WEBVTT - Bloomberg Daybreak: July 6, 2022 - Hour 2 (Radio) 0:00:02.600 --> 0:00:05.960 Live from the Bloomberg Interactor Brooker Studios. This is Bloomberg 0:00:06.040 --> 0:00:09.800 day Break for Wednesday, July six two. Coming up this hour, 0:00:10.080 --> 0:00:13.480 UK Prime Minister Boris Johnson clings to power or at 0:00:13.520 --> 0:00:15.720 ten Downing Street, were the ladies, the U S and 0:00:15.840 --> 0:00:19.520 China holds talks on the war in Ukraine. Oil stabilizes 0:00:19.560 --> 0:00:22.919 have to yesterday's eight percent so long, and Amazon takes 0:00:22.920 --> 0:00:26.239 a steak in grab hung your Jersey Governor Murphy science 0:00:26.280 --> 0:00:29.800 new gun legislation, plus New York Mayor Adams announced as 0:00:29.800 --> 0:00:33.080 a plan to get ghost cars off the streets. I'm 0:00:33.120 --> 0:00:36.560 Michael barn Or ahead, and I'm Scott Sedinberg. Both the 0:00:36.600 --> 0:00:39.520 Yankees ended, Mets lose, plus it up thet on Wimbledon. 0:00:39.720 --> 0:00:44.560 I'll have that and more coming up in sports. That's 0:00:44.560 --> 0:00:47.839 all strading ahead on Bloomberg day Break on Bloomberg, he 0:00:47.920 --> 0:00:52.440 Living freon New York, Bloomberg on Washington, d C, Bloomberg 0:00:52.479 --> 0:00:56.000 one oh six one, Boston, Bloomberg nine sixties and Francisco 0:00:56.400 --> 0:00:59.320 Syrius x M one nineteen and around the world on 0:00:59.440 --> 0:01:02.800 Bloomberg Radio dot Com and via the Bloomberg Business Act. 0:01:07.520 --> 0:01:10.400 Good morning, I'm John Tucker and I'm Karen, Moscow when 0:01:10.480 --> 0:01:13.520 US duncan next. Futures are little change this morning. We're 0:01:13.560 --> 0:01:15.160 coming up to six o one on Wall Street. We 0:01:15.280 --> 0:01:17.720 checked the markets every fifteen minutes throughout the trading day 0:01:17.800 --> 0:01:21.919 on Bloomberg, and futures are trimming their declines. The decks 0:01:21.959 --> 0:01:24.720 in Germany is higher, up one point four percent, can't 0:01:24.720 --> 0:01:27.080 comparis up one point six percent, and the foot Sea 0:01:27.120 --> 0:01:30.080 one hundred one and a half percent. Ten. Your treasury 0:01:30.080 --> 0:01:32.640 down one thirty second yield two point eight zero percent. 0:01:32.720 --> 0:01:35.679 They yield on the two year two point eight three percent. 0:01:36.200 --> 0:01:39.000 Comic School, this little change at one thousand, seven hundred 0:01:39.040 --> 0:01:42.120 sixty two dollars announced, the Euro one point two to 0:01:42.360 --> 0:01:45.000 five against the dollar, the n one five point three 0:01:45.000 --> 0:01:48.920 each too, and bitcoin is at twenty nine dollars, down 0:01:48.920 --> 0:01:51.560 one and a quarter percent. John, Karen, We're gonna have 0:01:51.560 --> 0:01:53.480 more in the markets and just a minute, but first 0:01:53.480 --> 0:01:55.640 we're gonna start with the latest on the future of 0:01:55.760 --> 0:01:59.960 Boris Johnson, the British Prime minister clinging to power following 0:02:00.000 --> 0:02:03.720 the resignations of two senior members of his government. Let's 0:02:03.760 --> 0:02:07.400 get more from Bloomberg's Lizzie Burden outside Number ten, Downing Street, 0:02:07.760 --> 0:02:11.480 started with a surprise apology from Boris Johnson about his 0:02:11.520 --> 0:02:14.160 handling of the Chris Pincher affair, which of course is 0:02:14.200 --> 0:02:17.560 just the latest chapter of the Pestminster story or these 0:02:17.840 --> 0:02:21.880 alleged sexual misconduct scandals. But that was quickly followed by 0:02:21.919 --> 0:02:24.680 the resignations. But two of his most senior team started 0:02:24.760 --> 0:02:27.959 dab at, the Health Secretary and the Chancellor Isshi Snat. 0:02:28.000 --> 0:02:31.920 Both their resignation letters attacked his integrity. And then it 0:02:32.040 --> 0:02:35.440 was the Attorney General and a string of junior government members. 