Bloomberg Daybreak: May 27, 2022 - Hour 2 (Radio)

Memorial Day weekend. Plus the w h JOE confirmed nine cases of monkeypox in the U S. I'm Michael Barr. More ahead, Latice, got Edinburg, Yankees women, the Rangers face elimination. I'll have that more coming up in sports. That's all's training. Head 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 XAM

one nineteen and around the world. Old on Bloomberg Radio dot Com and via the Bloombird Business And good Morning. I'm Karen Moscow. I'm Nathan Hacker. Bloomberg Daybreak is brought to you by B and Y Melon, Pershing's inside conference back in person June fifteen through the seventeenth that the Gaylord Resort in Grapevine, Texas. Don't miss it. Register now at Insight dot b n y Melon dot com and US futures are higher this morning six o one on

Wall Street. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP Future is up seventeen points down Future is up sixty six Nasdack Future is up seventy five. The ten year Treasury little change yield two point seven four percent, and they yield on the two year two point four six percent. Nathan Karen, the SNP five hundreds on track for its first weekly gain in nearly two months. The index rose two percent yesterday

for its biggest gain in ten days. Max Wasserman is founder and senior portfolio manager at Merrimar Capital. I'm optimistic in 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 Majeck was down and the SNP was close to down twenty. It could still go further, but

we're not We're not bailing on this market. Mira Mark Capitals Max Wasserman made the comments on Bloomberg Business Week. Catch the program weekdays from two to five pm Wall Street Time on Bloomberg Radio. Meantime, Nathan's City Group is getting more bearish on stock. Shall we get the details life from Bloomberg's or any young? Good Morning, Rady Down, Good morning Karen. City Group cut its recommendation on US

stocks to neutral on the risk of a recession. Strategist there join an increasing number of banks and warning of a growth slow down. 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 analysts are betting on a rebound. They believe that the odds of a recession are overstated. Live in New York, I'm

renned a young Bloomberg day. We need to thanks. Solid retail earnings helped sentiment yesterday. Today, retail results are not helping gap shares are down nine after the company's first quarter profit missed estimates. We get the story from Bloomberg's Charlie Pellett. 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 quarter 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 pet Bloomberg Day Break, Ye Charley, thank you will US futures are still higher despite those results from Gap. Sentiment was also strong overnight in Asia after solid earning from Chinese tech companies. They get the recount from Bloomberg's Juliette Sally In Singapore. Good morning, Juliette,

Good morning Karen. The Regional Benchmark Index posted its miss gain in a week, rising for the first time in four sessions to set itself up for a second weekly advance. Alibama and Baidu Shares rallied in Hong Kong, lifting the

hang same Tech index after both beat sales forecast. Japanese equities also rose as the nation announced it would reopen to selectors 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, day break, All right, Juliet.

Thanks In Shanghai, we're seeing more signs of the extreme steps being taken to keep factories running during COVID lockdowns. Workers at an Apple supplier, Quanta Computer, have started to revolt against their bosses after being 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, Baxter reports Secretary of State Anthony Blankel is vowing to in

fluence China's behavior by shaping the world around Beijing. B Lincoln says this is a charged moment for the globe and says while he would like to work with China, Beijing cannot be trust as stand ready doing prestarted recommunication 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. B Lincoln says, alliances like

the Quad this. At the same time, the U, S 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 al right. At thanks meantime, the war in Ukraine rages on, and now the US is rejecting a food for sanctions relief plan by Russian President Vladimir Putin. The proposal would facilitate fertilizer and grain exports, but if sanctions on Russia are lifted, that's the condition,

US says. The Kremlin's blocking the shipments and stoking concerns of a global food shortage. Well, we turn out closer to home, Nathan, with the latest on the school rooting in Jivaldi, 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 dropped plans to address the event in person. He'll give a

prerecorded speech instead. Anytime, Senate Democrats say there's room for a compromise on gun control legislation, and we spoke with Maryland Democrat Ben Kurden. 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 magazines that are out there that are the weapon choice for those who

want to commit mass murders. Senator Ben Kurten in 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 transparency, we should note that Michael Bloomberg, the founder and majority owner of Bloomberg LP, the parent of Bloomberg Radio, is a donor

to groups that support gun control. And what more, note out of Washington this morning, Karen, the White House is scrambling to do something about record high gas prices this election year. Bloomberg News has learned the Biden administration has reached out to the oil industry about restarting closed refineries. The average price of a gallon of regular unletted stood at a record four dollars sixty cents as of Wednesday.

