Bloomberg Daybreak: May 27, 2022 - Hour 1 (Radio)

Plus the w h JOE confirmed nine cases of monkeypox in the U S. I'm Michael barr more A and Alice got Edinburg and Yankees win in the Rangers face elimination. I'll have that more coming up in sports. That's all's training ahead on Bloomberg day Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nineteen and around the world Bloomberg Radio

dot Com and via the Bloomberg Business. Good Friday Morning, I'm Nathan Hacker and I'm Karen Moscow and US Dock Index futures are on the rise this morning. We're coming up to five oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg. Right now, SNP futures are up about twelve points down Future is up thirty eight. Nastag Future is up fifty one ten. Your treasury down one thirty second. The yield two point seven five percent. That yield on

the two year two point four seven percent. Nin Max Screwed Oil is up three ten percent or thirty three cents at a hundred fourteen dollars forty two cents of barrel. Comex's Gold is up a third of per cent, or six dollars ninety cents at eighteen sixty eight announced and Nathan, all right, Karen, thank you well. The SNP five hundred this morning is on track for its first weekly gain in nearly two months. The index rose two percent yesterday. It's biggest game there in ten days. Max Wasserman is

founder and senior portfolio manager at Miramark Capital. I'm optimists sticking a long term. It doesn't mean you could get it more downside, and we could see another five to seven percent on the downside, but we think we're through the majority of the problem. And it's been a bad market. I mean, the nazeck was down and the SMP was close to down twenty. It could still go further, but we're not We're not bailing on this market. My mere

Mark Capitals. Max Watsman made those comments on Bloomberg Business Week. You can catch the program weekdays from two to five pm Wall Street Time right here on Bloomberg Radio. Meantime, Nathan City Group is getting more bearish on stocks, and we get the details live from Bloomberg's redit a Young good Morning, Ready to good morning, Karen's City Group cut its recommendation on US stocks to neutral on the risk of a recession. Strategist there joining an increasing number of

banks and warning of a growth slow down. They stay with this high level of uncertainty and the lack of reassurance from the Federal Reserve. The market is showing elements of a deflating bubble, but opinion on US equities remains divided. Some Wall Street analysts are betting on a rebound. They believe that the odds of a recession are overstated. Live in New York, I'm Reneda Young, Bloomberg Daybreak, Renina, thank you. A solid retail elearnings help sentiment yesterday. Today, retail results

are not helping. GAP shares are down sixteen percent after that company's first quarter profit missed estimates. We get that story from Bloomberg's Charlie Pellet. It shows that operational missteps and higher costs are hurting the apparel retailer. The company, which also owns the Banana Republic and Old Navy brands, posted a loss of forty four cents of share in

the quater ending April, below analysts average estimates. Foliar earnings are now seen at between forty and seventy cents a share, well below the dollar eighty five to two oh five range previously provided In New York. Charlie Pellet, Bloomberg day Break, A right, Charlie, thank you. All US futures are still higher despite those results from Gap, and sentiment was also strong overnight in Asia after solid earnings from Chinese tech companies.

We get the recap from Bloomberg's LEAs Sally and Singapore. Good morning, Juliet, Good morning Karen. The Regional Benchmark Index posted its best gain in a week, rising for the first time in four sessions to set itself up for a second weekly advance. Ali Baba and Baidu Shares rallied in Hong Kong, lifting the Hang San Tech Index after

both beat sales forecast. Japanese equities also rose as the nation announced it would reopen to select tours on package tools from June ten, and Australian retailers recorded a fourth consecutive months of sales gains, highlighting underlying momentum in the economy and a degree of resilience among consumers. In Singapore Juliet Sally Bloomberg, debreak Okay, Juliet, thank you. In Shanghai, we're seeing more signs of the extreme steps being taken

to keep factories running during a COVID lockdown. Workers at an Apple supplier, Quanta Computer, have started revolting against their bosses after they were locked down in their factory for almost two months. They've been fighting with guards and rushing past isolation barriers in search of daily necessities. The current system forces workers to live and sleep on factory sites, and now Nathan China is coming under even more pressure

from the White House. As Bloomberg said, Baunster reports, Secretary of State Anthony B. Lincoln is vowing to influence China's behavior by shaping the world around Beijing. B Lincoln says this is a charged moment for the globe and says, well, he would like to work with China. Beijing cannot be trust as stand ready to increase our direct communication with Beijing across a full range of issues, and we hope that that can happen, but we cannot rely on Beijing

to change its trajectory. Blincoln says, alliances like the Quad this. At the same time, the US and Taiwan have announced plans to enter into economic talks enhancing economic cooperation and supply chain resiliency. Ian San Francisco, I'm at Baxter Bloomberg daybreak, All right, ed, thank you. Meantime, the war in Ukraine rages on, and now the US is rejecting a food for sanctions relief plan floated by Russian President Vladimir Putin.