0:02:35.520 --> 0:02:37.919 So it does seem that the tide is finally started 0:02:38.040 --> 0:02:41.160 turn against Boris Johnson. He came back with an emergency 0:02:41.200 --> 0:02:45.720 we shuffle, trying to show his fighting back. Bloomberg's Lizzie Burden, 0:02:45.800 --> 0:02:49.640 reporting outside ten Downing Streets, says Johnson will face questions 0:02:49.919 --> 0:02:52.400 in the House of Commons today. It will also be 0:02:53.320 --> 0:02:57.280 pure before a Parliamentary committee. Well, another political news this morning, 0:02:57.360 --> 0:02:59.880 john Foreign ministers from the Group of Twenty Nations are 0:03:00.000 --> 0:03:03.239 gathering in Bali, Indonesia, and Russia's invasion of Ukraine will 0:03:03.280 --> 0:03:06.200 top the agenda at the meeting. Nathan Hagar has more 0:03:06.240 --> 0:03:10.000 from our Bloomberg One newsroom in Washington, Secretary of State 0:03:10.040 --> 0:03:12.800 Anthony B. Lincoln heads to the G twenty summit today. 0:03:12.919 --> 0:03:15.280 The top US official says he will meet this weekend 0:03:15.360 --> 0:03:18.400 with his Chinese counterpart Wang Yee for a quote candid 0:03:18.480 --> 0:03:21.119 exchange about the war and what the U. S Expects 0:03:21.200 --> 0:03:24.040 not just from China, but from all responsible members of 0:03:24.080 --> 0:03:27.040 the international community. This will be Blincoln's first face to 0:03:27.080 --> 0:03:30.639 face encounter with Wong since October. The State Department says 0:03:30.720 --> 0:03:33.520 Lincoln is not expected to meet with Russian Foreign Minister 0:03:33.560 --> 0:03:36.600 Sergei Lavrov. He is also planning to attend the G 0:03:36.760 --> 0:03:41.240 twenty summit in Washington. I'm Nathan Hagar Bloomberg Daybreak. Thanks Nathan. 0:03:41.640 --> 0:03:45.720 The Secretary General of OPEK has died. Mohammed Barkindo was 0:03:45.760 --> 0:03:47.600 in the final weeks of his six year ten years 0:03:47.640 --> 0:03:49.880 the head of the oil cartel when he died in 0:03:49.960 --> 0:03:53.120 his native Nigeria, where it kinda oversaw one of the 0:03:53.160 --> 0:03:57.800 most turbulent periods in OPEC's history. He was sixty three. Meantime, 0:03:57.840 --> 0:04:00.440 in the markets, John Oil is recovering some of esterday's 0:04:00.480 --> 0:04:02.920 eight percent loss. Checking prances right now and I'm ex 0:04:02.960 --> 0:04:05.760 screwed Oil is up four tenths percent. It's a ninety 0:04:06.360 --> 0:04:09.000 eighty nine cents of barrel Brent is up one percent 0:04:09.040 --> 0:04:12.560 and a hundred three dollars eighties cents banks including Goldman Sactually, 0:04:12.640 --> 0:04:15.480 the recent plunge on recession fears is overdone and the 0:04:15.480 --> 0:04:18.640 outlook for energy consumption in China is improving. And in 0:04:18.720 --> 0:04:21.400 Asia over nine stocks dip as fears of an economic 0:04:21.440 --> 0:04:25.080 downturn lingered over financial markets and that have the dollar 0:04:25.279 --> 0:04:27.560 hovering at the highest level in more than two years. 0:04:27.920 --> 0:04:31.560 Let's get the recap from Bloomberg's Juliet Sally and Singapore. 0:04:32.040 --> 0:04:34.280 China chipmakers were one of the few bright spots in 0:04:34.320 --> 0:04:37.120 the markets Wednesday, after Bloomberg News reported the US is 0:04:37.160 --> 0:04:40.120 pushing the Netherlands to ban a s mL holding from 0:04:40.120 --> 0:04:43.799 selling to China technology essential in making a large chunk 0:04:43.839 --> 0:04:47.040 of the world's chips. But Asian energy stocks lost all 0:04:47.080 --> 0:04:50.039 this year's gains as crude oil struggled to regain Tuesday's 0:04:50.040 --> 0:04:53.000 steet losses bod a new program of virus testing in 0:04:53.040 --> 0:04:56.320 Shanghai has raised the likelihood of another lookdown and that 0:04:56.360 --> 0:05:00.480 weight on investor sentiment during Wednesday session in Singapore, Juliette 0:05:00.480 --> 0:05:04.039 Sally Bloomberg daybreak right Juliette. While here in the US, 0:05:04.160 --> 0:05:07.920 futures have been erasing their losses following yesterday's late day rally. 