Bloomberg Daybreak: May 24, 2022 - Hour 1 (Radio)

Moore is needed to stop the flow of migrants. I'm Michael Blarer. More ahead, Tom Scott Sedberg. The Yankees dropped their third scrape. The Mets win big out West. I'll have that in more coming up in sports. That's All's training ahead on Bloomberg Daybreak on Bloomberg. He Live in Free on New York, Bloomberg one, Washington, d C, Bloomberg one O six one, Boston, Bloomberg nine sixties and Francisco

Syrius XM one nineteen and around the world. Old on Bloomberg Radio dot Com and via the Bloomberg Business App. Good Morning on John Tucker and I'm Karen Moscow. US DOT Index futures are lower 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 future is down fifty eight points, DAL Future is down three hundred thirty and as DAG futures down two hundred forty eight. The decks in Germany's down one

point two percent. Ten year treasury of fourteen thirty seconds yield two point eight zero percent. They yield on the two year two point five seven percent. Nim X screwn oils down four tens per cent, or forty nine cents at a hundred nine dollars eighty one cents a barrel. Co max schooled up four ten percent or seven dollars twenty cents at eighteen sixty one twenty announced and Bitcoin

this morning at twenty nine thousand, one fifty dollars. John currently decline in futures follows yesterday's rally to start the week, the Dow leading the games, advancing two percent. It looks like we still haven't hit bottom, at least according to David's Stubbs. The global head of process at thematic strategy at JP Morgan Private Bank. What the market has been fearing in the last couple of weeks is that the growth outlook maybe weakening, and therefore earnings trends going forward

may also start to weaken. We'll see this this week. This rody can absolutely continue from here because of where however so old markets were. If the data is is supportive, But that doesn't mean that we've met we've reached an important bottom in the markets now. JP Morgan's David Stubbs says he needs to see easy inflation and clarity about where interest rates will peak. That, he says good signal

a bottom to the stock market. Well, John, Today's market direction is being influenced by disappointing earnings from Snap, and we get the details live from Bloomberg's Rnedy Yell and Good morning Nita, Good morning Karen. When markets closed yesterday, Snap warned that it would miss record second quarter profit and revenue forecast it needs to slow hiring. CEO Evan Spiegel cites the economic environment and that sent shares tumbling down around which appears to holding in pre market trading.

If that loss holds, it would be Snap's biggest daily drop on record, making the company lose some eleven billion dollars in market value. Snaps also dragging down other tech names in pre market trading, Twitter, Meta, Pinterest, and Alphabet are all lower and they may collectively see a one hundred billion dollar wipeout. Live in New York, I'm renit a young Bloomberg day break, real need to thanks on

the flip side. Shares of Zoom up almost six percent in early trading, the company signaling it can expand beyond its consumer friendly video software that made it a pandemic Darling, Zoom rejected sales and profit for the current quarter that topped estimates. While turning to the economy now, John Kansas City Fed President Esther George expects the Central Bank to raise interest rates to two percent by August. After that, she says more tightening will be guided by how fast

inflation cools off. George has been known as a longtime policy hawk who were recently moved to the center and care monetary policy a focus in Europe. This morning, a day after Christine Legard said higher interest rates are coming in July, the ECB president sent down for her first interview at the World Economic Format Davos, and she spoke with Bloomberg's Francy and Laquix. We are at the turning point. We have all the components in place for that. We

are turning our back to negative interest rates. We are moving very likely into positive territory at the end of the third quarter, and then, of course we will calibrate. We will stop this exactly by how much we want to do that. Christine Legard also rejecting the idea that the Euro Area is headed for recession. Stay tuned for more of our conversation with the ECB president coming up shortly, and we also invite you to join us this morning

where we continue our global coverage from Davos. We speak live with Bank of America CEO Brian moynihan. Conversations coming up live at eleven am moll Street Time on both Bloomberg Radio and television. And Journey to Politics Now President by and wrap ing up his trip to Asia. He spoke earlier today at the opening of the leaders Some of in Tokyo and address the ongoing war in Ukraine. We're navigating in a dark hour in our shared history.

