Bloomberg Daybreak: May 5, 2022 - Hour 1 (Radio)

prime less seconds. Every year, State Anthony Blincoln tests positive for COVID. I'm Michael Barr More Ahead, I'm John Stationward Sports. The Yankees eleven game win Street came to an end. The Mets also lost the Rangers in Penguins play Game

two with the Garden. Tonight, that's All's trained. 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, and Francisco Syrius XM one nineteen and around the world Old on Bloomberg Radio dot Com and via the Bloomberg Business app. Hey, good morning, I'm Nathan Hager and I'm Karen Moscow. In US stock index futures

are following this morning. We're coming up to five out one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg SMP futures down thirty one points down, futures down a hundred sixty six and Nastack futures down one two. The decks in Germany is higher up one point four percent. Tenure Treasury down five thirty seconds, yield two point nine five percent, yield on the two year two point six seven percent,

Nathan Karen. The pullback in stock futures follows yesterday's FED fueled rallying. In his news conference after the FEDS fifty basis point rate hike, Chairman J Powell indicated another fifty, not seventy five, was on the table for the next meeting. Seventy basis point uh it increases not something the Committee is actively considering, assuming that economic and financial conditions evolve

in ways that are consistent with our expectations. There's a broad sense on the Committee that additional fifty basis increases should be on fifty basis points should be on the table for the next couple of meetings. That comment by Fed share Powell fueled a huge rally, and markets treasury yields dropped. Stocks rally the most in two years, The SMP five hundred surge three percent, while the tech heavy NASDAC grows three point two percent. Jason Brady is CEO

of Thornburg Investment Management. I actually expected seventy five to be on the table. He took it off the table. I think the markets were pricing in very hawkish, and you could now hawk the market. So obviously, the reaction markets has been that this is a little bit more dubbish, and Thornburg Investment Management CEO Jason Brady says he thinks yesterday's rally is not sustainable. Well, Nathan, reaction is still pouring into Powell, pushing back against a larger seventy five

basis point increase. And we get the very latest line from Bloomberg's John Tucker, John and Good Morning Karen at Graham Thornton. The chief economists their Diane Swant says the FED is operating in a new paradigm. The FED is now in the position where they're focused on inflation and

employee mint is secondary. That is a very different equation than we've seen the fit in for a very very long time, And Scott Minor, the chief investment officer at Guggenheim, says, going back to the nineteen thirties, the FED has never been able to reduce inflation but more than two and

a half percentage points without inducing a recession. So even if we don't get close to the two percent target, it's very likely that we will have some kind of an economic slowdown well before we get to the desired inflation target, and further hikes of fifty basis points are on the table for June and July. Still, traders interpret the day's events as slightly dubbish. Live in New York on John Tucker Bloomberg Daybreak. All right, John, thanks up next,

an important policy decision in Europe this morning. Let's get the very latest line from Bloomberg's You and Potts. Good morning, Good morning, Nathan and Karen. On the eve of the twenty fifth anniversary of the Bank of England's independence, the UK Central Bank is sets aways rates today to one, it's fourth straight indust rate high. The baway will also allow out how it intends to take unschoted steps to

unwind more than a decade of bond purchases. Governor Andrew Baidy will have to balance efforts to contain inflation at a thirty year high against the risk of squeezing the economy too hard. In London, you and Pott's Bloomberg Radio Europe, are you and thank you well? There's also an OPAQUE meeting today. OPEC and his allies are expected to ranify another their small increase in oil production. Their meeting comes just one day after the EU announced its plan for

a phased ban on Russian crude and checking prices. Right now, NIME ex screwde oil is up about two tenths per cent, or fifteen cents at a hundred seven dollars ninety six cents of barrel, and Brent is up four tens percent at a hundred ten dollars fifty six cents. Well, oil prices at historic highstcare and have lawmakers appointing anti trust laws at OPEC. A key Senate committee is expected to approve legislation that would allow the US to sue the

cartel for manipulating energy markets. The vote by the Senate Judiciary Committee today would pave the way for full Senate consideration. I was staying in the oil patch, Nathan. We're in Buffett increasing his bat on one big energy company. I mean, get the latest line from Bloomberg's readied a Young Good morning,