0:05:08.000 --> 0:05:10.200 At one point, the S and P five is down 0:05:10.200 --> 0:05:13.400 more than two percent before ending the day higher. Sylvia 0:05:13.520 --> 0:05:17.560 Oblonsky is chief investment officer at Defian CTFs. You know, 0:05:17.600 --> 0:05:19.240 I think in the near term we get that range 0:05:19.240 --> 0:05:23.599 found volatility. But investors that you have been waiting for 0:05:23.839 --> 0:05:26.280 something might be thinking, you know, we can't call the 0:05:26.320 --> 0:05:29.640 bottom here, but is it possible that the market has 0:05:29.680 --> 0:05:31.919 done some of the work for the Fed? And is 0:05:31.920 --> 0:05:34.600 it possible that putting that first dollar to work makes 0:05:34.600 --> 0:05:37.960 sense here? Sylvia Oblonsky at Defian c t F says 0:05:38.000 --> 0:05:41.000 the markets are already pricing in a recession, and on 0:05:41.080 --> 0:05:43.839 the economic calendar today we get minutes from the Federal 0:05:43.880 --> 0:05:47.400 Reserves June meeting. That's when the central bankers raised the 0:05:47.400 --> 0:05:50.960 interest rate by seventy basis points. Meantime, economists say a 0:05:50.960 --> 0:05:54.839 broad index of inflation expectations that the Fed watches is 0:05:54.880 --> 0:05:57.840 expensive to show a big rise when it's published later 0:05:57.880 --> 0:06:00.480 this month. Well, in corporate news, this more ning John, 0:06:00.520 --> 0:06:02.840 it looks like Amazon is on the acquisition trail, and 0:06:02.920 --> 0:06:05.280 we get the latest lie from Bloomberg's Randy A Young 0:06:05.360 --> 0:06:08.080 good morning, Ready to good morning, Karen. Amazon will get 0:06:08.120 --> 0:06:11.200 options for US two percent Steak and grub Hub, and 0:06:11.200 --> 0:06:14.320 we'll have the chance to increase that holding to fifteen percent. 0:06:14.760 --> 0:06:17.520 Amazon Steak will be in the form of warrants. They'll 0:06:17.560 --> 0:06:20.480 vest depending on how well the partnership performs and how 0:06:20.520 --> 0:06:23.440 many new customers come as a result. It's a relief 0:06:23.480 --> 0:06:26.440 for the struggling grub Hub, which in April announced plans 0:06:26.480 --> 0:06:29.760 to find an investor or bidd shares for parent company. 0:06:29.880 --> 0:06:32.560 Just Eat jumped as much as six percent to an 0:06:32.600 --> 0:06:36.480 Amsterdam today. The stock had fallen close to seventy percent 0:06:36.720 --> 0:06:39.200 this year. Live in New York, I'm gonna need a 0:06:39.240 --> 0:06:41.240 Young Bloomberg day break, all right, thanks riding to the 0:06:41.320 --> 0:06:46.040 crypto crash has claimed another victim. Broker Voyager Digital, has 0:06:46.080 --> 0:06:49.760 filed for Chapter eleven bankruptcy protection. The New York based 0:06:49.760 --> 0:06:53.040 firm sites market volatility and the collapse of a hedge 0:06:53.040 --> 0:06:56.279 fund to which it had lent money and in future 0:06:56.360 --> 0:06:59.560 is this morning our little change. The dacts in Germany 0:06:59.600 --> 0:07:01.520 is up one point four percent and the ten year 0:07:01.560 --> 0:07:04.440 treasury down three thirty seconds. You know two point eight 0:07:04.520 --> 0:07:07.119 one percent. They yield on the two year two point 0:07:07.200 --> 0:07:10.080 eight three per cent. And taking a look at crypto 0:07:10.360 --> 0:07:14.880 bitcoin down one at one d seventy seven dollars straight ahead, 0:07:14.880 --> 0:07:17.440 you're like this to local headlines plus a check of 0:07:17.560 --> 0:07:24.720 sports and this is Bloomberg. Thanksn six or seven of walls. 0:07:24.760 --> 0:07:26.840 Creet pant time to bring in Michael barn to find 0:07:26.840 --> 0:07:29.080 out one else is going on in New York hand 0:07:29.560 --> 0:07:31.600 around the world. Yeah, and thank you very much, sir. 0:07:31.680 --> 0:07:34.720 The gunman accused of attacking and Independence Day parade in 0:07:34.800 --> 0:07:38.320 suburban Chicago has been charged now with seven counts of 0:07:38.360 --> 0:07:41.800 first degree murder, and more charges are expected. Lake County 0:07:41.920 --> 0:07:45.240 State's Attorney Eric Reinhardt, the loss of life and these 0:07:45.280 --> 0:07:50.040 devastating injuries and the overwhelming psychological trauma demand we see 0:07:50.160 --> 0:07:54.320 justice and then we take broader action to protect life. 0:07:54.640 --> 0:07:58.600 State Attorney Eric Reinhardt says that the suspect, Robert Cremo, 0:07:58.960 --> 0:08:02.240 if convicted of a would receive a mandatory life sentence 0:08:02.280 --> 0:08:05.800 without the possibility of parole. New Jersey Governor Phil Murphy 0:08:05.840 --> 0:08:09.120 signed a package of bills touted to increase gun safety 0:08:09.240 --> 0:08:11.800 less than two weeks after the U. S. Supreme Court 0:08:11.920 --> 0:08:17.000 weakened the state's ability to restrict carrying concealed firearms, Murphy 0:08:17.080 --> 0:08:20.400 signed seven bills and promised more action. There are those 0:08:20.480 --> 0:08:23.920 who take seriously the words of the satirical website The Onion, 0:08:24.480 --> 0:08:27.280 and this was the headline, no way to prevent this, 0:08:27.640 --> 0:08:32.679 says only nation where this regularly happens, And sadly it 0:08:32.800 --> 0:08:37.360 appears six of these mistaken people sit on the Supreme 0:08:37.440 --> 0:08:40.760 Court of the United States of America. Governor Murphy says 0:08:40.800 --> 0:08:44.640 the new laws include mandatory training prior to a gun purchase, 0:08:45.000 --> 0:08:49.640 tracking of ammunition sales, and micro stamping technology so bullets 0:08:49.679 --> 0:08:52.960 can be traced to particular weapons. New York City Mayor 0:08:53.120 --> 0:08:56.520 Eric Adams says drivers of vehicles caught with illegal fake 0:08:56.760 --> 0:09:00.240 paper license plates will be towed and could pretend should 0:09:00.240 --> 0:09:03.480 be auctioned off. Thor Adams says that they're cracking down 0:09:03.600 --> 0:09:07.120 on ghost cars because we know the drivers of these 0:09:07.200 --> 0:09:09.800 cars are quote up to no good. And I said 0:09:09.840 --> 0:09:12.439 over and over again, there are many rivers that feed 0:09:12.600 --> 0:09:17.120 the sea of violence, with damn in each river and 0:09:17.240 --> 0:09:20.640 paper place. To some you'll say, well, what does that 0:09:20.800 --> 0:09:23.480 have to do with damn in the River. It damns 0:09:23.520 --> 0:09:28.479 the river of people using their vehicles for illegal behavior. 0:09:29.200 --> 0:09:32.200 Mayor Adams says the law is coming after anyone who 0:09:32.280 --> 0:09:36.640 tries to make their car untraceable. Rudy Giuliani, Senator Lindsey Graham, 0:09:36.720 --> 0:09:39.040 and five others have been called to testify before a 0:09:39.120 --> 0:09:42.959 special grand jury in Atlanta. According to court filings. It's 0:09:43.000 --> 0:09:46.760 part of an investigation into alleged attempts by former President 0:09:46.800 --> 0:09:49.199 Trump and his supporters to change the result of the 0:09:49.880 --> 0:09:53.160 election in Georgia. Global News twenty four hours a day 0:09:53.280 --> 0:09:56.280 on it Or and on Bloomberg Quicktake, powered by more 0:09:56.360 --> 0:09:58.839 than twenty seven hundred journalists and analysts more than a 0:09:59.080 --> 0:10:02.400 d twenty countries. Michael Barr and this is Bloomberg. John, 0:10:02.520 --> 0:10:08.760 all right, Michael, thank you, And it's now six ten 0:10:09.480 --> 0:10:12.080 Wall Street. That's time to the Bloomberg Sports Update. Here's 0:10:12.080 --> 0:10:15.679 Scott Sedenburg. Thanks John. Max Scherzer returned from the I 0:10:15.920 --> 0:10:19.839 L and was absolutely dominant. Season high eleven strikeouts and 0:10:20.000 --> 0:10:23.440 six shutout and he's allowing just two hits and that's however, 0:10:23.520 --> 0:10:26.000 could not muster up any offense. And the news in 0:10:26.080 --> 0:10:29.320 the bottom of the ninth to the Reds wanted nothing here, 0:10:29.400 --> 0:10:33.959 were sheerser on his outing m no issues whatsoever today 0:10:35.679 --> 0:10:37.719 all the way through, and they were tightening up on me. 0:10:37.800 --> 0:10:40.840 So that's that's good thing. David Peterson gets the start tonight. 0:10:41.160 --> 0:10:43.480 The Yankees New Wild felt at the Pirates five to 0:10:43.760 --> 0:10:47.079 Jamison Tyon's returned to Pittsburgh was spoiled early when he 0:10:47.160 --> 0:10:49.600 allowed a Dan Vogel back home run in the second 0:10:49.679 --> 0:10:52.079 and then a two run shot the rookie Jackson Winsky 0:10:52.200 --> 0:10:54.920 in the fourth. It was the first loss for Tayland 0:10:55.040 --> 0:10:58.679 since April eleven. The Yankees losing back to back games 0:10:58.760 --> 0:11:02.160 for just the fifth time this season, will be SEVENO 0:11:02.600 --> 0:11:06.080 will start tonight. Tennis at Wimill didn't. Novak Djokovic rally 0:11:06.120 --> 0:11:08.680 from two sets down to defeat Yonic Center and advanced 0:11:08.679 --> 0:11:11.680 to the semi finals. Wrapping on the Dall Bass American 0:11:11.720 --> 0:11:15.439 Tailor Frits in today's quarter final. I'm Scott Seginberg with 0:11:15.520 --> 0:11:19.719 Bloomberg Sports. John all right, thanks Scott, and ahead of 0:11:19.760 --> 0:11:23.199 the cash Open on Wall Street. Futures right now pretty 0:11:23.280 --> 0:11:27.199 much unchanged. DAL futures just four points lower, SMPE many 0:11:27.280 --> 0:11:31.040 futures down the point. The Nasdack futures they are seven 0:11:31.120 --> 0:11:34.160 points lower. With all the turmoil happening in the UK 0:11:34.440 --> 0:11:37.640 on the political front, Pound sterling down about a tenth 0:11:37.679 --> 0:11:40.960 of a percent at one nineteen thirty two. And as 0:11:41.000 --> 0:11:44.400 we look at treasuries right now, there is this inversion 0:11:44.720 --> 0:11:47.800 in the twos and tens, the two year above the 0:11:47.880 --> 0:11:50.400 ten year right now to eighty four the tenure yield 0:11:50.800 --> 0:11:55.160 at two point eight one percent. And as we look 0:11:55.240 --> 0:11:59.600 at Komas Gold that is at seventeen sixty ounce down 0:11:59.720 --> 0:12:07.560 three dollars. You're listening to Bloomberg dbread Bloomberg Weather from 0:12:07.600 --> 0:12:11.760 Gary Bess. Sunshine today to ninety tonight, increasing cloud slow 0:12:11.800 --> 0:12:14.880 about seventy Tomorrow's ammock most Lake cloudy, could see some 0:12:14.960 --> 0:12:23.079 showers in the afternoon, behid tomorrow to eight markets headlines 0:12:23.160 --> 0:12:26.120 and breaking news twenty four hours a day at Bloomberg 0:12:26.200 --> 0:12:29.600 dot Com, the Bloomberg Business at and at Bloomberg Quicktape. 0:12:29.800 --> 0:12:38.760 This is a Bloomberg Business Flash and I'm Karen Moscow. 0:12:38.840 --> 0:12:41.319 This update brought to you by Informatica and the cloud 0:12:41.320 --> 0:12:43.480 of your data has the power to do the extraordinary. 0:12:43.559 --> 0:12:46.320 Managed data across any location in the cloud for accurate 0:12:46.360 --> 0:12:50.760 and actionable insights. More at Informatica dot com US dot 0:12:50.800 --> 0:12:53.319 indise futures are a little change this morning. I'm a 0:12:53.400 --> 0:12:56.840 concern over a global economic slowdown. Who checked the markets 0:12:56.880 --> 0:13:00.280 every fifteen minutes throughout the trading day on Bloomberg Right now, 0:13:00.400 --> 0:13:02.840 the jacks in Germany is higher up one point four percent. 0:13:03.000 --> 0:13:05.520 Ten year Treasury down three thirty seconds, yield two point 0:13:05.600 --> 0:13:07.840 eight one percent, yield on the two year two point 0:13:07.880 --> 0:13:10.599 eight four percent. Ninemex scrude oil is up tenth of 0:13:10.640 --> 0:13:13.319 upper cent or fourteen cents, and ninety nine sixty four 0:13:13.400 --> 0:13:15.920 cents of barrel co make school down to ten percent 0:13:16.040 --> 0:13:18.800 or three dollars ten cents at seventeen sixty eight announce 0:13:19.200 --> 0:13:21.960 The Euro one point two two zero against the dollar, 0:13:22.040 --> 0:13:25.400 British pound one point one seven, and the one thirty 0:13:25.480 --> 0:13:28.480 five point three three bitcoin is lower down one point 0:13:28.559 --> 0:13:32.079 six percent at twenty thousand, one hundred nine dollars. And 0:13:32.400 --> 0:13:35.160 that's a Bloomberg business flashdown. Here's Michael bar with more 0:13:35.240 --> 0:13:37.760 on what's going on around the world. Michael Karen, thank 0:13:37.800 --> 0:13:40.120 you very much. At least seven people are now dead 0:13:40.200 --> 0:13:43.240 after Monday's match shooting at the Chicago area of Fourth 0:13:43.280 --> 0:13:47.400 of July Parade, with over two dozen others hospitalized. The 0:13:47.520 --> 0:13:51.480 suspect now faces seven charges of first degree murder. Former 0:13:51.520 --> 0:13:55.040 Trump attorney Rudy Giuliani, Senator Lindsey Graham, and five others 0:13:55.320 --> 0:13:58.160 have been called to testify before a special grand jury 0:13:58.200 --> 0:14:01.520 in Atlanta. It is part of an investigation into alleged 0:14:01.559 --> 0:14:05.199 attempts by former President Donald Trump and his supporters to 0:14:05.440 --> 0:14:09.800 change the results of the election in Georgia. In baseball, 0:14:09.880 --> 0:14:12.719 the Yankees and Mets lost. The Nationals, Red Sox and 