The Russian brutal and unprovoked war against Ukraine has triggered a humanitarian catastrophe and innocent civilians have killed in the streets and millions of refugees are internally displaced, as well as exile, President urging Indo Pacific leaders, including India's Naredra Modi, to make a greater effort to stop Vladimir Putin's aggression and John The discussion of tariffs on China has also been a focal point of President Biden's trip to Asia.

Biden says he will review Trump Aaron levies as consumer prices surge. We got up a trade representative, Catherine ty who also awaited on the matter. With respect of the tarroiffs, our approach, as with everything in this relationship, is to be strategic. We have to keep our eye on the ball in terms of how to effectively realign the US China trade and economic relationship. Trade Representative Catherine Tye would not say whether the administration would remove tariffs on China

or give a time frame for making a decision. And Karen back here in the US today marks another test of Donald Trump's influence on Republican voters this primary season, and Bloomberg's Joe Matthew tells us all eyes are on voters. In Georgia, Trump's endorsement of former Senator David Purdue and the Republican gubernatorial primary has failed to make a serious threat to Governor Brian Kemp, who is currently leading Perdue by more than twenty percentage points. The incumbent being supported

by establishment Republicans, including former Vice President Mike Pence. The outcome of this race and another for Secretary of State is considered personal for Trump after Georgia's Republican leaders did not overturn the election. One bright spot for Trump has picked for Senate football legend herschel Walker, widely expected to win his primary. Joe, Matthew Bloomberg, Daybreak, Sorry Joe, thank you. Futures this morning are or S and P futures down

fifty nine points down. Futures down three hundred thirty four and nastagg futures are down two d fifty. That's down more than two ten year treasury of fourteen thirty seconds. You have two point seven nine percent straight to had your latest local headlines plus a check of sports, and this is Bloomberg, right. Thanks. Karen five of Wall Street had time to bring in Michael Barr with more on what else is going on to New York and around

the world. Mayor Eric Adams john says investigators of a fatal shooting on a New York subway train a half you leads. Police say forty eight year old Daniel Enriquez was killed without provocation, the killer still on the loose. Adams said that the shooting was unimaginable and the worst nightmare. I have to make sure the city is safe and I want that obligation. I thank god I'm the mayor right now and not those that don't understand the urgency

of this moment. Mayor Adams says there were no police officers on the train car where the shooting occurred. The NYPD says the second arrest was announced in the deadly shooting of an eleven year old girl last week in the Bronx. Authorities say and alleged accomplice, eighteen year old Omar Bojang, turned himself in. He's accused of driving the scooter that a fifteen year old was allegedly riding on

when he opened fire. The intended target is believed to have been another team who was not hit, but instead a bullet struck and killed eleven year old Karatay. Bronx District Attorney Darcel Clark spoke outside the girl's funeral, eleven year old, you know, can't even be outside. You know, she's getting her fingernails done and just you know, without knowing, bullets are flying five o'clock in the afternoon. Incomprehensible. But this is what we've been dealing with in the Bronx DA,

Darsel Clark. Texas Governor Greg Abbott was at the US southern border where he praised the continuation of an immigration policy known as Title forty two. The pandemic era policy allows a fish us to turn away migrants at the border. President Biden trying to have Title forty two lifted, but the Governor Rabbit praise the federal judges ruling that it must remain in place for now. The Biden administration seems to be letting him people whether they're crossing through the

port of entry or across the river. And there's been so many people allowed him because of that. Governor Rabbit made his comments at Eagle Pass border crossing yesterday. Washington State health officials in Seattle and King County say they are investigating a presumptive case of monkey Box. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists and analysts more than a

hundred twenty countries. Michael barn This is Bloomberg, John, Michael, thank you five nine on Wall Street hand Let's stand for the Bloomberg Sports Update. There's Scott Sedinberg. Good morning John. The Yankees fell to the Orioles six four, suffering their season high third straight loss. Promonias hit a tie breaking home run in the sixth inning off Garrett Cole, and the O's overcame two. Aaron Judge Homers to pull off

the upset. For Coals, he allowed five runs on seven hits and eight innings, taking his first loss of the season. There's manager Aaron Boone. A weird night tonight, where Garrett was really for the most part dominant, you know, except that strain there for five to seven minutes in that one inning. Meanwhile, Yankees third baseman Josh Donaldson has been suspended one game by Major League Baseball after referring to White Sox shortstop Tim Anderson as Jackie, referencing Jackie Robinson.