The proposal would facilitate fertilizer and grain exports, but only if sanctions on Russia are lifted. The US says, the Kremlin's blocking the shipments and stoking concerns of a global food shortage, and we turn Closer to home Now Nathan with the latest on the school shooting in Yuvaldi, Texas. The National Rifle Association is holding its annual convention in Houston today, but Texas Governor Greg Abbott won't be there. The Dallas Morning News says he's drawn plans to address

the event in person to give a prerecorded speech instead. Meantime, Senate Democrats say there's room for compromise on gun control legislation. We spoke with Maryland Democrat Ben Kurten. What I'd like to see don is certainly closed. The loopholes in the background check red flags are consistent with that. We need to deal with the military style UH and high capacity UH magazines that are out there that are the weapon

choice for those who want to commit mass murders. Senator Ben Carter of Maryland spoke with our Washington correspondent Joe Matthew on Bloomberg Sound on Catch the show weekdays at five pm Eastern on Bloomberg Radio, And in the interest of transparent see we should note that Michael Bloomberg, the founder and majority owner of Bloomberg Help, the parent of Bloomberg Radio, is a donor to groups that support gun control.

All right, Karen, right now, S and P futures are up seven point Stout futures up twelve, Nastack futures up thirty five. Straight ahead, your latest local headlines and the check of sports. This is Bloomberg. It's now five oh seven on Wall Street. We're sixty four degrees in Central Park dealing with major problems on routes seventy eight this morning. We'll get to the details on that traffic shortly. First, Michael Bars here with more on what's going on in

New York and around the world on this Friday morning. Michael, Good morning, Nathan, and if you're traveling this Memorial Day weekend, get ready for busy airports and roads. Despite the rising costs of gas and airfare. The Triple As has more than thirty nine million people will travel fifty miles or more during the holiday weekend. Triple A spokesman Andrew Gross says the majority of them will be hitting the roads

despite these record I guess line crisis. We are expecting, based on what we're seeing Memorial Day, that it's going to be a variable bust travel period for summer. People just want to get out and go A gallon of regular now tops four dollars in all fifty states. New York City will bid to host the Democratic National Convention in Madison Square Garden in four. Mayor Eric Adams says this is a team New York moment. This is not about Democratic Republican It's about how do we bring resources

to our city. The last time New York City hosts at the Democratic Convention was when former President Bill Clinton was nominated. Federal health officials say there are now nine presumptive cases of monkeypox in the US, including one in New York City. The city's Department of Health and Mental Hygiene said that officials will be treating this as a probable case and will continue its contact tracing efforts globally. The WHO says it has confirmed about two monkeypox cases.

The WHOS Dr Maria van Kirkhov is addressing misinformation about the spread of the virus. She notes that it can be spread through sexual contact, but it is not an STD and although it is not a new virus, it's now popping up in countries where it doesn't usually spread. We are asking countries to expand surveillance so that we are looking for cases of monkey pops um cases of rash um, particularly in people who present at sexual health

clinics or emergency departments. Dr Maria van Kirkhov answered questions on the whose Facebook page. At California Parole Panel has recommended the release of Charles Manson follower Patricia Krenwinkle she rolled Helter Skelter on a Wall to using the blood of one of their victims, including actor Sharon Tate. In nineteen sixty nine, Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts and more than

a hundred twenty countries. Michael bar this is Bloomberg, Nathan, Michael, thank you almost five ten on Wall straight time for the Bloomberg Sports up dat. Here Scott Seideberg, Banks, Nathan Nesty, Nestor lives up to his name. Nestor Cortes through eight innings of one run balls, the Yankees beat the race seven too. At the Trump Courts has allowed just four hits, retiring fourteen straight. At one point here was Aaron Boone.

