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tv   Bloomberg Surveillance  Bloomberg  April 13, 2022 8:00am-9:00am EDT

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>> it really jumped the rails in terms of growth and inflation. >> we have the peak of inflation and are likely to see things come off. >> the broader picture there is not too much that has aggressively shifted. >> these inflationary pressures mean central banks will have to respond. >> the federal reserve will raise rates until something breaks. lisa: literal nuts and bolts of inflation, the readthrough in earnings. this is bloomberg surveillance.
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jonathan ferro is on vacation. kailey leinz drew the short straw of being with us. we get a confluence of different developments, front and center earnings that portrayed the uncertainty by inflation. tom: in the epsilon is like nothing i've ever seen, the uncertainty is massive. you'll see that in the observation of gina martin adams. the conference call that we will have with jp morgan in a moment, conference calls over the next six weeks are everything. lisa: they are, and right now the signal being red is negative, even if actual internals are positive. jp morgan is down 1.9% even after announcing $30 billion a share buybacks.
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tom: i saw citigroup talking about share buybacks at apple. instead of saying it will be gloomy or optimistic on what we see on those conference calls, i will be sector group specific and say some sectors challenged, others, let's go. lisa: it's a really important point. delta came out with earnings, their shares fly more than 6% ahead of the market. i keep looking at that and just watching the shares tank. delta is a unique story. kailey: robust recovering demand international and business travel as well. it is this narrative of moving on from the pandemic crisis into one that may be pandemic caused, inflation. no longer talking about covid related challenges but those buzzwords that we will hear on conference calls, inflation,
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wages, supply chains, all of that is what we will be looking for this season. lisa: everyone talking about the reopening, wanted to get back out, which is why it was so shocking to see the incident in brooklyn. trying to get back to normal and here we are with another crisis in a city already beset by the pandemic, budget crisis. it feels like why do we have to go back to another crisis? tom: we are parsing it, as all others in the media, between a suspect and person of interest. they are conflicting and confusing. the different comments from the mta, and mayor adams will be with us. i will quiz him on the surveillance cameras that didn't work, but also on the immediate news that he and the new york police department and fire department have, as well.
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an important conversation at this moment of crisis in new york city. lisa: less than half away from ppi inflation data, so a stew of events that we are trying to keep track of. in the market is a weakening as we head toward the open as people assess the uncertainties. the s&p down less than .2%. the nasdaq holding in a little bit better, a quarter percent. the euro gaining a touch but the dollar is really ascendant. really interesting to see that crude is getting a lift even though you are seeing some estimates of slowing demand and a more even balance of supply and demand. sam stovall have been trying to make sense of it. the degree of uncertainty
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over at cfra. what are you focused on in the data given the earnings coming out painting a very bifurcated picture as far as how they are dealing with inflation? sam: i think we are getting the news that they are experiencing bottlenecks and inflation was primarily a concern for the first quarter earnings reporting season. i think we did see a peak in inflation with the march data. our expectation is that the 8.5% headline cpi will come down to about 5.4% by the end of the year. also the 10.5 number we are looking for on ppi will also be coming down quite sharply, also because of easier year comparisons. tom: let me take it to a sector
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basis right now. how discreet are the sectors of the standard & poor's 500 now? is it all boat sinking or is there separation? sam: there really is a separation right now certainly in the near term, looking at a rolling 200-day moving average relative strength. there is a definite leaning toward the defensive areas, leadership and consumer staples, energy, materials, utility areas. because a rising interest rates and a negative correlation between the 10-year yield and p/e ratios, we are seeing an awful lot of pressure being put on communication services, consumer discretionary, and information-technology area. kailey: talking correlation to rates, higher rates should be helping the banks. we have not seen that play out your to date. all of these stocks under pressure into earnings season. jp morgan reported this morning.