0:14:12.840 --> 0:14:16.920 Giants also lost. The Orioles and A's one Global News 0:14:17.000 --> 0:14:20.280 twenty four hours a day on air and on Bloomberg Quicktake, 0:14:20.560 --> 0:14:23.240 powered by more than twenty seven under journalists, and then 0:14:23.400 --> 0:14:26.120 list to more than twenty countries. I'm Michael Barr and 0:14:26.200 --> 0:14:29.560 this is Bloomberg John Michael, thank you. It is six 0:14:29.720 --> 0:14:31.640 nineteen out of Wall Street. We are live from the 0:14:31.640 --> 0:14:36.840 Bloomberg Interrantbroker Studios. This is Bloomberg day Break. Boris Johnson 0:14:36.880 --> 0:14:40.440 appears to be hanging by a thread this morning after 0:14:40.480 --> 0:14:43.920 the British Prime Minister suffered several high profile resignations in 0:14:44.000 --> 0:14:47.920 his government, and Bloomberg's Lizzie Burden is outside number ten 0:14:48.000 --> 0:14:51.880 Downing Street, this morning with the tails Lizzie Yes, john 0:14:51.960 --> 0:14:54.600 on the cover of the u K new tapers this morning. 0:14:55.160 --> 0:14:57.880 You've got them just describing his situation is on the 0:14:57.960 --> 0:15:01.960 brink and another refers to him as de greased piglet 0:15:02.120 --> 0:15:06.520 remember that Monika, that he manages to vide these situations, 0:15:06.880 --> 0:15:10.640 but the historically put his predecessors, putting his predecessors, and 0:15:10.680 --> 0:15:13.320 there's so much pressure that they resigned. Well, it doesn't 0:15:13.360 --> 0:15:16.760 look likely that he will do that. Last night his 0:15:17.360 --> 0:15:20.280 Health Secretary Sager Javid, who was also a former Chancellor, 0:15:20.600 --> 0:15:24.480 and the Chancellor Rishie Cunach quit. They said they couldn't 0:15:24.640 --> 0:15:28.480 handle having to stand up in public and defend his 0:15:29.520 --> 0:15:33.200 handling of the Chris Pincher affair. This MP, who was 0:15:33.280 --> 0:15:37.480 alleged to have been involved in sexual misconduct but was 0:15:37.560 --> 0:15:41.960 then rehired into the government as Deputy Chief Whip. Both 0:15:42.040 --> 0:15:46.720 of their resignation letters going hard with the venomous language 0:15:47.400 --> 0:15:52.000 about Johnson's integrity. And yet overnight we've had even more 0:15:52.400 --> 0:15:56.600 junior resignation nations, even into the past few minutes. So 0:15:57.040 --> 0:16:00.480 our reporter Alex Wickham is this morning rob wating that 0:16:00.880 --> 0:16:04.320 Johnson's on regular for signs of a coordinated clot from 0:16:04.440 --> 0:16:07.160 his ministers to bring him down, because if six or 0:16:07.280 --> 0:16:09.760 eight of the cabinet quit, it would leave him struggling 0:16:09.800 --> 0:16:14.880 even to form a cabinet. The resignations, are they an 0:16:14.960 --> 0:16:19.200 act of conscience or are these people after his job? 0:16:21.000 --> 0:16:27.560 Well basis started. David and Richie Senac have I thought 0:16:27.600 --> 0:16:31.320 to have leadership ambitions chi David has stood before, and 0:16:31.400 --> 0:16:33.280 they're going to be even more dangerous. If they're on 0:16:33.320 --> 0:16:36.440 the back benches, they'll be able to more easily organize 0:16:36.680 --> 0:16:40.600 other MPs around them. Richie Senac, in his resignation letter, 0:16:40.720 --> 0:16:44.600 said that he accepted this maybe his last ministerial position, 0:16:45.440 --> 0:16:48.480 but you know, well perhaps he'll have a position in 0:16:48.600 --> 0:16:52.360 his own government. Who knows. But it wasn't all about 0:16:52.880 --> 0:16:58.360 this Pestminster as it's called scandal for Richie Sunac. It 0:16:58.560 --> 0:17:03.040 was also about Johnson's handling of the post COVID economic recovery. 0:17:04.000 --> 0:17:07.520 He has said that he had to take difficult decisions. 