Donaldson is appealing the suspension, saying the reference stems from comments made by Anderson back in the interview when he compared himself to Robinson. Donaldson was placed on the COVID nineteen injury list yesterday prior to the game. The Mets last night beat the Giants thirteen three. Pete Alonso hit the three run homer. Jeff McNeil and Mark Canna also went deep as the Mets won for the fifth time in six games. David Peterson picked up the win, allowing

two runs in six innings. Tonight, the Rangers looked even up their series with the Hurricanes at two games. A piece puck drop from the garden at seven o'clock tennis at the French Open, several top players are out, including defending women's champ Barbara Kretchikova, the women's number to see, losing to French teenager Diane Perry. Elsewhere, Naomi Osaka is out, losing to Amanda Anissamova. Osaka says she's not a percent sure show compete at Wimbledon. I'm Scott Edinburg with Bloomberg Sports.

John all right, thanks Scott, and ahead of the cash Oven on Wall Street. We have futures in the rad right now. Down futures three hundred and thirty one point slower, that is down just over one percent this morning, the SNP E mini futures fifty eight points lower, that's down one and a half percent in the early going, and the nasdank futures two hundred and forty seven points lower, that is down two percent. Most actively traded stock of the pre market shares of Snap down just about twenty

nine percent after cutting their forecast. And as we look at transuries this morning, the benchmire ten year yield two point eight zero percent, that is down five bases points. You're listening the Bloomberg tay break recession for Europe forget it. Francine Lacroix. Her chat with Christine Legarde is just ahead

of must listen from the World Economic Forum. This is Daybreak, 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. A profit warning from Snap A weighing on

technology shares. This morning, NASTACK futures are down two hundred forty seven points, down more than two per cent, SMP futures down fifty seven down, futures down three D ten year treasury up thirteen thirty seconds, YELD two point eight zero percent, and they yield on the two year two point five seven percent. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around

the world. Michael, good morning, Good morning Karen. President Joe Biden has Warren Fellow leaders of the informal Indo Pacific Security coalition known as the Quad. They are navigating through a dark hour and our shared history as Russia continues a brutal war on Ukraine. Biden called for greater Indo Pacific leadership and the effort to stop Russian aggression at the start of the summit today with the leaders of Australia,

India and Japan. In the NBA Playoffs, the Celtics beat the Heat even the series of two games apiece baseball, the Yankees lost to the Orioles, the Mets beat the Giants, the Nationals and A's lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven undred journalists and analysts. More than a hundred twenty countries. Michael Barr and this is Bloomberg, John Michael five nineteen on Wall Street Line from the

Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. Christie Lagard says the European Central Bank won't be rushed into withdrawing monetary stimulus as officials act to contain and inflation running it almost four times, there are two percent target. The EASYB president sat down for an interview with Bloomberg's Francine Laquix at the World Economic Forum in Dabo's conversation comes just a day after the guard said higher interest rates

are coming in July. Let's see what she had to say about that and listen to that interview right now. I think it was it was good to set out the terms under which we are going to turn the corner of negative interest rates. So was this more a message to the markets or is it more to a

message to the members of the Governing Council. It was a message to anybody who is interested in monetary policy, really, because we have been going through eight years of negative interest rates, special accommodation, and we are clearly now at the turning point. And I thought it was appropriate at this point to explain what the journey is, what the direction of travel is, what the destination is in the relatively short term, and what is our aimpoint it as well.

If you're hiking, you want to hike, hit wait for July. We are not in in a panic mode, and we've started that journey thinking about it very carefully back in December, with steps along the way, and we are now at a stage where there is every certainty that we will stop let us said purchases very early in in July, deciding so in June, which will then clear the way for a rate hikes that will come reasonably shortly after that.

