Bloomberg Daybreak: May 31, 2022 - Hour 2 (Radio)

the Oval Office. Today. People in Volde, Texas prepared to bury the dead from last week's shootings to plus, the Diocese of Brooklyn calls it a brazen crime of disrespect and hate. I'm Michael Barr. More Ahead, I'm trying Stashower and sports. The Rangers beat the Hurricanes in Game seven. They're moving on to the East Farmal's easy win for

the Mets. That's all's training. 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 and Francisco Sirius x M one nineteen and around the world Bloomberg Radio dot Com and via The Bloomberg Business And Good Morning. I'm Karen Moscow. I'm Nathan Hacker Bloomberg Daybreak is brought to you by B and Y Melon Pershanks Inside Conference Back in person June fifteen through the seventeenth

of the Gaylord Resorted grape Vine, Texas. Don't miss it. Register now at Inside dot b n Y Melon dot com. And US futures are lower this morning six o one on Wall Street. IM gonna check the markets every fifteen minutes throughout the trading day. On Bloomberg, Guess and P Future is down twenty eight points. DAL futures down two one and nasdack futures down forty three. The decks in Germany's down three quarters of a percent ten Your treasury

down thirty seconds yield two point eight one percent. They yield on the two year two point five three percent. Comics gold is down to tenths per cent or four dollars thirty cents at eighteen fifty three announced, and the euro one point oh seven to two against the dollar. Nathan Karen Oil is on the rise this morning, gets up three and a half percent for west Tech this intermediate after European Union leaders agreed to seek a ban on imports of most Russian oil. Let's get the details

of Bloomberg's human parts in our London bureau. Good morning, Good morning, Nathan Karen. Finally a deal on Russian oil. European Union leaders agree sanctions blocking the purchase of crude oil and petroleum products from Russia delivered by sea, but there is a temporary exemption for pipeline deliveries to satisfy Hungary, which have been holding up discussions. European Commission President Vondeline

welcome the agreement. Council should now be able to finalize a ban on almost of all Russian oil inputs by the end of the year. European Commission President Vondeline made the comments at a briefing in Brussels. In London, I'm you and parts spoon back day break, thank you, and thank you all. Back here in the US, the fallout from last week's school shooting continues to reverberate across the country.

There's another bush for a legislation on guns for President Biden says he is limited on what he can do. He traveled to Yevaldi, Texas for an emotional visit this weekend. Anymore, says Deep Eils from our Bloomberg One news room in Washington. I can't outlaw a weapon. I can't change a background check. President Biden explaining that there is only so much he can do to stop mass shootings in the US. Biden and First Lady Jill Biden visited the Texas elementary school

where a gunman killed nineteen children and two teachers. That shooting has increased demands on Congress to do something about gun regulation, and talks in the Senate now center on red flag laws. They allow police or family members to ask a court to temporarily remove the right to own firearms from someone who may be at risk. In Washington, I may be more as Bloomberg daybreak Amy thanks on Wall Street Today, Inflation continues to be a major focus

for markets. Treasury yields are climbing as the Federal Reserve shows no sign of slowing its hawkish stance. FED Governor Christopher Waller says he wants to keep raising interest rates and half percentage point steps until inflation is under control, support tightening policy by another fifty basis points or several meetings. In particular, I am not taking fifty base its point heights off the table until I see inflation coming down close to part FED Governor Christopher Waller spoke at an

event hosted by the Institute for Monetary and Financial Stability. Well, Nathan, inflation will be a key topic of discussion when President Biden holds a rare meeting today with each share of the Federal Reserve, and we get more from Bloombery's de Chrisner. It'll be the first meeting between the two since November, when the President nominated J. Powell for a second four year term. In the intervening period, soaring inflation has become

a crippling problem. In an opinion piece published late Monday in The Wall Street Journal, the President said he would support the Fed in its effort to combat high inflation by reducing demand. The President said the fight was likely to slow the rate of job growth from a monthly pace of five hundred thousand jobs to around a hundred

fifty thousand in New York. I'm Doug Christner, Bloomberg Daybreak. Okay, Doug, thanks for the labor market will be front and center as well this week when we get the May jobs report on Friday. Let's get a preview of that from Bloomberg'sviney del Judas. Economy is a payroll growth probably exceeded three hundred thousand and May. So far this year, the economy has added more than two million jobs, with labor shortages at record levels. Of slowdown could imply a shortage

of qualified workers rather than sudden weakness. Job cuts have been running it half century lows. Also in this week's US data calendar, I s M Factory data, the Conference Boards, consumer Confidence Index in the Federal Reserves, bag Book, Economic Survey, Benny del Judace, Bloomberg day Break. All right, Anny, thank you, But we're also getting key inflation data out of Europe showing Eurozone inflation accelerated to a fresh all time high.

