloomberg Interactive Broker Studios.

This is Bloomberg day Break O. US equity futures is Karen mentioned are higher this morning after the SMP five how to drop for a seventh straight week. So what's the next for investors joining US now? Patrick Armstrong, investment officer at Plurimi Wealth. Patrick, do you see signs of bottoming in the markets? I think you can make a case that markets will be bottoming around this level, assuming

the United States doesn't fall into a recession. So surprisingly, when we entered two thousand twenty two UM, unless we're expecting two hundred and twenty earnings per share for the SMP fived. Those earnings estimates have actually been increased this year to two d and twenty seven is what analysts they're expecting right now. So the whole sell offs being driven by multiple contraction, which makes perfect sense given that liquidity is getting withdrawn from the system. Ten year yields

have shot up UM close to three percent. I think they're going to continue to move higher. But as long as you don't see a real earnings recession, and I don't think that happens unless you have an economic recession. It will come down to what Powell wants to do. He's got fifty basis points hiking in June and July. If he assesses the lay of the land and starts to ease and accepts higher inflation rather than provoking a recession, I could see around these levels being a bottom for

the SMP. With the PE multiple of somewhere around nineteen for the SMP five hundred, is that worth investing? Is it a cheap at this point? Well, I wouldn't call it cheap, so on a forward basis, it's seventeen pe on a trailing basis nineteen and a half UM. Those are pretty normal PE s, so they're not elevated anymore, but they're they're not cheap. I wouldn't call it cheap. On a price to sales basis. The SMP five hundreds at two point four times, and that's still very elevated.

A typical price to sales multiple is one point six times. So UM on an earnings basis you could say fair valued. On a price to sales basis, you can still say thirty overvalued. It'll come down to what profit margin UM

companies are able to generate. So if we do go into an environment where basically companies have their margins squeezed, which is totally plausible when you look at producer prices running much higher UM inflationary backdrop than can tumor prices are that basically implies that companies will be getting squeezed, you should see a lower price to margin and probably significantly lower price to sales. Are growth stocks off the

table for you? I don't like the most extreme growth stocks UM, the stocks that don't have earnings yet and have business models where they're hoping to get earnings over the next decade. This isn't the environment you want to be chasing those kind of disruptors and hoping uh that eventually they'll grow their way into the multiples they trade at. That makes a lot of sense when liquidity is abundant, when interest rates are zero, and we're in an environment

where quantitative tightening is beginning next month. We think ten your yields are moving well above three percent for the remainder of this year. So I prefer value stocks that are producing cash flow today, and the companies that don't have earnings, I think the market is going to continue to punish them. Does it feel like we've done a round trip? We're back to levels that we saw before the start of the pandemic. UM well on some of the most growth stocks. Yeah, they fall in You're back

to levels you were um during the pandemic. I actually think they have further to fall because there's still billions in market cap that just don't even have a path to profitability. In my opinion, so UM a lot of the new I p o s, even having their perspectives, we don't have a path to profitability. But when interest

rates for zero, investors still flopped into them. So I think it's an environment very similar to Q four two thousand and one, where the growth stocks still sold off, but the companies that were producing cash flow the market started to rotate into them. And I do think there's a lot of good companies out there right now that are trading at ten to even eight times earnings. We bought Mosaic on Friday, which is owns potash reserves which is used in fertilizer. It's trading at eight times earnings.

And I think you're going to have a very strong backdrop with agricultural commodity prices where they are gauge. For me, you're the risk of recession at this point. So it's plausible. It's not my base case. In the United States, it's going to come down to Powell. Um if he blinks and he's got to make a policy mistake, He's got to decide I'm going to create a recession or I'm going to let inflation stay well above my two percent target. I actually think he's going to go for the second

option and probably let inflation stay high. Um as long as it is showing signs that it has platoon and coming down towards two percent. I don't think he'll need to do the final kick to get it down to two percent, and that should allow the US to avoid a recession, but the consequences will be inflation much higher

than the target. Patrick A pleasure appreciated. Patrick Armstrong, chief Investment Officer at Plurimi Wealth with us this morning at ahead of the open hob Wall Street, we have DOWN futures of one eighty nine points at sub six tenths of a percent, SMB futures twenty four points higher, that's of six tenths of a percent. At the NAZENT futures of fifty five points, that's up half a percent right now, ten year yield at to eight one three basis points higher.

