Bloomberg Daybreak: May 6, 2022 - Hour 2 (Radio)

the April jobs report. A former FED Vice chair says short term rates need a triple from current levels and the airline industry or does the Biden administration to drop the COVID test mandid It would be the largest red hike in years for New York City apartments, plus a historic higher for the new White House Press Secretary Michael are more Alf I'm John Stashtoward sports. Rangers beat the Penguins and tie the series, and one an amazing comeback

win by the Mets in Philadelphia. That's all training ahead on Bloomberg Daybreak on Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty, San Francisco, Sirius XM one nine team and around the world Down Bloomberg Radio Dot Car via the Bloomberg Business app. Good morning, I'm Karen Moscown I'm

Nathan Hagar. Bloomberg Daybreak is brought to you by B n y Melon's Pershing Learned why the world's most sophisticated wealth management and institutional firms rely on Pershing to help them improve profitability, create efficiency, attract talent, and manage risk at pershing dot Com. A right, Nathan, and futures are lower this morning. We are at six o one on Wall Street and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg. Guess and P futures

are down eight points this morning. Down futures down thirty one. Nasday Future is down thirty nine. Ten year Treasury down ten thirty seconds. You know, three point oh seven percent, and they yield on the two year two point seven two percent and nine max Screwed oil is up two point three percent, up two dollars forty nine cents at a hundred ten dollars seventy six cents a barrel. Nathan, Well, Karen.

We close out this volatile week following two consecutive days of three percent moves and markets in the opposite direction, A day after stocks surged on a US hawk is fed the S and P five hundred fell three point six percent yesterday, while the NASTAC plummeted five percent. Jimmy Lee is CEO at Wealth Consulting Group. Retail investors are starting to get nervous and of course these last two days of altility um I think reminding some some people of what it was like March and maybe those have

been around longer, maybe the financial crisis. Wealth Consulting Group CEO Jimmy Lee made the comments on Bloomberg Business Week, which you can hear weekdays from two to five pm Eastern on Bloomberg Radio. We also got reaction on the Cell off from Charles Schwab, chief market strategist Lizianne Saunders. I don't think the market is yet priced in recession risk. I think the market is still making an assumption that

we have a soft landing. I just think the needle is pointed a bit more toward recession and soft landing, and we may not be through that rerating process yet. Lizzie Saunders with Charles Schwab says yesterday's economic data showing labor cost surging and productivity dropping contributed to the Cell off and we get another key economic rating later this morning. Nathan. The April jobs report, economists forecast call for a gain of three hundred eighty thousand non farm pay rolls at

an employment rate of three point five percent. We get more from Bloomberg s Michael McKee. One key question the April jobs report may answer, are we running out of people to hire? After months of luring sidelined workers back into the labor force, companies are beginning to suggest the post pandemic hiring spree is waning. This week's I S M manufacturing and services employment indexes both slowed. The ADP

payroll report Wednesday was surprisingly soft. If employment growth starts to ease, that may push unemployment down and wages up, which sets up an interesting situation for the Fed. Rising wages suggest an inflation problem continues, but low unemployment, coupled with record levels of job openings gives the Fed the opportunity to raise interest rates without doing as much damage to the overall economy. Michael McKee, Bloomberg gabriak. All right, Michael,

thank you. I'll stay with Bloomberg throughout the morning for complete analysis of the Johns report. Do we speak live with Labor Secretary Marty Walsh coming up at am Wall Street time on Bloomberg Radio and television. Well, we wait for that, Karen and other former FED officials weighing in on policy. Former Vice chair Richard Clarenda says the Fed will need to raise short term interest rates to at least three and a half percent to bring inflation under control.

We get the details from Bloomberg's Charlie Pellett. Clarada's remarks came in a speech to a Hoover Institute conference. He said the funds rate will ultimately need to be raised well into restrictive territory by at least a percentage point above the estimated nominal neutral rate of two and a half percent. Clarida left the Fed in January. On Wednesday, the Fed raised its target range for the federal funds

rate by a half percentage point. It also said ongoing increases are likely, and it announced a plan to start reducing its big balance sheet next month. In New York. Charlie Pellet Bloomberg Day Break, Right, Charlie, thank you now to the latest on the war in Ukraine. More civilian evacuations are expected from Maria Pole, but Ukrainian defenders are refusing to surrender. The giant steel plant that's been under

relentless attack from Russia for weeks. Pentagon's spokesman John Kirby, we would still assess that the Ukrainians are putting up a very stiff resistance and that the Russians have not made the progress that we believe they expected to make by this point. Pentagon spokesman John Kirby said, the battle is far from over. Meantime, speculation grows that Vladimir Plutin wants a major battlefield victory in time for World War Two era Victory Day commemorations. First, Lady Joe Biden is

headed to Eastern Europe. Sh'll meet with US troops and Ukrainian mothers and children in Romania, and spend Mother's Day with displaced families in Slovakia. Let's turn to the pandemic now, Karen. We're seeing the travel industry put new pressure on COVID policies. Wants the Biden administration to modify testing mandates for international flyers. Bloombergs that Baxter has the story. Airlines, along with travel groups, want to begin allowing vaccinated people to fly into the