Ready Town, Good morning, Karen Berkshire. Hathaway had already built up a roughly fourteen point six percent holding of Occidental Petroleum's common stock, and now Warren Buffett is snapping up about five point nine million more shares of the oil giant. Filing shows the shares were bought this week at prices ranging from about fifty six to fifty eight dollars of peace,

and it's trading just above sixty one this morning. Now, Occidental was the best performing stock in the S and P five hundred during the first quarter, and it's seen it shares benefit from Buffett's purchases and higher oil prices driven by the war in Ukraine. Live in New York. I'm ready to Young Bloomberg daybreak. All right, we need to thanks. Let's turn to what's happening on the ground in Ukraine now. Civilian evacuations continue out of the war

ravage city of mary Upoul. In his latest video, address, President Vladimir Zlenski says three hundred forty four people have gotten out, even as heavy fighting continues at a steel plant in the city. The Pentagon says Russia is getting bogged down in eastern and southern Ukraine, and Swedens feign Minister met with Secretary of State Anthony Blincoln. She says the US is offering security assurances to Sweden and Finland

as they apply to join NATO. On the other big political story we continue to follow, Nathan is abortion rights and the head of a CDC, Dr Rochelle Wilenski, is weighing in. She warn't a more deaths if the leaked Supreme Court ruling on Roe v. Wade to stands, and

Bloomberg said Baxter has more. Dr Wilenski says she fears that there could be an atmosphere where there's much less medical supervision for people taking things into their own hands, and she says it will lead to unequal access to the procedure because people with less funds will not be

able to cross state lines. Tied to that, abortion rights groups took over twelve million dollars over the twenty four hours following the leak of the initial Roe v. Wade decision draft and Planned Parenthood says it saw a six hundred fifty percent increase in online actions. In San Francisco, I'm at Baxter Bloomberg Daybreak, Okay and thanks. SMP futures are lower by thirty points after yesterday's rallied OW futures down a hundred sixty seven. NASDAC futures on the decline

by a hundred nineteen points. Stay straight ahead your latest local headlines in the check of sports. This is Bloomberg past out five oh seven on Wall Street where fifty eight degrees in Central Park got an accident in Nassau County Old Country roads closed by meadow Brook Parkway. Details coming up in traffic. First, Michael Bars here with more on what's going on in New York and around the world.

Go morny Michael, Good morning Nathan. A majority of New Yorkers say they disapprove of Mayor Eric adams handling of crime in the Five Boroughs, a reversal from three months ago. According to a new Quinnipiac University poll, only thirty seven percent approve of Adam's handling of crime. Well fifty four percent disapprove. In February, forty nine percent approved of Adam's performance on crime. The news come as two men were

shot and killed in midtown Manhattan overnight. Police was searching for three suspects for the shooting at thirty seven and ninth Avenue. Meanwhile, Mayor Adams is urging New Yorkers to trade the pajamas for lunch near their workplaces. Adams says that's the way metropolitan economy is functioned properly. He spoke during a panel discussion at the Milk and Institute Global Conference in Beverly Hills, California. State Department spokesman Dead Price

as Secretary of State Antony Blanket is quarantining. Secretary Blinken has tested positive for COVID. The good news is that he is fully vaccinated, he is boosted. He is experiencing only mild symptoms. Spokesman that Price says Blincoln will work from home in the coming days. Blincoln had the postpone a key China policy speech that had been scheduled for today. He attended the White House Correspondence Association dinner on Saturday.

No word yet on who leaked the Supreme Court draft opinion on abortion Rights Chief Justice John Roberts has called for an internal investigation. Meanwhile, President Biden is not mincing words about a draft document with the majority voting to overturn Roe v. Wade. What are the next things that are going to be attacked? Because this MAGA crowd is really the most extreme political organization that's existed in American history, in recent American history. The President's spoke to reporters at

an events on the economy and the deficit. We're learning Donald Trump Jr. Was interviewed as part of a House Select committee's investigation of last year's ryan at the US Capitol. He's the latest member of former President Trump's family to be questioned. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalist and analysts more than a hundred twenty countries. Michael barn This is Bloomberg. Okay, Michael, thanks

five o nine on Wall Street. Time for the Bloomberg Sports Update. Good morning, Johnstone, The morning, Nathan. The Yankees first loss in April twenty one in Toronto. They got an early home run from Joey Gallo. Nothing after that in the eleven game winning streak ended two to one. Esther Cortes gave him Matt Chapman home run, took his first loss. Michael King and Play Holmes followed Cortez and through four hit listenings of at least both those guys have the r A s under one day off today.

