Bloomberg Daybreak: May 25, 2022 - Hour 1 (Radio)

been an arrest in a deadly subway shooting. Plus the second ship in the baby formula from overseas arrives in the US today. I'm Michael Blar More ahead, I'm Scott Sevomberg. The Rangers even up their playoff series. The Yankee staff they're losing shriek and the Mets lose a wild one out West. I'll have that more coming up in sports.

That's all's training ahead 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 XAM one nineteen and around the world Old on Bloomberg Radio dot Com and via the Bloomberg Business App. And good morning. I'm Karen Moscow and I'm John Tucker. Bloomberg Daybreak being brought to you by Informatica. In the cloud,

your data has the power to do the extraordinary. Managed data across any location of the clown for accurate and actionable insights. More at Informatica dot com and US futures are little change this morning, five oh one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg Guess and P futures are again little change. Down futures down thirty four and nasday futures are up eleven. The decks in Germany is up almost

two tents of a percent. Pen your treasury up to thirty seconds your two point seven four percent, John, Karen. We're gonna have more on the markets in a minute, but first, the latest on the deadliest shooting at a US grade school since Sandy Hook Elementary in Connecticut. At least nineteen children and two adults were killed by an

eighteen year old gunman at its Texas elementary school. The shooting is drawn emotional and angry reaction from President Biden Bloomberg's at Baxter has more Biden tapping into the anguish to lose a child. It's like having a piece of you soul and pivoting quickly to gun control. As a nation, we have to ask when in God's name are we're going to stand up to the gun mommy and answers. When we passed his sault weapons ban, mass shootings went down.

When the law expired, mass shootings triple, the President saying it's time for Congress to move back. In San Francisco, I'm at Baxter Bloomberg Day Break, thanks said, in the interests of transparency, we should known. Michael Bloomberg, the founder majority owner Bloomberguilt, the parents of Bloomberg Radio, is a donor to groups that support gun control. John The Texas shooting took place just ten days after a gun end up in fire at a Buffalo supermarket in a racist attack.

Anger overflowed among Americans who have long demanded legislation to prevent gun violence, and Bloomberg Politics A contributor, Genie she and Zano discussed the issue with Bloomberg's Joe Matthew. It's never too early to start talking solutions, because this is not again an isolated incident. This change of politics good backfire, It can backfire, but you know what that should be nobody's concern, and particularly this president's. This is going on

and on. It has to be addressed. The problem is can you move anything like this through the US Congress today? And sadly, the answer is no. Bloomberg Politics contributor Jeanie she han Zano speaking with Joe Matthew on Bloomberg Sound On. Catch the program weekdays at five pm Eastern on Bloomberg Radio. And another major story we're following this morning to keep primary races across the country well, starting to Georgia, where Candida is backed by President Donald Trump, had both won

and lost. Amy Morris has details from our Bloomberg News room in Washington. Georgia Governor Brian Camp and Secretary of State Brad Ravensburger, both targets of former President Donald Trump, both won their primaries. Camp beat David Purdue with seventy three point seven percent of the vote, and we'll face off against Democrats Stacy Abrams, who ran unopposed. Ravensburger beat Jodie Hives with fifty two point two percent of the vote.

Former football great Herschel Walker, who was also backed by Trump, won the GOP Senate primary with sixty eight point three percent of the vote, and he'll face Democrat incumbent Raphael Warnock, who won with nearly nineties six percent of the vote. Marjorie Taylor Green one her GOP House primary with sixty nine point five percent of the vote in Washington. I'm

Amy Morris, Bloomberg Daybreak, Right, Amy, thank you. Let's continue our team coverage of those primary races now with a look at some other results, and Bloomberg's Rnedy Young joins US Live with more. Good morning, Rinda, Good morning Karen. The Republican Senate primary heads into a runoff in Alabama with Katie Britt and U S Representative Moe Brooks. Britt garnered forty percent of the vote to nine percent for Brooks.