Consumer prices jumped eight point one percent from a year earlier in May, exceeding the seven point eight percent median estimate in a Bloomberg survey. Acceleration was driven by food and energy after Russia's invasion of Ukraine sent commodity prices soaring. Oh back here in the US, Karen stocks are coming off their first winning week in nearly a month. As we returned to this holiday shortened trade week, we get

more on the days ahead from Bloomberg's Charlie Pellet. Analysts remain split on whether equities have found a bottom amid ongoing questions about the strength of corporate earnings. Alicia Levine's head of Equities and Capital Markets Advisory at Bank of New York, Melon, margins are going to come down. And what the market's really been grappling with the last couple of weeks is the E on the pe their earnings component, and it's likely that earnings have to soften from here.

Among the names scheduled to report this week, Broadcom, CrowdStrike, Hormel, Foods, HP and KO, Lulu, Lemon, and Salesforce dot Com in New York, Charlie Pellett Bloomberg day Break, A Right Turley, thank you will overseas this morning. Shares of Unilever or up about six percent. Activist investor Nelson Pellets has been appointed as a non executive director in the company, and his Try And Fund Management has taken a one and a half percent stake in Unilever. All right now and

futures are down thirty two points. That's a drop of eight ten percent that the moment. Dow futures down tutored forty seven. NASTAC futures are lower by fifty seven points. The tenure Treasury is down twenty thirty seconds yield two Nimex crude trading at a hundred nineteen dollars three cents. Apparel straight ahead, your latest local headlines and a check of sports. This is Bloomberg. It sounds six oh seven

on Wall Street, seventy four degrees in Central Park. We've got an accident in Queen's westbound l I E and wood Haven Boulevard. Details coming up in traffic. First Michael Barr with more on what's going on in New York at around the world. Michael, thank you very much. Nathan. Police say someone busted into the altar at a New York City church, stole a two million dollar gold relic, and removed the head of a statue of an angel.

The incident happened between Thursday and Saturday at St. Augustine's Roman Catholic Church in Brooklyn's Park Slope neighborhood. The church was closed for construction at the time. The church's pastors said that camera recorps things from the security system who are also stolen. The Diocese of Brooklyn called it a

brazen crime of disrespect and hate. New York Governor Kathy Hokell spoke at the commemoration of the twentie anniversary of the formal end of recovery operations at Ground zero on Memorial Day, HOCl referred to those who quote showed up unprompted to help the common denominator from Moses. They were New Yorkers, because it's in our d n A. When we get knocked down, we fight back and we come back, and we must never ever forget that lesson. That is

the story of this hallowed ground. Governor Hokell also says we're going to come back after this pandemic because we showed we did it twenty years ago. Funerals take place this week for the nineteen children and two teachers killed last week in Yuvaldi, Texas. The town's Manyor Don McLaughlin says the site of the shooting rob Elementary School should be torn down. Mcclocklin says, though people in the community

will get through it. That's one of the things I love about you about it is community will come together and we will come together on this. I mean, this is something that we will never get over, but we'll get through. Mayor McLaughlan says he supports the construction of a mental health hospital in Vivodi that would also serve dozens of nearby counties and possibly prevent future massacres. Canadian prem Minister Justin Trudeau announced an effort to ban handguns.

Canada already has an assault weapons band. In the news conference in Otowa, Trudeau said the legislation would prohibit the purchase, sale, transfer, or import of handguns across Canada. We've seen far too many tragedies across this country, far too many incidents of gun violence, particularly with handguns in our streets, in our communities, Devastating families, devastating communities. Trudeaux also announced mandatory by banks

for assault weapons. Global News twenty four hours a day on air and on Bloomberg Quittake, powered by more than twenty seven journalists and analysts and more than hundred twenty countries. Michael barrn this is Bloomberg, Nathan. All right, Michael, thanks come, that's a sixth tent on Wall Street. Time for the Bloomberg Sports Update with John Stshaw. All Right, Nathan, what a postseason the Rangers are having. It's hardly over, but already five winds when faced with elimination, two game seven

victories two Series one. Both well They never led the series until Game seven and Raleigh Hurricanes penalty in a Ranger league and seconds to go, the Rangers power play. Rakers go back in top right side feed for a year back past the flock scores out of Fox. It's a power play goal. Rangers LEADPN later in the first another power play goal Chris Crider deflection. Criders scored again in the third. The Rangers beat the Hurricane six to two.