Yankspect come tomorrow play Texas Mets. Tonight in Philadelphia. They lost to Atlanta nine to two, a scoreless game going to the sixth inning when the Braves erupted for seven runs. Tyler McGill at his first start since he got the win and the Mets no hitter suffered his first loss. They split the four game series, the first series this season that the Mets have failed to win. NBA Playoffs Miami and Phoenix, of the top seeds, they both wanted home.

They both need their series two zip Stanley Cup Playoffs three series were now tied to one after wins by Tampa Bay, Minnesota and Edmonton. Carolina again beat Boston, now up to nothing. The Hurricanes have outscored the Bruins in their five games this season, six to four. Two nights after the first triple overtime game played at Madison Square, Garden in fifty one year's Rangers and Penguins will be

back at it tonight for Game two. NGOs coach Gerard Gallant asked about losing a game one heartbreaker would be heard we're playing Colorado, who's the best game in the league, and you lose five nothing. But games like that where you know you're saying to your team, how are we going to get back from this? We play that, we're playing a very good team who I think anybody can win this series. Of better team's gonna win this series

and it's gonna be a battle. So you know what, it's one game to get over it and you move on up. Here's the Pittsburgh goalie tonight will be Louis Domingue, who has never started a playoff game before he came off the bench the other night when the starter Casey Smith Johnson. Actually we're bloom Broog sports name, Okay john Thanks for looking at SMP futures this morning after the

fed fueld rally. Bit of pull back this morning, with SMP futures now down twenty seven points down, futures down a hundred fifty four nastack futures higher by nineties seven points, but European stocks continue to surge with the Bank of England getting ready for a bank decision and less than two hours. Stay with us, you're listening to Bloomberg Daybreak Bloomberg eleven three oh Weather partly mostly sunny today with highs in the low seventies, Scattered showers possible Tomorrow with

highs and below sixties. Will be in the mid fifties, with rain ending Saturday afternoon. Currently, markets headlines and breaking news twenty four hours a day at Bloomberg dot com. The Bloomberg Business Outland at Bloomberg Quicktape is a Bloomberg

Business Flash and I'm Karen Moscow. And US stock index futures are lower this morning at European stocks are climbing this emit about of investor relief after the Federal Reserve rased interest rates has expected to tackle high inflation, encountering fears of super sized hikes. But again, futures this morning are moving lower. SMP futures down about twenty six points and DOWN futures down a hundred forties even and NASDAC features down at ninety three. The decks in Germany is

up one and a half percent. The ten year treasury down five thirty seconds, held two point nine five percent yield on the two year two point six seven percent. Nine X screwed oil, It's little change in a hundred seven dollars seventy eight cents of barrel comex gold up one point four percent of twenty six dollars thirty cents at eight ten announced. The Euro one point oh five nine eight against the dollar, British pound one point seven and the yet is at one nine point seven one.

Checking bitcoin this morning, it's moving lower, down about seven tenths percent at thirty nine thousand, five hundred fifty dollars and as a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Muncle, Good morning, Good morning Karen. Ukrainian forces say they repelled Russian attacks in the east and recaptured some territory, even as Moscow moved to obstruct the flow of Western weapons the Ukraine by bombarding rail stations and other supply line

targets across the country. Heavy fighting also raged at the steel mill in Merry Yuple that represented the last stronghold of Ukrainian resistance in the ruined Southern Port City. In baseball, the Yankees eleven game winning street came to an end. The pin Strives lost to the Blue Jays too one. The Mets lost along with the Red Sox, Nationals, A's, and Giants. The Orioles won. In the NHL Playoff, the Rangers play game two of their series against the Penguins.

New York Is coming off a Game one triple overtime loss. The Bruins lost to the Hurricanes five to Carolina now leads the series two games to ZIP. Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael barn this is Bloomberg. Nathan helped that Rangers goalie is arrested. Thank you, Michael. It is coming up to five twenty on Wall Street

Live from the Bloomberg Interactive Broker Studios. This is a Bloomberg daybreak. No rest for the markets after digesting the feds fifty basis point move and plans for more. Let's bring in Jennifer Lee, senior economists at Demo Capital Markets. As we continue to get reaction to the FED decision. Jennifer, good morning. The Fed delivered what the market was looking for, but will multiple fifty basis points be what inflation needs? Um?