You're listening to Bloomberg Daybreak and it sounds six o seven on Wall Street where sixty five degrees in Central Park. I've got accident clean up on the westbound l I E at the b Que. The off ramp is closed. There more coming up in traffic. First Michael Barr with more on what else is going on in New York and around the world. Michael, thank you very much. Nathan.

If you're traveling this Memorial Day weekend, getting ready for busy airports and roads despite the rising costs of gas and airfare, The Triple A says 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

gasoline crisis. We are expecting, based on what we're seeing from Memorial Day, that it's going to be a very robust 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 at Madison Square Garden in four. Mayor Eric Adams says this is a team New York moment. This is not about Democrat or republic and it's about how do we bring resources to while

we're city. The last time New York City hosted the Democratic Convention was in and former President Bill Clinton was nominated. Federal health officials say there are now nine presumptive cases of monkey pots 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 w h L says it has confirmed about two hundred

monkey pox cases. The w HLS Dr Maria van Kerhof has addressed 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's not a new virus, it's now popping up in countries where it does not usually spread. We are asking countries to expand surveillance so that we are looking for cases of monkeypox um, cases of rash um, particularly in people who presents at

sexual health clinics or emergency departments. Dr Maria Vankerhove answered questions on the whose Facebook page. A California parole panel has recommended the release of Charles Manson follower Patricia Krenwinkle. She rolled helter skelter on a wall using the blood of one of her victims, including actor Sharon Tate. In nine Global News twenty four hours a day on air, rand on Bloomberg Quick Take powered by more than journalists

and analysts in more than a hundred twenty countries. Michael Barr, this is Bloomberg. Nathan all right, Michael, thank you very much. And it's almost six ten on Wall Street. Now time for the Bloomberg Sports Update. Here's Scott Seidenberg. Thanks Nathan Nesty. Nestor lives up to his name. Nestor Cortez through eight innings of one run balls, the Yankees beat the race seven two. At the Trump Cortez allowed just four hits, retiring fourteen straight. At one point, here was Aaron Booney.

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 a 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 flame Is five four in overtime. NBA last night, 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 thirties straight for Egos to the Optic. The world's number one defeated Allison Risk to extend the longest winning streak in women's tennis, and Serena won thirty four matches in a row back in ten. I'm Scott Edinburg with Bloomberg Sports. Nathan Scott, thanks for that. SMP Future is right now up eleven points. Staff Future is up thirty seven. NASTAC futures leading the games this morning.

They are higher by fifty three points, and the tenure Treasury right now is up to thirty seconds. Yield now just shy of two point seven four percent yield on the two year two point four five percent. Stay with us. A Bloomberg News exclusive coming up here on Bloomberg day Break, a one on one conversation with the Prime Minister of the UK Boris Johnson. That's X. You're listening to Bloomberg Daybreak Bloomber eleven three. Weather showers and storms developing this

afternoon with the high near eighty degrees. Afternoon showers possible tomorrow as well with the hind your eighty sunshine prevails Sunday right now at sixty five in Central Park 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 Karen Moscow and stocks are rallying as dip buyers return, with European shares heading for the best weekly advanced since mid March, and US stock index futures are also on the rise. SNP future is up about thirteen points this morning, Down Future is up thirty seven and nowesday futures of fifty six. The decks in Germany's up seven tenths percent, CAC in Paris up nine tenths per cent, and the foot Sea

one hundred is up at tenth of a percent. And we want to see what individual stocks are moving this morning with Bloomberg Radio and TV markets reporter Credy Goofta Market created Good morning, Good morning. Let's start with a retailer story. Gap of course, reporting GPS after the belt last night, down to guidance cut that was more than expected, prompting brokers to lower their targets and downgrade the stock.

Of course, that wall of warri we've been talking about for retailers hitting gap across the board, inflation, the margin story, inventory, supply chain, you name it. A similar story for cost go c O s T is your taker down one point eight percent, the margin story hitting them to freight

costs really in the spotlight there. We also have to talked about d D d I d I, the Chinese ride shailer up six and a half percent after the Bloomberg report that the state owned automaker China f a W Group is considering acquiring a significant state in the ride hailing company. Keep an eye on those shares, and of course we also have to keep an eye on

z Scaler. Z S is your ticker up three point six percent of security software company reporting third quarter results that beat x actations, coming off of strength in multi product deals. According to analyst Karen Alright, Critty Group Dot, thank you, and of course we'll be checking back in with you in about twenty minutes from now for an update.