Is there a danger that, because of the timetable, which of course you know, goes to the credibility of the ECB, which is we do que first to reunwind that and then going to interest rate, that you miss a drive of inflation. I don't think so. I think that's you know, anybody who's very careful about analyzing really realizes that we are in a situation which is vastly different from that of the United States, and we are actually perfectly on

time and not behind in the curve. I think there is also great value in being steady predictable, And we said all along in our forward guidance that we would stop quantitative easing in terms of net asset purchases because we will continue reinvesting as as we go, and that then we look at at the interest rate, which will be the main tool further on. And then how difficult is it to actually give so much forward guidance, I guess as a message also to markets when you don't

really know how Russia reacts. We could have a gas embargo, we could have an oil embargo that would really make the inflation ratiot up. You know. Our mission is to um guarantee procure reinforced price stability defined as the two percent inflation. So we might be regarded as a bit stubborn in that respect, but that's the job we have to do. But of course we are data dependent. We look at developments, we look at what it's going to

influence inflation and inflation expectations. So we look very carefully at wages at the moment wage negotiations, we're looking very carefully at all inflation expectations, and we believe that it is time to act as indicated under what circumstances do you think a fifty basis point hike would be warranted. Look, what I said is we are at the turning point. We have all the components in place for that. We

are turning our back to negative interest rates. We are moving very likely into positive territory at the end of the third quarter. And then of course we will calibrate, we will establish exactly by how much we want to do that. When you talk about of course no longer negative rates, has a market quite understood that this could mean also positive rates? Well, you know, when you're out of negative you can be at zero, you can be

slightly above zero. This is something that we will determine on the basis of of our projections, on the basis of our forward guidance. I think that there are good reasons to believe that all three conditions will be satisfied in June and further on during the summer. Where are we in the third quarter? Could we be you know above your in terms of interest rates? Is that kind of research acts? Is what I'm saying. I stick to We will be out of negative interest rates most likely

before the end of the third quarter. How do you see inflation developing from now. I mean, again, there's so many unknowns because of the war. You know, there are lots of forces um and and some of them, you know, counteracting against each other. You have the war, which in and of itself is an absolute drummer, and as massive economic impacts, not just in Ukraine and eventually in Russia, but for the rest of the world. We have energy prices which have gone up significantly and represents a big

chunk of inflation. We have food prices. I mean, there's a whole series of things that are weighing on growth down and pushing inflation up. But on the other side you also have forces. You know, me, I tend to be a positive person, and I tried to look at what is likely to counteract those very significant shocks. And that was the ECB president Christine Lagarin, speaking with Bloomberg's Francie Laclaude from the World Economic Forum in Davos, Switzerland.

Cash more of the interview online at bloomberg dot com. I was looking to the euro right now, euro dollar one oh seven seventeen and head of the cash up and on Wall Street down futures right now three hundred and sixteen points lower, that is down one percent. The smp E Mini futures fifty six points lower, one point four percent lower, and that ASDAG futures down two hundred

forty two points, that is down two percent. One of the most actively tradded shares plunge this morning for shares of SNAP ten year yield in the US at two point eight zero six, that's down four basis points. You're listening to Bloomberg Daybreak and the Bloomberg Weather from a meteorologists Rob Caroline. Cloudy today, passing shower, sprinkle possible this morning. High temperature around seventy degrees. Tonight mostly cloudy, the low

temperatures in the mid fifties. Broadcasting live from the Bloomberg Interacted Broker's studio in New York, Bloomberg in Living Freedom, to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg No. Sixty to the Country Sirius XM Chado one nine, and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning.

I'm John Tucker and I'm Karen Moscow. We are just about four hours away from the open of US trading. Let's get you up to date on the news you need to know. At this hour, futures are declining following yesterday's rally to start the trading wake. CEO of Goldman sax International, Richard nods says he expects swings and markets to continue as the FED attempts to soft landing. Everybody

wants to talk about procession. Yes, there's a lot of data coming out and if you just think what we've come through in the last two years, the pandemic, in the massive interventions, how do we find a steady path forward. It's not surprising this volatility brings supplying them on into balance again. This is going to be a tricky journey. Goldman sax International CEO Richard Nodds spoke with Bloomberg's Francy

in Laqua at the World Economic Forum in Davos. We'll speak live with the Bank of America CEO Brian moynihan and Davos later this morning. Tune into Bloomberg Radio and Television at eleven am Wall Street time to hear the full interview and today's market. During and being influenced by disappointing earnings from Snap. Bloomberg's Reneedly Young joins us Live with details. We need a good morning, Good morning John.