Good morning. I think you know, I think what he said, which was, you know, fifty basis points on the table over the next couple of meetings. UM. My favorite word is this reasonable. Um. I can't see a semi five basis point breed hike right now. I don't think I ever took one seriously as definitely not for yesterday. And if I may, if I may, by the way, just

tell you what my conspiracy theorists is. Yesterday I was thinking, well, first I thought, oh, unanimous, even Mr James, let's not rule out of semi five basis point right hike because it's not my base case at this point of the board.

So the conspiracy theoristsm ME was thinking, you know, did they parade them out recently over the last week and sort of planted the idea of semi five basis points into the market's head and then go ahead and only and I say only using my air cole it's here only raised fifty basis points and sort of beating expectations and thus sparking the rally when you saw on the stop markets. So that's what I was thinking about. I think fifty basis points over the next couple of meetings UM.

I think at you know, UM, at a minimum, what's it gonna do for growth to have front loaded hikes like this? It is going to have it already is starting to have that UM wanted effect that aimed that

that goal, which is to curb demand. You know, he's already said in in in previous UM Press conferences and interviews that you know, raising rates is not going to make UM supply chains clear up, it won't make h you know, widgets being produced any faster or being shipped across the sea even faster, but it will be able to cool demand down enough to ease the pressure on supply chain. So I think that's what the that that intended effect will be. Chairman Powell said that basis points

is something they're not act of Lee considering. Just to bring it back to that, do we need to pars what actively means? I think he is not um UM ignored. He's he's keeping all of his options open. I think every single central maker out there is these days, they're gonna have to because you know, no one knows what, you know, what lies around the corner, especially with you know, inflation is still remaining very very high. Um, you know it's um supply chains again, no signs of of easing

meaningfully anytime soon. He's already brought up the fact that, you know, the Ukraine war and the China lockdowns are going to add to that inflation um pressure. And by using those two um um factors, UM, I think that sort of head to suspectimy basically that it is possible. Wouldn't read it off but or so I wouldn't completely ignore it, but um, you know, it's it's something that's not on the radar, but it could be, you know,

beeping around on the background. Is there some debate for you about whether FED policy is part of what's feeding into the inflationary pressure? Is besides supply chains, the war in Ukraine and other exogenous factors, Is FED policy itself part of what's happening here? That's a good question. I think, you know, I think it probably was, just given the fact that they took a little while longer to move.

I'll put it up politely to raise rates by continuing last year to call it transitory, and you know, and he's admitted, you know, um, and I give him kudos for that. He's admitted that, you know, if if we knew now, or we knew then what we knew now, you know, they would have gone a lot earlier. So I think that probably contributed somewhat to this higher rate

of inflation. So now they're working to sort of you know, rate that wrong or make up for lost time, and and sort of set up for more aggressive moves, you know, like the two at least the two fifty basis point moves in the next couple of meetings. About thirty seconds left here. What's a tighter FED going to mean for the job market? We have, of course the April jobs report coming out tomorrow. Does it have any impact the

April report on what the FED does from here? I think is already started starting to we are we're looking forward about three and eighty thousand for April, possibly if some down fliver has just given from what we saw. Um. ADP is always kind of wonky, but you know, even the other ones, like the the base. So I think, you know, I've been saying this for months now, all this strong demand for jobs. It's just not sustainable. You know, he was talking about nearly two jobs for every unemployed

person yesterday. But I think as the economy slows, demand is going to cool, which is again the point of tighter monetary policy, You're going to start seeing that pullback in job demand. So I hope that anyone who's out in the sidelines, you know, um and have multiple job offers, you know, I think they should. They've got to get back into that game. So great to have you with us this morning, Jennifer, Thanks so much. Jennifer Lee, senior

economists at BMO Capital Markets. With reaction after the feds fifty basis point increase keeping seventy five off the table sparked a rally. Now futures are pulling back. Son. We have SMP futures down thirty points down, futures down three NASTACK futures are lower by a hundred eight points. You're sning to Bloomberg daybreak, Bloomberg eleven three oh weather. Sunshine today with him. The low seventies, Scattered showers return tomorrow,

low sixties for highs. The rain of end Saturday afternoon. It'll be breezy and cool with a high in your fifty five right now, broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Freedom to Washington, d C, Bloomberg On to Boston, Bloomberg one O six one does San Francisco, Bloomberg nine sixty to the Country, Sirius XM Chad A one nine team, and around the globe the Bloomberg Business app and Bloomberg Radio dot Com.