You're listening, it's a Bloomberg day break and the Bloomberg Weather from meteorologist Rob Caroline partly Sunday is gonna be cooler today and Lea's s gume with the heights Empert.

You're topping out at seventy degrees mostly cloudy tonight blows fifty five to sixty Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg N sixty to the country, Sirius XM, tod A one nine and around the globe the Bloomberg Business app and Bloomberg Radio dot com. This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm John

Tucker and I'm Karen Moscow. We are just about three hours away from the open of US trading time for the five phase you need to notice start your day. Brought to you by Interactive Brokers. Interactive Brokers charges marchin loan rates from one point three to two point three three percent, rates subject to change. Learn more at i VKR dot com. Slash Compare First futures are up amid expectations traders will help lift the S and P five

hundred after a touched bear market Territory Friday. Despite talks of a US recession, Credit Sweet CEO Thomas Gonstein said he doesn't see what happening. People are somewhat insecured in risk off mode. But our house, he was still, is that there won't be a recession neither. It is here no next year, there will be slow down. Credit see CEO Thomas Gonstein was speaking in Davos with the Bloomberg's Francine Laqua. The annual Davos World Economic Forum is back

this year. Tune into Bloomberg Radio and Television for full coverage This week overseas, President Biden indicated China terence imposed by the Trump administration or under consideration. He also declared the U. S Military would intervene should China attack Taiwan, but White House official later a state of the U. S would provide military equipment to the island, not sent troops.

President Biden also announcing that a dozen Into Pacific countries will join the US and an economic initiative designed to counter China's influence in the region. Well John Before boarding Air Force One in South Korea yesterday, the President addressed the growing monkey pox outbreak. Well, heaven't told me the level of exposure yet, but it is something that everybody should be concerned about. We're working on a hard figure out what we do. And President Biden says he spoke

to advisors about the monkey pox vires. Well, the US monitors monkey pox. It's getting relief on the battle against the baby formula shortage and Bloomberg's We Need a Young joins us live with more we need a good morning, Good Morning John. A plainload of more than seventy thousand pounds of baby formula arrived in the US on Sunday. It's called Operation Fly Formula, an emergency program program to alleviate a national shortage that's left thumb parents scrambling to

feed their children. President Biden's top economic advisors says more formula will arrive in stores as early as this week. Last week, the President invoked emergency powers to spur domestic manufacturing of baby formula. Live in New York, I'm reneed a young Bloomberg debris right, we need to thank you, and turning back to equity, shares a vm Ware are up a nine percent in early trading. The cloud computing company is in talks to be bought by Broncom. Futures

are moving higher. Not to find things you need to notice. Start your day, Bronty, you by interactive brokers trying to hand your latest local headlines and this is Bloomberg. Thanks Karen wall Street. Time to bring in Michael Barr to tell us what else is going on in New York and around the world. John, thank you very much. The search is on for a gunman who shot a man on a subway train in Manhattan Sunday morning. The suspect fled. The forty eight year old victim died later at a hospital.

In YPD, Chief of Department Kenneth core He says the victim was shot in the chest. According to witnesses, the suspect was walking back and forth in the same train car and without provocation, pulled out a gun and fired it at the victim at close range. In my p D Chief of Department Kenneth Corey says there was apparently no prior contact between the victim and the suspect. Meanwhile, the chief executive of Goldman Sachs says the forty eight year old man shot and killed was an employee of

the firm. David Solomon says Daniel Enriquez was a beloved member of the company for nine years. Solomon says the firm was devastated by this senseless tragedy. In our deepest sympathies are with Dan's family. At this difficult time, Russia is intensifying its attacks in eastern Ukraine, as President Voladimir Zelenski calls for even more powerful weapons. To count of the Russian invasion, so Lenski says between fifty two d