Carolina had been seven and oh at home in the postseason. The Rangers are now coming home Game one of the East Final with two time defending Stanley Cup champion Tampa Bay tomorrow night at the Garden City Field. Washington scored three runs in the first sitting. The Mets scored the next twelve. All twelve scored over the first four innings. The Mets beat the Nats thirteen to five, Starling Martde and Nick Plummer, both with home runs and four RBI.

Detroit Tigers called up infielder Cody Clemens and the Miners. That's Roger's son. He's expected to make his major league debut tonight. A couple of fourth round upsets. The French opened the second and fourth seeds were ousted, Danil Medvedev beaten by Marin Chilett straight sets, and Medvedev as of now not allowed to play Wimbledon, who has banned all Russian stafinals. Sits Aposs also lost pig match today quarterfinals.

Raphael dalvers Is Novak Jokeovid Maryland captain undefeated season won the n C Double A lacrosse title, beating Cornell John Stash Award, Bloomberg Sports NAO Okay John, Thanks SMP Futures now down twenty seven point, Stout Futures down twurtter two, NASTAC futures down forty three points. Ni've x screwed up three point four percent of a hundred eighteen dollars ninety

five cents apparel. You're listening to Bloomberg Daybreak. Bloomberg Daybreak is brought to you by Hofstra University's Frank G's r School of Business, top ranked online NBA program with a real world foundation. Learn more at Hofstra dot e, d u slash Go grad 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 Cameron Moscow stocks in US stock index futures are dropping while bonds fall as euro Zone inflation accelerates to a fresh all time high, intensifying the debate at the European Central Bank about how rapidly to raise interest rates. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg SMP futures down twenty

six points down, futures down two two. Nowday future is down forty two the decks in Germany's down seven tenths of upper set ten year treasury down twenty thirty seconds, YELD two point eight one percent. They yield on the two year two point five three percent. NIMEX scrude oil is up three point three percent of three dollars seventy eight cents and a hundred eighteen dollars eighty five cents

a barrel. Comex school down a quarter percent or four dollars twenty cents at eighteen fifty three ten announced the euro one point oh seven to six against the dollar, British pound one point to six oh one the end one seven point nine zero, and Bitcoin is higher, up one point one percent at thirty one thou six hundred dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen,

thank you very much. Today will mark one week when nineteen children and two teachers were gunned down and rob elementary school in Uvaldi, Texas. The first of the funerals begins this week. The w h OS top monkey pox expert is skeptical the virus will become a global pandemic. W h shows Dr Rosamund Lewis says anyone can at potential risk, however, and that they're not exactly sure how

it's being spread. In the NHL Playoffs, the Rangers are heading to the Eastern Finals after beating the Hurricanes in Game seven, six two. In baseball, the Mets beat the Nationals thirteen five. The Orioles beat the Red Sox ten zip. The Giants won the A's Lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists and analysts more than

a hundred twenty countries. Michael Barren, this is Bloomberg. Nathan Okay, Michael, thanks at six nineteen on Wall Street Live from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak. Let's turn now to more on our top story this morning, the surge in oil after the European Union agreed to pursue a partial ban on Russian crewede imports. This Canada EU leaders summit in Brussels, where we are joined now live by Bloomberg's Maria. It's a dale Maria, good morning, Thanks

for being with us. How significant is this? What is the immediate impact? Look, I think it is more significant than than the surface of the agreement would lead you to believe. And that's the reaction that we're seeing in the market today when it comes to oil prices. When you look at what's in the agreements that was reached yesterday by European leaders, especially what they say is that they will do a ban of Russian oil that is transported by sea. There are some exemptions to pipeline oil,

but in reality, this is where it gets interesting. By cutting down seaborn, essentially you cut down two thirds of imports. If the big bias like Germany and also countries like Poland agree to wind down pipeline too, like they say they will do this year. Essentially, you're looking at a scenario in which potentially there could be a nine reduction of Russian oil exports into the European Union. So I

would argue this deal even though it was delayed. We talked a lot about the ins and outs and the political commotion that happens with every big summit where you have to agree and get to an agree meant among twenty seven different countries that have twenty seven different interests, I would say this is more significant than we were expecting just a day ago when the mood was very negative.

