April 11, 2024 • 18 mins
On today's podcast:
1) Traders See Fed Waiting Until After Summer to Cut as Yields Soar
2) US Sees Imminent Missile Strike on Israel by Iran, Proxies
3) Biden Administration to Issue Rule Closing Gun-Show Loophole
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio news. Good morning, I'm Nathan
Hager and I'm Karen Moscow. Here are the stories we're
following today.
Speaker 2 (00:16):
Karen Willcom has been restored to stock in bond markets
for now. After the hotter than estimated inflation report for March, yesterday,
a gauge of global bond suffered it's worst performance since
February of last year. Investors now bet the FED will
cut interest rates just twice this year. Neil Dutta, partner
at Renaissance Macro Research, talked about the difference between the
(00:36):
Consumer Price Index and the feds preferred inflation gauge, the PCE.
Speaker 3 (00:41):
You know, there are differences of scope between the CPI
data and the pc data, and the CPI data is running,
you know, over a full percentage point higher than PCE.
That's about twice almost three times what's normal, and so
you know, in some respects, I do think the market
might be overstating how important CPI is for the FED
reaction function, but you know, it's a bad number.
Speaker 2 (01:02):
Renaissance Macro Research partner Neil Dutta now expects the FED
to cut rates twice this year, with the first move in.
Speaker 1 (01:08):
July, Well Nathan, Former Treasury Secretary Larry Summers says cutting
rates would be a mistake. In fact, Summer says a
rate hike may be necessary.
Speaker 4 (01:18):
You have to take seriously the possibility that the next
rate move will be upwards rather than downwards, and anything
could happen. Markets could crash, the indicators could turn down.
But on current facts, a rate cut in June, it
(01:38):
seems to me would be a dangerous and egregious error.
Speaker 1 (01:43):
Former Treasury Secretary Larry Summers estimates the chance of a
rate hike in the fifteen to twenty five percent range.
Here the full conversation on the Bloomberg Wall Street Week
podcast downloaded on Apples, Spotify, or anywhere else you get
your podcasts.
Speaker 5 (01:57):
Karen.
Speaker 2 (01:57):
Investors now turn their attention to another key inflation reading,
the March Producer Price Index. Let's get a preview from
Bloomberg's Michael McKee.
Speaker 6 (02:06):
The Producer Price Index is forecast to come in cooler
than yesterday's Consumer price index, and that may matter more
to the Fed than the CPI. The reason the Fed's
target is based on a third inflation measure, the Personal
Consumption Expenditures Index or PCE. It tends to run lower
than CPI. Some sectors in the PPI feed directly into PCE.
(02:27):
For example, while CPI measures what consumers pay for medical care,
PPI and PCE measure what insurance companies pay. So today's
numbers matter for analysts and central bankers as they try
to understand the direction of inflation. A strong PPI would
reinforce pessimism about rate cuts a week one would revive hope.
Michael McKee Bloomberg Radio.
Speaker 1 (02:48):
Right, Mike, thanks well. Interest rates are very much in
focus overseas. Later this morning, the European Central Bank makes
a policy decision, and we go to London and get
a preview of the Bloomberg's You and Pots You in
Good Morning.
Speaker 7 (03:00):
Karen and Nathan boringcoss Across the euro Area are set
to be held at a record high today of four percent,
but investors are expecting the ECB to further lay the
ground for cuts to get underway in June. Euro Area
inflation is within sights of the two percent target, but
President Christine the Guard has indicated they'll need more confidence
in the data, particularly wage growth, by the middle of
(03:20):
the year. That decision comes at seven fifteen Eastern time
in London. Immune pots beenber radio.
Speaker 2 (03:26):
Okay ewan, thank you. Oil is on the rise, and
speculation hostilities may be escalating in the Middle East. Source
to say the US and its allies think an Iranian
strike on Israel is imminent. We get more from Bloomberg
Israel Bureau chief Ethan Bronner.
Speaker 8 (03:41):
This is in retaliation for an attack that is presumed
to have been done by Israel about ten days ago
in Damascus on a diplomatic compound in which seven people
were killed.
Speaker 9 (03:54):
The key point there is that the two of.
Speaker 8 (03:57):
The people were Revolutionary Guard command as to say, Iranian
commanders of militias in Lebanon in Syria.
Speaker 2 (04:06):
Bloomberg's Ethan Bronner says Israeli officials have publicly threatened Iran
that if it hits Israeli soil, Israel will hit Iranian soil.
