Bloomberg Daybreak: May 26, 2022 - Hour 1 (Radio)

open of US trading. Let's get you up to date on the news you need to know at this hour. SNP futures are little change this morning after the SMP climbed about one percent yesterday. We've been up and down all week as traders assessed the path of Fed policy. Jane Foley, as head of f X strategy at Rubble Bank, I think that is more likely to go the full monthy.

They need to get their credibility back, you know, there's been so many accusations over the last few months they are behind the curve that they could affected sina on inflation. Even some of their own have admitted that perhaps they should have started to hike before they did. At the end of last to keep demand in check. Trainfoliot robo

banks seized all their strength. Continuing minutes from the latest FED meeting show officials looking to raise interest rates by fifty basis points at each of their next two decisions. Is the time to buy the dipping stocks. That's according to strategist at the City Group, who say shares in Europe and emerging markets are the most attractive cities. Bear market checklist currently warning on just six of eighteen red flags. That compares to thirteen red flags before the two thousand

and eight financial crisis. Well, big tech is in focus this morning. John after week earnings from Nvidia shares the chipmaker down five and a half percent. It says China's COVID lockdowns in the war in Ukraine will weigh on results, and he has said batt'll cut sales by about five hundred million dollars this quarter. We also have French news from Apple. Sources say the company plans to keep iPhone production flat this year as the environment turns challenging for

the smartphone industry. At the same time, Apple boosting pay for its workers. The companies raise the US salaries by ten percent or more as it faces a tight labor market and efforts to unionize. Shares it down more than one well. Twitter is gaining in pre market trading. John

after Elon must change plans to find his acquisition. He's no longer looking to use a margin loan for his forty four billion dollar purchase of the social media company, and Bloomberg's or Needy Young is here live with the story. Good Morning Renny to Good morning Karen. A regulatory filing shows Elon Musk is providing an additional six point to five billion dollars in equity financing to buy out Twitter.

That'll increase the size of the deal's equity component to thirty three point five billion dollars, and it's enough to eliminate the margin loan. This new structure could reduce the risk of the deal for both Musk and his lenders, particularly given the recent slide in Tesla stock price. Shares of Tesla have sunk about forty percent since Musk first announced his stake in Twitter in early April. Live in

New York. I'm gonna need a Young Bloomberg daybreak, all right, Thanks for Nita and ahead of the open on Wall Street to SMP futures right now they have turned flat. Nansday futures down thirty four down, futures up thirty four points. This is Bloomberg. That's not fine. Three on Wall Street. Time to bring in Michael Barr with Moore of when else is going on in New York and around the world, John,

Thank you, Sarah. Texas Governor Greg Abbott says several concerning social media posts from the gunmen were discovered moments before the rampage began and rob elementary school in Uvalde. Twenty one people died before the eighteen year old gunmen was killed by law enforcement. Governor Rabbit brushed aside calls for strict gun legislation, noting that major cities have their own gun laws in place, but they don't work, and we need to realize that the people who think that, well,

maybe we just implement tough for gun laws. It's gonna solve it. Chicago, in l A and New York disproved the thesis during the briefing. Beda O'Rourke, who is running against Abbot for governor, interrupted the news conference, saying this shooting was totally predictable. New York Governor Kathy Hoko wants to raise the age to one for purchasing the type of firearms used in recent mass shootings in Buffalo and Texas.

The governor also says she held an emergency meeting with state police and I said, I want state police patrols visiting our schools doing daily check ins every single day from today to the end of the school year. Governor huncle the man accused of randomly murdering the passenger on the New York City subway train, was denied bail. During his first court appearance, Andrew Abdulla's lawyer urged the judge

and the public not to rush to judgment. On the second anniversary of the death of George Floyd, President Biden signed an executive order to address police accountability. The executive order raises standards fans chokeholes, restricts, no knock warrants, use of force policies, emphasized de escalation and duty. Do you just stop another officer from using executive force? President Biden also criticized the Senate for not passing reforms and the

George Floyd Justice and Policing Act. The Close Race between Trump backed Memodaz and David McCormick has triggered a recount in the Republican primary for a Pennsylvania US Senate seat. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists and analyst more than twenty countries. Michael barn This is Bloomberg, John Michael, thank you as five thirty six Street. That's Dive the

