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00:00I'm Romaine Bostick and I'm Caroline Hyde. This is Bloomberg Markets the Clothes. Welcome to our special coverage. We are starting an hour earlier after several people were shot wounded inside a subway station in Sunset Park Brooklyn. Remain of course still an active shooter situation in New York City. Not though an investigation as terrorism for now. And based on what we know right now that shooter is still loose. We do know that as far as the victims of this there have been no fatalities just yet although at least 16 people were injured including at least five people who are still in critical condition though stable condition at least based on what we've learned from authorities. I think it's worth reiterating as our global audience joins us now to what Brooklyn is of one of the boroughs of New York a key borough and one in which people would have got on that subway that morning to come to work in Wall Street to come. But a 20 minute subway ride from where we sit right now in the heart of midtown over to where Sunset Park. That 36 subway station is people having gone in getting on their way to school on their way to work and the up ending of that moment for them. And of course. Right. A 30 in the morning. Most people on their way to work most likely here. And then we should point out that the train station where this occurred is deep in Brooklyn. But it is a major transit point a major point for transferring to from one train to the next. So the amount of the passengers the travel through the station either transferring trains or on a train itself is relatively high. We want to now of course bring in our experts on the ground and indeed who can bring us the analysis of what this means to a city such as New York City. Mayor Shelly Banjo is with us. Of course she is bureau chief of New York. And Covid Gupta who is on the scene right now for us in Sunset Park in Brooklyn. Talk to us about what this residential area is feeling like right now. Christine. Well there's definitely still a lot of nervousness in the air. I mean you are just now seeing the streets actually get cleared out to kind of resume traffic. But Caroline Romaine it's been a couple of hours and actually the police had create a 20 block perimeter around 36 street station for the exact reasons that you mentioned that this is a very prominent location especially in rush hour. This event occurred at 820 4:00 a.m. So a lot of fear simply about not just the people that were commuting to work but also the schools that are in the area just across the 36 street station. Carolina Romain a sunset high. You do actually have a high school that is still under lockdown for other schools. I said three other schools in the area that currently are remain in lockdown. One of the concerns here is even if you do get back to this residential area what is going to be the process with an active gunman on the loose to dismiss some of these students a critic kind of give us a sense here on the ground there of the amount of law enforcement and other authorities that have responded to this. The variety of agencies. So we get a better picture here of who's investigating this and how seriously they're taking. Yeah well to answer that we'll start off with what was actually used here because this wasn't just a simple gunshot move. This was also a question of smoke canisters as well smoke bombs on detonate devices. So you not only have the FBI and the police department have the fire department here. You also have several members of the Bureau of Alcohol Firearms and Tobacco. And essentially the shot that you're seeing right now is going to be of the school that once again remains in lockdown remain. Caroline you were continuously students essentially peer out of the windows teachers as well very clearly wondering what is going on. And like I mentioned earlier a very very heavy police presence that is just now abating just a little bit. Even with that you are seeing quite a lot of police presence not just here but across subway stations across Amtrak stations not just in New York but across the country as well. I believe reports that the Chicago subway stations as well. We're also seeing an increased law enforcement presence. I mean so notable that it was just yesterday the president Joe Biden announcing who the new head of the Bureau of Alcohol Tobacco Firearms and Explosives would be. And I think focus for us for a moment just how busy or not that particular subway station is proper compared to previous years because we're thinking the MTA currently that is somewhat on its knees in New York trying to get people back. How we're now seeing people returned to the office wanting to declare that New York City is back open for business back open for travel. And we're seeing now 13000 or so people getting on at thirty Sixth Street station every weekday. Is that going to be impacted somewhat Christi. Yeah it actually really isn't. And to your point Caroline you haven't actually seen a complete MTA reversal when it comes to amount of passengers that are commuting to work. So. One hundred percent that is your point. But even in New York City which is as densely populated as it is a kind of a lower Covid amount is still quite a lot of people. And that's really what the concern is especially because this subway point doesn't just connect to Manhattan but it also has three different subway lines the D train the end train and the R train all of which lead in to New York City. And one of the concerns here is this is also a subway station that a lot of people use to switch trains that Romain mentioned at the top of the block. So when the concerns here is this isn't necessarily an office neighborhoods you can't necessarily compare it in terms of parallels to previous attacks perhaps the twenty seventeen Times Square attack that was essentially put to rest. Those were the comparisons that were made before the commissioner came out and addressed this. But we really have to keep in mind this is a residential neighborhood and this is a spot where a lot of people are expecting to exit the subway cars. This was very clearly planned not in terms of just the gun shots but also in terms of the smoke canister used as a distracting mechanism. Still rattling nonetheless. Sit tight for one second. Critic Gupta on the ground out there in Brooklyn New York. We do want to go over to our bureau chief our New York bureau chief here at Bloomberg News. Shelly Banjo is in studio with us right now. And Shelly I do want to pick up where a critic left off here. The idea here that you have a new administration here in New York both in terms of the mayor as well as the governor. We did see the governor on the ground there. The mayor though was notably absent. Eric Adams. Yes said the mayor. This was completely out of character for him because over the last 100 days he has been at every single crime site. You know every time something happens a shooting a stabbing anything. The mayor has tested positive for Covid just a couple of days ago. So he's in isolation. He sent his first deputy mayor Lorraine Grillo in his place who opened up the press conference alongside Kathy Hochul and also sent a video message out. And it's going to go on a number of media appearances as well to talk about it. And just to be clear I mean Eric Adams has been incredibly prolific in terms of just being present whether it's whether it's a crime scene or even just other events going on in New York. He's sort of made this a hallmark of his administration of sort of being active and being there. He's also of course made crime a big focus of his administration in the course of his campaign. That's right. Adams rose to power. I mean he stoked his whole stakes his whole campaign on crime and fighting crime. And so he gave a series of interviews over the last month about you know did have I done an OK over the last over the first hundred days of my administration. And he gave himself a grade of incomplete. And clearly this is going to add to the concern among New Yorkers that he hasn't yet done what he has promised. Now no one can reduce New York City crime in 100 days that's for sure. But Eric Adams is saying he is trying to do it and this is not going to look good for that for that press. But I'm trying to do it to that point. Remain what was it in the first quarter alone we saw shooting incidents rise about 13 percent to 16 percent. We have seen an uptick but it's worth noting that New York is a far safer place than it was say in the year 2000. Yeah far safer place of course. But I mean we have to put this in context as well. Right. A lot of us have not really been on the subway at least at the levels that we were pre pandemic. There has been this big push to get everyone back into the office and presumably back on to mass transit. There's been a push of course to get more tourists back into the city as well. Shelley and I am curious as to how the administration sort of grapples with the optics of an incident like this. Combine that with other incidents that we've seen on our subway platforms. And make it clear to the people that they can be safe and traveling. I mean overall to your to your point overall crime has down is down at decades lows. However shootings in particular violent crime in particular has been up. And the type of high profile crime to get people really scared to go about doing everyday things like boarding the subway and going to school going to work. Those things are up. Those things grab the headlines and those things will drive or take away tourists and subway ridership. And so that's the worry here now these high profile events. And to hear the governor describe the governor and the police commissioner describe the scene of a man boarding a subway train unleashing a canister of gas and then shooting up a train that's just not something people think about or obviously want to have to confront on their daily commute. All right. Shelly Banjo is our New York bureau chief here at Bloomberg News. We'll get back to her I'm sure at some point later in the afternoon. And Christie Gupta who's out on the ground in Brooklyn New York keeping our eyes on this situation. A shooting on aboard a train early this morning about eight twenty 24 eight thirty a.m. New York time. We do know that 16 people have been injured in some form or another. Caroline and of course the police are now on the ground trying to find the shooter who is still on the loose. John Miller as we can see that deputy commissioner for intelligence and counterterrorism New York City Police Department telling people we've heard of course from Close Qichen. So the New York City police commissioner the forty fifth place commissioner we've heard from Lord Cavanaugh the first deputy commissioner as well and not to mention the heads the MTA and indeed the governor. Kathy Hochul. And we should point out too as far as the description of the suspect. We did hear from the new police commissioner John Sewell who did describe the suspect as a male black man five foot five with a heavy build so that he was wearing some type of green type construction that's in her words a gray sweatshirt. And at one point had donned a gas mask before what she said was opening a canister aboard this train which then filled with smoke. And at some point opened fire. We'll be covering this story all afternoon right here on Bloomberg. Welcome back. This is Bloomberg Television we are of course keeping an eye on the incident in Brooklyn New York but in the meantime though we are also keeping an eye on the markets as we always do. And of course it's been a very complicated picture for the markets with that CPI data here in the U.S. coming out a little bit earlier this morning. A lot of speculation now about the pace of rate hikes and of course about what direction equities and the rest of risk assets may go here. We want to have that conversation right now. We want to bring in Ben Emmons global market macro strategy managing director over at Medley Global Advisors. And Ben let's talk a little bit here about the inflation report we got this morning and whether it changes any of the calculus you have about the stability and I guess the direction of this market. Emily Chang doesn't change it. Percy obviously it was a RTS amount surprise for the market because the corn on NIKKEI about a bit softer and lower starts at the core even and inflation may start to be peaking. That's what you want to see. You see poor numbers change. But I think that this relief we actually are seeing today know we to take it with caution because the shock out of Ukraine is so enormous. Now if you take the data from Europe recently those months of change was huge like two to 3 percent. So I one point two month amount in a headline is is notable. And it does mean that inflation may not entirely have even though there's some statistical reasons for it. So I think this relief rallies for today. I'm not sure that's going to last. Given that the inflation pressures really high. Ben talk to us about how much confidence you have in the resiliency of a U.S. consumer right now and then demand that they have when you see of course consumer sentiment hit by things like inflation. I was just reading on a Bloomberg survey. Caroline that 84 percent of consumers are planning to cut back spending as a result of this high inflation. So that is a sign of that. Inflation is becoming what they say demand destructive. And we do have to keep in mind that consumers are vulnerable to this shock that came from this Ukraine crisis. And if you look at the real wages for today that was again more negative than previously. So I think it's it's definitely a worry because if inflation continues to stay high if the New York survey that came out yesterday shows that people expect the face to stay near 90 percent of the year has they have been the best predictors of inflation from here. I think consumers are going to be very cautious and that that's going to affect the economy. What about business spending then. Yeah they just caution you do you can tell from the chip they're spending on for example preseason and cheap stats immediately showing up there and if you get caution in the global economy about this conflict about what's happening there too. It is a business spending as well as consumer spending. I think you two go together remains. But I definitely think that there is a softening at least happening from this uncertainty coming from Ukraine as well as the market in China. Talk to us for a moment with your global hat on because as we do worry about. I mean on a day where we're consumed by the news that's happening in our city we have to think again about the war in Ukraine. We think about Covid over in China as well. How much of this ban is something that you're noting and that you're thinking about the opportunity cost of investing in the US vis a vis the rest of the world. Yeah I think that the U.S. remains actually a base to be in. You know we do deal with rising interest rates of commonweal. Interesting. I think you know the yield differential between U.S. and other markets is widening to a level that's becoming perhaps an attractive for the capital flows come in. Secondly we don't deal with an immediate recession. You earnings this week will show for the banks for example a big decline year on year. But technology uses exchange for all with earnings from here. I do think that that has an attractiveness is seen as very ratios are starting to normalize rates. But the uncertainty as you mentioned from Ukraine and from China is something that is very reminiscent from previous crisis episodes. It only could lead to major opportunity for for his return of the risk rally. It's just Dani Burger I think given that we just don't know what is conflict in Ukraine is going to play out given the way Putin is communicating overnight of continuing his operation. Ben I'd be remiss not to note that. Of course while we speak to you we still continue to look at the live pictures coming out of Sunset Park Brooklyn. Of course we have just had a major incident and still the whole city within an active shooter situation. You are man based in New York City. And I want to ask what is a tough question but an emotional one. But to a certain degree at the moment we're looking at an economy that is so important to the United States. And when we see yet another threat potentially to consumer confidence to the willingness to get back out there to be working to be spending to be looking at services and and indeed the way in which we want to resuscitate the city what do you make of it. And is there long term repercussions for you do you think. You definitely want to be careful obviously because you know they've they've ruled out this is an act of terrorism. But it is an unpredictable and sort of a random act perhaps. But it's something that you can encounter every day if you go to New York City. And now I think though that people probably generally connect the with maybe some of the violence that is happening. No pandemics have lasting infection aftermath facts. New York City has been really key as you say contributed to GDP. So you know cautions there is obviously not going to be impact as a result of this disease friendly venture may again follow. Good news. You can think of it as not like something that's happening nationwide. So I think Fortune is a state Asia when I look at it. I don't think she'd be really scared to stay indoors but just be careful. All right. Ben Emmons of Medley Global Advisors we thank him for his time. And once again keep an eye on the situation in Brooklyn. The shooter from that incident this morning about eight thirty a.m. New York time according to authorities is still on the loose. We have heard from the police commissioner of the FDNY and other authorities including federal authorities from the ATF that they are searching not only for that suspect but of course checking surveillance and other things to try to determine what the motive is. We should point out that the police commissioner said that they are not ready to declare a motive that they are investigating that. In the meantime we have heard from the mayor the mayor who is isolating at Gracie Mansion because of a Covid diagnosis. But he has been speaking to the media including with CNN he and his own words. And this is a quote. He is saying this is terror. And he said that it is time. It's premature to state exactly what happened here. He went on of course to talk about Caroline what he plans to do with regards to trying to come back as some of the broader issues of crime. Remember fighting crime was a hallmark of his campaign last year for mayor. And since in his first hundred days he has pretty much made this one of his primary talking points. Seven new anti-gun police units that he have announced of course and returned to what is called broken windows policing really trying to ensure that there is a quality of life factor that is upon the streets of New York and factored in by the policing. But there has of course been this uptick in violent crime that has been the central focus for Mayor Adams thus far since he took office back in January. And indeed we do see an unfortunate uptick in recent shootings particularly in the month of March and about 16 percent increase in March and year on year. So we continue to focus in on what are the statistics but also remain what the impact is on the city and those that live here. In addition to the broader crimes I mean we talk about what specifically happened on this transit system. Of course we know with a pandemic where so many people were born. We know