Speaker 1 (04:13):
Well back here in the US, Nathan, the Biden administration
is cracking down on unlicensed gun dealers, and we get
the very latest at Bloomberg's John Tucker, John, Good Morning.
Speaker 5 (04:22):
And Karen.
Speaker 9 (04:23):
The Biden administration is issuing the rule designed to close
a gap that allows gun buyers to avoid background checks.
It targets the so called gun show loophole by expanding
the definition of who must obtain a license to engage
in firearm sales. The regulation specifically singles out sellers online
and at gun shows, where the background checks are often
(04:44):
not conducted. According to a White House official, more than
twenty thousand individuals engaged in unlicensed dealings could be affected
by the changes. The President has seized on the issue
of gun violence to contrast himself with former President Trump
and Republicans. In a State of the Union address in March,
mister Biden sattled his administration's efforts to address gun crime,
including establishing the first ever Office of Gun Violence Prevention.
(05:08):
John Tucker, Bloomberg Radio.
Speaker 1 (05:09):
All Right, John, Thanks at a disclaimer, Michael Bloomberg, founder
and majority owner of Bloomberg Radio parent Bloomberg Lp, donates
to groups at support gun control.
Speaker 5 (05:19):
All Right, Karen.
Speaker 2 (05:19):
In Legal News this morning, Donald Trump has lost his
third try in a week to delay his Manhattan hush
money trial. Bloomberg's Ed Baxter has the story.
Speaker 10 (05:29):
The week legally has had his attorneys trying to delay
the trial on charges that he faked business records to
cover up a sex scandal. The so called hush money trial.
His attorneys say they want a delay based on several
rulings that have been made, including waiting until after the
final ruling comes down on immunity. How this latest ruling
could be heard by a panel of five appellate court
(05:50):
justices going forward, but it would be nearly impossible for
the court to hear and rule before the trial's beginning.
Jury selection is scheduled from Monday the fifteenth at Baxter bloom.
Speaker 1 (06:00):
Radio, all right ed, thanks well. Staying in Manhattan. There
is not as much of a hush in New York
City office buildings. The return to work rate is now
close to eighty percent of where it was before the pandemic.
We get more from Bloomberg's Doug Prisner.
Speaker 11 (06:13):
The data come from placer Ai. They show how Wall
Street firms including Goldman, Sachs and JP Morgan helped drive
New York City's return to office rate. A similar rebound
was also seen in Miami, with a rate of seventy
eight percent last year. The return to office rates for
these two cities were the highest among seven major US markets.
They were also above the national average of about sixty
(06:35):
three percent. San Francisco saw the greatest growth in office
visitations in twenty twenty three. However, it still lagged behind
other major cities with an RT rate of forty five
percent in New York. I'm Doug Prisner, Bloomberg Radio.
Speaker 2 (06:49):
Okay, Doug, thanks for watching shares of Alpine Immune Sciences
on some deal news this morning. They're up thirty six
percent in early trading. The kidney drug developers being bought
by Tech Pharmaceuticals for four point nine billion dollars in cash.
Speaker 1 (07:07):
And it is time now for a look at some
of the other stories making news in New York and
around the world. For that, we're joined by Bloomberg's and
Michael Barr. Michael, good Morning, Good morning, Karen.
Speaker 12 (07:15):
House.
Speaker 5 (07:16):
Republicans have failed to advance a bill that would renew
the Foreign Intelligence Surveillance Act FISA, gives law enforcement the
authority to monitor suspicious interactions with foreign adversaries. After former
President Trump posted kill FAISA. Nineteen Republicans voted against the
procedural vote, despite House Speaker Mike Johnson urging them to
(07:37):
approve it. Republican Congressman Dan Crenshaw, Texas says he believes
the laws renewal is necessary for the US to monitor
bad actors all over the world.
Speaker 2 (07:48):
You lose our collection on our adversaries. That's one of
the most seriously bad things that I can think of happening.
I've never been worried like I'm worried now.
Speaker 5 (07:57):
However, critics on both sides of the aisle saying that
Americans often get surveiled improperly because of it. The fallout
continues in the fight over a newly revived eighteen sixty
four Arizona law criminalizing abortion throughout pregnancy unless a woman's
life is at risk. The Arizona Legislature devolved into jeering
(08:17):
yesterday as Republican lawmakers shut down discussion on a proposed
repeal of the law. The Arizona Supreme Court cleared the
way this week for enforcing the pre statehood abortion ban
throughout pregnancy, without exceptions for rape or incest. Democratic State
Senator Anna Hernandez called the GOP bloc politically foolish.