0:17:07.760 --> 0:17:10.280 If something is too good to be true, it probably is. 0:17:10.560 --> 0:17:14.399 He said his approach was fundamentally different from Johnson on 0:17:14.560 --> 0:17:17.920 the economy, so clearly he couldn't get on board with 0:17:18.000 --> 0:17:22.439 the fiscal boosterism that Johnson. Johnson wanted of him explain 0:17:22.520 --> 0:17:24.960 to us what the Prime Minister faces now with the 0:17:25.200 --> 0:17:28.240 there's a que and where there's a question session in Parliament, 0:17:28.600 --> 0:17:33.640 and explain to us also what the Liaison Committee is. Yes, 0:17:33.760 --> 0:17:36.560 so first of all, we'll have Prime Minister's Questions weekly 0:17:36.640 --> 0:17:40.640 session where Johnson's first of all grilled by the Leader 0:17:40.680 --> 0:17:44.600 of the Opposition, Keir Starmer, and then other MPs in 0:17:44.640 --> 0:17:48.359 the chamber. But in previous week's Keir Starmer seems to 0:17:48.440 --> 0:17:50.840 have missed an open goal, so because too much on 0:17:51.000 --> 0:17:57.160 policy rather than personality when Boris Johnson's been at his weakest, 0:17:57.760 --> 0:18:02.040 then Johnson's paces more question students from the Liaison Committee. 0:18:02.200 --> 0:18:05.920 That's the heads of all the parliamentary select committees. So 0:18:06.119 --> 0:18:08.359 he'll be getting questions from all different angles and it 0:18:08.400 --> 0:18:11.520 will be a very tough crowd to please. Bloomberg's Lizzie 0:18:11.560 --> 0:18:14.359 Burden outside Number ten, Downing Street, covering the latest on 0:18:14.400 --> 0:18:18.080 Boris Johnson's government in turmoil. Lizzie, thanks a lot. We're 0:18:18.080 --> 0:18:20.359 gonna continue to update the story as it develops throughout 0:18:20.359 --> 0:18:23.400 the day right here on Bloomberg Radio. So now let's 0:18:23.440 --> 0:18:26.360 turn to the markets, where concern continues to swirl over 0:18:26.920 --> 0:18:31.680 a possible global economic slow down. Also get Fed minutes today, 0:18:31.760 --> 0:18:33.640 let's get you set up for the trading day head 0:18:33.680 --> 0:18:38.320 now joining us Lizzie Saunders, chief investment strategist at Charles Schwab. 0:18:38.720 --> 0:18:41.560 What a pleasure. Um, we do this as let's see 0:18:41.640 --> 0:18:46.720 nimex Crude Lauzanne below one the two years and the 0:18:46.800 --> 0:18:50.640 ten year treasuries inverted to eighty three to eighty one. 0:18:51.400 --> 0:18:54.640 So the question to you inflation taking a back seat 0:18:54.680 --> 0:18:57.600 now to recession fears and markets, Well, I think it's 0:18:57.640 --> 0:19:01.640 a combination, and regardless of where there is, ultimately will 0:19:01.760 --> 0:19:04.320 be declared an official recession. I mean, the growth slow 0:19:04.359 --> 0:19:07.800 down is very obvious, so I'm not sure that semantics 0:19:07.880 --> 0:19:10.760 around what we call this matters all that much. And 0:19:10.880 --> 0:19:14.040 I do think that whether it's specifically the reason for 0:19:14.200 --> 0:19:18.560 the reversal yesterday, the idea that slower growth is one 0:19:18.600 --> 0:19:21.720 of the best sort of cures for the inflation problems. 0:19:21.800 --> 0:19:25.920 So this notion that a recession or a slowdown is 0:19:26.560 --> 0:19:29.440 kind of a feature, uh, not a bug, of what 0:19:30.440 --> 0:19:33.280 the FED is trying to accomplish here with bringing demand 0:19:33.359 --> 0:19:35.440 down and in turn inflation down. And you're seeing it 0:19:35.440 --> 0:19:38.200 in a lot of the of the forward looking data, 0:19:38.600 --> 0:19:41.760 So does the trajectory for the policy makers does that 0:19:41.920 --> 0:19:46.960 now change? So that that's that's an interesting question. So 0:19:47.400 --> 0:19:51.040 you know, embedded and Expectations is still a seventy five 0:19:51.080 --> 0:19:54.240 basis point hike this month, But I wouldn't be surprised 0:19:54.320 --> 0:19:57.359 if maybe there was more softening of the language for 0:19:57.440 --> 0:20:02.080 the outlook into the September meeting, assuming we don't see 0:20:02.560 --> 0:20:06.040 a pickup and growth um So it does look like 0:20:06.160 --> 0:20:09.879 SEV is still on the table for July, but maybe 0:20:10.080 --> 0:20:13.520 some of the aggressive assumptions into September and the remainder 0:20:13.640 --> 0:20:15.760 of the year start to be tempered by ritual the 0:20:15.840 --> 0:20:18.239 slowdown we're in the midst of. I know I can 0:20:18.280 --> 0:20:22.240 split here is on definitions, but and discover undervalued companies 0:20:22.320 --> 0:20:25.040 that may have greater growth potential. Try ib k R 0:20:25.080 --> 0:20:27.960 Global Analyst today, Yet I b k R dot com 0:20:28.080 --> 0:20:32.000 slash g A. First, we turned back to British Prime 0:20:32.040 --> 0:20:36.040 Minister Boris Johnson and his political future hanging by us thread. 