Bloomberg Daybreak: May 26, 2022 - Hour 2 (Radio)

morning call. Here's Bill Maloney, Bill, good morning, Hey, good morning, Karen, Like you said you as features are trading mixed right now, with dout futures hired by seventy three point says if he's game six and as deck futures are down by seventeen. The US ten year old at two point seven two percent, Gold is down, oil is climbing, and bitcoin is lower

by two percent. Shanghai rose half a percent overnight, while up markets are also in the green this morning and back in the US on the economic Fronday thirty GDP and initial job as claims after the bellas night, Snowflake reported said slower sales growth will continue and in videos says that Shina lockdowns hurt their forecast regarding earnings. This morning, look for a dollar General, Dollar Tree, and Macy's to

report in the pre market and a deal News. Elon Musk boosted the aggregate equity commitment for Twitter to thirty three and a half billion. Wrapping things up, car to

Health was cut the equator. Barkley's Lula Lemon raised overweight at Morgan Stanley and Kraft Times was downgraded to sell over at UBS Live from the First Breaking News desk on Boo Melody Care, great Bill, thank you and to hear live breaking news over here Bloomberg Time Squawk on your terminal s q U a w K. Also watching Southwest this morning after it raised its second quarter operating

revenue growth forecast. That's a Bloomberg business flash. Now here's Michael Barr with more on less going on around the world. Muttle Karen, thank you very much. Across the country, law enforcement and school officials are ramping up security in the wake of the Taxis shooting and left nineteen school children and two teachers dead. The retired police officer killed while trying to stop the gunman in a racist attack at

a Buffalo supermarket was laid to asked. Aaron Salter was posthumously promoted to lieutenant and awarded the Medal of Honor. Another big planeload of baby formula has arrived in the United States to help ease the shortage worried parents are facing. It will head to an Allentown, Pennsylvania distribution center. 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 lost the Nationals. And A's one 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 Barr, and this is Bloomberg. Karen, all right, Michael Barr, thank you. It is six nine

on Wall Street. We turned to news in science and Technology now with a Bloomberg and j I T STEM Report, brought to you by New Jersey Institute of Technology, one of the nation's leading polytechnic universities and a top military friendly school. Learned more at n j I T DOT E D Use Lash of Veterans and now here's it's making news in science, technology, engineering, and math. Countries are redeveloping abandoned crop lands at an unsustainable rate, according to

our report published in the journal Science Advances. The new studies says abandoned crop lands need to be left alone to regrow forests and reconstitute ecosystems. If they are put to use too soon, it jeopardizes the lands contributions to reducing CEO. Two Boeing star Liner commercial space vehicle returned from a six days sojourned to the International Space Station. It's an advance in the company's effort to provide now

SO with a second option for transporting astronauts. The n Crede Starliner separated from the I s S early Wednesday and touchdown at four or forty nine pm local time at White Sands Missile Range in southern New Mexico. And the UK's antitrust watchdogs started a new investigation into Google. The investigation comes over suspicions the company may have abused its dominant position across its ad tech that goes to the heart of its business model. That's the Bloomberg and J. A. T.

Stemra Poor John. All right, thanks Karen. We are lying for the Bloomberg Interact Broker Studios. It is now six fifty one on one Street time to check what's going on in d C. Some of the top stories in our nation's capital include President Bladen urging action on guns, as the signs in order on police reform Chuck Schoomer, she says slim prospects for gun legislation anytime soon. And the former president says he's going to attend the n

r A Houston event after the Taxis shootings. And then there's the Pennsylvania Republican Senate race going into an automatic recount. Let's take a deeper dive into some of these stories this morning with Bloomberg TV and Radio Washington correspondent Amory hord durn A, Marie, how are you? How are you? Very good? Well, I think under the circumstances, the president urging action on guns, let's take a deeper dive. What what's he talking about? What are the prospects anything's actually

gonna happen. Yeah, it's been a really tough twenty four hours for the nation. And the President didn't me explicitly say what needs to be done, but just again in vote his bully pulpit saying something has to be done in terms of this country not have a backbone is standing up to the gunlock. Is that the president's words were, when you actually look at real changes, you know, we have been down this road so many times, um, you know, most notably twelve after the Sandy Hook massacre of that

elementary school. And right now, the one issue in Congress that potentially could be a starting point to buipartisan support are these red flag laws, which basically allows a family member or an individual from the law enforcement to go to the court and ask them to temporarily remove guns from an individual that is unstable and could be deemed

a dangered society. So this has come bipartisan support. It is a law in nineteen country states, including Washington, d C. Many of these states took up these red flag logs laws after the Parkland shooting at that high school in Parkland, Florida.