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how do you weigh the risk of financials and recession possibly coming down the line hurting loan growth. when is your thesis on that? sam: we are neutral on group right now. our believe is if we are looking at a flattening to inverted yield curve, how other banks make money on this net interest income environment? we saw today with j.p. morgan chase that trading was good but investment banking was down, also questions about inflation, will we have problem with consumers being able to repay their loans? i think there are a lot of questions with financials, and that will continue to put pressure on the group. lisa: every time someone comes on, a strategist looks at the uncertainties and comes out with all the potential changes on the sliding scale. what is your biggest conviction
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at a time of unprecedented uncertainty? sam: biggest conviction is that prices will fluctuate. lisa: [laughter] really? that feels like a copout. sam: we will experience downward pressure in the overall market. the rally we got recently was driven by defensive's, not cyclicals. we also didn't have capitulation take place at the bottom on march 8. i think we are due for some sort of lower pressure that will end up with a capitulation selloff before i feel more confident about the second half. volatility up 61% in the first quarter, usually about 40% higher in midterm election years. that is coming through again. kailey: volatility has not been limited to the equity or bond market. commodities have been wild, oil. i hear from strategists that that is where you want to hide, hedge with exposure to commodity
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tied equities. how confident are you in the ability of those hard assets to play that role given the volatility we are seeing? sam: i'm pretty confident that we are likely to see continued upward movement for equities in the energy space. expectations are for more than 250 percent increase in operating results for this first quarter. also looking for 40% gain in revenues and profit margins that are above 10.5%. good in that area. materials expected to see a 34% rise in earnings. 16.5% gain in revenues. profit margins up about 13%. we are expecting to see these inflation hedges continue to do fairly well. tom: sam stovall, greatly appreciate it on the beginning of earnings season. it is not just about the banks.
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i miss john so much, it is terrible. capri never looked so good. while he is gone, seriously, four standard deviations on the 2/10 spread. it is not the end of the world but what a reversal from curve inversion. lisa: it tells you something, big short squeeze. that is what all the strategists were saying yesterday. how many people were betting on that lightning yield curve, the expectation that we will get inverted yield curve imminently as the fed over titans, and then all of a sudden as people look at quantitative tightening, that changes, and how much of that shows the fragility of positioning right now than any conviction on the longer term horizon. tom: the jp morgan call is underway. i guess the stock is
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deteriorating a little. kaylee, you have been following it this morning. the conference calls, a good showing people tune in. kailey: everyone wants to know what these banks have to say because they have a real view on the economic picture. we are hearing from the cfo night now. talking about nickel. the stock is down 3.5%. tom: they are grilling these guys on nickel. kailey: they are a huge player in the market. tom: we will continue here. red and green on the screen. the vix back above 24. where is the 2/10 spread. stay with us. this is bloomberg. ritika: keeping you up-to-date with news from around the world.
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the biden administration in preparing a military aid package worth roughly $750 million for ukraine. the president can transfer from stockpiles without congressional approval in order to speed up delivery during an emergency the u.s. have provided more than $2.4 billion in military assistance to ukraine since president biden took office. police in new york are searching for a person of interest after a shooting at a brooklyn subway stop. no suspect has been caught. detectives are looking for a man named frank james. police do not know if he was the shooter. in the u.k., inflation jumped more than expected last month to a 30 year high. an annual rate of 7%. higher inflation is on the way. this month there will be a 54% increase in the energy price cap. black rock resilient to the plunge in stock markets.
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investors continue to pour money into the company's long-term fund. net inflows totaled $114 billion. earnings were better than expected while revenue just missed estimates. next week, passengers on u.s. airlines in public transit look at the chance to travel without a mask, that is if the federal government sticks to his current plan. president biden is being urged by officials to allow the mask rule to end. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm ritika gupta. this is bloomberg. this is bloomberg.
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>> everything changed when russia invaded ukraine. that caused a need for finland to have a discussion about our own security choices. also discussion about nato membership that we are having right now. we are giving today to the parliament the paper that will analyze different options for finland. tom: extraordinary comments from the prime minister of finland. we heard from sweden before that as well. scandinavia and finland giving
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serious study to leaving neutrality and joining nato and the european union in different forms. we have done everything we can to speak to experts and to people who have lived so much of continental europe and this new war. it's our honor to speak to nina khrushcheva, professor of international affairs with the new school. we don't have time to go into the story of your family coming out of the death of i believe your grandfather in world war ii, but we can speak to you about your academic work at princeton, the mind of vladimir putin. you have studied putin and his affair not with russia and the soviet union of khrushchev, but the russia and the soviet union
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of stalin. how does vladimir putin look at the early soviet union? nina: thank you very much. he thinks it was an interruption of great imperial history when the soviet union was trying to become part of its own self, as stalin put it, a country within its own nation, socialism, communism within one country. i disagree with a lot of experts who say that he wants to re-create the soviet union. he actually wants to go back into history 1000 years. the only -- one of the reasons he is interested in stalin, he was a gatherer of land, such as catherine the great, peter the great. he sees khrushchev as someone who gave away those lands.