Former White House Press Secretary Sarah Saunders wins the GOP nomination for governor in Arkansas with eighty three percent of the vote, and Texas Attorney General Kin pas Exton wins the GOP nomination for re election with nearly sixty eight percent of the vote. He was up against a member of the Bush political Dynasty, beating George P. Bush in the contest. Paxton is still under indictment for securities fraud

and an FBI investigation. Live in New York, I'm gonna need a young Bloomberg day break, thanks for the attorney to markets US futures Right now, they are mixed following the late day rally on Wall Street, which saw the Dow close higher as well as the SMP five Paris losses. FED policy continues to dominate market moves. Today. We're gonna get more clues on how high interest rates may go and how fast the FED releases minutes from his policy meeting two pm Wall Street time. Let's get a preview

from Bloombergs Mike McKee and unusually open. FED has all but promised two consecutive half percentage point rate increases in June and July. What they haven't publicly agreed on is

what happens after that. That's why investors in analysts will be parsing the minutes of their main meeting for clues to how far i FED officials think they need to go and how quickly something else to look for a move away from discussing the concept of a neutral rate target in favor of following financial conditions, which have tightened significantly the past two months. If that continues, they may not have to raise rates as much. Michael McKee, Bloomberg Daybreak,

All right, Mike, thank you well. The highly anticipated Twitter shareholder meeting also takes place today, and we get a preview from Bloomberg's Tom Busby. Well, you can expect a tumultuous meeting today, and it's all about money. Forty four billion dollars. Twitter's board says Elon Musk's forty four billion dollar agreement to buy the site is a done deal. There's no negotiating on the sale price, and it's urging

its shareholders to approve the deal. But Musk is balking, saying he'll only move forward if the company is transparent about all the fake bots and spam accounts on the platform. Many think that Musk either has cold feet about the agreement or is merely angling for a sharply lower price.

Tom Busby, Bloomberg Daybreak, Thanks Tom. We maybe just a day away from a major deal in Attack, where all Bloomberg News has learned that Broadcom is working towards announcement of an acquisition of VM where tomorrow the stock and cash deal would value the cloud computing company at one dollars this year caused much lower than that yesterday, nearly one hundred sixteen dollars this year. This is Bloomberg Andy.

It is now five seven the Odd Wall Street and that's time to bringing Michael Barr with more on what else is going on to New York and around the world. Joanna, thank you very much. Sarah Man, suspected of abruptly pulling a gun and killing a stranger on a New York City subway train, has been arrested. Police say they don't

yet know what motivated the apparently unprovoked attack. Andrew Abdulla was taken into custody hours after authorities posted his name and photo on social media and implored the public to help find him. New York Mayor Eric Adams the fact is he is the posted child of many people who believe they can create violence without any repercussion at all. Mayor Adams says the twenty five year old is expected to face a murder charge in the death of forty

eight year old Daniel Enriquez. Enriquez was shot to death while heading to brunch Sunday morning. Earlier, Mayor Adams commented on a report from the National Oceanic and Atmospheric Administration NOAH released their predictions for the Atlantic Hurricane Season Outlook, predicting an above normal storm season for a seventh year in a row and up to six major hurricanes impacting

the country. Adam says it's essential for New Yorkers to understand their risks and evacuation plans before these kinds of weather events drunk coastal storms, hurricanes and floods. UH preparation is everything, and today this announcement is allowing all of our agencies and New Yorkers to be prepared. Mayor Adams reflected on Hurricane Ida, which killed more than a dozen New Yorkers last fall. With flash floods, l I, Double R and Metro North train ridership is down from pre

pandemic levels. In the estimated number of passengers average three D twenty seven thousand per day for the work week ending May. The good news is that ridership is up two point from the previous week. First Lady Jill Biden and Surgeon General Dr vi Vic Murphy will greet the arrival of the second shipment of baby formula through Operation Fly Formula FedEx plane traveling from Germany packed with formula lands today at Dulles Airport outside Washington. The first shipment

of specialized formula from Europe arrived Sunday. South Korea says it appears North Korea has test launched and intercontinental ballistic missile. The South says the North also tested two other missiles. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts in more than a hundred twenty countries. I'm Michael bar this Bloomberg. John, Michael, thank you. It's now fine s down on Wall Street. That's time for

the Blueberg Sports Update. You're Scott Sidenberg. Good morning, John. The Rangers beat the Hurricanes for once even up their playoff series at two games apiece Frank for trying to open up the scoring on the power play, Adam Fox because a bettage ad and Andrew Copp also scored, while Igor Shisterkin made thirty saves. Here was Gerard Glant competed heard the first payer was about it the best payod of hockey ice statum this year from Bote, not just us.