The issue is send a coon yesterday a little bit more pessimistic, saying, you know, even if it got through the House, even if there's some biparson support in the Senate, you still have to get ten Republican senators, and he's not sure you'll get all get enough to pass this is the President is going to head to Texas at some point. Yeah, he said, he in the first lady will be heading to Texas. Actually she was at in the vent yesterday as well, and she said, of course

will go there. And John, you know, this is I think moving a child is quite personal for this president in the sense that Mr he that happened to him twice. He lost his adult son Bow, but he lost a very young baby daughter in a our accidents. So this is something I think the President inter internalizes the loss of the child. But obviously this massacre, he wants to be able to keep greet TV families and show that

he can with them. Okay, Um. The n r A is still going ahead with its Houston events after the Texas shootings, and the list of attendees and speakers will include the former president and it looks like the messages already being home that well, this is the Democrats fault because they have failed to tackle mental health issues. Yes, it depends who you ask in Washington how you should approach the shootings. That really seems that only America deals with it, and the publicans will say this is a

mental health issue. That yesterday as well and after the President's plans, former President don try plans and saying at the n Rights Animal meeting in Houston this weekend, he says American needs real solutions, real leadership in this moment moment, not politicians and partisanship. It's another part of the debate. John, A lot of Republicans you said this yesterday was Governor Abbott as he had beata or rooke him as he was speaking, saying it's not time to make this political.

But Democrats say, this is exactly the right time. We don't want to become themb to this, we don't want to move past this. So this is going to be, uh, you know, a fiery n R A moment given is just four hours away from where this shooting in this elementary school took place. Hey, Emory, from your perspective down in the nation's capital, does this move the needle at all in terms of issues that will shape them in term elections. It's a good question. I don't think we

know just yet. I think this was the Democrats would like it to. The President said a number of times in to turn pamet action. You know, is that a rallying call for Democrats to go out to vote. I think the Democrats want to use this also the potential of row Wee Wade being overturned in June. Uh. The issue is the Republicans are really going to want to hammer home the fact that consumer prices are at decades high. We have very high inflation, deathlete prices, growth, rebuild, et cetera.

But there is a potential for some people to change take some table issues like that and actually go out and vote potentially on abortion right, but potentially on gun restation. If I just want to wrap up and hit hit this one quickly, the what's the update with the Pennsylvania primary race? Good questions too close to call still, so it goes into an auto Actually there's a Pennsylvania law that requires an automatic recount um when it is this close. So t P D John Okay, I appreciate goods and

talk to you. Bloomberg TV and Radio Washington correspondent and Red Hordern apologize for the line there. That's a little sketchy anyway. Um. You can read more about these stories in Bloomberg dot com or Bloomberg terminal reminder. You can follow all the latest Bloomberg Radio in Washington, d C. That's Bloomberg at one oh five point seven FM HD two and as we look a hand to the cash open right now, the futures they are in the green.

The down futures I've wanted to twenty seven points, that's a rise of fourth tens of a percent right now. S and P futures fourteen points higher. That's a fourth tense of re percent. And that as day futures of twelve points, that is up a tenth of a percent. Apple right now down one percent among the most actively traded shares along with in video shares, they are down five percent in the pre market, and the ten year yield in the US the benchmark to seventy three that

is now one pasis point and just ahead. Bloomberg Surveillance Live from the World Economic Forum Dono, Switzerland with Tom Keane and Lisa prim Woods. Ever Karen Moscow, I'm John Tucker. Have you've been listening to Bloomberg Day Bread broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one oh six one to San Francisco, Bloomberg nine

sixty to the Country. Sirius XM Chad A one ninet and around the globe, the Bloomberg Business and Bloomberg Radio dot com. This is Bloomberg Daybreak. He had six thirty on Wall Street. Good morning, I'm John Tucker and I'm Karen Moscow. We're just about three hours away from the open of US trading. Time for the five things you need to notice start your day. Brought to you by