Taking a look at treasuries, the ten year yield moving lower this morning at two point seven three percent right now, the yield on a two year two point four or

five percent. Nine night screwed oils lower down half percent, now down sixty cents at a hundred thirteen dollars fifty five cents of Barrel Comics gold is up half percent or eight dollars ninety cents at eighteen sixty two seventy an ounce the euro one point oh seven one one against the dollar, British pound one point to six oh six the end one seven point oh nine and watching bitcoin has always down what and a half percent at twenty nine thousand dollars, and that's a Bloomberg business flash.

Now here's Michael Barr with more on what's going on around the world. Michael, thank you very much, Karen. Texas Governor Greg Abbott reportedly dropped plans to address the National Rifle Association's annual meeting in person. The event, starting to day in Houston comes just days after the deadly school shooting in Uvalde. A week filled with goodbyes continues for families and friends of victims of the racist attack on a Buffalo supermarket. Funeral services set for today for three

of those killed. The US rejected a plan by Russian President Vladimir Putin to facilitate grain and fertilizer exports only if sanctions on his country are lifted. The US blames 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 in Game five in the NBA Playoffs. The Warriors are in the finals. They won the West, beating the Mavericks.

In baseball, the Yankees beat the Rays. New York and Tampa Bay dedicated their Twitter feeds last night posting gun awareness messages rather than baseball stats. The Red Sox Nationals won the A's Lost. 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 one h twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan. Okay, Michael, thank you. It is six one on Wall Street Live

from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak. Let's get more now on the war in Ukraine and the response from Europe. Boris Johnson wants even more military support for Ukraine as it continues to battle Russian forces. The UK Prime Minister sat down for an exclusive interview with Bloomberg Goose this morning. We spoke with him aboard a train as he travels today. Let's listen in to

part of that conversation right now. I think it's very, very important but we do not get into we do not get lulled because of the incredible roism of the Ukrainians in uh In, pushing the Russians back from the gates of Kien, because of the amazing valor of President Zelenski, we should not believe that this problem has gone away.

On the contrary, I'm afraid that Putin, at great cost to himself and to to to Russian mistry, he's can sinuing to chew through ground in don Bat, He's continuing to make gradual, slow but I'm afraid palpable progress, and therefore it is absolutely vital that we continue to support the Ukrainians military, and indeed, I think that they what they need now is the type of rocketry multiple launch rocketism l l r S that will enable them to

defend themselves against his very brutal Russian artillery. And that's where the world needs to needs to go down. Okay, final question, and this is about President Selinski. Years you've stood shoulder to shoulder with him. But there's certain calls around Europe, pat from France, from Germany to maybe settled with Putin. Try and trying what I would say to any to any such proponent of a deal with Putin?

How can you deal? How can you deal? And the crocodile when it's in the middle of meeting your left leg, you know what's what's the negotiation, and that is what Putin is doing, and any kind of he will try to freeze the conflict. He will try and call for a ceasefar while he remains in possession of substantial parts

of you. And I make that point to all my friends and colleagues in the in the G seven and at Nata, and by the way, everybody gets that once, once you go through the logic, you can see that it's very, very difficult to get a negotiated solution. We desperately need need it to end. We dobt the world needs it to end. But the one way that it can end is for Putin to accept that. Let us say that the d Nartification of Ukraine has taken place, and that he's able to withdraw with dignity and honor,

and that would be that's what needs to happen. I'm not saying I'm not saying that they're wearing any Nazis in Ukraine, but you know, I think one of the interesting things about the situation is the very strong support that Putin commands in Russia for what he anything that he says, well does I think he has the political margin of maneuver to make an end to this. And that was Boris Johnson speaking exclusively this morning with Bloomberg News.

We spoke with the UK Prime Minister as he's traveling today. Stay tuned for more from that conversation. Will have it for you throughout the day on Bloomberg Radio and Bloomberg Television. Looking ahead to the market open on this Friday, futures are higher. We have SMP futures right now up eleven points, Staff futures up thirty. Nastack futures are higher by fifty five points ten. Your treasury is up three thirty seconds. That yield now two point seven on the tenure note.