One of the major, UH significant holdouts here potentially could be Hungary, could I mean they've been pushing back pretty hard against the idea of a pipeline ban. I mean, what are the chances that we could see a pipeline ban eventually included in this agreement. Look, I think to me, the Hungarian resistance is a little bit overplayed. If I have to be honest with you, the Hungarian resistance, it's not about the impact on the market. This is a

very small faction on the market. This was about the politics of it the European Union when it comes to Russia and the way they tackle Russia. They always like to do things unanimously. They don't want to show cracks in the union. For them, that unanimity and that union is very very important. So yes, there are some concessions made to Hungary. They continue still to use a huge

pipeline that comes through from Russia. At presumably when we hear the full details, there will be some financial incentive to for them, and there's assurance that if something were to happen on the pipeline they would get a backup.

But overall, you know, frankly, this Hungarian resistance, I think by now it's a little bit overplayed and it's a little bit overdone because what really matters is that you're looking at a full band by sea that's two thirds, and if a big country like Germany says we're committing to kinning out pipelines, that has a much bigger impact on the market. Again, it goes back to my earlier point.

On the best case scenario, you could see a reduction of purchases for Russia, and this is a huge thing for the Russians, you know, it's a big buyer there. Essentially you're gonna lose and you have to find an alternative buyer who in this market. Of course, they're not stupid and they know Russian oil is tricky to manage,

so they ask for a discount. So while this is being phased in Maria, what's being done to backstop energy supply is for Europe as this as this gets faced in look, I think, to me, what's interesting more than what's being done. It's kind of what isn't being done going forward? To me, it's very tending. When I spoke to the Belgian Prime Minister uh this morning and I asked him that question. You've done cold, you've done oil. Are we open now to gas? Is that the next

frontier here? Remember this is always seen as the big Geo political weapon for Russia when it comes to the EU. And he told me quite candidly, quite frank, I don't think it's the time to go further, he told me, with this oil embargo, the full implications of it, the full significance, Let's just take time to digest what we've done and then we can look into anything else. But for the time being, he told me, we've kind of

reached the limits on the energy sanctions. We need to take a box all right, So about thirty seconds left here, Maria, what's the next step here? Is there going to be a vote on this deal? Where where does it go from here? I think tomorrow it's more the technical aspect bit and just the final print that gets done not by the politicians but by all of the many officials and figures, so we don't see take the lame light,

but they really work on the technic candory. So I think tomorrow it will be about the fine print, but overall, the overall arch of this is already agreed. All right, thanks as always for staying on top of all of this. As we've been watching this agreement on sanctions on Russian energy move forward in Brussels, Bloomberg's Maria Todale joining us live from the capital of the European Union. And as we look ahead to the market open here on Wall Street,

futures are pointing to losses. We have SMP futures right now down twenty eight points down, futures down two to three, Nastack futures are lower by forty nine points. The tenure treasury is down twenty thirty seconds with the yield two point two and just looking at oil right now, nimex screwed up three point three percent or three dollars seventy seven sets trying to get a hundred eighteen dollars eighty four cents on the IMAX. You're listening to Bloomberg Daybreak.

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Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg Living Free to Washington, d C. Bloomberg to Boston, Bloomberg one six one does San Francisco, Bloomberg Known sixteen to the country Sirius xm Chado one nine team, and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak at six thirty on Wall Street. Good Boarding. I'm Nathan Hagar and I'm Karen Moscow, and we're just about three hours away from the open

of US trading. Time for the five things that you need to know to start your day. Brought to you by Interactive Brokers, global analyst. It helps you find new global investment opportunities to diversify your portfolio and discover undervalued companies that may have greater growth potential. Try ib k R Global Analysts Today at ibk R dot com slash g A. Now, at first, you begin with the oil, which is on the rise. This morning it is up

three and a third percent. The game comes after European Union leaders agreed to seek a ban on imports of most Russian oil. Bloombarrus Maria Today OH has the latest from Brussels. When you look at the actual content, the Europeans say that on the best case scenario, if this deal is fully applied by the end of the year, of Russian oil exports coming into the European Union will essentially be shut off. Bloomers Maria Today O says EU leader has offered Hungary a guarantee that it will receive