Interactive Brokers. Investment Advisors switched to Interactive Brokers for lois caused global trading and turnkey custody solutions no ticket charges and no complex of your interests at ibk R dot com slash r i A first, US futures are higher, at least SNP futures this after yesterday saw the SMP five climb about one percent. We've been up and down all week as traders assess the path of FED policy. Jane Foley has had of f X strategy at Rabbo Bank. I think the Fed 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 that they have behind the curve that they could affected sooner on inflation. Even some of their own have admitted that perhaps Fish would have started to hike before they did at the end of last to keep demand and check.

Jane Foley and Robbo Bank seized dollar 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. See It's time to buy the different stocks. At least that's according to strategist at City Group, who say shares in Europe and emerging markets are most attractive. Cities very mark a checklist currently warning on just six of eighteen red flags. That compares to thirteen red flags

before the two thousand eight financial crisis. I mean also a fresh US 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 as boosting pay for its workers. The company is raising US salaries by ten percent or more as it

faces a tight labor market and efforts to unionize. Shares Her down more than one percent and Twitter gaining and pre market trading after Elon musk change plans to fund he Is acquisition. Is no longer looking to use a margin loan for his forty four billion dollar purchase of the social media Covity and boom Bridge. Nita Young is here live with the story this morning. Good morning, Rinita,

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. That will increase the size of the deal's equity component to thirty three point five billion dollars, and it's enough to eliminate the mar and 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 shrunk about forty since Musk first announced his stake and Twitter in early April. Live in New York. I'm Renita Young, Bloomberg depriak. All right, we need to thank you. This update brought to you by Interactive Brokers Simple IBKR Global Trader app deposit in your local currency and trade stocks in the US, Europe and Asia. Start your free

trial at ibk r dot com Slash Global Trader. Thanks Karen's sixty three on Wall Street and let's bring in Michael barn now to tell us what else is going on in New York hand around the world, John, Thank you, sir. Texas Governor Greg Abbott says a number of concerning social media posts were discovered by the gunman 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 to side calls for strict gun legislature and noting that major cities have their own gun laws in place, but they don't work, and we need to realize that people who think that, well, maybe if we could just implement tougher gun laws, it's going to solve it. Chicago, in l A and New York disproved that thesis. During the news briefing, Data O'Rourke, who is running against Abbot for governor, interrupted the news

conference saying this shooting was totally predictable. He was escorted out but told reporters outside enough is enough. The governor talks about mental health. It is insane that we allow an eighteen year old to go in and buy an a R fifteen. What the hell did we think he was gonna do with that data. O'Rourke says, this is on all of us. New York Governor Kathy Hoco wants to raise the age for purchasing the type of firearms

used in recent mass shootings in Buffalo and Texas. Governor Hoco says she wants to raise the legal purchasing age for a R fifteen style rifles to one. The governor 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 Hucole, a man accused of randomly murdering a fellow 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, bans chokeholes, restricts, no knock warrants, titans, use of force policies, emphasized de escalation. I'm duty to the interview to stop

another offs from using the executive force. President Biden also criticized the Senate for not passing reforms and the George Floyd Justice in Policing Act. Eight of the ten largest cities in the US lost population during the first year the pandemic. The investiments released today by the U S ins His Bureau show own Phoenix in San Antonio gained new residents from one. New York led the way, losing more than three hundred five thousand residents were about three

point five percent of its population. In its Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more twenty seven hundred journalists analysts more than a hundred twenty countries. I'm Michael barn This is Bloomberg, John, Michael. Thank yous now six thirties, six songs, Wall Street Time down for the Blueberg Sports Update AD.