Bloomberg Sports Update. Here's Scott Seidenberg. Good morning, John rookie JP Sears made his first big league start, tossing five scoreless innings as the Yankees blanked the Orioles to nothing, both runs coming in the bottom of the fourth inning on a Miguel Andrew Hoar single and a throwing error. Prior to the game, the Yankees placed John Carlos Stanton on the day. I l Aaron Boone after the game,

talked about the win with players stepping up. Yeah, I mean, it's been a tough couple of days for us, just just with you know, some people going down and things, and I'm really excited to see those guys step in and play key roles and help us get another series victory. It was a different story for the Mets. Rookie starter Thomas Sapucky, who was roughed up in his first big league start. Evan Longoria homer twice. Jock Peterson went deep for the fourth time in two games as the Giants

route the Mets nine three. Sabucky tag for all nine runs on seven hits and three walks in just an inning and a third, the Mets losing back to back games for just the first time since April tenth and eleventh. Hockey. Tonight, it's Game five between the Rangers and the Hurricanes from Carolina, with the series tied at two games a piece. NBA, the Celtics are one win away from the NBA Finals

after a night win over the Heat last night in Miami. Tonight, the Warriors look to close out the Mavericks in Game five of the Western Finals. Tennis, at the French Open, Raphael Nadal reached three hundred Grand Slam match victories with his second round win. Only Roger Federer with three sixty nine and Novak Djokovic with three twenty five have more wins at major tournaments. I'm Scott Edinburg with Bloomberg Sports.

John all Right, Thanks Scott, five seven on Wall Street Time now for the tri State Business Report, and for that we're joined by Bloomberg's Ed Quarry. New York City's tax revenue will likely decline him in an economic slowdown due to the Fed's projected rate hikes this year. George Sweeting, the Budget office is Acting Director, says the agency has lowered its annual March tax revenue forecasts for the next three fiscal years due to plans by the FED to

continue tightening monetary policy. Robert A. M. Stern is bringing his New York touch to West Palm Beach. The architect, whose firm designed some of the top residential buildings in New York, is working on a project in West Palm where prices are expected to set records for a city that was once seen as Palm Beach is less glamorous neighbor Bello Airlines begin serving the Windy City today with

non stop service to Southern Connecticut from Chicago Midway. The airline stays the flight offers Chicago a more convenient and affordable gateway to the New England and New York areas that your Bloomberg Trying State Business Report. I'm d Corey, Thanks, said It is Fine thirty eight on Wall Street. Bloomberg Radio is on the air from San Francisco to New York,

London to Hong Kong. Let's check in now with our global news team for some of the top stories heard on our three hundred at Filigate radio stations around the world. I'm Steve Potas scan Chen Chen Wins in New York. We're talking about how the biggest US cities got smaller during the pandemic um Cornyanahoan kat r H in Houston. Drivers are beginning to bault their record high gas prisis.

I'm Carlin hit complement Debbie Digjelado. In London. We're reporting of how Forest Johnson's government is hoping to move on from the party Gate scandal with a package of new measures to help households hit by the cost of living crisis. I'm Gina Servettian for WDBM in Chicago. I'm reporting that the city has moved a step closer to getting its first ever casino. My mid Gory on w w J and Detroit, I'm reporting the Aloft Hotel Downtown will become

part of Marriott's autograph collection. And those are some of the stories are twenty seven d Bloomberg journalists and analysts are working on this morning around the world. It is now thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. After a gunman killed nineteen children and two educators at a Texas elementary school this week, Americans responded with grief and anger as the collective shock subsized. However,

it needs to give way to purposeful outrage. After all, no other country in the world has persistent mass shootings like this, and most American support passing common sense gun safety laws. From time to time, Congress has come close to acting than failed to. This is a dereliction of duty. Voters should marshal their anger and directed against politicians and

interests who have persistently blocked reasonable reforms. The US is not yet at the point where mass shootings failed to elicit shock, sadness, and outrage, but that's not much comfort, especially when the steps we can take to prevent another massacre or so manifestly before us. This editorial was written by the Bloomberg Opinion Editorial Board. I'm David Shipley. For more Bloomberg Opinion, please got to Bloomberg dot com. Slash opinion or opia and go on the Bloomberg terminal. This