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if you need to be very brutal and firm and very angry at the world to get that land, putin will be that. tom: mr. khrushchev was affiliated with poland. in the news this morning is finland. i refuse to believe that vladimir putin will not focus on finland given his heritage of leningrad and st. petersburg. what is the symbolism of this new independence of sweden and the border of finland? nina: originally the russian said we are not afraid of finland and sweden becoming a part of nato because we have a good relationship with them. i think the tone is changing. what is important here is putin is trying to prevent nato from spending east, in fact, may have made more expansion in the east.
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that should really give them pause. on the other hand, what i also know about putin, once you challenge him, he will challenge back. i think it's about time for sweden and finland to think about nato. if putin gets angry, he gets angry, and we have seen it in ukraine. lisa: does this end with regime change in russia? nina: this is terrifying words to say. we don't utter those words. no, i don't think it does. it may get less toxic, and puti n is toxic. now we see the security forces, fsb, putin, they are one and the same. even with stalin, they were on parallel tracks.
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the security forces worked for him. now putin is the security force. in the sense, even if the main hydra is gone, the system will remain. maybe they will be slightly better relationship with the outside world, but for the russians, it does not look good inside. kailey: let's talk about inside russia. does domestic feeling within russia, a, have a bearing on the decision-making, and, b, what is the feeling at the moment? nina: at the beginning it was such a shock on february 24. more than 50% of the country was just terrified, horrified. you remember a lot of people went to protest. then the state regrouped and said any word of opposition now became a crime.
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everything is a crime. my niece was arrested three times, stopped and asked why you are here when your passport show that you live in a different part of moscow. it is like that. it is very stalin-esque right now. also with great propaganda on tv, we, russia, are liberating our ukrainian brothers. now about 80% support this special operation. there is a lot of patriotism. one of the parts is because sanctions are not just financial and economic. they are cultural, societal, humanitarian. russians have no other choice but to rally around the flag. tom: we saw vladimir putin yesterday in the far east of russia. is he healthy? nina: a lot of rumors.
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he does not look sick to me but people say that the reason he went to ukraine falling off the cliff so quickly is because he is rushing for something. i don't know that but there are rumors. tom: thank you so much for joining bloomberg this morning. professor nina khrushcheva at the new school, her heritage across all many decades of the soviet union and russian federation. an extraordinary conversation about a moving story. lisa: what is interesting is the grip that vladimir putin has over his security apparatus and the idea that you cannot divorce the two in the same way that you had in previous administrations. it raises the issue, how does this end? tom: we will see. michael mckee has entered the studio. we will be looking at ppi. red and green on the screen.
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s&p futures now negative three. stay with us. the mayor of new york city in about 20 minutes. good morning. ♪
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tom: bloomberg surveillance. good morning, everyone. the mayor of new york will be with us in about 15 minutes, an important conversation as we are looking for a suspect and person of interest after the brooklyn shootings yesterday. economics yesterday, inflation, michael mckee has a different series this morning. mike: inflation is still with us. ppi for mark showing a stronger-than-expected gain of 1.4% on the month. the forecast was for a 1.1% gain. last month it was up 0.9%, higher than the initial result. on a year-over-year basis, ppi for final demand comes in
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unchanged. tom: no idea what that number means. mike: take out food and energy, the core rate is up 9.2% on the year, much stronger than the 8.4% last month. the other thing to look at, the index for goods versus services, index for final demand goods up to .3% in march, services up 9%. goods in the cpi declined in march, as services rose. but that is not the case in the pipeline. tom: ppi, you and i are old enough to remember when this was a huge deal. is it a huge deal again? mike: no. it basically contributes to the ongoing believe that we are in an inflationary cycle. yesterday, tom barkan strengthen
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his view, saying we should move quickly to neutral, joining the jim bullard camp. tom: what have you learned about the duration of this inflation when you look at core six, ppi 9. what is your sense of this duration of inflation change? mike: looks like it will take quite a while to bring it down. tom: like when the red sox start winning? mike: let's hope they start picking up the pace a little bit sooner than inflation. lisa: we were looking at what that number would be for ppi final demand. it did come in at 11.2%. the expectation was 10.6%. we are seeing markets respond somewhat in the way you would expect with yields up slightly. not a massive reaction but s&p futures the rays gains. we are looking at a market with new inflationary dynamic affecting the pipeline. 11.2%.