Speaker 13 (08:39):
It's not about convincing somebody to have an abortion or not.
Speaker 14 (08:41):
That is their choice.
Speaker 10 (08:43):
This is about do we trust the people to make
the best decision for themselves, And we're saying yes, we do.
Speaker 5 (08:50):
A proposed ballot initiative may ask voters in November whether
to place abortion protections into the state constitution. New York City,
fighting back against people who steal packages delivered to residents,
city officials have now introduced new public delivery lockers. Each
locker can hold twenty five packages at one time. New
(09:11):
York Mayor Eric Adams New.
Speaker 14 (09:13):
Yorkers will be able to receive and send packages using
secure lockers on public sidewalks. The program is available to
all New Yorkers twenty four to seven and it is
the favorite four letter road of New Yorkers free.
Speaker 5 (09:30):
Currently, seven lockers are installed around the city, including in
Brooklyn and Hell's Kitchen. Global News twenty four hours a
day and whenever you want it with the Bloomberg News. Now,
I'm Michael Barr, and this is Bloomberg Karen.
Speaker 1 (09:44):
All right, Michael Barr, thank you time now for the
Bloomberg Sports Update with John stash Hour. John, good morning,
Good morning, Karen.
Speaker 15 (09:55):
There hasn't been a Master's without a drop of rain
since twenty eighteen, and ranged in the forecast for this
morning sounds like togat at least some of the opening
round in It is expected to be clear Skys the
rest of the weekend. The eighty eighth Masters, John Rahm,
the defending jam Scottie Sheffer won two years ago. Here's
the world number one on playing.
Speaker 13 (10:11):
That's the national I mean to me, it's just a
special place. It's kind of the mecca for us growing
up being you know, grown up here in the States
and you know, being Americans. I think this is the
tournament that we all look for, and to be here
on property every year is extremely special. And I mean
it seems like it all stands out. Everything has done
so well here.
Speaker 15 (10:32):
Yesterday's par three won by Ricky Fowler, no one has
ever won it, and then won the green jacket. They
were five holes and won in the event, and including
one by Gary Woodland, who's playing the Masters after undergoing
brain surgery. Last fall at the Stadium Marlin's with the Yankees,
five's too, Jake Berger a three run homer off Marcus Stroman,
John Carlos Stanton homer for the Yanks. Mets and Braves
reigned out in Atlanta. The Red Sox had a five
(10:52):
to nothing lead in the sixth inning, lost to the
Orioles seven to five. Twenty year old Jackson Holiday went
over four Big League debut for Baltimore. He's the son
of Matt Holliday. He's considered MLB's top prospect. Giants beat
the National seven to one. Cleveland top the White Sox.
The Guardians have brothers in their lineup, and Bow and
Josh Naylor both homeward in the fourth inning. Big NBA
(11:14):
game for first place in the West. Denver beat Minnesota.
Nikolaoa could scored forty one. The netsbeat Toronto one of
six to one oh two. The next play tonight in Boston.
Rangers trying to finish first overall. They host Philadelphia, the Islanders,
seeking a playoff for their home for Montreal. The WNBA
TV schedule is out. Thirty six of Indiana's forty games
will be on National TV. The Fever Expecutive Draft Caitlin
(11:38):
Clark on Monday, John Stashawer Blueberg Sports, Karen Nathan.
Speaker 1 (11:42):
All Right, John Stashauer, thank you. SMP futures down to
tenth seven percent, so our down futures Now's day futures
down about the same. In the ten year treasury yield
is that four point five six percent.
Speaker 5 (11:54):
Coast to coast on Bloomberg Radio nationwide, on Sirius XM and.
Speaker 10 (11:59):
Around the world on Bloomberg dot com and the Bloomberg
Business app.
Speaker 2 (12:03):
This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Well,
the third month was definitely not the charm on the
road to disinflation. The March Consumer Price Index did come
in hotter than expected, once again, keviny investors pushing back
bets on rate cut timing from the Federal Reserve. For more,
we're joined by City US economist Veronica Clark. Veronica, good morning,
(12:25):
Thanks so much.
Speaker 12 (12:25):
For being with us.
Speaker 16 (12:26):
Good morning, Yeah, thank you for having me.
Speaker 2 (12:28):
So is the road to disinflation still bumpy or is
this third in a row CPI hotness the new trend?