I think how efficient he got, you know, I had to work a little bit in a first inning, and then he just dialed in from from a command standpoint and kind of cruise there, uh for much of the game. Um, but I thought he was really sharp. Prior to the game, the Yankees signing former Cardinals All star Mett Carpenter. He went over two with the walk as the designated hitter. The Mets were off last night. They begin to set

with the Phillies tonight at City Field. The Rangers are on the brink of elimination after falling to Carolina three one last night. Game six at the Garden tomorrow or nights elsewhere. The Oilers onto the Western Conference Finals after beating the Flames five four in overtime. NBA allowed flight. The Warriors beat the Mavericks to earn a trip back to the NBA Finals for the sixth time in the last eight seasons. Tonight, the Celtics look to close out

the heat in the Eastern Conference Finals. Tennis at the French Open, make it thirty straight for Egles the Optic, The world's number one, defeated Allison Risk to extend the longest winning streak in women's tennis in Serena won thirty four matches in a row back in twenty I'm Scott Edinburg with Bloomberg Sports. Nathan all Right, Scott, Thanks, Let's take a look at this market this morning. We have futures moving higher, with the SMP points for its first

weekly gain in what seven weeks now. SMP futures right now up almost seven points. DAL futures up six. Dance Deck futures are higher by thirty three points. The tenure treasury right now is down to thirty seconds, with the yield two point seven five percent yield on the two year two point four seven Nimex cruds up to three tenths of percent, or thirty two cents at a hundred fourteen dollars forty one cents to barrel. And it's afternoon,

a high near eighty degrees. More storms possible tomorrow with a high near eighty upper seventies, sunshine Sunday right now sixty four degrees. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Tape. He's a Bloomberg Business Flash, and I'm far at Moscow and European shares are higher. U S Dock indise futures are rising as well. They're all following Asian shares higher, heading for the best weekly

advanced since mid March. It's scorning to European stocks anyway. The dollar is dropping. We checked the markets every fifteen minutes throughout the trading day. On bloomberg S and P Future is up seven points this morning. Down Future is up nine and nasday Future is up thirty two. The decks in Germany is up half percent ten. Your treasury down one thirty second. You have two point seven five percent. They yield on the two year two point four six

percent now. iMX scret oil is up six tents percent or sixty eight cents at a hundred fourteen dollar seventy seven cents of barrel. Comic School is up half percent or eight dollars ninety cents in eighteen sixty two eighty announce the euro one point oh seven to eight against the dollar, British pound one point to six one three and again one twenty seven point oh three Bitcoin this morning moving lower, down one point seven percent at twenty

eight thousand, nine hundred dollars. Today we are watching for reports on personal income and spending out at eight thirty Wall Street time, along with wholesale inventories and consumer sentiment is out at ten. That's a Bloomberg business Flash. Now here's Michael Barr with more on what's going on around

the world. Muchael, Good morning, Good morning Karen. Texas Governor Greg Abbott reportedly dropped plans to address the National Rifle Association's annual meeting in person just days after the school shooting in Uvaldi that left twenty one people dead. According to the Dallas Morning News, Abbots scheduled to speak of the n A gathering in Houston starting today. The US rejected a plan by Russian President of Vladimir Putin to facilitate grain and fertilizer exports only if sanctions on his

country are lifted. The US pins the blame on the Kremlin for blocking shipments and stoking concerns of global food shortages. In the NHL Playoffs, the Rangers are on the brink of elimination. New York lost to the Hurricanes three one in Game five. In the NBA Playoffs, the Warriors are in the finals. They won the West, beating the Mavericks.

Global News twenty four hours a day on here and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barron, this is Bloomberg, Nathan. All right, Michael, thanks for coming up to five twenty on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. Let's turn out to another major story, a potential new

challenge to China coming from the United States. Sources tell Bloomberg News the Biden administration and is planning economic talks with Taiwan. That's after the island was left out of the thirteen nation framework that President Biden announced in Tokyo earlier this week. From all of this, we're joined live from Hong Kong by Bloomberg Is Chief Asia Economics correspondent and the Current and they're good to have you with us this morning. What do we know about these talks?