This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscower. Just about four hours away from the open of US trading. Let's get you up to date on the news. You need to know what this hour we're seeing as like

pullback in futures this morning. After yesterday's rally that followed a press conference from Federal Reserve Chair J Powell, Powell indicated a seventy five point basis hike was not being considered for meetings in June and said he's committed to bringing down inflation. Inflation is much too high, and we understand the hardship it is causing, and we're moving expeditiously

to bring it back down. We have both the tools we need and the resolve that it will take to restore price stability on behalf of American families and businesses and Chair J. Powell's comments came as the FED hiked interest rates fifty basis points and reaction is still coming in from many quarters. Karen more on that in this

live report from Bloomberg's John Tucker. John Nathan Former Philadelphia Fed President Charles Plosser said Fed Chare Powell yesterday was trying to appease the markets at bigger rate increases should not be dismissed. I don't think he should have taken seventy five basis points off the table, as many people have been. I don't I think do they need to be still on the table and that they don't have that option. Former Philly Fed President Charles Ploster. Another reaction

from Scott Miner, the chief investment officer at Guggenheim. He's just going down to the nineteen thirties that had has never been able to reduce inflation by more than two and a half percentage points without inducing a recession. Live in New York on John Tucker Bloomberg Daybreak. All Right, John, thank you in Europe the Bank of England, but also

likely lift interest rates today to combat inflation. MEC In Washington, Care in the Senate Judiciary Committee is expected to approve legislation allowing the US to sue OPEC for manipulating energy markets. It comes as opaque and allies are expected to ratify

a small increase in oil production. Well. Sticking at the oil and Nathan Warren Buffett's increasing his bet on one energy company and Bloomberg Shore need a young joints Live with the latest Good Morning, Nida Morning Care and Berkshire Hathaway had already built up a roughly fourteen points since fourteen point six percent holding of Occidental Petroleum's common stock. Now Buffett is snapping up about five point nine million

more shares of the oil giant. A filing show. Shares were bought this week at prices ranging from about fifty six to fifty eight dollars a piece, and it's trading just above sixty one dollars this morning. Occidental was the best performing stock in the SMP five hundred during the

first quarter. Live in New York. I'm gonna need a young Bloomberg daybreak, all right, we need to thank you, and futures again moving lower, SNP futures down twenty nine points down, Futures down one hundred seventy and Asday futures down one hundred ten and straight ahead your latest local headlines, plus a check of sports and this is Bloomberg. Thanks on Wall Street fifty degrees in Central Park. A tractor trailer accident has Old Country Road closed at the Meadowbrook

Parkway in Nassau County. Details coming up in traffic. First Michael bar with more on what's going on in New York and around the world. Michael, thank you very much. Nathan. New York City police are looking for three suspects and the shooting depths of two men in Midtown Manhattan, shooting halfen overnight at thirty seventh and ninth Avenue. Meanwhile, a majority of New Yorkers say they disapprove of Mayor Eric Adams handling of crime in the Five Boroughs reversal from

three months ago. According to a new Quinnipiac University poll, thirty seven percent approved, while fifty disapproved. The fallout continues over the leak of a Supreme Court majority draft opinion from February suggesting Roe v Wade to be overturned. President Biden says more could be at stake if the landmark abortion ruling is struck down. Another cabinet member has tested positive for COVID. Secretary of State Anthony B. Lincoln is

said to be experiencing mild symptoms. State Department spokesman Ned Price he will quarantine at home. He will follow CDC guidelines. I know he very much looks forward to returning to the office, returning to his full schedule, and returning to the road just as soon as he is able to do so. Spokesman Ned Price says Blincoln is fully vaccinated

and boosted. And Alabama murder suspect and the corrections official are still on the run after they disappeared last Friday morning, but Lauderdale County Sheriff's Department has released surveillance videos showing fifty six year old jail official Vicky White leaving the lock up with thirty eight year old inmate Casey White. That you were not related, but had what Sheriff Rick Singleton calls a special relationship. My mister Ruby, Vicky, You've

been in this business for seventeen years. You've seen this scenario play out more than once and you had always end go ahead and the end it. Now you get a phone call nine one one, uh turn yourself in, Sheriff Singleton says Vicky Whine had an unblemished record Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael

barn and this is Bloomberg, Nathan. Thanks Michael Street. Time for the Bloomberg Sports Update with John Stennshower and Nathan. Yankees and Mets both off to sich great starts, but both lost. The Yankees in Toronto two to one. That ends the eleven game win Street. Yanks had only five hits, Blue Jays only had four. Aaron Boom not around for the end of the game Ejaculd after really getting into