Speaker 16 (12:36):
Yeah, I mean I think most food officials will probably
still characterize this as bumpy. Of course, it will be
core PC inflation that matters most for the Fed, and
we'll see what that comes out today once we get
details of PPI data. But I think, you know, maybe
the hawks are getting a bit more uncomfortable and it
does kind of get harder to come to a consensus
(12:58):
to cut maybe as soon as June. But there are
a lot of uncertainties, of course, with all the other
data that we're going to get before June.
Speaker 2 (13:04):
Also, do you guys over at City count yourselves as Hawks,
So are you getting more uncomfortable yourselves?
Speaker 16 (13:10):
No, not necessarily. We're We're probably one of the more
dubvish forecasts out there right now. We think the Fed
is still cutting in June and then cutting every meeting
after June. So that is one hundred and twenty five
basis points of cuts this year. That's well more than
what's priced right now. But I think for us, you know,
we are trying to be more forward looking. We are
trying to assess the other types of data that we
(13:32):
might see over the coming months. You know, labor market
data that has been very strong, but some of the
details look a bit precarious, and I think the said
would be very dubvish if we know we're getting some
weaker labor market data.
Speaker 2 (13:45):
Yeah, first cut in June is looking more and more
like a bold call given the data that we have
seen so far. In some of the commentary that we're
hearing from the likes of Larry Summers, the former Treasury
secretary who was on Bloomberg yesterday, saying, maybe we they
hold out the possibility that the next move from the
Fed is a hike. I mean, how do you push
back against that?
Speaker 16 (14:06):
Yeah, I mean I think that is probably pretty unlikely.
I think at least Fed officials will see at least
that the current level of rates is restrictive. And we've
heard that most FED officials, certainly from fair Powell. And
so if you know, inflation is coming in a bit
hotter than comfortable and they're comfortable with they're not, you know,
getting that further confidence that they want to see. It's
(14:27):
not necessarily that we're talking about hikes again. They would
probably just lead rights elevated for a bit longer. We're
just talking about pushing out those cuts.
Speaker 2 (14:36):
What is it that's keeping these price pressures so sticky?
What are you seeing in the data that has inflation
where it is and has you still thinking that there
is still room for the Fed to make a cut.
Speaker 16 (14:50):
Yeah, I mean, we honestly do still see a lot
of stickiness and services inflation. So we've seen that for
a while in shelter inflation, which which should slowing at
some point and as we're getting into two later this year,
but a lot of the strength and yesterday's CPI data
with non shelter services. Actually about half of that strength
(15:11):
and non shelter services had to do with auto insurance,
which interestingly does not go into the Fed's preferred PC
inflation measure. But even in PC inflation, I think we're
we're still seeing a lot of stickiness to services inflation
and that has to do with, you know, a tight
labor market. We're still running wages that are around four
to five percent or so. That's a fit stronger than
(15:33):
you want to see to be consistent with two percent inflation.
So there is still some loosening to go. But I
think we do see the signs in the labor market,
details in demand for workers hiring that has really slowed down.
That leads us to think we are going into a
much looser label market.
Speaker 2 (15:52):
So we only have about thirty seconds left here, Veronica,
what are you expecting when it comes to producer prices
out this morning and whether that could change the narrative
that we're in this market.
Speaker 16 (16:01):
Yeah, this one one could be interesting. There's a couple
things to watch, you know, we're looking at the transportation
and the good kind of components of PPI data that
could be a bit stronger. We might see a stronger
headline PPI increase. But most importantly today, we're watching some
very specific components that go into our mapping of core
(16:23):
PCE inflation for March, and of course that's what the
said we'll care most about. We are expecting to see
some strength in components like medical services, certain financial services,
and that could mean that forecasters are expecting, you know,
a bit stronger core PCE even than we had in February.
We had a twenty six basis point increase in February.
(16:44):
We're tracking at around thirty basis points right now. That
could mean that we're just pushing these cuts further out
market continues to price outcuts. Yeah, but that might be
a little bit tree mature.
Speaker 12 (16:56):
This is Bloomberg day Break Today, your morning brief on
the store where he's making news from Wall Street to
Washington and beyond.
Speaker 1 (17:03):
Look for us on your podcast feed at six am
Eastern each morning on Apple, Spotify, and anywhere else you
get your podcasts.
Speaker 12 (17:11):
You can also listen live each morning starting at five
am Wall Street time on Bloomberg eleven three to zero
in New York, Bloomberg ninety nine to one in Washington,
Bloomberg one oh six to one in Boston and Bloomberg
ninety sixty in San Francisco.