Yield on the two year two point four five. Nime X screwed lower at the moment, down four tenths percent at a hundred thirteen dollars fifty nine. Sense of barrel. You're listening to Bloomberg Daybreak, Bloomberg eleven three oh Weather mostly cloudy today, Showers and thunderstorms developing this afternoon with highs in the upper seventies. Afternoon showers and storms possible tomorrow as well, highs again in the upper seventies. Sunshine Sunday.

Right now six in Central Park, Broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg looking for you to Washington, d C. Bloomberg to Boston, Bloomberg one six one, to San Francisco, Bloomberg No. Sixt to the country Sirius XM Toto one nine team, and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This

is Bloomberg Daybreak at six thirty on Wall Street. Good morning, I'm Nathan Hagar and I'm Karen Moscow or just about three hours away from the open of US trading time for the five things you need to notice. Start your day brunch, you buy Interactive Broker Simple IBPR Global Trader app, deposit in your local currency, and trade stocks in the US, Europe and Asia. Start a free trial at ib k

R dot com slash Global Trader. Well at first. US futures are higher as we close out a trading week that has the S and P five hundred on track for its first weekly gain in two months. However, one Wall Street firm sees more paint a head for investors to get the latest line for a Bloomberg shre need a young good morning, Ready to good morning. Karen City Group cut its recommendation on US stocks to neutral on the risk of a recession. Strategist they're 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 analysts 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. Thank you. A retailer Arnings helped boost sentiment yesterday. This morning,

it's a much different story. Shares of Gap are down eighteen percent in early trading. The retailer lowered its full year forecast after posting profit that missed estimates. Well. Geo politics also and focus this morning, Nathan with the latest US challenged at China, the Boden administration and Taiwan are announcing negotiations to increase economic ties tooms would focus on enhancing economic cooperation and supply chain resiliency, but it falls

short of a free trade agreement. Beijing has warned Washington about its relationship with Taiwan. Van Karen, Texas Governor Grey Gabbott has dropped plans to attend today's National Rifle Association convention. The Dallas Morning News reports he's going to give her prerecorded speech instead while he visits the school in Vivaldi 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 where we are contractually obligated. Houston Mayor Sylvester Turner says the n r A could delay the convention if it wants, but he doesn't think that will happen.

In the interest of transparency, we should note that Michael Bloomberg, the founder and majority owner of Bloomberg LP, parent of Bloomberg Radio, is an owner two groups that support gun control and again futures are higher with this and P futures up eleven points this morning. Down futures have twenty eight and nastday futures have fifty seven ten year treasury of four thirty seconds two points seven three. And that's the five things you need to know to start your day.

Brought to you by Interactive Brokers, your local news straight Ahead. This is Bloomberg. Okay, Karen. Thanks At six thirty three on Wall Street, sixty five degrees in Central Park. We've got twenty minute delays for New Jersey transit in and out of the city. Details coming up in traffic. First, Michael Barr with war on what's going on in New York end around the world. Michael, thank you very much. Nathan.

In spite of high inflation and surging gas prices, Triple A expects millions of Americans will travel this Memorial Day 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

are expected to go by car. We've never had a Memoriality travel period where so many people are gonna go in by car at the same time you have these high gas prices triple A spokesman Grows says, people just want to get out and go. New York City will bid to host the Democratic National Convention and Madison Square Garden in Mayor Eric Adams says this is a Team New York moment, not a Democratic Republican The last time New York City hosted the Democratic Convention was in when

former President Bill Clinton was nominated. Federal health officials say there are now nine confirmed cases of monkey pots in the US, including one presumptive case in New York City. Globally, the w h L says it has confirmed about two hundred monkey box cases from more than two hundred or twenty countries. The w h Dr Maria van Korhoev is addressing misinformation about the spread of the virus. This is

not a sexually transmitted infection UM. We do know that monkeypox does transmit primarily from physical contact skin to skin contact UM, and that includes sexual contact. Dr Maria Vankerhov answered questions on the WHOSE Facebook page again the latest monkeypox cases for more than twenty countries. Expect more baby formula to be flown into the US. To ease the shortage problem. The White House says more Operation Fly formula shipments should arrive, but did not disclose when that will be.