US without first testing negative for COVID. This coalition includes more than two hundred fifty travel groups and businesses, including airports. They say the recovery and the international travel market is down about seventy eight percent from twenty nineteen, and say medical advancements can support it. Other countries, including the UK, Germany, and Canada have already dropped that mandate. In San Francisco, I'm at Baxter Bloomberg Daybreak, right and thank you. Meantime,

Johnson and Johnson's COVID vaccine is under scrutiny. US regulators are placing limits on this shot, and we get the latest lie from Bloomberg's nit a Young Good Morning Rity to Good morning Karen. The f d A is limiting the use of the J and J shot to adults for whom other shots are not medically appropriate or accessible. The agency is also allowing those who would otherwise not get immunized against the virus take JJ and j's shot.

And the FDA made the decision to limit the authorized use of J and J shot after investigating reported cases of blood clots and people who have taken the vex seen live in New York. I'm gonna need a Young Bloomberg daybreak, all right. We need to thank you. Right now, SMP futures are down seven point staff futures down twenty four. NASTACT futures lower by thirty five points. The tenure treasury yield right now three point zero seven percent. Straight ahead,

your latest local headlines and a check of sports. This is Bloomberg and it's now six so seven on Wall Street. We're at fifty eight degrees in Central Park dealing with an accident on westbound Route three. We'll get the 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. It would be the largest rent increase for New York City apartments in about ten years.

A preliminary vote by the New York City Rent Guidelines Board last night I proposed the hike for rent stabilized apartments. It proposed a rent increase of two to four percent for one year leases and a four to six percent increase for two year leases. A final vote is expected at the end of May. Connecticut Democratic govern Or Ned Lamot signed a law designed to protect people who provide an abortion and are then sued in another state. You know, Twitter message Lamont says it was a bill he was

eager to sign. I think you've heard a lot about what's coming out of the Supreme Court and a preliminary ruling that looks like they may be on the edge of a ending a woman's right to choose and ending a Roe v. Wade. That's not going to happen the state of Connecticut, not as long as I'm here. No politicians are going to get between you and your doctor. You make the choice. The law is set to take

effect on July first. Meanwhile, Governor Kathy Hokel, who says anyone who needs access to care will be welcome with open arms in New York. I want to have this enshrined not just in state law, but in our constitution, just in case there ever is a situation we lose the House, to lose the Senate. Heaven for Midnight. Dun't believe that will happen. Governor Hokel told ABC the reality rolling Back wrote is just like a punch in the nose.

US Chief Justice John Roberts called the League of a draft out of the Supreme Court abortion opinion this week absolutely appalling. Roberts told the Judicial Conference in Atlanta, the person responsible would be foolish to think the disclosure will affect the court's handling of the case. Some Ukrainian refugees are making a new life in Rochester, New York, even behind their homeland torn apart by the Russian invasion. Ghana. India says she never wanted to leave it so nice.

I never want to go out for my content because I love the family. Will be meeting with their host family later today. Karine Jean Pierre will replace Jen Sakis White House Press Secretary. Jean Pilierre is the first black person and openly LGBTQ person to hold the position. It is an honor and a privilege to be behind this podium. In about a week or so, when Jen is ready, Zaki leaves on thirteenth Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by

more than journalist analysts more than twenty countries. Michael Barr, this is Bloomberg. Nathan, Thanks Michael. Up to six ten on Wall Street Time for the Bloomberg Sports Up Daviews, John Stashower, Thanks Nathan. Rangers and Penguins back at the Garden after that marathon three overtime game one, like that one, the Rangers scored first. Unlike that when they kept the lead,

beat Pittsburgh five to two, five different goal scorers. Andrew cop Off at Artemi Panairin passed, Ryan Strom deflected in Adam Fox shot on the power play. Chris Crowder deflected in the Frank Patronto shotting in the third period. Pannerin and Patronto scored themselves for Igor Cisterkin. After seventy nine stains the other night, he had thirty nine more. Game three tomorrow night in Pittsburgh also wins for Florida, Dallas and Colorado. The Mets in Philadelphia and a lot of