that there were a lot of incidents reported particularly with homeless people on the subways. This became a big campaign issue. And then of course we there were so many incidents with regards to anti Asian crimes including people who were either pushed off the subway platform onto the tracks. Again something that has been very vivid here for all of us New Yorkers who have to travel through this city. And of course outside of the interview being given by Mayor Adams on CNN just now we have heard earlier from him in a video message about this very attack. Take a listen. The suspect in today's attack detonated smoke bombs to cause havoc. We will not allow Europeans to be terrorized even by a single individual. There are currently no known explosive devices on our subway trains and this is not being investigated as an act of terrorism at this time. We can also report that although this was a violent incident reportedly we have no one with life threatening injuries as a result of this case. The police commissioner of New York City the Erik Schatzker speaking just a little while ago at a press conference outside that 36 street station in Brooklyn New York. A shooting of course at around eight thirty a.m. this morning aboard a train car in which the police commissioner said a man entered that train car opened to canister smoke began to fill that train car and then a shooting occurred. Several people have been injured at least 16 people Caroline. We should point out too she is a new police commissioner. A new mayor. We have a new governor. We have a new ATF head. A lot of people who are relatively new on the job now facing what is an awful situation a horrendous situation which we're still in of course an active shooter situation we might add. The investigation is not being treated that of terrorism but motivations are still unknown. And we understand that they are not ruling it out. We've got to just paint the picture for our global audience that this is a leafy community over in Brooklyn of course around the key five boroughs of New York a passing commute of key lifeline. When you see the end the day the trains that come bring you into Wall Street bring you up into the Upper East Side within about half an hour on the subway stations right. Yeah a very vibrant community here. We did hear from the MTA CEO at that same news conference. He said the B and W service was still suspended. The other train line so running with some disruptions. I'm Romaine Bostick and I'm Caroline Hyde and this is Bloomberg Markets the Clothes. Welcome to our very special coverage. We are starting earlier of course after several people were shot. In fact we understand of course many wounded inside a subway station in Sunset Park Brooklyn remain. This is still an active shooter situation here in New York City an incident that thus far is not being deemed a terrorist attack but has not been acknowledged as to what the motivation is. And they're not ruling it out. But this is an incident that of course has upended the world of those that were commuting in from this particular subway system. We know it being the 36 street stop over in some punk residents which is a residential community. It's a residential community. It's also a community that's been going through a huge revitalization process with a lot of new development along that sort of Goannas Bay area and the channels the water channels over there the former marine terminals. And of course this train stop itself is a huge transfer point for a lot of people looking to get from Brooklyn into Manhattan. Some of those trains actually go all the way into Queens. So it's a huge hub for people. We do know that at some point at around a twenty four this morning a man did board that train headed for Manhattan. And at some point while that train was in motion he did open a canister smoke did fill the train. And at some point it is said that he began shooting people. That train then pulled into the 36 street station in Brooklyn where people then were able to escape. And we're told at least by what the police commissioner said it appears that the gunman also was able to unfortunately escape in that chaos. We understand of course mine is being lit for orange construction vest. He did indeed have a gas mask on at the time and wearing also dark blue outfit appeared to resemble that of a transit worker of course currently being treated all 16 patients 10 currently with gunshot wounds. Now let us get out to on the ground in Brooklyn. I'm pleased to say for the latest critique Gupta who is at the scene one amid a sun filled day in Brooklyn upended by this tragedy. What does it like on the ground at the moment. Pretty. Well we're actually seeing some of the police presence start to clear up in fact for the first time since we arrived. You can actually see the subway station the entrance the subway station actually open up and in clear sight. They did actually have that blocked off and really surrounded by police presence. Now you're seeing some of that actually declined a little bit. That being said they've also moved and oil opened up the roads in front of the subway station. That is a first since the attacks actually happened. They did create a 20 block perimeter. Now that is starting to be removed and really closed in actually. That being said the schools around here the shelter in place order still remains. And the restaurants the delis that would traditionally see a very active lunch hour. Those are actually closed at the moment. Yeah. Be good if you could try to talk to some of those people and see kind of how they're handling this. I am curious Christi that they given any update here with regard to allowing passengers down into that subway station and back onto some of the trains. Well like some of the delis and the restaurants that are in the area that's actually completely blocked off. You can't actually enter the subway station right now because the police presence that's also why you're seeing a lot of these trains diverted from the 36 train station where you're talking to the MTA for example. They're saying that some of the service when it comes to dealing on the line it has been revamped especially in the other parts of Brooklyn that were actually shut down. But as of this particular spot it's not being revamped is not being reused. And right now it's unclear what the timeline is. A lot of that Romania Caroline rests simply on the progress it had in tracking down the active shooter that remains at large. All right. And that's a good point here. Of course the shooter. We do know is still at large. Pretty good Gupta on the ground in Brooklyn New York. Now we want to go down to Washington with Annmarie Horden. And President Biden has been actually been briefed on the latest developments regarding that subway shooting Amari. I know we've been hearing from Jen Psaki the White House spokesperson. What do we know coming out of Washington. Well right now she's talking to reporters on Air Force One as the president is heading to Iowa. And she's yet to been asked specifically any more information regarding what the White House knows about what happened in Brooklyn. But here's what she said earlier on Twitter that the president has been briefed on the latest developments regarding the New York City subway shooting and that senior staff of the White House are in touch with Mayor Adams. And of course the police commissioner and I have white. Why what we're hearing obviously on the ground is all coming from a disseminating from New York. What we should note is that it does come a day after the president and this administration that many have been critical for the increase in crime which is taken under the Covid. What's happened under the Covid-19 pandemic was talking about trying to decrease violence by making sure they're going after these ghost guns which can be assembled at home and then go undetected. So this does come at a critical time as this administration is of course gearing up for midterm elections. And just on Sunday there was a new CBS poll when you asked about crime approval rating for the president was 39 percent disapprove. Sixty one percent. Mary with the perspective that in less than 24 hours ago that we were hearing on new gun regulation of course anti gun regulation coming from the president we thank you so much. Meanwhile let's continue to monitor this breaking news that bring you analysis. Jameel Jaffer is with us founder and executive director of the National Security Institute at George Mason University. Shery Ahn was a film associate White House counsel to President George W. Bush and formerly served on the leadership team of the Justice Department's National Security Division. His counsel to the assistant attorney general for national security. Exactly the sort of expertise that we need at this moment. And just your reaction thus far and how we see the response coming from what remain is pointed out to be a relatively new leadership team but still one that has reacted swiftly. Yeah you know Caroline Hyde it's a great question. I mean the real challenge here in New York is figuring out how to identify where this scene is where he's gone and whether he's part of a larger group. Right. We don't have any signs today that this is a larger terrorist. It appears to be a single person. He was clearly prepared for the incident putting on a gas mask you know putting out that smoke filled container. And it started he started shooting the people. It started to shoot people. But that is obviously the big fear in New York City is given all the places the subway goes. Given all location and city that could be attacked is this part of a larger effort. Mayor Eric Adams did a good job getting a handle on the situation. Gunnery Kathy Hochul also involved and the president now being briefed. So they're all looking at this. Try to figure out OK. What do we deal with here. What are the next steps for us. G.M. there's a broader issue here. And I'm wondering realistically how you create greater protections for transit systems not just in New York City but really nationwide. You get obviously you get on an airplane you go through a tremendous amount of screening you enter certain buildings. There's all types of checks and balances to make sure that the people entering are doing so in a safe and responsible way. So far it doesn't seem like there's been any sort of a reasonable way to sort of institute better security procedures. That doesn't completely slow down the process of entering and exiting our transit systems. No you're exactly right. This is one of the biggest challenges given the number of locations we have in a major transit system like the New York subway system. There. If you were to install magnetometers alone as you point out that would dramatically slow down the pace of getting into the stations but it would also require the deployment of a tremendous number of magnetometers. The scope and scale effort in one city alone New York City is hard to imagine even going beyond the same time. We do know that the New York City Police Department and you'll see fire is very much on point terms of focusing on where the potential threat zones might be and going and targeting those as we often see patrol patrols in the subway system and the like. And so we have to figure out a way to both you know allow our people to transit the system as well. They need to but protect our security. This may be a wakeup call that we need to do more when it comes to the subway system not just in terms of magnetometers amendment lectures but also you know gas detection devices and gas dispersal devices to protect against it. That tightly linked those environment the dispersal of whether it's whether it's tear gas or whatever this person used at the time. It's interesting that you talk about a so-called wipeout wakeup call because for many suddenly crime is not a crime. Incidents is not a wakeup call. It's something that the administration has been dealing with ever since they took over at the beginning of the year 100 days in. Mayor Eric Adams. And it has really been a focus and is called graded himself thus far incomplete when it comes to crime. He himself of course a former former police officer. What else is needed. We heard of course from who is still we know like a relatively new police commissioner as well talking about how our police need more help. So said Commissioner Sewell is it about more help. Is it about more boots on the ground. What is it about. Well you know part of it is a matter of having the right number and quantity of police officers vehicles. But it's also about training. It's about preparedness. Look New York City police officers matter how many there are can't be everywhere at all times. So we've got to be able to assess threats be able to take action on them be prepared for them and have the force posture. Yes. Necessary to do that. You know we've been going through a time in our country over the last few years. We've been debating what the size and structure and nature of police forces ought to be. And at times these larger mass casualty events which hopefully this doesn't turn into a more of a Mark Crumpton about than it already is with five critically injured. Right. They they do tend to wake us up to the threats that we face and the crime challenges that we face whether they're terrorist attacks or standard criminality. And that does require more equipment or training more police officers and the like. How much of this needs to be coordinated at the federal level or do we leave this to local and state authorities. You know this is another complicated challenge when it comes to terrorism. We've generally thought that federal officials need a coordinate and take a very strict very direct role in it when it comes to these these criminal events. We don't know what this was but it looks more like a criminal event than a terrorist event at least at this time. And those lines are blurring too. You know we do tend to believe that the localities audit take responsibility for it and have the ownership over it. But at all times you know the threat matrix is something that the federal Labor has a good handle on. Working with states localities and New York City Police Department is the best in the country of local police departments that have an intelligence capability to operate. And a lot of wells like a federal agency would go because of the threats they face the size of their force in the city. All right Jamal I really appreciate you taking time to be with us. Jameel Jaffer there. He's the founder and executive director of the National Security Institute at George Mason University out there in Virginia. And we do want to bring you some footage of what happened a little bit earlier today. We just want to give you an advisory here that some of that footage might be disturbing. To our viewers world wide of course here in New York City. Well we'll keep you abreast of what is an ongoing situation in Brooklyn where of course earlier at about 8:00 a.m. today 16 people were indeed injured including 10 people with gunshot wounds. As we understand that a incident occurred on a subway station in Sunset Park Brooklyn. We will keep you on top of any breaking news in that situation as a shooter remains at large. But for the moment we returned to another key data point for our audience today. And that being of one that impacts the U.S. consumer in particular the prices paid rising in March by the most since late 1981 reinforcing pressure on the Federal Reserve. That look maybe interest rate hikes are necessary. Let's bring in Bloomberg's Mike McKee and eight point five percent leading one. That was far more than even the market had anticipated at the Ronald and Nancy Reagan were celebrating their first Christmas in the White House. The last time we had inflation like this and Paul Volcker was in his second year being the Fed chairman. And we all know what happened after that. But this is probably not going to be the same. Analysts are suggesting that this is the peak for inflation for a couple of reasons. One because gasoline prices have already started to come down this month. And because we have what are called base effects where inflation was so high in the four months we're in now that last year that this year it will come in a little bit lower just on a statistical basis. If we're you know we're trying to sort of look for bright spots here. Of course we're talking about a report that we saw energy prices rising. Since then we've seen a little bit of a moderation in some of those prices. And we saw used car prices actually fall in the most recent month as well. Right. Yeah. Used car prices are interesting because they were one of the biggest contributors to the surprisingly strong supposedly transitory inflation last year. A lot of rental car companies had sold off all their cars. And then when the pandemic started down they had to buy back all the used cars they could find. And then there were little used cars for anybody. And then we ran into the semiconductor shortage. So that has finally started to clear and that is what the Fed had expected some time ago with a lot of these different categories. And the fact that they went down pushed down goods prices for the first time since the pandemic and service prices went up. So that is also something the Fed is looking for. We're still a long way from where they want to be. And it could take years to get to 2 percent again. But at least this may be the worst of it. All right. Interesting CPI report. We should point out the knee jerk reaction initially was a market that actually went up here right now here at about 148 New York time. We're seeing markets relatively flat year on the day. Bloomberg Michael McKee helping break down some of those numbers. And of course as that CPI data crossed it about eight thirty a.m. Washington time. Unfortunately in New York right around that same time there was a shooting aboard a subway train in Brooklyn New York here. We've been covering that all day long. And we will get back to our coverage in just a moment of that incident. This is Bloomberg. And we're continuing our coverage here of the shooting that occurred a little bit earlier today around eight thirty a.m. New York time in Brooklyn New York just outside of Manhattan Manhattan bound and train. A person apparently entered that train at some point while he was on the train. He opened a canister of some sort. Smoke began to fill that train car and then he began shooting. That's according to the police. The police are now looking for that suspect right now that suspects still at large. Joining us right now to talk a little bit more about what we know and what we don't know. Nelson Vergara joining us. He's a former U.S. Marine and a former law enforcement professor and founder and CEO of the New York City based security company 360 Protective Solutions. Nelson I appreciate you taking the time to be with us. And before we get to your current role at 360 I would like you to put sir your former role as a law enforcement detective on for us a bit here. And give us a sense here in this type of situation right now what New York City police detectives are doing what they're trying to do in order to find this suspect. Right now what they're doing what they're doing currently is gathering as much information from my witnesses. They're doing video tracing they're going through surveillance footage starting from the end point which was the unfortunate attack that occurred this morning just gathering that that video that video feed and then just taking it all the way back just tracked you know just tracing this person's this the suspect's steps