has been Bloomberg Opinion. Bloomberg Opinion editorials can be heard every week day at this time, terminal customers read Moore at opie, I n go dal futures right now turned up thirty eight points and sop futures unchanged, and then astag is still lower there down thirty six points. You're listening to Bloomberg Daybreak and the weather forecast for today cloudy,

maybe a shower, high around seventy. Tomorrow, cloud showers, thunderstorms. Saturday, showers and storms Sunday partly Sunday Memorial Day, mix of sun and plows, high eighty by from the Bloomberg Interactive Brooker's Studios is Bloomberg day Break for a Thursday May coming up this hour. Big Tech feels the pinch of supply chain bottlenecks and COVID lockdowns. Elon must survive. Twitter bids send shares higher in the pre market, and President

Biden signs that key executive order. Two years after George Floyd's death, New York Governor hukel wants to raise the aged by guns plus the alleged gunmen in Sunday's deadly subway shooting is being held without mail. I'm Michael Blarr. More ahead, I'm Scottsburg. Yi's win the Mets losing the Rangers go for a three tiers series lead today. I'll

have that more coming up in the sports. That's all trendy ahead on Bloomberg Daybreak on Bloomberg eleven Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one Boston, Bloomberg nine sixty San Francisco, Sirius Exam one nine team and around the world 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 clowns were accurate and actionable insights more at Informatica dot Com, and futures are lower being dragged down by technology shares. We're coming up to five o one on Wall Street and we checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, NOWSDACK futures are down fifty four points. That's down almost half percent. Doesn't P futures down about five points, and

down futures are a little changed. John and Karen, it looks like markets are looking for direction this morning. It's been an up and down week. The nasdacks lower in early trading following some shake ups in big tech. Pepper International founder and CEO Carol Pepper believes the outlook remains strong despite uncertainty when prices get too high on goods. Right now, consumers are backing off this diflation instence that you have high inflation and that the prices and no growth.

I just don't think that's going to happen anymore. I really think we're going to be much more in a situation where inflation will start tapering down and then we'll start to get into more normalized market, probably by the end of the year. Pepper International founder Carol Pepper also believes the US will avoid a recession this year. Well. John, Cheers and Video are down in early trading, though off

their lowest levels. They slid as much as ten percent after earnings missed estimates, and in Video said China's COVID lockdowns and the war in Ukraine are weighing on sales forecast. The chipmaker CEO also says it's doing its best to combat supply chain Bottlenecks shares her down about six percent in the pre market, and Apple also of those shaking up Nasdaq features with a couple of announcements. Sources say the company plans to keep iPhone production flat this year.

It's a supplies to assemble approximately two million iPhones. It's about the same as last year. Apple also revealed it's raising salaries for US workers by ten percent. Bloom very quick to Canker alex webs it's it's an important step to retain workers. You have two things where you've got this unionization threat on, which is something which has been happening across a bunch of tech companies, at least Amazon.

So there's a suspicion this is sort of trying to fend that off and say what we pay you pretty well already. There's also the threats of people hiring both the engineers but also from those stores, and Bloomberg's alex webs as the Apple's biggest number of employers comes from its stores. Shares of Apple down one percent in early training Well John Yesterday's FED minutes also driving markets this morning,

officials revealed a less unkish tone then expected. They plan to raise interest rates by fifty basis points at each of the next two meetings, leaving their with flexibility to change course later. And another FED no there's where the Kansas City Fed president Esther George will retire in January. George will leave her post at about the same time a Chicago FED chief, Charles Evans bat will create two openings among the twelve regional FED banks next year. Stocks

in Europe opening to hire. This morning, John Energy shares are leading the stock six D following games and oil prices Overnight. In Asia, stocks were shoppy following concerning comments from a top Chinese official and Bloomberg. Juliet Sally joins us with the details from Singapore. Julie, A good morning, Good morning, John, and Karen. Chinese stokes fluctuated, while bonds rallied and the off show you one led Asian e

m f f X losses as premierly one. China's economy is in some respects faring worse than in Japanese stocks edged up on reopening prospects, and Ali Baba was in focus in Hong Kong ahead of its earnings report. The Korean one weekend after the Bank of Korea raised its key interest rate on Thursday and indicated further hikes are coming, as it indicated stabilizing inflation is its key goal. In Singapore, Juliette Sale Bloomber Daybreak, Juliet Thanks. Back here in the US,