replacement supplies if pipelines were disrupted. Hungary have been blocking an embargo and will continue receiving Russian oil via pipeline. In response to that jump, at wealcare and stocks in Asia fluctuated and treasuries sold off across the curve. Well Nathan here in the US, Federal Reserve Governor Christopher Waller says he wants to keep raising interest rates and half percentage point steps until inflation is under control. He also

believes reducing the Fed balance sheet could curb inflation. Athesis are highly in certain using a variety of mobs and assumptions. The O wall overall reduction in the balance sheet is estimated to be equivalent to a couple of twenty five basis radars, and Federal Reserve Governor Christopher Waller again cautioning

those estimates were uncertain. He's spoken an event hosted by the Institute for Monetary and Financial Stability also this morning, Careen Eurozone inflation accelerating to a fresh all time high. Consumer prices jumped eight point one percent from a year earlier in May that exceeded the seven point eight percent media estimate in a Bloomberg survey. Well Nathan, inflation will be a key topic of discussion when President Biden holds a rare meeting today with the chair of the Federal Reserve.

Fresh off a visit to Yevaldi, Texas, where a gunman killed nineteen children and two teachers last week. The President of the New calls for Congress to crackdown on gun violence. At Turning to Markets, Karen wall Street snapped a seven week losing street with Morgan Stanley Chief investment Officer Michael Wilson says the relief may be short lived. Wilson wrote in a recent note that last week will prove to be another bear market rally. He believes, with growth slowing,

earnings estimates are too high. And that's the five things you need to know to start your day. Brought to you by Interactive Brokers SMP Future is down twenty seven points. Straight ahead your latest local headlines, plus a check of sports. This is Bloomberg, Thanks Karen. Six Wall Street seventy five degrees in Central Park, still dealing with an accident on the westbound l I E of wood Haven Boulevards. Details

count up in traffic. First Michael Barr with more of what's going on in New York and around the world. Good morning Michael, Good morning Nathan. A brazen theft desecrated a Brooklyn church and irreplaceable part of an altar were stolen. Police say someone broken do St. Augustine's Roman Catholic Church and apparently used a power soul to steal the eighteen carrot gold tabernacle. Marble angel statues flanking the tabernacle were

decapitated and destroyed. Recordings from the church's security system were stolen, the Diocese of Brooklyn calling it a brazen crime of disrespect and hate. New York Governor Cathy Hoco honored the commemoration of the twentieth anniversary of the formal end of recovery operations at Ground Zero. Speaking a memorial Day, she says more names are added from nine eleven because people succumbed to the illnesses that they had no idea that they were exposed to. For two hundred and sixty days,

people showed up here exposed to toxins and contaminants. So the loss of lights that occurred on that day, we did not know it. Then Governor Hokel, speaking of the pandemic, says, I know we're going to come back after this, and we will come back even stronger than before, because we showed we did it twenty years ago. The residents of Vivaldi, Texas, will bury their dead this week. Last week, a gunman killed nineteen children and two teachers, victims of a shooting

rampage at the rob Elementary School. The town's mayor, Don McLaughlin says the school building should be raised. It needs to be torn down. I would never ask expect a child had to ever walk in those doors, ever and ever again. The building needs to be gone. Mayor McLaughlin says, though the community is strong and they will get through it. Canadian Prime Minister Justin Trudeau announced an effort to ban

handguns across the country. The legislation, if passed, prohibits the purchase, sale, transfer, and import of handguns in all provinces. Speaking in Ottawa, Trudeaux also announced mandatory buy backs for assault weapons. In the situations where someone chooses to keep that weapon, it needs to be permanently and irrevocably disabled by the government or by x to make sure that it could never again be used as a fire for a ministry, true dope.

It's now a tropical storm after Hurricane Agatha made landfall in Mexico and what's expected to be the strongest May storm to hit the Eastern Pacific. On the record, Global News twenty four hours a day on here and on Bloomberg quit take power by more than seven hundred journalists and analysts in more than a hundred twenty countries on Michael Barr, this is Bloomberg. Nathan all right, Michael, thank you, just about six thirty six on Wall Street, John stash