0:20:36.240 --> 0:20:39.560 Bloomberg's Lizzie Burden joins us and once again from outside 0:20:39.600 --> 0:20:43.399 ten Downing Street, Boris Johnson is hanging by a thread. Hit. 0:20:43.880 --> 0:20:48.280 It started off with that surprise Stone public apology his 0:20:48.400 --> 0:20:51.119 handling of the Chris Pincher affair, but it was followed 0:20:51.200 --> 0:20:54.840 quickly by the resignation of his Health Secretary Saja Javit 0:20:55.000 --> 0:20:58.159 and then his Chancellor Rishi Sunach. Then it was followed 0:20:58.200 --> 0:21:00.439 by the resignation of the Attorney General and a string 0:21:00.560 --> 0:21:03.600 of junior ministers, suggesting perhaps that the tide has now 0:21:03.760 --> 0:21:07.960 turned on Boris Johnson and Bloomberg's Lizzie Burden says Johnson 0:21:08.000 --> 0:21:10.480 will face questions in the House that Commons today and 0:21:10.560 --> 0:21:14.159 also appear before a Parliamentary committee and bank here At 0:21:14.160 --> 0:21:16.800 the US futures, coming off of late day rally, the 0:21:17.000 --> 0:21:19.479 SMP five hundred was down more than two percent at 0:21:19.520 --> 0:21:23.240 one point yesterday before ending the day higher. Sylvia Jablonsky 0:21:23.440 --> 0:21:26.920 is chief investment officer at Definance CTMs and says markets 0:21:27.160 --> 0:21:30.000 already are pricing in a recession. The market has done 0:21:30.000 --> 0:21:32.000 a lot of work, and if you think about recessions 0:21:32.080 --> 0:21:34.560 to come, a lot of that is froth taken off 0:21:34.640 --> 0:21:36.879 the market before we sort of hit that point. So 0:21:36.960 --> 0:21:39.280 I do think that we're seeing sort of hope that 0:21:39.359 --> 0:21:41.639 we're nearing some bottoms here. That doesn't mean that We 0:21:41.680 --> 0:21:43.720 can't go lower a little bit, but I think we're 0:21:43.760 --> 0:21:47.520 more than halfway there. Sylvia Jablonsky Definance CTM says markets 0:21:47.720 --> 0:21:49.760 have done a lot of the Fed's work and rate 0:21:49.840 --> 0:21:54.359 hikes could become less aggressive from here. Well. Turning to oil, John, 0:21:54.400 --> 0:21:57.840 it's recovering some of yesterday's eight percent sell off right now. 0:21:58.040 --> 0:22:00.280 Crude is higher and I'm next screw it up for 0:22:00.359 --> 0:22:03.159 a ten percent and ninety nine doo cents a barrel, 0:22:03.480 --> 0:22:05.560 and Brent up one point one percent at a hundred 0:22:05.600 --> 0:22:08.240 three dollars ninety four cents and a sad note to 0:22:08.280 --> 0:22:11.600 pass along. Mohammed Barkendo, the Secretary General of OPEC, has 0:22:11.680 --> 0:22:14.719 died in his native country of Nigeria. He was sixty. 0:22:15.200 --> 0:22:17.520 And now the corporate news where Amazon is on the 0:22:17.760 --> 0:22:21.119 acquisition trail this morning and Bloomberg's re need a young 0:22:21.200 --> 0:22:23.280 Joints is live with more We need a good morning, 0:22:23.359 --> 0:22:26.240 Good morning John. Amazon will get options for a two 0:22:26.320 --> 0:22:31.240 percent steaking group up and could increase that holding to Amazon. 0:22:31.359 --> 0:22:33.800 Steak will be in the form of warrants they'll vest 0:22:33.960 --> 0:22:36.880 depending on how well the partnership performs and how many 0:22:36.960 --> 0:22:39.960 new customers come as a result. The deal also gives 0:22:40.000 --> 0:22:43.159 Amazon Prime members in the US access to grub ub 0:22:43.200 --> 0:22:47.040 for one year. Shares for parent company just Eat rows 0:22:47.240 --> 0:22:51.040 as much as sixtent in Amsterdam today, the stocks falling 0:22:51.119 --> 0:22:54.680 close to seventy percent this year. Live in New York, 0:22:54.760 --> 0:22:57.040 I'm really need a young Bloomberg day break. I really 0:22:57.080 --> 0:22:58.600 need to thank you. That's the five things that you 0:22:58.720 --> 0:23:00.840 need to notice. Start here day brought to you by 0:23:01.040 --> 0:23:05.720 Interactive Brokers and Futures. This morning they have been fluctuating. 0:23:05.880 --> 0:23:09.080 SMP futures are now higher, up about four points. Now 0:23:09.240 --> 0:23:12.200