there's more news from the text actor. Twitter shares higher in early trading after Elon Musk changed plans to fund his acquisition. He's no longer looking to use a margin loan for his forty four billion dollar purchase of the social media company, and bloom Versus Nia Young is here live with the story. Good morning Nita, Good morning John. A regulatory filing shows Elon Musk is providing an additional six point to five billion dollars in equity financing to

buy out Twitter. Bat will increase the size of the deal's equity component to thirty three point five billion dollars, and it's enough to eliminate the margin loan. Now, this news structure could reduce the risk of the deal for both Musk and his lenders. Particularly given the recent slide in Tesla's stock price. Shares of Tesla have sunk about forty since Musk first announced his stake in Twitter in early April. Live in New York, I'm Rnita Young bloom

birthday break all right, Renia, thank you? Returned to politics now. In the latest move from the White House, two years to the day since George Floyd's and death, President Joe Biden signed an executive order aimed at law enforcement accountability

and Bloomberg's dead. Bacheter has the story. President Biden, along with Vice President Kamala Harris, as the administration couldn't wait any longer for the Senate to pass legislation, and Harris says it's not aimed at hurting police, but communication to strength and trust between law enforcement and the communities they served.

It creates a new National Law Enforcement Accountability Database to track records of misconduct so that an officer can't hide the misconduct, and mandates the use of body cameras and record keeping. He says the administration will continue to try and get legislation passed. In San Francisco, I'm at Baxter Bloomberg Gay break anything said and in Pennsylvania. This morning, high profile Republicans setate race headed for a recount. Amy

Morris has the tales from our Bloomberg newsroom. In Washington. Celebrity doctor memit Oz, who has Donald Trump's support, leads former Bridgewater Associate It's CEO David McCormick by nine two votes. That's enough to trigger an automatic recount. Pennsylvania's Acting Secretary of State Lee Chapman says previous recounts and similar type races in the past have not changed the results of the elections. Counties have to begin the recount by June one,

and they must be completed by June seven. In Washington, I'm Amy Morris, Bloomberg Day Break, right, Amy, thank you, SMP Future is down about six points this morning, down, Futures down eleven, NASDAG Futures down fifty three straight, A hand your latest local headlines plus a check of sports, and this is Bloomberg, right, Thanks Karen five. How settled

on Wall Street? Hanton to bring in Michael Barr with Moore on what else is going on in New York and around the world, John, Thank you very much, sir. Investigators say they have yet to determine a motive for mass shooting at a Texas grade school that left twenty one dead. Governor Abbott says the only warning game in a series of private Facebook messages sent Tuesday morning, he said, I'm going to shoot my grandmother. The second post was

I shot my grandmother. The third post, maybe less than fifteen minutes before arriving at the school, was I'm going to shoot an elementary school. Kevinor Rabbit called the eighteen year old gunman a demented person. Meanwhile, Houston, Texas, is preparing for protests of a National Rifle Association convention beginning tomorrow. Former President Trump is expected to attend. New York Governor Kathy Hocle is called for raising the age to twenty

one for purchasing assault weapons. HOCl says she wants to raise the legal persons gage for a R fifteen style rifles. That's the same type of weapon used in Tuesday's match shooting in Texas that left twenty one people dead, including

nineteen children. We must harness that outrage and that anger, and that discussed that there could be someone with such want and evil in their heart that they would acquire and they are fifteen go to a schoolyard after shooting their own grandmother and opening up an innocent children and teachers. Governor Local says, I don't want eighteen year olds to have guns, at least not in the state of New York.

A man accused a randomly murdering a fellow passenger on the New York City subway train has made his first court appearance. A lawyer urged the judge and the public not to rush the judgment, and Drew Abdulla was ordered held without bail on the death of forty eight year old Daniel Enriquez, who was on his way to a Sunday brunch in Manhattan when he was shot. Democrat Antonio Delgado has been sworn in as New York's Lieutenant Governor, becoming the state's first person of Latino heritage to serve

in statewide office. Delgado takes over for Brian Benjamin, who resigned following his arrest in April for federal corruption charges. Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Mike barn this is Bloomberg, John Michael, thank you. It's not fine tent on the wall street to have this time of the Bloomberg Sports Up today. Here's Scott Seidenberg.