It was death back and forth. It was I thought it could have been forward to that thought last after the first payod goal Davy elsewhere. The Oilers took a three one series lead over the Flames with a five three win. NBA Playoffs last night, the Mavericks avoid elimination, beating the Warriors one nineteen one On nine. Tonight, Eastern Conference Finals Game five, the Heat and Celtics tied at

two games apiece. Pose Trevino with a big knight for the Yankees, the solo homer in the third, a game time single in the seven, in the walk off winner in the bottom of the eleven, as the Yankee snapped their season high three game losing streak beating the Orioles

seven six. The Mets and Giants playing a back and forth game last night in San Francisco, the Mets scoring ten runs in the seventh, eighth, and ninth innings combined, they erase a six run deficit, but would lose in the bottom of the ninth and when Daz allowing four hits, including the walkoff single to Brandon crawwelve. The final tennis at the French Open, Joe Wilfred Sanga's career comes to an end. He loses in the first round and retires

at the age of thirty seven with eighteen career titles. Elsewhere, Americans Madison Keys and Jessica Pegoula advanced on the women's side. I'm Scott Sedinberg with Bloomberg Sports. John alright, thanks Scott, and right now, futures unchanged. The dansdeck features anyway, the SMB futures just four points lower right now, and the DOWN futures down fifty two points. So the benchmark ten year yield in the US two seventy three that is

found one basis point. You're listening to Bloomberg day Break and just ahead on Bloomberg Daybreak, another match shooting, also the midterm elections that will be the focus this morning. When we speak to Terry Haines of Pangea Policy. That's straight ahead markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business and at Bloomberg Quick Take. He's a Bloomberg Business lash and

I'm Karon Moscow. All stocks in Europe are higher. US Dock Index futures have turned lower as markets assess the outlook for Federal Reserve monetary tightening. The dollar is pushing higher, and we check the markets every fifteen minutes throughout the trading day. On bloomberg S and P futures are down eight points now futures down seventy four, nastday futures down twenty eight. The decks in Germany is down a tenth of our percent. Year treasury at four thirty seconds, he'll

two point seven three percent. The yield on the two year two point four nine percent. Nimex screwed oil is up one percent or at a dollar eight a hundred ten dollars eighty six cents, and barrel comex gold is down half percent or eight dollars seventy cents at eighteen sixty two seventy announced. The euro one point six six five against the dollar, British found one point to five oh seven, the en at one seven point oh six, and Bitcoin this morning it's up nine ten percent at

twenty nine thousand, seven hundred dollars. Today we are watching for a report on durable goods orders out a day thirty Wall Street time and at two week at the minutes from the Federal Reserve's most recent meeting. 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. An eighteen year old gunman opened fire at a Uvalde, Texas elementary school, killing at least nineteen children and two

adults before he was killed by law enforcement. Later of visibly a great President Biden addressed the nation renewing his call for the reform of gun laws. We passed his swallow upon span mass shootings went down when the law expired. Mass shooting Triple president by Georgia Governor Brian Kemp has easily beat Donald Trump's handpick challenger and a Republican primary, former Senator David Purdue. Kemp got seventy eight percent perdue received.

Kemp will face Democrats Stacy Abrams in the fall. Georgia Secretary of State Brad Rapinsberger has won the Republican primary and a bid to keep his job. He defeated three challengers, including US Representative Jody Heist, who was endorsed by Trump. NHL playoff the Rangers beat the Hurricanes. Baseball, the Yankees beat the Orioles. The Mets lost to the Giants Red Sox and has won the Nationals lost NBA playoffs. The

Mavericks stay alive as they beat the Warriors. After the game, an emotional Warriors head coach Steve Kerr talked about the elementary school shooting in Texas. When are we gonna do something? Kerr his father was fatally shot nearly four decades ago. Global News twenty four hours a day on air and on Bloomberg Quick Take power by more than journalists analysts in more than twenty countries. On Michael bar This is Bloomberg, John Michael five twenty On Well Story. We're live from

the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak. Another mass shooting in the midterm elections the focus for us this morning. We're joined now by Terry Hayes, founder of Pangia Policy. Terry, always a pleasure, Thanks for being here. Republicans as I, as far as I can tell, Terry have suffered no electoral consequences for their opposition to even modest restrictions on civilian weaponry. Um, what if anything is next?