Ukrainian soldiers die every day on the battlefield. Meanwhile, the threat of possible new clear attacks continues from President Putin. Former Chairman of the Joint Chiefs, Admiral Mike Mullen says, well, he doesn't believe Putin will actually use nuclear weapons. It's a possible action they have to consider. It's very difficult to know what Putin is thinking in any particular time. He's obviously spoken to this. I think we need to

make sure that we consider it. Former Chairman of the Joint Chiefs Mullen spoke on a d c S this week, which can be heard Sundays on Bloomberg. Basque requirements and advisories are back in cities with the rise in COVID nineteen cases. Philadelphia is one of them. Starting today face coverings,

there will be mandatory indoors and on school buses. Today was supposed to be the day that the COVID era Border Policy Title forty two was set to end, but the federal judge in Louisiana blocked the Biden administration from ending it. However, that is not stopping a steady stream of migrants to arrive trying to get into the US. Families with young children arrived over the weekend in Yuma, Arizona.

Beijing as extended orders for workers and students to stay home and ordered additional mass testing as cases of COVID nineteen again arise in the City. 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 twenty countries. Michael mar this is Bloomberg, John, Michael, thank you, and six thirty six on Walls Tree. That is tied. But the Bloomberg Sports Update, here's Scott Sidenberg.

Thanks John. The Rangers desperately needed a win yesterday to avoid falling down three games to none against the Hurricanes. He Gorcius Darcy was up for the task, stopping forty three shots as the Blue Shirts defeated the King's three to one game four at the Garden. Tomorrow night, else where, the Lightning take a three games to then lead over

the Panthers with a five one win. Edmonton goes up two games to one over the Flames with a four one victory Baseball rolled the Shapman surrendered a tie breaking home run to A. J. Pollock in the top of the ninth inning as the Yankees dropped Game one of a double header to the White Sox three to one.

They would also lose Game two, being shut out five nothing despite Louis Sabrina going seven scoreless innings, the Yankees losing two straight but just the second time this season that Mets meanwhile blank the Rockies to nothing, Taywan Walker throwing seven scoreless innings. NBA Playoffs, the Warriors take a three oh series lead over the Mavericks with a one on nine in Dallas. Game four of the Eastern Conference Finals tonight in Boston, Miami leads two games to one. Golf.

What an exciting finish at the PGA Championship yesterday and Justin Thomas is walking around for the quick tap and he's got it. A two time major winner at the PGA Championship. Justin Thomas, He's your hundred four p G A champion. Hear at Southern Hillford called Fall Oklahoma. The call has heard right here on Bloomberg Radio. Justin Thomas winning his second water Or Maker Trophy outlasting William Salaturus in a three whole playoff. I'm Scott Bloomberg Sports. All right, Scott,

thanks very much. It is now sixty seven on Wall Street and it is time down to take a look at some of the stocks on the move, some of the names that are moving in the pre market. And for that we're joined by Bloomberg Radio and TV Markets Correspondent Critic Group to let me guess steal news. Steal news? What a great guess. Really on top of things here, somebody's making money. Someone is. It's not me, But you know that's a different conversation. Um, what's interesting here is

the players. We've talked a lot about this, about the extreme amounts of cash that are on a lot of balance sheets in corporate America, specifically in the tech sector. So why not hop into that m and a boom. Well, here's one example that that is. In fact, what's happening really deploying some of that cash in this inflationary environment. I mean, John, a five year old could tell you that if you're if you're not spending five dollars to day,

it's gonna be worth less tomorrow. It's better to spend it today. And it kind of seems like that's the tone a lot of these companies are taking. Which brings me to the deal of the morning, Broadcoms. It's said to be in talks to buy VM. Where this is a cloud company backed by the billionaire Michael Dell. Broadcom we know it as one of the chip makers in

the Apple supply chain. Uh this morning, let me walk you through the stock price action Broadcom a v g O is your ticker down four point three p VM where though climbing over in the pre market. And now, of course we don't have any confirmation from either parties about whether or not this is in fact going through. This is according to people familiar with the matter bloomberg Scoop. I might add, but this is important as we talk about what could be the biggest ever acquisition of a

technology company. Essentially, this would give Broadcom a unique insight into just a very different part of the technology of the software space. And we know cloud companies are very hot right now, just given a lot of these companies haven't switched to cloud infrastructure yet, they've kind of started doing that post pandemic and really amping that up in this era of needing more cybersecurity and things like that.