When markets closed yesterday, Snap warned that it would miss second quarter profited revenue forecasts and needs to slow hiring. CEO Evan Spiegel cites the economic environment. If that sent shares tumbling around thirty percent, which appears to be holding in pre market trading. If that loss holds, it would be Snap's biggest daily drop on record, making the company

lose some eleven billion dollars in market value. Snaps also dragging down other tech names in pre market trading, Twitter, Meta, Pinterest, and Alphabet are all lower. Live in New York, I'm rened a Young Bloomberg day break, all right, we need a thanks On the flip side. Shares a zoom or up about six and a half percent in early trading after projected sales and profit for the current quarter topped

Wall Street estimates. And turning to monetary policy, Kansas City Fed President Aster George expands the funder reserve to raise the industrates to two percent by August. She says tightening afterwards will be guided by how fast inflation cools off well overseas, John, President Biden is wrapping up his trip to Asia. He urged fellow Indo Pacific leaders to make a greater effort to stop Vladimir Putin's aggression in Ukraine.

We're in the Pacific cars, I said, We're gonna stand with you, are close Democratic partners, and we're gonna stay for the shared values that and the shared vision we all have. President Biden also said he would review trunk era tariffs on China as consumer prices search and bank at the home. More primary elections today across several states. Key elections taking place in Georgia, Texas, Alabama, Minnesota, and Arkansas. And futures are lower This morning, straight ahead your latest

local headlines, plus a check of sports. This is Bloomberg. Thanks three on Wall Street. Time to bring in Michael Barr with more what else is going on in New York end around the world. Thank you very much, John. Police continued to search for the gunmen and the fatal shooting of a man on a New York subway train. Mayor Adams says there were no police officers on the train car where the shooting occurred. Sunday, He says the city will evaluate how it is deploying officers across the

sprawling subway system. Police say forty eight year old Daniel Intoriquez of Brooklyn was killed without provocation. Texas Republican Governor Greg Abbott is praising of federal judges ruling late Friday that keeps the COVID era immigration ordered Title forty two in place for now. Governor Rabbit toured an area beneath the Eagle Pass International border crossing in southwest Texas. He accused the Biden administration of not doing enough to stem

the flow of illegal crossings at the border. We don't want communities like Eagle Pass to be overrun with large number of migrants who are milling around in the strees. Critics of Governor Abbot say Title forty two uses COVID as an excuse the block people who have a legal claim to enter the United States, like asylum seekers and refugees. Doctors in Washington State are the latest to announce they're treating a patient with a suspected case of monkey pocks,

bringing the number of states investigating cases to five. Dr Jennifer McQuiston is the Deputy director of the CDC's Division of High Consequence Pathogens and Pathology. People can become infected with monkey pocks through close sustained skin to skin contact with someone who has an active rash, or through respiratory droplets in someone who has lesions in their mouths and they're around another person for an extended period of time.

Dr McQuiston says most patients with monkey pox will recover on their own within two to four weeks of their first symptoms. Another shipment of baby formula is scheduled to arrive in Washington tomorrow. The head of the U s d a S has the formula shortage crisis could ease in the next thirty days. Global News twenty four hours a day on air and on Bloomberg quicks Egg, powered by more than twenty seven hundred journalists and analysts in more than a hundred twenty countries. I'm Michael lar and

this is Bloomberg John Michael, thank you. He is now fine. Thirty six on All Street HAMUS. Time for the Bloomberg Sports up to aid. Here's Scott Sidenburg. Thanks John Garrett Cole allowed five runs on seven hits in eight innings as the Yankees fell to the Orioles six four, suffering their season high third straight loss. Aaron Judge Homard twice

in defeat. Before the game, Yankees third baseman Josh Donaldson was suspended one game by Major League Baseball after referring to White Sox shortstop Tim Anderson is Jackie, referencing Jackie Robinson. Thoaldson is appealing the suspension, saying that the reference stems from comments made by Anderson back in the nine interview where he compared himself to Jackie Robinson. Thoalentson was placed on the COVID nineteen injury list yesterday prior to the

loss against the Orioles. Elsewhere, the Mets with a big night in the Bay Area Cats over three tonight, and he launched was one a deep left center, headed back toward the wall. It's out of their Catamax. It back to back home runs McNeil and now cattle and his fourth of the air and it's nine to two. New