What do we expect them to entail? These folks are meant to be announced overcoming weeks, Nathan. The center of them seems to be all about working on areas such as trade facilitation and supply chains, improving trade in the agricultural products products under like. Some of those areas are quite similar to the pillars in that new Indo Pacific Economic Framework that you mentioned that was announced this week

by President Biden in Tokyo. The framework, of course doesn't yet include Taiwan, so it might be part of the process of inching Taiwan closure towards involvement in that Nonetheless, though it's suggesting closer economic relations between YUST and Taiwan. But the details we have so far for our colleagues, Jenny learn out, the DC doesn't yet suggest it's getting

towards a you know, an outright free trade deal per se. Well, that is something that Taiwan has been pressing for for some time, a free trade agreement with the United States. Have we gotten any reaction from China to this report? How would China likely react to this? Well, look, I think the Chinese response is all is consistent and fairly predictable. Predictable when it comes to this, when Nathan, they will all us pushed back against what they considered to be

interference in its own affairs. We can serve We certainly know that in the past, for example, when the US has commed it on Taiwan, it has been met with a fairly fairly steering rebuke from the Chinese side. But nonetheless the U S I just seemed to be keen to push for close relations with Taiwan, but at the same time in sexual state such as say Lincoln's speech yesterday, as you know, he did mention the fact that overall US policy for the Taiwan hasn't changed. They don't support

time and He's independence for example. So clearly the US is willing to push the boats to a certain extent in terms of US Taiwan economic relations. But you know, despite President Biden's comments, as they're also making it clear that the overall US Taiwan framework hasn't changed. Does China agree with that that the U s policy regarding Taiwan has not changed. Well, they're always quite you know, kind of aggressive in their response names and they're always quite

embrasive when there's any commentry on Taiwan. They you know, they want to make sure, they want to make clear of the red line for China from their perspective of course.

Um So that's why I think we've seen such a ratcheting up of tensions between China and the US in recent years in the rush of rhetoric, because even when basic policy stabents are really iterated again, they're met by a volley of you know, rebuttaled by by either side, especially quite barbed on on the Chinese side of when it comes to the course the whole role of Wolf Wolf, the films in the like. But I think when you take it all together, though, you see the U S

engine towards closer economical relations with Taiwan. You look at that overall speech wide secutives, say b Lincoln yesterday outlining the you know, in very blunt terms, just where US China relations are. I think it goes to show you that it's both both sides and are in a very competitive state at the very least, if not edging towards something even more serious. And then does this have implications

and for the US China trade relationship. Of course, we're in the middle of a Phase one trade deal with China, and President Biden is considering making moves on the tariffs that have been imposed on China. As we deal with this you know, four decade high inflation that we're dealing with in the United States right now, it's a big question.

I mean, both Treasure Checktory Ellen and of course other U S officials have made the point that they might consider they are considering bringing down TOWERFFS in certain Chinese goods, but that would probably be about trying to alleviate the US inflation more than resetting on the US relations. I mean, that would not be a game changer for the Chinese

side either. They might welcome it on the margins. But when you consider that the US is also report to be reported to be considering sanctions, ongoing sanctions, sanctions against key Chinese companies for example, When of course you consider that you know, the US pushing for closure economic relations with time one, none of it suggests that any kind of easy enough turf story will be will trigger a

reset in works on the U S relations. Right And you know, even though sector said Lincoln did say in his speech, center is room for corporational areas such as climate change in North Korea, and they like I think, the trajectory of US generations, or at least when it comes to competition between both, is set and that's not expected to change any time soon. Always going to have you with US. Sender, thanks for this and the current chief Asia economics correspondent for Bloomberg News. Right now it

would be future is up, seven points down. Future is up eighteen nansect future is highed by thirty seven points and the tenure treasury down one thirty second the yield two point seven. This is Bloomberg Bloomberg eleven three oh Weather. Showers and storms possible this afternoon and tomorrow afternoon as well, with highs in the upper seventies both days. Sunshine returns Sunday with a high near eighty Right now sixty four in Central Park. Broadcasting live from the Bloomberg Interactive Broker