Good morning, John, and thanks? Uh what's next? I think, unfortunately, is the same kind of mishmash. We've been a political mishmash we've been seeing since Dandy Hook. Uh. You know, there are this is a classic example of of parties where the purest position tends to take over or and there's very little room for for common sense, uh, incremental improvements in the middle. And there's not a lot of leadership in either party. You know, as far back as

in the aftermath as Andy Hook. Uh, there there was an attempt bipartisan attempt by senators to me Republican mansion democrat uh on on background checks, to really really tighten all that up. And what you ended up with was with a sixty vote threshold needed, you ended up with a vote where four Republicans crossed the line for a yes, five or five Democrats crossed the line on no. And uh, you know what's going to have to happen is there's going to have to be some leadership. Uh. Frankly, I

think that that ought to start at the top. What you you know, for all of the president's uh grief and obviously sincere emotion about this, what you didn't hear yesterday was a al must to lead on this. And you know, I think that uh uh that the leadership is certainly necessary on a bipartisan basis number one. And secondly, from a cold political calculation, Uh, I frankly think that

would be a winner. On the President's part. President has favorability. Uh, there's you know, he's not going to get a single vote from somebody who's a Second Amendment absolutist anyway, but you know, the broad middle of the country or is crying out for action and uh, and how to step up. Frankly, the Obama people did not step up before and uh, the president has the opportunity to do so. Now does it make a difference come midterm elections? I think really,

you know, I think really not. Um people have this. I think you your observation is correct. People have this largely baked into their their concerns about it. And and you know, frankly, there's a lot of there's there's a lot of pointing in every other direction. Democrats blaming Republicans, Republicans blaming democrats, Uh, politicians blaming lobbyists. You know, And to me, that's always a tell. When you're blaming lobbyists,

uh for for failure to act, you're deflecting. No matter who you are and or what the issue is and uh, you know, and clearly somebody needs to to to break out of this, uh, this cycle in order to make some progress. Here's another response, um option volume for shares of Smith and Wesson. Yesterday after this they surged the shares were up over one percent. I mean, I'll spare

you the adjectives, but that's where we're at. Yeah, it's uh, you know, I heard of a statistic recently and I'm not going to claim this is this is accurate, but but you know, over the last year, gun purchases have been up a great deal and uh, you know, there has been a sense certainly since uh certainly since and the summer of two years ago where uh, you know, people who get much more active about gun purchases because they fear for their personal security for all kinds of reasons.

And uh, you know, regardless of what happened yesterday and not minimizing it, quite the opposite. But you know that that's that's a much bigger problem. UM complicating things, I would imagine with the Supreme Court's current term, they're taking up at this point local gun laws, for example, those that are in New York. There's a real possibility those

will be scaled back tremendously. That is a possibility. Yeah, uh it uh, you know, it runs up the you know, the local attempts, local and state attempts UH to push the envelope on issues UH these days is a feature of h is a feature of the federal state relationship and the desire of folks to uh to want to establish positions and uh, you know, guns are no different than uh, you know, than the road debate or you know,

a bunch of other things in that regard. I mean you see legislatures and UH and local authorities trying to Karen all right, John, thank you, and good morning. It is five thirty on Wall Street. I'm Karen Moscow along with the John Tucker, and we're 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. Beginning in Texas, have we've been discussing at least nineteen children and two adults were killed by an eighteen year old gunmen at rang the elementary school. President Biden addressed the nation last night, expressing condolences and quickly pivoting to gun legislation where in God's name is our backbone to the courage to do with the stand up to the lobbies. It's time to turn this pain into action. President Biden, addressing the nation after the elementary

school shooting and Texas. We should note Michael Bloomberg, the founder and majority owner of Bloomberg LP, the parent of Bloomberg Radio, is a donor to groups that support gun control, including Every Town for Gun Safety. And on the other major story we're following this morning, keep primary races across the country. As we spoke to Terry Haynes about this just a moment ago in Georgia to Canadada, is backed by Donald Trump have lost another one. Bloomberg's Rnita Young