Speaker 1 (17:24):
Our flagship New York station is also available on your
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Speaker 12 (17:33):
Listen coast to coast on the Bloomberg Business app, seriusxmb
iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager.
Speaker 1 (17:41):
And I'm Karen Moscow. Join us again tomorrow morning for
all the news you need to start your day right
here on Bloomberg Daybreak
Bloomberg Audio Studios, Podcasts, radio news. Good morning, I'm Nathan
Hager and I'm Karen Moscow. Here are the stories we're
following today.
Speaker 2 (00:16):
Karen Willcom has been restored to stock in bond markets
for now. After the hotter than estimated inflation report for March, yesterday,
a gauge of global bond suffered it's worst performance since
February of last year. Investors now bet the FED will
cut interest rates just twice this year. Neil Dutta, partner
at Renaissance Macro Research, talked about the difference between the
(00:36):
Consumer Price Index and the feds preferred inflation gauge, the PCE.
Speaker 3 (00:41):
You know, there are differences of scope between the CPI
data and the pc data, and the CPI data is running,
you know, over a full percentage point higher than PCE.
That's about twice almost three times what's normal, and so
you know, in some respects, I do think the market
might be overstating how important CPI is for the FED
reaction function, but you know, it's a bad number.
Speaker 2 (01:02):
Renaissance Macro Research partner Neil Dutta now expects the FED
to cut rates twice this year, with the first move in.
Speaker 1 (01:08):
July, Well Nathan, Former Treasury Secretary Larry Summers says cutting
rates would be a mistake. In fact, Summer says a
rate hike may be necessary.
Speaker 4 (01:18):
You have to take seriously the possibility that the next
rate move will be upwards rather than downwards, and anything
could happen. Markets could crash, the indicators could turn down.
But on current facts, a rate cut in June, it
(01:38):
seems to me would be a dangerous and egregious error.
Speaker 1 (01:43):
Former Treasury Secretary Larry Summers estimates the chance of a
rate hike in the fifteen to twenty five percent range.
Here the full conversation on the Bloomberg Wall Street Week
podcast downloaded on Apples, Spotify, or anywhere else you get
your podcasts.
Speaker 5 (01:57):
Karen.
Speaker 2 (01:57):
Investors now turn their attention to another key inflation reading,
the March Producer Price Index. Let's get a preview from
Bloomberg's Michael McKee.
Speaker 6 (02:06):
The Producer Price Index is forecast to come in cooler
than yesterday's Consumer price index, and that may matter more
to the Fed than the CPI. The reason the Fed's
target is based on a third inflation measure, the Personal
Consumption Expenditures Index or PCE. It tends to run lower
than CPI. Some sectors in the PPI feed directly into PCE.
(02:27):
For example, while CPI measures what consumers pay for medical care,
PPI and PCE measure what insurance companies pay. So today's
numbers matter for analysts and central bankers as they try
to understand the direction of inflation. A strong PPI would
reinforce pessimism about rate cuts a week one would revive hope.
Michael McKee Bloomberg Radio.
Speaker 1 (02:48):
Right, Mike, thanks well. Interest rates are very much in
focus overseas. Later this morning, the European Central Bank makes
a policy decision, and we go to London and get
a preview of the Bloomberg's You and Pots You in
Good Morning.
Speaker 7 (03:00):
Karen and Nathan boringcoss Across the euro Area are set
to be held at a record high today of four percent,
but investors are expecting the ECB to further lay the
ground for cuts to get underway in June. Euro Area
inflation is within sights of the two percent target, but
President Christine the Guard has indicated they'll need more confidence
in the data, particularly wage growth, by the middle of
(03:20):
the year. That decision comes at seven fifteen Eastern time
in London. Immune pots beenber radio.
Speaker 2 (03:26):
Okay ewan, thank you. Oil is on the rise, and
speculation hostilities may be escalating in the Middle East. Source
to say the US and its allies think an Iranian
strike on Israel is imminent. We get more from Bloomberg
Israel Bureau chief Ethan Bronner.
Speaker 8 (03:41):
This is in retaliation for an attack that is presumed
to have been done by Israel about ten days ago
in Damascus on a diplomatic compound in which seven people
were killed.
Speaker 9 (03:54):
The key point there is that the two of.
Speaker 8 (03:57):
The people were Revolutionary Guard command as to say, Iranian
commanders of militias in Lebanon in Syria.