Studio in New York. Bloomberg e Living Free to Washington, d C. Bloomberg to Boston, Bloomberg one six one does San Francisco, Bloomberg nine sixty to the Country, Sirius XM to the one ninete and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street, corning up Nathan Hagar and I'm Karen Moscow and we're just about four hours

away from the open of US trading. Let's catch you up to date in the news you need to know at this hour US in next futures are rising as we close out a training week that has the s and P five hundred on track for its first weekly gain and two months. However, one Wall Street firm sees more pain ahead for investors, and we get the latest lie from Bloomberg's gonna need a young Good morning, Renny, Now, good morning. Karen's City Group cut its recommendation on US

stocks to neutral on the risk of a recession. Strategist there joining an increasing number of banks and warning of a growth slowdown. They say, with this high level of uncertainty and a lack of reassurance from the Federal Reserve, the market is showing elements of a deflating bubble. But opinion on US equities remains divided. Some Wall Street animalsts are betting on a rebound. They believe that the odds

of a recession are overstated. Live in New York. I'm gonna need a young Bloomberg day break, all right, Ready to thank you all. Retail earnings helped boost sentiment yesterday. This morning, it's a different story. Shares of Gap are down seventeen percent in early training. That retailer lowered its full year forecast after posting profit that missed estimates. Politics alls so and focus this morning. Nathan with the latest US challenged at China. The Biden administration in Taiwan are

announcing negotiations to increase economic ties. Talks would focus on enhancing economic cooperation and supply chain resiliency, but falls short of a free trade agreement. Beijing has were in Washington about its relationship with Taiwan and Karen. Texas Governor Greg Gabbott has dropped his plans to attend today's National Rifle

Association convention. The Dallas Morning News reports he'll give a pre recorded speech instead while he visits the school in Uvaldi where nineteen children and two adults were killed this week. Houston Mayor Sylvester Turner is rejecting calls to cancel the convention. We just don't have that luxury of that option, just to cancel a convention that has been on the books

for two years UH where we are contractually obligated. Houston Mayor Sylvester Turner says the n r A could delay the convention if it wanted to, but he doesn't think

it's gonna happen. In the interest of transparency, we should note that Michael Bloomberg, the founder and majority owner of Bloomberg LP, the parent of Bloomberg Great is a donor to groups that support gun control and futures this morning are on the rise, Nathan SNP Future is up ten points now Future is up thirty one nastagg futures up forty four. Ten year Treasury down one thirty second yield two point seven five percent, and they yield on the

two year two point four seven percent. Nine x Screwed oil is up six tents per cent or sixty six cents at a hundred fourteen dollars seventy five cents a barrel, and Bitcoin this morning lower down one and a half percent at twenty eight thousand and nine hundred dollars. Trying to hand your latest local headlines plus a check of sports. This is Bloomberg. Thanks Scared. It's five thirty three on

Wall Street. We're sixty five degrees in Central Park and dealing with a couple of big issues on Roots seventy eight. We'll get the details for you in traffic in just a few minutes. Michael barrs here first though, with Warre on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. In spite of high inflation and surgeon gas prices. Triple axpects millions of Americans

will travel this Memorial A weekend. Spokesman Andrew Gross says Triple A estimates thirty nine point two million people in the US will travel fifty miles or more from home during the holiday weekend. Of that percent are expected to go by car. We've never had a Memorial Day travel period where so many people are going to go in by car at the same time you have these high gas prices. Triple A spokesman Gross says, people just want

to get out and go. New York City will bid to host the Democratic National Convention at Madison Square Garden in four Mayor Eric Adams says this is a Team New York moment, not Democratic Republican. The last time New York City hosted the Democratic Convention was when former President Bill Clinton was nominated. Federal health officials say there are now nine confirmed cases of monkey pox in the US,

including one presumptive case in New York City. Globally, the WHO says it as confirmed about two hundred monkey pox cases. The WHO, Dr Maria Vankerhove, is addressing misinformation about the spread of the virus. This is not a sexually transmitted infection UM. We do know that monkey pocks does transmit primarily from physical contact skin to skin contact UM, and that includes sexual contact. Dr Maria Vankerhove answered questions on the whose Facebook page. Expect more baby formula to be

flown into the US to ease the shortage problem. The White House says more Operation Fly formulashipments should arrive, but did not disclose when that will be. Tributes continue to come in for actor ray Leota, who died yesterday. Director Martin Scorsese says he is shocked and devastated. Leota was in big movies including Good Fellas and Field of Dreams.