and then just trying to figure out you know what was you know what basically led to this whole thing. Well what was the motive. But right now as we speak that's what they're doing right now. You yourself awarded a combat cross the new PD second highest medal for well successfully and intelligently performing that extraordinary heroism. A shooting incident that Nelson and I'm interested in your perspective of what more is necessary to prevent further shooting incidents. Of course we know it's impossible for everyone to be everywhere at all times. But when you're thinking we do a 360 had on and protective solutions what more could be done. Well I think we all have to. We all had to dip into you know different hats here. Our solution is you know it's just one part. But you know the community law enforcement politicians everyone has to work collectively from from our standpoint. One thing is that you never stop learning. So you can always you know always expand your knowledge get gathered you know get with your you know local precincts. They always have some sort of civilian type of training. In addition to that you know private practitioners such such as myself. Now you know we provide you know active shooter survival training courses. We also do situational awareness. So it's kind of a real waking there. The unfortunate reality that we face now with we're with these with these attacks. So that's one part of it. The other part is you know law enforcement will continue to work diligently. They'll work hard. You know detectives and police officers they're working very diligently 24 hours a day to try to you know try to keep everything under control trying to you know increase people's faith in law enforcement and the justice and the justice system. So that's that's one thing that you know that is you know I think it's coming from all fronts. And so I think we all have a lot of faith in that law enforcement system. But I think when we talk about a subway system that is so sprawling and we know that no matter how many cops you put out there they're not always going to be able to sort of be at every station in every car at every time here. And I'm wondering if you think there are any sort of steps that can be taken to maybe ensure a little bit more safety if it's not more officers as more surveillance is there a way to sort of ensure or at least to I guess mitigate the potential of something like this happening again. I mean there's several I mean I mean as unfortunate as these events are in New York City being one of the most highly populated cities in the world you know the transit system is extremely busy. You have millions you have millions of riders traveling every day to and from you know their locations. The biggest thing is access control visibility training access control being you know yes you do have to have more surveillance. You want to have enforced more back checking. You know I know the NYPD was very active with the bag checks MTA as well. And it's just basically just continue to do that do that on multiple fronts. Keep in mind that and and maybe I'm sort of you know like the police department worked in partnership with the with the traffic division for a while. I was this well it was a separate entity. They both work for the city but they bought it from the brass from the no uniforms over into the NYPD. You know someone. Thank you so much for your expertise. Nelson Vergara of course former U.S. Marine and law enforcement professional as well and awarded one at that. This has been back. I'm Romaine Bostick and I'm Caroline Hyde. This is Bloomberg Markets the Clothes. Welcome to our coverage of an event that unfolded earlier at about eight thirty a.m. local New York time. Several we understand now 16 wounded and I'm up to 10 have currently got existing gunshot wounds. All occurred in the subway station of Sunset Pop Brooklyn. The key facts here remain is that a shooter remains at large here in New York City. We heard from the police commissioner Keyshawn Shots a little bit a while ago. They said that their art is not being investigated just yet as an act of terrorism though they are not ruling that out just yet. She did say about the suspect who according to her boarded the train. At some point Manhattan bound train donned a gas mask and then opened a canister of some sort. The train then began to smell filled with smoke. And at some point that suspect began shooting. The train then came to a stop at the 36 Street Station in Sunset Park Brooklyn which is just across the river so to speak from Manhattan. We were told then that people then exited the train and that the suspect apparently also apparently exited. He is described as a black male five foot five with a heavy build was wearing a green type of construction vest and a sweatshirt. No no motive is known at the time but we do know that that suspect is still at large. Critic Gupta is on the ground outside of that train station in Sunset Park Brooklyn. Christi what do we know now about the ability of people in that area to move about. Well the irony remains that just behind me you do have a subway station is still closed but the restaurants around it are actually open so you do see some semblance of normalcy at a time when there is still a shooter on the loose that they are trying to essentially actively hunt down. You are also seeing schools in the area. Remember this is an area where there are four schools that are still in spacing shelter in place. Orders are banks around here some of which have been closed and barred up. There is also a park here remain. Caroline it's lunchtime. There should be a lot more traffic. And right now the only traffic you're seeing is simply through the street behind me that is finally opened up. There was a 20 block perimeter and that has now been decreased slowly. But you are still seeing not a ton of movement when it comes to actually clearing the subway station in question. And of course Christine it takes but what 20 minutes from Wall Street to get to where you are. About 30 minutes from where we are and upper east side of Manhattan a leafy suburb as you say surrounded by schools surrounded by a multicultural community very strong Chinatown for example Latino community and one that had been thriving. Investment abound over there. What do we think of in terms of how we are suddenly seeing an activity on the ground the focus on of course the immediacy of keeping people protected. What are some of the people saying that you're talking to. Yeah well one of the big questions here is simply how you actually mean in the short term in how you release some of these students from school and that's going to be the major question in just a couple of hours with school actually is released right now. Education is still going on. And from what I understand they are actually expecting or trying to clear the subway by the end of the day. But once again the clarity on that is still a little hazy. There will likely be another update throughout the day but likely addressing some of those that were actually wounded in this attack. As far as normalcy goes I mean it's still unclear right now. Caroline Romaine you do have like you said a little bit of traffic but you should see more. And right now this area alongside some of the other subway stations in New York are still heavily armed. And that's something you're going to be seeing across subway stations and other major cities Boston Philadelphia Chicago. They've all have these armed presences now in light of even those was really considered of a one gunman acting alone at least according to the NYPD. And just give us a little bit of a sense of the topography there. I mean I know that 36 street station you're on Fourth Avenue. It's a very busy commercial district. But I know on one side of you you effectively have a beautiful park there in Sunset Park in a highly residential neighborhood. But to the other side you have a highway and then a somewhat commercial district that had been going through some redevelopment. Yeah absolutely. So essentially what you're going to see is right behind me you'll see some sort of the subway station if it's actually cleared. Well you actually do have the park straight in front of me. You will have a school or two to the left of me. And of course a lot of residential properties. And this is why it's really interesting to see that this specific corner. Yes there is the entry to the subway station but it's also very clearly a corner where a lot of people stop for food or a lot of people drop their children off. And a lot of people can very easily access their homes or even go to the park. So this is once again a very active corner. And that's one of the concerns when it comes to why the gunman chose this particular station to actually release the canister and to actually make his escape because this is known as a very busy area not only below in the actual intersection of the D and our lines but also above. When you have a very busy cross section a very busy cross section of course. And indeed we now focus our attention on when we might hear yet further updates coming from. We had of course the the fire department's chief cabinet or Covid cabinet had spoken earlier. The first deputy commissioner there would have from the CEO of the MTA John Miller the Miller deputy commissioner of Intelligence Counterterrorism. But we know of course this is thus far not being investigated as a terrorist attack. And notably also the NYPD commissioner. Forty fifth Police Commissioner Keyshawn Sewell. When do we know if we'll get any further news on how those 16 people currently are that have been wounded or indeed when we hear the next steps when it comes to evacuating children and ensuring that the area remains safe. Yeah well in the last press conference it was about twelve o'clock New York time local time. You did that say hear them saying about two or three hours. We'll give you another update. That being said the original press conference was delayed several hours as well. So you do want to keep an eye on the fact that that might actually be true in terms of getting more information two or three hours from now. One of the big questions also Caroline to your earlier point is the phrasing around this because the NYPD the fire department as well said this is not an act of terrorism that you would potentially associate with say the likes of the twenty seventeen Times Square underwear bombing attempt I should say. But you are also hearing Eric Adams the mayor of New York City. Be very careful in his phrasing of this. He's not saying it's an act of terrorism but he is saying it's an act of terror. And that's going to be something in terms of the phrasing that we really want to keep an eye on especially because when asked and pressed by some of the media the the New York Police Department that didn't come out say well we don't think it's an act of terror or terrorism but we do think that we're not going to rule out just yet. So that's going to be potentially in addition to the situation of the folks that were critically injured. What this actually entails and what the motivation is hopefully there'll be some clarity on that the next couple of hours. OK. And we should also point out too that I mean obviously we're outside that 36 street station there with Christie Gupta. But what we did learn of course from the police commissioner that that suspected board the train at a different station deeper in Brooklyn and took that train up north towards Manhattan. Critic Gupta on the ground in Sunset Park Brooklyn. We'll get back to her a little bit later this afternoon. They want to continue our conversation here and talk about some of the political ramifications for the new mayor of New York City. Eric Adams was made fighting crime hallmark of his first 100 days in office. Bloomberg contributor Jeannie Sheehan. Zeno joining us right now to talk a little bit more about this. And Jeannie. You know it's no secret Eric Adams a former police captain thems himself who before he got into politics running for mayor here in New York has really made a fighting crime and really sort of trying to address a lot of complaints of people in this city about rising crime a hallmark of his administration. That's right. You know Eric Adams as we look back at it now when he was running for office was you know making the case over and over again. Unlike some of his competition that if we couldn't keep this city safe it couldn't get back to where it was before the pandemic. We couldn't revive ourselves. And so he's really made fighting crime not just because it's his background but because he understands you can't have economic revival. You can't have growth. People won't want to live and work here. If the city is not safe and that was the message he was talking about on the campaign trail when he was inaugurated in January. He's just a little over 100 days in. And this has continued to be his mantra. But of course in the meantime the city has experienced an enormous rise in crime. We'd have a thirty six percent increase in major crime. Sixty percent increase in shootings over last year. So he definitely has his work cut out for him. Having been a police captain ISE as you mentioned it happened in focus so much of his life on preventing crime. He also comes prepared to address many of these challenges. It's worth putting into perspective here. Yes. The statistics you paint are in some ways concerning and shocking. A 16 percent uptick in violent crime of course. Thirty six. Thirty seven percent. And NYPD data that was released. But like a week or so ago in major crimes citywide. How was it have been in a downward trajectory. I look back to the year two thousand one hundred eighty four thousand major felony offenses in the city of New York. And then look to 20 21 what is just a hundred thousand and have fallen by almost half. We are creeping back higher. But how much of that is is really the context of how people feel even if it isn't. Relatively speaking. But a decade or so ago two decades as violent as it was how important is it to be seen addressing it and addressing it with investment with new anti gun crime units of course that have been a key focus for him. That's right. And I'm so glad you mentioned that because it's critically important that we put this into perspective. There are so many aspects of this story that the data really tell us it's much broader picture when you look at it historically. And that's something the mayor the police commissioner have been talking an awful lot about. Of course we are coming out of the pandemic. We hope. And that is something that has remained a challenge because we've seen not just in New York City where crime is ticking up since the pandemic but across the country we're seeing that. But if you look historically as you know it's nowhere near as high as it was. If you go back say 70s of course we have to keep in mind you know the way in which New York City and other police departments and other cities collect this data has changed a good amount over time. So there's a lot of aspects of that story. I mean I want to draw a fine line here between crime and terrorism. And I know that right now the police and the authorities aren't calling this an act of terrorism here. But of course it's on front and center in a lot of people's minds. Given some of the details that we do know. And when we talk about terrorism of course you ultimately then have to talk about the federal response in keeping our cities safe here. We heard from the Biden administration yet not only particularly about this incident but about some of I guess the broader efforts to make sure things like our transit system are safe to travel. What we know so far not just in the context of this is of course that they are watching. They're listening. They're in communication. We know that the commissioner here has said this isn't being investigated as terrorism. But to your point I also heard the mayor come out just a few minutes ago and say well we don't believe it's an act of terrorism. It is terrorizing to the people in New York City and around the country. And so the Biden administration has been focused on this. Of course we are you know in the midst of not a war with you with with Russia. But we are you know in the context of that there's been concern about terrorism rising. So this is something that they are keeping their eye on. And again there is no you know information that this itself was an act of terrorism. But there has been some discussion. Somebody could have been for instance scouting outbreak terrorist attack. That's been one of the theories going around. Again these are all theories that we can't really speak to that. But they are keeping their eye on it. And I do suspect we'll hear more from the administration. But I don't know that we'll hear more until after we get more information on the ground. And hopefully this shooter who still active is apprehended. All right Jeanne Chen Zeno a Bloomberg contributor they're giving her insights there. And we should point out that the mayor of New York City Eric Adams who has been isolated in Gracie Mansion since a diagnosis of Covid has been talking to the media various media outlets including New York one telling New York one right now that he has been in communication with the White House as well as with the governors of New York and New Jersey. He also says that the city will increase. Police in the subway system here will continue to keep an eye here on the response from the Adams administration as well as the local administration the governor of New York and some of the efforts not only to catch the shooter who is still at large but also to protect our subway system writ large. This is Bloomberg. A day that has rocked New York City and a day that we continue to digest at the moment remain for our audience worldwide one where we saw a shooting incident occur earlier in peak time to be transiting into the city from a suburb of Brooklyn Sunset Park one of the key boroughs here in New York. A shooting incident that has thus far wounded 16 people 10 with gunshot wounds. And of course one that currently is still an unfolding situation as a shooter is still at large still a larger local story to be sure. But of course anytime incidents like this happen are of course our minds gravitate to something larger which is why we continue to cover this. And we are awaiting to hear more information from authorities. There are planning to hold another press conference later this afternoon and we will bring you that press conference when it happens and any other developments on this story as we get them. We certainly will. But of course it is one where we need to remain focused on what is a New York City event but also one that affects well. But 20 minutes away from Wall Street for example we remain on what is also a day where we think about the markets. We continue to think about of course what we do hear pretty bad news which is assess where the economy is telling us and if you're pleased to say is with us live here. Dorie WALA co CIO of Rock Creek. It's 15 billion dollar Global Investment Management Fund. And of course amid a very humanitarian story we are bombarded. It feels like throughout the first part of this year with humanitarian crises ones that we focus on we feel emotionally rocked by. But we also then have to assess how it affects us as people to think about the economy how it affects sentiment how it affects the way in which you invest for a moment. Olivia talk to us about what is also a key story for many a consumer out that in the U.S. and worldwide. And that is of prices going higher. Yeah. And I