Thanks John. The Mets felt to the Giants yesterday. Rookie Thomas Szafucky was roughed up in his first big league start. Evan Longoria homer twice, Jock Peterson one t for the fourth time in two games as the Giants beat the Mets nine three For Zapucky, he allowed nine runs on seven hits and three walks in just an inning and a third. A much different result for Yankees rookie pitcher J. P. Sears, making his first big league start. Sears tossed five scoreless

innings as the Yankees blank the Orioles to nothing. Hockey tonight, Game five between the Rangers and Hurricanes from Carolina. Here's head coach Gerard Glenn. If we played them two wheel their games in the building last week, and you know we didn't meant whether the win, but we played two good hockey games. So I gotta keep working, keep playing, and it's gonna be a big game five and their building. NBA. The Celtics beat the Heat ninety three. There now one

win away from a trip to the NBA Finals. Tonight, the Warriors look to close out the Mavericks in game five of the Western Finals. Tennis, at the French Open, raining women's singles and doubles champ Barbara Krutchykova was upset in the first round on Monday, and now she will not defend her doubles title as the world's number two player tested positive for COVID nineteen. Elsewhere, Raphael Nadal reached the three hundred Grand Slam match victories with his second round.

Women only Roger Federer with three sixty nine and Novak Djokovic with three twenty five have more wins at major tournaments. I'm Scott Sidinburg with Bloomberg Sports. John alright, thanks so Scott, and headed the cash shows on Wall Street. We have futures right now kind of treading water down. Futures down just to seven points smp E. Many futures just to fine points slower right now. That's down a tenth of a percent, and the tech of a nasday features fifty

two points slower. That he's down four tenths of a percent. As we look for a measure volatility, wall streets, fear gage, the VIX right now twenty eight forty two, and the Euro unchanged tod one oh six eight one. The ten year yield in the US two point seven That is down two basis points this morning, and you're listening to Bloomberg day Break. Day Break brown to you by the

New York Community Trust. Your name will live on as a champion of the clauses you care about for years to come through a charitable bequest to the New York Community Trust. Learn more at Philanthropists dot NYC. Markets headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Quicktape. This is a Bloomberg Business lash, and I'm Cameron. Moscow

Technology shares leading futures lower this morning. Traders also weighing Federal Reserve minutes that struck a less hawkish tone, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now NOWASDACK futures are down about forty seven points, SMP futures are little change, so are Dow futures, and the decks in Germany is up about four tenths of upper cent. The ten year treasury up six thirty seconds, the l two point seven to two percent.

They yield on the two year two point four six percent. Nimex screwed oil is up seven tenths percent or seventy five cents at a hundred eleven dollars eight cents in barrel. Comex gold is down to ten percent or three dollar sixty cents at eighteen forty eight ninety announce the Euro one point oh six eight one against the dollar, British bound one point to five five nine and again one twenty six point seven two, and bitcoins lower down more

than two percent at twenty nine thousand, one hundred dollars. Today, we're looking for a second read on first quarter gross domestic product at at eight thirty Wall Street time, along with the weekly report and initial jovless claims. Pending home sales are out of ten and Macy's is among companies schedule to report earnings today. That's a Bloomberg business flash. Now here's Michael bar with more on what's going on

around the world. Michael, thank you very much. The father of a child killed by a shooting rampage at the Texas Elementary schools says police were slow to move in and were unprepared. Javier Caserras says the father of the fourth grader, Jacqueline Cassara's one of the nineteen youngsters who died along with two teachers in the classroom at rob Elementary School in Uvalde. However, they had of the Texas Department of Public Safety says law enforcement immediately engaged the

shooter and contained him in the classroom. Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more journalist analysis more than a hundred twenty countries. Michael Barr and this is Bloomberg, John, Michael, thank you. Find nineteen on Wall Street. We're lying for the Bloomberg

interactor Broker's Studios. This is Bloomberg day Break. We'd like you to bring an interview now from the World Economic Forum at Davos, Fidelity CEO and Richards sat down with Bloomberg's Francine Laka for a conversation about market volatility and food price is and how long she expects the uncertainty might last. Let's listen to that interview right now. I know you're always extremely thoughtful about the markets. I don't know what it feels like from where you're sitting today.