Ray Leota was sixty seven Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than hundred journalists and analysts and more than a hundred twenty countries. Michael Barr, this is Bloomberg, Nathan. Alright, Michael, thanks on Wall Street. Time for the Blomberg Sports Update with Scott Seidenberg. Good morning, Nathan. The Rangers are on the brink of elimination after falling to Carolina three one

last night. The Hurricanes dominated for the majority of the game, according to Gerard Glance, well, I didn't think we played a game at all. I thought we were reaching with sticks all night instead of finishing checks for the body like we did the other nights. Obviously to meet it was the worst game in the five games Finals series, Game six at the Garden Tomorrow night. Elsewhere, the Oilers onto the Western Conference Finals after beating the Flames five

four in overtime. Baseball Messer Cortez through eight innings of one run balls. The Yankees beat the Raise seven to two at the trop Prior to the game, the Yankees signing former Cardinals All star Matt Carpenter. He went over two with a walk as the designated hitter. The Mets were off last night. They begin to set with the Phillies tonight at City Field, NBA. Last night, the Warriors beat the Mavericks to earn a trip back to the

NBA Finals for the six time in the last eight seasons. Tonight, the Celtics looked close out the Heat in the Eastern Conference Finals. Tennis at the French Open, make it thirty straight for Ego Skiatec, The world's number one defeated Allison Risk to extend the longest winning streak in women's tennis since Serena won thirty four matches in a row back in twent thirteen. I'm Scott Siveinberg with Bloomberg Sports. Nathan Okay. Scott, thanks for coming up to five thirty seven on Wall

Street Time for the Tri State Business Report. Here's Bloomberg's dead cory. A big tax break for developers is likely to go away. The subsidy, known as four one A, has been using about every big residential project over its fifty one year history. The Time says New York State lawmakers are unlikely to renew it. Critics say it has amounted to a tax giveaway for developers. Officials have revealed

and alleged retail theft operation. They say it involved an elaborate scheme to shop lived luxury goods from Bloomingdale's Sofa and other New York City retail outlets and resell them on Amazon and eBay. Charges have been brought against forty one people. You have to wait a little longer for a revival in the theme park segment of the junk municipal bond market. The owner of the Showboat Hotel in Atlantic City is taking out a conventional loan to build

a water park there. The park was supposed to be financed originally with an unrated nine million dollar revenue bomb and you, Bloomberg try State Business Report. I'm ind Corey. Thanks Ed. We're coming up to five thirty eight on Wall Street. Now. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. 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 Polaskan Chen Chen Wins in New York. We're talking about a bounce in PC demand as more people head back to the office. On ktr H in Houston, oil is heading for a fifth weekly gain ahead of the summer driving season. I'm Genus are ready in for douw D. I'm in Chicago. I'm reporting that early total show McDonald's investors have voted in favor of a proposal calling for an independent civil rights audit.

I'm Stephen Carol on Bloomberg d AB Digital Radio in London. We've been reporting on reaction to the government's announcing a windfall attacks on oil and gas companies to help fund disbanding package b piece as it's now reviewing its investments in Britain. I d gory on w w J and Dedroid. I'm reporting dog House Farm has received the city's first recreational adult use cannabis flights. And those are just some of the stories are twenty seven Bloomberg journalist 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. Cryptocurrencies are the opposite of a prudent investment. Their ballatle have little practical use and lack the real world cash flows that underpinned the values of stocks and bonds. Nevertheless, financial institutions are increasingly seeking to get crypto into employers sponsored for our one K plans. It's a misguidded idea.

Americans have a hard enough time navigating the retirement saving system without adding a risky option that even professional investors struggle to understand and risky. It is the most established cryptocurrency, Bitcoin is down more than fift since November. Other cryptocurrencies have even less promising track records. People should be free to invest the money as they please, but not in

their tax advantage retirement accounts. And while crypto may someday proved to be more than a purely speculative instrument, it's nowhere in near that point now. This editorial was written by the Bloomberg Opinion Editorial Board. I'm David Chipley. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or op and go on the Bloomberg Terminal. These has been Bloomberg opinion and you can hear Bloomberg opinion editorials every weekday. At this time, terminal customers can read

more at O P I N GO. As we look at futures on the rise with the SMP poise for its first weekly gain at about eight weeks, we have SMP futures up now by eleven points, STOUT futures up thirty six, NASTACK futures higher by fifty four points. We'll get perspective on this market next with Ivy Jack, head of equity research at north Start Asset Management. You're listening to Bloomberg day Break. Good morning, but we're eleven three oh weather. Some showers and storms possible this afternoon with