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can you put that in perspective? mike: it is the most since 2010, which is better than the 1981 number from yesterday, although they changed the ppi calculations around that time so we don't go as far back. it does suggest there are still pipeline pressures which does not surprise anybody given the fact that we are seeing all kinds of interruptions to supply lines, interruptions to agriculture from the war in europe. a lot going on that pressures prices. one other number i wanted to mention today, the mba mortgage applications is not something we follow on a daily basis. it is very high frequency data. down another 1.3% last week. what is interesting about it, as expected, it falls as rates rise, but more and more people,
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25%, are switching into adjustable-rate mortgages. that is because they are a percentage point cheaper right now than the fixed rate mortgage, but over the next couple of years, if the fed follows tom barkan and jim bullard's advice and we end up at 4%, is this a bit by the american people that the fed will be able to bring inflation down and will be cutting rates before things reset? tom: there will be a third inflation series that he will dive in on as well. a change perspective on the american economy. kathy bostjancic joins us now. thank you for joining us from oxford economics. what has changed for you on the duration of high inflation in the last 24 hours? kathy: happy to be with you. the numbers just confirm our views that we have had for a while now. inflation is intolerably high,
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and you are hearing that from fed officials. that is why they are saying we need to get to neutral quickly and move to restrictive. we will debate whether the peak in consumer prices is in, whether that is march or may, we think april, but the real issue is how quickly does it decelerate. there, most believe it will be much more gradual than previously thought. we still see a headline inflation is still above 5% by the end of the year. a bit of a reprieve but still really high and uncomfortably high for the federal reserve. lisa: can you help us understand the connection between ppi and cpi? the prices that consumers pay in stores when they go out to eat, versus prices that producers have to pay, and how much that directly gets passed through to future inflation that people feel in the grocery store or when they go on vacation?
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do we have a sense of how direct, but the time is for the transmission? kathy: great question. what we have seen in this business cycle that is different from the prior decade, corporate america has strong pricing power. if we went back 5, 6 years, wholesale prices would have gone up, but corporations would have had a hard time passing it on to consumers and it would have eroded profit margins. now we are not seeing that. i know you been speaking a lot about earnings the past few days, we will get the next quarterly earnings data rolling out, but up until this point earnings have been quite good. that is helping to fuel the equity market. corporate america has pricing power. kailey: are we starting to reach the limits of that? bed, bath & beyond disappointing, facing inflationary pressures, supply chain headwinds. the company says they see a
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slowdown in consumer demand. if demand starts to deteriorate, consumers are less tolerant of higher prices, is that the point we are at now? kathy: we may be, and that is the critical point of the cycle. we know that we are late cycle, but how late, how much pressure on corporate profits? if you see input costs arising as cpi data suggests, we know we'd gains are still high, if companies are no longer able to pass it on as easily to consumers, it will start to bite into corporate profit margins. no way around that. we may be reaching that point. the consumer still looks like they are in good shape but they don't have that fiscal stimulus. the checks that were given out a year ago are gone and now you have to rely on private wage gains to carry you through, and the excess savings. the question for us when we
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forecast, how much of that two point $7 trillion worth of accumulative savings does the consumer rely on? lisa: we are also talking about and inflation surge stemming from commodities, often talked about as transient. how much of that is changing in an era where we seem we are de- globalizing and these shocks are having the same impact even though they are different in nature? kathy: that is something that could play out over the medium to long-term. it is a real potential game changer to the backdrop. globalization really brought in disinflationary forces, capped overall price gains. if that is changing, and it looks like it may be, that is a different scenario. it is hard to say exactly where oil prices or copper will play out, but what we can say, that
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disinflationary impulse could be behind us. tom: kathy bostjancic, thank you. two reports on inflation. lisa, you said the final demand inflation of 11%. i don't even know what to do with that. lisa: we don't have data that goes back that far. this series goes back to 2010, but it is the highest since then. while it is not that long, think about the acceleration from the already accelerated levels that we saw back then because of the pandemic disruptions. shock upon shock. when the price this in not as temporary but more permanent? we will talk about that coming up with michael purves. tom: he is very good on pacific rim, as well. lisa: it is an important point but it highlights this new moment. remember when central banks were
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worried about weakening their currencies to keep their economies a float? that has been shifted because of the inflationary backdrop. that is the narrative we see playing out in earnings as they worry about that inflation more than anything. tom: the back half of the show is on the 30-year option. lisa: we are going to blow up the rest of the day and just talk about auctions. what is the level of a yield when looking at inflation? tom: what are we learning on the jp morgan calls? the stock was south off the call. kailey: down 3.6% as the analyst call is now underway. giving some color on equity underwriting being hurt in america. emea, investment banking related that disappointed. when it comes to the loan loss provisions, that is when it comes back to that inflation issue. $1.5 billion.