their fans, no doubt, turned this game off. The Phillies landed seventh and nothing seven one in the ninth inning. Here is Marte now dim Mo good lead at first. The pitch swing on a high fly ball left center field, pretty deep. It's got some legs back near to all. Its good for Ahad taking a tape the lead, Nebo a round third coming home pa score standing double for Farte eight because seven they are holy Stikey's but Mets with a seven run night tenday, that's sent us. It's

back part w CVS seven runs on eight hits. Mark they had two and then they scored four times with two outs. Third time in Mets history they've won a game one trailing by six. In the ninth NBA playoffs resumed tonight, Philadelphia trails Miami to nothing. They're open to get Joe l m bed at a concussion protocol. Phoenix up to not being Game three in Dallas. The Celtics hope to have Marcus Smart back for their Game three tomorrow and Milwaukee. Memphis will be without a second leading

score tomorrow at Golden State. Dylan Brooks suspended for his hit of Gary Payton, John Stashward, Bloomberg Sports, Nay, Holy Shnikeys, thank you, John sp features down twelve points, staff features down fifty six standstack futures down fifty five ten, Your treasury down twelve thirty seconds. The yield now three point

zero eight per cent. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather rain and low sixties today, rain and low fifties tomorrow, more showers for Mother's Day, upper fifties by Sunday. Right now fifty eight in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business App, and at Bloomberg

Quick Tape. This is a Bloomberg Business flash, and I'm Karen Moscow stocks are sliding with bonds, a dollar rising, as inflation rising, burrowing costs, and China's COVID lockdown's depressed sentiment. European stocks extending their losses this morning. They're falling more than one percent and are set for the worst weekly drop in two months. U S stock indise futures lower. It's after the SMP five dred fold more than three and a half percent yesterday in the nasdack lost five percent.

Let we check the markets every fifteen minutes throughout the trading day. On Bloomberg s and P futures down fifteen points this morning, down features down seventy nine and nowsday features down seventy two. The decks in Germany's down one point two percent. Ten year treasury down eleven thirty seconds. They yield is at three point eight percent. They yield

on the two year two point seven three percent. Nine max screwed oil up to in a quarter percent of two dollars forty three cents at a hundred ten dollars seventy one cents a barrel call, make school the third of a percent, or five dollars eighty cents at eighteen eighty one fifty announced the euro one point oh five eight one against the dollar, British pound one point to three three nine and the end at one thirty point three six and Bitcoin this morning down six tenths percent

at thirty six thousand, two hundred thirty dollars. I mean, of course, watching for the April jobs report at an eight thirty Wall Street time. 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. Training and fighters battling Russian forces in the tunnels beneath Maryuple's steel plant are refusing to surve render. The battle is unfolding in the last Ukrainian stronghold of the Strategic Ports city.

The FDA has limited use of the Johnson and Johnson COVID vaccine to adults. It comes after an investigation of rare and potentially deadly blood clots related to the J and J single shot vaccine. NHL playoff the Rangers beat the Penguins five two to even their series. At a game of peace. The Capitols lost to the Panthers that series. Now even at a game of peace. In baseball, the Mets one, scoring seven runds of the ninth against the Phillies to win it. The Orioles won, the Red Sox,

Nationals and Giants lost. Global News twenty four hours a day on air and on Bloomberg Quittake, powered by more than twenty seven hundred journalists and analysts more than twenty countries. Michael Bart, this is Bloomberg. Nathan alright, Michael, thank you. We're coming up to six twenty on Wall Street line from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak.

Let's get more on these markets now. Bloomberg Television anchor and markets correspondent Danny Burger joins me as we get ready to close out a week of extreme volatility. Danny, good morning. It has been watching the bouncing ball, and the bounces have been insane this week. You know. The crazy thing is is that actually if you look on a week basis, just you know, this week up to today, the NASA is actually flat. So if you were an alien just dropped down onto the earth, you wouldn't think

anything happened. But I mean, certainly it did not trade flat most days. No, Yeah, I mean something happened. Obviously we had we had the FED taking seventy five basis points off the table. I mean, now with the action we're seeing this morning, it looks like the surge following

that was a sugar rush. Yeah. I mean I I kind of had this feeling that yesterday a lot of the moves had to do with positioning, because you had hedge funds going in to the FED meeting, very short treasuries, and I think a lot of them were short treasuries with this idea that they talk out seventy five basis points, so they don't talk about seventy five basis points, so you get the short covering of bonds as allows them to rally. That makes equity sentiment a little bit better.