think I mean everything we're seeing unfortunately in New York City today just shows that the hallmarks of this market are really uncertainty and volatility. So we are really facing a confluence of factors that markets are having to digest with inflation of course today being the focus. I think the market reaction missile least earlier today morning is really indicative of this environment where investors are looking for any piece of silver lining in the data to indicate where the U.S. economy and consumer may be heading. So where we're heading right now a lot of people look at consumer spending Olivia and they say OK well with wages rising but not necessarily as fast as inflation with energy prices with food prices and other things other necessities I should say sort of taking a bigger bite out of people's paychecks here. There is the general assumption that at some point we will see a material downdraft in some of that discretionary spending. Are you anticipating that. I think consumer spending and the lagging behavior and related demand is still the biggest factor to rank among of course other uncertainties and for markets and investors that are looking at the longer term how is consumer spending going to be affected by the higher inflation is key and inflation as you remember touching all consumers every sector. And we have to remember there's a lag in the numbers. Right. So consumers that we're not focused on higher prices a few months ago are now looking at the grocery bills and realizing that they're paying a third more or now that it's spring and you want to go plant flowers you need lawn fertilizer and you have to pay almost double what you paid last year especially for items like fertilizer that are directly commodity linked to goods. Not to mention what does persistently higher inflation due to plans for a retiree who has a fixed budget that last year they had planned around living within. And now this year their financial picture is quite uncertain. And so we're continuing to get squeezed. And it's really going to be important to see how persistently higher inflation prices affect consumer spending and demand over the upcoming fires. And if you do change anything have you changed anything in terms of the way in which therefore you allocate in this scenario. I think that's a great question because the takeaways for investors is you have to position portfolios to make money in a higher inflation higher interest rate and slower growth environment for the foreseeable future. And for that for us at least that means it's important to stay flexible. You have to be patient have to be diversified across sectors and markets because there really is no silver bullet in this market to making money. You have to be able to pivot quickly depending on what the data moves look like in the economy. And again we're also talking about a global economy. So it's not just the US. It's how are all these dynamics and factors affecting us globally. All right. Olivia it's always wonderful to catch up with you. And hopefully we can catch up with you on another day where we have a little bit more bandwidth to discuss some of the moves going on in the markets. Olivia Dory Wall of their CO CIO of Rock Creek. We do want to get back of course to the big story here. The police right now are searching for a suspect who is said to have opened fire on a New York City subway train right around eight thirty a.m. this morning. There was a train in Brooklyn headed for Manhattan. We do know that that suspect is still at large. We'll continue our coverage. This is Bloomberg. Continuing our coverage of that shooting on a New York City subway train our New York bureau chief Shelly Banjo joining us right now to talk a little bit more about what we know at this hour. Shelly what do we know. So they're still looking for the shooter. This is an active search. It is quite unsettling for a lot of New Yorkers to think about this person being out and about. Detectives are going building to building in the neighborhood and looking for any kind of signs. And the mayor has done a number of appearances saying you know if you have any tips send them in. Send in pictures and everything that you have. But we still don't know. And then five schools remain under lockdown and a number of people five people critically injured critically injured and in hospital 16 patients overall being treated. Paint a picture for us. Shelly for our audience who can be based anywhere in the United States or indeed worldwide. This particular part of Brooklyn a leafy one a multicultural cosmopolitan one a one which is residential and one with children with with district schools in district 15 schools in particular being impacted Prospect Park. It's a relatively wealthy area nearby as well. How do we feel about this being such an area that's being focused on at the moment. Yeah it's certainly not the image of New York City that folks in London or Paris think about. They think about the big bustling Manhattan or you know crime in Times Square. This is not that this is kind of the most suburban feeling you can get about about New York. And these are folks right in the middle smack dab in the morning commute. Eight thirty in the morning on their way to school to work to commute for their day who are suddenly faced with with this horrible attack. And of course at a time when a lot of people have been called back to work of course the work from home ending for a lot of folks forced to get back on a transit system a transit system that a lot of folks now have some doubts about their safety. We'll continue our coverage of this story Shelly Banjo. We thank her our New York bureau chief. This is Bloomberg. This is Bloomberg Markets close on Romaine Bostick I'm Caroline Hyde and we keep you abreast of what has been a shooting incident in New York. Of course the borough of Brooklyn earlier today at peak commuting time. We have further breaking headlines coming from the New York City mayor of course that Eric Adams he himself in solitary confinement at the moment having been diagnosed with Covid-19. He says that security cameras at the station that his 36 street station over there in Sunset Park malfunctioned. He says he's speaking in a radio interview about the subway shooting. So continuing to get some news where he says that all shooting victims are expected to survive. That's of course 16 patients currently being treated 10 with gunshot wounds. We want to go out there on live on the scene as we're seeing footage from earlier within the pandemonium that struck and that particular subway station. But now pretty good terror in a leafy part of Brooklyn where suddenly the birds tweet once more. But an area that is shocked to its core. Yeah it really is. And Caroline what's interesting here is that we are awaiting an update from the 16 people who were actually injured 10 of them shot five of them in critical condition. That's really where we're gonna get the next indication and probably update from from officials that are looking into this story. You also have to keep in mind some of the updates that we're seeing from other news sources as well. You are a boy. Apparently a gun has been recovered from the site. You also have a lot of injuries reported to what we really heard in the presser as well. Simply the idea that there were shrapnel there was smoke inhalation of course the mental trauma. We are already hearing lots of messages especially from commuters who are looking to in a few hours come back from their drops into Brooklyn really worried about how they're going to get home today. Well let's talk a little bit about that Christi. With regards to the street closures with regards to the subway closures how much do we know right now about the ability to get that back up and running. Yeah well the subway station Romaine is the intersection of the D line the R line. And of course the airline the airline is rarely where the subway train did pull up. You also have the B line and the W line for international audience. These are a lot of subway lines that essentially pull of Manhattan or connect say Manhattan into Brooklyn the residential areas of Brooklyn specifically announcing the B line and the W line actually suspended in terms of the traffic. So once again one of the big concerns here especially when school is finally let out in the shelter in place orders are lifted is how a lot of people going to get home especially as you still have the manhunt essentially active. This is important especially because we're talking about just a couple of hours school being let out. And right now there is no plan in place for how that's actually going to happen. And of course we heard from the CEO of the MTA the Transit Authority talking about you know reminiscing thinking back to the resilience of a New York borough. He remembering the time that he was that post 9/11 how people help one another and how that was once again evident by you by that subway station that morning. But an MTA that CARNEY struggles to bring back ridership that had 13000 weekday riders on 36 street station back in 2019 and in 2020 it was six thousand. How are people how is the MTA. How are these local authorities going to deal with a nervous commuter. Yeah. Well it comes down to actually kind of coordinating with private authorities in this. We should really note Bloomberg reporting also talk about Uber talking about canceling some of the surge fare pricing that they're already seeing in the Brooklyn area. That's going to be one method. The other method is simply going to be perhaps a lot more work from home in the next couple of weeks. Even residents who work in Manhattan. We are. We have heard on social media and on several different media platforms have actually said well now I'm not comfortable taking the subway. This is pretty normal after you hear really any attack on any mode of transportation. And right now simply once again it comes down to the fact that there are some calls for saying well we should let kids out of school we should bring them home. But once again how do you do that. When Carolyn to your point you do so have some disarray in terms of the problems that really come with commuting. And now we're of course hearing that some of the the hunt and the kind of evidence is still unclear in terms of what the motivation was and whether this is a sole attack critical route on the ground there in Brooklyn New York as we await the latest update from authorities there about that shooting that took place this morning aboard a subway train here a shooter that we're told is still at large. And we ask of course our viewers to kind of bear with us as we sort of straddle our normal world of markets and economic coverage with this situation in Brooklyn. And we do want to turn back to that economic coverage in that CPI report that we got this morning right around eight thirty a.m. time. Washington U.S. inflation rising eight point five percent. That's in line with consensus estimates. And a lot of questions right now about some of these advances that we've been seeing in that data and whether we might actually be at the peak. Omar Sharif is joining us right now. He's an inflation insights founder and president to talk a little bit more about this report. And Omar eight point five percent. Again we expected that for the most part here. There is a lot of talk right now that we're starting to see some moderation and some of the data points that feed into that. Yeah I think that's that's correct. I mean B yeah this is sort of a bait drops a used cars that really help sort of moderate the overall for friends. I would like to see a bit more broadening out to slow down imported goods beyond just used car. I mean I think you'll look at something like household furnishings. It's been printing almost 1 percentage point each month for about the last 6 7 months. So it would be nice to broaden out a bit more. And some of the data that we track suggests that inventories are piling up for things like furnishings for things like household goods. And so we should hopefully see some of that moderation comes through import goods. Some side we had some big advances in some of the be up any category say airfares hotel rates car truck rental. And that really is kind of what helped drive it for services no matter what are going to be with us for a couple of months I expect. But I think that should also kind of moderate as we head into the second half of the year. Talk to us about what the supply chain element of things could do. Because we still see perhaps a worry that China can't experiencing yet another wave of Covid lockdowns. What that means for manufacturing how that affects schools raw materials as well with the upending of a piece over in Russia and Ukraine. Is that also going to be feeding into some of the stresses over the next few months. Yeah that's I mean all the things you brought up here with China and Russia. I mean that's a lot of sort of unknowns and try to factor into the forecast. I guess what I would say is that I think compared to a situation last year when we had a lot of sort of disruption disruptions supply chain we were in a better situation now in the sense that we have gotten more inventory rebuilding over the last quarter and really even over the first few months of this year. So if you sort of look at you know freight trucking rates for example are declining partly because you're hearing that warehouses are filling up more and more with inventories. So it seems like we're maybe a little bit more of a cushion if you will this year. You know sort of to sort of combat some of these flashing disruptions which I think should probably give us less of an impact on inflation as opposed to say less. You know last year when you had a big surge in demand coupled with supply disruptions at the same time. And that's really what drove inflation. A lot of categories like used car sprays. Talk to us a little bit about commodities here. We just got Suleiman OMXS crude futures here in New York settling back above 100 dollars a barrel after that draw down. That seemed to show I guess some moderation in oil and gas prices. We're looking at soft commodities like corn and wheat now at basically decade highs here. How long if at all does that type of price pressure last. And if we do start to see moderation there. The effects it as it feeds through to consumers. Is that going to be immediate. Yes in terms of the commodities you know honestly it's it's fun watching it sort of day to day at this point given the volatility that's that's happening especially the energy markets. So today we saw a big bang for example in gasoline futures. But I would note that you know we're still around 40 50 cents below the eat right after the Russian invasion of Ukraine. So you know even though today we bounced a little bit from Mother April for example looks like gasoline is probably going to be down a couple of percentage points unadjusted and seasonally typically prices increase in April. So you get potentially 7 percent drop in gasoline prices in the month of April alone. And right now with the energy because market is it suggests that we should get you know really very little in the way of upward pressure. Mean least on energy. Food is much stronger. We'll sort of see how this shakes out. But currently looks like where the domestic stresses they're going to keep pushing food prices higher as we go on of course. For many it's not just the data statistics to the eight point five percent reading. It's it's what the sticker shock they see the way in which it makes them feel and the nervousness the builds and that somehow this is going to remain sticky and is going to impact their longer term confidence. How do you make of that at the moment that a lot of this is going to affect sentiment. Yes you know if you look for example at yesterday's Europe that sort of came out of consumer expectations inflation wonder expectations are spiking. You know I think they're at a record in New York and. We've seen that Michigan data and you sort of see everywhere. And that to me is much more a reflection of the kind of sticker shock that you're talking about in terms of you know go to the grocery store. Things are going up in price. You're paying more at the pump for gas. All of that is causing these expectations to higher. But then when you look at sort of a longer three to five year for example in in your fencer it's actually been declining the last few months. So you know people I think are obviously very concerned about what they're seeing on a day to day basis. But at least in terms of surveys are suggesting that you don't expect this to last much beyond let's say this year. There are the potential natural effects that could bring down prices. We know we have a Fed of course that is trying to do its best through monetary policy to bring down prices. Is there a mechanism in the White House in Congress fiscal policy that could also bring down prices. Well there are some things they can do kind of quite directly and they're sort of arcane but they really sort of are related to health care costs. So essentially you know the administration can sort of set reimbursement rates that Medicare pays to physicians and hospitals and so on. And when you think about the core procedure later which is the best preferred measure of medical care is the biggest chunk of that is almost 19 20 percent of that index. So if you can kind of have these reimbursement rates and help them grow at a slower level that's something they could actually do quite directly. So it really impacts the inflation data they have. They chose not to do that so far this past year. But that's something that they could handle quite correctly. It's sort of really up to the White House to do that. It's always really great to get your focus in on the world of inflation the data that we focus here on day in day out. I was sheriff and patient insights founder and president. We thank you. All right. Still ahead we're going to continue to follow the developments following that shooting in Brooklyn New York aboard a subway train here. We are awaiting further updates from authorities and we will bring you that information as soon as we get it. This is Bloomberg. Back to what Mark of course was just saying remain a shooting occurrence in Brooklyn eight thirty a.m. thereabouts this morning peak time if you are indeed heading into the city if you're commuting if you're going to school to work. Of course something that we are now back on the mass transit and doing a little bit more. We understand of course the shooter still at large still at large. The police of course have provided a description of that suspect and say they are looking for them. Right now though they are saying that they are not calling this an act of terrorism although we do know 16 people of course have been injured as a result of this incident. Let's get some more insight on the phone. And peace to say we have in most law no mess covering New York the city the leadership and thus far of course trying to understand the enormity of what has occurred in this particular part of Brooklyn that is leafy surrounded by schools children impacted families impacted Laura. And we still await further news coming from we hope a press briefing a little bit later this afternoon. That's right. The mayor of New York City Mayor Eric Adams just said in one of several interviews that he's done this afternoon that he anticipates another press briefing from the NYPD and other law enforcement officials within the next few hours. That's not very specific but definitely expect another press briefing with any additional details that they've