Hour as the Bloomberg Sports Update. Thanks Dathan. The Rangers have certainly not made things easy on themselves. Round one with Pittsburgh down three games no one, of course one three in a roundquinning games seven overtime. And then round two with Carolina down two games than none and then three two but another game seven win, and this one was easier. Adam Fox scorn of power play goal and later in the first another man advantage. I'm tough the board,

supremuck score Chris Kryder. What a defliction meebandage that shot pass Chris Kryd. It's all power play goalp and Krider would score again. Ryan Strong, Filipeo, Andrew copp All scorts advantage at at three, siss Igorsi, Surkin rock solid again and goal in. The Rangers beat the Hurricane six to two, and they will play Tampa Bay in the East Final Game one tomorrow at the Garden. The Mets in their history have never had this BIGG Division lead in the

month of May. They beat the Nationals in City Field thirteen to five. Peter Alonzo, Homer so dis Sterling, Markday and Nick Plumber the Hero. On Sunday he drove in four more than Mets ahead by nine and a half games in the NLS. Yankees said that first day off in three weeks they'll host the x met Noah Syndergarden the Angels Tonight French Open fourth round. Daniel Medvedev and Stefano sits at Fosta too and four seeds both lost.

American Jes Peluga is into the women's quarterfinals. Markets match today, Raphael the Dalla versus Novak Djokovic, n C double A lacrosse final un Maryland beat Cornell. Bloomberg Sports Okay, John, thanks at six thirty seven on Wall Street Time now to take a look at stock, some of the names moving in the pre market as we get ready for the final trading day of a very rough month of day. We are joined this morning by Bloomberg's Laura, Right, Laura,

We've got futures moving lower. What's scot your eye this morning? Well, I'm looking at crypto names this morning. Look bitcoing back above thirty thousands showing some signs of bottoming out, and last week we saw a decoupling between the SMP five hundred and bitcoin, although it's still unclear what quant state of tighting means for risk assets, Riot blockchain almost six percent, Marathon Digital seven percent, coin based four percent, all ahead of the open, and we're also seeing a pretty big

surge in crude prices as well. I see you're keeping an eye on Chinese A d R S is uh the commodities space having an impact on what's happening there. It is, but the news line is really d D Global virus cubs easing in China, so d D Global the right hailing firms sent a message to their customers in Shanghai, areas with low COVID cases can resume. Also Ali Barbara j D dot Com up four and a half percent and six point seven percent respectively in Shanghai.

Look public transport resumes on Wednesday, and Beijing are allowing some shopping centers to reopen even now. And we had a beat on data out of China earlier this morning, both manufacturing and non manufacturing p M, showing that the economy of the world's second largest country is contracting at a slower pace, and that implies maybe the worst of the economic fallout is over. How's that potentially affecting Tesla? Obviously they've been pretty well impacted by the shutdown in Shanghai.

Can I just say we are talking about Tesla without the Twitter deal. This it's a new world that we've we learned. Look Tasa, they're keeping their factory bubble isolation system in place until June the tenth. According to people familiar. That's even as Shanghai eases the virus curves. Now, the Shanghai plant apparently lost forty units of output in March because it was shut for three weeks. And it's significant because the Shanghai Tessa plant is the electrivehicle makers primary

production hub, overtaking the California plant last year. But that could lead to some revolt from employees. That's what we saw from an Apple supplier last week because they have to still live on site and test constantly. It's always lower. Right. Thanks for being with us as we keep an eye on what's happening in the pre market and looking at starts as a whole. As we get set for this

final open of the month of May. We have futures moving lower, with SMP futures right now down eighteen points, Dow futures down six, naz DEC futures down nineteen points, so pairing some of the earlier losses we've been seeing in this session. The tenure treasury right now down seconds, with the yield at two nim X crew trading at a hundred eighteen dollars ninety three cents a barrel. That's

a gain of three and the third percent. This is Bloomberg Bloomberg eleven three oh weather sunny and hot today with a higher ninety five degrees, will be back in the low seventies tomorrow. Is cloud to move in, giving us a chance for a shower. Could see a thundershower late Thursday with a high year eighty right now seventy five 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 Karen Moscow and futures are lower. This morning, we had the first word breaking news dash for today's morning call. Here's fill Maloney Bill morning and good morning Karen. That's right. US features are in the red right now, A death futures down a hundred and fifteen points as if you dropped fifteen well. Nastic futures are down by six.