Speaker 2 (04:06):
Bloomberg's Ethan Bronner says Israeli officials have publicly threatened Iran
that if it hits Israeli soil, Israel will hit Iranian soil.
Speaker 1 (04:13):
Well back here in the US, Nathan, the Biden administration
is cracking down on unlicensed gun dealers, and we get
the very latest at Bloomberg's John Tucker, John, Good Morning.
Speaker 5 (04:22):
And Karen.
Speaker 9 (04:23):
The Biden administration is issuing the rule designed to close
a gap that allows gun buyers to avoid background checks.
It targets the so called gun show loophole by expanding
the definition of who must obtain a license to engage
in firearm sales. The regulation specifically singles out sellers online
and at gun shows, where the background checks are often
(04:44):
not conducted. According to a White House official, more than
twenty thousand individuals engaged in unlicensed dealings could be affected
by the changes. The President has seized on the issue
of gun violence to contrast himself with former President Trump
and Republicans. In a State of the Union address in March,
mister Biden sattled his administration's efforts to address gun crime,
including establishing the first ever Office of Gun Violence Prevention.
(05:08):
John Tucker, Bloomberg Radio.
Speaker 1 (05:09):
All Right, John, Thanks at a disclaimer, Michael Bloomberg, founder
and majority owner of Bloomberg Radio parent Bloomberg Lp, donates
to groups at support gun control.
Speaker 5 (05:19):
All Right, Karen.
Speaker 2 (05:19):
In Legal News this morning, Donald Trump has lost his
third try in a week to delay his Manhattan hush
money trial. Bloomberg's Ed Baxter has the story.
Speaker 10 (05:29):
The week legally has had his attorneys trying to delay
the trial on charges that he faked business records to
cover up a sex scandal. The so called hush money trial.
His attorneys say they want a delay based on several
rulings that have been made, including waiting until after the
final ruling comes down on immunity. How this latest ruling
could be heard by a panel of five appellate court
(05:50):
justices going forward, but it would be nearly impossible for
the court to hear and rule before the trial's beginning.
Jury selection is scheduled from Monday the fifteenth at Baxter bloom.
Speaker 1 (06:00):
Radio, all right ed, thanks well. Staying in Manhattan. There
is not as much of a hush in New York
City office buildings. The return to work rate is now
close to eighty percent of where it was before the pandemic.
We get more from Bloomberg's Doug Prisner.
Speaker 11 (06:13):
The data come from placer Ai. They show how Wall
Street firms including Goldman, Sachs and JP Morgan helped drive
New York City's return to office rate. A similar rebound
was also seen in Miami, with a rate of seventy
eight percent last year. The return to office rates for
these two cities were the highest among seven major US markets.
They were also above the national average of about sixty
(06:35):
three percent. San Francisco saw the greatest growth in office
visitations in twenty twenty three. However, it still lagged behind
other major cities with an RT rate of forty five
percent in New York. I'm Doug Prisner, Bloomberg Radio.
Speaker 2 (06:49):
Okay, Doug, thanks for watching shares of Alpine Immune Sciences
on some deal news this morning. They're up thirty six
percent in early trading. The kidney drug developers being bought
by Tech Pharmaceuticals for four point nine billion dollars in cash.
Speaker 1 (07:07):
And it is time now for a look at some
of the other stories making news in New York and
around the world. For that, we're joined by Bloomberg's and
Michael Barr. Michael, good Morning, Good morning, Karen.
Speaker 12 (07:15):
House.
Speaker 5 (07:16):
Republicans have failed to advance a bill that would renew
the Foreign Intelligence Surveillance Act FISA, gives law enforcement the
authority to monitor suspicious interactions with foreign adversaries. After former
President Trump posted kill FAISA. Nineteen Republicans voted against the
procedural vote, despite House Speaker Mike Johnson urging them to
(07:37):
approve it. Republican Congressman Dan Crenshaw, Texas says he believes
the laws renewal is necessary for the US to monitor
bad actors all over the world.
Speaker 2 (07:48):
You lose our collection on our adversaries. That's one of
the most seriously bad things that I can think of happening.
I've never been worried like I'm worried now.
Speaker 5 (07:57):
However, critics on both sides of the aisle saying that
Americans often get surveiled improperly because of it. The fallout
continues in the fight over a newly revived eighteen sixty
four Arizona law criminalizing abortion throughout pregnancy unless a woman's
life is at risk. The Arizona Legislature devolved into jeering
(08:17):
yesterday as Republican lawmakers shut down discussion on a proposed
repeal of the law. The Arizona Supreme Court cleared the
way this week for enforcing the pre statehood abortion ban
throughout pregnancy, without exceptions for rape or incest. Democratic State
Senator Anna Hernandez called the GOP bloc politically foolish.