highs in the upper seventies. Pretty much the same forecast tomorrow. We're expecting sunshine to prevail though on Sunday, with a high near eighty degrees. Right now sixty five and funky in Central Park 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 Flash

and I'm Karen. Moscow and stalks are rattying as dip buyers return, with European shares heading for the best weekly advanced since mid Marrow to oil is rising, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg s and P futures up twelve points this morning. Down futures have forty five NASTAC futures have fifty two The decks in Germany's up about seven tenths of u percent ten Your Treasury down one thirty second deal two

point seven five percent. They yield on the two year two point four six percent. Nine X Screwed oil is up six ten percent, or sixty six cents at a hundred fourteen dollars seventy five cents of barrel comics gold is up half percent or nine dollars at eighteen sixty two ninety announce the Euro one point oh seven to three against the dollar, British pound one point to six, and the en one twenty seven point oh five, and Bitcoin this morning down one point six percent at twenty

eight thousand, nine hundred fifty dollars. As a Bloomberg Business flash. Now here's Michael Barr with more on what's going on around the world. Michael, thank you very much. Tern Texas Governor Greg Abbott will no longer appear in person at the n r A convention that begins today in Houston. Instead, Abbott says, you will return to Yuvaldi, Texas to meet with families and acted by this week's school shooting. In the NHL playoffs, the Rangers are on the brink of elimination.

New York lost to the Hurricanes three one in Game five. In the NBA Playoffs, the Warriors are in the finals. They won the West beating a maverage. In baseball, the Yankees beat the Ray seven to New York, and Tampa Bay dedicated their Twitter feeds last night's posting gunawareness messages

rather than baseball stats. The Red Sox and Nationals won the a's Lost Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven hundred journalists and analysts in more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg, Nathan. Okay, Michael, thanks for coming up to five forty nine on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and Ivy Jack is with us now to

take a look at this market. Head of Equity Research at north Star Asset Management. Futures on the rise this morning. Ivy looking at two S and P futures near ob session high in the pre market, with US stock set to snap a seven week losing streak. Here is this a dip you'd buy? Um? Well, first of all, thank you for having me, Nathan, I would say, no, this is not a dip. I would buy. Um. I think there's gonna be a lot more pressure to come. There's still so much that we do not know, um, particularly

as it relates to the fallout from the Ukrainian War. Yes, we just got first quarter earnings and it was clear, Um, you know, I would say, earnings came out better than I had anticipated, and I think it reflects to some extent the fact that we haven't seen the full brunt in terms of the fallout of the war in Ukraine, the impact that it's going to have on the cost of fossil fuel and energy, and how that's going to

trickle out through the rest of our economy. So right now, I'm still expecting another five percent down in the market in the SMP five hundred, So I would hold off given that we have that potential for uncertainty with the Ukraine war. Is the FED doing enough here? Is there more that the FED can do to tackle that kind of inflationary pressure coming from the war? I think the

FED is doing what it can do. UM. The Fed, you know, if we step back and think about it, the FED is very limited in the tools that they have, and so I think the FED will continue to you know, raise um the discount rate fifty basis points a couple more times. And I think that's prudent because you've got to realize, even though it's the FED for the United States, UH, the moves that the FED make impacts the entire global economy.

So it's very important for them to stay um kind of predictable and to continue to signal what they're going to do and be consistent about what they do, so you know, not to make any quick change is or UM any additional hikes until they can start to see kind of how this all is going to fall out. So I think the Fed is doing what they can

do right now given the tools that they have. What should they be looking at in terms of economic data, in terms of what happens with the war Ukraine when it comes to being a bit more nimble uh in their policy path. Well, I think one of the things that they're going to probably continue to look at is the health of the consumer and the job market. UM. There's no doubt that jobs continue to be strong, consumer

continues to be healthy. You know, we haven't started seeing like an increase in delinquencies, so right now the consumer is healthy UM and in terms of jobs and employment, things look very good. So if you're the FIT, they're probably going to continue to monitor all of these metrics, UM, and that's that that's really I think UM going to be very important, particularly over the next couple of months.

Do you expect the consumer to continue to remain healthy. Obviously, the market was buoyed somewhat this week by the retail data we got and from from some of the retail earnings. Notwithstanding the Gap results that came out yesterday, and we're seeing the shares getting pumbled there. But what's your outlook on the US consumer? I think the US consumer for the rest of the year will probably stay fairly healthy.