Are you worried about the future or are the glimmers of hope? Well, there's always a goolders of hope. We're

never completely without hope. But it's a pretty tough environment. Um. I think when you look at where we've come from, an extent of the correction that you've come from, you definitely in equity markets have seen a fairly substantial d rating and probably that's pretty much run its course, and now it's all about what the earnings patterns are from here and obviously what the central banks managed to do

in terms of bringing inflation under control. So are you expecting a lot more of a correction when it comes to some of the earnings that weansaw that margins and extremely difficult for certain, you know, parts of the industries to pass on higher consumer inflation. The risk of her recession has unquestionably gone up. I'm not certain yet that all parts of the world are going to go into recession. Markets are discounting mechanisms, so they've discounted part of that.

But clearly if the backdrop of economic environment accelerates in a downward direction, I think you could see more volatility markets. So I don't think we're through this period yet, but I think there is some hope that possibly we could be seeing the peak of the bearishness. But we're not quite through it yet. So what happens in the next couple of quarters? And how difficult is that to predict for an asset manager? Does it change the way you work? Look,

it's terribly difficult to predict. And that's you know that. I think, as you know, this kind of environment, which is like a turning point and sentiment a turning point

in the sort of economic backdrop, really really difficult. And of course we're coming into this from a very unusual cycle, right, So we've had a compressed, deep procession followed by the most extraordinary bounce back, and then on top of that you've had these external supply shocks, first of all on the oil price side um and then of course with the second wave, big wave of COVID in China with the sort of contraction if you can my activity there and the stumbling blocks that have been put in on

the supply chain, that has been sort of a double external shock which has once again put this huge amount of grit into the economic machinery. That being said, I think you're starting to see the Shanghai situation in particular improve, which I think is a is a big take, and where we get to on the oil price, the gas price, I think is the next big thing that you sort of hang on. But as I think, so, what do you what do you do when you face into this?

I think diversification is extremely important in that we think probably that in terms of bond markets, it will be credit spreads that take the strain rather than the bond market itself. That if you like treasury so I think, you know, government bonds probably feel less volatile from here

rather than than credit. But it is still quite a challenging environment, and I think we've probably got another two quarters at least of volatility as we see this economic backdrop gradually ease a little bit, and then we'll be looking towards the four quarter maybe to see a little more clarity. Your clients and want exposure to China. Interesting.

So we're still seeing quite positive sentiment on China, and notwithstanding the sort of more difficult backdrops that we've seen, it's such an important and major part of the world economy, and that probably is a part of the world where you'll see economic activity resume more quickly. And so we're definitely still seeing quite a lot of positive sentiment towards towards China, particularly given the correction that you've seen quite

a lot of market there. We caught up at a dinner yesterday and he said, I want to come on and talk about the effort and and dragon food. How do we look at food and stood and stations. Food security? Is this, you know, the biggest challenge of our time.

So one of the things that has been just both um, I think really constructive about the conversations this week is how the risk of a food crisis has gone right up the agenda, and you've see a tremendous amount of leaning in from all sorts of parts of both the political and if you like, the corporate infrastructure to figure

out how can we avert a major food crisis. Some good news overnight about maybe beginning to find a way where we might get some of the grain out of Ukraine, and that is a really really important step and all of us we're not there yet, but I think it's been one of those examples were actually getting people physically together talking constructively. Of course, President Zelenski challenged everybody on Monday, like,

you know, you've got to get on top of these people. Um, and I think you've definitely seen some of those conversations progressed. So we're not out of the woods yet on that, but I think we have made real progress this week and actually figuring out what it is we need to do to make sure that food and the food chain

does not get weaponized in times of war. And if we've managed to achieve that this week, I think that will be a tremendous, tremendous result for down that CEO and Richard speaking with Bloomberg's Francy and look at the World the Economic Forum in on Most, Switzerland. You can catch more of that interview online at Bloomberg dot com. Ahead of the open on Wall Street, futures of term mixed DAL future is now up forty points. That's up one tenth of a percent. SMP future is a point

higher than ASDACK futures down thirty five. This is Bloomberg Day Break. The Bloomberg weather for it today for a meteorologist Rock Caroline, mostly cloudy then maybe a shower later today the heights, amperature about seventy degrees cloudy to nine chances showers blows in the mid sixties. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg Quick Tape. This is a Bloomberg Business Flash and I'm Karen Moscow. And