it with played umpire Marty Foster. The Yanks did not like some of his calls, especially in two of Aaron Judges at bats. Judge lynnon Boom do the arguing good, you know, I'll get a little ir rate and maybe you know from my helmets say something to him after the fact, but there's no need you know, we got a lot of ball game left to play, and I know I'm gonna get another at bat and me and tossing and put somebody else at risk. If you're not going in there, it's not ridy, you know. So that's

how we got a mander Boone. He stuck out for us tonight or I'm gonna get the job done. For the Mets, they failed to Atlanta nine to two. Is the Braids got to Tyler McGill scored seven runs in the six Didny mcgills first loss of the year and the first series of the Mets have failed to win there in Philadelphia tonight. The Yankees are all NBA playoffs. Phoenix shot sixty five percent, beat Dallas by twenty Miami, the Philadelphias are the Sons and he are up to

nothing Stanley Cup Ploffs. Carolina went up to nothing on Boston. Tampa Bay, Minnesota and Edmonton all wanted to tie their series at one, and that's what the Rangers will look to do tonight, Games two at the Garden. After the Penguins Game one win in triple overtime, the NFL, before announcing its full schedule, announced the International Games. The Giants learned they will take on Green Bay at Tottenham Stadium

October ninth. Giants are two and oh in London. The Packers the only team that has never played an international game. There are three in London, one in Mexico City, and for the first time ever, a game in Germany. That'll be Tampa Bay versus Seattle. John Stash went Bloomberg Sports nat Thanks John. It's five thirty seven on Wall Street Time now for the Tri State Business Report with Bloomberg's head Cory Bill. Ackman can build his glass penthouse the

top of historic Manhattan co Op Tower. The hedge Fund manager faced initial opposition to the structure, but after revisions to address complaints about its visibility from the street, the Landmarks Preservation Commission has approved the project. New Jersey's man on Planet Stick and paper bags is in effect. Shop Right is charging a flat donar fifty per order for reusable bags. Insta cart delivers four stores. It charges a flat bag fee old foods packs orders and reusable bags,

which are currently free of charge. Cities in towns in Connecticut are getting the first round of checks from a search charge on many liquor bottles known as nips. Last October, the state place to five stands search charge in the sale of alcohol bottles smaller than fifty million leaders one point eight million dollars has been distributed to one hundred sixty three towns and municipalities. That's your Bloomberg Dry State Business Report. I'm Ed Corey. Thanks that it's on Wall straight.

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 Podascan ten ten Wins in New York. We're talking about the games being seen in construction, job posting, m he Donahoe on ker l D and Dalla T Mobile upping the battle for customers with a five dollar rebate. And Lisa Mateo and on k m o X in St. Louis.

I'll be reporting on a new way to save on your Internet and cell phone Bill Jeff Budinger and on w io D in Miami. I'm reporting on the f A a U S effort to smooth air traffic in Florida, which has become a weak link in the national airspace. I've had glory on w w J in Detroit. I'm reporting the financially struggling fair Lane Town Center and beer Board had the soul, and those are some of the stories. Are twenty seven hundred Bloomberg journalists and analysts you're working

on this morning around the world. It's nine on Wall Street. The following is an editorial from Bloomberg Opinion. The European Union is striving to tighten sanctions on Russia by halting purchases of Russian oil. Now that Germany has withdrawn its earlier opposition, the proposed band's prospects have improved. Germany's position is crucial because of its influence within the EU, the size of its economy, and it's heavy dependence on Russian energy.

It's change of heart on oil is welcome, but it's efforts can and should go further. Specifically, it needs a plan to shut down imports of Russian gas. Despite what skeptics are Italian Chancellor or Left Schultz, it's feasible to halt German imports of Russian gas this year by increasing imports from elsewhere and reducing consumption. Given the will the strains should be tolerable in the short term and more than rewarded in the long term. Schultz and this Minister's

would be wise to take the initiative 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 opan go on the Bloomberg terminal. This 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. Seeing a pullback in futures after yesterday's rally, we have SMP futures now down thirty two points down, futures down a D eighty one, NASTACK futures are lower by a hundred twenty eight points. Looking at the tenure treasury, it's down five thirty seconds. The yield now at two point nine yield on the two year two point six eight percent. More on the market action following the Fed's decision. Will be speaking next

with Michael Houston, chief market Analysts at CMC Markets. This is Bloomberg. Bloom were eleven three oh weather, sunshine and low seventies today, scattered showers possible tomorrow. Low sixties will be in the mid fifties by Saturday with a breeze. Currently fifty eight 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. She's a Bloomberg Business lash and I'm Karen Moscow. You watched