I think what you're saying with retailers like the Gap and some of the other retailers is, look, we're seeing UM a move away from the purchase of goods and more focused on purchasing enough services. So this is something I think we should have, we should be expecting to see,

and I don't think that there's anything necessarily wrong with it. UM. It might not be good necessarily for the Gap and for maybe a Target or Walmart, but in terms of the U S consumer UM, I don't think that it necessarily tells us that the consumer UM is under pressure. But with that being said, as we go through the rest of the year, you've got to realize that we're cycling the stimulus, but jobs continue to be strong, so

therefore I think the consumer is still healthy. The consumer will probably remain healthy throughout the rest of the year, but that that doesn't mean that we shouldn't continue to pay close attention. Thanks for this, Ivy good having gone with us this morning. Ivy jack Had of Equity Research at north Star Asset Management Karry Nathan, it is fine to day three on Wall Street. It's time for the Bloomberg Law Report. We get to the legal stories we're

watching this morning from Bloomberg's Joan Donnegher. Republicans on the Senate Finance Committee want the I R s to start using scanning technology that would allow for faster processing of paper tax returns. Ernst and Young is looking at separating

its audit practice from the rest of its business. Such a move would be the largest shake up in accounting since Arthur Anderson's collapsed twenty years ago, and a Labor Department investigation finds fed x owes two d thirty five Birmingham, Alabama workers or than one one tho dollars in back pay because subcontractors didn't deep accurate records and paid workers a flat weekly rates. 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. Another legal story where watching law enforcement authorities are facing mounting questions and criticism over how much time elapsed before they stormed at Texas elementary school classroom and put a stop to the rampage by

a gunman who killed nineteen children and two teachers. And despite calls from President Joe Biden for common sense gun legislation, there is a partisan deadlock in Congress over how to addrest the rising number of deadly massacres in this country. For more, Bloomberg student Grosso speaks to Second Amendment law

expert Joseph Blocker, professor at Duke Law School, doesn't. Biden has called on Congress to end gun violence by passing common sense stun laws, but Republicans senators like Jim in Hope of Oklahoma say that no legislation could prevent these tragic mass shootings. Is federal legislation the answer. I think it's going to require of riot responses federal states and local I think there's some kinds of laws that are best known at the federal level. Expanded background checks would

be a good example. That's the easiest to administer using a national background check system, which relies on data that comes from the states. But at the state level, there's plenty of reforms as well, some of which have some bipartisan support, and it's become more popular even in the last five years. So the passage of extreme Risk Protection order laws often called thread slag laws, that's a good example.

Is more the twenty states have those now, almost all of them have been adopted in the last five years, so there's room there. At the local level, things are a little trickier because most states right more than forty states now have what are called preemption laws, which make

it hard for local governments to regulate. But in the states where local governments still have some regulatory space, they could, for example, designates certain places like bars or you know, busy public areas, stadiums, etcetera, as sensitive places where guns shouldn't be taken. They might impose licensing requirements on people carrying guns in the particular places, so kind of require I think a broad response with the federal state and club.

You know, we're waiting for this opinion from the court, and most people who listen to those oral arguments are anticipating that the court is going to strike down New York's law imposing special requirements to get a handgun license. What effect will that have? Yeah, I think the challengers in that case have reason to feel confident. I think that the New York law, at least in the current form, is probably going to be struck down. And what we're really waiting to hear is on what spaces like how

broad is the Supreme Court's ruling going to be. The challenge is to the New York's current system for issuing permits to publicly carry a concealed handgun. And the Court could just say, well, New York standard is too strict, or New York standard has too much discretion built into and that would be relatively limited holding. It will be

a big one. And the Court could go further and say, you know, permit requirements for public carrying our constitutional or they all have to be or called shall issue, meaning based on purely objective criterion um and those would be broader. And it shows if Blocker a professor at Duke Law

School speaking at the Bloomberg Student Garasso. Catch more of that interview, plus analysis of the latest legal news, by listening to The Bloomberg Law Show at ten pm Eastern time or subscribing to the Bloomberg Law podcast, and attorneys can find exceptional legal research and business development tools at Bloomberg law dot com. Futures higher this morning, S and P futures up about nineteen points and still ahead on Bloomberg Daybreak and check on the business headlines and all

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