joins US Live with more details. Rath in a Good morning, Ton, Good morning Georgia. Governor Brian Kemp and Secretary of State Brad Raefensburger, both targets of former President Trump, both won their primaries. Count beat David Purdue with seventy three point seven percent of the vote. He'll face Democrats Stacy Abrams, who ran unopposed. Raffensburger beat Jodie Heist with fifty two

point two percent of the vote. In former football great Herschel Walker, also backed by Trump, won the GOP Senate primary with sixty eight point three percent of the vote. He'll face Democrat and come to a. Raphael Warnock, who secured nearly nineties six percent of the vote, and Marjorie Taylor Green one her GOP House primary with sixty nine point five percent of the vote. Live from New York, I'm gonna need a young Bloomberg day break, all right,

we need to thank you well. Elsewhere, the Alabama Republican Senate primary heads into a run off with Katie Britt and US Representative Moe Brooks. Britt garner percent of the

vote to Brooks twenty nine percent. Former White House Press Secretary Sarah Sanders won the GOP nomination for governor in Arkansas with eighty three percent of the vote, and Texas Attorney General Ken Paxton took the GOP nomination for re election with nearly sixty eight percent of the vote against George P. Bush And Journey to the market's futures lower this morning following me a late day rally on Wall

Street yesterday. Just ahead, we'll get minutes from the FEDS latest meeting that is due to PM Wall Street time and the potential big deal in tech. John Bloomberg News has learned that Broadcom is working towards announcing its acquisition of vm Ware tomorrow. The deal would value of the cloud computing company at onety a share. SMP futures are

down four points this morning. Down futures down forty one NASTAGG futures down to twelve ten year treasury up four thirty seconds the two point seven three per cent, and they yield on the two year two point four and

nine percent. Nine X Screwed oil is up one and a half percent of a dollar sixty six at a hundred eleven dollars forty one cents of barrel and comex school there is down four ten percent or seven dollars eighty cents at eighteen sixty three sixty announced straight to hand, your latest local headlines plus a check of sports, and this is Bloomberg all right, Thanks Karen thirty three on Wall Street and time to bring in Michael Barr with more on what else is going on to New York

and around the world. John, thank you very much, sir. The n y p D says there is an arrest from Sunday's fatal, unprovoked subway shooting that left one man dead. Thirty year old Andrew of Della of Brooklyn turned himself into belize A. Della has more than one he prior arrests on his record, including an outstanding weapons charge from last year and previous charges of assault, robbery, menacing, and

grand larsening. New York Mayor Eric Adams says of Dullah is the posted child to show just how easy it is for someone dangerous to get ahold of a weapon in New York City. History of this person, any reasonable thinking New Yorker is going to ask themselves, why is this person still on our streets? Mayor Adam says the city will work to improve the subway safety. More infant formula is arriving from overseas today to ease the US shortage.

Nearly a million, eight ounce bottles worth of Nestley's Gerber Baby formula arrives at Dula's airport. First Lady Jill Biden will greet the plane's arrival. The federal government it's being criticized by how it has handled the shortage of formula. Health and Human Services Secretary how do your serra? Says the FDA's authority is limited if they're not policing themselves, and then we have to do more to make sure

we are doing the right painful apparance. We need that supply Secretary Basra as the formula shipment then heads to a Pennsylvania distribution center. South Korea says North Korea test launched a series of ballistic missiles this morning, including a presumed intercontinental ballistic missile and at least one short range missile. South Korea says that it is in violation of you and Security Council resolutions and as serious provocation that threatens

peace on the Korean Peninsula and the international community. The World Health Organization has identified about eighty cases of monkeypos globally. In the US, there are eight cases under investigation across six states. Global News twenty four hours a day on air and on Bloomberg Quickdake, powered by more than twenty seven hundred journalist and analyst and more than a hundred

twenty countries. I'm Michael Barr. This is Bloomberg, John Michael, thank you, and it's now five thirty five of Wall Street. That's time for the Bloomberg Sports Upday. It here's Scott Sudeberg. Thanks John. The Rangers defending home ice, beating the Hurricanes for one to even up their series at two games apiece. Rank Patrono, Mikas Devenna, jad Adam Fox, and Andrew copp All scored. Igor Shasturkin made thirty saves as the home team has won each of the first four games of

this series. Here's Gerard Gallant. I mean, really, you look at the four games. It's not just a two at home, but the four games have been pretty much one goal game most of the way through it. And you know, we'll two teams that are close in battle, and you know, I just think it's been outstanding hockey by Bowl teams elsewhere. The Oilers take a three one series lead over the