Here's Scott Sidenberg. Good morning, John Rookie JP Sear has made his first big league start, tossing five scoreless innings as the Yankees blank the Orioles to nothing, both runs coming in the bottom of the fourth inning on a Miguel and Do Hars single and a throwing error. Prior to the game, The Yankees placed Gehan Carlos Stanton on the ten day I l Aaron Boone after the game, talked about the win with players stepping up. Yeah, I

mean it. It's been a tough couple of days for us, just just with you know, some people going down and things, and 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 homard 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 eleven. 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, Rafael Nadal reached the 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 more wins at major tournaments. Um Scatt with Bloomberg Sports, John all right, thanks, Scott, is

now all six thirty eight. Well Street, time to take a look at stocks, some of the names that are moving in the premarket, and for that we're joined by Bloomberg Radio and Television. Corresponded, Pretty Gupta. Oh look, Elon Musk is in the news again. I'm shocked. Yeah, let's let's start there and get it out of the way if we can t w t RS your ticker there for Twitter up five and a half percent in the

pre market. Of course, has comes after billionaire Elon Musk dropped plans to partially fund his purchase of Twitter with the margin load tied to his Tessela's sake, and increase the size of the deal's equity component to thirty three point five billion. That's a lot of jargon for something very simple than they's just changing the financing a little bit. But the reason that shares are up, essentially is because it signals he's very serious about this deal, and that

was a concern weighing on Twitter shares lately. The idea that if the deal is still on pause, is Elon Musk looking to pull out. He also tweeted last night about because turns around Twitter as well and things that should be changed. So once again there is this kind of flip flopping. But right now, the idea that he is looking to fund his purchase or actually making arrangements to do so, shows that perhaps he's serious about the deal. So t W t R is your taker up five

and a half percent. But it's really the heavyweight tech names John that are catching my attention. You gotta talk about Apple. You have to talk about n Video because that is the macro story at play right now. Apple, in particular, A A p L is your taker down one point four percent. A report coming out saying that the tech giant is planning to keep iPhone production roughly flat in two This is a huge deal because they, of course are increasing their minimum wage. So I think

an hour as well. They're also looking to kind of deal with more margin pressures and things like that, increasing compensation given this kind of war for talent in Silicon Valley. So if you're not growing your over here at the Apple store right and it's it's everywhere, it's everywhere, the labor market is hitting them hard and there. If you don't have that increased production, then your margins are going

to get compressed. And that's I think the fear the Apple retail union what I'm trying to figure out what you are as wrong? Girl, I worked in retail in high school. Man, I did not work in Apple stores, although I wish I had. I hear they pay well a A p L anyways down one point four percent. Let me throw one more at you here and the chips are down video but I like the chips segue n v D as your taker down five and a half percent. This is of course the heavyweight chipmaker giving

a revenue forecast weaker than expected. They remember they are also dealing with this enormous demand up four chips, but because of those COVID nineteen lockdowns in China that disrupted production and transportation lines, they aren't necessarily able to capitalize on and therefore giving a revenue forecast that was weaker than expected. N v d A down five and a half percent. Are you off tomorrow? You're here now, I'm here, but I will be off next week. Okay, great, Bloomberg,

We'll talk about that tomorrow instead of stocks. Bloomberg Radio and TV markets corresponded pretty gupta and as a whole doll Right now down futures up sixty one, SMP futures of five, the NAZAC futures all over the place this morning, right now, down seventeen points. You're listening the Bloomberg tap bread. Mostly cloudy later today, maybe shower the high temperature seventy Tomorrow, cloudy, showers, thunderstorms, high sent eighty Saturday, showers and storms in the morning

to eighty. This is Bloomberg 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. And US stock index futures have in fluctuating. SMP futures are higher right now. Traders are weighing federies or minutes that struck a less hawk hawk ish note. We checked the mark. It's every fifteen minutes throughout the trading day. On bloomberg

SMP Future is up eight points right now. D Future is up eighty five NASDAGG Future is down to twelve. The DAGs in Germany is up six tents of a per cent ten. Your Treasury up five thirty seconds yield two point seven two percent, yield of its two year

two point four six percent. Nine Max Screwed oil is up nine tenths percent or ninety nine cents at a hundred eleven dollars thirty three cents of barrel comex s Gold down a tenth of upper cent or two dollars thirty cents at eighteen fifty twenty announced the Euro one point oh seven one six against the dollar, British pound one point two six one seven, and the end one twenty six point six nine Bitcoin this morning lower down more than two percent at twenty nine thousand, one hundred