Hours after FDA Commissioner Dr Robert Calef was grilled by senators about the response to the infant formula shortage, White House Press Secretary Karine Jean Pierre says President Biden still ask confidence in him for the job. Yes, yes, and yes um. So. The FDA has an important mission, right is to make sure that the infant formula on the

shelf isn't just available, also that it's safe. Right. Spokeswoman Jean Pierre says, our focus right now is getting more infant formulas applies to families across the country as quickly as possible. Global Nemes 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 Barron, this is Bloomberg, Nathan. Alright, Michael, thank you. Just about six thirty six on Wall Street.

Time for the Bloomberg Sports Update. Here's Scott Seedinberg. 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 which sticks all night instead of finishing checks with the body like we did the other nights. Obviously,

we to meet. It was the worst game in the five games so far and ensures Game six at the Garden tomorrow night. Elsewhere, the Oilers onto the Western Conference Finals after beating the Flames five four in overtime. Baseball Nest Cortez through eight innings of one run balls. The Yankees beat the Raised seven to two at the trop Prior to the game, the Yankees signing former Cardinals All star Mett Carpenter. He went over two with a walk as the designated hitter. The Mets were off last night.

They begin a 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 sixth time in the last eight seasons. Tonight, the Celtics look close out the Heats in the Eastern Conference Finals. Tennis at the French Open make it thirties straight for Ego Sattech.

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 ten I'm Scott s Edinburg with Bloomberg Sports, Nathan Alright, Scott, thanks six thirty seven on Wall Street and Bloomberg Radio and TV Markets Corresponding, Crety Gupta is back with us this morning for more of a look at some of the stocks moving in the pre market. Cretty, good morning. We mentioned

the drop in gap shares this morning on earnings. What else has your eye? Well, let's just take a beat and give maybe a little bit more attention to the gap, sure, because it's it's fascinating to me. GPS is your taker, folks down eighteen percent. We've been covering it all morning on Bloomber television and radio and this is important at least to me, and I'm sure it's the broader consumer

as well. But the wall of rory that we were seeing, inflation, supply chain issues, margin pressure, the COVID nineteen lockdowns, a slowing consumer, all of that is showing up in gap earnings. I think, to me, it's not just the guidance cut that was more than expected. That, of course is is tanking the stock this morning, but it's also this kind of nugget indulge me here, Nathan, This nugget here on

store closures, I think is so important. We haven't heard about store closures since I want to say, the pandemic Onslaught and Gap actually saying that they're going to close fifty Gap and Banana Republic stores but open forty Athleta and Old Navy stores for international audience. Athleta and Old Navy are kind of the uh, I don't want to say, cheaper but more but inexpensive relative to Gap in Banana Republic.

So it's interesting that they're making that diverges. They put a lot of weight in Old Navy lately anyway, had a little bit of an executive shake up as well. But the fact that they are kind of making that pivot and kind of therehaps pulling away from the Gap in Banana Republic in some ways, it's interesting. Compare that to what you saw from Macy's and Nordstrom, where they're saying, well, the wealthy consumers actually quite uh insulated from some of

these issues, so that was very important to me. GPS is your taker down eighteen percent. Thanks for indulging me on my little journey there with the gap. Okay, well, let's take a look at some I guess outside of the retail sector. What else you looking at? We got to talk abou d D D here Um, this is such an important story as we talked about Chinese A d

R S broadly. D I d I S your ticker up eight percent this morning Bloomberg reporting that the state owned automaker China f a W Group is considering acquiring a significant steak in the ride hailing company. This is important as we talk about how much kind of g for mint use there is a government stake there is for a lot of these Chinese companies, especially ones that have perhaps listings in the United States where perhaps will

be delisted. Indeed, if d D is a case study for some of those other Chinese tech companies, what's next is going to be the question. Nevertheless, d I d I is your ticker up eight percent, Nathan, I also want to stick to the tech story and talked about the z Scaler z S is your taker up four percent this morning. This is a security software company, makes a lot of cloud products. It also has a lot to do with cybersecurity. They report a third quarter results

that beat expectations. They raise their full year forecast. Member. This is coming in the wake of the war Ukraine is also coming post pandemic, where you have a lot of companies saying, Okay, now that we're in this new work from home structure, we have this new kind of era of technology, maybe we should really accelerate our switch to cloud anti cybersecurity. Nevertheless, z S seeing that on their balance sheet up four percent, created as always good

to have you on at the pre market. Bloomberg Radio on TV Markets corresponding create goop to keeping an eye on the names moving before the cash been looking ahead to that for stocks as a whole. Futures moving higher. We have SMP futures up eleven points, staff futures up, NASTAC features leading the gains up fifty eight points. That

is again of just about a half percent. You're listening to Bloomberg day Break on this Friday morning, Bloomberg eleven three oh Weather mostly cloudy today, Showers and thunderstorms possible this afternoon, with a high and near eighty degrees. More showers and storms possible tomorrow with a high near eighty sunshine Sunday right now sixty five degrees. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com,