Speaker 13 (08:39):
It's not about convincing somebody to have an abortion or not.
Speaker 14 (08:41):
That is their choice.
Speaker 10 (08:43):
This is about do we trust the people to make
the best decision for themselves, And we're saying yes, we do.
Speaker 5 (08:50):
A proposed ballot initiative may ask voters in November whether
to place abortion protections into the state constitution. New York City,
fighting back against people who steal packages delivered to residents,
city officials have now introduced new public delivery lockers. Each
locker can hold twenty five packages at one time. New
(09:11):
York Mayor Eric Adams New.
Speaker 14 (09:13):
Yorkers will be able to receive and send packages using
secure lockers on public sidewalks. The program is available to
all New Yorkers twenty four to seven and it is
the favorite four letter road of New Yorkers free.
Speaker 5 (09:30):
Currently, seven lockers are installed around the city, including in
Brooklyn and Hell's Kitchen. Global News twenty four hours a
day and whenever you want it with the Bloomberg News. Now,
I'm Michael Barr, and this is Bloomberg Karen.
Speaker 1 (09:44):
All right, Michael Barr, thank you time now for the
Bloomberg Sports Update with John stash Hour. John, good morning,
Good morning, Karen.
Speaker 15 (09:55):
There hasn't been a Master's without a drop of rain
since twenty eighteen, and ranged in the forecast for this
morning sounds like togat at least some of the opening
round in It is expected to be clear Skys the
rest of the weekend. The eighty eighth Masters, John Rahm,
the defending jam Scottie Sheffer won two years ago. Here's
the world number one on playing.
Speaker 13 (10:11):
That's the national I mean to me, it's just a
special place. It's kind of the mecca for us growing
up being you know, grown up here in the States
and you know, being Americans. I think this is the
tournament that we all look for, and to be here
on property every year is extremely special. And I mean
it seems like it all stands out. Everything has done
so well here.
Speaker 15 (10:32):
Yesterday's par three won by Ricky Fowler, no one has
ever won it, and then won the green jacket. They
were five holes and won in the event, and including
one by Gary Woodland, who's playing the Masters after undergoing
brain surgery. Last fall at the Stadium Marlin's with the Yankees,
five's too, Jake Berger a three run homer off Marcus Stroman,
John Carlos Stanton homer for the Yanks. Mets and Braves
reigned out in Atlanta. The Red Sox had a five
(10:52):
to nothing lead in the sixth inning, lost to the
Orioles seven to five. Twenty year old Jackson Holiday went
over four Big League debut for Baltimore. He's the son
of Matt Holliday. He's considered MLB's top prospect. Giants beat
the National seven to one. Cleveland top the White Sox.
The Guardians have brothers in their lineup, and Bow and
Josh Naylor both homeward in the fourth inning. Big NBA
(11:14):
game for first place in the West. Denver beat Minnesota.
Nikolaoa could scored forty one. The netsbeat Toronto one of
six to one oh two. The next play tonight in Boston.
Rangers trying to finish first overall. They host Philadelphia, the Islanders,
seeking a playoff for their home for Montreal. The WNBA
TV schedule is out. Thirty six of Indiana's forty games
will be on National TV. The Fever Expecutive Draft Caitlin
(11:38):
Clark on Monday, John Stashawer Blueberg Sports, Karen Nathan.
Speaker 1 (11:42):
All Right, John Stashauer, thank you. SMP futures down to
tenth seven percent, so our down futures Now's day futures
down about the same. In the ten year treasury yield
is that four point five six percent.
Speaker 5 (11:54):
Coast to coast on Bloomberg Radio nationwide, on Sirius XM and.
Speaker 10 (11:59):
Around the world on Bloomberg dot com and the Bloomberg
Business app.
Speaker 2 (12:03):
This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Well,
the third month was definitely not the charm on the
road to disinflation. The March Consumer Price Index did come
in hotter than expected, once again, keviny investors pushing back
bets on rate cut timing from the Federal Reserve. For more,
we're joined by City US economist Veronica Clark. Veronica, good morning,
(12:25):
Thanks so much.
Speaker 12 (12:25):
For being with us.
Speaker 16 (12:26):
Good morning, Yeah, thank you for having me.