Flames thanks to a five three win. Baseball Jose Trevino with a big night for the Yankees, solo homer in the third, a game time single in the seventh, and the walk off winner in the bottom of the eleventh as the Yankees beat the Orioles seven six, snapping their

season high three game losing streak. The Mets, meanwhile, played a wild game in San Francisco, rallying from eight to down the Mets, scoring ten runs in the seventh, eighth, and ninth combined, but they would fall in the bottom of the ninth as Edwin Diaz allowed four hits, including the walkoff single to Brandon Crawford. Twelve your final NBA Playoffs, the Mavericks avoid the sweet beating the Warriors one nineteen

one oh nine. And tonight Eastern Conference Finals Game five from Miami, the Heat and Celtics tied at two games apiece. I'm Scott s Edinburg with Bloomberg Sports. John all Right, Thanks Scott seven on Wall Street Time down for the trying to say business report. For that, We're joined by Bloomberg's ed Quarry. The US East Coast's busiest sport complex is getting ready for a summer of delays in congestion as container ships avoid the clogged West Coast gateways the

traffic picks up from Asia. The Board of New York and New Jersey moved nearly eight hundred three thousand, twenty ft equivalent units in April, the second busiest month in the port's history. New York State's biggest mall has reached a new low, and lends could get hurt. Destiny, USA and Syracuse was valued at one hundred forty seven million

dollars last year according to an appraisal. That's about a percent drop from its valuation and a nearly decline from Gas prices hit record highs in New Jersey this month, but not for New Jersey Transit, statewide mass transit agency and a major fuel consumer, and J Transit executive director Kevin Corbett says the service hedged diesel prices for the fleet and so far, he says, they're in good shape. That your Bloomberg Trying State Business Report, my med Cory.

All right, thanks that it's five thirty eight on Wall Street, timed out for the tri State Business Report, and uh time for a look at some of the stories were following around the world right now, and let's check in 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 photos Kan ten ten Wins in New York. We're talking about Fiser slashing the prices of charges for its medications and some of the poorest countries.

I'm Lisa Matteo and I'm w BZ in Boston. I'll be reporting on tech stocks taking up beating and early trading. I'm Stephen carl on Bloomberg DAB Digital Radio in London. We've been hearing from the EASE Economy Commissioner Paalo Gentiloni, who's been telling us he's helpful of a deal in the coming days on an EU embargo on Russian oil.

I'm Gina Servetti and for w c c O in Minneapolis, I'm reporting that Minneapolis area residents saw their power bills surge almost twenty seven percent last month from last year. I'm ed Gory on w w J in Detroit. I'm reporting Abvit Labs is reopening a Michigan baby formula plant in June. And those are some of the stories are twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine on

Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. From inflation to the war in Ukraine, the US faces an array of crises that demand the government's full attention. Yet, on any given day, large numbers of the two point one million person federal workforce don't come into the office.

That's a problem. Remote work hobbles the ability of government officials to collaborate, respond nimbly to crises, and forge consensus on policy goals because taxpayer funds will be spent maintaining federal buildings. Regardless, it also wastes money. Many cities and states are far ahead of the federal government in bringing back workers to offices. The reason is simple. Addressing today's

challenges requires all hands on deck. If local governments can manage that, so can the federal government, and it should without further delay. This editorial was written by the Bloomberg Editorial Board. For more bloom Our opinion, please go to Bloomberg dot com, slash Opinion or ope I n go on the Bloomberg terminal. This has been Bloomberg Opinion and Bloomberg Opinion editorials can be heard every weekday at this time. Terminal customers can read more at opie I am go.

This is day break. The Bloomberg weather from meteorologist Rod Caroline makes the son of clouds today. The high temperature in the mid seventies that I partly a mostly qloudy low temperature dipping down to the mid fifties, Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business Outland at Bloomberg Quicktap. This is a Bloomberg Business Flash and I'm Karen Moscow and this updates brought to you by Informatica. In the Cloud.