The US ten year old at two point eight two percent, Gold is down five and oilist climbing as EU leaders agreed to pursue a partial ban on Russian crude. Bitcoin is trading higher by one point one percent and Shanghai rose one point two percent overnight, while UPM markets are mostly in the red This morning, back in the US on the economic front at nine five Chicago p m

I and at ten o'clock consumer confidence. In other news that one fifteen, Biden will hold a meeting with fed share Powell and you know, Leaver appointed activist investor Nelson Peltz as a non executive director. Wrapping things up, American Eagle was cut to underweight well Ratt Morton Stanley Live from the first breaking News deskm Bill Maloney care all right, Bill, thank you to hear live breaking news over your Bloomberg type squawk on your terminal ascue You a w K

and that's a Bloomberg business flash. Now here's Michael Barr with Mouram what's going on around the world, Karen, thank you very much. The first of twenty one funerals begins this week in Uvaldi, Texas, Texas officials saying Uvaldi Schools Police Chief Pete Aredondo wrongly believed that they were dealing with a beverricaded subject, not an active shooter. Uvaldi's mayor announced Eredondo's scheduled city council swarring in ceremony is canceled

for now as the city grieves. Under his new legislation, Canadian Preme Minister Justin Trudeaux wants to ban all sales and transfers of handguns in Canada. He also wants guns taken away from domestic violence and stalking suspects. In the NHL Playoffs, the Rangers are heading to the Eastern Finals after beating the Hurricanes in Game seven, six two. In baseball, the Mets beat the Nationals thirteen five orioles all over

the Red Sox ten zip. The Giants won the A's Lost Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts in more than twenty countries. I'm Michael Barr and this is Bloomberg. Karen. Al right, Michael,

thank you. Sixty nine on Wall Street. Returned to news and science and technology now at the Bloomberg n j I T. Stam report brought to you by New Jersey Institute of Technology, one of the nation's leading polytechnic universities in a top military friendly school. Learned more at n j I T dot edu, slash Veterans and now here's It's making news and Science, Technology, Engineering, and math. President Biden is set to meet with Fed share J. Powell

as storing inflation takes a might of Americans pocketbooks. Today's meeting will be the first since Biden renominated Powell to lead the Central Bank and comes weeks after his confirmation for a second term by the Senate. Some some live strains in the US are easing two years after a jump and demand started, emptying shelves, snarling shipping, and sewing

the seeds of storing inflation. The line of twenty five cargo ships headed to southern California's two big ports is less than a quarter of the record backup in January, and spot container rates have dropped almost this year. But for every sign that a cooling economy will give supply chain's room to rebalance. There's a reason for skepticism. On

the East Coast, ship bottlemeex are building again. The dwell time for containers is still climbing at rail yards near Chicago and Kansas City, and for the first time since early March, the number of daily coronavirus cases in China has dropped below a hundred. Still only Kron's contagiousness means that reprieve from infections and the tough COVID zero response

may only be temporary. Both Beijing and Shanghai have started to loosen restrictions on mobility, and as a Bloomberg and j I. T Stem report Nathan Okay Karen We are live from the Bloomberg Interactive Brokers studios, where it's nearly six fifty one on Wall Street, typed out of check what's going on in d C, where some of the top stories include President Biden expressing futility when it comes to guns after an emotional trip to Vivaldi, President to

meet with that Chair J. Powell later this afternoon, and former Trump A Peter Navarro subpoened over January six. Let's get more on all these stories now Joe Matthews back with us Are Washington Correspondent, host of Bloomberg Sound On Here on Bloomberg Radio. Joe interesting to hear Michael Barr point out the moves that are being made in Canada by Prime Minister Justin Trudeau to freeze handgun sales and buy back assault style weapons, powers that President Biden admittedly

says he just does not have. Well, that's true when we're reminded frequently, even though you know, part of being the president is taking credit for things you may not deserve and taking the blame for things you may not deserve. That's just not always an opportunity to move mountains here, and that's the case. Without Congress, the president cannot do

a lot. As you might remember, a few weeks ago, he signed an executive order to help to regulate what they call ghost guns, those that are basically homemade guns without serial numbers. But as he said himself when he got off the chopper yesterday and his way back to the White House, Nathan, he does not have the power to outlaw a weapon. He does not have the power to change rules for things like background checks, and so

while talks are underway in the Senate right now. The President also said he hasn't met in touch with Negotia leaders. If you look at his schedule from over the weekend, going to Uvaldi, going to Arlington on Memorial Day, and a couple of other trips that have have had him getting out and about. He's he's not trying to thumb the scale on this. He's allowing Senator Chris Murphy, Democrat from Connecticut, to try to lead the charge and talks to see what might emerge, likely something around a red

flag law in the days ahead. So, uh, we have these negotiations going forward. Here, the President is being asked whether he's been in touch with Republicans. Is there a sense that there is going to be some more bipartisan negotiation, more at least communication, uh, to try to get something move forward. It's hard to tell, obviously. You know, the leaders have have really let the rank and file go