Blo Bloomberg Business app and at Bloomberg Quick Tape. This is a Bloomberg Business lash and I'm Karen Moscow. Futures are higher this morning. We got to the first Word Breaking newsdesk for today's morning call, and here's Bill Maloney. Bill, good morning, and good morning, Karen. Modest gains in the US futures right now, with death futures up twenty eight point sesames game twelve one. That is that futures are

higher by fifty nine. The US ten year old at two point seven three percent, Gold is up nine, oil is down, and Bitcoin is trading lower by one point nine percent. Hong Kong rose two point nine percent overnight, while your p markets are posting modest games this morning.

And back in the US on the economic front, day dirty Hoste inventories and PC and it's ten o'clock Michigan sentiment after the bellas night, Costco EPs beat estimates and Dell revenue beat estimates in the auto space, Toyota cut its goal output plan for June again and four beat Tesla by delivering its first electric truck. Wrapping things up, CVS was cut to market perform at Bernstein, and Macy's

was raised to equate over at Morgan Stanley. Live from the First Breaking News desk, Bell Maloney Ker, all right, Bill, thank you to here live breaking news of your Bloomberg type squawk on your terminal, escue you a w K and that's a Bloomberg business flat show. Here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. Texas Governor Greg Abbott will no longer appear in person at the nr A convention that

begins today in Houston. Instead, Abbott says he'll return to Yuvaldi, Texas to meet with families impacted by this week's school shooting. Meanwhile, when it comes to gun laws, Senate Minority Leader Mitch McConnell is urging colleagues to find common ground, directing Texas Senator John Cornyn to work with Democrats. 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 one in the West, beating the Mavericks one one ten. In baseball, the Yankees beat the Ray seven to New York, and Tampa Bay dedicated their Twitter feeds last night posting gun awareness 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 Quicktake, powered by more than dred journalists and analysts more than a

hundred twenty countries. Him Michael Barrn, this is Bloomberg, Karen, all right, Michael, thank you At A sixty nine on Wall Street, and we turned to news and science and technology now. But the Bloomberg and j I T. Stemmer Board brought to you by New Jersey Institute of Technology, one of the nation's leading polytechnic universities in a top military friendly school. Learn more at n j I T, DOT E d U slash Veterans and now here's what's

making news and science, technology, engineering, and math. The White House has announced more steps to make the anti viral treatment packs LIVID more accessible across the US, as it projects COVID infections will continue to spread over the summer travel season. The nation's first federally backed Test to Treat site is opened in Rhode Island, providing patients with immediate access to the drug once they test positive. More federally supported sites are said to open in the coming weeks

in Massachusetts and New York City. Microsoft will slow hiring at its Windows Office and Teams Chat and conferencing software groups side you need to realign staffing priorities as it approaches a new fiscal year in a time of global economic uncertainty. A spokesperson said this lowdown is not company wide and overall, the software maker will continue to hire. And Ford has beaten Tesla to the punch. The automaker

has delivered its first F one fifty electric pickup. The owner is a Michigan man who had a deposit down on the Tesla cyber truck and considered buying a Rivian to electrifying. The F one fifty is a big deal for Ford. It's been America's best selling vehicle for four decades and as a Bloomberg n j I t STEM report.

Nathan all Right, Karen Thank you. We are live from the Bloomberg Interactive Broker Studios where it's almost six fifty one on Wall Street time now to check what's going on in d C. Some of the top stories in our nation's capital include Senate Democrats eyeing the potential for a compromise on gun safety after the Vivaldi shooting, the US planning economic talks with Taiwan, and the latest challenge to China, and the White House eyeing restarting idle refineries

to tame sky high fuel prices. It's getting brought in all these stories. Now we're joined by Bloomberg Government Congressional reporter Jack Fitzpatrick, who remains a busy man despite the fact that Congress is going off on recess. Jack, good morning. What is this potential for guns safety compromise given that

the Senate has started going out of town. Now, yeah, they have left town in a fit an official capacity, but some members may be staying in town or at least communicating with each other over the ten day recess. It seems that John Cornyn has sort of been deputized as the Republican in the Senate who will take the lead in these discussions. Uh, Chris Murphy has been very involved. A number of bipartisan senators though involved in these talks,