But I think when you step back and you say, okay, he said they weren't actively discussing seventy five basis point hikes, I mean they still hiked fifty basis points. They're still expected to hike two hundred more basis points. I mean the expectation is still there for them to be hawkish. So I think, save for the sort of positioning reaction, I would say what we're saw yesterday was perhaps more what you'd spect in line with the Fed that decided

to hike fifty basis points and talked about coming QT. Yeah, potentially coming a day later. But you know, a lot of the talk going into the FED meeting, Danny, as you know, was that multiple fifty basis point rate hikes were getting baked in. Is there further baking in to go? I I think that it's not even just baking in more rate hikes, because perhaps that is all baked in, which would mean that the two year yield has peaked.

We saw that in the market action yesterday. Even as yields are moving higher, the two year yield wasn't doing too much. So I think perhaps just in terms of rate rises, perhaps that's baked in. But there's more to this talkish picture. Again, there's a balance sheet runoff. That's something you'd see on the long end, and indeed we

saw long end yields go up. And there's this question that Andrew Bailey said yesterday the BOE Governor Bank of uh England governor saying that, look, there is this concern about the economy. The economy might slow. It's kind of the quiet thing that not many central bankers are saying out loud. So you know, while they're on this project of dialing back and and easing, getting rid of the easing that they had done over the pandemic, I mean, there's a chance that hurts the economy and that's not

good for risk assets. Yeah, certainly that was a sentiment we heard from Lisa Ange Saunders, from Charles Schwab that the market might not be fully pricing in the risk of recession at this point. We're speaking with Ben Laidler last hour. He's looking ahead to the jobs report later this morning, the piece the data coming out next week. Are we in line for more volatility on economic data? I think so. I I think honestly it's just going

to be volatile from here. One. Liquidity is is pretty low, and I don't think we really have a great grasp of central banks right now. Economists have really struggled to get a lot of these data points right um. Too much criticism over the past two years, and if we can't really grasp what the common data is going to be.

We're struggling to kind of understand how central banks are doing this, and I think we've gone into this period underestimating the power that the FED, that the b o E, that central banks around the world have in terms of moving these markets. So I think that's only going to continue as we get data releases. Bloomberg's Danny Burger on this flat market on a week basis. Danny, always great talking with you, Bloomberg television anchor and markets correspondent, Danny Burger,

Thank you, Danny. This is the Big Take, the best of Boomberg's in depth, original reporting from around the globe. Really fast moving story that's caused a lot of outrage among investors. This is so fascinating. The market shutdown in a way it's never done before. That's gonna have consequences

for years to come. The Big Take on bloom Bird Radio to the six and Wall Street now in our Big Take story this morning is about the right hand man next to the world's richest man, the fixer who handles Elon Musk's fortune and in many cases, his dirty work. Bloomberg's Ben Stubbles is with us now from more on this Big Take story, Ben, good morning, tell us more about Jared Birchall and I think, yeah, Jared Burchell, he's an interesting individual. He's forty seven year old man foreman,

Morgan Stanley banker. And yeah, as you say, he deals with everything the personal affairs of the world's richest man that that has ranged from it as he sort of hinted too earlier, hiring a private investigator over the lawsuit that even must faced and one I have to say, and recording it, which is scuba expert, a pedo guy.

And it also includes the dealing with Wall Street Banks, for example, over the Twitter takeover and actually helping to actually get extra individual investors such as Oracle Corps Larry Ellison to help finance that deal as well. So you can sort of see the scope of the affairs. That's this thing. The thing. I'm Karen Moscow along with in Nathan Hagar, and we're just about three hours away from the open of US trading. Time for the five things you need to notice start your day. Brought to you

by Interactive Brokers. Interactive Brokers charges Martin loan rates from zero point a three percent to one point three percent rates subject to change. Learn more at ib k R dot Com slash compare. The first futures are lower after back to back days of volatile trading. The market surged Wednesday and then came yesterday sell off. The NASDAG dropped five percent and the S and P slipped more than

three and a half percent. And investors today will react to the April jobs report media and forecasts for a gain of three hundred eighty thousand non jobs in a three and a half percent unemployment rate. Megan Green is

Global chief Economist at Kroll Or. Importantly, unemployment is probably going to take down even further, and crucially, I think the participation rate will take up as workers jumped back into the labor force and Kroll Global Chief Economist Megan Green spoke with Joe Matthew on Bloomberg Sound on Catch the show weekdays at five pm Easter and on Bloomberg Radio and stick with the Bloomberg throughout the morning for

complete analysis of the job's your poor to Labor. Secretary Marty Walsh joins us at five am Wall Street Time on both Bloomberg Radio and television. All right, Karen turned into the White House. Now. President Biden met with a group of labor organizers yesterday, including a former Amazon worker who led a drive for a union on Staten Island. That worker, Christian Smalls, spoke about the meeting with Bloomberg's