at it. Here. You've got John Corn and the Republican from Texas on the Republican side, and the aforementioned Chris Murphy on the Democratic side. The leadership Mitch McConnell Chuck Schumer both green lit their talks and and Chuck Schumer says this doesn't go on forever as they try to focus on some common ground here, by the way, doing so remotely because lawmakers are not in town right now, so a lot of telephone meetings happening over the long

holiday weekend. If nothing takes place, if there's no common ground, that's that's found by the time lawmakers returned to Washington. Chuck Schumer says they're going forward with legislation that will be written by Democrats and will likely only get voted to approve by Democrats. The idea here is knowing it will likely fail, but he wants to call people out. He wants people to be on the record members yes or no on not necessarily gun controls, but gun safety

legislation in advance of the mid terms. And that raises the question, Joe, I think that we get asked quite a lot when it comes to putting legislation out there that Senate leaders know is going to fail. Is this more about politics or is this about actually getting something done? Well,

I said, you know it could be both. To be really honest with you, we have no reason to doubt the motivations of Urphy Cornyn and those who are in talks right now, those who are trying to get something done following what happened in your Valdi, following what happened in Buffalo. But but it comes down to simple math

here as well. And this is gonna be if anything happens, it's going to be a heavy lift, Nathan, and so Chuck Schumer, realizing that that his options are pretty limited as well, would like to call Republicans out for for not supporting gun controls. We've seen this conversation start before, we did this after Newtown, Sandy Hook. We're doing it again now. And whether this actually turns into reform is

a very big question. If the answers no, then Schumer, yes, it's gonna pull the trigger on a political move to have Republicans and Democrats vote on a bill that Republicans will likely say no to. So Democrats are confronting their limitations on the gun issue. And it looks as though President Biden maybe confronting his limitations when it comes to dealing with inflation, as he welcomes FED Chair J. Powell

to the Oval Office later today. Yeah. Interesting, it's I'm really struck by how much attention this is getting granted it's a it's a rare meeting between the FED share and the President. Janet Yellen though, will be there as well, and this is a FED that's in constant contact with the administration. There's just a lot of questions about the independence of the FED and whether you know, Joe Biden's gonna give j Powell marching orders. A lot of this

has to do with optics, though. They're they're trying to pivot, coming off the long holiday weekend and and following a week where we were, you know, obviously obsessed with this horrible story from Texas. It really took our eyes off the other stories from Ukraine to inflation, and the White House is bringing that back around now with what will be a photo opportunity in the Oval Office, likely a couple of questions answered by the few reporters who are

allowed in the room. At the top of the meeting, they're gonna lock arms, say we're tackling this. This is the big issue obviously in the midterm election cycle. And the President, while while so striking that independent role of the FED, they like to defer to the FED. He also wants to look like they're working together to get something done and that's basically the point of this meeting today.

And about our last minute here, Joe, former Trump trade advisor Peter Navarro says he's gotten a grand jury subpoena over January six. Yeah, these have been interesting to see how the Committee and the Department of Justice has been dealing with these. Navarro remember was it was an advisor uh to President Trump. And and look he's been uh investigated by the FBI about what happened in the build up to January six, then following the attack on the Capitol.

But specifically, and he's gonna be suing I guess a counter suit here, but specifically the idea of finding alternate electors. This is something that they're going to be looking into. And and Navarro wants to claim executive privilege, It's it's not clear that that would hold up in court. Lots to talk about, even on a holiday week for Joe Matthew, host of Sound on Pierre on Bloomberg Radio. You catch

it every weekday five pm. Wall Street Time, and reminder the you can always listen to Bloomberg Radio in the Nation's capital Bloomberg one and one oh five point seven FM h D two Right now futures are pointing to a lower open as we get ready to close the books on May. S and P futures are down nineteen points right now. Down Future is down a hundred fifty four. NAZDAC futures are lower by fourteen points. That's a drop of about a ten percent on the tech heavy Nasdaq futures.

It's your Treasury is down twenty one thirty seconds right now, with the yield two point one percent yield on the two year two point five three nim X crude continuing its surge, up three point one percent of three dollars fifty seven cents and a hundred eighteen dollars sixty four cents a barrel. Bloomberg surveillance is up next for Karen Moscow. I'm Nathan Hagar, and this is Bloomberg