glean. Then they last updated the media and the public on the status of the investigation about two hours ago. Give us a sense about some of the language that authorities have been using. We've heard from the police commissioner who said that she was not ready to describe this as an act of terrorism. Do we have heard from Eric Adams the mayor who is sequestering right now because of his Covid diagnosis but he has been speaking with other media media outlets. And I know that he has sort of maybe treaded a little bit more towards that language of calling this terrorism. Yes he said in one interview just a few moments ago that quote someone based on a preliminary investigation someone intentionally determined to create terror in our subway system. End quote. There was a goal to create terror in the subway system. The mayor said that all of the detail suggests that this was a premeditated act. That being said they don't have a suspect in custody and they can't speak definitively to what the motive was here. Until they do and until they gather more cells from witnesses on the scene about about what exactly happened inside that subway cars front and law. Just remind us as you cover the administration he continued to keep abreast of all the man the governor what the police commissioners chiefs of the of the fire department as well continue to say. There has been a focus on crime in New York City in particular. It's been a real determining factor of the first 100 days of Mayor Eric Adams this fall. He himself has said look I grade myself as incomplete. And the police commissioner said earlier this month the police need will help. Yes it's important to draw a distinction between this event which is highly unusual and some of the also tragic and terrifying shootings that we've seen and incidences of violence that we've seen in the city in the last few months. This is definitely something that is on an order of magnitude different from the kinds of violence that we've seen although we have seen a spike in violent crime in New York City in the last few months. But we did see governor hopeful earlier today appearing at a press conference on the scene described this incident as another senseless act of gun violence. Another tragic shooting. Importantly the police commissioner and mayor addict Adam just confirming that at this moment they don't expect that any of the victims will die from their injuries that everyone is expected to survive. All right. Still a fluid situation and of course with that shooter is still on the loose. We'll continue to bring updates on this situation as we get them. Laura emails and Bloomberg reporter here covering the New York region after the break here. We are going to get down to Washington here. We do know that the president of the United States has been briefed on the situation. We'll get the latest. This is Bloomberg. All right. White House Press Secretary Jen Psaki speaking a little bit earlier about the incident in Brooklyn saying that not only did the president get briefed on the latest developments but White House senior staff were in touch with the mayor of New York City Eric Adams as well as the police commissioner here. And that in her words we are here to help them. Of course a lot of focus right now on a potential federal response to this. We are waiting to hear from President Biden himself who is traveling on this day. Bloomberg Washington correspondent Amari Horton is joining us right now to break down sort of what we know with regards to the White House response Emery. Well really just to reiterate what you said Romain is what we heard from Jen Psaki not that the president was briefed this morning at the White House while he's traveling on Air Force One. He's in Iowa now. We're going to hear from him in about an hour's time. So potentially before he discusses what he went there forward to talk about energy and ethanol he will discuss this tragedy in Brooklyn. And Jen Psaki says that of course you have the New York City Police Department working with federal agencies like the FBI. And that what she also said is that the president reiterated that his request. Anything they need these officials that they need anything they want. We are here to help them. So the White House is trying to lend that helping hand to these authorities in terms of what exactly went on in Brooklyn. And of course a shooting while firearm regulation front and center for the administration. It was. But yesterday about 24 hours ago that President Joe Biden was himself announcing new regulation that all to do with so-called ghost guns. So but really addressing what some might view as a national crisis of gun violence. Yes that's true. Yesterday the president was talking about making sure that the federal government can go after these ghost guns which you can pretty much assemble at home by herself. And then they become untraceable. So they want to crack down more on these types of guns. And also it comes at a time where the administration has been criticized about the increase in crime. On Sunday CBS released a new poll. And you had an approval rating for crime. Thirty nine percent of the president's disapproval rating 61 percent. So crime tops there alongside things like the economy and the inflation. These are going to be the issues that this president is going to have to try to turn around ahead of November's midterm election. All right. Bloomberg Washington correspondent Emery Horton there with the update of course. Joe Biden is traveling today of course to an event in Iowa to speak about ethanol though we are expecting that he may make a comment about this incident that we're seeing in Brooklyn an incident that left at least 16 people with injuries that we are told that none of those injuries are life threatening. Again a shooter that we're told is still on the loose. And we're waiting to hear more Caroline from local authorities here about the efforts only to find that shooter but also to remove some of the restrictions on movement that we know in that part of Brooklyn. At least five schools we know still on lockdown. Yes. Shelter in mode where they're still able to attend classes but indeed unable to move outside of the area of these public schools. I mean it is a residential high school area district 15 schools currently mostly east of Prospect Park. What is a relatively leafy suburb residential suburb. One that is upended today. The Supreme CAC. Come down to the clue Bloomberg's comprehensive cross platform coverage ahead of the US market starts right now. This is Countdown to the Close. We have just 60 minutes left in your trading session. It is Caroline Hyde Romaine Bostick. Joined now by colleagues Carol Massar and Tim Steinbeck. And of course as always we want to welcome Albany back audiences across TV radio YouTube. Wouldn't a time where we usually would die stuck dissect what stocks what bonds what assets are doing how stocks and the benchmarks are currently on the downside. You see of course a little bit of red across your screen when you're looking at the S & P at the Nasdaq and indeed at the Dow. The Russell 2000 managing to spray above green. We had seen earlier gains after an inflation print of eight point five percent. But right here right now Carol as we all sit here in the city of New York we real from a shooting incident in Brooklyn one that has impact on Wall Street has an impact on the one point seven trillion dollar economy of New York City and has impact on us as individuals. Absolutely. It's hard to deny. It certainly impacts our thoughts about the safety of the city a city that we are in and out of and just kind of in many ways take for granted but has obviously been impacted by the pandemic and then obviously impacted by this shooting in Brooklyn. Let's get to Brooklyn. Let's get to Sunset Park where the incident occurred at about eight thirty a.m. this morning amid the commute. Could he Gupta is on the ground in Brooklyn right now. Talk to us about this borough. So important to the greater New York City and what is happening on the ground Christie. Yeah well some new developments. Caroline in terms of what is actually being recovered from the crime scene multiple sources reporting here that not only was the gun recovered which we did report earlier but also you are seeing other things as well. Let me read out the list if you don't mind. High capacity magazines is at the top of the list to high capacity magazine. For those not familiar just means that it's a gun that actually or what goes into a gun that's able to hold more rounds than usual. So you can actually see that this was a very planned attack and gun powder fireworks were also found in the subway station. That of course is an addition to the gun like I formerly mentioned. Other reports also say that the gun had been jammed and therefore was ditched at the subway station. That seems to be what we might likely hear from the commissioner later when he does address simply the developments that have come about from this investigation. But so far sources say that's what's been recovered from the crime scene. Christi as we've been saying over and over this is a fluid situation. You've obviously been covering it. I think the one thing top of mind for we New Yorkers especially who use this mass transportation is what's going on with the shooter. What do we know about the investigation into the shooter who is still at large. Well the hunt is still ongoing and that's really where they've brought in lots of help is not just the NYPD that is looking for him it's also the FBI. You have seen several members of the counter-terrorism force actually spotted here on location in Brooklyn earlier. Now it looks like they have left and around this area in particular they're already looking to open up traffic open up the subway hopefully by the end of the day as well. So you can really see that the shoot or I should say the hunt for the shooter isn't necessarily in this area. They are still knocking on doors looking at surveillance footage. And you did actually hear Mayor Eric Adams they believe in a radio interview say that the surveillance around the subway had actually malfunctioned as well. So there's still a lot of questions about what leads actually exists when it comes to finding him. Christi what about when it comes to schools in the area. Earlier in the day we learned that schools just around the site had been sheltering in and students were there. What do parents need to know about what's going on with students in schools in the area. Well Tim it's officially the end of the school day when it comes to Brooklyn. They have been sheltering in place since 824 24 when the fire department was actually called to the subway and smoke that was coming out of the subway car. And since then you have had a lot of students peeking outside the windows teachers as well. But now as of three minutes ago you do actually see school out of session. That being said parents have been allowed to come into the schools pick up their children of course given the hesitancy of the situation around the area. Few have chosen to do that. You've also seen the school area get kind of blocked off from media and from police officers as well as you start to see school buses come in pick up the students and slowly take them out. All after school activities have also been canceled and it's still to be decided. What's whether or not school is going to be in session tomorrow. And guys you know it's interesting. You know we talk about this incident and of course an incident that's still a fluid of course with the shooter at large. But we talk about sort of a time period where we had started to see an uptick in tourism in this city. We had obviously seen a lot of folks being called back to the office. So now getting back on to that mass transit a mass transit system that we know had been under pressure from a drop in ridership from an increase in crime not just on the subways themselves but there have been several incidents of course with people being assaulted on the platforms including Asian people have been targeted specifically because they were of Asian descent here. So there was a lot of jitters out there a lot of sort of uneasiness about going back down into those tunnels and getting on the subways. And you wonder how an incident like this and all of the coverage around it could potentially affect behavior going forward. Yeah I really think that to some degree we've got to remember what a multicultural society New York City is. But notably the Sunset Park has as well. It is got a thriving Chinese community in particular that has phenomenal restaurants that are easily accessible. It's an area that has seen investment. We see industry cities. It's known an area where you can go and grab you know culture on the weekend and great art that's shown artists that perform and integrate coffee issue. And you should want it. This is an area that is residential. And we worried about the children but notably creative. It is an area that is not vers. And it is this is a one off. We've got to say this is an order of magnitude different from what we are usually talking about when we discuss crime here in New York City. Yes crime is still a lot lower than it was a couple of decades ago but it is something that Mayor Eric Adams has to address. Yeah and this is something that's really come up during the pandemic as well given simply the lockdown orders that we've had to deal with especially in most of 2020. The assumption here was simply we'd given the work from home given the resistance that your hesitancy as you say to commute into the city there would be perhaps a downtick in crime. And yet you have actually seen crime come back in. And that's one of the big issues here especially when you really talk about the point you just made. Caroline the idea of how willing are people going to be start commuting especially when it comes to these Brooklyn areas at a time when already people are starting to see remote work as very much possible. There don't necessarily have to get up and actually commute say an hour into the city and peak rush hour especially when these dangers come about. So we'll see really whether commuter traffic which has been actually encouraged by Mayor Eric Adams is continues to thrive or actually maybe perhaps he's a little bit of a setback. Christie before we go 16 injured 10 with gunshot wounds. What do we know about the victims. Well so far of those ten five are in critical condition and that's really all we know we don't know necessarily what their status is. We also do a lot of those that were not shot. Some of the other injuries include shrapnel. It includes a smoke inhalation. It also includes a mental trauma. There was apparently a case of someone just in sheer panic and therefore rushed to the hospital for that as well. And of course that is a certain trauma a certain fear that I think a lot of New Yorkers really care about are really thinking front of mind as we talk about the commuting that's probably likely take place and really ramp up in the next couple of hours as people head home. All right. Our Christy Gupta doing double coverage and time for us of course typically covers the markets by covering that shooting in Brooklyn. Gupta there in Brooklyn. All right. We're going to be back in less than an hour's time. Obviously staying top of mind and the latest on this evolving story. We'll also of course be taking you to the closing bell with Beyond the Bell. That's coming your way at 4:00 p.m. Wall Street time. You're listening and watching Bloomberg. And here on Bloomberg Television of course we are still trying to straddle two very different stories here obviously the situation out in Brooklyn which we will continue to monitor. Also keep an eye of course on the markets. Markets in the red right now as a lot of focus right now is on that CPI report that we got a little bit earlier this morning showing inflation still camped out at the highest levels going back to the 1980s. And Melody is joining us right now. She's the head of Active Equity at All Spring Global Investments which has more than five hundred and seventy five billion dollars in assets under management. And I do want to start off with that CPI report and the inflationary pressures which continue to dominate the headlines here. And it appears to be dominating some of the decisions that investors are making. Romain it does. Thanks for having me back. The wall of worry is really growing for investors and you know with the inflation number is kind of the top part or the peak part of where the worries are. But it's not just that it's you know interest rates are climbing because of inflation. We saw an inverted yield curve. We're not sure what's going to happen again. Mortgage rate rates are rising rapidly. There's a lot of talk about what we're going to see an earnings lock down in China. So all of these things are impacting investors. But you hit the nail on the head by focusing on today's issue at hand. And that's the CPI number. I think you know we're hopeful that this is where it's going to peak. It was a fairly the year over year comparison this time around was a little bit easier. It's gonna get harder. The numbers are looking like they could improve in April. And so I think we stand a chance to see some improvement going forward. If we do start to get a little bit more moderation here and some of those inflationary pressures even if they don't go back down to some of the pre pandemic levels that a lot of us would hope for here is there a sense here that companies will be able to sort of manage those costs and more importantly that consumers will be able to manage whatever sort of that new normal is. It's it's the million dollar question. As we enter earnings season it's not so much our investment teams aren't going to listen so much about what has happened. They're going to want to hear more about what management teams are seeing right now what is demand look like what your margins look like. What do you think they're going to look like. What what are companies projecting. And a lot of that has to do with what you just mentioned. Can the companies still pass on these increased cost to the consumer. And it is becoming more challenging as budgets are getting squeezed. And is it therefore one looks at industries broad stroke. You think that an energy industry can weather margin pressures because they're making the money from it. Visa V Well why do we suddenly all dislike technology. The growth story the valuation there. Or is it more that you have to get stock specific and this sort of a market based here. And I think you have to get stock specific. I mean I'm one of the things that I've been saying currently is gonna take away the telescope. You know we spend a lot of time focusing on the macro and what that is done to companies. And quite honestly it's been kind of a fair point because the macro environment has caused companies to move in mostly the same direction. But I think it's time to take out the microscope and start to really assess which companies can handle these pressures and that it's going to be a stock pickers market from here that the paradigm has shifted. Rates are now going up. Inflation is high. That's a totally different picture than we've seen in the last decade. Plus. Talk to us on it in that picture. How one protect themselves against the volatility that we're becoming rather used to the daily swing that we see today for example. Yeah it's I think volatility is going to be with us for a while that makes investors nervous. It's not easy to manage through even for professional investors but it brings opportunity. And I think that's