So that's where cloud companies really come in handy. So investment bankers can salivate at least at this particular time for this particular industry because more is on the way, I suspect well potentially, and I mean you do start to see a little bit of reaction to some of the other cloud companies as well. If you look at Oracle, for example, which has a major market share when it comes to cloud computing, it is up five tenths of one per cent. Splunk is another one that you want

to keep your eye on. Sp l K is your taker and it is up just shrive three percent. So once again you are seeing a lot of this deal activity throughout the day. Service Now is another one, and ow used the taker up one point two percent. And lastly I'll leave you with c h KP. That's Checkpoint Software Technologies up one so cloud technologies there about this morning, I found this stat TAKEO takeovers of tech company is a forty six percent this year. That's globally. That's interesting.

Pretty thank you very much. Bloomberg Radio on TV Markets correspondent Pretty Gupta and a head of the Open on Wall Street SMP futures right now thirty four points higher.

You are listening the Bloomberg day Break and the Bloomberg Weather from meteorologist Rob Caroline Partley sunny gotta be cooler today and lesbian but the heights app that you're topping out degrees most Looke comedy Tonight Lows Fife behind the sixty markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg Quick Tape. He's a Bloomberg Business Flash and

I'm Karen Moscow. Futures are gaining this morning, we get to the first word breaking news dance for today's morning call. Here's Bill Maloney LL good morning and good morning, Karen. That's right. US teachers are in the green right now with DOWN futures up two hundred and sixty points SAPs game thirty four one. That's that futures rise by eight five the US ten year old that two point two percent gold is of fifteen. Oil is also climbing, and

bitcoin is rising by one point nine percent. Japan gain one percent overnight, while up of markets are trading mostly higher this morning and back in the US on the economic Frontday thirty, Chicago fed in dean news, Brock coms and talks to buy vm Ware. Vm Ware shares are up twenty one percent pre market, and another news JP Morgan boosted its guidance for fiscal year and net interest income X markets forecast. Wrapping things up, HP Inc. Was cut to neutral. Over at the City Group Live on

the First Breaking News Desk. I'm Bill Maloney, Karen, all right, Bil, thank you to here live breaking economic news. O your Bloomberg type squawk on your terminal SCU A w u K. That's a Bloomberg business flash. Now here's Michael Barrow with more on what's going on around the world. Michael, Karen, thank you very much. President Joe Biden said the US military would intervene to defend Taiwan in any attack from

China in Tokyo. Biden said such a move would dislocate the entire region and be an action similar to what Russia has done in Ukraine. White House officials later said that Biden simply meant the US would provide military equipment to Taiwan, not send troops to defend the island of China attacks. A military plane carrying enough specialty infant formula for more than a half a million baby bottles arrived yesterday in Indianapolis. It's the first of several flights expected

from Europe aimed at relieving a formula shortage. In the NHL playoff, Rangeers beat the Hurricanes and the NBA Playoffs, the Warriors beat the Mavericks in baseball, the Yankees lost a double header to the White Sox, the Met's Red Sox, Orioles and Nationals won the Giants, and A's lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts and more than one hundred twenty countries on

Michael Ar, this is Bloomberg. John, all right, thank you, Michael, and we are live from the Bloomberg Interactive Broker Studios where it is now sixty nine on Wall Street Time to check what's going on in d C. Set of the top stories that are a nation's capital include President Biden says the U. S Military, as Michael mentioned, would intervene to defend Taiwan in any attack from China, a statement condemned by Beijing later walked back by White House

officials and President Vines saying he'll discuss terrence on Chinese imports with the Treasury Secretary upon his return from his Asia trip. President Biden seeking to share reassure Americans that the current monkey pox outbreak unlikely to cause a pandemic on the scale of COVID nineteen, and also a high stakes Republican primary in Georgia tomorrow. Let's take a deeper dive into some of these stories this morning. We're lucky to have unscripted Greg Valier, the chief US policy strategist