US stock index futures haven't fluctuating this morning. Mrs Trader's way Federal Reserve minutes has struck a less hawkish note right now. It's in p futures are up nine points down, futures are up one hundred one and as deck futures are little change. The decks in Germany's up six tensive upper cent ten year treasury of three thirty seconds yell two point seven three percent, the yield on a two

year two point four six percent. Nimex screwed oil is up one percent of a dollar ten at a hundred eleven dollars forty four cents of barrel Comic school is down two ten percent or two dollars seventy cents at eighteen forty nine eight and ounce. The euro one point oh six nine six against the dollar, British pound one point to five nine three and the end one twenty six point seven six. Looking at bitcoin, it's down two percent at twenty nine thousand, one hundred eighty dollars, and

that's a bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Muchael, Karen, thank you very much. Across the country, law enforcement and school officials are ramping up security in the wake of the taxis shooting that left nineteen school children and two teachers dead. The retired police officer killed while trying to stop the government in a race attack at a Buffalo supermarket was laid to rest. Erin Salter was possimately promoted

to lieutenant and awarded the Medal of Honor. Another big planeload of baby formula has arrived in the United States to help these the shortage worried by parents that they're facing trying to feed their babies. In the NBA Playoffs, the Celtics beat the Heat Boston is now a game away from advancing to the finals. In baseball, the Yankees

shut out the Orioles to zip. The Giants beat the Mets, the Red Sox loss the Nationals, and a'es one Global News twenty four hours a day on air, end on Bloomberg Quick Take, powered by more than dred journalists analysts more than twenty countries. I'm Michael bar This is Bloomberg, John, Michael, thank you. It is fine forty nine on Wall Street. We are blive from the Bloomberg into a hand to broker studios. Let's get you set up at the trading day ahead. We are joined now by Josh Wide, Vice

president portfolio manager Hennessy Funds. Josh, good morning, Thanks for being with us. Can you make the bowl case for stocks this morning? Good to be with you. I'll certainly try. Yeah. Very bullish on the market, notwithstanding some some incredible volatility that we've seen. So yeah, I think that where we are right now, you know, certainly, you know, since late March, we've just had lower lows and lower highs on the market.

But taking a step back, you know, we we are at about sixteen times earnings two thousand, twenty three earnings, so we've got about a six percent earnings yield. Uh, we have a ten year that can't get above three. We're at about to eight, so that six verses eight, six verses to eight is pretty compelling. I mean, so that's where we were before we started talking about a

pandemic two or three years ago. Uh. One thing that I was looking at, you know, we talked a lot about cash on the balance sheet of SMP five companies at about seven point four trillion, so a lot of cash. But I think even more importantly is just kind of where we are now versus you know, several years ago. So you know, net debt, you know cash. You know, as a we look at debt and then cash and

then in offer in cash flows. So the ratio from of net debt to IBADA is less than one, and so putting that in perspective, at the end of oh eight, it was above three. So I think that we are on solid footing balance sheet wise, liquidity wise, evaluation wise. So yeah, I think it's a great setup. Uh you know, once we get a little bit more clarity around interest rate hikes, I think we're we're good for another leg higher. How does it set us up for earning season going forward? Yeah, well,

earning season has absolutely been tough. So I think what people thought would be relatively safe, you know, things like retail Target, Walmart, things of that nature we now see and and I guess in retrospect we all should have known it, but we've maybe chose to ignore it. That you know, there are some pressures from you know, higher gas prices and that comes into gross margins and and certainly you know, shipping costs and the consumers feeling it

clearly in their wallet. I think there's this big reset and so certainly this is where we see the results of what's been going on for so long, all this liquidity flowing into the system and and you know, higher fuel prices. So I think that this is a transition period. We've seen realized volatility just in the last year nearly double. So certainly people don't know what to make of all

of this. But you know, I think that you know, it's not forever, and I think that you know, it's just a natural progression as we see higher rates and and hopefully some kind of a pause towards the end of the year. You interpret the FED venace as being

less hawkish. I think that they're more flexible. I think that you know, the Feds certainly unfortunately, I think with the markets realizing just in the last few months, is that the FED supply isn't going to come to the rescue here, so inflation is now going to have to be dealt with on the demand side. So they, you know, without maybe saying it explicitly, they need to destroy a little bit of demand from the consumer and so that