Your data has the power to do the extraordinary. Managed data across any location in the cloud for accurate and actionable insights. More at informatica dot com. US Dock Index Futures are little change this morning. Investors awaiting minutes from the Federal Reserve's latest policy meeting to gauge the pace of monetary tightening, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg. Again, futures are

little change. The ten year Treasury is up three thirty seconds. He'll two point seven three percent. That yield on the two year two point five percent. Nimex screwed oil is up one point six percent of a dollar seventy six and a hundred eleven dollars fifty three cents of barrel.

Comex gold is down half percent on eight dollars fifty cents at eighteen sixty two ninety announce the era one point six seven zero against the dollar, British found one point to five oh nine the seven point oh four and bitcoin this morning up more than one percent at twenty nine thousand and seven dty dollars. That's a Bloomberg business flash. Now here's Michael Barr with more unless going on around the world. Michael Karen, thank you very much.

A visibly angry president bit and addressed the nation, renewing his call for the reform of gun laws. It's in response to the deadly mass shooting at a school in Yuvaldi, Texas, killing nineteen children and two adults. It's time for those who obstruct or delay or blocked the common sense gun laws. We need to let you know that we will not forget. We can do so much more. We have to do more. The eighteen year old gunman in the school shooting was

killed by authorities. Georgia Governor Brian Kemp has easily beat Donald Trump's handpick challenger and a Republican primary, former Senator David Perdue. Kemp had seventy eight percent Perdue received. Kemp will face Democrats Stacy Abrams this fall. Republican Herschel. Walker will face Democratic incumbent Senator Raphael Warnock to represent George A in the November general election. Walker received sixty eight

percent of the vote. In the NHL playoffs, the Rangers beat the Hurricanes, the series now tied at two games apiece. In baseball, the Yankees beat the Orioles. The Mets lost to the Giants, The Red Sox and A's one. The Nationals lost NBA playoffs. The Mavericks stay alive as they beat the Warriors. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than journalists, analysts more than a d twenty countries. Michael Barr,

this is Bloomberg, Karen Ry, Michael, thank you well. It's nine Hot Wall Street. This is Bloomberg Daybreak. And now we want to bring you part of our interview with Bank of America's CEO Brian moynihan at the World Economic Forum and Delvos. Moynahan told Bloomberg's Tom Keene and Lisa Abramowitz that US consumers are holding up well against inflation. That says he doesn't expect consumers spending to slow anytime soon. Let's listen into that conversation. Now the account balance of

the consumer pre pandemic to now our multiples bigger. So a person had uh two to three thousand average collective balance on accounts now has and that would have been about fourteen hundred. Actually if h one to two thousand, what about is now almost four thousand bucks. A person had two to five thousand but about average. It now has thirty and thousand dollars. So just step back and think about it grew five percent in the month of April from March. So what you're seeing is consumers have

more money in the accounts. The idea that they spent the pandemic money that came in January March last year just not true. Now the second question is they paid down the credit card bounces from a hundred billion, we were down the seventy backup dighty lots of our capacity. The third point is are they spending? And that's what's interesting. In the first two weeks of May, the consumers spent ten percent more than they did last May. That's over top of the payments that went out to pay taxes.

So the consumers spending and people say, well, it's inflation eight percent more transactions. Somebody doesn't just I just I don't want to interrupt, because we're gonna extend this to forty five minutes. This is the real morning, guys. This is the bank nerd giving us the operational stuff here. This actually goes the heart of a lot of the economic questions of the moment, right because everyone's talking recession here and stagflation. We were speaking with Bob Prince of Bridgewater.

What you're saying does not scream of stagflation or recession. So that's this is that's why I said this we were talking earlier. This will make the job, you know, the Fed's job hard and easy, hard, hard, easy, and that you have consumers in good shade, you know, not over leverage. The home values went up, but frankly that our LTV and our portfolios in the fifties, so to give you sense, so you know that the prices went up and people didn't borrow it out and stuff. So

that's the good news. The bad news is what's going to slow him down. So if you look at t S a travel Sunday, it was over top of nineteen by that's a number of people went through the airport. Yeah, so what's gonna slow him down? Nothing right now? And so the question is, you know, so the FED has this typically this very difficult thing of getting to slow down without slowing him down too much. And the second