Speaker 2 (12:28):
So is the road to disinflation still bumpy or is
this third in a row CPI hotness the new trend?
Speaker 16 (12:36):
Yeah, I mean I think most food officials will probably
still characterize this as bumpy. Of course, it will be
core PC inflation that matters most for the Fed, and
we'll see what that comes out today once we get
details of PPI data. But I think, you know, maybe
the hawks are getting a bit more uncomfortable and it
does kind of get harder to come to a consensus
(12:58):
to cut maybe as soon as June. But there are
a lot of uncertainties, of course, with all the other
data that we're going to get before June.
Speaker 2 (13:04):
Also, do you guys over at City count yourselves as Hawks,
So are you getting more uncomfortable yourselves?
Speaker 16 (13:10):
No, not necessarily. We're We're probably one of the more
dubvish forecasts out there right now. We think the Fed
is still cutting in June and then cutting every meeting
after June. So that is one hundred and twenty five
basis points of cuts this year. That's well more than
what's priced right now. But I think for us, you know,
we are trying to be more forward looking. We are
trying to assess the other types of data that we
(13:32):
might see over the coming months. You know, labor market
data that has been very strong, but some of the
details look a bit precarious, and I think the said
would be very dubvish if we know we're getting some
weaker labor market data.
Speaker 2 (13:45):
Yeah, first cut in June is looking more and more
like a bold call given the data that we have
seen so far. In some of the commentary that we're
hearing from the likes of Larry Summers, the former Treasury
secretary who was on Bloomberg yesterday, saying, maybe we they
hold out the possibility that the next move from the
Fed is a hike. I mean, how do you push
back against that?
Speaker 16 (14:06):
Yeah, I mean I think that is probably pretty unlikely.
I think at least Fed officials will see at least
that the current level of rates is restrictive. And we've
heard that most FED officials, certainly from fair Powell. And
so if you know, inflation is coming in a bit
hotter than comfortable and they're comfortable with they're not, you know,
getting that further confidence that they want to see. It's
(14:27):
not necessarily that we're talking about hikes again. They would
probably just lead rights elevated for a bit longer. We're
just talking about pushing out those cuts.
Speaker 2 (14:36):
What is it that's keeping these price pressures so sticky?
What are you seeing in the data that has inflation
where it is and has you still thinking that there
is still room for the Fed to make a cut.
Speaker 16 (14:50):
Yeah, I mean, we honestly do still see a lot
of stickiness and services inflation. So we've seen that for
a while in shelter inflation, which which should slowing at
some point and as we're getting into two later this year,
but a lot of the strength and yesterday's CPI data
with non shelter services. Actually about half of that strength
(15:11):
and non shelter services had to do with auto insurance,
which interestingly does not go into the Fed's preferred PC
inflation measure. But even in PC inflation, I think we're
we're still seeing a lot of stickiness to services inflation
and that has to do with, you know, a tight
labor market. We're still running wages that are around four
to five percent or so. That's a fit stronger than
(15:33):
you want to see to be consistent with two percent inflation.
So there is still some loosening to go. But I
think we do see the signs in the labor market,
details in demand for workers hiring that has really slowed down.
That leads us to think we are going into a
much looser label market.
Speaker 2 (15:52):
So we only have about thirty seconds left here, Veronica,
what are you expecting when it comes to producer prices
out this morning and whether that could change the narrative
that we're in this market.
Speaker 16 (16:01):
Yeah, this one one could be interesting. There's a couple
things to watch, you know, we're looking at the transportation
and the good kind of components of PPI data that
could be a bit stronger. We might see a stronger
headline PPI increase. But most importantly today, we're watching some
very specific components that go into our mapping of core
(16:23):
PCE inflation for March, and of course that's what the
said we'll care most about. We are expecting to see
some strength in components like medical services, certain financial services,
and that could mean that forecasters are expecting, you know,
a bit stronger core PCE even than we had in February.
We had a twenty six basis point increase in February.
(16:44):
We're tracking at around thirty basis points right now. That
could mean that we're just pushing these cuts further out
market continues to price outcuts. Yeah, but that might be
a little bit tree mature.
Speaker 12 (16:56):
This is Bloomberg day Break Today, your morning brief on
the store where he's making news from Wall Street to
Washington and beyond.
Speaker 1 (17:03):
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Speaker 12 (17:11):
You can also listen live each morning starting at five
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Listen coast to coast on the Bloomberg Business app, seriusxmb
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And I'm Karen Moscow. Join us again tomorrow morning for
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