at a G Investments. Hopefully we won't have to worry about you speaking off the cuff and angering China, Greg, but it gives you an indication of some of the things that the President and his advisors are up against when you are asked questions complicated, the questions about the US policy. Well, this is once again the story of Joe Biden going off script. Is his advisors cringe when he does it. And here we are again saying something that previously, earlier this year, the White House said is

not accurate, that we have abandoned our strategic ambiguity. But here we have Joe Biden. I think disrupting what was looking like a pretty good trade meeting, trade trip to Europe, good relations with South Korea, and now everything has been discombobulated by the comments team made last night. UM and Uh it's not the first time that this has happened. What kind of message does it send more broadly to uh, to his constituents and his opponents. Two things I say.

Number One, like Donald Trump, he doesn't listen to his advisors. I mean, every Democrats seemed to think that Trump was oblivious to his advisors. But it's looking like Joe Biden is the same. Number Two, he's very stubborn. He's been told time and time again not to use this phrase. He chose to use it. Either he didn't remember or he just is very Again, he's very stubborn. But it's not a good signal. Person of Biden says he's going to discuss tariffs Chinese imports with that Janet yelling upon

his return. They're walking back some of the things that were that the Trump administration did. Uh. And it seems to be good news, at least for the markets, right. I think it's a it's a pretty good signal. I think that Uh, there are some things to be reasonably positive about. The budget deficits coming down, The unemployment rate is really low, the economy is not in recession. There

are still some decent stories out there. But you know, barring some sudden reversal, I do think the Republicans will gain the House and maybe even gain the Senate. Uh. And at this point, well, let's let's talk about the elections. UM. Some of the takeaways from the primaries that we just had. What was the big message for you? I think the big messages it is still all about Trump. And all of these races is some he won, some a lot, some extremists one, some extremists lost. But in all of

these elections, Biden's Trump was still a big factor. And now we get a really big race tomorrow night in Georgia, a race in which I think Donald Trump is going to get smoked. I think he's going to lose badly. This is Brian Camp the incumbent, and David Purdue. Uh. We'll explain for us the differences between the two, but they're pretty significant. Yeah, they're both conservative Republicans. But one of them, of course, Kemp the governor, didn't support Donald

Trump's ridiculous claims that he won Georgia. So Trump has a vendetta and he wants to see Kemp lose. Unfortunately for Trump, Kemp is ahead by points, maybe even more so. I think the the Trump favorite, uh fell about the name of Perdue, is going to lose badly. This will be the first sign that Trump is not infallible, that he can lose some of these races where he nominates

someone he's convinced is going to win. And uh Democrats Stacy Abrahams, She's unopposed in the gubernatorial primary on the On the Democratic side, there's also the Warnock Senate seat that is that how vulnerable is it? And herschel Walker, I should mention, is his opponent. Yeah, it's an interesting race, but I'm not sure that Walker. Yeah, yeah, I'm not sure herschel Walker is going to win. That race is going to be close. But I think Walker has some baggage.

What what is his baggage? I mean, he does have a close relationship with Donald Trump, we know that. I'm not sure or not. No, I would say there's some personal things, some accusations about his personal life, and I think that might be a factor as well. I think Warnock could be a surprise and could get reelected. Let's finish up if I could, Greg, there seems to be some glimmer of hope at least between Ukraine and Russia.

Can you tell us more about that, a glimmer of hope to this extent, I think Zelinsky knows there's going to have to be negotiations. I mean, the losses have been staggering on both sides. Maybe Russian soldiers killed another fifty or sixty thousand caps or are wounded. The Ukrainians are losing truce several hundred a week. They can't sustain this indefinitely. And I do think that Zelinsky hinting over

the weekend that negotiations are coming is encouraging. You've got to get Putin on board, but you like to have to concede that Putin has won most of his objectives in the East, so he knows he's not going to get the key. That's not gonna happen. So I see a sign or two that maybe by the middle of the summer we could be getting closer to a truce. Greg always a pleasure of Greg value, the chief US

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