York call on send why Pete Alonso Homard? As well as the Mets route the Giants thirteen three hockey tonight, the Rangers looked even up their series at two games apiece against the Hurricanes the Oilers take on the Flames in game five, they lead two games to one. Tennis at the French Open, several top players are out, including defending women's champ Barbara crazy Kova, the women's number two seed, losing to French teenager Diane Perry. Elsewhere in Naomi Osaka

is out, losing to Amanda Anissimova. Osaka says she's not a dent, sure she'll compete at Wimbledon. I'm Scott Edinburg with Bloomberg Sports John far Times. Scott is now find thirty seven on Wall Street and that's time for the Trying State Business Report. For that, we're joined by Bloomberg's

Ed Corey Well. Even before COVID nineteen hit, the state of New York was facing an outflow of taxpaying residents that they'd had an average annual net out migration of twenty eight thousand, seven hundred part year residence between twenty and twenty nineteen, according to a report, that means the states lawn about one hundred fifteen thousand tax filers during

the period. New York City subway system is carrying fewer rids than expected this year as crime has spiked, including a violent subway attack last month that shook the city. There were four hundred fifteen million subway and bus trips taken from January through April, about nine nine million less

than budgeted. New York City's last freestanding public pay phone was taken away from Times Square on Monday morning for a WiFi Kiosks by Link n y C program backed by the technology consortium City Bridge and Partnership of the City began to replace pay phones in twenty that your Bloomberg Try and State Business Report. I'm Ed Corey, all right, thanks In five thirty eight on Long Street. Bloomberg Radio is on the year from San Francisco to New York,

London to Hong Kong. And let's check in now with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve podascon K and excellent Los Angeles. We're talking about video game testers at Activision Blizzard voting to join

a union. I'm Ginas Servetti and for w b b M in Chicago, I'm reporting that a special committee of the City Council has approved a one point seven billion dollar proposal by Valleys to build the city's first casino. I'm Kalin head Come Blue Bag DAB Digital Radio. In London. We're reporting on the opening of the new Elizabeth Line. Years overdue and billions over budget, but schwansformational. According to Andy Byford Detonsport, London Commissioner Um corneyanahoan Cafebian, Omaha farmers

are still seen making money and despite sin cost. I'm ed Corey on w A t AM in Cleveland. I'm reporting nine companies from northeast Ohio made the fortune five hundred this year and those are some of these stories are twenty seven hundred. Bloomberg journalists and analysts are working on this morning around the world. It is five thirty nine on Ball Street. The following is in editorial from

Bloomberg Opinion. It's disappointing that UK Prime Minister Boris Johnson has chosen to escalate his quarrel with the EU at this moment, but unfortunately it's not surprising at issues in Northern Ireland Protocol, part of the UK's exit deal with Europe that controls trade to and from the province. Brexit has made trade involving Northern Ireland costlier and more complicated, pushing it farther away from Britain and closer towards Ireland.

Members of Northern Ireland's Democratic Unionist Party say that as long as the protocol stays in place, they'll refuse to take their seats in the power sharing government. So Johnson, bending to their pressure, has essentially told Europe changed the protocol oral scrap it unilaterally. No doubt, the protocol was poorly designed and needs attention, but it can be mended through cooperation, not by Johnson threatening to tear up an

agreement he himself championed. This editorial was written by the Bloomberg Opinion editorial board. I'm David Shipley. For more Bloomberg opinion, please go to Bloomberg dot com Flash Opinion or op go on the Bloomberg terminal. This has been Bloomberg Opinion and Bloomberg Opinion editorials could be heard every weekday at this time. Terminal customers can read more at opie. I M go l futures right now down SMP futures down one. This is Bloomberg just to have snap and just like that,

social media takes a tumble. Bloomberg's Alex Webb will stop by talk about what is essentially a digital advertising story. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Trictape. This is a Bloomberg Business lash and I'm Karen Moscow stocks are lower this morning after a prophet warning from snap Weight on technology shares in fuel concerns about risk

to economic growth. We check the markets every fifteen minutes throughout the trading day on Bloomberg U S and P futures down about fifty one points down, futures down two hundred seventy five and NASDAGG futures down two hundred twenty three. That's down about one point nine percent. The docks in Germany is down nine tenths of a percent. Ten year treasury of twelve thirty seconds yell two point eight zero percent. The yelled downe at two year two point five seven percent.