Emily Chang. Know, it was great to see that he still recognizes that, you know, we have to have some regulations with the company as far as union. Former Amazon employee Christian Small spoke with Emily Chang on blue Burg Technology. That program airs weekdays at five pm Eastern on Bloomberg Television. You can also listen to it as a podcast on Apple, Spotify and other platforms. Well. Nathan, Politics also and focus overseas. First Lady Joe Biden. We'll meet with US troops and

displaced Ukrainian families in Eastern Europe this weekend. In Ukraine, civilian evacuations our plan from Aria Pole as hold out fighters battle Russian forces and the steel plant. And in COVID Newscaren it's another blow to Johnson and Johnson's vaccine. US regulators are placing limits on the shot. Bloomberg's Ranita Young joins US Live with more. Good morning, Rnita, Good morning Nathan. The FDA is limiting the use of the J and J shot two adults for whom other vaccines

are not medically appropriate or accessible. The agency is also allowing those who would otherwise not get immunized against the virus to take J and J's single shot vaccine. The FDA made the decision after investigating reported cases of blood clots and people who have taken the shot live in New York. I'm Ranita Young, Bloomberg Breaker nat to thank you.

That's the five things you need to know to start your day, brought to you by Interactive Brokers and futures this morning are lower SNP futures down about seven points down, futures down nineteen, nasday futures down thirties six, the ten year treasury down ten thirty seconds. He'll three point oh seven per cent, and they yield on the two year

two point seven two percent. And non nex scrude oil is up two point two percent of two dollars thirty eight cents and a hundred ten dollars sixty five cents of barrel. Straight ahead, your latest local headlines, plus a check of sports, and this is Bloomberg. Thanks Karen sixty three on Wall Street. Rain in fifty eight degrees in Central Park and westbound Route three is still closed by the meadow Lands for an accident investigation. Details coming up

in Traffic. First Michael bar with more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. It would be the largest rent increase for New York City apartments in about ten years. A preliminary vote by the New York City Rent Guidelines Board last night proposed the hike for rent stabilized departments. It proposed a rent increase of two to four for one year leases and a four to six percent increase for

two year leases. Neither tenants nor landlords were satisfied with the outcome. Tenants say it's too much, landlords say the hike is not enough. The final vote is expected at the end of May. Connecticut Democratic Governor Need Lamont signed a law designed to protect people who provide an abortion and are then sued in another state you know twitter message. Lamont says it was a bill he was eager to sign.

I think you've heard a lot about what's coming out of the Supreme Court and a preliminary ruling that looks like they may be on the edge of a ending a woman's right to choose and ending a Roe v. Wade. That's not going to happen the state of Connecticut. Not as long as I'm here, though. Politicians are going to get between you and your doctor. You make the choice. The law is set to take effect on July one.

The measure was prompted by a law in Texas that allows private citizens to take civil act and to enforce its ban on abortion. Meanwhile, New York Governor Kathy Hokel, who says anyone who needs access to care will be welcomed with open arms in the state. The reality is just like a punch in the nose. I mean, people are saying this could actually happen in a matter of weeks, so it was an extraordinary development. I think this is his turned the political world upside down. Governor Hokel spoke

to ABC. Karine Jean Pierre will replace Jen Saki as White House Press Secretary, becoming both the first black person and openly LGBTQ person to hold the position. Saki spoke about her principal deputy, I'm just so grateful to have had Karin by my side um for this over the last fifteen months, and I just can't wait to see her shine at the podium. Jen Psaki's last day is May thirteenth. It is home, sweet home for the four astronauts who spent six months orbiting the International Space Station.

It's been an absolute honor to support you on your mission. A durance crew and thanks for flying space Sex. He's up. Please. The crew aboard the SpaceX Dragon capsules splashed down in the Gulf of Mexico just off the Florida coast shortly after midnight Eastern time. Global Needs twenty four hours a day on here and on Bloomberg Quick Take, powered by more than hundred journalists analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg, Nathan. Yeah, that's some Kevin

to move freely about in. Thank you, Michael. Just about six thirty six on Wall Street. Here's John Stashower the