the thing that our investment teams get really excited about when you see dislocations happen because of volatility. That's where you can take it as advantage and focus on kind of long term opportunity. And I think we're gonna see that across all industries. So there might be companies within technology where you get great opportunities. And you know in fact we are seeing some of those today. Health care the same energy the same. But it's going to be company by company and not necessarily just go to this industry or just look for these couple of things. What do you want to hear though out of the executives themselves specifically on some of these conference calls with regards to not just the guidance in terms of the numbers themselves were really the tone competence. I mean company is a big thing for all of us. But quite honestly Romain you know I think as investors we put a lot of weight and responsibility on on management teams. And I think sometimes we have to put ourselves in their shoes. It's not easy to manage a company especially large ones. And a lot of times they're just as surprised by some of the things that happen as we are. And so proper planning managing through volatile times before all of those things can help. And our investment teams look for patterns like that. Do they have management teams with experience in dealing with challenging issues before. Certainly you're not finding a lot who dealt with inflation before. Right. But. You see management teams who have gone through some very difficult challenges and they're best represented to deal with more challenges ahead and it's easier in the media to think that it's easy for companies to perhaps deal with things when it isn't. And suddenly we ask our investors to be dealing with a lot of things when many would admit this is some of the hardest investment scenarios they're having to deal with in this present time. From your perspective is it still us vs the rest of the world. Is still the US supposed to be validating cash. You know that's a great question and it's a tough one. Honestly there are some places in the world that honestly may have seen the end of rate increases and may be going in the other direction where in the US we're just starting not. And I think it still is a nice home on a good street. I think the US is still a very safe place to invest. There's a lot of volatility across the globe. You know some of what's happening we're seeing in Europe right now. And those have spillover effects. And so the question you're asking is difficult even for professional investors. I think diversifying makes a lot of sense. I wouldn't. I wouldn't leave your allocation in the emerging markets or international space. But I also am a strong believer that the U.S. is going to get through this time period. Again it may not be the fairytale fairy tale story that people want but I don't think it's going to be the nightmare scenario either. I'm 18. We thank you. Head of Active Equity at Spring Global Investments. Of course bringing us the latest on the markets from Milwaukee Wisconsin. And let me think of what is perhaps a nightmare scenario. Well that is exactly what unfolded on the streets of Brooklyn earlier today at 3:00 a.m. a subway shooting. We'll keep you up to date with the latest coming out of this breaking news event. And a shooter still at large. This is back. This is the countdown to the close about forty two minutes left here on the trading day on this Tuesday afternoon. You're looking at S & P 500 that actually opened higher was up as much more than a percent here on the day but now slipping into the red. Here you see the Russell two thousand one of the few bright spots here. But now turning basically flat on the day your 10 year yield remains camped out right around two point seven percent. And the big gains that we saw in Bitcoin a little bit earlier this day that's faded now back below 40 thousand dollars. You flip up the board here you take a look at what's moving here. A mixed picture here for tech stocks. You've got names like Apple and Tesla which are higher here on the day. Meanwhile names like Microsoft Google and Facebook metal platforms as you say all moving lower here. Cisco interesting downgrade over at Citi on Cisco today. Those shares down about 2 percent. The idea here that that company continues to lose ground to Arista and juke joint Juniper. And interesting we got some earnings a little bit earlier on a CarMax here showing some weakness there in the used car market at least when it comes to unit sales. That's putting some downward pressure on car bottom and some of the other publicly traded car companies. Those shares saw Caroline down about 5 percent right now. A really comprehensive update on what is happening in the markets. We thank you. Remain. Meanwhile we turn back to our special coverage one that of course affects us as we sit here in the New York headquarters opening by television and indeed speak with our New York bureau chief Shelly Banjo about what is a New York incident but one that might have more federal repercussions but certainly more state wide repercussions. We think of a place in Brooklyn in a relatively leafy residential area. Wonderful Sunset Park where at 8:00 a.m. this morning we did have a shooting incident. And thus far 16 people injured including 10 with gunshot wounds. There's no there's no doubt that although we're still digesting all the information now and that is an active situation now this is going to have ripple effects both locally statewide as we continue this conversation about crime but also across the US leading right up to the midterms because crime Democrats it's like you know political fodder right there. Yeah it's building political fodder. And of course we have a new mayor who just took over this year who campaigned pretty heavily on the idea of fighting crime and making New Yorkers feel safer here. There's always the big question though Shelly. I mean you ride the subways you know you can screen at airport you can screen in a corporate building here for a sprawling subway network. How do you really increase safety. You know it's this is the question that Adams campaigned on. This is a question that he's going to stake his entire campaign over his entire administration on. And this is what he's trying to do is to go back to some of those very basic crime issues due to the whole Windows theory. Like we're going to have to go after these small crimes to get the big crimes. Meanwhile he's relaunched this anticrime unit to go after guns. Both of those things are extremely controversial extremely controversial. And not only that but there have been several reports that have I guess raised a lot of doubts about the effectiveness of that including of course from previous administrations that he had attempted that. And I am curious as to why Adam somehow feels that it will I guess have material results this time around in a way that maybe we didn't get last time. You know he frames it as that he's uniquely suited. He's uniquely positioned to carry out something like this that he has the minds of the people the working class people the people of color that you know the communities he grew up in as a police officer decades in the forest saying I'm not going to let this happen to you the way it was under previous administrations. Now the question is A do you believe him. And B how are we going to actually track that. So right now this anticrime unit is in place. It's very hard to see how effective it is. All you really have to judge on are the NYPD numbers and then high profile incidents like this. So it's very hard to judge Shelly. We also of course for our global audience paint a picture of what is a movement that is in deeply human as as parents as people who are currently trying to balance whether that kid's school is shut because of Covid. And then suddenly your entire school is upended by something such as this. You yourself not far in terms of Brooklyn from where this is you yourself receiving messages about whether or not you should be picking up your your kid me getting messages from my nanny about how fearful she is about getting on the subway back home and how I'll get her a call. These are human tales. But it also speaks to us all wanting to get back to normal in some way wanting to get back on the subway wanting to get back to school and to and to the office. Does this stop that in some way. Absolutely. I mean from a practical matter the crime is at decades lows. But from a shooting perspective there's been 41 mass shooting events this year. That compares to about 17 in 2019. Those things really scare you. And when I have to get a call from my three and a half year old school saying you know we're only letting certain people in and out you know come pick up your kid. This is scary stuff. And does anyone want to get on the subway when they hear of an issue or a situation like this. Absolutely not. Lots of people have no choice. This is the way New York City is built on the subway system. This is the way people go in and out of work go in and out of school. And if they can't do this you know how really is the city going to come back from the pandemic. One of a resilient New York sending what you are sending what many of the chiefs of the police the firearms and indeed we're talking about earlier about the resilience of New York. We can't copyright chief Shery Ahn Jamie. Well coming up later this hour we'll hear from the former New York City mayor Bill de Blasio former New York City police commissioner as well Bill Bratton. This is bring back. The most crucial moments in the trading day. This is Bloomberg Markets the close with Caroline Hyde Romaine Bostick and Taylor Ray. Three thirty two p.m. here on this Tuesday afternoon. That has been dropped in the city of New York by a shooting incident in the borough of Brooklyn. Of course amid the pink of commuting time remain. It is of course still the day where we focus on the economy. We think of a market that we continue to cover here and bring back. But of course this is a human story and one that will indicate the one point seven trillion dollar economy here of New York City. Yeah obviously a big economy here. And those shooting of course on that subway train this morning has really put back into focus concerns about safety safety here in New York City the most populous city in the United States and on a subway system that is one of the longest subway systems in the world. Who better to talk about this than the man who ran this city for eight years. Former New York City Mayor Bill de Blasio joining us right now. Mr. Mayor I wish you were able to join us on better circumstances here. Obviously a tragic day here of where those 16 people who were injured in this incident a shooter that we do know is still at large. And a lot of folks millions of people in this city right now Mr. Mayor who are looking at their transit system and wondering is it safe to go down there. Yeah. Romain first of all thank God we have not had a lost life here. We've been down this road before as a city. Unfortunately we've been a target of terror attacks over the years. Obviously 9/11 but also in 2016 the pressure cooker bombing and Chelsea 2017 the Times Square subway tunnel pipe bomb attack. We've been down this road. What I can tell you is the NYPD will find this individual and they will find him quickly. The ability to respond to these kind of incidents is at its all time high. And I saw it for eight years. The investigative ability is extraordinary. The facts that they have already give them a huge leg up. They're going to get this individual quickly. We need the public of course to be a part of filling in the blanks and making sure that it's clear this was individual acting alone. It appears to be that way. But I think as that information gets out as as individuals found the facts are put together that's going to reassure New Yorkers. New Yorkers are tough resilient. You know what we've found way through things like this and they're gonna do it again. I guarantee it. Maybe this does turn out to be just an isolated individual incident here. And obviously you're not mayor anymore. But I'm just wondering if you could kind of address the people of New York who are concerned. They've looked at this and the various incidents on our New York subway system just in recent weeks in recent months. People being attacked people of Asian descent being pushed off the platform. A lot of people just concerned right now about their safety at a time when they're being effectively forced to come back to work to come back onto our transit system here. What words do you have for them. Well Romain the feelings I absolutely understand and it's been such a tough time for people these last couple of years especially New York City. We were the epicenter of the Covid crisis in the beginning. But I want to tell you the city is coming back strong. You can feel it. You can see it. The activity is going to help us be safer in fact. I mean Mayor Adams is absolutely moving us in the right direction with his focus on public safety. And one of the things that's undoubtedly true here in our NYPD leaders have centered for a long time restoring our economy restoring normalcy in our lives getting our court system back strong. These are the things that are also going to make people safer feel safer and they're going to actually be safer week and turn this around. So I really want to reassure people the best experts in public safety agree that we're going to come out of what we've been through and it can be turned around. It's going to take smart moves getting police where they need to be. That's an area I think Mayor. Absolutely. Very strong minded Rose. Of course you talk about how in many ways New York City in many ways Brooklyn yourself a proud Brooklynite was the epicenter of the Covid crisis. There was a health crisis that turned into a social crisis. And in that time of social discontent there was a push at that moment to defund the police to take away moneys that was under your tenure. And I'm interested as to what you think the funding of the police company is at. Is this a question of money. Is this about a question of putting money to work and more precise and effective monies. How do you see the role of investment now to be able to help. Of course Keyshawn Sewell the police commissioner who says well they need help. Yeah. Listen Caroline I think what we went through in 2020 by the way on top of it a huge budget crisis. This is before the stimulus. It was a time of incredible doubt and pain and kind. God already we're in a much better place than where we were then. The NYPD has 35000 members and they've done an absolute outstanding job. They did not miss a beat during the Covid crisis no matter what. Strong against them. So I would say to folks thank God we have a big strong police force. We've got it reborn the police to a community that's still a real need. Because there was that rift deepened in 2020. We have to be honest about it. And what worked before. Before the pandemic we had low levels of crime down to the levels you couldn't even compare until you went back to the 1950s. That's how low crime it gotten because we brought police and community together. We got to get back to that. And it can be done. That has to me to be the real essence of the solution. And I think the people the city want it. I want that relationship with the police again. Matt how does it feel on the streets right now. Because exactly at that moment as you say so. Well when people talk about defunding the police they weren't saying just take away money in all its forms. They were like let's address crime. Let's address discontent in a different way by putting monies towards communities towards building bridges in that way to this moment where we see a city under duress. People worried about inflation. The numbers we saw today from a national level eight point five percent. People are hurting in many ways. Yet still this optimism is going back to work going back to school getting back to some normality. Isn't that in any way just appended to your perspective. Listen I think we've got to understand the emotional toll of these last two years and the power of restoring what is the core of our lives. You know schools being back fully to normal folks being able to depend on their work again and know that they can show up day after day and it's actually going to be there consistently. Even things like having entertainment back which is one of the things that was like a safety valve in this you know most busy and crowded places the best entertainment in the world. But that was cut off to people. There's so many pieces of the Covid equation that created just profound dysfunction. But I do think there's cause for hope in a country in a city where more and more anyone who wants a job can get a job. And we're more and more we are leaving Covid behind us. That gives me real optimism. And I think people will embrace that change. But it's still very recent that we were in the thick of that. Let's remember that. So as we come out of this crisis here and most of us do try to get back to some normality pre pandemic normality here there is still a big focus right now. Mr. Mayor. On our transit system on the funding for our transit system that some people say is not adequate enough whether it's for safety or simply to keep the trains clean and running on time. We know that there was a big battle during your administration with the governor over the use of funds and the control of those funds here. How would you go about if you were still mayor how would you go about sort of finding a better way here to fund our transit system. Well we have it coming but there has to be the political courage to follow through as congestion pricing which both is gonna be good for our environment. Good for reducing congestion on our streets. But also Romania is going to be so important to funding our subways. Congestion pricing will unlock billions and billions of dollars that will go to make our subways better. So we have the stimulus funding now. That's a blessing but that the long term solution is a renewable source of revenue. Look it's not easy. I understand the political cross pressures. But we have new leadership in Albany. I'm happy to say we have a mayor who I think to his great credit is willing to hold things. It worked in London. It's going to work in New York City and it's going to make our subways better. Do you think though there is really going to be the political will to move forward with that congestion pricing plan. And there has to be an I understand the challenge. Look I don't want to belittle the frustration that people feel and political officials hear it every day. But. You got to have a subway system that works. It is the backbone not only in New York City but the entire metropolitan area. And it won't work without consistent funding. That's the one way to get it done. Do you think subway fare should be higher than where they are right now. I do not because we have a funding source that can achieve what we need which is those big capital investments those big infrastructure investments. But we cannot create a situation where folks who have been hurting so much in the last few years can't even get around can't even afford it. So the balance to me stimulus funds now congestion funds congestion pricing funds coming in right after. But keep those subway prices low because it is the essence of how people exist in the city as our subway system. All right Mr. Mayor we're going to have to leave it there. We do appreciate you taking time to be with us. That's the former mayor