it's about something very limited in scope. We know that, Uh, there have been discussions on red flag laws, about instances in which law enforcement can take guns away from people based on criminal history or other red flags, as the name suggests. Unclear if this would be potentially a federal red flag law or if you listen to someone like Lindsey Graham, he has mentioned maybe incentivizing states to pass

those red law red flag laws. So it's nothing that would, you know, drastically reduce the four million guns in America. It's not something that gun control advocates would necessarily get excited about. But those conversations are happening to see what they realistically could get through the Senate with sixty votes, uh and and try to come up with a a sort of slimmed down compromise. Why do you see the

momentum for some kind of compromise moving forward in the Senate? Jack, We have an n r A convention happening today, just days after the shooting in Uvaldi, and it's in the same state of Texas where this is happening, and we know that President Biden is going to be visiting Uvaldi this weekend. US Obviously, just the gruesome nature of this shooting at least motivates people to take action, uh in some capacity. Again, the legislative outlook would be very very narrow,

but politically it's something that demands a response. So you see the President preparing to go to Uvaldi. Uh. You see Texas Governor Greg Abbott sort of partially pulling out of that n r A annual meeting. He's still supposed to do a virtual video discussion, but the report from the Dallas Morning News with it was that he was

not going to attend in person anymore. Uh. So it's it's a you know, it's a very partisan issue where at least at face value for the idea of Second Amendment rights, Republicans are not wholeheartedly backing down, but there there is motivation to do something. It's just that right now, at least in Congress, the discussion is about something very

limited that could actually get bipartisan support. And just for interance of transparency, we should note that Michael Bloomberg, foundered majority owner of the parent company of this operation, Bloomberg LP, does donate to groups that support gun control, including Every Town for Gun Safety. Let's turn out Jack to another

potential friction point. I think it's probably safe to say between the US and China now with this report from Bloomberg News that economic talks could be starting pretty soon between the US and Taiwan. Yes, uh, that obviously is done with an eye towards China. UH. These economic talks between the US and Taiwan would fall short of a free trade agreement. It's not something that uh that the White House would have to go to Congress to for approval.

It is sort of in line with the Indo Pacific Economic Framework that President Biden has announced and work with other Asian countries on. This is separate from that, at least in part because some of those other countries were concerned about the message it would send uh, sort of alienating China to involve Taiwan in this. The US clearly is not quite as concerned about about sort of negative

repercussions from China. UH. And it's part of a broader attempt to at least in some limited way through executive actions, UM, sort of align the US with Asian countries other than China more than what has done in the past. This would be a sort of supply chain resilience measures, trade measures that aren't quite up to the standard of a trade agreement that would guarantee market access. It would be much more limited than a true trade agreement, but still

a framework discussion with Taiwan. And finally, Jack, we're heading into Memorial Day weekend here, the unofficial start of summer driving season. It looks like the Biden administrations making a new move to try to tamp down these UH sky high gas prices we're dealing with right now. Yes, so the Biden administration is contacting people in the oil industry to discuss the parameters of what might happen regarding restarting

oil refineries that had closed down. It's not a formal request, but according to our colleague Ari Natter, who has reported on this UH, the National Economic Council has had people UH inquiring to the industry about what kind of factors led to refineries closing, what might help restart that and and increase the capacity for them to UH to do to refine oil. It's part of a bit of a patchwork approach by the President and Democrats to try to

have some sort of action regarding oil prices. It's been difficult. They've they've stalled a bit on a price gouging measure that was supposed to uh sort of focus on gas prices and other increasing prices. But it's at LEAs east to a sign of activity from the White House, as they know they have to be seen taking some sort of action and and and I guess hustling at least in some way on gas prices. Ye. I can't take a holiday with the average right around four sixty a

gallon according to Triple A as of Wednesday. Jack Fitzpatrick, Bloomberg Government. As always, thanks for this, and you can read more about all these stories at Bloomberg dot com or on the Bloomberg terminal. And a reminder, follow all the latest on Bloomberg Radio in Washington, d C. Tuned into Bloomberg one oh five point seven FM HD two. Futures moving higher on this Friday before the holiday weekend. Bloomberg Surveillance is next for Karen Moscow. I'm Nathan Haker, and this is Bloomberg