Nine mex Scrude oil is down a third of per cent, or thirty six cents at a hundred nine dollars ninety three cents of barrel COMEXS Gold up four tenths percent or eight dollars ten cents at eighteen sixty two and ounce the euro one point oh seven one two against the dollar, British found one point to four nine seven and the end at one twenty seven point three one.

Bitcoin this morning is done about a quarter percent at twenty nine thousand, two hundred forty dollars and shere's a snapper down more than twenty eight percent in early trading. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Muchael, Thank you very much, Jaren with mid term primaries well under way.

Voters head to the polls in five states today. In Georgia, where former President Trump's hold on the Republican Party will be tested in the governor's race, Trump back David Purdue, while former Vice President Mike Pence signs with the other man in the race, incumbent governor Brian Kemp. The US and Britain are accusing Russia of spreading disinformation online and

manipulating public opinion about the war in Ukraine. The two countries vehemently rejecting Russia's claim at the West is aiming to control all information flows and to find what is true or untrue. NBA playoffs. The Celtics beat the Heat to even the series at two games apiece. In baseball, the Yankees lost to the Orioles, the Mets beat the Giants,

the Nationals and A's lost. Global news twenty four hours a day on air and on Bloomberg Quicktank, powered by more than twenty seven hundred journalists and analysts in more than a hundred twenty countries. I'm Michael Bard. This is Bloomberg, John Michael, Thank you five forty nine of Wall Street. We are live from the Bloomberg Interactive Broker's studios. They his daybreak, a slump in tech, let a drop for futures after Snap sour the mood with a cut to

reve than profit forecast shares. This Karen mentioned dropping pre market, dragging peers from Meta to Pinterest and Twitter with it. And let's get a closer look this morning with Alex Web corresponded for Bloomberg Quick Take. Thanks for being here, appreciated. Remind anybody born last century what Snap does? Why this

is a digital advertising story. Well. Stap is a social media platform, but largely used by younger users who it's fleeting images and videos, which, after having been watched, then disappear. It attracts uses by encouragence of post every day they have streached that might otherwise use. And as with any other social media platform, they make their money from advertising.

And as we know, when there's a slowdown in the economy, often the first thing that brands and companies and general term two in terms of finding cost savings is their marketing budget. And that's what's happening here. The smaller ones are getting hit first, perhaps a bit more resilience among the bigger ones. Okay, so the CEO, what does he blaming?

You know, the broader inflationary pressures that we're seeing from you know, not least through the war in Ukraine, but supply chain snarl ups, all these things that are affecting companies profits and therefore encouraging companies are therefore having to cut down on their on their expenditures. You know. The thing that you also have to look at with Snap is that it was valued pretty highly already. It was valued at then before yesterday's news, and of course until

markets open something like fifty times it's forward earnings. Now compare that to Facebook, which traded about fifteen times it's forward earnings, and Twitter which is about thirty five times, and Snap was very generously valued. Now if you if Snap is saying that it's earnings that kind of come down, which is, well, they're not going to grow as much as they had expected. They've said it will be below the range they had previously given. That means that by extension,

the valuation has to come down as well. We're seeing that a lot of corrections are happening then in the social media space, as people realize these valuations are quite generous. Yeah, I mean, how much of the story is specific just to the company or is it, as you say, a much much broader story. It is a broader story. But as I sort of alluded to earlier, the big companies

like Facebook and Google, or Meta and Google. You know, they have by some accounts, you know, even Instagram has one and a half billion active users, so does YouTube, and of course even more people using Google Search. So even with inflationary pressures, a lot of brands will still feel they have to be on those two big platforms that. You know, if someone is going on the Internet and searching for blue T shirts and you're in the business of selling blue T shirts, you have to be advertising

on Google. That is less the case at some of the smaller platforms like Snap, like Twitter, like Pinterests, which are a bit more discretionary, perhaps adding you're trying to find its brand recognition, You're trying to find new customers in a different way from from actually driving a sale in the way that you might do our Google search.