of New York City Bill de Blasio. And we're gonna continue the conversation now a little bit later here. Well with the former NYPD commissioner Bill Bratton. That's coming up in just a bit. This is Bloomberg. It is a day where those of New York assess what is 16 people wounded 10 with gunship shot wounds after a shooting in Brooklyn a key borough of New York City of course on the daily commute 830 a.m.. It occurred this morning. We focus in on really what the security impact is of this how we see the NYPD in particular respond. What is is still shooter who is on the loose. Bill Bratton is with us some police to say executive chairman of risk advisory at Neo former New York City police commissioner. And we heard of course heard from the forty fifth police commissioner. He shot Seward earlier today talking about what they know and how still much more is to be found out. From your perspective Commissioner how do you assess the situation and how formally can you declare that this is no way a terrorist attack. I don't think anybody at the moment can declare it's not a terrorist attack. It does appear to be. But until the police department which is leading the investigation at this time because it has not been declared a terrorist act until they indicate that it is not it's certainly an area of speculation. My own perspective is I don't think so. It doesn't have some of the hallmarks and traditionally see around an act of terrorism taking credit for it after the fact. Uttering phrases during the actual act itself. But we'll have to wait and see. The NYPD I believe is doing another press conference this evening around 5 o'clock to update public update the media on the circumstance. Right now it's being treated principally as a crime a crime scene a horrific crime to 10 people shot a half dozen others injured. And that's compounding the already great concerns about crime and fear of crime in New York City. And I mean address the concerns and the having now commissioner when there is still a manhunt ongoing. How you want addressed is that when you're in a position of leadership one by as fast as possible getting out information that you are able to share good news at this time is that apparently the gunman was one individual that we know of at this time left behind the bag that he was carrying that contained the canister that had the smoke vice it he left behind apparently the weapon that he used to commit the shootings. So they have a lot of evidence to where hopefully DNA fingerprints that may help them to identify this individual. The man to get the moment is to identify this individual and identify his motives. In the meantime trying to calm the fears of the public. Difficult. We're going into an evening rush hour now. A lot of people are going to be concerned about getting back on the subway system that individual so at large even though we left a weapon behind because we have access to another one. And so there's going to be a great deal of concern in the city tonight. Again it's the morning hours. They don't make a fast arrest. And Bill that raises a question too about policing. And I guess the difference between policing say the streets versus policing a transit system that is very sprawling and of course includes subway cars that are always on the move. People who have to come and go freely to be able to get onto that transit system. How do you ensure the safety of people on there when you maybe can't take the more traditional measures that you can take say on a building or an airport. Well I think as you're aware I was chief of the transit police back in 1990 when we began the turn of our crime in the subway first and then subsequently work with Mayor Giuliani 94 in the streets. Subway system in New York is huge largest in America. 450 stations 700 separate instances almost 500 trains running at rush hour 510 CAC trains. They're trying to police a system that lives that's constantly on the move with even now with reduced ridership of 3 million people a day. Used to be six million free pandemic extraordinarily difficult to police. Can't be everywhere all at the same time. We rely significantly on technology camera systems relies significantly on see something say something the public and we rely on a very active police force. Unfortunately for policing in this city we have district attorneys that no longer prosecute. Fear of Asian crime. The only commentary by made of rising about the shortage of funding for the transit system and its assistance is about 70 million dollars a year. People don't pay the fee on that but the district attorneys won't allow the police to basically arrest and prevent that type of crime. People would feel a lot better feeling that criminals were not being able to access the system so easily. So it's like we dealt with a very dangerous situation back in the early 90s budget holding. It sure is. Overall crime is the moment when we dealt with it successfully but there's an unwillingness some are part of the political leadership in this state. It is the city council of the city. I'd like to be a risk willing to do something assertive about dealing with crime. Well we've been here before. Yeah we saw that before. We could do it again. We've been here before. And let's talk a little bit more about that. We know that Eric Adams of course is ran on a platform that was pretty much centered around fighting crime. He is actually sort of I guess looked into that tool bag of things that he can use to fight crime. And a lot of those are some of the same tools that you yourself used. And you were a police commissioner back in the 1990s here. Do you think that what was effective may be back in the mid 90s can be effective now in the world we're in today. It could be even more effective now because we've learned a lot about how not to over arrest if you will. We've learned to develop precision policing. The combat system is phenomenal technology that's being denied recent this time in this city in this state. Facial recognition artificial intelligence officers video systems that we have currently. So that what worked in the 90s can work in this way for a century and work in a way that is less offensive particularly to the city's minority populations. Political leadership at this state is so concerned. So that's the good news. The problem that the mayor is having is getting people to common ground to develop trust in his leadership that he is the right man at the right time. I firmly believe that strongly supportive of what we do. So what I was with him when he worked with me a transit back in the early 90s. So this can be done. But it's it's got to be an uphill struggle unfortunately for the near term. All right. A lot for the new mayor to tackle here. We really appreciate you taking time to be with us Bill. That's Bill Bratton the former New York City police commissioner. All right. We are going to turn back from that story here in New York City and look more broadly here at the markets as we do. Countdown to the closing bells here in New York. Just a little less than 10 minutes ago a day where we see stocks swinging between gains and losses on the back of course of more insight into economic conditions. Angelina Newman joining us right now managing director private wealth adviser and portfolio manager for UBS Global Wealth Management. Angie I appreciate you taking time to be with us today here. Let's start off here with general investor sentiment here in the face of rising inflation in the face of course of a lot of economic uncertainty. What are you hearing. Well we're getting a lot of questions obviously around whether or not we expect there will be a recession and our base case answer to that is we do not believe that that's going to happen. We're cautioning investors against overreacting in this market. We know there are a lot of headwinds. We know there are a lot of you know the yield curve inversion the CPI that Xi Jinping. But we have a lot of positive notes too that would really like to highlight to make people feel a little bit better because clearly this time is you know it's concerning. And when they hear recession when they all getting concerned what are clients wanting to do. Is it to take money out put cash on the sidelines wait for a better entry point and when they are like that. Would you say to address those concerns. I usually say you know this is a great time to sit down with your financial adviser revisit your plan. Take a look at your goals. Take a look at your timeframes. How realistic are they. Run a couple of short of what we call what if scenarios where you change capital markets assumptions. We have been so blessed over the last couple of years to have such robust returns around all asset classes. Things are changing now and there's there's some required discipline in the game plan is changing. So what we're saying is depending on your personal situation sit down talk about it and perhaps there's some reallocation recommendations that we're going to make. But again you know we're focusing on some different asset classes where we have more heavily invested in and things like value when it comes to the equities. Clearly the growth names have just again had an amazing run a last couple of years. What about what about real assets. And you you hear a lot of talk about that now given the inflationary impact real assets such as private assets or real estate is that what you correct. Yes yes. Yes. So we are having a lot of conversations around that as well. I think for good reason investors aren't aren't happy seeing what public markets are doing in the volatility. So we are highly recommending private equity here. We like private jet. We have a really robust platform here. We do like real estate opportunity zones some direct investments. We like the alternative space in general or the nontraditional space in general to add alpha to portfolios and smooth out those returns and talk to us about where your clients and indeed where you are advising clients to allocate money geographically. At the moment on Jazmine is the United States with a more hawkish Federal Reserve. The place to be putting your money is there. Other areas that they should be assessing. We are focused mostly on the United States. Again depending on the risk tolerance some of the investor you know we do feel like China may be a good buy here but we're focused mostly domestic engine human. Many interesting take at the end though. We thank you so much for spending some time with us today managing director private wealth adviser and portfolio manager of UBS Global Wealth Management. It is of course a difficult day to weave the narratives when we first come in. We talk about the data. You look at the eight thirty a.m. print of inflation remain. But at that exact moment somewhere in Brooklyn a devastating attack was occurring. And it's to stay off of emotion that we have to address as well for New Yorkers. Yeah. And of course with a lot of people of course being called back to the office a lot of tourists are starting to come back into the city after a two year long effectively lockdown in this city. That kept a lot of people away. And of course people need to have faith in their transit system and a faith in the security of our subway system as well as our streets here. We do want to get back of course to the market close here as we do countdown to the close here. Stocks pretty much all around kind of struggling to stay above water here looking at the third day of declines for the S & P 500. And we are going to have full coverage right here on Bloomberg as we always do every day at this time as we take you to the bell and beyond. Beyond the Bell Bloomberg's comprehensive cross platform coverage of the U.S. market close. Starts right now. And right now we are two minutes away from the end of the trading day. Romaine Bostick and Caroline here Caroline Hyde here counting you down to the closing bell. And here to help take us beyond the bell Carol Massar a.m. stunner. We welcome our audiences across Bloomberg Television Radio and YouTube. And Carol taking a look at the markets here. We should point out that all of the major indices did open in the green today but right now almost all of them are in the red here. Still some concerns here about the economic picture. A much more negative tone here with just a few minutes left in the trading session. I got to say remain I've been keeping an eye on the bank stocks down about one point four percent. JPM of course J.P. Morgan reporting tomorrow. This group is down about 20 percent from January 13th. We've seen a lot of pressure. So I'm wondering Tim will they maybe come out better than expected tomorrow or will they kind of you know show the. Activity that we've seen in the trade in these names so far this year. Yeah that's a question. But I'm also thinking bigger picture when it comes to these bank stocks and getting an idea from them about how consumers are using credit cards what consumer spending is looking like and if we can get any insight into sentiment and how they're seeing across their customers because they have such a good look at the economy. And I think we have to address sentiment at this moment. Right now of course a day where sentiment took a real hit in the city that we know that we love in a place where we all want to get back to normal at the moment. So I think there's a focus on how consumers are dealing with the situation thus far. I think this is an interesting day to be trying to address markets and indeed us as New Yorkers and we address those markets. We should point out in addition to that CPI data there were a couple of interesting sentiment data points at least as far as investors are concerned. And business owners at NFIB small business a sentiment indicator as well as that Bank of America survey which continue to show a little bit of pessimism and concern here amongst investors and business owners. Maybe that's playing in to what you're seeing on the screen here. We are getting the closing bells here in New York. The Dow Jones Industrial Average is going to finish down by more than 80 points here on the day down by about two tenths of a percent. The S & P 500 now going to log a third day of declines here are down about 15 points or three tenths of a percent. The Nasdaq composite down about 40 points or three tenths of a percent. One of the bright spots though is the Russell 2000. It had fallen for five straight days prior to today. It opened in the green and actually stayed in the green. Looks like it's going to close higher by about three tenths of a percent Caroline Connan and remain in a day where once again we saw some volatility finishing off way off our highs of the day. I wanted to check out the volatility index the VIX just up a hair but coming in at twenty four point fifty three Caroline. Meanwhile let's have a little look at some of the individual industry groups. So we keep such close eye on this particular spot in the market close. We look at what's outperformed on the day. Well we have had it down three tenths percent but still outperformance is once again the industry group that has done so well throughout the entire year. It is energy in. Next up more than one point seven percent. That is we see once again oil above one hundred dollars a barrel in reigniting those inflation. Or is that of course we addressed to the eight point five percent print a little bit earlier. Autos on the higher side tech utilities. But on the downside really notable as we address the earnings season that almost is upon us with the likes of J.P. Morgan banks off by one point three percent. All right. So you guys we're talking about sentiment. This is really important because we know it could in fact impact certainly market moves. It can impact in terms of consumers whether they feel confident enough to go out and buy things. While Bank of America coming out may surveyed a bunch of fund managers and they are saying that they are the most gloomy on record on recession was specifically boats. Interesting is that they've actually got a signal a market signal a contrarian indicator. And it's so bearish it's triggering their buy signal when it comes to stock. So you know that happens right. Whenever so much gloom and doom is out there that ultimately people say OK maybe this is a time to buy. It also affects consumer behavior. And you have to think about inflation expectations versus inflation that we're seeing. There's a great article by Claire Valentine and Charlie Wells a little earlier today on the Bloomberg. And it talks about a Harris poll that Bloomberg News did that Harris Poll did on behalf of Bloomberg News. And more than 80 percent of people are changing the way they're spending money as a result of inflation. So perhaps they're buying more now because they think inflation could go up. And it does tend to turn into the self-fulfilling prophecy of people buying more now because they're worried about prices going up later. Yeah and you're always a reminder of course. Yeah. And getting that inflation report here just how much inflation is outstripping some of those wages wage gains course that we've all applauding. Just a few months ago. But now at least particularly for some of those lower wage workers you're starting to wonder whether there actually is a net benefit. Did you see the Albertson's news earlier today. CEO coming out and saying we're concerned about people at the lower end of the income spectrum because inflation affects them more and their their ability to actually buy food at Albertsons. And this is the tension for a Federal Reserve of course that has to be addressing inequality. Initially we were worried about the inequality the lack of openness in a labor market inclusive labor market running at full steam to be able to ensure that those had previously been left behind and the upward trajectory cycles are brought on board. But now it's when the inequality that inflation inflicts and how the lower income are most affected by all of that. Well this is interesting right. The Fed had put that out front and center. They wanted to make sure that when the economy came back that it was inclusive. But how much is the Fed willing to give that up in its fight against inflation. Guys we just got a really interesting conversation with Veronica Willis our investment strategy analyst at Wells Fargo Investment Institute. She's pretty optimistic about the U.S. economy for the year. She doesn't. Prisons predict a recession happening this year in the U.S.. She can't say the same thing for 2023. They haven't come out with a call yet. But she said it is increasingly a concern. Yeah and I mean I hate to be pessimistic. I mean look we're heading into this earnings season right. I mean we had we actually had some lingering earnings from Q4 including CarMax which report. Q4 ended in February which seemed to show a slow decline at least in unit sales of cars. Of course the price of those cars means that revenue was actually up but some concerns here about margins there. We're going to get a Delta Airlines tomorrow morning. So we'll get a read here on travel trends which we know had been relatively strong as lot of anecdotal evidence that airports are still jammed. But how much does that continue. Yeah. Did you go see this column by the editors at Bloomberg Opinion Piece. And basically I love the headline. I don't expect clairvoyance from the Federal Reserve. And it's just saying you know the balance of future supply and demand is unknowable and so is the correct path for interest rates. I think we need to all be realistic that every meeting is truly a live meeting. But it doesn't know whether the Fed is more aggressive