Bloomberg Sports that day, Nathan. The Rangers were already having a strong season when they acquired two players just before the trade deadline, and last night Andrew Cops scored the first goal in Frank Petronto the last one in between goals by Ryan Strom, Chris Crier and r Timmy Panaer and Rangers came back from that triple overtime loss in Game one, they beat the Penguins at the Garden five

to two. This game three periods, not six, so Igors Sterkin made thirty nine seves, not seventy nine like you had the other night. Game three Tomorrow night in Pittsburgh, Colorado one in overtime for a two nothing lead. On Nashville, Florida beat Washington, Dallas out out Calgary. Both those series were tied at one. The last eight hundred and fifty seven times in a Major League team went to the ninth and a trailing by six runs or more. Their

record oh and eight hundred and fifty seven. But the Mets did something they've only done twice before, never since nineteen ninety seven. They went to the night trail in the Phillies seven to one, and they scored seven runs on eight hits and one eight to seven. Francisco Lindor got things going with the two run home had great team win, extremely special. UM the way everybody believed in each other, UM pushed each other, counting on each other special for sure. UM. You know, UM wins like that

they got up throughout the course of the year. And they're they're huge, and the US for a world club. Brandon nimbos two run double tied the game, and then Nimbo scored the go ahead run on Starley and Markte's double his second hit of the and and Phil's manager Joe Girardi said afterwards, this is as tough as a get. Yankees, winners of eleven last twelve back home tonight to left Garrett Cole on the mount against Texas. NBA playoffs resumed tonight with a prayer of Game three's Miami and Phoenix

going for three nothing weeks. John stars were Bloomberg Sports Nathan all Right, John, Thanks six thirty seven on Wall Street. Time to take a look at stock some of the names moving in the pre market. Bloomberg Radio and TV Markets correspondent Kritty Gupta is with us this morning after a very volatile week. Creaty, I see you're watching PC stocks after a big move out of China. Yeah. I mean, listen, we were talking about tech stocks all week long. But

this is interesting. This isn't necessarily a sentiment move or a fundamentally driven move. This is something coming out of China, and it's kind of I wouldn't want to say, unsettling. But it's interesting about how the read through into American computer stocks or how clear the read through is, I should say, Nathan, let me just talk about what what I'm trying to say here. China ordering government and state

firms to dump foreign PCs. So the computer systems that are sold by a lot of these mega tech names think Dell, think HP, think Microsoft, that are essentially bought by the Chinese government, I should say, governments around the world. Of you're using a computer, it's probably made by an American company. Well, China is saying they want to get

rid of them completely, any foreign PCs. It's essentially the biggest move or the most aggressive effort so far to eradicate key overseas technology, really talking about national security as kind of the reason. But when you do that, they're looking to replace eventually at least fifty million PCs on a central government level alone. Nathan. This doesn't even take into account the regional governments and other computer systems. So

this is a pretty big move fifty million PCs. So you are seeing a read through into some of those American names that are going to get hit by this. HP for example, down eight tenths of one percent. The tickers hp Q, DELL, d E, l L down two point six percent. Also seeing a move with some semis names like a m D Advanced micro Devices down six tenths of one percent. Adobe also on that, given that as a software company that exists on a lot of

these PCs down up just shrive two percent. A d b E is your ticker there, and Microsoft as well, m s FT down about half a percent. Nathan, of course you've been talking a lot about the stock plummet over the last day or so, but oil is of surging this morning. What's that doing for oil names? Well, it's surging too. And you know it's interesting. A lot of people are saying, if you're gonna hop out of stocks, you're gonna hop out of bond, where are you going

to put your money? Is it just cash in this inflationary environment? And the answer is commodities. Of course, that demand continues, so you do see higher oil prices. They believe one O nine on w T I the last time I checked, and that is having a read through into some of the biggest oil canaves, I should say Occidental for example, O x Y is your taker one and a half percent x on mobile as well. X O M is your taker up eight tenths of one percent.

And remember when you see a massive stock sell off, energy tempts to be uh the least affected, at least in the last couple of months, seen as an inflation hedge. And like you said, Nathan, following those commodity prices, Yeah, is if one O nine word enough right now in West Texas intermediate creedy, it's one ten fifty nine for a barrel on the NIMEX Greedy, goopt to Bloomberg Radio on TV Markets correspondent getting ready for another very busy

trading day. And as we look at stocks as a whole ahead of the Friday morning open and ahead of the jobs report, futures moving lower. We have SMP futures down ten points, STAFF futures down fifty two, and NASTACK futures are lower by fifty points. Tend your treasury down not in thirty seconds the yield three point zero seven percent. This is Bloomberg Bloomberg eleven three oh weather. Occasional rain

with eyes in the low sixties today. The rain will continue tomorrow with highs and the low fifties and showers possible from others day as well, with a high in the upper fifties right now 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. He's a Bloomberg Business Flash and I'm Karen Moscow. This update is brought to you by b and Y