Dock Index futures are lower this morning. European stocks are climbing after the Federal Reserve raised in risk rates as expected to tackle inflation while countering fears of supersized hikes. We checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, S ANDP futures are down about twenty nine points down, futures down a hundred sixty

six and as deck futures down one hundred sixteen. The decks in Germany's have wanted at third percent ten Your treasury down four thirty seconds yeld two point nine five percent. They yield on a two year two point six seven percent nine max Screwed oil is little change in a hundred seven dollars eighty four cents a barrel. Comics gold is up one and a half percent, or twenty seven dollars forty cents at eighteen ninety six twenty announced. The Euro one point oh five nine six against the dollar,

British pound one point to five five nine. The end is at one twenty nine point seven one, and Bitcoin this morning lower down about nine ten percent at thirty nine thousand, four hundred sixty dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, very and thank you very much. Overnight, Cruise set up security fencing around the U S. Supreme

Court Complex for demonstrations today. It comes amid tens after this week's leak of a draft opinion that would likely overturn Roe v. Wade. There are new developments in the war in Ukraine nearing an eleventh week. Russia appears to be targeting key infrastructure to stop the flow of military aid that has been coming into Ukraine. In baseball, the Yankees and Mets lost, along with the Red Sox, Nationals, A's and Giants the Orioles one in HL playoffs. The

Rangers play Game two of their series against the Penguins. Tonight, the Bruins lost to the Hurricanes. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analyst more than a hundred twenty countries. Michael bar this is Bloomberg. Nick. All right, Michael, thanks, it's coming up to five forty nine on Wall Street Live from the Bloomberg Interactive Brooker Studios.

This is Bloomberg Daybreak, and we're very pleased to welcome back Michael Houston this morning, Chief market analyst at CMC Markets. Michael, I don't know if you saw the headline from the Daybreak function on the Bloomberg terminal that just crossed a few minutes ago. US futures suffer fed hang over. That was quite the rally yesterday after the market heard is not on the table. Yeah. I think that's really the

way you can probably frame it. I think that the bond markets were also caught out quite significantly by the by this slightly less hawkish I'm not going to say it was doublish because it wasn't a fifty basis point rate hike can never be considered doubbish, but I think it was less hawkish than perhaps some of the worst fears that market participants had with respect to yesterday's meeting.

And the fact of the matter is Powell is still potentially keeping on the table another two fifty basis point rate hikes by September, as well as essentially another couple of twenty five basis point hikes by the end of

the year. So you're talking essentially putting the FED funds right back to two and a half percent by year in against the backdrop of obviously running off the balance sheet and a very strong currency in I don't hear an awful lot of people talking about the strength of the dollar, which is also likely to act as a little bit of a deflation re drag. But the Fed gives the market what it's been pricing in at this point. What is that say for market volatility going forward? Are

we expecting more of that? Absolutely? I mean, if you actually look at what markets have done over the course of the past six months, really strong support on the SMP around about four thousand, one hundred, fairly decent resistance around about four thousand, six hundred, and we've really been trading in that five hundred point range pretty consistently since the end of January UM, and I think that is likely to remain. Probably the raise on depth for the market.

You look at the way the VIX has traded. Every time it's traded up towards thirty five, it's come back down. Every time it's traded below twenty, it's come back up. And I would expect that to continue over the course of the next three to six months. Do you expect that implementation of FED policy is going to start to have an impact on where markets go from here? Is they're going to continue playing the expectations game and looking

past whatever the FED does. I think at the moment, the Fed's played a very good game in terms of managing market expectations. Obviously, I think we could probably do with an awful lot less FED speak. UM. I think the fact that the markets reacted to the way they did yesterday is a fairly positive theme. But you know, I think it really depends on what Bullard comes out with at the weekend. Perhaps maybe he starts to get his hawkish talents out and talk about prospect of a

seventy five basis point right, hike. Personally, I doubt that. I think we'll get a good idea of what inflation might be doing next week. We've got CPI PPI coming out next week. I think it's quite likely we could go for one last push higher before we start to come back down again. Um that's that's that's my base case scenario in any case. But so as as with anything with going on the global economy, who knows got events in China's past. We've got obviously events in Ukraine