or their backs off. They're going to be looking at the current batch of economic data in front of them to really determine policy. Okay. I want to go back to airports and airlines because what ruined Cincinnati. Yeah. Here we go. You know yesterday I was complaining about how much tickets cost where we today we got the data from the Bureau of Labor Statistics that just in the month of March month over month airline airfares went up ten point seven percent year over year an increase of twenty three point six percent. So it's not just me. It's not just you. Is it all domestic. I would go on to note international versus domestic. But good. Again that comes down to how we want to be spending our money at this moment. We want to suddenly have events. We want to have experiences we want to have services. And therefore perhaps we see a roll off and potentially used cars and car prices and the like. But suddenly the reallocation of where people put their money to work and how people feel of the moment to be able to do so. Yeah. And there's also a question of capacity. And I know we keep talking about the ability of the consumer to keep spending but when you look at household savings rates and things like that that were sort of buffering this economy for so long here you've seen that line on those charts come down pretty significantly here. Then you combine that with you know higher food prices at the grocery store higher gasoline at the pump here and you wonder what the capacity is to keep spending all those discretionary items. We just say that for TV can see this but for radio we're showing a chart and showing that rise that we saw in gasoline prices month over month. I mean 18 percent that's just from last month which is a huge thing. So it's just a reminder that if we start to see some kind of correct in this that will have a big impact on what we're seeing in terms of the overall inflation. And it's psychological. I mean you know people see that even if you don't drive you you see these prices at the gas pump at least you know as advertised. And it affects you because you see those prices going up and it affected the market sentiment today when oil went back above 100 dollars a barrel. Perhaps that's what sort of suddenly pulled back the overall desire to be buying into equities a little bit earlier. It's rough man. And some of those data points certainly just are eye popping. All right guys we got to wrap it. That's going to do it for our cross platform coverage on radio on TV and on YouTube. We will see you again same time same place tomorrow. Coming up while we take a moment away from the markets again we head back out to Brooklyn for the latest developments and get the perspective of course of a local well person voted. Representative Nicole Matt Miller RTX is going to be joining us. Representative from New York. This is Bernie Mac. We turn now back to our top story of the day the shooting aboard a subway train in New York City in the borough of Brooklyn. Bloomberg's critic Gupta is on the ground outside of the station where those folks were evacuated earlier this morning. And Christie was still waiting to hear some updates from the police department as well as other authorities about the search for the shooter. Yeah. That's really where the pieces are starting to come together a little bit really just trails. We'll start off with what Eric Adams said. The mayor of New York City of course he is saying that the subway system within 36 street station did actually fail. Excuse me the camera. So some did actually fail. They are investigating whether or not that's an isolated incident or a broader incident. The other piece of information that they have is they're tracking down a U-Haul with an Arizona license plate in it that could have some connection to the gunman as well. So those are all pieces once again coming together but remain that the shooter is still at large that hunt is still ongoing. And Christi we see signs of life behind you roads open and people driving the commute upon us once more. How is the local infrastructure dealing with that. How is the city going to be dealing with that. Yeah. Caroline the subway station is still closed and will likely be closed for the rest of the day. The school is out. The local school that was right across from where we're set up actually. But the rest of it everything is kind of coming back to normal. You are seeing to your point two way street traffic behind me. You're also seeing people commuting to and from work going to the park taking their dogs out. That is all still there. Now also keep in mind that some of the media presence and the police presence has moved away from this particular location as they start to relocate to one police plaza that is in lower Manhattan where the presser will be. That being said we are going to have our eye for Bloomberg at least on. Then when this particular subway station does reopen. Have we gotten any updates yet Christi on the people who were injured in this last told 16 people injured. Not necessarily all of them shot but 16 people were injured. Yeah well looks like that number is increasing romaine it looks like it's actually twenty nine people according to other reports that you are seeing across the various media sources something that twenty one of them were actually injured and more. Twenty nine people hospitalized. I remember one of some of that is the actual shots and bullet wounds. The awesome of that is simply mental trauma smoke inhalation and of course damage done from shrapnel as well. So we all will be waiting from the update from the New York Police Department the press are not only in terms of what's going to happen with the shooter but of course the status of those hurt as well. All right Chris Gupta. Down on the ground there in Brooklyn just outside of the station here while where that incident ended earlier this morning the hunt for the shooters still continues. We want to continue this conversation now with Representative Nicole Melia Talker. She represents the 11th District of New York which covers Staten Island and portions of southern Brooklyn just south of where this incident took place. Representative. We appreciate you taking time to be with us right now. A lot of the folks that you represent as well as a lot of folks really around all of greater New York are really on edge right now about the situation that not only happened today but really a lot of other incidents that we've seen on our transit system here. What can you tell folks out there right now about the safety of getting on the subway. Well you know I understand that many people are concerned and they are scared and the reality is is that we have a public safety issue in New York City that needs to be addressed. Sadly throughout this these last couple of years we have seen New York City slip in the sense that crime in all categories whether it be shootings or rapes or murder or robberies has increased. And it is a result of policies that have been put in place now in this particular incident. We don't know who the suspect is. We don't know the criminal history. We don't know the motive. And so we really need to allow for the NYPD to do its investigation. But as I've always said we need to give the NYPD the tools and the resources they need to do their job. We need to make sure that we're supportive of them. And when they say that they need something in order to keep our city or our state safe we must listen to them. They are the ones who are on the ground. And fortunately you know we don't have a lot of information at this time. Well we do ask is that anyone that does have information or videos or photos that they please send it to the local precinct because they need this information to track down this individual. And first and foremost make sure he gets off the street immediately. Obviously that is the priority. And of course the other priority is of course on looking after those folks who were injured in this. Representative I am sure is I mean we talk a lot of course about police resources and the need to either increase those resources or at least we allocate them to deal with some of the crime issues in our city. There is also an issue of the infrastructure itself the MTA and the funding for other trains. And the idea that that organization needs money or release has requested more money in order to make the trains at least more efficient if not cleaner and of course safer. And that's why I'm one of the 13 Republicans that supported the infrastructure bill. We know it was a bipartisan piece of legislation that will bring more transit funding for New York City. New York stands to receive over 100 billion dollars. And to hear today that potentially cameras in our transit system we're not operating functionally. That's that's an issue that we need everyone to come together with the MTA MTA police and the NYPD to make sure that our security systems are fully functional. I've also been at the forefront of making sure that we deliver funding for the NYPD. We just as this federal budget were able to secure funding for forensic equipment for protective equipment as well as for the canine unit which is incredibly important for anti-terrorism. And that is what I'm focused on. But one of the other big moves is many people the community been pleading for police officers on our subways. And that is something that I've been supportive of even though we have some elected officials that have said they don't want any cops on our subways. So I think that's going to be a big debate that you're going to hear in the coming weeks about having more police on the street in our subways being able to patrol and keep New York City safe. And of course it's just about a day since President Joe Biden announced new foreign regulation as well. Is that something that needs to be addressed locally here in New York. Well we should be looking at everything at this time. But New York does have the strictest gun laws in the nation. And I will point out something else. It's not just the gun. We've had people who've been stabbed to death. There's people having raped assaults. You know those crimes need to also be addressed. So really it is a systematic issue of going after those individuals who are committing these criminal acts. Making sure that the bad guys are in jail and not released repeatedly back onto the streets. Of course we again we don't know the particular circumstances of this individual whether there was a criminal history there and what the motive was. But we do know is that we do have an issue of repeat offenders being released back on to the street. So certainly I'm sort of going after illegal guns and illegal gun trafficking. But we have to address stabbings and rapes and assaults and car thefts and robberies that are plaguing our city as well. Representative of course many would say longer term of course crime rates have come down significantly here in New York. I want to address more to also the funding. They said that's why you were one of those Republicans that voted for the infrastructure bill for example. We had the former mayor Bill de Blasio on a little bit earlier talking about the emission zone and how in London that is something that's been embraced in a way to support financially the local infrastructure of what is known as the tube here at the MTA. Is that something that you look for. How would you look to fund what are the ways in which people could be allocating funds towards the MTA and mass transit. I think you know the MTA is going to receive a significant cash flow from the infrastructure bill to be able to upgrade one of the biggest things I've said we need to do is focus on upgrading our system to a communication base. Train control. You know this is what they use in London and Paris and Copenhagen. And I've been calling for this for quite some time. When I ran for mayor myself and in 2017 and slowly the system has been upgrading more to more reliable communication beast train control system that would allow more cop cars to run during periods of time increase reliability. And and I think that that's where we need to be going. But certainly the first and foremost thing is we need people to feel safe. And the people are not feeling safe in New York City. We're not going to be able to keep businesses here. We're not to be able to keep residents here. People are going to want to use the subway to go to work. And at the end of the day first and foremost that is what we need to do. We also need to focus on reliability but we need to make sure that the state uses the money properly for the things that we actually need in terms of upgrading our subway system. Suddenly safety first. We thank you so much. New York Representative Nicole Maria Tadeo. We now of course want to get you further up to date with what indeed the administration is saying the moment President Biden delivering remarks in Iowa. White House. Enough to keep around. Oh can decide soon. You do a heck of a job. Thank you so much. I also want to say especially the low to someone who really wanted to be here today and you think I'm kidding. He started. He's the guy that brought me to the first biofuel plant in Iowa years ago. You're a former governor and my secretary of agriculture Tom Vilsack. Of course you couldn't be here today. Went to a press event in Washington. I'm like two thirds the people when I think they got Covid. He's doing fine. Spoke to but he couldn't be here. But I'm here today to talk about the work we're doing to lower costs for American families and put rural America at the center of our efforts to build a future that's made in America. That's not hyperbole. It's about being made in America as it has to do with this industry. I just had a chance to see the work you do here and turn more than 40 million bushels of local corn into 130 million gallons of ethanol a year. That's a lot of gallons. We want to see facilities like this all over the Midwest. Here's why. First it supports farm supports farmers and the farm economy. You know everybody thinks Delaware is a big industrial state. Thank you. State and the plant. We have a fourth class. President Biden is speaking about energy transition in Iowa but had started off his remarks discussing on his trip to Iowa how his team has been in touch with New York authorities on the shooting that occurred here earlier in Brooklyn. Please if you want to listen in more father go to calls live. Go on opening night terminal and listen listening to his remarks. Meanwhile we also had some other interesting breaking news this regarding a corporate change that is currently occurring as we speak. We have of course seen a change perhaps at the top of Wal-Mart as we've been looking at the Wal-Mart hiring John Raney from PayPal as its chief financial officer. So a transition occurring now for what is while the U.S. is biggest retailer. We'll keep you abreast of what is happening in terms of executive change. We also want to keep you up to date with news from around the world. His first word with Mark Crumpton. Caroline thank you very much. And the U.K. Prime Minister Boris Johnson and the chancellor of the Exchequer wishes Sumac have been fined for attending rule breaking gatherings during lockdown. It's the most damaging development yet in the scandal called party gate by the British media. It did not occur to me that this might have been a breach of the rules but of course the police have found otherwise and I fully respect the outcome of their investigation. Both paid the fine and I once again offer a full apology. It's my job to get on and live for the people of this country and that's what I'm going to do. The allegations of lockdown partying brought Mr Johnson's premiership to the brink earlier this year. Russian President Vladimir Putin says peace talks with Ukraine are stalled and he vowed to continue his quote military operation there calling the conflict a tragedy. Ukraine expects Russia to widen its offensive in the eastern part of the country this week echoing a EU was warning which also predicted a quote more protracted and a very bloody phase of the war. The US Storm Prediction Center says it expects some of the worst fire conditions in a decade to sweep across Texas and the southern Great Plains threatening key shale oil fields slaughterhouses and farms dry gusting winds and low humidity will create extreme fire weather from Kansas to west Texas. The Central Plains and the western new was. I've been suffering from drought for months leaving wheat crops parched of no and no rain. Ranchers may not have enough feed for their livestock. Local news 24 hours a day on air and on Bloomberg Quicktake powered by more than twenty seven hundred journalists and analysts in over 120 countries. I'm Mark Crumpton. This is Bloomberg. All right. Dominating the headlines today is that shooting aboard a New York City subway train earlier this morning during the rush hour. It happened out in Brooklyn. The shooter we know is still at large or waiting to get more details out of the NYPD as well as other authorities as to the investigation panel titled Bloomberg Legal REPORTER. Joining us right now. Pat what do we know. Well we know that there is a gunman at large and we know that at least 19 people were taken to the hospital injured including ten who were shot. Night. I'm sorry. Twenty nine people and 19 others injured. Some people have already been released treated and released. But apparently those who were shot were apparently shot by a lone gunman on the train. It was a northbound in train. Patricia I mean what are you thinking of in terms of next steps when anticipating another press conference or anticipating calls needs to be kept up to date. But at the moment all eyes on the peaceful. Well the police are trying to determine why. I understand they're trying to locate the gunman and they're also trying to determine if he acted alone and if there were any other any other planned attacks. Right now the FBI and the NYPD are both saying that they believe they're not ruling out terrorism completely but believe police. This is not necessarily immediately terrorist related. He apparently had were the gunman was stocky man about 5 foot 5. It was a northbound end train. You can imagine it was morning rush hour with hundreds of people on that and on the train. This is a very busy set station. And apparently he opened a canister of smoke bomb. It detonated it with a bang and then started shooting at passengers. And horrifyingly enough the train was trapped stopped in the tunnel. Has this happened. So it was stopped and then people tried to run out of that car and could do this. The door was jammed. All right. We're going to keep an eye on this situation. Pata HURTADO Bloomberg illegal before they're here. We're going to continue our coverage of this incident. More importantly try to get updates not only on the status of that shooter but the status of the victims as well. This is Walter.

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Bloomberg Markets: The Close (4/12/2022)

Caroline Hyde & Romaine Bostick bring you the latest news and analysis on the attack inside a Brooklyn subway system. Guests Today: Ben Emons of Medley Global Advisors, Jamil Jaffir of George Mason University, Nelson Vergara of 360 Protective Solutions, Jeanne Sheenan Zaino of Iona College, Omar Sherif of Inflation Insights, Ann Miletti of Allspring Global Investments, Fmr. NYC Mayor Bill de Blasio, Bill Bratton of Teneo, Angeline Newman of UBS Global Wealth Management, Rep. Nicole Malliotakis, Randy Peers of the Brooklyn Chamber of Commerce. (Source: Bloomberg)

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