fifty dollars. Today we are looking for a second read on first quarter gross domestic product at at eight thirty Wall Street time, along with the weekly report on initial jobless claims pending home sales are at a ten, and Macy's is among companies scheduled to report earnings today. 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. Republican Texas Governor Greg Abbott and his insisting guns were not the problem of the mass shooting by an eighteen year old that killed twenty one people, including nineteen children. Abbot instead is pointing to mental health. Two years to the day since George Floyd's death, President Biden signed an executive order aimed at increasing police accountability. In the NBA playoffs, the Celtics beat the Heat Boston, 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 lost the Nationals. And A's one global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael bar this is Bloomberg. John all right, Michael, thank you very much. It is now six twenty out Wall Street we are lying for the Bloomberg inter Racker

Broker Studios. This is Bloomberg daybreak among the most actively traded stocks of the pre market, shares of Apple down one and a half percent. Apple is going to keep its iPhone production flat. Let's find out more Bloomberg Quick take Canker alex Web stopping buying to give us some insight. Is this a demand or a supply driven thing? It almost certainly a little bit of both, but the demand

element is probably at this stage more significant. What Apple tends to do is set up the number they demand for production from their suppliers. Tend to be an upper limit, and they work back from that. So the two d and twenty million, there's always a possibility it could be significantly lower than that, but they have got problems in the supply chain. You've also then have a lot of people struggling with inflation and looking at how to spend

their budgets. Does a thousand dollar iPhone towards the end of this year board in the realm of something that's necessary for a lot of people. Maybe not? Uh, And remind everybody the iPhone what it means to Apple in terms of the breakdown of its revenue. Well, are far less important than it used to be. Actually it was about six I think it was. Now it's closer. So they've managed to diversify quite considerably into services and of

course other devices. But services include downlards from the app store, Apple TV, plast, Apple Music, all those things, which advantageously for a company like Apple, are more dependable recurring revenue. You might sign a year long to year, you know, you sign up something on a monthly basis, but you stick around for two years with that subscription the iPhone, Yes, it is very sticky. People do renew it, but they could wait three years before they give new one or

even four. And that's increasingly being the trend. You have got dependable, high margin revenue with services, and now Apple has pivoted quite successfully towards it. They's seeing much competition, I mean, no more or less, frankly than they have

been doing in the past. The bigger concern is actually how competition is going to shape up as we move into the next generation of devices, when we think about smart us is and those sort of things, which then I don't know if we're gonna talk about this in the second, but that flicks at this issue of competition for employees that Facebook is piling into the space of augmented in virtual reality, and they're hiring a lot of people from Apple as a consequence. So that actually is

the threat for Apple right now. It's competitions to talent. Yeah, well, just paying more. Oh wait, they are right, well exactly. So that's the news we have overnight that Apple is going to start playing its employees in the U S at least ten percent more. This applies, of course to the engineering talent they have, but also significantly to the retail employees that they have around the country. And you know,

there are two elements there. There's competition for employees, but there is also um unionization, which potentially Apple might be trying to fend off. We've seen Amazon some Amazon locations unionized in the past year or so. Apple may have that on the in their view, they might see it as a specter. They might see that on the horizon ago, Well, let's try to get ahead of it by offering our employees and something more. Okay, So do they answers the the what's the extent of which is going to cut

into the revenues? I mean, it's highly unlikely to take a big chunk out of their margins, you know, for the partly for that reason, I have said that the stores are really about selling hardware, and hardware is you know, proportionately not as big a part of their revenue. They make so much of it now from from services. Now they have four hundred stores around the world. Good chunk of those are in the US, but I think it's

slightly lesser than than half. So uh, you know, do you think of a few hundred stores and in the scope of almost two hundred billion dollars only story of mythologies almost four hundred billion dollars in revenue, it's really something of a rounding era when you look at their overall costs. Yeah, Alex of Apple seems to always have something up it's sleeve. What's next? We are expecting a big refresh of of the iPhone later this year or be the iPhone fourteen. Few details of seat out. Our

colleague Mark German has been very much on top of it. Um. I think it's probably gonna be the form factor as much as anything else. But usually the upgrades are to do with the quality of the camera and the quality of the silicon and the chips running the thing, and that's what we can expect without fail. Whether there's something