and Russian. I don't think they are going to ease anytime soon. So I think no one's talking about China, and I think China is going to have a part to play in this, especially if they continue their zero COVID policy. So in our last thirty seconds here, Michael, do you see this as a bear market? Not quite yet. I think if we if we dropped below the lows this year on the SMP, the NASDAC, then potentially we

could start to see a significant acceleration. I think what we're seeing at the moment, Nathan, is a consolidation from the record highs that we saw last year and were essentially been trading sideways. If we break below the lower bound of these ranges that I've just been talking about, then we can see further weakness. I think. Thanks for this, Michael, great having you back on with us. Michael Houston, Chief market analyst at CMC Markets, Karen Verty, Nathan, thank you.

It's on Wall straight. Time for the Bloomberg Law Report. Let's get at the legal story race we're watching this morning from Bloomberg's Jeff Mellinger. Senator Tammy Baldwin called on Senators to fast track a House pass bill aimed at preventing violence in the healthcare workplace. A federal judge in Maryland granted class action status to some Marriott guests whose personal information was compromised by a breach at Marriott's Starwood

branded hotels. Heirs to songwriter Hugo Peretti failed to convince the Second Circuit they had a right to reclaim the rights to the composition behind the Elvis Presley hit Can't Help Falling in Love. 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. Alright, Jeff,

thank you. Now another legal story we're watching the first opioid trial to target drug manufacturers, distributors, and pharmacies is taking place in a federal court in California. The city of San Francisco says opioid manufacturers Allergan and Teva, distributor and AH, and pharmacy giant Walgreens flooded the city streets with prescription drugs, and it's suing over the toll opioids have taken on the city, where one quarter of emergency

room visits are the result of opioid related issues. For more Bloomberg's doing grouse so speak to healthcare attorney Harry Nelson of Nelson Hardeman Harry, san Francisco is using a public nuisance theory? What does it have to prove to

make its case? So to prove a public nuisance, San Francisco has to prove that the three drug companies at issue, along with Walgreen's pharmacy, basically engaged in behavior that's so harmed so many people in San Francisco, and that they need to be essentially forced to pay for that harm.

And the harm here that we're talking about, of course, this prescription opioid and the claim is that these companies are responsible for having flooded San Francisco with prescription opioids and then failed to prevent them from being routed in to the illegal market for misuse. San Francisco claims they aggressively marketed opioids to doctors as a risk free panasy for all forms of pain. What's the line between aggressively

marketing and just marketing. It's an interesting question. I think, you know, it's much easier when we talk about this question of where the line is on marketing to look at behavior from for example, Perdue Pharma, where it was very clear that they were aware that the problem of overdoses and the addictiveness of the drug was causing problems, and they just kept marketing more aggressively and sort of

building that issue into their marketing. It's a lot more fuzzy when you come to companies like Walgreens or Alegant Tava Pharmaceutical where they were offering these drugs in the market. It's not clear what they did that was so unusual in that marketing, and frankly, I think that the city is going to have a very hard time showing that there was anything particularly distinctive about the way that these drugs were promoted is that somehow ignored the risk associated

with them. The defendants claimed that they were sort of bit players in the opioid crisis, and they say the blame should be directed at Perdue, which has declared bankruptcy. I think it's a compelling argument. You know. The reality is that there were a lot of companies that manufactured and distributed and in the case of the pharmacy's, dispensed these drugs. But they are not all equal. Right, Perdue Pharma made billions of dollars and orchestrated an aggressive campaign

to manipulate how doctors and patients perceived the risk. There's not the same kind of evidence with regard to Allergan and have A. These are companies that clearly had a business line devoted to pain medication, but there's no signs that I've seen to this point to suggest that they were somehow scheming to hide the risks associated with these medicines or doing something to promote them more aggressively than

all the other medications that they sell. I personally think that the city has an uphill bad a limit case. And as Harry Nelson of Nelson Hardeman, speaking with Bloomberg, stew in Grasso. 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 this morning are moving lower. SMP futures down twenty six points down, futures down one hundred forty, and NASTAG futures down one hundred seven. Ten year treasury down four thirty seconds, held two point nine five percent, and the yield on the two year two point six seven percent at nine mack screwed oil is up about two tents of a percent. Now still ahead on Bloomberg Daybreak and check on the business headlines and all the news you need to start your day. And this is Bloomberg