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a massive jump as the biggest factor tractor hedge risk around inflation, geopolitics. jp morgan will not be alone in that. interested to see how this shakes out for the rest of the banks on that issue. tom: let me do a data check here as we launch toward a conversation with the mayor of new york city. red on the screen. the vix now above 24. global wall street today, certainly a weaker yen has given a response from the bank of japan. the 10-year yield is back to 2.73% off of ppi data. coming up, a conversation with the mayor of new york. ♪ ritika: keeping you up-to-date with news from around the world.
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police are looking for someone they call a person of interest in the worst attack in the history of the new york city subway system. 10 people were shot and 13 others were hurt in a early morning attack. detectives are searching for frank james. they don't know if he was the shooter but he was found at the scene of the attack and a u-haul van that james rented. president biden has wrapped up his condemnation of russia's invasion of ukraine now describing the actions as genocide. the president said that lawyers would officially make this termination. the u.s. is preparing a package of 750 million dollars of military aid to ukraine. janet yellen will mourn governments that sitting on the fence of the international effort to punish russia, she says that the coalition of sanctioning countries will not be indifferent to actions that undermine the sanctions. the sanctions are not motivated
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by one country's foreign policy objectives. shares of delta airlines is rising. a strong rebound in summer bookings is helping overcome rising fares. the ceo says delta has seen record sales heading into the spring. lvmh post strong revenue growth in the quarter, sales up 23%. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm ritika gupta. this is bloomberg.
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>> i am committing the full resources of our state to fight this surge of crime, this
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insanity that is seizing our city, because we want to get back to normal. it's been a long and hard to years. that is what we crave, a sense of civility and normalcy. this is what the mayor and i will continue to work toward. tom: the gentlelady from buffalo, kathy houck all the governor of new york with her comments on crime front and center in the city. we welcome all of you on bloomberg radio and bloomberg television, across the nation and around the world to a conversation with eric adams, the new york city mayor. captain of new york police department as well. he has been making the media rounds this morning. this day after this warmer, it is simple, on wnyc and the recent minutes, you shifted from calling it a person of special interest to now a formal suspect. you know the distinction.
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is mr. james a suspect? mayor adam: yes, he is a suspect, based on the briefing from my law enforcement officials, based on the evidence that we were able to accumulate. he has now been upgraded to a suspect. we are asking all new yorkers to assist us in the apprehension. please do not approach him. if you see him or you know his whereabouts, please notify law enforcement. tom: mayor, through the bloomberg abilities, abc has just announced "new york city's subway shooting suspect frank james in custody." that is according to abc. can you tell us what you and all of your staff have learned about mr. james in the last six or seven hours? mayor adam: this is moving, extremely fluid. there is a host of evidence that we have been recovering.
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the nypd, fbi, as well as our state law enforcement entities have all collaborated together. i cannot say enough about the fast work that you are witnessing. they had to piece together the case from the van's arrival to the city, the devices, things that we collected. they are doing a great job bringing this person to justice. tom: i want to talk about what we will do about crime, as governor hogle said. you know the numbers. i would say you are arguably the most qualified politician in the nation with your experience from years ago to where you are now to talk about this. first, on cameras, amendments and civil liberties and all of that. london is covered with cameras after terror events. is this the tipping point where new york city -- 1/5 of the cameras in london -- begin to
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monitor the public like london? mayor adam: i've been talking about this since i took office in january. my deputy mayor of public safety went across the globe to see how we are protecting human beings around the globe. we are not going to sit back and allow this technology to exist and not protect the people of the city. we will continue to explore it. kailey: mayor adams, you also put more police forces into subway station to protect the people of the city. given this is just one in a series of events that have unfolded over the last year during the pandemic even in subway stations, acts of violence, clearly that failed yesterday. i know you say you have given yourself an incomplete on crime in the first 100 days, is that incomplete looking more like a failure? mayor adam: we should be clear, we have been here before as new yorkers.
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i often talk about the 1980's when i started with the transit police, ironically. i'm aware of what it takes to turn around generational poverty, generational crises that are in our city. we cannot ignore the guns. the nypd, my administration has not failed. we have taken almost 1800 guns off the city since i took office. tom: i don't mean to interrupt but i know you have to go to an important day, the announcement from abc that mr. james is in some form of custody. mayor adams, you are expert in the study of gangs. on january 4, you showed up at a press conference and said we have to do something about gangs. three dead in the last 24 hours, not the headlines like brooklyn, but around new york.