Maillen's Pershing Learned. Why the world's most sophisticated wealth management and institution firms rely on Pershing to help them improve profitability, create efficiency, attract talent, and manage risk at Pershing dot Com and Futures are following to get to the first word breaking newsdesk for today's morning call, and here's Bill Maloney. Bill, good morning, and good morning, Karen. Modest losses in the US futures after yesterday's plunge without futures down fifty nine

points has to be dropped. Thirteen deck features declined by sixty one the US ten year old at three point eight percent, Gold is up six Oil trading higher, but Bitcoin is down by point seven percent. Shanghai dropped two point two percent overnight, while eup markets are in the red led by one percent losses in France. Back in the US on the Economic Frinday thirty, the U S April jobs report, and after the bellast night shake Shack

you want Calms sales A missed estimates regarding earnings. This morning, Signa raised its outlook Indian News. A person familiar said that Peloton is seeking to sell a stake of and wrapping things up. eBay was cut to hold at c f R A at they cut the neutral at Iowa and Wayfair cut to neutral over Red Piper Live from the first of Breaking News desk. Boo maloney care all right, Bill, thank you, and to hear live breaking news over here Bloomberg type squawk on your terminal SCU A w u

K and that's a Bloomberg business flash. Now here's Michael Barrow with more on what's going on around the world. Michael, Karen, thank you very much. The nine Supreme Court justices have been given extra security as general threats against them have increased. It comes just a few days after Politico reported elite draft opinion showing the Conservative majority is likely going to

overturn Reale v Wade. The office of Ukraine's President says about five hundred civilians from Maryupol were evacuated in the most recent operations organized by the u N and Red Cross. In the NHL Playoffs, the Rangers beat the Penguins five two to even their series at the Game of Peace. The Capital's lost to the Panthers. That series also even at a Game of peace. In baseball, the met Scenarios one,

the Red Sox, Nationals and Giants lost. Global news twenty four hours a day on it or and on Bloomberg Quicktake power by more than twenty seven under journalist and analysts in more than one twenty countries. I'm Michael bar this is Bloomberg caeron a right, Michael, thank you. At A six forty nine on Wall Street. We turned to news and science and technology now at the Bloomberg n j i T STEM Report, brought to you by New

Jersey Institute of Technology. N j i T is dedicated to bolstering support for female and minority students pursuing careers and high paying STEM industries. Learned more at n j i T DOT E d U and now Here's what's making news and science, Technology, engineering, and math. U S regulators are strictly limiting who can receive Johnson and Johnson's COVID nineteen vaccine to do a rare but serious risk

of blood cloths. The Food and Drug Administration says the shots should only be given to adults who cannot receive a different vaccine or specifically request to J and J's vaccine. The decision is the latest restriction to hit the company's vaccine. In December, the Centers for Disease Control and Prevention recommended using the Maderna and Visor shots over J and J's

because of its safety issues. Space x brought four astronauts home with a midnight splashdown in the Gulf of Mexico, capping the busiest month yet for Elon Musk's taxi service. Musk Company has now launched twenty six people into orbit in less than two years since it started ferrying astronauts for NASA. Eight of those twenty six were space tourists. And China has ordered government agencies and state run companies

to get rid of their foreign made personal computers. It's one of Beijing's most aggressive efforts yet to eradicate overseas technology. The move could result in fifty million FOURIGN PCs being dumped that's a Bloomberg and j I t Stem report. Nathan, Okay, Karen, thank you. We are live from the Bloomberg Interactive Brokers studios, where it's coming up to six fifty one on Wall Street Time now to check what's going on in VC.

Some of the tough stories in our nation's capital include First Lady Jill Biden heading to Europe in a show of support for Ukraine, President Biden heading to Ohio to tout a new industrial renewal plan, and Jen Saki handing the podium to a history making new White House Press secretary. Next, also making news Democrats and Republicans jockeying for position six months before the mid term election. Let's get more now from Bloomberg Government reporter Emily Wilkins with us from the

nation's capital. Emily, good morning. Let's start off with what Democrats are doing. It seems like they're really trying to jockey around the abortion issue. Now, Yes, Nathan, I mean this is something that Democrats see as a really a way to uh motivate their base to get out and to turn out in November. And you can really see that in the lawmakers who are running in some of

these most competitive races. Um, you've already seen fundraisers go out, emails go out to supporters are really sort of talking about this leaked row decision and calling on people to to turn out and to support. And I think the big question, Nathan, of course, is what role this is going to play overall. Uh, certainly there are a number of Americans who very much care about this issue. Um, if they think will polling shows that about seventy that there should be uh some or anne or only a