thing is the unemployment rate is really low. And so if you look at our Michael Harton, it's a great economist. He know he's got he's got you know, he's got this year. You know the mid to high too. You know he's got next year mid ones. Uh but it's slowing down. The next year. You look at his quarters is slowing down. So the idea is the Feds, the FEDS work slows you. Uh no. The problem is he

still has an appoyment three and a fourth percent. You're saying, wait, that can't you can't slow consumer down is working because they have money spent. So that's a difficulty. I believe, Yeah, I believe it's I believe that they're gonna be able to manage this flow. But it's gonna be a tricky execution. And there's things outside to control the pandemic resurgences. Something

going different, no more. But America is much different than Europe and other places because this dynamic of the envirobrancy of the US Consumer and as Bank of America CEO Brian moynahan speaking at the Bloomberg's Tom Keane and Lisa Abramowitz and Davos. Continue to tune into Bloomberg Radio and Television today for full coverage of the World Economic Forum. John all right, thanks, Karen is now five three Wall Street Market's assessing the outlook for Felder Reserve monetary tightening,

among other things. Futures right now in the green, Let's get you set up for the trading day ahead. Tracy mc melanie has had a global asset allocations strategy at Wells Fargo Investment Institute, joining us this morning. What is your base case on an outlook for the United States? Good morning, done, and thank you for having me so our These cases not quite as as UM positive as Brian moyna Hans is. In fact, um, you know, we think that we are starting to see high frequency economic

data starting to roll over. We think that a lot of the positive data that we've seen has been more backward looking, that the forward looking data is more negative UM in terms of looking at things like consumer purchasing power UM deteriorating the inflation adjusted wages are starting to decline UM and layoff really are just beginning. Manufacturing resilience, we think is also going to be tested in the

coming months as consumers start to rotate. So it's our space case at this point that we are probably going to see a mild recession towards the end of this year and into early Margin compression has been a theme as we've got results from the retailers. Have we seen peak inflation? Well, it's very possible that we have seen peak inflation, but we do think that more important than whether or not it was a peak is how persistent

that inflation is going to be. And we think that inflation could persist at really uncomfortably high levels UM even as the economy starts to weaken here, and you know that's going to be because the labor market will probably remain tight. UM. We still have some supply chain disruptions and they're sticky components of cp I like rents that

will likely remain high UM. So you know, what we're starting to see is UM some inventory building, some supply chain relief, and that could start to bring inflation down later in the year. But you know, at the same time, we think wage pressures remain, and that's not a good combination for earning. As far as FED policy, is it written in stone for the June and July meetings that receive fifty basis points, probably not written in stone, But the markets are pricing for that, and the FED has

indicated that that is the past that they're going to take. Um. So their primary focus at the moment is to slow inflation. But you know, we think they're seeing some of the same deteriorating data that we're seeing, and you know, one has to think that it's starting to concern them. But we don't think they'll pull back on their aggressive policy really unless there's some kind of market disruptions, you know, maybe a liquidity event. Um. We don't think they'll step

in as long as markets are orderly um. But we will be reading the minutes today to see if they mentioned an each triggers that might cause them to take a pause. Given all what you've said there, Tracy, what

do you pay for future growth at this point? Yeah, So we do see the likelihood of a pe compression, and we do think that it is um likely that earnings are going to grow, possibly at a lower rate this year than most of Wall Street is pricing in we have a two twenty earnings by year ends, and you know that to us, UH says that there's probably some upside potential in equity markets from where we are today, but it's not a straight line to that upside, and we do think will end the year um probably in

negative territory. We see about a ten percent decline in the S and P five by the end of the year. That's the overall ten percent decline from the start of the year a year today. Door from where we levels, where we are now, Okay, from this right now, that's exactly right, all right, Tracy, A pleasure to appreciated. Tracy McMillan, head of Global Asset Allocations Strategy at Wells Fargo Investment Institute.

Ahead of the cash open on Wall story. Right now, the futures are in the green too little change now, futures of eight points smp emni, theatures just four points higher in the NASDACK futures are up seventeen points. As far as treasuries, the benchmark ten year yield right now at two seventy four, that is pretty much un changed. The euro one O six seventy six down about half a percent against the US dollar, and you're listening to Bloomberg Daybreak