else that comes alongside of it. It's hard to see big, significant upgrades at this stage, but you don't necessarily need that, because if you're upgrading the chips and you're upgrading the camera, the phone requires more memory, it requires more processing power. Apps come along that use all of that. It gently drags people into the next generation of bones over time, even if there's not a significant blockbuster achievement intense of innovation. Alice,

we appreciate thanks for the update. Alex Web are quick take anchor and again. Shares of Apple this morning among the most actively traded right now, they are down one and a half percent in pre market trading. Yeah, right now ahead of the cash open our Wall Street. We're seeing futures mixed this morning. The futures up eighty two points, S and B futures, the REP seven and technivy NaNs dead futures kind of bouncing between gains and losses. Right now,

they are down twelve points. You're listening the Bloomberg day break and the Bloomberg weather fort today, cloudy, maybe a shower later today. At the high semity tomorrow showers thunderstorms in the afternoon, high eighty. This is Bloomberg from the Bloomberg Interactive Brooker's Studios. Is Bloomberg day Break for Thursday, May two, coming up this hour. Big Tech feels the pinch of supply chain, bottlenecks and COVID lockdowns. Elon must survive.

Twitter bids and shares higher in the pre market, and President Biden signs that key executive order. Two years after George Floyd's death, New York Governor Hocle wants to raise the aged by guns plus the alleged gunmen in Sunday's deadly subway shooting is being held without bail. I'm Michael blar More ahead, I'm Scott Sedburg, and Yankees win the Mets lows and the Rangers go for a three too

series lead. Today. I'll have that more coming up in the sports Mentall's train ahead on Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius XAM one nineteen and around the world on Bloomberg Radio dot com and via the Bloomberg Business APT And

good morning. I'm Karen Moscow and I'm John Sucker. Bloomberg Daybreak being brought to you by B and Y Melon's Pershing Insight Conference back in person June fifteen through the

seventeenth at the Gaylord Resort in Grapevine, Texas. They'll miss it, Renchister now at the Insight dot B and Y melon dot com and US futures are higher this morning, with S and P future is up about eleven points down, futures up a hundred four at nowsday, Futures that will change, and your treasury of three thirty seconds yield two point seven three percent. John Hey, Carol, looks like markets are groping for a direction this morning. It's been an up

and down week. The nanz X right now is unchanged and early trading following some shake up some big tech. Pepper International Founder and CEO Carol Pepper believes the outlook remains strong despite some uncertainty when prices get too high on goods right now, consumers are backing off this diflation. Instiens 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. Peppery International founder Carol Pepper also believes that US will avoid a recession this year. John Chairs of Nvidia are down in early trading,

no off their lowest levels. They slid as much as ten percent after earnings missed estimates, and in video said shina Is COVID lockdowns in the war in Ukraine are weighing on sales forecast. The chipmaker's CEO also said it's doing its best to combat supply chain Bottlenecks and chairs are down more than five and a half percent in the pre market, and Apple is also shaking up dance

deck features this morning with a couple of announcements. Sources say the company plans to keep iPhone production flat this year. It's and suppliers to assemble approximately two D twenty million iPhones, that's about the same as last year. Apple also revealed it's raising salaries for US workers like ten percent, and Bloomberg Quick Tech anchor Alex Webb says, it's an important

staff 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, well, we pay you pretty

well already. There's also the threat of people hiring both the engineers but also from those stores Bloomberg sound like Webb says Apple's biggest number of employers comes from its stores and shares of Apple right now, they are down in the pre market one and a half percent. Well, John Yesterday's FED minutes are also driving markets. This morning,

officials revealed a less hawkish tone than expected. They planned to raise interest rates by fifty basis points at each of the next two meetings, leaving them with flexibility to change course later. And another FED note there's worth that the Kansas City FED president Answer George will retire in January. George will leave her post at about the same time as Chicago FED chief Charles Evans. That will create two openings among the twelve regional FED banks next year. Well,

stocks in Europe opened higher this morning. Energy shares are leading the stock six hundred following gains in oil prices overnight. In Asia, stoor choppy following concerning comments from a top Chinese official, and Bloomberge Juliette Sally joins us with the details from Singapore. Juliette, good morning, Good morning, John and Karen. Chinese stokes fluctuated, while bonds rallied and the off show You one led Asian e m f X losses as

premierly one. China's economy is in some respects faring worse than in twenty Japanese stokes 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, Julia thanks. Back here in the US, there's more news

from the text sector. Twitter shares higher and early trading after Elon must change plans to fund he his acquisition. He's no longer looking to use a margin loan for his forty four billion dollar purchase of the social media company. Bloomberg's Really Too Young is here Live with the story, Really the good morning, 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.