How does the Apple figure into this, Well, Apple's role is quite significant because of some changes they introduced recently UM pertaining to what's soon as I d I d f A identification for advertisers. Now, this is a sort of number which let brands work out or app makers work out who was in their app and going from

app to apps. So for instance, if I'm in Snap and I see in Snapchat and I see an advert advert for Nike sneakers, and then I decide half an hour later or even two weeks later in the Nike app to buy those sneakers, it knows that I am the same person because of I d f A. Now, what Apple brought in was changes which made it easy

for people to say don't track me across apps. That means that it's harder for the likes of Snap to say, well, actually, we helped drive drive that sale for you, and I keep by showing them and add an ad in our app, and so that means it destroys a bit of value for the likes of Snap. It's something that a lot of these social media companies and of course other app makers are complaining about, but it is very good for you know, consumer choice and consumer privacy. Alex, thanks a

lot for the explainer. Appreciated Alex Webb, correspondent for Bloomberg quicktic and you know the pre market this morning, Snap shares the most actively traded right now. They're down twenty eight percent. Karen, all right, John, thank you. It's five three on Wall Street. Time for our Bloomberg the Law Report. We get to the legal stories we're watching this morning with Bloomberg's Joan Donnegher. Senators in both parties are looking at adding tax perks a credit for u S producers

of semiconductors, to a bill addressing economic competitiveness. Some Democrats, though, are kathy with the idea of adding tax provisions that benefit for rations. Lawmakers want to raise the ten thousand dollar deduction cap on state and local tax payments are looking for another way to get it done. They're hoping to see it go through the appropriations process and battle lines are forming on Capitol Hill and the effort to

include cryptocurrency assets in four oh one k plans. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg Market Intelligence. Find out more at Bloomberg Law dot com. All right, Joan, thank you now another legal story we're watching this morning. Cryptocurrency litigation is soaring, prompted by a surge of investors in the space and US proposals promised more rules to fight over

in the coming months and years. According to law firm Morrison Cohen, crypto has generated more than two hundred class action lawsuits and other private litigation as of this month, more than fifty percent since the start of For more on the uptick and lawsuits, Bloomberg student Grosso spoke with Stam Skolnick, a boarder for a Bloomberg Law. Currently, there are roughly four hundred actions, be they private lawsuits government suits,

that are are current in this space. Um That number has grown consistently over the years, according to at least one guy at a firm called a Morrison and Cohen, a mid sized firm in New York that keeps track of these lawsuits regarding crypto companies, about half of the four hundred, though he said that there's been a real explosion in one portion of this that has to do with class action lawsuits, other private litigation. About half of

that four hundred numbers roughly two hundred. That number has grown exponentially over just the last few years, and interestingly, June, just a quick search of this litigation, of this private litigation shows some pretty big names attached to some of these suits, and you don't have to follow legal news

specifically to know some of these names. For example, in January, there was a class action I think it's still awaiting certification, but computative class action against Kim Kardashian, the celebutante, as well as former boxing champ of Floyd Mayweather Jr. And others. And what that pseudolleged is that the defendants had made

misleading statements in Twitter and other social media posts. Two investors of one specific cryptocurrency token called Ethereum Max, and then there have been lots of other big companies including I'm not sure from pronouncing this right, but the fancy

French scarf and bagmaker air Mess International. They also have been involved in litigation of a different type where a patent, trademark and fringeman litigation also, I believe in January they sued a company called Mason Lothschild in the Federal Court in Manhattan basically claiming that that this other company had sold a non fungible token these a nonreplicable digital collect double items, and that they were doing so illegally, that

they were infringing one trademark from the Suffrench fashion House. And that's Bloomberg Law reporter Sam Skolnick speaking at the Bloomberg Stewing Garasso. Catch more of that interview, plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or downloading this show at Bloomberg dot com slash podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the

Bloomberg terminal at b law Go. SNP futures are lower this morning, down forty five points and down futures down two hundred forty and NASDAG futures down to two hundred to tenure treasury of twelve thirties seconds yet two point eight zero percent our top stories straight ahead on Bloomberg Daybreak, And this is Bloomberg