certainly not pleasant news. It's it's a tough way to deal with it all, but it has to be done. So uh, you know, I think that the Fed is doing what they're doing. They're gonna, you know, stick with the plan kind of some fifty basis point moves. But I think towards the end of the year, this idea that they would have some flexibility that you know, take a step back is welcome news. We saw the market rally on that, so yeah, and and build on that very a little bit. You know, I think they need

to deuce to do these rate hikes. You know, they need some room to maneuver in the case of some kind of big you know, shocked to the market, and they didn't have that up until until late so you know, it would be hard to cut when there's nothing to cut. So now there's something to cut in the future, but they still do need to raise rates in the near term. Give you a real quick give us one name youlike absolutely so in our Hennessy Gas Utility Funds, you know

I would point out Chesapeake Utilities. So I think in a market like as you need, a great balance feats some earnings growth and visibility. Chest of Peak's been raising their dividend for nineteen consecutive years, nearly a two yield, about nine and a half percent growth in that dividend over the last five years. UH Natural Gas Utility josh Pleasure Joshua and vice president portfolio manager at Hennessy Funds, Karen. Thanks John. It is five ft three on wall straight

time for the Bloomberg Laura Board. We get to the legal stories we're watching this morning from Bloomberg's Joan Donnegher. A Florida federal court has ruled a law in Colorado requires that cut in the damage is awarded an Army veteran in a suit over three M combat ear plugs. The veteran had been awarded fifty five million dollars by a jury. The cut leaves him with just short of

two million. The Biden administrations pick to lead research and development at the Environmental Protection Agency is a step closer to confirmation The Senate voted to cut off debate on Christopher Fry's nomination and the Biden administration suitable for pose requiring major companies that do business with the federal government to disclose their greenhouse gas emissions. 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. Title fort h U, the COVID nineteen immigration policy, will remain in place until legal proceedings play out, likely until well into next year. A Louisiana federal judge made the ruling in a case brought by twenty four Republican led states, and it appears that the Biden administration is in no rush to challenge the temporary injunction issued by the judge.

For more in the case, Bloomberg student Grosso speak to Leon Fresco, a partner at Holland and Night Lenn explain why the judge said the Biden administration can't rescind Title forty two. Well, the judge had a few babies for saying that the vital forty two revivision could not be

for displayed. And basically the first and the main rationals that the judge said that the CDC needed to use the a p A Notice and comments process in order to revoke Title forty two, which is interesting because you didn't need to actually use the notice and common process to implement Title forty two. So it's a strange sort of laws that would say you would need to actually

use notice and comments to resend Title forty two. Because then secondly, the judge said that the CDC's rationale is overbroad. The White House says it's going to comply with the court's order, but it's going to feel the decision. Does this indicate a prolonged legal battle that will most likely

end up at the Supreme Court? Well, yes, And what's very interesting about what's occurred sort of the unreported nugget for whatever reason out of all of this is that even though the by administration has appealed, they appear not to have asked for a say of the District Court's ruling.

And for what that means is they're not taking the fast track on the field, they're taking the slow track on appeal, which means that theoretically speaking, Title forty two could be in place until well into three, maybe the middle of Well, this brings me to a question I believe I've asked you before. Is the Biden administration secretly

happy or relieved that this judge saved Title forty two. Well, the only implication that one could draw from the fact that they're not moving for a say of the district judge disorder is that they want Title forty two to

remain in play. And I'm surprised they're not getting more pushback from the immigration rights because the community on this side, because at the end of the day, if you were really intent on eliminating Title forty two as a policy, you'd be put for a stay of the But apparently there's just no desire to the Bloomer essay, which means you'd go through the normal Fifth Circuit process, which could take six months to a year, and then the Supreme

Court process, which could take another six months to a year. And Les Leon Fresco, a partner at Holland and Nights, speaking with Bloomberg student Gross So catch more of that interview, plus analysis of the latest legal news, by subscribing to the Bloomberg Law podcast or downloading the show at Bloomberg dot com, Slash Podcast, Attorney's Confined, exceptional legal research and business development tools at Bloomberg law dot com, and on the Bloomberg terminal at b law go hand Still ahead.

On Bloomberg day Break, we have a check on the business headlines and all the news you need to start your day. And this is Bloomberg