few limitations when it comes to abortion access. They do support abortion rights. But at the same point, there are other bigger pressing issues like inflation, like gas prices, like the state of the economy, and so those all might factor into this election more so than what we see with this road decision. It will be interesting to see over the next six months how this issue potentially factors

into the control the fight for control over Congress. But in the meantime, of course, Republicans are preparing for the possibility that they could reclaim the majority. And I know you've been looking into how that could potentially set up a leadership fight. Yes, I mean that's something that's certainly

been talked about. Uh. If you remember a number of years ago, Kevin McCarthy was in line to get the speakership and then he was blocked in part by the House Freedom Caucus, that group of very conservative, sort of furthest right on on the ideological scale, members of Congress um and that group is bulking up again ahead of the mid terms. They've endorsed a number of candidates, their

members are criss crossing the country fundraising. But we actually had one of the Freedom Caucus founding members, Congressman Jim Jordan's um on Bloomberg's sound on I think, just a couple of weeks ago, and he said that he is supporting McCarthy for speaker at this time should Republicans win

the majority. And when I spoke with him for the article that is out today, he mentioned that he felt like the Republican conference is more unified than they've been in the past, and by that he means that they've become more conservative, sort of more in the mold of this far further to the right Freedom Caucus. And I think that's definitely sort of signals the dynamics of what we're going to be having with a potential Republican House

majority in uh, next year. UM. There's certainly more centrists and more moderate members of the Republican Conference, but I think a lot of members out there, you know, that they have shifted further to the right as they've seen Republican voters go ahead and also shift in that direction. All right, let's shift to what's happening at the White House. UH. Starting off with UH. First, Lady Joe Biden leaving the

White House this morning on a mission to Eastern Europe. Yes, Joe Biden is going to be visiting uh F NATO allies in the region. She's going to be meeting with refugees from Ukraine. She's not going to be going to Ukraine herself. But this really continues a slate of high profile visits that we've seen from administration officials UH to

UH to that region. Remember you saw a Secretary of State, Secretary of Defense go ahead and visit Ukraine as well as you saw speaking Nancy Pelosi in a House delegation there last week. UM, And so this is kind of just continuing the pattern. We still don't know at this point if President Biden might wind up making a trip. UH. You know, with Pelosi's trip that that wasn't announced until she was already over there for safety concerns. UM, and

we're gonna be paying, of course attention. The fact that Jill Biden is over there, is Jill Biden is over there, is just another signal that the administration realizes the importance of actually sending its officials to the region and having people on the ground, uh, even if it's not in Ukraine, just in surrounding countries, speaking to refugees and bringing attention to this crisis. Well, in the White House travel schedule today, of course, Emily, President Biden is going to Ohio with

a focus on the economy. Yes, so it's gonna travel to Ohio to day to launch what's being dubbed as an industrial Renewal path and this is going to be aimed at increasing uh, the use of three D printing and other technologies for suppliers. And you've got companies like Lacky Martin and Honeywell who are really backing this push. All should also note that Ohio is a political battleground state.

This November, They've got a competitive UH Senate race that's going to be between Democrat Tim Ryan, his only a house member, as well as Trump backed j. D Vance. He's a he's a marine. He's most famous for being the author of Hillbilly Elegy, and he won a very competitive primary just this past week, um over seven Republicans who looked to be in the lead until they failed to get Trump's endorsement. Just thirty seconds left here, Emily, But big change coming in the White House press room,

a historic one. Yes, we're going to be having the first black, first LGBT press secretary. Uh Jen Saki is stepping down from her role. We knew that she was going to be doing this, and Katherine Jean Pierre, who has already done a number of briefings already sort of with the Biden press team, is going to be stepping up to that role, doing the daily briefings and really sort of being the face of the White House. Bloomberg Government reporter Emily Wilkins with us from Washington, d C,

the face of Bloomberg Washington coverage. Thanks for this, Emily, good to talking with you. As always. You and read more at Bloomberg dot com or on the Bloomberg terminal. Listen to Bloomberg Radio in Washington at Bloomberg and one oh five point seven FM h D two and stick around for much more coverage from Washington, d C. We have the jobs report for April coming out at eight thirty Wall Street time. We'll be getting a live reaction from Labor Secretary Marty Wall. She'll be speaking with us

on Bloomberg Radio and television. That's coming up at five Wall Street time, just about an hour after the release of April jobs. Right now, SMP futures are down sixteen points, now futures down eighty five, NASDAG futures lower by seventy five points. Bloomberg Surveillance is next the Tom Keene, Jonathan Farrow, and Lisa Abramowitz, Karen Mosstown. I'm Nathan Hagar. This is Bloomberg