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what are we going to do about these gangs that pull these kids into crime and violence? mayor adam: it is called precision policing, not throwing out a wide net, having a precision approach to those who are pulling triggers in our environment gangs. that is at the heart of our crisis. kailey: reports from abc, frank james now in custody. can you confirm that for us? mayor adam: i am here on the air with you right now. i am pretty sure that apprehension had taken place by the time i sat down. we will make that conversation -- confirmation with my nypd officials. tom: greatly appreciate it. mayor eric adams of new york city. we are awaiting shelly banjo, i would new york bureau chief. she and her team have been on top of the story with a national
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bent. really something to see that abc headline, mr. daines reportedly in custody. kailey: as we understand, no longer a person of interest, now the suspect in the shooting that took like yesterday. we also understand from previous remarks at the mayor made this morning, the assumption at this point, no indication that the shooter was acting in coordination with anyone. it seems like he was acting alone, so it raises the question whether the threat to the five boroughs of new york is over at this time. clearly, there will be stepped up security in stations throughout the city today. tom: the camera question that i asked the mayor, i was stunned in my research this morning. the dominance of china with surveillance cameras. i don't think there is any surprise there, we all know that in our travels to china. but after that, it is the
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dominance of london. delhi a little bit as well. london has almost five times as many cameras as what we see in new york. as we spoke to mayor adams, you wonder if this will be a seachange moment for how we monitor with modern technology. kailey: these are questions that have been raised in the last 24 hours since the shooting that took place during rush hour. people now have to commute back in on this wednesday morning. it raises the question, given this most not an isolated event in terms of the crime on new york city transit systems, what are the broader ramifications of a new york that is trying to bring people back out of the pandemic work from home era? where does new york go from here? eric adams starting to answer those questions for us. tom: i mentioned the january 4 meeting. let me make clear, he is a newly minted mayor.
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out of nowhere, he showed up at an impressive -- important press conference on gangs. there has always been a pride that maybe new york city didn't have the gang structures of other cities around the nation. kailey, you have to believe that will be front and center in the coming days. kailey: not just in new york city. eric adams and his remarks last night frames this about a national gun violence problem in america, largely in cities across america. it is not just about the local response, state response. what is the federal government's role in this? the biden administration took action on ghost guns earlier this week. how does the administration move forward in this moment? tom: it will be interesting to see the federal tie-in, you have
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to wonder how that is stepped up. what i find so tragic is this brooklyn affair of yesterday and the other shootings around the nation in the last recent days, and there it is, the new york post, buried in all the media of three dead, a large number wounded overnight. what is scary or are the dead, and the geography of the new york post article was six locations of violence. kailey: it speaks to the point that this is just one incident in a broader scheme of rising crime in new york city. felony crimes up 44% year to date. it is already april. on mass shootings across the country, 19 mass shootings, defined by four or more people shot and injured, have taken place across the country. this is not an event that can be viewed in isolation. tom: i mentioned in the
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conversation with the mayor, i did editorialize, the first time kailey leinz has seen me editorialize. read the mayor's wikipedia, whether you agree with his politics or not, it's an extorted every testament to coming out of really abject poverty in brooklyn, struggling, screwing up, including being a gang member. and then eric adams got his act together, really starting as a traffic cop for new york city, moving on to become captain of the new york police department. let me do a data check. kailey, pick up on your comments. kailey: we have seen risk sentiment rolling over. futures are flat if not lower on s&p 500. in the context of everything else going on, it is earnings
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season. jp morgan moving to the downside after misses on investment banking, big leg up on provisions on loan losses. $1.5 billion on that. the bond market, we are dealing with an 11 handle on producer price inflation in the u.s. 11.2% in march. not a lot of action in the bond market. 2.73 on the 10-year. tom: one of the great joys of doing this, i have a team that is behind me that is not a normal entourage that we normally have. it is 1900 reporters. we can parse out the people grinding out journalism who write piercing notes and questions. shelly banjo did that for me earlier this morning. i was stunned at the acuity of your notes overnight. give me one thing that we learned. shelley: the city is on edge, this is a pivotal moment, and
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the mayor is trying to figure out how to respond to this. also to get people to go on the -- kailey: if in. they had been arrested. abc is correcting that. it was a mistake. they are breaking the news that he is a suspect, not just a person of interest. abc is now saying that. tom: that is an important revelation, to say the least. this is your fault, shelly, the immediacy of modern news is appalling and we correct as we go. >> that is correct. it adds to the anxiety of keeping people on edge. this is not a city that feels at ease, at the moment.

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