That 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. This new structure could reduce the risk of the deal for both Musk and his lenders, particularly given the recent slide and Tesla's stock price. Shares of Tesla have shrunk about since Musk first announced his stake and Twitter in early April. Live in New York. I'm gonna need a Young Bloomberg daybreak, all right, Renia,

thank you. Let's tarn the politics now. In the latest move from the White House, two years to the day since George Floyd's death, President Joe Biden signed an executive order aimed at law enforcement accountability on Bloomberg, said baxterre 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 and 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 Gaybreak and thanks that. In Pennsylvania, this worring high profile Republicans

Senate race headed for a recount. Amy Morris has details from our Bloomberg One newsroom in Washington. Celebrity doctor memit Oz, who has Donald Trump's support, leads former Bridgewater Associates CEO David McCormick by nine hundred 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. All right, Amy, thank you, and S and P. Futures this morning are higher up eleven points down, futures of a hundred two and Nasdaq futures are little changed. Sure to head your latest local headlines, plus a check

of sports, and this is Bloomberg. Thanks Karen six and seven on Wall Street Time to bring in Michael Barr to find out what else is going on a New York and around the world, John, thank you very much. Investigators say they have yet to determine a motive for mass shooting at a Texas grade school that left twenty one dead. Governor Abbot said the only warning came 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. Governor Abbot called the eighteen year old government a demented person. Meanwhile, in Houston, Texas is preparing for protests of a national Rifle Association convention beginning tomorrow. Former President Trump is expected to speak. New York Governor Kafe Hokel is calling for raising the age

to twenty one for purchasing assault weapons. Vocal says she wants to raise the legal purchasing age for a R fifteen style rifles that's the same type of weapon used in Tuesday's mass shooting in Texas had left twenty one

people dead, including nineteen children. We must harness set outrage and that anger, and that discussed that there could be someone with such wanted 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 Hocal says, I don't want eighteen year olds to have guns, at least not in the

state of New York. A man accused of randomly murdering a fellow passenger on a New York City subway train has made his first court appearance. His lawyer urged the judge and the public not to rush the judgment. Andrew 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 the state wide office. Delgado takes a ver 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. Michael Barr and this is Bloomberg, John, Michael, thank you. And it's now six ten on Wall Street. Time for the Bloomberg Sports Update. And here's Scott Seidenberg. Thanks John. The Mets belf to the Giants yesterday. Rookie Thomas Szapucky was roughed up in his first big league start. Evan Mongoria homer twice, Jock Peterson one team 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 her Kings from Carolina here,

said coach Gerard Glenn. We played them two wheel good games in the building last week, and I know we didn't meant with the win, but we played two good AGGA games, So I gotta keep working, keep playing, and it's gonna be a big game five and a NBA The Celtics beat the Heat n eighty. 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 Cratchykova was upset in the first round on Monday, and now she will not defend her doubles title as the world's number two players tested positive for COVID nineteen. Elsewhere, Raphael and Nadal reached the 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 scotts Edinburg with Bloomberg Sports, John, and thanks a lot. Right now, as we look at futures, they've turned green down. Futures up one hundred and fifteen points, that's a four tense of eight percent now, SMP futures, the E mini futures up twelve points, a three tens of percent. Technica futures right now, they've turned green up

nine points right now. And as we look at the volatility index, the VIX is slightly lower right now at one Wall streets fear gage and the tenure yield, Yeah, the US down one basis point, the benchmark at two point seven two. You're listening the Bloomberg day Break. Bloomberg weather reports Today, cloudy, maybe a shower of the high seventy Tomorrow, cloud showers, thunderstorms, Saturday, showers and storms ending during the morning. Miss is Bloomberg